LOS ANGELES COMMUNITY COLLEGE DISTRICT BOARD OF … · 20.02.2019 · LOS ANGELES COMMUNITY COLLEGE DISTRICT . BOARD OF TRUSTEES . ... General Contractor & Sub Trades Design Involvement

LOS ANGELES COMMUNITY COLLEGE DISTRICT BOARD OF TRUSTEES

FACILITIES MASTER PLANNING & OVERSIGHT COMMITTEE Educational Services Center

Board Room 770 Wilshire Boulevard Los Angeles, CA 90017

Wednesday, February 20, 2019 1:30 p.m. – 2:45 p.m.

Committee Members

Ernest H. Moreno, Chair Scott J. Svonkin, Vice Chair Steven F. Veres, Member

Mike Fong, Board Alternate David Salazar, Staff Liaison

Laurence B. Frank, College President Liaison Mary Gallagher, College President Liaison Alternate

Agenda

(Items may be taken out of order)

I. ROLL CALL II. PUBLIC SPEAKERS* III. INFORMATION ITEMS

A. Performance Audit of LACCD’s Propositions A/AA & Measure J/CC, Fiscal Years Ending 2016-17 & 2017-18: Corrective Action Plan Progress Report

B. Preferred Project Delivery Method

C. Semi-Annual Report (for receive and file only)

D. Active Construction Project Status Report (for receive and file only) IV. FUTURE DISCUSSION/ AGENDA ITEMS V. FUTURE MEETING DATE – March 20, 2019

VI. ADJOURNMENT

*Members of the public are allotted three minutes time to address the agenda issues.

Order of Business February 20, 2019 Page 2 of 2 If requested, the agenda shall be made available in appropriate alternate formats to persons with a disability, as required by Section 202 of the American with Disabilities Act of 1990 (42 U.S.C. Section 12132), and the rules and regulations adopted in implementation thereof. The agenda shall include information regarding how, for whom, and when a request for disability-related modification or accommodation, including auxiliary aids or services may be made by a person with a disability who requires a modification or accommodation in order to participate in the public meeting. To make such a request, please contact the Executive Secretary to the Board of Trustees at 213/891-2044 no later than 12 p.m. (noon) on the Tuesday prior to the Committee meeting.

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

PERFORMANCE AUDIT OF LOS ANGELES COMMUNITY COLLEGE DISTRICT’S PROPOSITIONS A, AA AND MEASURES J, CC BOND PROGRAMS, FISCAL YEARS 2016-17 AND 2017-18: CORRECTIVE ACTION PLAN PROGRESS REPORT

February 20, 2019

I. Purpose

II. Snapshot of Observations and Corrective Actions

III. Next Steps

IV. Appendix – Summary of Recommendations and Corrective Actions

Table of Contents

1

Purpose

2

The purpose of this report is to provide the Los Angeles Community College District (LACCD) with an update of actions taken to address findings, recommendations, or concerns noted in annual independent performance audits for fiscal years 2016-17 and 2017-18 conducted by KPMG.

BDO USA is a sub-contractor to Jacobs Project Management Company and a prime contractor to LACCD. BDO USA monitors and reports on corrective actions resulting from performance audits of the LACCD bond program, as stated in the agreement between BDO USA and Jacobs Project Management Company: [PMO Internal Audit will] Act as an independent internal auditor of Program Manager’s accounting and control functions and performance related to its management of the BuildLACCD bond program.

Snapshot of Observations and Corrective Actions

3

Below is a table summarizing the status of corrective action plans as reported by the responsible parties within the Program Management Office (PMO). In certain instances, PMO Internal Auditor (IA) has verified that corrective actions have been performed, (i.e., new Standard Operating Procedures (SOPs) have been drafted and communicated). However, PMO IA has not conducted separate internal audits of each corrective action taken by the PMO to ensure processes and controls are functioning as stated in the PMO corrective action plan, except in areas included in the PMO IA work plan.

1. PMO IA issue this report to PMO management

2. PMO IA monitor corrective action progress and report quarterly to District

3. Next quarterly update: May 15, 2019

Next Steps

4

Appendix – Summary of Recommendations and Corrective Actions – 2018

5

Appendix – Summary of Recommendations and Corrective Actions - 2018

6


7


8


9


10


11


12


13

www.jacobs.com | worldwide

Preferred Project Delivery Method

February 20, 2019

Facilities, Master Planning & Oversight Committee

SUMMARY

2

California Education Code > $2.5 Million

Since 2003, Design-Build has been the preferred project delivery method at LACCD

Best Value Selection Design Integration from Sub Trades Better Schedule Control Better Cost Control Transfers Risks for Errors & Omissions Fewer Change Orders

Reduced Claims Reduced Staff Levels to Manage Projects

HISTORICAL PROJECT DELIVERY METHODSLACCD Bond Program has used:

2002 Design-Bid-Build (Low Bid)

2003 Design-Build (Over $2.5M)

2013 Lease-Lease-Back (Fresno Case in 2014

Prohibited this as a delivery method)

2019 Job Order Contracts

Future is focused on Best Value Selection

3

BEST VALUE SELECTION

1. Benefits Repeat Business / Reputation Fewer Delays / Claims

2. Delivery Methods with Best Value Selection Design-Build YES Design-Bid-Build No

4

INTEGRATION WITH BUILDERS & SUB TRADES

1. Design-Build is One (1) Contract Design & Construction General Contractor & Sub Trades Design

Involvement

2. Design-Bid-Build is Two (2) Contracts Design - Bid & Award - Construction

5

EARLY INVOLVEMENT CURVE

6

DESIGN-BUILD NOW COMMON PLACE43 states have full or widely permitted authorization to utilize Design-Build for public agencies.Design-Build authorization & construction spending by state.

7

Design-build is permitted by all agencies

Design-build is widely permitted

Design-build is a limited option

Design-build is limited to one political subdivision, agency or project

Source(s): FMI analysis of multiple sources

NON-RESIDENTIAL CONSTRUCTION SPENDING

8

$360$392

$445$470

$500$523

$543$565

$586

$-

$100

$200

$300

$400

$500

$600

$700

2013 2014 2015 2016 2017 2018 2019 2020 2021

Con

stru

ctio

n Pu

t in

Plac

e; B

illio

ns o

f Dol

lars

Year

-ove

r-ye

ar g

row

th

Total US Non-residential spending anticipated to reach over $550 billion by 2020

Source(s): FMI

DESIGN-BUILD UTILIZATION PROJECT SIZE

Design-Build utilization continues to expand into project sizes <$25 million as owners continue to gain exposure of its benefits.

9

Small projects<$25MM

Medium projects$25MM-$100MM

Large projects$100MM-$250MM

Very large projects>$250MM60%-80%

Source(s): FMI analysis of multiple sources

10%-30%

30%-50%

50%-70%

PERFORMANCE STUDY DESIGN-BUILD

Delivery Method Performance StudyConstruction Industry Institute

After 20 years, Design-Build projects deliver better schedule and cost performance

10

CONSTRUCTION INDUSTRY INSTITUTE

1998 2018Cost Growth (% lower is better)

DBB 4.8% 5.7%DB 2.2% 1.9%

Schedule Growth (% lower is better)DBB 4.4% 3.3%

DB 0% 1.6%Delivery Speed (Square feet per month)

DBB 3,250 2,550DB 6,842 5,143

11

CONSTRUCTION INDUSTRY INSTITUTE, CONT.

Responding to Change OrdersDesign-Build Design-Bid-BuildOwner Scope Owner ScopeUnforseens Unforseens

Not Applicable Agency RequiredNot Applicable Errors & Omissions

12

Reduces Project Management Staffing Levels

TO RECAP

13

California Education Code > $2.5 Million

Since 2003, Design-Build has been the preferred project delivery method

• Best Value Selection• Design Integration from Sub Trades• Better Schedule Control• Better Cost Control

• Transfers Risks for Errors & Omissions• Fewer Change Orders

• Reduced Claims• Reduced Staff Levels to Manage Projects

QUESTIONS?

www.jacobs.com | worldwide

Semi-Annual Report

February 20, 2019

Facilities Master Planning & Oversight CommitteeEdwin Van Ginkel, Acting Program Director

$5,673.8

$336.1

$751.5

$2,195.8

$487.1 $123.6 $33.2

Colleges

Satellites

Central Services

Measure CC Bond**

Program-Wide Initiatives

Retire District Debt & Refinance

District Bond Contingency

2

* in millions** remaining funds not yet

allocated to individual projectsTOTAL = $9.6B

BuildLACCD Current Funding*As of December 2018 Inclusive of all Bond measures (A/AA/J/CC)

3

$9.6

$5.7 $5.3

$3.9

Bond funding Contracted Expended To be contracted $-

$2

$4

$6

$8

$10

$12

Bill

ions

Funding Summary*As of December 2018

* Inclusive of all Bond measures (A/AA/J/CC)

$0$100$200$300$400$500$600$700$800$900

4

Mill

ions

* Inclusive of all Bond measures (A/AA/J/CC)

TOTAL = $5.67B*

Current Funding - CollegesAs of December 2018

5

Notes1. South Gate is included within the Satellites category per the Dashboard report.2. Release Program Reserve and Measure CC Bond excluded.

Contracted and Remaining FundsAs of December 2018

$-

$100

$200

$300

$400

$500

$600

$700

Mill

ions

Contracted Remaining Funds

050

100150200250300350400

Jul Aug Sep Oct Nov Dec

No.

of I

nvoi

ces

Invoices Paid

0

5

10

15

20


No.

of D

ays

Invoice Process Time*

Projected

* # of days between received date at the CPT/PMO and the date the check is cut

Cash Flow and InvoicingAs of December 2018

$8.0

$14.0

$10.4

$12.1

$7.9

$10.0$14.6

$12.2 $12.3 $12.4 $12.5 $12.6

$0$2$4$6$8

$10$12$14$16

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Mill

ion

Cash Flow

6

*Number of Projects counts each individual project as one project (e.g. ADA project bundled with a building projects count as 2 individual projects.)

Projected

Projects Status SummaryAs of December 2018

7

0

10

20

30

40

50

60

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

No.

of P

roje

cts*

PlanningDesignConstruction

4Projects Closed with Archiving

8

Project Close OutJuly – December 2018

Project Closeout Status To Date:

Active (in design or construction) 113

Substantially Complete* 711

Total Projects 824

4Projects

Substantially Completed

6Projects Closed

with DSA Certification

*Substantial Completion is a milestone achieved with the “Notice of Substantial Completion” form is signed by all required stakeholders.

Notable New Awards:

Procurement ActivityAs of December 2018

9

• LAVC - Accessibility and Gym Complex Campus Improvement Projects (“CIP”)

– Awarded: July 2018

– $5,315,650

• Watson Center CIP

– Awarded: September 2018

– $13,994,630

• Low Voltage Construction Services PQSP

– Awarded: October 2018

– Up to $40,000,000

• Job Order Contracting Consulting Services

– Awarded: December 2018

– Up to $1,000,000

$0

$5

$10

$15

$20

$25

$30

$35


Mill

ion

Professional Services Construction FF&E

LSEDV : Local, Small, Emerging, Disabled Veteran-Owned

10

LSEDV Program PerformanceAs of December 2018

56%44% LSEDV Companies

Non-LSEDV Companies

GOAL = 30%

Local Worker Hire PerformanceAs of December 2018

Source: District Wide - Local Hire Performance Ranking Dec ember 18 report* Cumulative since the inception of the amended Project Labor Agreement (PLA) on July 8, 2015; goal is 35% local worker hire.** Cumulative since October 2014 for remaining projects covered under old PLA; goal is 30% local worker hire.

37%63%

Local Workers under New PLA*

Local Workers Non-Local Workers

33%

67%

Local Workers under Old PLA**

Local Workers Non-Local Workers

11

* Goal of 3.4 used to align with a “green” threshold as part of the Key Performance Indicators (KPIs).

1 1 1 1

0

1

2

July Aug Sept Oct Nov Dec

Incidents

Total Recordable Incident Rate:

2.89(July ‘18 –Dec ‘18)Goal*: < 3.4

Labor Hours:

276,868.5**(July ‘18 – Dec ‘18)

12

Safety ReportAs of December 2018

** construction labor hours covered by OCIP

13

Risk Identification/Cost Workshops: January – July 2018• Multiple Risk Workshop sessions conducted with each CPT and PMO department to:

1. Identified new risks and mitigation measures.2. Reviewed and updated ongoing risks and mitigation measures.3. Closed risks.4. Performed quantitative and qualitative evaluations of risk data.

Risk Review/Model Execution: August – September 2018• Active College risk registers reviewed and ran model results.

Briefing of College Presidents: October – December 2018• Briefed each of the College Presidents on annual risk model results, top risk activity,

exposure trend, and available contingencies and reserve funds, for each of the respective campuses.

• Briefed the Chief Facilities Executive on program-wide risk activity and model results.

Next Steps: Ongoing• Continue to conduct Risk Workshops with PMO Departments and CPT to identify new risks

for existing A/AA/J projects and new CC projects, as well as update and close, as necessary.• Run Expected Value Risk Analysis Model on 2019 risk activity.• Annual Risk Assessment Briefing to District: Late-2019.

Risk Program UpdateAs of December 2018

PMO Reporting Deliverables Tracking Assessment: Ongoing

Key PMO Reporting Enhancements: • Enhanced Lessons Learned (LL) Submission process:

• Introduced new LL Comments/Issue Form, Master Tracking List, and Informational Notice

• LL meeting/brainstorming session conducted (CPT/PMO); resulting in:• 2 focus group meetings were established to address/resolve Programming

Criteria and Contract/Accounting concerns and issues.

• Introduced Earned Value Reporting (For Measure CC)• Enhanced CPT staffing tool projection (Pilot being conducted at Harbor and

Southwest)• Enhanced Cost Account Generator Engine (Currently in use)• Introduced enhanced process for Prompt payments • Updated Section 01- 3150 Health, Safety & Environmental Requirements• SOP Updates

14

Continuous Improvement InitiativesAs of December 2018

CPT Quality Assessment (9 Colleges):• Areas of assessment completed for 2018: Milestone Coding, Building Information

Modeling (including PMO), Finance/Accounting, Program Forms & Templates.• Assessment reports to be completed by February 22, 2019. Assessment

implementation process will follow. • Next assessment scheduled to be completed in June 2019 in the areas of

safety, closeout, and finance/accounting.

PMO Department Assessments: • PMO Building Information Modeling (BIM) department assessment report to be

completed by February 22, 2019 • Recommendations implementation: April/2019 – March/2019• Next Assessment scheduled to begin in February 2019 in the areas of Contract

Workflow, Documents Control, Labor Compliance.

15

Continuous Improvement Initiatives, ContinuedAs of December 2018

KPMG Financial Audit Report:

• Financial Audit Issued December 2018: No Findings.

KPMG Draft Performance Audit Report Action Items:

• KPMG Presented Performance Audit to FMP&OC on November 28, 2018 and January 23, 2019

• High Priority- PMO Transition: High priority recommendations related to contract and PMO deliverables discussed with District.

• Medium Priority - Cost Estimating: Address by end of May 2019.

• Procurement: No Findings.

Performance Audit Scope

Covers: July 1, 2017 – June 30, 2018

1. PMO Transition

2. Cost Estimating

3. Procurement

16

External AssessmentsAs of December 2018

17

Thank You

Report Date: February 4, 2019 BUILD-LACCD BOND PROGRAM

Active Construction Project Status Report

(Prop A, Prop AA, Measure J)

Page 1 of 1

Line # Project # Project NameProject

Status

Contract

Type 1

Original

Contract

Value

[A] 2

Aggregate

Approved Change

Order Amount to

Date

[B] 2, 3

Change

Order % /

Original

Contract

Value

[B/A]

Current Revised

Contract Amount to

Date

[C =A + B] 2

EAC (Construction

Only) 5

Physical %

Complete

Original

Contract

Substantial

Completion

[I]

# of Calendar

Days Extended

to Date by

Mutual

Agreement

[J=K-I]

Revised

Contract

Substantial

Completion

Date

[K]

Current

Forecasted

Substantial

Completion Date

[L]

Los Angeles City College

1 01C-108.00 Da Vinci Hall In Construction DBB $17,661,000 $1,744,062 9.88% $19,405,062 $26,598,614 72% Jul-18 184 Jan-19 Oct-19

2 40J-102.01 City - Trans and Accessibility Improvements In Construction PQSP $960,000 $0 0.00% $960,000 $2,023,734 75% Jan-19 0 Jan-19 Mar-19

East Los Angeles College

3 02E-222.07 Site Restorations at Bungalow Complexes In Construction PQSP $875,000 $0 0.00% $875,000 $1,293,379 35% May-19 0 May-19 Jul-19

Los Angeles Harbor College

4 03H-350.01 S.A.I.L.S-Student Union In Construction DB $39,809,201 $12,983,473 32.61% $52,792,674 $53,068,683 97% Apr-14 1,806 Mar-19 Feb-19

5 03H-350.03 S.A.I.L.S-Infrastr/Land & Hardscape/Security In Construction DB $16,260,112 ($116,614) -0.72% $16,143,498 $16,655,687 95% Apr-14 1,806 Mar-19 Sep-19

6 40J-309.03 Harbor Stormwater Location #2 Basin Bioretention In Construction PQSP $241,340 $0 0.00% $241,340 $241,340 30% Apr-19 0 Apr-19 Apr-19

7 40J-309.04 Harbor Stormwater -Pre-Treatment In Construction PQSP $219,400 $0 0.00% $219,400 $232,742 8% Apr-19 0 Apr-19 Apr-19

8 40J-309.05 Harbor Stormwater - Location #3 Area C Bio-Filtration Planters In Construction PQSP $636,260 $0 0.00% $636,260 $636,260 45% Apr-19 0 Apr-19 Apr-19

Los Angeles Mission College

9 04M-425.00 Central Energy Plant In Construction DB $15,795,107 $345,912 2.19% $16,141,019 $16,830,303 45% Aug-19 0 Aug-19 Nov-19

10 04M-406.01 Student Services/Admin Swing Space In Construction PQSP $873,400 $0 0.00% $873,400 $1,667,718 82% Jan-19 0 Jan-19 Apr-19

Los Angeles Pierce College

11 05P-543.02 Parking Lots and Roadways - Anthropology/Geography In Construction DBB $2,475,800 $0 0.00% $2,475,800 $2,490,009 85% Mar-19 0 Mar-19 Apr-19

12 05P-543.03 Mason Reroute In Construction DBB $2,055,000 $0 0.00% $2,055,000 $2,633,544 75% Mar-19 0 Mar-19 Apr-19

13 40J-505.33 Physical Security and Hardware - Pierce In Construction LLB $1,979,854 $4,980 0.25% $1,984,833 $1,984,833 60% Mar-19 0 Mar-19 Mar-19

South Gate Educational Center

14 22G-261.01 South Gate Educational Center - Demo In Construction DBB $11,577,723 $0 0.00% $11,577,723 $20,000,000 10% Jul-19 0 Jul-19 Jul-19

Los Angeles Southwest College

15 06S-618.01 School of Science In Construction DB $15,499,000 $193,970 1.25% $15,692,970 $33,835,279 52% Jun-19 0 Jun-19 Jul-19

Los Angeles Trade Tech College

16 07T-709.02 Art and Culinary Arts Building - Phase 2 In Construction DB $45,726,892 $262,776 1.00% $45,989,668 $49,071,119 17% Jul-20 0 Jul-20 Jul-20

17 07T-709.06 Restroom Building In Construction DB $232,798 $0 0.00% $232,798 $254,547 5% Jul-20 0 Jul-20 Jul-19

18 40J-701.06 Culinary Building Solar PV In Construction DB $316,969 $0 0.00% $316,969 $429,115 2% Jul-20 0 Jul-20 Mar-20

19 07T-721.01 South Campus Athletic Field In Construction DB $1,533,568 $0 0.00% $1,533,568 $1,728,824 5% Jul-20 0 Jul-20 Apr-20

20 07T-779.17 Upgrade Existing Temporary South Tent In Construction DB $38,701 $0 0.00% $38,701 $60,058 4% Jul-20 0 Jul-20 May-20

21 07T-714.06 Construction Technology Yard and Storage Building - Phase II In Construction PQSP $1,520,600 $0 0.00% $1,520,600 $1,831,266 75% Dec-19 0 Dec-19 Feb-19

22 07T-773.05 Grand Avenue Enhancement Phase 1 In Construction DB $2,045,126 $0 0.00% $2,045,126 $2,310,227 90% Jul-19 0 Jul-19 Feb-19

23 07T-773.06 Blue Line Station Extension In Construction DB $2,917,786 $276,200 9.00% $3,193,986 $3,384,915 95% Aug-19 0 Aug-19 Feb-19

Los Angeles Valley College

24 08V-801.00 Valley Academic and Cultural Center In Construction LLB $78,508,391 $931,621 1.19% $79,440,012 $79,851,223 45% Dec-18 229 Jul-19 Jun-20

25 08V-825.01 Gym Complex Phase 2 In Construction DBB $1,635,700 $0 0.00% $1,635,700 $1,688,165 40% Jan-19 0 Jan-19 Mar-19

26 08V-845.00 Energy Infrastructure and Security System Improvements In Construction DB $9,687,439 $0 0.00% $9,687,439 $10,143,264 12% Jan-20 0 Jan-20 Jan-20

27 40J-802.01 Valley - Trans and Accessibility Improvements In Construction DBB $2,168,850 $0 0.00% $2,168,850 $2,865,447 25% Aug-19 0 Aug-19 Aug-19

West Los Angeles College

28 09W-948.00 Plant Facilities Center In Construction DB $2,337,469 $148,024 6.33% $2,485,493 $2,563,619 99% Nov-16 468 Mar-18 Mar-19

29 09W-951.01 Technology Learning Center 2 In Construction DB $19,552,232 $47,797 0.24% $19,600,029 $20,483,766 5% Apr-20 0 Apr-20 Apr-20

30 09W-982.00 Watson Center 2 In Construction DBB $12,090,535 $0 0.00% $12,090,535 $12,090,535 2% Nov-19 0 Nov-19 Nov-19

31 40J-902.03 West - Trans and Accessibility Improvements - ATA-Lot 2 Bridge In Construction DBB $1,904,095 $0 0.00% $1,904,095 $1,904,095 1% Nov-19 0 Nov-19 Nov-19

32 40J-902.04West - Trans and Accessibility Improvements - Lot 5 Elevator & Albert

Vera RampIn Construction DB $2,404,129 ($38,617) -1.61% $2,365,512 $2,401,134 3% Apr-20 0 Apr-20 Apr-20

33 40J-905.33 Physical Security and Hardware - West In Construction LLB $3,162,991 $0 0.00% $3,162,991 $3,220,274 88% Mar-19 0 Mar-19 Apr-19

Active Construction Projects Total 33 $314,702,467 $16,783,583 5.33% $331,486,050 $375,836,422

Notes

1. Contract Type: DBB = Design-Bid-Build DB = Design-Build LLB = Lease Leaseback PQSP = Prequalified Service Providers 4. Design EAC is included only for Design-Build contracts.

2. Columns [A], [B], and [C] are based on values for the prime general contractor solely. 5. Construction EAC includes the total of new construction and renovation hard costs.

3. Total Change to Date values excludes notice of changes and Change Order Proposals.

COST Data Date 01-Feb-19 3,4 SCHEDULE Data Date 04-Feb-19