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The Portland City Council on Wednesday accepted a Guaranteed Maximum Price (GMP) increase for the Bull Run filtration project and another for the Bull Run pipelines project. Combined, the projects鈥� total cost is now expected to be approximately $2.13 billion.

The City Council accepted a GMP of slightly more than $1 billion from the joint venture of Colorado-based MWH Constructors and Kiewit Corp. and amended the total contract amount to $1.29 billion for construction of the second and final phase of the filtration project.

In addition to MWH-Kiewit JV, the project team includes聽Brown and Caldwell聽(program management), and聽Stantec听补苍诲听Carollo Engineers聽(design). Also,聽MWA Architects聽supported the engineering team.

MWH-Kiewit JV鈥檚聽plan calls for 26 percent of hard construction costs to go to contractors certified by the Certification Office for Business Inclusion and Diversity (COBID).

The City Council also accepted a GMP of $330.2 million from Bull Run Conveyance Partners 鈥� a joint venture of J.W. Fowler and MWH Constructors 鈥� and amended the total contract amount to $382 million for construction of the second and final phase of the pipelines project. It was designed by Jacobs of California.

Bull Run Conveyance Partners鈥� plan calls for 34 percent of hard construction costs to go to COBID-certified contractors.

In June 2023, the City Council authorized some early work packages for the filtration facility and pipelines, along with the first GMPs. At that time, the council authorized the Portland Water Bureau to return with second GMPs, which would allow the bureau to enter the construction contracts to start construction, its deputy director, Edward Campbell, said during Wednesday鈥檚 meeting. According to the projects鈥� website, current work includes construction of roadway improvements and site preparation for both projects.

Market conditions are impacting costs of projects across the country, including those at Bull Run, the Water Bureau鈥檚 chief engineer, Jodie Inman, said. Key cost drivers include market capacity as well as supply chain issues and inflation.

In the Bull Run Treatment Projects annual report, the City Budget Office noted that a project鈥檚 cost can still increase after approval of a GMP. Change orders can arise from unforeseen challenges related to the job site or rescoped needs. The Water Bureau has $103.8 million set aside to cover unexpected filtration project costs.

The Water Bureau also plans to pursue a second low-interest federal Water Infrastructure Finance and Innovation Act loan for between approximately $325 million and $350 million. The bureau has already received one such loan for $727 million.

The Water Bureau plans to increase water rates annually by 7.9 percent in the 2024-25 fiscal year and then by 8.1 percent in the following four fiscal years. People who gave testimony during Wednesday鈥檚 hearing focused on the rate increases for residents.

Mayor Ted Wheeler expressed the need for an independent financial analysis to keep an eye on every potential cost increase, make sure the project is in clear alignment with its objectives, and ensure the city is transparent with the community in its involvement.