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Home My WebLink About2020-19 Approving certain findings and exempting a public improvement contract for the Japanese Garden Project2 3 El 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 RESOLUTION NO.2020-19 A RESOLUTION APPROVING CERTAIN FINDINGS AND EXEMPTING A PUBLIC IMPROVEMENT CONTRACT FOR THE JAPANESE GARDEN PROJECT FROM THE COMPETITIVE BIDDING REQUIREMENTS OF ORS 279C.335 RECITALS: A. Pursuant to Ashland Municipal Code 2.50.040.F, the City Council of the City of Ashland (City) acts as the local contract review board for the City, and in that capacity, has the authority to exempt a public improvement contract or a class of public improvement contracts from the competitive bidding requirements of ORS 279C.335(1) after approving certain findings as set forth in 279C.335(2). B. Before a local contract review board may approve the findings required by ORS 279C.335(2) and grant an exemption from the competitive bidding requirements of ORS 279C.335(1), a public hearing must be held, and notification of the public hearing must be published in at least one (1) trade newspaper of general statewide circulation a minimum of 14 days before the hearing. C. A public hearing on the City's request for an exemption from the competitive bidding requirements of ORS 279C.335(1) for the public improvement contract for the Japanese Garden Project was held on October 20, 2020. D. Notification of the public hearing was published in the Daily Journal of Commerce a minimum of 14 days before the public hearing as required by ORS 279C.335(5). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ASHLAND, OREGON, RESOLVES AS FOLLOWS: SECTION 1. The City Council, acting as the local contract review board, hereby approves the findings submitted by the City and set forth in "Exhibit A" which is attached hereto and fully incorporated herein. SECTION 2. Based upon the approved findings set forth in `Exhibit A", the City Council, acting as the local contract review board, hereby exempts the public improvement contract for the construction of the Japanese Garden Project from the competitive bidding requirement of 279C.335(1). RESOLUTION NO.2020-19 Page 1 of 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SECTION 3. This resolution is effective upon adoption. ADOPTED by the City Council this?�� day of 0 OLI-Jv" , 2020. ATTEST: Melissa Huhtala, City Recorder SIGNED and APPROVED this2j"" day ofy &1-,� , 2020. Stromberg, Mayor Reviewed as to form: elL— atri a L. Brown, Assistant City Attorney RESOLUTION NO.2020-19 Page 2 of 2 EXHIBIT A FINDINGS OF FACTS SUPPORTING AN EXEMPTION FROM THE COMPETITIVE BIDDING REQUIREMENTS FOR THE ASHLAND PARKS AND RECREATION COMMISSION JAPANESE GARDEN RENOVATION PROJECT I. The following findings in support of an exemption from the competitive bidding requirements are submitted to the local contract review board for consideration: (a) The exemption is unlikely to encourage favoritism in awarding public improvement contracts or substantially diminish competition for public improvement contracts. This project meets the criterion. Exempting the Japanese Garden contract will not encourage favoritism, due to the specialized nature and cultural importance of an authentic Japanese Garden. Very few qualified designers/contractors exist that specialize in this area of expertise. In fact, the Ashland Parks Foundation engaged the two most prominent Japanese Garden Designers in the northwest (Toru Tanaka and Hoichi Korisu) to participate in a design competition prior to selecting a designer. Toru Tanaka won that design competition based on the conceptual plan that he produced for the APF. The Ashland Parks Foundation (APF), as the grantor of this project, hired the designer and is requiring that Japanese Garden, LLC be the contractor to ensure that cultural sensitivities and accuracies are carried forward from the design through construction. (b) Awarding a public improvement contract under the exemption will likely result in substantial cost savings and other substantial benefits to the contracting agency or the state agency that seeks the exemption. In approving a finding under 279C.335(2)(b), the local contract review board shall consider the type, cost and amount of the contract and, to the extent applicable to the particular public improvement contract or class of public improvement contracts, the following: (A) How many persons are available to bid: Authentic Japanese Gardens, including their design and construction is a specialty, and as such, there are a limited number of qualified persons to bid on this type of project. As stated above, both of the qualified Japanese Garden designers in the northwest were engaged for this project, and Toru Tanaka was selected by the APF. (B) The construction budget and projected operating costs for the completed public improvement: The total for this public improvement contract is $1,380,000, which includes the current bid from the proposed contractor of $1,278,985.00. This project is being funded in total by the grant from APF, and APRC will only be contributing to the project through in -kind donations, including arborist work, excavation and Page 1 of 4: Exhibit A to Resolution No. 2020-19 demolition work and limited general labor. Budget overages in the project that cannot be covered by the grant from APF may require modification to the plan and/or phasing of the project. In addition to the cost of the construction, APRC will also be concerned with the increased cost of maintenance for the enhanced garden. Currently, the cost of maintenance and materials for the garden is estimated at $20,000 per year. APRC has budgeted to cover those expenses and will continue to do so as part of Lithia Park's expenses. It is anticipated that the cost of maintenance of the garden will increase almost four times, making the new expense for the garden between $70,000 and $80,000 per year. The donor agrees to enter into an agreement to pay up to $60,000 per year for a period of ten years toward regular maintenance costs of the Japanese Garden. In summary, expenses are expected to increase immediately upon the opening of the new Japanese Garden. Those expenses could grow from $20,000 per year to approximately $75,000 per year. With an annual donation of $60,000 per year for ten years from the Foundation, coupled with the $20,000 per year from the APRC budget. Staff is comfortable that the increase in maintenance will not cause an undue hardship on the budget. (C) Public Benefits that may result from granting the exemption: The guiding principles of this project is to create an authentic Japanese Garden that is respectful of and accurate as to Japanese history and culture. Improvements include ADA accessibility, cultural authenticity, and improvements to the garden design and experience. (D) Whether value engineering techniques may decrease the costs of the public improvement: N/A (E) The costs and availability of specialized expertise that is necessary for the public improvement: As stated above, authentic Japanese gardens, including their design and construction, are a very specialized form of garden. As such, there are a very limited number of qualified persons to bid on this type of project. (F) Any likely increases to public safety: Improving aging stone walkways will improve trip hazards. (G) Whether granting the exemption may reduce risk to the contracting agency, the state agency, or the public that are related to the public improvement: N/A Page 2 of 4: Exhibit A to Resolution No. 2020-19 (H) Whether granting the exemption will affect the sources of funding for the public improvement: The granting agency, APF, is directing that the City use Japanese Garden Specialty, LLC for the construction of this project. If this contractor is not able to be utilized, funding for the construction of this project will not be available. (I) Whether granting the exemption will better enable the contracting agency to control the impact that market conditions may have on the cost of and time necessary to complete the public improvement: N/A (J) Whether granting the exemption will better enable the contracting agency to address the size and technical complexity of the public improvement: N/A (K) Whether the public improvement involves new construction or renovates or remodels an existing structure: This project is a landscape renovation of the existing Japanese Garden in Lithia Park. This improvement project will expand the existing garden area by approximately 700 square feet while preserving historic elements. (L) Whether the public improvement will be occupied or unoccupied during construction: The Japanese Garden will be unoccupied and unavailable for public use during construction. A limited area of Lithia Park will be closed for use during construction. This area is limited to the current Japanese Garden and the immediately surrounding areas. (M) Whether the public improvement will require a single phase of construction or multiple phases of construction work to address the specific project conditions: This project is a single-phase project to end by December 31, 2022. (N) Whether the contracting agency or state agency has, or has retained under contract and will use contacting agency or state agency personnel, consultants and legal counsel that have the necessary expertise and substantial experience in alternative contracting methods to assist in the developing the alternate contacting method that the agency or state agency will use to award the public improvement contract and to help negotiate, administer and enforce the terms of the public improvement contract: The City of Ashland Legal Department staff has extensive contracting experience and is assisting in developing this alternative contact. Legal counsel, along with APRC staff, will help negotiate, administer, and enforce the terms of the resulting public improvement contact. The process for which approval is sought was also recommended by other jurisdictions when a project does not fit into the traditional competitive design/bid/build process for public improvements. Page 3 of 4: Exhibit A to Resolution No. 2020-19 II. Conclusion (a) Favoritism: Exemption the public improvement contract for the Japanese Garden from the competitive bidding requirements of ORS 279C.335(1) will not encourage favoritism, due to the specialized nature and cultural importance of an authentic Japanese Garden. Very few qualified designers/contractors exist that specialize in this area of expertise. In fact, the APF engaged the two prominent Japanese Garden Designers in the northwest (Torn Tanaka and Hoichi Korisu) to participate in a design competition prior to selecting a designer. Toru Tanaka won that design competition based on the conceptual plan that he produced for the APF. (b) Cost Savings: The Ashland Parks Foundation as the grantor of this project hired the designer and is requiring that Japanese Garden, LLC, be the contractor to ensure that cultural sensitivities and accuracies are carried from the design to the construction. This project is being grant funded by Ashland Parks Foundation. APRC will only be contributing to the project through in -kind donations, including arborist work, excavation and demolition work and limited general labor. Budget overages in the project that cannot be covered by the grant from APF may require modification to the plan and/or phasing of the project. In addition to the cost of the construction, APRC will also be concerned with the increased cost of maintenance for the enhanced garden. APF is granting an annual donation of $60,000 per year for ten (10) years from the Foundation, coupled with the $20,000 per year from the APRC budget. Staff is comfortable that the increase in maintenance will not cause an undue hardship on the budget. An exemption from competitive bidding requirements is appropriate under the facts set forth above. Page 4 of 4: Exhibit A to Resolution No. 2020-19