191027

The City of Portland ordains:

Section 1. The Council finds:

1. Oregon Department of Transportation is conducting a transportation improvement project on US 26 (Project), which is identified in the Statewide Transportation Improvement Program as Key Number 21178. 
    
2. The Project will widen US 26 (Highway) between MP 6.03 and MP 9.96 (SE 99th Avenue to eastern city limits immediately east of SE 174th Avenue). 
    
3. The Highway is a part of the state highway system under the jurisdiction and control of the Oregon Transportation Commission. All local streets intersecting the Highway are a part of the city street system under the jurisdiction and control of the City of Portland.
    
4. The Portland Water Bureau has potable water infrastructure services in the construction area that are impacted by this Project. Water pipes and services in the Project area must be moved.
    
5. The Portland Water Bureau intends to enter into a Cooperative Improvement Agreement with the Oregon Department of Transportation that establishes scopes of work and responsibility for payment.
    
6. The estimated Portland Water Bureau cost of the work in the Cooperative Improvement Agreement is $5,000,000.
    
7. Funding has been allocated in the FY 2022–23 Water Bureau Budget in the amount of $2,122,000. Funds of $2,878,000 will be requested in the FY 2023–24, FY 2024–25, and FY 2025–26 Water Bureau Budgets.

NOW, THEREFORE, the Council directs:

1. That the Portland Water Bureau Director is authorized to execute on behalf of the City a Cooperative Improvement Agreement with the Oregon Department of Transportation in a form substantially in accordance with the amendment attached as Exhibit A and subject to approval as to form by the City Attorney.
    
2. Upon receiving approval of this legislation and upon receipt of a fully executed copy of the Cooperative Improvement Agreement, the Portland Water Bureau is authorized to forward to Oregon Department of Transportation an advance deposit or irrevocable letter of credit in the amount of $5,000,000 said amount being equal to the estimated total cost for the work performed by Oregon Department of Transportation for the Non-Reimbursable Work and Betterments portion of the Project.
    
3. Amendments increasing the total compensation of the Cooperative Improvement Agreement may be agreed to and executed by the Portland Water Bureau Director for up to twenty-five percent of the total agreement amount and are subject toapproval as to form by the City Attorney's Office.
    
4. Any increase exceeding twenty-five percent of the total compensation of the Cooperative Improvement Agreement would require City Council approval.
    
5. The no-cost Memorandum of Understanding that clarifies the process for approval of change orders and for invoicing and draws on the Local Government Investment Pool (LGIP) account in relation to the Cooperative Improvement Agreement will follow and may be agreed to and executed by the Portland Water Bureau Chief Engineer and is subject to approval as to form by the City Attorney's Office.
    
6. The Mayor and Auditor are hereby authorized to draw and deliver checks chargeable to the Water Fund when demand is presented and approved by the proper authorities.

Section 2. The Council declares that an emergency exists because a delay in approving the attached Cooperative Improvement Agreement could result in a delay to the Oregon Department of Transportation’s project and a subsequent claim by Oregon Department of Transportation. This would jeopardize the ability to complete the Project per the completion date required as part of the federal funding; therefore, this Ordinance shall be in full force and effect from and after its passage by Council.