Item 6: PH on Exemption from Competitive Bidding for East Broadway Projects

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RESOLUTION NO. ______ Exhibit 1: Exemption from Competitive Selection - Findings The City wishes to execute the DDA on or before June 30, 2006. In order to proceed with the direct procurement of B&H’s developer-related services and authorize B&H to directly select LCL as the general contractor for the Parking Project, the City must consider and adopt certain findings and grant exemptions from the competitive selection process. The City may grant an exemption upon finding that a direct procurement (i) is unlikely to encourage favoritism or substantially diminish competition; (ii) is likely to result in substantial cost savings for the City or the public; and (iii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the competitive selection process. ORS 279B.085, ORS 279C.335, EC 2.1425, and City of Eugene Public Contract Administrative Rule R-1415, subsection 3.1.1. 1.The exemption of the personal services contract, the DDA, is unlikely to encourage favoritism or substantially diminish competition because of the unique nature of the East Broadway Development Projects and the conceptual plans and designs proposed by B&H. Even if the City were to use a competitive selection process, it is unlikely that other proposers would be able to provide a similar plan for development of the area because of B&H’s ownership and control of the majority of the site targeted for development, existing contracts with Whole Foods and the Credit Union and B&H’s unique plans for and familiarity with the entire development site. Similarly, authorizing B&H to directly select LCL as the general contractor for the Parking Project, including the Parking Facility, is unlikely to encourage favoritism or substantially diminish competition because of LCL’s existing relationship with B&H and its existing familiarity with both projects. If the exemption is granted, B&H and LCL shall comply with all state and local laws relating to the development of the Parking Project as a public improvement and a public work. 2.The exemption of the personal services contract (the DDA) which includes authorization for B&H to directly select LCL as the general contractor for the Parking Project, is likely to result in substantial cost savings for the City. The City will be able to benefit from the efficiencies resulting from the familiarity of both B&H and LCL with the project site. The City is likely to benefit from the avoided time delays and costs associated with first a competitive selection process and then ramp-up time. As stated above, because of the unique characteristics of B&H, the City would not have the opportunity to participate in the development of the Parking Project absent B&H’s involvement. If the City does not allow for an exemption from competitive selection for a general contractor, the current pricing for the Parking Project, including the Parking Facility, will increase. The following additional information in support of the cost-savings findings is provided in conjunction with the requirements of ORS 279C.330: a.Operational, budget and financial data – Because of the unique nature of the East Broadway Development Projects, including B&H’s ownership of the majority of the Whole Foods Project property and LCL’s role as general contractor for the construction of the Whole Foods Project and the Parking Project, the City is obtaining needed parking spaces within the downtown area at a lower cost than it would be able to obtain the parking spaces otherwise. b.Value engineering – LCL has already been involved in studying the different aspects of the Parking Project, including determining the price and value of the L:\CMO\2006 Council Agendas\M060313\S0603137.doc