190745

Emergency Ordinance

*Authorize contract with Stellar J Corporation for SW Upper Hall St & SW College Landslide Abate for $2,034,975 (Bid No. 00001760)

Passed

The City of Portland ordains:

Section 1.  The Council finds:

  1. The Portland Bureau of Transportation (PBOT) is responsible for the operation and maintenance of public transportation and infrastructure.
  2. The SW Upper Hall St & SW College Landslide Abate Project is required to replace a significantly storm-damaged dry-stack stone retaining wall and to stabilize a slope which failed due to a landslide. The dry-stack stone retaining wall near 1429 SW College Street directly supports public traffic. The wall currently presents a hazard to public safety, as it continues to dislodge structural stones and bulge outward at this tallest point. The Project will replace the wall with a modern micro-pile and reinforced concrete wall, capable of resisting pressures conveyed on it by future storm events.
  3. A moderate landslide in the public right-of-way was precipitated by heavy rains in February of 2017 near 1518 SW Upper Hall Street. After the site was temporarily stabilized by PBOT maintenance crews, PBOT proceeded with the development of a long-term stabilization solution. The Project will provide the needed long-term stabilization of the landslide through the construction of a new soldier pile retaining wall.
  4. PBOT seeks Council’s authorization for Procurement Services to execute a contract for the SW Upper Hall St & SW College Landslide Abatement.
  5. In accordance with Portland City Code Chapter 5.34.020, the Chief Procurement Officer is authorized to solicit bids estimated not to exceed $1,000,000, and the Engineer’s Estimate for this Project was $877,011. Bids were solicited and the lowest responsive bid is from Stellar J Corporation in the amount of $2,034,975. PBOT conducted a bid analysis and determined the bidder was 132% over the Engineer’s Estimate due to the high labor demand currently prevailing within the commercial construction market, and the specialized nature of project completion.  The City issued the Notice of Intent to Award a Contract to Stellar J Corporation on February 4, 2022, and no protests were received.
  6. The City’s equity in contracting aspirational goal of 20% of the hard construction costs for subcontractor and supplier utilization of firms certified by the State’s Certification Office for Business Inclusion and Diversity (COBID) applies to this project. Stellar J Corporation has committed to subcontract 44.94% to COBID Certified firms as follows:

Subcontractor

Certification

Area of Work

Ownership

Amount

Andersen Mechanical

MBE

Plumbing

Hispanic/Male

$3000.00

PLI Systems, Inc.

MBE

Drilled Shaft/Micro Piling

Hispanic/Male

$899,195.00

Andersons Erosion Control

WBE

Landscaping

White/Female

$3,900.00

Cutter Construction

WBE

Trucking

White/Female

$5,000.00

Kirk St. Clair Welding & Fabrication

ESB

Welding

White/Male

$3,500.00

Total

$914,595.00

Stellar J Corporation acting as the prime contractor intends to contract 1.75% to the following non-certified firms:

Subcontractor

Area of Work

Amount

Dirt & Aggregate Interchange

Guardrail Construction

$16,916.00

Eastside Paving

Asphalt Paving

$4,800.00

Ralph’s Concrete Pumping

Concrete Pumping

$5,580.00

S and S Rebar

Rebar Installation

$8,400.00

Total

$35,696.00

     7. Stellar J Corporation has a current City of Portland Business Tax Registration and is in Full Compliance with the contracting requirements.  Stellar J   Corporation is located in Woodland, Washington and is a not a State Certified COBID contractor.    

     8. This estimate construction cost for this contract is $2,034,975, with funds available in the PBOT FY 22/23 budget.   

NOW, THEREFORE, the Council directs:

  1. Chief Procurement Officer is authorized to execute a contract with Stellar J Corporation for a sum of $2,034,975 for the SW Upper Hall St & SW College Landslide Abatement.
  2. Mayor and City Auditor are hereby authorized to draw and deliver checks chargeable to PBOT project T00678 Fiscal Year 22/23 funds when demand is presented and approved by the proper authorities.

SECTION 2.  The Council declares an emergency exists because this project has a time sensitive work window for construction and needs to be constructed immediately to abate the risk of future landslides; therefore, this ordinance shall be in full force and effect from and after its passage 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

The purpose of this legislation is to authorize the Chief Procurement Officer to execute a construction contract for the SW Upper Hall St & SW College Landslide Abate for $2,034,975. The engineer’s estimate for this project was $877,011. Based on bids received, PBOT anticipates the construction contract cost to be $2,034,975 which is 132% over the engineer’s estimate. 

This project will replace a significantly storm-damaged dry-stack stone retaining wall and to stabilize a slope which failed due to a landslide.  The resulting landslide on SW Upper Hall Street caused debris to slide into the street and undercut a section of private property. The site was seeded to provide temporary erosion control, but the continued instability at the site is a risk to the slope in the right-of-way and to the existing property.

The low bidder's proposal was determined to be over the Engineer’s Estimate due to prevailing wage labor demand within the commercial construction market and the highly specialized nature of the work. Further, building contractors and construction materials are in high demand in the Portland market.  These combined forces are resulting in higher prices for labor, equipment, and materials.

PBOT has identified some funding for this project in its FY 2022-23 budget. PBOT allocated $423,000 of General Transportation Revenue (GTR) to support planning and design. Additionally, PBOT requested FY 2022-23 capital set-aside resources through a decision package to cover construction costs. Should FY 2022-23 capital set-aside budget resources not be allocated to the project, then PBOT would need to use internal resources. Given that the bureau does not have additional GTR in its five-year forecast, these additional project costs would be added to the bureau's five-year deficit and likely incorporated in future balancing decisions which could manifest in reductions to other bureau programs and projects.

Agenda Items

202 Regular Agenda in March 16, 2022 Council Agenda

Passed

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

Introduced by

Requested Agenda Type

Regular

Date and Time Information

Requested Council Date
Time Requested
10 mins