Stabilization center contract goes to Portland company, despite local objections

The Lane County Board of Commissioners on Tuesday, July 14, unanimously approved a construction contract with a Portland-based company to build the county’s planned stabilization center in Springfield.

Two local contractors expressed concerns about the county’s use of an alternative contracting method and choice of an out-of-town construction company. Commissioners acknowledged the concerns and said they want to discuss them further while also stressing the urgency of the project.

“Not to be hyperbolic or overly dramatic, but literally people are dying every day that we delay this project,” said Commissioner Laurie Trieger. 

The county issued a request for proposals in May to construct the stabilization center, which would provide emergency care to people in behavioral health crises. The proposed site is adjacent to the site of a behavioral health hospital PeaceHealth is planning to build about a mile from its Sacred Heart Medical Center at RiverBend.

Ten companies submitted proposals and an evaluation team, consisting of county staff and a representative from the future facility operator, evaluated the proposals, ultimately choosing Pence Contractors.

“Pence has the best mix of proposed fee and qualified experience,” said Shawn Hubbell, the county’s procurement manager. 

The county used an alternative contracting method known as construction manager/general contractor, which allows the general contractor to have input while an architect is designing the project. The board previously approved the alternative contracting method for this project. 

The contract will be in two phases, Hubbell said. Pre-construction work is estimated to be $100,000, which is what the current contract is for. The contractor will then provide a guaranteed maximum price for the actual construction of the facility, and county staff will return to the board for approval.

The process differs from the standard design-bid-build process, during which a public entity commissions an architect or engineer to create a design, then solicits competitive bids from contractors to build it and awards contracts to the lowest responsive and responsible bidder.

“I feel it’s a very unfair use of it because it does not pick a contractor on his skill or ability,” said Shaun Hyland, president of John Hyland Construction. “It picks on how well we write and things we say that make the people reviewing them happy.”

He recommended the board cancel the construction manager/general contractor process, finish the architect drawings and put the project out to bid. 

“There’s a lot of general contractors in our area that are capable, qualified and hungry to do this job,” Hyland said.

Jerry Valencia, owner of Bridgeway Contracting, said the process does not give the contractor incentive to show where they’re going to save the county money. 

“And at the end of the day, we’re not keeping that money recycled in our community,” he said.

Commissioners acknowledged local builders’ frustrations, and Hubbell suggested the county host an open house with local contractors to discuss the two contracting methods.

Hubbell said the construction manager/general contractor model is known for delivering a more accurate cost estimate, because the contractor is involved in the design process. 

Getting a contractor on board now will benefit the project in several ways, said David Ward, the county’s capital planning and facilities manager.

“As we know, we’ve had a lot of different challenges in the project,” he said. “It’s not as linear as a lot of projects would like.”

He said the county is awaiting annexation approval from the city of Springfield, which he said is “anticipated the first week in September.”

“And so what we’re trying to do right now is leverage the project team to the best of our ability at the best cost and price point to ensure that at the point of when we receive annexation, that we’re prepared to hit the ground running with the project,” Ward said. 

The Springfield City Council last month voted not to move forward with a construction contract with a California company for City Hall repairs after receiving similar feedback from local contractors. 

County will work with consultant on indoor sports facility

Commissioners also approved a $168,000 contract with a Florida-based company for a feasibility analysis of an indoor multiuse sports facility. 

The county will split the cost of the contract with Travel Lane County, which is advocating for the facility to boost winter tourism and increase overnight travel with regional sports tournaments. The facility could also potentially serve as an event space and emergency shelter during a natural disaster, said Jason Harris, the county’s community and economic development manager.

The cost of the contract with Sports Facilities Advisory is “significantly” less than the $450,000 price staff had estimated, Harris said. 

The county administrator may amend the contract with Sports Facilities Advisory up to $218,000, if needed. In that case, the county’s share of the contract cost would be $109,000, which will be paid for with transient lodging tax funding. The county increased its hotel lodging tax by 2% in 2023 to generate funding for tourism facilities.

Commissioners previously gave staff the green light to partner on the study with Travel Lane County, an organization whose mission is to increase overnight travel to support the economy.

County staff worked with Travel Lane County to develop a request for proposals for a consultant, which it issued in May. Officials received five proposals and chose Sports Facilities Advisory “based upon their advisory services, their competitive cost, as well as their local experience and familiarity,” Harris said.

The study is expected to take six months and will evaluate three sites being considered for the facility. Those include reusing the former Royal Caribbean building off Gateway Street in northwest Springfield, repurposing a Petersen-Arne distribution center on West Fifth Avenue in Eugene or new construction at the Lane Events Center.

The consultant will also analyze funding options, as well as facility ownership and operational responsibilities.

Trieger asked how this study differs from previous ones completed by Travel Lane County. Harris said previous analyses were high-level and evaluated whether there was a competitive opportunity in the region for an indoor sports facility. 

“This is going at a much deeper level of technical analysis,” he said, which will include evaluating how each site would be financed, developed and operated. 

Harris said staff will brief the board throughout the process.