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
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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