As a component of the development of The Square mixed use project, the Developer and the City have agreed that a through road connecting Old Decatur and Saginaw Boulevard, should be constructed by the Developer and dedicated to the City.  In addition, in order to incentivize the development and the construction of the through road, the City will consider an incentive payment of two million dollars, with one and a one-half million of that amount tied specifically to the construction and dedication of the road.  Because more than 30% of the road construction cost will be funded by public dollars, certain procurement rules will apply.

Section 212.071 of the Texas Local Government Code requires that a contract to construct public improvements comply with the competitive bidding requirements of Chapter 252 of the Local Government Code in instances where the City participates in the cost of the improvements in excess of 30% of the total cost. Chapter 252 of the Local Government Code requires that this project be competitively bid since the cost of the project exceeds $50,000.  However, section 252.022 (d) provides that if the City Council “determines that a method described by Chapter 2269, Government Code, provides a better value,” the contract is not required to be bid or awarded in accordance with the traditional competitive bidding process. 

The resolution before you will allow the through road to be advertised and awarded in accordance with the “best value” method set forth in Chapter 2269, Government Code.  In addition, that the “Competitive Bidding Method” method be used for this project, under Subchapter C of Chapter 2269, Government Code.  This method requires the project to be awarded to the lowest responsible bidder who provides the best value to the City.   Best value may include consideration of multiple factors, including:

(1)        the price;

(2)        the offeror's experience and reputation;

(3)        the quality of the offeror's goods or services;

(4)        the impact on the ability of the governmental entity to comply with rules relating to historically underutilized businesses;

(5)        the offeror's safety record;

(6)        the offeror's proposed personnel;

(7)        whether the offeror's financial capability is appropriate to the size and scope of the project; and

(Tex. Gov’t Code § 2269.055 (a).)

In addition, Section 2269.053 (a) authorizes the City Council to delegate “its authority under this chapter regarding an action authorized or required by this chapter to a designated representative, committee, or other person.”  (Emphasis added.)  In this case, it is recommended that the Council adopt a resolution designating the Developer’s representative to perform the notice, bidding, and bid award of the construction of the through road.  The request for proposals must include “the limits of the delegation, and the name or title of each person designated.”  (Tex. Gov’t Code §2269.053 (b).)

For more information on the requirements of bid publications and those sections of the Texas Government Code that further regulate the bidding process, please see the attached memo from City Attorney Bryn Meredith.

Move to approve Resolution 2019-13 of the City of Saginaw, Texas, finding that the “Competitive Bidding Method” under Subchapter 2269 of the Texas Government Code is the delivery method that provides the best value for the City for purposes of constructing a through road connecting Old Decatur Road and Saginaw Boulevard as a part of The Square mixed-use development; delegating its authority under Chapter 2269 regarding an action authorized or required by that chapter and for purposes of the through road project only to Farooq Wazirali; and providing an effective date.