Tram Audit Findings Support Adams' Actions

By Tom Miller

On Wednesday, February 01, 2006 the Portland Development Commission (PDC) released the findings of the audit it commissioned at the direction of Portland Mayor Tom Potter and City Commissioner Sam Adams to review the Portland Aerial Tram project.

The audit, completed by independent consulting firm Pinnell/Busch, Inc., had 5 key findings, each of which supports prior and continuing actions taken by Commissioner Adams. Commissioner Adams, in his capacity as transportation commissioner, serves as the city’s liaison to the tram project.

The audit’s 5 key findings, along with Commissioner Adams’ actions, are described below:

Audit finding #1: Anticipated project completion cost is $50 million. A $5 million contingency fund is recommended.
Adams: In December 2005, former project managers discussed a $45 million cost estimate to complete the project. Based on the project’s history of inadequate cost estimates, Adams warned of potential inefficiencies, supported PDC’s suggestion for a third-party project audit, and has insisted on establishment of a contingency fund.

Audit finding #2: Project development is too advanced at this stage to render significant cost savings through value-engineering efforts.
Adams: Upon assuming the responsibility of transportation commissioner in July 2005, Adams consistently has sought to reduce project costs through value engineering. To date, total estimated savings obtained through value engineering are $9,622,389. Upon conversations with project architect Sarah Graham and project manager Rob Barnard in December 2005, Adams focused his attention from value engineering to improving project management through key staff changes and additional staff resources.

Audit finding #3: Successful project completion is possible.
Adams: Adams announced his support for tram development as a candidate for city council in 2004. Over the last two years, Adams consistently has supported tram development as essential to growing Portland’s living wage job base through the expansion of Oregon Health Sciences University (OHSU), the city’s largest employer, and further development of the South Waterfront District. The audit’s finding that project completion is possible corroborates Adams’ view that tram development is a net benefit for the city.

Audit finding #4: The biggest risk to project completion is delay.
Adams: At Commissioner Adams’ direction, project manager Rob Barnard has added 3 full-time and 2 part-time staff members. The team works approximately 60 hours/week. Per Barnard’s recommendation, the contractor has added 4 additional staff members.

Audit finding #5: Identified risk factors must be managed immediately. The primary risk factors are: (a) the need to select an operation team as soon as possible;
(b) the need to secure required permits to run the tram over Interstate 5 as soon as possible; and (c) the need to provide more staff to project construction teams working to add an additional staff.
Adams: OHSU is preparing to issue a request for proposals (RFP) for a tram operator. The operator will be on board by May. Project staff is working with ODOT to finalize the Intergovernmental Agreement and permit. Project Manager Rob Barnard is working with Kiewit to bring on additional staff to support the project.

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Posted Wed, 02/01/2006 - 6:35pm.

re: Tram Audit Findings Support Adams' Actions

Submitted by Jack Bog on Wed, 02/01/2006 - 8:05pm.

Oh yeah, you're doing a heck of a job, Brownie.

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re: Tram Audit Findings Support Adams' Actions

Submitted by Alice on Wed, 02/01/2006 - 8:14pm.

Based on all the Press Releases, it sounds like Commissioner Adams spontaneously appeared in City Hall in early 2004. Poooof! Where'd he come from?

Did the Chief of Staff to Mayor Katz have any role in Tram negotiations before 2004?

Does the $55 million include windshield wipers, or are they sold separately?

Do you think it would be easier to run an electric utility or build a Tram?

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re: Tram Audit Findings Support Adams' Actions

Submitted by tj on Wed, 02/01/2006 - 8:35pm.

Hey Alice...hmmm...where was Sam for two years while the tram costs started going through the roof? He wasn't working in city hall...hmmm...I wonder...

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re: Tram Audit Findings Support Adams' Actions

Submitted by Lenny Anderson on Thu, 02/02/2006 - 8:30am.

Sam,
Thanks for your efforts to move this project to completion.
I look forward to riding the Tram in the fall.

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re: Tram Audit Findings Support Adams' Actions

Submitted by Terry Parker on Thu, 02/02/2006 - 11:13am.

It’s Time to Talk Tram Tolls

Again, thank you Sam for your attempts to control the costs of this boondoggle project. As I have previously stated, I personally testified against building this so called “Postcard” at the public hearing when it was before the City Council. At that time, the atmosphere in Council Chambers was that OHSU, backed by Mayor Katz, were unwilling to consider any other option or alternative. South Waterfront developers seemed ready to support the project as a glitzy attraction that would boost the sale and rental prices of floor space in new condos and apartments. Dissenters of the tram were overwhelmed by the big dollars in play.

Given the price of this project is now approaching four times its original advertised budget, the taxpayers of Portland must NOT be the ones left hanging on the cable to pay the extra costs. As the primary beneficiary, OHSU should, and must step up with additional funds to cover the ever increasing costs. Right behind OHSU must be Williams and Dame, developers, who as the recipients of a string of tax abatements in the Pearl District have lined their pockets with taxpayer subsidized wealth. It is time these guys returned some of those riches to the people of Portland.

The tram is basically a sky bridge linking Pill Hill with the South Waterfront. If either OHSU or Williams and Dame do not come forward with additional funds to cover the escalating costs, then a trambridge toll MUST be enacted when the tram is completed. No less than a $5.00 user fee must be implemented. The fare would be good for one hour from the time purchased. That way anybody using the tram to commute would end up paying the hour fare rate at least twice a day. Tri-Met fares would NOT be transferable because the purpose of the toll is to pay off the bonds for the tram. Anybody using the tram on a regular basis could be issued a swipe cared that would automatically compute all their toll charges. Bringing a bicycle on the tram would be an extra charge. Any draw from tourists would also be helping to pay for the tram. If OHSU doesn’t like charging their employees for the ride, tough cookies, step up with the cash. It is not up to Portland taxpayers to bail out OHSU, or subsidize Williams and Dame projects.

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re: Tram Audit Findings Support Adams' Actions

Submitted by Roland Chlapowski on Thu, 02/02/2006 - 3:43pm.

Just so it is out in the public record:

Sam left his job with Vera Katz for two years before he ran for Council and eventually was elected. He wanted to get intimate with the parts of Portland that are hard to see when you are working in City Hall. He wanted to get to know the grassroots of Portland, which is commendable.

His last day in City Hall was August 11th, 2002. The tram came before Council on August 14th, 2002. Sam should be commended for taking on a difficult project (that he previously hadn't worked on or had in-depth knowledge of) and learning the ins-and-outs of the project. He took a hard look at the facts and made the tough decisions needed to ensure compentent management.

I understand that people want scapegoats, but Sam is not your man, guys. He has made difficult governing decisions in the interest of the public, even though it has made some pretty big names in Portland mad. He continues to do what is right for the the City of Portland even though many people in the press don't appreciate that. Sam deserves a little credit, or at the very least, a break.

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re: Tram Audit Findings Support Adams' Actions

Submitted by Alice on Sun, 02/05/2006 - 6:49pm.

We still don't know if the $55 million includes windshield wipers. If so, will they be included on the sides of the tram, or just on the ends?

I wouldn't buy a $5,500 car without them: I don't know why you'd spend $55 million and not recognize the tourists may not want a bunch of rivulets of Oregon Sunshine in their "Postcard Photos"...

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re: Tram Audit Findings Support Adams' Actions

Submitted by Alice on Wed, 02/08/2006 - 12:09pm.

Roland noted above:

Sam left his job with Vera Katz for two years before he ran for Council and eventually was elected.

You need to check your facts. I spoke with several sources who said that Sam didn't step down (as Chief of Staff to Mayor Katz) until August 2003, not 2002 as you noted above.

Given the tram "came before the council on August 2002" may we assume that Sam's fingerprints are all over it. After all, SoWa and the Tram were the Mayor's biggest development project, and he was her Chief of Staff.

Maybe you should ask him again: are you sure he didn't play a teeny tiny role in all the back-room wheeling and dealing that took place outside of the public council meetings? Maybe we need an FIA request for all CoP emails or calendars that mention the word "Sam" and "Tram" on the same page? That would be interesting.

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re: Tram Audit Findings Support Adams' Actions

Submitted by Alice on Tue, 03/21/2006 - 9:44pm.

BREAKING NEWS...

Sam had left Vera's office about a year and a half before he was elected and entered office in January 2005, so the tram never came across his radar - because of that, we are learning a lot about the project now that Sam wasn't involved with and hadn't seen before. It's been quite a learning process!

Posted by: Roland | Mar 21, 2006 10:23:36 AM

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re: Tram Audit Findings Support Adams' Actions

Submitted by Alice on Tue, 03/21/2006 - 9:50pm.

Which Tram is Roland referring to when he said "The Tram came before Council on August 14, 2002"? The same one that Sam hadn't worked on 366 days later?

Sam officially resigned as Vera's Chief of Staff on August 15, 2003.

Two days earlier, on August 13, 2003 the below Agenda Items came before City Council:

*953-1 Adopt findings to approve an alternative contracting process and create an exemption to the competitive bidding of ORS Chapter 279 for the Marquam Hill Aerial Tram Project General Construction and Tramway Equipment Procurement (Ordinance 177795)

*958 Authorize agreement with Portland Aerial Transportation, Inc. for design, project management and expert tram advisory services for the Marquam Hill Aerial Tram (Ordinance 177797).

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