Loading...
HomeMy WebLinkAbout2003-07-08 - Agendas - Final i ' 4 .% ~ • t Special City Council Meeting Final Agenda July 8, 2003 A special meeting of the Fayetteville City Council called by the Mayor will be held on July 8, 2003 at 6:00 PM immediately following the Agenda Session in Room RCED 120 at the Sam Walton College of Business, University of Arkansas, Fayetteville, Arkansas. 1 . Opening Remarks and Workshop Overview given by Mayor Dan Coody: Workshop presentations and discussions are centered on the means and methods by which the City of Fayetteville could use a design-build-operate project delivery method for its $ 125 million wastewater improvement project. Discussions, case histories, comparative analyses and other aspects of project delivery alternatives will be discussed. 2. Introduction To The Design-Build-Operate Project Delivery And Methodology: Mr. James Binder, P.E. President of Alternative Resources will be speaking. A general description of the alternative project delivery system including: (A) definition of the alternative process, (B) comparison of design-build-operate (DBO) process to the conventional design-bid-build (DBB) process, (C) description of current alternative project delivery applications in the water and wastewater industry and (D) presentation of comparative advantages and disadvantage of each process. 3. Legal Perspectives: Mr. Eric Peterson with Hawkins, Delafield & Wood will be speaking. A primer on the legal and contractual issues associated with different project delivery methods, including comparative risks, advantages and providers. 4. Alternative Project Delivery System Providers And Case Histories: Mr. Don Evans, President of Operation Management International, Inc. Mr. Dave Butler, Former Mayor of Atchison, Kansas, and Mr. Bill Rosenbaum, Vice President of Municipal Design/Build Project Development will be speaking. Pat McManus, Former Mayor of Lynn, Massachusetts will describe the City of Massachusetts' experience using design-build and design-build-operate concepts to address various municipal projects over a period of 18- years. The presentation will include an overview of the challenges that were addressed relating to funding programs, sewer line construction and system repair issues. 5. Implementation Strategy Using A Design-Build-Operate Concept-Fayetteville, Arkansas: Mr. James Binder, P.E. President of Alternative Resources will be speaking. This discussion will be focused upon the Fayetteville Wastewater System Improvement Project with specific responses to: (A) issues associated with implementing a DBO procurement, (B) potentials for cost savings, (C) scheduling implications,(D) coordination with the Revolving Loan Fund, (E) perception of EPA perspectives towards DBO methodology, (F) description of a conceptual process for Fayetteville's project, (G) predicted schedule using alternative project delivery method and (H) future actions needed to evaluate alternative approach. 6. Question and Answer Period. Meeting of July 8, 2003 Subject: Motion By: Seconded : Motion To: Lucas Jordan Reynolds Thiel Cook Marr Rhoads Davis Mayor Coody Subject: ' Q Motion By: nn Seconded : 1 10 CQ�/TFf de Motion To: � Lucas Jordan Reynolds Thiel Cook Marr Rhoads Davis Mayor Coody — Meeting of July 8, 2003 p n �7 /) / (� Subject: AAOJJJ c, 4-oc `i- (3 Motion By: Seconded : Motion To: Lucas Jordan J Reynolds Thiel Cook I/ Marr Rhoads Davis J Mayor Coody -- Subject: Motion By: Seconded : Motion To: Lucas Jordan Reynolds Thiel Cook Marr Rhoads Davis Mayor Coody .y MEETING AGENDA DESIGN-BUILD-OPERATE WORKSHOP (Special Called City Council Meeting) Fayetteville, Arkansas July 8, 2003 WORKSHOP TIME AND DATE: The Design-Build-Operate Workshop commences at 6:00 P.M. TUESDAY, July 8, 2003 (following an earlier City Council Agenda Session starting at 4:30 P.M.). WORKSHOP LOCATION : Sam M. Walton College of Business, University of Arkansas, Fayetteville, Arkansas- Auditorium-Room RCED 120. WORKSHOP OBJECTIVE : Workshop presentations and discussions are centered on the means and methods by which the City of Fayetteville could use a design-build-operate project delivery method for its $ 125 million wastewater improvement project. Discussions, case histories, comparative analyses and other aspects of project delivery alternatives will be discussed. ANTICIPATED AUDIENCE: Mayor and City Council of Fayetteville, Arkansas; Fayetteville City Administration; Citizens of Fayetteville; State and Local Elected Officials; State and Local Organizations; Members of Media; Arkansas Soil and Water Conservation Commission; Arkansas Department of Environmental Quality; Arkansas Department of Health; Municipal Consultants and Advisors WORKSHOP AGENDA : 1 ) OPENING REMARKS AND WORKSHOP OVERVIEW (6:00-6: 10 PM) Mayor Dan Coody City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 479-575-8330 mavorCo ci. favcttcville.ar.us 1 2) INTRODUCTION TO THE DESIGN-BUILD-OPERATE PROJECT DELIVERY AND METHODOLOGY (6: 10-6:25 PM) \ Mr. James Binder, P.E., President Alternative Resources, Inc. 9 Pond Lane Concord, MA 01742 978-371 -2054 ibinder(@alt-res.com A general description of-the alternative project delivery system including: (A) definition of the alternative process, (B) comparison of design-build-operate (DBO) process to the conventional design-bid-build (DBB) process, (C) description of current alternative project delivery applications in the water and wastewater industry and (D) presentation of comparative advantages and disadvantage of each process. 3) LEGAL PERSPECTIVES (6:25-6:40 PM) Mr. Eric Peterson Hawkins, Delafield & Wood l ff a Attorneys and Counselors at Law Q, A � p�j5� 67 Wall Street New York, NY 1005 / lb B � cnetersen(0dw.com A primer on the legal and contractual issues associated with different project delivery methods, including comparative risks, advantages and providers. 4) ALTERNATIVE PROJECT DELIVERY SYSTEM PROVIDERS AND CASE HISTORIES: A.1 Operations Management International, Inc. (6:40-6:55 PM) Don Evans, President 9193 South Jamaica Street, Suite 400 Englewood, CO 80112 Devans2(a)ch2m.com A.2 (Operations Management International Project) (6:55-7: 10 PM) . (,&Dave Butler Former Mayor of Atchison, Kansas . Butler will describe the City of Atchison, Kansas' experience using an alternative project delivery method for the upgrading of the municipality's water supply system. 2 B. 1 U.S. Filter Engineering and Construction (7 : 10-7:25 PM) Bill Rosenbaum, P.E. Vice President Municipal Design/Build Project Development L ( US Filter Engineering and Construction Ql 90 u Airside Business Park 250 Airside Drive Moon Township, 64 15108-2793 Direct: 412-809-6640 RosenbaumW(a,usfilter.com ✓ B.2 U S Filter Project Reference in LYNN, Massachusetts (7:25-7 :40 PM) Pat McManus Former Mayor of Lynn, MS Mr. McManus will describe the City of Lynn, Massachusetts' experience using design- build and design-build-operate concepts to address various municipal projects over a period of 18-years. The presentation will include an overview of the challenges that were addressed relating to funding programs, sewer line construction and system repair issues. 5) BREAK (7 :40-7:55 PM) 6) IMPLEMENTATION STRATEGY USING A DESIGN-BUILD-OPERATE CONCEPT-FAYETTEVILLE, ARKANSAS (7 : 55-8 : 10 PM) Mr. James Binder, P.E. Alternative Resources, Inc. 9 Pond Lane Concord, MA 01742 978-371 -2054 jbinderQalt-res.com This discussion will be focused upon the Fayetteville Wastewater System Improvement Project with specific responses to: (A) issues associated with implementing a DBO procurement, (B) potentials for cost savings, (C) scheduling implications,(D) coordination with the Revolving Loan Fund, (E) perception of EPA perspectives towards DBO methodology, (F) description of a conceptual process for Fayetteville's project, (G) predicted schedule using alternative project delivery method and (H) future actions needed to evaluate alternative approach. 'n QUESTION AND ANSWER PERIOD (8 : 10-9:00 PM) Mayor Dan Coody Moderator * WORKSHOP CONCLUDES AT 9 : 00 P.M. 3 Greg Boettcher - 7-8-03 Biograghy for Fa Wville.doc Page 1 W 101 V Biography James J . Binder, P . E . Alternative Resources, In c, 9 Pond Lane Concord, Massachusetts 01742 (978) 371 -2054 (978) 371 -7269 Mr. Binder is President of Alternative Resources, Inc. He is a graduate of Northeastern University, Boston , Massachusetts where he received both BS and MS degrees in Mechanical Engineering . He is a member of the Water Environment Federation and the National Council for Public-Private Partnerships. Mr. Binder is a registered professional engineer in eight states and has some 29 years of consulting experience, the past 20 years of which he has specialized in implementing DBO procurements for the management of municipal solid waste, water, wastewater, and residuals. Examples of recent water and wastewater DBO projects Mr. Binder has managed and/or served as principal-in-charge include Stockton , California , Sioux City, Iowa, Taunton , Gardner, and Plymouth , Massachusetts, Westerly and Smithfield , Rhode Island, Naugatuck, Connecticut, and Chester Borough , New Jersey. H:\BOOOUIM BINDERY-8-03 Biography for Fayetteville.dw r Eric S. Petersen Law Partner Hawkins, Delafield & Wood Eric Petersen heads the ten-attorney Public Contracts Group at the municipal law firm of Hawkins, Delafield & Wood in New York. He has, on behalf of municipal government, been the lead negotiator in more than 100 public works contract procurements resulting in design, construction, operation and management contracts with private service providers nationally and internationally valued at several billion dollars . Mr. Petersen has represented New York, San Diego, Massachusetts Water Resources Authority (Boston) , Charlotte, Los Angeles, Halifax, San Juan , St. Louis, Narragansett Bay Commission (Providence) , Montreal and Fresno, among numerous other cities, countries, districts, authorities, states and sovereign governments in his 29-year legal practice, which has encompassed all forms of public-private arrangements under which public works facilities are owned , built, operated and financed . As special counsel, he was the chief architect of the groundbreaking Cranston , Rhode Island wastewater project privatization and related USEPA approvals in which a private company contracted for the design and construction of tertiary treatment upgrades and for the long-term operation, maintenance, repair and replacement of Cranston 's plant and sewer system. In Seattle, Mr. Petersen authored the Tolt River design-build-operate water treatment plant contract as special counsel to the City, the first transaction of its kind in the water industry. He has also served as special counsel to Stockton (CA) , Fulton County (GA) , Laredo (TX) , Puerto Rico Aqueduct and Sewer Authority (PRASA) , Springfield (MA) , Sacramento (CA) , San Jose (CA) , Lynn (MA) , Naugatuck (CT) , Waterbury (CT) , Newport (RI) and several other municipalities in successfully completed water and wastewater project procurements . He currently represents Phoenix (AZ) , Spokane County (WA) , Lawrence (MA) , San Diego County Water Authority (CA) and Holyoke (MA) as special contract counsel on active water and wastewater project procurements. Mr. Petersen is a co-founder of the U . S . Conference of Mayors' Urban Water Council. He makes regular presentations at conferences organized by the Council and by AWWA/ WEF (Joint Management Conference) , the Design/ Build Institute of America, the National Council for Public-Private Partnerships, the International City Managers Association and other forums on legal, environmental, tax and financing topics critical to the water and wastewater industry, and has authorized numerous articles in the field . 339158. 1 001098 MSC Don S. Evans President and Chief Executive Officer, Operations Management International Inc. OM1 President, CH2M HILL Water Business Group Profile Don S. Evans has served as President and Chief Executive Officer of Operations Management International, Inc. (OMI) since 1986. He also is President of CH2M HILL's Water Business Group, having assumed that group's leadership in 1995. Mr. Evans is a career employee at CH2M HILL, joining the firm in 1973. During his career, he has been an executive, project manager, process engineer, and construction services manager in the water, wastewater, and public works industry. He also has considerable expertise in the wastewater collection field, including infiltration/inflow, computer modeling, systems evaluation and rehabilitation, and capital improvements. As president and chief executive officer of ONE, Mr. Evans manages 1,500 associates who operate, maintain and manage more than 180 water, wastewater, solid waste, and public works projects around the world. His dream has been to create an environment where people cant wait to get to work in the morning. He has fulfilled that dream by supporting OMI's unique commitment to quality and client service. OMI's operating creed, Quality as a Business Strategy, helped OMI earn the 2000 Malcolm Baldrige National Quality Award. OMI is one of only nine service companies to win the award, and is the only water services firm ever to win the award. As president of the CH2M HILL Water Business group Mr. Evans works with more than 1,000 people worldwide delivering engineering and consulting services to water companies, utilities, governments and industries. Mr. Evans holds bachelor's and master's degrees in civil engineering from Stanford University, and a master of business administration degree from Stanford. Ewm_Don Rw. 07ffi IX Greq Boettcher - WodRsho -Info-rev.doc P OperatingUSFIlter Company Profile USFifter Operating Services, Inc. (USFOS) is a part of the United States Filter Corporation (USFifter), North America's largest water company providing the most comprehensive water services for commercial, industrial, municipal and residential customers. The company delivers cost-effective, reliable systems guaranteed for quality, safety and compliance—providing water services to approximately 13.9 million people in more than 600 communities, and hundreds of thousands of industries and businesses. The Engineering News Record lists USFilter as Al among the Top 200 Environmental Firms in the U.S.—a record that the company has held over the past three years. Whether it's bottled water service for homes, sophisticated water treatment technologies for manufacturers, centralized treatment and resource recovery, or the design, construction, operation and financing of entire water and wastewater management systems, USFilter delivers cost-effective, reliable systems to meet our customers requirements for quality, safety and environmental compliance. Through the desigNbuildloperate (DBO) service delivery option, USFOS brings together these resources and capabilities to deliver municipal clients a comprehensive approach that includes: • Operations, Maintenance and Management (0&M). USFOS has more than 50 years of experience in providing 0&M services to governmental and industrial clients throughout North America. Our fine currently manages more than 550 municipal and industrial facilities, serving a client base of over 380 governmental and industrial clients. USFOS' wastewater experience includes wastewater plants similar in size the City of Fayetteville's Paul R. Noland Wastewater Treatment Facility. Examples of clients from surrounding stales include Oklahoma City, OK, Bartlesville, OK, and New Orleans, LA. • Engineering and Construction. USFifter Engineering and Construction (USFilter E&C) is the USFifter company that delivers comprehensive engineering, construction management and related services. They have over 90 years of experience in the design and construction of water and wastewater treatment facilities. In that time, USFilter E&C has provided services for literally hundreds of governmental and industrial diem. They are also leaders in implementing designlbuild and DBO solutions for new water and wastewater treatment plants and the expansion of existing facilities. • Technologies and Equipment One of the greatest strengths of USFOS is our ability to improve the quality of life for the citizens of a community through application of a wide range of treatment technologies—from basic to cutting-edge—all while improving health protection and the environment. As the manufacturer of virtually every technology used to treat water and wastewater, USFilter company experts provide unmatched technical support and know-how. Today, USFilter is North America's largest water company providing the most comprehensive water services and technology for commercial, industrial, municipal and residential water and wastewater treatment customers. Pro/sets As highlighted above, the USFOS DBO project approach combines all the separate strengths of our company, focusing them on meeting the complete needs of our clients. Over the past few years our company has carried out a number of successful projects. t77. n - . _ � USFi6ger Greg Boettcher - Worksho -Info-rev.doc 1p Y USFilter Operating Services, Inc. Some examples of projects include the following: • Atlanta, GA - 20-year DBO project for the beneficial reuse and, management and biosolids from the City's three wastewater treatment plants. • Lynn, MA - Client since 1989 with multiple contracts for 0&M and design/build projects for the City's water, wastewater and stormwater facilities and systems. • Southern Water and Sewer District, Floyd County Southern Water, KY - 20-year contract including the DBO project for 21 miles of new water line, three water tanks and three water pump stations. • Tampa Bay Water - DBO for new regional 66-MGD water treatment plant. • Taunton, MA - DBO project renovations at the 8.34-MGD wastewater plant for tertiary treatment. • Washington Borough, NJ - 15-year contract including DBO contract for new 1 .2-MGD wastewater plant • Woonsocket, RI - 20-year contract including DBO project for the upgrade/expansion of a 16-MGD secondary wastewater treatment plant, including Biological Nutrient Removal. Speakers B/// Rosenbaum, P.E. Mr. Rosenbaum is Vice President of Municipal Design/Build Project Development with USFilter E&C. He has over 28 years experience in the development, design, construction and operation of water and wastewater projects. Mr. Rosenbaum has managed groups responsible for detailed design, development of remediation technologies, turnkey construction and operation. He currently manages the USFilter EX group responsible for the delivery of design/build services, encompassing responsibility for concept development, teaming arrangements, proposal phase design and pricing and sales support for all USFilter municipal DBO proposals. This group also has process engineering responsibility from proposal phase through startup of the completed project. Among other projects, Mr. Rosenbaum has been responsible for the development of the Design/Build component of the following projects: • Plymouth, MA - $23 million DBO project for a greenfield wastewater treatment facility • Woonsocket, RI - $15 million DBO project for the upgrade and expansion of an existing wastewater treatment facility • Tampa Bay, FL - $88 million DBO project for a new regional surface water treatment facility • Lynn, MA - $65 million design/build project for sewer separation for the elimination of combined sewer overflows • Atlanta, GA - $52 million DBO project to provide for biosolids beneficial use at the City's three largest wastewater treatment plants • Indianapolis, Indiana - $1 .5 billion project for management and operations of the City's water supply, including $20 million in capital improvements annually to be completed using a design/build approach Presentation Outline . Mr. Rosenbaum's presentation will provide an explanation of why many cities have used the DBO concept to carry out their projects. These reasons have typically included cost savings and the transfer of risk. The savings have come from the designer, contractor and operator working together and using the total life cycle cost to make decisions. The transfer of risk from a municipality to a private contractor has helped cities achieve stable rates through fixed prices and operational performance guarantees of the new (/SFi/IGef 2 Greg Boettcher - Worksho Info-rev.doc Pae 3 USFilter Operating Services, Inc. facilities. The City of Fayetteville has discussed concerns about the use of State Revolving Loan funds, a tight time-frame and questions regarding procurement. Mr. Rosenbaum's presentation will discuss successful projects which have overcome all of these issues. Example Project The City of Lynn, Massachusetts, has contracted with USFilter companies under multiple contracts over the past 18 years. These contracts have involved providing 0&M for the City's 15.3-MGD water treatment plant, as well as their 25.8-MGD wastewater treatment plant. In 1990, USFOS oversaw a $53.8-million upgrade to the City's secondary treatment at the wastewater plant. Between 1996 and 1998, USFOS also oversaw $10 million in capital improvements at this same facility. . In addition, USFOS is currently implementing $14 million in capital improvements for the wastewater facility under a three-year program, using a designfbuild approach. The current capital improvements program at the City's wastewater facilities are being implemented using State Revolving Fund funds for financing. In December 2000, the City awarded USFilter E&C a contract to designlbuild a system to mitigate combined sewer overflows (CSOs) in the City's sewer system. Valued at $48 million, this nine-year capital improvement project is believed to be the nation's first CSO desigrdbuild project and, according to City estimates, is expected to save in excess of approximately $300 million. Pat McManna Mr. Pat McManus is the former Mayor of Lynn, Massachusetts. During his tenure the City carried out improvement projects to its water treatment plant, wastewater treatment plant and sewer collection system. Pat is an attorney and provides consulting to companies and cities involved in public private partnerships. Presentation Outline Mayor McManus' presentation will cover the City of Lynn's experience in using the designtbuild and DBO concepts for water and wastewater plants and sewer line projects. The City of Lynn overcame many of the challenges that the City of Fayetteville is now experiencing using State Revolving Loan funds, and dealt with sewer line construction and repair type of issues that now face your City. "Ai{ter s r. NOTIFICATION LIST FOR DESIGN-BUILD-OPERATE WORKSHOP: Mayor and City Council of Fayetteville, Arkansas Fayetteville City Administration Hugh Earnest Steve Davis Gary Dumas Tim Conklin Ray Boudreaux Kit Williams David Jurgens Gary Coover Peggy Vice Coy Hurd Chamber of Commerce-Mr. Bill Ramsey Members of Media Newspapers Government Channel City Web Site (?) Engineering/Architectural Firms U S Infrastructure McClelland Cromwell and Associates Crafton Tull and Associates Wastewater Project Consultants Garver Engineers McGoodwin, Williams and Yates RJN Group Black and Veatch Burns and McDonnell CH2M Hill Environmental Consulting Operations Financial Consultants Dennis Hunt (Stephens, Inc.) Arkansas Soil and Water Conservation Commission Randy Young Ron Hill Scott Savoy Mike Core Arkansas Department of Environmental Quality Mary Leath Arkansas Department of Health Robert Hart Environmental Pollution Agency — Region 6 Richard Greene Arkansas Municipal League Don Zimmerman Representatives of Arkansas Municipalities Mayor of Springdale Mayor of Eureka Springs-Kathy Harrison Mayor of Springdale Mayor of Rogers Mayor of Bentonville City of Silom Springs Mayor of Farmington Mayor of Greenland Mayor of Goshen Mayor of Elkins Mayor of Johnson Kent Myers of Hot Springs City of Conway-Tab Townsend Springdale Utilities-Rene Langston Northwest Arkansas Regional Planning Commission Jeff Hawkins Uvalde Lindsey (Ozark International Consultants) Senator Sue Madison (DBO Bill) Steven Stewart (Congressman Boozman's Office) Senator Blanche Lincoln' s Office Senator Mark Pryor's Office Washington County Judge Jerry Hunton John Gibson Fayetteville Citizens on City Clerk's e-mail list University of Arkansas Leo Yanda Findlay Edwards Concerned Citizens John Lewis Curtis Shipley Gary Head Arkansas Highway and Transportation Department Harold Beaver Beaver Water District Alan Fortenberry Coleen Gaston MEETING AGENDA DESIGN-BUILD-OPERATE WORKSHOP (Special Called City Council Meeting) Fayetteville, Arkansas July 8, 2003 t WORKSHOP TIME AND DATE : The Design-Build-Operate Workshop commences at 6:00 P.M. TUESDAY, July 8, 2003 (following an earlier City Council Agenda Session starting at 4:30 P.M.). WORKSHOP LOCATION : Sam M. Walton College of Business, University of Arkansas, Fayetteville, Arkansas- Auditorium-Room RCED 120. WORKSHOP OBJECTIVE : Workshop presentations and discussions are centered on the means and methods by which the City of Fayetteville could use a design-build-operate project delivery method for its $ 125 million wastewater improvement project. Discussions, case histories, comparative analyses and other aspects of project delivery alternatives will be discussed. ANTICIPATED AUDIENCE: Mayor and City Council of Fayetteville, Arkansas; Fayetteville City Administration; Citizens of Fayetteville; State and Local Elected Officials; State and Local Organizations; Members of Media; Arkansas Soil and Water Conservation Commission; Arkansas Department of Environmental Quality; Arkansas Department of Health; Municipal Consultants and Advisors WORKSHOP AGENDA : 1) OPENING REMARKS AND WORKSHOP OVERVIEW (6:00-6: 10 PM) Mayor Dan Coody City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 479-575-8330 mayor a(),,ci . favetteville.ar.us 1 v 2) INTRODUCTION TO THE DESIGN-BUILD-OPERATE PROJECT DELIVERY AND METHODOLOGY (6: 10-6:25 PM) Mr. James Binder, P.E., President Alternative Resources, Inc. 9 Pond Lane Concord, MA 01742 978-371 -2054 ibinder ,alt-res.com A general description of the alternative project delivery system including: (A) definition of the alternative process, (B) comparison of design-build-operate (DBO) process to the conventional design-bid-build (DBB) process, (C) description of current alternative project delivery applications in the water and wastewater industry and (D) presentation of comparative advantages and disadvantage of each process. 3) LEGAL PERSPECTIVES (6:25-6:40 PM) Mr. Eric Peterson Hawkins, Delafield & Wood Attorneys and Counselors at Law 67 Wall Street New York, NY 1005 Vetersen(�hdw.com A primer on the legal and contractual issues associated with different project delivery methods, including comparative risks, advantages and providers. 4) ALTERNATIVE PROJECT DELIVERY SYSTEM PROVIDERS AND CASE HISTORIES: A.1 Operations Management International, Inc. (6:40-6:55 PM) Don Evans, President 9193 South Jamaica Street, Suite 400 Englewood, CO 80112 Devans2Q,Ch2m.com A.2 (Operations Management International Project) (6:55-7: 10 PM) Dave Butler Former Mayor of Atchison, Kansas Mr. Butler will describe the City of Atchison, Kansas' experience using an alternative project delivery method for the upgrading of the municipality's water supply system. 2 B. 1 U.S. Filter Engineering and Construction (7 : 10-7 :25 PM) Bill Rosenbaum, P.E. Vice President Municipal Design/Build Project Development US Filter Engineering and Construction Airside Business Park 250 Airside Drive Moon Township, PA 15108-2793 Direct: 412-809-6640 Rosenbaum W(d,us fi lter.com B.2 U S Filter Project Reference in LYNN, Massachusetts (7:25-7:40 PM) Pat McManus Former Mayor of Lynn, MS Mr. McManus will describe the City of Lynn, Massachusetts' experience using design- build and design-build-operate concepts to address various municipal projects over a period of 18-years. .The presentation will include an overview of the challenges that were addressed relating to funding programs, sewer line construction and system repair issues. 5) BREAK (7:40-7 :55 PM) 6) IMPLEMENTATION STRATEGY USING A DESIGN-BUILD-OPERATE CONCEPT-FAYETTEVILLE, ARKANSAS (7 :55-8: 10 PM) Mr. James Binder, P.E. Alternative Resources, Inc. 9 Pond Lane Concord, MA 01742 978-371 -2054 jbinder(d)alt-res.com This discussion will be focused upon the Fayetteville Wastewater System Improvement Project with specific responses to: (A) issues associated with implementing a DBO procurement, (B) potentials for cost savings, (C) scheduling implications,(D) coordination with the Revolving Loan Fund, (E) perception of EPA perspectives towards DBO methodology, (F) description of a conceptual process for Fayetteville's project, (G) predicted schedule using alternative project delivery method and (H) future actions needed to evaluate alternative approach. 'n QUESTION AND ANSWER PERIOD (8 : 10-9:00 PM) Mayor Dan Coody Moderator * WORKSHOP CONCLUDES AT 9 : 00 P.M. 3 Greg Boettcher - 7-8-03 Bio rahFa etteville.doc Pa e 1 low f Biography James J . Binder, P . E. Alternative Resources, In c. 9 Pond Lane Concord, Massachusetts 01742 (978) 371 -2054 (978) 371 -7269 Mr. Binder is President of Alternative Resources, Inc. He is a graduate of Northeastern University, Boston , Massachusetts where he received both BS and MS degrees in Mechanical Engineering . He is a member of the Water Environment Federation and the National Council for Public-Private Partnerships. Mr. Binder is a registered professional engineer in eight states and has some 29 years of consulting experience, the past 20 years of which he has specialized in implementing DBO procurements for the management of municipal solid waste , water, wastewater, and residuals . Examples of recent water and wastewater DBO projects Mr. Binder has managed and/or served as principal-in-charge include Stockton , California, Sioux City, Iowa, Taunton, Gardner, and Plymouth , Massachusetts, Westerly and Smithfield, Rhode Island , Naugatuck, Connecticut, and Chester Borough , New Jersey. HA9000UIM BINDERY-8-03 Biography for Fayetteville.doc i Eric S. Petersen Law Partner Hawkins, Delafield & Wood Eric Petersen heads the ten-attorney Public Contracts Group at the municipal law firm of Hawkins, Delafield & Wood in New York. He has, on behalf of municipal government, been the lead negotiator in more than 100 public works contract procurements resulting in design, construction , operation and management contracts with private service providers nationally and internationally valued at several billion dollars. Mr. Petersen has represented New York, San Diego, Massachusetts Water Resources Authority (Boston) , Charlotte, Los Angeles, Halifax, San Juan , St. Louis, Narragansett Bay Commission (Providence) , Montreal and Fresno, among numerous other cities, countries, districts, authorities, states and sovereign governments in his 29-year legal practice, which has encompassed all forms of public-private arrangements under which public works facilities are owned, built, operated and financed . As special counsel, he was the chief architect of the groundbreaking Cranston, Rhode Island wastewater project privatization and related USEPA approvals in which a private company contracted for the design and construction of tertiary treatment upgrades and for the long-term operation, maintenance, repair and replacement of Cranston 's plant and sewer system. In Seattle, Mr. Petersen authored the Tolt River design-build-operate water treatment plant contract as special counsel to the City, the first transaction of its kind in the water industry. He has also served as special counsel to Stockton (CA) , Fulton County (GA) , Laredo (TX) , Puerto Rico Aqueduct and Sewer Authority (PRASA) , Springfield (MA) , Sacramento (CA) , San Jose (CA) , Lynn (MA) , Naugatuck (CT) , Waterbury (CT) , Newport (RI) and several other municipalities in successfully completed water and wastewater project procurements. He currently represents Phoenix (AZ) , Spokane County (WA) , Lawrence (MA) , San Diego County Water Authority (CA) and Holyoke (MA) as special contract counsel on active water and wastewater project procurements. Mr. Petersen is a co-founder of the U . S. Conference of Mayors' Urban Water Council . He makes regular presentations at conferences organized by the Council and by AWWA / WEF (Joint Management Conference) , the Design / Build Institute of America, the National Council for Public-Private Partnerships, the International City Managers Association and other forums on legal, environmental, tax and financing topics critical to the water and wastewater industry, and has authorized numerous articles in the field . 339158. 1 001098 MSC Don S. Evans President and Chief Executive Officer, Operations Management International Inc. OM1 President, CH2M HILL Water Business Group Profile Don S. Evans has served as President and Chief Executive Officer of Operations Management Intemational, Inc. (OMI) since 1986. He also is President of CH2M HILL's Water Business Group, having assumed that group's leadership in 1995. Mr. Evans is a career employee at CH2M HILL, joining the firm in 1973. During his career, he has been an executive, project manager, process engineer, and construction services manager in the water, wastewater and public works industry. He also has considerable expertise in the wastewater collection field, including infiltration/inflow, computer modeling, systems evaluation and rehabilitation, and capital improvements. As president and chief executive officer of OMI, Mr. Evans manages 1,500 associates who operate, maintain and manage more than 180 water, wastewater, solid waste, and public works projects around the world. His dream has been to create an environment where people cant wait to get to work in the morning. He has fulfilled that dream by supporting OMI's unique commitment to quality and client service. OMI's operating creed, Quality as a Business Strategy, helped OMI earn the 2000 Malcolm Baldrige National Quality Award. OMI is one of only nine service companies to win the award, and is the only water services firm ever to win the award. As president of the CH2M HILL Water Business group Mr. Evans works with more than 1,000 people worldwide delivering engineering and consulting services to water companies, utilities, governments and industries. Mr. Evans holds bachelor's and masters degrees in civil engineering from Stanford University, and a master of business administration degree from Stanford. Hens Don Rev. 07N3M J'Greg Boettcher - Worksho Info-rev.doc Pa e 1 OperatingUSFilter Company Profile USFifter Operating Services, Inc. (USFOS) is a part of the United States Fitter Corporation (USFifter), North America's largest water company providing the most comprehensive water services for commercial, industrial, municipal and residential customers. The company delivers cost-effective, reliable systems guaranteed for quality, safety and compliance—providing water services to approximately 13.9 million people in more than 600 communities, and hundreds of thousands of industries and businesses. The Engineering News Record lists USFifter as #1 among the Top 200 Environmental Finns in the U.S.—a record that the company has held over the past three years. Whether it's bottled water service for homes, sophisticated water treatment technologies for manufacturers, centralized treatment and resource recovery, or the design, construction, operation and financing of entire water and wastewater management systems, USFifter delivers cost-effective, reliable systems to meet our customers requirements for quality, safety and environmental compliance. Through the design/build/operate (DBO) service delivery option, USFOS brings together these resources and capabilities to deliver municipal clients a comprehensive approach that includes: • Operations, Maintenance and Management (O&M). USFOS has more than 50 years of experience in providing 0&M services to governmental and industrial clients throughout North America. Our fine currently manages more than 550 municipal and industrial facilities, serving a dient base of over 380 governmental and industrial clients. USFOS' wastewater experience includes wastewater plants similar in size the City of Fayetteville's Paul R. Noland Wastewater Treatment Facility. Examples of clients from surrounding states include Oklahoma City, OK, Bartlesville, OK, and New Orleans, LA. • Engineering and Construction. USFilter Engineering and Construction (USFilter E&C) is the USFilter company that delivers comprehensive engineering, construction management and related services. They have over 90 years of experience in the design and construction of water and wastewater treatment facilities. In that time, USFifter E&C has provided services for literally hundreds of govemmental and industrial dient. They are also leaders in implementing design/build and DBO solutions for new water and wastewater treatment plants and the expansion of existing facilities. • Technologies and Equipment. One of the greatest strengths of USFOS is our ability to improve the quality of life for the citizens of a community through application of a wide range of treatment technologies—from basic to cutlingedge—all while improving health protection and the environment. As the manufacturer of virtually every technology used to treat water and wastewater, USFilter company experts provide unmatched technical support and know-how. Today, USFilter is North America's largest water company providing the most comprehensive water services and technology for commercial, industrial, municipal and residential water and wastewater treatment customers. Projects As highlighted above, the USFOS DBO project approach combines all the separate strengths of our company, focusing them on meeting the complete needs of our clients. Over the past few years our company has carried out a number of successful projects. -raga -'lie's ' . Greg Boettcher - Worksho -Info-r WMC Page 2 USFilter Operating services, Inc. Some examples of projects include the following: • Atlanta, GA — 20-year DBO project for the beneficial reuse and management and biosolids from the City's three wastewater treatment plants. • Lynn, MA — Client since 1989 with multiple contracts for 0&M and design/build projects for the City's water, wastewater and stormwater facilities and systems. • Southern Water and Sewer District, Floyd County Southern Water, KY — 20-year contract including the DBO project for 21 miles of new water line, three water tanks and three water pump stations. • Tampa Bay Water — DBO for new regional 66-MGD water treatment plant. • Taunton, MA — DBO project renovations at the 8.34-MGD wastewater plant for tertiary treatment. • Washington Borough, NJ — 15-year contract including DBO contract for new 1 .2-MGD wastewater plant. • Woonsocket, RI — 20-year contract including DBO project for the upgrade/expansion of a 16-MGD secondary wastewater treatment plant, including Biological Nutrient Removal. Speakers B/// Rosenbaum, P.E. Mr. Rosenbaum is Vice President of Municipal Design/Build Project Development with USFilter E&C. He has over 28 years experience in the development, design, construction and operation of water and wastewater projects. Mr. Rosenbaum has managed groups responsible for detailed design, development of remediation technologies, turnkey construction and operation. He currently manages the USFilter E&C group responsible for the delivery of design/build services, encompassing responsibility for concept development, teaming arrangements, proposal phase design and pricing and sales support for all USFilter municipal DBO proposals. This group also has process engineering responsibility from proposal phase through startup of the completed project. Among other projects, Mr. Rosenbaum has been responsible for the development of the Design/Build component of the following projects: • Plymouth, MA - $23 million DBO project for a greenfield wastewater treatment facility • Woonsocket, RI — $15 million DBO project for the upgrade and expansion of an existing wastewater treatment facility • Tampa Bay, FL — $88 million DBO project for a new regional surface water treatment facility • Lynn, MA — $65 million design/build project for sewer separation for the elimination of combined sewer overflows • Atlanta, GA — $52 million DBO project to provide for biosolids beneficial use at the City's three largest wastewater treatment plants • Indianapolis, Indiana — $1 .5 billion project for management and operations of the City's water supply, including $20 million in capital improvements annually to be completed using a design/build approach Presentation Outline Mr. Rosenbaum's presentation will provide an explanation of why many cities have used the DBO concept to carry out their projects. These reasons have typically included cost savings and the transfer of risk. The savings have come from the designer, contractor and operator working together and using the total life cycle cost to make decisions. The transfer of risk from a municipality to a private contractor has helped cities achieve stable rates through fixed prices and operational performance guarantees of the new USFi/Fer 2 [Greg Boettcher - Worksho Info-rev.doc Albk Pa e 3 USFilter Operating services, Inc. facilities. The City of Fayetteville has discussed concerns about the use of State Revolving Loan funds, a tight time-frame and questions regarding procurement. Mr. Rosenbaum's presentation will discuss successful projects which have overcome all of these issues. Example Project The City of Lynn, Massachusetts, has contracted with USFilter companies under multiple contracts over the past 18 years. These contracts have involved providing 08M for the City's 15.3-MGD water treatment plant, as well as their 25.8-MGD wastewater treatment plant. In 1990, USFOS oversaw a $53.8-million upgrade to the City's secondary treatment at the wastewater plant. Between 1996 and 1998, USFOS also oversaw $10 million in capital improvements at this same facility. In addition, USFOS is currently implementing $14 million in capital improvements for the wastewater facility under a three-year program, using a design/build approach. The current capital improvements program at the City's wastewater facilities are being implemented using State Revolving Fund funds for financing. In December 2000, the City awarded USFilter E&C a contract to design/build a system to mitigate combined sewer overflows (CSOs) in the City's sewer system. Valued at $48 million, this nine-year capital improvement project is believed to be the nation's first CSO designlbuild project and, according to City estimates, is expected to save in excess of approximately $300 million. Pat McManus: Mr. Pat McManus is the former Mayor of Lynn, Massachusetts. During his tenure the City carried out improvement projects to its water treatment plant, wastewater treatment plant and sewer collection system. Pat is an attorney and provides consulting to companies and cities involved in public private partnerships. Presentation Outline Mayor McManus' presentation will cover the City of Lynn's experience in using the design/build and DBO concepts for water and wastewater plants and sewer line projects. The City of Lynn overcame many of the challenges that the City of Fayetteville is now experiencing using State Revolving Loan funds, and dealt with sewer line construction and repair type of issues that now face your City. (/SFilIGe� 3 • e NOTIFICATION LIST FOR DESIGN-BUILD-OPERATE WORKSHOP: Mayor and City Council of Fayetteville, Arkansas Fayetteville City Administration Hugh Earnest Steve Davis Gary Dumas Tim Conklin Ray Boudreaux Kit Williams David Jurgens Gary Coover Peggy Vice Coy Hurd Chamber of Commerce-Mr. Bill Ramsey Members of Media Newspapers Government Channel City Web Site (?) Engineering/Architectural Firms U S Infrastructure McClelland Cromwell and Associates Crafton Tull and Associates Wastewater Project Consultants Garver Engineers McGoodwin, Williams and Yates RJN Group Black and Veatch Burns and McDonnell CH2M Hill Environmental Consulting Operations Financial Consultants Dennis Hunt (Stephens, Inc.) Arkansas Soil and Water Conservation Commission Randy Young Ron Hill Scott Savoy Mike Core Arkansas Department of Environmental Quality Mary Leath Arkansas Department of Health Robert Hart Environmental Pollution Agency — Region 6 Richard Greene Arkansas Municipal League Don Zimmerman Representatives of Arkansas Municipalities Mayor of Springdale Mayor of Eureka Springs-Kathy Harrison Mayor of Springdale Mayor of Rogers Mayor of Bentonville City of Silom Springs Mayor of Farmington Mayor of Greenland Mayor of Goshen Mayor of Elkins Mayor of Johnson Kent Myers of Hot Springs City of Conway-Tab Townsend Springdale Utilities-Rene Langston Northwest Arkansas Regional Planning Commission Jeff Hawkins Uvalde Lindsey (Ozark International Consultants) Senator Sue Madison (DBO Bill) Steven Stewart (Congressman Boozman's Office) Senator Blanche Lincoln's Office Senator Mark Pryor's Office Washington County Judge Jerry Hunton John Gibson Fayetteville Citizens on City Clerk's e-mail list University of Arkansas Leo Yanda Findlay Edwards Concerned Citizens John Lewis Curtis Shipley Gary Head Arkansas Highway and Transportation Department Harold Beaver Beaver Water District Alan Fortenberry Coleen Gaston °0o 0 11 Oa � cxe�caa �Tb 5r1Q 4oaa o ° o Q� �y�� DD QGPG]C1CJCsC J go ° ° ° w Q c b 8 JJ 0° Cd UwQ U4Q73�G? �MULI OOQG?o �. D � C'i � ° 0 ° _ - p0 �3I � t 3 0 p O° q ° o ° o •. O 0 0 ° C Q ° CO p O o ° o o G�Q o U�t. a:7• 'ta= nOC�+l.r :.{{ s!tOsrtW (Gya:,[e ry.Ugl.n74:i ni[ub o ° o p o e LTt^J' OanTpcc:. p3d:]h< •anAt:}r.`4"ofo . civt rs.la:x. ora+ oo Seo 0 0� ° ° ° o °o twGI•At1rr• zt (c :13 . r9 :dar S ° ° 8 G'L•M!Nij 'A; 6.7t: ILT: T. . rtin� 0 0 on > ° o g4, R +uy7�r �mt:aL•3a]--•O ° ,do.rY..Trc.n:fr!r1.2B�7r•4' :.:7r �43L�S. nLctuAilti ua °m4Q { A CfcMof Stnb� rcees n6 ° 9 oo u 4 ° q C5 6arct� i4 (n.!law (wv6o r IYTx- g1:aa4,a .4ar�ati�ro..r9o,r.ixrq,1clAmtl ltt? Desi / tlwttn.L 00 yV7�Pb.6 iOst'Nhaos If - o b Ie° •he b G o m � 8tl �n.6wrdr•:�•drdti.:N°..LuI:caL{9yr,t rtl.t�t.�nnhc;:i,:d4 •1leUJra�r�:?xn c.1� r,•.:trr.II rr)x•o-et.tcp•.rrM•:$'.:taiI:n4[Il..uiLl:a.�� 7ntlt9t: 00 ospC S( ►rjmu�a i (�l f{6o. Jc) 8 2ati ; „mx r L itt y aamc•JIr:J c3 ra > �Er:•^ c it 4:r tm o i q p' �j ° 0 ` I ftf`?lt� g n .a44k• l:gllKt:7• ct)• �:t� •dar4s rl;d'ultc.p �O ,4 l ° F b p1 COU 1 It �' dine hut, rs °U pIo° vb • o ` II (r.:in^r.L] dracdt. Mw :tOM" :n, n:n r bo ' osi nano �onst 'I ° 11111 � �� � - g oG (� 1 nay sL4.;ar(:: .i C�ar7�fnr R<a 2�m.�ar 'r•, rm+ :.�a. .:z:! . OUII� � ;] pr<•_dt, (Lil' ;Ir� :Jir...YIS'r rli;,,ri�:t gZZLJ1 I]:r- . ` l cl c e Is arf 1p e s 9s L/ ra:aat. ^or n:r.:• •1:P 20 6 ar+ , . r:r.:. a � � h � r $ g 4I ? L r: II AS> :.1:.7 r -' l:ti IY' r �o U rru.::ta•. :tlrtl•Pwn- :pN: �d•I,}111+f4t•1'�. 'i•.dpi !:ra:tax�r e csPer s n 7c3 H n ✓ V - , v Q d� ° , �O 9.T:te� n. ..� u:xvlLJ:r•Id- 67t 'IT� mr sfra. IIMII& q o C CBMC�{>� a :.CIO UC sl t�18 /'O nl Of V •� ar n+i� ril'+2 v^tldt.'.I U � a 0o18co — U o U Nf1aocr.:A i:•a:nra"• :rrr. t::;q'l. aslaq.1 fr3�i.ft(ic rl OS -b(;l iPG. o ra•o T R.]!<. �IrrN Q44a 7!t9 �7l :7FTctir �t7•t:l ��T•rr(= (4'i�:• o p o o p 6 ° •C� gGi]'llr/ :� o.I::4.Tt,.('�7.r:; u :tfil:•.�.f� O,LI4:SP 74 'lii:]L 1.11] ° o° O o Rcw, LYt•`.Q,r'S:� n. rf,I, +:tl:,`, f.il1rt• wxa.-,n1Hh:::i I:tr n1. 0 ° �� �� o ° :•lrtntc•P 'rrxit:r• !1nAK}a�t 2:�}:t'r ' ti�fiPlCurl'tJ� prr.:�.xs ° �.—.. 0 0 00 0 :•{(tx�• aaasnunr n§:P9t� ;isiL7e .•rtJc.m9+rzirrl. nt•.t.14gi N7i ,�ALh/�, . . u . dhsx,er- ;•:r�.¢•c--: 'Jl:m uJla...Icxsi•r•.yrR:, :nr .;t.it'r ��:> f�?�rt;�l :�� •.; i � al•(a.lfl• Cy41r4f4 CSS I ��2>a,Ltn �.lAti�m„��i' 1dll ;i•cc:,mtiAlt,rlt.;, c.u.t�, R::.fina ca,LP•r "uCl `+t+f: <44.xLit•1AIT r.. �t.I.4 1L'(� '1z= em•n�P &5(s�`• �I�4x. GnAt't-u tLra'r la>iilctr �' fa> xr. rk;q�J a:py r,•:.r-tom; fiA :a I.S11 r, ;r:17 6'b/ A* 'rct4l cComr(616L; :•C). , Nl r4j kdkotr rra:t%, 4&vro •l Oral) r•[LTg:.�lhoU.7,•jtAh p; S. fiulow 4}n7.i '� a.Jt. ILId:MK,� N x, � �{:]If{� cdi•�:i r.: at nr> I WHAT ARE THE Cost Savings Designandcon- Early Knowledge of BENEFITS OF strction personnel, working and commu- F I r m C a s t s Guaranteed can- DESIGN- B u 1 LD ? nicating as o team, evaluate alternative strction costs are known far earlier than materials and methods efficiently and in other delivery systems. The entity The beneffs to be gained in accurately. Value engineering and con- responsible for design is simultaneously eablis st; hing a wet ksigned and structobbiliy are ut Is cont nuously amend estimating construction costs and can linc managed Design Bulb! process g'91 q w more effectively when the designers and accurately conceptualize the completed luds Mss following contrasRr� works one Kproject. Staged contracting for design- f•a a l a r e s p o s 1 6 1 f i l y entiret'da'siGn process. build services alfords the Owner one or With both design and construction in the more 'go, no-go' decision points during hands of a single entity, there is o single y I m e S a r 1 a g s Because design design. The decision to proceed with the point of responsibility for quality, cost and and construction are overlapped, and project is made before substantial design schedule adherence. The design-builder is because bidding periods and redesign expenditure and with firm knowledge of motivated to def ver a successful project by are eliminated, total design and construe- the final cost. fulfilling multiple parallel objectives, inclu d- tion time can be significantly reduced. ing aesthetic and functional quality, bud- Design-build is ideal for the application of I m p r o red Risk get, and schedule For finely completion. 'Fast Track' construction techniques. M a n a g e m e n t Performance With design-build, the owner is oble to With design-build, materials/equipment aspects of cost, schedule and quality are focus on scope/needs definition and timely procurement and construction work con dearly defined and responsibilitiesMsks decision-making, rather than on 000rdina- begin before the construction documents are appropriately balanced (individual tion between designer and builder. ore fully completed. The resulting time risks are managed by the parry best posi- savings translates into lower cosh and tinned to manage that risk). Changek' 0 o a 11 f y The singularized responsi- earlier utilization of the completed facility. orders due to 'errors and omissions are bility inherent in design-build serves as a virtually eliminated, because the design- motivation for quality and proper project Potential for Reduced builder has responsibility for developing performance. The Owner's requirements A d m I a I s t r a t I v e R o r d e a drawings and specifications as well as and expectations are documented in per- During procurement, the potential exist constructing a fully-functioning facility. formance terns and it is the design-!wild for design-build to reduce the Owner's entity's responsibility to produce results administrative burden; however, prepar- occordingly. The Design-Builder warronh ing RFPs and conducting evaluations can to the Owner that it will produce design be resource intensive during the early documents that are complete and free learning curve. During actual design and from eror. (By contrast, with 'traditional' construction, the Owner is not required to design-bid-build, the Owner warrants to invest time and money coordinating and the Contractor that the drawings and arbitrating between separate design and specificotions are complete and free from construction contracts, but rather is able error. Because it is the Owner's warranty to focus on timely decision making. for the design documents under design- bid-build, the traditional approach relies on restrictive contract language, audit and inspection and occasionally, the legal system, to ensure final project quality.) —1 I . r DEFINING In its recent study on design-build, • Owner-driven demands for better DESIGN- Bu I LD the American Society of Civil Engineers quality and continuous improvement PROJECT DELIVERY maintains that 'Design-build has been , in project delivery and in the final used successfully on complex power plant product; Design-Build is a method of project deliv- and chemical process facilities and on Interest in saving time and money, ery in which one entity (design-builder) simple straightforward office buildings such as through a process wherein Forges a single contract with the owner to and family housing. In fad,' claims the cotshuctobility is a key concern from provide for architectural/engineering ASCE report, 'There is no reason that the outset; design services and construction services. design-build cannot be used on most Desire to avoid the legal entangle- (Design-build is also known as types of construction projects, including menu of adversarial relationships; design/conshud and single source traditional civil infrastructure projects.' Need to realign the responsibilities responsibility.) AIA, ASCE and others cite a number and risks on a project, by dividing By contrast, with the 'troditionol' of reasons why owners and the A/E-con- responsibilifies/risks according to the design-bid-build approach, the Owner struction community are considering party most capable of managing commissions an architect or engineer to design-build. Primary among these are: tease risks; t prepare drawings and specifications 0 Response to the restructuring of under a design contract, and subsequently American business and the increased selects a construction contractor by corn- influence of global markets/foreign petitive bidding (or negotiation) to build competition. facility urider'Ta tonstr"7i coon conh��od. When di uirg rtrerih ofsorojectN G s inhodsxiay Design-Build Institute of def methods, d is mportant told���is�tin- m (DBIA) publicot on is designed to Buis tween hue delivery systems or d give the reader an oven ew of the process other contract-related activities, trends and some of the practical reasons behind and philosophies. For example, design- design-build's increasing popularity. build, design-bid-build and construction management are the three project cWiv- ery systems most commonly employed in North Americo. Partnertheycang and total beexcel- xcl - ' Classical ' Project Delivery ' Trodltloaol ' Project Delivery qual- ity management (while they can be excel- lent tools when appropriately applied) are (DesigmBuil:6 warnonts to Owner 4xe design (Clever vq m a Conboder Oxe design cicx is ore mmpkre and Irw Pram error) docvmenn are oorrrpbte and free tram error) not project delivery systems. ' During the past decode, the use of and interest in design-build in the United States has greatly accelerated, r con"d Coo making this delivery method one of the m Preis ix 6rrn qqq mrn . . most significant trends in the design and controct Cost sm wsrio r Specs construction industry. According to the s j American Institute of Architects Practice NegMioted Memo, 'Design-Build is attracting o lot of selecton s Contract Cass Sub a non ods attention, because owners, including gov- Deeign euiW Competitive A tonra emment agencies, are Finding it attractive Sskcio [for] complex and unusual projects, Design-Build because it...eliminates some of the major Design-Sid- Canhuct Cost seams in getting a project built.' Build Fee-Type - COIIetrlKttOe Morrogement CAVEATS : WHAT Availability of Design WHO USES SHOULD THE OWNER Liability Insurance DESIGN-BUILD ? WATCH OUT FOR ? aad / or Porlarm anco and Payment l o o d r Design-build is the project delivery system Comp 1 o s i t y of The Certain insurance carriers and bond of choice on more than 50 percent of the P r o t o r s Design-build project deliv- sureties may not be familiar with design- non-residential construction projects in the ery requires careful planning and profes- build. This con lead to some hesitation European Community and is used on sional execution to be successful. The about providing these services on design- more than 70 percent of the non-residen- Owner should choose a design-build build contracts. The parties to o design- tial projects in Japan, according to recent process variation based on factors such build contract need to make sure that industry publications. as the project's complexity, funding, adequate coverage exists in both the pro- In the United Stories, the private sec- design intent, responsibility/risk allocation fessional liability and surety arenas. toes use of design-build has been and other important issues. For owners increasing in frequency and application who do not have in-house personnel with during the past thirty years. Design-build expertise in preparing and administering is being used in a wide array of commer- 1 design-build requests for proposals (RFPs) cial and institutional applications including and contracts, an owner's design-build hospitals, educational facilities, office consultant (sometimes called design crite- buildings, retail centers and hotels. Design- ria professionals) may be retained to pre- build has also been used for decades in Pore scope it 6hiit onlaid RFP dotasments, the industrial and power sectors. j ond.to provide Mclirltii�oonal consulting In the U.S. public sector, the federal services as need. . �. gwemment, many stales and tocol gov- 1 emments employ design-build contracting C b a I I e a g o l a for a significant percentage of their build- C a a v o r t l a g 0 w a o r ing programs. In the seven years from N o o d r t o P it r f a r as a a t o - 1986 to 1992, total use of design-build R a s o d L a o It a a g o Preparing a in the public and private sectors grew statement of facility requirements (some- 172%, from S18 billion to 349 billion times called the design criteria package) (Engineering News-Record 1993 Report). that is comprehensive enough to assure compliance by the offerors, but avoids overly restrictive requirements or details 7*71 that would inhibit creative solutions, is the v most challenging aspect of preparing a !� design-build RFP. When facility require- ments equire ments are stated in performance terms and related to recognized industry stan- dards, the approach not only provides flexibility to the offerors in meeting the desired objectives, but it fixes responsibili- ty upon the design-builder in clearly understood performance terms.