*Amend contract with Kiewit Infrastructure West Co. to finalize construction of the Secondary Treatment Expansion Program project for a total amount not to exceed $515 million (amend contract No. 30007489)

Authorize amendments to contract 30007489 with Kiewit Infrastructure West Co., up to a total not-to-exceed amount of $515,000,000 to finalize construction of the Secondary Treatment Expansion Program at the Columbia Boulevard Wastewater Treatment Plant. The City of Portland Bureau of Environmental Services ("BES" or "Bureau") strive to contribute to the economic viability and livability of the Portland metropolitan region by protecting public health and the environment. As part of this commitment, BES continuously recovers water from two treatment plants treating sanitary sewage from all residents, businesses, and visitors, as well as collected stormwater generated within City limits. The Columbia Boulevard Wastewater Treatment Plant ("CBWTP") is the largest facility in Oregon, initially constructed in 1952 with its last major expansion completed more than 50 years ago in the early 1970's. As part of its work to protect water quality, BES entered into a Mutual Agreement and Order (MAO) with the DEQ on May 25, 2011. The amended MAO requires the addition of two new secondary clarifiers to increase biological treatment of captured combined sewer overflows at the CBWTP. The City is required to substantially complete the expanded secondary treatment facilities by December 2024. Other critical improvements which are connected and in the same work area were included in the program scope of work to minimize safety and operational risks during construction, as well as to provide schedule control. As presented to Council on October 4, 2017, BES has engaged the services of a Construction Manager/General Contractor (“CM/GC”). As anticipated at time of that legislation, two major construction packages were planned for, where BES and Procurement Services reported to Council on October 21, 2020 to accept a guaranteed maximum price on the first construction package, while stating that the project team would come back to Council for this legislation in 2022. This legislation will allow BES to meet its regulatory obligations with the MAO by authorizing continued construction work for the second phase of the work. The work has remained on schedule through the Coronavirus pandemic and ensuing economic challenges. This legislation does not change any City policy. No revenues will be impacted by this legislation.

Economic conditions over the design phase and unforeseen inflation have overshadowed the value engineering efforts undertaken to minimize costs. BES will be required to defer other projects to accommodate this legislation. As part of the efforts to control costs, BES has developed an Intergovernmental agreement with the Port of Portland (Port Agreement No. 2021-101) to transfer excavated material from the work site to a Port property, reducing carbon emissions, diverting from landfill, and reducing project costs by millions of dollars. This legislation will allow to expand the agreement with the second phase of construction.

Past authorizations from Council have allowed the implementation of a Community Benefits Agreement (CBA) to increase diversity and equity in construction contracting, with mentoring and apprenticeship opportunities for minorities and women in the workforce as well as subcontracting opportunities for disadvantaged, minority-owned, women-owned, disabled veteran-owed, and emerging small businesses. This legislation will allow continued implementation of the CBA, where the advisory committee formed under the phase 1 of the work will continue advising and supporting the project team to meet the CBA goals through the entire construction phase. Committee members may be testifying for this legislation. Significant economic and training opportunities in the construction industry are associated with this legislation.