191967

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 ("City'') and Multnomah County ("County'') being the principal owners. The Justice Center serves law enforcement, courts, and jailhouse/corrections functions. 
2. The City and County share responsibility for maintaining common elements of the Justice Center, including the bus duct system (electrical service, busway risers, and electrical distribution equipment, etc.). 
3. Given that components of the bus duct system are mostly of original construction (1981), they are approaching the end of their useful life and are at risk of failure, which would result in a significant, if not complete, electrical outage throughout the entire building, posing significant challenges and risk to the work performed there. 
4. On June 28, 2023, Council authorized the Justice Center Bus Duct Replacement Project Intergovernmental Agreement (IGA) (Ordinance No. 191359), which outlined the division of the roles, responsibilities, and cost of the work between the City and County to replace the bus duct system (Project) at the Justice Center.  
5. The Project total budget was estimated at that time to be approximately $30,000,000 with the costs apportioned as follows: County would be responsible for 57.91 % plus the Elevator #2 Cost Credit; City would beresponsible for 41.34% less the Elevator #2 Cost Credit; and the owner of Unit 4 would be responsible for 0.75%. The original IGA do-not-exceed amount authorized by the prior ordinance was $12,402,000 for the City’s portion.
6. The County was the Project lead for procurement of services for the Project.  The results of the bidding and negotiation of the final construction documents resulted in an actual cost of $33,210,000, which when apportioned to the condominium owners would increase the City’s share of the Project costs. Because the Justice Center is used, in part, as a detention center operating 24 hours a day 7 days per week, that active occupancy and use increase the time required to access work areas, add delays to the contractor’s workflow, and increases to the total cost.
7. The Bureau of Fleet and Facilities (BF&F), formerly the City’s Division of Asset Management, recommends that the IGA with Multnomah County be amended to account for the increase for the total City portion of the overall construction cost from the estimated $12,402,000 to a not-to-exceed value of $13,500,000 unless additional fiscal commitment would be authorized by Council in a future budget. This increase would alter the total agreed value from $30,000,000 to a not-to-exceed value of $33,210,000, and add $680,000 for contingencies for the City’s share. 
8. Funds are included in the Facilities Services Police locations major maintenance account and an estimate of current year costs is included in the FY 2024-25 Adopted Budget.

NOW, THEREFORE, the Council directs:

1. The City Administrator or designee is authorized to execute the First Amendment to the Intergovernmental Agreement between Multnomah County and the City of Portland for the Justice Center Bus Duct Replacement Project, with its substantive content reflecting the changes identified in this ordinance, and upon approval as to form by the City Attorney’s Office. The City Administrator or designee is authorized to amend the terms and conditions of the IGA. The City Administrator or designee may increase the First Amendment to the IGA value only if City Council clearly authorizes additional funding for the Project through an approved future budget.
2. The Mayor and Auditor are hereby authorized to execute payments to Multnomah County when demand is presented and approved by the proper authorities.