191359

The City of Portland ordains:

Section 1.  The Council finds:

1. The Justice Center was created in 1983 as a public condominium with the City of Portland (“the City”) and Multnomah County (“County”) being the principal owners.  The Justice Center serves law enforcement, courts, and jailhouse/corrections functions. County’s facilities division serves as the property manager to the condominium association while the Office of Management and Finance’s Division of Asset Management is assigned responsibility for the portion of the Justice Center owned by City.
    
2. City and County desire to work together to replace the bus duct system (“Project”) at the Justice Center, which both City and County share responsibility in maintaining as a condominium common element. The Justice Center’s bus duct system is composed of incoming building electrical service, busway risers, and electrical distribution equipment, which are mostly of original construction (1981). These components are fast approaching the end of their useful life and are at risk of failure. The Project will focus primarily on replacement of the main incoming electrical service and busway risers because the failure of these components would result in a significant, if not complete, electrical outage throughout the entire building. An electrical outage at the Justice Center should be avoided at all costs due to the nature of the services provided at the Justice Center, including intake and release for Portland Police Bureau (PPB) to the Multnomah County jail system, Multnomah County’s maximum-security jail, PPB’s Central Precinct, law enforcement investigative and corrections offices, and arraignment courtrooms. These functions cannot be performed at other locations without requiring significant planning and incurring substantial costs, which makes this a time-critical Project.
    
3. County will manage the design and construction of the Project and City will reimburse County for City’s proportionate costs associated with the Project. As part of the Project planning, County determined that a route for the Project’s electrical wiring using the shaft of Elevator #2 would be a significant cost savings option and would pose less construction risks than the use of the existing utility shaft. However, use of the elevator shaft for the Project would result in permanent decommissioning of Elevator #2 for use by City. This IGA grants the permanent use of the shaft of Elevator #2 to the condominium association for use on behalf of the Project. The County has provided the City with a Project cost credit  related to Elevator #2 as part of the determination of the City’s financial obligation for the Project.
    
4. The costs of the Project shall be apportioned as follows: County is responsible for 57.91% plus the Elevator #2 Cost Credit; City is responsible for 41.34% less the Elevator #2 Cost Credit; and the owner of Unit 4 is responsible for 0.75%.
    
5. Funds are included in the FY 2023-24 Facilities Services budget.
    
6. The Project budget is estimated to be approximately $30,000,000 with funding milestones and total anticipated commitments for the Justice Center unit owners as noted in the chart below. This chart shows those amounts considered as the base scope of work for the Project, which is estimated at $25.5 million, and $4.5 million in related electrical system work that would be logical and economical to undertake concurrently with the base scope of work for the Project.
    
7. Anticipated 5-Year Cost Spread, Apportioned by Owner

8. The Office of Management and Finance recommends that an IGA with Multnomah County be approved for a total agreement value not to exceed $12,500,000, unless authorized by Council in a future budget.

NOW, THEREFORE, the Council directs:

1. The City’s Chief Administrative Officer or designee is authorized to execute an IGA with Multnomah County in the not-to-exceed amount of $12,500,000, provided the agreement is approved as to form by the City Attorney’s Office, in a form similar to Exhibit A. The City’s Chief Administrative Officer or designee is authorized to amend the terms and conditions of the IGA, provided the amendment does not substantially increase the City’s legal or financial risks. The City’s Chief Administrative Officer or designee may increase the IGA value only if City Council clearly authorizes additional funding for the Project through an approved future budget.
2. The Mayor and City Auditor are hereby authorized to execute payments to Multnomah County when demand is presented and approved by the proper authorities.

Section 2.  The Council declares that an emergency exists because it is necessary to address fire safety issues for residents; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.