Res 1897 - Waste Water Suction DredgeCOUNCIL BILL NO. 2728
RESOLUTION NO. 1897
A RESOLUTION EXEMPTING THE WASTEWATER TREATMENT PLANT SUCTION DREDGE
ACQUISITION AND INSTALLATION 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 Wastewater Treatment Plant suction dredge acquisition and
installation 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 acquisition and installation of the Wastewater Treatment
Plant suction dredge 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 Wastewater Treatment Plant suction dredge 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 Wastewater Treatment Plant suction dredge acquisition
and installation contract from competitive bidding requirements and authorizes
the use of Design -Build procurement as an Alternative Contract Method.
Sect;on 2. This contract exemption is based upon the Findings attached
as Exhibit "A" and incorporated herein.
Page 1 - Council Bill No. 2728
Resolution No. 1897
Approved as to form: qn��
City Attorney
Apped: �
Kafhry6 Fig
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST:
Mary Te Want City Recorder
City of Woodburn, Oregon
Page 2 - Council Bill No. 2728
Resolution No. 1897
6--- 6 - za OK
Date
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Jun 9, 008
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June 11, 2008
June 11, 2008
Exhibit A
FINDINGS SUPPORTING EXEMPTING THE WASTEWATER TREATMENT PLANT SUCTION
DREDGE ACQUISITION AND INSTALLATION 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
2790.375, awarded to the lowest responsive and responsible bidden
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 acquire and install a suction dredge for the Woodburn
Wastewater Treatment Plant.
5. The acquisition and installation of the suction dredge 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
Wastewater Treatment Plant suction dredge acquisition and installation
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 suction dredge contract from competitive bidding
requirements.
8. 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.
BACKGROUND
1. The City of Woodburn has a Publicly Operated Treatment of Wastewater
Facility located at 2815 Molalla Road, Woodburn, OR 97071. An integral part of
the wastewater treatment system is the two facultative sludge lagoons of
approxiimately two and one half acres each. The lagoons are designed to have
bio -solids settle out of the wastewater. These bio -solids have accumulated as
settlement in the lagoons and must be removed. Construction of the
wastewater treatment plant did not provide for this removal. It has been
determined that the most effective manner to remove the biosolids is by a
suction dredge process.
2. There are several different suction dredge manufacturers available, but the
design for installation of the dredge will be proprietary to the specific dredge
assembly selected. To optimize the best value to the City of Woodburn., the
Public Works Department has proposed to proceed with the installation of the
dredge utilizing the Design -Build alternative contract method for this project.
3. The suction dredge installation project is an approved capital improvement
project in the City of Woodburn Capital Improvement Program. Sufficient funds
are budgeted for this project.
4. In awarding this contract the City will use a competitive Request for Proposals
(RFP) procurement process pursuant to OAR 137-049-0640 to procure a Design -
Build contract with a contractor.
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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; (f)
Market conditions; (g) Technical complexity; and (h) Funding sources."
2. The City Council finds that these criteria support exempting the Wastewater
Treatment Plant suction dredge acquisition and installation 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 the dredge system. The
optimum system that provides the greatest value to the City will
include installation details that are proprietary to the manufacturer of
the suction dredge selected.
B) Public Benefits: Utilization of the design/build contract delivery
process will allow the City to compare operational benefits of one
suction dredge system to another considering both the operational
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characteristics the suction dredge, installation costs, and long term
maintenance requirements.
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) S r)ecia l ized Expertise Required: Specialized expertise will be required
to coordinate, procure, and install various products, services, and
supplies needed to provide a fully functional suction dredge system.
Contractor will have to coordinate with the Wastewater Treatment
Plant systems and operations during installation of the suction
dredge.
E) Public Safety: Public safety will be maintained by design and
construction activities ensuring plant operations are not interrupted
by the installation of the suction dredge.
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 suction dredge selected with the
installation constraints of the existing plant configuration.
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. QRS 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 OAR 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
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to acquire and install a suction dredge 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
ORS 279C.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
279C.335(2) (b) requires an agency to find that "The awarding of public
improvement contracts under the exemption will result insubstantial cost savings
to the public contracting agency." This finding is supported by the following
facts:
A) Because this work will integrate specialized equipment into an
operating wastewater treatment facility, a requirement to
competitively bid this type of acquisition would create additional
expense and lead to uncertainty regarding installation interferences.
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.
6j An exemption from competitive bidding will allow the City to take
advantage of dredge manufacturer expertise and value engineering
during the proposal phase of the project versus having to address
future change orders.
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