AGC of TEXAS Highway, Heavy, Utilities & Industrial Branch THOMAS L. JOHNSON, Executive Vice President Joint AGC/TxDOT Committee Meeting November 14, 2011 Minutes 1. Words of welcome The Chairs opened the meeting. Attendees were as follows: AGC Membership TxDOT AGC Staff John Weisman Zack Burkett, III John Barton Tom Johnson Bob Lanham Doug Pitcock John Obr A.P. Boyd Tracy Schieffer Brad Everett Bill Hale Lee Taylor Dan Williams John Rempe Ken Barnett Jennifer Newton Robert Adamson Pat Worrell Toribio Garza Perry Fowler Bill Gibson Jeff Gibson Carol Rawson Thomas Bohuslav Wade Miller Clint Henson Randy Hopmann Gary Botkin Duane Herbort Brian Hohle Jim Anderson Joe Forshage Harry Levy Larry Hurley Jim Andoga 2. Review minutes from August 17, 2011 meeting There were no comments. 3. Discuss letting schedule TxDOT stated their history for lettings since 1975 was a low of $296,805,000 in 1976 to a high of $9,394,377,994 in 2009 (includes the 3 Dallas CDAs). A. Review fiscal year 2011 TxDOT stated they let or awarded statewide or locally $4.399 billion in FY 2011, 250 more projects than originally planned. B. Review fiscal year 2012 and 2013 TxDOT stated they plan to let and award $4.752 billion in FY 2012 of which $3.762 billion would be let by TxDOT in Austin. C. Review Prop 12 status TxDOT stated they plan to let $1.12 billion in each FY in the biennium (2012 and 2013) in Proposition 12 funded projects. The projects will be let in June, July, and August of each fiscal year. D. Review routine maintenance contract letting TxDOT stated they plan to let the following amounts for pavement related work in FY 2012. Planned Routine Maintenance Contract Lettings FY 2012 (in millions) Seal Coat Levelup & Micro Milling Pavement Misc. Crack Pavement Total Fog Seal Overlays Repairs Seal Work $ 62.3 $ 2.6 $ 88.5 $ 5.9 $ 125.0 $ 25.1 $ 24.1 $ 333.5 AGC of Texas, Highway, Heavy, Utilities & Industrial Branch P.O. Box 2185 ~ Austin, Texas 78768 ~ Phone: (512) 478-4691 ~ Fax: (512) 478-7936 ~ www.agctx.org
4. Update on alternative project delivery TxDOT stated the Executive Director wants to move forward with the use of alternative project deliver methods. AGC stated they were working with TxDOT to make the procurements clear, clean, and smooth. A. Design-build (DB) TxDOT stated the Pegasus/Horseshoe (IH 30/IH 35) project in Dallas will be procured using the DB method. TxDOT stated the RFQ will be issued the first part of December, they expect to complete procurement by September 2011, and they expect to have construction underway by 2013. TxDOT stated other projects to be procured under DB are yet to be determined. B. Comprehensive Development Agreement (CDA) TxDOT gave the following projects status under CDA procurement. Project IH 35 from IH 635 to SH 380 in Denton and Dallas Cos. middle segment. SH 183 Tarrant and Dallas Co. Total Project Size Design and Construction Cost $1.7 B $1.2 B $1.2 B $941 M Grand Parkway (SH 99) $1.6 B $882 M CDA Procurement Status Status RFI was issued and closed in July 2011. The RFQ for the middle segment is expected to be issued mid December 2011. RFI was issued November 1 and responses are due February 29, 2012. One-on-one meetings March 2012. RFI was issued in June and closed in July 2011. Method of procurement (DB or CDA) is under consideration. Comments $600 M available in state funds. No state funds available. Revenues from Seg. E will be used to deliver and maintain the project. 5. Discuss wage rates AGC thanked TxDOT for their efforts in working with AGC and the Department of Labor (DOL) in updating the classifications and addressing the corrections needed on a previous DOL publication. TxDOT stated the latest estimated publication date is November 18, 2011 and that they would notify AGC as soon as they become aware of a DOL publication. TxDOT stated the planned November 18 publication date would make the classifications and wages effective for the December 2011 letting and the new schedule would be added to proposals by addendum. 6. Discus proposed SW3P Special Specification and Certification AGC requested the status of changes proposed by AGC on the draft special specification and certification for SW3P. AGC generally agreed with the changes to the specification and a joint task force worked with TxDOT to develop the certification. TxDOT stated they found the proposed AGC changes to be reasonable and will incorporate the changes in the specification and certification. TxDOT stated they will take the provision and certification to the FHWA and expect the final version to be completed in January or February 2012 for lettings in the following spring. 7. Discuss edgeline simulation for temporary traffic control AGC stated they appreciated the response to the earlier request for the use of tabs for edge lines (TxDOT denied the request based on past issues) but stated they wished for TxDOT to consider other configurations for the use of tabs for edgelines. 2
TxDOT stated they agree that plans should be specific on addressing edge delineation when needed and that the contractor and TxDOT should discuss issues on the project prior to implementation of traffic control plans or phases. 8. Discuss status of Webinar dealing with application of ride quality AGC asked the status of the delivery of a Webinar with the districts on application of ride quality requirements. TxDOT responded they expect to deliver the Webinar in the January 2012 time frame. 9. Discuss reorganization of TxDOT under new Executive Director TxDOT gave a description of the new positions duties on the new organization chart. TxDOT stated the Deputy Executive Director/Chief Engineer is similar to the position in other state DOTs and that the districts will operate under a franchise model and will be held accountable for performance. TxDOT stated the divisions and offices will set policies under which the districts will operate and that broader measures will be used to address district performance. TxDOT stated the organization brings more focus on financing and risk management. AGC stated they see the reorganization as a return to previous organizational structures and warned that moving to 25 TxDOTs is not good for competition and increases costs. AGC stated they looked forward to working with TxDOT staff and the new organization. 10. Report on Standard Specifications rewrite TxDOT stated they are negotiating the contract with the specification rewrite consultant and expect to meet with the AGC in the January to February 2012 time frame to begin discussions on the Standard Specification rewrite. TxDOT stated the tools needed in the specifications may be dependent on the type work, project size, and staff resources for inspection (24/7 projects versus a West Texas base project). TxDOT stated they didn t see that performance based specifications would be used for all types of work. 11. Review status of Brian Hohle was introduced as the new Director of the Prequalification and Proposal Issuance Branch in the Construction Division, Scott Nichols replacement. TxDOT stated they will update the EBS Web site to include his contact information. A. Username and password in lieu of digital certificate TxDOT stated they will be working with the ExeVision, their vendor for EBS, to develop the username and password technology to replace digital certificates. B. EBS webinar TxDOT stated they may do a refresher Webinar prior to finaling seal coat letting input for EBS. 12. Discuss seal coat letting input for EBS TxDOT stated work is in suspension until department s internal system (DCIS) is redesigned to address additive alternates. TxDOT stated they will have an EBS with additive alternates system ready prior to the next year s seal coat lettings. 13. Discuss status of railroad agreements TxDOT stated they are working with the Union Pacific Railroad (UP) to finalize procedures to have TxDOT include the right-of-entry (ROE) agreements in documents with execution with the contract. TxDOT stated UP has had management changes that delayed progress. TxDOT stated UP has agreed to hold the fee to $500 and that TxDOT will pay the fee in advance and seek reimbursement through the first contractor estimate. TxDOT stated they are finalizing the list of projects to be 3
exempt from ROE agreements in concert with UP. TxDOT stated they hope to receive a draft from UP by the first quarter of CY 2012. TxDOT stated there have been discussions at the federal level to require states to provide insurance to the railroad and in such case the contractor would be a subcontractor to the state. It was stated that if may be a violation of the law to require state to provide insurance to the railroad. AGC stated hold harmless clauses in the insurance requirements are punitive and should not be allowed. 14. Discuss new insurance requirements TxDOT explained that the new insurance requirements remove additional insured requirements from contracts for projects let January 2012 or later. 15. Subcontractor certification/approval status AGC stated they agreed with the proposed change to use certification language for subcontractor provisions in lieu of district review of subcontracts. AGC stated the request from districts for copies of all subcontracts is excessive. AGC requested language in the contract stating by signing this Contract the Contractor agrees in lieu of a certification for every subcontract approval submission. TxDOT understood the request but stated the regulations may be restrictive regarding the use of one submission and expected the FHWA to require a certification with each subcontract submission. TxDOT stated they would still perform subcontract reviews out of the central offices but at a less frequent basis and stated that for all DBE subcontractors, a subcontract submission will still be required. TxDOT stated that if contractors receive burdensome request for copies of subcontracts they can direct the district, etc. to contact the Construction Section Director in the Construction Division for resolution. AGC stated relief from administrative burden is the key to making this effective and TxDOT and AGC agreed to discuss a one certification process again after the initial certification process is approved. 16. TMUTCD update TxDOT stated the changes to the TMUTCD should be adopted this November and they expect the changes to the standard sheets to be finalized in January 2012. TxDOT stated they received approval from the FHWA for language that the engineer retains judgment authority over TMUTCD standard statements. 17. Warranty requirements AGC stated the 15 year warranty bond requirements for the bridge deck overlay project let in November was unobtainable. AGC stated there was only one bidder, a supplier backed by a multibillion dollar corporation, and the requirement doubled the cost for the work and eliminated competition. AGC stated the requirement caused the work to be sole source. AGC stated they have not found anywhere in the nation where even a 10 year warranty bond has been required and stated that a warranty letters may have been required. AGC stated they have a letter from several sureties and the National Association of Bond Producers stating the bond is not obtainable. AGC stated there should be an alternate to materials and that they are not opposed to requiring a manufacture bond if it were obtainable by industry or a requirement for a manufacture guarantee. TxDOT stated that they wanted the bond because they wanted a product that didn t require repair and lane closures over 15 years and 15 years is not long compared to the life of a bridge. TxDOT stated they needed to be able to respond to request from legislators on why TxDOT hasn t required performance contracts or warranties. 4
AGC stated the item requires an assessment review 4 times and therefore lane closures for the assessment and restated their opposition. 18. Discuss partnering It was stated that if there are any partnering issues in the stated they need to be elevated through the district to the Construction Division for resolution. TxDOT and its administration agreed to communicate jointly with AGC and reinforce partnering. 19. Discuss proposed 2012 meeting dates Meeting dates were agreed to as follows; February 13 (Monday) May 16 (Wednesday) August 15 (Wednesday) November 13 (Tuesday) 20. Items from the floor A. Waiver of prequalification - AGC thanked TxDOT for the waiver changes made in the November letting. AGC stated December 2011 lettings had several projects that were waived that met the requirements for prequalification based on previous guidance. TxDOT stated they would address the issue. B. FHWA request for information (RFI) for accelerated construction AGC discussed a recent RFI from the FHWA for ideas to develop for the acceleration of construction. Tom Johnson Secretary, Joint AGC/TxDOT Committee 5