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Home My WebLink AboutPW Essential Facilities Procurement Methodl0— ' SAN RAFAEL Agenda Item No: 5.d THE CITY WITH A M1551DN Meeting Date: October 17, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Department of Public Works Prepared by: Bill Guerin, Public Works Director City Manager Approval: File No.: TOPIC: BEST VALUE PROCUREMENT METHOD FOR ESSENTIAL FACILITIES PROJECTS SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE BEST VALUE PROCUREMENT METHOD FOR ALL THREE ESSENTIAL FACILITIES PROJECTS RECOMMENDATION: Adopt resolution authorizing the use of the Best Value procurement method for all three Essential Facilities projects (Fire Station 52, Fire Station 57, and the Public Safety Center). BACKGROUND: Measure E passed on November 5, 2013 extending for 20 years an existing 0.5% sales tax and increasing it by 0.25%. On February 3, 2014, the San Rafael City Council directed staff to set aside the revenues from the added quarter percent to begin to address our aging essential facilities, including making critical improvements to our public safety facilities in San Rafael. On July 20, 2015, the City Council unanimously approved a Facilities Strategic Plan. This plan describes Phase 1 of the Essential Facilities Strategic Plan as including three projects, namely construction of a new Public Safety Center (PSC), Fire Station 52 and Training Tower (Montecito), and Fire Station 57 (Marin Civic Center). All three projects have been approved by the Planning Commission and Design Review Board and are now moving onto the construction phase, beginning with the selection of general contractor(s). Staff intends to select one contractor to build Fire Stations 52 and 57 and another to build the Public Safety Center. The Municipal Code, Chapter 11.50, generally requires that public works projects be competitively bid under the traditional low bid design -bid -build procedure; however Section 11.50.090 provides for certain exceptions to the requirement: The City Council, after reviewing and considering the facts of a particular public works project, may waive the bidding requirements of this chapter by finding that any one or more of the following circumstances exist: FOR CITY CLERK ONLY File No.: 12-22 Council Meeting: 10/17/2016 Disposition: Resolution 14222 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 2 1. Limitations on the source or the scope and nature of the contract are such that no more than one contractor is available to meet the technical specifications and/or quality considerations of the project; 2. The work is of a highly specialized nature; 3. There would be no competitive advantage to requiring bidding for the contract; 4. The cost of the work would be significantly increased or its completion significantly delayed; 5. There exist other specific considerations justifying the waiver of the bidding requirements. Staff and the City's consultants believe that because the Essential Facilities projects are highly complex and costly projects for the construction of critical public safety infrastructure buildings serving the public's needs, it is very important to select highly qualified general contractors that have had experience in building similar essential facilities on time and within budget. In view of these special considerations, Staff is recommending that the Council waive the standard bidding requirements. Instead, Staff recommends the "best value" procurement method for all three projects. The best value method is a two-step process often used in more complex construction projects. In Step 1, any interested contractor may submit their Statement of Qualifications (SOQ) based on a Request for Qualifications (RFQ). Once the City determines which of the contractors are qualified per the RFQs' requirements those contractors will be asked to submit proposals (to include cost) for the construction work (Step 2). Assuming the City Council agrees to waive bidding and to proceed with the best value procurement method, the RFQ for Fire Stations 52 and 57 will be issued in late October 2016. The timeline for beginning construction of the Public Safety Center (PSC) is different than that for Fire Stations 52 and 57; the RFQ for the PSC is currently scheduled for issuance in spring of 2017. The RFQ will require that proposers respond to a specific set of defined criteria including the strength of project personnel, experience with similar projects, approach and organization, reference checks, safety record, and claims avoidance record. The City will establish a selection committee who will review each contractor's SOQ and rate each firm against defined criteria. The selection committee will use the results of the evaluation to create a short-list of highly qualified contractors. Only this short-list of contractors will be invited to submit a cost proposal in Step 2. The short-list of highly qualified contractors chosen in Step 1 will be provided with a set of complete construction documents in order to prepare a proposal to respond to the Request for Proposal (RFP). For Fire Stations 52 and 57, this RFP is scheduled to be issued in January 2017. The City will award a contract for the projects to the contractor(s) whose proposal is determined to be the "best value" based on the scoring criteria to be published in the RFQ. ANALYSIS: The best value procurement method will maximize the overall value and quality for the Essential Facilities projects. Alternative procurement methods other than traditional low bid design -bid - build have become increasingly popular for a variety of reasons, such as the preference of project sponsors to select contractors based on qualifications and customized experience rather than simply on the basis of the lowest bid. Alternate procurement methods can also provide opportunities to accelerate project schedules and to increase innovation and collaboration. The best value method is set forth in Public Contract Code section 10506.4 — 10. This method has been reviewed and approved by the Essential Facilities Subcommittee, and the City Attorney agrees that this method may be used so long as the City Council waives bidding pursuant to Municipal Code Section 11.50.090. This method will ensure highly qualified contractors are building the prominent Essential Facilities projects in order to produce high quality buildings on schedule and within budget. FISCAL IMPACT: No fiscal impact SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaLye: 3 OPTIONS: 1. Adopt resolution as presented waiving bidding and approving use of the best value procurement method. 2. Council may direct staff to modify the resolution. ACTION REQUIRED: Adopt the resolution. ATTACHMENTS: Resolution RESOLUTION NO. 14222 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE BEST VALUE PROCUREMENT METHOD FOR ALL THREE ESSENTIAL FACILITIES PROJECTS WHEREAS, the City of San Rafael intends to construct three new essential facilities projects, including two new fire stations and a new Public Safety Center; and WHEREAS, the City of San Rafael intends to expend considerable public resources to construct these facilities; and WHEREAS, these new facilities are complex in nature and need to be constructed to ensure they are operable during and after a significant natural or man-made hazardous event in and/or around San Rafael; and WHEREAS, these essential facilities need to be constructed of the highest quality in order to continue to function effectively decades into the future with minimal maintenance or downtime; and WHEREAS, the public safety personnel housed in the current facilities will be relocated to temporary facilities during the construction of these essential facilities and, therefore these buildings need to be constructed and in place in as short a time as is reasonably possible; and WHEREAS, the City Council's Essential Facilities Subcommittee has expressed great interest in selecting construction contractors with certain specific qualifications needed for the essential facilities projects, including: a strong team; experience with projects of similar size, complexity and quality; a well -organized and well thought out approach to delivering these projects; strong references from previous clients; a strong safety record; and a record of collaborative and litigation -free delivery of previous projects; and WHEREAS, the City of San Rafael is a Charter City under the California Constitution and, pursuant to that authority, has adopted San Rafael Municipal Code Chapter 11.50 setting forth the procedures governing the award of public works contracts within the City, such as the essential facilities buildings; and WHEREAS, under San Rafael Municipal Code Chapter 11.50, although public works contracts generally must be competitively bid and awarded to the lowest responsible bidder, Section 11.50.090 authorizes the City Council to waive these bidding requirements in certain circumstances; and WHEREAS, Staff has recommended, and the City Council finds, that the high cost, complexity, and public safety service purposes of the essential facilities projects are unusual circumstances that justify a waiver of the City's public works contract bidding requirements pursuant to San Rafael Municipal Code Section 11.50.090. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael as follows: 1. The public works contract bidding requirements contained in Chapter 11.50 of the San Rafael Municipal Code are hereby waived pursuant to San Rafael Municipal Code Section 11.50.090. 2. City Staff is hereby directed, in soliciting construction contractors for the essential services projects, to solicit and procure construction contractors utilizing the following two-step selection process to select a contractor and construction proposal that represents the best value to the City of San Rafael: a. In step one of the best value selection process, interested contractors will repond to a Request for Qualifications (RFQ) and a team of experts selected by the City will review those responses in order to create a shortlist of no more than three highly qualified contractors. b. In step two, only the selected highly qualified contractors will be provided a set of complete construction documents and invited to prepare and submit a cost proposal in response to the City's Request for Proposals (RFP) c. At the culmination of this process, the City will award a contract to the contractor whose proposal represents the "best value" based on the scoring criteria to be published in the RFQ. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on the 17th day of October, 2016, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 0%7.-g O&W ESTHER C. BEIRNE, City Clerk ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 10/17/2016 From: Bill Guerin Department: Public Works Date: 10/12/2016 Topic: BEST VALUE PROCUREMENT METHOD FOR ESSENTIAL FACILITIES PROJECTS Subject: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE BEST VALUE PROCUREMENT METHOD FOR ALL THREE ESSENTIAL FACILITIES PROJECTS Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: Staff Report APPROVALS ® Finance Director Remarks: approved -no fiscal impact -VB ® City Attorney Remarks: LG -Approved 10/12/16 with revisions to resolution. ® Author, review and accept City Attorney / Finance changes Remarks: BG -Approved ® City Manager Remarks: