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191119

Label: Emergency Ordinance

*Approve findings to authorize exemption to the competitive bidding requirements and approve use of the alternative contracting method of a Construction Manager/General Contractor for the 82nd Ave Major Maintenance Project

Passed

The City of Portland ordains:                                            

Section 1.  The Council finds:

  1. The City of Portland has the responsibility of providing safe transportation routes for commerce, convenience and to adequately serve the traveling public.
  1. 82nd Avenue serves as an important street in the city of Portland for people walking, taking transit and driving. It provides access to businesses, homes and institutions. 
  1. Through HB 5006, the State of Oregon committed to $150M in funding for state of good repair and safety improvements to 82nd Avenue.
  1. On April 28, 2022, the Council approved Ordinance 190795 approving an Intergovernmental Agreement with the Oregon Department of transportation for the Jurisdictional Transfer of Portions of 82nd Avenue, acceptance of $80,000,000 in ARPA funding for improvements to 82nd Avenue with the Oregon Department of Transportation.
  1. The state’s initial contribution of $80,000,000 is American Rescue Plan Act (ARPA) funding and will be used to fund critical safety and maintenance projects, as well as planning for future phases. This funding must be obligated by December 31, 2024, and expended by December 31, 2026. 
  1. The project known as 82nd Avenue Major Maintenance (the “Project”) will make major maintenance improvements to 82nd Avenue between SE Foster Road and SE Mill Street; between NE Schuyler to NE Siskiyou streets; and at the NE Fremont intersection. The Project will pave 82nd Avenue and construct crossing and signal improvements, ADA corner ramps, transit improvements, safety improvements and tree planting.
  1. Procurement Services and PBOT recommend that the alternative contracting method of Construction Manager/General Contractor (CM/GC) be used in lieu of the low bid competitive bidding process. The successful contractor will provide input during the design process for value engineering and constructability review, will assist in developing phasing and other construction planning, and will provide the highly specialized skills required to shorten the overall duration of Project construction.
  1. The City will invite prospective contractors to submit competitive proposals in response to Request for Proposal (RFP). A selection committee will select the Contractor based on an evaluation of the proposals. The RFP process will be completed under the guidance and direction of Procurement Services and in accordance with Portland City Code 5.34.
  1. The Council is the Local Contract Review Board for the City with the authority to exempt certain public contracts from the competitive bidding requirements of ORS Chapter 279C and Portland City Code 5.34.
  1. Draft findings addressing favoritism, competition, substantial costs savings, operational, budget, financial data, public benefits, value engineering, specialized expertise, public safety, market conditions, technical complexity and funding sources recommended by the City, substantially in the attached hereto as Exhibit A, were made available and a notice of the public notice of the public hearing of this Ordinance was published fourteen (14) days in advance of this public hearing.
  1. The Bureau of Transportation has funds budgeted FY 2022/2023 for design and proposed FY 2023/2024 for design, construction, inspection and management of the project.
  1. The estimated total for the CM/GC contract is $30,000,000 to $40,000,000 (low confidence); the project is in the preliminary design stage.   

NOW, THEREFORE, the Council directs:

  1. That the Findings, as attached as Exhibit A, are hereby approved and, on that basis, the 82nd Avenue Major Maintenance Project is exempt from the competitive bidding requirements of ORS 279C.
     
  2. The Chief Procurement Officer is authorized to use a competitive Request for Proposal process to select a CM/GC contractor for the Project. Upon selection of the contractor, the Chief Procurement Officer is authorized to execute a contract for CM/GC pre-construction services during the design of the Project, provided that the contract has been approved as to form by the City Attorney.
     
  3. Upon Council’s acceptance of the Chief Procurement Officer’s report for recommending the acceptance of the Guaranteed Maximum Price from the CM/GC for the Project, the Chief Procurement Officer is authorized to execute a contract for construction of the Project, provided that the contract has been approved as to form by the City Attorney.
     
  4. The Mayor and City Auditor to draw and deliver warrants chargeable to T01183 when demand is presented and approved by the proper authority.
     
  5. As required by ORS 279C.335(2)(c), ORS 279C.355 and PCC 5.34.820, PBOT will prepare and deliver a post project evaluation to the Council on behalf of the Chief Procurement Office once the City accepts the Project as complete.

Section 2.  The Council declares that an emergency exists because preliminary engineering activities have begun and the CM/GC's participation in value engineering, constructability reviews and construction planning should occur as soon as possible in order to positively impact design and construction issues and meet the mandated timeline for Project completion by December 2026; 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

Purpose of Proposed Legislation and Background Information

  • Purpose of this ordinance is to authorize an exemption to the City’s standard low bid-build contracting process and authorize a competitive solicitation for the use of the alternative contracting method of a Construction Manager/General Contractor (CM/GC) for the 82nd Avenue Major Maintenance Project.
     
  • PBOT will issue an RFP for the CM/GC contract that will allow the City to evaluate the contractor’s proposed cost and schedule, as well as other important categories such as project team and DMWESB utilization, expertise, public notification and business impact mitigation.
     
  • The CM/GC alternative contracting method is recommended by Procurement Services and PBOT in order to meet American Rescue Plan Act (ARPA) funding deadlines; funds must be obligated by December 31, 2024 and expended by December 31, 2026.  

Financial and Budgetary Impacts

  • The estimated total for the CM/GC contract is $30,000,000 to $40,000,000 (low confidence estimate), funded primarily with American Rescue Plan Act (ARPA) Funds.
     
  • Costs for this project will be posted to PBOT Capital Project T01183, which is included in PBOT’s Adopted FY 22-23 budget and five-year CIP forecast.
     
  • The cost estimate was generated by PBOT and is a standard cost estimate.
     
  • There is no additional funding requested.

Community Impacts and Community Involvement

100% Renewable Goal

  • This action will decrease the City's total energy use by supporting and encouraging pedestrian, bicycle and transit use, and decreasing reliance on private automobiles.  
     
  • This action does not have an anticipated impact on the City's renewable energy use.

Financial and budget analysis

Analysis provided by City Budget Office

This action authorizes PBOT to issue an RFP for a Construction Manager/General Contractor for the 82nd Avenue Major Maintenance Project. The contract is estimated to be between $30 to $40 million. The project is primarily funded through ARPA funds and transfers from ODOT. Within the FY2022-23 Adopted budget, the Bureau has a total $55,250,000 in its 5-year CIP dedicated to the project.

Document History

Agenda Council action
Regular Agenda
City Council
Passed

Votes
  • Aye (5):
    • Mingus Mapps
    • Carmen Rubio
    • Ryan
    • Jo Ann Hardesty
    • Ted Wheeler

City department

Agenda Type

Regular

Date and Time Information

Meeting Date
Amount of Time Requested
10 minutes
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