The redevelopment of Orange County’s Civic Center provides a road map on how to make a public-private partnership (P3) work.

or 30 years, a three-story, 1950s-era sat vacant in the heart of the County of Orange’s Civic Center in downtown Santa Ana, California. Known F simply as Building 16, the deteriorating concrete structure was a symbol of the County’s aging and in-efficient office , as the County slowly recovered from a much-publicized bankruptcy in the 1990s. Today, is scheduled for a late 2019 opening of a new, $180 million, 250,000-square-foot, six-story office complex with below-grade parking on the site, the first phase of a 20-year master plan to reposition every aspect of the County of Orange’s downtown real estate and approach to customer service. The new building “ushers in the beginning of a new era at the County of Orange,” First District Supervisor Andrew Do said at the topping off ceremony. “We are creating a more efficient and ecological work space while rethinking what accessing County services should look like.” At the heart of the project is a public-private partnership (P3), which is one of the largest P3s under development on the West Coast. With Griffin Structures as lead developer — and LPA as the THIS PAGE: The P3 will transform the County of design partner and Swinerton Builders as the general contractor Orange Civic Center, covering — the partnership with the County covers 10 County-owned 10 County-owned and more than 1.6 million square feet of space.

23 / CATALYST / ISSUE 2 2019 ANATOMY OF A SUCCESSFUL PUBLIC-PRIVATE PARTNERSHIP / FEATURE / 24 buildings, 4,600 employees and more than 1.6 million square feet In California, public-private partnerships are growing in “neighborhoods” will be created, grouping related County understanding of their role in a P3 process. Weekly meetings of space, including a wide array of public areas. popularity, after the state dissolved redevelopment agencies in functions within the reimagined and rebuilt Civic Center. The between the groups focused on issues and challenges as they Building 16 — now known as County Administration South (CAS) 2011, pushing risk adverse communities to explore better ways County will also vacate leased space, freeing revenue for the P3 arose, with the developer, designer and the builder discussing — will include the County Service Center, a one-stop counter to deliver projects. For the County, the Civic Center project is financing, while also cutting energy consumption and operating everything with the County, from structural systems to seal for County residents to engage with all 13 county departments, financed using the County’s credit rating and long-term lease costs across their expansive real estate portfolio. packages. Given the flexibility inherent in the P3 process, the immediately reshaping how the County serves its citizens. It also revenue to back tax-exempt bonds. After paying off the 30-year team was able to engage early in the process with key trade re-organizes the offices for many departments, in a LEED Silver bonds, the County will own the facilities. A GUARANTEED MAXIMUM PRICE contractors, who provided input at every step of the BIM process. building designed to reduce fossil fuel use by 70 percent. The The County’s planning and design process started with a As a project delivery system, the P3 worked fundamentally Communication “squeezes out conflicts; it eliminates surprises,” next phases will create new public plazas, modernize the office comprehensive Facilities Strategic Plan, conducted and authored different than a design-build, providing distinct advantages to says LPA Principal James Wirick. In the P3, the realities of environments and cut the County’s operating costs for decades. by Griffin and LPA, to evaluate every aspect of the County’s the County. The development agreement includes a guaranteed concepts can be tested early, “instead of having it blown up at “These buildings will take this County out another 80 to 100 downtown operations, including the condition of the buildings, total project maximum price for the County, shifting risk to the bid time when they find that it is too expensive and can’t be years,” says Griffin Structures CEO Roger Torriero. “The County department operations, space utilization and energy efficiency. developer to make budget and to deliver on time. No rent is due built,” Wirick says. realized that this is an excellent opportunity to reconsider how The analysis covered more than 22 separate facilities occupied by until the buildings are occupied. The project is competitively bid they do their business today and how they want to do their the County around the Civic Center — as well as the ramifications at prevailing wage, an “open book” subject to County audit — business in the future.” of doing nothing. with all savings going back to the County. “We are creating a more efficient “We did a deep dive with the County on their own Civic Center The guaranteed maximum price also changes the tenor of A ‘DEEP DIVE’ properties,” says LPA Principal Karen Thomas. the design process. From the start, the developer, architect, and ecological work space while The story of the County of Orange’s redevelopment provides The study found the average age of many of the County’s owned builder and County worked closely on every concept and detail, a road map on how to implement a successful public-private buildings was close to 66 years. Assets were also being used before setting the final guaranteed maximum price. “We have rethinking what accessing County partnership, taking a holistic, big-picture approach to a public in-efficiently; the County was paying about $26 million a year to do a very clear set of design development drawings and the project. The P3 changed the game for the civic center, creating a in occupancy costs. The office space allocation was about 375 contractor has to do a much better job of estimating, because services should look like. process where the County, developer, designer and builder were square feet per person, exceeding the County’s goal by 100 at that point we are making decisions that are long lasting,” working through issues as a collective team from the beginning square feet. Heinfeld says. of the process. The approved plan split the 20-year project into four phases, Integration and communication between the groups were essential for the Orange County plan, all parties agree. LEFT: The next phase will include a new, state-of-the-art public “You are making much more intelligent decisions based on much allowing the County flexibility during the implementation meeting room for the Board of Supervisors. better criteria, very early in the game and that’s when real money process. Ultimately, four new administrative and operational Griffin, Swinerton and LPA had already worked together on a number of complicated projects giving each team member an RIGHT: The design creates new areas for County residents to is saved,” says LPA President Dan Heinfeld. engage with services, as well as new public spaces.

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TOP: Quis duntio. Itatusam rehenimet magnitaes aut vellorum quo doluptia con parchil idebis etur, quam simod ut endello BOTTOM LEFT: Quis duntio. Itatusam rehenimet magnitaes aut vellorum quo doluptia con parchil idebis etur, quam simod ut endello BOTTOM RIGHT: Quis duntio. Itatusam rehenimet magnitaes aut vellorum quo doluptia con parchil idebis etur, quam simod ut endello The County created an ad hoc committee to meet directly LEFT: The County, developer, designer and builder worked together and regularly with the development team, streamlining from the start to design spaces that fit the County’s long-term operational goals. discussions and making to easier to provide quick feedback and direction. “They were able to see the project early on,” BELOW: The first phases are focused on two “sister” buildings, County Administration North and South, which will form a new Wirick says. “It’s a very linear way of getting decisions made in a public plaza. bureaucratic environment.” Another key advantage to the P3 is that it gave the County the ability to effectively manage the entire process with a single staff The County estimates “the cost savings in CAN alone, through member. In turn, the developer provided the County with a single the efficiency of the design and the work stations, the lighting point of contact, with responsibility and accountability, which and the [heating, ventilation, and air conditioning],” will facilitated and streamlined the day-to-day project management total more than $160 million in 30 years, stated Supervisor for all involved. Lisa Bartlett. Throughout the discussions, LPA was able to call on its The demolition will also clear land and create future expansion integrated team for rapid answers. Engineers were on hand to options or opportunities for revenue-generating private sector discuss seismic issues. Furniture designers negotiated front-end development for the County, as it enters the next phases of the costs. When a stormwater management issue arose, LPA’s civil redevelopment. Fifty percent of the Civic Center block will revert engineers “left the conference room and came back 30 minutes to open space, when the five aging buildings are consolidated later with a drawing that reflected the revisions needed to stay into two. The connection between the two new sister buildings within budget,” Heinfeld recalls. “There was real time input, real will create a significant public plaza, a “pocket ” and a new time development.” secured gateway to the County’s administrative offices.

A RADICALLY PROGRESSIVE APPROACH Throughout the process, the focus was on meeting the long- term goals of the County of Orange and keeping a tight rein From the start, the P3 created a holistic framework for the on taxpayer dollars, Torriero says. “The buildings will be highly project, looking beyond the construction of the buildings to utilitarian, highly functional and give the County a lot of flexibility how they will be used. In many ways, the project took on the over time,” he stated. tenor of a corporate project, Thomas says. Workplace design became an integral part of the planning, as the County looked for efficiencies and ways to develop the type of healthy work environments craved by modern employees. All new Civic Center buildings will connect to the County’s The process was “radically different” than a typical civic office currently under-utilized central utility facility, which was development, Thomas says. “Creating an office building with the upgraded in 2017. The utility plant provides power, steam and integration of the whole team allowed us to address real costs,” chilled water at substantially below-market rates, but many of she says. “That couldn’t have happened if we were designing and the current buildings in the Civic Center lacked the connectivity putting it out to bid and then figuring out how to finance it.” and the infrastructure to access the facility. The redevelopment plan connects more buildings directly into the central utility facility, maximizing the County’s long-term investment return on “It’s a long-term, methodical, non- the facility. Throughout the process, the P3 framework allowed for long-term crisis mode of project delivery.” forecasting and analysis of each element. “It allows everyone to plan, so there are no surprises,” Wirick says. “It’s a long-term, methodical, non-crisis mode of project delivery.” The new buildings will take County workers out of dark, aging buildings into spaces bathed with natural light. Floor plans THE NEXT STEP are designed for collaboration and independent work, while Construction is expected to begin in October, 2019, on the cutting per-employee square footage from 375 feet to 260 feet next phase of the Civic Center Facilities Strategic Plan project, per person. including a $200 million, six-story “sister” building to the new The redevelopment also introduces a new era of energy County Administration South (CAS). County Administration efficiency for the County. Building 16 is designed to reduce fossil North (CAN) will include a new, state-of-the-art public meeting fuel use by 70 percent, without any renewable energy offsets. room for the Board of Supervisors and new and flexible offices The savings will be achieved through a variety of passive design for the Supervisors and staff. This next phase also includes systems, such as proper building orientations, solar shading, the demolition of three aging buildings and the relocation daylight harvesting and energy-efficient HVAC systems. of several County departments to further reinforce the “neighborhood” concept.

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