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Partnering for Public Works

Partnering for Public Works. Dave Zelenok, City of Centennial Peter Cohlmia, CH2M HILL November 10, 2011. Presentation outline. City of Centennial CH2M HILL Partnering Process Partnering Cost Savings and Awards Lessons Learned Questions. City of Centennial. City of Centennial.

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Partnering for Public Works

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  1. Partnering forPublic Works Dave Zelenok, City of Centennial Peter Cohlmia, CH2M HILL November 10, 2011

  2. Presentation outline • City of Centennial • CH2M HILL • Partnering Process • Partnering Cost Savings and Awards • Lessons Learned • Questions

  3. City of Centennial

  4. 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

  5. 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

  6. Largest cities in Colorado – US Census Bureau 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 • US Census Bureau: http://www.census.gov/popest/cities/SUB-EST2007.html

  7. 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

  8. City of Centennial Approximately 30 square miles and 1,500 lane miles AURORA DENVER I-25 15 MILES LITTLETON Colorado Springs , AF Academy & Pikes Peak ~ 38 MILES

  9. CH2M HILL

  10. 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. Holly Cornell James Howland Burke Hayes Fred Merryfield Clair Hill

  11. 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

  12. 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

  13. “Everyday Excellence” values drive our business • People first • Safety • Quality • Integrity • Citizenship • Respect The “Little Yellow Book”

  14. Partnering Process

  15. 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

  16. 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

  17. RFQ – January 24, 2008 • Identified three proposers qualified to respond to an RFP: • CH2M HILL • Parsons Commercial Technology Group • RG Consulting Engineers

  18. RFP - February 19, 2008 • RFP requested two separate submittals: • Written proposal • Cost proposal • City “in-house” model/cost prepared • City price sealed

  19. 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

  20. 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

  21. Scope of Work

  22. 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

  23. 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

  24. Road work Concrete maintenance Asphalt patching – 3 types Street cut permits + $500,000 Concrete Radius Pedestrian Ramp

  25. 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

  26. 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

  27. Engineering studies for signing and striping plans Annual inspection program Maintenance program Signs and pavement markings

  28. Performance measures Traffic Services • Priority 1 – 24 hrs • Priority 2 – 72 hrs • Priority 3 – 7-10 days • Priority 4 – Maximize materials and efficiency Example of February 2009 Performance • Quarterly/annual reviews • “Compass Report” in Council packets

  29. 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

  30. 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

  31. 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

  32. Professional Services Agreement

  33. 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

  34. 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

  35. 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

  36. Value exchange table

  37. Contract “values”

  38. Performance Standards – Citizen Requests

  39. Work – Plan vs Actual

  40. Our Partnership Cost Savings and Awards

  41. 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

  42. 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

  43. Lessons Learned

  44. 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

  45. Questions?

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