HomeMy WebLinkAbout01/09/2007, CLR #2 - DECEMBER 14, 2006, MEETING OF THE NACIMIENTO PROJECT COMMISSION Fr_ 1EIVED
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DATE: December 29, 2006 44 ATTORNEY. -2 PW DIR
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FROM: Mayor David Romero � f, H o®tee,
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SUBJECT: December 14, 2006, Meeting of the Nacimiento Project Commission .v 0- R
The Nacimiento Project Commission met on Thursday, December 14`h. The commission
received a detailed engineering report regarding all phases of the project,including financial,
environmental, design, constructions management, and outstanding engineering issues. Of
particular interest is that 90% of the design submittals, consisting of 700 pages of drawings and
1000 pages of specifications, have been submitted for review. This is one of the rare major
projects that I have seen in my career that has stayed on a time schedule during all the
preliminary phases.
Despite major efforts on the part of the design team, costs have escalated from $150,000 million
to $186.5 million, a 24% increase caused largely by the worldwide escalation of material costs.
San Luis Obispo's total capital cost is estimated at $80.4 million, which will result in`an annual
cost between $6.4 million and$7.1 million.
The project manager received approval from the Board to consider moving forward on the
project with an owner-controlled insurance program, which would eliminate the need of every
contractor and sub-contractor on the job providing their own insurance coverage. This has the
potential of providing a savings of$3 million for the project.
Staff discussed progress in the right-of-way acquisition program. A total of 54 parcels will need
to be acquired by the time the contract is awarded. If the rights-of-way cannot be acquired by
the critical time, the project could suffer from $400,000 to $500,000 monthly because of price
escalation.
Nacimiento project staff has been conducting a contractor and supplier outreach program to
inform them of the project, listen to their comments, and include possible changes after their
review. The first meeting with the contractors and suppliers was held on November 16th, with
more than 45 specialty contractors and large suppliers and 25 general contractors at the meeting.
There will be two additional workshops with contractors and suppliers prior to bidding on the
project.
I am impressed again by the progress made in keeping this project on time and relatively close to
budget. The atmosphere with all members of the Board is cordial, and it.appears that all
participants are firmly committed to the project and moving it along rapidly.