Chelan builds cost-saving strategy around in-house expertise and creative deals

CHELAN — When Chelan officials described the cost savings tied to a major infrastructure project during the March 24 city council meeting, the numbers stood out.

By handling construction management in-house rather than contracting the work out, the city expects to save roughly $450,000 on a $4 million capital project, according to Public Works Director Jake Youngren. That represents a savings of more than 11 percent, enough to offset recent construction cost increases that in some sectors approached 7 percent, potentially leaving the project’s overall cost closer to pre-tariff levels.

But the approach is not a one-off decision. It reflects a broader pattern in how the city has been managing projects, pursuing funding and looking for ways to stretch taxpayer dollars.

Youngren told the council that building internal capacity has allowed Chelan to reduce reliance on outside consultants while maintaining oversight of increasingly complex infrastructure work.

On a project of that scale, he said, a traditional construction management contract could approach $600,000. By keeping that work internal and supplementing it with targeted outside services only where needed, the city is able to deliver the same project at significantly lower cost.

That strategy is also reflected in recent staffing decisions. During the same March 24 meeting, Youngren introduced three additions to the Public Works team, including a resident engineer who will take a lead role in managing capital projects in the field.

The position is central to the city’s shift toward in-house project oversight, providing on-site quality control and construction management that might otherwise be handled by outside firms.

Even with the added staffing, officials say the city continues to come out ahead financially, with the savings on a single project far exceeding the cost of bringing that expertise in-house.

In recent months, Chelan has repeatedly taken similar steps, pursuing grants, leveraging partnerships and finding unconventional solutions to reduce costs while maintaining services.

The city sought outside funding to improve security at park restrooms, aiming to offset expenses that would otherwise fall on the general fund. It also secured a key easement for the Lakeside Trail at no cost, allowing that project to move forward without additional land acquisition.

Chelan has also positioned itself to compete for larger pools of outside funding. The city’s Safe Streets for All planning effort is designed to open the door to future federal safety grants, while housing-related infrastructure funding has relied on partnerships with nonprofit developers and state agencies.

Even smaller operational decisions have followed the same philosophy. When the city needed to restore on-site management at the municipal airport, council approved a temporary RV housing solution rather than pursuing a more expensive permanent option.

Those efforts come as city officials have signaled a tighter financial outlook ahead, with limited surplus revenue expected in future budgets and a growing need to prioritize spending.

Taken together, the approach reflects a consistent theme: finding ways to do more with less while keeping projects moving forward.

The in-house management of major infrastructure work is one of the clearest examples yet.

While Chelan continues to rely on outside consultants for specialized services such as engineering review, materials testing and regulatory compliance, city staff are taking on a larger share of day-to-day project oversight.

That hybrid model allows the city to control costs without sacrificing technical expertise, Youngren said, and positions Chelan to handle future projects more efficiently.

As Chelan prepares for another season of construction and capital investment, that approach is likely to continue, not as an exception, but as a defining feature of how the city does business.

Andrew Simpson: 509-433-7626 or andrew@ward.media