Approve findings to authorize an exemption for a class of public improvement contracts from the competitive bidding requirements and authorize the use of the alternative contracting method of Price Agreements for construction services

The City of Portland ordains: Section 1. The Council finds: The Bureau of Environmental Services (BES) owns and operates Columbia Boulevard Wastewater Treatment Plant (CBWTP), Tryon Creek Wastewater Treatment Plant (TCWTP) and nearly 100 sewage pump stations that collect, convey and treat the City of Portland’s wastewater and a portion of the stormwater. Price Agreements are a type of project delivery method for construction and repair/maintenance projects where Task Orders for a specific scope of work are negotiated under the master Price Agreement, using established rates for labor, equipment, and markups for overhead and profit on labor, equipment, material and subcontractor direct costs. Price Agreements will allow BES to increase the effectiveness and efficiency of its project delivery at the CBWTP, TCWTP, and associated pump stations because the scope of work to be performed under the Price Agreements is urgent, not overly complex, and the full design is not fully defined until task orders are negotiated and executed. BES estimates that up to three Price Agreements valued at $3 million each for an initial 2-year term will allow it to construct smaller scale, urgent treatment plant and pump station projects and to repair, rehabilitate and modify existing capital assets. The Price Agreements will contain two options to extend for an additional 1.5 years at $1.5 million per renewal period. The level of confidence of the cost estimate is high. The Price Agreements can be funded through annual appropriations within the Sewer System Operating Fund, Pump Station Improvement Program Shell (WBS Element E11280) and Rehab, Repair and Modifications Shell (WBS Element E04891) with the Bureau of Environmental Services’ FY 2021-25 Capital Improvement Plan (CIP.) The Agreements will replace the existing Price Agreements, which were authorized by Ordinance No.188744 on December 20,2017 for construction services. The current Price Agreements have reduced staff time and associated design and bidding costs for completed projects and have provided BES with a contracting tool that has enabled rapid response to urgent projects that could have resulted in the release of partially treated or raw sewage to the environment. The Council, as the Local Contract Review Board, has the authority to exempt certain public contracts from the competitive bidding requirements of ORS Chapter 279C and Portland City Code Chapter 5.34, provided certain findings are made. Those required findings, which address favoritism, competition, substantial cost savings, operations, budget and financial data, public benefits, value engineering, specialized expertise, public safety, market conditions, technical complexity, and funding sources, are included in the form attached hereto as Exhibit A (collectively, the "Findings"). The Findings were made available, and a notice of the public hearing of this Ordinance was published, fourteen (14) days in advance of the public hearing. The City will invite prospective contractors to submit competitive proposals in response to the City's Request for Proposals ("RFP"). A Selection Committee will select contractors based on an evaluation of the proposals received. The selection committee will include City staff and minority evaluator(s) as required per Resolution 36757. The RFP process will be completed under the guidance and direction of Procurement Services and in accordance with Alternative Contracting Methods requirements set forth in Portland City Code Chapter 5.34. NOW, THEREFORE, the Council directs: The Findings, attached as Exhibit A, are hereby approved and, on that basis, up to three price agreements for construction services are exempt from the competitive bidding requirements of ORS Chapter 279C. The Chief Procurement Officer is authorized to issue an RFP to solicit, enter into, and execute up to three Price Agreements, valued at $3 million each for an initial 2-year term, in a cumulative amount not to exceed $9 million, provided that the Price Agreements have been approved as to form by the City Attorney. The Price Agreements may be extended up to an additional three years, in increments of 1.5-year terms, at an amount not to exceed $1.5 million each for each consecutive 1.5-year term, in a cumulative amount not to exceed $18 million, provided the amendments to the Price Agreements have been approved by the City Council. Procurement Services and BES will report annually to the City Council on the progress each Price Agreement makes towards meeting equity goals in subcontracting and work force development. The BES Director or his designee is authorized to enter into and execute task orders under the Price Agreements in an amount not to exceed $1,000,000 per task order. The Mayor and City Auditor are hereby authorized to pay for the Price Agreements from the Sewer System Operating Fund Budget when demand is presented and approved by the proper authority. As required by ORS 279C.355 and PCC 5.34.820B, Procurement Services will prepare and deliver a post project evaluation to the Council once the City accepts the Price Agreements as complete.