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MAY 2 21990 <br />B00K 80 FA6E 1 76 <br />Commissioner Scurlock had a question regarding the fee <br />structure. He referred to Page 161 of the backup material <br />(Attachment B-1 - Project Budget - Design Services) and noted <br />that there is some fluctuation in the hourly rates, which range <br />from a low of $53 to a high of $61 per hour. He assumed that <br />relates back to a higher usage of principals versus associates <br />and wondered if that is correct. <br />Director Pinto felt that design of the treatment plant <br />really stands alone, and you are talking about probably less than <br />an 8.5% design fee for the project, which he felt is in line. <br />Commissioner Scurlock noted that we are paying $57 per hour <br />to design a system and $61 for permitting, and Director Pinto <br />advised that in the permitting of this plant you are talking <br />about not only DER but-NPDS, which is the industrial waste <br />discharge permitting. It is outside of the normal permitting, <br />and out of all the permitting for the South County plant, that is <br />where we are still hung up. <br />Commissioner Scurlock still felt there is something out of <br />whack with the rates for design versus permitting. He believed <br />these are not-,iQ-exceed figures in any event, and Director Pinto <br />advised there are two lump sums and one not -to -exceed. He would <br />prefer a lump sum on permitting, but most of the time, they won't <br />let us do it, and that is a not -to -exceed figure. <br />Commissioner Scurlock asked why a lump sum on design, and <br />Director Pinto explained on that we are looking at the 8.5% <br />number on the design, and he was comfortable we will come out <br />ahead with that. <br />Commissioner Scurlock pointed out that there then will be <br />another 3% for resident inspection; so, that makes it 111%, which <br />he felt is on the high side. <br />Director Pinto did not think it is for an R.O. plant. He <br />felt the proposed price is a good comfortable price and further <br />noted that we get an amount of money back depending on how many <br />plans we sell to those who bid. <br />44 <br />