MINUTES OF MEETING

DATE:ÊÊÊÊÊÊÊÊÊÊÊ January 4, 2005

SUBJECT:ÊÊ DelDOT / ACEC Delaware Transportation Partnering Committee

ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ

ATTENDEESÊÊÊÊÊ ORGANIZATIONÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ÊÊÊÊ PHONE

Carolann WicksÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2305

John EustisÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2031

Mike SimmonsÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2370

Bob TaylorÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2215

James HoaglandÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2036

Tom ClementsÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-368-6629

Marti DobsonÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2203

Fritz SchranckÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ DelDOTÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-760-2020

Scott RathfonÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ACEC DelawareÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-734-9188

Tom CarrollÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ACEC DelawareÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-323-9377

Ted JanuszkaÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ACEC DelawareÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 302-655-4451

On Thursday, November 18, 2004 a Delaware Department of Transportation (DelDOT) / American Council of Engineering Companies of Delaware (ACEC Delaware) Transportation Committee Partnering Meeting was held at the Delaware Department of Transportation (DelDOT) Administration Building, 800 Bay Road, Dover, Delaware.

A summary of the conversations held at the meeting is provided as follows:

GENERAL ISSUES

1. After introductions by meeting attendees, Scott Rathfon distributed and reviewed the meeting agenda.

2. Carolann Wicks provided an update on the status of the FY 2006 Capital Transportation Program (CTP).Ê Ms. Wicks indicated that the final CTP draft is online and that the governor would review the final CTP draft in January 2005.Ê Formal approval would be received in June 2005.ÊÊ Ms. Wicks indicated that DelDOT anticipates the need for additional revenue to fully fund the CTP.

3. Jim Hoagland discussed future requests for consultant services.Ê Jim Hoagland stated that a number of contracts would be advertised over the next months.Ê These contracts and anticipated advertisement dates include:

ÊÊ Bridge Safety Inspections ö November 2004

ÊÊ Utility Location Services -ÊÊÊ December 2004

ÊÊ Road Rating ö December 2004

ÊÊ Sign Structure Inspections ö February 2004

ÊÊ Traffic Engineering Open End ö April 2004

ÊÊ Design Support Services Open End ö April 2004

4. Carolann Wicks stated that there are (2) remaining design-build projects that have been previously approved in the State bond bill.Ê The scope and location of the design-build projects would be determined at a later date.Ê Ms Wicks indicated that DelDOT is looking for innovative project(s) where the design-build contract approach would be a good fit.

5. Scott Rathfon inquired about the status of P3 (Public-Private Program) Implementation.ÊÊ Carolann Wicks indicated that a recommendation would be forthcoming from the State.

6. Scott Rathfon asked if DelDOT needed ACECâs support of pending and/or current legislation.Ê Fritz Schranck stated that DelDOT may need support from ACEC on the Federal Motor Carrier Safety Improvement Act.

ADMINISTRATION ISSUES

A.ÊÊÊÊÊÊÊ DelDOT Errors and Omission (E/O) Policy

7. Scott Rathfon indicated that ACEC Delaware would soon submit their Draft Updated E/O Policy for DelDOT to review.

8. Fritz Schranck stated that he would be happy to review ACECâs Draft E/O Policy and that DelDOT is open to suggestions on how to update the current E/O policy.Ê Schranck added that DelDOT is willing to work with ACEC on specific insurance issues and does not need to strictly adhere to each ãboiler plateä point contained in the current E/O policy.Ê Fritz also indicated that consultants have requested modifications to ãboiler plateä points in the current E/O policy.

9. Carolann Wicks said that DelDOT is working internally with management staff to determine appropriate threshold levels with respect to adjustments to the E/O Policy.Ê Ms. Wicks stated that DelDOT would share its updates with ACEC.

B. Overhead Caps, Fixed Fee, Rate Increases and Reimbursables

10. Carolann Wicks began with discussion on DelDOTâs overhead cap and inquired about ACECâs motivation for this overhead cap discussion.Ê Ms. Wicks added that the State is not prioritizing an adjustment to DelDOTâs overhead cap at this time.ÊÊ Carolann Wicks offered that DelDOT would rather pursue a discussion with ACEC Delaware on incentive based (increased) fixed fee profit allowances that are tied directly to consultant performance.

11. The ACEC consultantÊ representatives felt that the DelDOT current 123% overhead cap is not reflective of current industry rates and also added that adjoining State DOTâs (PA, NJ, MD, VA, WV) have substantially higher overhead cap limits.

12. Scott Rathfon, Ted Januszka and Tom Carroll suggested that a future offline meeting be set-up with DelDOT to discuss the origins, background and basis for DelDOTâs current overhead cap, as well as how adjoining states arrived at their overhead allowance.

13. The meeting attendees then discussed the profit portion (fixed fees) for consultant design and construction inspection cost plus fixed fee contracts.Ê Tom Clements discussed the need for guidelines with regard to negotiating fixed fee for federal-aided consultant contracts.Ê He inquired if ACEC member firms had specific sample guidelines to determine fixed fee / profit ranges for consultant contracts.Ê

14. Carolann Wicks agreed to have representatives from DelDOT (John Eustis, Bill Gallant participate in a DelDOT-ACEC offline subcommittee to further discuss the future overhead cap and fixed fee profit issues.ÊÊ She stated that ACEC subcommittee would need to make a ãstrong caseä in of support future overhead cap adjustments and fixed fee modifications.Ê Ms. Wicks also emphasized that DelDOT would need discussion points on these issues for possible future discussions with the State General Assembly.

15. Carolann Wicks emphasized that ACEC Delaware needed to be prepared to further discuss these issues at the next meeting.

C. Standard Agreement Boilerplate

16. Scott Rathfon inquired on the status of the DelDOT Standard Boilerplate Consultant Agreement.ÊÊ John Eustis indicated that DelDOT needed to incorporate updated travel reimbursement and escalation rate provisions.Ê Scott Rathfon stated that ACEC would be available to review this final draft of this agreement prior to implementation by DelDOT.

D. Project Funding & Invoice Payments

17. The meeting attendees discussed the funding set-up for new contracts (FS-1) and the payment of consultant invoices (A/R).Ê

18. Carolann Wicks indicated that Kathy English, who is the new DelDOT Finance Director, will be meeting with various DelDOT Departments to determine a course of action for improving the timing of funding set-up and payment of consultant invoices.ÊÊ Marti Dobson added that Kathy English is making funding more readily available for contracts.ÊÊÊ

SPECIFIC ISSUES

A.ÊÊÊÊÊÊÊ Access to DelDOT Network

19. DelDOT representatives inquired to ACEC representatives on whether or not consultants are having problems accessing the DelDOT network for projects.Ê Bob Taylor added that he was not aware of problems with access or set-up of consultant accounts.

20. Mike Simmons added that Mike Balbierer will be leading the effort in updating DelDOT Standard Cell Libraries and Model Plans.

21. John Eustis inquired if ACEC consultant representatives had experience working with Transport Estimator Software.Ê No members present had any experience with this program.

B.ÊÊÊÊÊÊÊ Updates to Entrance Manual and Subdivision Street Guidelines

22. Carolann Wicks indicated DelDOT is three (3) months into a 14 month development process for updating the DelDOT Entrance Manual and Subdivision Street Guidelines.Ê Carolann also indicated that DelDOT would circulate the draft manual to ACEC Delaware at development milestones for comment.Ê There will also be a public comment period.Ê

NEXT MEETING

23. The next DelDOT/ACEC Delaware Meeting will be determined at a later date.

These meeting minutes reflect the discussions conducted at the above referenced meeting at the DelDOT Administration Building in Dover.Ê Any revisions or additions should be brought to my attention within seven (7) days, after which time they will be become the official meeting minutes.Ê Should you have any questions or comments, please do not hesitate to contact me.Ê Thank you for your attention to this matter.

Sincerely,

American Council of Engineering Companies of Delaware

Ted F. Januszka, P.E.

Transportation Committee

cc:ÊÊÊÊÊÊ Meeting Attendees, file

ÊÊÊÊÊÊÊÊÊÊÊ Mike Karia, Executive Director, ACEC Delaware