AMENDMENT NO. 2

AGREEMENT FOR PROFESSIONAL SERVICES

STREETCAR PROTOTYPE PROJECT

CITY/PSI AGREEMENT

 This Amendment made the ______ day of ________ 2007 modifies the Agreement for Professional Services between the City of Portland (City) and Portland Streetcar, Inc. (PSI or Contractor), Contract No. 37119 (City/PSI Agreement).

RECITALS

 WHEREAS, on November 22, 2006, the City Council passed Ordinance No. 180621 authorizing an agreement with Portland Streetcar, Inc. (PSI) and with sub consultants to carry out project management and vehicle engineering services required for the production of a domestically manufactured prototype streetcar, and

 WHEREAS, the City received only one responsive bid for manufacture of the prototype streetcar vehicle, requiring a Cost Analysis in addition to Buy America Pre-Award Audit (Analysis and Audit) to meet requirements of the Federal Transit Administration; and

 WHEREAS, TriMet has received FTA approval for the second year of appropriation for a total amount of $1,000,000 of which $800,000 is scheduled for payments to the manufacturer and the remaining $200,000 is intended to be used to support Analysis and Audit as well as project management and engineering design services.

 WHEREAS, Amendment No. 1 to this Agreement reduced the compensation from $190,000 to $178,566 in order to allow funding of the Buy America Pre-Award Audit conducted by TriMet; and

 WHEREAS, Oregon Iron Works has contracted with the City of Portland for manufacture of the prototype vehicle and is scheduled to complete the manufacture by December 2008; and

 WHEREAS, PSI has contracted with Shiels Obletz Johnsen, Inc. and LTK Engineering to provide project management and design engineering services.

AGREEMENT

1.  Compensation: The amount allocated from the federal appropriation for the period from December 1, 2007, to December 31, 2008, for services that include manufacture oversight and completion of the vehicle manufacture is to be increased from $178,566 to $362,964.

2.  Allocation: The budget and payment schedule is to be revised to reflect the following services:

Project Management      $110,000

Vehicle Design and Oversight   244,964

Communications and Reporting   $8,000

TOTAL MAXIMUM      $362,964

3.  ALL OTHER PROVISIONS OF THE AGREEMENT REMAIN UNCHANGED.

APPROVALS:

PORTLAND STREETCAR, INC.      CITY OF PORTLAND

By: ________________________      By: _________________  _____

 Michael Powell          Sam Adams

 Chair, Board of Directors        Commissioner of Public Utilities

             By:          

               Gary Blackmer

               City Auditor

APPROVED AS TO FORM:

By: _________________________      By: _______________________

 Christopher P. Thomas        Mark Moline

               Deputy City Attorney