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Wednesday, May 7, 2008

Politics Commission Adams: Sauvie Island Bridge Project is “Scrapped,” Transporation Budget Has a $2 Million Hole

Posted by Amy J. Ruiz on Wed, May 7 at 9:35 AM

“A double hit on high fuel prices,” says Commissioner Sam Adams, means we have to “rethink” transportation projects, he announced this morning at a quickly-called press conference. The high fuel prices means that the cost of things like asphalt—a petroleum based product used in many transportation projects—are higher. And the city’s going to get less gas tax revenue via the state.

adamssauvie

“I cannot guarantee the current stated price of our projects right now, and I’m calling for a 30-day review to determine the accuracy of the estimates that we’ve had on the books, that we put on the books last October.”

“The way that that affects the Sauvie Island Bridge, is I’m not confident we can bring that project in for $5.5 million,” says Adams. He doesn’t want to leave the contractor “hanging, so that project will not be moving forward.” He’ll be asking the city council to retain the $500,000 in general fund/street fee money that would have gone to the bridge, to pay for safety fixes in the Burnside-Couch corridor.

“That’s the most dangerous street corridor judged by pedestrian and cyclist injuries and deaths,” Adams says.

In addition to the higher price of project materials, “people are driving less and consuming less fuel,” says Adams. The state gas tax is per gallon, not based on the price. When people drive less, less gas tax goes to the state, and less flows back to the city. “The latest estimates from our fiscal shop… is we now have a new $2 million hole in the city transportation budget.” (The math: There’s a projected $2.7 million reduction in gas tax revenues flowing back to the city. The city had earlier projected an $800,000 gap, and that’s reflected in the upcoming budget. The difference is about $2 million.)

Gas tax makes up about 40 percent of “general transportation revenues,” so a reduction in gas tax has a significant impact, Adams says.

He’ll be asking that the city council allocate money from the city’s existing reserves—aka the rainy day fund—to help fill that hole. “It’s already raining,” Adams says.

“If this trend continues,” Adams says, “This also impacts the assumptions of the Safe, Sound and Green Streets initiative.”

Sue Keil, head of the Office of Transportation, says the bureau will be looking at vacant positions and only filling the most essential ones, reevaluating projects, and doing “anything else we can do to reduce fuel consumption. We’re very fuel dependent when you look at maintenance operations.”

More after the cut.

Adams says the $5.5 million estimate on moving the Sauvie Island Bridge to NW Flanders is a few months old, which makes it more current that other transportation projects—but he isn't confident it will stay on budget. "I think it's really important, since I've taken over as transportation commissioner, that I have confidence" in project budgets. That, combined with the 30-day review, would mean he'd be "putting the contractor in a bind," since the contract has to move the bridge soon.

"This is the most dangerous corridor in the City of Portland. I do it with a heavy heart, because of that sort of human tragedy. But I've got to keep a budget," he says. "It's dead and buried, and going to be scrapped."

How does this make sense, when he was putting forward a guaranteed maximum price contract and was confident enough in this project to bring Commissioner Dan Saltzman on board just a week and a half ago? Adams says the latest iteration of the project has $3.9 million of it at a guaranteed maximum price, but the rest of the $5.5 million would be bid out, and he isn't confident that would come back within the estimate.

It seems like this all happened yesterday; Adams, as recently as yesterday, was working on an op-ed explaining his position on the Sauvie Island Bridge proposal and taking aim at Mayor Tom Potter's opposition to the project. "He is flat wrong," according to Adams' op-ed draft. "When it comes to saving lives and preventing injuries, I believe that projects should be approved on the merits. That is why everyone but Mayor Potter supports the Flanders Street bridge."

Comments

The 5.5 million firm was bogus all along. This is politics. The budget people sat Adams down and showed him hard numbers. If Dozono puts him in a runoff and the bridge deal went over budget between May and November he'd be toast.

Adams couldn't afford another Tram while running for mayor.

So does this mean Sam was ducking out of the counsel chambers while the homeless were speaking?

So, so cynical. Can't a guy be alerted to a problem with financing and decide to pull the plug without the merit of the project being questionable in the first place? It was a $5.5MM project of which $2MM was from the city, most of the money came from PDC and from funds dedicated for use within the physical boundaries of the waterfront renewal district (not its official name). Not to mention the fact that development in the Pearl has raised apprx $47MM in SDC monies but only had about $740K spent in the area. Where did the rest of the money go? Oh yeah most of it went to the east side. Perhaps that will shut the door on eastside whining about westside privilege.
I for one think it is a real shame to a) lose such a beautiful piece of metal work and b) allow the rift of the 405 to go unbridged in a safe manner for peds and bikes alike.

Of course now what I would really like to see is the whole freeway covered with a park ala Seattle.

“‘Based on the statements I’ve heard and seen in the media, I would vote against this project as well,’ Adams says. Which is why he and his staff have a presentation ready, with a power point and three big poster boards outlining the project…

Leonard is asking that public testimony is succinct, given Adams' ‘thorough’ presentation…

Adams is wrapping things up. ‘I'm trying to apply a more disciplined approach’ to heading up transportation, by assessing the most dangerous areas. ‘All of the investments are intended to make it safer. When it gets safer, we can move down the list. But we haven't had this fact based, methodical’ method for prioritizing transportation funding before, he says.”

Excerpts from blogtown: POSTED BY AMY J. RUIZ ON WED, APR 30 AT 10:57 AM

I would have thought that such a “thorough” power point presentation and three big poster boards would have remained current/accurate for more than 7 days.

I guess you don't read the Oregonian. For all who love to tout the "fiasco of the price for the TRAM"
There was a small box in the Oregonian today that pointed out despite the Big-ticket mistake in the original $15.5 million price estimate for the TRAM, whatever Sam did in negotiating the original contract protected the citizens of Portland from covering the difference.
"PORTLAND TAXPAYERS ONLY PAID $8.5 MILLION OF THE $57 MILLION DOLLAR TAB."
Unfortunately Sam and his staff could not find similar protections in a commitment to finance the Sauvie re-use project.

Unfortunately Sam and his staff could not find similar protections in a commitment to finance the Sauvie re-use project.

They did do that, in the original $5.5 million sole source contract that Dan Saltzman opposed. It was a guaranteed $5.5 million from the contractor—who would have had to deal with any overruns—Adams' staff reminded me today.

A good unbiased reporter would know what is really at the heart of this. And ask better questions rather than your usual regergitation. Gas prices my ***. Polling is showing Sam is not going to get to 50% and may not get to a runoff. His attacks on Dozono have had no traction. Enjoy the private sector Francesconi II.

Attacks? Oh, you mean the fact that Dozono's only pays what he owes when caught? Like his rent/taxes/trust fund? Gotcha.

And, actually, the latest polling has Adams pulling away from Dozono (was 39-38, now 47-36).

Pity about the project, but these things happen.

The polls are going to jump all over the place, but count on it: Portlanders are no so stupid as to put a guy in the Mayor's office with so... little... relevant...

...experience...

Sorry. Never mind.

Hey J Ramsey - as I wrote in the first post about this earlier in the morning, "Adams seems to be taking the transportation funding woes as a nice way to abandon what’s become a sticky election year project."

What a shock - Sam misunderestimates (in the words of Dubya) how much moving the boutique bridge would cost. Hmmm...does this bring to mind the tram?

The most dangerous part of Burnside-Couch is 10th and 11th at Couch behind Powell's, where there should be a light because of heavy pedestrian traffic. Put one there.

Again, this is a situation of accountability - or the lack thereof.
Instead of a council intent on providing the basic services to our Citizens, they are more intent on producing gawdy structures over our previously classic structures and so on...
Sam says we need to prepare for all the people he's invited, yet he, and the rest of council, are not maintaining our infrastructure and basic needs of those who are born and raised here.
Two facts:
1) There is a glut of overpriced housing that can't be sold.
2) Portland has a homeless population of over 3,000 and according to the Auditor's Report, homeless families are on the rise. Portland has about 1,200 beds for single individuals and a very limited amount of transitional housing for displaced families.
Let's not get started with the other "pet projects" these people a running amok in.
As your Mayor, I will stop this messing around and get our budget in sync with our "actual" needs. Once we're balanced and our infrastructure needs are met, we can look at the other things that might be nice to do. Regarding a comment above, I also propose connecting the Park Blocks at SW Burnside & Park with cross-walk guards, stylishly uniformed, of course.
RICH4MAYOR!!

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