Barney S. Williams

P.E., CFM, MPM

CDR, CEC, USN, Ret

Deputy City Engineer, Bryan Texas

Overview Capital Improvement Project (CIP) Definition

CIP Process Overview

Project Example

Loan Process

Real Estate Acquisition

Regulatory Requirements

Acquisition Strategy

Bidding Process

Award Process

CIP Definition Capital Improvement Plan (Program), or CIP, is a short

range plan, usually 4 to 10 years, which identifies capital projects and provides a planning schedule and options for financing the plan.

This presentation follows a project through the City of Bryan CIP process.

Thompsons Creek WWTP

CIP Process Overview Projects over $200K (specific to Bryan)

Objective project prioritizations Ranking Criteria and Values (Importance)

Strategic direction incorporated in process Ranking Criteria

Community buy-in Citizen input is incorporated into ranking process

Flexibility (for changes in process) Project database allows for easy changes

Transparency City of Bryan web site

Proactive vs. Reactive

CIP Process Overview Public Input

Project Database

Ranking

Financial Reality CIP

CIP Process Overview

Data Management •Project name •Description •Justification •Cost •Location map •Funding

CIP Process Overview

About $20M/yr

Available

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CIP Process Overview

Image(1-20 pts)

Infrastructure(1-20 pts)

Growth(1-10 pts)

Health/Public Safety(1-10) pts

External Funding(1-5 pts)

Operational Budget Impacts(1-5 pts)

Citizen Survey / Input(1-20 pts)

Timing/Location(1-5 pts)

Area of Emphasis(1-60 pts)

Project Goals(1-20 pts)

CIP Score(1-100 pts)

Categories Ranking Score

Regulatory compliance(1-5) pts Citizen Survey / Input

Financial, Technical, Regulatory

60 %

20 %

100%

City of BryanCIP Ranking System

Citizen Survey / Input(1-20 pts)

Area of Emphasis

20 %

CIP Process Overview

CIP Process Overview

Project Example Thompsons Creek WWTP

City Council approves project initial phases in 2005

The first major acquisition was the land purchase

Location

Size

Cost

Availability

Possible Roadblocks

Schedule considerations

Project Example

Project Example Notes of interest: •BTU Site •Buffer Zones •Utility easements •Flood plain

Project Example Project Design

Due to size and complexity of project decision was made to contract with a outside firm

Request for Qualifications was advertised Approximately 20 responses received

Qualifications reviewed and packages ranked

Interviews with 4 firms

Selection of CDM Smith for project design

Two contracts

Preliminary Design and Design

Recommendation for design contract award presented to council and approved

Project Example Project Design

Geotechnical Study

Cultural and Natural Resource Analysis and Report

Development of Environmental Information Document

Conduct public hearings

If all goes well you continue to the contract advertisement and award phase

In this case it did

At the same time as all the above items are being completed the comprehensive design of the contract has been underway.

Project Example Project Funding

Several options considered Issue Bonds

TWDB Tier II Loan

TWDB Tier III Loan

Apply for Grants (free money)

Options selected TWDB Tier III Loan

EPA SAP STAG

Important note: With any outside funding program there is a significant administrative burden.

Project Example Minority Business Enterprise

Establishes MBE goals

Requires written commitment

Monitor and reporting of progress

Davis Bacon Requirements Wage rates are set by Dept of Labor

Contractor must pay at this level

Certified payrolls, labor interviews

Reporting and certification by recipient

No kick-backs

Project Example Project Advertisement

First consideration is acquisition strategy.

Design-Build

Design – Bid –Build (Most Common)

Best Value

Cost reimbursable

Specialized construction so we want to make sure of qualifications

We went through a pre-qualification process. Only Contractors that are pre-qualified may bid.

Project is advertised on-line and in local newspaper.

Project Example Project Advertisement (cont.)

The Request for Proposal package contains bidding requirements, drawings and specifications.

There are 17 additional forms/requirements for this project due to the Federal and State Funding programs we participated in.

The project is advertised for 6 weeks. There is a mandatory pre-bid meeting There are many questions during the bidding Questions are addressed in writing and become important

legal references later. The bids are opened publicly read aloud. The bids are further reviewed for errors and a bid comparison

is prepared. This information is posted on-line.

Project Example Project Advertisement (cont.)

The Request for Proposal package contains bidding requirements, drawings and specifications.

There are 17 additional forms/requirements for this project due to the Federal and State Funding programs we participated in.

The project is advertised for 6 weeks.

Project Example Project Advertisement (cont.)

Mandatory pre-bid meeting

Project overview, focus areas, questions

Engineer, Contractors, Subs, Owner Reps, Project Manger

Contractors ask questions throughout the bidding

Questions are addressed in writing and can become important legal references later.

The bids are opened publicly and read aloud.

The bids are further reviewed for errors and a bid comparison is prepared.

This information is posted on-line.

Project Example

Project Example Project Award

At this point the bid packages have been reviewed and an apparent low bidder has been identified.

You will have to verify that all the additional requirements have been met.

Have they agreed to pay employees at the Davis – Bacon rates?

Do the agree to participate in the Minority Owned Business program?

Did they submit insurance, bid bonds?

Others

Do you have adequate funding identified?

Project Example Project Award (cont)

Must prepare a brief and presentation for the City Council to recommend award of the contract to the apparent low bidder.

Must prepare the contract books/documents and obtain the contractors signature, liability insurance, performance bonds and payment bonds

Offer/acceptance

Route the contracts for the Mayor’s signature

Final approval lies with TWDB and EPA due to the funding source

Project Example Next on CIP Theatre

Construction (the hard/fun part)

Project Close-Out

Project Warranty Period