passed ordinance

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 Urgent Rehabilitation of Sanitary and Storm Sewers Project 2022-23

infrastructure utilities
procurement

Department: Environmental Services
Introduced by: Former Commissioner Mingus Mapps
Status: Passed

Impact statement

Purpose & background

The PAURSS project allows BES to respond to urgent sewer repair needs for intermediate size projects in an expedited manner. PAURSS projects address BES assets that are deemed in need of urgent repair, modification and/or rehabilitation to prevent the condition from deteriorating to the point the project becomes an emergency need. Proactively addressing urgent sewer repair projects before they become Emergency projects improves service to the community, protects public health, safety, the environment, and vital adjacent utility systems while maximizing the benefit of available funds by addressing deficiencies before they become an emergency repair. The PAURSS project was initiated in 2014 for public bid as a master services, task order-based agreement. A second PAURSS contract was awarded in 2018 for a 12-month duration and a project funding total of $3 million and has since been extended two additional 12-month periods with an additional $3 million per extension for a total program funding of $9 million. The current contract was set to expire December 31, 2021 and was extended to allow work in progress to be completed. No new Task Orders will be issued under the current contract after December 31, 2021. The 2022 PAURSS will award up to three contracts, with initial 1-year duration not to exceed $3,000,000 annually for a total of $9 million for the first year. Each contract may be extended up to two additional one-year periods not to exceed $3 million per extension for a maximum total expenditure of all the Price Agreements not to exceed $27,000,000 for a three-year period. By proactively addressing urgent sewer repair needs before they become Emergency project needs the PAURSS project supports City Core Values of Equity, Transparency, and Fiscal Responsibility as well as the BES Mission to manage Portland’s wastewater and stormwater infrastructure to protect public health and the environment.

Financial impacts

PAURSS urgent sewer projects will be funded through Sewer System Operating Fund, FY 2021-2022, CIP Budget, Bureau of Environmental Services, ESEN000020.

Community impacts

This contract will allow the Bureau of Environmental Services to respond in a timely manner to urgent sewer and stormwater related project needs. The projects covered by this contract are not emergency projects, but they do need to be taken care of in an expedited manner. Environmental Services is committed to effective and equitable community engagement. The projects that result from these contracts will follow an expedited design and construction process conducted by the Bureau. As a result, a Public Involvement staff member will be added to each project delivery team, and the full outreach process will be used. Community engagement for PAURSS projects will be similar to the typical BES CIP projects. During a typical BES CIP project, a variety of outreach methods and activities are conducted: Personal letters Phone calls One-on-one “office hours” meetings Focus groups and workshops Project-wide flyer/newsletter mailings Regular email updates Door-to-door site visits to residents Project updates placed at community gathering places Presentations to neighborhood and business associations Visits to distribute surveys to local businesses impacted by the work Development and maintenance of a project webpage Social media posting Specialized coordination with schools, non-profits, and other key stakeholders An equity and demographic analysis of each project area will also be conducted to determine additional outreach needs. Examples of enhanced outreach that may be conducted includes: Translation of documents/interpretation at meetings Deployment of CELs to conduct outreach to culturally specific groups Small group meetings/open houses with impacted communities hosted by partner organizations Coordination with organizations representing culturally specific communities The ability of the Bureau of Environmental Services to respond to sewer and stormwater related urgent situations in an expedited manner is key to maintaining the health and safety of the public as well as protecting the environment and existing City utilities such as adjacent drinking water systems from sewer utility failures. Expedited response minimizes impacts to effected communities and allows the Bureau to remediate problems that are outside of planned large-scale work that cannot wait for future planning efforts. In addition, PAURSS Contractors will be required to meet equity and inclusion goals for the life of the contract and PAURSS projects will be utilized throughout the City.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: The Bureau of Environmental Services (BES) is responsible for repair and rehabilitation of the City's sewer and stormwater collection systems. There are deteriorated system assets that require urgent attention, repair, and rehabilitation to maintain required levels of service and maximize benefit to City Ratepayers. The Price Agreement for Urgent Rehabilitation of Sanitary and Storm Sewers (PAURSS) Project will allow the Bureau to be more responsive to urgent system rehabilitation needs in that task orders may be issued through this Contract to complete these projects. The initial Price Agreement term is for one (1) year with the option to renew two (2) additional one (1) year periods, for a total maximum duration not-to-exceed three (3) years. Multiple contracts up to three (3) contracts may be awarded. Each Price Agreement may be written for an amount not to exceed $3,000,000 annually. The total expenditure of all the Price Agreement(s) is not to exceed $27,000,000 for a three-year period. The level of confidence is high. Funds are available in the Sewer System Operating Fund, FY 2021 -2022, CIP Budget, Bureau of Environmental Services, ESEN000020 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: Council hereby approve the Findings, attached as Exhibit A, and on that basis, exempts up to three price agreements for construction services 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 1-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. Council hereby waives, in accordance with ORS 279C.390(1), the requirement of a Contractor awarded the Contract to post a payment and performance bond relating to the Project with the understanding that such payment and performance bonds shall be posted upon execution of each Task Order thereunder. The Price Agreements may be extended up to an additional two years, in increments of 1-year terms, at an amount not to exceed $3 million each for each consecutive 1-year term, in a cumulative amount not to exceed $27 million, provided the amendments to the Price Agreements have been approved as to form by the City Attorney and Council approves the extensions. The BES Director or their designee is authorized to enter into and execute task orders under the Price Agreements in an amount not to exceed the remaining authorization for each price agreement. The Mayor and Auditor are hereby authorized to pay for the contracts 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. Upon the Council’s acceptance of the Chief Procurement Officer’s report recommending the highest-ranking responsible bidders, the Chief Procurement Officer is authorized to negotiate and execute contracts, provided the contracts have been approved as to form by the City Attorney’s office.

Tally

5 yea 0 nay