Title
Resolution No. 19-19, Adopting Findings in Support of Alternative Contracting Method for the Renovation of the Oregon City Oregon City Public Works Operations Complex
Body
RECOMMENDED ACTION (Motion):
Staff recommends that the City Commission approve Resolution No. 19-19, adopting findings in support of alternative construction method Construction Manager/General Contractor method (or “CM/GC”) for the Oregon City Public Works Operations Complex.
BACKGROUND:
The Oregon City Public Works Department has been planning and budgeting for a new Operations Complex since 2004. The original plan focused on redeveloping the existing Center Street Operations Center, but it does not provide adequate space for future growth.
In June of 2018, the City acquired and identified the property, located at 13895 Fir Street, to be used for the development of a new Public Works Operations Complex. The site has approximately 4.79 acres zoned for industrial use, an existing 59,564 square foot warehouse, and 16,015 square feet of office space. While the existing site meets some of the needs of the Department, it will require extensive renovation to be suitable for municipal use for the intended purpose and to meet appropriate seismic standards.
In a typical building project, the architect completes a design for the building, an invitation to bid is sent out, contractors bid on the project, and the City is required to select the contractor with lowest responsible bid. However, state law allows for alternative contracting methods, including the Construction Manager/General Contractor method (or “CM/GC”). This method allows the contractor to join the team early on, during the design process. The CM/GC method allows public entities to accommodate the various technical challenges in a more flexible and cost-effective approach. The CM/GC method would result in cost certainties early on and potentially significant cost savings to the City through the value engineering process.
In order for a public project to use CM/GC, the City must adopt findings explaining why the City is doing so. In addition, the City must hold a Public Hearing to allow the public to review and comment on those findings. Notice of the Public Hearing was posted in the Daily Journal of Commerce on June 5, 2019, two weeks prior to the Public Hearing, and was prominently posted at the Library, City Hall, the Pool, and the Pioneer Community Center.
The attached findings describe the benefits of using the CM/GC method. Staff believes that the Public Works Operations Complex project will benefit greatly from using CM/GC. Staff recommends that the City Commission adopt Resolution 19-19, authorizing the City to use the CM/GC method for the Public Works Operations Complex.