Council debates hiring project manager, explores general-manager approach to cut costs on large capital projects

Council reviewed a request to add a project manager to engineering to focus on the construction phase of capital projects, and discussed a separate model — hiring a general manager or construction manager for large projects — that could capture savings by separately tendering specialty work.

Megan (staff member) told council that engineering staff are “pretty overloaded” and that a construction-focused project manager would help move projects through construction more efficiently. Staff displayed a top-of-scale salary figure of $129,000 for the position and noted that health-care costs are budgeted separately and would vary by opt-outs or family coverage.

Council members asked whether the city could break large projects into multiple smaller contracts to get individual low bids on specialized tasks. Staff cautioned that state bidding rules prohibit splitting bids to avoid procurement thresholds, but noted that for locally funded work the city can bid components separately so long as that process complies with procurement law. A staff member also explained that RCW provisions allow use of a general manager model on very large projects (the city cited a threshold of about $10 million) where a general-contractor or general-manager model can be approved for construction oversight.

Discussion covered potential savings and trade-offs: council members observed that separating specialties (e.g., gravel, underground work, paving) can sometimes produce lower total prices, but also noted that a consultant general manager brings contractor relationships and markup that provide value. Staff suggested piloting a general-manager approach on a large upcoming project to test savings and coordination benefits.

No formal action was taken; the request for the FTE and further exploration of procurement models remain staff recommendations for council consideration in the 2026 budget process.