Broken Promises: In Their Own Words

From Brochure 5 Los Osos Wastewater Project from San Luis Obispo County Department of Public Works, Noel King, Department Director, Paavo Ogren, Project Director.
PROJECT SELECTION AND MONTHLY COSTS
LETTER TO THE COMMUNITY
Project Technologies vs. Financing Terms
Page 2, paragraph 5, line 2
“The County plans to include a design-build approach for the collection system. This approach will allow private industry contractors of the STEP option to submit bids and compete for the project.”

SLO County Board of Supervisors Meeting 8/14/2007. Agenda item F-1.
Staff Recommendation:  
1. Consider the presentation of Project Screening Analysis by the Project Team.
5. Approve "Exhibit A - Project Selection Strategies"

Lou Carollo of Carollo Engineers: “Both STEP and Gravity will be carried forward as Community Options." "Alternative contracting methods can demonstrate which option is less costly." "We believe this to be very important … in the end  it will be what the contractors will commit to in writing through the bid process that will determine the final cost of these systems."

Paavo Ogren: “We believe a design/build method of public contracting is a methodology that will be very appropriate to get private industry to compete to get the different technologies to be competitive and to bring in real contractual commitments in developing a less costly project option.”

Carollo Engineers: Lastly, it is also important to recognize that the cost variations in the estimates between the different technologies can only conclude, at this time, that the technologies are very competitive with each other. The estimates are, therefore, also close enough to conclude that a competitive process involving public contracting and design/build strategies will provide the greatest opportunity to obtain the lowest cost option for the community.

Supervisor Gibson: “The way that the project team has structured the project selection strategies private competition on design/build on the one hand, through bids on a designed system on the other and a possibility of more widespread design/build authority allows private companies to compete on this.”
 
SLO County Board of Supervisors Meeting 2/5/2008 Item F1
Recommended Action: It is our recommendation that your Honorable Board:

4. Approve the attach agreement for environmental consulting services with Michael Brandon Associates for Environmental Consulting relating to the Environmental Process Workplan and Scope for the Los Osos Wastewater Project, with an amount not to exceed $81,572 ($74,320 fee for the base scope of work plus $7,432 contingency ) and direct your board to execute.
5. Approve the attach agreement for environmental consulting services with Michael Brandon Associates for Environmental Consulting for Environmental Impact Report Preparation for the Los Osos Wastewater Project with an amount not to exceed $1,924,820 and direct you board to execute.

Staff Report (Discussion)
Design Build Contracting
During 2007, the design’build approach to project contracting was identified and endorsed by your board. The primary factor supporting DB contracting is to enhance private industry competition and to develop assurances on the least-costly project alternatives. The DB approach will also enhance our ability to implement the project in a timely manner.

Agreement for Environmental Consulting Services for the Los Osos Wastewater Project:
NOW, THEREFORE, IT IS AGREED by parties hereto as follows:
1. Scope of Work,  CONSULTANT shall at its own cost and expense, provide all services, equipment and materials necessary to complete the work described in exhibit A, which is attached hereto and incorporated herein by this reference. All work shall be performed by normal industry standards.

Exhibit A
Scope of Work (Draft EIR, Final EIR) Michael Brandon Associates
Purpose: The effort will focus on producing a Draft EIR and a Final EIR to be used in conjunction with a community preference survey and the design/build (RFP) for two different wastewater collection systems (STEP/STEG and gravity) and provide for wastewater treatment facilities.

Question: Did Los Osos get what it paid for … and what was Los Osos promised through board resolutions?

SLO County BOS meeting 4/7/2009
Supervisor Bruce Gibson: “Some have claimed this is a biased process and some will continue to say we have broken a promise.... I heard a couple of very objective commentators here, people that I respect, make it very clear that the promise was never verbatim, a head to head comparison of bids... The promise was to allow STEP to compete with gravity through the design/build process.”

Compiled by Dave Duggan