Res 1896 - Aquatic HVAC Exempt ContractCOUNCIL BILL NO. 2727
RESOLUTION NO. 1896
A RESOLUTION EXEMPTING THE AQUATIC CENTER HVAC REPLACEMENT CONTRACT
FROM COMPETITIVE BIDDING REQUIREMENTS AND AUTHORIZING USE Of THE
DESIGN -BUILD PROCUREMENT METHOD
WHEREAS, the City Council, acting as the Local Contract Review Board,
held a public hearing on June 9, 2008 for the purpose of receiving public input
on exempting the Woodburn Aquatic Center Heating, Ventilation and Air
Conditioning (HVAC) replacement contract from the requirements of
competitive bidding; and
WHEREAS, notice of the public hearing was published on May 23, 2008
pursuant to ORS 279C.335(5) in the Daily Journal of Commerce of Portland,
Oregon, a trade newspaper with general statewide circulation; and
WHEREAS, the replacement of the HVAC system is a Public Improvement
Contract subject to the competitive bidding process; and
WHEREAS, the City Council believes that it is in the public interest to
exempt the HVAC system replacement contract from competitive bidding
requirements and to authorize the use of Design -Build procurement as an
alternative contract method; and
WHEREAS, a public hearing was held pursuant to OAR 137-049-0630 and
Findings have been prepared to justify the City Council's decision; NOW,
THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. The City Council, acting as the Public Contract Review Board,
hereby exempts the HVAC system replacement contract from competitive
bidding requirements and authorizes the use of Design -Build procurement as an
Alternative Contract Method.
Section 2. This contract exemption is based upon the Findings attached
as Exhibit "A" and incorporated herein.
Page 1 -- Council Bill No. 2727
Resolution No. 1896
Approved as to form: ?
City Attorney
Approved:
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST:
Mary Te ant City Recorder
City of Woodburn, Oregon
Page 2 Council Bill No. 2727
Resolution No. 1896
G-6-z��g
Date
athryn Figl Ma or
001,
June V.,2008
June 11, 2008
June 11, 2008
June 11, 2008
Exhibit A
FINDINGS SUPPORTING EXEMPTING THE AQUATIC CENTER HVAC REPLACEMENT
CONTRACT FROM COMPETITIVE BIDDING REQUIREMENTS AND AUTHORIZING USE
OF THE DESIGN -BUILD PROCUREMENT METHOD
1. ORS 279C.335(1) requires, with certain exceptions, that all Public
Improvement Contracts be based on competitive bids and, under ORS
279C.375, awarded to the lowest responsive and responsible bidder.
2. ORS 279C.335(2) permits the City Council, acting as the Local Contract
Review Board, to grant, under certain conditions, specific exemptions from the
requirement for competitive bidding upon the approval of specified findings.
3. OAR 137-049-0620, allows the Local Contract Review Board to exempt a
Public Improvement Contract from the requirements to be competitively bid,
provided that written Findings show compliance with OAR 137-049-0600 to 137-
049-0690 and applicable statutes.
4. The City intends to replace the Heating, Ventilation, and Air Conditioning
(HVAC) System of the Woodburn Aquatic Center.
5. The replacement of the HVAC system is a Public Improvement Contract
subject to the competitive bidding process.
6. The City Council believes that it is in the public interest to exempt the HVAC
system replacement contract from competitive bidding requirements and to
authorize the use of Design -Build procurement as an alternative contract
method.
7. A public hearing was held on June 9, 2008, pursuant to OAR 137-049-0630, for
the purpose of receiving public comment from all interested persons regarding the
exemption of the HVAC system replacement contract from competitive bidding
requirements.
8. Notice of the public hearing was published on May 23, 2008 pursuant to QRS
279C.335(5) in the Daily Journal of Commerce of Portland, Oregon, a trade
newspaper with general statewide circulation.
BACKGROUND
1. The City needs to replace the HVAC system at the Woodburn Aquatic
Center. The existing system has been identified as being deficient in providing
the number of air exchanges needed to provide acceptable air quality in the
Aquatic Center. The existing system requires excessive corrective maintenance
expenditures and is not reliable. Damage to the Aquatic Center roof system has
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resulted from excessive indoor humidity condensing on the roof system. Fixtures
inside the Aquatic Center are deteriorating due to the build-up of corrosive
conditions created by a combination of insufficient outside air and recirculation
of chlorine vapors in the atmosphere within the Aquatic Center.
2. The Community Services Department obtained the services of Enertia Energy,
Inc., 9400 SW Beaverton -Hillsdale Hwy,, Beaverton, Oregon,, 97005, to conduct an
energy audit of the Aquatic Center. It was not the intent of the energy audit to
provide detailed solutions to each and every system at the facility. The goal of
the energy audit was to evaluate opportunities and describe methods and
procedures that can be taken to reduce the energy use of the facility, and thus
reduce the facilities' energy bill.
3. The measures that save electricity and / or gas may be eligible for a Business
Energy Tax Credit using a Pass -Through Partner Option, which could provide
the City with approximately 25.5% of the project cost (or the incremental cost
of a high efficiency project compared to a standard code efficiency project).
Enertia Energy has estimated the potential tax credit at this point, and further
steps must be taken to submit an application to determine the actual tax credit
available through the Oregon Department of Energy.
4. Enertia Energy recommended installation of 100 percent outside air HVAC
system for the Natatorium utilizing a high efficiency heat wheel with variable
speed drive. This measure evaluated the energy savings that could be
achieved by installing a new HVAC system for the Natatorium that incorporates
(2) energy saving features that exceed the Oregon Energy Code:
• Variable speed drives on the supply and return fan motors that will slow
the fans down when the building is unoccupied and pool blankets are in
place;
• A high efficiency heat wheel to recover the exhaust air heat to preheat
the incoming outside air.
5. The Public Works Department proposes a Design -Build procurement to obtain
proposals for replacement of the existing HVAC system, maximize energy
savings possible, and to earn energy credits available through the Oregon
Department of Energy.
6. Pursuant to OAR 137-049-0640, the City will use a competitive Request for
Proposals (RFP) process to procure a Design -Build contract with a contractor.
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II
FINDINGS REGARDING REQUIRED CRITERIA
1. ORS 279C.330 provides that: "'[F]indings' means the justification for a
contracting agency conclusion that includes, but is not limited to, information
regarding: (a) Operational, budget and financial data; (b) Public benefits; (c)
Value Engineering; (d) Specialized expertise required; (e) Public safety; (fJ
Market conditions; (g) Technical complexity; and (h) Funding sources."
2. The City Council finds that these criteria support exempting the Aquatic
Center HVAC replacement contract from competitive bidding requirements
and authorizing the use of the Design -Build procurement method. These criteria
are addressed as follows:
(A) Operational, Budget and Financial Data: Limited funding is
available for the acquisition and installation of a new HVAC system.
The optimum system that provides the greatest value to the City will
include energy savings features identified in the Enertia Energy
audit and recommended energy efficiency measure identified.
(B) Public Benefits: Utilization of the Design -Build contract delivery
process will allow the City to consolidate responsibilities for HVAC
system performance to a single vendor. Due to the need to
carefully coordinate system design, equipment performance
parameters, and installation quality control, it is difficult for the
owner to separate areas of responsibility for system performance
issues under the conventional Design -Bid -Build procurement
procedure.
(C) Value Engineering: Value Engineering will be part of the selection
process used to determine which proposing firm would provide the
best combined value for the City.
(D) Specialized Expertise Required: Specialized expertise will be
required to coordinate, procure, and install various products,
services, and supplies needed to provide a HVAC system that
meets the performance requirements of this contract and energy
savings.. Contractor will have to coordinate equipment delivery
with project delivery schedule for the HVAC system replacement.
(E) Public Safety: Public safety will be maintained by design and
construction activities ensuring interruptions to the Aquatic Center
operations are minimized and that there is no risk to facility users
during system replacement.
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(F) Market Conditions: The specialty products, services, and supplies
needed under this contract are not particularly impacted by
market conditions.
(G) Technical Complexity: Implementation of this project involves a
number of issues of technical complexity. Special skill and expertise
are needed for optimizing system components selected for the
HVAC system replacement to optimize energy savings and meet
performance criteria.
III
FINDINGS REGARDING COMPETITION
1. ORS 279C.335(2) requires that an agency make certain findings as a part of
exempting public improvement contracts or classes of public improvement
contracts from competitive bidding.
2. ORS 279C.335(2) (a) requires an agency to find that: "It is unlikely that the
exemption will encourage favoritism in the awarding of public improvement
contracts or substantially diminish competition for public improvement
contracts." The City Council finds that selecting the contractor through an
exempted competitive proposal selection process in accordance with CSAR 137-
049-0620 and 137-049-0630 will not inhibit competition or encourage favoritism.
This finding is supported by the following facts:
(A) The proposed Design -Build alternative contract delivery
methodology is a competitive proposal process that allows the City
to select a firm to provide and install the HVAC system that provides
the best value to the City. Competitively bidding this type of work
creates additional confusion and uncertainty in the public
contracting process. Simple price competition is not feasible due to
the need to coordinate design, equipment selection, and quality of
installation to achieve the performance requirements and energy
savings.
(B) The Design -Build Contractor will be selected through an open and
competitive process as prescribed by ORS 279C.400 to 410 and
related administrative rules.
IV
FINDINGS REGARDING SIGNIFICANT COST SAVINGS
1. ORS 2790.335(2) requires that a contracting agency make certain findings in
requesting approval of the exemption of a certain public improvement contract
or class of public improvement contracts from competitive bidding. ORS
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279C.335(2) (b) requires an agency to find that "The awarding of public
improvement contracts under the exemption will result in substantial cost savings
p
to the public contracting agency." This finding is supported by the following
facts:
(A) Because this work will integrate specialized equipment into an
operating HVAC system, a requirement to competitively bid this
type of acquisition would create additional expense and lead to
uncertainty regarding installation coordination with system design
and equipment selection. Each procurement process and contract
change will increase the cost of the project and extend the project
schedule. Extending the project schedule will increase construction
administration and project management cost.
(B) An exemption from competitive bidding will allow the City to take
advantage of HVAC manufacturer expertise and value engineering
during the proposal phase of the project versus having to address
future change orders.
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