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HomeMy WebLinkAboutAgenda - 05-18-1999 - 9cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 18, 1999 Action Agenda Item No. 9-C, SUBJECT: Approval of Value Engineering Implementation Plan DEPARTMENT: Purchasing & Central Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones extension 2652 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 Purpose: To consider approving an implementation plan that would incorporate value engineering as a core principle for all County and School new construction or major renovation projects that exceed $100,000 in project cost. Background: During their meeting on May 4 1999 the Board of Commissioners agreed to adopt value engineering as a core principle in the design of all County and County funded School projects. The Board provided feedback to several issues which are critical to the success of the value engineering process, including the desired outcomes, the process whereby value engineering would be carried out and new methods of resource management in anticipation of the savings value engineering would yield in construction projects. The Board. endorsed $100,000 as the threshold at which all construction or major renovation projects would be subject to value engineering. However, any of the entities covered by this policy may petition the Commissioners to waive the $100,000 threshold if compelling evidence is presented that the process would yield minimal or no savings to the project. Based on our understanding, the Board approved desired outcomes of the value engineering process as follows: We wish to ensure that an independent review of each building system is incorporated into the fabric of the design phase from concept through construction. Reviews will include, but may not be limited to the following areas: • HVAC systems • Materials used in construction (brick vs. block vs. stucco etc.) • Best delivery times/methods for materials during construction • Design function vs. Design fashion • Future use potential (ease of adaptability for changing uses and/or expansion of the building) • We wish to ensure that programmatic specifications as put forward by the planning committee or potential users of a facility are questioned as to their functionality vs. their cost; 2 We wish to ensure that every cost saving means available to the project is explored for feasibility and implemented when practical. We wish to see life cycle costing analysis used in the analysis of proposed value engineering strategies. We wish to ensure that all value engineering strategies incorporate energy efficiency as a primary goal. It was agreed that the recommended service delivery method would have the County contracting with an individual or a firm to provide the value engineering services. This professional service would be retained pursuant to County procedures and the state law regarding the selection of architect and engineering services. As the Board recalls, historically the County has prepared a request for proposal through which to solicit the interest and qualifications of qualified firms /individuals who could provide the service. When the responses are received, there is generally a preliminary screening of applicants and the three to five most qualified firms/individuals are invited to interview. The interview team will generally consist of County staff and often a County Commissioner. Since the value engineer is to be an integral part of school projects as well as County projects, it might be advisable to also include one representative from each school system (either staff or board member). Upon completion of the process, one firm/individual is brought forward for County Commissioner approval. Under the timeline for selection as presented in the May 4 abstract, this selection process would commence immediately after the Board's final approval of the process (May 18) and the recommendation for a consultant would be presented at the June 21 meeting. This aggressive timeline is being pursued to enable the consultant to gear up for assistance of the Chapel Hill/Carrboro School system during the summer as they move forward with the Smith Middle School project. Other critical elements specifically governing the actions and measuring the effectiveness of the value engineering process will be developed in conjunction with the RFP process. Based on previous comments from the Board as well as any new information that is learned during the interview process with VE specialists, a scope of work for the consultant will be recommended to the Board at the June 21 meeting. Directions from the Board would then be incorporated in the resulting contract. In order for the consultant to begin work with the Chapel Hill/Carrboro system during the summer, the Board would need to approve the contract in substance and grant approval, contingent upon completion of the contract and Attorney review. As a point of departure in establishing the scope of work for the value engineer, we would anticipate, at a minimum, the scope would include the duties listed below. • The VE consultant would become a participating member of the facility design team. The design team at a minimum would include the owner, the architect/engineer designer, and the VE consultant. • The VE consultant would report to the County Manager. • The VE consultant would provide periodic reports to the Manager, project owner and the County Commissioners at prescribed milestones in the project as well as at other intervals as they may be appropriate. • The VE consultant will assist the County in developing an interrogatory set of questions that will be sent to each school, system regarding upcoming projects within the next 12 months. This information will provide information to the consultant as to where value engineering issues are being addressed on a specific project and where there may be deficiencies that the VE consultant will need to consider. • When the VE consultant has reviewed the questionnaires they will meet with the design team at the commencement of the project and outline the value engineering process that is proposed for the project. Since the appeal process, if needed (discussed later in this document) will require the involvement of the County, it is recommended that the County be included in this preliminary meeting involving school projects as well. The VE consultant is expected to use strategies that will accomplish the desired outcomes cited by the County Commissioners, but also to the extent possible to strive for agreement among the partners as to the strategies to be employed. • The VE consultant will advise the County Manager of any conflicts in opinion that he believes may result in an appeal being made (see suggested process below). • The VE consultant will work in tandem with School or County staff who are tasked with project or contract administration for any County or School project. As previously indicated, additional refinements would be made and incorporated into the information distributed for the June 21 meeting. In the unlikely ' ilkely event that differences of opinion on specific value engineering strategies cannot be resolved within the design team, the following appeals process is suggested: • The VP consultant will present ideas to the team that in their professional opinion succeed in addressing the desired outcomes as adopted by the Commissioners. • The design team is expected to seriously consider all value engineering ideas and to incorporate all ideas that support the desired outcomes approved by the.Board. In the event that the design team, which includes the value engineer, cannot come to agreement on a particular item that in the opinion of the VE consultant supports a desired outcome, then the owner may present evidence to the County Manager that the incorporation of the proposed VE strategy will have a detrimental effect upon the program to be carried out in the facility. The County Manager shall take steps to mediate or cause to be mediated the dispute- within a one week period after the dispute is presented in writing to the Manager's office. If this mediation effort fails, the Manager will immediately place this item on the next available County Commissioner agenda for consideration by the Board. The County Commissioners may waive any value engineering strategy proposed if they believe that the evidence presented supports the owner's contention of program denigration. The last element of implementing value engineering is to finalize an alternative means to resource management. As discussed on May 4, this involves appropriating funds for capital projects at various milestones in the project, rather than a single up front appropriation. To do so will require a modification to the existing capital policy. A revision reflecting the Board's comments will be brought back for consideration during an upcoming meeting. Financial Impact: Funds for the value engineering function will be budgeted in future Capital Investment plans. Recommendation: The Manager recommends that the Board take the following action: • Approve the implementation steps cited herein; • Designate a County Commissioner(s) to serve on the value engineering consultant selection committee. :r'` X Elementary School Y School System Capital Project Ordinance Project Number 6X- XYX Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter, 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds to This project will be fmanced with proceeds from Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project:. Transfer from Other Funds $0 Bond Proceeds:,, $14,000,000 Impact Fees $0 Other Revenues .as Appropriate Total Revenue $14,000,000 Section 4. The following amount is appropriated for this project: Planning & Design Fees $900,000 Land and Associated Fees $700,000 Construction $10, 000, 000 Equipment and Furnishings $950,000 Technology-$950,000 Other Line Items as Appropriate. $0 Contingency 500 000 Total Project Costs $14,000,000 Section 5. This ordinance shall remain in effect from July 1, xxxx until June 30, xxxx. Adopted this XXst day, of , 199X. - -7-eAA X Elementary School - Phase I Y School System Capital Project Ordinance Project Number 6X.XXX -XUX Be it ordained by the Orange County'Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds to This project will be financed with proceeds from Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: Transfer from Other Funds $0 Bond Proceeds $700,000 Impact Fees $0 Other Revenues as Appropriate $0. Total Revenue $700,000 Section 4. The following amount is appropriated for this project: Planning & Design Fees $0 Land and Associated Fees $700,000 Construction $0 Equipment and Furnishings $0 Technology $0 Other Line Items as Appropriate $0 Contingency Total Project Costs $700,000 Section 5. This ordinance shall remain in effect from July 1, xxxx until June 30, xxxx. X Elementary School — Phase H Y School System Capital Project Ordinance Project Number 6X- -,)= Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds to This project will be financed with proceeds from Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: Transfer from Other Funds $0 Bond Proceeds $1,200,000 Impact Fees $0 Other Revenues as Appropriate ,0 Total Revenue Section 4. The following amount is appropriated for this project: Planning & Design Fees $500,000 Land and Associated Fees $700,000 Construction $0 Equipment and Furnishings $0 Technology $0 Other Line Items as Appropriate $0 Contingency s0 $1,200,000 Total Project Costs $1,200,000 Section 5. This ordinance shall remain in effect from July 1, xxxx until June 30, xxxx. Adopted this XXst day of , 199X. X Elementary School - Phase Ili Y School System Capital Project Ordinance Project Number 6X -XXX- Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds to This project will be financed with proceeds from Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: Transfer from Other Funds $0 Bond Proceeds $11)600,000 Impact Fees $0 Other Revenues as Appropriate $0 Total Reven ue $11,600,000 Section 4. The following amount is appropriated for this project: Planning & Design Fees $900,000 Land and Associated Fees $700,000 Construction $9, 500, 000 Equipment and Furnishings $D Technology $0 Other Line Items as Appropriate $0 Contingency $500.000 Total Project Costs $11,600,000 Section 5. This ordinance shall remain in effect from July 1, xxxx until June 30, xxxx. Adopted this XXst day of , 199X. X Elementary School— Phase IV Y School System Capital Project Ordinance Project Number 6X - =, Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds to This project will be financed with proceeds from Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: Transfer from Other Funds $0 Bond Proceeds $13,500,000 Impact Fees $0 Other Revenues as Appropriate s0 Total Revenue $13,500,000 Section 4. The following amount is appropriated for this project: Planning & Design Fees $900,000 Land and Associated Fees $700,000 Construction $9,500,000 Equipment and Furnishings $950,000 Technology $950,000 Other Line Items as Appropriate 1 $0 Contingency $500,000 Total Project Costs $13,500,000 Section 5. This ordinance shall remain in effect from July 1, xxxx until June 30, xxxx. Adopted this XXst day of , 199X.