TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
title
Final evaluation of the Construction Manager General Contractor (CM/GC) alternative contracting method used for the Geren Island Water Treatment Facility (GIWTF) Improvements Project.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Safe, Reliable and Efficient Infrastructure
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SUMMARY:
summary
In June 2019, City Council, acting as the local contract review board, adopted findings in support of an exemption from the typical competitive bidding process and authorized the use of a Construction Manager General Contractor (CM/GC) contracting method for construction of the Geren Island Water Treatment Facility (GIWTF) Improvements Project. Oregon Revised Statues 279C.355 requires contracting agencies to submit an evaluation for public contracts that have been exempted from the typical competitive bidding process to the local contract review board after the projects are complete.
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ISSUE:
Present City Council with the final evaluation, per Oregon Revised Statutes 279C.355, of the CM/GC public improvement contract performed by Slayden Constructors Inc. (SCI) for the GIWTF Improvements Project.
RECOMMENDATION:
recommendation
Information only.
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FACTS AND FINDINGS:
SCI was awarded the CM/GC contract for the GIWTF Improvements Project in October 2019. The project included the construction of an ozone treatment facility and a large diameter Ranney collector well.
On April 9, 2024, the City received notification from SCI of the final completion of GIWTF Improvements Project. This included the final completion letter combined with submission of final lien release, final payment, final schedule, and release of retainage. All work has been completed, all costs have been invoiced, and the contracts can be closed. The Post Project Evaluation is attached.
The total contract price awarded to SCI was $49,644,698. After completion, the total cost paid was $48,391,451, which is $1,253,247 less than the awarded contract.
The GIWTF Improvements Project was funded using revenue bonds, utility rates, and system development charges. Project savings will return to the water utility rates fund.
BACKGROUND:
In 2018, raw water quality changes in the North Santiam Watershed created challenges in the drinking water treatment process. Those water quality challenges have been addressed by the GIWTF Improvements Project and a separate project for the reconstruction of Filter No. 2 at the facility. The GIWTF Improvements Project added an ozone treatment facility to treat algal toxins and expanded groundwater capacity through the construction of a new Ranney collector well.
In accordance with State statutes and City Procurement Rules, typical City public improvement projects use a competitive bidding process where contracts are awarded to the lowest responsive bidder. For specific, complex projects with unusual technical, budget or schedule-related challenges, the City may employ alternate contracting processes to mitigate risk. These alternate processes allow for consideration of other factors such as qualifications and experience in addition to the cost of the work. Per the requirements of Oregon Revised Statutes 279C, the alternate process must be approved by the local contract review board which is the Salem City Council. Other recent projects that have been authorized to proceed with alternate contracting methods include improvements at Willow Lake, Salem’s Aquifer Storage and Recovery Site, the Salem Police Station, the Salem Public Library, Geer Park Skate Park, the Civic Center Seismic Improvements, and the Public Works Operations Building.
Allen Dannen, PE
City Engineer
Attachments:
1. Post Project Evaluation for a CM/GC Project, Geren Island Water Treatment Facility Improvements Project