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2017-12-12 SUPPLEMENTAL BACKUP Town CouncilTOWN OF PALM BEACH Information for Town Council Meeting on: December 12, 2017 TO: Mayor and Town Council CC: Underground Utilities Task Force VIA: Thomas G. Bradford, Town Manager FROM: Steven Stern, Underground Utilities Manager RE: Peer Review Final Document, Staff Comments DATE: December 8, 2017 STAFF RECOMMENDATION Town staff recommends that Town Council accept the final Peer Review Document as a final deliverable for the Peer Review Contract. GENERAL INFORMATION On page 44 of the Peer Review of Town -Wide Underground Utilities Master Plan in the Closing Remarks, the opening paragraph states: "We applaud the Town and KHA design team on their efforts to date. The Master Plan developed by KHA is very thorough, and the data and drawings we received were invaluable to our review. Further, we appreciate the cooperation of all stakeholders who participated in our consultations and proffered constructive feedback on the project. Substantial, quality work has been performed to -date to bring this monumental effort to fruition, and our Project Team appreciates the opportunity to be included in an effort to further enhance the stellar work already being performed. " Staff believes this statement validates the amount of work that has gone into the Town -Wide Utilities Undergrounding Program over many years which has culminated in the Master Plan and the initiation of the first phase of construction. The Peer Review makes several recommendations that can improve on the progress that has been accomplished to date. The Peer Review team identified four recommendations that they believe have the highest potential to add value to the program. Below staff addresses each of these recommendations. • Finding 1.3: Implement a Project Management Plan — Staff estimates that this effort will take approximately 6 months to complete. The master plan has most of the components of a project management plan which includes a schedule, project phases and sequence, and cost estimate by total project and each phase. Staff, Consultants, and Contractors each have their own software programs and procedures that they are following to track both financial and schedule performance of the project. All of these efforts and Town of Palm Beach policies and procedures could be memorialized into a master PMP document to be used as a reference guide for future progression of the work. • Finding 1.1 and 3.2: Maintain CMAR delivery method, but execute a continuing contract utilizing the unit pricing approach — The state of Florida Consultants Competitive Negotiations Act does not allow continuing contracts for projects over $2 million in construction. Purchasing does not believe there is enough information to award a CMAR for the Town -Wide Undergrounding Project. The most recent RFP that was advertised in November has the option to renew the contract for up to two additional phases. This would take the CMAR through Phase 4 of 8. This may be the best tool we have available under state procurement rules to achieve what is being recommended. The second part of this recommendation is to establish unit pricing now for the entire project. Setting unit prices now could have the opposite affect and drive up the cost of the GMP due to the CMAR needing to take on a greater risk of uncertainty in future costs of labor and materials. • Finding 2.1: Prepare a deterministic cost estimate — The $98.6 million estimate is at a level of detail typically found in a master plan cost estimate. To develop a deterministic cost estimate for the entire program requires detailed design for the entire program. Our first phase estimate was within 2% of the contract award cost. Preparing a deterministic cost estimate for the entire program would require FPL, AT&T, and Comcast to provide a detailed design as well. Staff does not think this level of design could be accomplished by the partnering utilities at this time without creating significant delay in the current program schedule. A more detailed level of design for the entire project would cost significant additional time and money with the anticipated benefit of increasing the level of confidence in the total project cost estimate. Additionally, preparing a design today for work that will commence construction years from now increases the risk of having to perform redesign to keep up with redevelopment by the private construction community. This will also lead to additional time and money needed to perform those redesigns when they are required. Staff currently does provide a deterministic cost estimate with each phase of design as it is completed. • Finding 4.2: Vet FPL design and negotiate improvement on equipment selection where possible — FPL participates in the project team's monthly progress meetings. Staff is negotiating with FPL on location, number, and types of equipment throughout the design of each phase. The primary focus of this recommendation is the optimum use of Vista switchgear versus PME switchgear. The master plan originally included 100% use of Vista switchgear. The team determined in discussions with FPL that the difference in cost between the two switchgears was approximately $50,000 each. Due to this significant cost difference the master plan was revised and now includes 90% PME switchgear cabinets and 10% Vista switchgear cabinets. The Peer Review document suggests the estimated cost difference between the two switchgear cabinets is $20,000. We have had conversations with FPL and have not been able get the costs lower aside from the additional credits FPL is pursuing through the Florida PSC. The team does not oppose the use of Vista switchgear, but we cannot validate the $20,000 difference referenced in the Peer Review document. Materials for the electrical system are required to be supplied exclusively by FPL. There is no ability for the Town to purchase electrical materials on their own and integrate into FPL's system. FUNDING/FISCAL IMPACT Each of these recommendations has a cost associated with the implementation. This cost has not been quantified at this time. PURCHASING REVIEW Purchasing has reviewed the Peer Review and has provided assistance in the responses associated with future contracting. TOWN ATTORNEY REVIEW No legal review has occurred at this time. Attachments cc: Jane Struder, Director of Finance Paul Brazil, P.E., Director of Public Works Patricia Strayer, P.E., Town Engineer Dean Mealy, Purchasing Manager Kevin Schanen, P.E., Kimley Horn