HomeMy WebLinkAboutAgenda Item - 2020-01-07 - Number 8.1 - Resolution 19-63Special Procurement Pavement Management Program
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
Subject: Cost comparison between consultant fees and cost to hire city staff to perform
construction management during the Pavement Management Program over the next three
years.
Meeting Date: 1/7/2020 Staff Member: Erica Rooney, City Engineer
Stefan Broadus, Asst. City Engineer
Department: Engineering
Action Required Advisory Board/Commission Recommendation ☐ Motion ☐ Approval ☐ Public Hearing ☐ Denial ☐ Ordinance ☐ None Forwarded
☒ Resolution ☒ Not Applicable ☐ Information Only Comments:
Analysis request by City Council at 12/17/19 Public
Hearing, Item 9.1
☐ Council Direction ☐ Consent Agenda
Staff Recommendation:
Discuss outcome of cost comparison, and then approve a Special Procurement of a Contract
Amendment with Murraysmith for the 2018 – 2021 Pavement Management Program.
Recommended Language for Motion: Move to approve Resolution 19-63, a Special
Procurement of a Contract Amendment with Murraysmith for the 2018 – 2021 Pavement
Management Program.
Project / Issue Relates To:
☒Council Goals/Priorities
☐Adopted Master Plan(s)
☐Not Applicable
ISSUE BEFORE COUNCIL
Cost comparison between hiring city employees for construction management services for the
Pavement Management Program for the next three years, as compared to the proposed cost
for similar services from the consultant currently managing and providing those services. Also,
8.1
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503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
staff is requesting approval of the Special Procurement of the existing contract, as was
presented at the December 17, 2019 City Council meeting.
EXECUTIVE SUMMARY
Staff’s analysis shows that consultant-provided construction management services for the
Pavement Management Program are more cost effective than hiring additional staff to perform
it in-house for this particular short-term effort.
BACKGROUND
On December 17, 2019 the City Council held a public hearing to adopt Resolution 19-63
approving a special procurement of a contract amendment to provide program management,
engineering design and construction management services for the 2018 – 2021 Pavement
Management Program.
Staff presentations were made; no parties spoke in favor or against the matter; and the public
hearing was closed. During discussion, Council requested that staff compare the construction
management costs of hiring consultants, as shown in the provided scope of work, against the
costs of hiring additional staff to perform this work in-house. The passage of Resolution 19-63
was tabled until such time as staff could provide an analysis as requested.
DISCUSSION
Murraysmith has been the consultant for the Pavement Management Program for over two
years. Recent increases in funding from HB 2017 and the local Vehicle Registration Fee have
increased the allowable funding for pavement management. Council Goals continue to reach
for a PCI of 70 throughout the city, and Council approved a budget and CIP that accommodates
for those extra funds to be directed towards more paving work.
In order to accommodate the increased effort, an amendment to the existing contract with
Murraysmith is necessary. The information provided during the December 17, 2019 City
Council identifies the necessary contracting requirements, and includes Resolution 19-63, which
allows Council to consider a special procurement approach for extending that contract directly
with Murraysmith.
Murraysmith provided a breakdown of Construction Management services from their proposed
scope and fee. The sum of the professional services estimate includes:
• $620,000 for the Wembley Park Road project,
• $500,000 for 2020 Paving,
• $300,000 for 2021 Paving, and
• $300,000 for 2022 Paving,
for a total Construction Management fee of $1,720,000. This includes a range of professionals
including Project Managers, Civil Engineers, Construction Inspectors, Geotechnical Engineers,
and Public Information Specialists.
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503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
To compare this proposal with an in-house alternative, City Staff gathered costs to replicate the
effort with new full-time hires. This cost estimate includes the expected salaries plus overhead
of the new hires as well as associated costs such as recruiting, office space, computers, vehicle
leases, and other similar costs. The total estimated cost for services comparable to the
Consultant’s proposal is about $3,533,000, of which about $3,250,000 is salary.
The largest source of discrepancy between the two costs is the seasonal variability in effort
required for Construction Management of a Pavement Management Program. Paving in the
Pacific Northwest is extremely seasonal. A significant amount of planning, design, and
procurement occurs during cold and wet months, but very little construction management.
Consultant effort for Construction Management is flexible and costs to the City correspond to
these peaks and valleys. The cost of new City staff would likely be lower during the peak
summer months, but it is constant and would far exceed the Consultant’s effort during the off
season.
Non-quantitative considerations of this analysis also include the current labor market and
future roles of the would-be hires. In recent recruitments for engineering positions, there have
been a small number of applicants. There is a reasonable chance that recruiting efforts for new
City staff would result in a less than ideal candidate and/or demand a starting salary near the
very high end of the LOMEA agreement. Also, the City would need to consider the roles of
these new hires upon the completion of 2022 cycle of the Pavement Management Program.
Given the funding projections, and other competing street fund needs, the paving program will
be scaled back considerably after this point. New hires would ideally be highly specialized in
paving and their skill sets would not necessarily transfer to similar roles in utility capital
projects. If repurposing was not a good fit, then layoffs would need to be considered. The costs
for layoffs can be considerable, including, but not limited to the potential for six months of
health care benefits. This cost has not been considered in the aforementioned calculations, but
could approach nearly $100,000.
ALTERNATIVES
There are two alternatives for Council to consider for moving the Pavement Management
Program forward for the next three years:
1. Do not extend the Murraysmith contract, and hire staff to be employed by the City for
the duration of the project.
a. This will result and a significant delay to the currently planned projects, including
foregoing upcoming summer 2020 projects, as it takes nearly six months to hire
for these types of positions.
b. This will result in a significant increase in construction management costs, as
hiring full-time staff to meet the demand is estimated to cost nearly $1.4 million
more than currently estimated to hire consultants.
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503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
c. Layoffs after the program is completed could be significant, anywhere from 4-6
people, depending on whether or not similar pre-existing City employees leave
or retire in that same time frame, creating opening(s) to absorb the newer FTE.
2. Extend the current Murraysmith contract, as detailed in Resolution 19-63.
a. This will keep all projects for 2020 and beyond on task and schedule as planned.
b. This approach allows for significant flexibility in staffing levels and expertise, and
will cost approximately half of what it would cost to hire full-time city staff of
similar expertise.
RECOMMENDATION
Approve Resolution 19-63, a resolution of the City Council of the City of Lake Oswego, acting as
the Lake Oswego Public Contracting Review Board pursuant to ORS 279A.060, approving a
special procurement of a contract amendment for program management, engineering design
and construction management services relating to the 2018 – 2021 Pavement Management
Program, and authorizing the City Manager to execute the contract amendment.
ATTACHMENTS
1. City Council Report, Item 9.1 from December 17, 2019, with attachments,
a. Resolutions 19-63, and
b. Amendment #1 to the Personal Services Contract with Murraysmith
2. Consultant vs. In-House Construction Management Cost Analysis
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
Subject: 2018 – 2021 Pavement Management Program: A Special Procurement of a Contract
Amendment for Program Management, Engineering Design and Construction Management
Services.
Meeting Date: December 17, 2019 Staff Member: Erica Rooney, PE, City Engineer
Department: Engineering
Action Required Advisory Board/Commission Recommendation ☐ Motion ☐ Approval
☒ Public Hearing ☐ Denial☐ Ordinance ☐ None Forwarded
☒ Resolution ☒ Not Applicable ☐ Information Only Comments: ☐ Council Direction☐ Consent Agenda
Staff Recommendation: Approve a Special Procurement of a Contract Amendment with
Murraysmith for the 2018 – 2021 Pavement Management Program.
Recommended Language for Motion: Move to adopt Resolution 19-63, a Resolution of the
City Council of the City of Lake Oswego, acting as the Lake Oswego Public Contracting Review
Board pursuant to ORS 279A.060, approving a special procurement of a contract amendment
to provide program management, engineering design and construction management services
for the 2018 – 2021 Pavement Management Program.
Project / Issue Relates To:
☒Council Goals/Priorities ☐Adopted Master Plan(s) ☐Not Applicable
ISSUE BEFORE COUNCIL
A request of the City Engineer to approve a special procurement of a contract amendment with
Murraysmith to provide program management, engineering design and construction
management services for the 2018 – 2021 Pavement Management Program.
Attachment 1
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503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
EXECUTIVE SUMMARY
Lake Oswego Public Contract Rule 47-0277(LO) generally requires the Public Contracting Officer
to solicit at least three competitive proposals, based upon a Request for Proposals, when a
personal services contract (including amendments to personal service contracts) is in excess of
$100,000.
BACKGROUND
On October 17, 2017, the City Council of the City of Lake Oswego awarded a multi-year
personal services contract to provide program management, engineering design, and
construction management services for the 2018 – 2021 Pavement Management Program (PMP)
pursuant to a competitive proposal process conducted in accordance with LOPCR 102-0277.
Despite advertising the solicitation in trade publications viewed regionally, only one proposal
was received. Following evaluation of the proposal received in response to the City’s
solicitation of proposals against published evaluation criteria and by an evaluation team that
consisted of City staff, the firm of Murraysmith was determined to be qualified to provide the
requested engineering services.
DISCUSSION
Since that time Murraysmith has executed all its required tasks necessary to successfully
achieve measurable improvements in the pavement condition of the City’s street network.
Projects completed or in progress include:
• Jefferson Parkway Reconstruction
• 2018 Pavement Rehabilitation Projects
• 2019 Pavement Rehabilitation Projects
• 2019 city-wide Pavement Condition Assessment and Report
• 2020 Wembley Park Road Reconstruction (design phase complete)
• 2020 Pavement Rehabilitation Projects (50% design complete)
• 2020 Preventative Maintenance Projects (50% design complete)
• 2018 – 2021 Projects Plan (update in progress)
• 2018 – 2021 Program Budget Tracking Tool
• 2018 – 2021 Program Risk Register
The scope of work required for this contract amendment builds upon the knowledge gathered
by the prior work. Although it is possible for another proposer to devote the necessary time to
acquaint itself with all of the prior and current engineering design and construction work
performed to date in order to prepare a proposal, for the reasons stated in the City’s Engineer’s
Findings, it is unlikely that another engineering firm could review the many hundreds of pages
of technical information necessary to be able to prepare a proposal on a schedule that would
not result in substantial delay of current design work in progress and planned rehabilitation and
reconstruction of roads in summer 2020.
At this juncture in the PMP, focus turns to completing planning and final designs for yet-to-be
completed phases of the PMP, and providing a full range of program management and
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503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
construction management services including contractor marketing and procurement, program
schedule management, QA/QC inspections and record keeping, reviewing and advising the City
on contractor requests for progress payments, assisting the City in defining project cash flow
requirements for financing purposes, facilitating project closeout and document archiving for
completed phases and a host of other special tasks and activities that the engineering design
and construction phases entail. At the City Engineer’s request, Murraysmith has provided a
project scope and associated “not-to-exceed” budget to provide program management,
engineering design and construction management services for the remaining three years of the
City’s PMP (through calendar year 2022). The proposed scope of services and fees has been
reviewed in detail by the City Engineer and is determined to be appropriate and comprehensive
enough to result in substantial improvements to pavement conditions city-wide. However,
because the fees associated with the contract amendment for the planned work tasks exceeds
$100,000, the City’s public contracting rules, require: 1) the Public Contracting Officer to seek
competitive proposals, or 2) seek approval for a special procurement.
ALTERNATIVES
1) Adopt Resolution 19-63, approving a special procurement of a contract amendment in
the amount of $3,800,000 with Murraysmith to continue providing program
management, engineering design and construction management services for the 2018 –
2021 Pavement Management Program; or
2) Terminate the current personal services contract with Murraysmith and direct staff to
initiate a new Request for Proposal process to solicit competitive proposals for program
management, engineering design and construction management services to complete
the remaining years of the City’s PMP.
RECOMMENDATION
Approve Resolution 19-63, a resolution of the City Council of the City of Lake Oswego, acting as
the Lake Oswego Public Contracting Review Board pursuant to ORS 279A.060, approving a
special procurement of a contract amendment for program management, engineering design
and construction management services relating to the 2018 – 2021 Pavement Management
Program, and authorizing the City Manager to execute the contract amendment.
ATTACHMENT
1. Resolution 19-63, with Exhibit A City Engineer’s Findings and Exhibit B Amendment #1 to
a Personal Services Contract with Murraysmith
Page 1 - A Resolution … Approving a Special Procurement for a Contract Amendment for
Program Management, Engineering Design and Construction Management Services for the 2018
– 2021 Pavement Management Program; and Authorizing the City Manager to Execute the
Contract Amendment.
RESOLUTION 19-63
A RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL, ACTING AS THE LAKE
OSWEGO PUBLIC CONTRACTING REVIEW BOARD PURSUANT TO ORS 279A.060,
APPROVING A SPECIAL PROCUREMENT OF A CONTRACT AMENDMENT FOR
PROGRAM MANAGEMENT, ENGINEERING DESIGN AND CONSTRUCTION
MANAGEMENT SERVICES RELATING TO THE 2018 – 2021 PAVEMENT MANAGEMENT
PROGRAM, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT
AMENDMENT
WHEREAS, the Lake Oswego Public Contract Rules (LOPCR) consist of the divisions of the
Oregon Administrative Rules (OAR) Chapter 137 listed in LOPCR 46-099(2)(“Model Rules”),
except as amended, supplemented, or deleted by LOPCR Rules;
WHEREAS, Lake Oswego Public Contract Rule 47-0277(LO) generally requires the Public
Contracting Officer to solicit at least three competitive proposals, based upon a Request for
Proposals, when a personal services contract (including amendments to personal service
contracts) are in excess of $100,000; and
WHEREAS, OAR 137-047-0285 permits the awarding authority to award a contract (or contract
amendment) as a special procurement pursuant to the requirements of ORS 279B.085:
“(4) The … local contract review board, … may approve a special procurement if
the … board, … finds that a written request submitted under subsection (2) or (3) of this
section demonstrates that the use of a special procurement as described in the request…:
(a) Is unlikely to encourage favoritism in the awarding of public contracts
or to substantially diminish competition for public contracts; and
(b)(A) Is reasonably expected to result in substantial cost savings to the
contracting agency or to the public; or
(B) Otherwise substantially promotes the public interest in a manner
that could not practicably be realized by complying with requirements that
are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or
under any rules adopted thereunder.”
WHEREAS, the City Engineer has submitted a request to consider approval of a special
procurement, together with findings (Exhibit A) that justify the use of a special procurement
under ORS 279B.085(4), to exempt engineering and construction management services for a
contract amendment for the 2018 – 2021 Pavement Management Program, from the Request for
Proposal requirement of LOPCR 47-0277(LO); and
WHEREAS, a duly noticed public hearing was held before the City Council, acting as the Lake
Oswego Public Contract Review Board, to provide interested persons an opportunity to appear
and present comment upon the special procurement request; and
ATTACHMENT 1
Page 2 - A Resolution … Approving a Special Procurement for a Contract Amendment for
Program Management, Engineering Design and Construction Management Services for the 2018
– 2021 Pavement Management Program; and Authorizing the City Manager to Execute the
Contract Amendment.
WHEREAS, the Lake Oswego City Council has fully considered the testimony and other
evidence produced at the hearing;
THE LAKE OSWEGO CITY COUNCIL, ACTING AS THE LAKE OSWEGO PUBLIC
CONTRACTING REVIEW BOARD, HEREBY ACCEPTS THE CITY ENGINEER’S
FINDINGS AND APPROVES A SPECIAL PROCUREMENT FOR ENGINEERING
SERVICES AS FOLLOWS:
The attached findings of the City Engineer in support of the request for approval of a
special procurement for program management, engineering design and construction
management services are hereby accepted and found to comply with the statutory
requirements of ORS 279B.085(4) for a special procurement.
Based upon the foregoing findings of fact, BE IT RESOLVED that :
The attached amendment (Exhibit B) to the contract with Murraysmith for Program
Management, Engineering Design and Construction Management Services Regarding the
2018 – 2021 Pavement Management Program is hereby exempted from the competitive
solicitation process pursuant to LOPCR 102-0277(4) and is approved as a special
procurement pursuant to ORS 279B.285 and OAR 137-047-0285
BE IT FURTHER RESOLVED that:
The City Manager is authorized to execute, in substantial conformity, the attached
contract amendment fourteen days following public notice of the approval of the special
procurement, pursuant to OAR 137-047-0285 and ORS 279B.400.
Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on
this 17th day of December, 2019.
AYES:
NOES:
ABSTAIN:
EXCUSED:
Kent Studebaker
Mayor
Page 3 - A Resolution … Approving a Special Procurement for a Contract Amendment for
Program Management, Engineering Design and Construction Management Services for the 2018
– 2021 Pavement Management Program; and Authorizing the City Manager to Execute the
Contract Amendment.
ATTEST:
Anne-Marie Simpson
City Recorder
APPROVED AS TO FORM:
David Powell
City Attorney
________________
Page 1 Findings In Support of a Specific Exemption From Competitive Proposal Requirements And
Authorizing A Special Procurement For Engineering Services Relating to the 2018 – 2021 Pavement
Management Program.
FINDINGS FOR A SPECIAL PROCUREMENT FOR PROGRAM MANAGEMENT, ENGINEERING DESIGN AND
CONSTRUCTION MANAGEMENT SERVICES REGARDING 2018 – 2021 PAVEMENT MANAGEMENT
PROGRAM
WHEREAS, the Lake Oswego Public Contract Rules (LOPCR) consist of the divisions of the Oregon
Administrative Rules (OAR) Chapter 137 listed in LOPCR 46-099(2)(“Model Rules”), except as amended,
supplemented, or deleted by LOPCR Rules; and
WHEREAS, Lake Oswego Public Contract Rule 47-0277(LO) generally requires the Public Contracting
Officer to solicit at least three competitive proposals, based upon a Request for Proposals, when a
personal services contract (including amendments to personal service contracts) are in excess of
$100,000; and
WHEREAS, OAR 137-047-0285 permits the awarding authority to award a contract (or contract
amendment) as a special procurement pursuant to the requirements of ORS 279B.085; and
WHEREAS, the special procurement must demonstrate that it will:
(a) Be unlikely to encourage favoritism in the awarding of public contracts or to
substantially diminish competition for public contracts; and
(b) (A) Is reasonably expected to result in substantial cost savings to the contracting
agency or to the public; or
(B) Otherwise substantially promotes the public interest in a manner that could
not practicably be realized by complying with requirements that are applicable
under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules
adopted thereunder.
NOW, THEREFORE, IN SUPPORT OF A SPECIAL PROCUREMENT FOR PROGRAM MANAGEMENT,
ENGINEERING DESIGN AND CONSTRUCTION MANAGEMENT SERVICES, THE CITY ENGINEER OF THE
CITY OF LAKE OSWEGO FINDS AS FOLLOWS:
A. Criterion: “Be unlikely to encourage favoritism in the awarding of public contracts or to
substantially diminish competition for public contracts.”
1.On October 17, 2017, the City Council of the City of Lake Oswego awarded a multi-year
personal services contract to provide program management, engineering design, and
construction management services for the 2018 – 2021 Pavement Management Program
pursuant to a competitive proposal process conducted in accordance with LOPCR 47-
0277(LO). Despite advertising the solicitation in trade publications viewed regionally, only
one proposal was received. Following evaluation of the proposal received in response to
the City’s solicitation of proposals, against published evaluation criteria and by an evaluation
team that consisted of City staff, the firm of Murraysmith was determined to be qualified to
provide the requested engineering services. This special procurement for an amendment to
add the same type of work described in the original solicitation does not result in favoritism:
there was an open solicitation for engineers to perform the work and Murraysmith was
selected based upon the open solicitation and evaluation criteria. This special procurement
Exhibit A to Resolution 19-63
________________
Page 2 Findings In Support of a Specific Exemption From Competitive Proposal Requirements And
Authorizing A Special Procurement For Engineering Services Relating to the 2018 – 2021 Pavement
Management Program.
is not for the selection of Murraysmith, it is for the continuation of the services of the
engineering firm that was selected through open solicitation and evaluation for continuation
of the work.
2. It is unlikely that award of this special procurement will diminish competition because:
a. The scope of work required for this contract amendment builds upon the knowledge
gathered by the prior work. Although it is possible for another proposer to devote
the necessary time to acquaint itself with all of the prior and current engineering
and construction work performed to date in order to prepare a proposal, it is
unlikely for the reasons set forth in the following subsections.
b. There previously was a competitive process to select an engineering firm for the
work under this contract. The original solicitation of the project required a proposer
to invest substantial time before submitting a proposal because they had to review
the City’s technical information. Only one proposal was received, from
Murraysmith. Now, for this amendment, not only would another proposer have to
review the many hundreds of pages of technical information, but extensive review
of prior engineering and construction work and familiarization with the City’s
Pavement Management Program would also be necessary to be able to prepare a
proposal.
c. The internal costs that another proposer would incur to develop an equivalent
understanding of the 2018 – 2021 pavement management program would be
considerable - likely ranging from $100,000 to $200,000 dollars.
d. Murraysmith has executed all its required tasks necessary to successfully achieve
measurable improvements in the pavement condition of the City’s street network.
Proposers would recognize that Murraysmith would also be submitting a proposal.
e. Another competitive proposal process would require firms to demonstrate equal or
better knowledge, skills and capability than Murraysmith to provide the engineering
services needed by the City for its Pavement Management Program. Other firms are
unlikely to submit proposals in part due to Murraysmith’s body of knowledge and
understanding of the City’s 2018 – 2021 Pavement Management Program.
f. The scope of this work under the requested special procurement comprising
program management, engineering design, construction observation and
management, change order and claims management services, quality
assurance/quality control services, value engineering, construction budget
monitoring and reporting and general administration services is of the same nature,
and is within the scope of the anticipated continuation of the project (Attached is a
copy of the proposed contract amendment).
A competitive proposal process has already been held (for the original solicitation of the
contract) and it is unlikely that the open solicitation seeking two additional proposers, as
required by LOPCR 47-0277, would result in a new field of qualified, interested submittals.
________________
Page 3 Findings In Support of a Specific Exemption From Competitive Proposal Requirements And
Authorizing A Special Procurement For Engineering Services Relating to the 2018 – 2021 Pavement
Management Program.
B. Criterion: “Result in substantial cost savings to the contracting agency or to the public; or”
1. Substantial staff time and cost is expended to prepare Request for Proposals solicitation
documents, associated public notices, administer solicitation period activities, select proposal
evaluation team members, evaluate responses to competitive solicitations, conduct interviews,
conduct reference checks to confirm proposer responsibility and qualifications, prepare council
reports for contract award and prepare contracts once council award is made. A two-step,
competitive proposal procurement in lieu of authorizing this special procurement could take 3-4
months to conduct and would incur staff labor and materials costs ranging from $15,000 to
$20,000. (In fact, this was the process that the City followed during the original solicitation for
Requests for Proposals for the 2018 – 2021 Pavement Management Program.
2. As noted in Part A, above, a substantial body of technical engineering work has been developed
by Murraysmith as it has performed program management, engineering design and construction
management services for the City’s pavement management program. In order to develop this
body of work, many subconsultants have been retained by Murraysmith to conduct specialized
elements of the work necessary to undertake the pavement program. Any other consultant
selected pursuant to a competitive proposal process to provide program management,
engineering design and construction management services in lieu of this special procurement,
would necessarily have to procure all notes, calculations, and any other program management,
engineering and construction management work of Murraysmith and their subconsultants and
vendors of materials and evaluate all such work, notes and calculations completed to date of
whatever nature in order to develop a thorough understanding of the technical and
management aspects of this project. A conservative estimate of the time it would take for any
consultant other than Murraysmith to develop a project understanding as comprehensive as
that of Murraysmith is six months.
3. The additional program management, engineering design and construction management services
required are a continuation of engineering tasks and analyses already conducted to date and will
use a combination of subconsultant services and Murraysmith services. The subconsultant firms
providing the needed additional services are already under contract to Murraysmith.
4. Due to the past work by Murraysmith on the 2018 – 2021 Pavement Management Program, they
(and their subconsultants) are knowledgeable and able to immediately dedicate sufficient
resources and commence the engineering and construction management work necessary to ensure
all prior and current pending work necessary to achieve the City’s pavement condition objectives is
completed by December 31, 2022.
5. Failure to immediately procure these additional program management, engineering design and
construction management services and dedicate additional staff to the project creates a high
degree of risk for delay of design and construction work-in-progress.
6. The hourly billing rates of Murraysmith staff and that of their subconsultants are within the
range of billing rates charged by other similarly sized consulting firms within the Portland
Metropolitan region as are markups on managing subconsultant contracts and administrative
costs associated with reimbursable expenses. All such costs are commensurate with the Scope
of Work developed by the City and reflect the project’s complexity and risk.
________________
Page 4 Findings In Support of a Specific Exemption From Competitive Proposal Requirements And
Authorizing A Special Procurement For Engineering Services Relating to the 2018 – 2021 Pavement
Management Program.
C. Criterion: Otherwise substantially promote the public interest in a manner that could not
practicably be realized by complying with requirements that are applicable under ORS 279B.055,
279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.
1. The request for proposals requirement for “major personal services” is not based on state law
solicitation methods (ORS 279B.055, 279B.060, 279B.065 or 279B.070), but rather by ORS
279A.070 (“(e)ach contracting agency authorized to enter into personal services contracts shall
create procedures to screen and select persons to perform personal services.”) and LOPCR 47-
0277(4)(For personal service contracts greater than $100,000, “the PCO shall solicit and shall obtain
at least three competitive proposals based on the RFP, unless three proposals are not available.”
Therefore, it is not technically possible to comply with ORS 279B.055, 279B.060, 279B.065 or
279B.070, and accordingly, it is not technically possible to “otherwise substantially promote the
public interest in a manner that could not practicably be realized by complying with requirements”
of cited state law. However, these findings look to the public interest sought to be served by the
request for proposal requirement, and the spirit of solicitation of competitive proposals under ORS
279B.060.
2. The City Engineer believes that there is a significant likelihood that there would not likely be any
additional proposers to a Request for Proposals because all potential proposers except
Murraysmith would have to undertake extensive review of the City’s Pavement Management
Program and the engineering design and construction work that has been done to date, in a
short period of time, to submit a proposal.
3. As noted above in Section A, the current engineering firm was selected through an open
solicitation and evaluation.
Page 1 – Amendment 1 to Personal Service Contract: Murraysmith – 2018 – 2021 Pavement
Management Program
CITY OF LAKE OSWEGO
Amendment No. 1 to Personal Service Contract
For Engineering Services
2018 – 2021 Pavement Management Program
This is an Amendment to the Contract by and between the City of Lake Oswego (hereinafter City), and
Murraysmith, hereinafter called "Contractor," which was previously entered into on October 20, 2017
(“Contract”); and
Whereas, the parties wish to amend the Contract to provide for a continuation of Work authorized by the
original Contract; and
Whereas, the City’s Project Manager finds pursuant to OAR 137-048-0320 that the amendment is within
the scope of the project as originally solicited and this amendment would not materially impact the field of
competition described in the original procurement document because:
a. A separate contract for the additional work would require the selected contractor for the
amendment work to accept and rely upon the original contract work performed by the
originally selected contractor without further extension of time to review or futher cost to the
City, and
b. The selected contractor for the amendment work, if different than the original contractor,
would be required to waive any defense to a claim based on the prior work by a different
contractor, and such a provision in a solicitation for the scope of work in this amendment is
not commercially acceptable, so that no additional proposers for this amendment would arise
other than the originally selected contractor.
c. The additional City Engineer’s Findings for a Special Procurement For Program Management,
Engineering Design And Construction Management Services Regarding 2018 – 2021 Pavement
Management Program are incorporated by reference.
WITNESSETH:
1. The Scope of Work is hereby amended to add the following additional Work as outlined in the
attached Exhibit 1.
2. The Payment Provisions are hereby amended to add the following to the Contract Amount, for
the additional work under this Amendment:
b. Contract Amendment Amount: Not to Exceed $3,800,000 (see Exhibit 2);
See Original Contract for contract rates for the Work under this Contract Amendment.
3. The Date of Completion is amended to December 31, 2022.
All other provisions of the Contract referenced above shall remain in full force and effect.
Exhibit B to Resolution 19-63
Page 2 – Amendment 1 to Personal Service Contract: Murraysmith – 2018 – 2021 Pavement
Management Program
MURRAYSMITH, INC.
By:__________________________________
Name:_______________________________
Title: ________________________________
Date: _________________________
CITY OF LAKE OSWEGO
_____________________________________
Martha Bennett
City Manager
Date: ______________________
Public Contracting Officer
380 A Avenue
PO Box 369
Lake Oswego, OR 97034
Date Authorized by Council:
December 17, 2019
APPROVED AS TO FORM:
_____________________________________
Evan P. Boone,
Deputy City Attorney
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 1
BACKGROUND AND SCOPE OF WORK FOR AMENDMENT 1 TO
A PERSONAL SERVICES CONTRACT FOR
2018-2021 PAVEMENT MANAGEMENT PROGRAM
CITY OF LAKE OSWEGO
Introduction/General/Background
Pursuant to a competitive, qualifications based selection process, Murraysmith was selected to
provide program management, engineering design and construction management services to the
City in support for its new Pavement Management Program (PMP). A multi-year personal services
contract between Murraysmith and the City was executed in October 2017.
Two years into the program, nearly $11 million in design and construction has been completed of
the original $21 million envisioned for the PMP as of 2017. With updated priorities, an increase in
funding, and an additional year of program work, the current program now totals nearly $44.5
million. In order to complete the remaining program management, engineering design and
construction management services, an additional $3.8 million dollars is needed.
The program and its projects are complex, multi-faceted, have a footprint across the entire City,
and require a great deal of coordination to meet program goals and the City’s “dig once” policy.
The City Council believes that a well-maintained system of roads is critical to public safety and the
quality of life for the City of Lake Oswego (City) citizens, and to that end has established a goal to
improve the overall quality and condition of its roadway system through sustained annual budget
appropriations. The City lacks sufficient internal resources to keep up with the funding strategy
and therefore requires continued assistance from the Program Manager
(Murraysmith/Consultant) to deliver the program over the next three-four years.
Scope of Work
The City’s Pavement Management Program is comprised of two distinct but related elements:
1. Pavement Preservation – The City currently uses StreetSaver, a computerized pavement
management software package to inventory, organize and compile pavement condition
information of all streets within the City, identifying the pavement condition index (PCI) for
each street. Every three years, Capitol Asset & Pavement Services, Inc. (CAPS) conducts a
visual condition assessment of all streets within the City’s urban services boundary (USB):
153 centerline miles maintained by the City and another 29 miles of streets maintained by
others (typically Clackamas Co.) but located within the USB. The inventory and condition
report is the basis for development of the annual pavement preservation program. The
most recent assessment and findings report was completed in 2019 and is available on the
City’s website.
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 2
2. Roadway Rehabilitation – The City has identified major roadways that require full
rehabilitation. These projects typically involve a significant reconstruction or overlay effort
and may include other infrastructure improvements including subsurface utility upgrades
or replacement, upgrades to meet ADA requirements and traffic management elements
that must be addressed prior to paving.
The City’s annual Capital Improvement Plan (CIP) as available on the City’s website identifies
pavement rehabilitation and preservation projects programmed through fiscal years 2022/23. The
program management scope of work is applicable through December 2022.
The individual projects comprising the remaining overall scope of work under the current PMP is
summarized in the table below:
Project Name Est. Construction Budget Est. Engineering Budget
Wembley Park Rd.
Rehabilitation Project $5,800,000 $750,000*
2020 City-wide Resurfacing,
Crack Sealing and Patching $10,000,000 $850,000*
2021 City-wide Resurfacing,
Crack Sealing and Patching $5,700,000 $1,100,000
2022 City-wide Resurfacing,
Crack Sealing and Patching $6,300,000 $1,100,000
*Project management, design, and bidding services are provided for under the original contract
amount. These two budgets are for construction phase services only.
Wembley Park Road Rehabilitation Project
Wembley Park Road has been identified for pavement rehabilitation as well as improvements to
the storm drainage and water systems within the corridor. This work involves the following
anticipated improvements to Wembley Park Road between Country Club Road and Twin Fir Road:
Pavement repairs and pavement resurfacing
Pedestrian improvements
Signage and striping
Storm drainage system improvements
Water System Replacement
Project management, design, and bidding services are provided for under the original contract
amount. Remaining services required to complete this project under the amended contract
amount include Construction Management and Construction Inspection services so the project is
constructed as intended per the design, referenced standards and specifications and include the
following:
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 3
Construction meetings
Lead coordination meetings with NW Natural during pre-construction utility relocation
phase
Lead the pre-construction conference
Lead weekly progress meetings during construction
Lead other meetings as described in the Special Provisions
Coordination & Construction Management Services
Resolve design issues, manage design changes and maintain current and accurate design
plans
Coordinate transfer of necessary survey and staking information to Construction
Contractor
Review and process daily on-site construction inspection reports
Coordinate design modifications with design team
Provide design and plan sheet revisions (assumes up to 5 design revisions)
Coordinate erosion control issues with City and Contractor
Monitor Contractor's progress and adherence to the project schedule
Process Requests for Information (RFIs), Clarifications, Work Change Directives (WCDs),
and Contract Change Orders (CCOs)
Provide EOR responses to technical RFIs and Clarifications
Review monthly invoices from the Contractor and prepare monthly pay estimates for City
throughout construction
Review Contractor Quality Control and Consultant-provided Quality Assurance test results
and maintain log of test results
Review cost proposals from Contractor and make recommendations to City
Negotiate and draft CCOs for approval by the City
Construction Inspection Services
Oversee and inspect NW Natural utility relocation efforts prior to construction
Full-time on-site inspections during active construction
Provide daily inspection reports and photographs
Provide quality assurance testing, including compaction and HMAC mix verification tests
taken at the asphalt plant
Provide arborist services to work with Contractor on tree removal and trimming operations
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 4
Provide geotechnical observation related to subgrade condition, geogrid installation, and
pavement condition in advance of patching and grinding work
Inspect ADA ramps for compliance utilizing ODOT inspection forms
Substantial Completion walk-thru and follow-up
Punch List walk-thru and follow-up
Submittal Review
Lead the review and approval of material submittals, shop drawings, mock-ups, and
substitution requests
Maintain a log that tracks each submittal from receipt through approval
Construction Phase Public Involvement
Public Involvement and communications approach through construction with assumptions
on outreach tools and timing; updated project map and flyer template
Communications tracking (shared responsibility with City staff fielding public inquiries)
Public meeting logistics and materials (if needed, up to 2 meetings - neighborhood)
Up to 2 communications in advance of major construction
Up to 2 communications during construction
Web updates on the City-provided webpage and email updates, assume monthly and then
every other week during heavy construction)
Content for use in 2 Hello LO
Additional public information materials, as appropriate, including updated doorhangers,
social media posts, or other appropriate communications
Project close-out including coordinating and leading punch-list evaluation meetings and
site visits, monitoring punch-list completion efforts by the Construction Contractor, and
issuing substantial and final completion notices
Record Drawings. Utilize Contractor and inspector-provided mark-ups and construction
documentation information to complete electronic record drawings to be delivered to the
City after project completion.
2020 City-wide Resurfacing, Crack Sealing and Patching
2020 City-wide Resurfacing, Crack Sealing and Patching includes the construction of streets
identified for pavement rehabilitation and preventative maintenance in 2020. Nineteen miles of
Street segments are being improved as derived from the ongoing 4-year Pavement Maintenance
Plan process developed for the PMP. The general focus for the pavement rehabilitation and
preventative maintenance work is the eastern portion of the City north and south of the lake
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 5
including significant work throughout the First Addition Neighborhood (FAN). This work involves
the following anticipated improvements:
Slurry seal preventative maintenance
Pavement rehabilitation
Curb ramps (approx. 85)
Relocating pedestrian push button poles, pedestrian signal heads, pedestrian push
buttons, and relocating signal junction boxes
Patching work
Signage and striping
Storm drainage system improvements
Project management, design, and bidding services are provided for under the original contract
amount. Remaining services required to complete this project under the amended contract
amount include Construction Management and Construction Inspection services so the project is
constructed as intended per the design, referenced standards and specifications and include the
following:
Construction meetings
Lead the pre-construction conference
Lead weekly progress meetings during construction
Lead other meetings as described in the Special Provisions
Coordination & Construction Management Services
Resolve design issues, manage design changes and maintain current and accurate design
plans
Coordinate transfer of necessary survey and staking information to Construction
Contractor
Review and process daily on-site construction inspection reports
Coordinate design modifications with design team
Provide design and plan sheet revisions (assumes up to 5 design revisions)
Coordinate erosion control issues with City and Contractor
Monitor Contractor's progress and adherence to the project schedule
Process Requests for Information (RFIs), Clarifications, Work Change Directives (WCDs),
and Contract Change Orders (CCOs)
Provide EOR responses to technical RFIs and Clarifications
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 6
Review monthly invoices from the Contractor and prepare monthly pay estimates for City
throughout construction
Review Contractor Quality Control and Consultant-provided Quality Assurance test results
and maintain log of test results
Review cost proposals from Contractor and make recommendations to City
Negotiate and draft CCOs for approval by the City
Construction Inspection Services
Full-time on-site inspections during active construction
Provide daily inspection reports and photographs
Provide quality assurance testing, including compaction and HMAC mix verification tests
taken at the asphalt plant
Provide arborist services to work with Contractor on tree removal and trimming operations
Provide geotechnical observation related to subgrade condition and pavement condition
in advance of patching and grinding work
Inspect ADA ramps for compliance utilizing ODOT inspection forms
Substantial Completion walk-thru and follow-up
Punch List walk-thru and follow-up
Submittal Review
Lead the review and approval of material submittals, shop drawings, mock-ups, and
substitution requests
Maintain a log that tracks each submittal from receipt through approval.
Construction Phase Public Involvement
Public Involvement and communications approach through construction with assumptions
on outreach tools and timing; updated project map and flyer template
Communications tracking (shared responsibility with City staff fielding public inquiries)
Public meeting logistics and materials (if needed, up to 2 meetings - neighborhood)
Up to 2 communications in advance of major construction
Up to 2 communications during construction
Web updates on the City-provided webpage and email updates, assume monthly and then
every other week during heavy construction)
Content for use in 2 Hello LO
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 7
Additional public information materials, as appropriate, including updated doorhangers,
social media posts, or other appropriate communications.
Project close-out including coordinating and leading punch-list evaluation meetings and
site visits, monitoring punch-list completion efforts by the Construction Contractor, and
issuing substantial and final completion notices.
Record Drawings. Utilize Contractor and inspector-provided mark-ups and construction
documentation information to complete electronic record drawings to be delivered to the
City after project completion.
2021 City-wide Resurfacing, Crack Sealing and Patching
2021 City-wide Resurfacing, Crack Sealing and Patching includes the construction of streets
identified for pavement rehabilitation and preventative maintenance in 2021. Eleven miles of
Street segments will be improved as derived from the ongoing 4-year Pavement Maintenance Plan
developed for the PMP. This work involves the following anticipated improvements:
Slurry seal preventative maintenance
Pavement rehabilitation
Curb ramps
Relocating pedestrian push button poles, pedestrian signal heads, pedestrian push
buttons, and relocating signal junction boxes.
Patching work
Signage and striping
Storm drainage system improvements
Services required to complete this project include Design, Construction Management, and
Construction Inspection services so the project is completed as intended and include the following:
Project Management
Surveying
Utility Coordination
Pavement Services
Stakeholder Outreach
50% Design
90% Design
Final Design
Traffic Signal Modifications
Bidding Services
EXHIBIT 1
2018 – 2021 Pavement Management Program – Amendment #1 Background Information and Scope of Work
Dec 2019 8
Construction Phase Services
2022 City-wide Resurfacing, Crack Sealing and Patching
2022 City-wide Resurfacing, Crack Sealing and Patching includes the construction of streets
identified for pavement rehabilitation and preventative maintenance in 2022. Twelve miles of
Street segments will be improved as derived from the ongoing 4-year Pavement Maintenance Plan
developed for the PMP. This work involves the following anticipated improvements:
Slurry seal preventative maintenance
Pavement rehabilitation
Curb ramps
Relocating pedestrian push button poles, pedestrian signal heads, pedestrian push
buttons, and relocating signal junction boxes.
Patching work
Signage and striping
Storm drainage system improvements
Services required to complete this project include Design, Construction Management, and
Construction Inspection services so the project is completed as intended and include the following:
Project Management
Surveying
Utility Coordination
Pavement Services
Stakeholder Outreach
50% Design
90% Design
Final Design
Traffic Signal Modifications
Bidding Services
Construction Phase Services
EXHIBIT 2
Professional Services Budget Summary
The following is a summary of the anticipated budget requirements for remaining program work to be completed under Amendment #1, to the
original contract executed October 17, 2017.
*Program management is included in current contract amount
Project Name
Est. Murraysmith
Budget Program
Management
Est. Murraysmith
Budget Engineering
Design
Est. Murraysmith
Budget Construction
Management
Est.
Subconsultant
Budget
Est. Total
Budget
Wembley Park Rd.
Rehabilitation Project* $0 $0 $620,000 $130,000 $750,000
2020 City-wide
Resurfacing, Crack
Sealing and Patching*
$0 $0 $800,000 $50,000 $850,000
2021 City-wide
Resurfacing, Crack
Sealing and Patching
$100,000 $450,000 $275,000 $275,000 $1,100,000
2022 City-wide
Resurfacing, Crack
Sealing and Patching
$100,000 $450,000 $275,000 $275,000 $1,100,000
ORIGINAL ESTIMATE. PLEASE SEE
REVISED AMOUNTS IN ATTACHMENT 2.
Attachment 2: Cost Benefit Analysis
Consultant vs. In‐House Construction Management for the Pavement Management Program
12/20/2019
In‐House Construction Management for 2020‐2022
Item Cost
Recruiting 43,200$
Office Space 51,900$
Vehicles & Supplies 171,000$
Loaded Salaries 3,267,200$
Total 3,533,300$
Consultant Construction Management
Project Cost
Wembley Park Road Rehabilitation 620,000$
2020 City‐Wide Resurfacing Crack Sealing & Patching 500,000$
2021 City‐Wide Resurfacing Crack Sealing & Patching 300,000$
2022 City‐Wide Resurfacing Crack Sealing & Patching 300,000$
Total 1,720,000$
Estimated Savings of Outsourcing Construction Management: 1,813,300$
Professional Services Budget Summary
The following is the anticipated budget summary for remaining program work to be completed under the amended contract amount
*Program management is included in current contract amount
Est. M u rraysmith Budget Est. Murraysmith Budget Est. Murraysmith Budget Proje ct Name Program Management Engineering Design Construction Management
Wembley Park Rd .
$0 $0 $620,000 Rehabilitation Project*
2020 City-wide Resurfac ing ,
$0 $0 $500,000 Crack Sealing and Patc hing *
2021 City-wide Resurfacing, $150,000 $500,000 $300,000 Crack Sealing and Patching
2022 City-wide Resurfacing,
$150,000 $500 ,000 $300 ,000 Crack Sealing and Patching
V3
Est. Subconsultant Est. Total Budget Budget
$130,000 $750,000
$50 ,000 $550,000
$300,000 $1,250,000
$300,000 $1,250,000
THESE AMOUNTS REFLECT THE CORRECTED
VALUES FROM THE CONSULTANT. COMPARE
TO ORIGINAL VALUES IN ATTACHMENT 1.