passed ordinance

Amend contract with Stantec Consulting Services, Inc. to extend term, increase compensation by up to $7,598,099, and make other changes for the Columbia Boulevard Wastewater Treatment Plant Secondary Treatment Expansion Program (amend Contract 30006509)

infrastructure utilities
procurement

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

Impact statement

Purpose & background

The purpose of the proposed legislation is to authorize amending Contract 30006509 with Stantec Consulting Services, Inc. to expand professional construction management and inspection support services for BES’ largest capital improvement project in implementation. Amendment No. 8 will bring the amended Stantec contract amount over 25% of the original contract amount of $21,760,733. City Code 5.68.035 requires Council approval for contract obligations over 25% of the original contract and exceeding $1,250,000, conditions which are both exceeded with this legislation. The City of Portland, Bureau of Environmental Services (BES) serves the Portland community by providing water quality protection, watershed planning, wastewater collection and treatment, sewer installation and stormwater management. BES owns and operates the Columbia Boulevard Wastewater Treatment Plant (CBWTP). CBWTP treats a service area that consists of both combined and separated sewers with peak wet-weather combined flow capacity of 450 million gallons per day (MGD) and an annual daily average of 76 MGD of municipal wastewater. The CBWTP Secondary Treatment Expansion Program (STEP) is driven by a regulatory compliance agreement with the Oregon Department of Environmental Quality (DEQ). The Program was developed through the 2016 CBWTP facilities planning effort and subsequent approval in 2017 of the No Feasible Alternatives Analysis to Combined Sewer Overflow (CSO)-Related Secondary Treatment Bypass by DEQ. The project is an investment in the CBWTP which will increase the capacity and resiliency of the biological treatment system, the biosolids handling facilities, and non-process support facilities. The resulting improvements will maximize biological treatment of CSO-related flows at CBWTP and improve wastewater treatment operations resiliency. Ordinance 188630, passed by Council on October 04, 2017, authorized used of the CM/GC alternative contracting delivery method for project construction. The original scope of services for Task 3 – Construction Management required Consultant to provide the staffing to initiate the Construction Management Phase of the STEP improvements where the Construction Management activities would be partially staffed with Bureau of Environmental Service (BES) employees. Due to ongoing commitments and availability of qualified staff, BES requires Consultant to assume additional responsibility for staffing all Construction Management activities and services. With approval of a final Guaranteed Maximum Price Agreement in August 2022, final services could be developed with greater accuracy and this legislation includes reductions in program management controls and training which offset the additional construction management and inspection services. This legislation will allow for continuation of services to support BES’ obligations with DEQ through the support of the program controls and construction activities.

Financial impacts

This PTE services contract amendment adds $7,598,098.88 to the contract. The final negotiated contract amount in this legislation fits within the amount currently budgeted for the project and BES’ overall Capital Improvement Plan. Funds for this project are available through annual appropriations within the Sewer System Operating Fund, WBS Element E07947 with the BES FY24 Capital Improvement Plan. This legislation will neither generate nor reduce current or future revenue. No current positions will be affected, and no positions will be created, eliminated, or reclassified as a result of this legislation.

Community impacts

The project is located within the Columbia Boulevard Wastewater Treatment Plant campus and limited impact to the public is anticipated. The Community Advisory Committee will be updated on a regular basis via BES’ Community Outreach and Public Involvement Coordinator for this project. This amendment expands the participation of a key COBID-certified firm, as intended through their initial participation in the project. COBID participation with this amendment is anticipated to increase to over 47% of the total contract amount.

▸ Full text (the legislation as adopted)

The City of Portland ordains: Section 1. The Council finds: The Bureau of Environmental Services (BES) operates the Columbia Boulevard Wastewater Treatment Plant (CBWTP) to provide wastewater treatment for Portland in accordance with the City's National Pollutant Discharge Elimination System (NPDES) permit. BES is required to increase the capacity of the treatment plant’s biological treatment system by adding additional secondary clarifiers under a Mutual Agreement and Order with the Oregon Department of Environmental Quality. In order to manage project implementation risks, BES undertook a programmatic approach to the addition of the clarifiers where adjacent necessary improvements were incorporated into a program identified as the Secondary Treatment Expansion Program (STEP). Ordinance No.188630, passed by the Council on October 4, 2017, authorized an exemption from the low-bid construction contract requirements in favor of a competitive Construction Manager/General Contractor approach for the program. Ordinance No. 189057, passed by the Council on July 11, 2018, authorized the Commissioner-in-Charge to enter into a contract with Stantec Consulting Services, Inc. for Program Management, Project Controls, and Construction Management Support Services for an amount not to exceed $21,800,000.00. Contract No. 30006509 was authorized for $21,760,733.00 with an effective date of August 13, 2018. No-cost amendments 1 through 6 were authorized under the contract to revise subconsultants, key personnel, hourly rates, and revise the scope of work. Ordinance No. 190979, passed by the Council on August 24, 2022, authorized BES to amend Contract No. 30007489 with Kiewit Infrastructure West Co. for a final Guaranteed Maximum Price, confirming the final construction work intensity and schedule. Additional services are required in construction management and inspection services to support the completion of the agreed-upon scope and schedule outlined Contract No. 30007489. Following approval of the GMP, Amendment No. 7 added $5,000,000.00 of funding to continue construction management and inspection services. Services are required for BES to remain on schedule to meet the requirements of the Mutual Agreement and Order with the Oregon Department of Environmental Quality. The Minority, Women, Disadvantaged, Emerging Small Business participation in this contract will increase from 25% to over 47%. The level of confidence in the estimated cost is Optimal. Funds are available in the Sewer System Operating Fund FY 2024 Budget, Bureau of Environmental Services, WBS Element E07947. NOW, THEREFORE, the Council directs: The Chief Procurement Officer is authorized to execute a contract amendment substantially in conformance with Exhibit A for the purposes described in Section 1 in an amount not to exceed $7,598,098.88, provided the contract amendment has been approved as to form by the City Attorney. The Mayor and City Auditor are hereby authorized to pay for the contract from the Sewer System Operating Fund Budget when demand is presented and approved by the proper authority.

Tally

4 yea 0 nay