ORDER N0. 27784 RF'pROVE METHOD OF RENOVRTION OF HCYEC On this the c3r•d day of September-, 200^c, upon motion made by Commissioner- Let z, seconded by Commissioner t-0illiams, the Court unanimously approved by a vote of 4-0-0, to adopt the design-build method of solicitation for• companies interested in the r•enovationiexpansion of the dill Country Youth Exhibit Center. COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: William H. Williams OFFICE: Commissioner, Pct. 2 MEETING DATE: September 23, 2002 TIME PREFERRED: SUBJECT: (Please be specific) Consider and discuss method to be used for renovation expansion of HCYEC; and authorize solicitation for companies interested in our selected method, i.e., Competitive Bidding, Competitive Sealed Proposals, Construction Manager-Agent, Construction Manager-at-Risk, or Design-Build. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON(S) ADDRESSING THE COUR"1': Commissioners Letz and Williams ESTIMATED LENGTH OF PRESENTATION: 10 Minutes IF PERSONNEL MATTER-NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court meetings. Your cooperation is appreciated and contributes toward your request being addressed at the earliest opportunity. See Agenda Request Rule adopted by Commissioners Court. ,~~ / ~ 7~ ~~ Backuu Material for Agenda Item Sertate Bill 510, a new state law, appears to give County government some added flexibility in selecting an appropriate approach for construction/renovationprnjects such as ours that will aid us in keeping our costs to a minimum. They aze: 1. Competitive Bidding 2. Competitive Sealed Proposals 3. Construction Manager-Agent 4. Construction Manager-at-risk 5. Design-Build The attached article from the September, 2002, issue of County Progress provides a good summary of each option. Flexible Construction Senate Bill 510 Gives Counties New Options A new state law gives counties and municipalities flexibility in selecting the mast appropriate method for constructing facilities. Senate Bill 510, by Sea Kenneth Armbrister, D-Victoria, takes steps beyond the traditional low-bid approach to allow government entities and certain educational institutions the opportunity select a variety of project delivery methods that can help save time and money in conswction. Wade McKinney, Henderson County wmmissioner, said the law, which took effect Sept. 1, 2001, gives counties the op- tion to select the best delivery method for each project, rather than having to rely solely on a low bid. The law outlines these delivery meth- ods: to provide cost information and constructable methods. During detailed design, the CM provides a guaranteed maximum price (GMP) to the county, after which constmction can begin. 5. Design-Build:Thecountyselectsafirm (normally a team of general contractor and azchitecq to work under one con- tract to provide both design and con- struction. The design-builder provides a GMP after producing a preliminary design. After the GMP is set, constmc- 1. Competitive Bidding: This is the low- bidapproach with the advantage of con- sidering such factors as the vendor's reputation, past relationship with a ven- dor and purchase price. 2. Competitive Sealed Proposals: Bids are based on a pre-detemilned design, and contracts can be awarded based on "best value," with considerations going be- yond price to include such factors as the contractor's capabilities, reputation and schedule. 3. constmction Manager-Agent: The gov- etnmentalagency selects a construction manager-agent (CM-Agent) to handle all matters related to construction, re- habilitation, alteration or repair of a fa- cility. While the CM-Agent solicits bids from the various trade contractors, the county actually holds all the con- tracts. 4. Construction Managcr-at-Risk: The county hires a firm (normally a general contractor) at the beginning of the project, usually at the same time the az- chitect is retained. The construction manager-a[-risk (CM) works with the architect during the preliminary design INTEGRITY Our Relationships are Built One Customer at a Time Detention Centers • Juvenile Facilities • Correctional Facilities Contact William G. Farnum, V.P. of Business Development at 512-302-1177 email: bfamumLwhiteconst.com WHITE CONSTRUCTION COMPANY General Contractors • Construction Management • Design Build Correctional, Medical, Commercial, and Technology Facilities 5806 Mesa Drive, Suite 335 • Austin, Texas 78731 3742 • www.whiteconstcom SEPTEMBER 2002 I COUNTY PROGRESS 23 24 lion can begin. Design-builder elimi- natesthe owner having to settle disputes between designers and contractors. Jim Broaddus, Ph.D., P.E., of Austin- i i based project management company The new options allow for more on- Broaddus & Associates Inc., said the new budget and on-time projects, with a more J!/, • APTO-powered work horse, at a fraction of the cost of engine-powered unilsl'ILVo models (606 & 906) handle wood material up to 6 or 9 inches in diameter (max.) • Hydraulic, self-feeding rollers keep it simple, smooth-handling. • Chips aze ideal [or bedding; landscaping, erosion control. • Per[ect tractor attachment for cities, and County Government. law affords counties a wonderful opportu- nity to select firms based on qualifications, but said much care is required in implemen- tation. /,'/I'~~ /ice l ~.. ~;, ~ s~ ~~ .Q - AG SALES, INC. ROGER ESTERLING 605 5. Dibrell • Orange Grove, Texas 78372 361-384-2263 Fax 361-384-2135 ORTA-MOLE " ~ ~ www,portamole.com 8x0-255-93!! Revolutionary New Product Cleans Clogged Culvert Drains In Minutes! Only Takes Two Men To Operate! l . - ~ ~ /~/ ~~ ~ Int rnational Mf . Co. COUNTY PROGRESS I SEPTEMBER 2002 satisfied customer, Broaddus said, rather than the delays, cost overruns and lawsuits that often result with the low-bid approach. Bill Farnum, vice president of White Construction, an Austin-based firm that specializes indesign-build and conswction manager-at-risk, said the concepts afford the owners' active participation to obtain the facility they want for its intended use, balanced with proposed conswction cost. "Both of these concepts allow a team approach from design through conswc- tion," Farnum added. Vick Hines, legislative aide for the bill's co-author Sen. Cazlos Truan, D-Cor- pus Christi, compazed the previous method of low bid to a "wind-up toy," which can't be controlled once it is started. Under low bid, changes aze diffiwlt once a contract has been signed, he said, and the new law gives governmental bodies more control over a project and provides a means to help groups get more out of their dollars on capi- tal projects. Design-Build Up Close Of particulaz interest is the ability to turn-key an operation, using the design- buildmethod. Hines said having all parties at the table results in a more efficient op- eration. "Cwrdinadon of value engineering and conswctability should been seen as a continuum as these are used where the ob- jective is to develop a quality project that meets the owner's budget," Farnum said. "It is essential that all parties understand the objectives of cost control and act ac- cordingly." Research done at Penn State Univer- sity and the conswction Industry Institute of The University of Texas at Austin bears out the benefits of design-build. Looking at unit cost, design-build was 4.5 percent less than conswction manager-at risk and 6 percent less than low bid. The reseazch also showed that the conswction manager method can produce significant savings. In terms of conswction speed, design- build was 7 percent faster than conswc- tion manager-at-risk and 12 percent faster than low bid. These findings were mirrored when measuring delivery speed, which fac- tored in design. In overall quality, design- build again came out on top. Contrary [o populaz opinion, Broaddus said, "the research bears out that we can have it better, faster and cheaper." Broaddus believes having the builder involved at the beginning of the process makes a huge difference. "The designers aren't installing air conditioners and swinging hammers," he said, "so you shouldn't be surprised to see change orders and delays if builders aren't involved in the design process" Another strength ofdesign-build is the single point of responsibility i[ affords. When problems arise after move in, the design-builder has to bear the responsibil- ity, said Broaddus. While Broaddus said he gives the de- sign-build method high praise, he cautioned users to become educated about the method - and the other options -before jumping in. Broaddus said county staff generally can manage a job, but they need to learn how to do that since most are not accustomed to the new building methods. Counties also need a sound process of good planning and design to end up with a good overall project, he said. Broaddus, who teaches a course in al- temativedesign methods at The University of Texas atAustin, said he recommends pre- projectplanning to see where the needs lie. McKinney, who took Broaddus' course, said his county is in the process of evaluating building needs, taking into con- sideration such factors as jail overcrowd- ing, anaging courthouse and population growth. From this, the county hopes to come up with along-term building pro- gram. McKinney said he believes counties "need a full vision of total building needs to be able to select the best building method." Because the new law is still in its in- fancy, few counties have had an opportu- nity to try design-build or any of the other alternatives. Williamson County is in the midst of a $32 million jail expansion using design- build and is trying the construction man- agermethod fora $20 millionjuvenile jus- tice center. Williamson County Judge John C. Dcertler said the county is testing [he meth- ods to see which fits the county's needs. He said counties need to have experience with the various methods [o detemtine what works best. "The more options we have, the bet- teroff we'll be," he said. Pecos County Judge Delmon Hodges said his county considered using [he de- sign-build method for jail construction, but went with a more traditional approach. He said he beheves a lack of knowledge about the method made the county hesitant to jump in with a new approach, but said he thinks the law is one of the best things hap- pening for counties right now. Sharma Igo, duector of legislative ser- vicesfor the Texas Municipal League, said that while the new law can give govetn- mental entities more control over the bid ding and construction processes, i[ is not a "get-out-of--jail-free card" offering the free- dom togive bids to friends or family mem- bers. She said community leaders must be responsible in awazding bids, while keep- ingthe community's best interests at heart. To find out more about the continuing education course "New Project Delivery Methods," log on to http://lifelon .ener utexas.edu/shortcourse.cfm?course num =649 or call UT. at 512-232-5154. The next clnss is scheduled for Oct. 21-22. - By Tammy Wishard ~ ~ t ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ Other Members of the LeeBoy Family of Products... 3000 Porce Feed Loader 6656 Motor Grader B~' ,.. .. (New All-WheelDmre Option) The new leeaoP 8500 sire N reetreee a paaerrut and grdet 74Id' Nah aierrt peck engine, die 8-rots-root legxd ScieedS~n end tlM ad3ey ro gieldrand ~Y conNerr /rom Idgiirdeek ro bwdeek oparsdon. LeeBot'`e esoo Esa. errerrdes dre operator with conrprere 5000 Path Master e~c6io1YC~°~GLO°O°lle6nwredrgcaWee/oraapaving AsphahPaver ~~e~~~or~~aor~peYHr- (New211021 ' `~~'I ;:Performance ... o ,pealing Maker of Asphalt Pavers If you see a paver on a street, parking lot or driveway, chances are it's aLeeBoy -nearly ~a ~~ 60 percent of the pavers purchased today ~ ~ carry the LeeBoy na me. Visit your LeeBoy dealer for solutions to your paving and grading construction and ma intenance needs. ConleyLoO NuecesPowerEquipmem Laredo 95E725-0(IG6 NichalsMachinery Corpus Christi 361-289-0066 San Benito 956-361-0066 Dallas 214-56rr5500 Edinburg 95&725-0066 Victoria 361-516-0066 Longview 903-75&5547 CorrtinerltalEquipmemCo. Waco 254-799-0888 Ron PrayEquipmerrt Abilene 915T>92-6334 San Antonio210fi48-3531 Houston 281~A56-7767 Amarillo BOCr3732826 , r• ~ ,i :~ ~ t~ ~ it SEPTEMBER 2002 I COUNTY PROGRESS 25 ZO-OZ-day £O_d