0
WHAT WENT WRONG

Conversations            Contracts              Archives




 with Citizens, Fellow   Contract and Bid   ...
OBLIGATIONS


“Folks have an obligation to show up
and inquire…. Tonight, when we look
out, I don’t see a vast array of fo...
Where was everyone?
RUSHED PROCESS
RUSHED PROCESS


5/22 First public notice for bids
RUSHED PROCESS


5/22
       26 calendar days, 18 business days
6/19
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
RUSHED PROCESS


5/22 First public notice for bids
6/19
     10 days to evaluate bids
6/29
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
6/29
     3 days
 7/2
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)
...
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)
...
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)
...
RUSHED PROCESS


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)
...
WHAT’S THE HURRY?
WHAT’S THE HURRY?




7/1/2010
WEG 2010
WEG 2010




WEG isn’t a sufficient reason
We can’t showcase
       Lexington
to the world by gutting
 our economic vitality
WEG 2010




“It would be pretty silly to have this
beautiful streetscape and have a
bunch of empty buildings along it...”...
LACK OF CLARITY
LACK OF CLARITY


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)...
LACK OF CLARITY




There was no public discussion
of the length and severity of the
   South Limestone closure.
LACK OF CLARITY




7/1/2010
LACK OF CLARITY




  7/1/2010
Date mentioned in context of
all four streetscape projects
LACK OF CLARITY



Did council understand?
LACK OF CLARITY


5/22 First public notice for bids
6/19 Bids received, opened
6/29 Purchasing: One qualified bidder (ATS)...
LACK OF CLARITY



  Did council understand?
One week (including a holiday weekend)
 to understand a complex, 1000+ page,
...
LACK OF CLARITY



Did council understand?
LACK OF CLARITY



    Did council understand?
“Those folks can’t stand one month of
downtime, let alone 4 or 4 ½ months
(...
OBLIGATIONS


“Folks have an obligation to show up
and inquire…. Tonight, when we look
out, I don’t see a vast array of fo...
Council (& LFUCG) have an
 obligation to communicate
      with citizens in a
transparent & timely fashion
COMPLIANCE
COMPLIANCE




3 major areas of concern:
1. Access to Property
2. Notice of Disruption
3. Site Clean-up
COMPLIANCE
COMPLIANCE

Access to Property
 CONTRACTOR shall:
 2. Move stored products that interfere with the operation of
    OWNER ...
COMPLIANCE
COMPLIANCE

Notice of Disruption
 Notice to owners and authorities of properties adjacent
 to the work:
 A. Notify owners ...
COMPLIANCE
COMPLIANCE

Site Clean-up
 CONTRACTOR shall:
 3. Obtain and pay for all additional storage or work areas
    required for ...
COMPLIANCE




3 major areas of concern:
1. Access to Property
2. Notice of Disruption
3. Site Clean-up
Technically, ATS appears in
   compliance with the
 South Limestone contract.
COMPLIANCE

The “Out” Clauses
 OWNER May Order Change:
 Without invalidating Agreement and without notice to
 any surety, ...
COMPLIANCE




3 major areas of concern:
1. Access to Property
2. Notice of Disruption
3. Site Clean-up
WORK ESTIMATES
WORK ESTIMATES




2
   Estimates



        Seasons
Two construction seasons’
worth of work (Two years)
WORK ESTIMATES




2 1.5
   Estimates                    Premium
                            $

        Seasons
          ...
WORK ESTIMATES




2 1.5 8
   Estimates                    Premium                     Workdays
                          ...
WORK ESTIMATES




2 1.5 8
   Estimates                     Premium                     Workdays
                         ...
CONTRACT DESIGN
CONTRACT DESIGN




7/1/2010
CONTRACT DESIGN

                      NOTE: This slide is incorrect.
  As Commissioner Webb outlined in his presentation,...
NOTE: This slide is incorrect.
  As Commissioner Webb outlined in his presentation, there is a small
incentive clause whic...
WHAT WENT WRONG


Rushed Bid and Approval Process

Lack of Clarity about Project

Lack of Compliance with Contract

Work E...
WHAT WENT WRONG


Rushed Bid and Approval Process
                                   Clear and timely communication
Lack o...
Unfortunately, all of this is
   backward-looking

It is only useful as we look
forward to future projects
FUTURE PROJECTS
TRAFFIC


                                              True Costs of Traffic
                                           4...
TRUE COST




11                                     -5
Lexington                          Downtown                       ...
TRUE COST
         Business Costs
 $
   84 to 92                   $
                                   Million
Lost Busin...
How do we accelerate the
South Limestone project
 from its current state?
ACCELERATION

The “Add” Clauses
 OWNER May Order Change:
 Without invalidating Agreement and without notice to
 any surety...
SEEDS TO SOLUTION


Uncomfortable / effort from utilities
  Ask for more people

Uncomfortable to stay open past 5PM
  Ask...
We ask that Council unite to
invest in speeding the South
  Limestone project for the
economic benefit of our city
Streetscapes2
Streetscapes2
Streetscapes2
Streetscapes2
Streetscapes2
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Streetscapes2

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Urging LFUCG council to act quickly to try to accelerate South Limestone project.

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Transcript of "Streetscapes2"

  1. 1. WHAT WENT WRONG Conversations Contracts Archives with Citizens, Fellow Contract and Bid Previous LFUCG Council Business Owners Documentation Meetings, Video Feeds
  2. 2. OBLIGATIONS “Folks have an obligation to show up and inquire…. Tonight, when we look out, I don’t see a vast array of folks from the South Limestone corridor present to complain about how we are proposing to move forward.” - Mayor Newberry July 7th Council Meeting
  3. 3. Where was everyone?
  4. 4. RUSHED PROCESS
  5. 5. RUSHED PROCESS 5/22 First public notice for bids
  6. 6. RUSHED PROCESS 5/22 26 calendar days, 18 business days 6/19
  7. 7. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened
  8. 8. RUSHED PROCESS 5/22 First public notice for bids 6/19 10 days to evaluate bids 6/29
  9. 9. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS)
  10. 10. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened 6/29 3 days 7/2
  11. 11. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS) 7/2 First reading of ordinance
  12. 12. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS) 7/2 First public discussion of project
  13. 13. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS) 7/2 5 days (Holiday weekend) 7/7
  14. 14. RUSHED PROCESS 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS) 7/2 First reading of ordinance 7/7 Second reading, approval of ordinance
  15. 15. WHAT’S THE HURRY?
  16. 16. WHAT’S THE HURRY? 7/1/2010
  17. 17. WEG 2010
  18. 18. WEG 2010 WEG isn’t a sufficient reason
  19. 19. We can’t showcase Lexington to the world by gutting our economic vitality
  20. 20. WEG 2010 “It would be pretty silly to have this beautiful streetscape and have a bunch of empty buildings along it...” - CM Julian Beard
  21. 21. LACK OF CLARITY
  22. 22. LACK OF CLARITY 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS) 7/2 First reading of ordinance 7/7 Second reading, approval of ordinance
  23. 23. LACK OF CLARITY There was no public discussion of the length and severity of the South Limestone closure.
  24. 24. LACK OF CLARITY 7/1/2010
  25. 25. LACK OF CLARITY 7/1/2010 Date mentioned in context of all four streetscape projects
  26. 26. LACK OF CLARITY Did council understand?
  27. 27. LACK OF CLARITY 5/22 First public notice for bids 6/19 Bids received, opened 6/29 Purchasing: One qualified bidder (ATS) 7/2 First reading of ordinance 7/7 Second reading, approval of ordinance
  28. 28. LACK OF CLARITY Did council understand? One week (including a holiday weekend) to understand a complex, 1000+ page, multimillion-dollar contract immediately prior to summer break.
  29. 29. LACK OF CLARITY Did council understand?
  30. 30. LACK OF CLARITY Did council understand? “Those folks can’t stand one month of downtime, let alone 4 or 4 ½ months (whatever it’s up to now) of downtime…” - CM Julian Beard
  31. 31. OBLIGATIONS “Folks have an obligation to show up and inquire…. Tonight, when we look out, I don’t see a vast array of folks from the South Limestone corridor present to complain about how we are proposing to move forward.” - Mayor Newberry July 7th Council Meeting
  32. 32. Council (& LFUCG) have an obligation to communicate with citizens in a transparent & timely fashion
  33. 33. COMPLIANCE
  34. 34. COMPLIANCE 3 major areas of concern: 1. Access to Property 2. Notice of Disruption 3. Site Clean-up
  35. 35. COMPLIANCE
  36. 36. COMPLIANCE Access to Property CONTRACTOR shall: 2. Move stored products that interfere with the operation of OWNER and/or property owners. 5. Not interfere with the operation of OWNER and/or adjacent property owners. 7. Maintain continuous access to private property interests at all times. Limits on CONTRACTOR’s use of site are: 5. CONTRACTOR shall not block any access to private property and adjacent businesses From SUMMARY OF WORK, Section 1.6, Subsections B & C.
  37. 37. COMPLIANCE
  38. 38. COMPLIANCE Notice of Disruption Notice to owners and authorities of properties adjacent to the work: A. Notify owners of adjacent property and utilities when prosecution of the work may affect them. B. When it is necessary to temporarily obstruct access to property, or when any utility service connection must be interrupted, give notices sufficiently in advance to enable the affected persons to provide for their needs. Conform notices to any applicable local ordinances and, whether orally or in writing, include appropriate information concerning the interruption and instructions on how to limit the inconvenience caused thereby. From SUMMARY OF WORK, Section 1.8, Subsections A & B
  39. 39. COMPLIANCE
  40. 40. COMPLIANCE Site Clean-up CONTRACTOR shall: 3. Obtain and pay for all additional storage or work areas required for his operations Project Site CONTRACTOR shall confine construction equipment, the storage of materials and equipment and the operations of workers to the Project site and the land and areas identified in and permitted by the Contracts Documents […] and shall not unreasonably encumber the premises with construction equipment or other materials or equipment. From SUMMARY OF WORK, Section 1.6, Subsections B & C; GENERAL CONDITIONS, Sections 5.13.1 and 5.13.2
  41. 41. COMPLIANCE 3 major areas of concern: 1. Access to Property 2. Notice of Disruption 3. Site Clean-up
  42. 42. Technically, ATS appears in compliance with the South Limestone contract.
  43. 43. COMPLIANCE The “Out” Clauses OWNER May Order Change: Without invalidating Agreement and without notice to any surety, OWNER may, at any time or from time to time, order additions, deletions or revisions in the Work. EXTRA WORK The OWNER, without invalidating the Contract, may order extra work or make changes by altering, adding to or deducting from the Work, the Contract Sum being adjusted accordingly. From GENERAL CONDITIONS, Section 9.1; Repeated in multiple locations, incl. CONTRACT AGREEMENT, Section 8
  44. 44. COMPLIANCE 3 major areas of concern: 1. Access to Property 2. Notice of Disruption 3. Site Clean-up
  45. 45. WORK ESTIMATES
  46. 46. WORK ESTIMATES 2 Estimates Seasons Two construction seasons’ worth of work (Two years)
  47. 47. WORK ESTIMATES 2 1.5 Estimates Premium $ Seasons Million Two construction seasons’ per Mayor Newberry, worth of work (Two years) 7/7/2009
  48. 48. WORK ESTIMATES 2 1.5 8 Estimates Premium Workdays $ Seasons Hours Million Two construction seasons’ per Mayor Newberry, ATS Work Schedule worth of work (Two years) 7/7/2009
  49. 49. WORK ESTIMATES 2 1.5 8 Estimates Premium Workdays $ Seasons Hours Million Two construction seasons’ per Mayor Newberry, ATS Work Schedule worth of work (Two years) 7/7/2009 7/1/2010
  50. 50. CONTRACT DESIGN
  51. 51. CONTRACT DESIGN 7/1/2010
  52. 52. CONTRACT DESIGN NOTE: This slide is incorrect. As Commissioner Webb outlined in his presentation, there is a small incentive clause which I didn’t have in my bid materials. It amounts to about 1% of the bid price for pulling in the entire schedule by a month. 7/1/2010 No performance incentive to pull completion date forward
  53. 53. NOTE: This slide is incorrect. As Commissioner Webb outlined in his presentation, there is a small incentive clause which I didn’t have in my bid materials. It amounts to about 1% of the bid price for pulling in the entire schedule by a month. In a contract where time was of the essence, why didn’t we include a performance premium?
  54. 54. WHAT WENT WRONG Rushed Bid and Approval Process Lack of Clarity about Project Lack of Compliance with Contract Work Estimates Contract Design Issues
  55. 55. WHAT WENT WRONG Rushed Bid and Approval Process Clear and timely communication Lack of Clarity about Project Lack of Compliance with Contract Compliance (w/ broken promises) Work Estimates Better estimating Performance-based contracts Contract Design Issues
  56. 56. Unfortunately, all of this is backward-looking It is only useful as we look forward to future projects
  57. 57. FUTURE PROJECTS
  58. 58. TRAFFIC True Costs of Traffic 45 mins = 5% of waking hours Retail Office Service Quality of Life Not buying at stores or Not working or Not delivering goods Not spending time with restaurants producing and services family and friends
  59. 59. TRUE COST 11 -5 Lexington Downtown Impact $ Billion Size of Economy 8 % of Local Economy Hit to Downtown Businesses % Business Costs $ 84 to 92 $ Million Lost Business Attributable to South Lime Closure A 2x economic multiplier assumed for loss calculations
  60. 60. TRUE COST Business Costs $ 84 to 92 $ Million Lost Business Attributable to South Lime Closure 360,000 $ per Day
  61. 61. How do we accelerate the South Limestone project from its current state?
  62. 62. ACCELERATION The “Add” Clauses OWNER May Order Change: Without invalidating Agreement and without notice to any surety, OWNER may, at any time or from time to time, order additions, deletions or revisions in the Work. EXTRA WORK The OWNER, without invalidating the Contract, may order extra work or make changes by altering, adding to or deducting from the Work, the Contract Sum being adjusted accordingly. From GENERAL CONDITIONS, Section 9.1; Repeated in multiple locations, incl. CONTRACT AGREEMENT, Section 8
  63. 63. SEEDS TO SOLUTION Uncomfortable / effort from utilities Ask for more people Uncomfortable to stay open past 5PM Ask cement company Uncomfortable Deal with noise ordinances
  64. 64. We ask that Council unite to invest in speeding the South Limestone project for the economic benefit of our city
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