Tram staff changes complete; tram audit results expected in February

Not knowing any of the players, or having any vested interest in the outcome, I admire Sam for taking the initiative.

That said, it seems obvious that Vic Rhodes and John Mangan were asked to resign. Why not terminate them instead? If they were contractors, I assumed the contract included a separation clause. Too much inside baseball?

If the lawyers who drew up the construction contract failed to identify which party would be liable for cost overruns resulting from x, y, and z (design change, materials inflation, geological obstruction, etc.) then they probably committed legal malpractice. Whether it was outside counsel or city staff who prepared the contract, they failed to adequately protect the city's interest. At a minimum, I would not consider sending future contract work their way. Unless the city had instructed counsel they were prepared to build the tram no matter how much it would actually cost, and they preferred to leave the cost escalation section intentionally vague.

If the City Council had planned on assuming unknown and rising constructions costs (or if their "design competition" resulted in an expensive delay or compression of the construction timetable), then shame on the City for their faux "shocked and dismayed" response at this late stage in the game.

Ok, so you didn't get his resignation in writing and this joker was wiggling free for a while. I like the fact you just said 'I made a mistake.' Next time don't be so trusting!

You still did the right thing. Homer's raw attempt to cash in his chits and get council to overturn your initiative is ballsy. He wants all his tax abatements and dictate who you all can hire and fire. How arrogant! Tim

Mr. Rhodes states in his resignation letter that one of the "bumps in the road" was the dollars' decline in value vs. the swiss franc. I had not heard that mentioned in the Oregonian articles. Many private enterprizes manage foreign currency exposure by buying & selling currency futures. Perhaps there are legal restrictions that prevent this public enterprise from doing that. If not, it would seem a prudent strategy for future projects that involve large purchases from foreign sources.

15 to 50 million? How does this happen?

This is not a personal attack on the Sam or his team in any way but more of an indictment of how we govern these days. Those we elect are “outgunned” by extremely large and complex projects like the big pipe, the tram, water billing system. It’s clear that Sam and his team are passionate but the reality is that Sam (so far) has been a career politician; and like most of his team is lacking in substantive experiences in the public, private sector or specific business areas that government operates in (utilities, education, planning\development, public safety or technology). How many fortune 500 companies staff their executive teams this way? You are asking miracles if you expect that officials and their staff serving for only a brief term can gain this expertise across highly diverse and complex projects that require expertise in specific business areas. Ideally you’d see the officials relying on the bureaucracy (civil servant experts) to bridge this knowledge gap but with the slash and burn methods of “cleaning house” of bureau executives that you see by Adams, Leonard and Potter I wonder how much expertise or support is left for them to fall back on. In this environment the contractors\developers\consultants will take the city to the cleaner every time.

Somewhere in our past the public attitudes toward government changed. Rather than public service being the most honorable profession as it was in the early days of our nation now we look down on civil service. Given the corruption we see at all levels of government this perception is not without basis. However, as long as that perception remains and as our society values individual wealth over public good we will never get the most qualified people in our communities to lead and govern.

The real tragedy of the Tram is that the City of Portland quashed any attempt to propose alternatives that would actually function as part of the regional transit system.

Bypassing Barbur and the Ross Island corridor means that there is virtually no transit benefit from the Tram.

For about the same amount of money as the final price of the Tram, Portland could have gotten a facility would have served the Ross Island Bridge transit corridor and the Barbur Blvd transit corridor (where light rail will someday be built), and could have greatly reduced demand for parking in both South Waterfront and Pill Hill. The Streetcar/Tram combination does not provide adequate connectivity between South Waterfront and the regional transit network. Will anyone transfer from TriMet to the Streetcar to take the Tram to Pill Hill? Will anyone transfer to Line 8 in order to take the Tram to South Waterfront? I expect not. It looks as if the Tram will actually increase the demand for parking in South Waterfront, by folks who work up on the hill.

Jim Howell's tunnel/elevator proposal was published in the Oregonian and a neighborhood resolution asked that it be analyzed. The City refused to do so. One of the losing contenders in the aerial tram design competition recommended a transit connection at the west end of the Ross Island Bridge.

My estimate is that the right facility would have carried at least 10 times the ridership that the Tram will, with much lower operating costs, and no disruption to the intervening neighborhood. Existing horizontal people mover technology, such as is used in the Detroit airport, would provide quicker travel time than the Tram. Remember, the entire Robertson Tunnel between Goose Hollow and Sunset Transit Center only cost $90 million, including the Zoo station and elevators.

The reason this alternative was not even costed out is purely political -- this was a done-deal dictated by the OHSU President and Board -- they demanded a Tram. Ironically, a facility that is integrated into the regional transit system would have been eligible for Federal funding for 40% or more, so the local cost could have been less than what the Tram will cost us.

This is a classic case of form overriding function.

Another big waste was all the effort spent by local residents proposing such non-starters as a shuttle bus. This provided the perfect straw-man, and allowed the City to paint them as NIMBY's.

Sam, would you please explain the revenue sources for the Tram (at 15 million and at 50 million?)

Who pays for the cost over run and why?

What does the Oregonian mean when it says that OHSU (a tax funded institution no? ) pays for it? Does that mean that I don't pay for it, or only that I can never really understand how I pay for it?

What does the Oregonian mean in percentages when it says "the bulk" of expenditures or over run costs are paid for by OHSU?

Thanks.

Sam,
I also admire you on the job you are doing on this project. It is just too bad that it's like you are having to do too much baby sitting work.

Yes, right now it sounds expensive. But once things are all worked out, this city and state will benefit from it's existance.

This will be in the form of a possible tourist attraction, an expansion of our medical R&D and an attaction of more talented people boosting our economy.

Who knows, depending upon how successful it is, then your name might end up in it's name. Creating a platform for yourself if you chose to further yourself in the local political areana.

Kudos to Doug Allen:

Sadly Doug failed to mention which developers might benefit from the 10x public transit efficiency scenario. Doug also failed to show any revolving door promotions for "experienced" members of the planning department.

Most importantly, Doug did not boldly declare how many (union) construction jobs could be announced at the groundbreaking ceremony.

Without addressing these nuances, Doug's proposal is dead on arrival.

You continue to have our support.

The tram project, is of course, in need of financial controls to prevent the City from taking it on the budget chin as the costs continue to climb.

There are enough financial advantages to those benefiting from the development, Dame, Williams,
OHSU, etc., for them to foot any increases in the cost.

$60 million would buy one heck of a fleet of earth-based transportation vehicles and go a long way to paying for the operation for decades to come ...as an alternative.

But Portland is into it now so controls are the next logical step, now that management is changing.

KG

Hi Sam,

For what it's worth, I support what you're doing with regard to the Tram.

PATI really dropped the ball on this. I attended the charrettes for the Tram and UN Studio's proposal was far and away the best proposal, in both world-class design and technical ingenuity. Plus they had the most relevant experience with infrastructure design.

Angelil/Graham's presentation was full of esoteric imagery (rubber bands and ballet dancers?) but not much substance. And they were the only ones who didn't even address the cost issue. Not even a crude estimate.

It really bothered me that PATI didn't follow their own selection criteria when they fell for Sarah's snow job and her supposed "local connection".

Anyway, just thought I'd vent a little, since it seems like the "in" thing to do right now. I'm holding out hope that the final product will look better than was originally proposed, but as far as PATI and the other individuals responsible, give 'em hell.

Hal

Sam

With all due respect, it's way to early to write this: The new tram project staff is doing a great job.

They've been on the job two days.

Heads had to roll, but I think this issue will continue to be very contentious. The staff replacements are only a start.

Dear User:

Thanks for the comment. The 'new staff team' that I mentioned have been on for a couple months: Rob and Art. We have not yet replaced Vic or John.

Sam

Is the price really going to go over 50 million?

Couldn't the cynical mind view this as simply rearranging the deck chairs on the Titanic?
http://www.commissionersam.com/sam_adams/2005/12/portland_aerial.html
The former Tram manager Don Irwin, a Tri-Met employee is moving over to handle the Interstate-205 Light Rail and Downtown Transit Mall.

His replacement Robert Barnard, a manager with the Portland Office of Transportation for more than 13 years who worked on major projects such as the Oregon Convention Center and the Eastbank Esplanade.

“Having a project manager with Rob’s qualifications will ensure responsible management of this challenging and complex project,” said Commissioner Sam Adams. “Don’s attention is now needed on two other projects critical to the City and Tri-Met: I-205 Light Rail and the Downtown Transit Mall. I look forward to working with Rob and our new board members as we make this unique transportation solution a reality.”

Crtitical to the City? Solution?

I have watched the tram project with morbid interest ever since it was just a sexy idea rattling around the Office of Transportation and a bad dream for Gibbs Street homeowners. My perspective is unique. I was one of those Gibbs Street homeowners and was employed by the City with access to PDOT. I am also an experienced professional engineer and construction manager. From the very beginning, I believed the real tram project would cost at least $40 million and I was not alone. I also knew my neighbors in No Tram would be overwhelmed by the City's lust for development at all costs. It wasn't pretty foresight and it has become ugly reality. Cost forecasts doubled and redoubled and they are still only forcasts. But recently things have taken an interesting turn.

I applaud Commissioner Adams' support of a pre-construction project audit. I've worked with Pinnell and Bush and know they are capable of producing a comprehensive independent product. It would be well if Pinnell-Bush's audit went beyond determining projected costs and sources of funds. The City would benefit from knowing how the projected project costs came to grow to what they are now. Start with the original engineering feasibility study if indeed there was one), scrutinize each status report to date, and thus define the process that has been used. Then compare it to industry standerd criteria for project development. I'm sure it would be interesting to say the least.

In starting with a palatable "political" cost estimate that eventually goes through the roof, Portland embarasses itself. Anyone who knows anything about implementing facilities recognizes this as either stupidity or fraud or both. Please take a hard look at the process that has put egg on Portland's collective face.

Thanks Sam for standing up and raising your voice. My mother lives at the corner of Corbett and Gibbs and has been an active voice in how are we to pay for this project. It has gotten way out of hand and needs someone like you to state the facts.

In support,
tamara marshall

Thank you Sam for all your efforts to control the costs of what has become a sham of a tram budget. I personally testified against building this so called “Postcard” when it was
before the City Council believing other less costly and less intrusive options were available to connect OHSU with the South Waterfront. At this point, any additional money needed to complete the project should come from the primary beneficiary, OHSU. No additional money should come from taxpayers.

I also believe there were too many competing conflicts when the tram was proposed to have a rational discussion about other options with the public and neighborhoods. Vera wanted her postcard at any price, OHSU was unwilling to consider any other options and potential developers in the South Waterfront saw a glitzy tram as a subsidized way to promote the area and make even more money on the housing they build.

The last conflict is one that the citizens and taxpayers of Portland should have grave and continued concern about. Developers such as Homer Williams have way too much influence at City Hall. It is almost like they have their own private offices in the building. There must be greater distance than just the current arms length connection between developers, city employees and elected officials. Taxpayers can no longer afford to give away the perks these people receive. Instead of gouging more money out of Portland taxpayers for schools, the moratorium on tax abatements must be made permanent. If at all possible, those in place should be repealed. When million dollar property owners don’t pay their fair and responsible share for government services, it hurts everybody.

Doug Allen: your comments are thoughful.One point I disagree with in your comments is "shuttle bus idea was a big waste".

For many, the shuttle bus was an interim solution until NM substantially developed (and the other public needs are in place or started-parks, greenway, transportation solutions, etc.); and these ideas that you include, plus the tram, could be carefully considered.

Also, you didn't explain the technology connections at Barbur and Ross Island-was it Howell's suggestions? The neighborhoods did ask for exploration of other ideas including Howell's, as you said.

The shuttle buses could also achieve the inter-modal connections at Barbur and Ross Island that you mention. Plus, buses could better distribute people at both OHSU and NM, and importantly, in between. Most people forget that the walking time with the tram to other parts at both OHSU and NM will approach 20 minutes, or need a second means of distributing people. In NM the future trolley can distribute people somewhat, but it doesn't go everywhere like a bus can. Also, not all circumstances (like some wheel chairs, medical cases, guerneys, etc.) can be distributed by trolley. Same goes when you arrive at pill hill Imagine a major heart condition patient w/respiratory problems getting to the VA from the OHSU terminal with a walker vs. a shuttle bus dropping the patient off right at the VA. Thanks

Sam, contrary to some of the posts: changing guard at URAC has some benefits (thank you), and we need accountibility. But the issue is still; should the Tram be built? Your office recently did studies of the feasiblity of stopping the tram ($6M). It should still be up for discussion, now. NM URAC in Decembers meeting asked for a true life-cycle cost for the tram from 20 years to 50 years. An honest evaluation should be made using life-cycle cost analysis compared to the stopping or delaying the tram. A rough estimate of a 20 year life-cycle cost for the tram is $216M-compare that to stopping the tram.

And compare that to the minimum $7.5M that taxpayers have already contributed to the tram in right-of-way costs, land costs, etc. See bojack.org for analysis. This doesn't include the NM $3.5M taxpayer contribution already on the table. Thanks

Sam,

I regret that the tram project has been so poorly concieved and managed by the City of Portland PATI and its architects.

The idea of a tram has validity, though other options were not adequately explored. Precedents for climbing the hills such as an elevator exist both in Oregon City and a couple of hillside apartment buildings here in Portland. There is no perfect solution, given the challenge of crossing the horizonatal distance over the freeway and climbing the hill.

The international competition was a very important and radical step for Portland, one which offered ideas that should have been more completely explored. I hope that the city will not turn from competitions in the future as a result of the experience with this one.

It should have been obvious that the tram idea and its budget had flaws. Trams are very unique structures, which place huge stresses on the cables and support structures employed. Like suspension bridges, they need very solid ground in which to anchor. The fill of the Willamette River bank, and the soft soils and bedrock of Marquam Hill offer no such stable ground for foundations. Thus, extra cost would be required to build the foundations as compared to trams anchored in the Rockies or the Alps. It seems this consideration was fully overlooked in the original budget.

The selected design concept proposed wood poles, lashed together like bundled kindling, for the tower structures. It was a ridiculous and illogical solution, based not in engineering principles but architectural fantasy. It has predictably proven un-achievable as envisioned.

Trying to keep the intent of the design concept in subsequent cost cutting versions has added to the cost and has resulted in a design that is ungainly, awkward and ugly. Not the "postcard" picture sold to the city.

Rick P

Jerry makes a good point. Perhaps I was too harsh on the shuttle bus -- he is right that distribution is still a problem at both ends.

Regarding technology, Howell's published idea did not include a connection at the Ross Island bridge head, but it was brought up in the design competition. Both Detroit and Minneapolis airports have "trams" that are driverless, hauled by cables, have level boarding, and are capable of operating around curves. The Detroit one was built by Otis Elevator, and operates on air cushions over a distance of almost a mile. The Minneapolis one uses wheels on steel rails. I would imagine that the vertical connections would be similar to the Washington Park Zoo Max station elevators.

What boggles my mind is that South Waterfront/North Macadam is being developed to densities similar to downtown, yet the Tram is worthless at providing transit access.

Jerry's points regarding cost are crucial. Public agencies tend to forget that sunk costs should be irrelevant for making decisions. Only future costs should count. It is the increment beyond the $6 million cost of stopping the Tram, for completing and operating the project, that should be compared with the future benefit. Pinnell and Bush are wasting our money if they are investigating some other question. Having taken a class in Engineering Project Management from Steve Pinnell himself at PSU, I expect he would agree on this.

Sam:

Did the CoP have an Architect or Engineer on staff (or contracted exclusively by CoP) to offer critical and technical oversight of the design competition?

If the design award was made without active participation of a skeptical -- dare I say "objective" -- Architect or Engineer, it's no wonder the budget is subject to ongoing revision.

Cost increases in the Tram Project.
1) US Dollar vs Swiss Franc: Swiss franc has gone from 1.15/$ in March 05 to 1.26 today, a move in our favor.
2) Inflation: CPI is 3%
3) Price of Steel: Market price for structural steel has gone from $644 per ton in March 05 to $614 the last I could find in October 05.
Worst case, these three costs would run the $15M proposal to $20M.
I know! It's the cost of the computer software to safely run the gondola. Sten proved that by buying a package that was not yet done for the water bureau, Las Vegas did the same thing with their new monorail.

I still say buying a fleet of Stretch Hummers with a squad of drivers on three shifts, even assuming insurance, fuel, and replacing the vehicles annually, driving on a 10-minute schedule round the clock over the 20-50 year life of the gondola would be a more effective plan. And they would run in snow.

Sam,
For a city without a research university...a show-stopper for economic development in the 21st century...the quibbling for the tram budget seems foolish. Looking at the big picture, OHSU had better be a big part of our future, or that future will be bleak. Connecting OHSU to South Waterfront is just a no-brainer.
Its ironic, but a lot of the tram costs are due to design that was driven by neighborhood concerns. The tram is a clear case where the greater good trumps the neighborhood. Sorry. And many of the opponents are the usual suspects who oppose any public investment in anything.

Please Lenny, we already fund OHSU with tax dollars. Why do we have to give them even more breaks? There are tons of businesses out there that grow and invest without us helping them. Why don't we let OHSU fund their own research facility?

Moreover, SoWa could have been a completely private development; able to pump millions of $$ into the economy and tax rolls. But the privatized plan didn't fit Vera, Sam and Eric Sten's 'vision' of the city. Now SoWa just feeds the big-business piggies our hard earned tax money.

If I was a Democrat (like Sam, Vera and Eric) I'd be outraged. Funny how they support this.

If we allow the buildings heights up to 750 feet, SoWa wouldn't need subsidies and we could require the developers to dump some of their windfall profits into neighborhood improvements, like the tram and PS park. However, than the NM neighborhood would scream about "their" views being blocked. For the city council contribution of $3.5 million the neighbors preserved some of their "if I stand on my tiptoes I get a tip of Mt. Hood" view as the building heights have been limited to 325 feet.

This is a classic example of having cake and eating it too. No Tram $$$ or even infrastructure $$$ from the city but they also want to dictate than the height, floorplate and sitting of the towers. I guess the real rage should be directed at those greedy residents that would rather the city subsidize their views instead of letting the real market forces control the look, and infrastructure of the neighborhood.

Lenny Anderson | Jan 24, 2006 2:55:22 PM: For a city without a research university...a show-stopper for economic development in the 21st century...[snip] .. Looking at the big picture, OHSU had better be a big part of our future, or that future will be bleak.

JK: How does losing a tax consumer make our future bleak? My impression is that they pay no property tax, no income tax. What tax do the generate for the city? What income does their research generate for the city? Why can’t they expand on the hill? What kind of a new road can they put in to get to the hill without going through neighborhoods for $100 million (cynical guess at final tram cost.)

Lenny Anderson | Jan 24, 2006 2:55:22 PM: The tram is a clear case where the greater good trumps the neighborhood. Sorry. And many of the opponents are the usual suspects who oppose any public investment in anything.

JK: Thanks Lenny for a clear statement of a situation that is better applied to our general transportation needs throughout the city: ROAD CAPACITY. I hope you won’t be one of the opponents.

MarkDaMan | Jan 24, 2006 4:15:53 PM: If we allow the buildings heights up to 750 feet, SoWa wouldn't need subsidies and we could require the developers to dump some of their windfall profits into neighborhood improvements, like the tram and PS park.

JK: Where have you been all those years? The original owners proposed a plan around ten years ago that would be built WITH NO SUBSIDIES. It wasn’t dense enough for our former mayor, so it was rejected. It would have been paying taxes all these years, instead of consuming tax money for the next 30 years. That is a good example of the mismanagement that caused Portland to be BROKE.

Thanks
JK

Shuttle? That's not a bad idea. I bet you could contract Trimet to run a shuttle to OHSU for quite some time for 50 million.

It could even an airbrushed photo of Sam on the side.

From 15 to 50? WOW!!

Even Eric Sten did not let things get that far our of control.

"If we allow the buildings heights up to 750 feet, SoWa wouldn't need subsidies..."

HAHAHAHAHA!!! Let's see a cite for that whopper, Mark!!

Thanks for standing up against the developer stooges on this project Sam. You are the first person in the four-year history of this project who has been willing to hold anyone accountable for its mismanagement.

Vera Katz (the wicked witch of the Tram) is the single biggest reason we're in this mess. She and Neil had the Tram on fast track authority, neighborhoods and naysayers be damned.

Sam was her Chief of Staff, but says he was "out of the loop" while her number one priority was in its infancy? If you believe that one, then we should discuss the many advantages of owning a bridge, we call the "Sellwood"...Attractive lease or finance terms available.

Have no fear, Sam is here! And he's kicking ass and taking names.

Ironically, with the rising Tram budget(construction and operating budget), they probably could have replaced the Sellwood Bridge for less money.

I will put Mayor Katz up against any mayor this City has had since WWII (or before for that matter), Neil G. included. She was a doer, a straight shooter and served this City with distinction. Had she been healthy enough to run for another term, she would have won hands down. Give her the credit and honor she deserves, even if you don't care for all of her decisions.
PS Get over the Tram and start worrying about the $1Billion plus Columbia River Crossing that ODOT/WSDOT are cooking up...it will dump 20K more cars onto Portland's streets.

The Tram Documents, all Tram related city resolutions and ordinances RES No. 36071 05/23/02 THRU ORD. No.179537 08/24/05 WITH copies of contracts are now on line at:

http://www.portlanddocs.com/tram1/index.htm

Sam Adams was nice enough to loan me the three ring binder and I scanned them over the weekend. The files are PDF page images with OCR text behind the images so that they are text searchable. Note the accuracy disclaimer on the web page.

Thanks
JK

Lenny Anderson | Jan 30, 2006
I will put Mayor Katz up against any mayor this City has had since WWII . . . She was a doer, a straight shooter and served this City with distinction.

JK: "with distinction!" -- The distinction of developer deals made in her office for the rubber stamp of the council (Per Leonard post on Bojack) -- Right on: "with distinction!" A big part of why Portland is broke and looking for new taxes - she gave over $50 million PER YEAR to promite turning Portland into New York/LA (take your pick)
Lenny Anderson | Jan 30, 2006
PS Get over the Tram and start worrying about the $1Billion plus Columbia River Crossing that ODOT/WSDOT are cooking up

JK: A good first step in solving Portland's "worst in the nation increase in traffic congestion" problem. Or do you advocate everyone get out of their cars and onto a bike at the city limits?

PS: Lenny is paid anti-driving advocate, I am not paid for any advocacy.

Thanks
JK

Lenny Anderson | Jan 30, 2006
I will put Mayor Katz up against any mayor this City has had since WWII . . . She was a doer, a straight shooter and served this City with distinction.
JK: "with distinction!" -- The distinction of developer deals made in her office for the rubber stamp of the council (Per Leonard post on Bojack) -- Right on: "with distinction!" A big part of why Portland is broke and looking for new taxes - she gave over $50 million PER YEAR (UR taxes diverted) to promite turning Portland into New York/LA (take your pick). Details at www.SavePortland.com.
Lenny Anderson | Jan 30, 2006
PS Get over the Tram and start worrying about the $1Billion plus Columbia River Crossing that ODOT/WSDOT are cooking up
JK: A good first step in solving Portland's "worst in the nation increase in traffic congestion" problem. Or do you advocate everyone get out of their cars and onto a bike at the city limits?

PS: Lenny is paid anti-driving advocate, I am not paid for any advocacy.

Thanks
JK

I took my 6 year old and two of her friends on the tram and all were impressed and enjoyed the ride and the view.

I was just wondering why the tram couldn't be operational on Sundays to capture tourist dollars and do maintence late at night?

Thanks