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What does Rehabilitation mean for a Public-Private Partnership?

A Public-Private Partnership (P3) is a contract vehicle where a private developer – working with a public entity – designs, builds, finances and operates the infrastructure. This Pillar Talk will focus on the rehabilitation, or handback portion, of a P3.

P3 transportation projects have two varieties: availability payment or revenue risk.

In an availability payment model, the public entity pays a fixed amount on a monthly or annual basis, usually after making some larger “milestone” payments during or at completion of construction. The funding could come from general transportation funds, a bond issue or indirectly from tolls generated from the new roadway but retained by the public entity or any combination of these. An availability payment P3 is generally of shorter duration, generally 25 years.

A revenue risk project is funded directly by toll revenue generated by the facility. The developer takes on much more risk and is not guaranteed any level of funding from the public. Unless the public entity “buys down” the tolls by injecting cash, there is generally no “milestone” payments during or after construction. Due to these risks and funding variables, the revenue risk project duration is usually much longer: Often 50 years but it could be up to 75 years or longer.

Once the project is complete, it is turned over to the public entity. To ensure the public entity receives an asset in good condition, certain “handback” requirements must be met. The rehabilitation process is the manner in which the developer meets these requirements. The requirements are usually limited to major assets, such as pavements and structures.

Handback requirements generally require an asset be in a certain condition or have a set number of years of remaining service life on handover. For example, pavements could be required to have a maximum IRI or have structural capacity requiring no more than a 2” overlay within 10 years. Bridge structures may have to meet an NBIS rating of “7” or better.

Other items such as sign structures or high mast light structures may require 15 years of remaining service life. A high mast light structure may have a design life of 40 years. On a 25-year project, it would not need to be replaced. On a 50-year project, it would likely be replaced in year 40.

Longer projects tend to have lower handback requirements – this allows the project to be more affordable as it will likely be too expensive to expect a “brand-new road” be given back to the public at the end of the term.

To ensure the asset is in acceptable condition, a series of inspections will occur over the last five years of the project. The inspections would be made by an acceptable third-party engineer, with reports and recommendations made as to what the remaining service life is projected to be at project end. Some projects will have an escrow account where the developer sets aside money to guarantee funds will be available to complete the rehabilitation, with any remaining funds at handback kept by the developer.

Pillar, Inc. can help developers and owners understand the potential costs of handback requirements and can assist with bid-level budgets that ensure a quality asset is returned to the public. For more information, call 276.223.0500 or contact us online.

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Is Your Agency Maximizing Asset Management to its Fullest?

Last month I attended the 12th TRB Asset Management Conference (my third) and the 2018 AASHTO Committee On Maintenance Annual Meeting (my fifth).

While both conferences were about Asset Management, the focus of each was on two different planes. The TRB Conference focused more on strategic issues (i.e. risk, resiliency, sustainability) and the AASHTO Conference focused more on tactical issues (i.e. equipment, materials, technology, regulations). Asset Management has gone through a significant evolution from a tactical focus on operations and roadside maintenance to a powerful strategic management tool that enables agencies to better plan, manage and execute to maximize results and be more cost efficient.

The Evolution of Asset Management

In its infancy, Asset Management was more tactical, defined by how an agency’s operations and maintenance (O&M) staff managed the maintenance and upgrading of its physical roadside assets.
Over time, Asset Management has become more strategic – utilizing business and engineering practices and processes strategically and systematically to operate, maintain, and upgrade all assets by maximizing resource allocations. Ideally, this is conducted through decisions based on quality information and well-defined objectives throughout the agency.

Knowing How to Maximize Results

The maturation of Asset Management – along with other factors such as aging infrastructure, decreased budgets, higher accountability, and workforce attrition – has resulted in a fundamental shift in operations.
Agencies need to know and examine what they have (collect and condition assess assets) and what they can do with their money, people, equipment, and contracts (analyze and prioritize) to create a plan which maximizes results and comes closer to achieving their objectives.

Importance of Strategic Planning

No longer is Asset Management defined as O&M field personnel managing roadside items, but as a business practice for an agency to manage its entire asset collection (people, materials, equipment, and contracts).

Subsequently, strategic planning at a higher organizational level is becoming the more dominant and prominent feature of Asset Management. If not managed properly, this can cause a gap within an agency between the planners (office) and operators (field) placing each on different planes.

PILLAR Bridges the Planner-Operator Gap

Planners rely on the field data to model and develop the objectives. O&M field personnel rely on the same data to review, manage, locate, and execute the work to meet objectives. Therefore, Asset Management and Maintenance Operations are interconnected through quality field data. Planners and operators need to work with and understand each other and how to use the data to become coplanar. One cannot be subservient to the other.

This is where PILLAR can help. Our staff of professionals have been involved with Asset Management from its infancy and with Maintenance Operations for many decades. We understand the pitfalls and challenges faced by agencies developing and implementing their asset management plans.

PILLAR can and has helped gather the data utilized in developing and executing well-defined objectives. We collect, assess, analyze, and prioritize data through a variety of means and methods – enabling agencies to transition and mature with their Asset Management program.

We bridge the gap between planners and operators by combining our engineering background with our practical field experience. This translation not only advances but also strengthens an agency’s interconnection between planners and operators.

Contact us to discuss how we can strengthen your agency.

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Top 10 safety rules for the end of summer

John Meola, PILLAR’s Safety Director, penned an article for the Richmond Times-Dispatch discussing safety rules motorist should be aware of as summer comes to an end. 

Read the full article here.

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Mobile LiDAR’s fully automatic asset extraction capability sets it apart

Modern technology has catapulted the maintenance of roadway infrastructure to a new level.

When it comes to collecting data about your assets, PILLAR utilizes the Leica Pegasus: Two Ultimate as its choice for mobile LiDAR. The laser scanning and mapping technology platform provides what we need to get the job done.

This device utilizes two back-to-back cameras to create 360-degree images from a vehicle, boat, 4-wheeler or train. A removable SSD means you have the information at your fingertips when you walk into the office.

Fully automatic feature extraction

Semi-automatic feature extraction is good. Fully automatic feature extraction is the best, quickest, and most helpful. It allows you to get started on projects as soon as possible.

Using our full automatic feature extraction program, we can extract assets and their quantities quickly and accurately. If saving time appeals to you, contact us to see how much time we could cut out of your project and add back into production.

More than 20 assets can be extracted into your own geospatial information system. This comprehensive transportation infrastructure management application includes:

  • Signs
  • Guardrails
  • Bridge Clearances
  • Trees
  • Ditches
  • Overhead Utilities
  • And More

Collection and Execution

The information collected provides the most detailed data possible on your assets, helping you determine what you have and where it is located. This information can then be used to identify which work needs to be given the highest priority, helping you work within your budget.

InfraTrak is a GIS system asset management application agencies purchase as an additional tool to better manage assets. It is an iPad-based app with a GIS interface, able to overlay assets on aerial maps for an interactive set of field plans. InfraTrak is completely compatible with the most popular GIS software such as Esri’s ArcGIS software and many others.

For more information on PILLAR’s Asset Management Solutions, contact us or call 276.223.0500.

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Safety Should Not Take Days Off of Work

The safety measures a company puts in place tend to be taken for granted. That is until an accident occurs and the issue is brought to the forefront.

June is National Safety Month, an initiative led by the National Safety Council (NSC) to ensure “No One Gets Hurt.” The month aims to reduce the leading causes of injury and death at work, on the road and in homes and communities.

Each week of the month highlights a different aspect of safety: Week 1, emergency preparedness; Week 2, wellness; Week 3, falls; and Week 4, driving.

Prepare for the Unexpected

As news reports confirm, there are many types of emergencies we must be prepared to face in today’s workplace: active shooter situations, weather and natural disasters, terrorism incidents and medical emergencies, among others.

It’s critical for employees to be prepared to act according to your safety policies before, during and after such emergencies. Having plans in place and reviewing them with employees will help everyone get on the same page and minimize the risk of worst-case scenarios in an emergency.

Don’t Slip on Fall Prevention

Did you know that the third-leading cause of injury deaths is falls? According to the NSC, almost 32,000 people died from falls at home and work in 2014. In 2013, more than 47,000 workers were injured severely enough from falls that they required days off of work. Half of all fatal workplace falls were from 20 feet or lower, according to Injury Facts 2016®.

The good news is that falls are 100% preventable if proper safety procedures are implemented and followed. A couple of tips to keep in mind:

  • Ensure you and coworkers are properly trained on equipment.
  • Make certain stepladders have locking mechanism to hold front and back open.
  • At all times, keep either two hands and one foot or one hand and two feet on the ladder.
  • The ladder should be one foot from the surface it rests on for every four feet of height; it should also extend a minimum of three feet over the top edge.

Decrease Distracted Driving

The most proactively safe companies are going above and beyond state laws to ensure employees are not driving distracted on company time. Knowing you are four times more likely to crash when operating a cell phone, NSC maintains that any company serious about eliminating distracted driving accidents implement a cell phone ban on both hand-held and hands-free devices.

The NSC points to one Fortune 50 company with a simple phone-ban policy that covers all of the bases. It states that employees cannot use cell phones if an employee is doing any of the following:

  1. Driving a company car
  2. Operating a personal car on company business
  3. Driving on company property
  4. Using a company-supplied phone
  5. Using a personal phone for company business

Although June is designated as National Safety Month, it’s a reminder that safety procedures do not take vacations. Following safety protocol is of utmost importance to your business and its employees 24 hours a day, seven days a week and 365 days a year.

PILLAR’s safety team offers innovative and cost-effective solutions for your organization’s unique needs, including job-related safety meetings, distance learning opportunities, safety records management and on-site training.

For more information on PILLAR’s safety program, contact us online or call 276.223.0500.

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Top ten safety issues for contractors

After many years in the safety-consulting business, I have heard the loud chorus of employer complaints aimed at “Why do I need to do all this stuff?” To educate the contracting community, here is a brief summary of the Top 10 safety issues for contractors.

10) “No one told me I had to train these guys.”

Correct. You will not receive an engraved invitation from anyone on this topic. However, if you decide to open a construction business, you should be perceptive enough to understand, “There are rules in this game….”

Employer responsibilities for worker safety are actually fairly straightforward and relatively simple to meet. Visit the OSHA.gov page. There are simple tutorials available paid for by your tax dollars. You could also call a local personal-injury law firm. They’ll be glad to advise you.

9) “We are the best at what we do.”

Along with trade proficiency, your employees should also have matching safety skills depending on your line of work. Most large general contractors are increasing the contractor safety program admission criteria to bid their jobs. Just doing the job on time, on spec. and under budget is no longer enough. Proof of safety performance is necessary.

8) “Don’t blame us; we didn’t create that hazard!”

OSHA and VOSH (Virginia’s safety police department) have heard this excuse a lot. They actually have an answer for it called the Multi-Employer Worksite Policy. This doctrine basically holds all contractors on a site accountable if their employees were “exposed” to a hazard. You can be found at fault if you were just near the hazard. Your defense for this allegation is called due diligence and documented communication to the responsible parties about the hazard. In the meantime, if necessary, move your people well out of harm’s way.

7) “He’s my best guy, but he just won’t follow the safety rules.”

This statement is self-contradictory. For a tradesperson to be truly proficient, he or she will understand and adhere to applicable safety practices. You should be highly supportive of that. Your “best person” may need re-education or the exit door. Whether you realize it or not, you have a lot at risk from a rogue actor.

6) “Now my insurance company is pestering me about safety.”

Welcome to the new reality. The insurance company wrote coverage for your operation, therefore it expects you to play by the rules. Even the simplest of claims can turn ugly, so prevention is the preferred avenue of relief. Blatant non-compliance could result in revocation of coverage or big premium increases at renewal. Or you may end up in the assigned risk pool; in which case, you will regret not having done more of this safety stuff.

5) “There was nothing we could have done to prevent the accident.”

Even the most conservative appraisals classify preventable incidents in the high 90th percentile range. Most, if not all, incidents are preventable. Incident prevention is a matter of degree and commitment, but, at the end of the day, there is a simple list of must haves to gain admission. Trust me: With a little effort, you can avoid this stuff. Acts of God notwithstanding.

4) “The cost of doing all this safety stuff will put me out of business.”

When properly understood and applied, safety compliance is actually a small component of doing business. You are either in denial or misreading the safety rules. Yes, the rules can seem voluminous. Once understood, they’re actually not all that onerous.

3) “We have a good track record; we don’t need all this safety stuff.”

This is a commonly heard refrain in the safety business. The translation of this remark is, “We’ve just been lucky, that’s all.”

Reliance on your luck as a substitute for a safety program is ill-advised. Yes, most tradespersons will exercise a healthy degree of caution on the job without you lifting a management finger. But more complex work or even just driving around in the company truck deserves reciprocal attention for the risks involved. If you have employee driver fleet units, you should regularly be preaching defensive-driving practices.

2) “We are not worried about workplace violence; we got that covered.”

Not so fast. There is a lot of liability attached to the issue of workplace violence. A couple of simple maneuvers can help protect your organization and also help educate employees for prevention. We will most assuredly see a lot more emphasis on this in the near future from the authorities. Interestingly, there is currently no OSHA requirement to do anything for violence prevention. However, prudent management should step forward and define the policy and procedure.

1) “I thought all this red tape was going to be reduced.”

OSHA and the DOL may be temporarily underfunded, but the ABA and trial lawyers have the best lobbyists and wealthiest power grid on the planet. You might skate on compliance if your GC and client are sound asleep, but the legal community never rests. At least the safety police will treat you fairly depending on your transgression. Tort law and claim adjusters will be less kind.

Statistically, our population is most at risk from walking or driving to and from work as opposed to on the job. Workplace safety is ingrained into our societal DNA at this point, and regulatory compliance is largely taken for granted.

Business risk management, which includes occupational safety, has long been a monolithic field. That state of slumber is due for an awakening, and it is happening very quickly. We will examine these implications further in a future piece, but in the meantime, for additional reading, check out: www.doli.virginia.gov/vosh_enforcement/vosh_standards.html

This article was originally posted by the Richmond Times Dispatch

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Managers Manage Things, Leaders Lead People

Are you still using Occupational Safety and Health Administration (OSHA) metrics as your safety standard? Do you plan on being in this business 5, 10 or 20 years from now? If you answered yes to both, you have a value conflict. Why accept some random statistical average composed of questionable data as your standard when it is more effective to create personalized best practices and performance metrics?

PILLAR’s Safety Director, John Meola was recently published in Construction Business Owner magazine discussing 3 essential elements of a world-class safety program.

Read the full article here.

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PILLAR sponsors storm water management program for Leadership Roanoke Valley

PILLAR demonstrated its commitment to environmental issues by sponsoring a storm water program for the Leadership Roanoke Valley.

Mark Boenke, President of PILLAR, agreed to sponsor the event that educated Roanoke citizens about the operations and maintenance of stormwater runoff.

The event was based around the following objectives:

  • Recognize the challenges that the Roanoke-area has with storm water infrastructure
  • Identify the roles government, citizens and businesses have in storm water management
  • Apply mitigation strategies in attendees’ personal and professional spheres of influence

Here are several facts about Roanoke’s storm water runoff system:

  • 774 storm drain outfalls in the city empty runoff (trash, oil, sediment makes its way into streams) directly into streams
  • A 1,600 square-foot home sheds almost 1,000 gallons of water in a 1” rainfall
  • The annual runoff from one acre of a paved parking lot generates the same amount as 36 acres of forest or 20 acres of grassland
  • More than 1,400 tons of debris was removed from the city’s streets in 2017

Properly managing water runoff to protect the environment is one area that PILLAR is particularly passionate about. The company’s staff regularly helps its clients lengthen the life of storm water systems for highways, municipalities and public-private partnership projects.

Leadership Roanoke Valley was created in 1983 to foster community leadership in the region. The interactive 10-month program encourages participants to use creative ideas and approaches to address business and community issues.

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What does the “O” mean in Roadway O&M?

We understand generally what roadway operations and maintenance is: everything it takes to care for and operate the roadway while keeping it safe for the traveling public in the short- and long-term. We use the terms “operations” and “maintenance” together as if they are inseparable. For most projects, they are. They occur simultaneously.

But what exactly are operations? Can they be separated from the maintenance?

WHAT ARE OPERATIONS?

Operations consist of a suite of services that are distinct and can be separated from maintenance. Operations can be further defined by the following major services: Snow and Ice Control (S&I), Incident Management (IM), and Courtesy Patrol/Towing (CPT). This paper does not include Toll Operations, which is a separate and distinct discipline.

INCIDENT MANAGEMENT

IM is any response to an abnormal situation on the roadway which includes man-made situations (accidents, terrorism or other law enforcement activities), major weather events, or sudden failure or damage to the road. Most items require basic or complex traffic control installations and detours. Large crashes involving commercial vehicles can include hazardous materials spills, damage to infrastructures, and prolonged cleanup times.

SNOW AND ICE

S&I is just what it sounds like: removal of snow and/or ice to make the roads safe to use. The work generally consists of plowing snow and spreading salt, sand or various liquid anti-icing chemicals. Depending on the climate and expected snowfall, the work may include heavy equipment like motor graders, snow blowers and rubber tire loaders.

COURTESY PATROL/TOWING

CP/T generally includes providing a fleet of well-equipped service trucks and trained staff to help stranded motorists by providing fuel, water for overheated radiators, jump starts or simply pushing a vehicle out of a lane and into a safe area such as the road shoulder. The frequency and duration of the patrolling will be specified in the contract performance section and is usually limited to peak travel times.

WHY SEPARATE?

While all these services are usually provided under the “operations” mantra, they can be removed all together or included as separate parts.

Some owners are reluctant to give control over to operations services. This may be due to poor experiences with outsourcing or the belief that poor service and negative publicity is undesirable, so the service must be retained by the owner. Another reason may be that the owner already provides a successful, integrated Courtesy Patrol and Incident Management service and wants to continue providing it.

The decision to outsource or retain the various operations services is ultimately the owner’s, but careful consideration must be given to the total cost as well as the risks involved with these decisions.

Want to learn more about operations and maintenance? Contact Us.

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Surveying Science Marches On

 
Since the days of Thomas Jefferson, the science behind mapping and surveying has continuously evolved. In those days, high tech meant a brass compass placed on a staff, or maybe a fixed leg tripod combined with a wooden stick or steel chain. This equipment had its limitations regardless of how careful the surveyor was. To put this into perspective, Mr. Jefferson would have measured an angle to the nearest degree with a device that was controlled by the magnetic forces of the earth, and horizontal distance typically to the nearest foot with a 16.5′ wood pole. To put in laymen’s terms, “there is some slop in them measurements.”

Today, a digital total station used by surveyors can measure an angle to the nearest 1 second of arc (60 seconds of arc in 1 minute and 60 minutes of arc in 1 degree), and distance to the nearest one thousandth of a foot. It’s like comparing calculating an equation using either your fingers or an HP48GX graphing calculator. If you told Jefferson you had equipment that could measure to that accuracy without even stretching a chain between two points, he and the other elders would have probably tied you to a post while they lit it on fire.

While surveying accuracy has dramatically improved, what hasn’t changed is the purpose behind mapping and surveying which is to identify a particular point on the ground. Additionally, regardless of what year it is – 1818, 1918 or 2018, – the same issues persist: missing monuments, title gaps and overlaps, encroachments, possession disputes, vague legal descriptions and on and on. A land owner usually doesn’t grasp how the science behind mapping and surveying relates to its purpose. Their sole understanding is confined within the little blue document they have in their hand that describes what they own (their deed). As a surveyor, it feels as though you hear the words “but my deed says” from clients no less than a million times during your career.

Recently, I heard these very words from a client who contracted PILLAR to retrace a boundary line along the east side of his 95-acre tract in some fairly rugged terrain. The title description was based on a physical survey performed in 1850 – yes folks, I said the year of our lord one thousand eight hundred and fifty (as written in this particular deed). He hired Pillar to do the survey because he did not agree with the boundary line previously establish by another firm.

All physical monuments as referenced in the description were destroyed over the last 167 years, leaving only two non-original markers at each end of the line in question. This client could not understand why the courses and distances didn’t match exactly what was stated in his deed. When physical monuments are missing, a surveyor must rely on these courses and distances to re-establish that boundary line. This is where the relative precision and accuracy of the equipment used when the original survey was performed must be considered.

If an original measurement was recorded as 45 poles between two points (remember 1 pole = 16.5′) and a modern surveyor produces a field measurement of 751.65′ between the same two points, try to consider the fact that the original surveyor was flipping a stick end-to-end up that mountain to produce a measurement.

After all, who knows what will be considered accurate and precise in the year 2184? I might just be the one who would tie you to a post…