Partnering forPublic Works

Dave Zelenok, City of Centennial

Peter Cohlmia, CH2M HILL

November 10, 2011

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Presentation outline

City of Centennial

CH2M HILL

Partnering Process

Partnering Cost Savings and Awards

Lessons Learned

Questions

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City of Centennial

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City of Centennial

IncorporatedFebruary 7, 2001

Key Vision Elements:

• Efficient and effective government

• Contract for city services at all levels unless there is a provable advantage to doing otherwise

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Outsourcing in Centennial

Building Inspection

Animal Services

Sales Tax Collection

Licensing

Development Plan Review – (2008 Reverted to City Staff)

CIP Management

Fire Districts

Law Enforcement – IGA

Parks Districts

Water & Sewer Districts

Stormwater Districts

Public Works

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Centennial population

Denver 588,349

Colorado Springs 376,427

Aurora 311,794

Lakewood 140,305

Fort Collins 133,899

Thornton 110,880

Arvada 106,328

Westminster 106,195

Pueblo 103,805

CENTENNIAL ~100,000 - 110,000

Largest cities in Colorado – US Census Bureau

US Census Bureau: http://www.census.gov/popest/cities/SUB-EST2007.html

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Centennial comparison toother cities

City contracts• Many public works departments already contract 50% to 80%

(think: asphalt, fuel, construction contracts)

Many researched City budgets for contracted services• 5% – 25% typical city expenditures for services

(customer service, inspectors, engineers, managers)

City of Centennial budget for contracted services• 81.4% of general fund expenditures for contracted services

• Centennial contracts 99% of its public works

Typical city of 100,000 ~ 500-1,000 employees• Centennial ~ 53

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City of Centennial

Approximately 30 square miles and 1,500 lane miles

DENVER

Colorado Springs , AF Academy & Pikes Peak ~ 38 MILES

15 MILESLITTLETON

AURORA

I-25

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CH2M HILL

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Founded on values

Established in 1946 by three engineers and a professor, CH2M HILL operated from its very

beginning on four simple values: take care of clients, deliver great work, do right by

employees, and stay true to our integrity and honesty.

Clair HillHolly Cornell James Howland Burke Hayes Fred Merryfield

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CH2M HILL is a global project delivery company, helping our clients build a better and more sustainable world

Fortune 400

Headquartered in Douglas County, Colorado

Operations on all continents

More than 24,000 employees

Employee-owned

Broadly diversified

$6.3 billion in revenue

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CH2M HILL today

London 2012 Olympic and Paralympic Games

Panama Canal Expansion Program

U.S. Forces Korea Base Relocation in South Korea

Masdar City—the 1st carbon neutral, fully sustainable city in Abu Dhabi, UAE

Design-build of a new reverse osmosis water treatment plant in Bonita Springs, Florida

First offshore development on North Slope in Prudhoe Bay, Alaska

Centennial, Colorado – largest transition of Public Works to private operations in the US

Extraordinary projects

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“Everyday Excellence” values drive our business

People first

Safety

Quality

Integrity

Citizenship

Respect

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The “Little Yellow Book”

Partnering Process

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History and selection

2001 - City incorporated from Arapahoe County

• IGA for County Sheriff and public works

September 2007 – Decision to end County public works support in 8 months

October 2007 - Merrick & Co. hired to manage transition

January 24, 2008 – Request for Qualifications

February 19, 2008 – Request for Proposals

March 10, 2008 – Selection recommendation to Council

April 2008 – Contract negotiated with CH2M HILL

July 1, 2008 – Contract public works service began

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Service level analysis

Merrick & Company retained in October 2007 to evaluate Arapahoe County’s level of service and the RFQ/RFP process

Merrick reviewed existing County services, including:

• Snow and ice control management

• Street sweeping

• Tons of potholes patched

• Signs replaced

• Citizen requests – call volumes

• Emergency response

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RFQ – January 24, 2008

Identified three proposers qualified to respond to an RFP:

• CH2M HILL

• Parsons Commercial Technology Group

• RG Consulting Engineers

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RFP - February 19, 2008

RFP requested two separate submittals:

• Written proposal

• Cost proposal

City “in-house” model/cost prepared

City price sealed

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RFP process

Step 1 – Quality-based selection

• Proposals ranked independent of costs

Step 2 – Costs reviewed separately

Step 3 – Costs were compared to the City’s in-house estimate

Step 4 – Presentation and interviews

Step 5 – Selection

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N.P.V. Financial Analysis

Net present value

• All proposals adjusted for NPV over 5-year term

• City credited with assets Equipment

Capital reserve

Materials, fuel and other purchases

• No adjustment for contractor costs since City does not obtain assets in those scenarios

• Final comparison – NPV basis

• No significant advantage to in-house operation

2020

Scope of Work

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Pavement maintenance

85% of potholes in 24 hours

1,000 tons of patching/year

45,000 lbs of crack filling

300 tons of gravel

City pays for asphalt materials

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Snow plowing

One pass on 689 lane-miles in 12 hours

815 lane miles of non-plowed Residential roads

60 12-hour call-outs per year

$24,882 per additional call-out

Real-time GPS tracking mandatory

City pays for deicing chemicals and materials

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Road work

Concrete maintenance

Asphalt patching – 3 types

Street cut permits

• + $500,000

Pedestrian Ramp Concrete Radius

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Traffic engineering

500 new signs per year

7-year replacement of existing signs

15,400 feet of preformed stop bars

1.1 million feet of latex striping

10 signal warrants

16 NTMP requests evaluated

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Traffic services

Intersection improvements

Traffic impact studies

School safety assessment

Crash analysis

Central system operations

Timing plans

Inventory

Warrant studies

Annual traffic count program

Traffic calming

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Signs and pavement markings

Engineering studies for signing and striping plans

Annual inspection program

Maintenance program

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Performance measures

Priority 1 – 24 hrs

Priority 2 – 72 hrs

Priority 3 – 7-10 days

Priority 4 – Maximize materials and efficiency

Request Priority

Average Time to Close (days)

1 0.42

2 1.21

3 3.87

4 N/A

Example of February 2009 PerformanceTraffic Services

Quarterly/annual reviews “Compass Report” in Council packets

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Transportation planning

Coordinate with other agencies

• Active cooperation with MPO, CDOT, local counties and cities

Provide support to city capital program management

• Recommendations for 5- and 10-year projects

Identify funding sources and prepare federal, state and local grant submissions

Conduct transportation and traffic engineering reviews for development plans

Conduct traffic study reviews for development plans

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Traffic services

Traffic signals

• Provide operational oversight of 70 signals

• Signal timing, coordination and maintenance

Traffic studies

• Evaluate intersection signal warrant studies

• Evaluate safety-related concerns - school districts’ requests

Traffic sign inventory and maintenance

• Inspect and replace on a 7-year schedule

• Apply current MUTCD standards

Pavement markings

• Crosswalks, stop bars, striping, other thermoplastic markings

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Traffic services

Neighborhood traffic safety

• Manage and prioritize citizen requests

• Make recommendations for improvements

Traffic accident analysis

• Analyze severity and identify trends

• Use GIS to visually represent trends

Intersection improvement program

• Inspected for type and condition of traffic control devices, geometric issues, and sight distance issues

• Recommended improvements prioritized and categorized as major or minor improvements

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Professional Services Agreement

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Terms

Five-year term

July 1, 2008 to June 30, 2013

Renewable for up to 5 additional 1-year terms

Cost control and risk management

• Fuel and material purchases

• Snow removal

• Required to manage to a fixed budget

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Performance measurements

Performance standards, reporting and oversight incorporated into contract

Examples of performance standards:

• 400 tons of pothole patching per year

• Primary and secondary snow routes clear in 12 hours

• Emergency response as soon as safely practical, but not to exceed 2 hours; crews on site in 4 hours

• Customer calls answered within 2 minutes, 80% of the time

Penalties apply for unsatisfactory and non-performance

Work within the contract may be traded/exchanged

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Benefits

Pre-determined costs mitigate future cost increases

City redirects snow removal resources in localized storms

“Reach-back” to CH2M HILL corporate resources

Contractor can flex work force to changing demands

Contract allows for work trade-offs per citizen demand

One contract and one point of contact

NO PERSONNEL WORRIES – no discipline

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Value exchange table2009 EQUIVALENT VALUES OF MAINTENANCE ACTIVITIES

    2009 Number of units in these columns are cost equivalent to 1.00 units in the Maintenance Activity Column

    Unit Example: 0.091 CY of curb and gutter replacement costs the same as 1.00 T of major patching

    Value                    

Maintenance     Pothole Patch Major Crack Gravel ADA Xpan CGSW Curb &  

Activity     Patch Back Patch Seal Maint Ramp Apron Comb Gutter Sidewalk

  Units   T T T T T CY CY CY CY CY

Pothole patch T $ 93.00 1.000 1.500 1.755 0.058 3.720 0.175 0.204 0.175 0.160 0.171

Patch Back T $ 62.00 0.667 1.000 1.170 0.039 2.480 0.117 0.136 0.117 0.107 0.114

Major Patch T $ 53.00 0.570 0.855 1.000 0.033 2.120 0.100 0.116 0.100 0.091 0.097

Crack seal T $ 1,600.00 17.204 25.806 30.189 1.000 64.000 3.019 3.501 3.008 2.754 2.941

Gravel maint T $ 25.00 0.269 0.403 0.472 0.016 1.000 0.047 0.055 0.047 0.043 0.046

ADA ramps CY $ 530.00 5.699 8.548 10.000 0.331 21.200 1.000 1.160 0.996 0.912 0.974

Crosspans & Aprons CY $ 457.00 4.914 7.371 8.623 0.286 18.280 0.862 1.000 0.859 0.787 0.840

C,G & SW Comb. CY $ 532.00 5.720 8.581 10.038 0.333 21.280 1.004 1.164 1.000 0.916 0.978

Curb & Gutter CY $ 581.00 6.247 9.371 10.962 0.363 23.240 1.096 1.271 1.092 1.000 1.068

Sidewalk CY $ 544.00 5.849 8.774 10.264 0.340 21.760 1.026 1.190 1.023 0.936 1.000

Street Sweeping LM $ 40.00 0.430 0.645 0.755 0.025 1.600 0.075 0.088 0.075 0.069 0.074

Mowing & ROW AC $ 310.00 3.333 5.000 5.849 0.194 12.400 0.585 0.678 0.583 0.534 0.570

Lane Striping MI $ 3,696.00 39.742 59.613 69.736 2.310 147.840 6.974 8.088 6.947 6.361 6.794

Thermo markings SF $ 13.00 0.140 0.210 0.245 0.008 0.520 0.025 0.028 0.024 0.022 0.024

New sign Install EA $ 194.00 2.086 3.129 3.660 0.121 7.760 0.366 0.425 0.365 0.334 0.357

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Contract “values”

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Performance Standards – Citizen Requests

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Work – Plan vs Actual

Our Partnership Cost Savings and Awards

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Our Partnership

Partners in Public Works since 2008

Providing CIP support at no cost

Code Compliance Synergies with Public Works

• CIP and Code efficiencies provide City of Centennial 2012 Fiscal Budget Savings - $422,000

Capital Asphalt and Concrete Program Management

Computerized Modeling of Snow routing

• Optimizing Routes for greater efficiency in time, materials and fuel

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Our Awards

Public Works Administration for Innovative Customer Service Call Center from American Public Works Association Colorado Chapter

National Council for Public Private Partnerships (NCPPP) - The partnership for public works services – one of the largest of its kind in the nation – selected in the Service Award category

Two articles in American and City County Magazine

National League of Cities Municipal Excellence finalist and presentation with City Manager at NLC

Our Centennial partnership will be featured in April next year at the Alliance for Innovation Transforming Local Governments conference

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Lessons Learned

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Lessons learned

Companies do not enjoy government immunity Performance standards are the key: tons, miles, hours, etc. Incentives, self-auditing, reporting & GPS tracking Eliminate uncertainties for bidders – fuel, asphalt, de-icers Allow flexibility to adjust quantities – trade-offs Lock-in experienced team up-front Eliminate “nickel & dime” changes in scope QA/QC program – clearly define how to monitor scope delivery Simplify how minor amendments are negotiated Define monthly and annual report contents Meet regularly – you cannot over-communicate Establish a true partnership with your contractor

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Questions?