Partnering forPublic Works

Dave Zelenok, City of CentennialPeter 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 Incorporated

February 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 588,349Colorado Springs 376,427Aurora 311,794Lakewood 140,305Fort Collins 133,899Thornton 110,880Arvada 106,328Westminster 106,195Pueblo 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 CentennialApproximately 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 valuesEstablished 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

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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 0.422 1.213 3.874 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?