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During tonight’s Helena Montana City Commission meeting, Public Works Deputy Director Ed Coleman was asked by the Commission to provide input about the current lack of hard numbers for a major overhaul of the transfer station recommended by outside consultants who have been facilitating discussions about a new Integrated Solid Waste Master Plan (ISWMP).

It is important to note that during the November 8, 2023 ISWMP meeting, the outside consultants estimated that their proposed major overhaul of the transfer station could potentially cost over $53 million if all of their proposed bells and whistles for the city-county were included.

Tonight, Mr. Coleman told the Commission that (paraphrasing) ‘a significant engineering work effort is required in order to prepare a rough estimate that could be shared with the public via BeHeardHelena…and (here is the important part) that in light of continually escalating construction costs [in Montana], it will be very difficult to provide a rough estimate that could be considered anywhere near accurate.’

Let us hearken to a pressing June ballot issue – the infamous “Public Safety Levy” which includes, but is not limited to, a $7million 20-year bond measure funding the entire construction budget for a new fire station. Following are some important fiscal and project management considerations if you believe the fear-porn that Helena is going to soon burn to the ground if we do not immediately erect an additional fire station and that we need to make property taxes high enough so that many of your senior-citizen neighbors living on social security will become homeless as we accelerate efforts to tax them out of their homes:

• The city documents presented thus far declare construction costs at $376 per square foot.  The current Montana average prices per square foot is approximately $313 for a one-story structure; two-story approximately $515; complex 2+stories approximately $575.  How can the public be 100% assured the city can successfully complete this construction for only $376 per square foot without any additional tax/bond/levy/assessment increases once construction begins, and where is the supporting documentation for this assertion?
• The city admits that it has not attempted a major facility construction project of this magnitude since 1979.  In order to avoid having the outside construction firm use their project manager to lead the effort, which will result in the high likelihood of change orders that can double or triple total constructions costs over a period of years, have we yet been told who in Public Works has led how many previous successful on-time and on-budget comparable major facility construction projects for other municipalities before they came to work for City of Helena and how long ago did they deliver these successful comparable projects?
• How does our city intend to pay for cost overruns that will exceed the 15% management reserve included in their $7million cost estimate?  How will our city pay for inflation adjustments that are continuing to roil private and public major construction efforts throughout Montana without additional tax/bond/levy increases added to our already sky-high property taxes?
  • Who will be appointed to the Change Control Board/Oversight Board/Steering Committee for this project?
    • How many of us who are not on the HCC, but have led similar public sector projects of this magnitude will be included as voting members of the CCB/OB/SC for this initiative?
• What risk management framework is being implemented for this initiative?  Please share a list of the risk issues already identified and the risk response documentation for each of those risk issues.
  • What are the results of the city’s initial pre-mortem analysis for these initiatives? A pre-mortem analysis involves thoughtfully looking ahead and considering all potential risk events that could cause significant issues such as substantial cost overruns, unplanned construction delays, known-unknowns, and unknown-unknowns.

Risk management considerations for a municipal construction project involve identifying, assessing, mitigating, and monitoring potential risks throughout the project lifecycle. Here are some key considerations:

1. Project Planning and Design Phase:
   1. Conduct a thorough feasibility study and risk assessment before the project begins.
   1. Define project objectives, scope, budget, and schedule clearly to minimize uncertainties.
   1. Engage stakeholders, including local government officials, community members, and regulatory agencies, to gather input and address concerns early in the planning process.
   1. Consider environmental, regulatory, and legal requirements that may impact the project.
2. Contractual Risks:
3. Clearly define roles, responsibilities, and obligations of all parties involved in the project through comprehensive contracts.
4. Include provisions for change orders, delays, disputes, and unforeseen circumstances in the contracts.
5. Ensure that contracts comply with local laws, regulations, and industry standards.
6. Financial Risks:
7. Develop a realistic budget and contingency plan to account for cost overruns, material price fluctuations, and unexpected expenses.
8. Secure funding sources and establish financial controls to monitor project costs and expenditures.
9. Consider financing options, such as bonds or grants, to mitigate financial risks associated with the project.
10. Schedule Risks:
11. Develop a realistic project schedule with clearly defined milestones and deadlines.
12. Identify critical path activities and potential bottlenecks that may impact the project timeline.
13. Implement schedule management techniques, such as critical path method (CPM) analysis and resource leveling, to optimize project scheduling and resource allocation.
14. Safety and Health Risks:
15. Prioritize safety and health considerations throughout the project lifecycle.
16. Develop and implement a comprehensive safety program that complies with occupational health and safety regulations.
17. Provide appropriate training, personal protective equipment (PPE), and safety protocols for workers and subcontractors.
18. Quality Risks:
19. Establish quality assurance and quality control processes to ensure that construction activities meet design specifications and regulatory requirements.
20. Conduct regular inspections, testing, and quality audits to identify and address potential quality issues proactively.
21. Monitor subcontractors and suppliers to ensure that materials and workmanship meet quality standards.
22. Environmental and Regulatory Risks:
23. Obtain necessary permits and approvals from regulatory agencies before starting construction activities.
24. Implement environmental management practices to minimize adverse impacts on air, water, soil, and wildlife.
25. Monitor compliance with environmental regulations and respond promptly to any violations or incidents.
26. Community and Public Relations Risks:
27. Engage with the local community and stakeholders to address concerns and build support for the project.
28. Communicate project updates, milestones, and potential impacts to the public through various channels, such as community meetings, newsletters, and social media.
29. Respond promptly to public inquiries, complaints, and feedback to maintain positive relationships with the community.

By identifying and addressing potential risks early in the project lifecycle, municipal construction projects can minimize disruptions, delays, and cost overruns, and ultimately deliver successful outcomes for all stakeholders involved. Regular monitoring and review of risk management strategies throughout the project are essential to adapt to changing conditions and emerging risks effectively.

• What cadence will be established for public status meetings, allowing for direct questions and answers with members of the public, providing project status updates including, but not limited to, RAID analysis (risks, assumptions, issues, dependencies), the financial performance of the project(s) budget versus actual and forecast through completion?

Do you smell that?  I smell frog legs boiling!

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