ORDINANCE No. 180788

*Authorize contract with Oregon Iron Works, Inc. to provide a prototype streetcar vehicle compatible with the existing fleet of the Portland Streetcar system (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds:

1.  The Tri-County Metropolitan Transportation District of Oregon (TriMet) is a recipient of federal funds under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) through a National Research Program grant (Grant) related to the purchase and deployment of a domestically manufactured streetcar.

2.  The Grant indicates that not less than $1,000,000 will be made available to TriMet in each of federal fiscal years 2006, 2007, 2008 and 2009, subject to yearly appropriation, from the Federal Transit Administration (FTA). No local match is required.

3.  City Council passed Ordinance No. 180018, as amended, on March 22, 2006, authorizing Intergovernmental Agreement No. 52626 between the TriMet and the City for the City to become a subrecipient of the Grant funds. The City has the lead in managing the efforts for a prototype streetcar vehicle to be built in the United States in compliance with FTA rules and regulations. Said vehicle to be tested on the Portland Streetcar system.

4.  On August 14, 2006, the City issued RFP No. 105620 (RFP) seeking proposals for the manufacturer of a prototype streetcar vehicle compatible with the existing streetcar fleet and able to be operated on the present streetcar system.

5.  In order to meet Congressional intent to enable a U.S.-owned company to manufacture modern, low-floor streetcars that meet Buy America requirements, a minimum requirement was included in the RFP. It indicated that for a company to be eligible, at least 50% of the proposing business organization must be owned by citizens of the United States.

6.  On October 12, 2006, the City received two responses to the RFP, one from Oregon Iron Works (OIW) in Clackamas, Oregon, and one from the Inekon Group in the Czech Republic. The response from the Inekon Group, owned wholly by citizens of the Czech Republic, was deemed not to have met the minimum requirement and the Inekon Group was notified that their proposal would not be evaluated further.

7.  Prior to issuing a Notice of Intent to Award, the City was required by federal regulations to conduct a price and cost analysis. TriMet audit staff performed this work for the City and found in January 2007 that Oregon Iron Works’ proposed cost, which excluded any profit, represented what the performance of the contract should cost, assuming reasonable economy and efficiency.

8.  Prior to executing the contract for the prototype streetcar, the City is required to certify to the Federal Transit Administration (FTA) that a pre-award audit has been performed and that compliance with Buy-America requirements has been verified. TriMet audit staff performed this work for the City and in January 2007 found that the streetcar prototype to be manufactured by OIW will comply with the Buy America provisions of the Surface Transportation Assistance Act of 1982, as amended by section 337 of the Surface Transportation and Uniform Relocation Assistance Act of 1987, in accordance with the applicable requirements of 49 CFR 661 and 49 CFR 663.

9.  On January 9, 2007, the City issued a Notice of Intent to Award (NIA) a contract to OIW as they were determined to be the most responsive respondent for this project. As there were no protests, the award was final on January 16, 2007.

10.  The Portland Office of Transportation (PDOT) has successfully negotiated a contract with OIW, including the provision that no more than eighty percent (80%) of the total $4.0 million federal appropriation, or a maximum of $3.2 million, would be available as compensation for design, manufacturing, testing, system support and any other costs associated with the production and delivery of the prototype streetcar. The balance of said appropriation being used to provide for project management and vehicle design services under a separate contract with Portland Streetcar, Inc.

11.  The contract only obligates the City to provide compensation when federal funds become available through federal appropriation, grant agreements and granting of funds by the FTA. Funds in the amount of $990,000 have been appropriated for federal fiscal year 2006 and funds have been granted by the FTA. $800,000 of this total has been allocated for this prototype contract.

NOW, THEREFORE, the Council directs:

a.  The Commissioner of Public Utilities and the City Auditor are hereby authorized to enter into a contract, substantially in accordance with the contract attached to the original of the Ordinance and, by reference, made a part hereof.

b.  The Mayor and the City Auditor are hereby authorized to draw and deliver checks payable to Oregon Iron Works, Inc., chargeable to the Transportation Operating Fund, AU 159.

c.  The City’s Project Manager is hereby authorized to agree to and execute, on behalf of the City, any amendment that does not increase the compensation of the contract.

Section 2. The Council declares that an emergency exists because the funds available for this work are of a fixed and limited amount and further delay will only erode their purchasing power; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Passed by the Council, February 28, 2007

 GARY BLACKMER

Commissioner Sam Adams  Auditor of the City of Portland

Prepared by Vicky Diede:slg  By /S/ Susan Parsons

February 16, 2007                Deputy        

BACKING SHEET INFORMATION

AGENDA NO. 193-2007

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 180788