*Certain discussion, consent and agenda items may contain forecasts/estimates. Actual results may differ.

AGENDA*

Regular Commission Meeting Port of Portland Headquarters

7200 N.E. Airport Way, 8th Floor June 12, 2019

9:30 a.m.

Minutes

Approval of Minutes: Regular Commission Meeting – May 8, 2019

Executive Director

Approval of Executive Director’s Report – May 2019

Public Comments

General Discussion

Economic Value Atlas JEFF RAKER SCOTT DRUMM

Citizen Noise Advisory Committee Annual Update MARK CLARK KELLY SWEENEY

Consent Items 1. REVISION OF COMMISSION POLICY NO. 6.2.01 CONCERNING

APPOINTMENT AND DUTIES OF ASSISTANT TREASURERS; AUTHORIZATION AND DESIGNATION OF ASSISTANT TREASURERS

Requests approval of revisions to Commission Policy 6.2.01, and an update to the individuals designated as Assistant Treasurers.

ROBERT A. BURKET

2. APPOINTMENT AND DESIGNATION OF ASSISTANT SECRETARIES

Requests approval of an update to the individuals designated as Assistant Secretaries.

DAN BLAUFUS

Action Items 3. FIRE ENGINE PROCUREMENT CONTRACT – PORTLAND

INTERNATIONAL AIRPORT

Requests approval to award a procurement contract to Hughes Fire Equipment, Inc., to fabricate, inspect and deliver one new Pierce fire engine for Portland International Airport.

CHIEF CRAIG FUNK BRIAN FRANCIS

Commission Agenda June 12, 2019 Page 2

4. PERSONAL SERVICES CONTRACT – TERMINAL BALANCING CONCOURSE E EXTENSION PUBLIC ART – PORTLAND INTERNATIONAL AIRPORT

Requests approval for a contract with artist Jacob Hashimoto of Superabundant Atmospheres, LLC, for two hanging art pieces as part of the Terminal Balancing and Concourse E Extension project at Portland International Airport.

KARL SCHULZ

5. PUBLIC IMPROVEMENT CONTRACT – BERTH 601 BREASTING DOLPHIN, FENDER AND RUB RAIL REHABILITATION – TERMINAL 6

Item requests approval to award a public improvement contract for Berth 601 breasting dolphin, fender and rub rail rehabilitation services at Terminal 6 to HME Construction, Inc.

MARCEL HERMANS

Agenda Item No. 1

REVISION OF COMMISSION POLICY NO. 6.2.01 CONCERNING APPOINTMENT AND DUTIES OF ASSISTANT TREASURERS; AUTHORIZATION AND DESIGNATION OF ASSISTANT TREASURERS June 12, 2019 Presented by: Robert A. Burket Controller

REQUESTED COMMISSION ACTION

This agenda item requests approval of revisions to Commission Policy 6.2.01, Appointment and Duties of Assistant Treasurers (Policy), to reflect current titles, add a position to the list of Assistant Treasurers, and designate the Assistant Treasurers.

The current Policy provides that the following positions shall be appointed as Assistant Treasurers: Executive Director; Chief Financial Officer; Controller; Senior Manager, Business and Financial Operations; Senior Manager, Financial Analysis and Projects; and Risk Manager. Since the last update in July 2017, the Port of Portland (Port) has revised the titles of several appointed Assistant Treasurer positions; this agenda item would conform the titles to the current Port convention. Also, Dionne Denson has joined the Port as Chief Financial Officer, and the Risk Director position is currently vacant. Lastly, this item requests to add the Internal Audit Director as a designated Assistant Treasurer under the Policy to provide additional coverage and capacity within the Assistant Treasurer group. Per the Policy, the Commission shall appoint Assistant Treasurers by resolution. The updated Policy is attached as Exhibit A.

EXECUTIVE DIRECTOR'S RECOMMENDATION

The Executive Director recommends that the following resolutions be adopted:

BE IT RESOLVED, That approval is given to revised Commission Policy No. 6.2.01, concerning appointment and duties of Assistant Treasurers, dated June 12, 2019; and BE IT FURTHER RESOLVED, That effective June 12, 2019, Curtis Robinhold, Dionne Denson, Robert A. Burket, Lisa K. Fedeli, Suzanne Kenny and Kenneth A. Gorton are designated Assistant Treasurers of the Port of Portland Commission and shall perform such functions and duties as the Commission shall authorize from time to time; and

BE IT FURTHER RESOLVED, That all previous Assistant Treasurer designations be rescinded; and

BE IT FURTHER RESOLVED, That a copy of Commission Policy No. 6.2.01 in the form attached as Exhibit A concerning appointment and duties of Assistant Treasurers, as revised, shall be attached to the minutes of this meeting.

EXHIBIT A

PORT OF PORTLAND COMMISSION POLICY

Appointment and Duties of Assistant Treasurers Policy No. 6.2.01

Approved Commission Meeting of June 12, 2019

Assistant Treasurers are authorized to make payments on behalf of the Port of Portland,

including cash payments by check or wire transfer and other payments pursuant to properly

executed leases, purchase orders, and other contracts, in the following situations:

• To pay for essential transactions which do not require Commission authorization such

as:

• Taxes and assessments.

• Utility services.

• Insurance premium payments.

• Workers’ compensation claim payment reimbursements to the Port’s third-

party provider.

• Payroll transfers and payroll taxes.

• Payments required by court order, by an administrative adjudication, or by

binding arbitration.

• Payments in settlement of claims against the Port, where settlement has been

authorized by the Executive Director or his designee.

• Payment of legal fees approved by the General Counsel.

• Payments otherwise within the authority delegated to the Executive Director

by the Commission.

• To pay for transactions which have previously been authorized by the Commission,

provided that prior to such payment the Assistant Treasurer has verified that

appropriate Commission action has been taken.

• To countersign checks over $10,000.

The Port of Portland Commission shall appoint Assistant Treasurers by resolution. It is the

policy of the Port of Portland that the holders of the following positions shall be appointed

Assistant Treasurers:

• Executive Director

• Chief Financial Officer

• Controller

• Director, Capital Finance & Debt Management

• Director; Budget, Financial Planning & Analysis

• Director, Risk

• Director, Audit

Agenda Item No. 2

APPOINTMENT AND DESIGNATION OF ASSISTANT SECRETARIES June 12, 2019 Presented by: Dan Blaufus General Counsel

REQUESTED COMMISSION ACTION

This agenda item requests approval of an update to the individuals designated as Assistant Secretaries under Port of Portland Commission Policy 6.2.02 (Policy). The Policy provides that the following positions shall be appointed as Assistant Secretaries: Executive Director, Chief Financial Officer, General Counsel and Executive Assistant. Since the last update in July 2017, the Chief Financial Officer position has been filled by Dionne Denson. Per the Policy, the Commission shall appoint Assistant Secretaries by resolution.

EXECUTIVE DIRECTOR'S RECOMMENDATION

The Executive Director recommends that the following resolutions be adopted:

BE IT RESOLVED, That effective June 12, 2019, Curtis Robinhold, Dionne Denson, Dan Blaufus, Pamela Thompson and Elise Neibert are designated Assistant Secretaries of the Port of Portland Commission and shall perform such functions and duties as the Commission shall authorize from time to time; and

BE IT FURTHER RESOLVED, That all previous Assistant Secretary designations be rescinded.

Agenda Item No. 3

FIRE ENGINE PROCUREMENT CONTRACT – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Presented by: Brian Francis Mechanical Project Engineer

Facilities Engineering

REQUESTED COMMISSION ACTION

This agenda item requests approval to award a procurement contract to Hughes Fire Equipment, Inc. (Hughes Fire Equipment), to fabricate, inspect and deliver one new Pierce fire engine for the Portland International Airport (PDX) fire engine replacement project in the amount of $843,657.

BACKGROUND

In addition to Aircraft Rescue and Fire Fighting (ARFF), Portland Airport Fire & Rescue (PAF&R) responds to structural fires, vehicle accidents, medical calls, wild fire assignments and other types of incidents. PAF&R uses a specialized fire engine (E-80) to respond on these types of calls and E-80 is the second busiest apparatus at PAF&R. PAF&R’s fleet includes front line and reserve units. When the front-line fire engine is out for maintenance, the reserve engine (E-80R) is used in its place. E-80 is a 2008 Pierce fire engine and E-80R is a 1996 Spartan fire engine. An ongoing fire vehicle replacement program is in place at PDX to systematically replace fire vehicles with high mileage and hours of operation and increasing material wear and maintenance needs – all of which contribute to higher maintenance and operating costs. The program replaces front-line fire vehicles on a 12-year cycle that ensures the firefighting vehicle fleet will continue to provide the highest level of fire and rescue service and will have the latest-technology equipment for responding to fire and rescue events. This procurement contract will replace the front-line fire engine E-80. The current front-line fire engine will become the reserve fire engine E-80R.

FIRE ENGINE PROCUREMENT CONTRACT – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Page 2

SCHEDULE

Specification development July 2018 – April 2019

Request price from Hughes Fire Equipment April 8, 2019

Commission approval June 12, 2019

Manufacture fire engine August 2019 – July 2020

Fire engine placed in service August 2020

PROCUREMENT PROCESS

The Port of Portland (Port) will participate in a cooperative purchasing program known as “HGACBuy” through the Houston-Galveston Area Council (H-GAC), a Texas-based regional government, to procure the new engine. Using a competitive process, H-GAC has contracted with various vendors that allow cooperative purchasing by public agencies. H-GAC holds a fire apparatus procurement contract with Pierce Manufacturing. Hughes Fire Equipment is the local dealer for Pierce equipment for the region the Port is within. The Port is a member of H-GAC and has the authority to participate in the purchasing program under ORS 279A.220.

The Port developed a fire engine specification with Hughes Fire Equipment and requested a price for one fire engine on April 8, 2019. On April 29, 2019, the Port received a price quote from Hughes Fire Equipment that meets the Port’s specifications and is within the Port’s project budget. The Port will contract directly with Hughes Fire Equipment by issuing a purchase order under the H-GAC contract.

Small Business Participation

The HGACBuy program for this type of fire apparatus does not include any certified small business vendors. The Port’s Small Business Program also performed an availability analysis and determined that no certified small businesses sell this type of fire apparatus in our area. Therefore, no small business participation goal was established for this procurement.

BUDGET

Procurement contract $843,657

Port staff and contracted services $154,643

Radios, Hose, Fire Equipment $306,700

Contingency $65,000

Total budget $1,370,000

The contingency, representing 5% of the project cost, is considered reasonable given the risk profile for the procurement.

FIRE ENGINE PROCUREMENT CONTRACT – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Page 3

The project costs will be funded by the Airline Cost Center, which is composed primarily of revenues from the Port's commercial airline service business lines, and the Port Cost Center, which is composed primarily of revenues from the Port's public parking, rental car and ground transportation operations at the airport.

EXECUTIVE DIRECTOR'S RECOMMENDATION

The Executive Director recommends that the following resolutions be adopted:

BE IT RESOLVED, That approval is given to award a procurement contract for the Portland International Airport fire engine replacement project to Hughes Fire Equipment, Inc., in accordance with the terms presented to the Commission; and

BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.

Agenda Item No. 4

PERSONAL SERVICES CONTRACT – TERMINAL BALANCING CONCOURSE E EXTENSION PUBLIC ART – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Presented by: Karl Schulz Principal; inici group, Inc.

REQUESTED COMMISSION ACTION

This agenda item requests approval for a contract with artist Jacob Hashimoto of Superabundant Atmospheres, LLC, for two hanging art pieces as part of the Terminal Balancing and Concourse E Extension (TBAL) project at Portland International Airport (PDX). The contract covers development, fabrication and installation of artwork for TBAL in the new Concourse E Extension.

BACKGROUND

The TBAL project considered several different concepts and locations for art within the new Concourse E Extension. The Port established a project Art Committee with the guidance of the Regional Arts and Culture Council (RACC). The Art Committee consisted of members of RACC, TBAL project architect Hennebery Eddy (HEA), artists and curators from the local community, as well as certain internal Port stakeholders. After consideration of different concepts by the Committee and review with Port, tenant and airline stakeholders, the Art Committee determined that two locations would work best with the overall form and function of the new Concourse E Extension.

Terminal Balancing Site Plan

PERSONAL SERVICES CONTRACT – TERMINAL BALANCING CONCOURSE E EXTENSION PUBLIC ART – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Page 2

SCOPE OF WORK

In 2018, the Port engaged RACC and the Art Committee to review art concepts for the new Concourse E Extension. After consideration of concepts, the Art Committee and RACC collaborated to develop a competitive RFQ. The committee shortlisted four artists for interview after review of 283 proposals. Jacob Hashimoto was selected as the successful proposer. The design of the new concourse extension provided for additional infrastructure to support hanging art in the selected locations. Additional structure and framing were added as well as conduits for power and data in the ceilings. This contract, in the amount of $590,000, will provide hanging art design, fabrication and installation in two locations within the Concourse E Extension. Examples of artist Jacob Hashimoto’s hanging art include:

Royal Carribean – Princess of the Sea

PERSONAL SERVICES CONTRACT – TERMINAL BALANCING CONCOURSE E EXTENSION PUBLIC ART – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Page 3

Working with the Port’s purchasing and legal departments, Port staff have determined that this contract is permissible under applicable Port contracting rules and policies with respect to the related capital improvements in the TBAL project area. Commission approval is required to grant the necessary contracting authority based on the dollar amount of this contract.

SCHEDULE

Conceptual Design April 2016 – June 2016

Art Committee RFQ and Selection September 2018 – March 2019

Commission action – Artist contract June 2019

Art Fabrication and Installation July 2019 – June 2020

SMALL BUSINESS PARTICIPATION

The TBAL project has a Small Business Enterprise (SBE) goal of 20%. This contract falls under the overall improvement scope of work, but a specific participation amount was not specified for art. Currently, TBAL is meeting the 20% goal. As a partner of Superabundant Atmospheres, LLC, Jacob Hashimoto is an Asian-American business owner. The firm, however, is not a registered SBE. The intent of the Port’s small business participation goals continues to be met with the selection of Superabundant Atmospheres, LLC, as the overall project is still on track to achieve 20% SBE participation.

McDonald’s World Headquarters

PERSONAL SERVICES CONTRACT – TERMINAL BALANCING CONCOURSE E EXTENSION PUBLIC ART – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Page 4

RISKS

Risk: Installation schedule – failure to fabricate and install in time for concourse opening.

Mitigation Strategies:

• Establish and maintain regular communications between artist, contractor and Port. Track recommendations and identify impacts from delays in decisions via regularly scheduled check in meetings.

• Utilize detailed communication plan and format with artist, contractor and Port management.

• Review installation schedules with artist, contractor and Port on a regular basis to establish milestone dates and ensure deliverables are being met.

Risk: Delay due to material shortage for art

Mitigation Strategies:

• Engage artist to develop phasing and schedules that enable efficient delivery of labor and materials to maintain project schedule.

• Develop strategies and methodologies via art project meetings and status updates to reduce potential delay due to materials shortage or other impacts related to installation schedule.

ARTIST CONTRACT AS A COMPONENT OF TBAL BUDGET

Artist contract $590,000

CM/GC contracts $167,730,000

Enabling work – Concourse E walkway replacement

$4,100,000

Procurements/equipment $2,000,000

Consultant design services (for v2, including construction administration amendment)

$26,415,000

Port staff/contracted services $8,085,000

Contingency $10,380,000

Total project *$219,300,000

*Project budget amount does not reflect non-capital or sunk costs associated with earlier version of TBAL, which were addressed through a Universal Amendment to the PDX Airline Agreement and not included in the new budget breakdown.

PERSONAL SERVICES CONTRACT – TERMINAL BALANCING CONCOURSE E EXTENSION PUBLIC ART – PORTLAND INTERNATIONAL AIRPORT June 12, 2019 Page 5

The contingency, representing approximately 5% of the project cost, is considered reasonable given the stage of the project, the nature of the work and the risk profile associated with the remaining scope.

The TBAL project cost is being funded by Passenger Facility Charges and the Airline Cost Center in accordance with the PDX Airline Agreement.

EXECUTIVE DIRECTOR'S RECOMMENDATION

The Executive Director recommends that the following resolutions be adopted:

BE IT RESOLVED, That approval is given to award a contract to Superabundant Atmospheres, LLC, for fabrication and installation of artwork for the Terminal Balancing Concourse E Extension project at Portland International Airport, consistent with the terms presented to the Commission; and

BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.

Agenda Item No. 5

PUBLIC IMPROVEMENT CONTRACT – BERTH 601 BREASTING DOLPHIN, FENDER AND RUB RAIL REHABILITATION – TERMINAL 6 June 12, 2019 Presented by: Marcel Hermans Engineering Project Manager

REQUESTED COMMISSION ACTION

This agenda item requests approval to award a public improvement contract for the Berth 601 Breasting Dolphin, Fender and Rub Rail Rehabilitation project at Terminal 6 to HME Construction, Inc., in the amount of $1,272,987.

BACKGROUND

Berth 601 at Terminal 6 consists of a floating-hull dock used for loading and unloading vehicles from ocean-going vessels. It is currently used for Hyundai imports and Ford exports. This project will rehabilitate several components of the dock’s mooring system to help ensure that the berth will continue to serve its purpose safely and efficiently into the future.

CONTRACT SCOPE OF WORK

This project includes the following key scopes of work:

• Construction of a new breasting dolphin

• Replacement of 9 steel fender piles

• Repair of 7 steel mooring dolphin piles

• Replacement of the rub rail

• Removal of 50 old timber piles

PUBLIC IMPROVEMENT CONTRACT – BERTH 601 BREASTING DOLPHIN, FENDER AND RUB RAIL REHABILITATION – TERMINAL 6 June 12, 2019 Page 2

SCHEDULE

Preliminary design July 2018 – October 2018

Design October 2018 – March 2019

Commission approval (award public improvement contract)

June 12, 2019

Construction October 2019 – January 2020

CONTRACT SOLICITATION

Solicitation Results

The Port of Portland (Port) procured this public improvement contract utilizing a competitive sealed bidding solicitation under Oregon Revised Statutes, Chapter 279C. The solicitation was advertised on May 6, 2019 and bids were opened on May 29, 2019. HME Construction, Inc., submitted the lowest responsive bid.

The bids were as follows:

1. HME Construction, Inc. $1,272,987

2. Advanced American Construction, Inc. $1,284,450

3. Bergerson Construction, Inc. $1,574,775

4. Engineer’s Estimate $1,695,250

Small Business Participation

The Port’s Small Business Program performed an availability analysis and determined that no certified small businesses in this region perform marine construction. Therefore, no small business participation goal was set for this contract.

RISKS

Risk: Schedule impacts to contractor and/or vessel operator due to each other’s operations

Mitigation Strategies:

• Coordinate construction activities with tenant and vessel operator schedules

• Require construction work to be done within berth availability dates set forth in the public improvement contract

PUBLIC IMPROVEMENT CONTRACT – BERTH 601 BREASTING DOLPHIN, FENDER AND RUB RAIL REHABILITATION – TERMINAL 6 June 12, 2019 Page 3

Risk: Unforeseen site conditions

Mitigation Strategies:

• Maintain a contingency amount in the project budget

• Facilitate the start of construction as early as possible within the permitted in-water work "window”

BUDGET

Public improvement contract (construction) $1,273,000

Personal services contract (design) $270,000

Port staff and contracted services $530,000

Contingency $377,000

Total budget $2,450,000

The contingency, representing 18 percent of the project cost, is considered reasonable given the risk profile for the project and the complexity of the work site.

The project costs will be funded by the General Fund, which is composed primarily of revenues from the Port's maritime and industrial business lines.

EXECUTIVE DIRECTOR'S RECOMMENDATION

The Executive Director recommends that the following resolutions be adopted:

BE IT RESOLVED, That approval is given to award a public improvement contract for the Berth 601 Breasting Dolphin, Fender and Rub Rail Rehabilitation project at Terminal 6 to HME Construction, Inc., in accordance with its bid; and

BE IT FURTHER RESOLVED, That the Executive Director or his designee is authorized to execute the necessary documents on behalf of the Port of Portland Commission in a form approved by counsel.