Statement of Qualifications for
Administrative Services, Financial Services, Public Works and Emergency Services, Permit and Inspection Services, Planning and Zoning Services, Engineering Services, Stormwater Management, and Code Enforcement 2011
Proprietary Notice The information, ideas, and material contained in this document are the property of CH2M HILL and may not be distributed, copied, or disclosed, in whole or in part, for any reason without written consent of CH2M HILL.
Statement of Qualifications for
Administrative Services, Financial Services, Public Works and Emergency Services, Permit and Inspection Services, Planning and Zoning Services, Engineering Services, Stormwater Management, and Code Enforcement 2011
Table of Contents Section
Page
A: Cover Letter/Executive Summary Exhibit D: Declaration of No Conflict of Interest B: Qualifications and Experience………………………………………………………………….B-1/B-12 CH2M HILL is a U.S.-Based, Employee-Owned Company Committed to Excellence, Financial Success, and Fulfillment of All Contractual Obligations to the Satisfaction of Our Clients………………………………………………………………………..………..B-1 Operator’s Contact Information……………………………………………………………..…...B-2 Corporate Contacts…………………………………………………………………………….....B-2 CH2M HILL Has the Depth of Experience You Desire…………………………………………….……..B-3 Additional Experience………………...……………….……..……………………………………………...B-3 Transition…………………………………………….……..…………………………………….B-3 Safety…………………………………………….……..…………………………………………B-3 Emergency Response……………………....…….…………………………………………….….B-4 Customer Service Plan…………………………………………….……..………………………...B-5 Everyday Excellence……………………………………………………………………………....B-6 Project Termination…………………………………….……..…………………………………………….B-6 C: Key Team Member Qualifications……………………………………………………………..C-1/C-27 Roy Hutchinson, Program Manager…………………………….…………………………….…...C-2 Ashley Porche, Accounting Manager………..………..………..………..………..………..……….C-3 David Cody, Public Works Director……………………………………..………..………..……...C-5 Kathrynn W. Cowen, C.F.M., Planning & Zoning Director……………………..………..………..C-6 Scott Price, CBO, Building Official…………………………..………..………..………..………..…...C-7 Joseph E. Sensebe, P.E., Engineering Support……………..………..………..………..………..…C-8 Joseph O. Young, P.E., Engineering Support…………..………..………..………..………..……C-10 Don Howell, Municipal Practice Lead………………………..………..………..………..……….C-12 Grega St. John, Client Service Manager…………..………..………..………..………..………….C-14 Brent W. Stauffer, Regional Business Manager…………………………….……………………..C-15
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Table of Contents Gary Wood, Regional Business Group Manager…………………………………………………C-17 P.R. Bob Munro, Business Systems Support……………………….……………………………..C-19 Steve Meininger, P.E., Corporate Sponsor……..…………………………….…………………...C-21 Cynthia Beyer, Legal Liaison……………………….…………………………….…………….....C-23 Staci Martinbrough Wilbon, CPPB, Procurement Support……………………………………….C-25 Rene Cousineau, Financial Oversight…………………………………………………………….C-26 CH2M HILL has Procedures in Place for Seamless Personnel Replacements…………………………...…C-27 D: Information Technology Resources and Equipment………………………………………………...D-1/D-2 CH2M HILL Owned Technology…………………...……………………...……………………...…………..D-1 Technology Resources and Equipment Which Will Be Solely Dedicated To City………………………......D-1 Shared Technology Resources………….…………………..………….…………………..………….…D-1 Additional Information Technology Resources……………………………………………………………………D-2 Section E: Additional Equipment and Resources………………………..………………………..………E-1/E2 Equipment……………….……………….……………….……………….……………….…………………….E-1 Additional Resources……………………………….……………….……………….……………….…………...E-1 F: Insurance and Bond………………………….………………………….………………………….……….F-1 CH2M HILL has the Financial Resources to Meet the Terms of the Contract………………….…………………...F-1 G: Program Management Approach.……………………………………………………………………G-1/G-30 1. Administrative Services………………………………………………………………………………………...G-2 Software Licensing……………………………………………………………………………………..G-2 Capital Program Administration………………………………………………………………………...G-2 Forecasting and Policy Implementation……………………………………………………………….....G-3 Contract Administration………………………………………………………………………………..G-3 Communications and Public Relations…………………………………………………………………..G-3 Department Support….….….….….….….….….….….….….….….….….….….….….….….….….……G-5 Information Technology, Website Maintenance, and Technology Support……………….….….….….…..G-6 Online Payments………..….….….….….….….….….….….….….….….….….….….….….….….….….G-7 Geographic Information System (GIS)…………………………………………………………....….….G-7 Grant Assistance……………………………………………………………………………………….G-8 2. Financial Services……………………………………………………………………………………………....G-9 3. Public Works………………………………………………………………………………………………....G-11 The City’s Partner……………………………………………………………………………………..G-11 Initial Focus…………………………………………………………………………………………..G-11 Staffing……………………………………………………………………………………………….G-11 Drainage Maintenance……………………………………………………………………………...…G-13
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Grass Cutting and Weed Control……………………………………………………………………....G-14 Litter Control……………………………………………………………………………………….....G-15 Bridge Assessment and Minor Repairs……………………………………………………………….....G-15 Roadway Repairs……………..……………..……………..……………..……………..……………....G-16 Roadway Striping……………..……………..……………..……………..……………..……………...G-16 Sign Maintenance……………..……………..……………..……………..……………..……………...G-16 Special Services…………….……………..……………..……………..……………..……………..….G-17 Traffic Signals……………..……………..……………..……………..……………..………………...G-17 Utility Coordination……………..……………..……………..……………..……………..…………...G-18 Emergency Services…………….……………..……………..……………..……………..…………....G-18 Community Development……….……………..……………..……………..……………..…………...G-19 Staffing……..……………..……………..……………..……………..……………..……………..…...G-19 4. Permit and Inspection Services……..……………..……………..……………..……………....………………G-21 Planning and Zoning……..……………..……………..……………..……………..…………………..G-21 Commission Coordination……..……………..……………..……………..……………..…………….G-21 Local and State Fire Officials Coordination…………………..……………..……………..………….....G-21 East Baton Rouge Parish and Louisiana Department of Public Health Coordination……..………………G-21 Customer Service Center……..……………..……………..……………..……………..…………….....G-21 Self-Funding Building Permit Inspections and Related Services Programs………………………….……G-23 Development Permits………………………...……..……………..……………..……………..……...G-23 Construction Permits…………………………..……………..……………..……………..…………...G-23 Onsite Construction Inspections and Enforce Specifications and Standards……………………………...G-23 Assistance Reviewing Construction Plans…………………………………………………………….....G-23 Occupancy Permits For Residential and Commercial Uses……………………………………………...G-24 Trade Permits and Conduct Inspections……………………………………………………………….G-24 Plan Approval and Permits for Signage………………………………………………………………...G-24 5. Planning and Zoning Services……………….………………………………………………………………...G-24 Sixty Hardship Cases Cleared for Compliance Promotes Property Improvements for City…………….…G-24 Planning and Zoning Activities………..……………………………………………………………….G-25 Zoning and Building Code Communications……….…………………………………………………..G-25 Planning and Zoning Policies and Procedures………..……………………………………………….....G-25 6. Engineering Services………….………………………………………………………………………………G-27 Floodplain Management…………………….…………………………………………….…………...G-27 Community Rating System………………………………………………………..………………...….G-27 Construction Plan Review and Approval………………………………………………………….….....G-28
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Table of Contents Approval and Inspection of Land Development………………………………………………………..G-28 7. Stormwater Management…………………………………………………………………………….……...G-29 Construction Best management Practices………………………………………………………..……...G-29 Storm Water Management Practices Annual Reporting…………………………………...……..………G-29 Storm Water Pollution Prevention Plans (SWPPP)…………………………………………………..…G-29 Compliance with the Clean Water Act and Associated Federal and State Regulations…………………….G-29 Storm Water Management Plan………………………………………………………………………..G-30 Storm Water Management Practices Annual Reporting……………………………………………….....G-30 8. Code Enforcement Services……………………………………………………………………………….G-30 Construction Codes, Building Regulations, Use Regulations, Zoning Ordinances, Land Use Restrictions, and Sign Ordinance Enforcement…………………………………..G-30 Construction Code, Building Regulation, Use Regulation, Land Use Restriction, Sign Ordinance, and Other Similar Laws, Codes, and Ordinances Compliance………………G-30 H: Contract………………………………………………….…………………………………………………H-1 Signature Authorization………………………………………..………………………………………..H-1
Exhibit
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B-1: Relevant Experience Portfolio…………………..…………………..…………………..………..B-7/B-12 B-2: ERP Objectives…………………………………………….……..…………………..………………..B-5 G-1: Organization Chart…………………..…………………..…………………..…………………..…….G-1 G-2: Administration Position Chart…………….…………….…………….…………….…………….…...G-6 G-3: Public Works Position Chart……………………….…………….…………….…………….……....G-12 G-4: Roadways for Litter Control, Grass Cutting and Weed Control…………………………….………...G-14 G-5: Crew Rates for Emergency Services for 4-Man Crew (Labor Only)……………… ………………….G-18 G-6: Community Development Position Chart…………………………………………………………....G-20 G-7: Permits Issued…………………………………………………………………………………......…G-23 G-8: Sign Permits Issued…………….…………….…………….…………….…………….……………..G-24 G-9: Zoning Cases….…………….…………….…………….…………….…………….…………….….G-25
Appendix A: Financial Information B: Project Experience C: Letters of Commendation
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CH2M HILL 9191 South Jamaica Street Englewood, CO 80112-5946 Tel 303.771.0900
A. Cover Letter
April 27, 2011 City of Central ATTN: City Services Proposal 13421 Hooper Road, Suite 8 Central, Louisiana 70818-9200 Subject: Statement of Qualifications and Option 1 and Option 2 Cost Proposals for City Services Evaluation Committee: I am pleased to present CH2M HILL’s operations, maintenance, and management Statement of Qualifications and Cost Proposal for Option 1 and Option 2. The Cost Proposals for Option 1 and Option 2 are bound and packaged separately from this Statement of Qualifications as required per Addenda No 2 dated April 8, 2011. As I write this letter, I am happy to be congratulating the City of Central (the City) on its 6-year anniversary of autonomous cityhood, and for its continuing success as a leader of Louisiana’s newest cities. Since its inception, it has been a priority for the City of Central to deliver important services directly to your citizens. I am proud of the role CH2M HILL has played in transitioning the delivery of services from East Baton Rouge Parish to an organization that is dedicated solely to serving the City of Central. I offer my personal thanks for allowing our company to be a part of Central’s evolution into a full service municipality and we sincerely hope that you will extend this partnership into another term. The City and CH2M HILL have together encountered many opportunities and challenges that have presented themselves since our partnership formally began in 2008. I am especially thankful for our ability to work together, to adjust our direction to take advantage of the good times, and to realign our priorities when faced with tougher days. Above all, I am excited to move forward together in the future, redoubling our combined efforts to achieve the vision that is the City. I have been pleased to visit Central on a number of occasions. On each trip, I am reminded that the people who make up its population depend on CH2M HILL and our local staff to give our absolute best. I have watched with pride when we have exceeded your expectations, and I have personally worked with our local staff and regional support team to make changes when it appeared to me we had fallen behind the curve. It is our goal to deliver excellence to you, our client, every day of our engagement, and I look forward to building on the focus and dedication of our staff in Central for many years to come. I depend heavily on our local staff—specifically our Program Manager, Roy Hutchinson, and our Public Works Director, David Cody—to be my eyes and ears on the ground. For the past year and a half, they have listened intently to the feedback coming from the citizens, from the community, and from elected officials. It is clear to us the community has higher expectations of CH2M HILL than the straightforward execution of our
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contracted duties, and as it is our intent to be a world-class partner with the City. It is my hope our efforts to date in these areas have been apparent (and examples of our activities are included throughout the proposal), but I would like to offer our specific commitment to all stakeholders moving forward. As you read through our proposal, you will see our continued commitment to service delivery and continuous improvement through transparency, flexibility, and consistency in service delivery and cost controls.
Transparency We will continue to look for ways to increase the communication and feedback available to concerned citizens and elected officials. We understand the importance of active community involvement, and have outlined a number of areas where we believe that we can directly address the level of communication and interaction between all interested parties. In addition to this commitment, we have also chosen to offer two billing choices as part of our proposal: the traditional “lump sum” offer and a more transparent “cost reimbursable” approach. Details of both are provided in our price proposals, and CH2M HILL is eager to continue our strong and open relationship with the City under either approach.
Flexibility While we strongly believe a single source supplier delivers the most overall value to the City, we understand it is important for the community to look at all available options when sourcing city services. As such, we have included Cost Proposals for Option 1 and Option 2 of the RFQ/P. Our clear preference is to provide all services in Option 1, as our focus remains on single-point accountability and the responsibility that comes with it. We believe this approach offers incremental room for long-term cost optimization and process integration, as our targeted moves from subcontractors to self-performance in the past have proven. Despite this internal bias, we strongly support the City’s right to pursue the option of its choice, and will apply our efforts in the City’s best interests regardless of structure.
Consistency For the past 3 years, the City and CH2M HILL have worked together to identify processes, systems, and people that have come together to provide creative solutions to complex problems. Whether focusing on routine daily maintenance, one-off engineering challenges, or long-term initiatives designed to better the City, we believe the shared approach developed over this time provides true incremental value to the City. Only CH2M HILL is positioned to build on this foundation without the staffing changes, system training, and the operational miss-steps that are an inevitable result of any transition process. We are poised to deliver municipal services to your community in a seamless manner, and committed to maintaining a steady stream of service to the citizens of Central. Since the beginning, CH2M HILL’s intent has been to deliver the highest quality services to the City at a fair cost that meets both the expressed contractual terms and the evolving needs of the community. The local team and I are proud of the distance we have come in our partnership with the City over the past 3 years—from trusted advisor and architect of the current municipal services structure to 24/7 service provider, we stand ready to continue our relationship in the future. We look forward to the opportunity to continue building a world-class community here in Central. Should you have any questions about the content of this proposal, our approach, or our history in Central, please contact me, Steve Meininger, as the Corporate Sponsor via phone at 443.535.9408 or via email at steve.meininger@ch2m.com or Grega St. John, Client Service Manager via phone at 630.768.9941 or via email
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at grega.stjohn@ch2m.com. Either of us will be available to quickly respond to your questions to help ensure that we are meeting your needs. Congratulations on your first 6 years, and I offer our best wishes for many more. We appreciate the opportunity to provide services to the City, and are sincerely excited for the opportunity to continue our growth together in the future. We thank you for the opportunity to submit our statement of qualifications and proposal and the separately bound cost proposals for this project and look forward to continuing our work with you. Thank you for your consideration. Sincerely,
Steve Meininger, P.E. Regional Vice President-Project Delivery/Corporate Sponsor
Section A
Executive Summary April 23, 2011 marked an important milestone–the 6th anniversary of the incorporation of the City of Central, Louisiana. With one public vote in 2005, the groundwork was laid for a community that numbers greater than 26,000 residents just six years later. This was a vote for more than a change of governmental structure – it represented a desire to secure a more independent form of representation, to increase involvement in business, schools and education, residential decisions and, most importantly, to formalize the very community that had simply been called home for generations before. The creation of a new city did not happen overnight—early government meetings were held not in a dedicated facility, but in a single room with folding chairs and a card table serving the needs of elected officials. Despite a clear vision and hard work by all involved, it was not until July of 2008 that the City was able to take the final step towards financial and operational autonomy by creating a public private partnership and establishing full municipal capabilities. By choosing to partner with CH2M HILL and leverage our strength and experience, the City of Central (the City) was able to secure its independence and lay the groundwork for future expansion. As an early participant and national model for Public Private Partnerships, CH2M HILL came to Central in 2008 with optimism, experience, and the resources necessary to assist the City in its efforts at growth and sustainability. Since then, the City has relied upon CH2M HILL to provide general government services that span the scope of work for each individual task and beyond. Our dedicated team offers the experience, expertise, first-hand knowledge, and resources necessary to explore and implement cost-effective and innovative solutions across a broad spectrum of services. Our partnership demonstrates how local government can team with a private sector partner to provide the most efficient and effective service delivery model anywhere. Today, we look forward to continued optimization of our delivery model in Central, providing additional scope at a lower overall cost and providing incremental value to the community of which we have truly become a part.
Key Features of our Proposal Through the years, our approach, processes, and tools have evolved based on the City’s needs in a manner that provides unmatched service and meets citizens’ expectations. Our approach has mirrored the City’s: An initial period of rapid creation and implementation, followed by a second period of process and systems optimization. Today, our commitment to sustaining and building on this level of success requires a steadfast commitment to continuous improvement – a core principal of CH2M HILL and a critical driver of the City’s current Request for Qualifications and Proposals (RFQ/P) for City Services.
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Executive Summary As requested, our proposal complies with RFQ/P specifications and establishes a foundation for growth while addressing each of the key evaluation requirements. Our targeted approach to value creation at the City includes the following key concepts:
Accountability—Improve measures of performance against contract requirements.
Responsiveness—Ensure timely response to the City’s requests and inquiries.
Transparency—Provide greater insight into the cost of services and systems.
Continuity—Maintain continuous high-level of service without the need for transition and service interruptions.
Capability—Enhance capability and innovation in providing general government services.
Our Values People First—our people are our most important resource, and we strive for an inclusive environment where diverse backgrounds, experience, and perspectives are appreciated and respected. Safety—we believe a safe work environment is paramount, and we must all take responsibility for our own safety and the safety of those around us. Quality—we commit ourselves to the highest standards of quality, from the systems we implement to the results we deliver. Integrity—we hold ourselves to the utmost level of integrity and ethical behavior in all we do. Community—we set a leadership example as a solid corporate citizen, helping to enhance the quality of life in the communities where we live and work. Teamwork—we foster and promote teamwork among our people, believing always that collaboration enhances performance. Openness—we recognize that open communication
The best indicator of future success is past among ourselves and with our customers is the key to performance, and for the past three years CH2M HILL better relationships and critical to our mutual success. has worked with the City to navigate a difficult national environment that has proven to be an overwhelming challenge for many similar communities. In addition to our commitment of process optimization within the scope of the original agreement, the Central/CH2M HILL team has focused on additional areas of contribution, with value-added services highlighted throughout our proposal. Examples of CH2M HILL’s impact on the greater Central community are included below:
Program Definition—CH2M HILL worked with the City to design a unique Public Works program to meet the City’s initial goals to provide field services, traffic services, stormwater services, and construction inspection for the City. A deep understanding of the City’s unique needs and challenges allowed us to work together to create a system that met the expectations of its citizens while respecting the unique economic and physical constraints of the area.
Grant Research, Writing, Acquisition, and Administration—Our team has proven capacity to prepare winning grant applications that provide critical and necessary resources to assist the City with its development and Capital Improvement Plan (CIP) goals. The value to date for the City has exceeded $750,000 dollars.
Talent Management—CH2M HILL has a proven ability to attract and retain key talent, identifying and upgrading both key and support positions when necessary. Our staff continuity assures that the City’s business will continue without interruptions or time for transitional changes or a learning curve.
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Roy Hutchinson, Program Manager and David Cody, Public Works Director—Both were elevated to their current positions to augment the existing CH2M HILL program and have expressed their desire to remain in their current positions should CH2M HILL be retained as the City’s Municipal Services provider. Both are long term residents of the Central area, active members in the Central community, and provide valuable experiences that cannot be duplicated in the short term.
Disaster Recovery—During the last 4 months of 2008, the City was hit by two significant hurricanes and one of the heaviest snowfalls on record. CH2M HILL was there to work with Central city officials and the fire, police and sheriff’s departments to minimize the impact of these devastating events. Through rain, snow, heavy winds and flooding, CH2M HILL provided the resources, manpower and management necessary to provide relief to the town.
City Beautification—Our team recently added litter removal services on sections of Hooper Road, a state highway on the approach to the City. Although outside the scope of our agreement, the appearance of this area reflected poorly on the City. This litter removal service was added at no additional cost to the City based on process optimizations elsewhere.
Systems Upgrades—CH2M HILL has recently performed an external performance evaluation of existing IT systems and processes, resulting in the implementation of a major upgrade to its GBA Public Works software. This upgrade will deliver improved accountability, high levels of transparency, and the tracking necessary to automate our overall compliance efforts.
By continually tracking, measuring and benchmarking our performance against third parties (internal CH2M HILL projects as well as national best practices in the self-perform environment), CH2M HILL and the City can continually compare their partnership results with those of other cities. It is our intention to continue this practice moving forward, allowing our partnership to set the standard of success well into the future. Highlights of our planned upgrades and efficiencies moving forward include:
Provision of an increased scope of service at a reduced cost because of efficiencies gained through reorganization and streamlining of GIS and IT service provision, staffing efficiencies through cross training and utilization across multiple departments and savings discovered through best practice implementation on the project.
Incremental staffing capabilities, with the addition of a certified Civil Engineer to meet the current and future needs of the City.
Community rollout of new communications standards, including automated email notifications for task completion and alerts during key events.
Increased self-performance of core tasks, resulting in lower overall costs, increased efficiency, and singlesource accountability.
Implementation and maintenance of mutually agreed upon Key Performance Indicators designed to ensure alignment and accountability throughout the term of the contract.
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Executive Summary CH2M HILL is committed to ensuring that our efforts not only meet the high standards detailed within the current RFQ/P, but exceed them. We understand that the needs of a diverse community require constant recalibration, and have redoubled our efforts to work with elected officials, concerned citizens, and outside agencies to exceed expectations every single day.
CH2M HILL Overview CH2M HILL is dedicated to continuing our successful partnership with the City and, when selected, will enter into good faith negotiations. You can be assured CH2M HILL will continue to be your best-value partner. As you read our submittal, you will discover we have built on the 3-year foundation of actual, hands-on project experience and will provide enhancements to continue to meet and exceed the City’s goals and objectives. CH2M HILL is a U.S.-based, employee-owned company committed to excellence and the fulfillment of all contractual obligations to the satisfaction of our clients. It is our intention to provide services as CH2M HILL, a sole-source provider. Our financial stability and strength ensure our ability to provide the City successful execution of this contract— CH2M HILL today is the same company that has worked in partnership with the City since 2008 to perform effective and efficient operation, maintenance and management (OM&M) services.
Quality Management Program Achieves Excellence Every Associate, Every Day, Every Project At CH2M HILL, quality is an endless quest for improvement that focuses on empowering employees, exceeding customer expectations, and enhancing our environment. This means conforming to standards and exceeding external (clients, regulatory agencies, and the public) and internal (fellow employees) customer expectations. Award‐Winning Quality Service CH2M HILL received the prestigious Malcolm Baldridge National Quality Award. This award recognizes U.S. companies with outstanding business systems and quality management approaches.
Our mission is to maintain operating stability and deliver efficient service in a manner that delivers unmatched value to the City. We use our quality Our Mission: E³ We are driven to exceed our customers’ management program, known as Everyday Excellence expectations. We empower our people to partner to train employees to apply principles and tools that with our customers in government and industry to drive the most efficient and cost effective operations provide customized management and operations approaches. We are dedicated to exceeding your solutions that enhance the environment and quality of life in the communities in which we serve expectations, and we provide specific business and financial systems that link directly to our contractual obligations for delivering O&M services to the City of Central.
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Conclusion The CH2M HILL team has an incomparable understanding of the performance requirements and expectations for Central’s City Services. The completion rate on service request calls currently stands at over 98 percent. Over 4,000 inspections were completed in 2010, while over 3,000 development and 2,000 trade permits have been issued over the life of the contract – most within a matter of days. A concerned citizen can attend a city council meeting and receive valuable information delivered by their elected officials and with CH2M HILL staff always available to provide any clarification if needed. Additionally a homeowner, business, or resident who files a service request today will receive an automated confirmation of receipt and will be immediately informed when the service job is closed. In just a few short years, we have worked together to implement a strategy for independence, and our combined efforts over the past 18 months have optimized that system to ensure that it truly meets the unique needs of the Central community. Today, we are excited to take this partnership to the next level, building a customized model that leverages the best that we have to offer in a package as unique as the people it serves. Our staff has worked alongside you from the start and remains a vested partner in your success, eager to continue improving the services and standards of performance that will secure the City’s distinguished reputation as a unique and desirable place to live, work, and do business. Let’s move forward together in building the Community That Cares—Central!
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Section B
Qualifications and Experience No other firm seeking to serve Central brings the directly applicable experience, partnership and performance to match CH2M HILL. Our award-winning partnership is resulting in professional services for your citizens. Our mission is to continue to bring skills and best practices in the form of project controls, innovative staffing and management approaches, and technology applications. We are confident the experience shown in this section will demonstrate that CH2M HILL has the financial and corporate strength as well as directly relevant qualifications that will allow us to continue to deliver Central’s important services.
CH2M HILL is a U.S.-Based, Employee-Owned Company Committed to Excellence, Financial Success, and Fulfillment of All Contractual Obligations to the Satisfaction of Our Clients Our financial stability and strength ensure our ability to provide successful execution of this contract. Our financial strength is substantial, as measured by:
Consistent revenue growth and backlog, based on exceptional client satisfaction—our revenue has grown steadily over our history, based on successful project delivery and sound risk management strategies.
Strong retained earnings growth and low debt-to-capital ratio that leads to financial stability—our retained earnings and net worth have grown consistently. We maintain very low long-term debt, essentially only that related to key employee notes, and have no bank borrowings.
Exceptional credit ratings and banking relationships ensure financial flexibility—CH2M HILL holds a 5A2 rating (excellent, and one of the highest offered) with Dun& Bradstreet. Our longstanding relationship with Wells Fargo for more than 57 years ensures a healthy credit line, if needed. In fact, we maintain investment banking account balances to manage the firm’s daily cash-flow needs.
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Qualifications and Experience
Effective risk-management that maximizes insurance/bonding capacity and reduces cost—an active riskmanagement approach is a key component of our project delivery program. Because of our ability to effectively manage risk, we have the broadest coverage terms in the industry provided by insurance companies maintaining A.M. Best’s financial ratings of A or A+XV at very favorable rates. CH2M HILL has a 57-year history of positive growth and financial stability. Our financial capacity is proven by an annual growth rate of nearly 20 percent over the past 5 years. CH2M HILL has maintained the trend of continued financial strength and build-up of retained earnings throughout our history, with an increase in retained earnings over the past 5 years of nearly 200 percent. CH2M HILL remains highly stable financially, and our corporate organizational structure and ownership has remained essentially unchanged since our founding in 1946. Organizationally, with 23,500 personnel firm wide, CH2M HILL has a stable employee base with an extremely low turnover rate. We have grown at a steady rate of nearly 15 percent per year. This growth has been achieved predominantly without the benefit of merger and acquisition. Our growth strategy has been through long-term relationships with clients, quality service, and innovation in areas meeting our clients’ evolving needs. This growth philosophy has proven effective in our industry and has propelled us to a position as one of the largest environmental engineering and construction firms in the world. More important, this business philosophy has given our clients a stable service provider— they knew us as CH2M HILL in the past and the present, and will continue to do so well into the future. We have the depth of financial resources and strength to ensure contract work performance cost-effectively with continuity and consistency. In an industry comparison of leading competitor firms, CH2M HILL had the lowest debt-to-capital ratio, the leading indicator of overall financial strength, of all companies surveyed. Our industry-low debt-to-capital ratio of 6 to 7 percent demonstrates our organizational strength, which gives us the flexibility to respond to changes in the industry and maintain a favored relationship with our surety and banking institution.
Operator’s Contact Information Operator’s Name: CH2M HILL Address: 9193 South Jamaica Street, Suite 400, Englewood, CO 80112 Tel: 678.731.6600 Fax: 678.512.3399
Corporate Contacts Steve Meininger, P.E. Regional Vice President-Project Delivery/Corporate Sponsor 12213 Summer Sky Path Clarksville, MD 21029 443.535.9408
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Grega St John Client Service Manager 8814 Whispering Oaks Trail New Port Richey, Fl 34654 727.858.8087
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Qualifications and Experience
CH2M HILL Has the Depth of Experience You Desire We are proud of our nearly 3-year partnership, delivering public works, community development, financial, administrative, and emergency services since Central’s incorporation. We are committed to providing innovative, highly efficient and responsive government services, in partnership with elected leaders and professional staff. Together, we will continue to meet the important needs of the residents and businesses in Central. Through the years, our partnership has evolved to meet changing citizen and city needs while remaining true to one ultimate goal—providing unmatched service to citizens in the most cost-efficient and effective way possible. Exhibit B-1, Relevant Experience Portfolio, at the end of this section shows local government entities and contact/reference information where we perform general government and operations and maintenance (O&M) services. When you partner with us, our experience and expertise work to meet your specific needs. Our goal is to do whatever it takes to exceed your expectations and deliver solutions that get results.
Additional Experience Transition CH2M HILL is in-place and will continue to be your best value partner. Continuity of service will be maintained by the continued service and leadership of Roy Hutchinson as Program Manager, Grega St. John as Client Service Manager, Brent Stauffer as Regional Business Manager, and Don Howell as Municipal Practices Lead. With this leadership team and the strength of the other 17 associates serving the City, you will mitigate the many risks of unknown, unproven, service providers. If the City chooses to transition any of the services to another contractor, CH2M HILL will support the City and the new service provider through the process. We will work together to develop transition plans that ensure the change is seamless and professional.
Safety CH2M HILL’s employees are our most valuable asset—the safety of our employees must be our most important concern in every project. We conduct our business in a manner that complies with and exceeds all federal and state standards, provides safe and healthful working conditions for all our employees, and prevents property damage. Our safety record reflects our unwavering commitment to these values. CH2M HILL believes we are each directly responsible for ensuring our own safety and the safety of others around us.
Target Zero As part of CH2M HILL’s broader Target Zero initiative, every CH2M HILL employee must take responsibility to achieve zero incidents:
Zero Injuries and Illnesses (World Class Safety)
Zero Adverse Impacts (Environmental Stewardship)
Zero Errors, Omissions, and Defects (Perfect First-time Quality)
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City of Central, Louisiana
B‐3
Qualifications and Experience To achieve our Target Zero goal, CH2M HILL implemented a Behavior Based Loss Prevention Plan, unique in our industry. This distinctive plan contains several features that assist us with keeping safety in the forefront in all we do. Our plan integrates job safety analysis (JSAs) with standard operating procedures (SOPs) for all routine tasks in our operations and maintenance tasks. For all non-routine tasks, a Job Hazard Analysis is conducted before the task is performed. Also, all of our managers, on-site as well as off-site perform at least weekly, documented safe behavior observations while tasks are being performed in the project. Training is conducted at the project including a weekly tailgate safety topic, monthly safety training and meetings, and classroom and online training and tests on the company web site. Our focus on project safety has resulted in a safety record, based on number of incidents and lost time, that is well below half of the national average.
Emergency Response Emergency preparedness is essential to every project’s success. Each CH2M HILL project is equipped with a site-specific Emergency Response Plan (ERP) that follows OSHA guidelines. Each ERP incorporates our experience in developing and implementing similar plans for our facilities around the world and integrates design and operational considerations specific to the City’s facilities. Our plan for Central includes preparing for and responding to a broad range of situations as well as training personnel in procedures and appropriate use of emergency equipment. Plans also include critical coordination with the City and other agencies. Our comprehensive ERP incorporates reliability and communication features to minimize the occurrence of emergencies where possible, and to enhance safety, CH2M HILL tracked Tropical Strom Fay in 2008 to protect our area projects. response, and communications when emergencies occur. Because it is impossible to predict the exact nature of every possible emergency, our program provides a comprehensive communication, training, and resource-based plan that manages the broadest range of possible emergencies. Exhibit B-2 provides an overview of CH2M HILL’s objectives as well as typical emergencies.
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Qualifications and Experience
Exhibit B-2
ERP Objectives
ERP Objectives
Essential Elements
Potential Emergencies
Safeguard Employees and the Public Eliminate Damage To/Loss of Facilities and Equipment Provide Prompt and Thorough Emergency Response Preparedness and Training Notification and Communication Safety and Emergency Resources Coordination and Response Accidents and Personnel Emergencies Chemical Spills and Leaks Equipment and Process Failure Power Failure Fire Flooding, Hurricanes, And Severe Weather Earthquakes Bomb Threats and Civil Unrest
Customer Service Plan Our depth of regional support and the corporate staff dedicated to our projects is all about customer service. Exceeding our customers’ expectations is one of CH2M HILL’s business imperatives. We have customer service protocols and procedures in effect that will be adapted to be fully relevant and responsive to the needs of our team and the City.
Our Overall Quality Approach Is Based On Our Belief That Project and Quality Management Are Inseparable An effective quality management program is essential for our successful partnership. It requires an ongoing commitment to meet your quality goals and expectations throughout our partnership. At CH2M HILL, we think of project and quality management as being inseparable, as we recognize the importance of:
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Community Investment Our approach to customer service includes a system for tracking all service‐related complaints and to provide a mechanism for follow‐up so that citizens understand the actions taken to resolve their concerns. CH2M HILL maintains an SOP for responding to customer calls that establishes the information to be collected in regard to any complaint, the conditions (weather and operations‐related) existing at the time of the complaint, actions taken to address the complaint and follow‐up actions to ensure that the City and the customer are fully aware of the actions taken. CH2M HILL will maintain an on‐call management team member 24 hours per day, 365 days per year to receive and address customer calls and other conditions warranting immediate attention. All managers and staff are trained to assess any emergency and initiate the appropriate response and notification.
City of Central, Louisiana
B‐5
Qualifications and Experience
Preventive rather than Corrective Action—CH2M HILL’s Project Management plan provides that everything we deliver is of the highest quality. Striving for quality, we will prevent mistakes before they impact critical milestones.
Fully Integrated Teams—our project approach integrates all delivery functions through all phases of the project ensuring adherence to quality objectives.
Fully Independent Quality Assurance/Quality Control (QA/QC) Oversight—as part of our established QA/QC processes, we require independent review of all deliverables by qualified review staff.
Proven Processes and Tools—we have defined standard processes and tools for each phase of project implementation. These processes and tools have embedded activities that relate specifically to quality and are defined in the project quality management plan for consistent use by all team members. Where possible, we use our standard processes and tools and adapt them to meet specific project requirements.
Everyday Excellence CH2M HILL’s quality program, known as Everyday Excellence, puts our E3 mission statement into action. The Everyday Excellence process focuses on empowering employees to develop new approaches to enhance how they perform their jobs each day. Empowerment is the idea that the answer to any task lies within each of us. We believe the people closest to the task, when given the proper tools and information, will know best how to organize to serve any customer. CH2M HILL employees are paid to think and to find innovative ways to solve problems, increase efficiency, and exceed customer expectations. Everyday Excellence is evident in the way we treat our clients, how we interact with regulatory agencies, what we do to protect the environment, and how we empower our employees in their jobs.
Root Cause Analysis and Process Optimization At CH2M HILL, we use long-proven change management strategies such as “six sigma” and “lean” with our own internally-developed Everyday Excellence approach. This continuous improvement system has consistently resulted in best-in-class performance and has simultaneously produced innumerable organizational and procedural efficiencies. Our technical expertise gained from operating nearly 200 facilities, coupled with our extensive facility design and construction capability enable detailed analysis of root causes for optimization and improvement opportunities as well as root causes of system failures.
Project Termination CH2M HILL OMI has not been terminated for cause or default during the last 5 years. Any early termination of work awarded would have been based upon mutual agreement to change the scope of the work originally awarded or for other convenience in which we do not track terminations for convenience, and would not have been due to a failure to perform under a contract.
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City of Central, Louisiana
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Qualifications and Experience
Exhibit B-1
Relevant Experience Portfolio
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City of Central, Louisiana
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Qualifications and Experience
B‐8
City of Central, Louisiana
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Qualifications and Experience
City of Central, Louisiana
B‐9
Qualifications and Experience
B‐10
City of Central, Louisiana
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Qualifications and Experience
City of Central, Louisiana
B‐11
Qualifications and Experience
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City of Central, Louisiana
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Section C
Key Team Member Qualifications Our key personnel were selected based on their relevant work experience, can-do attitudes, desire to do things right, and commitment to making the City successful. Each key team member has been a member of our public works team for at least 18 months and has made significant contributions to the City’ success. Our staff continuity will assure that the City’s business will continue without interruptions or time for transitional changes/learning curve. Our proposed key personnel and their qualifications are summarized on the following pages.
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Key Team Member Qualifications
Roy Hutchinson Program Manager Summary
Background
Mr. Hutchinson is currently responsible for day-to-day operations. As an active participant in the start-up and delivery of the Certifications: Louisiana State Department of Health and Hospitals State Wastewater Collection Certification; FEMA first full service Public/Private partnership in Incident Command Systems – Emergency Management the state of Louisiana, Roy has worked Institute; IS-00100 – Introduction to Incident Command tirelessly to produce the most efficient Systems; IS-00200 – ICS for Single Resources’ and Initial Action Incidents; IS-00700 – National Incident project both as the Public Works Director Management System; IS-00800 – National Response Plan; and the Director of Municipal Services. He IS-01900 – National Disaster Medical Systems Federal has proven through his efforts he will work Coordinating Center Operations to achieve the very best for Central and Professional Affiliations: Louisiana Capital Region of Louisiana Conference on Water Supply, Sewerage and CH2M HILL to produce an efficient project. Industrial Wastes; Member of the American Public Works By his combined efforts through fuel Association; Member of the Water Environment conservation and Federal/State Grant Federation participation, he has shown he will do whatever is necessary to ensure a productive, efficient, and profitable operation. Education: B.S., Public Administration, University of Maryland University College; Kaplan College
Project Experience Project Manager/Director of Municipal Services, CH2M HILL—Central, Louisiana Mr. Hutchinson was promoted to Project Manager in June 2010, responsible for day-to-day. With oversight in public works, community development, permitting and inspection, administration, code enforcement and finance his responsibilities include full operational control, customer satisfaction and the QA as it relates to all functions. He is responsible for QA/QC, safety compliance, and performance measures relating to project stability. His goal is continuous support for customer and client satisfaction and to continue, preserve, and enhance the quality of life for the citizens of Central. Field Services Manager/Director of Public Works, CH2M HILL—Central, Louisiana Mr. Hutchinson managed the day to day operations for the Department of Public Works. With more than 20 years experience in Municipal Government, he used his experience and expertise to help deliver a productive and efficient public works model to the citizens of Central. He was responsible for innovated ways to reduce storm water flooding and the maintenance O&M of the drainage systems, street rehabilitation and street sign replacement, and a mowing management system.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Ashley Porche Accounting Manager Summary
Background
Ms. Porche is responsible for reviewing and reconciling various general ledger accounts and submitting correction entries to ensure Certifications: Proficient in MS Word, Excel, Quick Books, Incode, CSA, Depreciation Solutions, and Lacerate. accuracy and compliance with CH2M HILL Professional Affiliations: Louisiana Government Finance policy and generally accepted accounting Officers Association; Central Chamber of Commerce practices for the City. She analyzes various Treasurer; Central City Hall Foundation; Recording balance sheet items and investigates Secretary, Republican Women of Central significant variances. She assists in preparation of consolidated financial statements and prepares various consolidated financial reports. Ms. Porche has more than 10 years of accounting experience and is an active member in numerous committees in Central. Education: B.S., Accounting, Southeastern Louisiana University, Hammond, Louisiana
Project Experience Accounting Professional, CH2M HILL—Central, Louisiana Ms. Porche maintains knowledge of General Accepted Accounting Principles, Governmental Accounting Standards Board, Louisiana Public Bid Law, and Louisiana Public Records Law. She is responsible for processing deposits, payment of invoices, journal entries, cash disbursements list, NSF checks, refunds, and weekly and monthly deposit reports. She prepares monthly closeouts and financial statements for the general fund and special revenue funds. She prepares the City’s record for the year-end audit, gathers information, and assists city auditors. Ms. Porche developed policies to be adopted by the City Council to assist the Finance Director with budget preparation. Staff Accountant, Chesteen & Associates CPA Firm—Baton Rouge, Louisiana As Staff Accountant, Ms. Porche prepared monthly, quarterly, and annual financial statements. She processed annual closeouts consisting of like kind exchanges, accrual and cash basis conversions, depreciation calculations, payroll reconciliation, and amortizations schedules on notes payable. She reviewed client’s monthly bookkeeping and made necessary adjustments. She prepared parish and state sales and use tax forms. Ms. Porche processed various payrolls including all tax forms related to payroll processing such as 940, 941, L-1, FUTA, SUTA, W-2s, and 1099s. Ms. Porche prepared both state and federal tax returns for individuals, corporations, and partnerships. She communicated with clients and partners to find the most efficient method of reviewing and gathering information needed to perform agreed upon services. Account Auditor, Austin Area OBGYN—Austin, Texas As Account Auditor, Ms. Porche increased collections and reduced delinquent accounts by auditing aging reports, appealing denied claims, and monitoring private pay accounts. She maintained education regarding Texas Insurance Laws and proper coding procedures regarding contract reimbursement and coding. She managed the database with current reimbursement rates.
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Key Team Member Qualifications
Provider Service Representative, Clinical Pathology Laboratories—Austin, Texas Ms. Porche developed and maintained professional relationships with more than 60 providers and addressed their concerns. She assisted marketing representatives with their top accounts to ensure quality service and in-serviced providers on policies and procedures regarding compliance. Ms. Porche educated staff on understanding and completing lab requisitions. She audited provider statements and made necessary adjustments concerning special pricing, credit and debits, and re-bills. She assisted patients with issues concerning refilling claims and/or explanation of their benefits and updated accounts accordingly. Account Receivable Clerk Ms. Porche was responsible for billing electronic and hard copy claims on professional components to insurance, Medicaid, Medicare, workman’s compensation, and patients. She assisted providers and patients with account information, made necessary adjustments, and follow-up procedures. She posted patient payments, completed negative balance reports, and researched and issued patient refunds. Database Specialist Ms. Porche established new clinic and physician accounts. She networked doctors to specific accounts and entered test coded and profile pricing. Client Correction Supervisor As Client Correction Supervisor, Ms. Porche supervised and trained client correction employees and analyzed and resolved client statements. She served as a liaison between marketing representatives and accounting department for all client billing issues.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
David Cody Public Works Director Summary
Background Education: FEMA Incident Command SystemsEmergency Management Institute, IS-100 Introduction to Incident Command Systems, IS300 Expanding Incidents, IS-400 Advanced Incident Command System, IS-700 National Incident Management System, Department of Homeland Security- Threat and Risk Assessment, National Storm water Center- Understanding storm water run-off Certifications: Louisiana State Department of Health and Hospitals State Operator Wastewater IV Certification, Louisiana State Department of Health and Hospitals- State Operator Wastewater Collection IV Certification Professional Affiliations: Louisiana Capital Region of Louisiana Conference on Water Supply, Sewerage and Industrial Wastes
Mr. Cody oversees the day-to-day maintenance O&M of the Department of Public Works for the City. He is responsible for QA of work performed by the in-house crews, sub-contractors, developer’s contractor, and consulting engineer. Mr. Cody has 26 years of experience working within a Municipal Department of Public Works Government. Mr. Cody presents a versatile background within the wastewater collection field that has provided him the insight and hands-on experience needed during the O&M, inspection, and
rehabilitation of a major municipal wastewater collection system.
Project Experience Public Works Director, CH2M HILL—Central, Louisiana Mr. Cody joined is responsible for customer satisfaction and QA of work performed in the Department of Public Works. He ensures the Department of Public Works meets quality, safety, and performance measures of the infrastructures of the City. He is responsible for innovated ways to reduce storm water flooding and the O&M of the drainage system, street rehabilitation and replacement, and vegetation control along street rightof-ways. Mr. Cody strives to continuously supports and improve the quality of life in Central. His goal is to preserve and enhance the City’s resources for future generations. The Department of Public Works is committed to Public Safety. Code Enforcement Officer, CH2M HILL—Central, Louisiana Mr. Cody investigated alleged code and ordinance violations ordained by the City. His work was performed through written violation notices and meeting with citizens on alleged violations. He met with the City Attorney and prepared documents to present cases to the Administrative Hearing Officer. Mr. Cody interprets policies, procedures, rules, and regulations. He responded to concerns from citizens that affect the quality of life within the City such as zoning, overgrowth lots or yards, inoperative vehicles, maintenance of structures, illegal signs, and public nuisances.
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Key Team Member Qualifications
Kathrynn W. Cowen, C.F.M. Planning & Zoning Director Summary
Background
Ms. Cowen oversees the Planning and Zoning Department, the Permitting Department, the Floodplain Management Certifications: ASFPM Certified Floodplain Manager Department, and the Municipal Addressing Professional Affiliations: American Planning Association, Department for the City. She has been State and Local Chapters; Association of State Floodplain employed in that capacity for the past 18 Managers; Louisiana Floodplain Management Association months. Ms. Cowen served more than 17 years as a Project Manager and Designer for a Civil Engineering firm in Baton Rouge. As a longtime Central resident with vast knowledge in the area of Planning and Zoning, she was appointed by Mayor Watts and the City Council to the first Planning Commission for the newly incorporated City. Education: B.A., Philosophy, Louisiana State University, Baton Rouge, Louisiana; L.S.U. Summer Drafting Institute Valedictorian; Central Private High School
Project Experience Planning & Zoning Director, CH2M HILL—Central, Louisiana Ms. Cowen oversees the Planning and Zoning Department, the Permitting Department, the Floodplain Management Department, and the Municipal Addressing Department for the City. She has been employed in that capacity for the past 18 months. Her longtime residency in Central, prior experience as a Planning Commissioner for the City, combine with her prior experience in the field of Civil Engineering provides her with the unique combination of knowledge in her field and dedication to our client. Project Manager & Designer, CSRS Architects and Engineers—Baton Rouge, Louisiana Ms. Cowen managed numerous Civil Engineering projects involving rezoning of property, preliminary design, final design, construction of improvements, and completion of a final plat. She is well versed in the use of such software as AutoCad, AutoTurn, Eagle Point, InRoads, and Civil 3D for use in surveying and engineering projects. Ms. Cowen has represented many clients in the process of submitting documents and garnering approval of Planning Commissions in several jurisdictions, including East Baton Rouge Parish, Ascension Parish, Livingston Parish, and the City of Central. Designer/Draftsman, various Civil Engineers—Baton Rouge, Louisiana Ms. Cowen worked for several years as a draftsman and then designer for a few Civil Engineering firms in and around Baton Rouge.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Scott Price, CBO Building Official Summary
Background Education: Graduate of Central High School; 2 years Louisiana State University Certifications: International Code Council Certifications— Certified Building Official, Residential Plan Reviewer, Residential Building Inspector, Residential Electrical Inspector, Residential Mechanical Inspector, Residential Plumbing Inspector, Commercial Plans Examiner, Commercial Building Inspector, Commercial Mechanical Inspector, Accessibility Inspector/Plans, Examiner Professional Affiliations: Registered with Louisiana State Uniform Construction Code Council; Served on the Subcommittee to review significant changes in the 2009 International Mechanical Code; Member of Building Officials Association of Louisiana; Member of the International Code Council, Member of Capitol Region Builders Association; Louisiana State Licensed Commercial Building Contractor, Residential Building Contractor (Inactive); Commissioned Police Officer with the Baton Rouge Police Department
Mr. Price is the Building Official for the City. He ensures compliance with the statewide building code as adopted by the Louisiana State Unified Construction Code Council. Mr. Price has 28 years of experience in the residential and commercial building industry. Mr. Price began in the construction industry in 1976 and became licensed with the State of Louisiana in 1998. He has experience in building projects from $10,000 remodels to $1.2 million home and light commercial.
Project Experience Building Official, CH2M HILL— Central, Louisiana
Mr. Price is responsible for directing, managing, supervising, and coordinating the programs and activities for building inspection and environmental compliance. He coordinates assigned activities with other City departments, divisions, and outside agencies; and provides highly responsible and complex administrative support.
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City of Central, Louisiana
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Key Team Member Qualifications
Joseph E. Sensebe, P.E. Engineering Support Summary
Background
Mr. Sensebe provides engineering support to the City in the areas of plan review, permit review, infrastructure consulting, Certifications: Registered Professional Engineer, LA, 1996 development review, storm water 27414 management, and general engineering support. He serves as representative in the development, design, engineering, and public letting of contracts to meet public works needs and the implementation of capital plans. Mr. Sensebe has more than 15 years of program and project management experience valued at more than $650 million. His experience includes the planning, design, permitting, and construction management for complex sewer, water, infrastructure, and environmental projects. Having been part of infrastructure projects in New Orleans and beyond for the past 22 years, Mr. Sensebe possesses in-depth knowledge of the areas infrastructure, including wastewater, water, streets, and other utilities that serve the community to successfully deliver various infrastructure and public projects. As a proactive and results driven manager, he has successfully led engineering and construction efforts to reach their goals with regard to quality, schedule, budget, and safety performance. Education: M.S., Civil Engineering, Texas A&M University, College Station, Texas; B.S., Civil Engineering, University of New Orleans, New Orleans, Louisiana
Project Experience Program Manager, CH2M HILL—Hurricane Protection and Temporary Pump Stations in Orleans and Repairs to Katrina Damaged Pump Stations in Orleans, Jefferson, St. Bernard and Plaquemines Parishes, USACE—New Orleans, Louisiana Mr. Sensebe successfully led a fast-track design and construction program that involved mobilizing resources from numerous offices, coordinating field work with several contractors, coordinating with multiple agencies (Levee Board, USACE, and HPO Contract Program Managers), and coordinating among four parishes and their respective departments. He coordinated design issues, collected S&WB data on drainage pump stations, worked with S&WB on details and standards, and worked with S&WB operations staff to best understand the needs of the stations and repairs to incorporate into the design documents. The program involved effectively managing 21 concurrent projects over a 14-month period. With 50 percent of the work needing to be in preliminary design within 2 weeks of contract start, the program management team had to strategize and plan the entire program, marshal resources, coordinate with numerous stakeholders, manage the set up of program controls, and prioritize work flow for design and repair of the pump stations. The program included assistance with mechanical startup support on the three interim closure structures at London Ave, 17th Street, and Orleans Canals valued at approximately $120 million. The team consisted of 30 professionals and support staff working on all 21 projects concurrently. Inspections Senior Project Manager, Ascension Parish WWTP Program, USACE—New Orleans District, Louisiana Mr. Sensebe was responsible for the engineering and design of new gravity collection system (800 service connections, 20,000 linear feet), seven new lift stations, one sewer pump station, 7,000-gpm effluent pump station, and 20,000 linear feet of force main. Project required the coordination with many other design elements, surveyors, process, electrical, mechanical, SCADA, controls, and civil disciplines.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Principal-in-Charge, New Orleans East Area Rehabilitation, Engineering, and Design, S&WB—New Orleans, Louisiana As Principal-in-Charge Mr. Sensebe was responsible for design management and engineering for the delivery of 15 rehabilitation construction packages valued at $50 million. The projects varied in scope and complexity, including line segment point repairs and replacements, manhole rehabilitation, slip lining and cure in-place lining, pip bursting, street repairs and rehabilitation, and coordination with various New Orleans Departments, other agencies such as Louisiana Department of Transportation (LADOTD) and Development, and other utilities co-located with S&WB infrastructure. The scope included review of the collection system elevation study data, recommendations for defect rehabilitation, development and implementation of a packaging and construction sequence approach for the rehabilitation contracts, development of preliminary and final design reports, development of utility and traffic plans, coordination of permits and easement applications, development of bid plans and specification, development of construction cost estimates, provide engineering services during construction, and provide overall technical support and oversight over the course of the project. Project Manager, Ninth Ward Collection System Evaluation Study, S&WB—New Orleans, Louisiana Mr. Sensebe directed a team of physical inspection consisted of manhole inspection and x, y, z survey of manholes, smoke testing, dye water test, flow monitoring, night flow isolation test, cleaning and televising this service area. The area consisted of 2,500 manholes and 720,000 linear feet of sewers ranging in size from 8 to 36 inches in diameter. At the conclusion of this project, he worked in conjunction with the Sewerage and Water Board to present the findings of this study to the U.S. EPA Region VI.
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Key Team Member Qualifications
Joseph O. Young, P.E. Engineering Support Summary
Background Education: B.S., Civil Engineering, University of Southwestern Louisiana; Associate Degree, Liberal Arts, Louisiana State University-Eunice; Hydrotech’s Hydrology and Drainage Seminar; Hydrotech’s Principles of Open Channel Hydraulics; ASCE Detention Basin Seminar; Various Engineering and Management Seminars Certifications: Registered Professional Engineer: Louisiana Registration Number 29439; LA DHH Certifications: Water Production Class IV; Water Treatment Class IV; Water Distribution Class III, Wastewater Collection Class I, and Wastewater Treatment Class I Professional Affiliations: American Society of Civil Engineers; Louisiana Engineering Society; Water Environment Federation; American Water Works Association
Mr. Young will be available on-site to meet the City’s engineering requirements as stated in the RFQ/P including:
Floodplain management Community rating system Construction plan review and approval Approval and inspection of all land development
He will become familiar with the City’s zoning and building codes and understands drainage, sewer, and traffic. Mr. Young will be available for site visits and Planning and
Zoning Commission and City Council meetings as necessary.
Project Experience Director of Project Delivery/Senior Project Manager, CH2M HILL—Baton Rouge, Louisiana Mr. Young is responsible for project delivery of a $1.3 billion dollar Sanitary Sewer Overflow Program (SSO) created to eliminate sanitary sewer overflows in East Baton Rouge Parish as part of an Environmental Protection Agency consent decree. The SSO Program includes 85 projects which are composed of three typesconveyance, rehabilitation, and treatment plant. These projects vary in construction cost from $2.5 million to $110,000 million. He is also responsible for managing ten engineers and support staff that manage over 40 design consultants and provide construction management services. Assisted design consultants in plan development and prepared specifications for the bid package/review and approve all construction documents. He advised East Baton Rouge Parish Department of Public Works and coordinated designs for impacts on future development. He coordinated pre-bid meetings and pre-construction conferences between contractor, East Baton Rouge Department of Public Works, and design consultant. Chief Civil Engineer, Lafayette Utilities System—Lafayette, Louisiana Mr. Young supervised six engineers and 15 engineering aide specialists. He was responsible for managing the budget for the Civil Engineering Division, planning, prioritizing, and budgeting for capital projects for water and wastewater operations, overseeing the review process for residential and commercial development, and directing all engineering assistance with the water distribution system, water treatment plants, wastewater collection system, and the wastewater treatment plants. His engineering responsibilities included planning for future development, developing plans and specifications for various water and wastewater projects, updating and revising LUS’ water and wastewater specifications, overseeing the design phase for the upgrade to the Ambassador Caffery Wastewater Plant ($23 million dollar project), managing various construction projects, and supervising an engineer in training.
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Key Team Member Qualifications
Key Team Member Qualifications
As Water Plant Operations Supervisor in the Water Operations Division Mr. Young was responsible for overseeing both of LUS’ water plants (46.5 million gallons per day [mgd]), several water well sites, a staff of 12 operators, and operational and personnel issues. Project Engineer, Professional Engineering and Surveying Company, Inc. (PENSCO)— Lafayette, Louisiana As the Project Engineer Mr. Young completed the following engineering projects:
Subsurface drainage collection system design; wastewater treatment plant design; wastewater collection and transmission system design including lift stations, water distribution and treatment; sewage and water use rate study; environmental regulations and permits, and on-site construction inspection of a drainage collection system. Knowledge in asphalt roadway overlay and reconstruction, and asphalt and concrete roadway layout and design, including horizontal and vertical geometry. Construction inspection included daily inspection of work being done from initiation to completion of a drainage project with daily quantities being monitored and final quantities computed. Wastewater treatment plant design experience included plant layout, process unit design, structural design of individual units, and retrofit of existing plant, plant upgrades and design of a floating aquatic treatment plant as well as earthwork necessary for levee construction; designed treatment systems and advanced wastewater treatment. Structural design included the concrete structures for final clarifier, a chlorine contact chamber, flow division boxes, and other concrete tanks. Retrofit design of mechanisms for primary clarifiers and automatic tertiary filters. Also familiar with the writing of contract specifications for a wastewater treatment plant. Collection and transmission systems design of wastewater comprised the layout of the gravity mains and force mains, sizing of all piping, and design of several lift stations including submersible pump, submersible grinder pump, and self-priming pump design. Designed water mains ranging in size from 2 inch to 12 inch. Water treatment experience encompassed corrosion prevention in a water distribution system and maintaining permit discharge requirements. Designed water and sewage usage rate structure for a municipality. Knowledgeable in writing permits for crossing state highway right-of-ways and railroad right-of-ways. Environmental regulation experience included 40CFR regulations and LA DEQ regulations. Work experience consisted primarily of NPDES discharge permit applications, monthly discharge monitoring reports and annual sludge monitoring reports for toxicity tests. Knowledgeable with LA DEQ Solid Waste regulations pertaining to landfilling and composting of municipal solid waste and wastewater sludge. Skilled in roadway design of horizontal and vertical alignment, drainage design, and construction contract specifications. Other projects included the design, quantity computations, and cost estimates for overlay and reconstruction of rural asphaltic concrete roads. Experienced in Legislative Capital Outlay Requests for funding of projects. Design and layout of subsurface drainage systems using LA DOTD Hydraulic computer programs. Gained experience in coastal restoration by designing a preliminary engineering report and final plans for a project that constructed earthen terraces to capture sediment to create additional marshland. The terraces were planted with marsh grass to prevent erosion. Designed a steel pile bulkhead project for the Port of Iberia, along with a concrete loading pad and loading ramp. System included a tie-back system and coastal timber protection system.
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City of Central, Louisiana
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Key Team Member Qualifications
Don Howell Municipal Practice Lead Summary
Background
Mr. Howell supports the City through his experience in public works, community development, city administration, revenue generation, and related services. He manages operations, finance, personnel, strategy, and planning. He works closely with clients and CH2M HILL senior management to support and refine services for complex municipal operations. Mr. Howell has nearly 30 years of experience in municipal government as a city manager, economic development director, and consultant. Education: University of Colorado, Rocky Mountain Program–Graduate Credit Course Work, Boulder, Colorado; Public Administration, University of South Alabama, Mobile, Alabama; Certified Municipal Clerk, University of Alabama, Tuscaloosa, Alabama
Mr. Howell has been instrumental in developing and administering many of CH2M HILL’s services to municipal clients. He also developed and managed programs for revenue enhancement, budget analysis and projection, and cost recovery for the City of Centennial, Colorado. As City Manager of Woodland Park, Colorado, he stressed meaningful citizen involvement, downtown improvements, master planning, and publicprivate partnerships, earning the city designation as 1996 Colorado Community of the Year in Economic Development. As City Administrator in Gulf Shores, Alabama, he planned and implemented a $28-million capital improvement program and procured state and federal grants in excess of $7 million. Mr. Howell served as the Director of Operations during the startup operations for the City of Sandy Springs, Georgia.
Project Experience Municipal Services Program Director—Englewood, Colorado Mr. Howell manages projects and client services for municipalities in which CH2M HILL is performing public works, community development, city administration, revenue generation, and related services. He manages operations, finance, personnel, strategy, and planning. He also works closely with clients and CH2M HILL senior management to support and refine services for complex municipal operations. Assistant City Manager—Johns Creek, Georgia Mr. Howell served as the Program Director of the City of Johns Creek, Georgia, a newly incorporated City in Fulton County, Georgia. He managed the organization, administration, and startup of the City of Johns Creek. He also consulted with management for new city contracts and for CH2M HILL’s Operations Center of Municipal Services Division. Consultant, Land Use Services, Revenue, and Budget Analysis—Centennial, Colorado Mr. Howell was responsible for the development, organization, and startup of the Land Use Services Department for the newly incorporated City. Using data developed from the type and volume of telephone calls, permit applications, walk-ins, plan submittals, requests for code enforcement, and zoning variances he determined the work load and staffing requirements, developed forms, procedures, and fee schedules designed to attain the cost recovery goal of the City. He worked with the City Administration and elected officials and provided managerial support and consultation in the areas of revenue enhancement, budget analysis and projections, and the formation of a cost recovery system for growth and development activity within the City’s current budgetary framework. Mr. Howell also had direct involvement with public and private sector entities including the Metro-Denver
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Key Team Member Qualifications
Key Team Member Qualifications
Homebuilders Association, local economic development agencies and chambers of commerce, neighborhood homeowners’ associations, community action groups, and city and county officials. Consultant—Douglas County, Colorado Working with Douglas County, Mr. Howell developed and administered a Countywide Citizen Survey. He prepared a Capital Improvement Progress Report (recipient of the American Public Works Association Award 2004 for Community Involvement and Communication). He studied costs, charges, and fee modeling. He provided cost analysis for development review/inspection services including fee schedule and revenue/cost recovery modeling for the planning, zoning, and engineering departments. He also studied developer fees and associated costs of engineering related development review and engineering inspections
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Key Team Member Qualifications
Grega St. John Client Service Manager Summary
Background Education: Wastewater Treatment Volumes I and II, Ken Kerri courses; Sanitary landfill and solids waste landfill courses, The College of Engineering, University of Wisconsin, Madison, Wisconsin; Various technical wastewater, maintenance, computer and safety courses and seminars; OMI University I and II; Management Training, Mastery, Evaluation Team Training, and Labor Relations Certifications: Georgia Class I Wastewater Operator; ABC Class III Wastewater Operator; Arkansas Class IV Wastewater Operator; Mississippi Class IV Wastewater Operator; Red Cross First Aid/CPR; 40-Hour Hazmat Course; Certified Environmental Instructor for the Arkansas Environmental Academy (a training division of Southern Arkansas University)
Ms. St. John’s primary role for the City is the oversight and support of contract delivery. She is responsible for assuring contract obligations are met. In addition she is responsible for client interaction to help develop a strong working relationship that will enhance the services CH2M HILL provides for the community.
Ms. St. John has an extensive background in the water and wastewater fields, including management, supervision and hands-on expertise in operations, maintenance, Professional Affiliations: Water Environment Federation collection and distribution systems American Water Works Association; American Business operations and safety. She has been involved Women’s Association-Past Vice President of the Hinesville chapter; American Cancer Society-Chairperson Love in project administration, process control Lights; Tri-County Protective Shelter-Board Member analysis, personnel training, and budgeting, Chamber of Commerce and cost control. Ms. St. John is experienced in Public Works operations including construction maintenance, streets, sanitation, meter reading, and billing. She has completed numerous wastewater and water-related courses and is certified as a Georgia Class I, an Arkansas and Mississippi Class IV, and an ABC Class III Wastewater Operator.
Project Experience Regional Director of Operations, CH2M HILL—Tampa, Florida Overseeing projects in Florida, Louisiana, Mississippi, Alabama, and Georgia, Ms. St. John manages financial performance, safety and compliance programs, and contractual and technical services for projects in her region. She reviews monthly contract service reports for each project, advising management as to project status, regulatory agency permit compliance, and technical/plant management status. She helps implement cost saving and quality programs and serves as a primary client liaison. Ms. St. John develops budgets and helps prepare operations strategies to achieve compliance with regulatory agency requirements and corporate objectives. She also reviews all monthly project manager reports and analyzes these materials to manage CH2M HILL client services more effectively and to assure compliance with all contract provisions. Regional Business Manager, CH2M HILL—Aurora, Illinois Ms. St. John provided business management support and leadership of project delivery activities in the Northeast Region. Her project responsibilities included Carol Stream and West Chicago, Illinois; Traverse City and Western Townships Utilities Authority, Michigan; West Liberty, Iowa; Biddeford, Maine; and Lambton Shores, Petrolia, St Clair, Oil Springs, and Plympton/Wyoming, Ontario, Canada. .
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Brent W. Stauffer Regional Business Manager Summary
Background Education: OMI University, Management Training; Buckley School of Public Speaking; Executive Seminar in Communication Skills; Wastewater Treatment–California State University Correspondence Course, Sacramento, California; 150 Classroom Hours, Okaloosa-Walton Community College, Niceville, Florida; Two University of Florida Annual Short Schools and TREEO Course, University of Florida, Gainesville, Florida; Four Annual Regional Schools, Michigan State University Course,East Lansing, Michigan; Water Treatment–California State University Correspondence Course, Sacramento, California; Two Regional Annual Schools, Focus on Change short course, Florida Rural Water Association Certifications: Florida Level A Wastewater Operator; Florida Level B Drinking Water Operator; Georgia Class 1 Wastewater Operator Professional Affiliations: Water Environment Federation; Florida Water and Pollution Control Operators Association; American Water Works Association; Florida Rural Water Association; Georgia Water and Pollution Control Operators Association
Mr. Stauffer currently supports the City with oversight in budget and contract delivery. Mr. Stauffer has worked in the water and wastewater industry for 22 years, 19 of which have been in supervisory positions. He is experienced in domestic, industrial, and contract operations. He was responsible for managing activated sludge and attached growth facilities ranging in size from 1.4 to 20 mgd, including heavy industrial loading from poultry processing facilities for 8 years. He also has experience with Federal Regulation for the land application of sewage sludge (40 CFR, Part 503).
Mr. Stauffer is knowledgeable in managing groundwater systems using chlorine, fluoride, lime, and sedimentation treatment. He has experience in facility design and modifications, equipment recommendations and sizing, and developing positive working relationships with regulatory officials during supervisory tenure. His skills extend into other environmental areas including air, stormwater, hazardous waste, and solid waste. Mr. Stauffer also developed cross training programs and operations and maintenance standard operating procedures for facilities. He has performed facility evaluations, startups, and cost model projections for proposed contracts. Mr. Stauffer has experience in union negotiations and working with union representatives, delivering utility and public works projects on budget, and providing savings to clients. He is knowledgeable in developing project operating plans, safety, and compliance training. He administers project contracts and amendments for clients, and provides solutions for clients including compliance, cost containment, staffing levels, and inter-local agreements. Mr. Stauffer has experience with municipal service agreements. He currently supports the City of Central project with oversight in budget and contract delivery.
Project Experience Regional Business Manager, Project Delivery, CH2M HILL—Crestview, Florida Mr. Stauffer has numerous responsibilities in Alabama, Mississippi, and Louisiana and manages CH2M HILL utility, public works and municipal projects in Florida and Louisiana. His duties involve project scheduling, budget control, quality assurance, and public and client relations. He performs marketing functions including facility evaluations and preparation of technical proposals. Mr. Stauffer is a Quality Coach, providing training in CH2M HILL’s Everyday Excellence process. He also is a member of the company’s Customer Satisfaction Focus Team, which provides feedback from our internal and external customers.
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Key Team Member Qualifications
Area Manager/Project Manager, CH2M HILL—Quincy, Florida Mr. Stauffer served as the Project Manager for the 1.5-mgd wastewater treatment plant and the 2.5-mgd surface water treatment. Processes at the facilities include activated sludge, aerobic digestion, and an industrial pretreatment program at the facility. The water plant required surface water treatment and odor control. His responsibilities included backflow management, collection systems, and personnel management. At Quincy, Mr. Stauffer managed 15 employees. Project Manager, CH2M HILL—Warner Robins, Georgia Mr. Stauffer was responsible for all aspects of a $2.5-million contract with the City of Warner Robins. Processes include a 9-mgd activated sludge/aerobic digestion wastewater facility and 3-mgd trickling filter/anaerobic digestion facility, including land application and landfill of biosolids. The project also includes a 25-mgd water system that treats water for more than 50,000 citizens. The water system consists of seven water plants requiring the addition of chlorine, fluoride, and lime, plus 17 deep wells. CH2M HILL maintained 16 lift stations throughout the City collection system. The project staff consisted of 26 full-time associates in seven different departments. All associates received career development assessments, quality training, team building and cross training to further strengthen the project team and individual growth. As Project Manager, Mr. Stauffer secured more than 200 additional acres for biosolids land application. He provided city officials with capital improvement recommendations for the water and wastewater systems. He also interfaced with state regulatory agencies to modify the National Pollutant Discharge Elimination System permit of the 3-mgd trickling filter facility to relocate the facility discharge into a larger receiving stream to reduce the in-stream waste concentration to comply with the effluent toxicity testing. Project Manager, CH2M HILL—Gwinnett County, Georgia Mr. Stauffer oversaw all facets of a $1.5-million contract for beneficial reuse of biosolids. He served as the primary point of contact with the Gwinnett County client and supervised a staff of four operators. He developed all hauling schedules for land application and landfill disposal and reduced biosolids tip fee costs at the project by $100,000 during the first contract year, including securing long-term contracts with landfill companies. He also communicated with state and federal regulatory agencies regarding proposed and permitted sites and coordinated all permitting requirements regarding proposed land sites for perspective land owners. Mr. Stauffer’s responsibilities also included confirming the Biosolids Program met U.S. Environmental Protection Agency 503 criteria for biosolids land application..
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Gary Wood Regional Business Group Manager Background
Summary
Education: OMI University; Management Training Leadership and Financial coursework, University of Michigan, Ann Arbor, Michigan; Ken Kerri Industrial and Domestic Wastewater coursework, California State University, Sacramento, California
For the City of Central, Mr. Wood provides strategic direction and works with the project team and other CH2M HILL leadership to ensure Central receives the most cost effective services.
Certifications: Georgia Class I Wastewater Operator; Mississippi Grade IV Wastewater Operator; New York Grade IIA Wastewater Operator; Massachusetts Grade 5 Wastewater Operator)
For the past 30 years, Mr. Wood has worked in all phases of water and wastewater Professional Affiliations: Mississippi Water Pollution operations at municipal and industrial Control Operators Association; New York State facilities, developing excellent project Wastewater Operators Association; Georgia Water and management and O&M skills. His areas of Pollution Control Association; Massachusetts Water and expertise include process control, laboratory Pollution Control Association; Water Environment Federation analysis, personnel training and evaluation, inventory control, construction coordination, and plant startups. Mr. Wood holds Mississippi, Georgia, Massachusetts, and New York Wastewater Operator certifications.
Project Experience Regional Business Group Manager, CH2M HILL—Clemmons, North Carolina As Regional Business Group Manager for the Eastern U.S. Mr. Wood is responsible for profit and loss of CH2M HILL’s O&MBG consisting of municipal, industrial and consulting services. His responsibilities include customer relationship management, leadership of regional and project managers, financial planning, personnel development, interface between CH2M HILL entities, new project development, and contract negotiation at more than 70 projects. Regional Director of Operations, CH2M HILL—Clemmons, North Carolina Mr. Wood managed service delivery for 18 municipal contract O&M clients within the states of Georgia and Florida. His responsibilities included customer relationship management, leadership of regional and project managers, financial planning, personnel development, interface between CH2M HILL entities, new project development, contract negotiation and management, project startup and closeout, and implementation of CH2M HILL processes and systems. Regional Vice President of Project Delivery, CH2M HILL—Santa Ana, California As Regional Vice President for Project Delivery, Mr. Wood managed CH2M HILL’s municipal projects and provided support for Project Managers in the Western Region of the U.S. Regional Vice President of International Project Delivery, CH2M HILL—Greenwood Village, Colorado Mr. Wood managed CH2M HILL’s international project delivery operations, with responsibility for all projects outside of North America. These services include establishment of subsidiary companies and joint ventures, new project evaluation and startups, and budget preparation and review. He also oversaw special projects.
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Key Team Member Qualifications Regional Business Manager for the Middle East and Asia, CH2M HILL—Greenwood Village, Colorado Mr. Wood was responsible for coordinating CH2M HILL projects and services in the Middle East and Asia. These services included project evaluations, startup of new processes and facilities, budget reviews, and oversight of special projects. In addition, Mr. Wood managed CH2M HILL procurement staff responsible for all large domestic purchases and all international and U.S. Agency for Institutional Development financed procurement. Senior Operations Manager, CH2M HILL—Kuwait City, Kuwait Mr. Wood was responsible for all O&M associated with the rebuilding of the Kuwait sanitary system after the Iraqi invasion. His responsibilities included 4,700 kilometers of gravity sewers, 74 pumping stations, 3 major wastewater treatment plants (12-46 mgd), effluent utilization systems, and 146 odor control stations. Mr. Wood managed a staff of more than 800 in the process of placing all systems back in an operational mode. Operations Specialist, CH2M HILL—Greenwood Village, Colorado As an Operations Specialist, Mr. Wood was responsible for CH2M HILL facility operations processes and management evaluations and was instrumental in suggesting operational improvements. He assisted with facility startups, training, and performance evaluations; developed O&M manuals; and implemented operator and operations management training programs. He also provided follow-up services, technical operations and troubleshooting assistance, and ongoing operator training for water and wastewater projects in CH2M HILL’s Western District. Mr. Wood also has extensive experience with the use of computers in the O&M of wastewater treatment plants, and was involved with the implementation of CH2M HILL’s computerized O&M software programs. Southeast Regional Manager, CH2M HILL—Hinesville, Georgia While serving as Southeast Regional Manager, Mr. Wood was responsible for water and wastewater facilities operated and maintained by CH2M HILL in Mississippi, Georgia, and Florida. His duties included project manager support in areas of staffing and administration; management program implementation such as process control, safety, and maintenance; laboratory services; solids disposal; and community relations. Mr. Wood also assisted with plant evaluations, facility startups, personnel training, emergency response procedure development, regulatory agency interface, and marketing activities. Project Manager, CH2M HILL—Hinesville, Georgia Mr. Wood was Project Manager of a newly constructed 7.2-mgd trickling filter/solids contact wastewater treatment facility that provides wastewater treatment for the City of Hinesville and Fort Stewart, a military base adjacent to Hinesville. He was responsible for the startup of this facility as well as for plant operations, implementing CH2M HILL’s maintenance management program, developing and directing Operator training and safety, performing hiring and staffing evaluations, providing appropriate operations and regulatory reports for the City and regulatory agencies, and assisting the City with public awareness as needed. Additionally, he was responsible for developing process control strategies and sludge management and disposal programs. Operations Director, CH2M HILL—Gulf Coast, Mississippi In 2 years as Operations Supervisor, and then as Operations Director, Mr. Wood directed the operations of seven wastewater facilities ranging in size from 0.2 to 4.2 mgd. His duties included preliminary, primary, and secondary treatment; chlorination, thickening, digestion, and dewatering facilities; sludge disposal; calculation of solids and hydraulic loadings; return sludge rates; waste sludge flows; mean cell residence time; solids inventory; food-to-microorganism ratios; mass balances; and chemical use and costs. He was also responsible for interviewing, evaluating, and scheduling personnel.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
P.R. Bob Munro Business Systems Support Background
Summary
Education: Coursework toward MBA Heriot-Watt University, Edinburgh, Scotland; Masters Certificate in organizational behavior–Heriot-Watt University, Edinburgh, Scotland; BS, science electrical technology; Certified Electrical Technologist Royal School of Military Engineering; Certified Facilitator Leadership Management International; Certified Facilitator 360 Solutions; Certified to Administer Profiles XT assessments; City and Guilds Full Technological Certificate, Course 235, Electrical Eng; Licensed Electrician, construction and maintenance, Province of Ontario
Mr. Munro will continue to provide support services for the business and finance systems. He is committed to helping the local team provide the best communications and reporting possible, using state of the art business practices and programs. He will direct the planning and improvement of administrative applications as they relate to business and finance.
Certifications: C.E.T. Ontario Association of Electrical Technicians and Technologists; Tech. CEI. Institute of Electrical and Electronic Technician Engineers; Certified Electrician in construction and maintenance, Ontario, Canada
Mr. Munro has 30 years of industrial maintenance experience with 11 years in Utilities. He has implemented maintenance Best Practices methodology including Professional Affiliations: Society of Maintenance and selection and configuration of CMMS, Reliability Professionals established key performance indicators (KPI), and trained end-users to achieve maximum effectiveness. He is a specialist in developing and delivering large-scale training and development programs with emphasis on asset reliability, organizational management, and leadership development.
Project Experience Senior Project Manager, CH2M HILL —Toronto, Ontario, Canada Mr. Munro leads a team of technical specialists who assess business practices, operations models, and design function to improve performance of facilities and their staffs. Mr. Munro and his team examine asset reliability and maintenance protocols using enterprise asset management systems and computerized maintenance-support tools. He works with water/wastewater technologists and operations staff to develop more efficient overall process performance. President, Personal Performance Development, CH2M HILL —Cobourg, Ontario Mr. Munro is the President and founding member of the Centre for Leadership Excellence, which provides leadership-management and organizational-development services to numerous clients in various industries throughout North America. Principal Consultant, Anne Arundel County Department of Public Works—Anne Arundel County, Maryland As the Principal Consultant for the County, Mr. Munro conducted a Central Maintenance Department Functionality Review to determine RJN Cassworks, CMMS, and Best Practices effectiveness. Principal Consultant, EMA Canada Inc.—Toronto, Ontario, Canada Mr. Munro created training and development programs for the following clients:
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Key Team Member Qualifications
Senior Project Manager for City of Toronto amalgamation project with responsibility for Asset Reliability and Management Best Practices. Project Leader in implementing Marcam, AvatisPro, and CWMS. Senior Project Manager for Orange County Utilities, Florida. Developed Maintenance Best Practices in all aspects of Water and Wastewater Operations and Maintenance using Maximo CWMS. Senior Project Manager for Pinellas County, Florida. Developed Maintenance Best Practices in all aspects of jail operations and maintenance using Maximo and CWMS. Principal Consultant for the Alexandria Sanitary Authority, Virginia. Provided Maintenance Management Best Practices consulting to Leadership Team. Conducted functionality audit of Datastream MP2 CMMS. Senior Project Manager for the Washington Suburban Sanitary Corporation, Maryland. Provided maintenance management consulting for operation and maintenance re-design in terms of selection of best practices and application selection to replace Compass CMMS. Senior Project Manager for City of Winnipeg, Manitoba Canada. Provided maintenance management consulting for selection of CWMS and best practices implementation. Principal Consultant for Anne Arundel County, Department of Utilities, Maryland. Developed Asset Reliability and Maintenance Best Practices for QCT Central Maintenance using RJN CassWorks CWMS. Principal Consultant for the City of Las Vegas, Nevada. Developed skills development program for wastewater department including asset reliability and maintenance management. Principal Consultant for Tampa DSS, Florida. Provided leadership and consultation to the training development team in establishing a multi-skilled worker-training program. Principal Consultant Tampa Bay Water, Florida. Performed resource loading assessment and job task analysis to determine skill gap and preparedness for growth. Principal Consultant for the Anne Arundel County, Maryland re-engineering project. Provided senior level project management and consulting services.
Senior Consultant, Chrysler Corporation—Detroit, Michigan Mr. Munro was responsible for implementation of a CMMS in conjunction with best practices methodology for Power Train and Component operations throughout North America. Plant Maintenance Coordinator, Chrysler Canada—Ajax, Ontario, Canada Mr. Munro was responsible for training managers, supervisors, and skilled trades in best practices related to materials and maintenance management including Total Productive Maintenance and Chrysler Operating Systems. Project Engineer , General Motors of Canada Limited—Oshawa, Ontario, Canada As the Project Engineer, Mr. Munro was responsible for a $60 million project that included design, implementation, commissioning, and maintenance of all door line assembly systems including conveyor delivery and take-off systems. Maintenance Supervisor , General Motors of Canada—Oshawa, Ontario, Canada Mr. Munro was responsible for a multi-facetted skilled trades team supporting operations in Body-In-White fully automated robotic welding car assembly plant.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Steve Meininger, P.E. Corporate Sponsor Summary
Background
Mr. Meininger will continue to serve as the CH2M HILL corporate sponsor for the City. Working closely with our regional leadership and the local project team, he ensures we are listening to the needs of the City. He oversees general project operations, customer Certifications: Georgia Professional Engineer; Virginia highest level licensed wastewater operator; OSHA 40-hr service, and financial performance for all Hazardous Waste Operations (HAZWOPER) projects in the Operations and Maintenance Professional Affiliations: Water Environment Federation; Business Group. Earlier in his career, American Society of Civil Engineers Mr. Meininger served as a Regional Business Manager with CH2M HILL responsible for delivering multiple industrial projects. He also served for several years as a Project Manager responsible for delivering wastewater treatment and remedial O&M services to one of CH2M HILL’s largest industrial customers. Education: M.S., Environmental Engineering, Clemson University, Clemson, South Carolina; B.S., Civil Engineering, Virginia Tech, Blacksburg, Virginia; Executive Leadership Program, University of Denver, Denver, Colorado; Foundations of Leadership, University of Michigan Business School, Ann Arbor, Michigan
Project Experience Global Director, Project Delivery and Operations—Columbia, Maryland A Professional Engineer who first joined CH2M HILL in 1993, Mr. Meininger today is responsible for customer satisfaction and for financial, technical, safety, compliance and administrative aspects of all CH2M HILL O&MBG client sites worldwide. Working with regional vice presidents and local managers, he ensures each project meets quality, safety and performance objectives. Regional Vice President, Project Delivery—Columbia, Maryland Mr. Meininger directed delivery of CH2M HILL’s global, industrial, federal, and northeast municipal and O&M consulting projects. He maintained and confirmed client satisfaction with CH2M HILL’s level of service. Mr. Meininger assisted his delivery leadership team and Project Managers with strategic planning, policy and procedure development and implementation, staffing, technical performance, and quality assurance. He also communicated the company’s vision, plans, policies, and critical success factors. Regional Business Manager—Columbia, Maryland Mr. Meininger was responsible for delivery of multiple projects throughout North America. In this role he was responsible for assisting Project Managers with staffing, technical performance, quality, and budgeting. Utility systems for which he was responsible included water, wastewater, groundwater treatment, steam and compressed air production, and cooling water management. Industries for which he was responsible included food processing, steel manufacturing, forest products, automotive, and transportation. Project Manager—Richmond, Virginia Mr. Meininger was the Project Manager of the DuPont-Spruance project in Richmond, Virginia. Mr. Meininger was responsible for managing the multi-million dollar contract to operate and maintain industrial wastewater, groundwater, and alum sludge dewatering treatment systems. Responsibilities included managing the operation of the 10-million gallon per day (mgd) biological treatment facility. This system includes pH adjustment, facultative lagoons, and a polishing pond. The groundwater treatment facility was designed to treat 160 gallons
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Key Team Member Qualifications
per minute of groundwater for removal of organic compounds utilizing an air stripper, after burner, scrubber, and granular activated carbon adsorption. The groundwater is supplied to the facility via 50 extraction wells with pneumatic pumps. Mr. Meininger was responsible for the operation of the facility, adjusting control strategies through the Honeywell distributed control system (DCS) computer, maintaining the extraction pumps, tracking the operating data, implementing preventative maintenance, and interfacing with the client on design and operation issues. The alum sludge dewatering facility utilizes a Trac-Vac system to remove settled sludge from the bottom of the water treatment system sedimentation basins. The solids are processed through two storage tanks and a thickener prior to concentration through a centrifuge. Mr. Meininger was also responsible for overseeing technical support to the onsite analytical laboratory that provides process control and permit required analyses. Mr. Meininger and the teams he was leading won CH2M HILL’s most prestigious Presidential Teamwork Award for Customer Focus for 2 consecutive years while serving DuPont. Only one Presidential Teamwork Award is given annually for the entire company in this category. It was unprecedented to have a project win 2 consecutive years. Project Manager/Lead Process Engineer—Atlanta, Georgia For Hoechst Celanese Corporation, Spartanburg, South Carolina, Mr. Meininger was Project Manager for the DCS programming used to control their wastewater treatment plant. In addition, he developed the functional descriptions that were the basis for the program. The wastewater treatment plant control was designed to minimize operations staff. The DCS programming consisted of state-of-the-art control logic required to respond to any storm or spill event that may enter the wastewater treatment plant. This included a complex equalization and diversion system to control the influent flow rate and chemical oxygen demand loading rate to the wastewater treatment plant. Logic was also provided to control the cooling system, urea feed system, clarification system, return activated sludge pumping system, waste activated sludge system, scum removal system, aeration system, filtration system, and various other pumping systems. Mr. Meininger was lead process engineer responsible for coordination and implementation of the process startup and performance testing for the HCC Spartanburg wastewater treatment plant. This included writing test procedures and coordinating the testing activities conducted by the owner, operators, maintenance personnel, primary contractor, and CH2M HILL field personnel. The tests were conducted to simulate various operating conditions and evaluate the system response. Equipment performance was then compared with the design criteria.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Cynthia Beyer Legal Liaison Summary
Background
Ms. Beyer provides commercial input and guidance related to the contractual terms and conditions provided by the City. She has a strong background in municipal government, construction, water rights, metropolitan districts, homeowners associations and Certifications: Georgia Professional Engineer; Virginia highest level licensed wastewater operator; OSHA 40-hr aviation law to support the City. She is Hazardous Waste Operations (HAZWOPER) experienced in representing municipal clients Professional Affiliations: Water Environment Federation; in a variety of legal matters, including risk American Society of Civil Engineers management and liability. Adept at conducting research and preparing legal documentation, Ms. Beyer has drafted contracts for employee benefits, construction, and in other transactional areas. She has authored high-value construction contracts and is skilled in negotiations, relationship development, and crisis management. Education: M.S., Environmental Engineering, Clemson University, Clemson, South Carolina; B.S., Civil Engineering, Virginia Tech, Blacksburg, Virginia; Executive Leadership Program, University of Denver, Denver, Colorado; Foundations of Leadership, University of Michigan Business School, Ann Arbor, Michigan
Project Experience Contracts Manager, CH2M HILL—Englewood, Colorado Ms. Beyer is responsible for supporting Municipal Services with prime contract management, new project evaluation, bids, negotiations, delivery, and overall business platform development. She drafts amendments and sample contracts for projects, and communicates with the Municipal Services leadership regarding contract items such as amendments and pricing. Ms. Beyer maintains a database of all contracts, amendments, and contract commitments with revenue, cost, margin, and identification of provisions for costs that are subject to rebates or contractual ceilings. She interfaces with bonding and insurance contacts, handles vendor assessments for insurance certificates, and obtains and tracks performance bonds. Associate Attorney, Hindman Sanchez P.C.—Arvada, Colorado Ms. Beyer performed legal services for a law firm that represented 2,000 homeowner’s associations. She drafted documents, assisted clients with compliance issues, and provided legal counsel regarding Board member fiduciary duties, risk management, and liability. Associate Attorney, White, Bear, & Ankele, P.C.—Highlands Ranch, Colorado Ms. Beyer provided full legal services to real estate developers involved in forming special districts. She drafted and finalized service plans for districts, attended municipal hearings, negotiated construction contracts, assisted clients with the construction bid process, and drafted rules, regulations, policies, and procedures for districts. Assistant County Attorney, Jefferson County Attorney’s Office—Golden, Colorado Ms. Beyer provided legal services for Jefferson County. She prepared ground and building leases, drafted construction contracts, advised clients on application of government regulations, delivered presentations to the Board of County Commissioners, and drafted contracts for employee benefits.
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Key Team Member Qualifications
Associate Attorney, Harvey W. Curtis & Associates—Denver, Colorado Ms. Beyer represented the cities of Broomfield and Black Hawk, private individuals, and developers in water rights issues and real estate transactions. She conducted research and drafted water rights applications, statements of opposition, title opinions, water rights transfers and leases, water rights evaluations, and other documents.
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City of Central, Louisiana
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Key Team Member Qualifications
Key Team Member Qualifications
Staci Martinbrough Wilbon, CPPB Procurement Support Summary
Background
Ms. Wilbon provides contract administration services, including but not limited to, budgeting, cost estimating, cost proposal Purchasing Software: Deltek; Platinum Information Management System; Lawson Business Systems; Oracle preparation, contract negotiation, Business Applications 11i; SAP; AS 400 and MARS/G subcontracting, purchasing, project Professional Affiliations: Certified Professional Public accounting, financial analysis and reporting, Buyer, National Institute of Governmental Purchasing contract compliance, project audits project property management and any other business related support required by the project. Education: B.S., Business Management, University of Phoenix, Atlanta, GA
Project Experience Senior Contracts Administrator, CH2M HILL—Atlanta, Georgia Ms. Wilbon is oversees the execution and administration of Municipal Services contracts including request for proposal, request for qualification, invitation to bid, and all related documentation. She negotiates, implements, and monitors or manages contractual and use agreements to assure effective delivery of goods and services. She responds to inquires and audits as necessary and approves or denies adjustments in subcontract agreements. Contracting Officer Senior, City of Atlanta – Department of Procurement—Atlanta, Georgia Under direction of the Deputy Chief Procurement Officer, Ms. Wilbon performed work in the coordination, preparation, and negotiation of complex professional services and construction contracts in support of the Department of Watershed Management and Public Works. She was responsible for procuring goods and services at competitive prices in accordance with the standard operating procedures and Atlanta Procurement Code. She managed and directed bids and competitive negotiation contract processes, which included the development of statement of work, selection criteria, target deadlines, and terms and conditions of contracts. She assisted in the coordination, development, evaluation, and administration of requests for proposals, invitation to bid and professional service contracts. Ms. Wilbon facilitated in the pre-bid and post-award process. She performed contract administration including liaison between vendors and City departments, compliance with contract terms and conditions, negotiation of contract amendments, extensions and change orders. She prepared and analyzed competitive sealed bids and requests for quotations, including construction bids. She prepared and maintained accurate records and documentation on all solicitations, responses, purchases, contracts, correspondence and related follow-up. Ms. Wilbon implemented training program for administrative personnel in support of all contracting officers and conducted various vendor relation workshops with prospective bidders, on how to do business and become a bidder with Atlanta. She assisted Contracting Officers with the processing and execution of competitive sealed bids, proposals, and annual service contracts. Ms. Wilbon managed and helped in the development of appropriate advertisements for services for all solicitation documents, including printed publications and website ads.
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Key Team Member Qualifications
Rene Cousineau Financial Oversight Summary
Background
Mr. Cousineau manages finance and accounting needs for the City. He directs and Technical Experience supports the activities of regional accounting Financial software: AS400; Oracle; Hyperion Enterprise; and finance staff, prepares monthly financial Cognos software/forecasting, budgeting reports, and creates and manages operating Professional Affiliations: Financial Executives Networking Group budgets. He supports financial audits, tracks revenue performance, and builds and applies cost models for new-business proposals. He reviews contracts and provides input on financial concerns. He creates and analyzes regional management and support staff overhead and directs budgets. Education: B.S., Business Administration/Accounting
Project Experience Regional Business Analysis, CH2M HILL—Atlanta, Georgia Mr. Cousineau works with senior management to develop and implement methods for operational
control, improve planning, and increase profits. He is responsible for leading the annual budget, 5 year plan, and profit planning process. He analyzes cost trend to determine the corrective action that can be taken to minimize project losses and the estimate to complete defendable. Mr. Cousineau manages and maximizes project margins. He performs in-depth analysis of operations and identifies operational metrics to support productivity initiatives. Mr. Cousineau enforces existing operational and financial policies and critique operation decisions. Finance Manager, Ceridian Corporation— Atlanta, Georgia As Finance Manager, Mr. Cousineau was responsible for financial affairs involving several districts and locations, revenue over $300M with an expense budget in excess of $125M. He worked as a business partner with senior management to develop and implement methods for operational control, improvement and planning. Mr. Cousineau ensured proper delegation of authority was adhered to, including signing authority. He performed in-depth analyst of operations including revenue and cost and identified operational metrics to support productivity initiatives. He participated in development of annual budgets and monthly forecast. Manager Financial Accounting, Klockner Namasco Corporation—Atlanta, Georgia Mr. Cousineau managed and prepared all financial reporting and analysis of financial statements for six divisions. He prepared internal and external reporting for senior executive management and analyzed and prepared month-end schedules for variance reports. He administered yearly audits and physical inventories.
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Key Team Member Qualifications
Key Team Member Qualifications
CH2M HILL has Procedures in Place for Seamless Personnel Replacements In the event of a vacancy or long-term absence of a key individual, CH2M HILL will first designate an individual to act in the position, and then use best efforts to promptly select a replacement. As part of the key employee replacement process, we will give the City the opportunity to interview candidates and give input concerning candidates. We will take into consideration the City’s comments as we make the employee selection decisions.
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Section D
Information Technology Resources and Equipment CH2M HILL Owned Technology All computer hardware (workstations, monitors, laptops, printers, network hardware) and all software listed in the scope of services are owned by the Respondent. No additional equipment will be acquired prior to performing services.
GBA Master Series—used for Public Works to produce work orders and track public work related jobs
Tyler Incode—used to track finances/accounting specifically deposits, writing checks, journal entries or accruals, inventory of fixed assets, general ledger, and processing and tracking of occupational licenses
Accela software package—used for tracking permitting and inspection as part of the Community Development package
Microsoft Windows XP Professional
Microsoft Office 2007 Professional or a more recent version—Word, Excel, PowerPoint, etc)
ESRI GIS software
Adobe Acrobat 8 Professional or a more recent version
Technology Resources and Equipment Which Will Be Solely Dedicated To City All computer workstations, monitors, laptops, printers, and network hardware and software will be solely dedicated to the City including all software mentioned in the Scope of Services.
Shared Technology Resources Database Servers and Application Servers may be shared with other customers. CH2M HILL will have access to additional servers, server disk drive space, workstations, monitors, laptops, printers, and network hardware. Additional servers will be located away from the offices for additional expanded services if required. Additional local computing resources—workstations, monitors, laptops, printers, network hardware—could be made available during heavy work periods and during emergency or catastrophic situations.
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Information Technology Resources and Equipment
Additional Information Technology Resources CH2M HILL has access to additional servers, server disk drive space, workstations, monitors, laptops, printers, and network hardware. Additional servers will be located away from the offices with additional expanded services if required. Additional local computing resources (workstations, monitors, laptops, printers, network hardware) could be made available during heavy work periods and during emergency or catastrophic situations.
Technology Resource Replacement In the event any entity was to reorganize or terminate, all hardware and software located at the City offices would still be available for use. All software would be loaded on servers and available to the City and/or City contractors and all data would be available to the City and/or City contractors.
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Section E
Additional Equipment and Resources Equipment Below is the equipment used by CH2M HILL to provide services to the City. This equipment is currently in place so there is no additional startup cost and this equipment is solely dedicated to the City.
Two commercial grade hydraulic boom tractors
One commercial grade 17’ tilt-trailer
One commercial grade hydraulic flail tractor
Two F-250 crew cab trucks or equivalent
One 54” Zero Turn Radius residential grade mower
Two F-150 pickup trucks or equivalent
One Ford Ranger
Two 1-ton crew-cab pickup trucks
One sewer/drain jetter
One 10 x 6 utility trailer
One chop saw
One 8 x 6 utility trailer
Four chainsaws
One 4-ton commercial spraying rig
Three weed eaters
One mini-excavator – 10,260 lbs
Two pole saws
One 580 case rubber tire backhoe
One 6 yd dump-truck
Additional tools and supplies needed to perform the work as set forth in the scope of services
At this time CH2M HILL does not share equipment with other clients and customers.
Additional Resources As we have throughout the duration of our partnership agreement with the City, we have a pre-set sub-agreement with local contractors granting us access to additional man-power and/or specialized equipment needed in the event we experience catastrophic situations and/or increased work periods. Although the specialized equipment will not be housed within the public works lay-down yard it is readily accessible. The accessibility of increased labor is guaranteed through established legal contractual agreements.
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Additional Equipment and Resources
In the event of termination or reorganization of sub-contract services, CH2M HILL has built-in policies and procedures allowing for the use of additional labor and equipment resources through a collaborated partnership with our O&MBG southeast division. These systems would be used until such time replacement labor and/or equipment is located and procured. In the event of a catastrophic situation we could have additional labor and equipment resources available to the project site within 24 hours.
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Section F
Insurance and Bond CH2M HILL has the Financial Resources to Meet the Terms of the Contract CH2M HILL enjoys an auspicious relationship with Marsh USA, Inc., our broker for more than 10 years, and continues its long-term association with its insurance underwriters. Due to our continued relations and underwriter loyalty, we have a very broad corporate insurance program at very favorable rates with the premier carriers in the insurance industry, all of which have A.M. Best financial ratings of A and A+, XV. CH2M HILL’s industry experience and working relationship with its insurance broker and carriers enables us to tailor project specific insurance programs to fit the needs of the customer and complexities of the project. We are confident CH2M HILL can meet all required insurance and bonding requirements. Our insurance program is coupled with a sophisticated risk-management agenda and excellent historical safety performance. CH2M HILL Engineers current memorandum of insurance is included in Appendix A.
Success at CH2M HILL Is a Two‐Way Street CH2M HILL is an employee‐owned firm offering a broad array of professional services to industrial, governmental and commercial customers. Headquartered in Denver, the company offers a broad range of integrated services, enabling it to take projects—big and small—from concept through planning, financing, design, construction, and operations and maintenance. CH2M HILL, founded in 1946 as a four‐person partnership, has grown to more than 10,000 employees located on six continents. CH2M HILL is especially proud of the fact that nearly all employees in our family of companies are now eligible to own CH2M HILL stock or equivalents.
Aon Risk Services West, Inc. provides CH2M HILL’s O&MBG with surety bonds. Federal Insurance Company writes bonds for CH2M HILL entities and is licensed and qualified to operate in the State of Illinois, is listed on the Treasury Department Circular 570, and maintains an A.M. Best Rating of A++ (Superior), Category XV ($2 billion or more) by A.M. Best. The O&MBG has a total current bonding capacity of $1 billion and a letter confirming our capability in providing the performance and payment bonds at 125 percent of the contract value is included in Appendix A. CH2M HILL offers as its co-sureties Zurich Insurance Company, Chubb Insurance Company and Liberty Mutual Insurance Company for design-build bonding. Zurich, Chubb, and Liberty are A. M. Best’s rated A+, A++ and A XV, and can provide bonds for a single project in excess of $250 million. CH2M HILL has aggregate bonding capacity in excess of $1 billion and an extremely positive relationship with Zurich, Chubb and Liberty Insurance Companies. CH2M HILL has never had a bond called, nor been denied a bond either based on monetary amount or due to corporate financial risk. It has very broad bonding capacity available to it in responding to a broad range of project opportunities.
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Section G
Program Management Approach CH2M HILL proposes to deliver the work as described in the RFQ/P. We have organized our Central team as a single-source provider of all services that will bring the most cost-effective, efficient solution. The program management approach described in this section of our Statement of Qualifications addresses all elements of the scope of services for Option 1 and Option 2. As noted in the cover letter, Cost Proposals for Option 1 and Option 2 are presented in two separate document packages. We remain committed to responding to the City’s needs. Through the highest levels of customer service we will uphold the esteemed reputation Central has worked to establish since 2008. Our organization chart (see Exhibit G-1) is structured to build upon our history of successfully providing general government services to the City. Our knowledgeable team, who will continue to deliver the scope of work, has been enhanced through the addition of an engineering position that will serve as the Community Development Director/Engineer. The addition of this position will also strengthen engineering needs in the Public Works area. Exhibit G-1
Organization Chart
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Program Management Approach
This section describes CH2M HILL’s approach to delivering the City’s important governmental services.
1. Administrative Services Software Licensing An important component of our project approach and operating plan is the integration of processes and applicable technology and systems into our everyday management and service delivery activities. Our advanced group of data processes, systems, and traditional hard-copy materials provide online access to important data for both technical and managerial reports and long-term tracking of city information. CH2M HILL will continue to implement proven business and operating approaches, processes, and leadingedge and innovative technologies. We will support these with an emphasis on quality management practices and continuous service improvement. CH2M HILL currently provides installed and working versions of the following software for City and Contractor onsite staff use in furnishing services:
GBA Master Series—used by Public Works to produce, track, record, and report work orders.
Tyler Incode—used to record all Financial and Accounting transactions, specifically deposits, issuing checks, posting and recording all journal entries or accruals, inventory of fixed assets, general ledger, and processing and issuance of Business Occupational Licenses.
Accela software package—used for processing Permits and permit fees, type and category of construction activity and tracking Inspections in the Community Development department.
Microsoft Windows XP Professional.
Microsoft Office 2007 Professional or a more recent version—Word, Excel, PowerPoint, ESRI GIS software.
Adobe Acrobat 8 Professional or a more recent version.
Capital Program Administration In coordination with City’s representatives, CH2M HILL will formulate recommendations to administer and implement the City’s approved CIP and related financing. Services will include:
Assisting in the development of a capital improvement program for and obtaining funds and/or financing for such projects.
Identifying, assisting, and facilitating grant applications and submissions as requested.
We understand this will require inter-agency coordination and cooperation with the Mayor, City Council, and the Assistant to the Mayor. We will make recommendations for capital improvement projects which may include road rehab, drainage improvements, and bridge assessments and repairs.
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Program Management Approach
Forecasting and Policy Implementation CH2M HILL has a proven team in place to perform the required analysis to accurately forecast City revenues and expenditures, and identify and communicate changing conditions and trends which could impact the City’s policy and governance decisions. A highly trained and attentive staff exists to provide inter-department and inter-agency coordination and to incorporate external information and factors that may impact City operations and financial planning. Our team has access to the most advanced tools to prepare and present timely and informative briefings to the Mayor and City Council and to assist in facilitating Council work sessions/retreats or public meetings. These tools can also be used to develop various scenarios to assist the governing body and City staff in deliberations of policy formulation and implementation, demonstrating the financial and political factors to be considered. Our communications plan will effectively use the data and the reports for presentation to citizens through the City’s website or civic club, citizen group or general public forums. We will continue to expeditiously carry out the direction of City staff to ensure Council directives and policies are implemented and that the affected and appropriate parties are informed. It is not enough just to inform those entities or individuals affected by a policy change; we also need to educate and assist them in achieving compliance. This approach will also ensure that feedback from the Community is received and can be included in the status reports measuring the progress and results of the particular Council or Mayor action.
Contract Administration The Central/CH2M HILL team understands the importance of third-party contract negotiations, administration, and recommendations for modification or improvement. As one of the largest contract management services firms in the U.S. and the world, we have the expertise and experience to achieve a “winwin-win” contract for the City. We will consistently put your interests first by listening and fully understanding the need for the third-party services and the expected outcome of the engagement. Under the direction of the City, our teams will analyze the fine print and all contract provisions to ensure you are fully aware of the benefits, impacts, and potential consequences of the specific service agreements and their terms. As we monitor the overall performance of the third party contractor, we will emphasize safety first while ensuring they meet or exceed the performance requirements.
Communications and Public Relations The CH2M HILL team is committed to a “focus on the customer” in everything we do. That commitment will continue with prompt, courteous, and responsive service, whether at the front counter, an email, or a telephone inquiry. We are the face of the City of Central and we take that responsibility very seriously. We will monitor the call volumes and the performance response times to meet and exceed your expectations and be able to provide you with metrics related to our performance. Our digital records management, storage, and retrieval systems have proven their capability and value to numerous Municipal Government partners and we will use the latest and best technology to provide City staff, citizens, other government agencies, and news media with the public information they request. The systems will fully comply with Louisiana law and provide the critical protection and document integrity required for local government official records.
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Program Management Approach
The internet is a valuable resource and portal for municipalities to disseminate information and manage services for their citizens. We plan to continue to work with you to enhance the City’s already excellent website and maintain the site as an important link to citizens. Our website design and maintenance experience can be viewed by visiting www.omi.ch2mhill.com, as that site has been developed internally. From our experience with more than 200 clients for more than 30 years, CH2M HILL recognizes the dynamic process of formal and informal communications requires flexibility, accuracy, and sensitivity to the client’s evolving needs. Effective communication with our clients, project associates, vendors, our partners, and customers is a part of our everyday life. Our reporting system includes executive and technical summaries to help interpret the data requested in the Monthly Operating Report and provides valuable information and explanations regarding trends and developments. CH2M HILL’s system also includes an O&M overview, a report of significant events, and a report on pertinent staffing changes. Public Works work orders completed and pending with a summary breakdown of type completed such as potholes, drainage, grass mowing, litter, weed control, road striping and traffic signs, Planning and Zoning request, permits issued both residential and commercial, and all Code Enforcement actions are included as part of our communications management system for Central. Communication is a two-way process and our experience in Central has given us insights to what matters to the Governing Body, the residents, and the business community. Our plan will include a process to ensure the Mayor and City Council are fully aware of and have approved all mass public communications on their behalf. We will be proactive in public outreach and information gathering and sharing, as Central is an active and vibrant community with numerous events and important milestones. Our team will be there and document the activities to share with the citizens and the media when the City desires. The City’s website will receive maximum exposure and enable citizen interaction for viewing or downloading community information, reports, publications, and other documents for their use. We will continue our practice of closely monitoring changes in Louisiana or Central laws and regulations regarding the procurement of goods and services. The City is in particular need of current and effective crisis communications and emergency preparedness plans due to its geographic location and actual prior experiences. The CH2M HILL team currently provides this and will continue to provide this service. We will continue to be actively involved in the development and implementation of those plans and the necessary ongoing communication with public and private emergency operations providers, the parish, the state, and federal emergency management agencies.
Comprehensive use GBA provides state-of-the-art communications and customer service The GBA work order system which CH2M HILL uses in Central is a powerful tool used in conjunction with our citizen responders to ensure prompt routing of citizen inquiries and requests, attention to detail, proactive follow up for resolution of the issue, and comprehensive reporting to you and the requesting citizen(s).
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Program Management Approach
As a part of internal performance evaluation of CH2M HILL’s services, CH2M HILL’s Bob Munro identified several areas of opportunity to improve business processes, establish mutually agreed upon Key Performance Indicators (KPIs), and optimize the Public Works gbaMS Work Management System (WMS). These improvements leverage reporting capabilities and improve the integrity, accuracy, and clarity of reports provided to the Mayor and Council. We took input from several key stakeholders and developed a plan to improve business practices and record and report performance in line with the City’s contractual requirements. In addition, these improvements fall in line with the Mayor and Council’s expectation that the City continuously improve and the citizens are best served through open communications and transparent operations. In order to move forward with the implementation of improvements we have taken the following actions with the last 45 days. This process improvement resulted in identifying and closing existing performance and practice gaps and produced the following results:
Revised work practices to improve efficiency using Lean Six Sigma methods.
Developed mutually agreed upon KPIs.
Reviewed and optimized the gbaMS WMS.
Developed new reporting protocols and formats that provide clear visual understanding of performance using Balanced Score Card methods.
Trained gbaMS end-users and field service staff in best-in-class work practices.
Established project oversight and governance mechanisms.
Departmental Support Our team of outstanding individuals is experienced and knowledgeable of the needs and activities of the operating departments. For the past 3 years we have worked side by side on a daily basis with staff, business community, and citizens to provide responsive and professional services. We know the attorneys, bankers, developers, construction companies, retailers, and professionals who help make Central a desirable place to live and work. Ms. Mindy Callender has served as the Assistant City Clerk for the past several years and is uniquely experienced and familiar with the processes and requirements of City Council and its Boards and Commissions meetings. Mindy knows the scheduling requirements for agenda materials and presentations, the timing and required content of documents and official minutes of the proceedings, and has an excellent established working relationship with the City Clerk and the City Attorney, both key players in the effective execution of the governing body’s business. Additionally, Mindy and the staff know the requirements for public hearings and appropriate notifications and advertising. The CH2M HILL team has extensive experience in working with professional firms to achieve codification of ordinances. This is an ongoing process to publish the first official City Code and to provide timely updates to include ordinances adopted subsequent to the original publication.
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Program Management Approach Exhibit G-2
Administration Position Chart
Administration Works Position
Full Time Equivalent
Program Manager
1
Accounting Manager
1
Executive / HR Resource Assistant
1
Assistant City Clerk
1
Total
4.0
Information Technology, Website Maintenance, and Technology Support The CH2M HILL team will provide, install, configure, and maintain a system as required to provide data security at CH2M HILL’s Central project office. The goal will be to:
Maximize performance
Mitigate against data loss and minimize potential down time
Assist with maintaining data security and preventing corruption with a nightly backup
Restore data from a central location
Maintain backups at offsite storage locations approved by the mayor
In providing data security, local servers and data storage are in place. A listing of information technology, website, and technical support CH2M HILL has and will continue to provide is presented below:
We install, configure, and maintain the necessary computer workstations and printers for themselves and subcontractor staff; maintain software and hardware uniformity and interchangeability among users; and provide, install, and maintain a telephone system within the Central Municipal Services Building with sufficient lines and features to handle incoming call volume. The team will continue to provide this service.
CH2M HILL provides and will continue to provide elected officials and City employees with Internet and email for internal and external communications and software to support common contact lists and scheduling.
CH2M HILL archives emails, contact lists, and calendars in compliance with applicable law and retention schedules approved by the Secretary of State and will continue to provide this service.
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We provide and maintain an application server to store and manage required data; provide and maintain access to data for officials, employees, and designated contractors as necessary; and facilitate the transfer of data to the City, Contractors, and other agencies and in response to public records requests, as necessary.
We will facilitate the transfer of data, records, or other materials from federal, state, and local agencies as necessary for City operations.
CH2M HILL will continue to maintain a database to manage occupational licenses, business licenses, and community development functions. We may present options for replacement of some existing software and will work with you in replacement and implementation of new software alternatives to perform these functions.
As noted earlier in this section, the CH2M HILL team will host the City’s website with content approved by the City. The City’s website will be updated on a regular basis, not less than weekly, and will contain City contact information, statistics, history, department and facility descriptions, non-interactive GIS data, schedules and agendas for Council meetings, schedules and agendas for Planning and Zoning Commission, schedules and agendas for Board of Adjustments and committee meetings, agenda packages, minutes and notices, City codes, pictures and video images, links to other websites approved by the City, and other materials directed the City and required by City ordinances and Louisiana law.
Online Payments The Central team is prepared to implement the state-of-the-art on-line application and payment systems to electronically accept applications and credit card payments for permits, licenses, and other services. We are experienced in the set up and operation of these systems and their related reporting functions, providing customer convenience for businesses and residents. Applications for permits can be filled electronically or in person. Citizens can pay for services online with an internet service provider—the connection will be housed on the City website.
Geographic Information System (GIS) With the exceptions of aerial and topographic mapping, CH2M HILL will maintain all GIS information, and maintain existing maps and the necessary documentation for the maintenance, retrieval, reproduction, and storage of the GIS information. GIS information shall include mapping of water and sewer lines and all infrastructures as well as drainage ditches. GIS information shall be updated not less than monthly. CH2M HILL plans to use a local resource to provide this service. Core elements of the GIS database will be in place to allow City staff to store and access GIS files and data. CH2M HILL will provide up-to-date GIS-related information and/or data in response to requests and needs of City personnel, and publish current GIS maps on the City website in PDF format for citizens’ use. We will develop and maintain the existing and future City address list and database for use by the City, CH2M HILL, the City of Baton Rouge, Parish of East Baton Rouge, and the State Department of Revenue to assist with obtaining local and shared revenues and other uses. The database will include house numbers.
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Program Management Approach
Grant Assistance CH2M HILL has Assisted Central in Identifying Available Funding from Federal, State, or Other Grants Our team has the proven ability to prepare winning grant applications that provide critical and necessary resources to assist the City with its development and CIP goals. We will continue to seek out and identify grants available to assist with programs and services, capital projects, environmental education programs, sustainability, economic and community development, and other resources to help the City meet its short-term and long-term goals. Building on our recent successes, we will continue to assist with the application process for potential grant resources. Some future options for grants may include:
FEMA 319
U.S. Department of Commerce Economic Development Agency (EDA) grants
Homeland Security
FHWA
U.S. EPA
HUD
Success! CH2M HILL’s Public Works Department Secures Vitally Important Flood Management Grant On July 14, 2010, the Louisiana Legislature awarded a special allocation of $714,942 for the City’s Beaver Bayou Drainage Improvements Project grant application. These special allocation grant funds will be used to design a flooding elimination project to reduce the potential for flooding in the Beaver Bayou Watershed area, which will eliminate the excessive number of FEMA repetitive floods claims in flood prone areas. The Public Works team’s aggressive pursuit of these funds is just one of the success stories of added‐value services CH2M HILL has secured for the City.
In addition to the opportunities listed, there may be other grants and potential special allocations, regional grants, and set-asides that may be available. We will prepare applications for grant funding when the City has approved a staff recommendation to apply for a grant.
We Provide Required Documentation and Reporting to Grantors Our team is carefully tracking the grant requirements for the Beaver Bayou Drainage Improvements Project and the Energy Efficiency and Conservation Block Grant. We will establish financial, programmatic, and reporting systems in anticipation of future program monitoring by the grantor agencies. This will assure that grant funds we have secured for the City are used for eligible expenses and program activities. We will also perform these services for future grants we secure for the City. .
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Program Management Approach
We Will Assist the City in Procurement of Materials or Supplies in Accordance With Grant Requirements Agencies that provide grant funds generally require that the grantee execute a formal grant agreement prior to the release of the grant funds. Our team is very familiar with the coordination and execution of the grant administration process including the procurement of equipment, services, and other items with grant funds. In addition, CH2M HILL has technical staff in other business groups that can assist, support, and guide our Central team in the administration of all aspects of grant agreements, including procurement requirements.
2. Financial Services CH2M HILL will retain all public records in a digital form as directed by the City, making these public records available for inspection. This includes responding to all public records requests in conformance to Louisiana Law. These digital records will be stored on servers that will be used to house the City’s data and email servers. Taking into consideration the increased demand for government record retention, we have found that by streamlining document management through the utilization of specific software systems, we can develop a more efficient product than ever seen before. As an additional cost option to the City, we can deliver a more advanced level of document management systems (Laserfiche) that could allow more of a unique management platform, document distribution, business processes, and integration and customization. By implementing this software package we can produce a more efficient quality of service that will ultimately exceed all expectations of our citizens. We will provide a central location for storage of the City’s public records and other records in accordance with Louisiana Law. Storage for physical paper documents will be in this centralized location. Digital records will be stored on servers used to house the City’s data and on email servers. Our Central team will support and assist the City’s Finance Director with financial functions, and coordinate and liaise with local, state, and federal agencies for the effective and efficient collection of taxes, assessments, fees, charges, and other impositions to facilitate the capture of all revenues due the City. Central’s service delivery team is committed to continuing the administration of established processes for the identification and collection of the City’s revenues including, but not limited to franchise fees, private enterprise fees and taxes, business licenses, alcoholic beverage licenses, and other fees and taxes belonging to the City.
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Program Management Approach
With the advice and assistance of the City staff and the City Attorney’s office, CH2M HILL will advise of noncompliance of payment of required fees, taxes, and assessments or charges due the City and will assist in the implement of enforcement actions designed to collect the amounts due. We will continue to:
Maintain a Fund Accounting System in accordance with the Governmental Accounting Standards Board (GASB) and Generally Accepted Accounting Practices (GAAP), and prepare and distribute monthly management reports and other financial reports as required by applicable law
Prepare monthly financial reports showing revenues and expenses to date in comparison with budget projections and submit reports to the City no later than 50 days following the last day of the month
Maintain and administer the accounts receivable to enable the timely receipt of revenue
Maintain and administer the purchase order and accounts payable systems to ensure payment of obligations in a timely manner when necessary funds are made available by the City
Maintain a Fund Accounting System in accordance with the GASB and GAAP, and prepare and distribute monthly management reports and other financial reports as required by applicable law
Prepare monthly financial reports showing revenues and expenses to date in comparison with budget projections and submit reports to the City no later than 50 days following the last day of the month
Maintain and administer the accounts receivable to enable the timely receipt of revenue
Our financial team will develop a system to account for and maintain the City’s inventory of fixed assets in accordance the GASB requirements. We will also provide the required accounting, recordkeeping, and reporting for the City’s grant funds. The Central/CH2M HILL financial team will continue to provide necessary materials to City’s Director of Finance and City departments for the preparation, amendment, and presentation of annual budgets; assist in the preparation of annual budgets; and attend all required meetings and hearings relative to the budgets. Materials shall be presented in oral, print, multimedia and/or web-based forms as directed by City. Budgets shall be prepared in accordance with the Louisiana Local Government Budget Act. We will assist the City’s Director of Finance and Auditor in the preparation of City’s Comprehensive Annual Financial Report in accordance with GAAP. We will provide the assistance necessary to effectively implement the City approved procurement policies and procedures in compliance with City ordinances, State laws, and rules and regulations. We will assist in the selection of vendors and other purchasing activities when directed by and in the best interest of the City. Additionally, we will prepare RFQ/P to potential vendors and suppliers of goods and services as directed by the City and obtain quotes and prepare bid documents in accordance with the laws of the State of Louisiana and the City.
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Program Management Approach
3. Public Works Understanding the City’s initial priorities was integral in building a Public Works Department to exceed the City’s expectations. Designing and implementing a department for a newly incorporated city required innovative thinking, quick implementation, and development of a structure that is flexible enough to grow with the City’s needs.
The City’s Partner Together, Central and CH2M HILL have worked to design a unique Public Works program that meets the City’s initial goals to provide field services, traffic services, stormwater services, and construction inspection. We understand that the City has unique needs and challenges based on economic and physical constraints. Our work programs are designed to meet City’s officials’ mission to provide a well-maintained infrastructure for your citizens.
Initial Focus We initially focused on building a team and getting crews on the ground in order to meet the City’s objectives. We found most of our team members through personal references and through a local job fair we conducted. We partnered with a local contractor to provide the labor and equipment needed for roadway and drainage work so that the crews and equipment were on the ground quickly. We brought in resources from other areas as needed to establish information technology and public works systems. Four of our Public Works team members have been on the job since day one and our team has an in-depth understanding of the City’s priorities.
Staffing The Public Works Department has responsibility for the areas of Field Services, Traffic Services, Stormwater Services, Construction Inspection, and for recommendations for the City’s Capital Improvement Program. The key position for the Department is the Public Works Director. This position is critical to the successful performance of the contract because the Public Works Director is responsible for delivering top quality services and projects to the residents of Central. Experience and leadership skills are crucial to the success of each team and of the department. The Public Works Director works closely with the Program Manager and leads the staff and focuses them in the direction established by the Mayor and City Council. The Director encourages the staff’s input in establishing creative ways to meet the goals. Our staff’s continuity and capability will ensure that the City’s business will continue without interruptions or upsets related to a transition. David Cody will continue to serve as our Public Works Director. David has been part of the City’s Public Works team since 2009. As a lifelong resident of the Central area, David is a known, well-respected member of the community. His work with East Baton Rouge Parrish has provided a strong background and historic perspective for policies and requirements for the City, and his contacts with East Baton Rouge
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G‐11
Program Management Approach
Parish, the Louisiana Department of Transportation & Development (LA DOTD), and the Department of Health and Hospitals have proven valuable in establishing communication and cooperation. David’s resume is included Section C. Resumes. David and the Public Works Department will be supported by a professional engineer, licensed in the State of Louisiana. The engineer will lead the Community Development staff and support all of the City’s Public Works Department needs. The engineer will provide technical leadership in the areas of stormwater, traffic, plan review, construction inspection, and other areas as needed and/or requested. David will be responsible for the day-to-day operations of the department, including staff oversight, subcontractors providing maintenance and other services, and contract management of City public work contracts. He will communicate with the Mayor and City Council; the Assistant to the Mayor; other departments; the public; and other local, regional, state, and federal agencies. He will provide the necessary leadership and experience to make sound day-to-day decisions. Additional positions are shown in Exhibit G-3, Public Works Position Chart. Exhibit G-3
Public Works Position Chart
Public Works Position
Full Time Equivalent
Public Works Director
1
Administrative Assistant/ Customer Service Representative
1
Field Services Superintendent
1
Construction Inspector/Utility Coordinator
1
Crew Utility Member(s)
2
Engineer
0.25
Total
6.25
The Administrative Assistant/Customer Service Representative will support the staff by entering and tracking work order requests and work orders, processing work requests, coordinating meetings and schedules, preparing correspondence, preparing and editing reports, and tracking Open Records requests for the department. The Field Services Superintendents will oversee the work crews providing roadway repairs, mowing, sign maintenance, signal maintenance, and oversight of any subcontractors or other contractors providing services. The Construction Inspector/Utility Coordinator will process and maintain all utility permit requests and coordinate with all agencies during the installation and/or repair of utilities within City limits. He will also be responsible for oversight inspections of new residential and/or commercial developments and coordinate all inspection activities with the local engineer. Work crews will provide all drainage, roadway maintenance, sign repair and/or replacement, and mowing services.
G‐12
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
Drainage Maintenance Drainage System Our Public Works team will continue to provide stormwater services for the City, including reviewing and evaluating drainage requests, making recommendations for capital projects, and managing stormwater maintenance activities. Our crews will maintain the drainage systems as needed along the rights of way of approximately 275 miles of city-owned roadways by cleaning or repairing catch basins and cleaning roadside ditches to facilitate proper drainage including erosion control measures, removing silting in pipes and in box culverts, repairing or replacing catch basins, and removing debris from bridge or box culverts.
Removing beaver dam at Hubbs Acres
Since the City’s incorporation, requests for drainage repair and maintenance have steadily increased. Due to the many years of neglect before incorporation and the increased number of recorded storm events over the past 3 years, the need for drainage maintenance is at an all time high. To address these needs, we have worked diligently to identify ways to help facilitate proper flow and reduce and/or eliminate potential flooding within the city. As a proactive measure, we have instituted a program to help curb the deficiencies that currently exist. We now use survey elevation crews to survey and verify the grades of all existing drainage ditches and work to schedule ditch maintenance throughout the area. While this is a small step to towards correcting the conditions that currently exist, we believe that this proactive approach to ditch maintenance provides a long-term solution that will meet community goals.
Off-Road Drainage As we understand the importance of proper street right-of-way drainage, we also understand that off-road drainage and the potential flooding, and elimination of that flooding, has become critical area of concern. Our crews will provide the personnel and equipment to maintain approximately 20 acres of off-road drainage rightof-ways and drainage servitudes, draining all recognized subdivisions within the City. Maintenance will include the removal of all debris, heavily wooded vegetation, beaver dams, and any other items that could restrict the facilitation of flow. We will also use survey elevation crews to ensure the flow channel is set at the proper grade. It is important to clarify that under Federal Law, when an area is declared a wetlands, mitigation and permitting activities are required with the U.S. Army Corps of Engineers. We understand the required permitting costs will be borne by the City. If the quantity of maintenance work exceeds the 20 acres specified, we will work with the City on the path to move forward to complete additional work as needed.
OM032111152310DEN
City of Central, Louisiana
G‐13
Program Management Approach
Grass Cutting and Weed Control Our Public Works staff will continue to mow and maintain the approved roadside ditches and medians which will include, but is not limited to, the public right-of-ways adjacent to City owned roadways and on Louisiana state-owned entry ways (Hooper Road median, Greenwell Springs Road medians, and Magnolia Beach Road intersection). Also, we will continue to maintain and trim all areas around sign posts, curbs, and barriers. We will inspect the visibility at intersection sight triangles monthly and perform any maintenance needed to provide adequate visibility of signs and traffic signals and to provide clear sight distance for motorists to turn or move ahead safely. The Public Works Department will continue to coordinate with East Baton Rouge Parish and with the LA DOTD with regard to mowing maintenance items on Parish and State roadways. In October 2009, we developed and implemented a “Mowing Management Program” and entered into a partnership agreement with Louisiana Vegetation, LLC. As part of our collaborative research, we learned that using growth retardant agents allowed us the opportunity to reduce the total number of mowing cycles which produced a cost savings back to the City. Areas specified in Exhibit G-4, Roadways for Litter Control, Grass Cutting, and Weed Control, will be mowed at least monthly from April 1st through November 30th and as needed from December 1st through March 31st. Exhibit G-4
Roadways for Litter Control, Grass Cutting and Weed Control
Roadways for Litter Control, Grass Cutting, and Weed Control
Arleen Ave. (Blackwater to Dead‐end)
Forest View Dr. (Devall Rd. to Beaver Bend Rd.)
Planchet Rd. (Frenchtown Rd. to Dead‐end)
Banway Dr. (Wax Rd. to Sandal Ave.)
Frenchtown Rd. (Greenwell Springs Rd. to Dead‐end)
Roundsaville Rd. (Hooper Rd. to Dead‐end)
Beaver Bend Rd. (Forest View Dr. to Private Rd.)
Gurney Rd. (Sullivan Rd. to Blackwater Rd.)
S. Blackwater Rd. (Hooper Rd. to Dead‐end)
Bridlewood Dr. (500' north of Hooper Rd.)
Hubbs Rd. (Denham Rd. to Hwy 64)
Sparkle Dr. (Sullivan Rd. to Sully Dr.)
Brown Rd. (Carey Rd. to Dyer Rd.)
Loudon Ln. (Blackwater Rd. to Dead‐end)
Summers Rd. (Sullivan Rd. to Dead‐end)
Carey Rd. (Comite Dr. to Blackwater Rd.)
Lovett Rd. (Hooper Rd. to Sullivan Rd.)
Thibodeaux Rd. (Planchet Rd. to Morgan Rd.)
Central Woods Ave. (Sullivan Rd. to Willowbrook Dr.)
McCullough Rd. (Joor Rd. to Blackwater Rd.)
Wax Rd. (Magnolia Bridge Rd. to Greenwell Springs Rd.)
Core Ln. (Joor Rd. to Blackwater Rd.)
Morgan Rd. (Greenwell Springs Rd. to Dead‐end)
Willowbrook Dr. (Wax Rd. to Dead‐end)
Denham Rd. (Joor Rd. to Greenwell Springs Rd.)
N. Joor Rd. (1000 ft. north of Hwy 64)
Woodrow Kerr Ln. (McCullough to Dead‐end)
Devall Rd. (Hooper Rd. to Denham Rd.)
Old Settlement Rd. (McCullough to Dead‐end)
Greenwell Springs Rd. (Comite River to Sullivan Rd.)
Droze Rd. (Greenwell Springs Rd. to Alford Dr.)
Peairs Rd. (1000 ft north of Hwy 64)
Hooper Rd. (Comite River to 9783 Hooper Rd.)
G‐14
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
We have successfully used herbicide/growth retardant treatments for grass and weed control, and we will continue use herbicide/retardant treatments on right-of-ways, drainage ditches, and around poles and other fixtures as approved by the City.
Litter Control Our team will inspect roads and right-of-ways for litter and debris and assign crews to remove the litter and debris at least monthly. Crews will also remove nonconforming signs from City right-of-ways and on sign posts and telephone poles in accordance with the City’s ordinances. We will report excessive litter or debris on Parish or State highways to appropriate officials as needed.
Central’s Enhanced Litter Removal Services Our team recently added litter removal services on sections of Hooper Road, a state highway, on the approach to the City. We were aware that the appearance of this area reflected poorly on the City, and we added litter removal service at no additional cost to the City.
Bridge Assessment and Minor Repairs Our team will make visual assessments of bridges in the City for items that need immediate repair. We will work with Parish and State Officials and report any recommended replacements. In order to recommend scheduled replacements or repairs, we are prepared to develop a scope of services on the City’s behalf so that the City can enter directly into a contract for bridge inspection services. Locations of the City’s bridges include:
Arleen Ave.
Pecos Rd.
McCullough Rd. – three
Dyer Rd.
Carey Rd.
Pinewood Dr.
Morgan Meadow Dr.
Frenchtown Rd. – two
Country Estates Ave.
Summers Rd.
Morgan Rd.
Gurney Rd. – two
Denham Rd. – four
Wax Rd.
Peairs Rd.
Hubbs Rd. – two
Devall Rd.
Lovett Rd. – two
Our team will make minor guardrail repairs that do not require special tools or parts to perform proper replacement. For more severe repairs or replacements, we will provide a written scope of work and obtain pricing or bids in accordance with the City’s procurement policies for a specialty contractor to perform this work directly for the City.
OM032111152310DEN
City of Central, Louisiana
G‐15
Program Management Approach
Roadway Repairs We will manage roadway maintenance including concrete, curb, and gutter repairs; pothole repairs; roadway repairs; and non-roadway patching within the City’s right-of-ways. We will use proper patching techniques and square off the areas as much as possible to properly install and compact asphalt mix. When hot mix asphalt is not readily available due to weather conditions, we will install a cold mix product for immediate pothole repair. Our team currently inspects roadways at least monthly while performing other work tasks, and we will continue to inspect roadways at least monthly. We will continue to make roadway repairs as needed and we will report repairs needed on State and Parish highways to the appropriate officials. We will provide an on-call staff member to respond to emergency requests 24 hours/day, 7 days/week, and to coordinate with the Sheriff’s Department, Fire Department, and other persons or agencies as needed.
Roadway Striping Our staff will follow recommended procedures for traffic control device systems. We will manage the installation of approximately 100,000 linear feet of 90 ml thermoplastic pavement markings per year to be installed by a subcontractor. As part of the pavement marking process, existing raised pavement markers will be replaced using approved material as outlined within the Manual on Uniform Traffic Control Devices (MUTCD). Additional pavement markings including crosswalk markings, arrows, and word markings may be installed as agreed upon and specified in the contract with the City.
Sign Maintenance Our team will inspect all street and traffic control signs at least once every two weeks and will repair or replace damaged signs as needed per the MUTCD. We will continue to work with Parish and State agencies to ensure that proper notification is made in the event that damaged and/or missing signs are located outside of City jurisdiction. Our Public Works staff will continue to maintain all street and traffic control signs adjacent to city roadways or within city right-of-ways. All signs will be repaired when and if feasible but will be replaced if any sign cannot be repaired. All street and traffic control signs will meet the most recently adopted edition of the MUTCD. We will also continue to provide an on-call staff member to respond to emergency requests 24 hours/day, 7 days/week, and to coordinate with the Sheriff’s Department, Fire Department, and other persons or agencies as needed. If the City desires, our team is also prepared to add an additional service to create a traffic sign inventory, measure the retroreflectivity of traffic control signs, and to create an asset management plan to meet Federal Highway Administration mandates. The second revision of the 2003 MUTCD introduces new language establishing minimum retroreflectivity levels that must be maintained for traffic signs. Agencies have until January 2012 to establish and implement a sign maintenance program. The compliance date for regulatory, warning, and ground-mounted guide signs is January 2015, and the compliance date for overhead guide signs and street name signs is January 2018.
G‐16
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
Special Services As we have since the beginning of our partnership, CH2M HILL will continue to work with the city in providing the personnel and equipment for the installation of banners and/or decorations as part of community-based events.
Cooking In Central Associates joined the City’s second annual “Cookin’ for Our Kids” event, held in early April, which raises funds for technology and educational improvements for City schools. Volunteers donate and cook all drinks and food, including barbecue, jambalaya, ham, fried turkey, and crawfish. CH2M HILL was a goldlevel sponsor for the event. Associates also sponsored a cooking team called Central Krewe. The team took home first place in the “couchon-de-lait” (a Cajun pig roast) category, and third place in the brisket category. Overall about 130 cooking teams participated in four cooking categories, and the event exceeded its goal and raised more than $250,000 for the schools.
Central Crew Steps Up To Clean City after Storm In May of 2008, the Central project team met with police and fire officials to establish emergency planning procedures. The meeting was held just in time. A severe thunderstorm struck Central the very next day causing widespread wind damage, hail, and extensive flooding. The city received reports, though unconfirmed, of a tornado as well. Following the emergency planning processes, Roy Hutchinson and other team members rallied at the fire station with public officials. A safety moment was held, and then the crews began clearing debris from main roads, completing much of the job within hours. Even after working into the night, the team came in early the next day to see what else they could do to help.
Traffic Signals We will continue to maintain and repair the four existing flashing warning beacons and 13 existing school zone signals within the City, and we will maintain and repair any additional flashing warning beacons and school zone signals that may be added during the contract period. The City will be responsible for the replacement of the devices if new devices are required due to severe damage or destruction. We will provide an on-call staff member to respond to emergency requests 24 hours/day, 7 days/week, and to coordinate with the Sheriff’s Department, Fire Department, and other persons or agencies as needed.
OM032111152310DEN
City of Central, Louisiana
G‐17
Program Management Approach
Utility Coordination Our team will continue to review, process, and maintain permits for curb cuts and utility work on right-of-ways designated by the City and to coordinate with utility companies regarding maintenance work and repairs within the City. We will provide information regarding construction projects and answer and address citizen concerns and requests regarding the projects.
Emergency Services Our team will continue to provide emergency and catastrophic response services as requested by the Mayor or his representative in accordance with the contract agreement. We will work with City officials, Fire, Police, and the Sheriff to ensure the Emergency Preparedness Plan is updated and readily available when needed. Our team will be responsible for debris removal for natural and man-made debris generating events in accordance with the contract terms. We will respond promptly to remove debris from the streets and highways to ensure the best and safest areas for our citizens.
Storm Damage from Hurricane Gustav
Crew Rates for Emergency Services are shown Exhibit G-5. Exhibit G-5
Crew Rates for Emergency Services for 4-Man Crew (Labor Only)
Hourly Rate for Normal Working Hours (labor only)
Hourly Rate for After Hours (labor only for hours outside normal working hours)
$ 187.17
$ 304.00
Our Emergency Response Resources Were Challenged Early In Our Partnership When The City Was Hit With Unexpected Storm Events Throughout The 2008 Campaign. In May 2008, the city was brutally hit with reported straight line winds that reached gusts of up to 100 mph. Although first thought to be a small tornado, the powerful winds caused significant damage to power lines, trees, and properties throughout the southern portion of the City. In September 2008, the City was directly impacted by a Category 4 hurricane (Gustav) which was reportedly the most damaging storm to affect the East Baton Rouge Parish in its long history. The direct hit caused significant damage and left an estimated 36,450 tons of debris in its wake. Approximately four weeks after Hurricane Gustav, the area once again was faced with the reality of another Category 4 hurricane (Ike) which impacted the area with more significant rainfall than the previous two storms. Localized flooding was rampant and the City faced flash flooding and backflow flooding.
G‐18
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
In December 2008, the city was faced once again with the daunting task of gearing up for what would become one of the heaviest snow storms to hit the area in recorded history. Approximately 8” of snow fell in a 24-hour period, causing downed power lines and tree limbs throughout the city. Although 2008 started smoothly when the City and CH2M HILL entered into the first public/private partnership of its kind in South Louisiana, it quickly turned to devastation as the City faced crippling hits by Mother Nature. Although many citizens suffered hardship due to the many storms that struck the area, it was encouraging to witness the emergence of the true teamwork between CH2M HILL and the City. The City was the only area to have all streets and highways opened within 24 hrs of the devastating storms. Working with City Officials, Fire, Police, and the Sheriff proved to be the positive silver lining in the worst weather year in City history.
Community Development The City’s vitality is founded upon its values to preserve its high quality of life, maintain its superior education system, thoughtfully manage future growth, and improve environmental conditions. Our team is committed to providing the necessary and essential community development services that support the values and goals of the elected officials, City administration, and residents. Our team understands the City’s required scope of work, performance objectives and expectations for the delivery of cost-effective and efficient community development services. Since 2008, the City’s partnership with CH2M HILL has resulted in consistent delivery of building permitting and inspection services, land planning review and permitting, zoning, sign permitting, and other community development services to residents, developers, builders, and all who rely on these services.
Staffing The Community Development Department has responsibility for the services that directly preserve and enhance the City’s quality of life. The services provided by our Community Development staff are described below. Quality staffing is vital to the successful delivery of services for any local government. We will use our proven Community Development team to assure that the right technical, professional, and administrative skills are in place to assure superior community development services remain in place to serve the department’s customers. Key positions for the Community Development Department include the Community Development Director/Engineer, Building Official, Planner, and Floodplain Manager. The Community Development Director/Engineer is responsible for providing departmental leadership and professional engineering oversight to assure departmental processes comply with local ordinance, state, and federal requirements. CH2M HILL has identified two licensed Louisiana Professional Engineers (P.E.) who will immediately provide engineering support to the City’s Community Development Department. Engineering support will be provided from our office in Baton Rouge. When the position is filled permanently by CH2M HILL, the Community Development Director/Engineer will report to the Program Manager, but will also communicate directly with the elected officials; residents; and local, Parish, regional, state, and federal agencies in the performance of his/her duties. The Community Development Director/Engineer will also support transportation, capital projects, and other engineering needs required by the Public Works Department as requested in the RFQ/P.
OM032111152310DEN
City of Central, Louisiana
G‐19
Program Management Approach
The City’s Building Official is a member of the Community Development team and is responsible for ensuring all construction and related building activities comply with the required local, state, International, and other codes. The Building Official and Building Inspector hold the required certifications necessary to assure residential, commercial, and other structures are properly constructed, including certification from the International Code Council (ICC). There are also three Planners in the Community Development Department responsible for managing the current planning, zoning, and plan review functions necessary to assure compliance and meet local, state, and federal codes and ordinances. Additional positions in the Community Development Department are shown in the position chart shown in Exhibit G-6, Community Development Position Chart. Exhibit G-6
Community Development Position Chart
Community Development Position
Full Time Equivalent
Community Development Director/Engineer*
.75
Zoning Coordinator
1
Planner
1
Building Official
1
Building Inspector
1
Permit Technician
1
Planner / Code Enforcement Officer
1
Planning & Zoning Director
1
Total
7.75
*.25 of Engineer allocated to Public Works Department
G‐20
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
4. Permit and Inspection Services CH2M HILL will continue to provide first-class permit and inspection services. We have a proven capacity and the experience to serve the City’s residents, developers, and building community, and we understand the City’s desire for responsive, cost-effective, and high quality permit and inspection services.
Planning and Zoning Commission Coordination Our Planning and Zoning team has well-established working relationships with the City’s Planning and Zoning Commission, Board of Adjustments, and Construction Board of Appeals, and is adept at managing the timelines, performing case analyses, and creating the monthly meeting reports that are critical to the work performed by these appointed bodies.
Local and State Fire Officials Coordination Our permitting team has developed solid working relationships with local fire departments and the State Fire Marshal to ensure that permitting processes for residential, commercial, and other construction projects comply with life safety, fire codes, the International Building Code (IBC), International Residential Code (IRC), Uniform Development Code (UDC), City ordinances, and Louisiana state law. Relationships with local fire departments, the State Fire Marshal, and other agencies are critical to the approval of permitting documents. We have established communication procedures that engage both internal and external agencies in our review processes to facilitate permit approvals.
East Baton Rouge Parish and Louisiana Department of Public Health Coordination The East Baton Rouge Parish and Louisiana Department of Public Health currently collaborate with our team on the review of all plans for compliance with Parish, Louisiana public health and safety codes. We have established working relationships with these agencies and will continue to work with them to ensure responsive and efficient service to City residents and businesses.
Customer Service Center Permit approvals can present challenges for those unfamiliar with the process, and our team will continue to provide exceptional customer service to help Central’s residents and businesses smoothly navigate permitting requirements by answering questions, providing appropriate materials, checklists, and applications. We will continue to accept permit applications at our established Customer Service Office, and will notify applicants when their permits are available for pick-up at this location.
OM032111152310DEN
City of Central, Louisiana
G‐21
Program Management Approach
Residential Plan Review Our team will deliver plan review services for all new residential construction, including housing and accessory structures, in a cost-effective and efficient manner that is consistent with the 5-business day performance standard. It is to be noted, however, that some external agencies whose approvals are required in the permitting process may operate on timetables other than the 5-day schedule indicated in the RFP/Q. In such cases, permits cannot be approved or issued before the external agencies’ approval has been transmitted to the Community Development department.
Commercial Plan Review Our team will deliver plan review services for all new commercial projects at the stated project valuation in a costeffective and efficient manner that is consistent with the 10-business day performance standard. However, compliance with this standard is reliant upon timely performance of internal and external reviews provided by the City’s partners in the permit approval process. To protect the health, safety, and welfare of the City’s residents, we will not issue a final permit letter prior to the completion of all necessary and required permitting processes. This standard shall apply to all requested plan review services in Scope of Work Section 4 and other sections of the RFP/Q. Our team will deliver plan review services for all new commercial projects at the stated project valuation in a cost-effective and efficient manner that is consistent with the 20-business day performance standard. However, for large projects at this valuation, we may engage additional internal CH2M HILL technical and professional staff to assist with large projects and will advise the City if the need for such project resources arises. Our team will deliver plan review services for all new commercial projects at the stated project valuation in a cost-effective and efficient manner that is consistent with the 30-business day performance standard. Again, for projects of this valuation, we may engage additional internal CH2M HILL staffing resources to assist with the technical review required.
Inspections Inspection services work in tandem with the permit intake and plan review functions managed by our team, and we will continue to provide these services in a responsive and reliable way that is consistent with the stated performance standard of same-day inspections for requests received prior to 8:30 a.m., and next-day services for notifications received after this time. In 2010, our Inspections team completed approximately 4,000 inspections. Inspection services will continue to be scheduled by contacting our Customer Service Office by phone, fax, or email. However, our team is also currently evaluating an online inspections scheduling option whereby builders and developers may schedule an inspection for their project through a web-based system. At the conclusion of this evaluation, we welcome the opportunity to discuss our findings and recommendations with the City. To ensure all final signatures are in place prior to the issuance of the permit, each developer, builder, or resident must visit our Customer Service Office location to finalize the process and then receive the signed permit. This requirement ensures that all permit processes are completed prior to issuing the permit. Our team will continue to provide these services at our established Customer Service Office.
G‐22
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
Self-Funding Building Permit Inspections and Related Services Programs Our team currently manages and will continue to organize, administer, and manage all fee collections for residential, commercial, trade, and other miscellaneous permits approved by City Ordinance 2010-10. Central’s CH2M HILL team will collect the fees and deposit the total amount into the City’s account with no fee sharing process.
Development Permits Our permitting team currently manages all processes required for the issuance of each listed permit in strict compliance with all codes, including the IBC, IRC, UDC, Louisiana law, and City ordinances. Since 2008, we have issued over 3,000 permits (see Exhibit G-7, Permits Issued). In looking to the future for permit system innovations, we can offer the City a variety of best practice options to move the City forward with new permit intake systems, and can provide Cost/Benefit analysis for innovative and proven options. Web-based e-plan and permitting systems are solutions adopted by other CH2M HILL clients, and we are prepared to assist the City in reviewing technology solutions that may be a good fit.
Exhibit G-7
Permits Issued
Construction Permits Our team will ensure construction project activities are permitted and inspections are completed in strict conformance and consistent with all applicable construction, environmental, state of Louisiana, and other codes and ordinances.
Onsite Construction Inspections and Enforce Specifications and Standards Construction project progress in Central is documented by ongoing and uniform inspections that prove the work is being completed consistent with required City ordinances, permit applications, and plans. Our Inspections team will continue to conduct regular inspections of construction projects that will include, but not be limited to excavations; subsurface drainage structures, inlets, and manhole construction; base processing, sidewalks, curbs, and median construction; and asphalt or concrete roadway pavement inspections.
Assistance in Reviewing Construction Plans Construction plans submitted for permits are also reviewed by our Planning and Zoning team to ensure building setbacks, zoning, and other conditions are consistent with City ordinances. Our team will continue to provide this service.
OM032111152310DEN
City of Central, Louisiana
G‐23
Program Management Approach
Occupancy Permits for Residential and Commercial Uses Efficient building, site, setback, and other development plan reviews in Central are coordinated with the Planning and Zoning team as a function of issuing City permits, Certificates of Occupancy, and other processes. Soil erosion, sedimentation control and environmental protection; new construction, building addition, and remodel; fence, pool, and manufactured and modular home permits will only be issued in strict compliance with the Uniform Development Code, Department of Public Health, State Fire Marshal, local fire department, and Alcohol and Beverage Control ordinances.
Trade Permits and Conduct Inspections Our team has issued over 2,000 trade permits since 2008, and we will continue to provide this service consistent with City requirements for trades permit type. We will conduct all requisite inspections associated with these permits including electrical, building and plumbing inspections; wall, ceiling, and slab rough-in inspections; and trim out and final inspections.
Plan Approval and Permits for Signage Our Permit team will continue to review and approve applications for sign permits in the City. We have issued over 200 sign permits since 2008 (see Exhibit G-8, Sign Permits Issued).
Exhibit G-8
Sign Permits Issued
5. Planning and Zoning Services Since 2008, our Planning and Zoning team has performed the planning, zoning, and related functions for the City to ensure orderly growth and development consistent with the Zoning Ordinance, Land Use Plan, and other planning guidance. Our team has an effective and supportive working relationship with the City Planner developed through collaboration on a variety of planning strategies and projects, and we will continue to support and develop this relationship and our relationship with the City’s Economic Development Consultant.
Sixty Hardship Cases Cleared for Compliance Promotes Property Improvements for City As evidence of our team’s commitment to the effective administration of the City’s planning functions, our Planning and Zoning team cleared a backlog of over 60 Board of Adjustment hardship cases dating back to 2005. Each case was investigated and hardship waivers were enforced to ensure compliance with the conditions of the waiver. Proactive code enforcement improves the City’s visual appearance, increases property values, and contributes to the high quality of life enjoyed by the City’s residents.
G‐24
City of Central, Louisiana
OM032111152310DEN
Program Management Approach
Planning and Zoning Activities Our current Planning and Zoning team will continue to manage all administrative functions for the City that involve planning, zoning, and rezoning; land use, building set-back, landscaping, and other plan reviews to ensure all approved development is consistent with the City’s codes, ordinances, Land Use Map, and other requirements.
CH2M HILL Invests in Central’s Future We have a long‐standing commitment to the communities we serve and provide financial and staffing support for a wide range of programs and activities that further Central’s planning and economic development goals, such as our $500 donation to the Central Economic Development Foundation and our ongoing membership in the Central Chamber of Commerce.
We will process applications, develop agendas, and prepare and deliver meeting packets to board and commission members prior to each meeting. To ensure that residents have opportunities to participate in the City’s planning and zoning processes, we will post all required public notices to engage City residents, businesses, and other affected parties in the planning and zoning process. Since 2008, 41 zoning cases for rezoning, PUDs, and wireless towers have been completed (see Exhibit G-9, Zoning Cases).
Exhibit G-9
Zoning Cases
Our Planning and Zoning Manager will continue to serve as the assigned support staff that performs the above tasks required for the effective performance of the City’s appointed boards and commissions. Our team has wellestablished working relationships with each and is adept at managing the timelines; performing case analyses; creating monthly meeting reports on subdivisions, site visits, building permits and other data; and making presentations that are critical to the work performed by each board and commission.
Zoning and Building Code Communications Consistent with the other requirements managed by our team to support the City’s appointed boards and commissions, we will work with the general public, builder and developer communities, elected officials, and the Planning and Zoning Commission to assist each with securing information on the Zoning Ordinance and building, development, and other codes. Our team members are always available to provide clarifications, interpretations, and other guidance for those in need of assistance with any of the City’s codes and ordinances.
Planning and Zoning Policies and Procedures To manage the planning functions for the City, we continue to research and develop policies and procedures that address long-term planning issues and identify and recommend new planning approaches that further the City’s values and goals.
OM032111152310DEN
City of Central, Louisiana
G‐25
Program Management Approach
Land Use and Zoning Maps Planning policies adopted by the City are implemented through the City’s Land Use Plan, Zoning Maps, and ordinances. The Planning and Zoning team will continue to ensure those documents remain current and are interpreted consistently and applied via City codes and ordinances.
Municipal Addressing System An important component of the City’s orderly growth is the maintenance of an accurate and up-to-date addressing system that reflects the approval of new development, residential and commercial plats, subdivisions, and other modifications. We will continue to oversee the assignment of addresses and the municipal addressing system to support growth and development in the City. As part of our ongoing addressing system responsibilities, our Planning and Zoning team will ensure address data and GIS maps are shared with relevant agencies, such as the U.S. Postal Service, the East Baton Rouge Parish Tax Assessor and the Registrar of Voters, Police and Fire departments, as well as the 911 Emergency Response System.
Board of Adjustment Activities Consistent with the management of the functions that support the City’s appointed boards and commissions, our Planning and Zoning team will ensure that all activities necessary for the successful conduct of business by the Board of Adjustments (BOA) for the City are in place. This includes processing BOA applications, developing meeting agendas, and preparing and delivering agenda packages for the Board. Our team will continue to attend and support the BOA meetings, including recordings and transcriptions of minutes, so a historical record of each meeting held is kept.
New Development Inspection and Ordinance Compliance Program The Planning and Zoning, and Permitting teams will continue to collaborate on review, approval, and the completion of site inspections for the City to ensure new developments comply with environmental, floodplain, site plan, construction plan, plat, building setback, and other performance standards, codes, ordinances, and laws.
Commercial and Residential Building Permit Setbacks and Zoning Review We will also coordinate with the Inspections team to ensure all commercial and residential site developments in the City meet setback requirements, the Zoning Ordinance, and other land development requirements.
Commercial and Residential Plans Our team will review construction plans for compliance with the UDC and all applicable building codes. Residential and commercial permits will be issued for the stated project valuations in a cost effective and efficient manner that is consistent with the City’s performance standards. However, compliance with this standard is dependent upon the timely and concurrent performance of internal and external reviews by the
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City’s partners in the permit approval process (Fire Marshal, Public Health Department, etc.). To protect the health, safety and welfare of the City’s residents, we will not issue a final permit letter prior to the completion of all necessary and required permitting review processes. This standard shall apply to all requested plan review services in Section 5 and other sections of the RFP/Q. We will provide each of these requested services consistent with local and State codes, and FEMA regulations.
Unified Development Code, Zoning Code, and Subdivision Regulations Our team will continue to manage the City’s current planning functions through regular updates to the Unified Development Code, Zoning Ordinance, and Subdivision Regulations. In addition, we will manage future planning for the City by researching and developing policies and procedures that address long-term planning issues and identify and recommend new planning approaches that further the City’s values and goals.
6. Engineering Services Plan review to meet the City’s permitting requirements is an important function for orderly growth, development, and building safety in Central. CH2M HILL will provide engineering services by a licensed State of Louisiana Civil Engineer to oversee the City’s plan review processes. We will have a licensed engineer located onsite to ensure that required technical, base flood elevation, and other reviews are provided consistent with City codes, state of Louisiana, and federal environmental and other laws.
Floodplain Management A member of our Planning and Zoning team is a certified floodplain manager and has ASFPM certification. These elevation reviews and the preparation of required records will be provided by our team as directed by the staff Engineer. We will ensure that these documents are maintained to evidence that the required floodplain reviews have been completed for all proposed structures. Our team will also provide these services consistent with Section 6.1.1 of the RFQ/P.
Community Rating System For the benefit of the City, the Planning and Zoning team took the initiative to research and develop a strategy for qualifying residents for lower flood insurance premiums through FEMA’s National Flood Insurance Program (NFIP) Community Rating System (CRS). CH2M HILL assists each of its client cities with preparation of the CRS. We will implement the program when notification has been received from FEMA and will maintain records of compliance for review as required. The City adopted its Floodplain Ordinance in July of 2007, and our team will continue to ensure that the records of the City’s compliance with NFIP regulations are maintained and available for review as required by FEMA. We will coordinate and support FEMA’s efforts to document that the City is in compliance with NFIP through FEMA site visits, and the submission of annual reports and other documents as necessary to ensure ongoing participation in the CRS program. The City Engineer will ensure staff consistently performs the ongoing programmatic requirements of participation in NFIP and take proactive steps to improve the City’s rating to secure the lowest flood insurance rates for residents.
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Construction Plan Review and Approval CH2M HILL’s engineer will assume full responsibility for directing and approving all construction plan review processes. A comprehensive spectrum of development, building, and environmental compliance reviews must occur prior to the final approval of plans including assessment of the following impacts:
Land development or building project site
Drainage and water quality
Traffic, sewer, and infrastructure system
Fire Marshal, public health, zoning
The engineer will ensure that these review processes are done in strict conformance with City development ordinances, the Stormwater Management Plan, and Louisiana and federal environmental permit requirements. Our team will conduct these initial site visits for development projects prior to pre-application meetings with builders and developers to ensure that we are aware of project or site conditions so as to best assist the applicant with meeting the required development codes and ordinances. The engineer will oversee the analysis of development impacts for construction projects and ensure that applicants are well-advised of compliance requirements with drainage, traffic and sewer regulations, and codes and ordinances. The Development Review Committee is an advisory committee made up of internal team members (Public Works Director, Planning and Zoning Manager, etc.). CH2M HILL’s engineer and Department Directors and other support staff, will attend these meetings to discuss development projects in order to assist applicants with the permitting, inspections, zoning, and other requirements that may apply to the project. The engineer will ensure the required drainage and water quality impact studies are included with all development applications. He/she will also have final approval authority attesting to compliance and the completion of all review types, and will guide and assist with plan review report preparation. Residential and/or Commercial development information is an important element in the analysis of each case that is presented to the City’s Planning and Zoning Commission to assist with the review of each potential project. CH2M HILL’s engineer will also ensure that all project reviews are completed and final construction documents are approved. Our team will convene and facilitate preconstruction conferences with Public Works, and external agencies when required, for the benefit of contractors, developers, and builders. We will also complete all plan review processes in coordination with other City departments as required, such as Public Works and the Fire Marshal. We understand that preconstruction meetings build goodwill and that a collaborative relationship yields shorter plan reviews, quicker permit turnaround times, and project approvals. Our goal is to ensure these processes are completed consistently, efficiently, and quickly.
Approval and Inspection of Land Development The City currently does not have an LDP or inspection of earthwork disturbances process; however, we implement LDP and related land disturbance inspection programs at other client city projects and would work with the City to establish an LDP process and program in Central.
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The City currently does not have a Tree Removal Permit and inspection process; however, we have implemented tree permit programs at other client city projects and are prepared to do so in Central. A member of the Planning team is a registered Landscape Architect, which is a level of certification important to the design and administration of a Tree Removal Permit program. We are prepared to assist the City with the creation and management of this permitting system.
7. Stormwater Management Construction Best management Practices Our Inspections team conducts weekly site inspections for all construction projects in the City to ensure these projects comply with approved plans and practices. We will continue to provide these services to ensure construction projects meet City standards and ordinances.
Storm Water Management Practices Annual Reporting Our team completed the City’s first annual Storm Water Management Plan (SWMP) report, which describes our progress at meeting the SWMP goals described in the plan. Our Planning team worked with our Public Works team to develop the SWMP to ensure the protection of state water quality and environmental resources. We partnered with the East Baton Rouge Parish Environmental Division to prepare the plan to meet the Municipal Separate Storm Sewer System (MS4) requirements. Our team will continue to prepare the annual report to ensure the City remains in compliance with all MS4 permitting requirements.
Storm Water Pollution Prevention Plans (SWPPP) Our Planning team reviews SWPPPs in conjunction with each building permit application. Each project’s SWPPP is carefully reviewed for compliance with City, state, and federal construction standards to ensure development projects comply with these required standards. We will continue to provide SWPPP reviews in an efficient and effective manner consistent with the City’s environmental goals and objectives.
Compliance with the Clean Water Act and Associated Federal and State Regulations Our team has prepared a draft SWPPP to ensure the City complies with the requirements of the Louisiana Pollutant Discharge Elimination System requirements (LPDES). The state of Louisiana has been granted authority by the U.S EPA to administer this environmental permitting system to meet the requirements of the Clean Water Act. The City’s SWPPP addresses such issues as storm water collection system operation, post construction storm water management, roadway discharge, flood control projects, and public education. Our team will continue to oversee the administration of the SWPPP to ensure the City complies with the requirements of the LPDES.
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Storm Water Management Plan As described in Section 7.4 of the City’s provided Scope of Work, our team has developed a draft SWMP that addresses the five minimum control measures. We will continue to oversee the ongoing implementation of the SWMP to ensure storm water discharge impacts to the state waters of Louisiana are controlled and regulated as required by the MS4 permit.
Storm Water Management Practices Annual Reporting Consistent with Section 7.4 of the City’s Scope of Work our team will continue to work with the Parish and the Louisiana Department of Environmental Quality (DEQ) to ensure the completion of the annual report describing the City’s storm water program goals, pollutant reductions, and any future program changes.
8. Code Enforcement Services Construction Codes, Building Regulations, Use Regulations, Zoning Ordinances, Land Use Restrictions, and Sign Ordinance Enforcement The City’s Nuisance Ordinance, building codes, Zoning Ordinances, and other regulations provide the authority to enforce codes in the City. Since 2008, our Code Enforcement team has completed 597 code enforcement investigations. Our team has developed and implemented a system for the investigation of code enforcement complaints and other required inspections, and we will continue to provide these services in an effective, efficient, and responsive manner.
Construction Code, Building Regulation, Use Regulation, Land Use Restriction, Sign Ordinance, and Other Similar Laws, Codes, and Ordinances Compliance Our team will continue to issue code enforcement notices and other violations when necessary; however, our team’s approach is to build a collaborative, supportive relationship with residents and businesses to promote compliance with codes. To date, only two code enforcement cases have proceeded to an administrative hearing, which evidences the success of our collaborative approach to secure compliance. However, our Code Enforcement Officer will participate in enforcement hearings and litigation when necessary to support the City’s actions to enforce its codes and ordinances. We will continue to provide these services to ensure the City’s appearance and quality of life goals are met.
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Contract CH2M HILL respectfully requests an opportunity to discuss the Sample Contract with the City. We request that the following specific contract terms and conditions be revised in the Contract:
In the Sample Contract, the City is requiring that the RFQ/P be incorporated as part of the Contract and attached as exhibits. We recommend that the Contract include all relevant information governing the relationship between the City and CH2M HILL. Sometimes, during negotiations, matters are discussed that were not included within the proposal and are necessary components of the contract. If we can incorporate all terms and conditions within the Contract, all parties are in agreement as to administration of the contract.
In the Sample Contract, the City has a right to terminate upon 120 calendar days notice. We respectfully request that this term be deleted or be made mutual to each party. Because of the time and effort involved in staffing and establishing a project, we would need time to wrap up operations.
In the Sample Contract, the City is requesting indemnification from only CH2M HILL. We request that a term be added whereby the City provides indemnification of CH2M HILL, to the extent permitted under Louisiana law.
We recommend in Section 3.2.4 of the Sample Contract that implementation of enforcement actions be deleted until we discuss the recommendations and possible costs with the City. These implementations may involve additional costs and benefits to the City and we would like the opportunity to fully discuss the impacts with the City before a price is provided.
Because of our company policy, we respectfully request the term be added regarding the Parties agree to a mutual waiver of consequential damages against each other. This was a term that was included in our original contract with the City. It is our company policy to include this term in all of our contracts.
Signature Authorization All documents requiring a signature are signed by an individual authorized to bind CH2M HILL. Attached you will find a Secretary Certificate signed by Sally A. Hill, Assistant Secretary of CH2M HILL Engineers, indicating Rich D’Amato has authority to sign documents on behalf of the company.
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
Form 10-K (MARK ONE)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
TO
Commission File Number 000-27261
CH2M HILL Companies, Ltd. (Exact name of registrant as specified in its charter) Oregon (State or other jurisdiction of incorporation or organization) 9191 South Jamaica Street, Englewood, CO (Address of principal executive offices)
93-0549963 (I.R.S. Employer Identification Number) 80112-5946 (Zip Code)
(303) 771-0900 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: CH2M HILL common stock, par value $0.01 per share Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer
Accelerated filer
Non-accelerated filer (Do not check if a smaller reporting company)
Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No The aggregate value of common stock held by non-affiliates computed by reference to the price as of June 30, 2010 was approximately $1.2 billion. As of February 15, 2011, there were 30,696,136 shares of the registrant’s common stock outstanding. DOCUMENTS INCORPORATED BY REFERENCE Information, required by Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K are incorporated by reference from the CH2M HILL definitive proxy statement for its 2011 Annual Meeting of Shareholders to be held on May 2, 2011.
CH2M HILL COMPANIES, LTD. AND SUBSIDIARIES ANNUAL REPORT ON FORM 10-K TABLE OF CONTENTS Page
PART I. Item 1. Item 1A. Item 1B. Item 2. Item 3. Item 4. PART II. Item 5. Item 6. Item 7. Item 7A. Item 8. Item 9. Item 9A. Item 9B. PART III. Item 10. Item 11. Item 12.
Business ..................................................................................................................................................... Risk Factors ............................................................................................................................................... Unresolved Staff Comments ...................................................................................................................... Properties ................................................................................................................................................... Legal Proceedings ...................................................................................................................................... Removed and Reserved .............................................................................................................................
4 9 17 18 18 18
Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities ................................................................................................................... Selected Financial Data ............................................................................................................................. Management’s Discussion and Analysis of Financial Condition and Results of Operations .................... Quantitative and Qualitative Disclosures About Market Risk ................................................................... Financial Statements and Supplementary Data .......................................................................................... Changes in and Disagreements With Accountants on Accounting and Financial Disclosure ................... Controls and Procedures ............................................................................................................................ Other Information ......................................................................................................................................
18 23 24 32 33 33 33 33
Directors, Executive Officers and Corporate Governance ......................................................................... Executive Compensation ........................................................................................................................... Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters ................................................................................................................................... Certain Relationships and Related Transactions, and Director Independence ........................................... Principal Accounting Fees and Services ....................................................................................................
Item 13. Item 14. PART IV. Item 15. Exhibits and Financial Statement Schedules ............................................................................................. SIGNATURES
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34 35 35 35 35 35
This Form 10-K contains various “forward-looking statements “within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements represent the Company’s expectations and beliefs concerning future events, based on information available to the Company on the date of the filing of this Form 10-K, and are subject to various risks and uncertainties. Such forward looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward looking statements. Words such as “believes,” “anticipates,” “expects,” “will,” “plans” and similar expressions are intended to identify forward looking statements. Additionally, forward looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward looking statements in this report are based upon information available to us on the date of this report. We undertake no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Factors that could cause actual results to differ materially from those referenced in the forward-looking statements are listed in Item 1A, Risk Factors. The Company disclaims any intent or obligation to update or revise any of the forward- looking statements, whether in response to new information, unforeseen events, changed circumstances or otherwise.
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PART I Item 1. Business Summary CH2M HILL Companies, Ltd. was founded in 1946 and incorporated under the laws of the State of Oregon on November 9, 1965. We are a large employee owned professional engineering services firm providing engineering, construction, consulting, design, design-build, procurement, operations and maintenance, program management and technical services to U.S. federal, state, municipal, and local government agencies, national governments, as well as private sector clients worldwide. We have 23,000 employees in offices worldwide. Our Operating Segments We provide services to our clients through three operating segments: Government, Environment and Nuclear (GEN), Facilities and Infrastructure, and Energy. Our GEN segment provides a comprehensive range of services to various U.S. federal government agencies as well as services to foreign governments and private industry. Our Facilities and Infrastructure segment provides a comprehensive range of services to various private industry segments, and state, local and provincial governments. Our Energy segment provides a comprehensive range of services to private sector clients. Financial information for each segment for each of the last three years, including 2010, is included in Note 16 of the Notes to Consolidated Financial Statements in Item 15 of this Annual Report on Form 10-K. In order to improve our competitiveness, client service, and financial strength, effective January 1, 2011, we have reorganized our reporting structure under which our chief operating decision maker will be making strategic and operating decisions with regards to assessing performance and allocating resources. We believe this new organizational structure will help us deal with global economic and industry challenges, and better position us for a solid future. As a result, our water business will be reported with the Energy segment creating the Energy and Water segment. Additionally, our Industrial Systems business will be split based upon its operations and combined within our Environmental Services business and Water business and thus reflected in the GEN and Energy and Water segments, respectively. These changes began on January 1, 2011. Our Clients and Key Markets We provide services to a diverse customer base including the U.S. federal and foreign governments and governmental authorities, various U.S. federal government agencies, provincial, state and local municipal government, major oil and gas companies, refiners and pipeline operators, metal and mining, automotive, food and beverage and consumer products manufacturers, microelectronics, pharmaceuticals and biotechnology companies. In 2010, we derived approximately 37% of our total revenues from contracts with the U.S. federal government. The following table summarizes our primary client types, revenues and key markets served by each of our operating segments. Operating Segment
Client Type
Government, Environment and Nuclear ............................................. U.S. Federal and Foreign Governments, Governmental Authorities and Utilities Facilities and Infrastructure ........................ State and Local Governments and Private Sectors
Energy ......................................................... Private Sectors and Utilities
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% of 2010 Revenues
Key Markets
41%
• • •
Nuclear Environmental Services Government Facilities and Infrastructure
37%
•
Water, Wastewater and Water Resources Transportation Operations Management Industrial and Advanced Technology Energy and Chemicals Industrial Systems Power
• • • 22%
• • •
Clients We provide our services to a broad range of domestic and international clients, including federal governments, state, local and provincial governments and private sector businesses. We perform services as the prime contractor, as subcontractors, or through joint ventures or partnership agreements with other service providers. The demand for our services generally comes from budgeting and capital spending decisions made by our clients. The following table provides a summary of representative clients: Public Sector Clients
• • • • • • •
• •
• •
U.S. Department of Energy (DOE) U.S. Department of Defense U.S. Department of the Interior U.S. Air Force U.S. Navy U.S. Army Corps of Engineers Federal Emergency Management Agency (FEMA) Department of Homeland Security U.S. Agency for International Development (USAID) U.S. Environmental Protection Agency U.S. Federal Emergency Management Agency
• •
• • • • • • • • •
Private Sector Clients
United Kingdom Atomic Energy Authority United Kingdom Nuclear Decommissioning Authority Republic of Korea Ministry of Defense U.S. cities Foreign cities U.S. airports and seaports U.S. and State Departments of Transportation State Transit Authorities Water and Wastewater Municipalities Panama Canal Authority London 2012 Olympic Delivery Authority
•
• • • • • •
•
Major oil and gas companies, refiners and pipeline operators Power utilities Chemicals, bioprocessing and refining companies Metals and mining Microelectronics manufacturers Pharmaceutical and biotechnology companies Automotive, food and beverage, metals and consumer product manufacturers Renewable energy companies
Key Markets The following is a description of each of our key markets within our operating segments and the services we provide. Government, Environment & Nuclear Division The GEN operating division comprises three businesses—Government Facilities and Infrastructure (GF&I), Environmental Services, and Nuclear. GEN provides a full range of services—program management, engineering, design, construction, environmental remediation, operation and maintenance, decontamination and decommissioning, facility closure, sustainable solutions, and consulting services—to clients worldwide, including our largest client, the U.S. federal government. Government Facilities and Infrastructure—Our GF&I business ensures value-added mission success for our government clients globally by safely delivering flexible and sustainable facilities, infrastructure, and contingency solutions on any scale worldwide. GF&I designs, constructs, operates, or maintains various categories of facility and infrastructure at all types of government and military installations. In addition, GF&I maintains a focus on sustainability to optimize client goals while minimizing impacts and costs. GF&I service offerings include contingency and logistics, design-build services, engineering and design, operations and maintenance, planning and consulting, and program management. The U.S. Department of Defense is GF&I’s largest client. We also provide a multitude of services to other government agencies such as the Federal Emergency Management Agency, U.S. Agency for International Development, Department of Energy, and Department of Homeland Security. We continue to expand our U.S. government client base, both within the U.S. and internationally. Environmental Services—The Environmental Services business is dedicated to protecting public health, preserving the environment, and restoring impacted natural resources. We achieve this mission by offering services within five market segments: integrated waste solutions, munitions response, natural resources planning and management, sediment 5
management and remediation, and site remediation and revitalization. Clients include a broad spectrum of U.S. government agencies and departments; multi-national industrial clients; numerous U.S. municipalities and port authorities; and international clients in both the public and private sector. Beginning in 2011, the life cycle services for the industrial market from the Industrial Systems business was combined with the Environmental Services business to bring all our industrial environmental services capabilities under the same management. A key differentiator for us with both our government and multinational clients is project delivery with a global footprint—our ability to effectively and consistently deploy our systems and processes (especially safety, environmental compliance, and project management) throughout the world with little deviation. Nuclear—The Nuclear business specializes in the management of complex nuclear programs and projects around the globe. Our experience includes more than two decades of managing and operating nuclear facilities and providing innovative cleanup and environmental remediation for commercial and government facilities and sites worldwide. A key strength is our ability to manage large nuclear projects with inherent radiological, chemical, and industrial safety challenges—complex challenges that few companies can manage successfully. CH2M HILL provides innovative cleanup and closure solutions for contaminated sites in the U.S. Department of Energy (DOE) nuclear weapons complex and at United Kingdom Nuclear Decommissioning Authority sites in Great Britain. In the commercial nuclear sector, we provide program management and program advisory services, as well as planning, permitting, and licensing of new nuclear generating stations in compliance with current international regulatory requirements. Additional service offerings at government and commercial nuclear sites are: program management and owner’s engineer services; decommissioning; waste management; waste fuel strategies; support service operations; and planning, permitting, and licensing of new nuclear generating stations. With a solid record of successfully mitigating the risks and hazards on environmental management programs, CH2M HILL has completed a significant amount of decommissioning as a contractor in the DOE complex (nearly 9.1 million square feet). We continue to build our commercial nuclear offerings while maintaining our preeminent position in liabilities management. Facilities & Infrastructure Division The Facilities and Infrastructure (F&I) Division comprises four businesses: Water, Industrial and Advanced Technology, Transportation, and Operations and Maintenance (O&M). The Division also provides enterprise stewardship for the development of our facilities market penetration strategy, the urban development practice, and the O&M collaborative working group, which is responsible for identifying ways to better leverage our O&M capabilities that reside in various businesses. F&I’s portfolio of services include: consulting, design, design-build, operations and maintenance, construction management, and program management. Water—In the Water business, we serve the water resources and ecosystem management; water treatment; conveyance and collection; wastewater treatment and reuse; and utility management market segments. We support the water-related needs of clients in the utility, industrial, government, energy, and agricultural sectors. Our broad portfolio of water solutions helps clients address the complex challenges related to population growth, water supply uncertainty, global climate change, regulatory changes, and increasing demand. Beginning in 2011, the industrial water capability from the Industrial Systems business was combined with the Water business to pursue the large and growing energy-related water market. Addressing the impacts of global climate change requires the ability to create solutions for the energy-water-carbon Nexus. Energy production requires a reliable, abundant, and predictable source of water, a resource that is already in short supply throughout much of the world. We work with clients to identify solutions for water and energy conservation, and to re-evaluate processes to achieve cost savings and reduce environmental impacts. Our geographic strategy is to expand market reach in North America, Europe, the Middle East, Singapore, and Australia. We will continue to capitalize on market drivers such as drought/water scarcity, aging infrastructure, global climate change, and regulatory requirements. Industrial and Advanced Technology—In our Industrial and Advanced Technology business, we serve the pharmaceutical, food processing, aerospace, automobile, metals, building materials, semiconductor, photovoltaic, flat panel, and life science manufacturing sectors. In addition, our IDC Architects group services the data center, nanotechnology, and university research sectors, as well as special economic zone developments. In addition, we serve the automobile and aerospace manufacturing segments. As the economy recovers, we will continue to expand market reach in Asia, North America, South America, and the Middle East. We are leveraging our strategic business planning capabilities to help clients structure and plan their high-volume manufacturing projects, and to provide follow-on design and construction services. Transportation—In the Transportation business, we serve the aviation, highway/bridge, ports and maritime, and transit and rail segments with both horizontal and vertical infrastructure development. For all of our clients, we provide design, value engineering, design-build, project/program management, construction management, feasibility studies, public involvement/community management, environmental, and sustainability planning. Airport services include airfield design, airfield infrastructure, airspace obstruction analysis, and noise analyses. For our highway and bridge clients, we provide 6
corridor location studies, traffic engineering, intelligent transportation systems, bridge condition assessment and load ratings, and structural seismic analysis and retrofit design. Ports and maritime client services include architecture, commercial, and owner’s representative. Transit and rail services include alternatives analysis, and security services for light rail, commuter rail, freight rail, bus rapid transit, and fleet maintenance facilities. Operations and Maintenance—In our Operations and Maintenance (“O&M”) business, we provide communities and private companies with a broad range of tailored solutions. Our services include water and wastewater system and staff optimization; contract operations and maintenance of water, wastewater, and other municipal functions such as public works, and community development; facilities management; and O&M consulting. The geographic strategy is to expand market reach in North America, and we are positioning for growth in Australia, the Middle East, and Brazil. We see an increase in public-private partnerships for both full and customized service selection, as municipal and private entities continue to look for more ways to increase revenues and reduce costs through efficiency gains. Our O&M Collaborative Working Group combines established O&M services across our Energy, Environmental, Facilities, Transportation, Resources, and Water markets. We will continue to expand our consulting business and leverage cross-market synergies around design-build-operate, remediation, produced water, and manufacturing. Energy Division The Energy Division is comprised of the Energy and Chemicals, Industrial Systems and Power businesses. The Energy Division also serves as the corporate steward of our Sustainability and Climate Change practice, and as the nexus of energy-water-carbon solutions to address emerging market needs. The portfolio of services include: consulting, design, design-build, operations, construction management, and program management. Energy and Chemicals—In the Energy and Chemicals business, we serve the upstream, midstream, and downstream sectors of the oil and gas industry. For the upstream sector, we perform modular fabrication, erection, and operations and maintenance services for oil and gas fields. In the midstream sector, we gather, store, and transport oil, natural gas, refined products, carbon dioxide, and other related hydrocarbons, liquids, and gases via pipelines, compression, pump stations, metering, tank farms, terminals, and related facilities. In the downstream sector, we provide technology evaluation and feasibility studies; design and construction of refinery units, terminals, pipelines, pump stations, and cogeneration facilities; design, fabrication, and installation of modules and pipe racks; turnarounds and revamps; effluent treatment; refinery conversion to heavy crude oil processing; flue gas scrubbing; and process safety management. We look to expand our business in Alaska, Canada, and the Middle East. In Chemicals, we serve all segments of the industry, including petrochemicals and derivatives, inorganics, specialties, and agricultural chemicals, with a specialization in “first of kind” processes. We provide a full-suite of solutions for polysilicon, chemicals from alternative feedstocks, alkalis and chlorine, synthetic performance fibers, monomers and polymers, and resins and plastics plants. Our services cover the entire lifecycle from green field, design, construction, operations and maintenance, and retrofit, to decommissioning and remediation. We serve clients in North and South America, China, and Europe. Industrial Systems—In our Industrial Systems business, we provide a broad array of life cycle services to industrial markets to improve the performance and operations of industrial facilities. These services typically include consulting, design, project, licensing, air quality management, environmental, health and safety auditing and performance, regulatory compliance, renewable energy and facility sustainability analysis, risk assessment and ecosystems management. Power—In our Power business, we design and build power generation facilities that produce energy from natural gas, coal, oil, solar, wind, biomass, and geothermal sources. Our portfolio includes coal/integrated gasification, combined-cycle, simple-cycle, clean air, alternative/waste fuels, and cogeneration projects. We also repower, upgrade, or modify existing plants to improve performance and achieve clean air standards. Our delivery of full-service engineer-procure-construct services helps clients craft long-term strategies while addressing the ongoing market challenges around unpredictable and changing electricity demand, transmission capacity constraints, changing environmental regulations and policies, aging infrastructure, outdated technologies, water constraints, and fuel diversification. Our Sustainability and Climate Change practice encompasses facilities and land development, sustainable cities, carbon and energy management, natural resources planning and management, and site remediation. We bring together strategists, scientists, architects, engineers, technologists, and economists to evaluate opportunities and work collaboratively to deliver lasting solutions that benefit our clients, their communities, and the environment. We also have a diverse platform of tools, technology, and best practices to help clients make well informed decisions and to evaluate the overall sustainability of various options.
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Competition The market for our design, consulting, engineering construction, operations and maintenance, and program management services is highly competitive. We compete with large multinational firms as well as smaller firms with less resources who offer lower prices for particular services. In addition, some of our clients, including government agencies, occasionally utilize their own internal resources to perform design, engineering and construction services where we might have been the service provider. Numerous mergers and acquisitions in the engineering services industry have resulted in a group of large firms that offer a full complement of single-source services including studies, designs, construction, operations, maintenance and in some instances, facility ownership. Included in the current trend is movement towards larger program and contract awards and longer-term contract periods for a full suite of services, (e.g., 5 to 20 year full-service contracts). While these larger, longer, more comprehensive contracts require us to have substantially greater financial and human capital than in the past, we compete effectively for these full service programs. To our knowledge, no single company or group of companies currently dominates any significant portion of the engineering services markets. Competition in the engineering services industry is based on quality of performance, reputation, expertise, price, technology, customer relationships, range of service offerings and domestic and international office networks. For additional information regarding competition, see “Risk Factors—Our industry is highly competitive” in Item 1A of this Annual Report on Form 10-K. Backlog We define backlog as signed contracts and task orders less previously recognized revenue on such contracts and task orders. In addition, we also include amounts under notices to proceed that have been received from clients and are expected to be recognized as revenues when future services are performed. Our operations and maintance contracts are included for the non-cancellable term of the contract. Unexercised options under any contract are not included in our backlog. Our backlog also reflects our proportionate share of future activities related to consolidated and unconsolidated joint ventures. Many of our contracts require us to provide services that span over a number of fiscal years. U.S. government agencies operate under annual fiscal appropriations by Congress and fund various federal contracts only on an incremental basis. The same is true of many state, local and foreign contracts. The following table provides backlog revenues by operating segment for the years ended December 31: 2010
($ in millions)
Government, Environment and Nuclear ............................................... Facilities and Infrastructure .................................................................. Energy ..................................................................................................
$3,304.5 2,186.8 746.5 $6,237.8
2009
$4,629.3 2,237.4 772.3 $7,639.0
The decrease in the GEN segment backlog is due to a decrease in the American Recovery and Reinvestment Act (ARRA) funding. For more information on backlog, see “Risk Factors—Our backlog is subject to unexpected adjustments and cancellations and is, therefore, an uncertain indicator of our future performance” in Item 1A of this Annual Report on Form 10-K. Available Information In addition, for information regarding CH2M HILL, including free copies of filings with the Securities and Exchange Commission (SEC), please visit our web site at www.ch2m.com. The SEC filings, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K are located in the About Us/Employee Ownership section of our web site and are made available as soon as practicable after they are filed with the SEC.
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Item 1A. Risk Factors You should carefully consider the following factors and other information contained in this Annual Report on Form 10-K before deciding to invest in our common stock. Risks Related to Our Business Unpredictable economic cycles, uncertain demand for our engineering and related services, and failure by our major customers to pay our fees, could cause our revenue to fluctuate or be uncollectible. Demand for our engineering and other services is affected by the general level of economic activity in the markets in which we operate, both in and outside of the U.S. Our customers and the markets in which we compete to provide services are likely to experience periods of economic decline from time-to-time. In particular, the recent global economic downturn and governmental tax revenue declines resulted in a slowdown in demand for our services in oil and gas, state and municipal infrastructure, manufacturing and industrial clients. Adverse economic conditions may decrease our customers’ willingness to make capital expenditures or otherwise reduce their spending to purchase our services, which could result in diminished revenues and margins for our business. The demand for services depends on the demand and capital spending of our customers in their target markets, some of which are cyclical in nature. Adverse economic conditions could alter the overall mix of services that our customers seek to purchase, and increased competition during a period of economic decline could force us to accept contract terms that are less favorable to us than we might be able to negotiate under other circumstances. Changes in our mix of services or a less favorable contracting environment may cause our revenues and margins to decline. Moreover, our customers impacted by the economic downturn could delay or fail to pay our fees. If a customer failed to pay a significant outstanding fee, our financial results could be adversely affected and our stock price could be reduced. Adverse credit market conditions could negatively impact our customers’ ability to fund their projects and therefore utilize our services; they can also impact subcontractors’ and suppliers’ ability to deliver work. These credit disruptions could negatively impact our backlog and profits, and could increase our costs or adversely impact project schedules. The uncertainties involved in prolonged procurement processes associated with our projects make it particularly difficult to predict whether and when we will receive a contract award. The uncertainty of contract award timing can present difficulties in matching our workforce size with our project needs. If an expected project award is delayed or not received, we could incur costs resulting from idle workforce reductions in staff, or redundancy of facilities that would have the effect of reducing our profits. Changes and fluctuations in government’s spending priorities could adversely affect our revenue expectations. Because a substantial part of our overall business is generated either directly or indirectly as a result of U.S. federal, state and local government regulatory and infrastructure priorities, shifts in these priorities due to changes in policy imperatives or economic conditions are often unpredictable and may affect our revenues. Significant government budget deficits may result in delays or cancellations for some of our projects. In addition, any government shutdown could have an impact on our government projects including our ability to earn revenue on those projects, and could have an adverse impact on our financial condition. Political instability in key regions around the world coupled with the U.S. federal government’s commitment to the war on terror put U.S. federal discretionary spending at risk, including spending on infrastructure projects that are of particular importance to our business. At the state and local levels, the need to compensate for reductions in the federal matching funds, as well as financing of federal unfunded mandates, creates pressures to cut back on infrastructure project expenditures. While we have won and are continuing to seek federal contracts related to changing U.S. federal government priorities, such as unforeseen disaster response, rebuilding efforts in countries impacted by war on terror, and other projects that reflect current U.S. government focus, there can be no assurances that changing U.S. government priorities and spending would not adversely affect our business.
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Government contracts present risks of termination for convenience, adjustment of payments received, restrictions on ability to compete for government work and funding constraints. In 2010, we derived approximately 37% of our total revenues from contracts with the U.S. federal government. The following risks are inherent in U.S. federal government contracts: •
Because U.S. federal laws permit government agencies to terminate a contract for convenience, our U.S. government clients may terminate or decide not to renew our contracts with little or no prior notice.
•
Payments we receive from our U.S. government clients, our books, records and processes are subject to audit by various U.S. governmental agencies for several years after these payments are made. Based on these audits, the U.S. government may adjust or demand repayment of payments we previously received, or withhold a portion of fees due to us because of unsatisfactory audit outcomes. Audits have been completed on our U.S. federal contracts through December 31, 2006, and are continuing for subsequent periods. Audits performed to date have not resulted in material adjustments to our financial statements. Unsatisfactory audit results may impact our ability to bid or win future U.S. government contract work. In addition, as a government contractor, we are subject to increased risks of investigation, criminal prosecution and other legal actions and liabilities to which purely private sector companies are not. The results of any such actions could adversely impact our business and have an adverse effect on our consolidated financial statements.
•
Our ability to earn revenues from our existing and future U.S. federal government projects will depend upon the availability of funding from U.S. federal government agencies. We cannot control whether those clients will fund or continue funding our existing projects.
•
In years when the U.S. federal government does not complete its budget process before the end of its fiscal year on September 30, government operations are typically funded pursuant to a “continuing resolution” that authorizes agencies of the U.S. government to continue to operate, but does not authorize new spending initiatives, which can delay the award of new contracts. These delays could have an adverse effect on our operating results.
•
Many U.S. federal government programs in which we work require security clearances. Security clearances can be difficult and time-consuming to obtain. If we or our employees are unable to obtain or retain necessary security clearances, we may not be able to win new business or will not be able to renew existing contracts. To the extent we cannot obtain or maintain the required security clearances for our employees working on a particular contract, we may not derive the revenue anticipated from the contract, which could adversely affect our business and results of operations.
Our ability to secure new government contracts and our revenues from existing government contracts could be adversely affected by any one or a combination of the factors listed above. Many of our projects are funded by U.S. federal, state and local governments and if we violate applicable law governing this work, we are subject to the risk of suspension or debarment from government contracting activities, which could have a material adverse affect on our business and results of operations. If we fail to comply with the terms of one or more of our government contracts or statutes and regulations that govern this type of work, or if we or our employees are indicted or convicted on criminal charges (including misdemeanors) relating to any of our government contracts, in addition to any civil or criminal penalties and costs we may incur, we could be suspended or debarred from government contracting activities for a period of time. Some U.S. federal and state statutes and regulations provide for automatic debarment in certain circumstances. The suspension or debarment in any particular case may be limited to the facility, contract or subsidiary involved in the violation or could be applied to the entire CH2M HILL family of companies in certain severe circumstances. Even a narrow scope suspension or debarment could result in negative publicity that could adversely affect our ability to renew contracts and to secure new contracts, both with governments and private customers, which could materially and adversely affect our business and results of operations. Our industry is highly competitive. We are engaged in a highly competitive business in which most of our contracts with public sector clients are awarded through a competitive bidding process that places no limit on the number or type of potential service providers. The 10
process usually begins with a government agency request for proposal that delineates the size and scope of the proposed contract. The government agency evaluates the proposals on the basis of technical merit and cost. In both the private and public sectors, acting either as a prime contractor or as a subcontractor, we may join with other firms that we otherwise compete with to form a team to compete for a single contract. Because a team can often offer stronger combined qualifications than any firm standing alone, these teaming arrangements can be very important to the success of a particular contract competition or proposal. Consequently, we maintain a network of relationships with other companies to form teams that compete for particular contracts and projects. Failure to maintain technical and price competitiveness, as well as failure to maintain access to strong teaming partners may impact our ability to win work. Our backlog is subject to unexpected adjustments and cancellations and is, therefore, an uncertain indicator of our future performance. Our backlog at December 31, 2010 was $6.2 billion. We cannot assure that the revenues projected in our backlog will be realized or, if realized, will result in profits. Projects may remain in our backlog for an extended period of time prior to project execution and, once project execution begins, it may occur unevenly over the current and multiple future periods. In addition, our ability to earn revenues from our backlog depends on the availability of funding for various government and private clients. Most of our industrial clients have termination for convenience provisions in their contracts. Therefore, project terminations, suspensions or reductions in scope may occur from time-to-time with respect to contracts reflected in our backlog. Some backlog reductions would adversely affect the revenue and profit we actually receive from contracts reflected in our backlog. Future project cancellations and scope adjustments could further reduce the dollar amount of our backlog and the revenues and profits that we actually earn. Our inability to attract and retain professional personnel could adversely affect our business. Our ability to attract, retain and expand our staff of qualified engineers and technical professionals will be an important factor in determining our future success and growth. The market for these professionals is competitive in and outside the U.S. As some of our key personnel approach retirement age, we are developing and implementing proactive succession plans. If we cannot attract and effectively implement our succession plans, we could have a material adverse impact on our business, financial condition, and results of operations. Since we derive a significant part of our revenues from services performed by our professional staff, our failure to retain and attract professional staff could adversely affect our business by impacting our ability to complete our projects and secure new contracts. Our projects may result in liability for faulty engineering services. Our engineering practice involves professional judgments regarding the planning, design, development, construction, operations and management of industrial facilities and public infrastructure projects. Because our projects are often large and can affect many people, our failure to make judgments and recommendations in accordance with applicable professional standards could result in large damages and, perhaps, punitive damages. Although we have adopted quality control, risk management and risk avoidance programs designed to reduce potential liabilities, and carry professional liability to set off this risk, there can be no assurance that such programs will protect us fully from all risks and liabilities. We could sustain losses on contracts that contain “fixed price” or “not to exceed” pricing provisions if our costs exceed the fixed or maximum prices. In 2010, we derived approximately 29% of our revenues from “fixed price” contracts and approximately 41% of our revenues from time-and-materials contracts, most of which had “not to exceed” price limits. Under “fixed price” contracts, we agree to deliver projects for a definite, predetermined price regardless of our actual costs incurred over the life of the project. Under time-and-materials contracts with “not to exceed” provisions, we are compensated for the labor hours expended at agreed-upon hourly rates plus cost of materials used; however, there is a stated maximum compensation for the services to be provided under the contract. Many fixed price and “not to exceed” contracts involve large industrial facilities and public infrastructure projects and present the risk that our costs to complete a project may exceed the fixed price or “not to exceed” price agreed upon with the client. The fixed or maximum fees negotiated for such projects may not cover our actual costs and desired profit margins. If our actual costs for a fixed or “not to exceed” price project are higher than we expect, our profit margins on the project will be reduced or we could suffer a loss.
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Percentage-of-completion accounting used for our engineering and construction contracts can result in overstated or understated profits or losses. The revenue for our engineering and construction contracts is accounted for on the percentage-of-completion method of accounting. This method of accounting requires us to calculate revenues and profit to be recognized in each reporting period based on our predictions of future outcomes, including our estimates of the total cost to complete the project, project schedule and completion date, the percentage of the project that is completed and the amounts of any probable unapproved change orders. Our failure to accurately estimate these often subjective factors could result in reduced profits or losses. Environmental regulations and related compliance investigations may adversely impact our project performance, expose us to liability and could adversely affect our revenues. A substantial portion of our business is generated either directly or indirectly as a result of laws and regulations related to environmental matters. In particular, our business involves significant risks including the assessment, analysis, remediation, handling, management and disposal of hazardous substances. As a result, we are subject to a variety of environmental laws and regulations governing, among other things, discharges of pollutants and hazardous substances into the air and water and the handling and disposal of hazardous waste including nuclear materials and related record keeping requirements. These laws and regulations and related investigations into our compliance, as it pertains to facility operations and remediation of hazardous substances, can cause project delays and, substantial management time commitment and may significantly add to our costs. Violations of these environmental laws and regulations could subject us to civil and criminal penalties and other liabilities, which can be very large. Although we have not been subject to any material civil or criminal penalties for violations of these laws to date, we have incurred costs and diverted resources to respond to reviews that have negatively impacted the profitability of some of our projects. While the costs of these reviews have not been material to our consolidated results of operations in the past, additional or expanded reviews or proceedings on environmental compliance, or any substantial fines or penalties, could affect our profitability and our stock price in the future, or could adversely affect our ability to compete for new business. Changes in environmental regulations could affect our business more significantly than other engineering firms. Accordingly, a reduction in the number or scope of these laws and regulations, or changes in government policies regarding the funding, implementation or enforcement of such laws and regulations, could significantly reduce one of our most important markets and limit our opportunities for growth or reduce our revenues. In addition, any effort by government agencies to reduce the role of private contractors in regulatory programs, including environmental compliance projects, could have material adverse effects on our business. We may not be successful in growing through acquisitions or integrating effectively any businesses and operations we may acquire. Our success depends on our ability to continually enhance and broaden our service offerings and our service delivery footprint in response to changing customer demands, technology, and competitive pressures. Numerous mergers and acquisitions in our industry have resulted in a group of larger firms that offer a full complement of single source services including studies, design, engineering, procurement, construction, operations, maintenance, and facility ownership. To remain competitive, we may acquire new and complementary businesses to expand our portfolio of services, add value to the projects undertaken for clients or enhance our capital strength. We do not know if we will be able to complete any future acquisitions or whether we will be able to successfully integrate any acquired businesses, operate them profitably, or retain their key employees. When suitable acquisition candidates are identified, we anticipate significant competition when trying to acquire these companies, and there can be no assurance that we will be able to acquire such acquisition targets at reasonable prices or on favorable terms. If we cannot identify or successfully acquire suitable acquisition candidates, we may not be able to successfully expand our operations. Further, there can be no assurance that we will be able to generate sufficient cash flow from an acquisition to service any indebtedness incurred to finance such acquisitions or realize any other anticipated benefits. Nor can there be any assurance that our profitability will be improved as a result of these acquisitions. Any acquisition may involve operating risks, such as: •
the difficulty of assimilating the acquired operations and personnel and integrating them into our current business;
•
the potential impairment of employee morale;
•
the potential disruption of our ongoing business; 12
•
preserving important strategic and customer relationships;
•
the diversion of management’s attention and other resources;
•
the risks of entering markets in which we have little or no experience;
•
the possibility that acquisition related liabilities that we incur or assume may prove to be more burdensome than anticipated;
•
the risks associated with possible violations of the Foreign Corrupt Practices Act and other anti-corruption laws as a result of any acquisition; and
•
the possibility that any acquired firms do not perform as expected.
The success of our joint ventures depends on the satisfactory performance by our joint venture partners. The failure of our joint venture partners to perform their obligations could impose on us additional financial and performance obligations that could result in reduced profits or significant losses on the projects that our joint ventures undertake. We routinely enter into joint ventures as part of our business. The success of these joint ventures depends, in large part, on the satisfactory performance of our joint venture partners. If our joint venture partners fail to satisfactorily perform their joint venture obligations as a result of financial or other difficulties, the joint venture may be unable to adequately perform or deliver its contracted services. Under these circumstances, we may be required to make additional investments and provide additional services to ensure the adequate performance and project delivery. These additional obligations could result in reduced profits or, in some cases, significant losses for us with respect to the joint venture. Occasionally, we participate in joint ventures where we are not a controlling party. In such instances we may have limited control over joint venture decisions and actions, including internal controls and financial reporting, which may have an impact on our business. We may be restricted in our ability to access the cash flows or assets from our subsidiaries and joint venture partners upon which we are substantially dependent. We are dependent on the cash flows generated by our subsidiaries and, consequently, on their ability to collect on their respective accounts receivables. Substantially all of our cash flows necessary to meet our operating expenditures are generated by our subsidiaries. The financial condition and operational requirements of our foreign subsidiaries may limit our ability to obtain cash from them. In addition, we conduct some operations through joint ventures. We do not manage all of these entities. Even in those joint ventures that we manage, we are often required to consider the interests of our joint venture partners in connection with decisions concerning the operations of the joint ventures. Arrangements involving our foreign subsidiaries and joint ventures may restrict us from gaining access to the cash flows or assets of these entities. In addition, our foreign subsidiaries sometimes face governmentally imposed restrictions on their abilities to transfer funds to us. Our dependence on subcontractors and equipment manufacturers could adversely affect us. We rely on third party subcontractors as well as third party equipment manufacturers to complete our projects. To the extent that we cannot engage subcontractors or acquire equipment or materials, our ability to complete a project in a timely fashion or at a profit may be impaired. If the amount we are required to pay for these goods and services exceeds the amount we have estimated in bidding for fixed price contracts, we could experience losses in the performance of these contracts. In addition, if a subcontractor or a manufacturer is unable to deliver its services, equipment or materials according to the negotiated terms for any reason, including the deterioration of its financial condition, we may be required to purchase the services, equipment or materials from another source at a higher price. These risks are potentially more significant in the current economic downturn if financial difficulties in our supply chain cause our services or equipment suppliers not to be able to support the demands and schedules of our business. This may reduce the profit we expect to realize or result in a loss on a project for which the services, equipment or materials were needed.
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We face special risks associated with our international business. In 2010 and 2009, we derived approximately 21% and 18%, respectively, of our revenues from operations outside of the U.S. Conducting business abroad is subject to a variety of risks including: •
Because our financial results are reported in U.S. dollars, currency exchange rate fluctuations, restrictions on currency movement and impact of international tax laws could adversely affect our results of operations, if we are forced to maintain assets in currencies other than the U.S. dollar.
•
Political and economic instability and unexpected changes in regulatory environment in countries outside the U.S. could adversely affect our projects overseas and our ability to repatriate cash.
•
Inconsistent and diverse regulations, licensing and legal requirements may increase our costs because our operations must comply with a variety of laws that differ from one country to another.
•
Terrorist attacks and civil unrest in some of the countries where we do business may delay project schedules, threaten the health and safety of our employees and increase our cost of operations.
•
Challenges in managing risks inherent in international operations, such as unique labor rules and corrupt business environments may cause inadvertent violations of laws that we may not immediately detect or correct.
While we are monitoring such regulatory, geopolitical and other factors, we cannot assess with certainty what impact they may have over time on our business. Special risks associated with doing business in highly corrupt environments. The global nature of our business creates various domestic and local regulatory challenges. Our operations include projects in developing countries and countries torn by war and conflict. Many of these countries are rated poorly by Transparency International, the independent watchdog organization for government and institutional corruption around the world. Our operations outside of the U.S. are subject to the Foreign Corrupt Practices Act (FCPA) and similar anti-bribery laws in other jurisdictions which generally prohibit companies and their intermediaries from paying or offering anything of value to foreign government officials for the purpose of obtaining or retaining business, or otherwise receiving discretionary favorable treatment of any kind. In particular, we may be held liable for actions taken by our local partners, subcontractors and agents even though such parties are not always subject to our control. Any determination that we have violated the FCPA or any similar anti-bribery laws in other jurisdictions (whether directly or through acts of others, intentionally or through inadvertence) could result in sanctions that could have a material adverse effect on our business and our reputation and on our ability to secure U.S. federal government and other contracts. While our staff is trained on FCPA and other anti-corruption laws and we have procedures and controls in place to monitor compliance, situations outside of our control may arise that could potentially put us in violation of the these regulations and thus negatively impact our business. In addition, we are also subject to various international trade and export laws. Any misconduct, fraud, non-compliance with applicable governmental laws and regulations, or other improper activities by our employees, agents or partners could have a significant impact on our business, financial results and reputation and could subject us to criminal and civil enforcement actions. We face risks associated with working in locations where there are high security risks. Some of our projects are performed in locations known for their high security risks. In these high risk locations, we may incur substantial security costs to maintain the safety of our employees and work sites. Despite our best efforts, we cannot guarantee the safety of our employees and we may suffer future losses of employees and subcontractors. We face risks associated with our work sites and the maintenance of adequate safety standards. Construction and maintenance sites are inherently dangerous workplaces and place our employees in close proximity to dangers of the work site, such as mechanized equipment, moving vehicles, chemical and manufacturing process and materials. Our failure to maintain and implement adequate safety standards and procedures could have a material adverse impact on our business, financial condition and results of operations.
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Systems failures could disrupt our business and impair our ability to effectively provide our services to our customers, which could damage our reputation and adversely affect our operating results. As a global company, we are heavily reliant on computer, information and communications technology and related systems. From time to time, we may be subject to systems failures, including network, software or hardware failures, whether caused by us, third party service providers, intruders or hackers, computer viruses, natural disasters, power shortages or terrorist attacks. Such failures could cause loss of data and interruptions or delays in our or our customers’ businesses and could damage our reputation. In addition, the failure or disruption of our communications or utilities could cause us to interrupt or suspend our operations or otherwise adversely affect our business. Losses that may occur as a result of any system or operational failure or disruption may cause our actual results to differ materially from those anticipated. Our businesses could be materially and adversely affected by severe weather. Repercussions of severe weather conditions may include: •
Evacuation of personnel and curtailment of services which may be temporary in nature;
•
Increased labor and materials costs in areas impacted by weather and subsequent increased demand for labor and materials for repairing and rebuilding;
•
Weather related damage to our jobsites or facilities;
•
Inability to deliver materials to jobsites in accordance with contract schedules; and
•
Loss of productivity.
We typically remain obligated to perform our services after a natural disaster unless the contract contains a force majeure clause relieving us of our contractual obligations in such an extraordinary event. If we are not able to react quickly to force majeure, our operations may be affected significantly, which would have a negative impact on our financial condition, results of operations or cash flows. Rising inflation, interest rates and/or construction costs could reduce the demand for our services as well as decrease our profit on our existing contracts. Because a significant portion of our revenues is earned from time-and-materials type contracts, guaranteed maximum price contracts and fixed price contracts, as well as contracts that base significant financial incentives on our ability to keep costs down, we bear some or all of the risk of rising inflation with respect to those contracts. In addition, if we expand our business into markets and geographic areas where “fixed price” work is more prevalent, inflation may have a larger impact on our results of operations in the future. Therefore, increases in inflation, interest rates and/or construction costs could have a material adverse impact on our business and financial results. Inability to secure adequate bonding would impact our ability to win projects. As is customary in our industry, we are often required to provide performance and surety bonds to customers in connection with our construction, EPC and fixed price projects. These bonds indemnify the customer if we fail to perform our obligations under the contract. Failure to provide a bond on terms and conditions desired by a customer may result in an inability to compete for or win projects. Historically, we have had and continue to have good relationships with our sureties and have a strong bonding capacity. The issuance of bonds under any bonding facilities, however, is at the sureties’ sole discretion. There can be no assurance that bonds will continue to be available to us on reasonable terms. Our inability to obtain adequate bonding may result in our ineligibility to bid for construction, EPC and fixed price projects, which could have a material adverse effect on our growth and financial condition. It can be difficult or expensive to obtain the insurance we need for our business operations. As part of our business operations, we maintain insurance both as a corporate risk management strategy and to satisfy the requirements of many of our contracts. Insurance products go through market fluctuations and can become expensive and sometimes very difficult to obtain. We work with a diversified team of insurers to reduce our risk of available capacity. There can be no assurances, however, that we can secure all necessary or appropriate insurance in the future at an 15
affordable price for the required limits. Our failure to obtain such insurance could lead to uninsured losses that could materially adversely affect our results of operations or financial condition. Our present assessment of the insurance market is that there is adequate capacity to cover our insurance needs at reasonable cost. Currently our insurance and bonds are purchased from several of the world’s leading and financially stable providers often in layered insurance or co-surety arrangements. The built-in redundancy of such arrangements usually enables us to call upon existing insurance and surety suppliers to fill gaps that may arise if other such suppliers become financially unstable. Our risk management personnel continuously monitor the developments in the insurance market and financial stability of the insurance providers. Actual results could differ from the estimates and assumptions used to prepare our financial statements. In order to prepare financial statements in conformity with generally accepted accounting principles in the U.S., we are required to make estimates and assumptions as of the date of the financial statements which affect the reported values of our assets, liabilities, revenues and expenses, and disclosures of contingent assets and liabilities. Areas requiring significant estimates by us include: •
Recognition of contract revenues, costs, profit or losses in applying the percentage-of-completion method of accounting;
•
Recognition of recoveries under contract change orders or claims;
•
Collectability of billed and work-in-process unbilled accounts receivables and the need for and the amount of allowances for problematic accounts;
•
Estimated amounts for anticipated project losses, warranty costs and contract close-out costs;
•
Determination of potential liabilities under pension and other post-retirement benefit programs;
•
Accruals for self insurance programs for medical, workers compensation, general liability and professional liability;
•
Recoverability of deferred tax assets and the related valuation allowances, and accruals for uncertain tax positions;
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Stock option valuation model assumptions;
•
Accruals for other estimated liabilities;
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Employee incentive plans and stock valuation;
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Variable interest entities; and
•
Asset valuations.
We face risks associated with preserving data privacy. Because of recent advancements in technology and well-known efforts on the part of various organizations to breach data security of large companies, we face risks associated with potential failure to adequately protect critical corporate, client, and employee data which, if released, could adversely impact our client relationships, our reputation, and even violate privacy laws. As part of our business, we develop, receive and retain confidential data about our company and our clients including the U.S. federal and other governments’ classified or sensitive information. Our failure to adequately protect such data and keep the information confidential could result in significant damage to our company and our clients, and have a financial impact on our results of operations and financial condition.
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Risks Related to Our Internal Market Absence of a public market may prevent you from selling your stock and cause you to lose all or part of your investment. There is no public market for our common stock. While we intend the internal market to provide liquidity to shareholders, there can be no assurance that there will be enough orders to purchase shares to permit shareholders to sell their shares on the internal market, or that our internal trading market will be sustained in the future. The price in effect on any trade date may not be attractive enough to buyers and sellers to result in a balanced market because the price is determined by our Board of Directors based on their judgment of fair value, and not by actual market trading activity. Moreover, although CH2M HILL may participate in the internal market as a buyer of common stock if there are more sell orders than buy orders in the market, we have no obligation to engage in internal market transactions and will not guarantee market liquidity. Consequently, insufficient buyer demand could cause sell orders to be prorated, or could prevent the internal market from opening on any particular trade date. Insufficient buyer demand could cause shareholders to suffer a total loss of investment or substantial delay in their ability to sell their common stock. No assurance can be given that shareholders desiring to sell all or a portion of their shares of common stock will be able to do so. Transfer restrictions on our common stock could prevent you from selling your common stock and cause you to lose all or part of your investment. Since all of the shares of our common stock are subject to transfer restrictions, you will generally only be able to sell your common stock through our internal market on the scheduled trade dates each year. Unlike shares that are actively traded in public markets, you will not be able to sell your shares on demand. Our common stock price could decline between the time you want to sell and the time you become able to sell. For a detailed discussion of the transfer restrictions on our common stock, see “Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities” in Item 5 of this Annual Report on Form 10-K. Our stock prices are and will continue to be determined by our Board of Directors’ judgment of fair value and not by market trading activity. The prices of our common stock at each trade date are established by our Board of Directors based on the factors that are described in Item 5 of this Annual Report on Form 10-K. Our Board of Directors sets the stock price in advance of each trade date, and all trades on our internal market are transacted at the price established by our Board. The market trading activity on any given trade date, therefore, cannot affect the price on that trade date. This is a risk to you because our common stock price will not change to reflect supply of and demand for shares on a given trade date as it would in a public market. You may not be able to sell shares or you may have to sell your shares at a price that is lower than the price that would prevail if the internal market price could change on a given trade date to reflect supply and demand. Our Board of Directors endeavors to use the common stock valuation methodology that results in the stock price that represents fair value. The valuation methodology used to determine fair value is subject to change at the discretion of our Board of Directors. The limited market and transfer restrictions on our common stock, as well as restrictions in our restated articles of incorporation and bylaws, will likely have anti-takeover effects. Only our active and retired employees, directors, eligible consultants, and employee benefit plans may own our common stock and participate in our internal market. We also have significant restrictions on the transfer of our common stock other than through sales on our internal market. These limitations make it extremely difficult for a potential acquirer who does not have the prior consent of our Board of Directors to attain control of our company, regardless of the price per share an acquirer might be willing to pay and whether or not our shareholders would be willing to sell at that price. In addition, restrictions in our restated articles of incorporation and bylaws may make it more difficult for our stockholders to elect directors not endorsed by management. Future returns on our common stock may be significantly lower than historical returns. We cannot assure you that our common stock will provide returns in the future comparable to those achieved historically or that the price will not decline. Item 1B. Unresolved Staff Comments None 17
Item 2. Properties Our operations are conducted at both owned and leased properties in over 35 countries throughout the world. Our corporate headquarters are located in Englewood, Colorado, where we lease approximately 155,000 square feet of space. The lease on our corporate headquarters building expires in 2017, with an option to extend the term twice for either a ten or five year term. We believe that our existing facilities are adequate for the present needs of our business and that suitable additional or substitute space will be available as needed to accommodate any expansion of operations. Item 3. Legal Proceedings We are a party to various contractual guarantees and legal actions arising in the normal course of our business. From time to time, agencies of the U.S. government investigate whether we conduct our operations in accordance with applicable regulatory requirements. Because a large portion of our business comes from U.S. federal, state, and municipal sources, our procurement and certain other practices at times are subject to review and investigation by U.S. and state attorneys offices. Such state and U.S. government investigations, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties or could lead to suspension or debarment from future U.S. government contracting. These investigations often take years to complete and many result in no adverse action or alternatively, could result in settlement. Damages assessed in connection with and the cost of defending any such actions could be substantial. While the outcomes of pending proceedings and legal actions are often difficult to predict, our management believes that proceedings and legal actions currently pending would not result in a material adverse on our results of operations or financial condition even if the final outcome is adverse to CH2M HILL. Item 4. Removed and Reserved PART II Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities We are employee owned. As a result, our stock is only available to certain active and retired employees, directors, eligible consultants and benefit plans. There is no market for our stock with the general public. In order to provide liquidity for our shareholders, an internal market (Internal Market) is maintained through an independent broker, currently Neidiger, Tucker and Bruner, Inc. (NTB). The Internal Market enables eligible participants to offer to sell or purchase shares of our common stock on predetermined days (each, a Trade Date). The Trade Dates are determined by our Board. Generally, there are four Trade Dates each year. Currently our Board of Directors meetings are scheduled quarterly. All sales of our common stock are made at the price determined by our Board of Directors pursuant to the valuation methodology described below. All sales of common stock on the Internal Market are restricted to the following authorized buyers: •
Our employees, directors and eligible consultants
•
Trustees of the benefit plans
•
Administrator of the Payroll Deduction Stock Purchase Plan (PDSPP)
We may impose limitations on the number of shares that an individual may purchase when there are more buy orders than sell orders for a particular Trade Date. After our Board of Directors determines the stock price for use on the next Trade Date, all shareholders, employees, directors and eligible consultants will be advised as to the new stock price and the next Trade Date. Our Internal Market is managed through an independent broker, currently NTB, which acts upon instructions from the buyers and sellers to affect trades at the stock price set by our Board of Directors and in accordance with the Internal Market rules. NTB does not play a role in determining the price of our common stock and is not affiliated with us. Individual stock ownership account records are currently maintained by our in-house transfer agent.
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We may purchase shares if the Internal Market is under-subscribed. We may, but are not obligated to, purchase shares of common stock on the Internal Market on any Trade Date at the price in effect on that Trade Date, but only to the extent that the number of shares offered for sale by shareholders exceeds the number of shares sought to be purchased by authorized buyers. The decision as to whether or not we will purchase shares in the Internal Market, if the Internal Market is under-subscribed, is solely within our discretion and we will not notify investors as to whether or not we will participate prior to the Trade Date. Investors should understand that there can be no assurance that they will be able to sell their CH2M HILL stock without substantial delay or that their stock will be able to be sold at all on the Internal Market. We will consider a variety of factors including our cash position, financial performance and number of shares outstanding in making the determination as to whether to participate in an under-subscribed market. The terms of our existing unsecured revolving line of credit do not play a role in the decision as to whether to buy shares in the Internal Market. To date, no other factors have been considered by us in our decisions as to whether or not to participate in an under-subscribed market. If the aggregate number of shares offered for sale on the Internal Market on any Trade Date is greater than the number of shares sought to be purchased, shareholder offers to sell will be accepted as follows: •
If enough orders to buy are received to purchase all the shares offered by each seller selling fewer than 500 shares and at least 500 shares from each other seller, then all sell orders will be accepted up to the first 500 shares and the portion of any sell orders exceeding 500 shares will be accepted on a pro-rata basis
•
If not enough orders to buy are received to purchase all the shares offered by each seller selling fewer than 500 shares and at least 500 shares from each other seller, then the purchase orders will be allocated equally to each seller
We may sell shares if the Internal Market is over-subscribed. To the extent that the aggregate number of shares sought to be purchased exceeds the aggregate number of shares offered for sale, we may, but are not obligated to, sell authorized but unissued shares of common stock on the Internal Market at the price in effect on that Trade Date to satisfy purchase demands. The decision as to whether or not we will sell shares in the Internal Market, if the Internal Market is oversubscribed, is solely within our discretion and we will not notify investors as to whether or not we will participate prior to the Trade Date. Investors should understand that there can be no assurance that they will be able to buy as many shares as they would like on a given Trade Date. We will consider a variety of factors including our cash position, financial performance and number of shares outstanding in making the determination as to whether to participate in an over-subscribed market. The terms of our existing unsecured revolving line of credit do not play a role in the decision as to whether to sell shares in the Internal Market. To date, no other factors have been considered by us in our decisions as to whether or not to participate in an over-subscribed market. If the aggregate purchase orders exceed the number of shares available for sale and we choose not to issue additional shares, the following prospective purchasers will have priority to purchase shares, in the order listed: •
Administrator of the PDSPP
•
Trustees of the 401(k) Plan
•
Internal Market participants on a pro-rata basis (including purchases through pre-tax and after-tax deferred compensation plans)
In 2010, all sellers on the Internal Market, other than us and the trustees of the 401(k) Plan, paid NTB a commission equal to two percent of the proceeds from such sales. The commission rate changed effective on February 11, 2011, to 3 tenths of one percent (.3%) of proceeds from such sales. Employees who sell their common stock upon retirement from CH2M HILL will have the option to sell the common stock they own on the Internal Market and pay a commission on the sale or to sell to us without paying a commission. In the latter case, the employee will sell their common stock to us at the price in effect on the date of their termination in exchange for a four-year note at a market interest rate determined biannually. No commission is paid by buyers on the Internal Market.
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Price of our Common Stock Our Board of Directors will determine the price, which is intended to be the fair value, of the shares of our common stock to be used for buys and sells on each Trade Date pursuant to the valuation methodology described below. The price per share of our common stock generally is set as follows: Share Price = [(7.8 × M × P) + (SE)] / CS In order to determine the fair value of the common stock in the absence of a public trading market, our Board of Directors felt it appropriate to develop a valuation methodology to use as a tool to determine a price that would be a valid approximation of the fair value. In determining the fair value stock price, our Board of Directors believes that the use of a going concern component (i.e., net income, which we call profit after tax, as adjusted by the market factor) and a book value component (i.e., total shareholders’ equity) is important. Our Board of Directors believes that the process we have developed reflects modern equity valuation techniques and is based on those factors that are generally used in the valuation of equity securities. The existence of an over-subscribed or under-subscribed market on any given Trade Date will not affect the stock price on that Trade Date. However, our Board of Directors, when determining the stock price for a future Trade Date, may take into account the fact that there have been under-subscribed or over-subscribed markets on prior Trade Dates. Market Factor (“M”). “M” is the market factor, which is subjectively determined in the sole discretion of our Board of Directors. In determining the market factor, our Board of Directors will take into account factors the directors considered to be relevant in determining the fair value of our common stock, including: •
The market for publicly traded equity securities of companies comparable to us
•
The merger and acquisition market for companies comparable to us
•
The prospects for our future performance
•
General economic conditions
•
General capital market conditions
•
Other factors our Board of Directors deem appropriate
Our Board of Directors has not assigned predetermined weights to the various factors it may consider in determining the market factor. A market factor greater than one would increase the price per share and a market factor less than one would decrease the price per share. In its discretion, our Board of Directors may change, from time-to-time, the market factor used in the valuation process. Our Board of Directors could change the market factor, for example, following a change in general market conditions that either increased or decreased stock market equity values for companies comparable to us, if our Board of Directors felt that the market change was applicable to our common stock as well. Our Board of Directors will not make any other changes in the method of determining the price per share of common stock unless in the good faith exercise of its fiduciary duties and, if appropriate, after consultation with its professional advisors, our Board of Directors determines that the method for determining the price per share of common stock no longer results in a stock price that reasonably reflects our fair value on a per share basis. As part of the total mix of information that our Board of Directors considers in determining the “M” factor, our Board of Directors also may take into account company appraisal information prepared by The Environmental Financial Consulting Group, Inc. (EFCG), an independent appraiser engaged by the trustees of our benefit plans. In setting the stock price, our Board of Directors compares the total of the going concern and book value components used in the valuation methodology to the enterprise value of the Company in the appraisal provided by EFCG. If, after such comparison, our Board of Directors concludes that its initial determination of the “M” factor should be re-examined, our Board of Directors may review, and if appropriate, adjust the “M” factor. Since the inception of the program on January 1, 2000, the total of the going concern and book value components used by our Board of Directors in setting the price for our stock has always been within the enterprise appraisal range provided quarterly by EFCG. 20
This “M” component of our stock price valuation remained unchanged since the inception of the current ownership program in 2000 until the November 9, 2007 valuation, when it was changed by the Board of Directors from 1.0 to 1.2. Profit After Tax (“P”). “P” is profit after tax, otherwise referred to as net income, for the four fiscal quarters immediately preceding the Trade Date. Our Board of Directors, at its discretion, may exclude nonrecurring or unusual transactions from the calculation. Nonrecurring or unusual transactions are developments that the market would not generally take into account in valuing an equity security. A change in accounting rules, for example, could increase or decrease net income without changing the fair value of our common stock. Similarly, such a change could fail to have an immediate impact on the value of our common stock, but still have an impact on the value of our common stock over time. As a result, our Board of Directors believes that in order to determine the fair value of our common stock, it needs the ability to review unusual events that affect net income. In the past, our Board of Directors has excluded unusual items from the calculation of “P”, including nonrecurring revenue from Kaiser-Hill Company, LLC and a write off of an investment in an international telecommunications company. Because “P” is calculated on a four quarter basis, an exclusion impacts the calculation of fair value for four consecutive quarters. Our Board of Directors may determine to exclude other future unusual or non-recurring items from the calculation of “P”. Total Shareholders’ Equity (“SE”). “SE” is total shareholders’ equity, which includes intangible items, as set forth on our most recent available quarterly or annual financial statements. Our Board of Directors, at its discretion, may exclude from the Shareholders’ Equity parameter nonrecurring or unusual transactions that the market would not generally take into account in valuing an equity security. The exclusions from Shareholders’ Equity will generally be those transactions that are non-cash and are reported as “accumulated other comprehensive income (loss)” on the face of our consolidated balance sheet. For example, our Board of Directors excluded, and will continue to exclude, a non-cash adjustment to shareholders’ equity related to the accounting for our defined benefit pension and other postretirement plans. Because this adjustment is unusual and will fluctuate from period to period, our Board of Directors excluded it from the “SE” parameter for stock valuation purposes. Similarly, other items that are reported as components of “accumulated other comprehensive income (loss)” are excluded from “SE” and include items such as unrealized gains/losses on securities and foreign currency translation adjustments. Common Stock Outstanding (“CS”). “CS” is the weighted-average number of shares of our common stock outstanding during the four fiscal quarters immediately preceding the Trade Date, calculated on a fully-diluted basis. By “fully-diluted” we mean that the calculations are made as if all outstanding options to purchase our common stock had been exercised and other “dilutive” securities were converted into shares of our common stock. In addition, an estimate of the weighted-average number of shares that we reasonably anticipate will be issued under our stock-based compensation programs and employee benefit plans is included in this calculation. The “CS” calculation is done on a fully-diluted basis since we believe that taking into account the issuance of all securities that will affect the per share value is a better representation of the share value over time. We have more than a 30year history in making annual grants of stock-based compensation. Therefore, we believe that we have sufficient information to reasonably estimate the number of such “to be issued” shares. This approach avoids an artificial variance in share value during the first calendar quarter of each year when the bulk of shares of our common stock are issued by us pursuant to our stock-based compensation programs. The following table shows a comparison of the “CS” value actually used by our Board of Directors to calculate stock prices on the dates indicated versus the year-to-date weighted-average number of shares of common stock as reflected in the diluted earnings per share calculation in our financial statements for the past three years.
(in thousands) Effective Date
CS
May 8, 2008 ................................................................................................................. August 15, 2008 ........................................................................................................... November 7, 2008 ....................................................................................................... February 13, 2009 ........................................................................................................ May 7, 2009 ................................................................................................................. August 7, 2009 ............................................................................................................. November 6, 2009 ....................................................................................................... February 12, 2010 ........................................................................................................ May 6, 2010 ................................................................................................................. August 13, 2010 ........................................................................................................... November 12, 2010 ..................................................................................................... February 11, 2011 ........................................................................................................ 21
35,617 35,858 35,929 35,735 35,314 34,931 34,608 34,424 34,353 34,178 33,903 33,450
YTD WeightedAverage Number of Shares as reflected in Diluted EPS calculation
34,440 34,568 34,545 34,376 32,396 32,533 32,577 32,599 32,305 32,356 32,270 32,163
Constant 7.8. In the course of developing this valuation methodology, it became apparent to our Board of Directors that a multiple would be required in order for the stock price derived by this methodology to approximate our historical, preInternal Market stock price. Another objective of our Board of Directors when developing the valuation methodology was to establish the fair value of our common stock using a market factor of 1.0. We believe that it was important to begin the Internal Market program with an “M” factor equal to 1.0 in order to make it easier for shareholders to understand future changes, if any, to the market factor. Therefore, the constant 7.8 was introduced into the formula. The constant 7.8 is the multiple that our Board of Directors determined necessary (i) for the new stock price to approximate our historical stock price derived using the preInternal Market formula as well as (ii) to allow the use of the market factor of 1.0 at the beginning of the Internal Market program. We intend to announce the new stock price and the Trade Date approximately four weeks prior to each Trade Date. The information will be delivered by the broker to all employees, eligible consultants and eligible participants in the internal market. In addition, we will file a Current Report on Form 8-K disclosing the new stock price and all components used by our Board of Directors in determining such price in accordance with the valuation methodology described above. We will also distribute the most current prospectus for our common stock and our audited annual financial statements to all shareholders, as well as other employees and eligible consultants, and to participants in the Internal Market through the employee benefit plans. Such information will be distributed at the same time as our annual reports and proxy information. Solicitations are distributed for voting instructions from shareholders and participants in the employee benefit plans each year. Current Price of Our Common Stock Starting in 2000, with the introduction of the Internal Market and its quarterly trades, our Board of Directors reviews the common stock price quarterly using the valuation methodology described above to set the price for the common stock. The prices of our common stock for the past three years, along with the various factors and values used by our Board of Directors to determine such stock prices on each date, are as follows:
Effective Date
M
May 8, 2008 ................................ August 15, 2008 .......................... November 7, 2008 ...................... February 13, 2009 ....................... May 7, 2009 ................................ August 7, 2009 ............................ November 6, 2009 ...................... February 12, 2010 ....................... May 6, 2010 ................................ August 13, 2010 .......................... November 12, 2010 .................... February 11, 2011 .......................
1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2
P (in thousands)
SE (in thousands)
69,624 68,031 66,816 71,918 74,295 82,561 93,047 90,816 93,067 105,385 106,297 106,848
463,434 464,561 480,313 438,318 453,760 474,858 544,759 544,913 541,940 568,233 581,344 563,649
CS (in thousands)
35,617 35,858 35,929 35,735 35,314 34,931 34,608 34,424 34,353 34,178 33,903 33,450
Price Per Share
31.31 30.71 30.77 31.10 32.54 35.72 40.91 40.52 41.13 45.49 46.49 46.75
Percentage Price Increase (Decrease)
3.3% (1.9)% 0.2% 1.1% 4.6% 9.8% 14.5% (1.0)% 1.5% 10.6% 2.2% 0.6%
Changes to Commission Charged to Sellers on the Internal Market Effective February 11, 2011, CH2M HILL and Neidiger Tucker Bruner (“NTB”) agreed that all sellers on the internal market, other than CH2M HILL and the trustees of CH2M HILL’s benefit plans will pay NTB a commission equal to 3 tenths of one percent (.3%) of proceeds from such sales. It is a reduction from the previous commission level of two percent (2%). No commission is paid by buyers on the internal market.
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Holders of Our Common Stock As of February 11, 2011, there were 8,069 holders of record of our common stock. As of such date, all of our common stock of record was owned by our current and retired employees, directors, eligible consultants, and by our various employee benefit plans. Common stock is held in a trust for each of our employee benefit plans and each trust is considered one holder of record of our common stock. Dividend Policy We have never declared or paid any cash dividends on our common stock and no cash dividends are contemplated on our common stock in the foreseeable future. Issuer Purchases of Equity Securities The following table covers the purchases of our securities by CH2M HILL during the quarter ended December 31, 2010:
Total Number of Shares
Period
October(a) ............................................................ November ............................................................ December(a)(b) .................................................... Total ................................................................
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Average Price Paid per Share
1,983 — 742,964 744,947
$43.53 — $46.49 $46.48
(a)
Shares purchased by CH2M HILL from terminated employees.
(b)
Shares purchased by CH2M HILL in the Internal Market.
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
— — — —
— — — —
Item 6. Selected Financial Data The selected financial data presented below under the captions “Selected Statement of Operations Data” and “Selected Balance Sheet Data” for, and as of the end of, each of the years in the five-year period ended December 31, 2010, are derived from the consolidated financial statements of CH2M HILL Companies, Ltd. and subsidiaries, which consolidated financial statements have been audited by KPMG LLP, an independent registered public accounting firm. The consolidated financial statements as of December 31, 2010 and 2009, and for each of the years in the three-year period ended December 31, 2010, and the report thereon, are included in Item 15 of this Annual Report on Form 10-K. The following information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7, and the consolidated financial statements and related notes thereto, included in this Annual Report on Form 10-K. The consolidated financial statements and selected financial data below reflect the adoption of new accounting standards related to variable interest entities; accounting for non-controlling interests in consolidated financial statements; employee benefit plan expenses; income taxes; and acquisitions which affect the comparability of information presented. Certain prior years’ amounts have been reclassified to conform to the current year presentation.
2010
($ in millions, except per share data)
Selected Statement of Operations Data: Revenues ............................................................................... Operating income.................................................................. Net income attributable to CH2M HILL............................... Net income per common share Basic ................................................................................. Diluted .............................................................................. Selected Balance Sheet Data: Total assets ........................................................................... Long-term debt, including current maturities ....................... Total shareholders’ equity ....................................................
$5,422.8 174.8 93.7
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Years Ended December 31, 2009 2008 2007
$5,499.3 $5,589.9(a) 174.5(c) 89.2 103.7 32.1
2006
$4,376.2 77.2 66.0
$4,006.9 64.2 38.9
$2.98 $2.91
$3.25 $3.18
$0.96 $0.93
$2.01 $1.97
$1.20 $1.18
$1,967.1 37.6 554.2
$1,948.0 52.3(d) 524.8
$1,971.8 175.9 386.7
$1,909.9 197.8(b) 464.5
$1,279.5 0.6 368.9
(a)
The majority of the increase in revenues for the year ended December 31, 2008 relates to a full year of revenue recognized from the operations acquired of VECO Corporation (VECO) and Trigon EPC, LLC (Trigon).
(b)
The majority of the increase in long-term debt outstanding at December 31, 2007 relates to the debt incurred to fund the acquisitions of VECO and Trigon and the debt assumed in those business combinations.
(c)
The increase in 2009 was primarily attributable to the gain of $58.2 million on the sale of certain assets of our Enterprise Management Solutions (EMS) business.
(d)
During 2009, the net repayments of debt were approximately $123.5 million.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Business Summary We are a large employee owned professional engineering services firm providing engineering, construction, consulting, design, design-build, procurement, operations and maintenance, program management and technical services to U.S. federal, state, municipal and local government agencies, national governments, as well as private industry, around the world. Founded in 1946, we have approximately 23,000 employees in offices worldwide. Our revenues are dependent upon our ability to attract and retain qualified and productive employees, identify business opportunities, allocate our labor resources to profitable markets, secure new contracts, execute existing contracts, and maintain existing client relationships. Moreover, as a professional services company, the quality of the work generated by our employees is integral to our revenue generation. We believe we provide our clients with innovative project delivery using cost-effective approaches and advanced technologies. We continuously monitor acquisition and investment opportunities that will expand our portfolio of services, markets and geographic reach, add value to the projects undertaken for clients, or enhance our capital strength. We believe that we are well positioned geographically, technically and financially to compete anywhere in the world in the key markets we have elected to pursue. We provide services to our clients through three operating segments—Government, Environment and Nuclear (GEN), Facilities and Infrastructure (F&I) and Energy, which are aligned with the types of clients we serve. Our GEN segment generally provides a comprehensive range of services to various U.S. federal government agencies, other national governments, and to private sector clients. Our F&I segment generally provides a comprehensive range of services to various industry segments, and U.S. and other countries’ state, local and provincial governments. Our Energy segment generally provides a comprehensive range of services to private sector clients. In order to improve our competitiveness, client service, and financial strength, effective January 1, 2011, we have reorganized our reporting structure under which our chief operating decision maker will be making strategic and operating decisions with regard to assessing performance and allocating resources. We believe this new organizational structure will help us deal with global economic and industry challenges, and better position us for a solid future. As a result, our water business will be reported with the Energy segment creating the Energy and Water segment. Additionally, our Industrial Systems business will be split based upon its operations and combined within our Environmental Services business and Water business and thus reflected in the GEN and Energy and Water segments, respectively. These changes will be reflected beginning January 1, 2011. Acquisitions We continuously monitor acquisition and investment opportunities that will expand our portfolio of services, add value to the projects undertaken for clients, or enhance our capital strength. Mergers and acquisitions in our industry have resulted in a group of larger firms that offer a full complement of single-source services including studies, designs, construction, operations, maintenance and in some instances, facility ownership. We have also seen movement towards longer-term contracts for the expanded array of services, e.g., 5 to 20 year contracts. These larger, longer, full-service contracts require us to have substantially greater financial capital than has historically been necessary to remain competitive. There can be no assurances that we can continue to be successful when competing against companies in our industry who
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have greater access to capital. We expect to continue to see consolidation of our competitors which may result in challenges for our business in the future. Sale of Operating Assets During the third quarter of 2009, we completed the sale of certain assets of our Enterprise Management Solutions (EMS) business. We recorded a pre-tax gain of $58.2 million. The operating results of our EMS business are reflected in the GEN operating segment until the date of sale. Summary of Operations Results of Operations for the Year Ended December 31, 2010 Compared to 2009 2010
($ in millions)
Revenue
Government, Environment and Nuclear ........................ Facilities and Infrastructure ..... Energy ..................................... Other ....................................... Total ........................................
$2,197.6 2,004.3 1,220.9 — $5,422.8
Equity in Earnings
$46.9 16.6 5.0 — $68.5
2009 Operating Income (Loss)
$87.7 91.6 25.5 (30.0) $174.8
Revenue
$1,939.1 1,947.4 1,612.8 — $5,499.3
Equity in Earnings
$44.8 18.5 2.2 — $65.5
Change Operating Income (Loss)
$136.0 71.0 14.5 (47.0) $174.5
Revenue
$258.5 56.9 (391.9) — $(76.5)
13.3% 2.9% (24.3)%
Equity in Earnings
$2.1 (1.9) 2.8 — $3.0
Operating Income (Loss)
$(48.3) 20.6 11.0 17.0 $0.3
(35.5)% 29.0% 75.9% (36.2)%
Government, Environment and Nuclear Revenue increased for the year ended December 31, 2010, compared to the same period in the prior year by $258.5 million or 13.3%. The increase in revenue is primarily due to an increased volume of contracts in our nuclear business primarily generated as a result of the American Recovery and Reinvestment Act to accelerate environmental cleanups. In addition, our work under a nuclear remediation project in Washington began during 2009 and thus volumes increased in 2010 in comparison to 2009. The increase is partially offset by lower volumes in our GF&I business due to increased domestic competition, a decrease in federal spending internationally and the completion of work we performed on the recovery efforts on Hurricane Ike in 2009. Revenue volumes in our environmental markets remained relatively consistent with those in the prior year. Operating income decreased for the year ended December 31, 2010 compared to the same period in the prior year by $48.3 million or 35.5%. During 2009, we recognized a $58.2 million gain on the sale of EMS. Excluding the sale of EMS, the operating income increased approximately $9.9 million. The increase is primarily due to the fluctuations in revenues discussed above. In addition, we reduced our overhead spending significantly as well as general and administrative costs associated with managing our major projects within the segment. Facilities and Infrastructure Revenue increased for the year ended December 31, 2010, compared to last year by $56.9 million. The increase is primarily attributable to the growing demand in our water design build business in North America, Australia and Europe. Additionally, we have experienced increased volumes in our operations and management business due to the transition of certain design-build-operate water projects into the operation phases of the projects and increased scope at certain of our facility services projects. Our Industrial and Advanced Technology business experienced revenue growth primarily as a result of a large construction project in Malaysia. These increases were partially offset by reduced workload in our transportation consulting markets due to the economic environment and delays in project awards. Operating income increased for the year ended December 31, 2010, compared to the prior year by $20.6 million or 29.0%. The increase is primarily associated with the increased revenues discussed above. Operating margins were also positively impacted by the successful negotiation of change orders during 2010 on a transportation construction project and a design-build-operate water project. Additionally, our operating income in 2009 was negatively impacted by significant write offs of uncollectible receivables on two projects in the Middle East. These increases to 2010 operating income were partially offset by a decrease in our Industrial and Advanced Technology business margins; however, we underwent significant overhead cost reduction efforts throughout 2010 to better align our overhead structure within this business to its current backlog.
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Energy Revenue decreased for the year ended December 31, 2010, compared to last year by $391.9 million or 24.3%. The decrease in revenue is primarily attributable to a decrease in activity within the oil and gas businesses due primarily to constrained capital spending and a continued highly competitive market. In addition, certain Alaska construction activities neared completion in 2010 and thus experienced a decrease in revenues from 2009. Revenues within our power business have slowed as large projects also have been completed or are nearing completion during 2010 as well as an overall decline in the number of contract awards in this business sector. These decreases were slightly offset by an increase in our industrial systems business volumes. Operating income increased for the year ended December 31, 2010 compared to 2009 by $11.0 million, or 75.9%. Although our operating income was negatively impacted by the overall decline in our revenues discussed above, we were successful in the settlement of change orders within our power business during 2010 which offset this decline. In addition, our Energy business had $17.2 million less of amortization expense from intangibles related to the VECO acquisition, significantly reduced overhead spending in response to the decline in market conditions and implemented cost control measures which increased our operating income from the prior year. Results of Operations for the Year Ended December 31, 2009 Compared to 2008 2009
($ in millions)
Revenue
Equity in Earnings
Government, Environment and Nuclear ................................... Facilities and Infrastructure ......... Energy ......................................... Other ........................................... Total ............................................
$1,939.1 1,947.4 1,612.8 — $5,499.3
$44.8 18.5 2.2 — $65.5
2008 Operating Income (Loss)
Change
Revenue
Equity in Earnings
Operating Income (Loss)
$136.0 1,668.9 71.0 1,986.6 14.5 1,934.4 (47.0) — $174.5 $5,589.9
$41.3 (12.1) 5.0 — $34.2
$80.6 31.9 50.9 (74.2) $89.2
Revenue
$270.2 16.2% (39.2) (2.0)% (321.6) (16.6)% — $(90.6)
Equity in Earnings
$3.5 30.6 (2.8) — $31.3
Operating Income (Loss)
$55.4 68.7% 39.1 122.6% (36.4) (71.5)% 27.2 36.7% $85.3
Government, Environment and Nuclear Revenue increased for the year ended December 31, 2009, compared to the same period in the prior year by $270.2 million or 16.2%. The increase in revenue is substantially due to higher volume of work in Texas supporting Hurricane Ike recovery. Also contributing to the increase in revenues is the award of a domestic nuclear contract and the award of a program management project in the United Arab Emirates, partially offset by delays in finalizing newly awarded governmental contracts in our continental U.S. design build markets. Additionally, the revenue increase was partially offset by decreased revenues in the enterprise management solutions business due to the sale of certain assets of the business during the second quarter 2009. Operating income increased during the year ended December 31, 2009, compared to last year, by $55.4 million or 68.7%. The increase is due to the $58.2 million gain on the sale of certain operating assets of our EMS business. Excluding this gain, operating income decreased slightly from the prior year due to the completion of two major nuclear projects in the second half of 2009 which generated operating income during the full year in 2008. This decrease was partially offset by the startup of a domestic and an international nuclear project associated with the revenues discussed above. Facilities and Infrastructure Revenue decreased for the year ended December 31, 2009, compared to last year by $39.2 million or 2%. The decrease is largely attributable to significant decreases in both full service and traditional service revenue in the manufacturing and life sciences markets. Additionally, the operations and maintenance business experienced delays and scope reductions on several projects as a result of budget constraints at municipal clients. The decrease is partially offset by growth in our North American consulting and international markets. North American consulting growth is due in part to design and program management services for municipal clients in the northeast and southwest United States, while international growth was driven primarily by large program management projects located in the United Kingdom and United Arab Emirates. Operating income increased significantly for the year ended December 31, 2009 compared to the prior year by $39.1 million or 122.6%. During the second quarter of 2008, a significant loss was recognized on a transportation project within one of its joint ventures that is now substantially complete. The increase is also attributable to the increased volume 26
within our transportation business discussed above. The increase in operating income is partially offset by schedule and cost impacts on two projects in the Middle East within our transportation and water businesses. Energy Revenue decreased for the year ended December 31, 2009, compared to last year by $321.6 million or 16.6%. The decrease in revenue is primarily attributable to a decrease in full service revenue due to a slow down in economic activity and depressed oil and gas prices. Also contributing to the decrease were delays and contract value reductions in certain businesses and the cancellation of a project in Canada. The decrease is partially offset by increased volume in Alaska and the related work on the North Slope within our energy and chemicals business as well as two engineering-procurement-construction (EPC) power projects awarded during 2007 that are now in the peak of their construction cycles. Operating income decreased for the year ended December 31, 2009 compared to 2008 by $36.4 million, or 71.5%. The decrease in operating income is primarily attributable to the delays, contract value reduction and the project cancellation as discussed above which was partially offset by income derived from the two engineering, procurement and construction (EPC) projects discussed above. Other Other primarily includes corporate expenses which represent centralized management costs that are not allocable to individual operating segments and primarily include expenses associated with administrative functions such as executive management, legal, treasury, tax, and general business development efforts. Corporate expenses for the year ended December 31, 2010 were $30.0 million compared to $47.0 million at December 31, 2009, and $74.2 million in 2008. The overall decrease is primarily attributable to our continued overhead cost reduction efforts that began in the fourth quarter of 2008. Income Taxes The income tax provisions for the years ended December 31, 2010, 2009 and 2008 are as follows: Income Tax Provision
($ in millions)
2010 ..................................................................................................... 2009 ..................................................................................................... 2008 .....................................................................................................
$53.8 $46.4 $27.5
Effective Tax Rate
36.5% 30.9% 46.2%
The effective tax rate for the year ended December 31, 2010 was 36.5% compared to 30.9% for the same period in the prior year. The current year rate was negatively impacted by a decrease in the Section 199 domestic production deduction, a significant decrease in research and experimentation credit impacts, and a decrease in officer’s life insurance benefits when compared to the prior year. These negative impacts were partially offset by a decrease in valuation allowances when compared to 2009, due to improved operating results of foreign operations. The significant decrease in the effective tax rate for the year ended December 31, 2009 compared to 2008 was primarily due to recognition of benefits from statute expirations, taxing jurisdiction settlements and by improved foreign operating results in 2009. Our effective tax rate continues to be impacted by deferred compensation, unrealized foreign net operating losses in selected countries, and disallowed portions of meals and entertainment expenses. We must assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our tax provision by recording a valuation allowance for the deferred tax assets that we estimate will not ultimately be recoverable. As of December 31, 2010 and 2009, we reported a valuation allowance of $27.7 million and $26.0 million, respectively, related primarily to the reserve of certain foreign net loss carryforwards. Liquidity and Capital Resources Our primary sources of liquidity are cash flows from operations and borrowings under our unsecured revolving line of credit. Our primary uses of cash are to fund our working capital, capital expenditures and purchases of common stock presented on our internal market. Based on our total cash and credit capacity available at December 31, 2010 of $803.4 million, we believe that we have sufficient resources to fund our operations, any future acquisition and capital expenditure requirements, as well as purchases of common stock presented on our internal market, should we choose to do so, for the next 12 months and beyond. 27
The following table reflects our available capacity as of December 31, 2010 (in millions): Cash on hand ................................................................................................ Available for sale securities.......................................................................... Line of credit capacity .................................................................................. Outstanding borrowings ............................................................................... Issued letters of credit................................................................................... Net credit capacity available .................................................................... Total available capacity ............................................................................
$290.4 2.4 $600.0 — (89.4) 510.6 $803.4
Billings and collections on accounts receivable can impact our operating cash flows. We continuously monitor collection efforts and assess the allowance for doubtful accounts. Based on this assessment at December 31, 2010, we have deemed the allowance for uncollectible accounts to be adequate; however, future economic conditions may adversely impact some of our clients’ ability to pay our bills or the timeliness of their payments. Consequently, it may also impact our timing of cash receipts necessary to meet our operating needs. Cash generated in investing activities was $1.7 million in the twelve months ended December 31, 2010 compared to $16.2 million generated in investing activities for the same period in 2009. The major uses of cash in investing activities relate to payments made for the purchase of property, plant, and equipment and investments in our joint ventures. We spent $26.9 million and $37.7 million on capital expenditures in 2010 and 2009, respectively. The net cash flows invested in our unconsolidated affiliates decreased $13.2 million from December 31, 2009 to December 31, 2010. The cash increase as a result of the consolidation of variable interest entities was $32.7 million. During 2010 we purchased $37.1 million of marketable securities of Scott Wilson Group plc, a design and engineering firm headquartered in the United Kingdom. We subsequently sold the securities for $43.6 million. In addition, during 2009, we received proceeds of $71.0 million for the sale of certain operating assets from our EMS business in the GEN segment. In connection with the acquisition of VECO, the purchase agreement established a holdback contingency of $70.0 million for tax indemnifications and the potential future payment of certain contingencies that may arise within three years after the date of acquisition. Any amounts remaining after payments for these indemnifications and contingencies are payable to the sellers of VECO. Since the date of acquisition, we have made distributions to the sellers of VECO and paid expenses on their behalf which were deemed distributions of the holdback contingency. At December 31, 2010 and 2009, the outstanding balance payable under the holdback contingency was $46.7 million and $49.1 million, respectively. Amounts outstanding under the holdback contingency as of December 31, 2010 represent disputed contingent claims and tax indemnifications which have not been resolved. Upon resolution of the outstanding items, we will likely incur costs which will be paid out of the holdback funds with any remaining amount being remitted to the sellers. We finance our operations, acquisitions and capital expenditures using a variety of capital vehicles. On December 6, 2010, we entered into a Credit Agreement (the “Credit Agreement”) providing for an unsecured revolving credit facility in an amount of up to $600 million. Subject to certain conditions, at any time prior to the date that is thirty days before the maturity date of the Credit Agreement, we will be able to invite existing and new lenders to increase the size of the revolving credit facility by up to $100 million, for a maximum aggregate revolving credit facility of $700 million. The revolving credit facility has a subfacility for the issuance of standby letters of credit in a face amount up to $300 million, a subfacility of up to $300 million for multicurrency borrowings and a subfacility of up to $20 million for swingline loans. Revolving loans under the Credit Agreement bear interest, at the Company’s option, at a rate equal to either (i) the base rate plus a margin based on the ratio of CH2M HILL’s consolidated leverage ratio or (ii) the LIBOR rate, based interest periods of one, two, three or six months, plus a margin based on the ratio of our consolidated leverage ratio. The base rate is equal to the greater of (i) the Federal Funds Rate, as published from time to time by the Federal Reserve Bank of New York, plus 0.5%, (ii) the swingline lender’s prime rate in effect from time to time, or (iii) the one-month LIBOR rate in effect from time to time, plus 1.0%. Our consolidated leverage ratio on any date is the ratio of our consolidated total funded debt to our consolidated earnings before interest, taxes, depreciation and amortization for the preceding four fiscal quarters. There can be no assurance that the capacity under the credit facility will be adequate to fund future operations or acquisitions the Company may pursue from time to time. Depending on the applicable terms and conditions on new debt or equity offerings compared to the opportunity cost of using our internally generated cash, we may either choose to finance new opportunities using leverage in the form of our Credit Agreement, or other debt. In some instances we may use a combination of one or more of these financing mechanisms. As of December 31, 2010, our total outstanding debt obligations were approximately $37.6 million. There was not an outstanding balance on the Credit Agreement. The majority of these obligations relate to the issuance of notes payable and mortgages related to property, plant and equipment. 28
At December 31, 2010, issued and outstanding letters of credit of $89.4 million were reserved against the borrowing base of the Credit Agreement, compared to $78.4 million at December 31, 2009. For the twelve months ended December 31, 2010, repurchases of stock were $137.2 million compared to $91.3 million for the same period in the prior year. Additionally, the net repayments of debt were approximately $14.2 million during 2010 compared to approximately $123.5 million during 2009. For additional information regarding repurchases of stock and our Internal Market, see “Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities” in Item 5 of this Annual Report on Form 10-K. Depreciation and Amortization Depreciation and amortization expense for the year ended December 31, 2010 of $62.3 million was $18.6 million less than the same period in 2009. We recognized $52.1 million and $53.5 million of depreciation expense related to fixed assets during 2010 and 2009, respectively. We recognized $10.2 million and $27.4 million of amortization expense related to intangible assets during 2010 and 2009, respectively. A significant amount of the depreciation and amortization expense is attributable to fixed assets and intangible assets held in our Energy segment. Off-Balance Sheet Arrangements We have interests in multiple joint ventures, some of which are considered variable interest entities. These entities facilitate the completion of contracts that are jointly owned with our joint venture partners. These joint ventures are formed to leverage the skills of the respective partners and include consulting, construction, design, project management and operations and maintenance contracts. Our risk of loss on joint ventures is similar to what the risk of loss would be if the project was self-performed, other than the fact that the risk is shared with our partners. There were no substantial changes to other off-balance sheet arrangements or contractual commitments during the twelve months ended December 31, 2010. Aggregate Commercial Commitments We maintain a variety of commercial commitments that are generally made available to provide support for various provisions in engineering and construction contracts. Letters of credit are provided to clients in the ordinary course of the contracting business in lieu of retention or for performance and completion guarantees on engineering and construction contracts. We post surety and bid bonds, which are contractual agreements issued by a surety, for the purpose of guaranteeing our performance on contracts and to protect owners and are subject to full or partial forfeiture for failure to perform obligations arising from a successful bid. We also carry substantial premium paid, traditional insurance for our business risks including professional liability and general casualty insurance and other coverage which is customary in our industry. We believe that we will be able to continue to have access to professional liability and general casualty insurance, as well as bonds, with sufficient coverage limits, and on acceptable financial terms necessary to support our business. The cost of such coverage has remained stable during 2010 and is expected to continue to be stable in the foreseeable future. See “Risk Factors—It can be difficult or expensive to obtain the insurance we need for our business operations” in Item 1A of this Annual Report on Form 10-K for additional information. Our risk management personnel continuously monitor the developments in the insurance market. The financial stability of the insurance and surety providers is one of the major factors that we take into account when buying our insurance coverage. Currently our insurance and bonds are purchased from several of the world’s leading and financially stable providers often in layered insurance or co-surety arrangements. The built-in redundancy of such arrangements usually enables us to call upon existing insurance and surety suppliers to fill gaps that may arise if other such suppliers become financially unstable.
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Contractual Obligations Contractual obligations outstanding as of December 31, 2010 are summarized below: Amount of Commitment Expiration Per Period ($ in millions) Contractual Obligations
Letters of credit ........................................... Total debt .................................................... Interest payments ........................................ Operating lease obligations ......................... Surety and bid bonds .................................. Total ........................................................
Less than 1 Year
1-3 Years
$67.5 13.9 1.9 115.3 1,019.4 $1,218.0
$21.2 13.0 1.8 184.3 327.2 $547.5
4-5 Years
$0.7 3.9 1.1 129.2 164.0 $298.9
Over 5 Years
$— 6.8 1.0 102.6 — $110.4
Total Amount Committed
$89.4 37.6 5.8 531.4 1,510.6 $2,174.8
Critical Accounting Policies Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The preparation of these financial statements requires us to make estimates and judgments that affect both the results of operations as well as the carrying values of our assets and liabilities. Some of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. We base estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities as of the date of the financial statements that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Although our significant accounting policies are described in the Notes to Consolidated Financial Statements in Item 15 of this Annual Report on Form 10-K, below is a summary of our most critical accounting policies. Revenue Recognition We earn our revenues from different types of services under a variety of different types of contracts, including costplus, fixed-price and time-and-materials. We evaluate contractual arrangements to determine how to recognize revenue. We recognize revenue and profit for most of our contracts on the percentage-of-completion method where progress towards completion is measured by relating the actual cost of work performed to date to the current estimated total cost of the respective contract. In making such estimates, judgments are required to evaluate potential variances in schedule, the cost of materials and labor, productivity, liability claims, contract disputes, or achievement of contract performance standards. Change orders are included in total estimated contract revenue when it is probable that the change order will result in an addition to contract value and can be reliably estimated. Losses on construction and engineering contracts in process are recognized in their entirety when the loss becomes evident and the amount of loss can be reasonably estimated. We have a history of making reasonable estimates of the extent of progress towards completion, total contract revenue and total contract costs on our engineering and construction contracts. However, due to uncertainties inherent in the estimation process, actual total contract revenue and completion costs can vary from estimates. Below is a description of the three basic types of contracts from which we may earn revenues using the percentageof-completion method. Cost-Plus Contracts. Cost-plus contracts can be cost plus a fixed fee or rate, or cost plus an award fee. Under these types of contracts, we charge our clients for our costs, including both direct and indirect costs, plus a fixed negotiated fee or award fee. We generally recognize revenue based on the actual labor costs and non-labor costs we incur, plus the portion of the fixed fee or award fee we have earned to date. If the actual labor hours and other costs we expend are lower than the total number of hours and other costs we have estimated, our revenues related to cost recoveries from the project will be lower than originally estimated. If the actual labor hours and other costs we expend exceed the original estimate, we must obtain a change order, contract modification, or successfully prevail in a claim in order to receive payment for the additional costs.
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In the case of a cost-plus award fee, we include in the total contract value the portion of the fee that we are probable of receiving. Award fees are influenced by the achievement of contract milestones, cost savings and other factors. Fixed Price Contracts. Under fixed price contracts, our clients pay us an agreed amount negotiated in advance for a specified scope of work. For engineering and construction contracts, we recognize revenue on fixed price contracts using the percentage-of-completion method where costs incurred to date are compared to total projected costs at contract completion. Prior to completion, our recognized profit margins on any fixed price contract depend on the accuracy of our estimates and will increase to the extent that our actual costs are below the original estimated amounts. Conversely, if our costs exceed these estimates, our profit margins will decrease and we may realize a loss on a project. If our actual costs exceed the original estimate, we attempt to obtain a change order or contract modification. Time-and-Materials Contracts. Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we expend on a project. In addition, clients reimburse us for our actual out-of-pocket costs of materials and other direct expenditures that we incur in connection with our performance under the contract. Our profit margins on time-and-materials contracts fluctuate based on actual labor and overhead costs that we directly charge or allocate to contracts compared with the negotiated billing rate and markup on other direct costs. Some of our time-andmaterials contracts are subject to maximum contract values, and accordingly, revenue under these contracts are recognized under the percentage-of-completion method where costs incurred to date are compared to total projected costs at contract completion. Revenue on contracts that are not subject to maximum contract values are recognized based on the actual number of hours we spend on the projects plus any actual out-of-pocket costs of materials and other direct expenditures that we incur on the projects. Our time-and-materials contracts generally include annual billing rate escalation provisions. Operations and Maintenance Contracts. A portion of our contracts are operations and maintenance type contracts. Typically, these contracts may include fixed and variable components along with incentive fees. Revenue is recognized on operations and maintenance contracts on a straight-line basis over the life of the contract once we have an arrangement, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. Income Taxes In determining net income for financial statement purposes, we must make estimates and judgments in the calculation of tax assets and liabilities and in the determination of the recoverability of the deferred tax assets. The tax assets and liabilities arise from temporary differences between the tax return and the financial statement recognition of revenue and expenses. We must assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our tax provision by recording a valuation allowance for the deferred tax assets that we estimate will not ultimately be recoverable. In addition, the calculation of our income tax provision involves uncertainties in the application of complex tax regulations. For income tax benefits to be recognized, a tax position must be more likely than not to be sustained upon ultimate settlement. Pension and Postretirement Employee Benefits We have two frozen and one active noncontributory defined benefit pension plans, a medical benefit plan for retired employees and other benefit plans. The determination of pension plan expense and the requirements for funding our pension plans are based on a number of actuarial assumptions. These valuations include many assumptions, but the two most critical assumptions are the discount rate and the expected long-term rate of return on plan assets. For our medical benefit plan, which provides certain health care benefits to qualified retired employees, critical assumptions in determining the employee benefit expense are the discount rate applied to benefit obligations and the assumed health care cost trend rates used in the calculation of benefit obligations. We use judgment in selecting these assumptions each year because we have to consider not only current market conditions, but also make judgments about future market trends, changes in the interest rates and equity market performance. We also have to consider factors like the timing and amounts of expected contributions to the plans and benefit payments to plan participants. The funded status of a benefit plan is measured as the difference between plan assets at fair value and the benefit obligation. We record an asset for overfunded plans and a liability for underfunded plans, with a corresponding entry recorded to accumulated other comprehensive loss, net of tax.
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Recently Adopted Accounting Standards In June 2009, the FASB issued Accounting Standards Update (ASU) No. 2009-17, Consolidations (Topic 810)— Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, revising the existing guidance on the consolidation and disclosures of variable interest entities (VIEs) which was codified in Accounting Standards Codification (ASC) 810-10. Specifically, it changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting rights should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the entity’s purpose and design and the reporting entity’s ability to direct the activities of the other entity that most significantly impact the other entity’s economic performance. The guidance also requires additional disclosures about a company’s involvement with VIEs and requires an entity to continually assess any significant changes in risk exposure as well as an entity’s assessment of the primary beneficiary of the entity. ASC 810-10 became effective for CH2M HILL beginning January 1, 2010. For further discussion of the effect of the adoption, see Note 3 of the footnotes to the consolidated financial statements. In January 2010, the FASB issued ASU No. 2010-06 (ASU 2010-06), Fair Value Measurements and Disclosures (Topic 820)—Improving Disclosures about Fair Value Measurements. ASU 2010-06 requires expanded fair value disclosures about transfers into and out of Levels 1 and 2 fair value measurements and clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. ASU 2010-06 is effective for CH2M HILL beginning January 1, 2010. The adoption of this accounting standard update did not have a material impact on CH2M HILL’s financial position, results of operations, cash flows and disclosures. Commitments and Contingencies CH2M HILL is party to various contractual guarantees and legal actions arising in the normal course of business. Because a large portion of CH2M HILL’s business comes from the U.S. federal government and various federal agencies, state and municipal sources, CH2M HILL’s procurement and certain other practices at times are subject to review and investigation by U.S. and state attorneys offices. Such state and U.S. federal government investigations, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties or could lead to suspension or debarment from future U.S. federal government contracting. These investigations often take years to complete and many result in no adverse action or alternatively could result in settlement. Damages assessed in connection with and the cost of defending any such actions could be substantial. While the outcomes of pending proceedings and legal actions are often difficult to predict, CH2M HILL’s management believes that proceedings and legal actions currently pending would not result in a material adverse effect on CH2M HILL’s results of operations or financial condition even if the final outcome is adverse to CH2M HILL. Many claims that are currently pending against CH2M HILL are covered by our professional liability insurance, after retentions and deductibles. Management estimates that the levels of insurance coverage are generally adequate to cover CH2M HILL’s liabilities, if any, with regard to such claims. Any amounts that are probable of payment by CH2M HILL are accrued when such amounts are estimable. In 2010, we were notified that the U.S. Attorney’s Office is investigating potential overtime irregularities on our DOE Hanford tank farms contract which we completed in 2008. We are cooperating with the investigation but given its early stages are not yet in a position to ascertain the strength of potential claims or quantify their possible impact. Based on currently available information, CH2M HILL’s management believes that the investigation would not result in a material impact on CH2M HILL’s results of operations or financial condition, even if the final outcome is adverse to CH2M HILL. Item 7A. Quantitative and Qualitative Disclosures About Market Risk In the ordinary course of our operations we are exposed to certain market risks, primarily changes in foreign currency exchange rates and interest rates. This risk is monitored to limit the effect of foreign currency exchange rate and interest rate fluctuations on earnings and cash flows. Foreign currency exchange rates. The majority of our transactions are in U.S. dollars; however, our foreign subsidiaries conduct business in various foreign currencies. As a result, we are exposed to foreign currency exchange rate risk on transactions in some foreign countries. We do not comprehensively hedge our exposure to currency rate changes; however, our exposure to foreign currency fluctuations is limited in that most of our contracts require client payments to be in currencies corresponding to the currency in which costs are incurred. As a result, we do not need to hedge foreign currency cash flows for contract work performed. 32
Interest rates. Our interest rate exposure is generally limited to our unsecured revolving credit agreement, purchase of interest bearing short-term investments and the holdback contingency balance outstanding related to our acquisition of VECO. As of December 31, 2010 there was not a balance on the unsecured revolving credit agreement, but there was approximately $46.7 million outstanding on the holdback contingency. We have assessed the market risk exposure on these financial instruments and determined that any significant changes to the fair value of these instruments would not have a material impact on our consolidated results of operations, financial position or cash flows. Based upon the amount outstanding under the holdback contingency, a one percentage point change in the assumed interest rate would change our annual interest expense by approximately $0.5 million. Item 8. Financial Statements and Supplementary Data Reference is made to the information set forth beginning on page F-1. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Disclosure Controls and Procedures We carried out an evaluation as of the last day of the period covered by this Annual Report on Form 10-K, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (Exchange Act). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is timely recorded, processed, summarized and reported and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. There have been no changes in our internal control over financial reporting during the quarter ended December 31, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under the framework in Internal Control—Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2010. The effectiveness of our internal control over financial reporting as of December 31, 2010 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report which is included herein on page F-2. Item 9B. Other Information Not applicable.
33
PART III Item 10. Directors, Executive Officers and Corporate Governance Certain information required by this item is incorporated by reference from CH2M HILL’s definitive proxy statement for its 2011 Annual Meeting of Shareholders. Information regarding the executive officers of CH2M HILL is presented below: EXECUTIVE OFFICERS OF CH2M HILL The executive officers of CH2M HILL are listed below, along with their ages, tenure as officer and business background for at least the last five years. Frederick M. Brune. Age 59. Mr. Brune has served as the President of CH2M HILL International since January 1, 2011. He previously served as President of the Government Facilities and Infrastructure business at CH2M HILL from 2006 to 2010. Between 1999 and 2005, Mr. Brune served as the President and Chief Executive Officer of Lockwood Greene, a company CH2M HILL acquired in 2003. He also served as Lockwood Greene’s Chief Financial Officer between 1987 and 1999. Robert G. Card. Age 58. Mr. Card has served as Senior Vice President of CH2M HILL and the President of the Energy and Water Division since January 1, 2011. Prior to his current role, Mr. Card has served in many senior executive positions, including Chief Executive Officer of Kaiser-Hill Company between 1996 and 2001, President for International Operations from 2004 through 2006, President of the Government, Environment and Nuclear Division from 2008 to 2009 and the Facilities and Infrastructure Division between 2009 and 2010. Between 2001 and 2004, Mr. Card served as the undersecretary for the US Department of Energy. Michael A. Lucki. Age 54. Mr. Lucki joined CH2M HILL as Senior Vice President and Chief Financial Officer in November of 2010. Mr. Lucki came to CH2M HILL from Ernst & Young LLP where he was a partner and led the firm’s Global Engineering and Construction (E&C) Industry Practice since 1994 and the firm’s Global Infrastructure Practice since 2008. John A. Madia. Age 55. Mr. Madia has served as Chief Human Resources Officer of CH2M HILL since November 2009. In May 2009 he joined CH2M HILL as Senior Vice President of Human Resources. Mr. Madia came to CH2M HILL from Dow Chemical Company where he was Vice President of Human Resources from 2006 to 2009. Lee A. McIntire. Age 62. Mr. McIntire has been the Chairman of the Board of Directors of CH2M HILL since 2010 and the Chief Executive Officer since 2009. He joined CH2M HILL as the President and Chief Operating Officer in 2006. Before joining CH2M HILL, Mr. McIntire was a Professor and Executive-in-Residence at the Graduate School of Management, University of California, Davis (UC Davis). Prior to that, Mr. McIntire spent more than 15 years with Bechtel Group in various executive leadership positions. Michael E. McKelvy. Age 52. Mr. McKelvy has served as Senior Vice President and the President of the Government, Environment and Nuclear Division of CH2M HILL since 2009. Prior to his current role, Mr. McKelvy was the President for the Industrial Client business between 2006 and 2009, and President for the Manufacturing and Life Sciences business of CH2M HILL since 2005. Prior to CH2M HILL, Mr. McKelvy held executive leadership positions within Lockwood Greene, a company CH2M HILL acquired in 2003. Margaret B. McLean. Age 47. Ms. McLean has served as CH2M HILL’s Chief Legal Officer and Chief Ethics & Compliance officer since 2007. Ms. McLean was appointed as CH2M HILL’s Corporate Secretary and Senior Vice President in 2009. From 1998 to 2007, she was CH2M HILL’s International, M&A and Securities Counsel. Prior to joining CH2M HILL, Ms. McLean was a Partner at the law firm of Holme Roberts & Owens LLP. Jacqueline C. Rast. Age 49. Ms. Rast has served as Senior Vice President and the President of the Facilities and Infrastructure Division of CH2M HILL as of January 1, 2011 and previously served as the Vice President, Major Programs and Executive Director for Mergers and Acquisitions since 2009. Between 2007 and 2009, she led our Center for Project Excellence and has worked for CH2M HILL since 1988 in various senior technical and executive positions. Ms. Rast left CH2M HILL in 1997 to form her own consulting company, Talisman Partners, and returned to CH2M HILL in 2005 after successfully selling her business to an industry competitor.
34
JoAnn Shea. Age 46. Ms. Shea has served as Chief Accounting Officer of CH2M HILL since 2006 and as Vice President and Controller since 2003. She also served as acting Chief Financial Officer of CH2M HILL from May to November of 2010. Ms. Shea joined CH2M HILL in 1998 as Assistant Controller. There are no family relationships among the executive officers or directors of CH2M HILL. The executive officers are elected by the Board of Directors each year and hold office until the organizational meeting of the Board in the next subsequent year and until his or her successor is chosen or until his or her earlier death, resignation or removal. Item 11. Executive Compensation Information required by this item is incorporated by reference from CH2M HILL’s definitive proxy statement for its 2011 Annual Meeting of Shareholders. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters Information required by this item is incorporated by reference from CH2M HILL’s definitive proxy statement for its 2011 Annual Meeting of Shareholders. Item 13. Certain Relationships and Related Transactions, and Director Independence Information required by this item is incorporated by reference from CH2M HILL’s definitive proxy statement for its 2011 Annual Meeting of Shareholders. Item 14. Principal Accounting Fees and Services Information required by this item is incorporated by reference from CH2M HILL’s definitive proxy statement for its 2011 Annual Meeting of Shareholders. PART IV Item 15. Exhibits and Financial Statement Schedules Documents Filed as Part of this Report 1.
Financial Statements
Report of Independent Registered Public Accounting Firm .............................................................................................. Report on Internal Control Over Financial Reporting ....................................................................................................... Consolidated Balance Sheets at December 31, 2010 and 2009 ......................................................................................... Consolidated Statements of Income for the Years Ended December 31, 2010, 2009 and 2008 ........................................ Consolidated Statements of Shareholders’ Equity and Comprehensive Income for the Years Ended December 31, 2010, 2009 and 2008...................................................................................................................................................... Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008 ................................. Notes to Consolidated Financial Statements ...................................................................................................................... 2.
F-1 F-2 F-3 F-4 F-5 F-6 F-7
Financial Statement Schedules and Other
In accordance with Regulation S-X Rule 3.09, we furnish separate financial statements of significant subsidiaries not consolidated and 50% or less owned persons. We are required to include the balance sheets of Golden Crossing Constructors Joint Venture and CLM Delivery Partner, Limited as of December 31, 2010 and 2009, and the related statements of income, partners’ equity, and cash flows for each of the years in the three-year period ended December 31, 2010. In accordance with Regulation S-X Rule 3.09, as the unconsolidated subsidiaries are foreign filers and are private entities, the financial statements of these entities will be filed as an amendment to this periodic report by June 30, 2011. All financial statement schedules have been omitted because the required information is included in the consolidated financial statements or notes thereto, or because such schedules are not applicable.
35
3.
Exhibits
The Exhibits required by this item are listed in the Exhibit Index. Each management contract and compensatory plan or arrangement is denoted with a “+” in the Exhibit Index. Exhibit Number
3.1
3.2 *+10.1 *+10.2 *+10.3 *+10.4 *+10.5 *+10.6 +10.7
+10.8
+10.9
+10.10
+10.11 *10.12 *10.13 10.14
10.15
10.16
14.1
*21.1 *23.1 *24.1 *31.1
Description
Restated Articles of Incorporation of CH2M HILL Companies, Ltd. (filed as Exhibit A to CH2M HILL’s Definitive Proxy Statement on Schedule 14A on November 13, 2009 (Commission File No. 333-60700) , and incorporated herein by reference) Restated Bylaws of CH2M HILL Companies, Ltd. (filed as Exhibit 3.1 to CH2M HILL’s Form 8-K, on November 12, 2009 (Commission File No. 000-27261), and incorporated herein by reference) CH2M HILL Retirement and Tax-Deferred Savings Plan, as amended and restated effective June 1, 2000 (Commission File No. 000-27261) CH2M HILL Companies, Ltd. Supplemental Executive Retirement and Retention Plan effective February 11, 2010 (Commission File No. 000-27261) CH2M HILL Companies, Ltd. Deferred Compensation Plan effective January 1, 2001(Commission File No. 000-27261) CH2M HILL Companies, Ltd. Restricted Stock Policy and Administration Plan effective January 1, 2000 as amended and restated on February 11, 2011 (Commission File No. 000-27261) CH2M HILL Companies, Ltd. Short Term Incentive Plan effective January 1, 2000 (Commission File No. 00027261) CH2M HILL Companies, Ltd. 2004 Stock Option Plan (Commission File No. 000-27261) CH2M HILL Companies, Ltd. Payroll Deduction Stock Purchase Plan as amended and restated effective January 1, 2004 (filed as Appendix B to CH2M HILL’s Definitive Proxy Statement on Schedule 14A on March 26, 2004 (Commission File No. 000-27261), and incorporated herein by reference) CH2M HILL Companies, Ltd. Amended and Restated Executive Officers Long Term Incentive Plan effective January 1, 2005, as amended and restated on May 8, 2008 (filed as Exhibit 10.1 to CH2M HILL’s Form 10-Q for the quarter ended March 31, 2008 (Commission File No. 000-27261), and incorporated herein by reference) CH2M HILL Companies, Ltd. Amended and Restated Long Term Incentive Plan effective January 1, 2005 (filed as Exhibit 10.15 to CH2M HILL’s Form 10-K for the year ended December 31, 2006 (Commission File No. 000-27261), and incorporated herein by reference) Form of Change of Control Agreement between CH2M HILL Companies, Ltd. and employee directors and executive officers, effective as of July 1, 2010 (filed as Exhibit 10.1 to CH2M HILL’s Form 10-Q for the quarter ended September 30, 2010, (Commission File No. 002-27261), and incorporated herein by reference) CH2M HILL Companies, Ltd. 2009 Stock Option Plan, effective January 1, 2009 (filed as Exhibit 10.24 on Form 10-K on February 24, 2009 (Commission File No. 000-27261), and incorporated herein by reference) Contract with Neidiger, Tucker, Bruner, Inc. dated as of July 1, 2006 (Commission File No. 000-27261) Credit Agreement dated as of December 6, 2010, by and among CH2M HILL Companies, Ltd. and certain of its subsidiaries, Wells Fargo Bank, National Association and other lenders (Commission File No. 000-27261) Amended and Restated Credit Facility closed on September 6, 2007, by and among CH2M HILL Companies, Ltd. and certain of its wholly owned subsidiaries. Wells Fargo Bank, National Association, as agent and sole arranger, and other lenders as party thereto (certain portions of this exhibit have been omitted and filed separately with the Commission pursuant to a request for confidential treatment under Rule 24b-2 as promulgated under the Securities Exchange Act of 1934) (filed as Exhibit 10.1 to CH2M HILL’s Form 8-K on September 13, 2007 (Commission File No. 000-27261), and incorporated herein by reference) Agreement of Purchase and Sale executed on September 26, 2007 (dated September 11, 2007) by and between CH2M HILL, Inc. and WELLS REIT II—South Jamaica Street, LLC (filed as Exhibit 10.44 to CH2M HILL’s Form 8-K on September 27, 2007 (Commission File No. 000-27261), and incorporated herein by reference) Lease Agreement dated as of September 26, 2007, by and between CH2M HILL, Inc. and WELLS REIT II— South Jamaica Street, LLC (filed as Exhibit 10.43 to CH2M HILL’s Form 8-K on September 27, 2007 (Commission File No. 000-27261), and incorporated herein by reference) CH2M HILL Companies, Ltd. Ethics Code for Executive and Financial Officers (filed as Exhibit 14.1 to CH2M HILL’s Form 10-K for the year ended December 31, 2009(Commission File No. 000-27261), and incorporated herein by reference) Subsidiaries of CH2M HILL Companies, Ltd. Consent of KPMG LLP, Independent Registered Public Accounting Firm Power of Attorney authorizing signature Written Statement of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 36
Exhibit Number
*31.2 *32.1 *32.2 99.1
Description
Written Statement of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Written Statement of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) Written Statement of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) Internal Market Rules, (filed as Exhibit 99.1 to CH2M HILL’s Form 8-K on February 11, 2011 (Commission File No. 000-27261), and incorporated herein by reference)
*
Filed herewith
+
Indicates management contract or compensatory plan or arrangement
37
Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders CH2M HILL Companies, Ltd.: We have audited the accompanying consolidated balance sheets of CH2M HILL Companies, Ltd. and subsidiaries (the Company) as of December 31, 2010 and 2009, and the related consolidated statements of income, shareholders’ equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2010. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of CH2M HILL Companies, Ltd. and subsidiaries as of December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. As discussed in note 1 to the accompanying consolidated financial statements, the Company adopted new accounting standards relating to variable interest entities on January 1, 2010 and to noncontrolling interests in consolidated financial statements on January 1, 2009. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), CH2M HILL Companies, Ltd. and subsidiaries’ internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 1, 2011 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. KPMG LLP Denver, Colorado March 1, 2011
F-1
Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders CH2M HILL Companies, Ltd.: We have audited CH2M HILL Companies, Ltd. and subsidiaries (the Company) internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, CH2M HILL Companies Ltd. and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by COSO. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of CH2M HILL Companies, Ltd. and subsidiaries as of December 31, 2010 and 2009, and the related consolidated statements of income, shareholders’ equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2010, and our report dated March 1, 2011 expressed an unqualified opinion on those consolidated financial statements. KPMG LLP Denver, Colorado March 1, 2011
F-2
CH2M HILL COMPANIES, LTD. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) December 31, 2010
ASSETS Current assets: Cash and cash equivalents ........................................................................................ Available-for-sale securities ..................................................................................... Receivables, net— Client accounts...................................................................................................... Unbilled revenue ................................................................................................... Other ..................................................................................................................... Deferred income taxes .............................................................................................. Prepaid expenses and other current assets ................................................................ Total current assets ........................................................................................... Investments in unconsolidated affiliates ....................................................................... Property, plant and equipment, net ............................................................................... Goodwill ....................................................................................................................... Intangible assets, net ..................................................................................................... Deferred income taxes .................................................................................................. Employee benefit plan assets and other ........................................................................ Total assets........................................................................................................ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt ............................................................................. Accounts payable and accrued subcontractor costs .................................................. Billings in excess of revenue .................................................................................... Accrued payroll and employee related liabilities ...................................................... Income tax payable ................................................................................................... Other accrued liabilities ............................................................................................ Total current liabilities ...................................................................................... Long-term employee related liabilities and other ......................................................... Long-term debt ............................................................................................................. Total liabilities .................................................................................................. Commitments and contingencies (Note 17) Shareholders’ equity: Preferred stock, Class A $0.02 par value, 50,000,000 shares authorized; none issued .................................................................................................................... Common stock, $0.01 par value, 100,000,000 shares authorized; 30,527,473 and 31,373,955 issued and outstanding at December 31, 2010 and 2009, respectively ........................................................................................................... Additional paid-in capital ......................................................................................... Retained earnings ...................................................................................................... Accumulated other comprehensive loss .................................................................... Total CH2M HILL common shareholders’ equity............................................ Noncontrolling interests ............................................................................................ Total equity ....................................................................................................... Total liabilities and shareholders’ equity ......................................................
December 31, 2009
$290,405 2,412
$169,717 1,966
558,734 389,353 21,264 62,007 44,498 1,368,673 82,982 169,261 130,354 51,048 112,919 51,843 $1,967,080
611,634 416,927 20,882 47,964 64,510 1,333,600 78,053 197,152 130,354 61,275 109,438 38,150 $1,948,022
$13,934 407,694 237,053 291,713 20,010 163,396 1,133,800 255,425 23,687 1,412,912
$14,396 407,222 292,280 259,798 — 134,763 1,108,459 276,811 37,943 1,423,213
—
—
305 — 563,343 (18,768) 544,880 9,288 554,168 $1,967,080
314 12,803 531,796 (32,743) 512,170 12,639 524,809 $1,948,022
The accompanying notes are an integral part of these consolidated financial statements.
F-3
CH2M HILL COMPANIES, LTD. AND SUBSIDIARIES Consolidated Statements of Income (Dollars in thousands except per share amounts)
December 31, 2010
Gross revenue ........................................................................ Equity in earnings of joint ventures and affiliated companies .......................................................................... Operating expenses: Direct cost of services and overhead.................................. General and administrative ................................................ Gain on sale of operating assets ......................................... Operating income................................................................... Other income (expense): Interest income................................................................... Interest expense ................................................................. Income before provision for income taxes ............................. Provision for income taxes .................................................... Net income ............................................................................. Less: Income attributable to noncontrolling interests ............ Net income attributable to CH2M HILL................................ Net income per common share: Basic .............................................................................. Diluted ........................................................................... Weighted average number of common shares: Basic .............................................................................. Diluted ...........................................................................
For The Years Ended December 31, 2009
$5,422,801
$5,499,318
$5,589,906
68,513
65,539
34,232
(4,426,352) (890,199) — 174,763
(4,478,884) (969,677) 58,235 174,531
(4,507,738) (1,027,225) — 89,175
1,372 (4,616) 171,519 (53,804) 117,715 (24,020) $93,695
1,474 (7,487) 168,518 (46,420) 122,098 (18,356) $103,742
2,405 (15,833) 75,747 (27,497) 48,250 (16,194) $32,056
$2.98 $2.91
$3.25 $3.18
$0.96 $0.93
31,458,126 32,163,093
31,907,861 32,598,509
33,486,512 34,376,259
The accompanying notes are an integral part of these consolidated financial statements.
F-4
December 31, 2008
CH2M HILL COMPANIES, LTD. AND SUBSIDIARIES Consolidated Statements of Shareholders’ Equity and Comprehensive Income (Dollars in thousands)
Common Stock Shares Amount
Balance at December 31, 2007 ................................... Net income ............................................................ Other comprehensive loss: Foreign currency translation adjustments ......... Benefit plan adjustments .................................. Unrealized loss on equity investments.............. Comprehensive loss..................................... Distributions to affiliates, net ................................ Shares issued in connection with stock based compensation and employee benefit plans ....... Shares purchased and retired ................................. Balance at December 31, 2008 ................................... Net income ............................................................ Other comprehensive income: Foreign currency translation adjustments ......... Benefit plan adjustments .................................. Unrealized gain on equity investments ............. Comprehensive income ............................... Distributions to affiliates, net ................................ Shares issued in connection with stock based compensation and employee benefit plans ....... Shares purchased and retired ................................. Balance at December 31, 2009 ................................... Net income ............................................................ Other comprehensive income: Foreign currency translation adjustments ......... Benefit plan adjustments .................................. Unrealized gain on equity investments ............. Comprehensive income ............................... Distributions to affiliates, net ................................ Impact of adoption of ASC 810............................. Shares issued in connection with stock based compensation and employee benefit plans ....... Shares purchased and retired ................................. Balance at December 31, 2010 ...................................
33,158,068
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Noncontrolling Interest
Total Shareholders’ Equity
$332 —
$70,596 —
$395,998 32,056
$(3,393) —
$964 16,194
$464,497 48,250
— — —
— — —
— — —
(17,269) (32,125) (1,299)
(923) — —
—
—
—
—
(13,717)
(18,192) (32,125) (1,299) (3,366) (13,717)
15 (31) 316 —
31,520 (92,169) 9,947 —
— — 428,054 103,742
— — (54,086) —
— — 2,518 18,356
31,535 (92,200) 386,749 122,098
— — —
— — —
— — —
16,426 3,925 992
1,145 — —
—
—
—
—
(9,380)
17,571 3,925 992 144,586 (9,380)
1,973,413 (2,203,794) 31,373,955
20 (22) 314
81,564 (78,708) 12,803
— — 531,796 93,695
— — (32,743)
— — 12,639 24,020
81,584 (78,730) 524,809 117,715
— — — — — —
— — — — — —
— — — — — —
— — — — — —
3,831 9,869 275 — — —
347 — — (31,806) 4,088
4,178 9,869 275 132,037 (31,806) 4,088
1,857,418 (2,703,900) 30,527,473
18 (27) $305
43,776 (56,579) $—
— (62,148) $563,343
— — $(18,768)
— — $9,288
43,794 (118,754) $554,168
1,512,164 (3,065,896) 31,604,336
The accompanying notes are an integral part of these consolidated financial statements.
F-5
CH2M HILL COMPANIES, LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Dollars in thousands)
December 31, 2010 Cash flows from operating activities: Net income .............................................................................................................................. Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization............................................................................................ Gain on sale of operating assets ......................................................................................... Stock-based employee compensation ................................................................................. Loss on disposal of property, plant and equipment............................................................. Allowance for uncollectible accounts ................................................................................. Deferred income taxes ........................................................................................................ Gain on sale of investments................................................................................................ Undistributed earnings from unconsolidated affiliates ....................................................... Distributions of income from unconsolidated affiliates ...................................................... Changes in current assets and liabilities, net of businesses acquired: Receivables and unbilled revenue.................................................................................. Prepaid expenses and other............................................................................................ Accounts payable and accrued subcontractor costs ....................................................... Billings in excess of revenues........................................................................................ Accrued payroll and employee related liabilities ........................................................... Other accrued liabilities................................................................................................. Current income taxes receivable (payable) .................................................................... Long-term employee related liabilities and other .......................................................... Net cash provided by operating activities ................................................................. Cash flows from investing activities: Capital expenditures ................................................................................................................ Acquisitions and earnout payments, net of cash acquired........................................................ Investments in unconsolidated affiliates .................................................................................. Distributions of capital from unconsolidated affiliates ............................................................ Consolidation of previously unconsolidated variable interest entities ..................................... Proceeds from sale of operating assets .................................................................................... Purchases of investments......................................................................................................... Proceeds from sale of investments .......................................................................................... Other ....................................................................................................................................... Net cash provided by (used in) investing activities ................................................... Cash flows from financing activities: Borrowings on long-term debt................................................................................................. Payments on long-term debt .................................................................................................... Repurchases and retirements of common stock ....................................................................... Excess tax benefits from stock-based compensation ............................................................... Net distributions to noncontrolling interests ............................................................................ Net cash used in financing activities ......................................................................... Effect of exchange rate changes on cash ...................................................................................... Increase (decrease) in cash and cash equivalents ......................................................................... Cash and cash equivalents, beginning of year .............................................................................. Cash and cash equivalents, end of year ........................................................................................ Supplemental disclosures: Cash paid for interest............................................................................................................... Cash paid for income taxes .....................................................................................................
For The Years Ended December 31, December 31, 2009 2008
$117,715
$122,098
$48,250
62,311 — 50,603 1,266 3,521 (24,699) (6,495) (68,513) 71,181
80,889 (58,235) 67,738 3,570 11,115 (29,289) — (65,539) 52,808
92,022 — 43,654 249 2,172 (24,789) — (34,232) 55,407
72,921 (2,465) (16,558) (61,950) 29,517 32,530 41,486 (15,802) 286,569
40,748 13,510 (29,470) 9,331 3,631 8,089 (10,268) 19,755 240,481
18,783 22,376 3,670 24,613 4,447 (4,860) (83) 7,817 259,496
(26,884) — (49,133) 35,601 32,651 — (37,079) 43,573 2,961 1,690
(37,663) (1,186) (68,366) 41,597 — 70,971 — 10,741 65 16,159
(50,622) (24,570) (78,632) 54,858 — — (6,975) 8,032 1,124 (96,785)
404,827 (419,056) (137,208) 14,968 (31,806) (168,275) 704 120,688 169,717 $290,405
747,349 (870,885) (91,253) 6,431 (9,379) (217,737) 16,532 55,435 114,282 $169,717
1,072,318 (1,101,998) (109,395) 6,881 (13,717) (145,911) (26,623) (9,823) 124,105 $114,282
$4,708 $43,714
$7,793 $50,910
$14,860 $48,295
The accompanying notes are an integral part of these consolidated financial statements.
F-6
CH2M HILL COMPANIES, LTD. AND SUBSIDIARIES Notes to Consolidated Financial Statements (1)
Summary of Business and Significant Accounting Policies Summary of Business
CH2M HILL Companies, Ltd. and subsidiaries (CH2M HILL) is a project delivery firm founded in 1946. CH2M HILL provides engineering, consulting, design, construction, procurement, operations and maintenance, and program management services to U.S. federal government agencies, state, municipal and local government entities and foreign government agencies, as well as private industry, in the U.S. and internationally. CH2M HILL is an employee owned corporation. A substantial portion of CH2M HILL’s professional fees are derived from projects that are funded directly or indirectly by government entities. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of CH2M HILL and all of its wholly owned subsidiaries after elimination of all intercompany accounts and transactions. Partially owned affiliates and joint ventures are evaluated for consolidation. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Certain amounts in prior years’ consolidated financial statements have been reclassified to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions. CH2M HILL believes that the estimates, judgments and assumptions made when accounting for items and matters such as, but not limited to, revenue recognition, self insurance accruals, employee benefits, legal and tax reserves, allowance for doubtful accounts, depreciation, amortization, asset valuations and contingencies are reasonable, based on information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. See Note 17—Commitments and Contingencies. Actual results could differ from our estimates. Capital Structure CH2M HILL has authorized 100,000,000 shares of common stock, par value $0.01 per share, and 50,000,000 shares of Class A preferred stock, par value $0.02 per share. CH2M HILL’s Restated Bylaws and Articles of Incorporation provide for the imposition of certain restrictions on the stock including, but not limited to, the right but not the obligation to repurchase shares upon termination of employment or affiliation, the right of first refusal and ownership limits. Foreign Currency Translation All assets and liabilities of CH2M HILL’s foreign subsidiaries are translated into U.S. dollars as of each balance sheet date. Translation gains and losses related to permanent investments in foreign subsidiaries are reflected in shareholders’ equity as part of accumulated other comprehensive loss. Revenues and expenses are translated at the average exchange rate for the period and included in the consolidated statements of income. Foreign currency transaction gains and losses are recognized as incurred in the consolidated statements of income. Subsequent Events CH2M HILL has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the day the financial statements were issued. Revenue Recognition CH2M HILL earns its revenue from different types of contracts, including cost-plus, fixed-price and time-andmaterials. CH2M HILL evaluates contractual arrangements to determine how to recognize revenue. CH2M HILL primarily F-7
performs engineering and construction related services and recognizes revenue for these contracts on the percentage-ofcompletion method where progress towards completion is measured by relating the actual cost of work performed to date to the current estimated total cost of the respective contracts. In making such estimates, judgments are required to evaluate potential variances in schedule, the cost of materials and labor, productivity, liability claims, contract disputes, or achievement of contract performance standards. Change orders are included in total estimated contract revenue when it is probable that the change order will result in an addition to contract value and can be estimated. Management evaluates when a change order is probable based upon its experience in negotiating change orders, the customer’s written approval of such changes or separate documentation of change order costs that are identifiable. Losses on construction and engineering contracts in process are recognized in their entirety when the loss becomes evident and the amount of loss can be reasonably estimated. CH2M HILL also performs operations and maintenance services. Revenue is recognized on operations and maintenance contracts on a straight-line basis over the life of the contract once CH2M HILL has an arrangement, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. Unbilled Revenue and Billings in Excess of Revenue Unbilled revenue represents the excess of contract revenue recognized over billings to date on contracts in process. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Billings in excess of revenue represent the excess of billings to date, per the contract terms, over revenue recognized on contracts in process. Allowance for Uncollectible Accounts Receivable CH2M HILL reduces accounts receivable by estimating an allowance for amounts that may become uncollectible in the future. Management determines the estimated allowance for uncollectible amounts based on their judgments in evaluating the aging of the receivables and the financial condition of CH2M HILL’s clients, which may be dependent on the type of client and the client’s current economic conditions. Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. CH2M HILL uses a three-tier valuation hierarchy based upon observable and non-observable inputs. The three levels are as follows: Level 1, unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date; Level 2, significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly; and Level 3, significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Income Taxes CH2M HILL accounts for income taxes utilizing an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax effects of events that have been recognized in the financial statements or tax returns. In estimating future tax consequences, CH2M HILL generally considers all expected future events other than enactment of changes in the tax laws or rates. Deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year in which differences are expected to reverse. Annually, CH2M HILL determines the amount of undistributed foreign earnings invested indefinitely in its foreign operations. Deferred taxes are not provided on those earnings. In addition, the calculation of tax assets and liabilities involves uncertainties in the application of complex tax regulations. For income tax benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.
F-8
Cash and Cash Equivalents CH2M HILL maintains a cash management system which provides for cash in the bank sufficient to pay checks as they are submitted for payment and invests cash in excess of this amount in interest bearing short-term investments such as certificates of deposit and commercial paper. Investments with original short-term maturities of less than three months are considered cash equivalents in the consolidated balance sheets and statements of cash flows. In addition, cash and cash equivalents on our consolidated balance sheets include cash held within our consolidated joint venture entities which is used for operating activities of those joint ventures. As of December 31, 2010 and 2009, cash and cash equivalents held in our consolidated joint ventures and reflected on the consolidated balance sheets totaled $60.3 million and $43.7 million, respectively. Available-for-Sale Securities Available-for-sale securities are carried at fair value, with unrecognized gains and losses reported in accumulated other comprehensive loss, net of taxes. Losses on available-for-sale securities are recognized when a loss is determined to be other than temporary or when realized. Fair values are estimated based on market prices, where available, or dealer quotes. Property, Plant and Equipment All additions, including betterments to existing facilities, are recorded at cost. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost of the assets and the related accumulated depreciation are removed from the accounts. Any gain or loss on retirements is reflected in operating income in the year of disposition. Depreciation for owned property is based on the estimated useful lives of the assets using the straight-line method for financial statement purposes. Useful lives for buildings range from 12 to 20 years. Furniture, fixtures and equipment are depreciated over their useful lives from 2 to 10 years. Leasehold improvements are depreciated over the shorter of their estimated useful life or the remaining term of the associated lease up to 12 years. Other Long-Lived Assets CH2M HILL may acquire goodwill or other intangible assets in business combinations. Intangible assets are stated at fair value as of the date acquired in a business combination. CH2M HILL amortizes intangible assets with finite lives on a straight-line basis over their expected useful lives, currently up to seven years. Where there are no legal, regulatory, contractual or other factors that would reasonably limit the useful life of the intangible asset, such as goodwill or tradenames, management has determined that those intangible assets have an indefinite life and therefore are not amortized. CH2M HILL reviews its finite-lived intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Assets which are held and used in operations are considered impaired if the undiscounted future cash flows from the asset do not exceed the net book value. If impaired, the assets are written down to their estimated fair value. CH2M HILL generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from the asset group using an appropriate discount rate. Goodwill and intangible assets with indefinite lives are tested for impairment on an annual basis, or on an interim basis if events or circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment charge is recognized for any amount by which the carrying amount of goodwill or intangible assets with indefinite lives exceeds their fair value. Management performs its impairment tests of goodwill at the reporting unit level, which is one level below the operating segments. Management’s review of goodwill and the tradename indicated that there was no impairment during the years ended December 31, 2010, 2009 and 2008. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of foreign currency translation adjustments, benefit plan adjustments, and unrealized gains/losses on equity investments. These components are included in the consolidated statements of shareholders’ equity and comprehensive income. Taxes are not provided on the foreign currency translation gains and losses as deferred taxes are not provided on the unremitted earnings of the foreign subsidiaries to which they relate.
F-9
The composition of accumulated other comprehensive loss consists of the following at December 31: 2010
($ in thousands)
Foreign currency translation adjustments ............................................................................................ Benefit plan adjustments, net of tax ..................................................................................................... Unrealized gain on equity investments, net of tax ...............................................................................
$13,449 (33,239) 1,022 $(18,768)
2009
$9,618 (43,108) 747 $(32,743)
Concentrations of Credit Risk Financial instruments which potentially subject CH2M HILL to concentrations of credit risk consist principally of cash and cash equivalents, short term investments and trade receivables. CH2M HILL’s cash and cash equivalents and short term investments are maintained in accounts held primarily in the U.S. with some accounts held by major banks and financial institutions located in Europe, Canada and Asia. Concentrations of credit risk relative to trade receivables are limited due to our diverse client base, which includes the U.S. federal government, various states and municipalities, foreign government agencies, and a variety of U.S. and foreign corporations operating in a broad range of industries and geographic areas. Contracts with the U.S. federal government and its prime contractors usually contain standard provisions for permitting the government to modify, curtail or terminate the contract for convenience of the government or such prime contractors if program requirements or budgetary constraints change. Upon such a termination, CH2M HILL is generally entitled to recover costs incurred, settlement expenses and profit on work completed prior to termination. Recently Adopted Accounting Standards In June 2009, the FASB issued Accounting Standards Update (ASU) No. 2009-17, Consolidations (Topic 810)— Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, revising the existing guidance on the consolidation and disclosures of variable interest entities (VIEs) which was codified in Accounting Standards Codification (ASC) 810-10. Specifically, it changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting rights should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the entity’s purpose and design and the reporting entity’s ability to direct the activities of the other entity that most significantly impact the other entity’s economic performance. The guidance also requires additional disclosures about a company’s involvement with VIEs and requires an entity to continually assess any significant changes in risk exposure as well as an entity’s assessment of the primary beneficiary of the entity. ASC 810-10 became effective for CH2M HILL beginning January 1, 2010. For further discussion of the effect of the adoption, see Note 3. In January 2010, the FASB issued ASU No. 2010-06 (ASU 2010-06), Fair Value Measurements and Disclosures (Topic 820)—Improving Disclosures about Fair Value Measurements. ASU 2010-06 requires expanded fair value disclosures about transfers into and out of Levels 1 and 2 fair value measurements and clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. ASU 2010-06 is effective for CH2M HILL beginning January 1, 2010. The adoption of this accounting standard update did not have a material impact on CH2M HILL’s financial position, results of operations, cash flows or disclosures. (2) Receivables, net Receivables are stated at net realizable values and consist of receivables billed to clients as well as receivables for which revenue has been earned but has not yet been billed. The U.S. federal government accounted for approximately 20% and 13% of CH2M HILL’s net receivables at December 31, 2010 and 2009, respectively. No other customers exceeded 10% of total receivables at December 31, 2010 or 2009. The change in the allowance for uncollectible accounts consists of the following for the years ended December 31: 2010
($ in thousands)
Balance at beginning of year ................................................................................................... Provision charged to expense............................................................................................... Accounts written off ............................................................................................................ Other .................................................................................................................................... Balance at end of year ..............................................................................................................
F-10
$13,190 3,521 (3,614) (1,021) $12,076
2009
$4,183 11,115 (2,049) (59) $13,190
2008
$6,963 2,172 (4,344) (608) $4,183
(3) Variable Interest Entities and Equity Method Investments CH2M HILL routinely enters into teaming arrangements to perform projects for its clients. Such arrangements are customary in the engineering and construction industry and generally are project specific. The arrangements facilitate the completion of contracts that are jointly contracted with CH2M HILL’s partners. These arrangements are formed to leverage the skills of the respective partners and include consulting, construction, design, program management and operations and maintenance contracts. CH2M HILL’s risk of loss on these arrangements is usually shared with CH2M HILLs’ partners. The liability of each partner is usually joint and several, which means that each partner may become liable for the entire risk of loss on the project. CH2M HILL performs a qualitative assessment to determine whether CH2M HILL is the primary beneficiary once an entity is identified as a VIE. A qualitative assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities including terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed, and the parties involved in the design of the entity. All of the variable interests held by parties involved with the VIE are identified and a determination of which activities are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities is made. Most of the VIEs with which the Company is involved have relatively few variable interests and are primarily related to our equity investment, subordinated financial support, and subcontracting arrangements. CH2M HILL consolidates those VIEs in which it has both the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. Upon adoption of ASC 810-10, CH2M HILL consolidated certain VIEs that were previously unconsolidated. It was determined that CH2M HILL is the primary beneficiary due to the ability to control the activities that most significantly impact the economic performance of the entity. These variable interest entities were previously not consolidated because no party absorbed the majority of the expected losses. Upon consolidation of these joint ventures, consolidated current assets increased by $35.8 million, primarily related to cash and cash equivalents and accounts receivable. Current liabilities increased by $27.6 million primarily related to accounts payable, accrued subcontractor costs and billings in excess of revenue. As of December 31, 2010, total assets of VIEs that were consolidated were $108.7 million and liabilities were $70.1 million. CH2M HILL recorded investments in unconsolidated affiliates of $83.0 million and $78.1 million for the years ended December 31, 2010 and 2009, respectively. CH2M HILL’s proportionate share of net income or loss is included as equity in earnings of joint ventures and affiliated companies in the consolidated statements of income. In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus those entities’ undistributed earnings. CH2M HILL provides certain services, including engineering, construction management and computer and telecommunications support, to these unconsolidated entities. These services are billed to the joint ventures in accordance with the provisions of the agreements. As of December 31, 2010, the total assets of VIEs that were not consolidated were $388.7 million and total liabilities were $292.5 million. The maximum exposure to losses is limited to the funding of any future losses incurred by those entities under their respective contracts with the project company. Summarized financial information for CH2M HILL’s unconsolidated VIEs and equity method investments as of and for the years ended December 31 is as follows: 2010
($ in thousands)
2009
FINANCIAL POSITION: Current assets ..................................................................................................................................... Noncurrent assets ............................................................................................................................... Total assets.....................................................................................................................................
$677,638 84,042 $761,680
$665,068 82,408 $747,476
Current liabilities ............................................................................................................................... Noncurrent liabilities ......................................................................................................................... Partners’/Owners’ equity ................................................................................................................... Total liabilities and equity .............................................................................................................
$497,338 26,486 237,856 $761,680
$480,668 31,711 235,097 $747,476
CH2M HILL’s share of equity ...........................................................................................................
$82,982
$78,053
F-11
2010
($ in thousands)
2009
2008
RESULTS OF OPERATIONS: Revenue ............................................................................................................... Direct costs .......................................................................................................... Gross margin ....................................................................................................... General and administrative expenses ................................................................... Operating income ................................................................................................ Other income, net ................................................................................................ Net income...........................................................................................................
$2,814,824 2,598,872 215,952 13,603 202,349 458 $202,807
$2,426,505 2,250,752 175,753 3,228 172,525 479 $173,004
$2,370,361 2,273,332 97,029 5,901 91,128 2,790 $93,918
CH2M HILL’s share of net income .....................................................................
$68,513
$65,539
$34,232
CH2M HILL has the following significant investments in affiliated unconsolidated companies: %Ownership
Domestic: AGVIQ—CH2M HILL Joint Venture II .......................................................... AGVIQ—CH2M HILL Joint Venture III ........................................................ Americas Gateway Builders ............................................................................. CH2M HILL/URS Team, a Joint Venture ........................................................ CH2M—WG Idaho, LLC ................................................................................. Clark-Nexsen/CH2M HILL—Norfolk ............................................................. Coastal Estuary Services .................................................................................. Connecting Idaho Partners ............................................................................... HEBL, Inc. ....................................................................................................... IAP-Hill, LLC .................................................................................................. Kaiser-Hill Company, LLC .............................................................................. National Security Technologies, LLC .............................................................. OMI/Thames Water Stockton, Inc.................................................................... Parsons CH2M HILL Program Management Consultants, Joint Venture ........ Savannah River Remediation LLC ................................................................... TIC/CH2M Culbertson Unit #1 Joint Venture ................................................. Washington Closure, LLC ................................................................................ Foreign: CH2M HILL BECA, Ltd. ................................................................................. CH2M HILL—Kunwon PMC .......................................................................... CHBM Water Joint Venture ............................................................................. CH2M Olayan .................................................................................................. CLM Delivery Partner, Limited ....................................................................... Coniisa .............................................................................................................. CPG Consultants—CH2M HILL NIP Joint Venture ....................................... ECC-VECO, LLC ............................................................................................ Golden Crossing Constructors Joint Venture ................................................... HWC Treatment Program Alliance Joint Venture ............................................ Luggage Point Alliance .................................................................................... OMI BECA, Ltd. .............................................................................................. SMNM/VECO Joint Venture. .......................................................................... Transcend Partners, Ltd ....................................................................................
F-12
49.0% 49.0% 40.0% 50.0% 50.5% 50.0% 49.9% 49.0% 100.0% 25.0% 50.0% 10.0% 50.0% 47.5% 15.0% 25.0% 30.0% 50.0% 54.0% 50.0% 49.0% 37.5% 33.3% 50.0% 50.0% 33.3% 50.0% 50.0% 50.0% 50.0% 40.0%
(4) Property, Plant and Equipment Property, plant and equipment consists of the following as of December 31: 2010
($ in thousands)
Land .................................................................................................................................................... Building and land improvements ........................................................................................................ Furniture, fixtures and equipment ....................................................................................................... Leasehold improvements .................................................................................................................... Less: Accumulated depreciation ......................................................................................................... Net property, plant and equipment..................................................................................................
$27,337 80,183 199,199 67,690 374,409 (205,148) $169,261
2009
$26,516 72,280 196,511 65,023 360,330 (163,178) $197,152
The depreciation expense is reflected in the consolidated statements of income in direct costs and general and administrative costs depending on the intended use of the asset and totaled $52.1 million, $53.5 million and $55.2 million for the years ended December 31, 2010, 2009 and 2008, respectively. (5) Employee Benefit Plan Assets CH2M HILL has investments that support deferred compensation arrangements and other employee benefit plans. These assets are recorded at fair market value primarily using Level 2 inputs. As of December 31, 2010 and 2009, the fair market value of these assets was $47.0 million and $36.2 million, respectively. (6) Acquisitions On September 7, 2007, CH2M HILL purchased all of the outstanding stock of VECO and substantially all of VECO’s operating businesses as part of a strategic initiative to expand operations into the energy industry. In connection with the acquisition of VECO, the purchase agreement established a holdback contingency of $70.0 million for tax indemnifications and the potential future payment of certain contingencies that may arise within three years after the date of acquisition. Any amounts remaining after payments for these indemnifications and contingencies are payable to the sellers of VECO. Since the date of acquisition, CH2M HILL has made distributions to the sellers of VECO and paid expenses on their behalf which were deemed distributions of the holdback contingency. At December 31, 2010 and 2009, the outstanding balance payable under the holdback contingency was $46.7 million and $49.1 million, respectively. Amounts outstanding under the holdback contingency as of December 31, 2010 represent disputed contingent claims and tax indemnifications which have not been resolved. Upon resolution of the outstanding items, CH2M HILL will likely incur costs which will be paid out of the holdback funds with any remaining amounts being remitted to the sellers. (7) Sale of Operating Assets In September 2009, CH2M HILL completed the sale of certain assets and liabilities of its Enterprise Management Solutions (EMS) business. The selling price was $86.6 million, net of amounts due for estimated working capital adjustments of $13.5 million. CH2M HILL recorded a pre-tax gain of $58.2 million during 2009. As part of the EMS sale, CH2M HILL and the purchasers entered into a preferred provider agreement whereby CH2M HILL guaranteed an annual volume of revenues of $42.5 million to be provided to the purchasers for each of the five years through September 2014. To the extent CH2M HILL does not reach this volume of revenues, it must compensate the purchasers. As of the first anniversary date of the sale, CH2M HILL met its annual guaranteed level of revenues and thus no compensation was required to be paid to the purchasers. The results of operations for EMS prior to disposition were recorded in the Facilities and Infrastructure operating segment.
F-13
(8) Goodwill and Intangible Assets Goodwill and the tradename as of December 31 consist of the following: 2010
($ in thousands)
Goodwill ................................................................................................................................................ Tradename .............................................................................................................................................
2009
$130,354 20,326 $150,680
$130,354 20,326 $150,680
Intangible assets with finite lives consist of the following: Cost
($ in thousands)
Accumulated Amortization
Net finite-lived intangible assets
December 31, 2010 Contracted backlog .......................................................................................... Customer relationships .................................................................................... Non-compete agreements and other................................................................. Total finite-lived intangible assets ...............................................................
$58,871 57,922 902 $117,695
$(58,871) (27,200) (902) $(86,973)
$— 30,722 — $30,722
December 31, 2009 Contracted backlog .......................................................................................... Customer relationships .................................................................................... Non-compete agreements and other................................................................. Total finite-lived intangible assets ...............................................................
$58,871 57,922 902 $117,695
$(56,946) (18,926) (874) $(76,746)
$1,925 38,996 28 $40,949
All intangible assets are being amortized over their expected lives up to seven years. The amortization expense reflected in the consolidated statements of income totaled $10.2 million, $27.4 million and $36.8 million for the years ended December 31, 2010, 2009 and 2008, respectively. These intangible assets are expected to be fully amortized in 2014. At December 31, 2010, the future estimated amortization expense related to these intangible assets is (in thousands): Year Ending:
2011 ............................................................................................................................. 2012 ............................................................................................................................. 2013 ............................................................................................................................. 2014 .............................................................................................................................
$8,275 8,275 8,275 5,897 $30,722
(9) Fair Value of Financial Instruments Cash and cash equivalents, receivables, unbilled revenue, accounts payable and billings in excess of revenue are carried at cost, which approximates fair value due to their short maturities. Fair value of long-term debt, including the current portion, is estimated based on Level 2 inputs. Fair value is determined by discounting future cash flows using interest rates available for issues with similar terms and average maturities. Fair value of marketable securities classified as available-for-sale, which totaled $2.4 million and $2.0 million at December 31, 2010 and December 31, 2009, respectively, were valued based on Level 1 inputs whereby a readily determinable market value exists for the specific asset. There were no transfers between fair value hierarchy levels during the years ended December 31, 2010 and 2009. The estimated fair values of CH2M HILL’s financial instruments where carrying values do not approximate fair value are as follows: 2010 Carrying Amount
Fair Value
2009 Carrying Amount
Fair Value
($ in thousands)
Mortgage notes payable ............................................... Equipment financing .................................................... Shareholder notes payable ...........................................
$15,253 $22,227 $141
F-14
$12,403 $21,439 $98
$16,672 $35,572 $95
$13,627 $33,951 $61
(10) Line of Credit and Long-term Debt On December 6, 2010, CH2M HILL entered into a Credit Agreement (the “Credit Agreement”) providing for an unsecured revolving credit facility in an amount of up to $600.0 million. Subject to certain conditions, at any time prior to the date that is thirty days before the maturity date of the Credit Agreement, CH2M HILL will be able to invite existing and new lenders to increase the size of the revolving credit facility by up to $100.0 million, for a maximum aggregate revolving credit facility of $700.0 million. The revolving credit facility has a subfacility for the issuance of standby letters of credit in a face amount up to $300.0 million, a subfacility of up to $300.0 million for multicurrency borrowings and a subfacility of up to $20.0 million for swingline loans. Revolving loans under the Credit Agreement bear interest, at CH2M HILL’s option, at a rate equal to either (i) the base rate plus a margin based on the ratio of CH2M HILL’s consolidated leverage ratio or (ii) the LIBOR rate, based on interest periods of one, two, three or six months, plus a margin based on the ratio of CH2M HILL’s consolidated leverage ratio. The base rate is equal to the greater of (i) the Federal Funds Rate, as published from time to time by the Federal Reserve Bank of New York, plus 0.5%, (ii) the swingline lender’s prime rate in effect from time to time, or (iii) the one-month LIBOR rate in effect from time to time, plus 1.0%. CH2M HILL’s consolidated leverage ratio on any date is the ratio of CH2M HILL’s consolidated total funded debt to its consolidated earnings before interest, taxes, depreciation and amortization for the preceding four fiscal quarters. There were no outstanding borrowings on the Credit Agreement as of December 31, 2010 or December 31, 2009. If CH2M HILL had borrowed under the Credit Agreement on December 31, 2010 the rate of interest charged on that balance would have been 1.76%. Prior to entering into the Credit Agreement, CH2M HILL was party to a credit agreement which provided for a $500.0 million revolving credit facility with an option to increase the initial borrowing capacity by up to an additional $250.0 million. It also provided that up to $250.0 million be available for the issuance of letters of credit to support various trade activities. At December 31, 2010, issued and outstanding letters of credit of $89.4 million were reserved against the borrowing base of the Credit Agreement, compared to $78.4 million at December 31, 2009. The Credit Agreement contains customary representations and warranties and conditions to borrowing. The Credit Agreement also includes customary affirmative and negative covenants, including covenants that limit or restrict CH2M HILL’s and its subsidiaries’ ability to incur indebtedness and other obligations, grant liens to secure their obligations, make investments, merge or consolidate, dispose of assets outside the ordinary course of business, enter into transactions with affiliates, and make certain kinds of payments, in each case subject to customary exceptions for a credit facility of this size and type. CH2M HILL is also required to comply with a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio. As of December 31, 2010, CH2M HILL was in compliance with the covenants required by the Credit Agreement. CH2M HILL’s nonrecourse and other long-term debt, as of December 31 consist of the following: 2010
($ in thousands)
2009
Nonrecourse: Mortgage payable in monthly installments to July 2020, secured by real estate, rents and leases. The note bears interest at 5.35% ............. $12,430 $13,379 Mortgage payable in monthly installments to December 2015, 2,823 3,293 secured by real estate. The note bears interest at 6.59%...................... 15,253 16,672 Other: Equipment financing, due in monthly installments to December 2014, secured by equipment. These notes bear interest ranging from 6.00% to 8.00% .......................................................................... 22,227 35,572 Shareholder notes payable ....................................................................... 141 95 Total debt..................................................................................................... 37,621 52,339 Less current portion of debt......................................................................... 13,934 14,396 Total long-term portion of debt ................................................................... $23,687 $37,943
F-15
At December 31, 2010, future principal payments on long-term debt are as follows (in thousands): Year Ending:
2011 ........................................................................................................................... 2012 ........................................................................................................................... 2013 ........................................................................................................................... 2014 ........................................................................................................................... 2015 ........................................................................................................................... Thereafter ..................................................................................................................
$13,934 10,382 2,576 2,047 1,844 6,838 $37,621
(11) Operating Lease Obligations CH2M HILL has entered into certain noncancellable leases, which are being accounted for as operating leases. At December 31, 2010, future minimum lease payments are as follows (in thousands): Year Ending:
2011 ............................................................................................................................... $115,254 2012 ............................................................................................................................... 99,680 2013 ............................................................................................................................... 84,655 2014 ............................................................................................................................... 69,375 2015 ............................................................................................................................... 59,868 Thereafter ...................................................................................................................... 102,592 $531,424 Rental expense charged to operations was $126.7 million, $138.9 million and $121.2 million during the years ended December 31, 2010, 2009 and 2008, respectively, including amortization of a deferred gain of $4.3 million in the years ended December 31, 2010 and 2009, and 2008 related to the sale-leaseback of our corporate offices. Certain of CH2M HILL’s operating leases contain provisions for a specific rent-free period. CH2M HILL accrues rental expense during the rent-free period based on total expected rent payments to be made over the life of the related lease. (12) Income Taxes Income before provision for income taxes for the years ended December 31 consists of the following: 2010
($ in thousands)
U.S. income ......................................................................................................................... Foreign income .................................................................................................................... Income before taxes .............................................................................................................
$102,047 45,452 $147,499
2009
$143,190 6,972 $150,162
2008
$55,891 3,662 $59,553
The provision for income taxes for the years ended December 31 consists of the following: 2010
($ in thousands)
Current income tax expense: Federal ............................................................................................................................ Foreign ............................................................................................................................ State and local ................................................................................................................. Total current income tax expense ............................................................................... Deferred income tax benefit: Federal ............................................................................................................................ Foreign ............................................................................................................................ State ................................................................................................................................ Total deferred income tax benefit ............................................................................... Total income tax expense........................................................................................
F-16
2009
2008
$55,835 11,729 10,939 78,503
$49,035 14,138 12,653 75,826
$38,715 (1,154) 14,725 52,286
(17,280) (4,771) (2,648) (24,699) $53,804
(23,291) (2,646) (3,469) (29,406) $46,420
(22,507) 2,462 (4,744) (24,789) $27,497
The reconciliations of income tax computed at the U.S. federal statutory tax rate to CH2M HILL’s effective income tax rate for the years ended December 31 are as follows: 2010
($ in thousands)
Pretax income ...................................................................................................................... Federal statutory rate ........................................................................................................... Expected tax expense ........................................................................................................... Reconciling items: State income taxes, net of federal benefit ........................................................................ Nondeductible meals and entertainment .......................................................................... Section 199—Domestic manufacturer deduction ............................................................ Compensation .................................................................................................................. Subsidiary earnings .......................................................................................................... Permanent expenses, exclusions and credits .................................................................... Foreign permanent expenses, taxes, credits and other ..................................................... Other ................................................................................................................................ Provision for income taxes ..................................................................................................
2009
2008
$147,499 35% 51,625
$150,162 35% 52,556
$59,553 35% 20,844
5,640 3,082 (3,686) (1,804) (5,358) 2,108 2,835 (638) $53,804
7,763 3,035 (4,515) (6,114) (7,520) (6,660) 8,442 (567) $46,420
5,620 3,563 (2,737) 1,483 (6,610) (2,743) 7,136 941 $27,497
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31 are as follows: 2010
($ in thousands)
Deferred tax assets: Net foreign operating loss carryforwards .......................................................................................... Deferred gain, insurance and other .................................................................................................... Accrued employee benefits ............................................................................................................... Total deferred tax assets .................................................................................................................... Valuation allowance .......................................................................................................................... Net deferred tax assets ....................................................................................................................... Deferred tax liabilities: Investments in affiliates ..................................................................................................................... Depreciation and amortization........................................................................................................... Net deferred tax liabilities ................................................................................................................. Net deferred tax assets ...................................................................................................................
2009
$23,050 24,758 180,055 227,863 (27,712) 200,151
$23,143 18,397 176,586 218,126 (26,019) 192,107
2,871 22,354 25,225 $174,926
6,192 28,513 34,705 $157,402
A valuation allowance is required to be established for those deferred tax assets where it is more likely than not that they will not be realized. The above valuation allowances relate primarily to operating loss carryforwards from foreign operations of $86.9 million and $77.4 million for the years ended December 31, 2010 and 2009, respectively. Taxable income within the applicable foreign subsidiary must be reported in order for the deferred tax asset to be realized. The foreign net operating losses can be carried forward for varying terms depending on the foreign jurisdiction between three years and an unlimited carry forward period. Undistributed earnings of CH2M HILL’s foreign subsidiaries amounted to approximately $75.3 million at December 31, 2010. These earnings are considered to be permanently reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been made. Upon distribution of those earnings, CH2M HILL would be subject to U.S. income taxes (subject to a reduction for foreign tax credits) and withholding taxes payable to the various foreign countries. If these earnings were repatriated as of December 31, 2010, approximately $16.3 million of income tax expense would be incurred. The tax benefit from share-based compensation awards for the years ended December 31, 2010, 2009 and 2008 was $14.0 million, $6.4 million and $6.9 million, respectively. These amounts are reflected as additional paid-in capital in the consolidated statements of shareholders’ equity and comprehensive income and are reported as financing activities in the 2010 and 2009 consolidated statements of cash flows.
F-17
A reconciliation of the beginning and ending amount of uncertain tax positions as of December 31, 2010 is as follows (in thousands): Balance at December 31, 2009 .................................................................................... $23,752 Additions for current year tax positions ...................................................................... 2,591 Additions for prior year tax positions .......................................................................... 3,882 Reductions for prior year tax positions........................................................................ (7,725) Settlement with taxing authorities ............................................................................... (777) Reductions as a result of lapse of applicable statue of expirations .............................. (6,385) Balance at December 31, 2010 .................................................................................... $15,338 CH2M HILL also recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2010 and 2009, CH2M HILL had approximately $3.0 million and $4.5 million, respectively, of accrued interest and penalties related to uncertain tax positions. CH2M HILL files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, CH2M HILL is subject to examination by taxing authorities throughout the world, including such major jurisdictions as the U.S. and Canada. With few exceptions, CH2M HILL is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities in major tax jurisdictions for years before 2003. (13) Earnings Per Share Basic earnings per share (EPS) excludes the dilutive effect of common stock equivalents and is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of common stock equivalents, which consists of stock options, and is computed using the weighted-average number of common shares and common stock equivalents outstanding during the period. Reconciliations of basic and diluted EPS for the years ended December 31 are as follows: 2010
($ in thousands)
Numerator: Net income attributable to CH2M HILL............................................................................ Denominator: Basic weighted-average common shares outstanding ........................................................ Dilutive effect of common stock equivalents..................................................................... Diluted adjusted weighted-average common shares outstanding, assuming conversion of common stock equivalents ...................................................................... Basic net income per common share ..................................................................................... Diluted net income per common share ..................................................................................
2009
2008
$93,695
$103,742
$32,056
31,458 705
31,908 691
33,487 889
32,163
32,599
34,376
$2.98
$3.25
$0.96
$2.91
$3.18
$0.93
(14) Employee Benefit Plans Deferred Compensation Plans Effective February 11, 2010, CH2M HILL amended and restated the CH2M HILL Companies, Ltd. Deferred Compensation Retirement Plan (DCRP) to form the CH2M HILL Supplemental Executive Retirement and Retention Plan (SERRP). The Plan is intended to be unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees within the meaning of Title I of the Employee Retirement Income Security Act (ERISA). Under this plan, each participant’s account consists of various contributions made to the account by CH2M HILL on behalf of the participant. CH2M HILL selects the investment vehicles available under the plan. Compensation expense was $0.6 million and $0.1 million for the year ended December 31, 2010 and 2009, respectively. In addition to the SERRP, CH2M HILL has two nonqualified deferred compensation plans that provide benefits payable to officers and certain highly compensated employees at specified future dates, upon retirement, or death. Under one plan, a participant could elect to defer base compensation and incentive compensation, in cash or common stock. Under the other plan, a participant, whose 401(k) Plan contributions are limited by the ERISA, could elect to defer additional base
F-18
compensation to which CH2M HILL may make a matching contribution. It is also used by CH2M HILL to provide additional retirement benefits for certain of its senior executives at levels to be determined from time-to-time by the Board of Directors. These deferred compensation plans are unfunded; therefore, benefits are paid from the general assets of CH2M HILL. The participant’s cash deferrals earn a return based on the participant’s selection of investments in several hypothetical investment options. Each hypothetical investment option is based on an investment fund that is similar to the 401(k) Plan. All deferrals of common stock must remain invested in common stock and are distributed in common stock. Compensation expense for the two nonqualified plans was $2.8 million and $8.4 million for the years ended December 31, 2010, and 2009, respectively. During 2008, the return on the participants hypothetical investment options decreased by $14.3 million and thus compensation expense was decreased by this amount. Stock Option Plans Effective January 1, 2009, the Board of Directors and shareholders approved the CH2M HILL Companies, Ltd. 2009 Stock Option Plan (2009 Stock Option Plan). The 2009 Stock Option Plan reserves 3,000,000 shares of CH2M HILL common stock for issuance upon exercise of stock options granted under the plan. All options outstanding under the previous plans (1999 and 2004 Stock Option Plans) that have been cancelled, expired or for any other reason cease to be exercisable, are rolled into the 2009 Stock Option Plan and are available for grant in addition to the 3,000,000 options reserved. Stock options are granted at an exercise price equal to the fair market value of CH2M HILL’s common stock at the date of grant. Stock options granted generally become exercisable 25%, 25% and 50% after one, two and three years, respectively, and have a term of five years from date of grant. The following table summarizes the activity relating to the 2009 Stock Option Plan and the 1999 and 2004 Stock Option Plans during 2010: Stock Options:
Number of Shares
Outstanding at December 31, 2009 ............................................... Granted ......................................................................................... Exercised ...................................................................................... Forfeited........................................................................................ Expired.......................................................................................... Outstanding at December 31, 2010 ...............................................
3,478,765 510,256 (899,753) (80,139) (37,284) 2,971,845
Exercisable at December 31, 2010................................................ Available for future grants ............................................................
1,592,589 2,165,019
Weighted Average Exercise Price
$25.09 $41.17 $19.01 $33.33 $20.35 $29.52 $23.91
The weighted-average remaining contractual term for all options outstanding at December 31, 2010 and 2009 was 2.4 years and 2.7 years, respectively. The aggregate intrinsic value was $50.4 million and $55.0 million, respectively. The weighted-average remaining contractual term for options vested and exercisable at December 31, 2010 and 2009 was 1.6 years and 1.7 years, respectively. The aggregate intrinsic value was $35.9 million and $33.9 million, respectively. The remaining unrecognized compensation expense related to nonvested awards as of December 31, 2010 is $4.5 million. CH2M HILL expects to recognize this compensation expense over the weighted average remaining recognition period of 1.5 years, subject to forfeitures that may occur during that period. CH2M HILL received $3.7 million, $3.9 million and $3.5 million from options exercised during the years ended December 31, 2010, 2009 and 2008, respectively. CH2M HILL’s stock option plans also allow participants to satisfy the exercise price and participant tax withholding obligation by tendering shares of company stock that have been owned by the participants for at least six months. The intrinsic value associated with exercises was $16.3 million, $11.8 million and $13.1 million during the years ended December 31, 2010, 2009 and 2008, respectively. CH2M HILL measures the fair value of each stock option grant at the date of grant using a Black-Scholes option pricing model. The weighted average grant date fair value of options granted during the years ended December 31, 2010 and 2009 was $6.30 and $5.58, respectively. The following assumptions were used in determining the fair value of options granted during 2009 and 2008: 2010
Risk-free interest rate ....................................................................................................................... Expected dividend yield................................................................................................................... Expected option life ......................................................................................................................... Expected stock price volatility ......................................................................................................... F-19
1.56% 0.00% 4.21 Years 15.06%
2009
1.86% 0.00% 4.23 Years 15.11%
CH2M HILL estimates the expected term of options granted based on historical experience of employee exercise behavior. CH2M HILL estimates the volatility of its common stock by using the weighted-average of historical volatility over the same period as option term. CH2M HILL uses the Treasury Yield Curve rates for the risk-free interest rate in the option valuation model with maturities similar to the expected term of the options. CH2M HILL does not anticipate paying any cash dividends on its common stock in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. CH2M HILL is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. CH2M HILL uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards. The total compensation expense recognized for stock options granted for the years ended December 31, 2010, 2009 and 2008 was $4.8 million, $4.7 million and $4.1 million, respectively. Payroll Deduction Stock Purchase Plan In November 1999, CH2M HILL established the Payroll Deduction Stock Purchase Plan (PDSPP) which provides for the purchase of common stock at 90% of the market value as of the date of purchase through payroll deductions by participating employees. Eligible employees may purchase common stock totaling up to 15% of an employee’s compensation through payroll deductions. An employee cannot purchase more than $25,000 of common stock under the PDSPP in any calendar year. The PDSPP is intended to qualify under Section 423 of the Internal Revenue Code (IRC). The PDSPP is not intended to qualify under Section 401(a) of the IRC and is not subject to ERISA. The PDSPP is non-compensatory since the plan is available to all shareholders and incorporates no option features such as a look-back period. Accordingly, no compensation expense is recognized in the financial statements for the PDSPP. During the years ended December 31, 2010, 2009 and 2008, a total of 569,788 shares, 688,776 shares and 784,125 shares, respectively, were issued under the PDSPP, for total proceeds of $22.2 million, $21.5 million and $21.7 million, respectively. Phantom Stock Plan In January 2000, CH2M HILL established the Phantom Stock Plan, which provides eligible individuals with added incentives to continue in the long-term service of CH2M HILL. Eligible individuals are generally individuals who are not residents of the U.S. Phantom stock grants are 100% vested on the grant date and may be redeemed after six months from the grant date. The value of phantom stock is equal to the market value of CH2M HILL’s common stock. All amounts granted under the Phantom Stock Plan are payable in cash only and are generally granted in connection with the short and long term incentive plans. Compensation expense under this plan is based on the value of the units on the date of grant. During the years ended December 31, 2010, 2009 and 2008, a total of 6,136, 1,504 and 2,050 phantom stock units, respectively, were granted under the Phantom Stock Plan. The fair values of the units granted under the Phantom Stock Plan during 2010, 2009 and 2008 were $40.52, $31.10 and $30.32, respectively. Compensation expense related to the Phantom Stock Plan during 2010, 2009 and 2008 was $0.5 million, $0.4 million, and $0.3 million, respectively. The following table summarizes the activity relating to the Phantom Stock Plan during 2010: Number of Units
Balance at December 31, 2009 .................................................................................... Granted ........................................................................................................................ Exercised ..................................................................................................................... Cancelled ..................................................................................................................... Balance at December 31, 2010 ....................................................................................
32,509 6,136 (2,135) (43) 36,467
Stock Appreciation Rights Plan In February 1999, CH2M HILL established the Stock Appreciation Rights (SARs) Plan. Eligible individuals are generally individuals who are not residents of the U.S. SARs are granted at an exercise price equal to the market value of CH2M HILL’s common stock and generally become exercisable 25%, 25% and 50% after one, two and three years, respectively, and have a term of five years from the date of the grant. All amounts granted under the SARs Plan are payable in cash only. Compensation expense under this plan is based on the vesting provisions and the market value of CH2M HILL’s common stock. F-20
Compensation expense related to the SARs Plan amounted to $0.2 million, $0.4 million and $0.4 million for the years ended December 31, 2010, 2009 and 2008, respectively. The following table summarizes the activity relating to the SARs Plan during 2010: Number of Rights
Balance at December 31, 2009 ..................................................... Granted ......................................................................................... Exercised ...................................................................................... Cancelled ...................................................................................... Balance at December 31, 2010 .....................................................
39,330 5,400 (12,113) (1,942) 30,675
Weighted Average Exercise Price
$22.71 $41.10 $18.27 $29.45 $27.28
Incentive Plans In January 2000, CH2M HILL established the Short Term Incentive Plan (STIP) to aid in the motivation, recruitment, retention and reward of employees. Management determines which employees, directors, and eligible consultants participate in the STIP. During the years ended December 31, 2010, 2009 and 2008, a total of 369,566 shares, 432,093 shares and 604,333 shares, respectively, were issued under the STIP. The fair values of the shares issued under the STIP were $40.52, $31.10 and $30.32, for the years ended December 31, 2010, 2009, and 2008, respectively. Compensation expense related to common stock awards under the STIP amounted to zero, $14.4 million and $11.2 million for the years ended December 31, 2010, 2009 and 2008, respectively. In January 1999, CH2M HILL established the Long Term Incentive Plan (LTIP) to reward certain executives and senior leaders for the creation of value in the organization through the achievement of specific long-term (3 year) goals of earnings growth and strategic initiatives. The Compensation Committee of the Board reviews and endorses participation in the LTIP in any program year and a new plan is established each year. During the years ended December 31, 2010, 2009 and 2008, a total of 279,447 shares, 323,474 shares and 262,837 shares, respectively, were issued under the LTIP at a fair value of $40.52, $31.10 and $30.32 per share, respectively. Compensation expense related to common stock awards under the LTIP amounted to $15.0 million, $13.3 million and $11.8 million for the years ended December 31, 2010, 2009 and 2008, respectively. Restricted Stock Plan In January 2000, CH2M HILL established the Restricted Stock Plan which provides eligible individuals with added incentives to continue in the long-term service of CH2M HILL. The awards are made for no consideration and vest over various periods, but are considered outstanding at the time of grant. During the years ended December 31, 2010, 2009 and 2008, a total of 186,396 shares, 111,246 shares and 70,405 shares, respectively, were granted under the Restricted Stock Plan. CH2M HILL recognizes compensation costs, net of estimated forfeitures, over the vesting term based on the fair value of the restricted stock at the date of grant. The amount of compensation expense recognized under the Restricted Stock Plan was $4.8 million, $2.9 million and $3.8 million for the years ended December 31, 2010, 2009 and 2008, respectively. In determining the amount of compensation expense, CH2M HILL has estimated that forfeitures of restricted stock shares will be less than 10% of total restricted stock shares outstanding based upon prior experience. As of December 31, 2010, there was $7.6 million of unrecognized compensation expense related to non-vested restricted stock grants. The expense is expected to be recognized over a weighted average period of 2.78 years. The following table summarizes the activity relating to the Restricted Stock Plan during 2010: Non-vested Shares
Balance at December 31, 2009 ...... Granted .......................................... Vested ............................................ Cancelled and expired ................... Balance at December 31, 2010 ......
460,205 186,396 (170,398) (28,150) 448,053
Weighted Average Grant Date Fair Value
$24.29 $42.32 $25.51 $30.40 $30.91
The weighted-average fair values of the shares granted under the Restricted Stock Plan during 2010, 2009 and 2008 were $42.32, $33.76 and $30.71, respectively. F-21
(15) Employee Retirement Plans Retirement and Tax-Deferred Savings Plan The Retirement and Tax-Deferred Savings Plan (401(k) Plan) is a profit sharing plan that includes a cash or deferred arrangement that is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code. Employees are eligible to participate in the 401(k) Plan on the first date of hire with respect to employee contributions and matching contributions. Each eligible employee begins to participate in the 401(k) Plan with respect to defined contributions as of the first day of the first month that begins on or after the eligible employee completes a twelve-month period of service during which the employee is credited with at least 1,000 hours of service. The 401(k) Plan allows for matching contributions to be made in both cash and stock. Matching contributions may be made in an amount that is based on a percentage of the employee’s contributions for the calendar quarter up to 4% of the employee’s base compensation. Participants of the 401(k) Plan are, at all times, 100% vested in the employee contribution account. Employer contributions allocated to a participant’s account generally vest over six years of completed service. Expenses related to matching contributions for the 401(k) Plan for 2010, 2009 and 2008 were $20.6 million, $25.4 million and $25.9 million, respectively. In addition, expenses related to defined contributions made in common stock for the 401(k) Plan for 2010, 2009 and 2008 were $16.6 million, $12.7 million and $14.9 million, respectively. Pension and Other Postretirement Benefits CH2M HILL has three noncontributory defined benefit pension plans. Plan benefits in two of the plans were frozen while one plan remains active. Effective December 31, 2010, the active plan was amended impacting the formula to calculate future benefits. Benefits are based on years of service and compensation during the span of employment. CH2M HILL sponsors a medical benefit plan for retired employees of certain subsidiaries. The plan is contributory, and retiree premiums are based on years of service at retirement. The benefits contain limitations and a cap on future cost increases. CH2M HILL funds postretirement medical benefits on a pay-as-you-go basis. Effective December 31, 2009, the plan was modified impacting the eligibility criteria, the cost, and the events of termination regarding the retiree medical coverage. CH2M HILL is required to (i) recognize the funded status of the defined benefit pension and other postretirement plans on the consolidated balance sheet, (ii) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost and (iii) measure defined benefit plan assets and obligations as of the date of the statement of financial position. In 2008, CH2M HILL changed its measurement date from October 31 to December 31. The impact of the change in the measurement date was not significant and proportionately allocated to current period benefit cost and accumulated other comprehensive loss. CH2M HILL expects to make contributions of $10.2 million to the pension plans in 2011. The pension, nonqualified pension and post-retirement healthcare benefit payments, including expected future services, are expected to be paid from plan assets and operating cash flows as follows: Pension Plans
($ in thousands)
2011 ........................................................................................ 2012 ........................................................................................ 2013 ........................................................................................ 2014 ........................................................................................ 2015 ........................................................................................ 2016-2020 ...............................................................................
F-22
$10,204 11,396 12,076 13,255 14,368 82,677 $143,976
Non-Qualified Pension Plans
$91 85 80 75 69 270 $670
Post-Retirement Benefit Plans
$3,110 2,588 2,852 3,174 3,499 21,850 $37,073
Benefit Expense The measurement dates used to determine pension, non-qualified pension and other post-retirement benefits for the plans are December 31, 2010, 2009 and 2008. The actuarial assumptions used to compute the net pension benefit expense, non-qualified pension benefit expense and post-retirement benefit expense are based upon information available as of the beginning of the year, as presented in the following table. Pension Plans 2010 2009 2008
Actuarial assumptions at beginning of year: Discount rate ..................................................................... Rate of compensation increase .......................................... Expected long-term rate of return on plan assets ............... Initial healthcare costs trend rate ....................................... Ultimate healthcare cost trend rate .................................... Year ultimate trend rate is reached ....................................
Non-Qualified Pension Plans 2010 2009 2008
Post-Retirement Benefit Plans 2010 2009 2008
5.90% 6.25% 6.25% 5.90% 6.25% 6.25% 5.90% 6.25% 6.25% 4.00% 4.00% 4.00% na na na na na na 7.50% 8.00% 8.00% na na na na na na na na na na na na na 5.99% 6.51% na na na na na na na 4.50% 4.50% na na na na na na na 2011 2011
na—not applicable The components of the pension benefit expense, non-qualified pension benefit expense and post-retirement benefit expense for the years ended December 31 are detailed below:
($ in thousands)
2010
Pension Plans 2009
Service costs ......................................... $5,579 Interest costs ......................................... 10,692 Expected return on plan assets .............. (9,149) Amortization of transition (asset)/obligation .............................. — Amortization of prior service costs ....... 92 Recognized gain due to curtailments .... — Recognized net actuarial loss (gain) ..... 4,058 Net expense included in current income .............................................. $11,272
Non-Qualified Pension Plans 2010 2009 2008
2008
Post-Retirement Benefit Plans 2010 2009 2008
$4,691 9,870 (8,262)
$4,229 9,213 (11,550)
$— 36 —
$— 38 —
$168 324 —
$2,878 2,340 —
$3,327 2,181 —
$3,510 2,655 —
— 87 — 4,382
(2) 87 — 91
— — — 9
— — — 3
— 297 — 6
349 354 — (3)
349 387 (1,052) (1)
349 394 — 203
$10,768
$2,068
$45
$41
$795
$5,918
$5,191
$7,111
The gain recognized in 2009 due to the curtailment in the post-retirement benefit plans represent a decrease in the accrued benefit obligation of $2.8 million, accelerated recognition of previously unrecognized loss of $0.2 million, and accelerated recognition of previously unrecognized prior service cost of $1.5 million. Benefit Obligations The actuarial assumptions used to compute the benefit obligations for the plans which are based upon information available as of December 31 are: Pension Plans 2010 2009
Actuarial assumptions at end of year: Discount rate ................................................. Rate of compensation increase...................... Initial healthcare cost trend rate .................... Ultimate healthcare cost trend rate ............... Year ultimate trend rate is reached ...............
5.80% 3.00% na na na
5.90% 4.00% na na na
Non-Qualified Pension Plans 2010 2009
5.80% na na na na
5.90% na na na na
Post-Retirement Benefit Plans 2010 2009
5.80% na na na na
5.90% na 5.99% 4.50% 2011
na—not applicable The discount rate assumptions are set annually based on several factors such as: a) the rates of return on high quality fixed income investments available and expected to be available during the period to maturity of the benefits and b) the duration of the plan liabilities is also compared to a portfolio of high quality corporate bonds appropriate to provide for the projected benefit payments of the plan. F-23
The following table summarizes the change in benefit obligation for the pension, non-qualified pension and postretirement benefit plans and change in plan assets for the pension plans for the years ended December 31: Pension Plans 2010 2009
($ in thousands)
Non-Qualified Pension Plans 2010 2009
Post-Retirement Benefit Plans 2010 2009
Benefit obligation accrued at beginning of year ................... Service cost ....................................................................... Interest cost ....................................................................... Plan contributions ............................................................. Actuarial loss (gain) .......................................................... Amendment....................................................................... Curtailments ...................................................................... Benefits paid ..................................................................... Benefit obligation at end of year...........................................
$184,716 5,579 10,692 — 2,613 (9,610) — (6,395) $187,595
$161,072 4,691 9,870 — 14,984 — — (5,901) $184,716
$651 — 36 — 32 — — (91) $628
$655 — 38 — 49 — — (91) $651
$40,281 2,878 2,340 1,272 1,388 — — (3,179) $44,980
$41,901 3,327 2,181 2,452 (3,226) — (2,771) (3,583) $40,281
Fair value of plan assets at beginning of year ....................... Actual gain on plan assets ................................................. Employer and employee contributions ............................. Benefits paid ..................................................................... Fair value of plan assets at end of year .................................
$122,588 14,426 8,073 (6,395) $138,692
$105,457 21,617 1,415 (5,901) $122,588
— — — — —
— — — — —
— — — — —
— — — — —
The weighted-average asset allocations for the benefit plans as of December 31, 2010 and 2009 by asset category are as follows: Pension Plans 2010 2009
Equity .............................................................................................................. Debt ................................................................................................................. Other ................................................................................................................ Total ............................................................................................................
54% 45% 1% 100%
52% 47% 1% 100%
The investment philosophy for the pension plans is based on a balanced asset approach allocated primarily between equity securities and debt securities. At December 31, 2010, the equity security holdings were distributed in large and small cap index funds and an international fund. The debt securities consist of two fixed income funds. CH2M HILL uses longterm historical actual return experience with consideration of the expected investment mix of the plans’ assets, as well as future estimates of long-term investment returns to develop its expected rate of return assumption used in calculating the net periodic pension cost. The following table summarizes the effect of a 1% change in the health care cost trend rate (HCCTR) on the postretirement obligation and costs: 2010
($ in thousands)
Effect of 1% increase in HCCTR as of December 31 on: Postretirement benefit obligation ...................................................................................................................... Total of service and interest cost components .................................................................................................. Effect of 1% decrease in HCCTR for the year ended December 31 on: Postretirement benefit obligation ...................................................................................................................... Total of service and interest cost components ..................................................................................................
2009
na na
$111 30
na na
(155) (45)
CH2M HILL has instituted caps on the potential growth of it’s retiree healthcare cost. Based on expected costs for 2011 and 2012, the retiree healthcare cost caps are expected to be reached in 2012 and apply in all future years. As healthcare costs continue to increase, these caps are intended to remain in force at current levels. As a result, a 1% change in the health care cost trends has no impact on the postretirement obligation or costs. Funded Status The following table presents the funded status of the pension, non-qualified pension and post-retirement benefit plans at December 31, 2010: F-24
Pension Plans
($ in thousands)
Non-Qualified Pension Plans
Post-Retirement Benefit Plans
Projected benefit obligation .......................................................... Accumulated benefit obligation .................................................... Fair value of plan assets ................................................................ Underfunded status .......................................................................
$187,595 — 138,692 $(48,903)
$628 — — $(628)
$— 44,980 — $(44,980)
Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss....................................................................... Net prior service cost ................................................................ Transition obligation ................................................................. Total ......................................................................................
$53,848 (9,446) — $44,402
$163 — — $163
$4,943 638 449 $6,030
Amounts to be recognized in 2011 as a component of net periodic cost: Net actuarial loss....................................................................... Transition obligation ................................................................. Net prior service cost ................................................................ Total ......................................................................................
$3,550 — (783) $2,767
$13 — — $13
$50 349 353 $752
The following table presents the funded status of the pension, non-qualified pension and post-retirement benefit plans at December 31, 2009: Pension Plans
($ in thousands)
Non-Qualified Pension Plans
Post-Retirement Benefit Plans
Projected benefit obligation .......................................................... Accumulated benefit obligation .................................................... Fair value of plan assets ................................................................ Underfunded status .......................................................................
$184,716 — 122,588 $(62,128)
$651 — — $(651)
$— 40,281 — $(40,281)
Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss....................................................................... Net prior service cost ................................................................ Transition obligation ................................................................. Total ......................................................................................
$60,571 256 — $60,827
$140 — — $140
$3,552 992 798 $5,342
Amounts to be recognized in 2010 as a component of net periodic cost: Net actuarial loss (gain) ............................................................ Transition obligation ................................................................. Net prior service cost ................................................................ Total ......................................................................................
$4,058 — 92 $4,150
$9 — — $9
$(3) 349 350 $696
Benefit Plan Assets CH2M HILL utilizes various investment securities, including U.S. government securities, corporate debt instruments and mutual funds. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the funded status of the plans. Additionally, certain mutual funds invest in the securities of foreign companies, which involve special risks and considerations not typically associated with investing in U.S. companies. These risks include devaluation of currencies, less reliable information about issuers, different securities transaction clearance and settlement practices, and possible adverse political and economic developments. Moreover, securities of many foreign companies and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies. Plan contributions are made and the actuarial present value of accumulated plan benefits are reported based on certain assumptions pertaining to interest rates, inflation rates, and employee demographics, all of which are subject to F-25
change. Due to uncertainties inherent in the estimations and assumptions process, it is at least reasonably possible that changes in these estimates and assumptions in the near term could be material to the amounts reported. Plan assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth, by level, within the fair value hierarchy a summary of the pension plans’ investments measured at fair value on a recurring basis at December 31, 2010.
(in thousands)
Investment Assets at Fair Value as of December 31, 2010 Level 1 Level 2 Level 3 Total
Common/collective trust & wrap contracts .......................................................... Mutual funds ......................................................................................................... Total investment assets at fair value .....................................................................
$— 88,735 $88,735
$49,957 — $49,957
$— — $—
$49,957 88,735 $138,692
(16) Segment Information CH2M HILL provides services to clients through three operating segments: Government, Environment and Nuclear, Facilities and Infrastructure, and Energy. Our Government, Environment and Nuclear segment generally provides a comprehensive range of services to the U.S. Federal government as well as services to foreign governments and industry. Our Facilities and Infrastructure segment generally provides a comprehensive range of services to various industry segments, and state, local and provincial governments. Our Energy segment generally provides a comprehensive range of services to private sector clients. CH2M HILL evaluates performance based on several factors, of which the primary financial measure is operating income. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. CH2M HILL uses operating income as its measurement of segment profit. Unallocated corporate expenses are included in “other” in the table below. Certain financial information for each segment is provided below (in thousands):
2010
Revenue from external customers ................... Equity in earnings of joint ventures and affiliated companies .................................... Depreciation and amortization ........................ Operating income (loss) .................................. Segment assets ................................................ Goodwill .........................................................
2009
Revenue from external customers ................... Equity in earnings of joint ventures and affiliated companies .................................... Depreciation and amortization ........................ Operating income (loss) .................................. Segment assets ................................................ Goodwill .........................................................
Government, Environment and Nuclear
Facilities and Infrastructure
Energy
Other
Financial Statement Balances
$2,197,585
$2,004,341
$1,220,875
$—
$5,422,801
$46,919 $4,938 $87,637 $896,389 $—
$16,609 $9,252 $91,600 $613,820 $42,384
$4,985 $48,121 $25,502 $456,871 $87,970
$— $— $(29,976) $— $—
$68,513 $62,311 $174,763 $1,967,080 $130,354
Government, Environment and Nuclear
Facilities and Infrastructure
Energy
Other
Financial Statement Balances
$1,939,188
$1,947,359
$1,612,771
$—
$5,499,318
$44,781 $5,684 $135,960 $804,885 $—
$18,557 $9,875 $71,010 $791,915 $42,384
$2,201 $65,330 $14,589 $351,222 $87,970
$— $— $(47,028) $— $—
$65,539 $80,889 $174,531 $1,948,022 $130,354
F-26
Government, Environment and Nuclear
2008
Revenue from external customers ................... Equity in earnings of joint ventures and affiliated companies .................................... Depreciation and amortization ........................ Operating income (loss) .................................. Segment assets ................................................ Goodwill .........................................................
Facilities and Infrastructure
Energy
Financial Statement Balances
Other
$1,668,865
$1,986,615
$1,934,426
$—
$5,589,906
$41,323 $5,685 $80,596 $759,310 $—
$(12,136) $8,791 $31,953 $797,145 $46,870
$5,045 $77,546 $50,866 $415,386 $87,970
$— $— $(74,240) $— $—
$34,232 $92,022 $89,175 $1,971,841 $134,840
CH2M HILL derived approximately 37%, 35% and 26% of its total revenues from contracts with the U.S. federal government in the years ended December 31, 2010, 2009 and 2008, respectively. Although CH2M HILL provides services in numerous countries, no single country outside of the U.S. accounted for 10% or greater of the total consolidated revenue. Total U.S. and international revenue for the years ended December 31 were as follows: 2010
($ in thousands)
U.S. ......................................................................................................................... International ............................................................................................................ Total ....................................................................................................................
2009
$4,274,155 1,148,646 $5,422,801
2008
$4,525,613 973,705 $5,499,318
$4,584,498 1,005,408 $5,589,906
(17) Commitments and Contingencies CH2M HILL maintains a variety of commercial commitments that are generally made available to provide support for various provisions in its engineering and construction contracts. Letters of credit are provided to clients in the ordinary course of the contracting business in lieu of retention or for performance and completion guarantees on engineering and construction contracts. CH2M HILL also posts surety bonds, which are contractual agreements issued by a surety, for the purpose of guaranteeing our performance on contracts. Bid bonds are also issued by a surety to protect owners and are subject to full or partial forfeiture for failure to perform obligations arising from a successful bid. Commercial commitments outstanding as of December 31, 2010 are summarized below: Amount of Commitment Expiration Per Period
($ in thousands)
Less than 1 Year
1-3 Years
Letters of credit ............................................... Surety and bid bonds ...................................... Total ............................................................
$67,531 1,019,431 $1,086,962
$21,232 327,221 $348,453
4-5 Years
$664 164,063 $164,727
Over 5 Years
$— — $—
Total Amount Committed
$89,427 1,510,715 $1,600,142
CH2M HILL is party to various contractual guarantees and legal actions arising in the normal course of business. Because a large portion of CH2M HILL’s business comes from federal, state and municipal sources, CH2M HILL’s procurement and certain other practices at times are also subject to review and occasional investigations by U.S. and state attorneys offices. Such state and U.S. federal government investigations, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties or could lead to suspension or debarment from future U.S. federal government contracting. These investigations often take years to complete and many result in no adverse action or alternatively, could result in settlement. Damages assessed in connection with and the cost of defending any such actions could be substantial. While the outcomes of pending proceedings are often difficult to predict, CH2M HILL’s management believes that proceedings and legal actions currently pending would not result in a material adverse effect on CH2M HILL’s results of operations or financial condition even if the final outcome is adverse to CH2M HILL. Many claims that are currently pending against CH2M HILL are covered by our professional liability insurance, after retentions and deductibles. Management estimates that the levels of insurance coverage are generally adequate to cover CH2M HILL’s liabilities, if any, with regard to such claims. Any amounts that are probable of payment by CH2M HILL, including legal fees incurred to defend, are accrued when such amounts are estimable. As of December 31, 2010 and 2009, accruals for potential estimated claim liabilities were $28.9 million and $28.7 million, respectively. F-27
In 2010, CH2M HILL was notified that the U.S. Attorney’s Office is investigating potential overtime irregularities on the DOE Hanford tank farms contract which CH2M HILL completed in 2008. Management is cooperating with the investigation but given its early stages are not yet in a position to ascertain the strength of potential claims or quantify their possible impact. Based on currently available information, CH2M HILL’s management believes that the investigation would not result in a material impact on CH2M HILL’s results of operations or financial condition, even if the final outcome is adverse to CH2M HILL. (18) Quarterly Financial Information (unaudited) CH2M HILL’s quarterly financial information for the years ended December 31, 2010 and 2009 is as follows: (In thousands except per share amounts)
2010 Revenue ................................................................ Operating income.................................................. Net income attributable to CH2M HILL............... Net income per common share Basic ................................................................. Diluted .............................................................. 2009 Revenue ................................................................ Operating income.................................................. Net income attributable to CH2M HILL............... Net income per common share Basic ................................................................. Diluted ..............................................................
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
For the Year Ended
$1,235,579 26,859 14,332
$1,341,088 62,016 31,732
$1,399,063 46,362 25,293
$1,447,071 39,526 22,338
$5,422,801 174,763 93,695
$0.45 $0.44
$1.00 $0.98
$0.81 $0.79
$0.71 $0.69
$2.98 $2.91
$1,334,083 21,339 8,329
$1,373,594 31,311 15,585
$1,441,281 82,098 58,267
$1,350,360 39,783 21,561
$5,499,318 174,531 103,742
$0.26 $0.26
$0.49 $0.48
$1.82 $1.78
$0.68 $0.66
$3.25 $3.18
F-28
Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Englewood, Douglas County, State of Colorado, on March 1, 2011. CH2M HILL COMPANIES, LTD.
By:
/s/ MICHAEL A. LUCKI Michael A. Lucki Senior Vice President and Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons in the capacities and on the dates stated, through their attorney-in-fact as appointed in the power of attorney of February 11, 2011 included as Exhibit 24.1 filed herewith. Signature
Title
Date
/s/ LEE A. MCINTIRE Lee A. McIntire
Chief Executive Officer (Principal Executive Officer)
March 1, 2011
/s/ MICHAEL A. LUCKI Michael A. Lucki
Chief Financial Officer (Principal Financial Officer)
March 1, 2011
Chief Accounting Officer (Principal Accounting Officer)
March 1, 2011
* Manuel Ernesto Aguirre
Director
March 1, 2011
* Robert W. Bailey
Director
March 1, 2011
* Robert G. Card
Director
March 1, 2011
* William T. Dehn
Director
March 1, 2011
* Jerry D. Geist
Director
March 1, 2011
* Chad O. Holliday, Jr.
Director
March 1, 2011
* Michael E. McKelvy
Director
March 1, 2011
* Georgia R. Nelson
Director
March 1, 2011
/s/ JOANN SHEA JoAnn Shea
Signature
*By:
Title
Date
* David B. Price
Director
March 1, 2011
* Jacqueline C. Rast
Director
March 1, 2011
* Nancy R. Tuor
Director
March 1, 2011
* Barry L. Williams
Director
March 1, 2011
/s/ MICHAEL A. LUCKI Michael A. Lucki, as attorney-in-fact
Exhibit 21.1 Subsidiaries of CH2M HILL Companies, Ltd. 1.
Operations Management International Inc., a California corporation
2.
CH2M HILL, Inc., a Florida corporation
3.
CH2M HILL Constructors, Inc., a Delaware corporation
4.
LG Constructors, Inc., a Delaware corporation
5.
VECO Services, Inc., an Alaskan corporation
6.
CH2M HILL Energy, Ltd., a Delaware corporation
Exhibit 23.1 Consent of Independent Registered Public Accounting Firm The Board of Directors CH2M HILL Companies, Ltd.: We consent to the incorporation by reference in the registration statement (No. 333-148101) on Form S-4 and in the registration statement (No. 333-113160) on Form S-8 of CH2M HILL Companies, Ltd. and subsidiaries (the Company) of our reports dated March 1, 2011, with respect to the consolidated balance sheets of the Company as of December 31, 2010 and 2009, and the related consolidated statements of income, shareholders’ equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2010, and the effectiveness of internal control over financial reporting as of December 31, 2010, which reports appear in the December 31, 2010 annual report on Form 10-K and to the references to our firm under the heading “Selected Financial Data” included in the annual report on Form 10-K of the Company. Our report on the consolidated financial statements of the Company refers to the Company’s adoption of new accounting standards relating to variable interest entities on January 1, 2010 and noncontrolling interests in consolidated financial statements on January 1, 2009. KPMG LLP Denver, Colorado March 1, 2011
Exhibit 24.1 POWER OF ATTORNEY Each person whose signature appears below does hereby make, constitute and appoint each of Lee A. McIntire, Michael A. Lucki, Margaret B. McLean, or JoAnn Shea as such person’s true and lawful attorney-in-fact and agent, with full power of substitution, resubstitution and revocation to execute, deliver and file with the U.S. Securities and Exchange Commission or securities registration agencies in foreign countries, including but not limited to: Argentina, Brazil, Canada, Ireland, Mexico, Poland, the United Arab Emirates, and the United Kingdom, for and on such person’s behalf, and in any and all capacities, 1.
A Registration Statement on Form S-4, any and all amendments (including post-effective amendments) thereto and any abbreviated registration statements in connection with this Registration Statement pursuant to the Securities Act of 1933, with all exhibits thereto and other documents in connection therewith or foreign jurisdiction equivalent registration statements; and
2.
An Annual Report on Form 10-K for the year ended December 31, 2010, any and all amendments (including posteffective amendments) thereto with all exhibits thereto and other documents in connection therewith, or foreign jurisdiction equivalent reports and statements,
granting unto said attorneys-in fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done as fully to all intents and purposes as such person might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent or such person’s substitute or substitutes may lawfully do or cause to be done by virtue hereof. /s/ LEE A. MCINTIRE Lee A. McIntire
February 11, 2011
/s/ MANUEL ERNESTO AGUIRRE Manuel Ernesto Aguirre
February 11, 2011
/s/ ROBERT W. BAILEY Robert W. Bailey
February 11, 2011
/s/ ROBERT G. CARD Robert G. Card
February 11, 2011
/s/ WILLIAM T. DEHN William T. Dehn
February 11, 2011
/s/ JERRY D. GEIST Jerry D. Geist
February 11, 2011
/s/ CHARLES O. HOLLIDAY, JR. Charles O. Holliday, Jr.
February 11, 2011
/s/ MICHAEL E. MCKELVY Michael E. McKelvy
February 11, 2011
/s/ GEORGIA R. NELSON Georgia R. Nelson
February 11, 2011
/s/ DAVID B. PRICE David B. Price
February 11, 2011
/s/ JACQUELINE C. RAST Jacqueline C. Rast
February 11, 2011
/s/ NANCY R. TUOR Nancy R. Tuor
February 11, 2011
/s/ BARRY L. WILLIAMS Barry L. Williams
February 11, 2011
Exhibit 31.1 CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Lee A McIntire, Chief Executive Officer of CH2M HILL Companies, Ltd., certify that: 1.
I have reviewed this annual report on Form 10-K of CH2M HILL Companies, Ltd.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
5.
a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 1, 2011 /s/ LEE A. MCINTIRE Lee A. McIntire Chief Executive Officer
Exhibit 31.2 CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Michael A. Lucki, Chief Financial Officer of CH2M HILL Companies, Ltd., certify that: 1.
I have reviewed this annual report on Form 10-K of CH2M HILL Companies, Ltd.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
5.
a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 1, 2011 /s/ MICHAEL A. LUCKI Michael A. Lucki Chief Financial Officer
Exhibit 32.1 CERTIFICATION PURSUANT TO RULE 13A-14(B) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE (18 U.S.C. SECTION 1350) In connection with the Annual Report of CH2M HILL Companies, Ltd. (the “Company”) on Form 10-K for the annual period ended December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lee A. McIntire, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350 as adopted by Section 906 of the Sarbanes-Oxley Act of 2002 that to the best of my knowledge: (1)
The Report fully complies with the requirements of section 13(a) or 15(d) of the Exchange Act as amended; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Report.
/s/ LEE A. MCINTIRE Lee A. McIntire Chief Executive Officer March 1, 2011 This certification “accompanies” the Report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2 CERTIFICATION PURSUANT TO RULE 13A-14(B) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE (18 U.S.C. SECTION 1350) In connection with the Annual Report of CH2M HILL Companies, Ltd. (the “Company”) on Form 10-K for the annual period ended December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael A. Lucki, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350 as adopted by Section 906 of the Sarbanes-Oxley Act of 2002 that to the best of my knowledge: (1)
The Report fully complies with the requirements of section 13(a) or 15(d) of the Exchange Act as amended; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Report.
/s/ MICHAEL A. LUCKI Michael A. Lucki Chief Financial Officer March 1, 2011 This certification “accompanies” the Report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Marsh DATE
MEMORANDUM OF INSURANCE
21-Apr-2011
This Memorandum is issued as a matter of information only to authorized viewers for their internal use only and confers no rights upon any viewer of this Memorandum. This Memorandum does not amend, extend or alter the coverage described below. This Memorandum may only be copied, printed and distributed within an authorized viewer and may only be used and viewed by an authorized viewer for its internal use. Any other use, duplication or distribution of this Memorandum without the consent of Marsh is prohibited. "Authorized viewer" shall mean an entity or person which is authorized by the insured named herein to access this Memorandum via http://www.marsh.com/moi? client=B867. The information contained herein is as of the date referred to above. Marsh shall be under no obligation to update such information. PRODUCER COMPANIES AFFORDING COVERAGE Marsh USA Inc. Co.A Zurich American Insurance Company ("Marsh") INSURED Co.B American Zurich Insurance Company CH2M HILL Global, Inc. Co.C National Union Fire Insurance Company of CH2M HILL Engineers, Inc. Pittsburgh, PA. CH2M HILL E&C, Inc. Co.D Lockwood Greene, Inc. et.al., COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS MEMORANDUM MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR
TYPE OF INSURANCE
A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY OCCURRENCE
A AUTOMOBILE LIABILITY ANY AUTO
POLICY NUMBER
POLICY EFFECTIVE DATE
POLICY EXPIRATION DATE
GLO378472606 USD 500,000 SIR
01-May2010
01-May2011
BAP837851615
01-May2010
01-May2011
LIMITS LIMITS IN USD UNLESS OTHERWISE INDICATED
GENERAL AGGREGATE PRODUCTS COMP/OP AGG PERSONAL AND ADV INJURY EACH OCCURRENCE FIRE DAMAGE (ANY ONE FIRE) MED EXP (ANY ONE PERSON) COMBINED SINGLE LIMIT BODILY
USD 5,000,000 USD 5,000,000 USD 1,500,000 USD 1,500,000 USD 1,500,000
USD 2,000,000
file:////aspen/.../BDS/Domestic/Central,%20LA%20Renewal%20OM030811022317/3_Published/Ready%20to%20Print/Printed/Marsh.htm[4/27/2011 11:34:03 AM]
Marsh
C EXCESS LIABILITY UMBRELLA FORM GARAGE LIABILITY
01-May2010
01-May2011
01-May2010 01-May2010 01-May2010
01-May2011 01-May2011 01-May2011
EOC382962108
01-May2010
01-May2011
A CONTRACTORS PCC386445408 POLLUTION LIABILITY
01-May2010
01-May2011
B WORKERS B COMPENSATION A / EMPLOYERS LIABILITY THE PROPRIETOR / PARTNERS / EXECUTIVE OFFICERS ARE: INCLUDED A PROFESSIONAL LIABILITY
BE23465052
WC837856616 (AOS) WC837856515 (MA & WI) WC378476105 (ID)
INJURY (PER PERSON) BODILY INJURY (PER ACCIDENT) PROPERTY DAMAGE EACH OCCURRENCE AGGREGATE
USD 5,000,000 USD 5,000,000
AUTO ONLY (PER ACCIDENT) OTHER THAN AUTO ONLY: EACH ACCIDENT AGGREGATE WORKERS Statutory COMP LIMITS EL EACH USD ACCIDENT 1,000,000 EL DISEASE USD POLICY LIMIT 1,000,000 EL DISEASE USD EACH 1,000,000 EMPLOYEE EACH CLAIM USD AND TOTAL 2,000,000 FOR ALL CLAIMS EACH CLAIM USD AND TOTAL 2,000,000 FOR ALL CLAIMS
The Memorandum of Insurance serves solely to list insurance policies, limits and dates of coverage. Any modifications hereto are not authorized.
MEMORANDUM OF INSURANCE
DATE
21-Apr-2011
This Memorandum is issued as a matter of information only to authorized viewers for their internal use only and confers no rights upon any viewer of this Memorandum. This Memorandum does not amend, extend or alter the coverage described below. This Memorandum may only be copied, printed file:////aspen/.../BDS/Domestic/Central,%20LA%20Renewal%20OM030811022317/3_Published/Ready%20to%20Print/Printed/Marsh.htm[4/27/2011 11:34:03 AM]
Marsh
and distributed within an authorized viewer and may only be used and viewed by an authorized viewer for its internal use. Any other use, duplication or distribution of this Memorandum without the consent of Marsh is prohibited. "Authorized viewer" shall mean an entity or person which is authorized by the insured named herein to access this Memorandum via http://www.marsh.com/moi? client=B867. The information contained herein is as of the date referred to above. Marsh shall be under no obligation to update such information. PRODUCER INSURED Marsh USA Inc. CH2M HILL Global, Inc. ("Marsh") CH2M HILL Engineers, Inc. CH2M HILL E&C, Inc. Lockwood Greene, Inc. et.al., ADDITIONAL INFORMATION In the policy language below, the words you or your means the Named Insured on the policy. The words us or we or our means the insurer of that policy: As respects the Commercial General Liability policy: Broad Form Additional Insured: All persons, organizations or entities for whose protection and benefit the Named Insured has agreed to name them as additional insured by contract during the term of this policy indicating such coverage. However, insurance with respect to each person, organization or entity shall not exceed such coverage and/or limits of liability of the Named Insured. Primary and Non-Contributory: Additional Insured – Primary Coverage Schedule – Name of person or organization: Broad Form Additional Insured. Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of your work for that insured by or for you. Furthermore, the following is added to Section IV Commercial General Liability Conditions paragraph 4. Other Insurance: d) This insurance is primary for the person or organization shown in the schedule, but only with respect to liability arising out of your work for that insured by or for you. Other insurance afforded to that insured will apply as excess and not contribute as primary to the insurance afforded by this endorsement. Waiver of Subrogation (Blanket) Endorsement: The following is added to the Transfer or Rights of Recovery Against Others To Us Condition: If you are required by a written contract or agreement, which is executed before a loss, to waive your rights of recovery from others, we agree to waive our rights of recovery. This waiver of rights shall not be construed to be a waiver with respect to any other operations in which the insured has no contractual interest. Separation of Insureds: Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each named insured were the only Named Insured; and b. Separately to each insured against whom claim is made or suit is brought. Per Project/Per Location Aggregate: Section III. Limits of Insurance is deleted and replaced by the following: 2. The Policy General Aggregate Limit is the most we will pay for the sum of all damages under Coverage A., except damages because of bodily injury or property damage included in the products-completed operations hazard; and all damages under Coverage B; that arise out of all of your operations, locations or
file:////aspen/.../BDS/Domestic/Central,%20LA%20Renewal%20OM030811022317/3_Published/Ready%20to%20Print/Printed/Marsh.htm[4/27/2011 11:34:03 AM]
Marsh
projects combined during the policy period, including damages under Coverage A. that may not be determinable as arising specifically from any one of your locations or projects. For purposes of the change in Limits of Insurance, the following definitions apply: "Location" means premises you own, rent or that are temporarily occupied by you. A location involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway; waterway or right-of-way of a railroad, will be deemed to be a single location. "Project" means each of your ongoing work projects away from your "locations.". As respects the Commercial Automobile policy: Blanket Additional Insured: All persons, organizations or entities for whose protection and benefit the Named Insured has agreed to name them as an additional insured by contract during the term of the policy indicating such coverage. However, insurance with respect to each person, organization or entity shall not exceed such coverage and/or limits of liability of the Named Insured. Blanket Waiver of Subrogation: Transfer of Rights of Recovery Against Others To Us In the event of any payment under this policy, we waive our right of recovery against any principal for whom the Insured is operating under a written contract when such contract requires a waiver of subrogation. It is further agreed that work commenced under letter of intent or work order, subject to subsequent reduction to writing with customers whose customary contracts would require a waiver would also fall within this blanket waiver provision. Cross Liability: The inclusion of more than one corporation, person, organization, form or entity as insured under this policy shall not in any way affect the rights of any corporation, person, organization, form or entity either as respects any claim, demand, suit or judgment made or brought by or in favor of any other insured, or by or in favor of any employee of each other insured. This policy shall protect each corporation, person, organization, form or entity in the same manner as though a separate policy has been issued to each; but nothing herein shall operate to increase the company's liability as set forth elsewhere in this policy beyond the amount or amounts for which the company would have been liable if only one person or interest had been named insured. Â The Memorandum of Insurance serves solely to list insurance policies, limits and dates of coverage. Any modifications hereto are not authorized.
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04/26/2011 City of Central
13421 Hooper Road Suite 8 Central, Louisiana 70818
City Services Proposal
Ave Maria, Florida CH2M HILL serves as the prime contractor for planning, design, and construction, water reuse and reclaimed water irrigation utilities, and wetland restoration
Public Works Services Challenge Faced with an accelerated schedule of an enterprising developer, the Ave Maria Utility Company was tasked with rapidly building water infrastructure to support the new university and surrounding planned community of Ave Maria, Florida. In partnership with the client, CH2M HILL provided fast-track, in-house, design-buildoperate services for centrally located water and wastewater facilities and a wetlands treatment system—all in time for the opening of the university.
Solution
Client Profile Ave Maria is a new, master-planned community built in southwest Florida that includes a university, more than 1 million square feet of commercial property, and about 11,000 homes. The development represents a unique approach to building a town because it has been developed in conjunction with a new university and oratory, which form the center of the community.
The water treatment plant was designed, built and is operated by CH2M HILL for the Ave Maria Utility Company and the planned community of Ave Maria. The 1.67 million-gallon-per-day plant uses membrane softening to treat the water drawn from three wells. Ave Maria’s 1-mgd activated sludge wastewater treatment plant, also part of CH2M HILL’s DBO, was built for future capacity expansions as the community grows. Wastewater treatment is achieved by using conventional activated sludge followed by tertiary filtration and high-level disinfection. The zero-discharge facility is designed for the beneficial reuse of the plant effluent for irrigation water in the community. As part of the O&M contract, employees perform administrative and financial services and engineering and field services in addition to water and wastewater O&M. The facilities won Design-Build Institute of America’s “Project of the Year” in the New York Tri-State Region and a National Merit Award.
The Ave Maria Utility Company won the Florida Section of the American Water Works Association’s Best Tasting Drinking Water contest in April 2010.
© 2011 CH2M HILL
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Bonita Springs, Florida Delivering community development services
Client Profile Twenty-two employees deliver community development services, including planning, zoning, environmental sciences, and geographic information sytem (GIS) mapping to a population of 40,900.
Community Involvement Bonita Springs’ officials are impressed with CH2M HILL’s citizen-responder approach, through which citizens who need help can quickly reach a ‘live’ person over the phone and receive assistance with just one call.
Community Development Services Challenge Bonita Springs’ city officials wanted to increase the level of focus and service for their citizens by selecting a partner to deliver community development services, such as planning, zoning, building permits, and inspection services.
Solution CH2M HILL started performing community development services for the City in July 2008. Services include planning and zoning, municipal codes, building permits and inspection services, environmental sciences, flood and stormwater review services, implementation of land development regulations, concurrency management, transportation development, determination of transferable development rights, expedited hearings, permitting, and inspections, GIS, and fee and rate studies. In addition, employees use a citizen-responder approach through which citizens who need help can quickly reach a “live” person over the phone and receive assistance with just one call. CH2M HILL reviewed all data and forms of records from Lee County and copied and/or transferred appropriate material to the City. This included records recovered in a digital format, records scanned and digitized, unique records requiring special recovery, and any information deemed relevant and important to the new community development operation.
© 2011 CH2M HILL
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Centennial, Colorado Delivering an elevated level of public works services that are measurable and results driven
Client Profile Striving to increase the level of focus and service for the citizens of Centennial, city leaders selected CH2M HILL as their partner for delivering comprehensive public works services. Centennial is the seventh-largest city in the Denver, Colorado metro area with about 100,000 residents. Centennial was the largest incorporation of its kind in U.S. history when it officially became a city on February 7, 2001.
Awards • 2009 American Public Works Association Colorado Chapter Innovative Customer Service Call Center Award (Public Works Administration category)
Public Works Services Challenge The City needed a public private partner to help achieve its vision of a model Public Works Department with leading-edge technology to assist in day-to-day operations and customer service as its focus.
Solution Community Involvement As the City’s public works provider, CH2M HILL is among the sponsors of the community’s “Centennial Under the Stars” event.
“As our city has grown, so has our ability to effectively and efficiently manage a broader range of services for Centennial citizens. We’re excited to add full public works management under the city’s leadership,” said Jacque Wedding-Scott, Centennial City Manager. “Our partner, CH2M HILL, will operate just like an extension of the City, serving people around the clock, every day of the year.”
© 2011 CH2M HILL
CH2M HILL began managing all public works functions for the City, including traffic engineering and operations, permit processing, inspections, administrative services, and street and roadside maintenance, including snow removal on July 1, 2008. CH2M HILL created a consolidated customer service center serving as a single point-of-contact for all citizens’ public works concerns. The Call Center and corresponding work management system have proven to be valuable tools for effective operations of the public works department. The Call Center provides citizens with a single telephone number to call for service or information, and virtually 100 percent of issues are resolved through innovative customer care protocols. The system assures all calls are documented, status reports are provided and issues are addressed and fixed in a timely manner. A customer satisfaction survey that included questions about resolving public works requests was conducted. The Call Center received an “excellent” rating in all categories, reflecting citizens’ satisfaction and the excellent customer service they received. CH2M HILL launched Centennial’s Public Works Department — a new citymanaged organization that delivers a complete range of services including traffic engineering and operations, permit processing, inspections, administrative services, and street and roadside maintenance. The team performs public works functions around the city including patching potholes, mowing weeds, and marking roads and crosswalks.
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Central, Louisiana Providing directly applicable municipal-services experience to help Central deliver high-quality services to citizens and create a sustainable, cost-efficient City management and operations team
Client Profile The City of Central, Louisiana selected CH2M HILL as its partner for a full range of municipal services. Incorporated in April 2005, Central is one of Louisiana’s newest cities. Covering roughly 66 square miles, it is located in East Baton Rouge Parish and is home to more than 30,000 people.
Awards • The City won the 2008 Louisiana Municipal Association Award for Outstanding Community Improvement and Basic Service including land use development, geographic information systems work, and master planning
Complete Municipal Services Challenge The City needed a public private partner to provide public works, planning and zoning, code enforcement, and general administrative functions.
Solution Community Involvement Employees participate in the City’s Cooking for Kids fundraiser and City of Central Holiday Parade.
Central’s City Council voted unanimously to select CH2M HILL as its municipal-services partner. Through the new public-private partnership, the city controls operations and decision-making, relying on CH2M HILL people to implement and manage all services.
© 2011 CH2M HILL
CH2M HILL operates nearly all city services for Central—public works, planning and zoning, code enforcement, and general administrative functions. Staff track, document, and respond to all citizen concerns within 24 hours. The project team achieved 98 percent completion rate for all public works work orders during the first year of operation and kept city offices open and services running during a December snowstorm that dumped 8 inches of snow on southern Louisiana, a rare event. In May 2008, a severe thunderstorm struck Central causing wind damage, hail, and extensive flooding. The storm damaged buildings, and trees knocked down by high winds blocked roadways around the city. State officials declared a state of emergency across Louisiana, after the storm. To assist with cleanup and repair after the storm, CH2M HILL associates followed emergency plan procedures and worked into the night with the City and utilities companies to remove debris. They completed the majority of work within hours and reopened area roads. The team cleared all roads within 30 hours of Hurricane Gustav hitting the area, a feat no other area city accomplished.
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Crestview, Florida Integrated services provide comprehensive, tailored response wastewater treatment issues during facility upgrades
Profile In February 1994, the Crestview City Council approved a contract for CH2M HILL to begin managing its wastewater facility and adjacent land application facility. The facility consists of a 2.1-mgd activated sludge process with oxidation ditches and boat-type clarifiers. Six project employees serve the community population of 12,000.
Awards
Wastewater Operations and Maintenance Services
• 2006 Florida Water Environment Foundation (FWEA)Top Ten Facility Safety Award
Challenge
• 2006 FWEA Class B Facility 2nd Place Safety Award
The City of Crestview needed help maintaining a grossly overloaded system for 3 years during the planning and construction of upgrades to the solids handling facility and assistiance with its wastewater plant upgrades.
• 2004 FWEA Class B Facility 3rd Place Safety Award.
Solution
Community Involvement Project employees assisted the City with cleanup efforts after Hurricane Opal in 1995; mobilized a total of 19 personnel from a four-state area in less than 24 hours to assist the City with clearing downed trees and rebuilding lift stations and provided generator support in the aftermath of Hurricane Ivan in 2004. Employees donate time and money to several organizations each year such as the Crestview Music Festival, the Cancer Society, the Spanish Trail Festival, and the Crestview Police Department Community Service Section. They also hosted 100 elementary school students and teachers for wastewater treatment plant, spray field, and water wells tour as part of project community and environmental enhancement activities.
© 2011 CH2M HILL
CH2M HILL assisted the City’s consulting engineering firm in initial design recommendations for the City’s $1-million solids handling facility upgrade. Employees worked beyond the contract scope to assist the City by collecting numerous samples throughout the area. CH2M HILL started up operations of the City’s new 2.1-mgd wastewater treatment plant and land application facility.
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Eldorado, New Mexico Public-private partnership yields improved performance and service
Profile CH2M HILL operates the water pumping, storage, and distribution system for the Eldorado Area Water and Sanitation District in Santa Fe, New Mexico. The 1 mgd system comprises 15 water wells, five pump stations, and 150 miles of distribution line and serves a community of approximately 8,500 people. CH2M HILL performs meter reading, billing, and customer service for the utility as well, serving nearly 3,000 accounts. This includes sending monthly billing and delinquency notices.
Cash flow for the client has increased
Water Distribution and Billing Challenge District officials needed help managing operations and maintenance (O&M) of its water distribution services and setting up a new billing system.
since CH2M HILL assumed operations.
Solution Upon assuming operations for the District, CH2M HILL associates set up billing software for the system facilitating cash flow for the District and fully staffed the office. The previous database was not compatible with the new software and much of the data required hand entry. Associates also repaired a large number of leaks in early 2005 because of a harsh winter with near-zero temperatures, which are uncommon in the area. The project team successfully transitioned from the previous operator and is helping the District build policies and set standards as they assume ownership of the utility.
Š 2011 CH2M HILL
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Grants, New Mexico The City tapped CH2M HILL to benefit from our experience in environmental protection and day-to-day operations and maintennace providing quality of service
Client Profile Grants population of 10,000 is served by 15 CH2M HILL employees.
Awards • 2009 New Mexico Water and Wastewater Association (NMWWA) West Central Section President’s Award—most improved wastewater treatment plant • 2008 Rocky Mountain Water Environment Association (RMWEA) Plant Operation Merit Award • 2007 National Safety Council (NSC) Perfect Record Award for 12 consecutive months without an occupational injury or illness resulting in days away from work
Water and Wastewater Operations and Maintenance Services Challenge
• 2007 NSC Occupational Excellence Achievement Award recognizing facilities with fewer reported injuries and illnesses than comparable businesses
In 1981, the City suffered a lawsuit brought by the Acoma and Laguna Pueblos, charging that the Rio San Jose River, was being polluted by the City’s effluent discharge. In an out-of-court settlement the City agreed to hire a qualified contract operator and construct a zero-discharge wastewater treatment facility.
• 2007 New Mexico Rural Water Association (NMRWA) John Paden Award
Solution
• 2007 NMWWA Collections Operator and Wastewater Operator of the Year Awards • 2006 and 2005 NMWWA Distribution Operator and Collections Operator of the Year Awards • 2006 NMRWA Water Operator of the Year • 2004, 2001, 2000, and 1999 NMWWA Good Housekeeping Awards • 2003 RMWEA Collection System Award
Community Involvement Employees rehabilitated San Jose Park by replacing and repairing the irrigation system, reseeding turf, replacing goal posts and fences, and installing playground equipment, saving the City $68,769. The project team installed new irrigation wiring to valves at Wells Park Ballfields, saving the City more than $6,000. Annually employees adjust 175 Headstones at the Grants Memorial Park and assist with the Mt. Taylor Quadrathlon and the Annual Fire and Ice Bike Rally. They also helped with the display of the traveling Vietnam Memorial Wall when it came to the City in 2004. © 2011 CH2M HILL
The City hired CH2M HILL to startup and operate its new facilities and expanded the contract scope to include operation of all City water utilities excluding customer service, billing and meter reading, and parks and grounds maintenance. CH2M HILL provides collection and distribution system operations and maintenance (O&M), effluent discharged for irrigating a golf course, lift stations O&M, parks and grounds maintenance, public works, pump station O&M, storage tank monitoring, wastewater lagoon O&M. The onsite project team adjusted flow pattern at the wastewater treatment plant to reduce chemical costs. By choosing to inject chemicals at the lift station employees reduced odor at the wastewater treatment plant. CH2M HILL reduced chlorine cost by 40 percent. Employees replace 10 water valves annually.
As part of CH2M HILLS Target Zero Safety initiative employees implemented a new standard operating procedure (SOP) requiring drivers to complete a 360-degree walk-around inspection before driving any vehicle to reduce vehicle incidents
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Hinesville, Georgia CH2M HILL is the full-service provider of sanitation services, street maintenance, drainage maintenance, fleet maintenance, and parks and grounds services
Client Profile Since 1984 the project team of 84 CH2M HILL employees has served a population of 32,000 including the Fort Stewart Army Installation.
Community Services The project team helped the local Department of Family and Children Services provide Thanksgiving meals to families—associates took up donations and delivered the food. The project provided free mulch and compost to citizens by recycling their “yard trash,” contributing to the environment while minimizing waste sent to landfills. Residents simply gathered their yard waste – anything green, such as tree trimmings and leaves – and placed it for curbside collection. Collection trucks, operated by CH2M HILL employees who work in Hinesville’s public works department, took the waste to the mulching facility where. The materials were used by countless citizens to enhance their lawns and flower gardens.
Public Works Services Challenge The City needed a public private partner to provide full-service sanitation services, street maintenance, drainage maintenance, fleet maintenance, and parks and grounds services.
Solution CH2M HILL is responsible for management, planning, and implementation of programs for the City’s 4-mgd, groundwater-fed municipal water production and distribution system, wastewater collection and treatment, stormwater treatment, sanitation, meter reading (including disconnects, reconnects, and line repairs), fleet maintenance, streets maintenance, parks and grounds maintenance (three parks and two playgrounds), water and sewer construction, mosquito control, and laboratory testing and analysis. CH2M HILL also is responsible for the solid waste collection for 10,000 customers. The public works operation includes vehicle maintenance for 286 vehicles and pieces of equipment. These vehicles comprise 85 vehicles for the Police Department, 25 vehicles for the Fire Department and 176 for public works (this number includes City Hall vehicles, Department of Inspections vehicles, and trucks/equipment used in public works). The team installed 3,000 new meters and replaced 5,700 existing meters from 1984 – 2005, ranging in size from 3/4 inches to 10 inches. Through optimization and crosstraining, CH2M HILL reduced number of staff through natural attrition from 107 to 84, while the City’s population has increased by 50 percent, allowing CH2M HILL to deliver more services with a reduced workforce.
© 2011 CH2M HILL
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Key West, Florida CH2M HILL performed original facility design and construction management of the City’s wastewater treatment plant
Wastewater Operations and Maintenance Services Challenge The City needed a public-private partner to operate, maintain, and manage the City’s 10-mgd extended aeration activated sludge wastewater treatment plant, 57 miles of collection lines, 23 lift stations, the stormwater drainage system including two pump assisted injection wells, and biosolids during construction in 1988 and during upgrades in 2001.
Solution
Client Profile CH2M HILL has operated the City’s 10-mgd extended aeration activated sludge wastewater treatment plant since 1988. Thirty two employees serve a population of 28,000.
Awards • Achieved National Environmental Accreditation Program laboratory certification • 2009 and 2004 Florida Department of Environmental Protection O&M Excellence Award • 2007 Florida Water Environment Association (FWEA) Collection System of the Year Award (10,000 – 50,000 Connections)
CH2M HILL has operated the City of Key West’s 10-mgd extended aeration activated sludge wastewater treatment plant since 1988. CH2M HILL performed original facility design and construction management, which was commissioned and started up by CH2M HILL. The Key West project upgraded to biological nutrient removal in September of 2001, which included partial sectioning one of two existing aeration basins to accommodate separate anoxic and reaeration zones to enhance nitrification, and the addition of a fabric filter facility to remove all but trace amounts of suspended solids from the effluent. CH2M HILL increased solids dewatering capability by designing and implementing a conveyor system to bypass small-diameter piping that created solids flow restriction. CH2M HILL eliminated hydrogen sulfide odor at four of the City’s largest pumping stations by installing a multi-level organic media scrubber systems that use forced aeration and negative pressure to neutralize gases. Staff developed a strategy using DNA investigation techniques to locate point-source contamination of the islands’ near-shore waters. CH2M HILL performed complete rehabilitation of two 110-foot-diameter clarifiers using in-house resources, saving the City more than $90,000. Staff performed control equipment upgrades by replacing outdated and unsupported Toshiba variable-frequency drives and programmable logic controllers with current technology, saving the City more than $75,000 using CH2M HILL inhouse resources. Staff also removed and replaced two 60,000-pound, 2-meter belt filter presses, saving the City more than $50,000 in labor costs Achieved National Environmental Accreditation Program laboratory certification.
• 2007 FWEA Utility Operational Performance Excellence Award • 2007 and 2005 FWEA Earl B. Phelps Award for maintaining the highest removal of major pollution-causing constituents before discharging treated effluent to receiving waters • 2007 FWEA Third Place Safety Award, wastewater • 2006 FWEA Top Ten Facility Safety Award for its outstanding safety program and dedication and commitment to public and worker safety
© 2011 CH2M HILL
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Live Oak, Florida Integrated services provide comprehensive, tailored response to the public works issues faced by citizens and meets expectations of city and citizens to create tailor made partnership for the City
Water, Wastewater, and Public Works Operations and Maintenance Services Challenge The City needed a public private partner to protect water assets and complete open public works work orders that were more than 2 years old.
Solution
Client Profile CH2M HILL’s staff of 46 delivers comprehensive water utility and public works operations and maintenance (O&M) services at Live Oak, a community of more than 6,000 in north-central Florida.
Awards • 2005 National Council for Public-Private Partnerships (NCPPP) Public-Private Partnership Award Service Category • 2003 NCPPP Public-Private Partnership Award Service Category • 2000 Florida Department of Environmental Protection Excellence in Water Treatment Plant O&M Award
Community Involvement
CH2M HILL performs wastewater collection and water distribution system maintenance, meter reading, natural gas distribution system maintenance, street and right-of-way maintenance, solid-waste collection and disposal, City vehicle repair, and grounds/cemetery/public space maintenance. CH2M HILL transitioned 33 public works associates, negotiating a new union agreement. Upon assuming operations, completed open public works work orders that were more than 2 years old. CH2M HILL operates a 2.5-mgd lime softening water treatment facility and a 1.25-mgd trickling filter wastewater facility. In July 2005, the City expanded CH2M HILL’s scope of work to include public-works services including fleet maintenance. The lime softening water treatment plant has 1.25-mgd of reservoir capacity, consisting of two ground and three elevated storage tanks. The plant comprises several raw water aerators, a solids contact unit, a recarbonation unit, and three dual media conventional filters. Chlorine is used for final disinfection, and the project is currently participating in a voluntary fluoride addition program. For the trickling filter wastewater facility, the CH2M HILL staff is responsible for the master lift station, the treatment facility, effluent disposal, and sludge disposal. The master lift station consists of two dry pit pumps; because it contains the barscreen and grit removal systems, it acts as the headworks to the treatment facility. The treatment facility incorporates two primary clarifiers, one trickling filter, and four secondary filters. Chlorine is used for the final disinfection process, and effluent is land-applied over 177 acres of grass pasture. The sludge management system consists of a 0.5-mgd digester and eight sludge-drying beds. Dried sludge is transported off site by truck and disposed of in the county landfill.
CH2M HILL helped redevelop a city/county park in 2000 using refurbished playground and park equipment.
© 2011 CH2M HILL
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Richmond Hill, Georgia Long-term management of the water cycle yields improved performance and service
Client Profile CH2M HILL provides utilities and public works operations and maintenance (O&M) services to the City. The scope of work includes O&M of a 1.5-mgd overland flow/constructed wetlands treatment system, O&M of a 1.5-mgd groundwater treatment system, water distribution, wastewater collection system and lift station maintenance, streets maintenance, fleet maintenance, meter reading, dry trash pickup, and mosquito control.
Awards • Georgia Municipal Association and Georgia Trend recognized CH2M HILL’s outstanding service delivery, innovation, and creativity in public works (population less than 10,000) for CH2M HILL’s operation of an overland wetlands treatment plant
Community Involvement Staff provide annual tours of the wastewater treatment facility and wetlands system to local high school biology students as part of community and environmental enhancement activities.
According to Richmond Hill’s City Administrator, “CH2M HILL is doing 300 percent more today than when the City ran Public Works,” while reducing costs.
© 2011 CH2M HILL
Water, Wastewater, and Public Works Operations and Maintenance Services Challenge The City needed a public-private partner to provide emergency technical and management services, cost savings, and provide customers with quality water service.
Solution CH2M HILL researched, tested, and worked with the client to purchase and install new technology to reduce the effluent ammonia concentration that was causing the plant to exceed its discharge permit; new technology reduces ammonia concentrations, as well as reducing biochemical oxygen demand, total suspended solids, grease, and odor concentrations. This project helped reduced the overall number of customer complaints. Staff saved $20,000 per year by implementing a yard-waste composting program and implemented a science-based mosquito control program. CH2M HILL implemented a scheduled stormwater ditch maintenance program and routine street sweeping program. To help meet compliance requirements CH2M HILL renegotiated wastewater permit limits to more accurately reflect system performance. CH2M HILL was Instrumental in the decommissioning and flow diversion of the City’s former wastewater treatment facility. Staff added services beyond scope of contract, such as sidewalk and driveway construction, at no additional cost CH2M HILL implemented a comprehensive computerized maintenance management program and significantly improved vehicle maintenance program through computerized management. The vehicle and equipment maintenance program comprises 159 units. This includes 33 police vehicles, seven pieces of other police equipment, four fire engines, two fire vehicles, 26 public works vehicles, three parks vehicles, seven City Hall vehicles, and 77 pieces of other equipment such as lawn mowers, weed eaters, chainsaws, tractors, and bailers.
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Sandy Springs, Georgia Helping to create the most efficient, responsive, and cost effective city possible with an unparalleled record of municipal success
Client Profile Georgia’s Governor’s Commission for the City of Sandy Springs selected CH2M HILL in September 2005 to perform public works, administration, and technical services for the newly formed City. The City’s ambitious goal was to improve municipal services via a landmark public-private partnership structured to reduce cumbersome administration and sharpen the City’s attentiveness and response to citizen needs. The population of 90,000 is served by 175 CH2M HILL employees.
Awards • 2010 Pioneer Institute’s Better Government Competition Awards runner-up • In 2006 CH2M HILL was the recipient of the National Council for Public-Private Partnerships’ Annual Public-Private Partnership Award for Innovation for our groundbreaking partnership with the City.
Community Involvement CH2M HILL donated $5,000 to the City’s campaign to raise money for Deyang, China earthquake victims. Employees participated in the 22nd Annual Sandy Springs Festival, held each year during the third week in September benefiting Heritage Sandy Springs, a nonprofit organization serving North Fulton and other neighboring communities.
© 2011 CH2M HILL
Water Operations and Maintenance Services Challenge After struggling for decades to become a city, Sandy Springs residents voted overwhelmingly in June 2005 to incorporate and assume responsibility for providing all city services to its nearly 90,000 residents. To address this challenge, the Sandy Springs Commission sough a trusted partner to engage on notice of recommendation, deliver uninterrupted, improved services to residents, and deliver long-deferred capital improvements to enhance quality of life.
Solution Our team manages services encompassing public works (including stormwater management), parks and recreation, transportation, planning and zoning, and community development. CH2M HILL works with a core group of vendors and partners to develop telephone and data communications, customize datamanagement software for City services, hire and train staff for key functions and services, and create financial-management systems and procedures. In addition to our core services, CH2M HILL assisted the City government with transition, staffing, communication systems, selection and buildout of City Hall, and key purchases and acquisitions. The project team compiled a draft City Code containing initial ordinances for all core municipal operations and services. CH2M HILL hired staff and assisted the Commission in interviewing candidates for initial positions, established City benefits plan, and facilitated hiring of all police staff and worked with Fulton County to transfer all hard-copy and electronic data records. CH2M HILL was able to address the substantial backlog of zoning and permitting applications to be reviewed and processed in the first 2 months and reduced time for plan review from 8 weeks to 3 weeks—with a new target set for 2 weeks. Staff brought the City’s initial Web site online in 3 weeks, started municipal court services within 90 days of cityhood, and identified new revenue streams and devised a collection system for items such as a the hotel/motel tax, the alcohol excise tax, and the auto rental tax. CH2M HILL also completed the synchronization of 21 traffic control signals on Roswell Road approximately 3 weeks ahead of schedule.
ch2mhill.com
Swainsboro, Georgia Public-private partnership yields an improved preventive maintenance program protecting the City’s project assets and providing service at a lower cost
Client Profile CH2M HILL has provided O&M services to the City of Swainsboro since September 1992. The original scope of work included O&M of a wastewater treatment plant, 5 wells, 20 lift stations, and the distribution and collection system including meter reading and billing. The wastewater treatment plant is rated at 3 mgd, and processes at the plant include extended aeration, secondary clarifiers, and aerobic digestion. The treated water supply system’s capacity is 1.8 mgd. It has five pump stations, 80 miles of distribution line, and five water wells. In September 1993, the City added operation of the entire Public Works Department—including streets, vehicle maintenance, building inspection, and department administration—to the scope of work. 23 employees serve Swainboro’s population is of 7,500.
Awards • 2009 Georgia Association of Water Professionals (GAWP) State Plant of the Year (1.1 to 10.0-mgd secondary treatment category) • 2009 GAWP Platinum Award for 6-year of perfect compliance, water and wastewater • 2009 GAWP Water Distribution System of the year (less than 10,000 customers) • 2009 GAWP Collections System of the Year award (less than 5,000 customers). • 2008GAWP Platinum Award for 5 years of perfect compliance, water and wastewater
Community Involvement Strong supports of the community where they live and work the project team implemented a community involvement program including activities with the Emanuel County Department of Family and Children Services and Georgia’s Rivers Alive program. The team donated 100 indoor water conservation kits that included a shower head, sink aerators, a toiler bladder and leak detection tablets to Swainsboro residents; and donated 500 water conservation wheels containing tips on how to conserve water and facts about water usage.
© 2011 CH2M HILL
Water and Wastewater Operations and Maintenance Services Challenge The City needed a public-private partner to address significant maintenance challenges at the facilities and implement an aggressive preventive maintenance program.
Solution The project is organized into four departments: water and wastewater, public works, fleet maintenance, and streets. The team is responsible for sampling and meter reading, and administers a land application program and an industrial pretreatment program (IPP). CH2M HILL works closely with local industries, the City, and the Georgia Environmental Protection Division to ensure the effectiveness of the IPP. To protect the community and its residents the project team increased sewer system reliability by implementing a sewer main flushing program, preventing major blockages that cause overflows and backups. The team repaired a water tower valve using in-house resources, saving the City $6,000. CH2M HILL addressed significant maintenance challenges at the facilities by developing an extensive work order database. The team averages more than 300 preventive tasks per month. CH2M HILL installed water and sewer lines for an industrial park and a school complex, using inhouse resources to save the City several thousand dollars in labor costs. The project is responsible for maintenance of all rights-of-way, including trimming and edging. Responsibilities also include the landscape maintenance of two area cemeteries, and aiding the local golf course with drainage difficulties.
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The Villages, Florida Public-private partnership yields improved performance and service at lower cost to meet the demands of growing population
Water and Wastewater Operations and Maintenance Services Challenge A growing population, environmental regulations, and expectations of citizens cause the City to create a tailor made partnership to support its growing community.
Solution CH2M HILL provides complete operations and maintenance of all public and private utility systems for The Villages, Florida. The project encompasses eight water treatment systems, three wastewater treatment plants, collection and distribution systems, meter reading, and residential and commercial sanitation services.
Profile The project has grown from serving a population of 5,000 with a staff of 13 to serving a population of 57,000 with a staff of more than 50. Within the past year, CH2M HILL assumed management of the sanitation department, impacting the monthly growth/construction rate of approximately 400 homes per month.
Awards • 2003 Florida Water Environment Association’s Safety Award • 2003 Florida Water & Pollution Control Operators Association Safety Award (Combined Overall category) • 2001 Florida Rural Water Association (FRWA) Manager of the Year • 2000 FRWA Wastewater Operator of the Years
Wastewater treatment facilities employ EIMCO Carousel technology which produces reuse quality effluent through nitrification/denitrification and effluent filtration. CH2M HILL is responsible for approximately 165 miles of effluent reuse transmission lines and associated pumping facilities that serve effluent reuse ponds, golf courses, and right of ways/medians. The collection system includes 95 lift stations, 175 miles of force mains, and 220 miles of gravity sewer. CH2M HILL maintains four elevated storage tanks, three Crom ground storage tanks, and 225 miles of water mains associated with the water system. Associates assist with maintenance of 18 effluent irrigation pumping stations, with supplemental groundwater capability. A ninth water treatment facility was completed in Fall 2005 and continued community growth may result in a fourth wastewater treatment plant. CH2M HILL automated the meter reading system for more than 7,500 water and sewer accounts shortening the billing cycles and dramatically improving billing accuracy and implemented extensive backflow prevention program with certified backflow technicians. Staff worked closely with District engineer in selecting and installing odor control and noise suppression systems at the wastewater treatment plants and with engineers in design, construction, and startup of wastewater and water treatment plant expansions and upgrades. CH2M HILL removed and disposed of accumulated wastewater system grit inhouse providing the District with significant cost savings and installed variable frequency drives on all process motors to better control energy use; along with CH2M HILL’s proprietary energy management programs, saved the community $40,000 per year in energy costs.
Staff developed and implemented a Hurricane Preparedness and Response Plan, maintaining compliant operations during inclement weather. Four of the pumping stations are linked to fire hydrants, providing fire protection for the community. CH2M HILL also manages an ornamental lock channel, aesthetic fountains, and a HVAC chiller facility.
© 2011 CH2M HILL
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Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
ARIZONA Pine Strawberry Water Improvement District Pine Strawberry Water Improvement District
*
N/A
18
N/A
* Billing and Collection * Meter Reading * Water Distribution
12/1/2010
* Mr. Gary Lovetro, Board Chairman 6306 West Hardscrabble Road Pine, AZ 85544 928/476-3066
Danny Stephens, Project Manager P.O. Box 134 Pine, AZ 85544 928/476-4222
Town of Prescott Valley Prescott Valley WTP Juan Mancha, Project Manager 8434 East Long Mesa Drive
* * * *
Booster Pump Station O&M Chlorination Ground Storage Tanks Well Systems
2
4
10
* Customer Service * Distribution and Collection System O&M * Lift Stations O&M * Meter Reading * Wastewater Treatment Plant O&M * Water Treatment Plant O&M * Water Well O&M
11/1/1993
* Mr. Neil Wadsworth, Utility Division Manager 7501 Civic Circle Prescott Valley, AZ 86314 928/759-3078
* * * * *
Activated Sludge Anoxic/Oxic Belt Filter Press BFP Dewatering Biological Nutrient Removal (BNR)
3.75
N/A
9
* Customer Service * Distribution and Collection System O&M * Lift Stations O&M * Meter Reading * Wastewater Treatment Plant O&M
11/1/1993
* Mr. Neil Wadsworth, Utility Division Manager 7501 Civic Circle Prescott Valley, AZ 86314 928/759-3078
* * * * * * * * * * *
Dewatering Filtration Lagoons Landfill Management Oxidation Ditch Screening-Fixed Screening-Rotary drum screen Secondary Clarifiers Sludge Disposal Tertiary Treatment Ultraviolet (UV) Disinfection
9/5/2005
* Mr. Curt Russell, Site Manager
Prescott Valley, AZ 86314 928/759-9062
Prescott Valley WWTP John Bowman, Project Manager P.O. Box 26428 Prescott Valley, AZ 86312 928/775-3377
* Water Treatment Plant O&M * Water Well O&M
PG&E Topock Compressor Station PG&E Topock Compressor Station Scott O'Donnell, Project Manager 55 S. Lake Havasu Avenue CH2M HILL OMI Unit F Box 385 Lake Havasu City, AZ 86403 760/326-3328
Monday, April 18, 2011
* Clarification * * * * * *
0.2
N/A
N/A
* Groundwater Treatment Plant O&M
Extraction Wells Hexavalent Chromium Reactor Injection Wells Iron Oxidation Reactor Microfiltration Reverse Osmosis
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
P.O. Box 337 Needles, CA 92363 760/326-5531
Page 1 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
ARIZONA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Oil and Water Separation * QED Pump Systems * SU Extractor
N/A
N/A
N/A
* Construction Oversight * Groundwater Extraction System O&M * Groundwater Monitoring * Groundwater Treatment Plant O&M * Remedial Design Support
1/1/2007
CONFIDENTIAL CLIENT
* A20 Process * Belt Filter Press * Biological Nutrient Removal (BNR)
11.2
N/A
38
* Harvesting and Marketing * Hay Harvesting * Industrial Pretreatment Program * Landfill Disposal * Lift Stations O&M * Site Mitigation * Supervisory Control and Data Acquisition (SCADA) * Wastewater Treatment Plant O&M
4/1/1984
* Mr. David Jurgens, Utilites Department Director 113 West Mountain Fayetteville, AR 72701 479/575-8318
10
N/A
N/A
* Harvesting and Marketing * Hay Harvesting * Industrial Pretreatment Program * Landfill Disposal * Lift Stations O&M * Site Mitigation * Supervisory Control and Data Acquisition (SCADA) * Wastewater Treatment Plant O&M
4/1/1984
* Mr. David Jurgens, Utilites Department Director 113 West Mountain Fayetteville, AR 72701 479/575-8318
1.67
N/A
12
* Collection System O&M * Laboratory Analysis * Receiving Water Monitoring * Sludge Management * Wastewater Treatment Plant O&M
7/1/1993
* Ms. Bernie Schroeder, Engineering Division Manager 1225 Lincoln Way Auburn, CA 95603 530/823-4211
ARKANSAS City of Fayetteville Paul R. Noland WWTP Duyen Tran, Project Manager 1400 North Fox Hunter Road Fayetteville, AR 72701 479/443-3292
* * * * * * * * *
Dewatering Effluent Filtration Irrigation Odor Scurbbers Post Aeration Screening-Facilities Secondary Treatment Sludge Hauling Ultraviolet (UV) Disinfection
West Side Treatment Plant
* * * *
A2C Process Aeration BFP Dewatering Biological Nutrient Removal (BNR)
* * * * * *
Filtration Grit/Screenings Removal Odor Scurbbers Secondary Clarifiers Sludge Hauling Ultraviolet (UV) Disinfection
* * * * * * *
Activated Sludge Belt Filter Press BFP Dewatering Chlorine Disinfection Dechlorination Dewatering Extended Aeration/Activated Sludge Filtration Odor Control Oxidation Ditch Secondary Clarifiers Sludge Disposal
Duyen Tran, Project Manager 15 S. Broyles Avenue Fayetteville, AR 72701 479/443-3292
CALIFORNIA City of Auburn City of Auburn WWTP Gregory Wiltfong, Project Manager P.O. Box 6071 Auburn, CA 95603 530/889-0624
* * * * *
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 2 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
CALIFORNIA Clovis Clovis WWTP Reuse Facility Daniel Burns, Project Manager 9700 E. Ashlan Clovis, CA 93619 559/217-7273
* Cannibal Solids Reduction Process * Membrane Bioreactor * Reuse * Ultraviolet (UV) Disinfection
2.8
N/A
N/A
* Wastewater Treatment Plant O&M
1/1/2009
* Ms. Lisa Koehn, Assistant Public Utilities Director 155 N. Sunnyside Avenue Clovis, CA 93611 559/324-2607
* * * * * * * * * * * * * *
8.5
N/A
1
* Capital Improvement Planning * Effluent Reuse Program * Emergency Preparedness Program and Response Plan
7/1/1984
* Mr. Rick Smelser, City Engineer 7351 Rosanna Street Gilroy, CA 95020 408/846-0451
1/1/2006
* Mr. Tim Suydam, P.E., Operations Manager 610 W. 5th Avenue Escondido, CA 92025 760/233-3283
City of Gilroy South County Regional Wastewater Authority Brenda Miles, Project Manager 1500 Southside Drive Gilroy, CA 95020 408/848-0480
Activated Sludge Aerated Grit Chambers Belt Filter Press BFP Dewatering Comminution and Screening Dechlorination Dewatering Disinfection Effluent Percolation Filtration Full Nitrogen Removal Grit/Screenings Removal Influent Pumping Odor Control - Gas Phase Wet Scrubbers
* Facility Odor and Air Emission Control Plan * Hazardous Materials Management * Laboratory Assistance * Laboratory Management Plan * Maintenance Services * New Plant Start-up * Operability Review of New Facilities * Process Monitoring/Optimization Program * Sludge Management and Reporting Plan * Visitors/Tours/Requests for Information Plan * Wastewater Treatment Plant O&M
* * * *
Oxidation Ditch Secondary Clarifiers Sludge Disposal Solids Processing, Sludge Conditioning Facilties * Tertiary Treatment * Water Reclamation Pumping
San Diego County Water Authority Twin Oaks Valley WTP Brian MacDonald, Project Manager 3566 N. Twin Oaks Valley Road San Marcos, CA 92069 760/752-7300
* * * * *
Advanced Oxidation Biological Activated Carbon Gravity Thickener Hypochlorite Generation Membrane Filtration
100
N/A
N/A
* DBO of Water Facility * Water Treatment Plant O&M
* Ozone Disinfection * Solids Recovery via Plate Settlers * Thickening-Centrifuge
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 3 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
CALIFORNIA Turlock Irrigation District Walnut Energy Center Kurt Lind, Project Manager 3200 West Monte Vista Avenue #270 CH2M HILL OMI Turlock, CA 95380 209/883-3464
N/A
N/A
N/A
* Cooling Tower Water Treatment * Process Demineralized Water
8/2/2005
* Mr. George Davies, Plant Manager P.O. Box 949 Turlock, CA 95381 209/883-3451
*
N/A
N/A
N/A
* Building and Development * Fee Collection * Inspection * Municipal Services * Permit Processing * Planning & Zoning
8/15/2008
* Mayor Jeffrey Huff 558 Castle Pines Parkway, Unit B4-208 Castle Rock, CO 80108 303-705-0200
*
N/A
N/A
N/A
* Administrative * Inspection * Municipal Services * Permit Processing * Public Works * Street and Roadside Maintenance * Traffic Engineering and Operations
7/1/2008
* Ms. Jacque Wedding-Scott, City Manager 13133 East Arapahoe Road Centennial, CO 80112 303/754-3341
* Booster Pump Station O&M * Storage Tanks
5
N/A
N/A
* Lift Stations O&M * Water and Wastewater Treatment Plant O&M * Water Well O&M
8/1/1999
* Mr. Mike Konefal, City Administrator 130 South McKinley Fort Lupton, CO 80621 303-857-6694
* * * *
4.3
1
N/A
* Lift Stations O&M * Water and Wastewater Treatment Plant O&M
8/1/1999
* Mr. Mike Konefal, City Administrator 130 South McKinley Fort Lupton, CO 80621 303-857-6694
* * * * * * * *
Belt Filter Press Crystalizer De-Carbonator HERO Units Mixed Bed Demin System Plate Clarifier WAC Softeners Zeolite Softeners
* Zero Liquid Discharge Treatment System
COLORADO Castle Pines City of Castle Pines Alan Lanning, Project Manager 7501 Village Square Drive, Suite 100 Castle Pines North, CO 80108 303/705-0200
City of Centennial City of Centennial Richard Lewis, Project Manager 12503 E. Euclid Drive Suite 280 Centennial, CO 80111 303/325-8014
City of Fort Lupton City of Fort Lupton Water Wells Thom Vinson, Project Manager P.O. Box 128 Fort Lupton, CO 80621 303/857-9442
City of Fort Lupton WTP Thom Vinson, Project Manager 16660 WCR 16 Fort Lupton, CO 80621 303/857-9442
Monday, April 18, 2011
Disinfection Filtration Membrane Filtration Surface Water Treatment
* Water Well O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 4 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
COLORADO City of Fort Lupton City of Fort Lupton WWTP Thom Vinson, Project Manager 12285 Highway 52 Fort Lupton, CO 80621 303/857-9442
* * * * * * * *
Activated Sludge Aeration Aerobic Digestion Centrifuge Dewatering Dewatering Screening-Fixed Secondary Clarifiers Sludge Stabilization
2.75
N/A
3
* Lift Stations O&M * Water and Wastewater Treatment Plant O&M * Water Well O&M
8/1/1999
* Mr. Mike Konefal, City Administrator 130 South McKinley Fort Lupton, CO 80621 303-857-6694
40
N/A
30
* Capital Improvement Planning * Collection System O&M * Combined Sewer Overflow (CSO) * Facility Odor and Air Emission Control Plan * Industrial Cost Recovery Program * Industrial Pretreatment Program * Sludge Management and Reporting Plan, (Outsourced) * Wastewater Treatment Plant O&M
1/4/1999
* Mr. Gary Zrelak, Director of Operations 260 East Street New Haven, CT 06511 203/466-5285
18
2
22
* Collection System O&M * Combined Sewer Overflow (CSO) * Laboratory Analysis * Sludge Handling and Disposal * Wastewater Treatment Plant O&M
6/1/2000
* Mr. Hal Alvord, Director, Public Works Department 125 East Avenue Norwalk, CT 06856-5125 203/854-7797
* Ultraviolet (UV) Disinfection
CONNECTICUT Greater New Haven Water Pollution Control Authority Greater New Haven East Shore Water Pollution Abatement Facility John Torre, Project Manager 345 East Shore Parkway New Haven, CT 06512 203/466-5277
* * * * * * * * *
Activated Sludge Aerated Grit Chambers Belt Filter Press BFP Dewatering (Outsourced) Biological Nutrient Removal (BNR) Dewatering Disinfection Grit/Screenings Removal Incineration
* Influent Conveyance * Odor Control - Gas Phase Wet Scrubbers * Odor Control - Liquid Phase Chemical Oxidation * * * * *
Preliminary Treatment Primary Clarifiers Primary Treatment Secondary Clarifiers Secondary Treatment with BNR * Sludge Incineration * Thickening-Gravity Belt
City of Norwalk Norwalk WWTP Richard Lavoie, Project Manager 60 South Smith Street East Norwalk, CT 06855 203/854-5517
Monday, April 18, 2011
* Activated Sludge * Biological Nutrient Removal (BNR) * * * * * * *
Comminution and Screening Disinfection Odor Control Primary Clarifiers Secondary Treatment Sludge Disposal Thickening-Gravity Belt
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 5 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
CONNECTICUT City of West Haven City of West Haven WWTP Kevin Dahl, Project Manager 2 Beach Street West Haven, CT 06516 203/937-3637
* * * * *
Activated Sludge Aerated Grit Chambers Belt Filter Press BFP Dewatering Biological Nutrient Removal (BNR) * Chlorine Disinfection * Dewatering
12.5
N/A
13
* Collection System O&M * Wastewater Treatment Plant O&M
1.67
N/A
N/A
* Billing and Collection * Construction Inspection
10/24/1999
* Mr. William Norton, WPCC Administrator 355 Main St. West Haven, CT 06516 203/937-3591
* Final Clarifiers * Fluidized Bed Sludge Incinerator * Grit/Screenings Removal * Incineration * Odor Control * Primary Clarifiers * Secondary Clarifiers * Thickening-Gravity Belt
FLORIDA Ave Maria Ave Maria Utility Company WTP
* Membrane Treatment * Nano Filtration
Jason Vogel, Project Manager Ave Maria, FL 34142 239/304-2231
Jason Vogel, Project Manager 5325 Ave Maria Blvd Ave Maria, FL 34142 239/304-2231
* Mr. David B. Genson, PE, Vice President of Engineering 2600 Golden Gate Parkway Naples, FL 34105 239/262-2600
8/1/2006
* Mr. David B. Genson, PE, Vice President of Engineering 2600 Golden Gate Parkway Naples, FL 34105 239/262-2600
5/22/2008
* Mr. Gary Price, City Manager 9101 Bonita Beach Road Bonita Springs, FL 34135 239/949-6262
* Customer Service * Developer Plan Review * Distribution and Collection System O&M * GIS * Irrigation Pump Stations * Meter Reading * Water and Wastewater Treatment Plant O&M
5325 Ave Maria Blvd
Ave Maria Utility Company WWTF
8/1/2006
* Conventional Activated Sludge * Disinfection * Secondary Treatment * Tertiary Filters
1
N/A
13
* Billing and Collection * Construction Inspection * Customer Service * Developer Plan Review * Distribution and Collection System O&M * GIS * Irrigation Pump Stations * Meter Reading * Water and Wastewater Treatment Plant O&M
City of Bonita Springs City of Bonita Springs John Dulmer III, Project Manager 9220 Bonita Beach Road, Suite 109 Bonita Springs, FL 34135 239/444-6150
Monday, April 18, 2011
*
N/A
N/A
N/A
* Building Inspection * Municipal Services * Permit Processing * Planning & Zoning
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 6 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
FLORIDA City of Crestview City of Crestview WWTP John Casmus, Project Manager P.O. Box 1647 Crestview, FL 32536 850/682-0829
* * * * *
Biosolids Land Application Chlorine Contact Influent/Effluent Pumping Oxidation Ditch Secondary Treatment
2.75
N/A
2
* Effluent Reuse Program * Land Application Site * New Plant Start-up * Wastewater Treatment Plant O&M
1/27/1994
* Mr. Wayne Steele, Public Services Director P.O. Drawer 1209 Crestview, FL 32536 850/682-6132
* Secondary Treatment * Spray Field Disposal
1.5
N/A
38
* Lift Stations O&M * Wastewater Treatment Plant O&M * Water Treatment Plant O&M
2/14/2003
* Ms. Kim Kirby, City Manager 71 U.S. Highway 90 West DeFuniak Springs, FL 32435 850/892-8500
* Rotating Biological Contactor * Secondary Treatment * Spray Field Disposal
0.4
N/A
9
* Lift Stations O&M * Pump Station O&M * Wastewater Treatment Plant O&M
10/1/2003
* Mr. Howard L. McKinnon, Town Manager 711 North Main Havana, FL 32333 850/539-9762
* Activated Sludge * BFP Dewatering * Biological Nutrient Removal (BNR)
10
N/A
24
* Collection System O&M * Maintenance Services * New Facility Startup * Stormwater Drainage System * Warranty Protection * Wastewater Treatment Plant O&M
12/1/1988
* Mr. Gary Bowman, Utilities Director and Contract Administrator P.O. Box 1409 Key West, FL 33040 305/395-9933
City of DeFuniak Springs DeFuniak Springs Jayne Swift, Project Manager 209 N. 4th Street DeFuniak Springs, FL 32433 850/892-8536
Town of Havana Havana WWTP Tommy Fletcher, Project Manager 110 E. 14th Avenue Havana, FL 32333 850/539-2808
City of Key West Richard A. Heyman Environmental Pollution Control Facility Greg Smith, Project Manager P.O. Box 4998 Key West, FL 33041-4998 305/292-5100
* Chemical Phosphorus Removal * Deep Well Injection * Effluent Filtration * Extended Aeration * Nitrification * Pump Assisted Stormwater Injection Wells * Secondary Treatment * Ultraviolet (UV) Disinfection
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 7 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
FLORIDA City of Live Oak City of Live Oak Public Works
*
N/A
N/A
N/A
Todd Hunt, Project Manager 701 Lime Avenue Live Oak, FL 32064 386/364-3749
* Cemetery Maintenance * Collection and Distribution System O&M * Disposal Program * Gas Department * Meter Reading * Mowing * Public Works * Sanitation Services
7/15/2005
* Mr. Robert Farley, City Administrator 101 S.E. White Avenue Live Oak, FL 32060 386/362-2276
2/3/1997
* Mr. Robert Farley, City Administrator 101 S.E. White Avenue Live Oak, FL 32060 386/362-2276
2/3/1997
* Mr. Robert Farley, City Administrator 101 S.E. White Avenue Live Oak, FL 32060 386/362-2276
* Sludge Management * Solid Waste Collection and Handling * Street Maintenance * Vehicle Maintenance * Water and Wastewater Treatment Plant O&M City of Live Oak WTP Todd Hunt, Project Manager 701 Lime Avenue Live Oak, FL 32064 386/364-3749
* Dual Media Conventional Filters * Elevated and Ground Storage Tanks * Lime Softening * Raw Water Aerators * Recarbonation Unit * Solids Contact Unit
2.5
N/A
N/A
* Sanitation Services * Sludge Management * Solid Waste Collection and Handling * Street Maintenance * Vehicle Maintenance * Water and Wastewater Treatment Plant O&M
* Surface Water Treatment
City of Live Oak WWTP Todd Hunt, Project Manager 701 Lime Avenue Live Oak, FL 32064 386/364-3749
* * * * *
Chlorination Primary Clarifiers Restricted Access Sprayfield Secondary Clarifiers Trickling Filter
* Cemetery Maintenance * Collection and Distribution System O&M * Disposal Program * Gas Department * Meter Reading * Mowing * Public Works
1.25
N/A
21
* Cemetery Maintenance * Collection and Distribution System O&M * Disposal Program * Gas Department * Meter Reading * Mowing * Public Works * Sanitation Services * Sludge Management * Solid Waste Collection and Handling * Street Maintenance * Vehicle Maintenance * Water and Wastewater Treatment Plant O&M
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 8 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
FLORIDA City of Mary Esther Mary Esther WWTP David Coup, Project Manager 195 Christobal Road
* * * *
Aerobic Digestion Drying Beds Oxidation Ditch Secondary Treatment
1.1
N/A
14
* Collection and Distribution System O&M * Groundwater Treatment Plant O&M * Lift Stations O&M * Maintenance Services * Meter Reading * Operations * Spray Field Operations
4/1/2003
* Ms. Lynne Oler, City Manager 195 Christobal Road North Mary Esther, FL 32569 850/243-3566 ext 11
3.62
1
N/A
* Backflow Prevention Program * Sludge Management * Solid Waste Management * Water and Wastewater Treatment Plant O&M
10/1/1994
* Mr. Mike Wade, Utility Director 423 West Jefferson Street Quincy, FL 32351 850/627-7681
1.5
N/A
10
* Backflow Prevention Program * Sludge Management * Solid Waste Management * Water and Wastewater Treatment Plant O&M
10/1/1994
* Mr. Mike Wade, Utility Director 423 West Jefferson Street Quincy, FL 32351 850/627-7681
1
N/A
N/A
* Collection and Distribution System O&M * Computerized Maintenance Management * Effluent Reuse Program * In-house Laboratory Services * Lift Stations O&M * Meter Installation * Meter Repair and Replacement * Public Works * Pump Station O&M * Sludge Management * Solid Waste Collection and Handling
8/1/1993
* Mr. John Wise, Chief Financial Officer 1020 Lake Sumter Landing The Villages, FL 32162 352/753-6270
Mary Esther, FL 32569 850/243-3566 X22
City of Quincy City of Quincy WTP
* Elevated and Ground Storage Tanks
Terry Presnal, Project Manager
* Groundwater Treatment * Odor Control
300 North GF&A Drive Quincy, FL 32351 850/627-2089
City of Quincy WWTP Terry Presnal, Project Manager 300 North GF&A Drive Quincy, FL 32351 850/627-2089
* Activated Sludge * Aerobic Digestion * Biological Nutrient Removal (BNR) * Contact Stabilization * Five stage Bardenpho * Secondary Treatment
The Villages Little Sumter Utility Co. WTP Russ Vaughn, Project Manager 501 Sunbelt Road The Villages, FL 32159 352/259-2802
* Calibration of pH Electrodes * Clarification * Disinfection Using Sodium Hypochlorite * Water Filtration
* Water and Wastewater Treatment Plant O&M
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 9 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
FLORIDA The Villages Little Sumter Utility Co. WWTP Russ Vaughn, Project Manager 501 Sunbelt Road The Villages, FL 32159 352/259-2802
* Biological Nutrient Removal (BNR) * Chlorine Contact * Chlorine Disinfection * Equipment Maintenance * Flowmeter * Secondary Treatment
1
18
95
* Collection and Distribution System O&M * Computerized Maintenance Management * Effluent Reuse Program * In-house Laboratory Services * Lift Stations O&M * Meter Installation * Meter Repair and Replacement * Public Works
8/1/1993
* Mr. John Wise, Chief Financial Officer 1020 Lake Sumter Landing The Villages, FL 32162 352/753-6270
8/1/1993
* Mr. John Wise, Chief Financial Officer 1020 Lake Sumter Landing The Villages, FL 32162 352/753-6270
8/1/1993
* Mr. John Wise, Chief Financial Officer 1020 Lake Sumter Landing The Villages, FL 32162 352/753-6270
* Pump Station O&M * Sludge Management * Solid Waste Collection and Handling * Water and Wastewater Treatment Plant O&M Villages of Lady Lake WTP Russ Vaughn, Project Manager 501 Sunbelt Road
* Disinfection Using Calcium Hypchlorite * Flowmeter * Water Line Flushing
16.5
N/A
N/A
The Villages, FL 32159 352/259-2802
* Collection and Distribution System O&M * Computerized Maintenance Management * Effluent Reuse Program * In-house Laboratory Services * Lift Stations O&M * Meter Installation * Meter Repair and Replacement * Public Works * Pump Station O&M * Sludge Management * Solid Waste Collection and Handling * Water and Wastewater Treatment Plant O&M
Villages of Lady Lake WWTP Russ Vaughn, Project Manager 501 Sunbelt Road Lady Lake, FL 32159 352/259-2802
* * * * *
Activated Sludge Aeration Basins Aerobic Digestion BFP Dewatering Biological Nutrient Removal (BNR) * Chlorination/Dechlorination * Clarification * Effluent Disposal * * * *
Monday, April 18, 2011
Effluent Filtration Effluent Irrigation Secondary Treatment Thickening-Gravity Belt
1.65
18
95
* Collection and Distribution System O&M * Computerized Maintenance Management * Effluent Reuse Program * In-house Laboratory Services * Lift Stations O&M * Meter Installation * Meter Repair and Replacement * Public Works * Pump Station O&M * Sludge Management * Solid Waste Collection and Handling * Water and Wastewater Treatment Plant O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 10 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
GEORGIA City of Albany City of Albany WPCP
* Equipment Maintenance * Facility Maintenance Only
33
N/A
104
* Groundskeeping * Lift Stations O&M * Maintenance Services * Management Services for Operation
1/1/2000
* Ms. Ann Zimmer-Shepherd, Superintendent, Sewer System Division P.O. Box 447 Albany, GA 31707 229/883-8998
* * * * *
4.4
N/A
2
* Industrial Pretreatment Program * Laboratory Analysis * Water and Wastewater Treatment Plant O&M
12/1/1994
* Mayor Barry Blount 101 West Lamar Street Americus, GA 31709 229/924-4411
* Treated Water Supply
5
N/A
N/A
* Industrial Pretreatment Program * Laboratory Analysis * Water and Wastewater Treatment Plant O&M
12/1/1994
* Mayor Barry Blount 101 West Lamar Street Americus, GA 31709 229/924-4411
* Treated Water Supply
2
N/A
N/A
* Industrial Pretreatment Program * Laboratory Analysis * Water and Wastewater Treatment Plant O&M
12/1/1994
* Mayor Barry Blount 101 West Lamar Street Americus, GA 31709 229/924-4411
* * * *
1.2
N/A
N/A
* Ditch Maintenance * Public Works * Street Maintenance * Water and Wastewater Treatment Plant O&M
10/1/1995
* Mr. Kenneth D. Roberts, City Manager 109 Forsyth Street Barnesville, GA 30204 770/358-0181
6
N/A
N/A
* Ditch Maintenance * Public Works * Street Maintenance * Water and Wastewater Treatment Plant O&M
10/1/1995
* Mr. Kenneth D. Roberts, City Manager 109 Forsyth Street Barnesville, GA 30204 770/358-0181
Ricky Adams, Project Manager 2726 Joshua Street, Bldg. 16 Albany, GA 31701 229/420-6770
City of Americus Mill Creek WWTP Richard Leisner, Project Manager P.O. Box 526 Americus, GA 31709 229/924-4419
Aerobic Digestion Belt Filter Press Chlorination Dechlorination Extended Aeration/Activated Sludge
* Secondary Treatment * Solids Handling Oak Avenue WTP Richard Leisner, Project Manager P.O. Box 526 Americus, GA 31709 229/924-4418
Railroad Street WTP Richard Leisner, Project Manager P.O. Box 526 Americus, GA 31709 229/924-4418
City of Barnesville City of Barnesville WPCP Phil Facer, Project Manager 706 Gordon Road
Sand Drying Beds Secondary Treatment Sludge Drying Lagoons Trickling Filter
Barnesville, GA 30204 770/358-0314
City of Barnesville WTP I Phil Facer, Project Manager 319 Jackson Road Barnesville, GA 30204 770/358-2356
Monday, April 18, 2011
* Conventional Treatment Plant * Trident Package Plant
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 11 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
GEORGIA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Carbon Absorption
N/A
N/A
N/A
* Groundwater Remediation * Maintenance Services
2/15/2005
CONFIDENTIAL CLIENT
* Chemical * Filtration
0.09
28
N/A
* EPA Superfund Site
12/31/2000
* Mrs. Janice Willoughby, Sr. Project Manager 1151 Jessamine Station Road
Fort Valley Fort Valley David Blackwood, Project Manager
* Industrial Water Treatment Plant O&M
* Physical
Nicholasville, KY 40356 859-854-3732
314 Martin Luther Blvd. Fort Valley, GA 31030 478/827-0998
City of Hinesville City of Hinesville Peacock WRF Robert Norby, Project Manager 623 JV Road Hinesville, GA 31313 912/369-3390
* * * * * *
Aerobic Digestion Belt Filter Press Disk Filters Mechanical Fine Barscreen Secondary Treatment Sequencing Batch Reactor (SBR) * Ultraviolet (UV) Disinfection
0.5
N/A
N/A
* Vortex Grit * Water Reuse
City of Hinesville WTP Robert Norby, Project Manager
4
4
N/A
* Facility Operations Program * Fleet Maintenance * Full Contract O&M Services * Meter Reading * New Plant Start-up * Parks and Grounds Maintenance * Public Works * Sampling and Analysis * Street Maintenance * Water and Wastewater Treatment Plant O&M
12/1/1984
* Mr. Billy Edwards, City Manager 115 East M.L. King Jr., Drive Hinesville, GA 31313 912/876-3564
* * * *
7.15
N/A
39
* Facility Operations Program * Fleet Maintenance * Full Contract O&M Services * Meter Reading * New Plant Start-up * Parks and Grounds Maintenance * Public Works * Sampling and Analysis * Street Maintenance * Water and Wastewater Treatment Plant O&M
12/1/1984
* Mr. Billy Edwards, City Manager 115 East M.L. King Jr., Drive Hinesville, GA 31313 912/876-3564
912/369-3390
623 JV Road Hinesville, GA 31313 912/369-3390
Monday, April 18, 2011
* Mr. Billy Edwards, City Manager 115 East M.L. King Jr., Drive Hinesville, GA 31313 912/876-3564
* Disinfection * Groundwater Treatment * Treated Water Supply
Hinesville, GA 31313
Robert Norby, Project Manager
12/1/1984
* Street Maintenance * Water and Wastewater Treatment Plant O&M
623 JV Road
City of Hinesville WWTP
* Facility Operations Program * Fleet Maintenance * Full Contract O&M Services * Meter Reading * New Plant Start-up * Parks and Grounds Maintenance * Public Works * Sampling and Analysis
Anaerobic Digestion Belt Filter Press Primary Clarifiers Second Stage Nitrification/Trickling Filter
* Ultraviolet (UV) Disinfection
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 12 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
GEORGIA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
*
0.432
N/A
N/A
* Administrative Support * Sample Groundwater Monitoring Wells * Site Security
1/1/2003
CONFIDENTIAL CLIENT
*
N/A
N/A
N/A
* Community Development
12/1/2006
* Mr. John Kachmar, City Manager 12000 Findley Road, Suite 400
City of Johns Creek Johns Creek
* Customer Service * Municipal Services * Parks & Rec * Planning & Zoning * Public Works
Harold Boehm Jr, Project Manager 12000 Findley Road, Suite 400 Johns Creek, GA 30097 678/512-3200
Johns Creek, GA 30097 678/512-3200
CONFIDENTIAL CLIENT * Wastewater Laboratory Analysis
N/A
N/A
N/A
* Laboratory Analysis
Pole Bridge (Land Application Site)
* Biosolids Disposal
N/A
N/A
N/A
* Beneficial Reuse of Biosolids
Phil Facer, Project Manager
* Biosolids Land Application * Hay Harvesting/Marketing
CONFIDENTIAL CLIENT
12/16/2002
CONFIDENTIAL CLIENT
DeKalb County 7/1/1990
4600 Flat Bridge Road
* Mr. Keith Adams, Plant Superintendent 4660 Flat Bridge Road Lithonia, GA 30038 770/593-9651
* Harvesting and Marketing * Suface Application of Sludge to Land
Lithonia, GA 30038 770/808-0292
City of Richmond Hill Sterling Creek Water Reclamation Facility (WRF) Rick Lauver, Project Manager 115 Bass Drive Richmond Hill, GA 31324 912/756-3803
* Overland Flow Constructive Wetlands * Secondary Treatment * Spray Field Disposal
1.5
N/A
40
* Collection and Distribution System O&M * Dry Trash Pickup * Fleet Maintenance * Laboratory Analysis * Meter Installation * Meter Reading * Public Works
3/1/2000
* Mr. Michael J. Melton, City Administrator PO Box 250 Richmond Hill, GA 31324 912/756-3345
* Street Maintenance * Water and Wastewater Treatment Plant O&M
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 13 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
GEORGIA City of Sandy Springs Sandy Springs
*
N/A
N/A
N/A
Wayne Wright, Project Manager 7840 Roswell Road Building 500 c/o CH2M HILL OMI Sandy Springs, GA 30350 770/730-5600
* Administrative * Community Development * Court Services * Customer Service * Licensing Administration & Public Revenue Admin * Municipal Services * Parks & Rec
1/1/2005
* Mr. John McDonough, City Manager 7840 Roswell Road, Building 500 Sandy Springs, GA 30350 770/730-5600
9/1/1992
* Mr. Al L. Lawson, Jr., City Administrator P.O. Box 600 Swainsboro, GA 30401 478/237-3358
* Planning & Zoning * Public Works * Storm Water * Traffic Services * Transportation
City of Swainsboro City of Swainsboro WTP Mike Connolly, Project Manager
* Groundwater Treatment * Treated Water Supply * Water Land Application
1.8
6
21
574 Industrial Way Swainsboro, GA 30401 478/237-6738 (WWTP)
* Collection and Distribution System O&M * Fleet Maintenance * Industrial Pretreatment Monitoring * Land Application Site * Meter Reading * Public Works * Sludge Management * Street Maintenance * Water and Wastewater Treatment Plant O&M
City of Swainsboro WWTP Mike Connolly, Project Manager 574 Industrial Way Swainsboro, GA 30401
* * * * *
Activated Sludge Aerobic Digestion Extended Aeration Secondary Clarifiers Secondary Treatment
3
N/A
21
* Collection and Distribution System O&M * Fleet Maintenance * Industrial Pretreatment Monitoring * Land Application Site * Meter Reading * Public Works * Sludge Management * Street Maintenance * Water and Wastewater Treatment Plant O&M
9/1/1992
* Mr. Al L. Lawson, Jr., City Administrator P.O. Box 600 Swainsboro, GA 30401 478/237-3358
N/A
N/A
3
* Meter Reading * Public Works * Sanitation Services * Solid Waste Collection and Handling * Wastewater Collection System O&M * Water Distribution * Water Production
1/5/2007
* Mayor Ann Marie Thomas 2821 River Drive Thunderbolt, GA 31404 912/354-5533
478/237-6738
Town of Thunderbolt Thunderbolt Gary Johnston, Project Manager 2821 River Drive Thunderbolt, GA 31404 912/644-7999
Monday, April 18, 2011
*
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 14 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
GEORGIA City of Vienna City of Vienna WTP Anthony Cox, Project Manager
* Elevated Water Storage Tank and Deep Wells * Groundwater Treatment
2.16
N/A
N/A
* Biosolids Converted into Fertilizer * LAS Upgrades * New Plant Start-up * Out of Scope Services * Water and Wastewater Treatment Plant O&M * Watershed Assessment
9/30/1994
* Mrs. Gail Bembry, City Administrator - City Clerk P.O. Box 436 Vienna, GA 31092 229/268-4744
* * * * * *
Biosolids Land Application Diversion Station-Sewage LAS Irrigation Stations Pump Station-Sewage Secondary Treatment Sequencing Batch Reactor (SBR)
1.325
2
1
* Biosolids Converted into Fertilizer * LAS Upgrades * New Plant Start-up * Out of Scope Services * Water and Wastewater Treatment Plant O&M
9/30/1994
* Mrs. Gail Bembry, City Administrator - City Clerk P.O. Box 436 Vienna, GA 31092 229/268-4744
* * * *
Chlorine Disinfection Clarification Coagulation Dual Media Conventional Filters
2
N/A
N/A
* Industrial Pretreatment Program * Water and Wastewater Treatment Plant O&M
12/1/1993
* Mr. Michael P. Eskew, City Administrator 214 Water Street Washington, GA 30673 706/678-3277
* * * * * * * * *
Filtration Flocculation Fluorination Lagoons Rapid Sand Filtration Sedimentation Solids Handling Stabilization Pond Surface Water Treatment
* * * * *
Caustic Soda Chlorine Disinfection Clarification Coagulation Flocculation
2
N/A
N/A
* Industrial Pretreatment Program * Water and Wastewater Treatment Plant O&M
12/1/1993
* Mr. Michael P. Eskew, City Administrator 214 Water Street Washington, GA 30673 706/678-3277
* * * * *
Fluorination Sand Filtration Sedimentation Stabilization Pond Surface Water Treatment
* * * * *
Activated Sludge Extended Aeration Land Application Secondary Treatment Sludge Drying Lagoons
4
N/A
13
* Industrial Pretreatment Program * Water and Wastewater Treatment Plant O&M
12/1/1993
* Mr. Michael P. Eskew, City Administrator 214 Water Street Washington, GA 30673 706/678-3277
100 Plant Road Vienna, GA 31092 229/268-1424
City of Vienna WWTP Anthony Cox, Project Manager 100 Plant Road Vienna, GA 31092 229/268-1424
* Watershed Assessment
City of Washington City of Washington - Aonia WTP John Scott, Project Manager 801 Andrew Drive Washington, GA 30673 706/678-7703
City of Washington - Skull Shoals WTP John Scott, Project Manager 801 Andrew Drive Washington, GA 30673 706/678-7703
City of Washington WWTP John Scott, Project Manager 801 Andrew Drive Washington, GA 30673 706/678-7703
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 15 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
GEORGIA City of Waynesboro Waynesboro WWTP Jesse Parrilla, Project Manager 501 Woodland Drive Waynesboro, GA 30830 706/554-8035
2
N/A
4
* Industrial Pretreatment Program * Laboratory Analysis * Wastewater Collection System O&M * Wastewater Instrumentation O&M * Wastewater Transportation System * Wastewater Treatment Plant Maintenance * Wastewater Treatment Plant O&M
1/1/2001
* Mr. Jerry Coalson, City Manager 628 Myrick Street Waynesboro, GA 30830 706/554-8008
Activated Sludge Aerobic Digestion Disinfection Lagoons Land Application Secondary Clarifiers
0.03
N/A
N/A
* Land Application Site * Wastewater Treatment Plant O&M
1/3/2000
* Mr. Todd Veibell, President P.O. Box 394 Twin Falls, ID 83303-0394 208/733-6581
* Chlorine Disinfection
0.125
2
1
* Biosolids Management
6/1/1988
* Mayor Chad Urie P.O. Box 170
* * * * * * * *
Activated Sludge Aeration Basins Aerobic Digestion Belt Filter Press Dechlorination Gravity Thickener Grit/Screenings Removal Secondary Clarifiers
* Sodium Hypochlorite
IDAHO Crossroads of Idaho Crossroads Water and Sewer Association John Keady, Project Manager P.O. Box 5158 Twin Falls, ID 83303-5158 208/734-9933
* * * * * *
City of Hansen City of Hansen WWTP John Keady, Project Manager P.O. Box 170 Hansen, ID 83334 208/734-9933
* * * *
Land Application Oxidation Ditch Secondary Clarifiers Sludge Drying Lagoons
* * * * * * * *
Activated Sludge Anaerobic Digestion BFP Dewatering Biofilter Grit/Screenings Removal Land Application Primary Clarifiers Secondary Clarifiers
* Wastewater Treatment Plant O&M * Water Well O&M
Hansen, ID 83334 208/423-0993
City of Twin Falls City of Twin Falls WWTP Shawn Moffitt, Project Manager P.O. Box 5158 Twin Falls, ID 83303-5158 208/734-9933
8.56
N/A
8
* Biosolids Management * Industrial Pretreatment Program * Pretreatment Plant O&M * Wastewater Treatment Plant O&M
5/1/1985
* Mr. Thomas J. Courtney, City Manager P.O. Box 1907 Twin Falls, ID 83303-1907 208/735-7271
* Thickening-Gravity Belt * Ultraviolet (UV) Disinfection
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 16 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
ILLINOIS Village of Carol Stream Village of Carol Stream Water Reclamation Center Dawn Smith, Project Manager 245 North Kuhn Road c/o Carol Stream Water Reclamation Center Carol Stream, IL 60188-4724 630/653-5499
* * * * * * * *
Activated Sludge Aerated Grit Chambers Aerobic Digestion Belt Filter Press Chlorine Disinfection Dechlorination Dewatering Filtration
* * * * * * * * *
Grit/Screenings Removal Industrial Treatment Facility Landfill Management Nitrification Secondary Clarifiers Secondary Treatment Single Sludge Sludge Disposal Sludge Stabilization
6.5
N/A
1
* Disposal Program * Industrial Pretreatment * Sludge Management * Wastewater Treatment Plant O&M
9/1/1997
* Mr. John A. Turner, Director of Public Works 124 Gerzevske Lane Carol Stream, IL 60188 630/871-6260
7.64
N/A
N/A
* Wastewater Treatment Plant O&M
5/1/2008
* Mr. Robert Flatter, Director of Public Works 475 Main Street West Chicago, IL 60185 630/293-2255
1.37
N/A
N/A
* Disposal Program * Industrial Pretreatment Program * Industrial Waste Sampling * Laboratory Analysis * Sludge Management
7/1/1991
* Mr. Chris Ward, City Manager 101 N. Calhoun Street West Liberty, IA 52776 319/627-2418
City of West Chicago West Chicago Regional WWTP John Bowman, Project Manager 725 Dayton Avenue West Chicago, IL 60185 630/293-2260
* Anaerobic Digestion * Belt Filter Press * Extended Aeration * Gas Chlorination * Methane Gas Energy Recovery * Secondary Treatment * Solids Disposal * Tertiary Filters
IOWA City of West Liberty City of West Liberty WWTP David Clark, Project Manager P.O. Box 314 West Liberty, IA 52776-0314 319/627-2173
Monday, April 18, 2011
* * * * *
Activated Sludge Aerated Grit Chambers Aerobic Digestion Grit/Screenings Removal Land Application
* * * * * *
Oxidation Ditch Secondary Clarifiers Secondary Treatment Sludge Disposal Sludge Stabilization Thickening-Gravity Belt
* Wastewater Treatment Plant O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 17 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
KANSAS City of Dodge City City of Dodge City WWTP Ben Looney, Project Manager P.O. Box 1336 Dodge City, KS 67801 620/225-4200
* Aerobic Digestion * Anaerobic Digestion * Biochemical Treatment Lagoons * Effluent Disposal * Facultative * Irrigation * Odor Control
7.2
N/A
18
* Effluent Reuse Program * Equipment Condition Evaluation * Equipment Rehabilitation/Repair Program * Laboratory Analysis * Wastewater Treatment Plant O&M
1/17/1988
* Mr. Mike Klein, Public Works Superintendent P.O. Box 880 Dodge City, KS 67801 316/225-8100
N/A
N/A
N/A
* Administrative * Community Development * Municipal Services * Public Works
3/3/2008
* Mayor Shelton "Mac" Watts 9339 Sullivan Road Central, LA 70818 255/261-5988
* Secondary Treatment
LOUISIANA City of Central Central
*
Roy Hutchinson, Project Manager 22801 Greenwell Springs Road Suite 2 Central City, LA 70739 225/262-5000
MICHIGAN Leland Township Leland Township WWTP Scott Blair, Project Manager 606 Hannah Avenue Traverse City, MI 49686 231/922-4922
* * * * *
Aerated Lagoons Clarifiers Groundwater Discharge Secondary Treatment Septic Tank Effluent Pumps
0.09
N/A
5
* Collection System O&M * Wastewater Treatment Plant O&M
8/23/1999
* Mr. Harry Larkin, Township Supervisor P.O. Box 1112 Leland, MI 49654 231/256-2465
* * * *
Air Stripper Carbon Adsorption Catalytic Oxidation Dual-phase Extraction
N/A
N/A
N/A
* Groundwater Remediation * Remediation System O&M * Soil Vapor Extraction
6/24/2002
* Mr. John Oldham, Remediation Manager 2400 Ellis road Durham, NC 27703 919/990-7789
* * * *
Aerobic Digestion Groundwater Discharge Secondary Treatment Sequencing Batch Reactor (SBR)
0.1
N/A
2
* Wastewater Treatment Plant O&M
11/1/1999
* Mr. Mike Waugh, President 4804 South Green Court Cedar, MI 49621 231/228-4285
Reichhold Inc. Ferndale Reichhold - Ferndale Konrad Lyngvar, Project Manager 701 Woodward Heights Blvd. Suite 140 A Ferndale, MI 48220 248/545-3075
Sugar Loaf Service Company Sugar Loaf WWTP Scott Blair, Project Manager 606 Hannah Avenue Traverse city, MI 49686 231/922-4922
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 18 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
MICHIGAN City of Traverse City Traverse City Regional WWTP Scott Blair, Project Manager 606 Hannah Avenue Traverse City, MI 49686 231/922-4922
* Activated Sludge * Anaerobic Digestion * Autothermophylic Aerobic Digestion * Biological Nutrient Removal (BNR) * Grit/Screenings Removal * Membrane Filtration * Primary Clarifiers * * * * * * *
8.5
N/A
8
* Industrial Pretreatment Program * Sludge Management * Wastewater Treatment Plant O&M
60
N/A
N/A
* Capital Improvement Planning * Collection System Maintenance * Collection System O&M * Computerized Maintenance Management
10/13/1990
* Mr. Bob Cole, Director of Public Services 625 Woodmere Avenue Traverse City, MI 49684 231/922-4912
Secondary Treatment Septage Treatment Sludge Reuse Tertiary Treatment Thickening-Gravity Belt Thickening-Rotary Drum Ultraviolet (UV) Disinfection
Western Townships Utilities Authority (WTUA) Middle Rouge Lift Station
*
John Polhill, Project Manager 40905 Joy Road Canton, MI 48187 734/416-1910
* Backup Equalization Basin Aeration System
John Polhill, Project Manager
* Odor Control - Gas Phase Wet Scrubbers * SCADA
Canton, MI 48188 734/397-9280
* Mr. Aaron Sprague, Director of Operations 40905 Joy Road Canton, MI 48187 734/453-2793
2/1/1994
* Mr. Aaron Sprague, Director of Operations 40905 Joy Road Canton, MI 48187 734/453-2793
7/1/1998
* Mr. Brian Kanzler, Senior Project Manager P.O. Box 13582 Research Triangle Park, NC 27709-3582 919/990-7509
* GIS/IMS System Integration * Infrastructure O&M * Operations * Pump Station O&M * Wastewater Transportation System
WTUA Lower Rouge Pump Station
3501 Haggerty Road
2/1/1994
60
N/A
2
* Capital Improvement Planning * Collection System Maintenance * Collection System O&M * Computerized Maintenance Management * GIS/IMS System Integration * Infrastructure O&M * Operations * Pump Station O&M * Wastewater Transportation System
MISSISSIPPI Reichhold Inc. Reichhold Chemicals Ronald McElwain, Project Manager 11015 Reichhold Road Gulfport, MS 39503 228/896-6924
Monday, April 18, 2011
* Activated Sludge Pond * Air Stripper * Groundwater Remediation System * Interceptor Trench * Land and Forest Application * Phyto Remediation System * Recovery Wells * Secondary Treatment
N/A
N/A
N/A
* Groundskeeping * Groundwater Remediation * Laboratory Analysis * Reporting to State and Federal Agencies
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 19 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
MISSOURI CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Batch and Continuous Treatment * Hydroxide Precipitation * pH Neutralization * Physical/Chemical settling * Plate and Frame Press * Reverse Osmosis * Sand Filtration
1.3
N/A
N/A
* Groundwater Remediation * Industrial Wastewater Treatment Plant O&M * Reverse Osmosis Water Treatment for Use in Manufacturing
8/1/2005
CONFIDENTIAL CLIENT
24
N/A
6
* Collection System O&M * Combined Sewer Overflow (CSO) * Emergency Preparedness Program and Response Plan * Emergency Repair Program * Industrial Pretreatment Program * Laboratory Management Plan * Process Monitoring/Optimization Program * Regulatory Agency Coordination * Sludge Management
5/1/1989
* Mr. Fredric J. Pocci, Executive Director 1600 Adams Street, 2nd Floor Hoboken, NJ 07030 201/963-6043
5/1/1989
* Mr. Fredric J. Pocci, Executive Director 1600 Adams Street, 2nd Floor Hoboken, NJ 07030 201/963-6043
2/4/2002
* Mr. Mike Whitney 2127 University Park Drive #360 Lansing, MI 48864 517/347-3404
* UV/Peroxide Oxidation
NEW JERSEY North Hudson Sewerage Authority Adams Street (Hoboken) WWTP Gary Fournier, Project Manager 1600 Adams Street Hoboken, NJ 07030 201/795-1411
* Dewatering * Dissolved Air Flotation Thickeners * * * * * * *
Filtration Grit/Screenings Removal Odor Control Preliminary Treatment Primary Clarifiers Secondary Treatment Sludge Hauling
* Thickening-Gravity Belt * Trickling Filter * Ultraviolet (UV) Disinfection River Road (West New York) WWTP Gary Fournier, Project Manager 6400 Hillside Avenue West New York, NJ 07093 201/861-5953
* * * * * * * * * *
Dechlorination Disinfection Grit/Screenings Removal Odor Control Screening-Fine Screen Secondary Clarifiers Sludge Disposal Sludge Hauling Thickening-Gravity Belt Trickling Filter
* Sludge Management and Reporting Plan * Wastewater Treatment Plant O&M
10
N/A
2
* Collection System O&M * Combined Sewer Overflow (CSO) * Emergency Preparedness Program and Response Plan * Emergency Repair Program * Industrial Pretreatment Program * Laboratory Management Plan * Process Monitoring/Optimization Program * Regulatory Agency Coordination * Sludge Management * Sludge Management and Reporting Plan * Wastewater Treatment Plant O&M
Rohm & Haas Rohm & Haas Thomas Kearsley, Project Manager 119 Cherry Hill Road, Suite 300 Parsippany, NJ 07054 973/997-2874
Monday, April 18, 2011
* Groundwater Remediation System
N/A
N/A
N/A
* Air Sparge * Groundwater Remediation * Groundwater Treatment Plant O&M * Soil Vapor Extraction * System Installation
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 20 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
NEW MEXICO Eldorado Area Water and Sanitation District * Distribution System * Pumping Facilities
1
5
N/A
* Billing * Maintenance Services * Meter Reading * Operation and Management * Water Distribution
12/1/2004
* Mr. Jim Jenkins, Board President 1 Caliente Road, Suite F PMB 506 Santa Fe, NM 87508 505/466-2411
City of Farmington WTP I
* Filtration Plants with Ferric Chloride Coagulation
20
15
N/A
1/12/2000
Ronald Rosen, Project Manager
* * * * *
* Collection and Distribution System O&M * Emergency Preparedness Program and Response Plan
* Mr. Ruben Salcido, O&M Manager/Environmental Coordinator 800 Municipal Drive Farmington, NM 87401-2663 505/599-1284
1/12/2000
* Mr. Ruben Salcido, O&M Manager/Environmental Coordinator 800 Municipal Drive Farmington, NM 87401-2663 505/599-1284
Eldorado Area Water and Sanitation District Douglas Gaumer, Project Manager 1 Caliente Road Suite B Santa Fe, NM 87508 505/466-1085
City of Farmington
615 South Carlton Drive Farmington, NM 87401 505/326-1918
Flocculation Pumping Stations Sedimentation Storage Tanks Surface Water Treatment
City of Farmington WTP II
* Filtration Plants with Ferric Chloride Coagulation
Ronald Rosen, Project Manager
* * * *
615 South Carlton Drive Farmington, NM 87401 505/326-1918
Pumping Stations Sedimentation Storage Tanks Surface Water Treatment
* Environmental Lab Services * Fleet Maintenance * Industrial Pretreatment Program * Irrigation Ditch Crossings and Trash Screens * MRAS Activated Sludge MRAS Activated Sludge * Process Monitoring/Optimization Program * Sludge Management and Reporting Plan * Stormwater Drainage System * Water and Wastewater Treatment Plant O&M 10
15
N/A
* Collection and Distribution System O&M * Emergency Preparedness Program and Response Plan * Environmental Lab Services * Fleet Maintenance * Industrial Pretreatment Program * Irrigation Ditch Crossings and Trash Screens * MRAS Activated Sludge MRAS Activated Sludge * Process Monitoring/Optimization Program * Sludge Management and Reporting Plan * Stormwater Drainage System * Water and Wastewater Treatment Plant O&M
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 21 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
NEW MEXICO City of Farmington City of Farmington WWTP Ronald Rosen, Project Manager 615 South Carlton Drive Farmington, NM 87401 505/326-1918
* * * *
BFP Dewatering Chlorination/Dechlorination Influent Conveyance Preliminary Treatment, degritting and screening * Preliminary Treatment, odor control * Residuals Management * Secondary Treatment
6.7
N/A
19
* Sludge Drying Beds * Solids Processing, Sludge Conditioning Facilties
* Collection and Distribution System O&M * Emergency Preparedness Program and Response Plan * Environmental Lab Services * Fleet Maintenance * Industrial Pretreatment Program * Irrigation Ditch Crossings and Trash Screens * MRAS Activated Sludge MRAS Activated Sludge
1/12/2000
* Mr. Ruben Salcido, O&M Manager/Environmental Coordinator 800 Municipal Drive Farmington, NM 87401-2663 505/599-1284
11/1/1988
* Mr. Bob Horacek, City Manager P.O.Box 879 Grants, NM 87020 505/287-7927
11/1/1988
* Mr. Bob Horacek, City Manager P.O.Box 879 Grants, NM 87020 505/287-7927
11/13/2000
* Mr. Mike Sanderson, General Manager 366 Las Campanas Drive Santa Fe, NM 87506 505/629-1129
* Process Monitoring/Optimization Program * Sludge Management and Reporting Plan * Stormwater Drainage System * Water and Wastewater Treatment Plant O&M
* Trickling Filter
City of Grants City of Grants WTP Anthony Martinez, Project Manager
* Disinfection * Pumping Facilities * Storage Tanks
6.5
2
N/A
P.O. Box 702 Grants, NM 87020 505/287-2908
* Collection and Distribution System O&M * Effluent Discharged for Irrigating Golf Course * Lift Stations O&M * Parks and Grounds Maintenance * Public Works * Pump Station O&M * Storage Tank Monitoring * Wastewater Lagoon * Water Well O&M
City of Grants WWTP Anthony Martinez, Project Manager P.O. Box 702
* * * *
Aerated Lagoons Chlorine Disinfection Screening-Fixed Secondary Treatment
1.8
N/A
6
Grants, NM 87020 505/287-2910
* Collection and Distribution System O&M * Effluent Discharged for Irrigating Golf Course * Lift Stations O&M * Parks and Grounds Maintenance * Public Works * Pump Station O&M * Storage Tank Monitoring * Wastewater Lagoon * Water Well O&M
Las Campanas Las Campanas WTP Kyle Medders, Project Manager P.O. Box 6384 Santa Fe, NM 87502-6384 505/988-5114
Monday, April 18, 2011
* * * * * * * *
Blue Staking Booster Pump Station O&M Chlorination General Distribution System Repairs Storage Tanks Valve Maintenance Water Distribution Water Line Flushing
1.5
1
N/A
* Distribution and Collection System O&M * Effluent Discharged for Irrigating Golf Course * Meter Installation * Meter Reading * Meter Repair and Replacement * Supervisory Control and Data Acquisition (SCADA) * Water and Wastewater Treatment Plant O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 22 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
NEW MEXICO Las Campanas Las Campanas WWTP Kyle Medders, Project Manager P.O. Box 6384 Santa Fe, NM 87502-6384 505/988-5114
* * * * *
Aeration Basins Aerobic Digestion Auto Bar Screen Chlorination Effluent Storage and Transfer Station * Holding Ponds * Influent Pumping
* Mr. Mike Sanderson, General Manager 366 Las Campanas Drive Santa Fe, NM 87506 505/629-1129
0.2
N/A
10
* Distribution and Collection System O&M * Effluent Discharged for Irrigating Golf Course * Meter Installation * Meter Reading * Meter Repair and Replacement * Supervisory Control and Data Acquisition (SCADA) * Water and Wastewater Treatment Plant O&M
11/13/2000
* Activated Sludge * Secondary Treatment
1.2
N/A
21
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M * Domestic Well Permitting Program * Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
* * * *
6
N/A
N/A
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M * Domestic Well Permitting Program * Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
0.5
N/A
N/A
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M * Domestic Well Permitting Program
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
* Pista Grit Chamber (Vortex) * Secondary Treatment * Sequencing Batch Reactor (SBR)
City of Rio Rancho Plant #1 WWTP Cliff Leeper, Project Manager 4300 Sara Road Rio Rancho, NM 87124 505/896-8811
Plant #2 WWTP Cliff Leeper, Project Manager 4300 Sara Road
Activated Sludge Belt Filter Press Nitrate Removal Secondary Treatment
Rio Rancho, NM 87124 505/896-8811
Plant #3 WWTP
* Activated Sludge * Secondary Treatment
Cliff Leeper, Project Manager 4300 Sara Road Rio Rancho, NM 87124 505/896-8811
Plant #4 WWTP Cliff Leeper, Project Manager 4300 Sara Road Rio Rancho, NM 87124 505/896-8811
Monday, April 18, 2011
* Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production * Aerated Lagoons * Secondary Treatment
0.005
N/A
N/A
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M * Domestic Well Permitting Program * Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 23 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
NEW MEXICO City of Rio Rancho Plant #5 WWTP Cliff Leeper, Project Manager 4300 Sara Road Rio Rancho, NM 87124 505/896-8811
Plant #6 WWTP Cliff Leeper, Project Manager 4300 Sara Road Rio Rancho, NM 87124 505/896-8811
Rio Rancho Water Utilities
* * * * *
Biofilter Membrane Biological Reactor Membrane Filtration Screening-Fine Screen Secondary Treatment
0.5
N/A
N/A
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M * Domestic Well Permitting Program * Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
* * * * *
Biofilter Membrane Biological Reactor Membrane Filtration Screening-Fine Screen Secondary Treatment
0.6
N/A
N/A
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M * Domestic Well Permitting Program * Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
30
5
N/A
* Backflow/Cross Connection Program * Collection System Cleaning Program * Distribution and Collection System O&M
7/1/2002
* Mr. Larry Webb, Utilities Manager 3200 Civic Center Circle NE Rio Rancho, NM 87144 505/896-8716
6/1/1992
* Mr. Amos Torres, Utilities Director 400 Camino De La Placita Taos, NM 87571 575/770-4364
* Chlorine Disinfection * Ultraviolet (UV) Disinfection
Cliff Leeper, Project Manager 4300 Sara Road
* Domestic Well Permitting Program * Industrial Pretreatment * Meter Installation * Wastewater Treatment Plant O&M * Water Production
Rio Rancho, NM 87124 505/896-8811
Town of Taos Town of Taos WWTP Jeffrey Burkett, Project Manager P.O. Box 250 Ranchos de Taos, NM 87557 575/751-7714
* Activated Sludge * Biosolids Enrichment and Recycling * Facility Improvements * Odor Control - Gas Phase Wet Scrubbers * Odor Control - Liquid Phase pH Stabilization
2
N/A
N/A
* Beneficial Reuse of Biosolids * Sludge Management * Wastewater Treatment Plant O&M
* Oxidation Ditch * Preliminary Treatment, degritting and screening * Secondary Clarifiers * Secondary Treatment * Sludge Disposal * Sludge Stabilization * Thickening-Gravity Belt * Ultraviolet (UV) Disinfection
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 24 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
NEW YORK CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* * * * *
Air Stripper Carbon Filtration Oil and Water Separation pH Adjustment Sedimentation
0.13
N/A
N/A
* Groundwater Treatment Plant O&M
12/1/2005
CONFIDENTIAL CLIENT
* * * * *
Belt Filter Press Chemical Precipitation Coagulation Mercury Extraction Sedimentation
0.15
N/A
N/A
* Operation and Management * Technical Assistance
2/1/2003
CONFIDENTIAL CLIENT
* * * * *
Activated Carbon Coagulation Filtration Neutralization Sludge Dewatering
0.5
N/A
N/A
* Groundwater Monitoring * Remediation * Wastewater Treatment Plant O&M
2/1/2004
CONFIDENTIAL CLIENT
* * * * * * * * * * *
Aerated Grit Chambers Aerobic Digestion Anaerobic Digestion Bar Screen Bio Tower (Roughing Filter) Dewatering Effluent Disposal Grit/Screenings Removal Irrigation Lagoons Mechanical Screening
4.5
N/A
1
* Effluent Storage Lagoons O&M * Industrial Pretreatment Program * Land Application Site * Landfill Disposal * Lift Stations O&M * Prepare Reports * Repairs * Wastewater Treatment Plant O&M
8/1/1995
* Mr. Scott Vaughn, Public Works Director P.O. Box 969 Duncan, OK 73534-0969 580/252-0250
* * * * *
Nitrification Primary Clarifiers Secondary Clarifiers Sludge Stabilization Trickling Filter
NORTH CAROLINA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
OHIO CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
OKLAHOMA City of Duncan City of Duncan WWTP Timothy Boone, Project Manager 909 West Fuller Road Duncan, OK 73533 580/255-8555
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 25 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
OREGON City of Adair Village Adair Village WTP
* Rapid Sand Filtration * Surface Water Treatment
2
2
N/A
* Collection and Distribution System O&M * Meter Reading * Parks and Grounds Maintenance * Public Works * Street Maintenance * Wastewater Treatment Plant O&M * Water Treatment and Distribution
8/1/2005
* Mr. Drew Foster, City Administrator 6030 NE Wm. Carr Avenue Adair Village, OR 97330 541/609-1975
* Drying Beds * Secondary Treatment * Trickling Filter
0.385
N/A
2
* Collection and Distribution System O&M * Meter Reading * Parks and Grounds Maintenance * Public Works * Street Maintenance * Wastewater Treatment Plant O&M * Water Treatment and Distribution
8/1/2005
* Mr. Drew Foster, City Administrator 6030 NE Wm. Carr Avenue Adair Village, OR 97330 541/609-1975
* Extended Aeration * Secondary Treatment * Ultraviolet (UV) Disinfection
0.079
N/A
N/A
* Collection System O&M * Wastewater Treatment Plant O&M
7/1/2008
* Ms. Rene Moore, Administrator Biggs Service District P.O. Box 365 Moro, OR 97039 541/565-3535
* * * *
Activated Sludge Aerobic Digestion Secondary Treatment Sequencing Batch Reactor (SBR) * Ultraviolet (UV) Disinfection
0.493
N/A
3
* Designed Maintenance Management Program
10/1/1984
* Activated Sludge * Aerated Grit Chambers
2.19
Brian Helliwell, Project Manager 5011 Hwy 20 Albany, OR 97330 541/928-8372
Adair Village WWTP Brian Helliwell, Project Manager 7305 NE Arnold Avenue Adair Village, OR 97330 541/745-5858
Biggs Junction Service District Biggs Junction WWTP Kim Barte, Project Manager P.O. Box 1022 The Dalles, OR 97058 541/298-1779
City of Cascade Locks City of Cascade Locks WWTP Douglas Nichols, Project Manager P.O. Box 308 Cascade Locks, OR 97014 541/386-2432
* Equipment Rehabilitation/Repair Program * Wastewater Treatment Plant O&M
City of Coos Bay City of Coos Bay WWTP #1 Patrick Kavan, Project Manager Treatment Plant One 680 Ivy Street Coos Bay, OR 97420 541/267-3966
Monday, April 18, 2011
* * * * * * *
Anaerobic Digestion Disinfection Grit/Screenings Removal Primary Clarifiers Secondary Clarifiers Sludge Stabilization Stabilization Pond
2
18
* Chemical Optimization Program * Energy Optimization Program
9/1/1996
* Storm Drain System O&M * Wastewater Collection System O&M * Wastewater Treatment Plant O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
* Mr. Jim Hossley, Public Works and Development Director 500 Central Avenue Coos Bay, OR 97420 541/269-8912
Page 26 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
OREGON City of Coos Bay City of Coos Bay WWTP #2 Patrick Kavan, Project Manager Treatment Plant 2 100 Fulton Avenue Coos Bay, OR 97420 541/290-5789
* * * * * * * *
Activated Sludge Anaerobic Digestion Disinfection Grit/Screenings Removal Lagoons Land Application Primary Clarifiers Secondary Clarifiers
1.1
N/A
5
* Chemical Optimization Program * Energy Optimization Program * Storm Drain System O&M * Wastewater Collection System O&M * Wastewater Treatment Plant O&M
3.4
N/A
N/A
* Wastewater Treatment Plant O&M
3.5
N/A
3
* Industrial Wastewater Treatment Plant O&M * Laboratory Analysis
9/1/1996
* Mr. Jim Hossley, Public Works and Development Director 500 Central Avenue Coos Bay, OR 97420 541/269-8912
* Sludge Disposal * Sludge Stabilization
City of Dallas Dallas WWTP Lori Smith, Project Manager 1070 Bowersville Road Rickreall, OR 97371 503/623-8174
* * * * * *
Activated Sludge Extended Aeration Humus Ponds Oxidation Ditch Secondary Treatment Ultraviolet (UV) Disinfection
10/15/2007
* Mr. Fred Braun, Public Works Director 187 SE Court Street Dallas, OR 97338 503/673-4192
CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Activated Sludge * Belt Filter Press * * * * * * * * * *
Biofilter Dewatering Extended Aeration Filtration Primary Clarifiers Sand Filtration Screening-Shaker Screen Secondary Clarifiers Secondary Treatment Thickening-Holding tank decanting
5/1/1990
CONFIDENTIAL CLIENT
6/1/1983
* Mr. David Bick, City Engineer/Public Works Director P.O. Box 27 Hood River, OR 97031 541/387-5200
* Silt Pit Operations * Sludge Management * Solid Waste Disposal Permit * Stormwater Permit * Waste Discharge Permit
City of Hood River City of Hood River WWTP Douglas Nichols, Project Manager 818 Riverside Drive Hood River, OR 97031 541/386-2432
Monday, April 18, 2011
* Activated Sludge * * * * * * * * * * *
3
Anaerobic Digestion Belt Filter Press Land Application Primary Clarifiers Screening-Fixed Secondary Clarifiers Secondary Treatment Sludge Disposal Sludge Stabilization Thickening-Gravity Belt Ultraviolet (UV) Disinfection
N/A
5
* Beneficial Reuse of Biosolids * Designed Maintenance Management Program * Equipment Rehabilitation/Repair Program * Grease Trap Inspection * Industrial Pretreatment Program * Sludge Management * Wastewater Treatment Plant O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 27 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
OREGON City of Lebanon Lebanon WTP Brian Helliwell, Project Manager 33110 Tennessee Road Lebanon, OR 97355 541/451-1117
* * * * * * * *
Clear Well Storage Disinfection Distribution System Pretreatment System Sedimentation Solids Disposal Storage Tanks Surface Water Treatment
8
N/A
N/A
* Water Filtration
Lebanon WWTP Brian Helliwell, Project Manager 33110 Tennessee Road Lebanon, OR 97355 541/451-1117
* Capital Improvement Planning * Equipment Condition Evaluation * I&C Systems Evaluation * Infrared Camera Electrical Diagnosis * Laboratory Analysis * Plant Production Capabilities Evaluation * Pump Station O&M * Sludge Management
6/1/1982
* Mr. Dan Grassik, Engineering 925 Main Street Lebanon, OR 97355 541/258-4270
* Solid Waste Disposal Permit * Water and Wastewater Treatment Plant O&M 3
N/A
3
* Capital Improvement Planning * Equipment Condition Evaluation * I&C Systems Evaluation * Infrared Camera Electrical Diagnosis * Laboratory Analysis * Plant Production Capabilities Evaluation * Pump Station O&M * Sludge Management * Solid Waste Disposal Permit * Water and Wastewater Treatment Plant O&M
6/1/1982
* Mr. Dan Grassik, Engineering 925 Main Street Lebanon, OR 97355 541/258-4270
* Membrane Filtration * Secondary Treatment
0.08
N/A
N/A
* Collection and Distribution System O&M * Meter Reading * Parks and Grounds Maintenance * Public Works * Street Maintenance * Water and Wastewater Treatment Plant O&M
5/23/2005
* Mr. Jim Minard, City Planner P.O. Box 486 Monroe, OR 97465 541/847-5178
* Lagoons
0.1
N/A
1
* Collection and Distribution System O&M * Meter Reading * Parks and Grounds Maintenance * Public Works * Street Maintenance * Water and Wastewater Treatment Plant O&M
5/23/2005
* Mr. Jim Minard, City Planner P.O. Box 486 Monroe, OR 97465 541/847-5178
* * * * * * * * * *
Activated Sludge Aerobic Digestion Dewatering Disinfection Drying Beds Land Application Lime Stabilization Pressure Filters Screening-Fixed Screening-Rotary drum screen
* * * * * *
Screening-Rotary screens Secondary Clarifiers Secondary Treatment Sludge Disposal Sludge Stabilization Thickening-Gravity Belt
City of Monroe Monroe WTP Brian Helliwell, Project Manager 664 Commercial Street Monroe, OR 97456 541/451-1117
Monroe WWTP Brian Helliwell, Project Manager 664 Commercial Street Monroe, OR 97456 541/451-1117
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 28 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
OREGON City of Mosier City of Mosier WWTP Kim Barte, Project Manager
* Activated Sludge * Aerobic Digestion * Secondary Treatment
0.085
N/A
N/A
* Collection System O&M * Designed Maintenance Management Program * Equipment Rehabilitation/Repair Program * Wastewater Treatment Plant O&M
5/1/1984
* Mayor Andrea Rogers P.O. Box 273 Mosier, OR 97040 541/806-3250
* Activated Sludge * Aerobic Digestion * Secondary Treatment
0.1
N/A
1
* Equipment Rehabilitation/Repair Program * Maintenance Management * Wastewater Treatment Plant O&M
9/1/1990
* Mr. Larry James, District Chairman P.O. Box 194 Parkdale, OR 97041 503/352-4174
* * * *
8
N/A
7
* Biosolids Management * Lift Stations O&M * Pretreatment Program Establishment & Implementation * Wastewater Treatment Plant O&M
1/1/1984
* Mr. Ron Thames, General Manager P.O. Box 1185 Roseburg, OR 97470 541/672-1551
* Direct Filtration * Secondary Treatment
2.6
5
N/A
* Laboratory Analysis * Solid Waste Management * Water and Wastewater Treatment Plant O&M
12/1/2002
* Mr. Mike Walker, Public Works Director 39250 Pioneer Blvd. Sandy, OR 97055 503/668-5533
* Activated Sludge * Bar Screen * Biological Nutrient Removal (BNR)
1.25
N/A
N/A
* Laboratory Analysis * Solid Waste Management * Water and Wastewater Treatment Plant O&M
12/1/2002
* Mr. Mike Walker, Public Works Director 39250 Pioneer Blvd. Sandy, OR 97055 503/668-5533
P.O. Box 1022 The Dalles, OR 97058 541/298-1779
Parkdale Sanitary District Parkdale Sanitary District Douglas Nichols, Project Manager P.O. Box 194 Parkdale, OR 97041 541/386-2432
Roseburg Urban Sanitary Authority Roseburg WWTP Steven Witbeck, Project Manager 3485 West Goedeck Avenue Roseburg, OR 97470 541/673-6570
Activated Sludge Anaerobic Digestion Biofilter Disinfection Using Sodium Hypochlorite * Grit/Screenings Removal * Odor Control - Gas Phase Wet Scrubbers * Primary Clarifiers * Secondary Clarifiers * Secondary Treatment * Sludge Disposal * Sludge Stabilization * Thickening-Gravity Belt
City of Sandy Sandy WTP Robert Watts, Project Manager 52500 Highway 26 Sandy, OR 97055 503/622-3965
Sandy WWTP Robert Watts, Project Manager 33400 SE Jarl Road Boring, OR 97009 503/668-3251
Monday, April 18, 2011
* * * * *
Effluent Filtration Land Application Secondary Clarifiers Sodium Hypochlorite Ultraviolet (UV) Disinfection
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 29 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
OREGON SLRUS SLRUS WWTP Brian Helliwell, Project Manager
* Effluent Irrigation * Secondary Treatment * Spray Cell/2-Cell Lagoon
0.01
N/A
N/A
* Wastewater Treatment Plant O&M
6/1/1986
* Mr. Gary Dent, Owner P.O. Box 906 Beaverton, OR 97075 503-524-9201
* Conventional Filtration
1.5
N/A
N/A
* Administrative * Biosolids Management * Data Managmement * Process Control * Regulatory Reporting * Water and Wastewater Treatment Plant O&M
12/1/2006
* Mr. Michael J. Adams, Public Works Director 1140 12th Avenue Sweet Home, OR 97386 541/367-6243 ext 244
* Activated Sludge * Secondary Treatment
3
N/A
N/A
* Administrative * Biosolids Management * Data Managmement * Process Control * Regulatory Reporting * Water and Wastewater Treatment Plant O&M
12/1/2006
* Mr. Michael J. Adams, Public Works Director 1140 12th Avenue Sweet Home, OR 97386 541/367-6243 ext 244
* * * * * * * * * * *
4.15
N/A
N/A
* Biosolids Management * Industrial Pretreatment Program * Wastewater Treatment Plant O&M
5/1/1989
* Mr. Dave Anderson, Public Works Director 1215 West First Street The Dalles, OR 97058 541/506-2008
0.11
N/A
N/A
* Inspect Drainfield * Wastewater Treatment Plant O&M
12/1/1999
* Mr. Steve Kruse, Director of Outdoor Maintenance Timberline Lodge Ski Area
33110 Tennessee Road Lebanon, OR 97355 541/451-1117
City of Sweet Home Sweet Home WTP John Waynetska III, Project Manager P.O. Box 750 Sweet Home, OR 97386 541/367-4846
Sweet Home WWTP John Waynetska III, Project Manager P.O. Box 750 Sweet Home, OR 97386 541/367-4846
City of The Dalles City of The Dalles WWTP Kim Barte, Project Manager P.O. Box 1022 The Dalles, OR 97058 541/298-1779
Activated Sludge Anaerobic Digestion Comminution and Screening Contact Stabilization Grit/Screenings Removal Land Application Screening-Fine Screen Secondary Clarifiers Secondary Treatment Sludge Disposal Sludge Stabilization
* Thickening-Gravity Belt * Ultraviolet (UV) Disinfection
Timberline Lodge Timberline Lodge Robert Watts, Project Manager Timberline Ski Area
* * * *
Aeration Basins Aerobic Digestion Comminution and Screening Secondary Treatment
Mt. Hood, OR 97028
Mt. Hood, OR 97028 503/231-7979
503/231-7979
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 30 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
OREGON Union Pacific Railroad Company - The Dalles Union Pacific Railroad - The Dalles Gregory Baker, Project Manager 2443 Tie Plant Road
0.02
N/A
N/A
* Groundwater Recovery System O&M * Innovative Free Product Recovery System O&M
6/1/1997
* Ms. Cindy Donnerberg, Project Manager 2020 SW 4th Avenue Portland, OR 97201 503/235-5000 ext 24441
* Activated Sludge * Secondary Treatment
0.01
N/A
1
* CCR Preparation * Laboratory Analysis * Maintenance Services * Monitor Water Well * Operations * Operator Certification
7/1/2000
* Mr. Robert Watts P.O. Box 535 Welches, OR 97067 .
* * * *
5.75
N/A
1
* Billing * Industrial Pretreatment Plant O&M * Industrial Wastewater Treatment Plant O&M * Laboratory Analysis
3/1/1995
* Mrs. Pat Mandes, Project Manager 1053 Spruce Street P.O. Box 2248 Allentown, PA 18106
* * * *
Activated Carbon Arsenic Co-Precipitation Filtration Oil and Water Separation
The Dalles, OR 97058 541/296-3638
Zig Zag Homeowners Association Zig Zag WWTP Robert Watts, Project Manager P.O. Box 525 Welches, OR 97067 503/618-3451
PENNSYLVANIA Lehigh County Lehigh County William Haberstroh, Project Manager 7676 Industrial Blvd. Allentown, PA 18106 610/395-9782
Activated Sludge Anaerobic Digestion BFP Dewatering Cryogenic Plant
* Grit/Screenings Removal * Odor Control - Gas Phase Wet Scrubbers * * * * * *
610/398-2503
* Liquid Waste Hauler Program * Maintenance Services * Revenue Generation Process
Primary Clarifiers Pure Oxygen Reactors Secondary Clarifiers Secondary Sludge Thickening Thickening-Centrifuge Thickening-DAF
SOUTH CAROLINA Invista - Camden Invista - Camden Mark Whittington, Project Manager P.O. Box 7000 Camden, SC 29020 803/425-2578
Monday, April 18, 2011
* Activated Sludge * Aeration Basins * * * * *
Aerobic Digestion BFP Dewatering Equilizing Basin Secondary Clarifiers Storage Tanks
N/A
N/A
N/A
* Environmental and Safety Auditing
4/1/2008
* Industrial Water and Wastewater Treatment Plant * Laboratory Assistance * Permit and Process Control Sampling * Stormwater System O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
* Mr. Kenny Smith P.O. Box 7000 Camden, SC 29020 803/425-2578
Page 31 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
TENNESSEE CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Chemical-Polymer addition * Industrial Treatment Facility (Nylon Waste) * pH Adjustment * Storage Tanks
3.5
N/A
5
* Carbon Dioxide pH Adjustment System O&M * Groundskeeping * Groundwater Sampling * Industrial Wastewater Treatment Plant O&M * Oil Skimmer O & M * Process and Permit Required Wastewater Sampling * Process Wastewater Diversion System O&M
7/1/1995
CONFIDENTIAL CLIENT
4/1/1998
* Mr. Lawrence T. Young, President and CEO P.O. Box 2110 Oak Ridge, TN 37831-2110 865/482-9890
4/1/1998
* Mr. Lawrence T. Young, President and CEO P.O. Box 2110 Oak Ridge, TN 37831-2110 865/482-9890
* Stormwater Sampling * Waste Finish Oil Deemulsification System O&M * Wastewater Instrumentation O&M
Community Reuse Organization of East Tennessee (CROET) Oak Ridge WTP Terry Ethridge, Project Manager
* Fire Protection Water System Maintenance * Storage Tanks (Non-Potable)
N/A
3
N/A
2010 Hwy 58, Suite 4101 Oak Ridge, TN 37830 865/241-0727
* Distribution System Installation * Fleet Maintenance * Groundskeeping * Potable Water Distribution * Sampling and Analysis * Stormwater Management * Street Maintenance * Utility and Infrastructure System Development and Rehabilitation * Wastewater Collection System
Oak Ridge WWTP Terry Ethridge, Project Manager 2010 Hwy 58, Suite 4101 Oak Ridge, TN 37830 865/241-0726
Monday, April 18, 2011
* Collection System
N/A
N/A
7
* Distribution System Installation * Fleet Maintenance * Groundskeeping * Potable Water Distribution * Sampling and Analysis * Stormwater Management * Street Maintenance * Utility and Infrastructure System Development and Rehabilitation * Wastewater Collection System
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 32 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
TEXAS City of Del Rio San Felipe WWTP Jorge Rojas, Project Manager P.O. Box 420303 Del Rio, TX 78842-0303 830/774-0505
Silver Lake WWTP Jorge Rojas, Project Manager P.O. Box 420303 Del Rio, TX 78842-0303 830/774-0805
* * * * * * * *
Activated Sludge Aerobic Digestion Chlorine Disinfection Dewatering Drying Beds Grit/Screenings Removal Landfill Management Oxidation Ditch
* * * *
Secondary Clarifiers Secondary Treatment Sludge Disposal Sludge Stabilization
* * * * * * * * * *
Activated Sludge Chlorine Disinfection Dewatering Drying Beds Landfill Management Oxidation Ditch Screening-Fixed Secondary Clarifiers Secondary Treatment Sludge Disposal
3.8
N/A
2
* Disposal Program * Sludge Management * Wastewater Treatment Plant O&M
5/1/1988
* Mr. Roger Sanchez, Water/Wastewater Director 109 W. Broadway Del Rio, TX 78840 830/774-8636
2.76
N/A
N/A
* Disposal Program * Sludge Management * Wastewater Treatment Plant O&M
5/1/1988
* Mr. Roger Sanchez, Water/Wastewater Director 109 W. Broadway Del Rio, TX 78840 830/774-8636
* Thickening-Gravity Belt
City of Donna City of Donna WTP
* Backup Equalization Basin Aeration System
Ramon Rosales Jr, Project Manager
* * * *
Clarification Filtration Rapid-Mix Basin Reactor-Clarifier
* * * * *
Activated Sludge Carousel Chlorine Contact Preliminary Treatment Secondary Clarifiers
P.O. Box 769 Donna, TX 78537 956/464-8729
City of Donna WWTP Ramon Rosales Jr, Project Manager P.O. Box 769 Donna, TX 78537 956/464-4323
Monday, April 18, 2011
4.5
1
N/A
* Billing and Collection * Capital Improvement Planning * CCR Preparation * Computerized O&M Implementation * Customer Service * Distribution and Collection System O&M * Facility Operations Program * Lift Stations O&M * Water and Wastewater Treatment Plant O&M
10/28/2001
* Mayor David Simmons 307 South 12th Street Donna, TX 78537 956/464-3314
2.3
1
16
* Billing and Collection * Capital Improvement Planning * CCR Preparation * Computerized O&M Implementation * Customer Service * Distribution and Collection System O&M * Facility Operations Program * Lift Stations O&M * Water and Wastewater Treatment Plant O&M
10/28/2001
* Mayor David Simmons 307 South 12th Street Donna, TX 78537 956/464-3314
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 33 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
TEXAS City of Georgetown Lake Georgetown WTP
* Surface Water Treatment
18
1
N/A
* Computerized Maintenance & Laboratory Management Systems * Laboratory Analysis * Water Treatment Plant O&M
10/1/1993
* Mr. Glen Dishong, Utilities Director P.O. Box 409 Georgetown, TX 78627 512/930-2574
* Groundwater Treatment
6.5
N/A
N/A
* Computerized Maintenance & Laboratory Management Systems
10/1/1993
* Mr. Glen Dishong, Utilities Director
Gene Chisum II, Project Manager P.O. Box 105 Georgetown, TX 78627 512/930-2520
San Gabriel Park WTP Gene Chisum II, Project Manager Georgetown, TX 78627 512/930-2520
South Side WTP
P.O. Box 409 Georgetown, TX 78627 512/930-2574
* Laboratory Analysis * Water Treatment Plant O&M
P.O. Box 105
* Ultra Filtration Membranes
3.5
N/A
N/A
* Computerized Maintenance & Laboratory Management Systems * Laboratory Analysis * Water Treatment Plant O&M
10/1/1993
* Mr. Glen Dishong, Utilities Director P.O. Box 409 Georgetown, TX 78627 512/930-2574
* * * * * * * * * * * *
5.5
4
N/A
* Disposal Program * Sludge Management * Water and Wastewater Treatment Plant O&M
1/1/1990
* Mayor Joel Quintanilla P.O. Box 837 Mercedes, TX 78570-0837 956/565-3114
2.3
N/A
26
* Disposal Program
1/1/1990
* Mayor Joel Quintanilla P.O. Box 837
Gene Chisum II, Project Manager P.O. Box 105 Georgetown, TX 78627 512/930-2520
City of Mercedes City of Mercedes WTP Marcelo Cosme, Project Manager P.O. Box 327 Mercedes, TX 78570 956/565-2372
City of Mercedes WWTP I Marcelo Cosme, Project Manager P.O. Box 327
Clear Well Storage Coagulation Drying Beds Extended Aeration Filtration Flocculation Groundwater Treatment Lagoons Sedimentation Sludge Handling Surface Water Treatment Water Filtration
* Activated Sludge * Oxidation Ditch
* Sludge Management * Water and Wastewater Treatment Plant O&M
* Secondary Treatment * Sludge Drying Lagoons
Mercedes, TX 78570 956/565-0594
Mercedes, TX 78570-0837 956/565-3114
City of Pampa City of Pampa WTP Gary Turley, Project Manager P.O. Box 2332 Pampa, TX 79066 806/669-5830
Monday, April 18, 2011
* * * * * * *
ActifloTreatment Process Ammonium Sulfate Chlorine Disinfection Flocculation/Sedimentation Groundwater Treatment Mixed Media Filtration Surface Water Treatment
6
3
N/A
* Disposal Program * Sludge Management * Water and Wastewater Treatment Plant O&M
5/1/1985
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
* Mr. Donny Hooper, Director of Public Works P.O. Box 2499 Pampa, TX 79066-2499 806/669-5750
Page 34 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
TEXAS City of Pampa City of Pampa WWTP Gary Turley, Project Manager P.O. Box 2332 Pampa, TX 79066 806/669-5833
* * * * * * * *
Activated Sludge Belt Filter Press Chlorine Disinfection Grit/Screenings Removal Oxidation Ditch Secondary Clarifiers Secondary Treatment Sedimentation
3
N/A
3
* Disposal Program * Sludge Management * Water and Wastewater Treatment Plant O&M
5/1/1985
* Mr. Donny Hooper, Director of Public Works P.O. Box 2499 Pampa, TX 79066-2499 806/669-5750
9
N/A
N/A
* Wastewater Treatment Plant O&M
10/1/2005
* Mr. Tom Taggart, Director of Water & Sewer 630 East Hopkins San Marcos, TX 78666 512/393-8005
3
N/A
1
* Industrial Pretreatment Program * Wastewater Treatment Plant O&M
10/1/1996
* Mr. Nick Williams, Director of Utilities 298 W. Washington Stephenville, TX 76401 254/918-1223
* Sludge Disposal
City of San Marcos San Marcos Wastewater Treatment Facility Mike Beck, Project Manager 720 River Road San Marcos, TX 78666 512/393-8344
* Activated Sludge * Auto Bar Screen * Biological Nutrient Removal (BNR) * * * * * * *
Centrifuge Dewatering Effluent Reaeration Odor Control Primary Clarifiers Secondary Clarifiers Tertiary Filters Ultraviolet (UV) Disinfection
* * * * *
Activated Sludge Aerated Grit Chambers Aerobic Digestion Belt Filter Press Biological Nutrient Removal (BNR)
* * * * * * *
Chlorine Disinfection Conventional Treatment Plant Dechlorination Dewatering Filtration Grit/Screenings Removal Primary Clarifiers
City of Stephenville City of Stephenville WWTP Johnny Davis, Project Manager P.O. Box 364 Stephenville, TX 76401 254/965-3668
* Secondary Clarifiers * Secondary Treatment * Sludge Stabilization
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 35 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
TEXAS City of Temple Doshier Farm WWTP Christopher Parker, Project Manager P.O. Box 1737 Temple, TX 76503-1737 254/742-0644
* * * * * * * *
Activated Sludge Anaerobic Digestion Belt Filter Press Bio Tower (Roughing Filter) Chlorine Disinfection Clarification Dechlorination Dewatering
* * * * * * * * * * *
Extended Aeration Grit/Screenings Removal Landfill Management Mechanical Screening Primary Clarifiers Secondary Clarifiers Secondary Treatment Sludge Disposal Sludge Hauling Sludge Stabilization Thickening-Gravity Belt
7.5
N/A
28
* Industrial Pretreatment Program * Lift Stations O&M * Supervisory Control and Data Acquisition (SCADA) * Wastewater Treatment Plant O&M
10/1/1994
* Ms. Nicole Torralva, Public Works Director 3210 East Avenue H, Bldg A, Suite 130 Temple, TX 76501 254/298-5152
3
N/A
50
* Water and Wastewater Treatment Plant O&M
10/1/1993
* Mr. Leonardo Olivares, City Manager
* Water and Wastewater Treatment Plant O&M
10/1/1993
City of Weslaco City of Weslaco N. WWTP Filemon Olvera, Project Manager P.O. Box 8396 Weslaco, TX 78599 956/968-3951
City of Weslaco S. WWTP Filemon Olvera, Project Manager P.O. Box 8386 Weslaco, TX 78599 956/973-1527
* Activated Sludge * * * * * * *
Chlorine Disinfection Dechlorination Drying Beds Grit/Screenings Removal Oxidation Ditch Secondary Clarifiers Sludge Disposal
* * * * * * *
Activated Sludge Aerobic Digestion Drying Beds Grit/Screenings Removal Oxidation Ditch Secondary Clarifiers Sludge Disposal
2.5
N/A
N/A
255 South Kansas Street Weslaco, TX 78596 956/968-3181
* Mr. Leonardo Olivares, City Manager 255 South Kansas Street Weslaco, TX 78596 956/968-3181
* Ultraviolet (UV) Disinfection
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 36 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
TEXAS City of Weslaco City of Weslaco WTP Filemon Olvera, Project Manager P.O. Box 8396 Weslaco, TX 78599 956/968-2833
* * * * * * * *
Ammonium Sulfate Caustic Soda Chloride Dioxide Chlorine Contact Clarification Clear Well Storage Coagulation Flocculation
* * * * * * * *
Lagoons Land Application Mixed Media Filtration Sedimentation Solids Disposal Solids Handling Storage Tanks Surface Water Treatment
8.12
N/A
N/A
* Water and Wastewater Treatment Plant O&M
10/1/1993
* Mr. Leonardo Olivares, City Manager 255 South Kansas Street Weslaco, TX 78596 956/968-3181
6.24
N/A
14
* Groundwater Pump and Treatment System O&M * Laboratory Analysis
7/1/1996
CONFIDENTIAL CLIENT
VIRGINIA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Aerated Lagoons * Clarification * Groundwater Treatment * * * * *
Industrial Treatment Facility Polishing Ponds Pretreatment System Secondary Treatment Synthetic Fiber Waste
* Sampling and Analysis * Site Sanitary Sewer System * Wastewater Treatment Plant O&M
CONFIDENTIAL CLIENT
* Air Stripper * Carbon Absorption
0.23
N/A
N/A
* Groundwater Pump and Treatment System O&M * Laboratory Analysis * Sampling and Analysis * Site Sanitary Sewer System * Wastewater Treatment Plant O&M
7/1/1996
CONFIDENTIAL CLIENT
CONFIDENTIAL CLIENT
* Dewatering
N/A
N/A
N/A
* Groundwater Pump and Treatment System O&M
7/1/1996
CONFIDENTIAL CLIENT
4/1/2000
* Mr. John Fellinger, Senior Project Manager 1319 Woodbridge Station Way, Ste 200 Woodbridge Office Center Edgewood, MD 21040 410/904-5504
* * * * *
Landfill Management Sedimentation Sludge Disposal Storage Tanks Thickening-Centrifuge
* * * * * * *
Caustic Pumps Equipment Maintenance Flocculation/Sedimentation Groundwater Treatment pH Adjustment Secondary Treatment Sludge Dewatering
* Laboratory Analysis * Sampling and Analysis * Site Sanitary Sewer System * Wastewater Treatment Plant O&M
Greenwood Chemical Greenwood Chemical /EPA Gary Funkhouser, Project Manager 637 Newtown Road Greenwood, VA 22943 540/456-8050
Monday, April 18, 2011
N/A
N/A
N/A
* Commissioning Services * Groundwater Treatment Plant O&M * Startup Services
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 37 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
VIRGINIA Greenwood Chemical
WASHINGTON City of Seattle Public Utilities Cedar Water Treatment Facility James West, Project Manager 14201 S.E. Petrovitsky Road A-3--107 Renton, WA 98058 425/255-7238
* * * * *
Chlorine Disinfection Corrosion Inhibitor Lime Softening Ozonation pH Adjustment
180
N/A
N/A
* Flow Control Facilities O&M * Water Treatment Plant O&M
4/30/2001
* Mr. Alex Chen, Engineer P.O. Box 34018 Seattle, WA 98124-4018 206/233-1522
0.45
N/A
3
* Designed Maintenance Management Program
9/1/1984
* Ms. Mary Ann Duncan-Cole, City Administrator P.O. Box 371 Stevenson, WA 98648 509/427-5970
4/16/2000
* Mr. Frank Nicholson, Principle Engineer P.O. Box 478
* SCADA * Ultraviolet (UV) Disinfection
City of Stevenson City of Stevenson WWTP Douglas Nichols, Project Manager P.O. Box 371 Stevenson, WA 98648
* * * * *
Activated Sludge Aerobic Digestion Oxidation Ditch Secondary Treatment Ultraviolet (UV) Disinfection
* Wastewater Treatment Plant O&M
541/386-2432
City of Walla Walla City of Walla Walla WWTP William Breshears, Project Manager 572 Hatch Walla Walla, WA 99362-5501 509/527-4509
* Activated Sludge * Anaerobic Digestion
9.6
* * * * *
Biosolids Land Application Chlorination/Dechlorination Dewatering Effluent Irrigation Filtration Plants with Alum Coagulation
* * * * *
Pumping Stations Secondary Treatment Storage Lagoon Trickling Filter Ultraviolet (UV) Disinfection
N/A
5
* Industrial Pretreatment Program * Laboratory Analysis * Wastewater Treatment Plant O&M
Walla Walla, WA 99362-0216 509/527-4537
Wyckoff/Eagle Harbor Operable Unit Wyckoff Operable Unit Stanley Warner, Project Manager 5350 Creosote Place, N.E. Bainbridge Island, WA 98110 206/780-1711
* Activated Sludge * * * * * *
0.14
N/A
N/A
Carbon Adsorption Groundwater Extraction Multimedia Filtration Oil and Water Separation Secondary Treatment Sludge Dewatering
* Groundwater Extraction System O&M
10/1/1994
* Mr. Matthew Allen P.O. Box 3755 Seattle, WA 98124-3755 206/764-3505
* Groundwater Treatment Plant O&M * Industrial Wastewater Treatment Plant O&M * In-house Laboratory Services * Soil Remediation
WEST VIRGINIA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
Monday, April 18, 2011
* Air Stripper * Filtration * Plate and Frame Press
0.14
N/A
1
* Groundwater Extraction System O&M * Groundwater Treatment Plant O&M
3/19/2001
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
CONFIDENTIAL CLIENT
Page 38 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
WEST VIRGINIA CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
*
N/A
N/A
N/A
* Remedial Field Services * Remediation Pumping System * Site Inspections
1/1/2005
CONFIDENTIAL CLIENT
*
N/A
N/A
N/A
* Capped Landfill Maintenance
4/1/2004
CONFIDENTIAL CLIENT
CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* O&M of Groundwater Remediation System
CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Catalytic Oxidation * Chemical Precipitation * Filtration
N/A
N/A
N/A
* Groundwater Sampling * Groundwater Treatment Plant O&M * Laboratory Analysis * Remediation * Technical Assistance
2/1/2003
CONFIDENTIAL CLIENT
* Groundwater Treatment
N/A
N/A
N/A
* EPA Superfund Site * Groundwater Remediation
1/17/2005
* Mr. Bill Andrae
* Groundwater Recovery System O&M * Photoremediation/Irrigation System
7/1/1995
WISCONSIN Pentawood EPA Site Siren-Penta Wood Lisa Mauser, Project Manager
1355 84th Street, Suite 325 Milwaukee, WI 53214 414/272-2426
8682 Daniels 70 Siren, WI 54872 715/349-8357
WYOMING Union Pacific Railroad Company - Laramie Union Pacific Railroad-Laramie Jennifer Laggan, Project Manager
* Activated Carbon * Clarifiers * Filtration
0.5
1
N/A
221 Hodgeman St. Laramie, WY 82072 307/742-3868
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
* Mr. Gary Honeyman, Manager, EM Site Remediation 221 Hodgeman Street Laramie, WY 82072 402/233-1007
Page 39 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
INTERNATIONAL CANADA Municipality of Lambton Shores Municipality of Lampton Shores WWTP/WTP Terry Rands, Project Manager P.O. Box 659 Forest, ON N0N 1J0 Canada 519/786-2421
* * * * * *
Activated Sludge Extended Aeration Secondary Treatment Sludge Drying Lagoons Tertiary Treatment Ultraviolet (UV) Disinfection
0.5
2
14
* Commissioning Services
7/1/1996
* Ms. Peggy Van Mierlo-West, Director of Community Services 9575 Port Franks Road, RR#1 Thedford, ON N0M 2N0 519/243-1400
* Laboratory Analysis * Meter Reading * New Plant Start-up * Sludge Management * Wastewater Collection System O&M * Wastewater Treatment Plant O&M * Water Distribution * Water Treatment Plant O&M
St. ClairTownship Corunna WPCP Terry Rands, Project Manager
* Activated Sludge * Extended Aeration * Secondary Treatment
1.23
N/A
N/A
* Wastewater Treatment Plant O&M
12/1/2004
* Mayor Steve Arnold 1155 Emily Street Mooretown, ON N0N 1M0 519/867-2021
* Activated Sludge * Extended Aeration * Secondary Treatment
0.12
N/A
1
* Wastewater Treatment Plant O&M
12/1/2004
* Mayor Steve Arnold 1155 Emily Street Mooretown, ON N0N 1M0 519/867-2021
* * * * *
Activated Sludge Extended Aeration Secondary Treatment Tertiary Filters Ultraviolet (UV) Disinfection
0.925
N/A
9
* Capital Investment
4/1/1996
* Ms. Dianne Caryn, CAO 411 Greenfield Street Petrolia, ON N0N 1R0 519/882-2350
* * * * * * * *
Activated Sludge Aeration Aerobic Digestion Clarifiers Extended Aeration Secondary Treatment Sludge Drying Lagoons Ultraviolet (UV) Disinfection
1
7/1/1995
* Mrs. Jill Wales, Ontario MOE Contact 1094 London Road Sarnia, ON N7S 1P1 519/336-4030
362 North Beresford Street C/O OMI Canada, Inc. P.O. Box 2141 Corunna, ON N0N 1G0 Canada 519/862-1060 Courtright WPCP Terry Rands, Project Manager 362 North Beresford Street C/O OMI Canada, Inc. P.O. Box 2141 Corunna, ON N0N 1G0 Canada 519/867-2942
Town of Petrolia Town of Petrolia WWTP Terry Rands, Project Manager P.O. Box 329 Petrolia, ON N0N 1R0 Canada 519/882-3137
* Pump Station O&M * Sludge Management * Wastewater Treatment Plant O&M
Town of Plympton - Wyoming Town of Plympton Wyoming WWTP Terry Rands, Project Manager 4043 Aberarder Line, R.R. #2 Plympton Township WWTP Camlachie, ON N0N 1EO Canada 519/899-2289
Monday, April 18, 2011
N/A
10
* Collection System O&M * Golf Course Irrigation * Laboratory Analysis * Sludge Handling and Disposal * Wastewater Treatment Plant O&M
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 40 of 41
Current Project Summary and Client References Facility Name
Size MGD
Process/Type
Sewage Water Lift Pump Stations Stations
Scope of Services
Customer Since
Contact Name
CANADA Village of Oil Springs Oil Springs WWTP
* 2 Cell Faculative Lagoon * Secondary Treatment
0.178
N/A
2
* Wastewater Collection and Treatment
1/1/2006
* Ms. Christine Poland, Administrator Clerk 4591 Oil Springs Line Oil Springs, ON N0N1P0 519/834-2939
* Centrifuge Dewatering
20
4
4
* Groundwater Remediation
11/1/2005
CONFIDENTIAL CLIENT
9/17/2009
* Mr. Hector Marin, Maintenance Manager P. O. Box 10003 Guayama, PR 00875 787.864.1515
12/3/2007
* Mr. Tommy Anzalota, Project Coodinator Carr.901, km27 Bo.Camino Nuevo Yabucoa 00767 Puerto Rico 787/893-2424
Terry Rands, Project Manager P.O. Box 22 Oil Springs, ON N0N1P0 Canada 519/834-2939
PUERTO RICO CONFIDENTIAL CLIENT CONFIDENTIAL CLIENT
* Wastewater Treatment Plant O&M
Chevron Phillips Chevron Phillips Chemical P.R. Joel Rivera-Velez, Project Manager Core LLC P.O. Box 10003 Guayama, PR 00784 Puerto Rico 787.864.1515 ext.2265
* * * * * * *
Aeration Carbon Filtration Clarifiers Equalization Tanks Sand Filtration Secondary Treatment Ultraviolet (UV) Disinfection
0.288
* * * * * * * *
Aeration Basins API Oil Separators Chlorinate Water from Wells DAF Unit Digester Equilizing Basin Secondary Clarifiers Wastewater Package Plant
2
3
N/A
* Data Managmement * Enhanced Fluid Recovery System * Sampling and Analysis * Superfund Site System * Wastewater Treatment Plant O&M
Shell Chemical Yabucoa, Inc. Shell Chemical Yabucoa David Kitchel, Project Manager P.O. Box 186 Yabucoa, PR 00767 Puerto Rico 787/893-2424
N/A
N/A
* Chlorinate Water from Wells (Potable Water) * Wastewater Treatment Plant Operation
*All contracts listed are still in force or are undergoing negotiation for renewal. *All CH2M HILL projects' scope of services include ongoing employee training, safety, computerized maintenance management, laboratory quality assurance/quality control, community relations, and odor control programs. *CH2M HILL serves as regulatory agency liaison as requested.
Monday, April 18, 2011
Contract information is business proprietary and may not be used outside the evaluation of this document without written consent from CH2M HILL
Page 41 of 41