Explanation
1. BACKGROUND:
A. Need. This legislation authorizes the Director of Public Utilities to enter into a contract modification for professional engineering services with CH2M Hill, Inc., for the Asset Management 2011 - Phase 3: Program Development Project for the Division of Sewerage and Drainage and the Division of Power and Water. The Division has determined that these design services cannot be performed by City personnel at this time and has planned for the procurement of these services on a routine basis.
This program will allow the Department of Public Utilities to better define critical assets, allow for enhanced resource allocation, perform business case evaluations to enhance project values and project prioritization, enhance facility equipment reliability to more dependably serve customers, optimize operations at treatment plants to lower operations cost, and minimize our overall life-cycle costs of infrastructure ownership while meeting our customers' expectations. This program will lead the Department of Public Utilities to allocate funds much more efficiently to projects and initiatives that will provide the best value to ratepayers.
The Consultant's emphasis throughout will be on the development of an asset management system, procedures, and a structured plan for future program development. The Consultant will be expected to concentrate on systems design and technology transfer, provide subject matter expertise, and possibly supplement staff in some cases.
Asset Management is being developed in phases, as identified in the Consultant's initial contract. Phase 2 is nearing completion by the Consultant and departmental staff and the Department is prepared to move into Phase 3, with up to two (2) more one (1)-year phases anticipated after Phase 3. Completed in Phase 2 were 20 business case evaluations (BCEs) that represent a long-term cost savings to the department of over $8 million, finalization of BCE process guide...
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