Facilities Business with the San Diego County Office of Education
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1 Facilities Business with the San Dieg Cunty Office f Educatin San Dieg Cunty Schl Districts Infrmatin Briefing Octber 2014 Bill Ds Sants EFSG SDCOE
2 Educatin Facilities Current Supprt 3 ways SDCOE prvides Facilities Supprt Services t Districts 2
3 Educatin Facilities Past and Present 1. Extensin f Staff Smalls (nging) San Ysidr Lemn Grve, Sweetwater Muntain Empire Lakeside, Crnad, SYHS P2 Extensin f Staff Prject 2. Energy Jint Pwers Authrity (EJPA) Started June 2010 Turnkey task based agreements Energy/energy-related prjects Prp 39 funding 3. Facilities Jint Pwers Authrity (FAC JPA) Since 2010 Includes strm water cnsrtia Turnkey task based agreements New cnstructin and mdernizatin prjects Several successes tdate ENR K-12 Best Prject 2008 GMP/GCD prvided $8M savings 3
4 Educatin Facilities Cst Cmparisns Private Prgram Management Cnsultants 1. $2M/year minimum (fr cnstructin and facilities management rle) 2. Charges 10% t 12% f cnstructin csts Annual Extensin f Staff 1. $250K/year 2. Wrks directly fr yu n tasks yu designate 3. N vertime csts Wrk Prduct Delivery-Based 1. Price subject t negtiatin based upn end-prduct. 2. Cst based n level f effrt & resurces required t deliver. FACJPA Prject Management 1. $500K per prject year depending upn cmplexity f wrk. 2. Fixed price depending upn level f effrt and risk. 3. PM cst - tw fixed price prpsals Criteria develpment/ IPDT selectin Turnkey prject delivery including; DSA, IOR, labs and specialty inspectin, criteria design, IPDT and prject management, cnstructin and clseut. 4. Selecting mst efficient delivery methd available t put mre mney in the classrm. 5. Exist t supprt districts, mtivated t minimize csts 6. Prvides prject financing ptin. 4
5 Educatin Facilities Full Service Facilities Supprt Staff Expertise Master Planning Bnd Planning Cnstructin and Mdernizatin planning State prgrams Financing Cntracting/ Prcurement Disputes reslutin Scheduling Maintenance Planning Redevelpment Energy & energyrelated prjects Delivery methds Cntracting/ Prcurement Tls Prequalified as-needed prfessinal cnsultants Prequalified integrated prject delivery teams (IPDT). Access t variety f delivery methds: Lease-Lease-Back Design Build CM/ General Cntractr CM at Risk CM/Multiprime Hard Bid 5
6 1. Jin JPA N cst. Csts prject related nly. One District Bard actin t jin One District Bard actin t apprve JPA Phase I prject agreement (criteria design thrugh end f IPDT selectin One JPA Executive Cmmittee actin Guaranteed csts 2. Criteria Design Prequalified Designer List Ed Specs District Standards Maintenance Standards RFP t tp three IPDTs JPA Delivery Prcess 3. RFP/ Prpsals & Presentatins District Panel selects best value slutin t Request fr Prpsal (RFP) scpe EFSG leads prcess TWO PATHS: 1. Select Best Value team r 2. Stp prcess Pay predetermined stipend t participating teams (nt selected) 4. Authrize Cnstructin One District Bard actin t apprve JPA Phase II prject agreement One JPA Executive Cmmittee actin Guaranteed csts and cmpletin fr hard and sft csts 5. Cntract with Best Value Team JPA cntracts with selected IPDT, criteria designer, IOR, test lab, etc. Includes design, cnstructin and financing Guaranteed Maximum Price (except fr Owner s changes and unfreseen site cnditins) Guaranteed Cmpletin Date 6
7 We are targeting lwest risk delivery prcesses Cntract Delivery Tls CM /GC Owner s Risk GC L-LB w/ design L-LB bid CM at Risk D-B L-LB & D-B Lwer Risk Higher Risk CM Multiprime L-LB - Lease-Lease Back D-B - Design-Build (D-B) CM - Cnstructin Manager CM/GC - Cnstructin Manager/ General Cntractr GC - General Cntractr (Lump Sum) CM at Risk - Cnstructin Manager at Risk CM/Multi-prime Multi-prime 7
8 Why L-LB w/d-b Delivery? Owner s Risk Lwer Risk L-LB bid 3 CM /GC 4 GC 5 L-LB w/ design 6 CM at Risk 7 Higher Risk D-B 2 L-LB & D-B 1 Legend 1) Best Value: L-LB fr lng term financing and D-B prvides best value slutin t Owner s facilities challenge. Owner s risk limited t unfreseen cnditins (UNFO) and Owner directed changes. 2) Designer & GC share all risks except unfreseen cnditins and Owner directed changes. N financing. 3) LLB fr financing. Cnstructin delivery bid by GC. Owner s risk: Errrs & Omissins (E&O) and UNFO. 4) CM is wner s n risk agent. GC bids all wrk. Owner s risk: E&O and UNFO. CM Multiprime 8 5) GC bids all wrk in 2 weeks r less. Owner manages prject alne. Owner s risk: prject management mistakes, E&O and UNFO. 6) LLB fr financing. Owner s risk: E&O, price, prject management and UNFO. 7) CM is Owner s agent till bid. CM becmes GC and knws all Owner s secrets. 8) Chas fr Owner n bth sides f cntract. Prject usually nt designed fr Multiprime. CM wrks as high priced, n risk prfessinal agent. Owner nt staffed t administer paperwrk fr multiple cntracts. 8
9 Facilities Delivery Strategy Efficient Use f LLB/D-B Cmbining LLB & D-B makes sense frm a number f aspects. 1. The D-B delivery althugh time cnsuming t the Owner prir t cntracting, shifts all RISKS except unfreseen cnditins and custmer directed changes t the Cntractr/Designer team. Under LLB alne, the Owner cntinues t carry all cnstructin and design risks. 2. Unlike straight LLB, D-B has nly ne cntract with the Owner, s Owner nly enfrces the cntract prvisins and agreements during design and cnstructin. 3. With LLB, D-B becmes an effective tl in prviding nn-debt ceiling financing fr Owners that have future Bnd incme r want t prvide mre facilities nw (see Rider v. City f San Dieg - CA Supreme Curt Case). 4. As the agent fr the FAC JPA, SDCOE wuld prvide turnkey cnstructin at guaranteed maximum price and guaranteed cntract delivery date per prject agreement between district and FAC JPA. 9
10 Simplified Relatinships Delivery thrugh either JPA Cnstructin (cntracts between Builder/Architect Prject Management Inspectr And Cunty Supt.) ptinal Financing fr Lease and Cnstructin (FAC r EJPA and Lenders) Cunty Superintendent (Admin fr FAC r EJPA) Facility r Energy JPA New JPA Agreement & Prject Agreement Lease-Lease Back dcuments Authrity t develp land & enter Lease-Leaseback agreement (Schl District) Sectin f the Califrnia Educatin Cde permits the lease f the District s prperty t any persn, entity r crpratin withut cmpliance with the public bidding requirements. Accrdingly, the lease f the prperty and imprvements t FAC r EJPA is permitted. 10
11 Energy Initiatives SDCOE Schl Energy Guide Wrk prduct frm a SDCOE Wrking Grup, headed by Bill Carpenter, Dir. M&O, was the publishing f the Energy Resurce Guide fr Schls lcated at =maintp r This was a cllabrative prject between the SDCOE and the Califrnia Center fr Sustainable Energy. This is a frty page hw t dcument f resurces that schls can use fr their energy prjects and develping strategies fr the future. This dcument is available statewide thrugh these links. 11
12 Educatin Facilities In Cnclusin Hw We Can Help Districts Selecting the best value delivery methd Aviding inefficiencies Prviding ptins fr prject financing Guaranteeing price and scheduled delivery Being prepared t start when they are Sharing the same values and being in the same business with the same backgrund as they are 12 10/7/2010
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