190661

Ordinance

Authorize application and accept award funds from Federal Emergency Management Agency in the amount of $1,665,000 for the Portland International Raceway Pump Station Upgrade Design Project

Passed

The City of Portland ordains:

Section 1. The Council finds:

  1. The City needs to invest in flood prevention facilities to protect public land and infrastructure.
     
  2. The Portland International Raceway (PIR) Pump Station is owned by Peninsula Drainage District #1 (PEN1), an Oregon Special District. The City owns approximately 65% of the land within the PEN1 district boundary.
     
  3. The PIR Pump Station manages stormwater from public roads, buildings, and parking lots. The Pump Station is also part of the drainage and flood protection infrastructure system under consideration by the Levee Ready Columbia Project, of which the City is a participant.
     
  4. The PIR Pump Station needs replacement, and the Federal Emergency Management Agency (FEMA) provides grants for upgrading facilities to provide resilient infrastructure for communities.
     
  5. The City, through The Bureau of Environmental Services (BES), will apply for and, if awarded, accept a grant from FEMA for $1,665,000.00
     
  6. The established cost for the planning, design and permitting of a new PIR Pump Station is $2,220,000. The level of confidence in the estimate is low. If awarded to the City, the FEMA grant will pay for 75% of the project cost. The City’s match for the grant is pending and is included as a line item of $555,000 in the general fund request for Levee Ready Columbia Drainage Districts Support beginning in FY2022‐23.
     
  7. Grant funds and tracking will be managed out of the Sewer System Operating Fund, cost center ESEN000042, in the Bureau of Environmental Services’ FY2022‐23 Proposed Budget.


NOW, THEREFORE, the Council directs:

  1. The Mayor is authorized to apply for and accept a grant from FEMA in the amount of $1,665,000.00.
     
  2. The Mayor is authorized to provide such information and assurances as are required for the grant period.
     
  3. The Office of Management & Finance Grants Management Division is authorized to perform all administrative matters in relation to the grant application, grant agreement or amendments, requests for reimbursement from the grantor, and to submit required online grant documents on the Mayor’s behalf.
     
  4. The Director of the Bureau of Environmental Services of the City of Portland is authorized to accept on behalf of the City of Portland any subsequent modifications by FEMA for the PIR Pump Station grant, provided such modifications do not increase the City of Portland’s financial obligation or risk. Any modifications that increase the City of Portland’s financial obligation or risk must be authorized by the Council.

An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)

Passed by Council

Auditor of the City of Portland
Mary Hull Caballero

Impact Statement

Budget Office Financial Impact Analysis

This ordinance authorizes the City to apply for and receive grant funds, if awarded, from FEMA. The City, through the Bureau of Environmental Services (BES), will apply for and, if awarded, accept a grant from FEMA for $1,665,000. The established cost for the planning, design, and permitting of a new PIR Pump Station is $2,220,000. The level of confidence in the estimate is low. If awarded to the City, the FEMA grant will pay for 75% of the project cost. If the City accepts the FEMA grant, it is obligated to match the grant with 25% local match funds. The City’s match of $550,000 for the grant is pending and will be requested from a set-aside in the General Fund for Levee Ready Columbia Drainage Districts Support during the FY 2022-23 Fall BMP. The grantor, FEMA, is aware that local City match is pending at the time of ordinance adoption. Grant funds and tracking will be managed out of the Sewer System Operating Fund in BES’s FY 2022‐23 budget. 

This action is of long-term financial benefit to the City. The current PIR Pump Station is owned by Peninsula Drainage District #1 (PEN1), an Oregon Special District. PEN1 operations are funded through landowner tax assessments for properties within the PEN1 boundary. Due to the assessed value of open space and the compounding effect of tax compression, the annual PEN1 budget is insufficient to fund the pump station replacement. The City of Portland owns approximately 65% of the land in PEN1. If the pump station were to fail, the responsibility for replacement would default to the City. By preparing to replace the pump station utilizing mostly grant funding, the City decreases the potential for unplanned near-term costs. Additionally, funding the planning, design, and permitting of the pump station now will assist in transferring the pump station asset to the new Urban Flood Safety and Water Quality District (UFSWQD) at the culmination of the Levee Ready Columbia project. At the point of transfer from PEN1 to the UFSWQD, the City is no longer responsible for pump station operations and maintenance. 

This action is for the planning, design, and permitting of the new, upgraded pump station. This action does not include construction, which is anticipated to be funded by UFSWQD. A full project estimate for construction has not been completed for level of confidence. The estimate for planning, design, and permitting is consistent with other pump station efforts in the drainage districts. 

If this FEMA grant application is awarded and matching funds are approved, grant funds will be appropriated through the FY 2022-23 Fall BMP. The ordinance also requires an IGA amendment between BES and Multnomah County Drainage District (MCDD). BES and MCDD have a current IGA for stormwater management, including pump station work orders. 

Document History

Item 904 Regular Agenda in December 15-16, 2021 Council Agenda

City Council

Passed to second reading

Passed to second reading December 22, 2021 at 9:30 a.m.

Item 928 Regular Agenda in December 22, 2021 Council Agenda

City Council

Passed

  • Commissioner Mingus Mapps Yea
  • Commissioner Carmen Rubio Absent
  • Commissioner Dan Ryan Yea
  • Former Commissioner Jo Ann Hardesty Yea
  • Mayor Ted Wheeler Yea

Requested Agenda Type

Regular

Date and Time Information

Requested Council Date