*Amend Intergovernmental Agreement with the State of Oregon Department of Transportation for the Interstate 5 Rose Quarter Project for planning, design services and permitting (amend Contract 30008180)
The City of Portland ordains:
Section 1. The Council finds:
- By the authority granted in Oregon Revised Statute (ORS) 190.110, the State may enter into agreements with units of local government for the performance of any or all functions and activities that a party to the agreement, its officers, or agents have the authority to perform.
- On May 5, 2010, the Portland City Council adopted an Intergovernmental Agreement with the State for facilitation services on the Central City 2035 NE Quadrant Plan and I-5 Broadway/Weidler Interchange Project (Ordinance No 183731).
- On October 25, 2012, the Portland City Council adopted the N/NE Quadrant Plan and the I-5 Broadway-Weidler Facility Plan (Resolution No. 36972). The N/NE Quadrant Plan and I-5 Broadway/Weidler Facility Plan contain a recommended design concept for the subject I-5 Rose Quarter Improvement Project (Project).
- On June 6, 2018, the Portland City Council adopted the Central City 2035 Plan and Transportation System Plan amendments that include the Project as conceptualized within the N/NE Quadrant and Facility plan (Transportation System Plan Projects #20119, #20120, #20121) as well as an Action Item (Ordinance No. 189000 and Resolution No. 37360). The Council adopted action item placed conditions on the City’s participation and support for the Project contingent upon: inclusion of all major elements of the project as described in the Facility Plan, including bicycle and pedestrian improvements, development of equity strategies and other efforts that benefit communities originally impacted by freeway construction, direction for the future use of any requested City funds on Project elements, and implementation of congestion pricing and transportation demand management strategies.
- In July 2020, the City withdrew from participation in the Project, with a City Council-issued Suspend Work directive to all City Bureaus (July 6, 2020). The suspend work directive was issued due to the City’s belief that the Project did not fully align with City values or conditions of approval.
- In July 2021, an Independent Cover Assessment (ICA) Team submitted a Final Report to the State with recommendations for ways to use highway covers to lay the groundwork for restorative justice for the Black Albina community as part of the Project.
- In January 2022, Governor Brown and local government partners, which include City, Metro and Multnomah County elected official representatives, signed a Letter of Agreement to demonstrate shared understanding and support for the proposed Hybrid 3 highway cover design concept as part of the Project. The signed Letter of Agreement within Exhibit A of the original Intergovernmental Agreement (IGA) provides the factual and historical background of the Project and expresses the parties’ mutual understandings regarding their preference for the proposed Hybrid 3 highway cover design concept, with technical conditions of agreement, as a modification to the original Project design concept.
- On July 13, 2022, City Council approved Ordinance No. 190924 (Agreement No. 73000-0007431) authorizing execution of an IGA for staffing services necessary to conduct a public planning process required under the National Environmental Policy Act (NEPA) rules (hereafter, NEPA Process) with respect to the proposed Project.
- On March 12, 2024, the Federal Highway Administration issued a Finding of No Significant Impact for the Project. The decision was based on design revisions reflected in the Revised Supplemental Environmental Assessment (RSEA) that the State and City collaborated on since July 2022.
- The State is designing and delivering the Project to improve the safety and operations of I-5 between I-84 and I-405 by adding auxiliary lanes and shoulders to I-5, reconstructing surface streets within the Broadway/Weidler interchange and improving community connections and reconnecting neighborhood streets to enhance public spaces and promote economic development opportunities.
- The State is now advancing the design of the RSEA highway cover and ramp relocation design concept as part of the Project, revised through the NEPA process that occurred between July 2022 to date.
- The State acknowledges the harms to people of color, especially to the Black community in Oregon past and present, from the construction of the interstate highway system. The State is committed to helping address past wrongs by centering the Project on the voices of the Black community and working collaboratively and transparently with the Historic Albina Advisory Board (HAAB), the Community Oversight Advisory Committee (COAC), the Albina Vision Trust (AVT), and other partners to create a rejuvenated neighborhood with new community space and reconnected local streets over I-5.
- The State is developing multiple work packages (Early and Main) for possible Project construction, contingent upon funding for the full project.
- The State desires to extend the City’s services to perform engineering and permitting services in support of the Project’s final design phase for Early Work Packages, including the addition of the Bureau of Technology Services to provide utility relocation coordination and design. The State also desires to add the services of Prosper Portland to provide technical assistance related to market and economic analysis and governance and real estate strategies.
- This amendment will also extend the contract term through December 2025 with staff services budgeted through June 2025 for the services necessary to inform the design for the cover to ensure feasibility of future development. The City will provide services to State regarding State’s work on City facilities and any modifications to the State’s system that impact City facilities and Exhibit A lays out the terms of the collaboration. A future amendment will be needed to extend the City services beyond June 2025.
- This is an extremely large and important transportation project. The City of Portland’s participation is crucial to ensure a successful project and that the interests of the City of Portland are represented.
- Specific State and City tasks and obligations are laid out in an Intergovernmental Agreement Amendment, attached as Exhibit A. The City Attorney has reviewed this agreement and approved as to form.
- The Bureau's level of confidence in the cost estimates for this project in this phase is high and is reflective of the collaborative work taken place since July 2022. It is typical of major transportation projects to require amendments to staff services agreements between the parties. The State and City will enter into separate agreements or an amendment to this agreement in the future to engage City services regarding City for subsequent design phases of the Main Construction Package, as well as future construction support, right of way, public utilities, and maintenance and operation of the constructed Project facilities.
NOW, THEREFORE, the Council directs:
- That the Commissioner-in-Charge is hereby authorized to amend the Intergovernmental Agreement with ODOT to add the amount of $1,211,001 for a total IGA contract value of $6,187,321 to reimburse the City for its costs in performing tasks as outlined in a form substantially similar to that attached as Exhibit A and, by reference, made a part hereof.
- The Commissioner-in-Charge is authorized to execute amendments, approved as to form by the City Attorney, to the scope of services or the terms and conditions of this Agreement, provided the changes do not increase the City’s financial risk by twenty-five percent (25%) or greater.
- The Office of Management and Finance Grants Office 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 Commissioner-in-Charge’s behalf.
Section 2. The Council declares that an emergency exists because the Intergovernmental Agreement needs to be executed in order for the City to receive reimbursement from ODOT in a timely manner; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
Official Record (Efiles)
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
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
- The State desires to amend the City’s services to perform certain planning and engineering services in support of the I-5 Rose Quarter Project (I5RQ) final design phase, as well as services supporting the State’s highway cover scenario development of the proposed revised Hybrid 3 design concept.
- The City will provide services to the State regarding State’s work on City facilities and any modifications to the State’s system that impact City facilities and the IGA agreement lays out the terms of the collaboration.
- The City of Portland’s continued participation is crucial to ensure a successful project that stays accountable to the commitments the State has made, to participate in, review and respond on technical design and engineering issues, and to ensure the interests and values of the City of Portland are represented.
- This IGA will facilitate reimbursement for the City’s involvement as of the effective date of the agreement, as well as allow the City to recuperate costs incurred by BTS from August 2021 thru June 30, 2023 and by Prosper Portland from October 2023 until the date the agreement is authorized. This amendment will add $1,211,001 for a total amount authorized to not exceed $6,187,321 from the execution date to June 30, 2025.
- This Council item will include a Resolution to accept the Project update which demonstrates ODOT adherence to project commitments and support for the Project advancing to final design and construction, as Project funding allows.
Financial and Budgetary Impacts
- All services to be provided for the Project are to be reimbursed by ODOT via terms of the IGA.
- The State has financial responsibility to design and deliver the Project and has approved the total amount authorized for services under this IGA to not to exceed $6,187,321 from time of execution to June 30, 2025.
- The project cost code is T01247 and is set-up to track per phase (planning phase, design, construction). The project is included in the fiscal year 2024-2025 budget and the CIP five-year forecast.
- City staff services budget (amend total $1,211,011) was determined based on the information provided by the State and associated requested tasks. The Scope of work is provided in Exhibit C of the IGA.
- PBOT Major Projects & Partnerships will continue to act as the lead City agency in carrying out the City’s obligations and working with Bureau liaison and project management leads of each partner agency.
- The City and State agree that the City Staff Plan may be modified to include the service needs during the preliminary and final design phase of the Project and as may be necessary.
- This IGA amendment is for planning (highway cover), preliminary and final design engineering, including EWP permitting. It is typical of major transportation projects to require amendments to staff services agreements between the parties. The State and City will enter into separate agreements or an amendment to this agreement in the future to engage City services regarding City review of and permitting approvals for subsequent design phases, as well as future construction support, right of way, public utilities, and maintenance and operation of the constructed Project facilities.
- PBOT costs for this project will be posted to Capital Project T01247 which has been set-up to track per phase (planning phase, design, construction). Partner Bureau costs must be posted to Bureau specific cost object and billed via OMF City Grants Office.
- The grant number for this project is TR000340.
- All services provided to be covered by this agreement terms and submitted for reimbursement from total amount authorized by this IGA amendment.
- There is no additional funding requested.
Community Impacts and Community Involvement
- From November 2022 – January 2023 ODOT and FHWA released a Supplemental Environmental Assessment incorporating design package updates and held a 50-day public comment period.
- In response to public comments made during the project’s Supplemental Environmental Assessment comment period, ODOT implemented design refinements. These were developed in collaboration with the City team and in consultation with key interested parties including the Historic Albina Advisory Board, the Albina Vision Trust, and Rip City Management.
- On March 12, 2024, the FHWA issued a Finding of No Significant Impact for the I5RQ Project. The State plans to advance the design of the revised highway cover and ramp relocation concept as part of the Project, including the pedestrian and bicycle overcrossing of I-5.
- Project committee meetings are open to the public and public comments can be shared on specific meeting agenda items in advance.
100% Renewable Goal
N/A