Findings of Fact - Police Department Seismic Rehabilitation.pdf

Findings Of Fact For the Design Build Contracting Method Before the City Council of the City of Talent

November 18, 2026 Regarding the City of Talent Police Department Building Seismic Rehabilitation

The Project In September 2026, the City of Talent (hereafter referred to as “City”) received notice of a Seismic Rehabilitation Grant award from the Oregon Infrastructure Finance Authority of the Business Development Department for its Police Department building. Talent City Council approved acceptance of the award at the October 7, 2026 Council meeting. The total grant award is $2,152,595 an amount based on an assessment that was completed by ZCS for the grant application.

The Talent Police Department building is a single-story structure that was constructed in 1990 with an addition in 2008. Both the original structure and the addition are built similarly with bearing walls consisting of concrete block masonry units (CMU). The foundation of the building is reinforced concrete slab-on-grade with conventional continuous reinforced shallow concrete strip footings below exterior walls and spread footings at column locations. The building’s roof is plywood sheathed supported by light timber trusses that bear on reinforced CMU bearing walls and interior wood bearing walls.

The Oregon Structural Specialty Code (OSSC) classifies buildings into risk categories based on the type of building and occupancy type. The building’s risk category informs the required performance objective post retrofit. Risk categories I and II cover low risk structures. Risk category III includes school buildings that are not required to be used as emergency shelters. Risk category IV includes emergency service buildings and school buildings that are required to be designed as emergency shelters. The City’s Police Department building falls under risk category IV.

For risk category IV structures, the intent is that the building can be inspected then immediately reoccupied following a seismic event to continue to function as an emergency service. Per the grant requirements, the seismic rehabilitation will upgrade the building to meet a performance level for Life Safety and Immediate Occupancy as defined in Seismic Evaluation and Retrofit of Existing Buildings (ASCE 41-17).

Construction activities will take place within the City’s Police Department building. The seismic rehabilitation will be performed with a high degree of unknowns in the structure.

Design-Build Oregon Revised Statue (ORS) 279C.300 requires competitive bidding for construction of public improvement projects unless specifically excepted or exempted as provided under ORS 279C.335. An exemption must be supported by findings showing that an alternative contracting process is unlikely to encourage favoritism or diminish competition, and that it will result in substantial cost savings and other substantial benefits to contracting agency or the public.

The Design-Build process allows the contracting agency to select one firm to provide both design and construction services under one contract. Design-Build procurement is appropriate when the contracting agency identifies a need for the following benefits:

• Engineering design, plan preparation, value engineering, construction engineering, construction, quality control and required documentation as a fully integrated function with a single point of responsibility;

• Integrating value engineering suggestions into the design phase, with the potential of reducing Contract changes;

• Reducing the risk of design flaws, misunderstandings and conflicts inherent in construction when contractors build from designs in which they have had no opportunity for input;

• Shortening project time as some construction activities (e.g., early submittals, mobilization, subcontracting and advance work) can commence prior to completion of a "Biddable" design, or when a design solution is still not complete (as in complex or phased projects);

• Obtaining innovative design solutions through the collaboration of the Contractor and design team, which would not otherwise be possible if the Contractor had not yet been selected.

For the reasons set forth more fully below, it is recommended that a Design-Build team be selected by utilizing the competitive proposal process in accordance with ORS 279C.400 to award a contract for design and construction of the Police Department Building Seismic Rehabilitation project.

Findings Regarding Required Information ORS 279C.330(1) provides that as used in ORS 279C.350: “findings” means the justification for a contracting agency conclusion that includes, but is not limited to, information regarding: (1) Operational, budget and financial data; (2) Public benefits; (3) Value Engineering; (4) Specialized expertise required; (5) Public safety; (6) Market conditions; (7) Technical complexity; and (8) Funding sources.

The City of Talent finds that many of these criteria support the decision to use the design-build selection method best value contracting process. This request for exemption is supported by the following:

1. Operational, Budget and Financial Data The project is funded by a grant from the Oregon Infrastructure Finance Authority of the Business Development Department. The design-build process provides the City with the means to develop a scope of work and contract documents that clearly identify minimal project requirements for design and construction, with significantly lower risk of cost overruns, particularly with the use of a fixed-price contract amount where most of the risk of the unknowns will be absorbed by the design-builder. The design-build method provides The City with an opportunity to select a firm to design and construct complex projects with schedule constraints within a fixed price. The City anticipates substantial cost savings and other substantial benefits on this project by using the design-build method.

2. Public Benefits The design-build method focuses on project components that are most valuable to the City through the ability to evaluate proposers based on the specialized experience and qualifications of the proposer’s team and therefore contributes toward meeting project goals and schedule. The proposer’s technical approach will include their means and methods for efficiently designing, constructing and completing the Police Department Building Seismic Rehabilitation.

3. Value Engineering With the design-build contracting method, a guaranteed maximum price (GMP) is established, which is the price for which the design-build team will complete the design and construction of the project or project phase, minimizing risk to the City of cost over-runs. The GMP is verified by a third-party estimator to ensure fair and reasonable pricing. Other significant savings are anticipated with consideration of efficiency and benefits received from early involvement of the builder. Having the builder involved early will allow an expeditious process with the opportunity to order long lead time materials and efficient phasing of improvements, all resulting in potential time and cost savings to the City.

4. Specialized Expertise Required Using the design-build method will allow the City to select a contractor that has the necessary expertise, experience, qualifications and understanding of the project site conditions and the specific design, construction and staging methodologies to successfully complete work elements in the allotted time. The proposer’s technical proposal describing their approach to designing and constructing the project is deemed highly important in City’s selection of a contractor that provides the best value to the City and the public, ensuring the success of this project.

The City will select a team based on qualifications as they relate to the challenges of this Project, including:

a. Specialized expertise in designing and seismic rehabilitation

b. Project approach and construction cost and quality control

c. References from similar projects

5. Public Safety The selected contractor will be required to perform and stage all work necessary so that the areas within the project’s footprint can be safely occupied and used by staff and the public for the duration of the project. The relationship between the City and the contractor will ensure coordination of work within the project site, resulting in mitigation of potential safety hazards

This contracting method allows the City to consider the proposer’s experience and expertise in this type of work, sensitivity to safety, legal, and operational issues, as well as the qualifications of its project manager, and support team, appropriate to the size and complexity of this project.

6. Market Conditions The City does not anticipate any measurable difference in market conditions if this project is contracted under the traditional low bid method or the design build method. The City has reason to believe the market appears favorable for attracting in state and out of state firms that have the desired experience and expertise. Contractors have experience with alternative contracting methods in Oregon, and have become more accepting of alternative contracting processes, in particular when bidding for technically complex projects with specialized needs, ensuring adequate competition. Using the design-bid-build method for a project of this size and complexity can result in a low-bid contractor that lacks the necessary qualifications, expertise and experience, which can be at a higher risk for performance, timeliness, safety and financial issues. The design-build method will allow the City to consider the proposers’ qualifications, expertise and experience necessary to successfully deliver this high-impact project.

7. Technical Complexity Technical expertise will be required for environmental management, quality management, scheduling, estimating, staging, and design and construction services. To be successful in completing this project, the contractor must be qualified, experienced and capable of addressing the issues, goals, concerns and technical complexities of a seismic rehabilitation project.

8. Funding Sources:

As stated earlier, this project will be funded by a grant from Oregon Infrastructure Finance Authority of the Business Development Department.

Findings Addressing Competition ORS 279C.335(2)(a) requires an agency to find that: “The exemption is unlikely to encourage favoritism in awarding public improvement contracts or substantially diminish competition for public improvement contracts.”

The City finds that selecting a contractor through an exempted design-build method is unlikely to encourage favoritism in awarding public improvement contracts or substantially diminish competition for public improvement contracts. This finding is supported by the following:

1. The competition remains open to all qualifying proposers.

2. The design-build evaluation and selection process is open and impartial, competition will be obtained, and proposers will be equally evaluated based on criteria that is reflective of the significant work elements for this type of project. Selection will be made on the basis of final scores derived from the evaluation process. This method expands the grounds of competition in the evaluation process beyond price alone to include consideration of the technical qualifications and experience of key individuals and major subcontractors and technical approach for design and construction, timely completion of previous work, and past experience with similar work in order to deliver the best value project to the City of Talent.

3. A publicly advertised request for proposals process will be utilized, with public notice in the Daily Journal of Commerce and OregonBuys and disclosure of the planned alternative contracting method. Upcoming projects and delivery methods are shared in advance via the City’s website, improving awareness of upcoming opportunities and therefore encouraging competition. The contract award will be made based upon identified selection criteria, scored by a committee, and there will be an opportunity for unsuccessful proposers to protest the award.

Findings Regarding Substantial Cost Savings And Other Substantial Benefits Savings to the Project include reduced City staff resources dedicated to the Project, largely due to the single-entity contract structure which reduces procurement efforts and contract management efforts, reduced changes in work during construction, and reduced permitting costs due to early engagement which reduces the plan review efforts spent by the permitting agency.

Over the last several years, the construction industry has experienced a volatile material market with substantial lead times. The design-build team will support the Project in identifying these early and providing a cost-benefit and risk assessment to the Project team.

Having the design-build team involved early and responsible for both the design and construction will allow an expeditious process with the opportunity to order long lead time materials to avoid project delays and take advantage of early pricing, if any, and to plan for efficient phasing of improvements, all resulting in significant time and cost savings to the City.

This Project will benefit from the design-build project delivery by providing value engineering through partnership between the designer and builder during design development as well as construction.

Cost benefits during design provided with early integration of the Project team to provide direct knowledge of the construction approach, availability of materials, lead times, cost effective phasing, utility relocation strategy, permitting, and community impacts; all allowing the team to develop the most cost-efficient approach to building the Project.

In the design-build contracting method, a Guaranteed Maximum Price (GMP) is established, which is the price for which the design-build team will complete the design and construction of the project or project phase, minimizing risk to the City of cost over-runs.

Additional Considerations In approving a finding under ORS 279C.335(2)(b), the City must consider the type, cost, and amount of the contract and the following factors to the extent applicable to this particular public improvement contract:

1. How many persons are available to propose.

Other similar projects have used the design-build method with success. Initial feedback from potential proposers has been favorable.

2. The design and construction budget and the projected operating costs for the completed public improvement.

The construction budget and operating costs will not be adjusted due to the alternate bidding method; cost savings and/or maximizing value are anticipated to be identified during the remainder of design through value engineering, a shortened schedule and reduced City staff time on the project, reduction in change orders due to contractor involvement in the design, and accelerated project delivery to provide pricing security.

3. Public benefits that may result from granting the exemption.

Anticipated public benefits from overall schedule efficiency include mitigated workspace impacts, and cost savings.

Additional public benefits are anticipated from the selection process. The City will select a team based on qualifications as they relate to the particular challenges of this Project.

4. Whether value engineering techniques may decrease the cost of the public improvement.

This alternative contracting approach fosters a collaborative relationship between owner, engineer, and builder through all project phases. Under a design-build approach, one firm is responsible for both construction and design, which is intended to avoid constructability issues and allow the construction firm to provide input to find cost-effective construction solutions prior to breaking ground.

5. The cost and availability of specialized expertise that is necessary for the public improvement.

The use of the design-build contracting method is not expected to change the cost or availability of specialized expertise necessary for the Project. Availability and cost of design services are not anticipated to be impacted. Availability and cost of construction services are also not anticipated to be impacted because a competitive process will be used for subcontracted work, unless otherwise approved as provided under the General Conditions.

6. Any likely increases in public safety.

The design-build procurement method allows historical safety performance on similar projects to be considered as a selection criterion in the qualifications-based selection method. Having the design and construction firms under one contract promotes better collaboration between the contractor and designer during design resulting in increased public and City staff safety through increased vetting of construction means and methods.

7. Whether granting the exemption may reduce risks to the contracting agency or the public that are related to the public improvement.

The City reduces risk by using the qualifications-based scoring method, selecting the proposing team with the highest score for qualifications, experience, project scope, and price. The design-build method overall reduces risk by establishing a single contract for the City and the Design- Builder. The Design-Builder is responsible for both the construction team and the final design team, which establishes a partnership to develop the optimal solution to address both design and construction risks. With a single contractor responsible for oversight of construction and design, risk of design defects is mitigated, and any issues must be managed by the Design-Builder.

8. Whether granting the exemption will affect the sources of funding for the public improvement.

Funding for this project is through a Seismic Rehabilitation Grant award from the Oregon Infrastructure Finance Authority of the Business Development Department. The City has checked with the grantor and design-build is an acceptable procurement method for the project.

9. 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.

Utilizing the design-build contracting method will likely allow the City to minimize risk associated with market conditions, including by accelerating purchase of needed materials, and by reducing project schedule to provide price security of materials.

10. Whether granting the exemption will better enable the contracting agency to address the size and technical complexity of the public improvement.

As is typical of alternative contracting methods, this method allows the contracting agency to select the most qualified contractor, rather than just simply contracting with the lowest bidder.

Through the design-build procurement process, the City will select a contractor with the specialized qualifications, expertise, skills, experience and understanding that is required to successfully address the project design and construction technical complexities, safety and risks issues and completion timeframes.

11. Whether the public improvement involves new construction, or renovation or remodeling of an existing structure.

This project will provide seismic rehabilitation to the City’s Police Department Building.

12. Whether the public improvement will be occupied or unoccupied during construction.

The Police Department Building will be occupied during construction, occupying one-half the building during the first phase, and the other half of the building during the second phase.

13. Whether the public improvement will require a single phase of construction work or multiple phases of construction work to address specific project conditions.

The project will be completed in two phases, allowing occupation in one half of the building during each phase.

14. Whether the contracting agency has, or has retained under contract, and will use contracting agency personnel, consultants and legal counsel that have necessary expertise and substantial experience in alternative contracting methods to assist in developing the alternative contracting method that the contracting agency will use to award the public improvement contract and to help negotiate, administer and enforce the terms of the public improvement contract.

For this project, the City will use a Contract Manager with the experience, expertise, and knowledge necessary to develop the design-build method procurement documents and process and the Contract and to help negotiate, administer and enforce the terms of the public improvement contract.

Conclusion of Findings of Fact Findings have been developed in compliance with ORS 279C.330, 279C.335(2) and 279C.335(4) and 279C.350, applying the criteria required by ORS 279C.330 and 279C.335(2), and the additional considerations under ORS 279C.335(2)(b). Based upon these findings and the following conclusions, the City has determined that an exemption from competitive bidding requirements is justified for the described public improvement contract:

1. Following the described selection process, an exemption is unlikely to encourage favoritism in the awarding of public improvement contracts or substantially diminish competition for public improvement contracts; and

2. Award of a public improvement contract pursuant to the exemption will likely result in substantial cost savings and other substantial benefits to the City and the public.