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We are aware that the school systems have various means for achieving <br />value engineering. Therefore, we would propose that the Board submit a <br />request for an interrogatory to each school system to determine to what <br />extent value engineering components exist in the planning and construction <br />of their capital projects. This information would provide direction to the <br />consultant as to what should be put in place to achieve the most beneficial <br />results. <br />The Board is requested to: <br />• Provide feedback regarding additional elements that they deem <br />critical and that should be considered as the scope of services for <br />this function is developed; <br />• Confirm that the County should pay for the services and request <br />that the Manager includes it in the County's Capital Investment <br />Plan. <br />3. <br />The third element critical to ensuring the success of value engineering'' is to <br />discuss steps that the Board could approve to enhance our resource <br />management abilities in light of the potential savings this initiative should yield. <br />As capital funding is discussed, it may be helpful for the Board to refer to <br />the description of the process for budgeting capital costs for the school <br />systems as presented by the Institute of Government. (Attachment 2) <br />The Commissioners have considerable latitude in how the funds are <br />appropriated for capital projects. <br />The value engineering initiative is intended to reduce costs of <br />construction for County and School projects funded--by the County and <br />should be mandatory for all new construction projects and major <br />renovations that exceed $100,000, unless that threshold is waived by the <br />Commissioners. However, since the magnitude of success of this <br />program can only be projected at this time, it may be advisable for the <br />Board to explore alternative ways to allocate funds for the approved <br />projects. <br />For example, currently the project ordinance appropriates funds for the <br />entire project based on a estimate provided to us by the schools. <br />However, should the Board choose to do so, a reserve could be <br />established for the full projected cost of a project, but capital project <br />ordinances would be approved only after the cost had been firmly <br />established by bid, a contract or other highly reliable cost determining <br />means. Essentially, the amount of the appropriation would be equivalent <br />to the amount of money ready to be spent for a particular function <br />(planning, site development, construction, etc.) <br />