RECOVERING THE COSTS OF CONSTRUCTION INSPECTION AND SUPERINTENDENCE SERVICES FOR PUBLIC STREET IMPROVEMENT PROJECTS
Administrative Rule Adopted by City Council
These administrative rules are intended to provide clear and consistent guidance for the recovery of engineering and superintendence costs during the construction phase incurred by the Bureau of Transportation to permit, inspect and accept improvements to the public street system. See Administrative Rule TRN-3.404 for cost recovery during the design phase.
Portland City Code Section 3.12.010 establishes the authority of the Director of the Bureau of Transportation to adopt administrative rules.
C. GUIDING PRINCIPLES
The Bureau of Transportation will be guided by the following principles when implementing these administrative rules:
1. Cost recovery methods will be transparent, well-documented, and easily explainable to permittees.
2. Cost recovery methods will be consistent with the best management practices of municipal utilities.
3. Cost recovery methods will be undertaken in a manner that promotes administrative efficiency, effectively recovers the Bureau’s engineering and superintendence costs, and assesses costs equitably and accurately to permittees.
D. ADMINISTRATIVE RULES
a. At the conclusion of the design phase, the person desiring the permit must submit a deposit. The deposit will be based on the estimated Bureau costs of construction inspection and superintendence for the construction phase as determined by the City Engineer.
b. Estimated Bureau costs may include, but are not limited to, required staff time, materials and supplies, services, equipment and other assets, administrative costs, and overhead.
c. The Bureau will use the same method for calculating the estimated Bureau costs as that used to determine the final costs of construction inspection and superintendence services.
d. All deposits must be made prior to permit issuance.
2. Accounting Requirements
a. The Bureau will maintain detailed cost recovery records for each public street improvement permit.
b. Records will include staff hours, expended materials and supplies, services, the use of equipment and other Bureau assets, and any other documents that support the final calculation of charges.
3. Final Charges
a. Prior to the issuance of the certificate of completion, the City Engineer will calculate final engineering and superintendence charges based on Bureau records of staff time, materials and supplies, services, equipment, and other Bureau assets expended on behalf of the public street improvement project, administrative and other costs, and overhead.
b. The Bureau will limit billable overtime hours to overtime work performed at the request of the permittee or in response to events caused solely by or on behalf of the permittee. The permittee will be given reasonable prior notice of instances requiring the use of overtime labor.
c. Materials consumed will be at actual cost including delivery to the City.
d. Services from other City bureaus will be at actual cost determined in accordance with Portland City Code Section 5.48.070.
e. Services provided from non-City sources will be at actual cost to the City.
f. Motorized equipment, trailers, etc., will be actual time at rates for each particular class of equipment established by the Director of the Bureau of Transportation.
g. The City Engineer will calculate the final charges as set forth above. All remaining balance, after payment of all costs, will be returned to the permittee. If additional funds are required of the permittee, they will be paid prior to the issuance of the certificate of completion.
Ordinance No. 187486, passed by City Council December 9, 2015 and effective January 8, 2016.