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

2. WHAT WENT WRONG
Conversations Contracts Archives
with Citizens, Fellow Contract and Bid Previous LFUCG Council
Business Owners Documentation Meetings, Video Feeds

3. 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

4. Where was everyone?

5. RUSHED PROCESS

6. RUSHED PROCESS
5/22 First public notice for bids

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

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

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

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

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

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 reading of ordinance

13. 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

14. 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

15. 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

16. WHAT’S THE HURRY?

17. WHAT’S THE HURRY?
7/1/2010

18. WEG 2010

19. WEG 2010
WEG isn’t a sufficient reason

20. We can’t showcase
Lexington
to the world by gutting
our economic vitality

21. WEG 2010
“It would be pretty silly to have this
beautiful streetscape and have a
bunch of empty buildings along it...”
- CM Julian Beard

22. LACK OF CLARITY

23. 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

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

25. LACK OF CLARITY
7/1/2010

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

27. LACK OF CLARITY
Did council understand?

28. 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

29. 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.

30. LACK OF CLARITY
Did council understand?

31. 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

32. 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

33. Council (& LFUCG) have an
obligation to communicate
with citizens in a
transparent & timely fashion

35. COMPLIANCE

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

37. COMPLIANCE

38. 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.

39. COMPLIANCE

40. 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

41. COMPLIANCE

42. 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

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

44. Technically, ATS appears in
compliance with the
South Limestone contract.

45. 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

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

48. WORK ESTIMATES

49. WORK ESTIMATES
2
Estimates
Seasons
Two construction seasons’
worth of work (Two years)

50. WORK ESTIMATES
2 1.5
Estimates Premium
$
Seasons
Million
Two construction seasons’ per Mayor Newberry,
worth of work (Two years) 7/7/2009

51. 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

52. 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

53. CONTRACT DESIGN

54. CONTRACT DESIGN
7/1/2010

55. 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

56. 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?

57. WHAT WENT WRONG
Rushed Bid and Approval Process
Lack of Clarity about Project
Lack of Compliance with Contract
Work Estimates
Contract Design Issues

58. 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

59. Unfortunately, all of this is
backward-looking
It is only useful as we look
forward to future projects

60. FUTURE PROJECTS

62. 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

63. 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

64. TRUE COST
Business Costs
$
84 to 92 $
Million
Lost Business Attributable to South Lime Closure
360,000
$
per Day

65. How do we accelerate the
South Limestone project
from its current state?

66. 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

67. 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

68. We ask that Council unite to
invest in speeding the South
Limestone project for the
economic benefit of our city