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HomeMy WebLinkAbout11/14/1989, C-8 - CONSULTING SERVICES CONTRACT TO PERFORM VALUE ENGINEERING ANALYSIS ATE �iint�N��l���(��hv�f►I��� City of San LUIS OBISPO - MEETING Novemberr 14, 1989 i COUNCIL AGENDA REPORT I'E ''NUMBER -- FROM: William T. Hetland, Utilities Director Ulr SUBJECT: Consulting Services Contract to Perform Value Engineering Analysis RECOMMENDATION: Adopt resolution approving$27,000 Consultant Services Contract for G. S. Dodson and Associates and amending Brown and Caldwell's contract by $5,000. Background As part of the City's Wastewater Management Plan, the design of Phase 3 of the treatment plant modifications has been completed. In order to finance construction of this project as well as subsequent phases,the City has submitted an application to the State of California Division of Loans and Grants for a low-interest loan. This application is currently being processed. One of the additional requirements that the State has for receiving the loan is that a value engineering analysis be performed. A value engineering analysis is basically an independent review of the detail plans and specifications to verify that the most cost effective design of a project has been accomplished. The procedure that is followed is to first retain an independent engineer. An initial meeting with the independent engineer and the original consultant, Brown and Caldwell, is set to review the basic design and philosophy. The independent engineer then evaluates the project. A final meeting is then held between the two consultants to analyze the independent engineer's recommendations. A decision is made to incorporate any suggestions or changes into the project. Those suggestions that are not incorporated into the project would have to be justified with the State loan staff and may not be eligible for project financing. A final report on the process is then completed and submitted to the State. The firm of G. S. Dodson and Associates was selected to perform this analysis. They are an engineering firm that specializes in wastewater treatment and have a background in performing value engineering studies for State loan and grant projects. Formal proposals from other firms were not requested because of G. S. Dodson and Associates' strong background and recent experience and the urgency necessary in completing this work and obtaining a State loan commitment. The contract is available in the Council office for review. Financial Money is available in the Sewer Fund account to finance the $27,000 G. S. Dodson and Associates work and the $5,000 amendment to the existing Brown and Caldwell contract. Consequences of Not Taking the Recommended Action If no action is taken to perform the value engineering analysis then the City would not comply with the loan regulations and would not receive a low-interest loan from the State. This would result in significantly higher sewer charges in order to finance the project. City staff does not have the expertise to perform this type of analysis and therefore it is not an alternative. Recommendation Adopt resolution 1. approving $27,000 Consultant Services Contract for G. S. Dodson and Associates 2. amending Brown and Caldwell's contract by $5,000 3. transferring $32,000 from the Sewer Fund to cover these costs. P:\BILL\WHVALENG.WP n RESOLUTION NO. (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING CONSULTANT SERVICES CONTRACT FOR G.S. DODSON AND ASSOCIATES AND AMENDING BROWN AND CALDWELL'S CONTRACT WHEREAS, the City has adopted a Wastewater Management Plan; WHEREAS, the City has completed the design of Phase Three of that Plan; WHEREAS, the City has applied for a low-interest loan from the State Division of Loans and Grants to finance this project; WHEREAS, 'a value engineering analysis is required for all projects applying for State funds. NOW THEREFORE, BE IT RESOLVED that the City Council approve 1) a $27,000.00 Consultant Serivices Contract with G.S. Dodson and Associates to perform a Value Engineering Analysis 2) amend the existing Brown and Caldwell Engineering Contract by $5, 000. 00 for their review and participation in the value engineering analysis j and 3) approve the transfer of $32, 000. 00 from the Sewer Fund to ' cover these costs. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of November, 1989. MAYOR RON DUNIN ATTEST: CITY CLERK, PAM VOGES n Resolution No. (1989 Series) Page Two APPROVED: CITY A MINISTRATIVE OFFICER •V CITY ATTO Y FI E D RECTOR UTILITIES DIRECTOR WTH:bj a resdodson.wp