*Authorize City Attorney to settle lawsuit related to construction of the Streetcar approach ramp located near SE 2nd Ave and accept lump sum payment in the amount of $7,500,000
The City of Portland ordains.
Section 1. The Council finds:
- The City, through its attorneys, filed a lawsuit against Tri-County Metropolitan Transportation District (TriMet) and Stacy & Witbeck, Inc. for damages arising from the construction of the Streetcar on-grade approach ramp located at SE 2nd Avenue.
- The City alleged breach of contract and negligence claims against the defendants.
- The City has concluded that after extensive analysis of the facts and applicable law, and taking into account the risks and uncertainties associated with litigation, the Settlement Agreement is desirable to avoid the time, risk, and expense of protracted litigation.
- The settlement provides a lump sum payment to the City. It also requires TriMet to provide additional support to the City to complete the repairs. Specifically, TriMet will assist the City in identifying and securing additional funding; TriMet will provide the City with technical assistance; and TriMet will provide service interruption assistance at no cost to the City if repairs are performed within the construction window for other contemplated repairs.
- The City Attorney, Portland Bureau of Transportation, and the Mayor's office recommend approval of the Settlement Agreement.
NOW, THEREFORE, the Council directs:
- The Settlement Agreement is hereby approved and the Mayor or Mayor's designee is authorized to execute the Settlement Agreement on behalf of the City.
Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling this lawsuit; 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
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
This Ordinance settles a lawsuit brought by the City against Tri-County Metropolitan Transportation District and Stacy & Witbeck, Inc. for defects related to the construction of an on-grade approach ramp for the Streetcar system located at SE 2nd Avenue.
Financial and Budgetary Impacts
This legislation will have no impact on City revenue.
The City will receive a lump sum payment on behalf of all defendants in the amount of $7.5 million, allocated for repairs for this structure. This Ordinance does not amend the budget.
Economic and Real Estate Development Impacts
Not applicable
Community Impacts and Community Involvement
This Ordinance settles a lawsuit alleging breach of contract and negligence against parties who performed design and construction services for the ramp project. No public involvement or input was sought regarding this Ordinance. The City Attorney's Office and City Administrator have concluded that it is not appropriate to have public involvement in settlement negotiations regarding lawsuits on behalf of the City.
No future public involvement is anticipated or necessary. Approval by City Council of this Ordinance will fully settle the lawsuit in favor of the City of Portland.
100% Renewable Goal
This legislation will have no impact on City energy use.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and Budget Analysis
Analysis provided by City Budget Office
This settlement will bring in $7.5 million to the City, which is the estimated cost of the required repairs. Therefore, there is zero net financial impact of this settlement for the City.
Document History
Document number: 2025-419
President's referral: City Council