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Minutes 02-27-90 (2)MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA TUESDAY, FEBRUARY 27, 1990 AT 5:00 P. M. PRESENT Gene Moore, Mayor Robert Olenik, Jr., Vice Mayor Lillian Artis, Commissioner Arline Weiner, Commissioner Lee Wische, Commissioner J. Scott Miller, City Manager Sue Kruse, Deputy City Clerk Mayor Moore called the meeting to order at 6:00 P. M. Value Engineering and Program Management for the ~onstruction of the West Water Treatment Plant Facility Presentations Presentation by Stanley Consultants of Florida, Inc. Angelo (Andy) J. Carlino, Jr., President of Stanley Consultants of Florida, Inc., 2000 Lombard Street, West Palm Beach, FL 33407, gave the Commission a handout to help them follow the presentation. He introduced the Value Engineering (VE) Team and elaborated about their experience. ~im Hollatz, CVS, will be the team leader. Mr. Carlino ~elieved a feature unique to Stanley was the inclusion of an Economist on the team, who is an employee of Stanley Con- Sultants. He added that seven members are on the team. The only member of the team that was not employed by Stanley was Bill Reese, P.E., who is a membrane processing expert. John R. Austgen, P.E., Principal Mechanical Engineer, talked ~bout Stanley's approach and how they intend to serve the City. Before starting on any formal 40 hour workshop, they Will prepare cost models. They will use data given to them ~y the City's staff and Design Engineers. This will include energy models only. Mr. Austgen pointed out it was obvious ~he~ could not be totally accurate with only one week to ~evlew the project. Therefore, the computations will be ~implified. The recommendations they make must meet the Qriginal function of the project, except for the part of the ~cope of work where they will be asked to study alternate design criteria and overall project phasing. Mr. Austgen stated that all costs they present will consider ~nergy and life cycle costs as are appropriate to give a true picture of all the savings involved. All the unit Costs that they use will be from the designers' cost estimates. That is to keep all their alternates on an equal 1 MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA FEBRUARY 27, 1990 basis with what the cost designers come up with. Mr. Austgen said they will try not to reinvent any costs. Mr. Austgen read the "Value Engineering Five Step Job Plan", as shown on the gray hand out and explained them. With reference to "5. Recommendation Phase", he said the recom- mendation and findings will be presented to the City and the Design Engineers at the completion of the workshop. The recommendation will be presented in a written report. Stanley Consultants will work with the City to review the Design Engineers' responses to the VE recommendation. The final report will be submitted with the Design Engineers' responses and the City's list of accepted alternatives incorporated into the final document. At the end of the 40 hour workshop, Mr. Austgen stated Stanley Consultants will be prepared to give the City Engineers and Staff and (if the Commission wishes) the Design Engineers an oral presentation of the results of the study. Since time is a critical factor, enough information will be presented at that time to allow the Design Engineers to begin their review. The initial report will be submitted in writing in five working days. Mr. Austgen continued by saying the VE team will interface With the City and Designer and will incorporate the Designer's responses to the City's accepted recommendations in the final report. He felt the final report could be submitted in one month for notice to proceed. Mr. Austgen named places where they have performed these Studies and many design projects in Florida. On the last 20 workshops they performed, they recommended and imple- mented savings that have amounted to approximately 12½% of the project cost, or about 52.8 million dollars. Mr. Austgen showed where an original cost was $39,850,000. The reduced cost recommendation was $6,300,000. The actual reduction was $4,230,000. Mr. carlino explained why the Commission should chose Stanley Consultants. He was pleased Stanley had a recommen- dation from Palm Beach County Utilities. Mr. Carlino warned ~he Commission to be cautious of the team that is a non- experienced team but is only a team with a VE leader. A true VE team has worked together before on similar assign- ments, understands the process, procedures and methods. Mr. Carlino stated he will be available immediately, upon the City's request. He pointed out that they are a local firm. MINUTES - SPECIAL CITY CO~HISSION MEETING BOYNTON BEACH, FLORIDA FEBRUARY 27, 1990 Mr. Carlino reiterated that one month from the day they have the information submitted from the City, Stanley can complete the VE process. In two weeks, they can have sub- stantial information so the City's Designers can begin to prepare their review. Mr. Carlino stated they understand there is an urgency to have this plant constructed and operating. They are sensitive to that urgency and he suggested to the Commission that Stanley can accelerate the process. Mr. Carlino apprised the Commission that Stanley is providing Similar VE services throughout the country for approximately $35,000 to $40,000 or an investment of 1/10th of 1% of the construction costs with a potential savings of $3,000,000, based on the results from their previous efforts. He handed out some construction management brochures and had VE studies that he left with the Commission for the duration of the presentations. Mr. Carlino considered the City of Largo a very successful undertaking. Questions by Commission Commissioner Weiner asked if Stanley Consultants was propos- ing to come up with a proposal at every level of the project. Mr. Carlino replied that the City's Request for-Proposal (RFP) indicated they were interested in having a VE study done and were interested in a Project Manager during the ~esign and construction phases and also have someone look at the financial considerations. ~r. Carlino stated they would assume all responsibilities ~hroughout the construction phase. Commissioner Weiner %nquired whether that would be an additional cost. Mr. Carlino answered affirmatively. The $35,000 to $40,000 estimated cost was for the VE study. He could not tell her What the additional cost throughout the construction phase ~ould be. They would come up with either a percent of the Construction or it oould be negotiated in any manner the ~ommission would choose. Mr. Carlino added it would depend on how much involvement the Commission would want the City Staff to have versus them. It would be something they could ~egotiate without any problem. Commissioner Weiner asked whether Stanley is an Equal Qpportunity Employer (EOE). Mr. Carlino answered affirmatively. His Office Manager is a woman. His office has 12 Engineers, and 5 are women. Mr. Carlino did not ~elieve there were any blacks on the West Palm Beach staff, MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA FEBRUARY 27, 1990 but they have Hispanics and many of Indian descent. Commissioner Weiner asked for a list of women, blacks, and Hispanics they have in any kind of management positions. Mr. Carlino had no problem with that. They just hired a new Traffic Engineer, who is a woman. Presentation by Stone & Webster A1 Capellini, Project Manager, told of Stone & Webster's qualifications and highlighted their experience in both the Palm Beach County and Broward County area. He thought they had one of the best teams available for membrane softening and membrane technology probably in the State of Florida and perhaps in the entire country. Over 30 people are associ- ated with the group, and they have the longest membrane group experience they know of. Mr. Capellini introduced some of the team members. Bill Conlon of the water tech- nology group had two articles published on membrane tech- nology. Mr. Capellini explained how they intend to Structure the project. Bernie Dull, Certified Value Specialist, talked about the Value engineering program. The three things he thought Would be the most concern to the Commission were the experience of the firm, the technical confidence, and their approach to the project. Mr. Dull discussed each of those. As to the technical confidence of the team members, he said all of them have at least ten years of experience and have worked on a lot of reverse osmosis. All, except Mr. Dull, were from the local office, and they know the local condi- dions. If the Commission concurred, they intended to have a member of the City's operation staff be a member of the ~E team. That would give the operation staff a chance to have a part in the decision making process. Mr. Dull stated it was unusual to do a VE study this late in the design. The design is about 90% complete. Usually, ~he study is done when it is about 30% complete. The firm ~hat does the VE study has to be sensitive to the problems ~nd be knowledgeable of what the redesign costs will be and What the impact of delaying the project will be. Those have ~o be weighed against the proposals of the Designer. The ~eport will have to be done quickly. Mr. Dull said they Were ready to go now. They will start on a Monday morning and finish on a Friday. That Friday afternoon, a briefing Will be made to the Designer, the Technical Staff of the City, and whoever would like to be on the panel. That will be followed a week later, on a Friday, with a written deport. 4 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA FEBRUARY 27, 1990 Mr. Dull continued with the presentation and said their job is to make sure the proposals are implemented quickly so the project is not delayed, because that will cost money. They set up a Judgmental Board, called a Review Board, which is comprised of the City's Technical Staff and the Design Group. The design has to be part and parcel to the decisions. Mr. Dull stressed the importance of that. Mr. Dull elaborated on the five phases the VE study woutd follow, as shown on the gray handout of Stanley Consultants. In his opinion, some elements of success were (1) rapport with the Designer and (2) the City's support and participa- tion. The Operation Staff and the proposed Plant Superin- tendent should be participants on the VE team. Mr. Dull expounded on further elements of success. Mr. Capellini spoke again to advise one of the elements of the program management would be to evaluate the financial considerations of the project. He introduced A1 Alli, who has an M.B.A. and has done bond counseling and financial analyses for Stone and Webster for over 20 years. Mr. Alli elaborated about other members of Stanley Consultants and said they have a levelized fixed charge program which takes all of the capital and costs and levelizes them over the life of the project. The computer program is capable of providing a 50 year life analysis. That information is put into the revenue requirements program. Mr. Alli emphasized it is essential that the City can predict with some reasonable assurance that the revenue that will come out of these particular projects will be able to pay back the loans. The City can do this on an individual project basis, such as the potable water element, or they can look at the parks and open space elements and how they will be financed and what kind of revenue will be heeded for those programs and each of the other programs. Mr. Alli stated they also have the capability of doing a Sensitivity analysis in case of inflation changes or if the City wants to do away with a project. He elaborated on the programs and the firm's experience. If selected by the Commission, Mr. Capellini said their basic job will be to offer suggestions. They will make suggestions to reduce the financing costs associated with the project. They also intend to provide an overall level of comfort with the decision making process by giving clear, concise, objective information. 5 MINUTES - SPECIAL CITY COMMISSION MEETING BOYI~TON BEACH, FLORIDA FEBRUARY 2~, 1990 Questions by Commission Commissioner Weiner asked how much they would charge. Mr. Capellini answered that under the C.C.N.A., they are not to compete by costs. They are to compete by qualifications. If she would ask for costs by virtue of a personal request, they could submit that, but Mr. Capellini thought it would be unfair to their competitors. He felt the City would be willing to negotiate on that basis. Mr. Capellini thought the Commission had to look at which was the best qualified firm. He thought by far they were. They have no sub- consultants. Every one of the individuals work for Stone & Webster. Vice Mayor Olenik asked what the time frame would be from %he beginning of the project. Mr. Capellini replied they would need one week to organize and one week to do the Study. At the end of the second week, they would give a verbal presentation to the Designer and the City, which would be followed one week later with a written one. Commissioner Weiner asked if they were an EOE. Mr. Capellini answered, "Absolutely." Commissioner Weiner inquired how many women are in management positions. Mr. Capellini could only speak for his department. Out of 15 people, 3 are women in senior positions. They have black people, but he could not present the exact number. Mr. Capellini offered to submit their EOE program. Commissioner Weiner was only interested in their women in management positions. In their Florida office, Mr. Capellini estimated probably 5% or 6% were women in Senior positions. It is difficult to get women in technical positions. Corporate wise, he could get that information. presentation by Chen and Associates in association with Smith, Hinchman & Grylls Ben Chen, Chen and Associates, in association with Smith, ~inchman & Grylls (S H & G) introduced the members of their proposed engineering team. Mr. Chen stated they are well aware, of the issues the City is looking to resolve on the project. First, they must assure the City will get a cost effective result. Secondly, the City wants them to be its program Manager, to act in the City's interest to protect the City in cost control and financial evaluations. Mr. Chen stated that S H & G does nothing but value engineering. Chen and Associates is a small, specialized 6 MINUTES - SPECIAL. CITY COMMISSION MEETING BOYbITON BEACH, FLORIDA FEBRUARY 27, 1990 firm that does nothing but water and waste water. However, they are not in competition for large utility design work. A1 Dell'Isola, VETC, expounded about his experience. He brought two books he had written on value engineering. Mr. Dell'Isola also elaborated on the experience of S H & G. They did the Boston Harbor pollution project, and the results were a 682 to 1 savings. Mr. Dell'Isola could not promise that kind of investment return to the City. He said the City's financial rate would not only depend on the issue of cost of the project but on the operating costs of the City. Mr. Dell'Isola stated their expertise is to assemble a team and get meaningful results. Mr. Dell'Isola introduced specialists who would be on the team and elaborated about their experience, knowledge and expertise. He continued with his presentation, and Mr. Chen concluded the presentation. Questions by Commission Commissioner Weiner asked if Mr. Chen had his own company. Mr. Chen answered affirmatively. Mr. Dell'Isola explained ~hat his firm will do the financial and administration of the contract because they have the resources. After expounding, he stated they are a team but they worked before ~n Hollywood. Chen and Associates is a minority firm, so if there is a requirement for minority participation, they have it covered. The minority Commissioner Weiner had reference ~o was women. Minority was not a requirement in this project, but Mr. Dell'Isola said they could cover it if the Commission wished. Vice Mayor Olenik called attention to the "Team Organization Chart" and asked if everyone with the exception of Mr. Chen Es a member of S H & G. Mr. Chen replied he has his own firm. Paul Culler is a local independent Consultant, who ~orks with him from time to time. John Burke works for a firm called Resource Management in Palm Beach County. Mr. Burke and Mr. Chen have been working together as a team on different projects for over ten years. They were not just ~utting things together for the convenience of the project. City Manager Miller advised the Commission could take time ~o evaluate or evaluate and make their decision at this ~ime. He stressed that the sooner they made the appoint- ment, the sooner they could start working on the project. City Manager Miller emphasized time is of the essence on the Western plant. 7 MINUTES - SPECIAL CITY COMMISSION MEETING BOYI~TON BEACH, FLORIDA FEBRUARY 27, 1990 Vice Mayor Olenik suggested they rank the firms "1, 2 and 3" and just add up the numbers. Commissioner Weiner thought Mr. Carlino of Stanley Consultants looked familiar. She was informed that he had been with Post, Buckley for several years. Mayor Moore explained to the Commission that 1 would be the highest, then 2 and 3. It was decided City Manager Miller should tabulate the votes. He reported that Stanley Consultants came in ~1. They had four out of five first place votes. Second was Chen and Associates in association with Smith, Hinchman and Grylls. Stone & Webster was ~3. City Manager Miller stated his input would have been (1) Stanley Consultants, (2) Stone & Webster, and (3) Chen and Associates in association with S H & G. Commissioner Wische moved, seconded by Commissioner Weiner, to select Stanley Consultants as the Value Engineer and Project Management Consultant. ADJOURNMENT Recording secretary /~ (Two Tapes) The meeting properly adjourned at 6:~M. /1I/ Mayor Commissioner ~ ~ Commissioner 8