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APPENDIX

ESTIMATING PROCEDURE

Sections IG and III 2. of the Agreement refer to the "standard estimating practices: and "standard estimating procedures", respectively. The following is a specification of the estimating procedure and will govern transactions made under this Agreement.

1. Upon receipt of a WMATA "Authority Project" identification, PEFCO's. System Planning Department determines the feeder circuits to be used in the associated "Utility Project.' This is done in two parts, with and without Technical Provisions, as stated in Section III 2 of the Agreement.

2. PEPCO's Transmission and Distribution System Engineering Department takes the System Planning plans and determines feasibility, working with System Planning to make adjustments if necessary. Once the plans are agreed to be feasible, cost estimates for the "outside plant" portions of the Utility Project are determined. "Outside Plant" is everything beyond the supply station feeder cable terminations.

In making these estimates, T & D uses its standard unit cost estimating books to apply costs to the physical units of conduit, cable, poles, wires, etc. determined necessary. Time-cost escalation will be applied to reficct costs at times of actual work by using indices derived from PEPCO's historical experience.

3. The T&D estimates are then passed to PEPCO's Civil and Substation Engineering Department where cost estimates of the "inside plant" portion of the Utility Project are made in a similar manner.

4.

Civil and Substation Engineering then forwards the complete Utility
Project estimate to the Building Services Department where a proposal
to MIATA is prepared.

The formal proposal consists of a statement of the estimated costs
with and without the Technical Provisions, with the difference being
identified as the "Estimated Cost" of the Contribution in Aid of
Construction; a series of engineering and construction cost "S" curves;
and a schedule of monthly payments to be made by WMATA to PEPCO.

5. After the Utility Project is completed in the field, actual costs will be determined in accordance with standard PEPCO accounting practices. Once the actual cost of the Utility Project is known it will be divided by the estimated cost of Utility Froject for service in accordance with the Technical Provisions, as found in the formal proposal, and the resulting quotient will be multiplied by the estimated cost of Utility Project for service without the Technical Provisions. The revised estimate derived from this multiplication will be used as the "Estimated Cost" for comparing with the "Actual Cost" in determining the "Actual Cost" of Contributions in Aid of Construction.

The following example is provided for clarification.

Estimated Cost of Utility Project
Without Technical Provisions
With Technical Provisions

$2,000,000

$3,500,CCO

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY 600 Fifth Street, NW, Washington, D. C. 20001

391st Meeting of Board of Directors

The meeting was called to order at 9:35 A. M. Present were:

APPROVAL OF MINUTES:

The Minutes of June 6, 1974 were approved as submitted.

REPORT BY GENERAL MANAGER:

Mr. Graham reported that Metrobus public hearings 25 and 26 were held as scheduled June 10 regarding Montgomery County Project Trip, and June 12 concerning route changes for Kennedy and Nicholson Streets.

Mr. Graham referred the Board to furnished copies of his June 13 reply to Senator Frank E. Moss concerning the status of the petroleum supply situation affecting the supply and costs for Metrobus operations.

Discussion followed wherein Mr. Harris requested that a Resolution be prepared for Board adoption on June 20 requesting (1) the Department of Justice investigate the supplying of fuel for Metrobus operations and the possibility of restraints in trade with respect thereto; (2) the Federal Energy Office be advised as to the effect of the programs which have been operating, and requested to develop a program to return competition to this field, especially with regard to public operations; and (3) Congress be asked to consider legislation to regulate the petroleum industry as a utility.

Mr. Graham reported that Mr. Robertie would work with Mr. Harris in preparing the Resolution to be presented June 20.

Mr. Graham called on Mr. Dodge who referred the Board to furnished copies of a tabulation covering the opening of bids June 12 on Section K-3.

REPORT BY WSTC, NVTC AND D.C.:

Mrs. Garrott inquired as to the status of Mr. Neal Potter's request as presented June 6 concerning construction of a second temporary pedestrian bridge in the vicinity of Juniper Street.

Mr. Dodge reported that the contractor had been contacted and it was believed the staff could negotiate a cost estimate of $35,000-$40,000 for the temporary structure.