191795

The City of Portland ordains:

Section 1. The Council finds:

1. The Bureau of Fleet and Facilities (BFF) is seeking to replace the City’s primary fleet maintenance and repair garage, which is too small and deteriorated to meet the City’s existing and future fleet needs.
    
2. The Project will require specialized skills and experience in construction methodology, problem solving, sequencing, scheduling, and cost management to successfully complete and commission the work and to verify that the completed space is fully operational prior to occupancy.
    
3. Procurement Services and BFF recommend using the alternative contracting method of Construction Manager/General Contractor (CM/GC) for the Project to allow BFF to:
    

   1. Select a CM/GC with the experience and qualifications necessary t coordinate and build a new fleet maintenance and repair garage;

   2. Obtain valuable input from the CM/GC during the design process on construction packaging, sequencing, and procurement of long lead items; and evaluating upfront versus ongoing maintenance costs during early cost estimate and specifications reviews;

   3. Obtain continuous value engineering to ensure cost containment and best value for the community;

   4. Ensure that there are opportunities for Service-Disabled Veterans Business Enterprises, Disadvantaged, Minority, Women, and Emerging Small Businesses in the contracting process.

4. Portland City Council serves as the Local Contract Review Board, with the authority to exempt certain public contracts from the competitive bidding requirements of ORS Chapter 279C and Portland City Code 5.34.
    
5. The City will invite prospective CM/GC’s to submit competitive proposals in response to the City’s Request for Proposals (“RFP”). The Selection Committee will select the CM/GC based n an evaluation of the proposals. The Selection Committee will include staff from BFF, the Architect/Engineering (A/E) consultant, and other stakeholders from the community, including a minority evaluator(s) as required per Resolution 36757. The RFP process will be completed under the guidance and direction of Procurement Services and in accordance with Alternative Contracting Methods requirements as set forth in Portland City Code 5.34.
    
6. Draft findings addressing favoritism, competition, substantial cost savings, operations, budget and financial data, public benefits, value engineering, specialized expertise required, public safety, market conditions, technical complexity, and funding sources recommended by the City are attached hereto as Exhibit A (collectively, the “Findings”), have been made available, and a notice of the public hearing of this Ordinance was published fourteen (14) days in advance of this public hearing.
    
7. Based on the Findings, the exemption of the Project from the competitive bidding requirements of ORS 279C is:
    
   1. Unlikely to encourage favoritism or to diminish competition for public contracts, because the contract will be awarded using a competitive solicitation process; and
       
   2. Likely to result in substantial cost savings to the City because the CM/GC will be integrated into the design team for value engineering, constructability review, and assistance in developing a construction phasing plan. Such early integration is intended to reduce the chances of redesign, change orders and cost overruns.
       
8. The estimated Construction Contract cost is $42,016,303. The estimated total Project cost is $53,127,254, including construction, architecture, design and other professional services, permits and fees, project management services, Owner’s Representative services, FF&E, 2% for art, and moving costs.  Although the Project has been professionally cost estimated twice by a third-party cost estimator, and although their construction estimates came within 7% of one another, the Project has not yet hit 60% complete for design and engineering. Thus, per the City’s Confidence Level Rating Index, Facilities’ confidence in the cost estimate must be rated as low.

NOW, THEREFORE, the Council directs:

1. Council hereby approves the Findings, as presented in Exhibit A, and on that basis exempts the Project from the competitive bidding requirements of ORS 279C.
2. The Chief Procurement Officer is authorized to use an alternative competitive solicitation process to select a CM/GC Contractor for the Project and, upon selection of a CM/GC, is authorized to execute a contract for CM/GC pre-construction services during the design phase of the Project, provided the contract has been approved as to form by the City Attorney.
3. Upon Council’s acceptance of the Chief Procurement Officer’s report recommending the Guaranteed Maximum Price (GMP), the Chief Procurement Officer is authorized to execute a contract for construction of the first and final phase of the Project, provided that the contract has been approved as to form by the City Attorney.
4. The Mayor and Auditor are hereby authorized to pay for the contract from the Fleet Services Fund budget when demand is presented and approved by the proper authority. As required by ORS 279C.355 and PCC 5.34.820C, Facilities will prepare and deliver a post-project evaluation to the Council on behalf of the Chief Procurement Officer, once the City accepts the Project as complete.