minhead.gif (11357 bytes)APPROVED Approved 1/5/00

September 29, 1999

HOUSING AUTHORITY AND COMMUNITY SERVICES AGENCY

Harris Hall Main Floor - 9:00 a.m.

Commissioner Bobby Green, Sr., presided with Commissioners Bill Dwyer, Anna Morrison, Peter Sorenson and Cindy Weeldreyer present. County Administrator Bill Van Vactor, Assistant County Counsel Stephen Vorhes and Recording Secretary Melissa Zimmer were also present.

1.   PUBLIC COMMENTS

Greg Vik, 2023 Kimberly Dr., Eugene, stated he is the President of Vik Construction Company. He said that Vik Construction Company protested the HACSA selection committee’s recommendation for selection of a CMGC (Construction Manager General Contractor) for the Sheldon Village Apartment Project. He said they are protesting because of the combination of poor judgment and selection structure that had made the Sheldon Village contractor selection unfair. He said because it is unfair, it is their understanding that the Board of Commissioners is responsible for evaluating protests. He noted under agency rules, in order to appeal recommendation of the award committee, their appeal should fit into the prescribed criteria. He said one of the criteria is based on the evaluation committee unfairly applying the evaluation criteria to a proposal and that is the basis of their protest. He added they are seeking to have the Sheldon Village selection process completed and interviews required from all three competing firms before final selection is made. He said having interviews ensures selection of a firm that will provide maximum quality at minimum cost to the owner, by way of clear understanding of the capabilities and ideas of the firms. He said they believe that the proposals were misjudged or mis-structured. He said items 1 and 2 in the RFP dealt with experience of the firms. He added the Sheldon Village committee scored the same experience in two of the categories, experience with multifamily residential construction and experience with low income housing. He said half of the total selection points were loaded into two non-qualitative categories. He noted they had completed four large multi-family housing projects within the past three years and it didn’t compute with his experience and performance record. He added their performance record is nearly perfect for hundreds of major projects over the past 20 years. He said Sheldon Village is a large project but no consideration was given to firms with experience in construction of projects of $5 million or over. He noted from their view of the scoring sheets that the selection committee had them with lesser points than either of the other respondents. He said they protest that and it is confirmation that the process is flawed if the selection committee cannot see Vik’s substantial conceptual costing, value analysis, life cycle costing experience and abilities that are superior in each regard to their competition and can be an asset for the Sheldon Village project. He added the highest ranked firm proposed a fee about $45,000 more expensive than the two other respondents, including themselves. He said the highest ranked firm has been awarded four or five of the last seven CMCG awards from HACSA, and that raises the question about other capable firms being able to compete fairly with this firm. He noted in their 52 years of business in Lane County, they had been involved in protests only two or three times. He said if they are not given a fair selection process that takes fully into account their superb performance record and services, they think that they will not have a chance. He requested the Board’s careful consideration.

2.    REGULAR BUSINESS

a.    ORDER 99-9-29-1H Approving Policy Changes and New Admissions Procedures.

Don Williams, HACSA, reported that in October of last year, the federal government passed new legislation that mandates a great deal of change for housing authorities. He said they have taken a difficult situation to try to come up with new policies and procedures that they believe meet the minimum of HUD’s requirements and balance the needs of the constituents. He noted their statement of polices and procedures are close to 100 pages and the highlights point out those matters that have the greatest change and controversy.

Sorenson asked what the deadline was to expand the HACSA’s Board from the existing state mandated six or seven person board, under the federal law that overrides the existing state law.

Chris Todis, HACSA, responded the law states January 3, 2000, but it is unclear state by state whether they would require one or two depending on state law. He said state law in Oregon would have to be changed. He added they will know in November.

Green asked about a disbursement policy for ghettos.

Williams stated there is no quantitative published information from HUD as to what constitutes a concentration of poverty. He added HUD’s requirement says that each housing authority shall study all of other projects to see if they have concentrations of poverty. He said if they determine that they do, they shall deconcentrate those concentrations of poverty by offering incentives for low income people to change the socio-economic standards of that complex. He said they believe they do not have any concentrations of poverty in Eugene. He added they had a deconcentration policy to begin with. He said most of the areas the projects are in are located in nicer areas. He noted that HUD’s belief is that it would be good for people in public housing to see people go to work and they think it is important as well. He added that 90% of the people in households in public housing are going to work.

MOTION: to approve ORDER 99-9-29-1H.

Morrison MOVED, Weeldreyer SECONDED.

VOTE: 5-0.

b.    ORDER 99-9-29-2H Adopting the 1999/2000 Budget and Making Appropriations.

Larry Abel, HACSA, reported they are waiting for Congress to approve a budget. He said their budget was prepared under the most conservative scenario. He said they will still come out with a balanced budget.

Green asked about facility needs.

Van Vactor responded that after the Department of Youth Services moves out of the existing Skipworth site, they will remodel the Skipworth site and have Mental Health move in. He added as an interim measure, the Pathways Program will be moving and the department director of Health and Human Services was told that site would become available, to help alleviate the space needs. He said he hadn’t received a reply.

Morrison said her concern was the increase in the number of employees over the period of time. She said with the Family Support Sufficiency Program she was concerned as they only have a 50% return on this first group of people going through the program to try to develop an escrow account to go out on their own. She requested the number of people who went into the program and came for the years 1994 and 1995.

MOTION: to approve 99-9-29-2H.

Weeldreyer MOVED, Morrison SECONDED.

VOTE: 5-0.

c.    ORDER 99-9-29-3H Authorizing an Agreement for Construction Manager/General Contractor Services with Meili Construction for the Sheldon Village Housing Development Project.

Jim McCoy, HACSA, reported they came to the Board for authorization to apply to the state for subsidies necessary to build a portion of Sheldon Village, an affordable housing development in North Eugene. He noted it is a city land bank site and is a project coming through the Intergovernmental Housing Policy Board. He added that HACSA was selected to develop the parcel and part of the development included going to the state for the subsidies. He noted that application was submitted in February 1999, and they were not funded and are waiting to hear from the state, if the financial package is complete. He stated they are being forced to wait. He said they want to meet the deadlines that will come into place if they are funded. He said it was important to have their construction manager and contractor in place.

McCoy reported that in June there was a request for proposals for CMGC services and they received three written proposals that were submitted to an evaluation committee. He noted they were aware that this had a potential of being controversial because in the past they had received a lot of good proposals. He said the scoring summaries in the board order show the results of the evaluations. He disagreed with the public testimony that the evaluations were not based solely on the written materials, they also spent time calling references and looking at different projects. He said in their review, there is a fair amount of consistency between the committee evaluation process and it was understandable that a competitor would disagree with their ratings. He said in his opinion, it was a fair and unbiased evaluation process.

Weeldreyer asked if the points that Greg Vik made were reflected in the application that was reviewed on the years of experience.

McCoy responded the criteria were qualifications of personnel. He noted on that item, the information was what they had in written form.

Green asked how often HACSA awarded contracts without an interview of the applicant with this sizeable amount of money.

McCoy replied only once every two or three years. He added last time they did not hold interviews either and it was a vote of the committee. He said the committee thought the information that they had was sufficient.

Todis added he reviewed the applications and there was an element of subjectivity. He said he looks for fairness and objectivity in his review and his conclusion was to go with Miele, as it was the choice of all four voters. He said Vik Construction was not number two on all of the others, it was split with another company.

McCoy stated the CMGC process is not inviting a general contractor only, that equally important is the ability to serve as a member of the development team. He said in his opinion, this was a fair process.

Todis stated that legally there was a time and place for Vik Construction to appeal the type of criteria and it didn’t happen. He added the process was fair, as there were outside people reviewing it.

Dwyer asked if any written comments were received from contractors about the process and the limit of competition.

McCoy responded they didn’t receive any.

Dwyer asked Vik why he didn’t protest or make his presentation when it was appropriate.

Vik said they want to be positive influences on everything they do and they think that protests are negative. He said because of the subjective decision making that goes on, they don’t want to be known as a contractor that causes trouble. He said if they would have had an interview, they could have shown that their performance records and service would have unseated their original choice.

Dwyer noted that deadlines for comment are in the contract for a reason. He added if he would have commented on this earlier and they would have had that as part of this packet, they would have been able to use it to deliberate. He suggested to "white out" the name of the company and look at the criteria more objectively.

Green agreed it was a good suggestion to "white out" the names in the future and to go by the information provided. He noted the contract said that interviews may be held and Vik raised a good issue. He suggested instead of putting in "may" in the contract, to possibly put in "shall" and it needs to be looked at with regard to interviews. He added in the interview process, most companies could sell them more on the project and more could be learned in an interview. He said the process was fair in this regard.

Dwyer suggested for the future to state "will" have an interview process in the future and the names of the companies need to be blocked out so there can be objective criteria. He added the interview needs to be given a point value as it gives discretion and the rest of the criteria should not be subjective, it needs to be fair to everyone.

Morrison asked where the dollars would come from to cover the cost. She said it looked like they took the highest bid. She said the project keeps growing and for square footage costs, a one bedroom unit is at $177 a square foot and a two bedroom is at $128 a square foot. She said if Lane County is interested in providing affordable housing these may not be the best avenues to pursue to get dollars. She thinks the process has flaws and she wouldn’t hire anyone without an interview. She added she does not agree with the low income piece for 20 points, as construction is construction. She said she had watched other low income housing developments go up and they are no different than any other project.

Todis disagreed with Morrison. He said he has to administer the programs. He added it is expensive to do affordable housing programs and guarantee low rents.

Green supported going forward with this.

MOTION: to approve ORDER 99-9-29-3H.

Green MOVED, Weeldreyer SECONDED.

VOTE 4-1 (Morrison dissenting.)

3.    CONSENT CALENDAR

a.    Approval of Minutes: November 25, 1997, 9:00 a.m.

b.    RESOLUTION AND ORDER 99-9-29-4H/In the Matter of Adopting and Ratifying a Two Percent (2%) Cost of Living Adjustment (COLA) for all Eligible HACSA Bargaining Unit (AFSCME Local 3267) Personnel and Approving a Two Percent (2%) COLA for all HACSA Excluded Personnel.

MOTION: to approve the Consent Calendar.

Dwyer MOVED, Morrison SECONDED.

VOTE: 5-0.

4.    EXECUTIVE SESSION as per ORS 192.660

None.

There being no further business, Commissioner Green adjourned the meeting at 10:15 a.m.

Melissa Zimmer
Recording Secretary

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