2022.03.08 CC Packet - Laserfiche WebLink

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February 22, 2022 Page 3 of 6 Council Business 1. Consider Authorization for Staff to Issue a Letter of Intent to Kraus Anderson for Construction Services on Sunny Square Park. City Manager Massopust indicated Parks and Recreation Director Fink would be presenting this item to the Council. Parks and Recreation Director Fink stated as discussed at the Council meeting on February 8 Council meeting, staff indicated that they would be bringing forward the opportunity for the City to use the Sourcewell purchasing model. This is a model that operates similar to the State Purchasing contract. Sourcewell has contracted Gordian as a third party with substantial construction experience and knowledge to facilitate the initial bidding process on behalf of Sourcewell (similar to the state soliciting bidders for contracts.) and to provide third party auditing of the process to ensure that all procurement processes have been followed. They use the best value procurement method since it allows consideration of evaluation criteria beyond simply price. Specifically, they evaluate additional criteria including responsiveness, technical qualifications, past performance and price when determining contract awards based on a best value method. Use of the best value method allows Sourcewell to jointly procure construction contracts to meet the needs of its members in Minnesota. Because of the indefinite nature of the work at the time Sourcewell solicits and awards its construction contracts, an anticipated volume is used to inform potential contractors about the contract opportunity and allows those bidding to prepare and respond with their most competitive price factors. All of this gives the City knowledge that the items in the contract have been publicly bid. As an added bonus, we are able to capitalize on that while still creating a working relationship with a Construction Manager. Staff reported members from Sourcewell, Krause-Anderson and Gordian were in attendance and had a presentation for the City Council. Dustin Phillips, Sourcewell Representative, introduced himself to the Council. He explained he has worked with multiple public entities, cities, counties and school districts on projects. He reported Sourcewell allows the City to efficiently select a contractor based on best value while utilizing fixed pricing and complying with all State bidding requirements. He reported Gordian was a company that streamlines construction procurement processes and contracts with Sourcewell to provide construction reviews and pricing audits. The different types of projects that can be bid through Sourcewell was reviewed with the Council. It was noted pricing and contracts were broken up into regions within the State. The approach taken by Sourcewell was discussed in further detail, along with projects that were recently completed by his organization. Parks and Recreation Director Fink reported the estimated budget for Sunny Square Park was $1.7 million and the tentative numbers were closer to $2.1 million. She explained to the Council that this number would be reduced because the proposed tax could be eliminated and other numbers would be brought down. Councilmember Allen asked if workers were compensated with a prevailing wage. Mr. Phillips reported this was the case and noted the City could make this a requirement within the agreement. Mayor Niedfeldt-Thomas questioned if the City could look for local vendors or women/minority businesses. Parks and Recreation Director Fink reported staff would welcome working with local contractors to be a part of the process, along with the Council setting goals for the project. Mr. Phillips reported good faith efforts could be made to target local contractors. Mayor Niedfeldt-Thomas stated she understood the value of working with contractors that knew the City but hoped the City would be able to diversify its vendors. She hoped that Sourcewell had expertise in this area. Parks and Recreation Director Fink indicated the Council would have to be thoughtful in how it sets it goals for this project and future projects with a baseline on good faith efforts. Councilmember Abdulle agreed goals should be set for this project and future projects in order to ensure the Council Business 1. Consider Authorization for Staff to Issue a Letter of Intent to Kraus Anderson for Construction Services on Sunny Square Park.