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2004-1456-Resolution No. 2004-135 Recorded 12/21/2004If REVIEWED - LEGAL COUNSEL DESCHUTES COUNTY OFFICIAL RECORDS CJ �004.1456� NANCY BLANKENSHIP, COUNTY CLERK COMMISSIONERS' JOURNAL A'4406 PM 1111111111111111111111111111111 1456 ILILIIZ00 03, , BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Declaring an Exemption from Competitive Bidding Requirements for Courthouse Remodel Project. RESOLUTION NO. 2004-135 WHEREAS, ORS 279.029 generally requires that all contracts for public improvements be let to the lowest responsible bidder; and WHEREAS, ORS 279.015(2) nonetheless allows certain exemptions to the general requirement for low competitive bidding upon the making of certain findings by the local contract review board of a public agency; and WHEREAS, The Deschutes County Code, Section 2.36.010, designates the Board of County Commissioners to act as the local contract review board; and WHEREAS, The Deschutes County Code, Section 4.06.170 ,authorizes the Board, by resolution, to declare an exemption from the obligation to seek competitive proposals; and WHEREAS, County staff has published notice of public hearing and has received no comments on this proposed exemption; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, acting in its capacity as the local contract review board, as follows: Section 1. Based upon the information stated in this Resolution and Exhibit A, which is adopted and incorporated herein, the Board hereby finds that it is unlikely the exemption will encourage favoritism in the awarding of public contracts or substantially diminish competition for public contracts and the awarding of public contracts pursuant to the exemption will result in substantial cost savings to County. Section 2. Based upon the above findings, a specific exemption to the selection process outlined in the Deschutes County Code is hereby granted to Kirby Nagelhout Construction Company and to enter into an appropriate contract therefor, the final terms and conditions of which are subject to legal review and Board approval. PAGE 1 OF 2 — RESOLUTION NO. 2004-135 (12/20/04) Section 3. This Resolution shall become effective immediately upon its adoption. DATED this day of ' , 2004. ATTEST: Recording Secretary PAGE 2 OF 2 — RESOLUTION NO. 2004-135 (12/20/04) BOARD OF COUNTY COMMISSIONERS OF DESC1 UTES COUNTY, OREGON MICHAEL M. DALY, Chair TOM DEW ,-Commissioner. DiENNIS R. LUKE, Commissioner EXHIBIT A The Board of County Commissioners of Deschutes County, Oregon, sitting as the local contract review board ("Board") finds as follows: Authority to exempt contract from competitive bidding. ORS 279.015(2) and the Deschutes County Code authorize the Board, acting as the local contract review board, to exempt certain contracts from competitive bidding upon approval of appropriate findings. Public contracts may be exempted from the competitive bidding requirements if it is unlikely the exemption will encourage favoritism in the awarding of public contracts or substantially diminish competition for public contracts and the awarding of public contracts pursuant to the exemption will result in substantial cost savings to the public contracting agency. In making such findings, the Board may consider the type, cost, amount of the contract, number of persons available to bid and such other factors as may be deemed appropriate. The Board makes the following findings in support of the exemption and in compliance with the statutory requirements described above. Project Description Deschutes County intends to make tenant improvements to the existing 3 -story, 16,000 -square - foot Courthouse building. The building was constructed in the 1940s, and an extensive remodel is necessary to prolong the usefulness of the facility and to provide more usable office space. Key components of the tenant improvements include: • Installation of a new HVAC system throughout the entire building. • Remodel of restrooms for ADA compliance. • Demolition of interior walls and construction of reconfigured spaces. • Construction of a fire escape. • Installation of new floor coverings. This project is considering an exemption of the competitive bidding requirements because the County is currently remodeling/adding to the adjacent Justice Center facility. The original intent was to connect the two buildings, which required that both buildings be equipped with a fire suppression system because with a single point of entry for both buildings, they would become one facility. As part of the contract for the Justice Center, Kirby Nagelhout Construction Company has already been awarded the work to install the fire sprinkler system throughout the Courthouse building as well as the Justice Center. No Favoritism or Diminished Competition Deschutes County followed the competitive bidding requirements for the adjacent Justice Center remodel project and Kirby Nagelhout Construction Company was selected as the lowest responsible bidder. Draft Findings for Exemption to Competitive Bidding Requirements — Courthouse Remodel Substantial Cost Savings. There will be substantial cost savings to the County in awarding the contract for the Courthouse tenant improvements to the same contractor as the adjacent Justice Center project. Savings will be recognized in the following areas: 1) Reduced general conditions/mobilization costs because contractor is already on site; this will result in savings of job trailer, mobilization, supervision, project management, etc. 2) An immediate award will ensure prices are more quickly established. Because it is reasonable to assume that materials costs will continue to escalate, even during the time it takes to complete a formal bid process, the County can expect to save money from escalating prices. 3) Additional savings can reasonably be expected because subcontractors already present for the Justice Center project and fire sprinkler system installation will avoid additional mobilization costs. Fast Track Project — Time Restrictions. Timely completion and coordination of the Project is essential. A separate contractor undertaking the proposed improvements can reasonably be expected to occupy some of the same space as the existing contractor installing the fire sprinkler system, and thus risk incurring additional costs to the County. In addition, the contractor on the Justice Center remodel is estimating completion of that project by the end of June. If the Courthouse project is delayed, the cost savings may not be realized. Part of the Courthouse remodel includes space that will eventually be used for jury assembly. There are often more than 100 attendees to the jury orientation and selection events. Until this remodel is complete, this function is being held in very cramped, inadequate spaces, making it inconvenient and uncomfortable for the citizens who must volunteer for this service. A new facility with HVAC improvements should be made available as soon as possible. Complexity of Project A portion of the tenant improvements in the subject building --the fire sprinkler system --has already been awarded through a separate competitive bidding process. It will become complicated to coordinate two separate contractors and their subcontractors to work in the same space. There is a potential for "finger pointing" if there is damage or required warranty work. It will be more efficient to have the same contractor responsible for all of the work. Conclusion. The public improvement described herein is exempt from the competiive bidding requirements of ORS 279.015(1). Draft Findings for Exemption to Competitive Bidding Requirements — Courthouse Remodel