Portland school board approves five-year owner's-rep contract with Presidio after heated debate

Portland Public Schools voted Dec. 2 to hire Presidio as the district's owner's representative to manage bond program delivery, approving a five-year contract that the superintendent said is intended to bring consistency and stronger oversight to projects long beset by delays and cost increases.

The 5-2 vote authorizes a contract structured as a percentage fee on remaining unspent budgets tied to the four named projects (three high schools and the Center for Black Student Excellence) and includes incentive provisions intended to encourage on-time completion, the district's senior counsel said. Superintendent Cheryl Armstrong said the decision responds to an external performance audit and a string of cost increases and schedule slippage on prior modernization projects, including a reported $55 million contingency on Jefferson High School and $25 million for Harrison Park.

"These are not abstract issues," Armstrong said in presenting the resolution. "They are lived delays that affect students, families, and educators every day. Our students cannot wait and they shouldn't have to." (Doctor Armstrong, SEG 1916-1924)

Presidio's leadership described its K'12 experience and local commitment during a public presentation. Brian Johnson, Presidio president, emphasized the firm's portfolio of districts and the desire to hire locally and support local subcontractors. Sarah Norman, the district's interim leader for operations, joined both district and Presidio staff in answering detailed questions about the contract and transition plans.

"We have the expertise to manage this bond program," Johnson said. "At the end of the day, we want to make sure that we provide the right buildings for the students." (Brian Johnson, SEG 2025-2034)

Board debate focused heavily on timing and cost. Several directors urged a short delay to allow staff to produce a comparative cost analysis and to gather public records and more time for public review. Director LaForte moved to postpone the vote, arguing the board needed more time to determine whether the percentage-based approach represented good value for taxpayers. That motion failed. Directors who opposed the contract vote cited limited review time and unanswered cost questions; those who supported the contract pointed to the district's protracted program timelines and an urgent need for capacity to complete the slate of projects.

Legal counsel and procurement staff emphasized three contract points: fee calculated as a percentage (up to 4%) of remaining unspent budget on the designated projects (not total budgets), a five-year term subject to earlier completion, and a 30-day termination clause that provides the district a path to end the relationship if performance fails to meet expectations. Counsel also noted the contract subtracts costs for PPS employees who continue working on the projects from any Presidio fee calculation, which staff said makes a headline $61 million payment mathematically unlikely.

The board approved the resolution 7 2 1 6 by a 5-2 vote. Two directors voted no, citing the need for greater transparency and a competitive cost comparison before committing the funds.

What happens next: Presidio will begin what staff described as a hybrid model of program management with PPS staff. The contract includes reporting obligations, and staff told the board the district will continue to reconcile older bond programs so unspent funds can be moved into new projects when formal closeout is complete.

The vote concluded one of the meeting's most contested agenda items and sets the stage for the district to coordinate planning and procurement for three major high-school projects and the CBSE site acquisition.