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Part 2: Ecological and Environmental Considerations for Cost Estimating Development Projects Slide 2 Environmental Considerations in Property Development Contamination What Is It? Identification of Contamination How and When is this Done? So I have a problem What Now? Nature and Extent of Contamination How much will it cost to fix it? Slide 3 Contamination 101 A contaminant is a substance that negatively affects human health or the environment Contaminants are regulated by the Environmental Protection Agency (EPA) or Florida Department of Environmental Protection (FDEP) Cleanup levels are assigned to each contaminant based on their risk to receptors (e.g., humans, aquatic and terrestrial species) Cleanup levels are often in the part per million (ppm) or part per billion (ppb) range One ppm equals. One drop of gasoline in an auto gas tank One minute in 2 years One cent in $10,000 One inch in 16 miles Slide 4 How Clean Is Clean? One part per billion equals one 4-inch hamburger in a chain of hamburgers circling the earth at the equator 2.5 times one silver dollar in a roll of silver dollars stretching from Detroit, Michigan to Salt Lake City, Utah one kernel of corn in a 45-foot high, 16-foot diameter silo one sheet in a roll of toilet paper stretching from New York to London one second of time in 32 years Some contaminants (e.g. benzene) have to be cleaned up to one ppb Its not easy, and its not cheap Slide 5 When and How Is Contamination Identified? Best Case Scenario: Prior to Property Acquisition Phase I Environmental Assessment per ASTM E1593-00 Chain of Title (prior ownership) Records Review (prior use) Interviews with Knowledgeable Person(s) Site Inspection Does not involve sampling Phase II Environmental Assessment Qualitative study (yes/no) Soil, sediment, groundwater sampling Samples taken in areas of potential impact Slide 6 Red Flag Sites Former shooting/bombing ranges Gas stations/fuel terminals Dry cleaners Manufacturing plants: Heavy machinery Electronics manufacturing Nuclear missile manufacturing Military bases Airports Future Orlando Performing Arts Center Disposal sites Power Equipment Drum Disposal Areas Slide 7 More $ampling Remedial Investigation define nature and extent Can range in cost from the thousands to millions of dollars Always better is someone else is paying for it Slide 8 Once Contamination is Defined Remedial Alternatives Analysis and Design Engineers design cleanup methods taking into account cost, schedule, ease of implementation, effectiveness Soil excavate, vapor extraction, bioremediation Groundwater air sparge, bioremediation, pump & treat, Slide 9 Once a Remedy is Selected Remedial Action Implementation Operation and Maintenance (O&M) Slide 10 Some War Stories Property Development A Phase I ESA (by others) gone bad redneck recycling Performed assessment and source removal of approximately 16,000 tons of soils impacted with Dioxin, PCBs, Lead, and Arsenic Activities included excavation, onsite soil treatment, loadout, and transportation & disposal $1.8M Project Slide 11 Restoration of a 2,000-acre site - Orlando Pershing Landfill 1 Launch Test Area Slide 12 Another Phase I ESA gone bad Remediation of Former Trap and Skeet Range Slide 13 Estimating the Cost of Environmental Liabilities High-level (programmatic phase) RACER Overview Nature and extent must be defined Highly contingent upon defined nature and extent of contamination Great for budgeting not for bidding Detailed Cost Estimating supported by hard bid Excel Timberline Appropriate for hard bid projects Both methodologies can be used Vet cleanup technologies with RACER, prepare hard bid of selected remedy Slide 14 What is RACER? Remedial Action Cost Engineering and Requirements (RACER): a parametric and integrated cost estimating software developed specifically for environmental investigation and cleanup projects. A commercial, off-the-shelf, Windows-based system that is adaptable and scalable to any size project or portfolio. A validated and accredited system, RACER provides credible, auditable, and defensible budget-level estimates. Slide 15 What Media Does RACER Address? RACER addresses all media of concern: Soil Sediment Groundwater Surface Water Sludge Building Materials Ambient/Indoor Air Free Product Slide 16 What Regulatory Programs Does RACER Cover? CERCLA/Superfund RCRA Corrective Action State Groundwater Protection Programs State Voluntary Cleanup Programs Underground Storage Tank Programs Radioactive/Nuclear Facility D&D Abandoned Mine Lands Programs Military Munitions/Unexploded Ordnance Programs Non-U.S. Cleanup Programs Slide 17 What Lifecycle Stages Does RACER Address? RACER estimates costs for all lifecycle stages of contaminated site management. Pre-study Study Removal/Interim Actions Design Construction/Implementation Operation & Maintenance Long-term Monitoring Site Closeout Slide 18 What Makes RACER Unique? RACER uses a parametric estimating methodology Input Parameters + Logic = Required Items Input Parameters + Algorithms = Quantities Slide 19 Who Uses RACER? AECOM Corporations Engineering/Consulting Firms State Environmental Regulators Law Firms Insurance Underwriters Government Agencies Slide 20 How Does RACER Organize Estimates? RACER has a 4-level hierarchy to organize estimates Estimator sets up folder, project, site, and phase levels in RACER hierarchy. Hierarchy provides flexibility to organize estimates as needed Slide 21 Are RACER Estimates Location Specific? RACER adjusts national-average prices for materials, labor, equipment, and subcontracted services based on the project sites state/country and city. Location modifiers based on the project sites state/country and city Slide 22 How Does RACER Estimate Costs? RACER uses high-level parameters about the site, scope of work, and execution methods to estimate costs. Estimator enters parameters for each cost model Slide 23 How Does RACER Estimate Costs? RACER provides flexibility to adjust parameters to suit the needs of the project and/or client. Default values can be changed as needed. Slide 24 How Does RACER Estimate Costs? RACER identifies items required to conduct the work. Slide 25 How Does RACER Estimate Costs? RACER uses algorithms to calculate quantities. Slide 26 How Does RACER Estimate Costs? RACER looks up prices and adjusts for location and safety productivity. Slide 27 How Does RACER Estimate Costs? RACER calculates total cost for each item. Slide 28 How Does RACER Estimate Costs? RACER calculates total cost for the technology. Slide 29 What Documentation Does RACER Provide? RACER provides comprehensive documentation for project deliverables and audit trail. RACER includes reports designed specifically to provide a defensible record of all input parameters, assumptions, and notes used in building the estimate. Slide 30 Does RACER Support Cash Flow Analysis? RACER provides cost-over-time reports that can be used for cash flow modeling of environmental liabilities. Slide 31 How Often is RACER Updated? RACER is updated annually with new prices, location modifiers, escalation factors, templates, cost models, and other engineering enhancements. Estimates from prior versions can be easily upgraded to use the latest pricing data from RS Means. Slide 32 One Thought to Remember Caveat EmptorLet the buyer beware A Phase I environmental assessment costs about $5,000 Cleaning up a property where you have assumed the liability can cost hundreds of millions To exit slideshow and return to Web site, click Back arrow.