ORDINANCE No. 178798

*Authorize contract with Kiewit Pacific Co. for pre-construction services for the Portland Aerial Tram. (Ordinance)

The City of Portland ordains:        

Section 1.  The Council finds:

1.  The City Council, on August 13, 2003, approved Ordinance #177795, granting a public bidding exemption for the Portland Aerial Tram and authorizing the Portland Office of Transportation (PDOT) to proceed with an alternative selection process for selecting a Tram Equipment Supplier and a Construction Manager/General Contractor.

2.  The City Council, on August 14, 2003, approved Ordinance #177797; authorizing Contract #35021 with Portland Aerial Transportation, Inc. (PATI) for schematic design and design development services for the Marquam Hill Aerial Tram. Contract 35021 was amended by Ordinance #178482 on June 10, 2004, to complete the design and engineering for the Portland Aerial Tram.

3.  The Portland Development Commission (PDC), incorporating City Council’s advice, approved the South Waterfront Central District Project Development Agreement on August, 13, 2003. The agreement was signed by all parties and put into effect on August 22, 2003, and has subsequently been amended by the parties three times.

4.  The Third Amendment to the South Waterfront Central District Project Development Agreement was approved by the PDC on June 9, 2004. The Third Amendment modified the funding plan for the tram and increased the tram budget to $28,500,000.

5.  The South Waterfront Central District Project Development Agreement requires that the aerial tram project be complete and operational concurrent with occupancy of the first OHSU building in South Waterfront, which is currently under construction. In order to deliver the project on schedule, construction documents for the project must be completed by December 31, 2004, and a construction contract negotiated and completed by the end of January, 2005.

6.  PDOT, working with PATI and the Bureau of Purchases, developed a Request for Proposal (RFP) for the selection of a Construction Manager/General Contractor (CM/GC). The RFP was advertised on May 10, 2004, and three valid proposals were received from the following firms: Hoffman/Andersen, a joint venture, Kiewit Pacific Company, and Stacy/Witbeck, Inc.

7.  Proposals for the project were primarily evaluated based on experience, and qualifications. The specific selection criteria were: 1) Summary of Experience and Qualifications; 2) Record of Safety; 3) Proposed Personnel and Organization; 4) Management Plan; 5) Sheltered Market Program and M/W/ESB History and Participation; 6) Workforce Training and Hiring Program; and 7) Fee Proposal.

8.  An evaluation committee appointed by Mayor Katz evaluated the proposals and interviewed the respondents. The committee was composed of the PDOT staff, PATI Board members, and an outside transit construction expert.

9.  On July 23, 2004, following interviews and reference checks, the selection committee recommended to the City that Kiewit Pacific Co. of Vancouver, Washington, be selected as the CM/GC for the Portland Aerial Tram. Kiewit Pacific was selected on the basis of exhibiting excellence across all of the selection criteria, and specifically for its strength and experience in delivering complex public works projects and a favorable fee proposal.

10.  On July 27, 2004, the Bureau of Purchases issued a Notice of Intent to Award to the three RFP respondents, and received no protest.

11.  PDOT has successfully negotiated a scope of services for pre-construction services with Kiewit Pacific Co. The services, which are outlined in the attached Contract (Exhibit 1), include constructability review, schedule development and coordination, cost estimating, and design coordination.

12.  Coordination between the design team under contract with PATI, the Tram Suppler (Doppelmayr CTEC) and Kiewit Pacific Co. is critical in achieving design excellence and controlling project costs. The work of the design team cannot be developed further without the assistance of Kiewit Pacific Co. and requires the immediate incorporation of Kiewit Pacific Co. into the design team.

13.  Upon successful completion of the pre-construction scope of services, Kiewit Pacific Co. and the City will negotiate a contract for the construction of the Portland Aerial Tram and return to City Council for authorization of a construction contract.

14.  Funding for the pre-construction services will be paid fully by the City with funding supplied by PDC. The funding agreement for PDC’s share of the work is in place through Ordinance #177745, adopted on July 31, 2003, authorizing an Intergovernmental Agreement (IGA) between PDC and PDOT.

NOW, THEREFORE, the Council directs:

a.  The Purchasing Director is hereby authorized to execute a contract for Pre-Construction Services in an amount not to exceed $62,000 with Kiewit Pacific Co, in substantial conformance with the contract attached to this ordinance as Exhibit 1.

b.  The Mayor and the Auditor are hereby authorized to draw and deliver checks to Doppelmayr CTEC, chargeable to the Transportation Fund.

c.  The City’s Project Manager, with concurrence from the City’s Purchasing Agent, is hereby authorized to agree to and execute, on behalf of the City, any amendment which does not increase the amount of the Agreement.

Section 2. The Council declares that an emergency exists because a delay in executing the agreement will result in significant delays to the design and construction process for the aerial tram project and result in non-compliance with the City’s contractual obligations under the South Waterfront Central District Project Development Agreement; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Passed by the Council, October 06, 2004

Commissioner Jim Francesconi            GARY BLACKMER

Matt Brown:slg  Auditor of the City of Portland

September 10, 2004              BY /S/ Susan Parsons

ORD Kiewit 092204.doc

                     DEPUTY

BACKING SHEET INFORMATION

AGENDA NO. 1174-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 178798