HomeMy WebLinkAboutResolution 07-13 04/16/2007
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. 07-13
A RESOLUTION EXEMPTING FROM PUBLIC BIDDING PURSUANT TO ORS 279C.335
AND THE SPRINGFIELD PUBLIC CONTRACTING ORDINANCE SMC 2.710(2)(0) A
CONTRACT WITH JOHN HYLAND CONST., INC. FOR THE CONSTRUCTION OF THE
SPRINGFIELD JUSTICE CENTER AND AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH JOHN HYLAND CONST., INC. SUBJECT TO CERTAIN
CONDITIONS.
WHEREAS, the City of Springfield has entered into a Memorandum of
Understanding with John Hyland Const., Inc. and Heery International, Inc. regarding
the Springfield Justice Center a copy of which is attached hereto and incorporated
herein by reference; and,
WHEREAS, the Common Council has thoroughly reviewed that Memorandum of
Understanding with John Hyland Const., Inc. and Heery International, Inc.; and,
WHEREAS, the Common Council has thoroughly reviewed the Memorandum
dated March 30, 2007 to the Mayor and Council from Carole Knapel, Project Manager
Springfield Justice Center and the City Attorney's office and the proposed findings
contained therein in support of exempting the Springfield Justice Center public
improvement contract from the competitive bidding requirements of ORS
279C.335(2)(a) and (b) pursuant to ORS 279C.335(1) and the Springfield Public
Contracting Ordinance SMC 2.710(2)(d); and,
WHEREAS, on the basis of the findings set forth in the March 30, 2007
Memorandum the Common Council believes that such exemption is unlikely to
encourage favoritism in the awarding of public improvement contracts or substantially
diminish competition for publiC improvement contracts and the awarding of the public
improvement contract under the exemption will result in substantial cost savings to the
City and the public.
NOW THEREFORE BE IT RESOLVED, by the Common Council of the City of
Springfield as follows:
1. The City Manager of the City of Springfield is authorized to undertake one or
more of the following courses of action:
a. Execute a contract with John Hyland Const., Inc. for Contract
Management/General Contractor services including Guaranteed Maximum
Price in the event John Hyland Const., Inc. is able to provide a bid or
ATTACHMENT B
Page 1 of 2
proposal not exceeding the construction cost as determined through the
project value engineering process.
b. Utilize the public bidding proce~s as set forth in the Oregon Revised
Statutes and the Springfield Municipal Code for the construction of the
Springfield Justice Center.
c. Execute contract change orders and contract modifications as authorized
by the Springfield Public Contracting Ordinance SMC 2.710(6).
d. Take other action necessary and appropriate to facilitate construction of
the Springfield Center as described in 1a or 1b, and 1c.
2.
The findings set forth in the March 30; 2007 Memorandum are adopted and
incorporated herein in support of the Council's determination that an exemption
from the public bidding requirements for the Springfield Justice Center is
warranted under ORS 279C.335(2)(a) and (b) pursuant to ORS 279C.335(1) and
. the Springfield Public Contracting Ordinance SMC 2.710(2)(d).
. V
April 7 V~
This Resolution shall take effect on -MaFC-ft. 16, 2006.
3.
Adopted by the Common Council and approved by the Mayor of the City of
Springfield, Oregon this 16th day of April , adopted by a vote of 6 for
and ~ against.
"
Mayor
ATIEST:
~ ~IJW A--
Amy Sow CIty Recorder
N:\City\Planning Zoning\.]ustice Ctr Heery Contract\Resolution.doc
,:~':C'I\'FO & APPROVED
"... 'i''''' rt'"\M(I{
."", ~" J' un\.v_ \
_..)<:5 ">'::...r.,'"' ~ L "..J""\'~(
",: ,,~LX..J.)J~~,
"",.'" ('\~ ("'I-ry '\JTORNEY
~ l,~) ~::-.. ) ~.. ,,.; ~ r\ ~
ATTACHMENT B
Page 2 of 2
RESOLUTION NO. 07-13
MEMORANDUM
OFFICE OF CITY ATTORNEY
DATE:
March 30, 2007
TO:
Sid Leiken, Mayor
Christine Lundberg, Council President
Hillary Wylie, Councilor
Anne Ballew, Councilor
Dave Ralston, Councilor
John Woodrow, Councilor
Joe Pishioneri, Councilor
FROM:
Carole Knapel, Project ManagerctL-
Alyssa Johl, Law Clerk
Joe Leahy, City Attorney J.--
RE:
Exemption From Public Bidding Pursuant to Springfield Public Contracting
Ordinance Section 2.710(2)(d) and ORS 279C.335(1) with John Hyland
Const., Inc. for Construction of Springfield Justice Center
This Memo describes the joint venture between Heery International, Inc. (hereinafter
"Heery'') and John Hyland Const., Inc. (hereinafter "Hyland'') with respect to the
Springfield Justice Center and how this relationship applies to the exemption provisions
for public improvement contracts pursuant to Springfield Public Contracting Ordinance
Section 2.710(2)(d) and ORS 279C.335(1).
The City of Springfield solicited proposals for Springfield Justice Center Construction
Manager/General Contractor (CM/GC) Services through Request for Proposals (RFP)
dated October 25, 2005 and amended subsequently on November 3, 8 and 10, 2005.
The City received three proposals in response to the RFP, one of which was submitted
by Heery + Hyland. In its proposal, Heery + Hyland described its. team's ultimate goal
as to provide a "carefully analyzed, quality project ... through a well-coordinated team
effort meeting your budget and schedule." More specifically, the proposal provides a
detailed description of the CM/GC services and management approach taken as a result
ATTACHMENT B
Page 1 of 5
Memo to Mayor & Council
March 30, 2007
Page 2
of this partnership between an international construction firm that specializes in justice
building construction and a local construction firm that could facilitate access to local
suppliers and contractors.
On p. 63 of the RFP, Heery + Hyland's proposal highlights the members of the core
management team and their relevant experience. Several Heery executives as well as
Hyland's Construction Vice-President, Shaun Hyland, were named as integral members
of the management team. Hyland's strength in this joint venture was identified as its
"extensive knowledge of the local construction market and the abilities of the local
subcontracting community." Heery, on the other hand, has significant experience in
similar projects and would "assist the team in establishing budgets for project elements
that reflect the City's and the Architect's goals" while constructing. the facility" as
envisioned and on budget. Both firms offer a wealth of knowledge and construction .
management expertise in a complementary fashion.
All in all, the unique services and expertise offered by Heery + Hyland as well as their
offer to provide a Guaranteed Maximum Price (GMP) based on CM and contractor-
prepared estimates and "value engineering" advice at each stage of design were
considered to be beneficial to the overall management and construction of the project.
As a result, the City Council awarded the Springfield Justice Center project to Heery +
Hyland.
Since then, members of the Heery + Hyland,team have worked closely during the initial
stages of project development and construction. Hyland has been an active participant
in the schematic design and design development having reviewed the drawings while
the project was in design and having attended the major milestone meetings, including
meetings held on June 22-23, September 7-8, and November 6-9, 2006. In addition, .
Hyland participated in the weekly coordination meetings with City staff. Most
significantly, Hyland participated in the assessment of local market conditions and the
provision of estimates.
As a result, Hyland has extensive knowledge and understanding of every aspect of the
project, including design, construction, schedule, budget limitations, site-specific
constraints, security technology, and other relevant factors. Considering the complexity
ATTACHMENT B
Page 2 of 5
Memo to Mayor & Council
March 30, 2007
Page 3
of the project, it is fortunate that Hyland has been an integral player in this project and
therefore can move forward as planned and on the proposed timeline.
The Springfield Public Contracting Ordinance provides in Section 2.710(2)(d) that by
Resolution the City Council may, pursuant to ORS 279C.335(1), exempt a public
improvement contract from the competitive bidding requirements of ORS 279C.335(2)
upon approval of the following findings:
(a) exemption is unlikely to encourage favoritism in the awarding of public
improvement contracts or substantially diminish competition for public
improvement contracts; and
. (b) awarding of public improvement contracts under the exemption will result in
substantial cost savings to the City or to the public.
Each criterion will be considered in turn.
(a) The Exemption is unlikely to encourage favoritism in the awarding of public
improvement contracts or substantially diminish competition for public improvement
contracts.
Findings in support of ORS 279C.335(2)(a):
1. The City of Springfield solicited proposals for Springfield Justice Center
Construction Manager/General Contractor Services through Request for
Proposals dated October 25, 2003, and the City received three proposals
in response to the RFP, one of which was submitted by the team of Heery
+ Hyland.
2. Each of the proposals was submitted by local construction companies that
have extensive knowledge of the local construction market. Knowledge of
the local construction market was one of the factors used in evaluating
the proposals. Further, each of the local companies demonstrated how
they would offer expertise in the construction of secure facilities.
3. The proposals were reviewed by a Selection Committee, which included
eight City staff, the project architect, and City Council representatives,
ATTACHMENT B
Page 3 of 5
Memo to Mayor & Council
March 30, 2007
Page 4
using scoring criteria previously adopted by the City Council for the ~ustice
Center project.
4. Following the proposal review process described above, firms were invited
to participate in oral interviews. Each firm was provided with a list of
questions, which they were instructed to address in their presentation to
the Selection Committee. Members of the Selection Committee scored the
presentations based on the firms' responses to these questions.
5. The final stage of the selection process was a reference check of each
firm. City staff contacted previous clients and requested information
regarding the performance of the firms and their personal experience with
key staff members proposed to be assigned to the Justice Center project.
6. Based on the written proposals, oral interviews and reference checks, the
Selection Committee authorized City staff to negotiate a contract with
Heery + Hyland.
7. On July 17, 2006, the City Council approved a construction cost budget of
$24,066,305 for the Justice Center project based on estimated available
funds.
8. Through the competitive public selection process described above, the
City provided an opportunity for interested firms to submit proposals for
Springfield Justice Center CM/GC Services pursuant to the applicable
competitive bidding requirements.
9. Considering that Hyland as part of the Heery + Hyland joint venture was
awarded the Justice Center contract through this competitive public
selection process, this exemption would neither encourage favoritism nor
substantially diminish competition for public improvement contracts.
. (b) The awarding of public improvement contracts under the exemption will result in
substantial cost savings to the City or to the public.
Findings in support of ORS 279C.335(2)(b):
1. The design of the Justice Center project included input from the City
Police Department, City prosecutor, and' court staff. During the design
process, the project architect worked closely with these law enforcement
ATTACHMENT B
Page 4 of 5
Memo to Mayor & Council
March 30, 2007
Page 5
officials and staff to develop a design that would meet the City of
Springfield's operational requirements while using cost effective materials
and construction methods.
2. One of the critical components of the Justice Center facility is the security
requirements, which include security systems and site-specific
construction materials and methods.
3. Due to Hyland's participation throughout the design process, Hyland has a
detailed understanding of the project requirements, including security
requirements, and can work through the construction phase to identify
potential cost savings in construction materials and methods without
impacting the facility operations and the required security design and
systems.
4. The construction schedule for the Justice Center was developed to ensure
that construction proceeds as quickly as possible while maintaining City
operations. This schedule was created in collaboration with members of
the project team, including the City staff, project architect, and Hyland.
This project schedule is an integral part of project cost control.
5. According to anecdotal. evidence provided by the project architect,
awarding the contract to Hyland would result in both a time-saving and
therefore cost-saving scenario, since it would take a minimum of one
month to bid the project out. The longer the City defers the awarding of
the contract, the higher the project costs will be based on the timing of
the bidding process in relation to the major construction period. As we
rapidly approach the summer months, a public bid will likely result in a
less competitive and aggressive bidding atmosphere because firms will
have already committed their resources to other projects.
6. Further, awarding the contract to Hyland would obviate the need to
reinitiate the competitive public selection process, which would cost the
City additional staff time and resources.
7. Considering Hyland's expertise, knowledge and involvement in the Justice
Center project from the time at which the Heery + Hyland team was
selected, the awarding of the contract to Hyland under this exemption
would result in substantial cost savings to the City and to the public.
N:City/Planning/Justice Center Heery/Memo to Mayor and Council.doc
ATTACHMENT B
Page 5 of 5