TO: Chair and Housing Authority Commissioners
THROUGH: Krishna Namburi, Executive Director
FROM: Nicole Utz, Director of Housing
SUBJECT:
title
Request for Exemption from the Competitive Bidding Process and Authorization of an Alternative Contracting Method of Construction Manager/General Contractor for the Glen Creek Redevelopment Project
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Safe and Healthy Community; Welcome and Livable Neighborhood
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SUMMARY:
summary
Public Hearing - Exemption from the competitive bidding process and authorization of an alternative contracting method for the Glen Creek Redevelopment Project.
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ISSUE:
Shall the Salem Housing Authority Commission, acting as the Local Contract Review Board, adopt SHA Resolution No. 2322 to approve an exemption from the competitive bidding process and the use of Construction Manager/General Contractor (CM/GC) services for a class of public improvement contracts for the rehabilitation and construction of the Glen Creek Apartments redevelopment project, an affordable housing property?
RECOMMENDATION:
recommendation
Adopt SHA Resolution No. 2322 to approve an exemption from the competitive bidding process and the use of Construction Manager/General Contractor (CM/GC) services for a class of public improvement contracts for the rehabilitation and construction of the Glen Creek Apartments redevelopment project, an affordable housing property.
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FACTS AND FINDINGS:
An exemption to the competitive bidding requirements set forth in Oregon Revised Statutes (ORS) Chapter 279C and the SHA’s Public Contracting Rules is necessary for this project to proceed. An exemption is needed to allow the SHA to utilize the expertise of a CM/GC during the design stages of the project to gain as much efficiency as possible in both cost and amenities. The CM/GC would be selected competitively via a request for proposals (RFP) for this project.
The public improvement contract to be awarded for the construction comprises a limited and distinct class of such public improvement contracts. ORS 279C.335 and SHA Public Contracting Rule (PCR) 9.7 allow an identified class of public improvement contracts to be exempted from the competitive bidding process.
Pursuant to ORS 279C.335(2) and PCR 9.7, the Local Contract Review Board may exempt a public improvement contract or a class of public improvement contracts from the competitive bidding requirements if, after a public hearing, the Local Contract Review Board finds that such an exemption is unlikely to encourage favoritism in the awarding of public improvement contracts or substantially diminish competition for public improvement contracts, and the exemption will likely result in substantial cost savings and other substantial benefits to the contracting agency or the public.
Findings of Fact demonstrating compliance with the applicable criteria are set forth in Exhibit A to Resolution No. 2322 - Attachment 2.
As required by ORS 279C.335(5) and PCR 9.7(c), notification of the public hearing for this exemption was published in at least one trade newspaper of general statewide circulation a minimum of ten (10) business days before the public hearing. At the time notice was published, copies of the draft findings were available to the public.
Upon approval of this exemption, the SHA will issue an RFP for CM/GC for the project. The resulting contract will be reviewed and approved by the SHA’s Executive Director, legal counsel, and the Director of Housing. The estimated value of the work to be performed by the selected CM/GC will be dependent upon the project and will be part of a financial package prepared by SHA and contractors.
BACKGROUND:
Affordable housing in Salem has been a desired goal for the past several years. Currently, the Housing Authority of the City of Salem (SHA) is working on a new affordable housing project - the Glen Creek Redevelopment Project. The property has been working through land use actions to separate out a floodway located on the parcel. The floodway has prevented use of capital funds due to HUD restrictions and has contributed to the deterioration of the project. The Total cost to rehabilitate the project exceeds the new development costs and therefore HUD will determine obsolescence. Once the GC is onboarded, costs estimates will be identified and allow for a complete submission to HUD for redevelopment of the parcel.
SHA intends to submit the existing buildings for approval to demolish and build new to a higher density. Currently, the project is 30 units of public housing (townhouse style) and will be converted into approximately 100 units of affordable housing (garden style walk-up). The site will also be upgraded to include additional amenities, laundry on site and a community building.
An exemption from the competitive bidding requirements set forth in Oregon Revised Statutes (ORS) Chapter 279C and the SHA’s Public Contracting Rules is necessary for this project to proceed. An exemption is needed to allow SHA to utilize the expertise of a CM/GC during the design stages of the project to gain as much efficiency as possible in both cost and amenities. The CM/GC would be selected competitively via a request for proposals (RFP) for this project.
The public improvement contract to be awarded for the construction comprises a limited and distinct class of such public improvement contracts. ORS 279C.335 and SHA Public Contracting Rule (PCR) 9.7 allow an identified class of public improvement contracts to be exempted from the competitive bidding process.
Nicole Utz
Director of Housing
Attachments:
1. SHA Resolution No. 2322
2. Exhibit A - Findings of Fact
3. PowerPoint Presentation | CMGC Request