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 Filter No. 2 Reconstruction 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 May 2021, 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) Filter No. 2 Reconstruction Project. Oregon Revised Statues 279C.355 requires contracting agencies to submit evaluation for public contracts that have been exempt 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 GIWTF Filter No. 2 Reconstruction Project.
RECOMMENDATION:
recommendation
Information only.
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FACTS AND FINDINGS:
SCI was awarded the CM/GC contract for GIWTF Filter No. 2 Reconstruction Project in November 2021.
On March 15, 2024, the City received notification from SCI of the final completion of GIWTF Filter No. 2 Reconstruction Project. The final completion letter combined with submission of final lien release, final payment, final schedule, and release of retainage completes all work. 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 $26,533,445. After completion, the total amount paid was $24,282,757, which is $2,250,688 less than the awarded contract.
The GIWTF Filter No. 2 Reconstruction Project was funded with State of Oregon grant funds and utility rates. The State restricted the grant funds to be used only for the GIWTF Filter No. 2 Reconstruction Project. Funding in excess of the savings amount was contributed from utility rates. Therefore, contract savings will return the water utility rates fund.
BACKGROUND:
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 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 Upgrades, 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 Filter No. 2