Budget Review | Fiscal Year 2018-19 City Attorney
Analysis by Jess Eden
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $13.0 $12.9 $12.9 $14.0 M $12.3 $11.8 $10.6 $12.0 M
$10.0 M
$8.0 M
$6.0 M
$4.0 M
$2.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
61.0 FTE 64.3 FTE 66.0 FTE 66.3 FTE 68.6 FTE 67.6 FTE
INTRODUCTION The City Attorney’s office has offered a reduction that would eliminate the Legal Records Request program and reduce 2.0 FTE. In addition, the office requested multiple support staff positions to help handle increased workload directly related to revenue generating activity. The requested budget creates a net increase of 3.00 FTE and $20,186, or 0.3% in ongoing General Fund resources. As a small, primarily internal service bureau, the City Attorney’s budget is largely composed of personnel costs which account for upwards of 80% of the budget. Further, the value of the service provided by the City Attorney is largely in staff expertise,
Office of the City Attorney 1 of 10 March 6, 2018 which is difficult to replace with technology. That said, the City Attorney has taken steps over the last year to leverage technology and data to increase efficiency. These efforts are discussed further in key issues and decision package analysis below. KEY ISSUES Technology The City Attorney took reductions to materials and services repeatedly over the last decade, reducing their external materials and services budget to cover only basic expenses. This has left them with no budget for larger one-time purchases such as software replacement. During the FY 2017-18 supplemental budget process, the City Attorney requested to carryover General Fund resources to replace two failing software applications. They have successfully replaced their litigation software and are working on replacing the practice management software.
Bureau Performance The City Attorney has consistently met or exceeded performance targets for the last three years. The requested budget appropriately reflects changes to performance targets based on the impact of funding decisions. The requested budget includes eliminating the Legal Records Management program which would cause the number of training hours provided by City Attorney staff to fall by approximately 25%. The total number of litigation cases is projected to increase 17% if additional revenue collections staff is added. The City Attorney is making positive changes to performance measures that will provide higher quality data. The number of litigation cases will be broken out into those brought against the City and affirmative litigation. Similarly, the City Attorney will work with CBO to introduce more nuance to the percentage of cases favorably resolved. The measure takes the total count of cases favorably resolved into consideration without addressing type or importance. The City Attorney is also leveraging technology to deliver trainings more efficiently.
Office of the City Attorney 2 of 10 March 6, 2018
DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
$538,725 General Fund General Fund Ongoing One-Time Other Revenues
$346,250 -$142,047 -$168,527
$162,233
$0 $0 $0
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
2.0 FTE 0.0 FTE 5.0 FTE Requested 2.0 FTE Requested Recommended Recommended
Eliminate Legal Records Management Program AT_01, ($310,574), (2.00) FTE To comply with budget guidance the City Attorney has submitted a 5% reduction to the General Fund portion of the City Attorney’s budget that would eliminate the Legal Records Management Program. The Program started in response to a steady rise in public records requests and a Citywide need to understand the legal obligations of information sharing. The Legal Records Management Program: . Provides training to all City employees on public records matters;
. Processes public records requests for elected staff;
. Assists bureaus with complex records requests;
. Manages the City’s public records management software system (GovQA);
Office of the City Attorney 3 of 10 March 6, 2018 . Manages the City’s Text-to-Archive system (SMARSH); and
. Represents the City in public records challenges before the district attorney - ultimately reducing City risk exposure.
In addition, the Legal Records Management team also runs a Help Line that is used most often by people from disadvantaged communities such as those who have difficulty using the Public Records Request (PRR) website, including deaf people, older people, limited-English speakers and people who don’t have access to a computer. This team also monitors an email address that can be used for non- English public records requests. The City offers the forms in 10 languages which can be sent to this team for a response. These services are distinct from the Archives and Records Management Division of the Auditor’s Office who maintains physical and electronic City records and sets rules around record retention but does not advise City bureau staff on how to respond to public records requests. If the Legal Records Management Program is eliminated, City risk exposure will likely increase, bureau and Council office workload will increase, and there are negative equity impacts associated with the elimination of the help line managed by the City Attorney. As such, CBO does not recommend this reduction. CBO Recommendation: $0, 0.00 FTE
Legal Services to Development Services for Vacant Houses Work AT_02, $165,250, 1.00 FTE This decision package continues an interagency agreement between the Office of the City Attorney and the Bureau of Development Services (BDS) for a Deputy City Attorney position that supports Portland’s effort to reduce vacant and abandoned houses by foreclosing on City liens. This position was funded on a one-time basis in FY 2017-18 and this package converts the position to ongoing. To date, the foreclosure and lien recovery work has brought in more than $737,000 in revenue from the successful foreclosure of ten properties to the City through Development Services and there are an additional nine properties undergoing review for foreclosure. In addition to generating revenue for the City, this position positively effects communities of color. Thus far, 90% of the properties pursued through the foreclosure process were in areas with higher representation of communities of color which then receive the benefits of vacant properties being returned to productive housing stock and reducing problems with squatters, criminal behavior, and unsafe or unhealthy conditions associated with these properties. The City Budget Office recommends this decision package. CBO Recommendation: $165,250, 1.00 FTE
Office of the City Attorney 4 of 10 March 6, 2018 Legal Services to Police for Policy Analysis AT_03, $181,000, 1.00 FTE This decision package continues one-time interagency funding between the City Attorney and the Police Bureau for a 1.00 FTE Attorney to perform policy analysis related to the Department of Justice Settlement agreement. The work includes researching relevant legal standards, synthesizing input from internal and external stakeholders, producing documents, ensuring that all necessary policies are drafted in accordance with the settlement with the United States Department of Justice (DOJ) and other legal requirements, and regularly and systematically monitoring legal precedent on law enforcement policies and tactics to update the Police Bureau. As discussed in CBO’s FY 2017-18 review of the City Attorney’s requested budget, general risk management principles and national best practices inform the decision to include an attorney in the process as there is a large volume of constitutional and statutory laws that apply to police operations. Including an attorney in the process increases efficiency by eliminating an iterative process. The City Budget Office recommends this decision package. CBO Recommendation: $181,000, 1.00 FTE
Collections Paralegal and Legal Assistant AT_04, $228,122, 2.00 FTE During the Fall Supplemental Budget process, the City Attorney requested (and received) General Fund resources for 1.00 FTE limited term paralegal to work on revenue collections and noted that they would likely request additional General Fund resources in the FY 2018-19 budget development process. This request changes the previously limited term position to permanent and provides ongoing General Fund resources for the position as well as an additional 1.0 FTE legal assistant. In CBO’s review of the Fall Supplemental Budget request, CBO noted the request highlighted the trade-offs between revenue-generating efforts and other core services within the Office of The City Attorney and emphasized the importance of efficiency in the endeavor. Subsequently, the City Attorney has examined activity related to revenue collections and developed a new strategy to address the backlog and increasing collections workload: . First, the City Attorney used success rates and time spent to review the cost-effectiveness of the collection efforts and best identify those matters with the best rate of return – establishing criteria that facilitates prioritization;
. Second, the office will realign staffing to ensure there is a team dedicated to revenue collections. As it currently stands, the work is handled by eight people who are otherwise engaged in providing other core services. These
Office of the City Attorney 5 of 10 March 6, 2018 eight people provide a total of 5.0 FTE worth of time toward revenue collections. The City Attorney’s Office states that a dedicated staff will provide more opportunity for consistency and the ability to identify additional process improvement. The proposed team would be comprised of five people performing the work of 4.5 FTE;
. Lastly, the office also identified that the composition of the dedicated staff would benefit most from being more heavily weighted with support staff who can provide high-volume, detail-oriented work at a lower cost than additional attorneys.
In addition to the actions proposed by the City Attorney, the new IRS data system (Revenue Bureau) will also increase efficiency in collection. From 2015-2017, approximately 592 cases totaling $2.7 million of business license tax revenue has been generated from the work the City Attorney has done. This averages approximately 200 successful cases and just under $900,000 per year. There are approximately 136 backlogged cases totaling $3.9 million that meet the previously mentioned criteria for prioritization and 263 backlogged cases totaling $1.2 million that do not meet criteria for prioritization but will be pursued in some manner. However, based on previous success rates and information provided by the City Attorney, the projected revenue from collections activity, if business as usual continued, is approximately $4.5 million. Without General Fund resources the City Attorney will lose 1.0 FTE paralegal that is currently working on revenue collections and will negatively impact these efforts. However, CBO believes that it is still feasible for the City Attorney to institute most of the suggested improvements within its existing budget. CBO recommends that the City Attorney move forward with the plan to restructure such that there is a dedicated team of people that work on revenue collections; to the extent that there is still additional collections work that would benefit from additional resources, CBO recommends that the City Attorney reprioritize existing activities to assign more staff since the City as a whole benefits from this work. CBO Recommendation: $0, 0.00 FTE
Contract Approval Paralegal AT_05, $126,586, 1.00 FTE This decision package adds 1.00 FTE Paralegal position to support the City Attorney in reviewing virtually every contract entered into by the City. Over the last ten years, the number of contracts reviewed in the City has climbed from approximately 5,700 per year to over 10,000. While this growth has slowed, the number of contracts is still increasing. Since 2014, the number of contracts reviewed has grown over 17%. The primary driver for the increased number of contracts that need review is a continued economic expansion which corresponds
Office of the City Attorney 6 of 10 March 6, 2018 to additional contracts for goods and services. Additional paralegal support would assist the City Attorney in implementing a number of process improvements that are anticipated to yield efficiencies: training videos for contract specialists in bureaus; improved internal communication protocols that ensure that contracts that have already been reviewed and negotiated by a bureau-specific lawyer can be approved by that lawyer – reducing duplicative efforts; building internal capacity among lawyers to provide assistance during peak demand times; cross-training both of the primary attorneys who perform contract reviews on specialized contracts. In addition to direct contract related support, increasing support staff frees attorneys up to provide additional legislative support through advice to City bureaus and elected officials. While it is clear this request has the potential to improve internal support of City functions, CBO does not recommend additional resources at this time due to funding constraints and this request did not align with the criteria outlined in the Mayor’s budget guidance. CBO Recommendation: $0, 0.00 FTE
Office of the City Attorney 7 of 10 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of the City Attorney’s total budget. Adopted Request Bureau CBO Total FY 2016-17 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Charges for Services $ 30,000 $ 100,000 $ - $ - $ 100,000 Interagency Revenue 6,224,862 6,232,499 346,250 - 6,578,749 General Fund Discretionary 3,191,303 2,867,083 20,186 (20,186) 2,867,083 General Fund Overhead 3,579,712 3,359,003 23,948 (23,948) 3,359,003 Total Resources $13,025,877 $12,558,585 $390,384 ($44,134) $12,904,835
Requirements Personnel Services $ 10,804,807 $ 11,020,751 $ 346,633 $ (23,257) $ 11,344,127 External Materials and Services 844,943 496,554 43,751 (20,877) 519,428 Internal Materials and Services 1,376,127 1,041,280 - - 1,041,280 Total Requirements $13,025,877 $12,558,585 $390,384 ($44,134) $12,904,835
Approximately half the City Attorney’s budget is comprised of General Fund resources, and the other half is through interagency agreements. Upwards of eighty percent of the budget is allocated for personnel services. There have been no large changes to the resource or requirement composition for FY 2018-19.
Office of the City Attorney 8 of 10 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of the City Attorney Adds
AT_02 - Legal Services to BDS for Vacant Houses Wor 01 1.00 0 0 165,250 165,250 1.00 0 0 165,250 165,250 AT_03 - Legal Services to PPB for Policy Analysis 02 1.00 0 0 181,000 181,000 1.00 0 0 181,000 181,000 AT_04 - Collections Paralegal and Legal Assistant 03 2.00 104,336 0 123,786 228,122 0.00 0 0 0 0 AT_05 - Contract Approval Paralegal Support 04 1.00 57,897 0 68,689 126,586 0.00 0 0 0 0 Total Adds 5.00 162,233 0 538,725 700,958 2.00 0 0 346,250 346,250 Reductions
AT_01 - Elliminate Legal Records Management 01 (2.00) (142,047) 0 (168,527) (310,574) 0.00 0 0 0 0 Total Reductions (2.00) (142,047) 0 (168,527) (310,574) 0.00 0 0 0 0
Total Office of the City Attorney 3.00 20,186 0 370,198 390,384 2.00 0 0 346,250 346,250
Office of the City Attorney 9 of 10 March 6, 2018 Office of the City Attorney 10 of 10 March 6, 2018 Budget Review | Fiscal Year 2018-19 City Budget Office
Analysis by Claudio Campuzano
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $3.6 $4.0 M $3.5 M
$2.7 $2.7 $3.0 M $2.5 $2.3 $2.5 M $2.0 $2.0 M
$1.5 M
$1.0 M
$0.5 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
13.0 FTE 15.0 FTE 15.0 FTE 15.0 FTE 15.0 FTE 16.0 FTE
INTRODUCTION The City Budget Office (CBO) has included a five percent reduction option, as required, which includes the elimination of one analyst position. In addition, CBO has requested a Capital Coordinator position to consolidate and enhance the work that CBO has been doing with regard to identifying Citywide solutions to funding the asset maintenance gap and prioritizing investments using newly identified Citywide resources such as Build Portland and Capital Set-Aside. Finally, CBO has also requested funding for a Citywide satisfaction survey to replace the survey that had been conducted by the Auditor for more than 20 years.
City Budget Office 1 of 8 March, 6, 2018 KEY ISSUES Budget Software Implementation and Ongoing Impacts In FY 2016-17, CBO received $1.0 million in infrastructure funding to replace its aging BRASS budget preparation and monitoring software. The software is not supported for Windows 10, the upcoming City standard. Moreover, the most recent upgrade that was performed in order to support Microsoft SQL Server 2008 does not support the reporting software. Consequently, the reports library has become corrupted and will cause increasing inefficiencies in budget production. Since receiving the funding, CBO developed business requirements for a new system and issued an RFP. The selection process is ongoing. According to the current schedule, CBO expects to select a vendor in March 2018, sign a contract in summer 2018, and finish implementation in winter/spring 2019. Implementation of this project will require considerable dedication of capacity within CBO, including project management and subject matter expertise. This will constrain CBO’s capacity to perform special projects or to continue the variety of pilot projects that have been underway in recent years including a Citywide process improvement training and support program, a Behavioral Insights pilot consisting of developing ‘nudge’ program interventions with accompanying low-cost evaluation, GATR (Government Accountability Transparency Results) sessions, and other efforts. The software replacement project has been identified by the City’s Chief Administrative Officer as a high-priority project for the Bureau of Technology Services. Between the BTS commitment and CBO’s staff commitment, there is a reasonable level of confidence in achieving a successful project on time. The budget for this project is currently a low-confidence estimate based off initial planning estimates when the initial request was made. The results of the ongoing vendor selection will yield a cost estimate of much higher confidence level. While there is a reasonable level of confidence that the current budget could be sufficient for implementation, many Software as a Service (SaaS) solutions have lower up-front costs but have considerable maintenance costs as a result of the vendor housing and maintaining all application infrastructure. There is a high likelihood that CBO will require ongoing funding for this potentially high maintenance cost.
City Budget Office 2 of 8 March, 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues $- $- $(18,295) $(21,705) $(53,950) $(64,008)
$114,495 $96,505 $69,063 $81,937 $- $-
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
The City Budget Office includes recommendations on its own decision packages below, but acknowledges the inherent conflict of interest when making recommendations on our own budget. We welcome any questions about the packages. Eliminate Financial Analyst (and Alternate Reduction: Hatfield Fellow) BO_01, ($117,958), (1.00) FTE This reduction would eliminate one of eight analysts dedicated to bureau analysis. The limited term analyst position is assigned to analyze a portfolio of bureaus and is responsible for various special projects. If eliminated, the portfolio and special project assignments will be transferred to other analysts. The increased workload on existing analysts will reduce the amount of time available for more in depth analysis and special projects as requested by Council. CBO recently consolidated budget monitoring coordination, data analytics, and project management for the budget software replacement in a single analyst, relieving them of bureau analysis responsibilities so that they could focus on process/systems and a successful technology implementation. Dedication of this analyst in this way would no longer
City Budget Office 3 of 8 March, 6, 2018 be feasible with the staff reduction and would increase the risk to the software implementation and decrease CBO's capacity to run an efficient and effective budget monitoring process. Alternately, CBO would not be able to be as responsive on special projects such as those driven by the multiple budget notes assigned to CBO in FY 2017-18. In light of the impending budgeting software implementation which will put enormous strain on staff capacity in the coming fiscal year, CBO does not recommend further reducing our capacity by taking this reduction. However, in recognition of the need to close the City’s General Fund gap, CBO has recommended an alternate reduction (BO_02) that would have a lesser impact on bureau capacity. CBO has, for a number of years, hired a Hatfield Fellow through a Portland State University (PSU) fellowship program. These fellows have been extremely valuable in increasing bureau capacity for special projects and have proven a strong entry point for becoming a permanent employee. Currently two staff members are former Hatfield Fellows. In recent years, the special projects have primarily been performance-related, particularly supporting Government Accountability Transparency Results (GATR) sessions. This work would continue to be performed by analysts who would in turn defer lower priority work in their respective workplans. CBO Recommendation: ($40,000) | 0.00 FTE
Capital Coordinator BO_02, $151,000, 1.00 FTE The City Budget Office is requesting an analyst, funded by existing Build Portland resources, to expand capacity to plan, prioritize, and evaluate the City’s major maintenance and capital asset needs. CBO currently manages the capital set-aside process and the Citywide Asset Managers Group, and has made significant progress over the last few years to prioritize capital spending across bureaus and develop funding options to address the infrastructure backlog. This position would put even more emphasis on that work while also working closely with OMF to help implement the Build Portland Initiative, particularly around the development and implementation of criteria that will guide budget allocation decisions. The position will also lay the groundwork for a citywide five-year Capital Improvement Plan. The position would perform the following functions: . Coordinate the capital set-aside allocation process;
. Convene the Citywide Asset Managers Group (CAMG) and lead the development of the annual asset report and presentation to City Council;
. Support Build Portland program development;
City Budget Office 4 of 8 March, 6, 2018 . Increase the capacity and consistency of CBO analysts to budget and monitor bureau capital programs;
. Develop Citywide funding solutions to achieving a sustainable level of service for City assets; and
. Lay the groundwork for a coordinated citywide Capital Improvement Plan.
The expected results of adding this capacity include: 1) more consistent frameworks, approaches, and communication through coordination of the CAMG, 2) more efficient and impactful investment through streamlined and robust prioritization, possibly through a consolidation and enhancement of Capital Set Aside and Build Portland prioritization methodologies, 3) greater oversight of allocated capital resources, 4) improved analytical capacity of all analysts working on bureaus with capital programs, 5) persistent and focused effort on identifying and advancing funding opportunities to close the long-term funding gap, 6) restored generalist capacity to focus additional effort on bureau-specific issues as various responsibilities are consolidated and enhanced in the new position. Between Build Portland and Capital Set-Aside, the City will likely be allocating over $1.0 billion over the next 20 years to capital projects. CBO believes an analyst position focused on deploying an improved investment framework and strict monitoring and project controls would yield a higher return on investment (ROI) than the current approach. A Capital Coordinator’s value would outpace its cost if its efforts produced just a 0.5% ROI over the next 20 years. CBO recommends this position and that it be funded with currently allocated Build Portland resources. CBO Recommendation: $151,000, 1.00 FTE
Citywide Survey BO_03, $60,000 CBO is requesting funding for a Citywide satisfaction survey to replace the survey that had been conducted by the Auditor for more than 20 years. The Auditor cut the survey in FY 2017-18. In discussions with other bureaus, CBO learned that the information from that survey was valuable and helped inform a number of bureau performance measures. Implementation of this citywide survey could be conducted with a portion of an analyst’s time, and would include structuring an RFP to engage an outside organization to conduct the survey. The survey helps Council and bureaus make decisions about priorities and appropriate levels of service. CBO would revisit the methodology of the survey to address concerns that had been raised by several stakeholders over recent years to ensure that the results are valuable and representative of the community. While a precise benefit-cost analysis is challenging, it is reasonable to assume that a
City Budget Office 5 of 8 March, 6, 2018 survey of this type could result in a considerable net benefit by providing the information necessary to avoid overinvesting in those areas where the public’s needs are already being met. Alternately, it could allow greater focus of resources or management effort on services where the City is underperforming. In light of constrained General Fund resources and the very recent decision by Council to accept this cut from the Auditor – an indicator of relative priority to other Citywide issues – CBO does not recommend this package at this time. CBO Recommendation: $0 | 0.00 FTE
SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of the City Budget Office’s total budget. Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Interagency Revenue 204,906 211,492 - - 211,492 General Fund Discretionary 1,549,656 1,090,477 42,555 8,213 1,141,245 General Fund Overhead 1,838,552 1,277,576 50,487 9,745 1,337,808 Total Resources $3,593,114 $2,579,545 $93,042 $17,958 $2,690,545
Requirements Personnel Services $ 2,079,215 $ 2,133,686 $ 29,028 $ 113,498 $ 2,276,212 External Materials and Services 1,281,700 224,232 65,844 (97,370) 192,706 Internal Materials and Services 232,199 221,627 (1,830) 1,830 221,627 Total Requirements $3,593,114 $2,579,545 $93,042 $17,958 $2,690,545
City Budget Office 6 of 8 March, 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses City Budget Office Adds
BO_02 - Capital Coordinator 01 1.00 69,063 0 81,937 151,000 1.00 69,063 0 81,937 151,000 BO_03 - Citywide Survey 02 0.00 27,442 0 32,558 60,000 0.00 0 0 0 0 Total Adds 1.00 96,505 0 114,495 211,000 1.00 69,063 0 81,937 151,000 Reductions
BO_01 - Eliminate Financial Analyst 01 (1.00) (53,950) 0 (64,008) (117,958) 0.00 0 0 0 0 BO_04 - Hatfield Fellow Reduction 02 0.00 0 0 0 0 0.00 (18,295) 0 (21,705) (40,000) Total Reductions (1.00) (53,950) 0 (64,008) (117,958) 0.00 (18,295) 0 (21,705) (40,000)
Total City Budget Office 0.00 42,555 0 50,487 93,042 1.00 50,768 0 60,232 111,000
City Budget Office 7 of 8 March, 6, 2018 City Budget Office 8 of 8 March, 6, 2018 Budget Review | Fiscal Year 2018-19
Bureau of Development Services
Analysis by Yung Ouyang
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $180.0 M $157.8 $157.8 $144.8 $160.0 M $140.0 M $122.0 $120.0 M $97.8 $100.0 M
$67.0 $80.0 M $60.0 M
$40.0 M
$20.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
262.5 FTE 333.9 FTE 360.1 FTE 407.4 FTE 435.6 FTE 435.6 FTE
INTRODUCTION As Neighborhood Inspections is the only Bureau of Development Services (BDS) program receiving an ongoing General Fund allocation, the bureau has proposed to reduce funding to it to meet the budget guidance that General Fund-receiving bureaus submit 5% reduction options. There would be no immediate reduction in services if the General Fund resources are decreased because the bureau would backfill the cut with funding from the program’s reserves; however, the program is operating at below cost recovery and will require fee increases over time. A reduction in the General Fund subsidy would exacerbate that issue. BDS is also
Bureau of Development Services 1 of 16 March 6, 2018 requesting to continue an Interagency Agreement (IA) with the City Attorney’s Office for legal services related to the City’s program to address dilapidated properties and the foreclosure process, as well as adding funds from the Office of Neighborhood Involvement to continue to provide that bureau with communications services.
KEY ISSUES Staffing and Recruitment In a series of Government Accountability Transparency Results (GATR) sessions held in January and April of 2017, bureaus responsible for development services (including BDS, BES, PBOT, Water, Fire, and Parks), the Portland Housing Bureau, CBO, and OMF explored development services performance and recommended solutions that may help accelerate the development review process and ultimately increase housing supply. A report on the findings was subsequently released.1 Some of the recommendations have been implemented, including the establishment of a Development Directors Group (including six bureau directors, their staff, and Commissioners’ policy staff representatives) that meets monthly to address development services performance, implement process improvements, problem solve, and increase coordination between the bureaus. Since development services bureaus will report progress on all GATR session action items at the follow-up session on April 2nd, 20182, this review will focus only on the issue of BDS staffing and recruitment. The lack of staff capacity in the Plan Review and Permitting Services Divisions has led to longer permit review times and customer dissatisfaction in the development community. The lack of qualified inspectors has resulted in longer wait times for building inspections, thereby holding up construction. This workforce challenge is not unique to BDS; the entire construction industry is facing workforce challenges. Nevertheless, the problem is not intractable; the City’s other public works bureaus, including Transportation, Environmental Services, and Water, have made significant progress towards filling vacancies related to the development process. If applicable, CBO recommends that BDS use the Development Directors Group to learn what strategies other bureaus have employed to successfully fill their vacancies. The BDS vacancy report for January 2018 indicated that the bureau had 80 vacancies, six above the December 2017 figure, out of 434.9 authorized FTE. Accounting for both hires and newly vacated positions, the total number of vacancies in the Inspection Services division increased by five, from 20 to 25, out of
1Strategies for Accelerating Housing Development Report: https://www.portlandoregon.gov/cbo/article/641311 2 Materials from GATR sessions are available here: https://www.portlandoregon.gov/cbo/72474
Bureau of Development Services 2 of 16 March 6, 2018 a total of about 181 FTEs. Similarly accounting for both hires and newly vacated positions, the total number of vacancies in the Plan Review & Permitting Services division stayed the same, at 23 vacancies in both December and January, out of a total of about 160 FTEs. BDS notes that it generally fills between five to ten positions each month. Although the bureau has filled about 91% of the positions that have been added since FY 2014-15, it is currently barely keeping pace with the new vacancies that occur as a result of transfers, separations, and promotions. While BDS will always have vacancies due to turnover, it is likely that service would significantly improve if the overall vacancy rate is reduced. While BDS is not requesting additional positions in the FY 2018-19 budget, the bureau plans to request an additional 11.0 FTE and convert 1.0 limited term FTE to ongoing during the 2018 Spring Supplemental, in addition the 2.0 FTE that were recently added by ordinance. Obtaining position authority and budget appropriation for these positions during the Spring 2018 Supplemental would enable the bureau to begin recruitment for the positions two months earlier than if they were added during the annual budget development process. Measures BDS has taken to address its recruiting challenges include: . Established a Senior HR Analyst working full-time with the BDS Recruitment & Hiring Team;
. Developed contracts with outside agencies to hire workers for specific job classifications which help BDS gain access to labor more quickly and allow it to use contract labor;
. Having continuously open recruitments for some classifications allowing the bureau to accept applications without starting over on the process each time;
. Expanding outreach for recruitments, including job postings in other cities, information sessions held in the community, and partnering with the Equity & Policy Development team for outreach opportunities;
. Collaborating with community colleges on their construction programs to ensure vocational training is adequate and to recruit young people to the construction trade.
CBO recommends that Council and bureau leadership continue to pay close attention to BDS’s staffing issues and explore innovative approaches to recruitment, including having BDS learn from the successes of the other bureaus involved in the development process as noted above, if applicable. Overall, performance of both the Plan Review/Permitting Services and Inspection
Bureau of Development Services 3 of 16 March 6, 2018 Services divisions are expected to either slightly improve over FY 2017-18 year-end estimate levels or remain similar.
Long-term FY 16-17 FY 17-18 FY 18-19 strategic goal Number of commercial inspections completed per inspector per day 13.35 13.5 13.6 14.0
Percentage of commercial inspections made within 24 hours of request 83% 85% 85% 98%
Percentage of pre-issuance checks completed within 2 working days of last review approval 62% 65% 70% 70%
Percentage of building permits issued over-the-counter (on the same day as permit intake) 54% 56% 56% 56%
Number of combination inspections completed per day per inspector 26.98 28.33 28.4 28.0
Thus, without considering industry standards and customer expectations, the main concern at this point is the percentage of commercial inspections made within 24 hours of request, which is expected to remain below the strategic target.
Land Use Services Program Funding Adequacy During the FY 2017-18 budget development process, the City eliminated its ongoing General Fund allocation of almost $1.1 million to BDS’s Land Use Services (LUS) program. The General Fund had been subsidizing the LUS program since at least FY 1999-2000, with the largest allocation in FY 2000-01, at $2.3 million. FY 2016-17’s allocation was only $394,946 due to a $55,730 reduction as well as a one-time transfer of $664,710 to the Neighborhood Inspections program. The ongoing allocation was eliminated in FY 2017-18, with BDS noting at the time that the program was fully reserved with no significant risk forecasted but also warning that the fund status would “need to be monitored in future years to determine if additional General Fund allocations or fee increases are necessary.” The bureau indicated then that eliminating the General Fund allocation would impact the program’s long-term financial stability and ability to provide services to the public. BDS’s current year Revised Budget includes an IA with BPS in the amount of almost $1.4 million to fund to work on several code development projects. In January 2018, BDS and the Bureau of Planning and Sustainability (BPS) came to an agreement on the ongoing funding of BPS code development work, as directed by an FY 2017-18 budget note. The agreement established a transfer of $1.3 million in FY 2018-19 to BPS for such work, with funding in future years set at 35% of prior years’ actual LUS Development Services Fee revenues.
Bureau of Development Services 4 of 16 March 6, 2018 Land Use Services Program Revenues & Costs (Dollars) $20 M
$15 M
$10 M
$5 M
$0 M FY 17 FY 18* FY 19* FY 20* FY 21* FY 22* FY 23*
Program Revenues General Fund Total Costs
*Estimate With the elimination of the General Fund subsidy and the finalization of a significant ongoing expenditure, CBO believes that it is prudent for the City to examine the long-term funding adequacy of the LUS program. The combination of these two developments is exerting a significant amount of pressure on the LUS program’s reserves. Although no fee increases are planned for FY 2018-19, BDS projects to increase the program’s fees by 5% each of the last four years of the Five-Year Forecast. Even with these increases, the program would operate at a deficit for the first three years, and reserves are projected to decline to a low of only $2,209 at the end of FY 2020-21, the third year of the forecast, before starting to increase again. At no point of the forecast are reserves expected to reach the desired goal of 50% of annual program expenditures but are projected to range between $5.8 million to $6.9 million below the desired level each year.
Land Use Services Program Reserves (Dollars) $14 M
$12 M
$10 M
$8 M
$6 M
$4 M
$2 M
$0 M FY 17 FY 18* FY 19* FY 20* FY 21* FY 22* FY 23*
Cumulative Reserve Goal
*Estimate Land Use Services Planning & Zoning revenues, of which Development Services fees are a component, are projected to grow by 1.8% in FY 2018-19, with decreases or no changes expected in the last four years of the forecast, even with
Bureau of Development Services 5 of 16 March 6, 2018 the projected 5% increases in fee rates during those four years. In response to indicators in the economy and the developments affecting the LUS program discussed above, BDS does not plan to request any new positions for the program in the near future and does not plan to fill positions that are currently vacant. As revenues from the Case Review section of the program are the only bureau revenues projected to decrease in FY 2018-19, while most programs are projected to experience revenue reductions in the subsequent two years of the Five-Year Forecast, the program’s declining revenues can be viewed as a leading indicator for the rest of the bureau’s revenues and development activity in general. In FY 2018-19, Key Performance Measures for the program are expected to remain level with year-end estimates for FY 2017-18. However, the number of land use review and final plat applications is expected to drop by 11%, consistent with the nature of the program’s revenues as a leading indicator of economic conditions. The Development Services fee, which is charged at the time of issuance of building permits, site development permits, and zoning permits and is based upon permit valuation, was created in 2005 to help solve a funding shortage issue in the LUS program. Revenues from this fee helped the program to achieve financial stability, including bringing the program to a level of cost recovery in FY 2005-06. However, even with the fee, the program’s financial condition is still vulnerable. For example, the program’s reserves were depleted in FY 2008-09, with a programmatic deficit reaching $1.7 million in FY 2009-10. Thus, CBO advises Council to closely monitor the financial adequacy of the program’s revenues and reserves for at least the next five years. BDS should also get input from the development community regarding the impact of the projected 5% rate increases.
Program Reserves Review Since the Great Recession, BDS has gradually raised its reserve goals so that most programs now have 50% of annual costs, or funds for six months of operations, as the reserve goal. BDS mentions several reasons for this reserve goal. First, the most commonly accepted definition of a recession is two consecutive quarters of negative economic growth, and so it would be six months before a recession is officially declared. The bureau states that the goal of the reserve is to allow the bureau time to recognize and respond to unanticipated declines in revenues and to maintain the staffing needed to carry out its obligation to provide services on permits for which BDS has already been paid but the bureau has not yet completed. However, BDS emphasizes that the reserves are not intended to maintain existing budget levels despite reduced construction activity and bureau workloads and should not insulate the programs from making budget adjustments in response to lower revenues and lower workloads over the long-term. BDS has also researched other funds and concluded that the six-month reserve level is
Bureau of Development Services 6 of 16 March 6, 2018 consistent with several of the State of Oregon’s funds. While research conducted on comparable cities during FY 2004-05 yielded inconsistent results, CBO recommends that BDS once again undertake a study of the reserve goals of these jurisdictions’ development services programs since many of them may have revisited the issue because of the experience of the Great Recession. The table below lists the current reserve estimates by program:
Program Estimated % of Total Estimated % Goal Costs - Goal not met if < of Goal (Goal Reached by 50% (75% for not met if < End of 5- Building/Mechanical) 100%) Year Forecast?
Building/Mechanical 135% 180% Yes
Electrical 118% 236% Yes
Plumbing 137% 274% Yes
Facility Permits 111% 222% Yes
Site Development 199% 397% Yes
Environmental Soils -2% -3% Yes
Signs -11% -21% No
Zoning Enforcement 257% 515% Yes
Land Use Services 17% 34% No
Neighborhood 50% 99% Yes Inspections
Bureau Total 103% 169% Yes
The table shows that most of BDS’s program reserves are easily projected to meet the bureau’s goals in FY 2018-19, as well as end at or above their goals by the end of the Five-Year Forecast period. The exceptions are: . The Environmental Soils program is experiencing a reserve deficit in FY 2018-19, but the reserve should rise to the 50% goal level by 2021-22.
. The Signs program will be operating with a reserve deficit next year and is not expected to meet its 50% reserve goal by FY 2022-23.
. The Land Use Services program’s reserves are expected to end FY 2018-19 significantly below the 50% level, with the reserve estimated to be only about one-third of the desired amount. In addition, the reserve goal is not expected to be reached by the end of the Five-Year Forecast.
Bureau of Development Services 7 of 16 March 6, 2018 . The Neighborhood Inspections program’s reserves are expected to reach the 50% goal level by 2021-22, but will be slightly short in FY 2018-19. See discussion on Decision Package DS_01 below for a discussion of the program’s finances.
Bureau-wide, reserves stood at about $90 million at the beginning of calendar year 2018. Although reserves for FY 2018-19 for the bureau as a whole are expected to be well above the bureau goal, an overall drawdown on the cumulative reserves is projected through the Five-Year Forecast period. Reserves are nevertheless projected to remain above the 50% goal by the end of the forecast. CBO recommends that BDS revisit some of its stress-testing analyses of reserve levels needed to withstand different economic assumptions and provide regular updates to Council on the status of its overall finances as part of the annual budget and supplemental budget processes.
Portland Online Permitting System (POPS) With the termination of the Information Technology Advancement Project (ITAP)3 prior to completion, BDS engaged in a six-month project discovery phase to figure out next steps. The new plan involves an upgrade of the existing system and includes simultaneous implementation of standalone electronic plan review software, while continuing to develop the permitting software. As the permitting system will be implemented in phases, the bureau and the public will be able to benefit from electronic plan review in advance of the completion of the permitting software. Other features may include the digitization of historic records and the implementation of mobile devices allowing access to plans and the entering of inspection comments and results while out in the field. Currently, the bureau’s capital budget includes only positions designated to work on the project and internal materials & services expenses. BDS will estimate vendor costs and other expenses once new contracts are negotiated in the summer of 2018, project scope is more developed, costs are more certain, and the project budget has been established. POPS is being financed by BDS operating funds generated through permit fees associated with commercial, residential, and trade permits, as well as land use review fees and enforcement penalties. The FY 2018-19 Requested budget for the project is $4,275,454, of which $3.6 million is budgeted in personal services. The POPS budget will be amended through the City’s Supplemental budget processes once the project plan is developed, contracts are negotiated, and costs are more certain. BDS currently projects that vendor costs for the ongoing maintenance of the system will be approximately $250,000 annually. The bureau has indicated that an approximation of implementation costs, as well as associated ongoing maintenance and
3The City spent $12 million on ITAP over the course of four years.
Bureau of Development Services 8 of 16 March 6, 2018 improvement expenses have been reflected in the its Five-Year Financial Plan. Once fully implemented, POPS is expected to save customers and community members time and money by giving them remote access to information and services and by decreasing the need to visit the Development Services Center or BDS offices. The bureau is expected to experience significant efficiency gains in plan review, permitting, and inspection processes by relying less on paper plans and records. The bureau states that these efficiencies have been incorporated into its Financial Plan projections in the form of needing 9.0 FTEs fewer in the final two years of the Five-Year Forecast period, once the new systems are solidly in place, staff have been fully trained, and bureau processes have adjusted to the new technology. Coordination of the POPS project is ongoing with all the development review bureaus, including Water, Transportation, Environmental Services, Fire, and Parks. BDS is assuming funding for the upgrading of existing functionality as well as the development costs for desired new functionality. But because of the bureau’s interpretation of State and City regulations concerning the utilization of bureau revenues, BDS has communicated to the other bureaus that they need to fund the configuration of new functionality to meet their specific needs. It will be important to ensure that a comprehensive funding plan is in place for the entire project in order to avoid unnecessary project delays, and CBO recommends that any funding disputes between participating bureaus be resolved quickly by Council. With the project about to enter the implementation phase, CBO believes that the current project has a much better chance of success than ITAP, which had much less involvement from BTS, lacked a governance charter as well as risk mitigation plans, and had leadership and structural problems.4 Unlike the situation with ITAP in which the City had no control over subcontractors, with POPS, the City is working directly with the vendors to refine requirements and will be releasing the new system incrementally. The full implementation is expected to take 18 to 20 months, with the first phase of the permitting system and ProjectDox (the electronic plan review system) to be launched in July 2018 and full implementation by October 2019. Nevertheless, there remains significant risk to the City, as with any large technology project. One risk is that the technology is developed without a detailed and sustained analysis of City business processes, taking into account how they can be improved. To this end, BDS is looking into utilizing an outside entity to assist the bureau with process improvements, but the timeline for accomplishing this in conjunction with the project timeline is quite challenging. In addition, as POPS is being implemented, another risk involves the City’s capacity to support three systems at the same time: the current permitting system, ProjectDox, and the new
4 IT Advancement Project Assessment for the City of Portland by Virtual Information Executives, October 2016
Bureau of Development Services 9 of 16 March 6, 2018 permitting system.
DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues $0 $0 $0 $0 $0
$45,000 $(49,126)
$0 $0 $0 $0 $0
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
5% General Fund Cut – Neighborhood Inspections DS_01, ($49,126) Because Neighborhood Inspections is BDS’s only program that receives an ongoing allocation from the General Fund, the bureau has proposed to reduce that allocation by $49,126 to comply with the directive to all bureaus receiving General Fund to submit mandatory 5% reduction proposals. While the amount equates to a workload of 27 nuisance abatements, and so theoretically, the bureau would be able to clean up only 2,605 properties instead of the 2,632 properties without the reduction, there would, in reality, be no reductions in service because BDS has indicated that it would backfill the reduction with program reserves. Similarly, there would be no effect on any of the program’s performance measures if the reduction is realized. Nevertheless, the bureau has stated that the program is projected to operate below cost recovery, and decreasing the contribution from the General Fund would result in a draw on reserves that is unsustainable in the long-term.
Bureau of Development Services 10 of 16 March 6, 2018 Neighborhood Inspections Program Performance 3,000
2,500
2,000
1,500
1,000
500
- FY 14 FY 15 FY 16 FY 17 FY 18* FY 19*
Housing Units Brought Up to Code Properties Cleaned Up
*Estimate BDS’s Five-Year Financial Plan indicates that if the reduction is realized, the bureau would operate at a deficit for the first three years of the plan and would need to draw on reserves during those years. The last two years of the plan assume increases of 4% each year to the program’s fees, fines, and penalties, which would enable the bureau to recover costs and begin adding funds back into the program’s reserves.
Neighborhood Inspections Program Revenues & Costs (Dollars)* $7 M $6 M $5 M $4 M $3 M $2 M $1 M $0 M FY 17 FY 18** FY 19** FY 20** FY 21** FY 22** FY 23**
Program Revenues General Fund Total Costs
*Assumes reduction in General Fund allocation in FY 2018-19 and 4% fee increases in FY 2021-22 and FY 2022-23 **Estimate Another argument against reducing the General Fund allocation is that higher fees work counter to the program goal of bringing violators into compliance with City codes rather than assessing the fines and penalties. BDS believes that the General Fund is an appropriate source of funding for the program because there is a direct public benefit from the program - enhancing the livability of neighborhoods,
Bureau of Development Services 11 of 16 March 6, 2018 maintaining the City’s housing stock, and helping to eliminate public safety threats to neighborhoods. Furthermore, the program helps to ensure safe and livable housing options for lower income renters and so furthers the City’s equity goals. Thus, while the program may be able to absorb the reduction and operate without reductions in service in FY 2018-19, CBO does not recommend the reduction. The Neighborhood Inspections program promotes one of the Mayor’s budget priorities (livability) and promotes the City’s equity goals. However, CBO continues to recommend the development of a rental registration system by the City and possible implementation of a rental inspection fee. This effort may generate revenues for the Neighborhood Inspections program and move it towards cost recovery and less subsidization by the General Fund. CBO Recommendation: $0
Interagency Agreement with Attorney’s Office – Foreclosure Program DS_02, $0 With this request, BDS is drawing $165,250 from the Neighborhood Inspections program’s contingency and reserves to fund the work of 0.5 FTE in the City Attorney’s Office for enforcement work on vacant and distressed homes. While BDS identifies abandoned and dilapidated properties throughout the city, the City Attorney’s Office provides legal advice to BDS on issues related to the City’s foreclosure program, receiverships, acquisitions, and other issues related to vacant and distressed properties. Since the program’s inception, there have been 10 properties that the City placed on the foreclosure list, and the revenue generated for the City, mostly to BDS, from these properties is approximately $737,000. The City Attorney’s Office provides: • Legal and technical advice on the City’s foreclosure program; • Legal and technical advice regarding receiverships, City acquisition, and other issues related to vacant and distressed properties; • Legal and technical advice regarding BDS code enforcement and nuisance abatement liens; • Defense of BDS liens in litigation; • Support for the City’s foreclosure program among City bureaus and City Council; and • Direct paralegal and staff support for vacant and distressed property programs The interagency agreement (IA) with the Attorney’s Office is also currently in BDS’s FY 2017-18 budget in the same amount. The requested IA amount of $165,250 represents about 4% of the Neighborhood Inspection program’s estimated FY
Bureau of Development Services 12 of 16 March 6, 2018 2017-18 year-end cumulative reserve of almost $4.0 million. Because the program provides benefits to neighborhood livability, CBO recommends the funding of the IA. As of the end of January 2018, outstanding liens that the City may be able to collect through the program total $30.5 million. CBO Recommendation: $165,250
Interagency Agreement with the Office of Neighborhood Involvement - Communications DS_03, $45,000 In the Requested Budget for FY 2018-19, the Office of Neighborhood Involvement (ONI) is requesting $45,000 in one-time General Fund resources to pay BDS for use of its Communications Team, and BDS is requesting to appropriate the funds from ONI in an IA with that bureau using request DS_03. If funded, the BDS Communications Team would assist ONI with standardizing ONI’s communications, rebranding, work on sanctuary cities, and work on other programs. BDS’s current year (FY 2017-18) budget includes a similar IA with ONI for $48,824. Because CBO is not recommending the additional General Fund allocation to ONI (see CBO’s review of ONI’s Requested Budget), CBO is not recommending the appropriation of the IA in BDS’s budget. CBO Recommendation: $0.00
Bureau of Development Services 13 of 16 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of the Bureau of Development Services’ total budget. On the revenue side, 40% of BDS’s FY 2018-19 base budget is composed of program revenues such as permit fees. These are projected to grow modestly for most programs. The large Beginning Fund Balance is made up of reserves accumulated from prior years. All fund transfer revenues are from the General Fund for the Neighborhood Inspections program, while the $4.0 million in Miscellaneous revenues are from the bureau’s Compliance and Neighborhood Inspection programs. On the expenditures side, personal services in the Requested Budget is 15% above the FY 2017-18 level due to added positions, a 3.6% COLA, increases in management positions and promotions, and spending associated with the implementation of POPS.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 80,291,247 $ 88,083,543 $ - $ - $ 88,083,543 Licenses & Permits 41,005,193 45,771,580 - - 45,771,580 Charges for Services 17,007,502 18,044,287 - - 18,044,287 Interagency Revenue 1,267,056 919,024 45,000 (45,000) 919,024 Fund Transfers - Revenue 952,985 982,528 (49,126) 49,126 982,528 Miscellaneous 4,277,674 4,032,724 - - 4,032,724 Total Resources $144,801,657 $157,833,686 ($4,126) $4,126 $157,833,686
Requirements Personnel Services $ 44,796,264 $ 51,641,769 $ - $ - $ 51,641,769 External Materials and Services 4,952,008 5,817,928 - - 5,817,928 Internal Materials and Services 12,248,005 10,980,888 165,250 - 11,146,138 Bond Expenses 1,270,656 1,360,492 - - 1,360,492 Fund Transfers - Expense 2,065,916 2,348,059 - - 2,348,059 Contingency 29,468,808 27,684,550 (169,376) 4,126 27,519,300 Unappropriated Fund Balance 50,000,000 58,000,000 - - 58,000,000 Total Requirements $144,801,657 $157,833,686 ($4,126) $4,126 $157,833,686
Bureau of Development Services 14 of 16 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Bureau of Development Services Adds
DS_02 - IA with Attorney's Office - Foreclosure Program 01 0.00 0 0 0 0 0.00 0 0 165,250 165,250 DS_03 - IA with ONI 02 0.00 0 0 45,000 45,000 0.00 0 0 0 0 Total Adds 0.00 0 0 45,000 45,000 0.00 0 0 165,250 165,250 Reductions
DS_01 - Mandatory 5% General Fund Cut 01 0.00 (49,126) 0 0 (49,126) 0.00 0 0 0 0 Total Reductions 0.00 (49,126) 0 0 (49,126) 0.00 0 0 0 0
Total Bureau of Development Services 0.00 (49,126) 0 45,000 (4,126) 0.00 0 0 165,250 165,250
Bureau of Development Services 15 of 16 March 6, 2018 Bureau of Development Services 16 of 16 March 6, 2018 Budget Review | Fiscal Year 2018-19
Bureau of Emergency Communications
Analysis by Robert Cheney
Adopted Budget Revenues - 5-Year Lookback
Other Sources General Fund $30 M $24.7 $24.9 $25.3 $25.3 $22.9 $23.6 $25 M
$20 M
$15 M
$10 M
$5 M
$0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
139.0 143.0 142.0 187.0 177.0 187.0 FTE FTE FTE FTE FTE FTE
INTRODUCTION The Bureau of Emergency Communications (BOEC) budget is 66% personnel costs ($16.6 million) and 24% materials and services ($5.8 million). To comply with budget guidance directing bureaus to develop 5% reduction options, BOEC has proposed to reduce funding by cutting its emergency communications operations staff by 11 senior dispatchers, for a total General Fund reduction of $763,755. The bureau has also put forward packages that request funds from the Public Safety Project reserves to revitalize its technological capabilities. A cut to the personnel budget at a time when the bureau is making efforts to reach full staffing would negatively impact service levels related to 9-1-1 call taking and dispatching. Therefore, CBO is not recommending the reductions. CBO is recommending the requested technology investments.
Bureau of Emergency Communications 1 of 12 March 6, 2018 KEY ISSUES The Bureau of Emergency Communications (BOEC) is an organization undergoing significant change. After a Government Accountability Transparency and Results (GATR) session in August, the bureau was tasked by Mayor Wheeler to revamp its performance management system, address issues in operations and mitigate issues with staff attrition. This has been its charge under the Interim Director while a nationwide search has been conducted for a permanent director. Concurrently, Multnomah County has been accepting bids for its next emergency ambulance services contract. This proposal originally requested that the vendor provide a separate 9-1-1 call center capable of triaging low- and high-acuity calls. After discussions between the City and Multnomah County regarding the challenges of having adjacent, duplicative call-taking centers, the request was revised and the charge of triaging calls has been placed under the purview of BOEC.1 Increasing Staffing to Authorized Levels BOEC’s issues with staffing are well-documented. Emergency Communications Operations staff remains beneath authorized levels, requiring the bureau to backfill hours using overtime—placing a considerable workload obligation on existing staff. The bureau is able to absorb the overtime costs with vacancy savings. However, increased overtime usage has been linked to high levels of burnout, compounding the attrition issue. The high-stress nature of emergency communications work means that for many it is not a life-long career. Sudden and unforeseen resignations are a reality of the industry and BOEC is no exception. The frequency of these types of separations creates management challenges. A three-year average showed that BOEC has an attrition rate of 15%—lower than the national turnover rate for dispatchers, which hovers at 17–19%.2,3 While a below-
1 https://multco.us/multnomah-county/news/multnomah-county-amends-ambulance-request-proposals 2 From the Matrix Consulting Group. “Staffing Study and Plan for the Bureau of Emergency Communications.” April 2017. P. 37 3 For context, the State and Local Government attrition rate was 18.8% in 2016. https://www.bls.gov/news.release
Bureau of Emergency Communications 2 of 12 March 6, 2018 average attrition rate might indicate future staff retention success, it does not capture the challenges of replacing separated staff members. BOEC, like many Public Safety answering points, cannot replace staff as quickly as they separate. While it might only take weeks for a senior dispatcher to separate from the bureau, it can take anywhere from 14 to 18 months to replace them due to the amount of time needed to train and certify new 9-1-1 call takers and dispatchers.4 This underscores the need for keeping trainees in the pipeline. Beyond the challenges of unplanned separations, planned separations are becoming a growing challenge for achieving full staffing. BOEC currently employs four working retirees, and has 19 senior dispatchers that can retire in the next four years including 12 that are eligible to retire at any time. These issues with attrition underscore the need for ongoing recruitment. The bureau has acknowledged this by increasing training academies from two to three per year. Each academy projects to net anywhere from 6 to 10 EC Ops staff per cycle. Accounting for a 15% attrition rate and assuming an optimized 50% occupancy rate, the bureau projects to be on a glide path to full staffing after they graduate a third academy in early 2019.5 To mitigate the time-intensive nature of developing an emergency communications operator, the bureau deploys trainees as limited-term call takers immediately upon call-taker certification. Management has expedited this process by making the certification process serial rather than concurrent, so trainees are certified as call takers first before moving on to police and fire/medical dispatch certification. This allows the bureau to extract value from trainees sooner while hastening the overall certification process. Keeping up with Technological Advances in Emergency Communications BOEC recently used capital funds to upgrade their computer-aided dispatch system (CAD).6 However, industry standards are rapidly evolving and BOEC has fallen behind
4 This variance is based on several factors including operating conditions, scheduling availability and individual training performance. 5 The 50% Occupancy Rate describes an optimized rate at which staff should be performing core dispatcher-related functions (Ideally, a dispatcher should be working 30 minutes for every hour.) The remaining 30-minute balance represents a "down time" allowance optimized for professions that require extreme concentration during work activities. Studies show that occupancy rates above 50% have an outsize impact on "burn-out" and thus, employee turnover. 6 From the Matrix Consulting Group. “Staffing Study and Plan for the Bureau of Emergency Communications.” April 2017. P. 67
Bureau of Emergency Communications 3 of 12 March 6, 2018 in several technological areas. Recording System BOEC currently utilizes a non-industry-specific Pyxis 5 recording system that was installed in late 2002. This platform was designed for the audio-visual editing profession and was not intended to be used for public safety recording purposes.7 Bureau staff state that the software is difficult to use and has been modified to meet the needs of the bureau. This creates challenges in pulling data for public records requests and Quality Assurance efforts. The bureau has proposed a budget package to replace this system; details are analyzed in the decision package section below. Dispatch Technology Historically, all 9-1-1 calls were met with an emergency response to avoid undertriage.8 With the advancement of caller interrogation, call takers and dispatchers developed the ability to triage calls and provide pre-arrival care guidance. Since then, technology has been developed that can guide dispatchers electronically using software that integrates with CAD systems to auto-populate data fields instead of relying on manual—and often redundant—data entry. The software also displays interrogation prompts and pre-arrival care guidance based on conditions selected. Currently, however, BOEC call takers use analog “flip cards” that contain sequential questions based on caller response to determine call acuity and pre-arrival care guidance. This creates challenges for EC Operations staff as they are relied upon to interpret and enter information manually. Because of this, service levels are impacted by call taker experience and proficiency in using the flip cards. Technology Effects on Morale A survey conducted by the Matrix Consulting Group found that only 57% of BOEC staff agreed that they had have the proper tools and technology to do their jobs. This figure aligns with another question that discovered that 57% of employees felt that poor equipment is a factor negatively impacting staff morale.9 Technology Improvement Cost Allocation In all, BOEC has several large-scale technology projects that are critical to service delivery. CBO believes there is logical and legal support for partner jurisdictions to contribute financially to BOEC assets and maintenance. The 1995 BOEC Intergovernmental Agreement (IGA) established that Portland would retain ownership of the bureau’s capital assets and—with minor exceptions— subsequent capital expenditures. 10 To date, all BOEC capital projects have been paid
7 Matrix Consulting Group. P. 68. 8 Hinchey, Paul. Myers, Brent. Zalkin, Joseph. Lewis, Ryan. Garner, Jr., Donald. “Low Acuity EMS Dispatch Criteria Can Reliably Identify Patients without High-Acuity Illness or Injury.” Prehospital Emergency Care. Volume 11, Number 1. January/March 2007. P 42–48 9 Matrix Consulting Group. P. 69 10 Ordinance No. 169468 “Authorize an Intergovernmental Agreement between the City of Portland, Multnomah County, Cities of Gresham, Troutdale, Fairview, Wood Village and Maywood Park, Multnomah County Rural Fire
Bureau of Emergency Communications 4 of 12 March 6, 2018 for by the City. However, language in the IGA suggests that partners can reasonably expect to contribute to capital expenditures necessary for operations. The IGA states “The [BOEC] budget will include the total costs of [BOEC] operations […] the Jurisdictions will provide resources sufficient to fund the budget.”11 The City Attorney notes, however, that the Performance Agreement between the City of Portland and BOEC user jurisdictions described in the IGA has not been executed, which may reduce the City’s legal footing to demand reimbursement of capital costs.12 The City Attorney has advised that the City of Portland discuss upcoming costs with partner jurisdictions and seek agreement about the share of estimated costs for which they are willing to pay. CBO recommends that beginning with the FY 2018–19 budget process, BOEC ask its partner jurisdictions to contribute according to the shared cost formula currently used to assign operations costs. The expense of each capital request could be shared according to the same shared cost formula used to assign operations expenses, which is based on jurisdictional population. For context, in FY 2017-18, the City of Portland paid 78.94% of operations costs, and all other jurisdictions together pay 21.06%. This breakdown has been employed in the ensuing recommendations.
Protection District 14 (Corbett) and Sauvie Island Fire District No. 30 for the provision of emergency call receiving and dispatch services by the Bureau of Emergency Communications (Ordinance)” Section 2 (2). P. 4. City of Portland. November 15, 1995. http://efiles.portlandoregon.gov/Record/2456224/ 11 Ibid. Section 8 “Budget” pp. 8-9. http://efiles.portlandoregon.gov/Record/2456224/ 12 Ibid. Section 5 “Performance Agreements” p. 8 http://efiles.portlandoregon.gov/Record/2456224/
Bureau of Emergency Communications 5 of 12 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS
Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues $1,200,000
$- $- $- $-
$800,000 $(198,517)
$414,876
$57,232 $0 $0 $(763,755) General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE (11.0) FTE 0.0 FTE 1.0 FTE Requested Recommended Requested Recommended
Next Generation Recording System EC_06; 9-1-1 Next Generation Recording System; $450,000; 0.00 FTE This package is brought forward in response to the Matrix Consulting Group’s recommendation that BOEC institute a Quality Assurance and Quality Improvement (QA/QI) system following the APCO/NENA13 “Quality Assurance and Quality Improvement Program for PSAPs” standard and make QA/QI a priority within the agency. Additionally, this recommendation was included as an action item from the August 2017 GATR session. This package addresses the Mayor’s Guidance relating to ensuring public safety and police accountability and is likely to impact the percentage
13 APCO is the Association of Public Safety Communications Officials. NENA is the National Emergency Number Association. The two organizations collaborated to create American National Standard (ANS) 1.107.1-2015: Standard for the Establishment of a Quality Assurance and Quality Improvement Program for Public Safety Answering Points.
Bureau of Emergency Communications 6 of 12 March 6, 2018 of 9-1-1 emergency calls answered within 20 seconds. A Quality Assurance program involves reviewing an industry best practice of at least 2% of phone calls and evaluating them against an APCO-created scorecard. The scorecards examine interrogation questions, CAD skills and protocol compliance. These score cards are then evaluated by a supervisor and used to improve the quality of response by identifying and addressing gaps in performance. BOEC does not currently conduct any Quality Assurance or Quality Improvement efforts in large part due to the cumbersome and time-intensive nature of pulling call data from the aforementioned Pyxis 5 recording system. A new recording system designed for Public Safety Emergency Communications would streamline the process of retrieving call recordings for evaluation. Adding this data-gathering capacity would provide BOEC with another tool to evaluate call taker and dispatcher compliance. The program would also provide the bureau a mechanism to offer timely and precise feedback to staff while supporting coaching and training efforts with targeted areas for improvement. BOEC is mandated by state policy to keep recordings of all calls for at least 2 years.14 The current Pyxis system has failed at intermittent points since its installation, resulting in the permanent loss of call recordings needed for various community, media and legal needs. A new recording system would bring BOEC into compliance with state policy in this regard. The bureau currently deploys two OSS IIIs for research and public records requests and billing. These 2.0 FTE spend most of their time handling these requests, which average over 7 per day. Still, the bureau struggles to meet the 15-business day turnaround requirement for paid public record requests mandated by the City Attorney. A new recording system would make the data pulling process less cumbersome—expediting the process and bringing the bureau into compliance. Lastly, as methods of emergency communications change, so does the need to capture and store them. The bureau currently has “text to 9-1-1” capabilities and receives about 1100 interactions per year (compared with 522,000 phone calls). However, an Arizona court has already ruled that lack of access to 9-1-1 services via text discriminates against the deaf and hearing-impaired community. This ruling portends the expected proliferation of “text to 9-1-1.” A next generation recording system will ensure the bureau has the capacity to capture, retain and retrieve these interactions going forward and remain in compliance with public records law. CBO recommends this package, but suggests that it receive its funding from the Public Safety Project reserves managed by the Bureau of Technology Services. Additionally, the City should seek funding from partner jurisdictions in proportion to their contribution to operations.
14 Oregon Administrative Rules 166-150-0145. County and Special District Retention Schedule; 9-1-1/Public Safety Answering Point Records.
Bureau of Emergency Communications 7 of 12 March 6, 2018 CBO Recommendation: $450,000 | 0.00 FTE
Integrated Priority Dispatch System EC_02; Integrated Priority Dispatch System; $350,000, 0.00 FTE This decision package has a total cost of $950,000. BOEC proposes internally realigning $200,000 from its contingency to reduce the obligation to $750,000. Of this, the bureau proposes $400,000 be offset by the Public Safety Project reserves, leaving a $350,000 request for one-time General Fund resources.15 This package addresses the Mayor’s priorities to ensure public safety and police accountability and pursue innovation and strengthen resiliency. It would increase the City’s responsiveness to emergencies and allow for more precise triaging and dispatching of emergency responders—addressing the concern of the Multnomah County ambulance services RFP. It would also increase the capacity for data collection and analysis by the bureau. The project would take approximately 13 months from RFP through accreditation to implement. In the short term, it has the potential to slow call times as operations staff familiarize themselves with the software. After implementation, the system will be able to shorten call times, dispatch high- and low-acuity calls with increased precision and reduce the amount of unnecessary emergency responses. Integrated Priority Dispatch Systems are software designed to guide emergency communications operators. It integrates with Computer-Aided Dispatch (CAD) systems to auto-populate data fields such as name, address and phone number. These and other features reduce the amount of time it takes for a dispatcher to send an emergency responder while continuing to provide instructions until emergency responders arrive. Currently, BOEC does not utilize priority dispatch software. Instead, call takers enter data as they receive it from the caller. They then utilize analog flip cards developed by local fire and medical agencies to determine call type and priority before sending information to a dispatcher. The call taker stays on the line to provide pre-arrival instruction while the dispatcher deploys police and/or emergency responders based on information received from the call taker. This procedure allows for variance in call taker and dispatcher experience to affect response time and patient outcomes. Installing a priority dispatch software would allow the bureau to move to a nationally recognized standard known as the Medical Priority Dispatch System (MPDS). Standardization of protocol along with the new software would reduce training times for new emergency communications operators while enabling more precise triaging of low- and high-acuity calls.16
15 https://www.portlandoregon.gov/sustainabilityatwork/article/460854 16 “Can EMDs Using MPDS Safely Identify Low-Acuity Illness and Injury?” Annals of Emergency Dispatch & Response. December 7, 2017. https://www.aedrjournal.org/can-emds-using-mpds-safely-identify-low-acuity-illness-and-injury/
Bureau of Emergency Communications 8 of 12 March 6, 2018 Studies have also shown that using the national standard can mitigate response variance based on dispatcher experience.17 Earlier proficiency will allow the bureau to sustain, if not improve, service levels while it moves towards full staffing. Implementation of this software will also shorten certification time by streamlining the training process. Finally, it allows an opportunity to improve data gathering and quality assurance efforts. CBO recommend this package be funded from the Public Safety Project reserves with additional funding from partner jurisdictions in proportion to their contribution to operations.
CBO Recommendation: $750,000 | 0.00 FTE
Timekeeping Administrative Support Position EC_07; Timekeeping/Administrative Support; $72,108; 1.00 FTE This package requests ongoing funds for an additional OSS III position dedicated to timekeeping. The bureau’s current administrative setup has 5 personnel that report to the Business Operations manager—4 administrative support positions and a Senior Financial Analyst. Two OSS III are dedicated to research and public record requests while one OSS III and one Senior Administrative Specialist are dedicated to timekeeping. Timekeeping is currently a challenge for the bureau as administrative staff use an online Employee Self-Serve (ESS) software for electronic timekeeping while Emergency Communications Operations staff continue to use paper timesheets due to the inability of the self-serve system to handle the nuance of overtime and leave types. CBO acknowledges the need for additional administrative support within the bureau. As a smaller bureau, BOEC faces challenges with staff turnover as skillsets and responsibilities are rarely duplicated among staff. This was the case when one of its staff members recently took a promotion that left the bureau with no one able to handle their responsibilities after their departure. This resulted in many dispatchers receiving an inaccurate paycheck. CBO recommends that the bureau realign existing resources to procure an ESS software capable of handling the diverse types of pay that the EC ops use. Beyond this, the installation of a next generation recording system should reduce the time required to pull recordings, creating bandwidth within the 2.0 FTE research staff to supplement timekeeping efforts. Additionally, CBO recommends that the bureau leverage support and training from the Bureau of Human Resources to assist during
17 Van Vleet, Lee. “Time to First Compression Using Medical Priority Dispatch System CPR Pre-Arrival Instructions Does Not Vary with Dispatcher Experience.” Annals of Emergency Dispatch Response. Volume 3, Issue 2. 2015. https://www.aedrjournal.org/time-to-first-compression-using-medical-priority-dispatch-system-cpr-pre-arrival- instructions-does-not-vary-with-dispatcher-experience/
Bureau of Emergency Communications 9 of 12 March 6, 2018 staff transitions. Due to limited ongoing resources, this package is not recommended.
CBO Recommendation: $0 | 0.00 FTE
5% Reduction Package EC_01; BOEC 5% Reduction Package; ($952,272); (11.00) FTE This package complies with budget guidance to propose a 5% General Fund reduction. For BOEC, this reduction amounts to $763,755 in General Fund resources and $198,517 in funds from BOEC partner jurisdictions in Multnomah County. This package would eliminate 11 Senior Dispatcher positions, dropping its budgeted allocation to 107 dispatchers. The bureau recently received the funding and position authority to add these positions based on the Matrix Consulting Group report recommendation that BOEC budget for a total of 118 senior dispatchers to right-size their bureau staff to align with demand. The 118 number is a figure determined to optimize dispatcher workload at a 50% utilization rate while accommodating turnover. To reach full staffing, the bureau has increased its training academies from two to three per year and currently has 16 trainees in the pipeline. Accepting this cut would require the bureau to cancel at least two of its remaining 3 academies in 2018, reducing the number of individuals in the pipeline at a time where the bureau could experience 16 imminent retirement separations.18 Any cuts in staff now would result in the bureau having to backfill staffing obligations with overtime hours. In a recent survey, 75% of BOEC staff stated that they strongly disagree with the statement “We are appropriately staffed with dispatchers to meet our agency’s needs.” This sentiment correlates with 58% of respondents who disagreed or strongly disagreed with the statement “My work morale is currently high.”19 This package would reduce the City’s responsiveness to emergencies and negatively affect the percentage of emergency 9-1-1 calls answered within 20 seconds. CBO does not recommend this reduction due to the impact it would have on emergency response, staff retention, and morale.
CBO Recommendation: $0 | 0.00 FTE
18 As stated earlier, the bureau currently has 4 working retirees and an additional 12 who are eligible to retire at any time. 19 Matrix Consulting Group. P. 16
Bureau of Emergency Communications 10 of 12 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of the Bureau of Emergency Communications’ total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 1,470,269 $ 1,251,301 $ - $ - $ 1,251,301 Taxes $ - $ - $ - $ - Licenses & Permits $ - $ - $ - $ - Charges for Services $ 375,749 $ 496,000 $ - $ - $ 496,000 Intergovernmental Revenues $ 7,912,526 $ 7,855,198 $ 216,359 $ 36,361 $ 8,107,918 Interagency Revenue $ - $ 93,477 $ 853,803 $ 947,280 Fund Transfers - Revenue $ 15,305,982 $ 15,401,656 $ - $ 15,401,656 Bond and Note $ - $ - $ - $ - $ - Miscellaneous $ 10,000 $ 20,000 $ - $ - $ 20,000 General Fund Discretionary $ - $ - $ - $ - $ - General Fund Overhead $ - $ - $ - $ - $ - Total Resources $ 25,074,526 $ 25,024,155 $ 309,836 $ 890,164 $ 26,224,155
Requirements Personnel Services $ 16,663,622 $ 16,720,654 $ (890,164) $ 890,164 $ 16,720,654 External Materials and Services $ 869,818 $ 1,018,000 $ 1,600,000 $ - $ 2,618,000 Internal Materials and Services $ 4,932,601 $ 4,742,137 $ - $ 4,742,137 Capital Outlay $ - $ - Bond Expenses $ 232,141 $ 271,083 $ - $ 271,083 Fund Transfers - Expense $ 936,149 $ 1,000,980 $ - $ 1,000,980 Contingency $ 1,440,195 $ 1,271,301 $ (400,000) $ - $ 871,301 Unappropriated Fund Balance $ - $ - $ - $ - $ - Total Requirements $25,074,526 $25,024,155 $309,836 $890,164 $26,224,155
BOEC receives nearly 80% of its funding ($15.3 million) from the General Fund. They carried over $1.4 million as contingency which is reflected in their base budget. Intergovernmental revenues make up 32% ($7.9 million) of their funding with $3 million coming from State 9-1-1 revenue and the remaining $4.9 million transferred from partner jurisdictions (rated on population size).20 Personnel costs make up two-thirds of BOEC expenses with a value of $16.6 million. $5.8 million (23%) are spent on materials and services including recruitment, training, office supplies and CAD maintenance. Partner Jurisdictions currently contribute approximately 21% of BOEC operating revenues, while the City of Portland contributes the remaining 79%. As stated earlier, CBO recommend that partner jurisdictions contribute to the costs of large-scale investments as the performance outcomes they beget are realized by all parties.
20 Partner jurisdictions are unincorporated Multnomah County (3.5%) and the cities of Gresham (13.75%), Troutdale (2.06%), Fairview (1.15%), Wood Village (0.50%) and Maywood Park (0.10%)
Bureau of Emergency Communications 11 of 12 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Bureau of Emergency Communications Adds
EC_06 - 9-1-1 Next Generation Recording System 01 0.00 0 450,000 0 450,000 0.00 0 0 450,000 450,000 EC_02 - Integrated Priority Dispatch System 02 0.00 0 350,000 400,000 750,000 0.00 0 0 750,000 750,000 EC_07 - Timekeeping/Administrative Support 03 1.00 57,232 0 14,876 72,108 0.00 0 0 0 0 Total Adds 1.00 57,232 800,000 414,876 1,272,108 0.00 0 0 1,200,000 1,200,000 Reductions
EC_01 - BOEC 5% Reduction Package 01 (11.00) (763,755) 0 (198,517) (962,272) 0.00 0 0 0 0 Total Reductions (11.00) (763,755) 0 (198,517) (962,272) 0.00 0 0 0 0
Total Bureau of Emergency Communications (10.00) (706,523) 800,000 216,359 309,836 0.00 0 0 1,200,000 1,200,000
Bureau of Emergency Communications 12 of 12 March 6, 2018 Budget Review | Fiscal Year 2018-19 Portland Bureau of Emergency Management Analysis by Kea Cannon
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $10.0 M
$8.6 $8.4 $9.0 M
$8.0 M
$7.0 M $5.8 $5.8 $6.0 M $4.8 $4.8 $5.0 M
$4.0 M
$3.0 M
$2.0 M
$1.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 Requested CBO FY 19 Recommended
13.0 FTE 20.0 FTE 19.3 FTE 21.5 FTE 22.9 FTE 20.9 FTE
INTRODUCTION In order to meet budget guidance to identify 5% ongoing General Fund reductions, the Portland Bureau of Emergency Management (PBEM) has proposed the reduction of operational services to the Emergency Coordination Center (ECC) and equity services supporting its two community engagement programs for disaster preparedness. PBEM is also requesting ongoing resources for two new positions to address increasing workloads and to integrate the bureau’s equity plan across its planning documents, including its 2017-2020 strategic plan document. KEY ISSUES Bureau Service Level & Funding Over the past ten years, PBEM has expanded its services to meet the City’s needs for disaster preparedness through expanded community engagement programs,
Portland Bureau of Emergency Management 1 of 8 March 6, 2018 neighborhood response coordination, increasing storage caches across the city, and supporting first responders in emergency response and communication coordination. During this time, the bureau’s budget has fluctuated, as its total funding is influenced by changing grant support (see chart below).
While PBEM's Total Funding is highly influenced by Grants that are predominantly pass through, General Fund resources primarily support PBEM operations Grant Funds General Fund Total Budget Grant Funding Trendline General Fund Trendline $12 M
$10 M
$8 M
$6 M
$4 M
$2 M
$0 M FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18
Bureau Underspending Over the past nine years, General Fund underspending in PBEM has averaged 5%, or approximately $97,129, per year.1 In the past three years, PBEM underspent its General Fund personnel budget on average by two percent (or $29,920).2 This can be attributed to position vacancies the bureau has experienced and the challenges of the recruitment and hiring process. PBEM underspent its General Fund external materials and services (EMS) budget by an average of 15% (or $52,574) over the same three-year period. This EMS underspending may highlight opportunities for efficiencies within bureau operations, and/or may reflect an inability to operate at full capacity due to position vacancies over the same period, as many of the historical encumbrances/carryover requests are project or grant related. Changing Service Levels and Funding Sources PBEM is tasked with coordinating and centralizing the disaster preparedness and response plans for the City of Portland. The bureau was created as a stand-alone office in 2004, and had five different directors during the first four years of operation. New leaders bring different perspectives and approaches to managing operations, and PBEM’s mission and priorities have changed over time. PBEM has
1 FY 2008-09 through FY 2016-17 2 FY 2014-15 through FY 2016-17
Portland Bureau of Emergency Management 2 of 8 March 6, 2018 expanded its priorities and reprioritized to accommodate grant opportunities, as noted in its 2011-2013 strategic plan: “Too often, federal grant programs and requirements drive the work of POEM.” “…[C]hanging national priorities are sometimes at odds with regional and local priorities. Pursuing greater regional capabilities has sometimes been at the expense of furthering the City’s emergency management program.”3 As grant funding has declined, the bureau has struggled to maintain existing programs. Last year, the bureau received $305,000 in General Fund ongoing funding to offset grant instability. The bureau receives funding from regional partners and the Urban Area Security Initiative (UASI) for regional and local programs and activities, and should those funds decline, these associated programs and activities will also decline. The City has also increased its funding for specific PBEM activities: in FY 2017-18, PBEM received $350,000 in ongoing General Fund resources to expand the Neighborhood Emergency Team program. The bureau is presently quantifying its 2017-2020 Strategic Plan, with the expectation of matching bureau priorities to General Fund support. The quantification is anticipated to be complete by the end of June 2018. This work will provide recommendations for long-term financial planning, day-to-day business operations, and implementation. City Council will have a direct role in selecting which services are essential – linking those activities to General Fund ongoing support, and which programs are nonessential or one- time in nature and therefore can withstand the fluctuating grant funding.
3 2011-2013 Strategic Plan document. Pg. 9. PBEM. https://www.portlandoregon.gov/pbem/article/359309
Portland Bureau of Emergency Management 3 of 8 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $139,688 Ongoing One-Time Other Revenues $117,740
$- $- $- $-
$(75,128) $(89,132)
$- $- $- $-
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 2.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Five Percent Required Reduction EM_01, ($164,260), 0.00 FTE PBEM proposed reductions to Emergency Communications Center (ECC) operational services and reductions to equity services and equipment within the Neighborhood Emergency Teams (NET) and Basic Earthquake Emergency Communication Nodes (BEECN) programs to avoid staffing reductions. This reduction would eliminate television services and mobile and handheld satellite phone services from the capacity of the ECC. Additionally, this would eliminate the annual post-earthquake building evaluation and certification course for 100 City personnel. These reductions impact the ECC’s activation capacity and City personnel response capabilities. These cuts total $127,260. The ECC was activated six times as of January 2017, for severe weather and protest events. Having essential communication services such as television and satellite phone services are vital to effective response coordination during emergencies. In addition to reductions to the operational capacity of emergency response coordination, the bureau proposes reductions to two program areas. PBEM proposes a $14,000 reduction to equity related services within its NET program. This includes reductions to volunteer accommodations such as childcare and food, which may reduce the number of participants in the NET program. This also
Portland Bureau of Emergency Management 4 of 8 March 6, 2018 includes reductions to translation services, impacting the bureau’s ability to communicate to a diverse audience in Portland and add diversity among its active volunteer base. Lastly, the bureau proposes a $23,000 reduction to technology services for both the NET and BEECN programs. All physical BEECN caches would be removed from their locations and the program would become radios housed with existing volunteers. Natural disasters and hazardous events disproportionally impact communities struggling for secure housing, communities with functional needs, lower income communities, immigrant communities, and communities of color. CBO recommends against reductions to PBEM’s budget, as this will reduce the bureau’s ability to support the resiliency of the Portland community. Historical underspending suggests that the bureau may be able to absorb a small reduction in funding with minimal impact on services. However, CBO has previously highlighted that any reduction in funding would result in the bureau’s continued reliance upon volatile grant funding and place the granting agency’s priorities over local needs. A reduction to PBEM may result in a City less prepared for, and resilient from, a disaster. CBO Recommendation: ($0.00) | 0.00 FTE
Critical Personnel – Management Analyst EM_02, $129,590, 1.00 FTE PBEM has experienced growth in grant projects, local bureau service level expectations, and the associated staff since 2005. There are two full-time equivalent (FTEs) employees that coordinate finance, accounting, budgeting, forecasting, procurement, contracting, grant management and HR recruitment; these staff often work over 40 hours per week, and at times the bureau relies upon grant funded staff to assist with ongoing bureau needs. The bureau is requesting a new position to help alleviate the strain on existing staff and to discontinue utilizing grant funded staff on non-grant related administration work for the bureau. While the bureau has two dedicated FTE to bureau-wide finance and administration efforts, the bureau has an additional three FTE with administrative duties within their job descriptions. PBEM may be able to utilize a portion of these position’s time to alleviate some of the bureau-wide administrative work currently handled by the two dedicated FTE. Although other existing job duties would need to be de-prioritized to absorb this work and the result may negatively impact other bureau activities. Small City bureaus typically do not have significant administrative staff, they often rely heavily on customer support from central services such as HR and Procurement. CBO recommends the bureau investigate if there are opportunities to increase this centralized support. The Mayor’s budget guidance has asked bureaus to seek efficiencies, and for ongoing add requests the Mayor is seeking projects that directly address outlined priorities. While this
Portland Bureau of Emergency Management 5 of 8 March 6, 2018 position could increase bureau productivity and specifically allow for more timely implementation of the bureau’s racial equity plan and positively impact resiliency efforts, there is a lack of available ongoing General Fund resources to support this position. Therefore, CBO recommends that the bureau consider opportunities to realign administrative responsibilities within existing staff capacity. CBO also recommends the bureau conduct a cost-benefit analysis of its various grant programs, assess current positions and staff capacity, while identifying personnel to implement various actions identified within the strategic plan. This will assist the bureau in quantifying the costs associated with the strategic plan. CBO Recommendation: $0.00 | 0.00 FTE
Critical Personnel – Business Continuity and Resilience Coordinator EM_03, $127,838, 1.00 FTE PBEM’s 2017-2020 strategic plan focuses on developing the City’s suite of response and recovery plans: advancing the ECC’s readiness, fostering connected and resilient communities, spurring innovation and excellence to reduce the City’s disaster risk.4 However, the bureau struggles to implement many of the actions described in the plan document. This request seeks an additional full-time position to focus on implementing various components of the strategic plan. Specifically, those that coordinate private sector emergency planning – creating preparedness plans focused on utility service, fueling, and other critical private supply chains (1.1, 1.2, 2.3). The position will also continue supporting the Continuity of Operations Plans (COOP) across City bureaus, as the current limited term position ends in 2018 (4.4). The bureau anticipates this position allocating 50% of its time on disaster recovery response planning, 40% coordinating the maintenance of citywide COOPs, and 10% serving on the Duty Officer Program during ECC activations. PBEM’s FY 2018-19 base budget allocation has two regular FTE budgeted in their policy and planning division. In the bureau’s current strategic plan, there are 17 plans that the bureau intends to work on. This request responds to the Mayor’s priority to strengthen community resiliency to be prepared, respond to, and recover in the event of an emergency. Although this request aligns with bureau goals and budget guidance, there are limited General Fund resources available to fund this request, therefore CBO recommends waiting to add this position. In preparation for next year’s budget process, the bureau should outline which action items from the strategic plan will be implemented on an annual basis through 2020, identifying the staff and funding needed to implement those annual projects. CBO Recommendation: $0.00, 0.00 FTE
4 2017-2020 Strategic Plan document. PBEM. https://www.portlandoregon.gov/pbem/article/619113
Portland Bureau of Emergency Management 6 of 8 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of Portland Bureau of Emergency Management’s total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Intergovernmental Revenues $ 2,379,282 $ 5,222,813 $ 5,222,813 Interagency Revenue 10,000 10,000 10,000 General Fund Discretionary 1,561,494 1,517,084 42,612 (42,612) 1,517,084 General Fund Overhead 1,849,466 1,777,377 50,556 (50,556) 1,777,377 Total Resources $5,800,242 $8,527,274 $93,168 ($93,168) $8,527,274
Requirements Personnel Services $ 2,438,802 $ 2,922,733 $ 247,428 $ (247,428) $ 2,922,733 External Materials and Services 2,538,426 4,752,490 (154,260) 154,260 4,752,490 Internal Materials and Services 823,014 852,051 852,051 Total Requirements $5,800,242 $8,527,274 $93,168 ($93,168) $8,527,274
Portland Bureau of Emergency Management 7 of 8 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Bureau of Emergency Management Adds
EM_02 - Critical Personnel - Management Analyst 01 1.00 59,271 0 70,319 129,590 0.00 0 0 0 0 EM_03 - Business Continuity and Resilience Coordinat 02 1.00 58,469 0 69,369 127,838 0.00 0 0 0 0 Total Adds 2.00 117,740 0 139,688 257,428 0.00 0 0 0 0 Reductions
EM_01 - Five Percent Required Reduction 01 0.00 (75,128) 0 (89,132) (164,260) 0.00 0 0 0 0 Total Reductions 0.00 (75,128) 0 (89,132) (164,260) 0.00 0 0 0 0
Total Portland Bureau of Emergency Management 2.00 42,612 0 50,556 93,168 0.00 0 0 0 0
Portland Bureau of Emergency Management 8 of 8 March 6, 2018 Budget Review | Fiscal Year 2018-19
Office of Equity & Human Rights
Analysis by Jane Marie Ford
Adopted Budget Revenues - 5-Year Lookback
Other Sources General Fund
$2.0 M $1.76 M $1.82 M $1.79 M $1.81 M $1.79 M $1.67 M $1.8 M $1.6 M $1.4 M $1.2 M $1.0 M $.8 M $.6 M $.4 M $.2 M $.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
11.0 FTE 10.0 FTE 10.9 FTE 11.9 FTE 12.0 FTE 11.6 FTE
INTRODUCTION In FY 2018-19, the Office of Equity & Human Rights (OEHR) will move forward in developing a new strategic plan. Accordingly, the City Budget Office (CBO) has not recommended any changes to OEHR’s budget while the bureau, under the guidance of Council and community stakeholders, considers how its priorities, programs, and services will shift over the next five years. The strategic planning process is an important opportunity to consider: how to more formally coordinate Citywide equity efforts; how to best utilize OEHR’s technical assistance to support Citywide priorities; how enhanced data collection, analysis, and reporting can inform Citywide decision- making and investments; and what is required for the City to strengthen its work
Office of Equity & Human Rights 1 of 8 March 6, 2018 related to Civil Rights and disability equity. KEY ISSUES Strategic Planning In its founding ordinance, the new Office of Equity & Human Rights was charged with: . Providing leadership and coordination in facilitating systemic training, change, and accountability to achieve equity and protect human rights in City government;
. Working with all bureaus to eliminate disparity in City policies, processes, decisions and resources allocations;
. Collaborating with external partners to achieve measurable results in reducing disparities within the City and throughout the community; and
. As initial priorities, leading with race and ethnicity and addressing disparities for people with disabilities. 1
Very little direction was provided regarding the organizational structure, role, and authority of the office. Over the last six years, OEHR’s workload has primarily consisted of functions previously administered by other City bureaus. This has made it challenging for one of the smallest City bureaus to balance training, compliance, and programmatic responsibilities while also developing new Citywide policies and strategies. Simultaneously, bureaus across the City have created new dedicated equity positions to assist with implementation of the Racial Equity Roadmaps2 and other initiatives. Decentralized Portfolio Staffing Model In FY 2017-18, OEHR requested a significant expansion of resources to implement a portfolio staffing model. As proposed, OEHR would shift toward providing enhanced equity technical assistance to City bureaus, focusing on promoting consistency in application of policy, program development, and collection and reporting of data. This new model was also intended to help coordinate bureau equity managers and staff. Council discussed these issues in an April 2017 work session, but chose not to fund major staffing changes prior to completion of the bureau’s new strategic plan. Nevertheless, the former director moved forward with rolling out this decentralized support model in fall 2017 without new resources. OEHR reports that this has resulted in strengthened relationships with bureaus and a better understanding of Citywide need for equity technical support.
1 Ordinance No. 184880 as amended, filed 9/16/2011, available at https://www.portlandoregon.gov/oehr/article/449202. 2 Available at https://www.portlandoregon.gov/oehr/70046.
Office of Equity & Human Rights 2 of 8 March 6, 2018 Alignment with Citywide Key Issues The shift to a portfolio staffing model was made without cutting back on other workload and service levels, and OEHR reports that bureau requests for assistance increasingly outpace staff capacity. As noted above, Council has not made an explicit decision about whether all City equity efforts should funnel through OEHR. CBO recommends that the strategic plan define the process by which bureaus will request equity technical assistance and support. Specific requests for assistance discussed with CBO appear to represent the desire to 1) utilize OEHR’s expertise, 2) apply a consistent equity lens across City efforts, and 3) collaborate on complex, cross-bureau issues. Relevant City key issues include housing access, rental services, infrastructure investments, Smart Cities, internal service delivery, increasing the efficiency and effectiveness of community engagement, and more. Data and Performance CBO and OEHR agree that enhanced data collection, analysis, and reporting is crucial to tracking progress toward Citywide equity goals. For example, through additional support from an interagency agreement with the Bureau of Technology Solutions, OEHR recently expanded the City of Portland Government Workforce Demographics Dashboard.3 This is facilitated by easy access to employee data collected during a centralized hiring process. However, there are no such systems or processes for other key points of data collection, such as progress toward removal of barriers identified in the City’s Americans with Disabilities Act (ADA) Title II Transition Plan Update,4 complaints or accommodation requests provided to individual bureaus, or translation of essential documents. One critical opportunity to begin centralizing equity data is annual reporting on implementation of bureau five-year Racial Equity Roadmaps. Additionally, CBO notes that the Smart Cities program may help to develop technological solutions for data that is currently collected manually. Most importantly, CBO recommends that Council delegate specific responsibilities and authority for the collection, analysis, and reporting of such data, and hold individual bureaus accountable for meeting these requirements. Increasing Focus on Civil Rights & Disability Equity OEHR was charged with leading with race and disability as its initial priorities. Accordingly, Council transferred the Civil Rights Program from the Office of Management & Finance to OEHR in FY 2014-15. This program focuses on Title VI of the Civil Rights Act and Title II of the Americans with Disabilities Act, aiming to remove barriers and conditions that prevent underserved groups from accessing programs and services. A December 2016 audit suggested that significant
3 Available at https://www.portlandoregon.gov/oehr/article/595121. 4 ADA Title II Transition Plan Update, October 2014. Available at https://www.portlandoregon.gov/oehr/65426.
Office of Equity & Human Rights 3 of 8 March 6, 2018 additional resources are likely necessary to meet compliance requirements.5 The program has spent an average of approximately $240,000 over the past three years, with an average of just over one FTE dedicated to this work. CBO recommends that the strategic planning process more clearly define the role of the program, assess opportunities to centralize services, identify current unmet needs, and determine what training is required so that all bureaus and employees understand their responsibilities under both Title II and Title VI. As noted above, enhanced data collection will bolster the City’s ability to take a more proactive stance toward Civil Rights by identifying patterns of discrimination or inequitable services; this analysis will also assist the City in prioritizing resources for translating documents, providing accommodations, or removing barriers. Additionally, CBO suggests that Council consider how to best utilize the advisory role of the Human Rights Commission and Portland Commission on Disability. These commissions have recently increased their contact with elected officials, but there is not currently a formal structure for collaborating with City bureaus. CBO recommends considering a more proactive approach to engagement, such as providing time at commission meetings for bureau presentations on relevant programs and policies.
5 For more details, please see the December 2016 audit, “Americans with Disabilities Act: Coordination gaps complicate City response.” Available at https://www.portlandoregon.gov/auditservices/article/620521.
Office of Equity & Human Rights 4 of 8 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues $- $- $- $-
$59,906 $50,494 $(40,988) $(48,628)
$- $- $- $-
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE (0.0) FTE 1.0 FTE Requested (0.6) FTE Requested Recommended Recommended
OEHR 5% Reduction Package OE_01, ($89,616), (0.60 FTE) In order to meet the five percent ongoing General Fund reduction target, OEHR has submitted a cut package that would eliminate a part-time Senior Administrative Specialist ($68,124) and reduce the bureau’s external materials and services budget by $21,492 across five program areas. CBO does not recommend these reductions. OEHR created the Senior Administrative Specialist position in FY 2015-16 by realigning existing resources, representing no increase to the bureau’s budget. This part-time role has bolstered OEHR’s minimal administrative capacity across all program areas, including providing crucial accommodations support to bureau staff and commission members. Eliminating this position, which is currently filled, is likely to negatively impact the bureau’s operations at a critical point in the strategic planning process. The proposed external materials and services cuts are consistent with historical underspending trends, and would likely have minimal impact on bureau operations in FY 2018-19. However, the bureau is unlikely to be fully staffed in the next fiscal
Office of Equity & Human Rights 5 of 8 March 6, 2018 year, and the strategic planning process is expected to generate significant workload. Retaining the bureau’s full external materials and services budget will provide OEHR with some flexibility to backfill other workload. CBO Recommendation: ($0) | 0.00 FTE
Add Position for ADA & Civil Rights OE_02, $110,400, 1.00 FTE The bureau is requesting a new Program Coordinator to increase OEHR’s capacity to coordinate and support the City’s efforts to comply with both ADA Title II and Civil Rights Title VI requirements, including enhanced data collection and analysis. The bureau requested funding for this position in FY 2017-18 as part of a Civil Rights Program enhancement package with two total FTE; funding was allocated for one position due to limited ongoing resources. A new Accommodation Coordinator was also funded within the Bureau of Human Resources. Due to unforeseen delays, OEHR is still in the process of hiring the new Disability Program Coordinator funded in the current fiscal year. As discussed above, CBO recognizes that significant additional resources are likely required to meet the City’s Civil Rights responsibilities; this not only includes removing barriers to access, but a) developing strategies to drive equitable planning, policy, and program development, b) analyzing outcomes, and c) addressing inequitable impacts on underserved communities. However, CBO does not recommend adding new positions until the strategic planning process is completed. In the interim, the bureau has an existing vacant Program Coordinator position that could be utilized to support this work. Additionally, historical underspending trends indicate that the bureau will have sufficient budget authority to increase either interagency or external contract support for specific functions in FY 2018-19 while the strategic planning process is underway. The bureau also intends to explore these options in the FY 2017-18 Spring Budget Monitoring Process, given current year projected vacancy savings and program underspending. CBO Recommendation: ($0) | 0.00 FTE
Office of Equity & Human Rights 6 of 8 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Office of Equity & Human Rights is a General Fund Overhead bureau, with minimal revenue from other sources (such as providing equity trainings to external organizations). Most of the bureau’s expenses are related to personnel, supporting 11.6 FTE in the current fiscal year. OEHR’s external materials and services budget primarily supports its commissions and community engagement work, including the Diverse and Empowered Employees Program (DEEP), Human Rights Commission, Portland Commission on Disability, and Black Male Achievement Program. Starting in FY 2017-18, the bureau’s internal materials and services budget includes funding for increased data analysis and support from the Bureau of Technology Solutions. Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Charges for Services $ - $ 1,500 $ - $ - $ 1,500 Interagency Revenue 5,689 - - - Miscellaneous Sources 2,428 - - - - General Fund Discretionary 1,146,825 1,175,667 9,506 (9,506) 1,175,667 General Fund Overhead 631,491 616,648 11,278 (11,278) 616,648 Total Resources $1,786,433 $1,793,815 $20,784 ($20,784) $1,793,815
Requirements Personnel Services $ 1,430,755 $ 1,452,361 $ 58,380 $ (58,380) $ 1,452,361 External Materials and Services 144,386 116,751 (34,979) 34,979 116,751 Internal Materials and Services 211,292 224,703 (2,617) 2,617 224,703 Total Requirements $1,786,433 $1,793,815 $20,784 ($20,784) $1,793,815
Office of Equity & Human Rights 7 of 8 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of Equity & Human Rights Adds
OE_02 - Add Position - ADA & Civil Rights 01 1.00 50,494 0 59,906 110,400 0.00 0 0 0 0 Total Adds 1.00 50,494 0 59,906 110,400 0.00 0 0 0 0 Reductions
OE_01 - OEHR 5% Reduction 01 (0.60) (40,988) 0 (48,628) (89,616) (0.00) 0 0 0 0 Total Reductions (0.60) (40,988) 0 (48,628) (89,616) (0.00) 0 0 0 0
Total Office of Equity & Human Rights 0.40 9,506 0 11,278 20,784 (0.00) 0 0 0 0
Office of Equity & Human Rights 8 of 8 March 6, 2018 Budget Review | Fiscal Year 2018-19 Portland Fire & Rescue
Analysis by Jessica Kinard
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $140.0 M $122.7 $117.9 $115.6 $119.2 $122.5 $108.7 $120.0 M
$100.0 M
$80.0 M
$60.0 M
$40.0 M
$20.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
715.6 FTE 717.1 FTE 716.0 FTE 722.1 FTE 676.8 FTE 726.8 FTE
INTRODUCTION To meet the Mayor’s 5% General Fund reduction budget guidance, Portland Fire & Rescue (PF&R) has proposed the elimination of four Rapid Response Vehicles (RRVs) and the closure of two fire stations for a total reduction of 52 firefighters. PF&R is requesting $1.4 million in ongoing resources, primarily to support increased staff costs from the City’s paid parental leave policy and a recent PFFA labor agreement, as well as funding for an equity manager and community healthcare manager. PF&R is also requesting $5.7 million in one-time funds for capital and equipment maintenance and replacement, including $3 million to replace the bureau’s Self Contained Breathing Apparatus equipment.
Portland Fire & Rescue 1 of 20 March 6, 2018 KEY ISSUES Addressing Capacity and Call Volume One of the most pressing issues for Portland Fire & Rescue continues to be addressing increases in call volume and the resulting impact on the bureau’s capacity to respond quickly. In the past four years, incident call volume has increased by 22%; correspondingly, the estimated time committed to incidents by primary apparatus has increased 26%. On average, each primary apparatus spent an additional 24 minutes per day responding to incidents in 2017 compared to 2013. Despite this growth, bureau response times to high priority incidents at the 90th percentile1 remained relatively consistent at just under 7 minutes, 20 seconds until FY 2016-17. Last year, however, response times to high priority incidents increased by 21 seconds to 7 minutes, 39 seconds. Fires can double in size every minute, and in medical emergencies, brain death due to hypoxia (lack of oxygen) begins occurring within seven minutes and the ability to resuscitate a person from cardiac arrest decreases 10% every minute. The National Fire Protection Association sets a goal of responding to high priority incidents at the 90th percentile within 5 minutes and 20 seconds. Given currently available data, CBO is uncertain whether the response time increase is an indication of bureau capacity strain as a result of call volume, but that is one possibility. Analysis of population and volume of PF&R call incidents2 suggests that population is highly, positively correlated with PF&R call incidents and a statistically significant predictor (p<.005) of incidents. Using linear regression3, CBO estimates that PF&R call incidents will To Significantly Reduce Incident Response, PF&R Must No Longer Respond to RRV-Eligible exceed 100,000 by FY Incidents 2024-25. A straight- Not Including RRV Eligible Not Including Low Acuity line projection using Total PF&R Incidents average incident call 110,000 volume growth over 100,000 the past five years 90,000 33,164 has call volume 80,000 exceeding 100,000 70,000 three years earlier, by 60,000 FY 2021-22. This Projected PF&R Calls 50,000 represents a doubling 40,000 of call volume over FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
1 Response times at the 90th percentile is how fire response is measured, nationally. Essentially, it means that 90% of calls are responded to within a certain amount of time. 2 Historical data from 2001 through 2017 used for this analysis. 3 The model has small sample bias, leading to a wide confidence interval. The model also may exhibit some bias from omitted variables that may give rise to inconsistency.
Portland Fire & Rescue 2 of 20 March 6, 2018 two decades. Three quarters of all incidents last year were for medical assistance, and PF&R has been investigating ways to reduce the need to respond to low-acuity calls. Multnomah County is currently evaluating proposals for a new ambulance services contract which may enable ambulances to respond independently to many of the lower acuity calls. Successfully transitioning these calls to ambulances will also require new 9-1-1 call taking systems at the Bureau of Emergency Communications (BOEC), which are discussed in that bureau’s review. This contract will be finalized and go into effect in the fall of 2018, but PF&R anticipates full adoption, with BOEC software and triage improvements, to go into effect in two to three years. As illustrated in the chart above, if the bureau wants to significantly mitigate the call volume trend, simply eliminating low-acuity incident runs will not suffice. To maintain call volume at or below current levels the bureau must no longer respond to some medium acuity calls currently handled by RRVs. This analysis does not assess how close the Fire bureau is to maximum capacity, which would require identifying the optimal amount of down time for a company and optimal likelihood that the closest company is available to respond to a high- needs incident at any given time in any given location. In 2017, the Fire bureau’s busiest company spent approximately 20% of their shift responding to incidents, and Chief Myers decided to relocate an RRV to that company’s Fire Management Area (FMA) to assist with the call volume. This decision demonstrates that the bureau has some ability to increase its systemwide capacity to provide equitable service in response to spikes in call volume. Should call volume continue to increase without intervention, the bureau will eventually require additional staff and apparatus to maintain current service levels. The minimum increase would likely be to add a two-person Rapid Response Vehicle at a cost of approximately $765,000 in ongoing resources and additional one-time funds to purchase apparatus. The bureau intends to maintain and improve bureau performance as population grows within existing resources by deploying several strategies including having ambulances independently respond to lower acuity calls. PF&R also is striving to improve current service levels, including response times to high priority incidents. It is important to note that call volume is not the only factor affecting the bureau’s ability to meet key performance measures. Ensuring firefighter wellness and readiness, adequate bureau infrastructure and equipment, and access to the most pertinent and up-to-date information, among others, all factor into the bureau’s ability to prevent loss of life and property. The bureau’s FY 2017-2020 Strategic Plan also addresses these needs. Logistics and Training Center Per a FY 2016-17 budget note, PF&R and Facilities’ Services hired a consultant to
Portland Fire & Rescue 3 of 20 March 6, 2018 conduct a needs analysis of the Logistics, Prevention and Training divisions. Current facilities for these operations are in fair to poor condition and insufficient to support current bureau operations. Additionally, Logistics and Prevention are located on the SE Gideon site, which has been identified by the City as an opportune location for transit-supportive development. The consultant released a draft of its analysis in February and concluded that neither of the sites considered (Jerome Sears facility in SW Portland and the Parkrose site in NE Portland) would appropriately support all required functions. The study found that the Prevention division is potentially well-suited for the Sears site in conjunction with a new PBEM Westside Emergency Operations Center. The consultant will next develop plans for development options and conduct a real estate search to suit facility needs. Given the desire to use the Gideon site for other purposes and the poor condition of existing facilities, there is some urgency to relocate these bureau functions. CBO recommends that Council convene a work session to discuss planning and funding options with relevant bureaus which could include Prosper Portland, the Portland Housing Bureau, and OMF-Facilities. DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
$5,660,00 $0 $0 $40,000 0 General Fund General Fund Other Revenue Ongoing One-Time ($716,288 ($40,000) )
$1,390,11 4
$576,626 $490,000 $140,154 $42,236 ($5,367,81 3) General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
1.0 FTE (52.0) FTE 0.0 FTE 2.0 FTE Requested Recommended Requested Recommended
Portland Fire & Rescue 4 of 20 March 6, 2018
Revenue Generating Requests FR_01, FR_02, FR_03, FR_04, ($40,000) As part of the bureau’s required 5% General Fund reduction options, Fire submitted four revenue packages to generate a total of $40,000 annually. By focusing on more complete cost recovery for services and/or on dis-incentivizing non-necessary, non-emergency use of bureau resources, these packages also increase operational efficiencies and meet Mayoral guidance to strengthen bureau resiliency. CBO recommends all the below requests. • Changing the public assist and lift assist fee policy. In FY 2016-17, Fire responded to over 400 calls for lift assists at private care facilities; a portion of these were repeat calls, indicating a policy of relying on firefighters to assist patients who fall. While the Fire bureau will continue to respond to all public assist and lift assist requests, this fee would encourage commercial facilities to consider providing this service to their residents internally or through a non- emergency private provider rather than rely on the City’s emergency responders. This fee will only apply to commercial facilities, and $5,000 in annual net revenue is expected. • Changing the commercial false alarm policy to allow fines after six false alarms (instead of after nine, under current policy) in a twelve-month period. In FY 2016-17, PF&R responded to 4,500 false commercial alarms. PF&R anticipates this new policy, coupled with stricter enforcement, will generate $10,000 annually and slightly reduce non-emergency call volume. • Recover costs related to permitted special events such as the Rose Festival, Zoo Lights, Bridge Pedal, and the Portland Marathon. In the past, PF&R has charged special event organizers an hourly rate that was not full cost recovery; a new fee schedule has been completed to reflect actual salary/benefit costs plus overhead for the different types of positions assigned to the event. Event organizers are invoiced for the total cost incurred by PF&R for planning/staffing the event. PF&R estimates increased revenues in the current year as a result, and reports that it has not received any negative feedback from event organizers. • Increase portable propane tank permit fees by $10, from $25 to $35. Fire requires all commercial portable propane tanks to obtain permits, and the permit process improves education about safety connecting and operating propane tanks. Currently, the bureau estimates that only half of the City’s food carts have permits. Multnomah County recently added information on the propane permit as part of their permitting materials, and as a result PF&R expects better compliance. The fee, even with the $10 increase, will not fully recover program costs. This request is expected to generate $15,000 in additional revenue.
Portland Fire & Rescue 5 of 20 March 6, 2018 CBO Recommendation: ($40,000) | 0.00 FTE
Eliminate Rapid Response Vehicles (‘RRVs’) FR_05, FR_06, FR_07, FR_08, ($3,075,852), (26.00) FTE To meet the Mayor’s budget reduction guidance, Fire submitted four packages that would eliminate all four existing Rapid Response Vehicles (RRVs). These packages decrease ongoing General Fund discretionary by a total of $2.7 million and eliminate 26 firefighter positions. The RRV program is designed to alleviate some station workload by dispatching a two-person unit to low and medium acuity medical calls and public-assist calls, allowing for four-person units to be in service for dispatch to either higher acuity medical, fire, or rescue calls. Starting in FY 2013-14, the bureau has operated four RRV units, stationed in locations which coincide with higher call volumes. RRVs may also be dispatched to lower acuity and public assist calls anywhere within the city if the unit can respond within 20 minutes. In November 2017, PF&R re-opened Station 23 by redeploying the RRV formerly located in Fire Management Area 19 (“FMA” 19 - Mt. Tabor), resulting in a 100 second drop in response times to high acuity calls in FMA 23 (SE Powell and 13th). In January 2018, PF&R redeployed the RRV located in FMA 7 (Mill Park) to FMA 31 (Rockwood/Gresham) to assist with high call volume. The other two RRVs are located in FMA 11 (Lents) and FMA 24 (Overlook/Swan Island). In 2017, RRV-24 was PF&R’s 15th busiest apparatus in terms of time committed to an incident, and was in use an average of 11.7% of the day. RRV-07, which has since been moved to Station 31, was the bureau’s 18th busiest apparatus with an average of 11.2% of the day in use. The other RRVs rank 27th and 28th in terms of time committed to incidents, out of 42 primary apparatus. Together, these RRVs went on 9,616 runs, and were the sole responder to 6,793 incidents. RRVs comprise approximately 9.5% of the bureau’s primary apparatus fleet, and responded to 9% of all calls and independently responded to 8% of all incidents. The graph to the left shows 2017 RRV Runs by Type Dispached RRV runs by the type of call
Medical Medium Acuity code dispatched. The data indicate that RRVs are Medical Low Acuity predominantly dispatched Service Call to medical calls as is their Medical High Acuity intended purpose. In Fire addition, 15% of RRV runs Other were as secondary 0 1000 2000 3000 4000 5000 apparatus for fire or high Total RRV Runs RRV-Only Runs acuity medical dispatched calls to help the bureau
Portland Fire & Rescue 6 of 20 March 6, 2018 meet National Fire Protection Association (NFPA) minimum staffing and response goals. Eliminating one RRV would increase other apparatus call volume by between 2,000 and 3,000 calls, would reduce PF&R’s on duty staffing level by two firefighters, and decrease the bureau’s flexibility to respond to spikes in call volume or other systemwide needs. From FY 2012-13 to FY 2016-17, call volume increased by 22% while emergency operations FTE declined by 3%. Bureau response times to high priority calls remained relatively consistent over this time frame until last year, when they increased by 21 seconds. Eliminating the RRV program may be appropriate in future years if response to low and medium acuity medical calls can be provided by ambulance services, as discussed in the Key Issues section of this review. It is possible that the bureau would be able to absorb the loss of one or more RRVs currently without significantly reducing key performance measures; however, response times would be affected in the FMAs where the RRV was eliminated, as indicated by the improvement in response times with the addition of an RRV in FMA 23. CBO believes the current RRV program offers critical systemwide flexibility to respond to continuing increases in call volume, and as a result does not recommend these reductions at this time. CBO Recommendation: $0.00 | 0.00 FTE
Close Two Fire Stations FR_09, FR_10, ($3,008,249), (26.00) FTE To meet the Mayor’s budget reduction guidance, PF&R submitted two packages each proposing to close one fire station, each eliminating 13 firefighters and saving $1.3 million in General Fund ongoing resources. Should this reduction be taken, the bureau would need to complete a detailed analysis on the least disruptive stations to close. Incidents requiring PF&R’s response are inequitably distributed across the City: in 2017, the five highest incident FMAs experienced, on average, 12 times the number of incidents as the lowest incident FMAs.4 PF&R could close a station that experiences very low call volume and have a minimal impact on the overall performance of the system. However, response times in the FMA without a station, for those few hundred incidents, will increase by 2 to 6 minutes according to bureau estimates. The stations experiencing low call volume either serve a particular risk area (such as the NW Industrial lands or Forest Park) or are in the more remote areas of Southwest Portland.
4 The five lowest-incident FMAs were compared to the five highest-incident FMAs using CY 2017 data provided by PF&R.
Portland Fire & Rescue 7 of 20 March 6, 2018 The chart to the left displays 2017 PF&R Calls for 5 lowest-volume FMAs, call response of the five by Call Type lowest-call stations in 2017. Rescue and EMS Although calls most frequently were for rescue and EMS, 14% Good Intent and Service Calls of all calls were for false False Alarms & False Calls alarms or false calls. This is Fire twice the incidence of false Other alarms and false calls citywide.
0 500 1000 1500 2000 Rather than closing a station with low call volume, the bureau may opt to close a centrally located station that would impact a greater volume of incidents to a less profound degree. The bureau recently elected to re- open Station 23 with an RRV and saw a decrease in average response times to high priority calls of 100 seconds; closing a centrally located station could similarly increase response times for nearby FMAs. The bureau’s FY 2016-17 response time for high priority calls at the 90th percentile was 7 minutes, 39 seconds. Given the very low call volume for priority incidents at certain stations, there may be an acceptable level of risk the City is willing to take to reduce or alter service at one or more of these locations. This risk should be weighed against tradeoffs made across the City with other budgetary needs. Given the bureau’s need to improve its response time to meet internal and national goals, and given other budgetary requests being considered across the City, CBO does not recommend closing a fire station. CBO Recommendation: $0.00 | 0.00 FTE
Equity Manager Position FR_11, $140,154, 1.00 FTE Portland Fire & Rescue requests $140,154 in ongoing General Fund resources to support a full-time, non-sworn equity manager. The bureau currently has an equity work group that regularly meets to discuss bureau-wide equity goals and initiatives, and has contracted with Portland State University to provide a comprehensive assessment of the bureau’s equity needs to help construct and implement its five-year equity roadmap. This position would lead and coordinate the implementation of equity efforts bureau-wide. One Citywide equity goal is ending racial disparities within City government. In FY 2016-17, PF&R’s sworn staff was 80% white and 93% male while Portland’s population was 72% white and 49% male.5 PF&R’s strategic plan includes increasing equity in the application process and specifically increasing the number
5 2016 American Community Survey: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF
Portland Fire & Rescue 8 of 20 March 6, 2018 of women and individuals from communities of color who apply for firefighter positions. The bureau has added two performance measures to track their progress towards these goals, with targets of having new sworn hires that are female and from communities of color represent 15% and 20%, respectively, of hiring classes. Compared with fire departments nationally, Portland has slightly more female sworn members but fewer Black and Hispanic / Latino members.6 It is important to enhance PF&R’s equity efforts not only to end racial disparities within City government, but to ensure equitable service is provided to all Portlanders: a 2008 study conducted by the nonprofit FIRE 20/20 found that language barriers, low levels of proactive relationships, trust issues, and knowledge gaps associated with working with multicultural communities put those communities at greater risk and had lower fire prevention effectiveness.7 PF&R is the only large General Fund-supported City bureau without a full-time position dedicated to equity efforts. Subsequent conversations with the bureau indicate that if the bureau were provided one-time funding, they could use the next year to identify internal sources to support this position ongoing. Due to the importance of this position in ensuring achievement of City and bureau equity goals, CBO recommends adding this position with one-time General Fund resources, followed by a bureau realignment to support the position in FY 2020-21 and beyond. CBO Recommendation: $140,154 | 1.00 FTE
Self-Contained Breathing Apparatus (SCBA) Replacement FR_12, $3,000,000 Portland Fire & Rescue requests $3 million in one-time General Fund resources to fund the replacement of all bureau self-contained breathing apparatus (SCBA). SCBA is a required piece of Personal Protective Equipment (PPE) and provides breathable air in any dangerous atmosphere. The bureau has one SCBA for each seated position on an apparatus (369 total), a facemask for each sworn staffer (774 total), and 1,200 air cylinders. PF&R last purchased SCBAs in 2002, and has updated several parts to remain in compliance with national standards, but upgrades to remain compliant are no longer an option. Various parts have experienced between a 10% and 30% failure rate, negatively impacting bureau response reliability and putting members at risk of being exposed to airborne contaminants. The increased failure rates have cost additional staff time for equipment testing and for the relocation of equipment in response to failures. PF&R’s budget includes $100,000 annually for SCBA maintenance, typically for cylinder replacement. Additionally, the bureau annually budgets $300,000 in
6 Data provided by PF&R from the National Fire Prevention Association. 7 Firehouse online. Diversity in the Fire Service – Why Does it Matter? May 1, 2008. http://www.firehouse.com/article/10494144/diversity-in-the-fire-service-why-does-it-matter
Portland Fire & Rescue 9 of 20 March 6, 2018 equipment maintenance and replacement funding; however, this funding is allocated towards the $1.3 million in estimated annual building repair and maintenance needs. CBO has highlighted the bureau’s need to create a major maintenance reserve for its capital and equipment needs, and the bureau expects an initial draft of its major maintenance plan to be available in March 2018. PF&R has applied for a federal grant to assist with the costs of SCBA replacement; if the bureau receives the grant it would require $1 million in one-time funds to cover the 10% grant match and non-grant eligible equipment. Due to the safety risk posed to firefighters, CBO finds this to be a critical request. CBO recommends that the bureau assess available 1998 GO Bond fund balance and/or Apparatus Reserve balance as well as current year underspending that may be carried over to support this request. Due to limited available General Fund resources, CBO does not recommend new General Fund resources at this time. To avoid large equipment replacement requests in the future, CBO recommends that the bureau begin building an equipment maintenance and replacement reserve into its base budget allocation. CBO Recommendation: $0.00 | 0.00 FTE
Community Healthcare Position FR_13, $155,570, 1.00 FTE Portland Fire & Rescue requests $155,570 in ongoing General Fund resources to support a full-time firefighter to function as a Community Healthcare Manager. This position would spend 50% of its time working on mitigating high-utilizer 9-1-1 calls, 35% on homeless outreach, and 15% on community health outreach and education. The portion of the position focusing on mitigating high utilizers has been in effect since FY 2016-17. In its first year, funded through a one-time innovation grant, a sworn EMS/firefighter worked with 17 individuals and reduced calls from these individuals by 205 calls over six months. The bureau asked for, but did not receive, ongoing General Fund resources to support the continuation of this pilot in FY 2017-18. The bureau elected to internally realign resources to continue funding the program this year, and has continued to experience success: working with 20 high utilizers has reduced the number of calls from those individuals in recent months by an average of 31 calls/month – a reduction of roughly 50%. Multnomah County has outreach workers dedicated to similar work with an estimated 400 individuals. However, the firefighter providing this assistance receives referrals from fire stations directly, which enables the bureau to provide real-time assistance and empowers firefighters to proactively address high-system utilizers. Anecdotally, this has positively affected member morale. Additionally, this structure enabled the bureau to successfully engage and assist high utilizers
Portland Fire & Rescue 10 of 20 March 6, 2018 that the County was unable to assist. Most social workers and clinicians cannot give medical advice, and client details can be relayed from first responders that enable the firefighter to provide better client assistance and advocacy. The firefighter working on this effort has acted primarily as a liaison between TC-911 and PF&R’s emergency operations. To date, the current position has only worked with 3 homeless individuals, but the current request would shift the position’s focus to include 35% of its time on homeless outreach and engagement. This is aligned with Mayoral guidance to submit packages that reduce homelessness, although the measurable impact of this intervention is unknown. The current position has forged a partnership with Portland Street Medicine, among other homeless services providers, and would be part of a ‘global team’ that would connect with homeless individuals. The firefighter would use its unique position to provide both direct care and referrals to individuals in need. Clear benefits of this position to the Fire bureau and the general community include alleviating a portion of the bureau’s growing call volume and increasing member morale. Lacking data from the County around caseload, CBO cannot assess the extent to which PF&R’s efforts in this arena benefit the County or other Joint Office of Homelessness (JOHS) efforts, but it is likely that these efforts would complement and enhance County and JOHS work. The position was funded in the current year by realigning a position temporarily from the bureau’s Traveler’s Pool. The bureau’s decision to internally prioritize funds for this position in the current year demonstrates this is a priority for the bureau. Due to limited available General Fund resources, CBO does not recommend new General Fund resources for this position. However, CBO recommends the continuation of this position through internal realignments, if possible. CBO notes that PF&R anticipates its Travelers Pool to reach optimum size and, as a result, plans to only run one recruitment class (rather than two) in FY 2018-19. This will likely result in some savings that may be redeployed. Additionally, to ensure multi-bureau collaboration and maximize efforts of partners, the JOHS may opt to fund 35% ($54,450) of the position out of its annual budget since 35% of the position’s time would be spent on homeless outreach and engagement. CBO Recommendation: $0.00 | 0.00 FTE
Increased Staffing Costs: Paid Parental Leave and Labor Agreement FR_14, FR_27, $976,626 PF&R is incurring additional staffing costs due to a Council adopted policy to provide paid parental leave and due to a labor agreement with the Portland Firefighters Association (PFFA). CBO added the package for the PFFA agreement as
Portland Fire & Rescue 11 of 20 March 6, 2018 costs became known after bureau budget submission. Paid Parental Leave Policy - $400,000 ongoing In December 2015, City Council passed Ordinance 187473, allowing for eligible City employees to take six weeks of paid parental leave in a calendar year. The Bureau of Human Resources estimated the policy’s full year General Fund fiscal impact to range from $248,000 to $337,000. However, this estimate was based on actual use of pre-policy parental leave and did not account for potential behavioral change. The Fire bureau has experienced an 830% increase in the number of parental leave shifts taken since the policy was enacted, which has direct cost implications since vacated shifts must be backfilled by other firefighters. Further, firefighters have tended to take leave during times when other firefighters typically take vacation (such as during major holidays), which increases the amount of leave that must be backfilled by more costly overtime shifts rather than by Traveler’s Pool staff. In 2017, 36 frontline firefighters used the policy, resulting in the need to backfill 398 24-hour shifts at an approximate cost of $445,000. In the current fiscal year, PF&R anticipates being able to absorb this cost due primarily to retirement payouts being lower than normal and increased Special Use permit revenues. In FY 2018-19, Special Use permit revenues have already been budgeted, and retirement payouts are expected to be greater due to the presence of two 27 pay-period lookback dates, so the bureau will likely have less capacity to absorb these additional costs. However, the bureau also anticipates the Travelers Pool reaching its optimum size and, as a result, plans to only run one recruitment class (rather than two). This will likely result in some savings that may be redeployed. Due to minimum staffing requirements, this policy will likely continue to contribute to increased annual costs for PF&R. However, with only one year of data since policy implementation, it is difficult to assess whether $400,000 in ongoing General Fund is the appropriate level of funding. Due to uncertainty of need and due to limited General Fund resources, CBO does not recommend this request at this time. PF&R and CBO should continue to actively monitor related overtime costs and assess the need to make budget adjustments during the year. Council may reassess the need for ongoing resources next year after the policy has been in effect for a longer period. PFFA Labor Agreement Longevity Pay - $576,626 ongoing Earlier this year, an arbitrator settled the 2016-19 labor agreement between the City and the Portland Firefighters Association (PFFA). The agreement includes longevity pay increases that are anticipated to cost an additional $576,626 per year. Because the agreement went to arbitration, it does not require Council ratification; Council has thus not yet considered placing these additional funds into the bureau’s base budget. These costs will be incurred by the bureau. An alternative to new funding would be
Portland Fire & Rescue 12 of 20 March 6, 2018 for the bureau to absorb the additional costs by reducing services across the bureau. The easiest way to implement that alternative would be to accept the reduction of one Rapid Response Vehicle. Given increases in call volume and the flexibility RRVs offer the bureau to manage spikes in call volume, CBO does not recommend reducing the number of RRVs at this time. CBO recommends this ongoing increase in funds. CBO Recommendation: $576,626 | 0.00 FTE
Technology Requests FR_15, FR_16, FR_17, FR_22, $630,000 PF&R is requesting several packages related to technology hardware and software, as follows: Fire Inspection Software Application - $350,000 one-time: The current fire inspection system is over 20 years old and cannot be accessed while out in the field. Staff time is spent entering hand written notes into the system, and returning to the office in between inspections. A new system will be able to prioritize inspections based on risk, create efficient routing and clustering of inspections, and provide for online customer access for scheduling inspections and submitting required documents. Currently, the bureau is only able to inspect 67% of high priority occupancies every 27 months; this project will greatly help the bureau meet its performance goal of inspecting 100% within that time frame. PF&R’s Bureau of Technology Service partners support this request, and this request meets the Mayoral priorities around pursuing innovation and strengthening resiliency. The current budget includes $1.44 million in fire inspection fee revenue, covering approximately 50% of direct program costs. PF&R keeps fire inspection fees low to discourage avoidance of inspections which could greatly impact fire prevention efforts. Fire inspection fees were last increased in FY 2013-14, generating $150,000. As such, the bureau does not believe increasing fees to fund the software can be done without hindering fire prevention goals. The new software may enable new programming that could generate over $400,000 in additional annual fee revenue, which would help pay for software maintenance costs and additional fire inspectors. However, this revenue would not be realized until the software goes live, sometime in FY 2019-20. Currently, the City has $3.2 million in available Public Safety Project reserve funds for one-time public safety technology needs. CBO recommends this request be funded with available Public Safety Project reserves. WiFi at Fire Stations and Mobile Data Computers - $60,000 ongoing and 140,000 one-time The bureau requests two related packages that will install wi-fi at 28 stations,
Portland Fire & Rescue 13 of 20 March 6, 2018 enabling the MDC updates and allowing for training videos to be viewed by firefighters on mobile devices. Currently, Fire apparatus’ Mobile Data Computers (MDCs) cannot connect to the City network and updates are provided manually by a BTS technician meeting each company apparatus at the nearest battalion headquarters. This package will enable firefighters to have the most up-to-date building and map information when going on a call, and reduce out-of-service time required for updates. The bureau anticipates this package reducing annual Internal Materials and Services costs by $20,000, which is reflected in the total request. MDC connectivity will cost $60,000 in ongoing and $20,000 in one-time funds. The FY 2017-18 budget included $50,000 in ongoing General Fund to support high speed internet connections at Fire Stations to enable firefighters to complete online trainings while available for response. The bureau reports that this has been successful in reducing time out-of-service for training and has significantly increased firefighter training hours. Each station has one or two computers, and PF&R maintains that having mobile Wi-Fi enabled devices is more convenient, reduces out of service time, and allows firefighters to stay caught up on training. $60,000 in one-time funding will go towards installing Wi-Fi inside the station for use on mobile devices and $60,000 in one-time funding will install Wi-Fi in the apparatus bay for MDC connectivity. CBO recommends the one-time request be funded with available Public Safety Project reserves, if Fire is able to absorb the ongoing General Fund costs. Due to limited available General Fund resources, CBO does not recommend additional General Fund resources towards this effort. Mobile Devices Replacement - $80,000 ongoing This request would provide regular ongoing funding to replace Fire’s 400 mobile devices. Through a FY 2016-17 decision package, ongoing replacement reserves for public safety devices was built into bureau interagency rates, but this did not include replacement for Fire’s ipads and iphones. According to BTS, bureaus typically fund replacement for devices out of their operating budgets. As highlighted above, Fire is in the process of developing a comprehensive capital and equipment maintenance and replacement plan, which should include these devices. Due to limited available general fund resources, CBO does not recommend this request. CBO Recommendation: $490,000 | 0.00 FTE
Capital Set-Aside Requests FR_18, FR_19, FR_25, $1,180,000 Citywide, $75 million in Capital Set-Aside requests were submitted for $12.5 million in available funds. Bureau asset managers ranked all projects according to
Portland Fire & Rescue 14 of 20 March 6, 2018 agreed-upon criteria. The highest-ranked PF&R project ranked 21st out of 36 projects. Due to low rankings and limited available discretionary resources, CBO does not recommend any of these requests. Project details include: Roof Replacement at Stations 4 and 22 - $280,000 one time: The roofs at stations 4 and 22 are over 30 years old, and a 2014 assessment recommended replacement. The roofs’ conditions continue to deteriorate; the two stations together reported 6 leaks this past year. The major risk of not funding these replacements is the potential for more costly interior water damage. The request for funding has increased since last year as a result of increased construction costs. This project ranked 21st out of 31 projects. CBO notes that this is the 3rd time that this project has been submitted and not funded with Capital Set-Aside funds. CBO recommends that the bureau create a major maintenance and replacement reserve, and prioritize this work within that reserve. Apparatus Bay Extensions at Stations 3 and 22 - $650,000 one-time: The apparatus bays at Stations 3 and 22 are not long enough to meet regulatory standards for width between apparatus and the building walls, creating a safety risk which has been flagged by the Occupational Safety and Health Administration (OSHA), which may result in future citations or fines. This project ranked 30th. Remodel Battalion Chief Quarters at Station 7 - $250,000 one-time: This Battalion chief’s quarters functions as a bedroom and an office, which makes it unsuitable for meetings and an inadequate for the operational needs of the position. Due primarily to low magnitude of impact and low risk, this project ranked last out of 36 projects. CBO Recommendation: $0 | 0.00 FTE
Other Infrastructure Requests FR_21, FR_23, FR_24, FR_26, $860,000 PF&R is requesting one-time General Fund resources for several infrastructure projects that are not eligible for Capital Set-Aside, as follows: Traffic Signal at Station 31 - $60,000 one-time: With over 4,500 calls last year, Station 31 is one of PF&R’s busiest stations. However, it does not have an emergency traffic signal to stop oncoming traffic when leaving the station, creating a safety hazard. This station is located in outer East Portland and is co-operated with the City of Gresham, which would contribute $20,000 towards the project in accordance with their share of station operations. Safety at the station is especially important because an elementary school is located within a ½ mile. The surrounding neighborhood has some of the City’s highest equity scores according to the Bureau of Transportation’s equity matrix.8
8 Find equity matrix online.
Portland Fire & Rescue 15 of 20 March 6, 2018 This project aligns with several City and PBOT goals around Vision Zero and equity, and could be funded through transportation revenues. However, PBOT’s current list of transportation projects exceed available resources and requiring PBOT to prioritize this project could displace other safety projects. Due to limited available General Fund resources, CBO does not recommend this request for additional funding. Boathouse Acquisition and Replacements (three requests) - $800,000 one-time The bureau requests three packages that contribute to the longevity of fireboats through acquisition or repair of fire boathouses. The bureau estimates the impact of not having adequate boathouses may require the boats go to dry dock 20% earlier. These requests meet Mayoral guidance to use one-time resources to defray future costs. Requests include: • Acquire and install Station 17 boathouse: PF&R purchased the $2.7 million Fireboat-17 in 2015 at the same time as Fireboat-21. The latter boat, which docks covered, has incurred 50% less in maintenance costs. Fireboat-17 patrols the Columbia River and is the only fireboat without a boathouse. PF&R requests $500,000 to acquire and install a boathouse. • Replace Station 6 boathouse: the current boathouse is failing; its pilings are sinking and clearance for the boat is only a few inches and dry rot threatens the structure. Fireboat-6 responded to 183 incidents along the NW Willamette industrial zone in FY 2016-17. This project was also requested for Capital Set- Aside funds and ranked 28th out of 36 projects. • Replace Campbell boathouse door: the boathouse door housing the historic Williams fireboat is failing and remains open, exposing the boat to the elements and requiring increased maintenance. PF&R requests $50,000 to replace the door. CBO recognizes the importance these investments would have in defraying future costs, but due to limited available General Fund resources does not recommend these requests. CBO recommends that the bureau create a major maintenance and replacement reserve to assist the bureau in dealing with its many capital and equipment needs. CBO Recommendation: $0 | 0.00 FTE
Bureau Realignments to Create Positions FR_27, FR_28, $0, 2.00 FTE PF&R requests to realign external materials and services funds to pay for a full- time carpenter and electrician. The bureau has assessed that it is more cost effective to provide these services in house. CBO recommends this request. CBO Recommendation: $0 | 2.00 FTE
Portland Fire & Rescue 16 of 20 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of Portland Fire & Rescue’s total budget. PF&R’s base budget is growing by $2.4 million, or 2%. Personnel expenditures drive the expenditure growth with a $2.8 million increase. Increased retirement and disability costs are supported by increases in interagency revenue from the Fire and Police Disability and Retirement bureau, which is funded by an independent property tax levy.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 1,900,000 $ 1,095,908 $ - $ - $ 1,095,908 Licenses & Permits 3,195,436 3,382,000 - - 3,382,000 Charges for Services 1,450,000 1,475,000 40,000 - 1,515,000 Intergovernmental Revenues 635,000 682,000 20,000 (20,000) 682,000 Interagency Revenue 6,719,776 7,397,241 (734,052) 734,052 7,397,241 Fund Transfers - Revenue - - - 490,000 490,000 Miscellaneous 205,000 116,000 - - 116,000 General Fund Discretionary 104,978,624 107,312,091 1,682,301 (1,005,521) 107,988,871 General Fund Overhead 76,137 77,797 - - 77,797 Total Resources $119,159,973 $121,538,037 $1,008,249 $198,531 $122,744,817
Requirements Personnel Services $ 99,786,457 $ 102,563,975 $ (4,443,317) $ 5,368,531 $ 103,489,189 External Materials and Services 7,748,008 7,840,007 (66,434) 160,000 7,933,573 Internal Materials and Services 7,200,304 7,226,147 388,000 (200,000) 7,414,147 Capital Outlay 4,425,204 3,907,908 5,130,000 (5,130,000) 3,907,908 Total Requirements $119,159,973 $121,538,037 $1,008,249 $198,531$ 122,744,817
Portland Fire & Rescue 17 of 20 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Fire & Rescue Adds
FR_11 - Equity Manager position 01 1.00 140,154 0 0 140,154 1.00 0 140,154 0 140,154 FR_12 - Self-Contained Breathing Apparatus Replacem 02 0.00 0 3,000,000 0 3,000,000 0.00 0 0 0 0 FR_13 - Community Healthcare Manager position 03 1.00 133,334 0 22,236 155,570 0.00 0 0 0 0 FR_14 - Paid Parental Leave Replacement Cost 04 0.00 400,000 0 0 400,000 0.00 0 0 0 0 FR_15 - Fire Inspection Software Application 05 0.00 0 350,000 0 350,000 0.00 0 0 350,000 350,000 FR_16 - WiFi at Fire Stations 06 0.00 0 120,000 0 120,000 0.00 0 0 120,000 120,000 FR_17 - Mobile Data Computers connect to City Netwo 07 0.00 60,000 20,000 0 80,000 0.00 0 0 20,000 20,000 FR_18 - Roof Replacement at Stations 4 and 22 08 0.00 0 280,000 0 280,000 0.00 0 0 0 0 FR_21 - Traffic Signal at Station 31 09 0.00 0 40,000 20,000 60,000 0.00 0 0 0 0 FR_19 - Apparatus Bay Extensions at Station 3 and 22 10 0.00 0 650,000 0 650,000 0.00 0 0 0 0 FR_22 - Mobile Devices (iPads/iPhones) Replacement 11 0.00 80,000 0 0 80,000 0.00 0 0 0 0 FR_23 - Acquire and Install Boathouse at Station 17 12 0.00 0 500,000 0 500,000 0.00 0 0 0 0 FR_24 - Replace Boathouse at Station 6 13 0.00 0 250,000 0 250,000 0.00 0 0 0 0 FR_25 - Remodel Battalion Chief Quarters at Station 7 14 0.00 0 400,000 0 400,000 0.00 0 0 0 0 FR_26 - Replace Campbell Boathouse Door at Station 15 0.00 0 50,000 0 50,000 0.00 0 0 0 0 FR_29 - PFFR Agreement Longevity Pay NA 0.00 576,626 0 0 576,626 0.00 576,626 0 0 576,626 Total Adds 2.00 1,390,114 5,660,000 42,236 7,092,350 1.00 576,626 140,154 490,000 1,206,780 Reductions
FR_01 - Public Assist and Lift Assist Fee Policy 01 0.00 (5,000) 0 5,000 0 0.00 (5,000) 0 5,000 0 FR_02 - False Alarm Policy Change 02 0.00 (10,000) 0 10,000 0 0.00 (10,000) 0 10,000 0 FR_03 - Special Events Cost Recovery 03 0.00 (10,000) 0 10,000 0 0.00 (10,000) 0 10,000 0 FR_04 - Propane Tank Permit Fee Increase 04 0.00 (15,000) 0 15,000 0 0.00 (15,000) 0 15,000 0 FR_05 - Eliminate Rapid Response Vehicle from Statio 05 (6.50) (672,099) 0 (93,912) (766,011) 0.00 0 0 0 0 FR_06 - Eliminate Rapid Response Vehicle from Statio 06 (6.50) (672,099) 0 (93,912) (766,011) 0.00 0 0 0 0 FR_07 - Eliminate Rapid Response Vehicle from Statio 07 (6.50) (676,935) 0 (94,980) (771,915) 0.00 0 0 0 0 FR_08 - Eliminate Rapid Response Vehicle from Statio 08 (6.50) (676,935) 0 (94,980) (771,915) 0.00 0 0 0 0 FR_09 - Close one Fire Station 09 (13.00) (1,315,237) 0 (189,252) (1,504,489) 0.00 0 0 0 0 FR_10 - Close one Fire Station 10 (13.00) (1,314,508) 0 (189,252) (1,503,760) 0.00 0 0 0 0 Total Reductions (52.00) (5,367,813) 0 (716,288) (6,084,101) 0.00 (40,000) 0 40,000 0
Portland Fire & Rescue 18 of 20 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Fire & Rescue Realignments
FR_27 - Carpenter Position Realignment 01 1.00 0 0 0 0 1.00 0 0 0 0 FR_28 - Electrician Position Realignment 02 1.00 0 0 0 0 1.00 0 0 0 0 Total Realignments 2.00 0 0 0 0 2.00 0 0 0 0
Total Portland Fire & Rescue (48.00) (3,977,699) 5,660,000 (674,052) 1,008,249 3.00 536,626 140,154 530,000 1,206,780
Portland Fire & Rescue 19 of 20 March 6, 2018 Portland Fire & Rescue 20 of 20 March 6, 2018 Budget Review | Fiscal Year 2018-19 Fire Police Disability & Retirement Analysis by Jessica Kinard
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $250.0 M $225.8 $225.8 $201.9 $178.7 $200.0 M $168.5 $175.0
$150.0 M
$100.0 M
$50.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
16.2 FTE 16.2 FTE 17.0 FTE 17.0 FTE 17.0 FTE 17.0 FTE
INTRODUCTION The Bureau of Fire & Police Disability & Retirement (FPDR) is responsible for managing the pensions and disability programs for sworn police and fire personnel. The bureau receives all revenues from a separate property tax levy on a pay-as-you-go basis where the levy is set to cover the anticipated requirements for one fiscal year. The FY 2018-19 Requested Budget estimates a levy equivalent to $1.10 per $1,000 of real market value (RMV), well below the City Charter Cap of $2.80 per $1,000 RMV. Even though bureau expenditures have increased 20% over the past five years, the City is unlikely to reach the Charter Cap due to increases in Portland’s Real Market Value.
Fire Police Disability & Retirement 1 of 4 March 6, 2018 KEY ISSUES Increased Expenditures in the Five-Year Forecast Over the next five years, FPDR requirements are projected to grow by 41%. Although the tax levy is projected to stay below the City Charter Cap due to increases in Real Market Value, property owners will be paying more in annual tax dollars. The assessed value rate is increasing by $0.03 per $1,000 of assessed value in FY 2018-19 to $2.68; property owners will thus pay an additional $3 in tax for every $100,000 of assessed property value. By FY 2022-23, this rate is projected to grow by $0.46 to $3.14, which will result in property owners paying an additional $46 per $100,000 of assessed property value. Overall cost increases are driven primarily by the fiscally responsible decision made by the City in 2006 to transition to a pre-funded pension plan for employees hired going forward, in addition to funding existing pay-as-you go pension plans. Costs will continue to increase as both plans are funded simultaneously until the early 2030s, when the relatively more expensive pay-as-you-go plans age out and costs will decline. Impacts to taxpayers will depend on the relative increases of the plan’s costs and growth in the tax base. Other factors are also FPDR Forecasted Bureau Expenditures are projected to impacting cost increases, as increase 41% over the next five years. Projected expenses evidenced by increases in this have increased since last years' forecast, primarily as a years’ five-year forecast in result of higher PERS contribution rates. comparison to last years’ 220 forecast (see chart). These 200 increases are primarily driven 180 by increasing Public Employee 160 $ M Retirement System (PERS) 140 contribution rates, which have 120 added $30 million in increased 100 FY18 FY19 Budget FY20 FY21 FY22 FY23 costs over the five-year Projection Forecast period. Local Cost of Living Adjustment (COLA) rate Expenditure Forecast as of February 2017 Expenditure Forecast as of Febuary 2018 increases and pay increases as a result of recent bargaining agreements with Portland Fire Fighter Association members have also added $5 million in increased costs over the five-year forecast. This forecast may be impacted by future changes in PERS contribution rates, higher-than projected wage inflation, and/or retirement rates.
Fire Police Disability & Retirement 2 of 4 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS FPDR submitted no decision packages in their FY 2018-19 requested budget.
SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of Fire Police Disability & Retirement’s total budget. Base budget expenditures are increasing primarily due to increased payments for Police and Fire sworn members and beneficiaries, as discussed in the Key Issues section above. The budgets are inflated due to the bureau’s issuance of Tax Anticipation Notes (TANs) to cover cash flow requirements before property tax revenues are received in November; net of these notes, the bureau’s FY 2018-19 base budget increased by $10.5 million over the FY 2017-18 adopted budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 9,808,579 $ 12,929,404 $ - $ - $ 12,929,404 Taxes 144,268,948 151,270,053 - - 151,270,053 Interagency Revenue 1,359,000 1,290,000 - - 1,290,000 Fund Transfers - Revenue 1,500,000 1,500,000 - - 1,500,000 Bond and Note 44,312,000 57,700,000 - - 57,700,000 Miscellaneous 664,300 1,143,400 - - 1,143,400 Total Resources $201,912,827 $225,832,857 $0 $0 $225,832,857
Requirements Personnel Services $ 2,143,014 $ 2,250,600 $ - $ - $ 2,250,600 External Materials and Services 128,012,797 134,477,237 - - 134,477,237 Internal Materials and Services 14,377,143 17,137,464 - - 17,137,464 Capital Outlay 46,451 42,850 - - 42,850 Bond Expenses 44,835,166 58,593,081 - - 58,593,081 Fund Transfers - Expense 1,670,378 1,807,625 - - 1,807,625 Contingency 10,077,878 10,774,000 - - 10,774,000 Unappropriated Fund Balance 750,000 750,000 - - 750,000 Total Requirements $201,912,827 $225,832,857 $0 $0 $225,832,857
Fire Police Disability & Retirement 3 of 4 March 6, 2018 Fire Police Disability & Retirement 4 of 4 March 6, 2018 Budget Review | Fiscal Year 2018-19
Office of Government Relations
Analysis by Yung Ouyang
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $2.5 M
$2.0 $1.8 $1.8 $2.0 M $1.6 $1.6 $1.5 $1.5 M
$1.0 M
$0.5 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
8.0 FTE 8.0 FTE 9.0 FTE 10.0 FTE 10.0 FTE 9.0 FTE
INTRODUCTION The Office of Government Relations (OGR) has proposed the elimination of the International Relations Associate position to meet the budget guidance to submit 5% reduction options. OGR is also requesting ongoing resources to add a Deputy Director position to manage operations as well as to work on regional relationships and issues.
Office of Government Relations 1 of 5 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues
$91,121 $0 $0
$76,803
$(37,457) $(37,457) $(44,440)
$0 $0 $0 $0
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE (1.0) FTE 1.0 FTE Requested (1.0) FTE Requested Recommended Recommended
Eliminate International Relations Associate GR_01, ($81,897), (1.00) FTE OGR proposes eliminating an International Relations Associate position that was recently vacant between November 2017 through March 2018, plus an additional $13,977 in personnel services. The position’s responsibilities include serving as a liaison to the leadership of Portland’s sister city associations, managing systems and processes to ensure the City’s International Relations program is compliant with City and State regulations, monitoring international developments in regions of the world that are of strategic importance to the City, and supporting communications for the program. OGR also had intentions of using the position to provide support to the new Tribal Relations program. A vacancy was created when OGR promoted the last associate to the position of Director of the International Relations program. While the position was vacant, OGR relied on the current program director’s strong existing relationships with the sister city associations, the local international community, and City bureaus during
Office of Government Relations 2 of 5 March 6, 2018 the slower winter months to manage the workload; the office states, however, that the program director is unable to be as responsive to incoming requests. The office states that it is not sustainable for one person to manage the entirety of the City’s International Relations program, and losing the position would hinder OGR’s ability to do succession planning for this type of work. With the programmatically intensive spring and summer months approaching, OGR filled the position to assist with the Portland Rose Festival, the annual sister city report, and the busy inbound and outbound travel season. Continuation of this position beyond the summer would be contingent upon funding. According to OGR, at least three of the office’s performance measures would be negatively affected by the elimination of the position: . Responsiveness to client requests would be reduced by 3%, from 100% to 97%
. The percentage of respondents rating services as “excellent” or “very good” would drop to 95% from 97%
. The number of international delegations received would decrease 30%, from 100 delegations to 70 delegations.
In FY 2016-17, OGR welcomed 14 fewer visiting delegations than its intended target of 100. The office states that fewer visiting delegations may mean fewer opportunities to promote the City’s economic development work. Measuring the impact of government relations work is difficult, although OGR is discussing ways to create a metric that assesses the economic and financial contributions provided by OGR. However, in light of the lack of direct and measurable impacts on the priorities identified in Mayor’s budget guidance, CBO recommends this reduction in order to close the current year budget gap. CBO Recommendation: ($81,897) | (1.00) FTE
Add Deputy Director/Regional Relations GR_02, $167,924, 1.00 FTE This request for an additional $167,924 in ongoing General Fund resources is for a Deputy Director position intended to manage bureau operations as well as work on regional issues with other local governments. If the position is funded, the office intends to split the position’s time evenly between the two types of work. OGR states that the addition of new programs over the years, including International Relations and the Tribal Liaison, as well as calls for a new program to handle regional relations, have left the OGR Director with limited capacity to work on strategy and policy issues. Hence, the office needs a Deputy Director to assist with operations and management functions, especially when the Director is in Salem or Washington, DC. The office states that it is already unable to attend to
Office of Government Relations 3 of 5 March 6, 2018 time-sensitive projects as quickly as it would like to due to inadequate staffing. Concerning regional relations, OGR sees significant deficiencies in the way the City is currently interacting with its regional partners in advancing the City’s agenda. It states that the lack of a centrally coordinated regional relations function can lead to inconsistent and sometimes conflicting interactions with regional partners. With the requested position, the office believes that conflicts on regional issues can be prevented before they arise and the City can become proactive and strategic in driving policy and outcomes at multiple levels of government, including on the state and federal levels. Two of the major issues where enhanced coordination on a regional level would be beneficial include housing and infrastructure, and entities across the metro area are already in discussion on how to leverage funding to address the region’s needs. The main performance measure that would be affected if the position is funded is the percentage of respondents reporting progress on state, federal, or intergovernmental issues, which the office indicates would be 5% higher, at 90%, than if the position is not funded. In light of the lack of available General Fund, CBO does not recommend funding for the position. CBO Recommendation: $0 | 0.00 FTE
SUMMARY OF REQUESTS AND RECOMMENDATIONS OGR is an overhead funded bureau, with expenses primarily related to personnel. In addition to the discretionary and overhead funding, OGR receives funding from various bureaus and Prosper Portland through interagency or intergovernmental agreements. External materials and services, in addition to basic operating supplies, includes a considerable travel budget as well as significant spending on contracted lobbying support in Washington, DC. Internal materials and services are primarily rent and other services provided by OMF. Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Intergovernmental Revenues $ 35,000 $ 35,000 $ - $ - $ 35,000 Interagency Revenue 189,305 196,000 - - 196,000 General Fund Discretionary 730,228 754,356 39,346 (76,803) 716,899 General Fund Overhead 859,617 883,784 46,681 (91,121) 839,344 Total Resources $1,814,150 $1,869,140 $86,027 ($167,924) $1,787,243
Requirements Personnel Services $ 1,279,929 $ 1,365,763 $ 86,027 $ (167,924) 1,283,866 External Materials and Services 308,300 316,000 - - 316,000 Internal Materials and Services 225,921 187,377 - - 187,377 Total Requirements $1,814,150 $1,869,140 $86,027 ($167,924) $1,787,243
Office of Government Relations 4 of 5 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of Government Relations Adds
GR_02 - Add: Deputy Directior/Regional Relations Pos 01 1.00 76,803 0 91,121 167,924 0.00 0 0 0 0 Total Adds 1.00 76,803 0 91,121 167,924 0.00 0 0 0 0 Reductions
GR_01 - 5% Reduction: International Relations Associa 01 (1.00) (37,457) 0 (44,440) (81,897) (1.00) (37,457) 0 (44,440) (81,897) Total Reductions (1.00) (37,457) 0 (44,440) (81,897) (1.00) (37,457) 0 (44,440) (81,897)
Total Office of Government Relations 0.00 39,346 0 46,681 86,027 (1.00) (37,457) 0 (44,440) (81,897)
Office of Government Relations 5 of 5 March 6, 2018
Budget Review | Fiscal Year 2018-19 Portland Housing Bureau
Analysis by Jane Marie Ford
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $250.0 M $214.1
$178.6 $176.0 $200.0 M $153.3 $150.0 M
$104.0 $96.7 $100.0 M
$50.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
56.9 FTE 56.9 FTE 53.9 FTE 66.9 FTE 73.8 FTE 69.9 FTE
INTRODUCTION The Portland Housing Bureau’s (PHB’s) FY 2018-19 Requested Budget focuses on implementation of the affordable housing bond and establishment of the Office of Rental Services. The bureau also previews the priorities in its forthcoming strategic plan. PHB’s budget includes funding for the Joint Office of Homeless Services, which has requested continuation of current year funding levels and new resources for alternative shelters, emergency coordination, and market cost adjustments. After several years of rapidly increasing funding, CBO recommends that the City and County utilize performance data to help determine how to prioritize resources in alignment with strategic goals. The funding decrease illustrated in the bureau’s FY 2018-19 requested budget
Portland Housing Bureau 1 of 20 March 6, 2018 does not represent a reduction in service, but rather reflects the planned spending of bond resources. KEY ISSUES Expansion of Services & Funding through the State of Housing Emergency Since the City declared a State of Housing Emergency in October 2015, the Portland Housing Bureau has dramatically expanded its programming, regulatory and asset management roles, and development resources at the direction of Council and in response to community input. The current year Revised Budget is the bureau’s largest ever at $224.5 million, approximately a 220% increase over just two years earlier. This includes record investments in homeless services, which supports $28.4 million in housing placement, retention, prevention, and shelter options through the Joint Office of Homeless Services. This expansion of investments across the entire housing spectrum has been funded primarily through the Tax Increment Financing set aside for affordable housing and homeownership, passage of the $258.4 million affordable housing bond in November 2016, and new ongoing and one-time General Fund resources allocated for homeless services.1
The City and Portland voters made historic investments in affordable housing and homeless services over the last two years. These resources are forecasted to decline significantly in FY 2024-25 due to the retirement of Urban Renewal Areas and expiration of bond resources.
$250.0 M
$200.0 M
$150.0 M
$100.0 M
$50.0 M
$0.0 M
TIF Revenue Housing Capital Fund General Fund Federal/ Grant Funding All Other Funds
1 Data source: Portland Housing Bureau’s 12-Year Forecast.
Portland Housing Bureau 2 of 20 March 6, 2018
PHB and the JOHS have responded to the direction from elected officials, advisory bodies, and community members as the region faces unprecedented growth following stalled housing development during and after the Great Recession. New funding has not only gone toward expanding existing capacity, but added entirely new lines of business – particularly in the case of the Housing Bureau, which has established a new Office of Rental Services and Development Incentives Team within just the last year. The State of Housing Emergency was originally set for one year, but has since been extended through October 2018. The bureau and Council are faced with the need to determine what level of service constitutes the new normal - versus an emergency - and fund that level of service sustainably. The majority of the funding added to address the unmet housing need has been one-time in nature and primarily for development of new housing units. Regardless of the Council- established level of funding going forward, it is critical that the Housing Bureau and Joint Office continue to use data, performance outcomes, and equity analysis to prioritize programs and services proving to have the greatest impact on housing supply, access, and retention. Reducing the Unmet Housing Need Shifting from Outputs to Outcomes The City and County created the new Joint Office of Homeless Services in FY 2016- 17 to meet an ambitious goal: reducing Portland’s unmet housing need by half by June 2017. The goal relied upon increasing systemwide capacity to meet specific targets for increasing housing placement and retention, prevention, and shelter beds.2 In all cases, the community met or significantly exceeded these targets.3 Additionally, there has been a strong emphasis on building capacity in culturally- specific organizations to work toward eliminating persistent racial disparities in homelessness.
2 A Home for Everyone: A United Community Plan to End Homelessness for Portland/Multnomah County. March 2013. Available at http://ahomeforeveryone.net/the-plan/. 3 The lower targets for FY 2017-18 and FY 2018-19 are conservative estimates 1) based on the original cost- per-service modeling and 2) reflecting uncertainty about future rent trends.
Portland Housing Bureau 3 of 20 March 6, 2018
AHFE FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Measure Strategic Actuals Actuals Actuals Actuals Target Requested Target Total number of homeless individuals 2,967 4,147 4,603 4,317 4,889 4,317 4,317 placed in permanent housing
Number of individuals prevented from 4,023 4,153 4,174 5,023 6,139 5,020 5,020 becoming homeless
Number of shelter beds N/A 658 1,203 1,308 1,309 1,324 1,370
The original funding commitment was based on a two-and-a-half-year investment, ramping down and shifting focus toward prevention and diversion services. However, inflow into homelessness continues to rise, as the Point in Time Count reflected a nearly 10% increase compared to 2015.4 More than 6,000 people accessed services last year who had not accessed homeless services in the previous two years. And although more people are being served now than ever before, there are over 2,000 individuals across all waiting lists maintained in the Homeless Management Information System.5
Given the continuing scope of the problem, it is unclear to what extent: initial targets may have underestimated the unmet need; additional services may be required to ensure that those placed into housing are able to remain stably housed; increased service availability may be reaching those who would not have previously accessed services; regional needs and trends in homelessness may impact Multnomah County; and how market limitations may be impacting both placement capacity and retention.
The Joint Office, A Home for Everyone, and Portland Housing bureau are all undertaking new research efforts to help understand how households enter into, out of, and return into the housing services spectrum. However, it will take one to two years for this research to be completed. In the interim, CBO recommends focusing on provider contract data to better
4 8 Krishnan, Uma and Elliot, Debi. 2017 Point-in-Time Count of Homelessness in Portland/Gresham/Multnomah County, Oregon. October 2017. https://tinyurl.com/yc9u2f56 5 Figures provided by PHB from the Homeless Management Information System; waitlist data is as of February 2018.
Portland Housing Bureau 4 of 20 March 6, 2018 understand outputs and outcomes by provider, population, and service type. This is currently challenging due to the lack of centralized system for contract funding and performance data; there is a high level of manual reporting and analysis required of JOHS staff. Some of this workload will be relieved by the addition of a recently-hired Senior Data Analyst, but CBO recommends considering opportunities to strengthen and streamline contract management. This may require a more prescriptive approach to data reporting and analysis at the Continuum of Care (COC) level to ensure consistency and alignment of efforts. Based on the Mayor’s budget guidance, CBO has recommended continuing FY 2017-18 funding levels, which includes 85% of all available one-time, non-capital General Fund resources. However, CBO also recommends that, prior to FY 2019-20 budget development, Council identify 1) long-term outcome goals for homeless services, 2) ongoing levels of service required to meet those goals, 3) the level of ongoing General Fund dedicated to this work, and 4) additional funding sources that can be used to close any gap between desired service levels and available City resources.
The City has increased its General Fund contribution for homeless services by approximately 160% over the last five years.
$28.4 M $27.9 M $28.1 M $24.1 M
$16.9 M $10.8 M $12.1 M
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 19 CBO Requested Recommended
General Fund - Revised Budget FY 19 Base Requested One-Time New Requested Ongoing
Aligning System Efforts: Chronic Homelessness In addition to direct funding for homeless services provided through the Joint Office, the City has also added new resources and reprioritized existing funding to deal with critical public health, safety, and space management issues. The Joint Office is currently leading development of a new Chronic Homelessness Plan with a prioritized set of recommendations to end chronic homelessness for as many people as possible.6 This includes strategies directly addressing alignment between
6 A Home for Everyone. Chronic Homelessness Plan Final Recommendations. February 7, 2018. Available at https://tinyurl.com/ya3bn93s
Portland Housing Bureau 5 of 20 March 6, 2018 public safety, public property managers, and homeless outreach workers. Currently, there are daily briefing calls with the Joint Office, Office of Management & Finance Facilities, Portland Bureau of Transportation, Portland Parks & Recreation, Portland Police Bureau, Oregon Department of Transportation, Metro, and other entities across the region. These calls identify high-priority sites for public space management, which outreach providers have previously been asked to visit on a volunteer basis. Embedded in the Joint Office’s FY 2018-19 current appropriation level (CAL) budget are resources for a new service navigation team that will prioritize outreach based on public health and safety concerns. CBO supports this change, and encourages the entities noted above to develop specific outcomes measures to guide their shared efforts. While playing different – and sometimes inherently conflicting – roles, the ultimate goal for all parties is to reduce the number of people who are living outside. The Joint Office has preliminarily identified promising strategies from the draft Chronic Homelessness Plan for immediate implementation and those for future development. CBO recommends prioritizing those options that create more shelter capacity and housing placements and provide intensive services to those who are experiencing homelessness and living with severe and persistent mental illness. CBO also recommends considering how to utilize citation data from all public safety and public property managers to prioritize access to shelter and housing placement opportunities Aligning System Efforts: Rental Registration In FY 2018-19, PHB will move forward in developing and implementing a new rental registration system to track the estimated 120,000 rental units within the city of Portland.7 This presents another crucial opportunity to collect data that can be used to inform strategic investments across systems. CBO recommends that the bureau work with the Joint Office, other City bureaus, and decisionmakers to identify current data gaps that could be met through the registration process. Ideally, this system would allow for easy integration of data from other City systems tracking development, code violations, crime reports, utilities, and census information to facilitate more robust analysis. Development of the new rental registration system is discussed in further detail below under Decision Package Analysis and Recommendations. Housing Production As noted above, the ability to provide households with placement and retention assistance is limited by the availability of housing. Last year, PHB is exceeded its goal of producing 500 newly affordable units annually, for an overall addition of 10,000 new regulated affordable housing units to meet the 2035 Comprehensive Plan target. This represents 8% of anticipated new housing stock. The remaining
7 American Community Survey Five-Year Estimates, 2012 – 2016.
Portland Housing Bureau 6 of 20 March 6, 2018 92% is expected to be delivered by the private market. This highlights the importance of calibrating incentives to promote development at all levels of affordability in addition to making direct, public investments. A one-year Inclusionary Housing update from the Bureau of Planning & Sustainability (BPS) notes a slowdown in permit activity that likely represents a combination of the phasing-in of inclusionary housing requirements and other market factors. As of September 2017, there were an estimated 19,000 units in the development pipeline, representing approximately four years of new housing supply; as of February 2018, the number has declined to approximately 10,000 units, or around 18-24 months of development activity if all units are delivered. Developer feedback highlights the problem of fiscal uncertainty when property taxes are assessed after the ten-year property exemption expires, particularly when paired with the 99-year affordability requirement. CBO echoes BPS’ and PHB’s recommendation to modify Inclusionary Housing Zoning Code and Program requirements to promote a healthy development pipeline; this includes examining the return on investment of the affordable units vested to date under this policy.8
DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $11,673,220 $10,473,220 Ongoing One-Time Other Revenues $- $- $- $-
$(140,572)
$2,035,000
$- $212,988 $- $(1,019,738) General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
8 Bump, Tyler. Bureau of Planning & Sustainability. Memo: One Year Review of Inclusionary Housing Zoning Code and Program. Draft: February 9, 2018. Available at https://www.portlandoregon.gov/bps/article/672661.
Portland Housing Bureau 7 of 20 March 6, 2018 0.0 FTE (0.1) FTE 4.0 FTE Requested (0.1) FTE Requested Recommended Recommended
Portland Housing Bureau Decision Packages PHB 5% Reduction HC_01, ($140,572), (0.00) FTE The bureau has submitted two expenditure reductions to meet the 5% ongoing General Fund reduction target. The first is a reduction of just over $30,000 in administration and support, primarily related to professional services, dues, and travel and conference expenditures. The bureau has indicated that it can absorb this reduction with minimal impacts on operations. The second cut reduces the Rental Rehabilitation program by $110,000. The Rental Rehabilitation Program was funded in FY 2016-17 but has not yet been implemented; therefore, the cut does not represent a reduction in services. Given limited ongoing General Fund resources available, CBO recommends this reduction. As discussed in further detail below, CBO recommends realigning the remaining rental rehabilitation funds ($580,000) to increase the Citywide home repair funding pool in FY 2018-19. CBO Recommendation: ($140,572), (0.00) FTE
Office of Rental Services HC_02, $2,000,000, 2.00 FTE In FY 2017-18, the City allocated nearly $2.0 million to support the first year of the new Office of Rental Services. This included a total of $600,000 in one-time General Fund resources, leaving the Office of Rental Services with an FY 2018-19 base budget of approximately $1.15 million. In the first six months of operation, 935 renter clients were provided direct services and 206 were provided with information and referrals, putting the bureau on track to meet current year service targets.9 The bureau is also tracking the number of successful referrals to PHB- regulated housing units using OneApp Oregon, a platform that helps match renters with available units in one centralized location. The Office of Rental Services’ ongoing budget includes funding for additional customer service for prospective renters who might need assistance to successfully use the tool. CBO and PHB have discussed the need to identify additional outcome measures that will be used to evaluate the Office’s impact on renters via housing placement and retention, and on landlords through decreased fair housing violations and increased code compliance.
9 Quarterly performance data is now published on the bureau’s new Data Window, available at https://www.portlandoregon.gov/phb/76186.
Portland Housing Bureau 8 of 20 March 6, 2018 For FY 2018-19, the bureau has requested $2.0 million in new General Fund resources for the following: . Legal services, education and outreach ($500,000 ongoing, $1.0 million one-time). In FY 2017-18, the bureau received $500,000 in one-time resources for expanded legal services, education and outreach. The bureau is requesting new ongoing resources to continue this funding level, and an additional $1.0 million in one-time resources for additional legal support, education, and outreach services to be provided through contracts with culturally-specific organizations. Despite being a one-time request, this resource will likely support new staff at these organizations, both the cost and need for which are expected to be ongoing. The Office’s base budget for FY 2018-19 includes a total of $508,000 for education and outreach and $90,000 for legal services.
. Development of mandatory rental unit registration system ($100,000 ongoing $200,000 one-time). While Portland has an estimated 120,000 rental units, there is currently no single source of reliable information on unit locations, ownership, and contact information. The Office of Rental Services has been charged with developing a rental registration system that will allow the bureau to enforce regulations, such as mandatory renter relocation assistance, to collect better data about non-regulated rental stock, and to track property code violations.
Residential property inspections are currently driven by complaints, which hinders the City’s ability to proactively identify and remedy code violations. Furthermore, complaint-driven processes are generally considered to be inequitable, as vulnerable populations are less likely to report violations for fear of retaliation.10 CBO’s understanding is that an official decision has not been made as to whether the registration process will include mandatory inspections, as is typically the case in other jurisdictions that have established registration programs. As discussed further below, mandatory inspections might allow the City to better calibrate incentives for repairs in exchange for regulated affordability. . Two new FTE to assist with administration and questions related to the new rental unit registration system ($200,000 ongoing, 2.00 FTE). This would result in four total employees dedicated to the Office of Rental Services, with additional support coming from the bureau’s data team.
While the bureau has requested new General Fund resources to support this work, rental registration programs are typically self-funded, either primarily or exclusively through registration and/or inspection fees. The fee structure varies on
10 Trinh, Stephanie, Law Student, and Melissa Wyatt. "An Analysis of Rental Property Registration in Austin July 2013." (2013).
Portland Housing Bureau 9 of 20 March 6, 2018 the following factors: the frequency of registration and/or inspection, what triggers the need for renewal, the type and number of units subject to registration and/or inspection requirements, and other considerations. These fees typically translate to no more than a few dollars per unit per month, having a minimal impact on rents.11 PHB, the Revenue Division, Bureau of Development Services (BDS), and Bureau of Technology Services have been engaged in conversations over the last 18 months about the technology requirements and potential fee structure of a rental registration system. CBO recommends that these entities propose fee scenarios that would fund part or all of the rental registration system. Key considerations include: . The ongoing level of outreach and education required to help both landlords and renters understand their rights and responsibilities, including culturally-specific services;
. The ongoing level of legal services the City intends to provide;
. Whether to require mandatory property inspections, and how this would impact BDS’ Neighborhood Inspection Program’s operations;
. The timeline for phasing in compliance for all rental properties across the City; and
. If a General Fund subsidy is required to provide the level of desired service without impacting rents.
The Quality Rental Housing Workgroup provided analysis and recommendations related to these issues in 2008 after a yearlong process including extensive public outreach and input.12 Given limited ongoing and one-time General Fund resources, CBO has not recommended allocating new General Fund revenue to support the Office in FY 2018-19. Based on year-to-date expenditures for the Office of Rental Services, CBO anticipates that the bureau will have one-time resources available to carry over to support operations – including limited term staff and development of registration system requirements - prior to implementation of any fees. The bureau could also choose to reallocate resources currently budgeted for the Rental Rehabilitation program, discussed further below, to support expanded outreach and assistance if this is a priority for FY 2018-19. CBO recommends that the bureau wait to add new
11 Ibid. CBO also reviewed information available online regarding current rental registration programs in Austin, TX; Boston, MA; Baltimore County, MD; Grand Rapids, MI; Gresham, OR; Indianapolis, IA; City of Los Angeles, CA; Medford, OR Nashville, TN; Seattle, WA; and Washington, DC. 12 Quality Rental Housing Workgroup. Final Recommendations. Adopted September 22, 2008. Available at https://www.portlandoregon.gov/fish/article/221397.
Portland Housing Bureau 10 of 20 March 6, 2018 permanent positions until 1) the details of the registration requirements have been clarified and 2) the bureau’s strategic planning process is completed so that the tradeoffs of the workload associated with these new responsibilities can be considered alongside existing bureau priorities. CBO notes that, as of the release of this review, Council is considering an ordinance that would make the mandatory relocation assistance policy permanent.13 This action would require the Housing Bureau to take on new responsibilities related to tracking relocation payments and exemptions. The workload associated with this policy change could pose a significant fiscal impact to the City, and the timing of these requirements may impact the request discussed above. CBO Recommendation: $0.00, 0.00 FTE
Rental Rehabilitation & Home Repair HC_03, HC_04 $0, 0.00 FTE; $500,000, 0.00 FTE In FY 2016-17, the bureau proposed to invest $1.5 million to provide conditional grants to landlords of properties in East Portland with outstanding code violations currently rented to households earning at or below 60% Area Median Income. In exchange for funding to address critical life and safety and/or health and sanitation issues, landlords would be required to maintain the units as affordable for a period of ten years. Based on the information provided at that time, this program was expected to be a cost-effective investment for addressing substandard housing while simultaneously increasing the regulated affordable housing stock. However, program rollout has been delayed for several reasons, including new data analysis indicating that fewer properties would benefit from these resources than previously estimated, a lack of incentive to restrict rents in the current market, and as discussed above, the absence of mandatory inspections and enforcement. Due to these delays, some of this funding was reprioritized on to help support the first year of the Office of Rental Services. In FY 2018-19, the bureau proposes to realign the remaining resources ($690,000, or $580,000 with the reduction in HC_01) to expand home repair funding for low-income households in East Portland that are not within the Lents Urban Renewal boundary. The bureau is further requesting $500,000 in new ongoing General Fund resources to increase home repair grant resources citywide. Overall, the bureau’s low-income home repair funding has increased by $6.7 million – approximately 400% - over the last five years. However, most of this
13 See Ordinance 188219, Amend Affordable Housing Preservation and Portland Renter Protections to add relocation assistance for involuntary displacements of tenants. Available at http://efiles.portlandoregon.gov/Record/10623592/.
Portland Housing Bureau 11 of 20 March 6, 2018 growth ($5.8 million) is restricted to the Lents and Interstate Urban Renewal Areas. In the current fiscal year, approximately $1.7 million is available for home repairs in other neighborhoods citywide. While budget guidance explicitly mentions creation of new housing stock, home repair grants contribute to the retention of existing affordable housing units. When compared to the cost of new development, a grant up to $6,000 is a cost- effective option for helping low-income, primarily elderly homeowners and/or people with disabilities remain safely and stably housed. Given the delay of the rental rehabilitation program, the number of households currently waiting for services, and the estimate of potential need based on census data, CBO recommends realigning the $580,000 currently allocated for the Rental Rehabilitation Program on a one-time basis for home repair grants in FY 2018-19. This represents new services for an estimated 97 households. Currently, grants are awarded on a first-come, first-serve basis; CBO recommends that the bureau develop criteria for allocating resources based on the urgency of repair, equity considerations, and City goals such as those outlined in the 2035 Comprehensive Plan and East Portland Action Plan. While CBO does not recommend restricting resources just to properties east of 82nd avenue, funding could be prioritized for households in these neighborhoods, consistent with vulnerability analysis from the Bureau of Planning & Sustainability.14 PHB is currently developing a new intake process for its home repair program that will facilitate better collection of data, assessment of citywide need, and evaluation of short- and long-term outcomes. CBO recommends that the bureau use this information, along with data collected by the Office of Rental Services, to determine how to prioritize resources to preserve affordable housing for both homeowners and renters as part of FY 2019-20 budget development. As the realignment already represents a significant expansion of grant resources, CBO recommends waiting to add new ongoing resources pending the results of this analysis. CBO Recommendation: $0 | 0.00 FTE
Conversion of Limited-Term Staff to Permanent HC_05, $0, (0.10) FTE The bureau has requested to convert three limited term positions to permanent, based on expected ongoing workload associated with these programs. This represents no net impact to the bureau’s budget, as the resources being used to support these positions are ongoing. . A January 2018 audit update recognized the work that PHB had done to
14 2035 Comprehensive Plan Vulnerability and Displacement Impact Analysis. Bureau of Planning & Sustainability. Available at https://www.portlandoregon.gov/phb/article/656906.
Portland Housing Bureau 12 of 20 March 6, 2018 improve monitoring of affordable housing projects.15 Given the new units expected to be added to the bureau’s portfolio through affordable housing bond resources, the bureau’s compliance workload is expected to continue to grow. Accordingly, CBO recommends converting the limited term Assistant Housing Program Specialist to permanent.
. PHB has made progress on a backlog of archiving and records management through temporary staff, but is requesting to create a permanent Office Support Specialist to both complete the backlog project and maintain records moving forward. This includes converting current paper processes to electronic records, which will ultimately lead to efficiencies in bureau operations. CBO recommends this request.
. The bureau is requesting to create a permanent position to track the rental and homeownership preference policy lists for implementation of the N/NE Neighborhood Housing Strategy, a community-driven plan to invest Tax Increment Financing resources in the Interstate Corridor Urban Renewal Area. This plan is intended to address historical redlining and current gentrification, with specific targets for preventing displacement, creating new homeownership opportunities, adding new rental units, and land banking for development.16 While the funding allocated to this investment has significantly increased, it is not clear to CBO whether the N/NE Neighborhood Housing Strategy is intended to be a permanent bureau program. Accordingly, CBO recommends that the bureau and Council clarify this issue before creating a permanent FTE. This work is currently being managed through a temporary appointment; a limited term position matching the anticipated duration of the preference policy application process may be a better option for ensuring program continuity.
. The bureau created a limited term management analyst in FY 2016-17 to assist with development of the Inclusionary Housing policy and program. This position has also taken on new responsibilities assisting with management of the bureau’s increased public advisory commissions, as well as helping to manage and triage the 54 housing policies in the 2035 Comprehensive Plan. The bureau is requesting to convert this limited term position to permanent based on this ongoing workload. CBO has had limited time to review this request as it was not included in the original submission, but recommends the conversion based on a) the volume of new, ongoing responsibilities that have been added to the bureau’s policy team and b) to facilitate effective triage, coordination, and implementation of 2035
15 Portland Housing Bureau: Improved monitoring to protect housing investments. Portland City Auditor, Audit Services Division. January 2018. Available at https://www.portlandoregon.gov/auditservices/article/667408. 16 Available at https://www.portlandoregon.gov/phb/74520.
Portland Housing Bureau 13 of 20 March 6, 2018 Comprehensive Plan housing policies.
CBO Recommendation: $0 | 0.10 FTE
Additional Staffing for the Housing Bond HC_06, $212,988, 2.00 FTE PHB is requesting to create two new management analyst positions to provide support for projects constructed or acquired through affordable housing bond resources. These positions would be funded through allowable bond administrative costs. The bureau has not yet identified the role these positions will play, but is concerned about staff capacity to manage new housing production once bond spending accelerates. CBO supports the bureau in ensuring that there is sufficient administrative capacity to manage bond projects, but also notes that bond resources are currently set to expire in FY 2024-25, requiring the bureau to either eliminate bond-funded positions or identify a new funding source at that time. The bureau added new FTE in the FY 2017-18 Fall Supplemental Budget to assist with bond implementation; one of these positions is currently in transition, and the other has not yet been filled. CBO recommends waiting until these positions are in place before adding new FTE, as well as considering how other existing bureau positions added in the last two years may be able to assist with bond-related workload. The bureau may submit any necessary requests for new positions in the Fall Supplemental Budget as workload needs become more clearly defined. CBO Recommendation: $0 | 0.00 FTE
PHB PSH Funding HC_12, $0, 0.00 FTE The City’s portion of the JOHS FY 2018-19 Requested Budget includes $8.2 million in supportive housing resources. PHB is requesting to retain $352,500 of Permanent Supportive Housing (PSH) resources within its base budget. This figure represents currently unprogrammed resources that the bureau would like to pair with City-owned affordable housing units. CBO and PHB are currently working together to assess the PSH tracking and monitoring process, identifying tools and processes to effectively track the addition of new supportive housing units and ongoing regulatory compliance. Providing PHB with budgetary control over PSH service funding could help the bureau to better ensure compliance with supportive housing in the City’s regulated portfolio. This includes the ability to secure PSH resources as part of the Notice of Funding Availability (NOFA) process. CBO will work with the bureau to determine the most effective ways to meet these needs while maintaining alignment with the existing coordinated access process
Portland Housing Bureau 14 of 20 March 6, 2018 through the Joint Office, ensuring that resources and outcomes are easily tracked across systems. CBO recommends waiting until this process review is complete before reallocating service dollars. CBO Recommendation: $0 | 0.00 FTE
Joint Office of Homeless Services Decision Packages JOHS Current Funding Level HC_07, HC_08 $9,594,054, 0.00 FTE The Joint Office’s total Requested Budget for FY 2018-19 is $61.0 million, an approximately 4% increase over the current year and 27% increase compared to its first year of operation.
Housing Placement & Retention $19. M
Safety off the Streets $18.3 M
Supportive Housing $11.4 M
Administration $2.8 M
Diversion Services $2.1 M City General Fund: $28.8 M Tax Title Affordable Housing $2.1 M County General Fund: $24.5 M Employment Programs $1.4 M State & Federal Sources: $7.7 M System Support, Access, & Coordination $1.4 M Total Requested Budget: $61.0 M New Requests $2.5 M
The figures above assume a 2% ongoing General Fund reduction from Multnomah County ($404,537) and a 5% ongoing General Fund cut from the City ($879,166). The Joint Office is also requesting $10.5 million to continue the City’s one-time General Fund contributions from FY 2017-18.17 This would maintain the same level of budgeted service capacity. CBO’s understanding is that the Joint Office is currently on track to expend its entire FY 2017-18 budget; therefore, any changes to the current funding level
17 The City’s one-time funding in FY 2017-19 includes new funding allocated through the Fall Supplemental Budget Process out of General Fund contingency resources. The “Tax Title Affordable Housing” represents a one-time resource that has been available to Multnomah County for provision of housing options that are affordable to youth and families with children with 30 percent or lower median family income (Program Offer #10057). In the current fiscal year, these resources have been used to meet increased demands on the family shelter system. This resource has not yet been programmed for FY 2018-19, but will likely be used to support a Family System Stabilization plan currently in development.
Portland Housing Bureau 15 of 20 March 6, 2018 could represent real service reductions. (CBO does note that performance data from FY 2016-17 and current year trends indicate that providers have been able to serve more individuals at a lower cost, and as such, the estimated number of households that can be served through continuing current funding levels is likely conservative.) As budget guidance prioritizes funding for decision packages that significantly reduce the number of people experiencing homelessness, CBO does not recommend the ongoing cut. CBO also recommends the one-time request of $10.5 million, which represents 85% of all one-time General Fund resources available for non-capital investments in the FY 2018-19 budget process. CBO Recommendation: $10,473,220 | 0.00 FTE
Emergency Management Position HC_09, $55,000, 0.00 FTE This request represents the City’s portion of a new Emergency Management position to help lead responses to emergency conditions that pose increased risk for people experiencing homelessness, such as severe winter weather. This position would also coordinate year-round work with public safety and outreach providers. Given limited ongoing resources, CBO has not recommended new funding for this position. However, CBO recommends that the Joint Office reallocate existing ongoing resources to support this work, which would facilitate better coordination between systems and connections to services for people living outside. CBO Recommendation: $0 | 0.00 FTE
Alternative Shelters (JOHS) HC_10, $505,000, 0.00 FTE This request adds new resources to create a more formal Alternative Shelter Program, providing a safe place to sleep and access resources for approximately 160 individuals. Examples of alternative shelters include tiny home villages, sleeping pods, sanctioned camping, and other community-based sites that also include access to hygiene and cooking facilities. Guidance from A Home for Everyone notes that these types of alternative shelter sites should be explored as temporary options absent sufficient shelter capacity, focusing on connecting residents to services and permanent housing opportunities.18 The Joint Office has set a goal of connecting 35% of those served (56 individuals) with permanent housing options. This target is based on case studies from the cities of Eugene and Seattle; there is not yet a full year of data available from Portland’s Kenton Village, a community of 14 female residents living in micro-housing sleeping pods with
18 See “Open Space ‘Pop-Up’ Shelter” under the Community Program Guidelines adopted by the A Home for Everyone Coordinating Board, April 6, 2016. Available online at https://tinyurl.com/ycydmlg2.
Portland Housing Bureau 16 of 20 March 6, 2018 shared access to cooking, sanitation facilities, social services and housing resources. Given the increase in chronic homelessness identified in the last Point-in-Time Count, CBO recommends continuing to explore alternative shelters on a pilot basis using one-time resources. At an average cost of $4,829 per individual, the total funding proposed to run the alternative shelter program in FY 2018-19, including existing resources, is within the same range as the cost of funding a shelter bed; should this prove to be an effective intervention for those whose needs are better met outside of traditional shelters, the Joint Office and its partners may consider providing ongoing support for these sites as part of the larger shelter continuum. The Chronic Homelessness Plan also outlines other creative shelter strategies for serving the complex needs of a highly vulnerable population that should be considered alongside existing sites. Therefore, CBO recommends waiting until the Chronic Homelessness Plan is complete and there is more data from pilot alternative shelter sites before adding new ongoing resources to this program. CBO Recommendation: $0 | 0.00 FTE
Market Cost Adjustment (JOHS) HC_11, $175,000, 0.00 FTE The Joint Office is requesting $175,000 from both the City and County in ongoing General Fund resources to increase the amount of rent assistance resources available to maintain current placement capacity. After several years of significant rent increases – an average total of nearly 30% between 2012 and 2016 - overall average rent increases slowed to 2% in 2017, a rate slightly lower than the rate of inflation.19 However, CBO recognizes that it is difficult to obtain accurate real-time rental market data that captures the nuances of different neighborhoods, unit sizes, and levels of affordability. JOHS providers are concerned that current limitations on eligible rents are low compared to the private market rents being charged where most housing placements occur. This package would increase the subsidy for which households are eligible in order to maintain the number of households served based on existing estimates of service costs. However, the Joint Office exceeded its housing placement goals by 13.2% in FY 2016-17,20 and is on pace to significantly exceed current year targets, with 4,528 homeless individuals placed into permanent housing in just the first two quarters of FY 2017-18 out of an annual target of 5,020.21 Therefore, while not recommending new resources at this time, CBO recommends a more robust analysis of provider data over the last several years to a) assess how the cost of
19 State of Housing in Portland Report, 2016. Estimate from 2017 provided by the Joint Office. 20 Presentation to AHFE Executive Committee, August 21, 2017. Exceeding System Goals: Continued Expansion to Scale, Outcomes: FY 2016-17. Available at http://ahomeforeveryone.net/progress/. 21 Source: PHB Data Window, available at https://www.portlandoregon.gov/phb/76186.
Portland Housing Bureau 17 of 20 March 6, 2018 individual placements have changed over time; b) identify the financial, administrative, and market barriers to placing individuals and families; and c) understand the outcomes for households based on the length and amount of assistance, by different demographics, and other factors. CBO also suggests utilizing data from 211info to better understand trends related to requests for assistance and unfulfilled housing needs. CBO Recommendation: $0 | 0.00 FTE
Portland Housing Bureau 18 of 20 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Portland Housing Bureau’s FY 2018-19 Requested Budget is 23% lower than the bureau’s FY 2017-18 Adopted Budget; however, the bureau anticipates budgeting additional resources from bond sales as more properties are identified for acquisition or development over the next several months. There is currently uncertainty about federal grant resources, which may impact PHB and the Joint Office’s service levels. The majority of the bureau’s budget is contained in external materials and services, which includes subrecipient contracts for homeownership access, retention, and rental support services; funding to support affordable housing projects (primarily through Tax Increment Financing dollars); and all funding for the Joint Office of Homeless Services. CBO has recommended the Joint Office’s one-time funding request to maintain FY 2017-18 current appropriation level, in alignment with the Mayor’s stated budget priorities. However, CBO has also recommended that Council determine the level of ongoing support that should be included in the JOHS FY 2019-20 Current Allocation Level Target based on desired service levels and outcomes. PHB’s personnel services budget continues to increase as new staff are added to manage the bureau’s new workload and responsibilities; as such, CBO has been conservative in recommending new positions that do not yet have clearly defined roles and expected outcomes, given the bureaus’ current projected decline in funding in FY 2024-25.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 9,334,940 $ 24,181,117 $ - $ - $ 24,181,117 Taxes 4,557,101 4,972,500 - - 4,972,500 Charges for Services 6,071,306 5,693,296 - - 5,693,296 Intergovernmental Revenues 99,589,873 80,270,660 - - 80,270,660 Interagency Revenue 115,838 119,320 - - 119,320 Fund Transfers - Revenue 1,183,543 1,194,767 - - 1,194,767 Bond and Note Proceeds 53,131,848 21,513,319 212,988 (212,988) 21,513,319 Miscellaneous Sources 10,306,470 7,305,452 - - 7,305,452 General Fund Discretionary 29,819,349 20,400,388 12,688,482 (1,855,834) 30,733,036 Total Resources $214,110,268 $165,650,819 $12,901,470$ (2,068,822) $175,983,467
Requirements Personnel Services $ 7,807,095 $ 8,371,604 $ 407,724 $ (407,724) $ 8,371,604 External Materials and Services 176,109,053 127,280,235 12,501,390 (1,661,098) 137,620,527 Internal Materials and Services 1,620,822 1,998,310 (7,644) - 1,990,666 Capital Outlay 11,510,600 20,363,750 - - 20,363,750 Debt Service 12,511,374 1,577,479 - - 1,577,479 Fund Transfers - Expense 1,384,348 1,640,563 - - 1,640,563 Contingency 3,166,976 4,418,878 - - 4,418,878 Total Requirements $214,110,268 $165,650,819 $12,901,470$ (2,068,822) $175,983,467
Portland Housing Bureau 19 of 20 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Housing Bureau Adds
HC_02 - Office of Rental Services 01 2.00 800,000 1,200,000 0 2,000,000 0.00 0 0 0 0 HC_04 - Anti-Displacement – Single Family Home Rep 02 0.00 500,000 0 0 500,000 0.00 0 0 0 0 HC_06 - Additional Staffing for Housing Bond 03 2.00 0 0 212,988 212,988 0.00 0 0 0 0 HC_08 - Current Appropriation Level (JOHS) 04 0.00 0 10,473,220 0 10,473,220 0.00 0 10,473,220 0 10,473,220 HC_11 - Market Cost Adjustment (JOHS) 04 0.00 175,000 0 0 175,000 0.00 0 0 0 0 HC_09 - Emergency Management Position (JOHS) 05 0.00 55,000 0 0 55,000 0.00 0 0 0 0 HC_10 - Alternative Shelters (JOHS) 06 0.00 505,000 0 0 505,000 0.00 0 0 0 0 Total Adds 4.00 2,035,000 11,673,220 212,988 13,921,208 0.00 0 10,473,220 0 10,473,220 Reductions
HC_01 - PHB 5% Reduction 01 0.00 (140,572) 0 0 (140,572) 0.00 (140,572) 0 0 (140,572) HC_07 - 5% Reduction (JOHS) 02 0.00 (879,166) 0 0 (879,166) 0.00 0 0 0 0 Total Reductions 0.00 (1,019,738) 0 0 (1,019,738) 0.00 (140,572) 0 0 (140,572) Realignments
HC_03 - Realignment – East Portland Programming 01 0.00 0 0 0 0 0.00 0 0 0 0 HC_05 - Conversion of Limited Term Staff to Permanen 02 (0.10) 0 0 0 0 (0.10) 0 0 0 0 HC_12 - PHB PSH Funding 03 0.00 0 0 0 0 0.00 0 0 0 0 Total Realignments (0.10) 0 0 0 0 (0.10) 0 0 0 0
Total Portland Housing Bureau 3.90 1,015,262 11,673,220 212,988 12,901,470 (0.10) (140,572) 10,473,220 0 10,332,648
Portland Housing Bureau 20 of 20 March 6, 2018 Budget Review | Fiscal Year 2018-19 Office of Management & Finance Analysis by Katie Shifley and Ryan Kinsella
Adopted Budget Revenues ---555- 5---YearYear Lookback Other Sources General Fund $651.1$651.1$651.1 $647.8$647.8$647.8 $700.0 M $590.7$590.7$590.7 $600.0 M $485.2$485.2$485.2 $467.6$467.6$467.6 $500.0 M $421.7$421.7$421.7 $400.0 M
$300.0 M
$200.0 M
$100.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
627627627.0 FTE 636636636.0 FTE.0 FTE 647647647.0 FTE.0 FTE 661661661.0 FTE.0 FTE 653653653.0 FTE.0 FTE 667.5667.5667.5.0 FTE.0 FTE
INTRODUCTION The Office of Management & Finance is the City’s primary central service provider, offering services to bureaus including technology, fleet management, facilities management, human resources, procurement, accounting, debt management, printing, and risk management among many others. In FY 2018-19, OMF will face challenges in addressing the overall space needs of the City, particularly in light of the Portland Building, the Jasmine Block project, Portland Fire & Rescue’s Logistic Center, the Jerome Sears Building, and the various space planning needs of the Portland Police Bureau. In addition to these major projects, the bureau is also working to implement a revised customer feedback model and will inform the alignment of its service offerings with the demands of customer bureaus.
Office of Management & Finance Page 1 of 50 March 6, 2018 KEY ISSUES Responsiveness to Customer Needs – Communication and Resources The Office of Management & Finance has embarked on several efforts over the past year to improve responsiveness to customer needs; these efforts included facilitated conversations with customer bureaus in response to a FY 2017-18 budget note. The budget note tasked OMF with working with customer bureaus to develop options and make recommendations to ensure that support services are able to meet the demands of City bureaus, especially with regard to funding models and resources. These efforts primarily focused on Procurement and the Bureau of Human Resources, and yielded several strategies intended to strengthen customer feedback --- feedback intended to inform the budget process. These strategies included: OMF and customer bureaus engage annually in a robust assessment of bureau service needs and use that information to project workload changes for BHR and Procurement. This forward-looking projection could be incorporated into the budget development process, OMF continue to define its levels of service and use performance measures to inform demand and quality of service. These strategies aim to realign OMF services with customer needs, recognizing that internal services are effectively extensions of customer bureaus and that customer bureau decisions around consumption of internal services should be a primary input in how resources are allocated. Ultimately, OMF’s primary goal is to support the City as it serves Portland residents. Building upon OMF’s progress, the Mayor issued a memo to the OMF Budget Advisory Committee directing them to clearly and explicitly indicate its support for add and reduction packages relative to their own bureau priorities. The Bureau of Technology Services engaged in a robust customer feedback process for its budget development, soliciting feedback from its Customer Stakeholder Group and customer bureau leadership for all add packages. This process clarified the specific demands of the customer bureaus and narrowed the requests to three key packages, all of which were supported by the bureau’s customers. CBO has consequently recommended these requests and would encourage OMF to employ a similar prioritization framework with its other customers. Outside of BTS, the degree to which appropriate staff in customer bureaus provided robust feedback is uncertain. The current structure of the OMF Advisory Committee is not well-suited to elicit this type of feedback, and CBO recommends that OMF continue to develop opportunities for bureaus to weigh-in on proposed budget and operational changes.
Office of Management & Finance Page 2 of 50 March 6, 2018 Notably, OMF convened its first Customer Work Group in November, chaired by the Bureau of Environmental Service Director, whose explicit intent is to inform service expectations and provide recommendations for building and/or strengthening budget and service level discussions. Unfortunately, this group was not able to provide feedback for the FY 2018-19, but CBO supports the work and anticipates the valuable feedback of this group in preparation for future budget processes. Several OMF requests reflect the demands of customers (and are consequently recommended by CBO in this review): BTS - PC/Laptop Lifecycle Replacement Schedule (MF_05) (Recommended to be funded within current resources) BTS - Enterprise Mobility Management (MF_06) BTS - Microsoft Enterprise Mobility + Security (MF_07) BHR-Employment and Outreach Add (MF_20) OMF has suggested that Council reconsider the impact on central services following key decisions during budget development, which is a strategy that is supported by CBO. For example, if Police receives 64.0 new officers as requested, the impact on BHR should be evaluated. Similarly, approval of large additions to capital improvement plans are likely to require additional procurement services in out-years, and OMF should use the budget process to request resources in response to the implementation of the prior year budget decisions. However, without service level agreements, descriptions of services, meaningful performance measures to communicate the demand for and effectiveness of its services, it will remain challenging for OMF to prioritize its services to customers, to understand the need for greater or lesser services, to communicate its value to customer bureaus and elicit their support for additional resources, and to evaluate customer demand relative to price. These types of agreements exist in parts of OMF but are inconsistent. In an effort to establish and communicate service levels, BHR recently created and began tracking a complete recruitment cycle time measure. Moving forward, they will assess effectiveness of their efforts according to this measure. Centralized Space Planning Function A substantial number of space planning requests have come forward from OMF in recent years. Some of these requests, such as the Portland Building Reconstruction project, were heavily vetted and supported by OMF, while others are put forward by OMF on behalf of customer bureaus. In some cases it is not clear if these requests are prioritized from a centralized space planning perspective. In either case, when these projects are funded on a piecemeal basis absent a comprehensive and multi-year space plan for City staff, they may not make sense when viewed over the long term. In the last several years, major space planning proposals have included the following:
Office of Management & Finance Page 3 of 50 March 6, 2018 Portland Building Reconstruction Project ($195 million), Jasmine Building project ($22.3 million), Relocation of ONI to new leases offices ($750,000), Relocation of the Police Bureau Central Precinct ($1.7 million in temporary costs, plus a $150 million new construction project), Tentative proposal to purchase the Banfield property ($34 million), Tentative proposal to develop an Eastside Customer Service Center (cost unknown). Kerby Master Plan (cost unknown) Portland Fire & Rescue’s Logistics center Jerome Sears Building Combined, these projects represent over $400 million in additional costs to the City, with millions of dollars of increased debt service payments borne by the General Fund. This is not to say that these projects are unwarranted, but it is important to be sure that they are part of a comprehensive space plan for the City. OMF serves dual and sometimes conflicting roles as both customer service provider and provider of a centralized governance and policy. This tension is particularly clear around space planning; OMF often provides property identification and develops financing options for customer bureaus, but there is greater opportunity to coordinate and prioritize these requests through a decision-making framework informed by the City’s long-term space planning needs. As part of the $18.8 million decision to purchase furniture and fixtures for the Portland Building separately from the project budget (Space Optimization, Resolution 37274), $50,000 was included for OMF to perform a “Citywide study to determine the tenancies for the Portland Building, the 1900 Building, and the Jasmine Block Building.” This provision was included primarily because there were outstanding questions over what the business case would be to move forward with the Jasmine Block project absent any clearly identified tenant need for the additional City space. The requested budget includes a General Fund decision package for the cash financing of this project though, to date, the progress has been limited on this study since approved by Council in March 2017 (see additional analysis in MF_32). At present, the City does not have a strong centralized function dedicated to understanding long term space planning needs for City staff and the prioritization of those needs. The risk of this approach is two-fold: the City is unable to plan for large future (and currently unknown) space planning expenditures, and available near-term planning and project delivery resources will be allocated on a first-come first-serve basis. CBO recommends that OMF expedite the planned tenancy study in the downtown core, and expand the scope of the study into a robust Citywide space planning function. OMF has the Citywide perspective, convening expertise, property management knowledge, and financial expertise to identify, vet, and prioritize
Office of Management & Finance Page 4 of 50 March 6, 2018 customer bureaus future space planning needs over a 5 - 10+ year horizon. This type of long-term vision is essential to accurately forecasting the budgetary impacts of the City’s space needs, and avoiding situations where one-off space planning investments are made either in isolation from a comprehensive plan or without a strong tenancy plan. Arts Tax Cost Limitation Since the inception of the Arts Education and Access Income Tax (Arts Tax) in FY 2012-13, the cost for collection of this tax has exceeded the cost limitation in City Code, which requires that “collection and administration costs of the Arts Tax not exceed 5% of gross revenue collections over a five-year period.” Over the past five years, collection costs have averaged around 7.7% of gross revenue, though going forward collection costs are expected to reflect the three-year average of 8.9% (approximately $1 million). The Revenue Division director delivered a memo to Council in August 2017 outlining several options to bring spending on Arts Tax collection into compliance with City Code, either by amending the code itself or by providing a General Fund subsidy1. The Arts Tax Citizen Oversight Committee (AOC) and the Revenue Division both recommend a change in City Code to alter the cost limitation to a $1.2 million collection and administration budget, while the Regional Arts and Culture Council (RACC) recommends that the City’s General Fund subsidize collection of the Arts Tax by $500,000 - $700,000 annually. The former would require City Code change but avoid a General Fund subsidy, while the latter would avoid a code change but redirect General Fund resources away from other City priorities to maximize the Arts Tax revenue received by RACC. Arts Tax disbursements to the six school districts total approximately $7 million annually; revenue in excess of these disbursements, less administrative and collections costs, is distributed to RACC and awarded as grants in the arts community. In recent years, this disbursement of Arts Tax dollars to RACC has been in the $2 million - $3 million range, which is in addition to the $4.3 million in General Fund resources allocated to RACC via a Special Appropriation. Adherence to the cost limitation without any further action will result in lower collections overall; the Revenue Division estimates that approximately $2.5 million in Arts Tax revenue will be foregone if the cost limitation is not increased or otherwise addressed because current spending on enforcement activities will be reduced. This would primarily impact the disbursement to RACC, as voluntary compliance with the Arts Tax is generally sufficient to meet the disbursements to the school districts2. If
1 The memo from the Revenue Division director to Council regarding the Arts Tax cost limitation can be found here. 2 The Revenue Division notes that this tack would be inadvisable. Voluntary compliance will likely begin to decline if collections spending is limited to 5% of current Arts Tax revenue as the dollar amount is insufficient to cover enforcement efforts.
Office of Management & Finance Page 5 of 50 March 6, 2018 Council determines not to take action to amend City Code to alter the cost limitation, as recommended by the Revenue Division and the AOC, CBO would recommend Council consider offsetting the annual Special Appropriation with RACC ($4.3 million) by the $500,000 - $700,000 in General Fund subsidy that would otherwise be required to meet the cost limitation, and transferring that resource to support Arts Tax collection. This budgetary strategy would essentially be revenue-neutral for RACC; the Special Appropriations reduction would be offset by additional disbursement to RACC of Arts Tax dollars that are currently going toward enforcement efforts. OMF is currently renegotiating the City’s agreement with RACC, and it is an opportune time to address the cost limitation issue without amending City Code or otherwise committing the General Fund to a new and ongoing subsidy of the Arts Tax. Portland Building Reconstruction Project The Portland Building Reconstruction project budget was originally set by Council at $195 million, with the reconstruction timeline not to extend past 2020. The reconstruction project has made substantial progress thus far in FY 2017-18, successfully transitioning tenant bureaus to temporary locations and turning toward in-depth design work in the coming months. FY 2018-19 will be a critical year for the project, as the design work pivots toward full reconstruction. The project team will continue to draw on a line of credit for the project during construction, prior to a bond issuance to pay off the line of credit in FY 2020-21. As the project has progressed, a number of issues have arisen that will have budgetary impacts: Changes to cash financing. The annual leases for temporary tenant space are not allowable as a capitalized cost, and the difference between the Portland Building rental rates and the temporary lease space is being funded from increased cash contributions from tenant bureaus. This increase in cash funding has been partially offset by lower interest costs based on a shorter presumed project timeline, and other adjustments have been made to hold BES and Water harmless for the $1.7 million ‘2% for Art’ contribution3. The impact of these changes is to increase the total cash contribution to the project by $5 million (from $20.8 million to $25.8 million), which will be paid by tenant bureaus in FY 2018-19. The current impact to the General Fund is a $1.5 million additional cash contribution (increasing from $1.6 million to $3.1 million). An alternative to this approach would be an increased contribution from the Portland Building major maintenance reserve ($14 million balance) to fund increased cash contribution for all tenants. Changes to Space Optimization assumptions. On the advice of the
3 The project team determined that BES and Water cash contributions are not eligible for 2% for Art, and subsequently increased the cash contribution from other tenants.
Office of Management & Finance Page 6 of 50 March 6, 2018 reconstruction project team, Council adopted an $18.8 million Space Optimization Plan that would fund 1) the purchase of a standardized kit of parts that would allow for additional approximately 400 additional employees 2) the buildout of 2.5 floors not included in the project scope and 3) a space planning study of tenancy in the downtown core. The $18.8 million will be added to the total project bond issuance and funded via increases to the downtown blended rate, but will not be included in the $195 million project budget. The 400-employee estimate included an assumed increase of 220 employees from existing Portland Building tenant bureaus, and the flexibility to bring in an additional 192 employees from space that is currently leased. New estimates of tenant bureau growth indicate that bringing in 192 employees from out-leased space may not be feasible, and the space optimization funding will likely only cover the needs of existing tenant bureaus’ growth. CBO recommends that OMF expedite its study of tenancy and space planning options in the downtown core to inform tenancy decisions around the Portland Building, 1900 Building, and Jasmine Block building. Unfunded technology needs. The reconstruction project team set a defined scope of work for the $195 million project budget, but this scope of work excludes several technology projects that will be critical to the successful reentry of tenant bureaus in 2020. In particular, the project budget does not account for the following: o Audio/visual hardware throughout floors 1 and 2 o Audio/visual hardware in conference rooms spaces on floors 3 - 15 o Printers and copy machines on floors 1-154 o Printing management software solution and integrations with permissions o Software solution for conference room scheduling and implementation o Security system and implementation (hardware is included in project budget) There are several other technology projects that would enhance the reconstructed building, but do not necessarily need to be in place upon tenant bureau reentry (i.e. 311 system in the customer service center). However, the A/V hardware, printing, copy, security and room scheduling systems are critical components of a fully functional office space, and these technologies will need to be in place in 2020 if the reconstructed building is to meet the operational needs of tenants. The project team is in the early stages of scoping these projects; detailed cost estimates for these projects are not yet available, but low confidence estimates suggest costs in the $2 - $5 million range. This cost estimate is exclusive of
4 It is not yet clear to what degree existing tenant-owned copiers and printers will meet the needs of the reconstructed building.
Office of Management & Finance Page 7 of 50 March 6, 2018 project management costs, which will also be substantial. Most projects will require an implementation timeline of at least 18 months (procurement through training of city staff on systems). These technology needs are currently unfunded, and the intended source of funding is unclear. These projects are not in the reconstruction scope as defined by the project team, but they are clearly core components of a functional reconstructed office building. CBO recommends that these projects be given consideration for funding from the project budget, especially to the degree that sufficient contingency is available. If the project budget is unable to cover these costs, they will ultimately fall to tenant bureaus. In this case, CBO would recommend that OMF identify any appropriate sources of funding from existing equipment and technology replacement reserves in the near term (i.e. printer and copier replacement reserves). Absent sufficient or appropriate funds for these projects, CBO recommends that OMF provide tenant bureaus an estimate of their share of total costs in the near term and establish a Portland Building Reconstruction project equipment/technology replacement reserve so that bureau can apply any underspending toward these costs over the next several years.
Office of Management & Finance Page 8 of 50 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS AddsAddsAdds ReductionsReductionsReductions
$21,605,02$21,605,02$21,605,02 GeneralGeneral Fund General Fund $20,510,18$20,510,18$20,510,18 6 3 OngoingOngoingOngoing One-TimeOne-TimeOne-TimeOther Revenues $101,191 $53,167
($756,376)($756,376)($756,376) (($396,198)$396,198)($396,198) ($677,304)($677,304)($677,304) ($4,123,882)
$5,241,384
$2,322,726 $1,420,194 $$168,403168,403
GGeneraleneral Fund General Fund Other Revenues OngoingOngoingOngoing One-TimeOne-TimeOne-Time
Bureau Request CBO Recommendation
181818.018.0 FTE 121212.012.0 FTE (((23.5(23.523.523.5)))) FTE (3(333.0.0.0.0)))) FTE
RequestedRequestedRequested Recommended RequestedRequestedRequested Recommended
BUREAU OF HUMAN RESOURCES BHR-Employment and Outreach Add MF_20, $368,198, 3.00 FTE This package would add $168,403 in General Fund discretionary and $199,795 in General Fund overhead resources, which would replace funding for two current interagency-funded positions (BDS and PBOT) and add one new FTE to the Employment and Outreach division. As part of the FY 2017-18 Adopted Budget, Council included a budget note directing OMF to “develop options and make recommendations to ensure that support services are able to meet the demands of City bureaus.” Following this direction, OMF engaged bureaus over the past six months, focusing on primarily the areas where customers have been particularly vocal about their needs: procurement and recruitment. BHR began discussing recruitment service levels with customers, aiming to identify the desired service levels. This package is intended to respond to customer feedback that was provided in those discussions.
Office of Management & Finance Page 9 of 50 March 6, 2018 Moreover, this chart below highlights the increasing demand for recruitment services while the number of Employment and Outreach positions has remained relatively flat. Funding for this package has two purposes: first, it would Number of recruitments continue to increase replace the sources for two while Employment and Outreach staff support positions that are currently 1200 remain the same. 15 funded by interagency agreements with PBOT and 1000 13 BDS. This “pay to play” model 800 11 has led to inefficiencies in how 600 9 recruitment requisitions are FTE distributed across BHR analysts. 400 7 Second, this package adds an Number of Requisitions 200 5 FTE to support increased engagement between bureaus 0 3 and BHR through the entire FY13 FY14 FY15 FY16 FY17 recruitment process. Fiscal Year
Through a series of process Number of Requisitions FTE Employment & Development improvements, BHR has decreased average recruitment time from 135 to 103 days. These process improvements included increased strategic outreach, expedited scoring for minimum qualifications, integration of SAP and NeoGov, and faster provision of eligible lists to bureaus. CBO notes that this is a well-developed request given BHR’s recent engagement with bureaus, the commitment to quantifiable service levels, and the willingness to take ownership of the entire recruitment process from requisition to first work day. Recommended as requested. CBO Recommendation: $368,198 | 3.00 FTE BHR – Site Team Manager Cut MF_28, ($180,000), (1.00) FTE This package would eliminate one vacant Site Team position, resulting in General Fund discretionary savings of $82,327 and General Fund overhead resources of $97,673. Recently the Site Team division underwent a significant reorganization. Previously, bureau HR Business Partners were supervised by a team of three Site Team Managers who coordinated their services and support. Under the new structure, management of bureau business partners were merged under one Employee Relations Manager (except the Police Site Team, which will remain unaffected). As a result of this reorganization, two Site Team Manager positions were reorganized to other pressing bureau needs, but a third vacant Site Team Manager proposed for reduction has not been reallocated to another function. If this reduction
Office of Management & Finance Page 10 of 50 March 6, 2018 is not taken, the position would be reclassified into a second data analyst position within BHR that would be tasked with developing a reporting strategy, providing a framework for the storage and retrieval of data from multiple levels of City organization. Due to no longer needing the site manager position, CBO recommends this reduction. CBO supports the need for further data analytics within BHR, and if this data analyst position cannot be funded with internal resources, CBO recommends that BHR request funding for this position in a future budget process. CBO Recommendation: ($180,000) | (1.00) FTE BHR - Citywide Training Fund Cut MF_29, ($95,000), 0.00 FTE This reduction would eliminate the current balance of the Training Fund of $95,000, which was created for employee tuition reimbursement and funded by administrative fees paid by bureaus for citywide trainings. This program has had very low utilization over the past five years, primarily due to the limited amount of funding available. CBO notes that the elimination of this fund generates one-time resources, but that BHR is proposed an ongoing cut. To absorb this cut beginning in FY 2019-20, the bureau will need to identify an ongoing reduction. As noted by the bureau, the Employer of Choice initiative identifies training and work development as a key area; however, specific strategies and resources needed to support these strategies have not been defined. Citywide, $4.0 million is budgeted within bureaus for education and training needs. Historically, nearly all bureau education funds have been spent. CBO also notes that recent DCTU and PTE 17 contracts require dedicated funds for training. DCTU employees now have access to $200,000 per fiscal year for professional development, and there is $225,000 for employees in Professional & Technical Employees Local 17. CBO Recommendation: ($95,000) | 0.00 FTE BHR – Labor Relations Coordinator Cut MF_30, ($146,850), (1.00) FTE This package would eliminate a Labor Relations Coordinator position, resulting in $67,165 of General Fund discretionary savings and $79,685 General Fund overhead resources. The Labor Relations Team supports the City’s relationships with nine labor unions by negotiating contracts and assisting bureaus with labor issues, including employee disciplinary issues and potential grievances. Similar to other internal service functions, assessing the fluctuations in workload and effectiveness of services is not easily quantified with data or performance measures. As such, CBO has not been able to evaluate what specific impacts might result if this position is eliminated in terms of changes to labor negotiations or bureau support, other than to generally conclude that these functions will be performed less effectively. Under new leadership, BHR has recently recommitted to improving its
Office of Management & Finance Page 11 of 50 March 6, 2018 performance management efforts, engaging CBO in discussions on possible measures of core functions while also reallocating a position to data analytics in last year’s process, and investing in system improvements to NeoGov - the City’s system for tracking recruitments and the hiring process. These efforts will help to quantify the effectiveness and efficiencies of BHR programs, potentially including Labor Relations. Specific measures for the Labor Relations Team may include measures for the number of grievances/complaints filed, number of days to settle an agreement, and the average cost of settlements. Given that the City’s agreements with labor unions continue to be a key driver of overall City costs, CBO has concerns with eliminating this position and does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE BHR – Reception Services Realignment MF_31, $0, 0.00 FTE This reduction will allocate a share of the cost of the Office Support Specialist III reception position in the Bureau of Human Resources to the Bureau of Technology Services (BTS) and Risk Management, resulting in General Fund savings of approximately $28,761 per year. Recommended as requested. CBO Recommendation: $0 | 0.00 FTE
Office of Management & Finance Page 12 of 50 March 6, 2018 CHIEF ADMINISTRATOR OFFICE Bus Ops – Strategic Plan and Fee Study MF_09, ($127,685), 0.00 FTE This package reduces funding for OMF strategic planning activities, the fee study for internal services, and a temporary position, resulting in savings of $58,399 in General Fund discretionary and $69,286 in General Fund overhead resources. Fee Study. Business Operations has not identified which projects would be delayed or not addressed if the study was conducted in-house rather than contracted to an outside consultant. CBO recommends this fee study be included within Business Operations internal overhead allocation that is charged to the fee-based bureaus every three years rather than funding this request within General Fund overhead resources. Strategic Plan. If funding is cut for the strategic plan, outreach and engagement to inform the next steps in the OMF’s strategic plan implementation would be conducted in-house at the opportunity cost of displacing other work. Given the need to reprioritize resources towards other City needs, CBO recommends this reduction, anticipating there will be little direct service impact. Temporary staff position. Funding for a temporary staff position is used on an ad hoc basis, most recently for an archiving project related to the Portland Building move, but there are no planned projects for this position in FY 2018-19. Without specific tasks or plans for this position, the impacts are unknown and so CBO recommends this reduction. CBO Recommendation: ($82,685) | 0.00 FTE Bus Ops - Add Accounting Tech Position MF_13, $60,318, 1.00 FTE This request would add funding of $9,109 of General Fund discretionary, $10,808 in General Fund overhead resources, and $40,401 in internal overhead resources to fund one Accounting Tech position. As noted within the request, workload demands have increased for the team that processes accounts payable, accounts receivable, billings and transactions. The increase in these activities reflects the parallel increased demand for administrative support as other direct services increase and projects initiated across OMF Based on the requirement of some contracts that payment is received within 30 days of invoice, a performance target has been set that 90 percent of all invoices are paid within 30 days. Historically, the bureau been close to achieving this target; however, in FY 2016-17, 82 percent of invoices were paid within 30 days, reflecting an uptick in workload. If not funded, payment to vendors will likely be delayed, potentially impacting the City’s ability to conduct business with these vendors in the future. To address this uptick in demand, Business Operations has implemented several
Office of Management & Finance Page 13 of 50 March 6, 2018 process improvements related to how invoice processing is distributed and managed amongst staff. Given the bureaus ability to mitigate current workload demands within current resources, CBO believes that the funding this position is not urgent, particularly given the limited availability of General Fund resources. CBO Recommendation: $0 | 0.00 FTE
Office of Management & Finance Page 14 of 50 March 6, 2018
BUREAU OF TECHNOLOGY SERVICES In addition to the following budget requests, CBO has also made recommendations to allocate Public Safety Technology reserves, which will have an anticipated balance of $3.1 million (after accounting for personnel costs of two employees funded via these resources). Unspent resources from the Public Safety Systems Revitalization Program (PSSRP) created this balance, and is intended to be spent on the highest need public safety technology projects. Earlier this fiscal year, public safety bureaus identified $3.1 million in technology needs, including replacement of mobile digital computers for Police; an integrated priority dispatch system and Next Gen recording, for the Bureau of Emergency Communications; inspection software, mobile digital computers, WiFi at stations for Portland Fire & Rescue, and consultant services for a potential RegJIN replacement. CBO has recommended that all of these projects be funded within these resources. To the degree that there is additional resource available due to anticipated radio project rebates, CBO recommends these funds be reserved either for potential RegJIN replacement project or for projects related to the Public Safety radio system. PC/Laptop Lifecyle Replacement Schedule MF_05, $233,577, 0.00 FTE This package would increase interagency costs by $233,573 including $115,860 for General Fund bureaus, which would fund a shortened life cycle replacement schedule of desktops and laptops from five years to four years. Bureaus have expressed issues with older machines performing poorly or failing before they are due for replacement, and as a result, customer bureaus have ranked this package the highest amongst BTS’ request. Approximately three-quarters of bureau respondents indicated that they support this package, of which 11 indicated that they were willing to fund the package from within the bureau's resources. The specific impact of employees using older workstations is difficult to determine. The number of HelpDesk tickets related to issues specifically due to older machines is not tracked, and BTS does not track the annual costs of hardware repairs that result from older machines. However, industry standards are four to five-year replacement cycle for desktops and a three-year replacement cycle for laptops. The next lifecycle replacement is scheduled for October 2021. If this package is approved, then the new cohort of replacements would begin in October 2020. Bureaus are allowed to purchase workstation replacements outside of the scheduled cycle within bureau resources; however, BTS established a regular replacement cycle for all bureaus – rather than bureaus deciding upon the replacement cycle – due to the challenges of providing support for differing hardware requirements and the compatible software requirements. CBO recommends this addition but without new General Fund funding, given that the
Office of Management & Finance Page 15 of 50 March 6, 2018 majority of bureaus are willing to pay for the increased replacement cycle within current resources. CBO Recommendation: $0 | 0.00 FTE Increased Security and Support for City’s Mobile Devices MF_06, MF_07, $830,090, 2.00 FTE BTS has requested funding for two packages that broadly support the secure and efficient use of mobile devices. Enterprise Mobile Management. This package would increase interagency costs by $319,805 including $143,602 for General Fund bureaus to fund the centralized management of City mobile devices (“Enterprise Mobile Management”). Enterprise Mobile Management is intended to address data security of mobile device and improve efficiencies in deploying and supporting devices. Specifically, funding would support the annual licensing/maintenance for the mobility management platform and two positions: (1) a Support Center position that would provide mobile device technical support, mobile application support, commercial application management of the City’s ‘app store’, and overall support of the mobile management platform; (2) a Communications Team position that would coordinate device procurement and enrollment as well as support ongoing administration for devices. Currently, there are 2,500 mobile smartphones and tablet devices deployed across the City outside of Police. The Citywide standard for mobile devices is the Apple iPhone and iPad; however, there is no centralized management of these devices. These devices frequently have non-City business applications installed, exposing data risks, and the devices require significant manual reformatting and reconfiguration prior to redeployment for their next intended use. Microsoft Enterprise Mobility + Security. This package would increase interagency costs by $488,461 including $192,652 for General Fund bureaus to fund the purchase and implementation of Microsoft Enterprise Mobility + Security across the City, and in effect, provide increased security and increased support for the use of Windows 10, Office 365, and cloud services on mobile devices and laptops. More generally, this service provides the appropriate infrastructure for reducing risks as employees increasingly rely on mobile devices and telework options. Funding is solely for the additional licensing costs; no additional administrative costs are associated with the package. There two key considerations for both of these packages: first, maintaining the City’s information security as a greater number of employees rely on mobile devices to meet work demands; second, in the coming years the City will need to continue to prepare for a workforce that increasingly utilizes telework and in-field options, key to which will be ensuring that there is the appropriate technology to support this work. Enterprise mobile management and Microsoft Enterprise Mobility + Security have
Office of Management & Finance Page 16 of 50 March 6, 2018 been identified as two key steps in technology improvements to mitigate information security risks and invest in the appropriate infrastructure for the City’s changing workforce. Customer bureaus supported both requests: approximately half of survey respondents indicated that they would be willing to fund the costs of these two packages within current resources and the remaining respondents support the request if given funding. Bureaus which own the majority of mobile devices identified this request as their highest priority add package in BTS (PBOT and Parks, and to a lesser extent, BES, Water and BDS). CBO recommends both of these packages due to the increased reliance on mobile devices and cloud computing for conducting City business and the need to maintain information security. CBO Recommendation: $830,090 | 2.00 FTE EBS Reduction Options – Tableau and Enterprise Asset Management MF_08, MF_10, ($328,293), (2.00) FTE The Enterprise Business Solutions (EBS) unit within BTS is currently staffed by 28 employees who support the City’s enterprise business system, SAP, and is organized into four functions (Finance and Logistics, Human Resource Capital, Training, and the Technology Team.) EBS’ current plans for the upcoming year include the implementation of four capital projects in addition to managing their regular business processes (maintenance of SAP, yearly patch activities, service requests, new functionality requests). These projects include the implementation of Tableau Enterprise and the SAP Enterprise Asset Manager module, both of which are proposed as reductions. Regardless of whether these reductions are taken, EBS plans to move forward the SAP Success Factor Learning Management System (LMS), which is a system for tracking trainings across the City. Tableau Implementation Reduction This package would eliminate a vacant position within EBS that, if not cut, would be tasked with the implementation and support of Tableau – a data visualization software that is used to more effectively communicate data and provide an avenue for ad hoc analysis. One-time implementation costs of $37,500 would be covered by underspending of prior year interagency revenues and ongoing costs would be billed directly to those bureaus which purchase licenses. Eliminating this position would yield $184,556 in savings, including $94,418 in the General Fund. Currently the City owns 47 individual Tableau licenses across eleven bureaus, including 16 in Police. An enterprise approach to Tableau allows for secure support and potentially enhanced access to City databases. For example, Police is aiming to create dashboards for each division, allowing for the visualization of how crime statistics are influenced by targeted deployment of their officers and other resources.
Office of Management & Finance Page 17 of 50 March 6, 2018 Moreover, an enterprise approach can be more cost efficient because of the ability to purchase cheaper licenses for consumers of data versus the costlier analyst licenses. Despite the role of data visualization in advancing data-driven decision-making, CBO recommends this reduction due to the need to identify General Fund savings. This reduction would perpetuate the inefficient approach to the purchasing of licenses, but this reduction will not limit existing use of Tableau or restrict bureaus from purchasing additional licenses. Moreover, the City can always revisit this addition in a future budget process if demand for the service remains, and bureaus could fund Tableau server out of existing budgets if it is a high enough priority. BTS Enterprise Asset Management Implementation This package proposes to reduce project support for the implementation of the Enterprise Asset Management module of SAP. Eliminating this position would yield $143,737 in savings, including $73,536 in the General Fund. Council initially approve support for this project via authorization of implementation support services in October 2016; however, this project had been delayed until January 2018 following the decision of executive sponsors. The support services consultant has noted that activity has slowed regarding BIBS implementation of the project, potentially due to changes in personnel in the asset management team and workload issues within the bureau, resulting in the reprioritization of staff work. This project, as initially scoped, would roll out solely to OMF Facilities with the intent that other bureaus could use its capabilities for work order management, creating inventories and monitoring assets condition, capital project planning, and asset management planning. Parks will be evaluating this module for its business needs in the coming months and deciding whether to move forward with the project. If not funded, both BIBS and Parks would continue to manage their work orders in the current outdated system. The only costs incurred thus far for this project are internal labor. The City has not purchased the Enterprise Asset Management software from SAP or the required service space. No costs have been incurred under the implementation services contract due to the project delays. Notably, BIBS has proposed a reduction to the Asset Management Team. Both of these proposed reductions raise significant concerns about OMF’s intent to move this project forward, and more critically, whether the need for increased asset management is being appropriately prioritized amongst other demands, especially given the current annual major maintenance funding gap of $6.7 million for OMF Facilities’ assets. Given these concerns, EBS may need to evaluate whether to move forward with Enterprise Asset Management, and if not, how to avoid sunk costs and lower interagency costs to customer bureaus. CBO does not recommend this reduction at this time but flags these issues for Council’s attention. CBO Recommendation: ($184,556) | (1.00) FTE
Office of Management & Finance Page 18 of 50 March 6, 2018 Public Safety Radio Template Development MF_11, ($122,401), (1.00) FTE This reduction would eliminate the Radio Template Programmer position (Electronic Technician II) on the Radio Engineering and Support team, yielding total interagency savings of $122,401 including $48,710 in the General Fund. This position is part of a five-person team that is responsible for public safety radio template programming services supporting approximately 8,000 radios for more than 80 user agencies, and about 600 templates. Essentially, every radio used by a public safety agency must be processed by this team before being deployed into service. Eliminating this position would result in delayed radio deployment to both first responders and second responders, such as the Water Bureau, PBEM and other regional government agencies. Due to the important nature of this service in supporting public safety bureaus, CBO does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE Text Archiving Service Reduction MF_14, ($151,968), 0.00 FTE This reduction would eliminate funding for the text archiving service for City business on City-owned cell phones, saving $151,968 in interagency costs including $76,226 in the General Fund. This service was initially purchased as a result of a FY 2017-18 budget note that directed the City Attorney’s Office and the Bureau of Technology Services to implement this automatic archiving. Oregon Public Records law requires that text messages and social media account activity meet all applicable retention and retrieval requirements as other documents. BTS is currently implementing this service on 2,000 City-owned devices; Police, elected official offices, and the bureau directors are already enrolled in the service. If this reduction is taken, employees would be tasked with manually archiving texts. The average time and process for manually archiving text messages has not been defined, but suffice to say, resorting back to manually archiving would be notably burdensome and inefficient use of employees’ time. Moreover, prior practices of archiving were neither comprehensive nor consistent, putting the City at risk for non- compliance with public records, archiving, and litigation retention requirements. CBO has significant concerns with the reasoning as to why this service was offered as a reduction. Adding text message archiving was a priority explicitly communicated by Council via budget note as part of the FY 2017-18 Adopted Budget. Cutting this service puts the City at risk for being out of compliance with records retention laws. As such, this reduction is not recommended. CBO Recommendation: $0 | 0.00 FTE Continuity of Operations Planning MF_15, ($128,463), (1.00) FTE
Office of Management & Finance Page 19 of 50 March 6, 2018 This reduction would eliminate funding for the Continuity of Operations Planning position, saving $128,463 in interagency costs including $55,876 in the General Fund. Council approved this position, to be funded by interagency revenues, in the FY 2017- 18 Adopted Budget. To date, this position is unfilled. This Senior Business Systems Analyst is intended to help mitigate threats to the City’s information and technology systems in the case of a natural or manmade disaster. The position is expected to create and monitor a technology continuity plan, assist in annual testing of the plan, and monitor progress toward mitigation of threats to information and technology assets. Based on the Citywide risk associated with potential natural and human-caused disasters and the enterprise value in mitigating those risks, CBO previously recommended this position. CBO does not recommend this reduction due to the critical need for disaster planning; however, CBO does have concerns with putting forward cut for a position that has been a bureau priority several years and places the City at significant risk. CBO Recommendation: $0 | 0.00 FTE BTS – Stores and Procurement Services Reduction MF_16, ($171,889), (1.00) FTE This reduction package would eliminate the BTS Stores and Procurement Supervisor who supervises the team responsible for reviewing and processing all City hardware and software requests, saving $171,889 in interagency costs including $74,762 in the General Fund. If this position is eliminated, the bureau has not yet determined how this team would supervised or how responsibilities would be distributed. On average, the team reviews 380 orders per month in addition to regular software licensing renewals. Assuming that responsibilities are redistributed across the Stores and Procurement Team, processing time may increase by 15-20%, and in addition, there may decreased management of software licensing. Currently, the Stores team is four weeks behind in processing orders. CBO has concerns as to whether this reduction is in the best interest of customer bureaus. As such, CBO does not recommend the reduction. CBO Recommendation: $0 | 0.00 FTE Enterprise Architecture Reductions MF_17, MF_18, ($354,277), (2.00) FTE These reduction packages would eliminate two of three positions within BTS Enterprise Architecture team, the primary role of which is to proactively understand business needs of bureaus, the underlying systems and technologies that support these needs, and their interdependencies, and then plan for future needs with considerations for industry and technology trends. Eliminating these positions would result in interagency savings totaling $354,277 including $154,091 in the General Fund. These reduction packages would effectively end the City’s enterprise
Office of Management & Finance Page 20 of 50 March 6, 2018 architecture program and activities. BTS submitted these reductions following feedback from customers who asked for greater focus on customer service and on partnering on technology projects. This reduction, if taken, would mark a central shift away from BTS’ role in managing enterprise needs and moving towards a more decentralized role that is driven primarily by customer needs. The risk of discontinuing the enterprise architecture function is a less purposeful approach to citywide system planning, potentially resulting in disparate systems and the inefficient replacement and creation of new systems within the City. For example, these positions have assisted with the recent needs assessment of the telework pilot, the electronic signatures implementation, and continued support for the technology needs of the Portland Building project. Due to the central role of enterprise architecture in directing how technology will be used to better provide City services, CBO does not recommend reductions to this team (MF_17 and MF_18). CBO Recommendation: $0 | 0.00 FTE BTS Internship Programs MF_19, MF_36, ($183,120), 0.00 FTE BTS has proposed the reduction of two internship programs: the Support Center Internship Program (eight positions), and the Customer Relations and Information Security Internship Program (two positions). These positions are primarily filled by students and recent graduates from Portland Community College and Portland State University. These internship programs have two key benefits: First, interns are tasked with less complex tasks, sometime repetitive in nature, which allows higher-level analysts to address more complex problems. Eliminating the internship program would shift these easier tasks onto these analysts, resulting in less efficient and costlier process for addressing basic technology issues of City employees. Second, the program is intended to recruit diverse candidates and the retain the successful interns as full-time employees. Support Center Intern Program Approximately 20% of Help Desk and Desktop Support work tickets are closed by employees in the internship program. Specific performance impacts of eliminating the program include the following, as estimated by the bureau: the number of tickets resolved by the HelpDesk are expected to decrease from a monthly average of 2600 to 1850, and same day ticket resolution goals are expected to decrease from the current rate of 70% to 48%. Overall, this will have some impact on employee productivity across the City. Interns have gone on to become permanent City employees both in BTS and in other bureaus. In the last five-year period, four have become permanent BTS employees, and two are currently serving in temporary assignments. Of the eight interns in the Support Center program, three identify as nonwhite. This total program costs
Office of Management & Finance Page 21 of 50 March 6, 2018 $133,120, including funding of $66,064 from General Fund bureaus. Customer Relations and Information Security Internship Program The internship programs in Customer Relations Division and Information Security are much smaller: the Customer Relations program is new this year (and unfilled); the Information Security team has had one intern each year over the past four years. These internship program have not retained any of the interns as permanent employees. Due to the smaller size of these programs and various responsibilities of the interns, assessing the workload and performance impact of the program is difficult to quantify. The bureau does not have estimates on the amount of time spent overseeing interns in this program, and so it is inconclusive as to what extent the value of the projects completed by the interns exceeds the time spent managing the intern. The costs of these two programs is $50,000, including funding of $21,747 from General Fund bureaus. Due to the efficiencies gained via the Customer Relations Internship Program, CBO does not recommend this reduction. The internship programs in Customer Relations and Information Security have relatively little costs, and so CBO does not believe that reallocating these program costs via this reduction exceed the benefits of the program. CBO Recommendation: $0 | 0.00 FTE BTS – Public Safety Reporting Service Reduction MF_33, ($81,657), (1.00) FTE This package would reduce an applications developer that supports the reporting function of the Regional Justice Information Network (RegJIN) --- a records management system shared by 30+ regional public safety agencies. The reporting functions provided by this position are not needed to maintain the system, and reporting is only periodically requested. This system is supported by 4.13 FTE in BTS in addition to positions within the Police Bureau, and staffing has not changed since the planned level of sustained support in March 2014. As reported in recent months, several regional agencies have discontinued participation in the system due to being cumbersome and requiring significant time for frontline officers to complete reports. While concerns about the functionality of the system are the most pressing issue, a larger concern is the possibility of public safety officials resorting to a decentralized approach to records management, limiting the effectiveness of case management. Moreover, as partner jurisdictions exit the system, their portions of costs are reallocated to participants, increasing their annual costs --- and mostly significantly, the City of Portland’s costs. Specifically, the City’s costs are expected to increase by $1.2 million due to the exit of several partner jurisdictions over the past year. However, the reduction of this position would not impact the interface demands that being requested by regional partners. This position costs $81,657 and is fully funded with interagency revenues from the
Office of Management & Finance Page 22 of 50 March 6, 2018 Police Bureau to BTS. Due to the lesser need of this position amongst the more dire demands of RegJIN, CBO believes that this cut could be taken without significantly increasing operational risks and so recommends the reduction. The Police Bureau has expressed concerns how this reduction may be perceived by the RegJIN partner agencies. Additionally, CBO notes that BTS offered this reduction, despite the Police Bureau’s feedback during the budget process, indicating that this reduction was less impactful than other potential reductions to their base budget. At this time, CBO does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE BTS Applications Development Reductions MF_34, MF_35, ($275,623), (2.00) FTE BTS has proposed the reduction of two application development services positions. The first position supports mobile application development, and the second position supports customer billing of third-party applications and billing data that is requested by smaller City bureaus. Within BTS, there are 30 application analyst positions, of which eleven are not dedicated to bureau specific projects – including the two proposed for reductions. Mobile Application Development (MF_34) The City’s adoption of Smart Cities and Open Data initiatives may be impacted by reduced support for mobile application development if this reduction is taken. The position proposed for reduction is planned to serve as the BTS point of contact for these two initiatives and coordinate initiative needs with various in BTS, including Production Services, EGovernment, CGIS, Information Security. This position also supports the team that develops mobile functionalities like PDX Reporter and Safe Routes PDX. Clearly, these areas are key priorities for the City and important in moving the City towards more efficient technology solutions and data-driven decision-making. If this reduction is taken, BTS will need to continually reprioritize the demands of its application analysts, and specifically, how it will address Council priorities. Eliminating this position would result in interagency savings of $131,717 including $20,485 in the General Fund. BTS – Application Development Services #2, MF_35 This position was identified for reduction because its elimination would result in a lesser impact on bureaus due its primarily internal function. The demand for reporting by this position to smaller bureaus has been low, and the bureau believes that these functions could be absorbed into current staffing. Future requests for reporting would be managed by BTS as a billable service using staff augmentation or flexible services, thus resulting in a slightly higher cost to bureaus. There are no current project tasks assigned to this position. Eliminating this position would result in interagency savings of $143,906 including $22,381 in the General Fund. OMF has internally ranked this project as 24th of 42 decision packages. Due to the
Office of Management & Finance Page 23 of 50 March 6, 2018 need for application support across the City, CBO does not recommend this reduction at this time. CBO Recommendation: $0 | 0.00 FTE BTS – Project Business Analysis Services MF_54, ($178,913), (1.00) FTE This package would eliminate a Senior Business Systems Analysts within BTS’ Project Management Office, resulting in interagency savings of $178,913 including $77,815 in the General Fund. This position assists bureaus with analyzing the business needs and functional requirements for technology solutions, which bureaus typically purchase to support the procurement and implementation of new technology. Currently slated for this position is supporting the Telesoft project for BTS Communications, Bureau of Emergency Communication’s scheduling replacement software, and a process mapping exercise for PBEM. The value of business analysis is indisputable: defining the problem, requirements, and functionality are essential to implementing new technology that meets bureau needs and limits unnecessary costs. CBO has concerns about the uptake on this service and whether the current hourly rate has priced most bureaus out of using the service. The current market rate for similar services is $110 - $175/hour whereas the billable rate charged by Project Management Office is $95/hour. Despite being lower cost than market, it is not clear what percent of bureaus utilized BTS business analysis service for procurements, and what percent opt for outside services (either due to specific expertise or a greater ability to scope the service and control the number of billable hours). In 2017, the total number of hours billed for this position was approximately 1,820 hours across four different bureaus for about 10 different projects, indicating that the position is fully utilized. On average, business analysis services cost $17,000 per project. Having in-house capacity for business systems analysis may provide a broader perspective of system dependencies and City processes. BTS has also prioritized this reduction as being the least desirable. CBO does not recommend this reduction because of the potential gains in procuring technology systems that best meet the City’s business needs. CBO Recommendation: $0 | 0.00 FTE
BUREAU OF REVENUE AND FINANCIAL SERVICES Support Revenue Collection MF_23, MF_22, MF_21 $2,468,848 8.00 FTE The Bureau of Revenue and Financial Services (BFRS) submitted three packages that are designed to support its revenue collection activities: a request to increase utility franchise and audit support ($148,750), a request for continued support of the IRS
Office of Management & Finance Page 24 of 50 March 6, 2018 Data Exchange Program ($501,464), and a request to fund five additional tax collection staff for three years ($1,818,434). Generally speaking, CBO is supportive of requests where the marginal benefit of additional revenue collection activities outweighs the marginal cost, assuming a robust methodology for these calculations. Increase Utility Franchise/Audit Support. This request is for an ongoing program coordinator position and for one-time materials and services support. The Office for Community Technology (OCT) added a permanent utility franchise auditor position in FY 2017-18, after a two-year limited term position showed a positive return on investment. OCT went from an average of six audits per year to 33 audits open currently. Billings against open audits continue to increase, with $2.8 million in audit findings outstanding in the current fiscal year, but the division is falling behind on the collection of audit findings due to limited staff support. Actual and Billed Recoveries Fiscal Year Billing or Pending Receivable One-time Recovery (Actual) Note 2015-16 $802,808 $802,808 2016-17 $1,967,870 $700,083 $1,267,787 in dispute 2017-18 $2,818,773 - Total $5,589,451 $1,502,891
This new position will augment the work of the auditor position, and is projected to increase revenues by an additional $850,000 to $2.37 million (ongoing) by providing intensive internal review of initial audit findings and monitoring corporate compliance with closed audits. The position will also expedite the renegotiation of legacy franchises (see chart below).
Estimated Ongoing Recoveries with 1.0 additional staff Recovery Category Recovery Base Basis of estimate Low Estimate High estimate 2.5% - 5.0% increase Franchise Renewals $2,326,635 $58,166 $116,332 upon renewal Closed audit 25%-30% recovery $500,964 $125,241 $250,482 residual compliance upon follow-up Tentative audit 10% - 30% recovery findings needing $6,681,227 upon review and $668,123 $2,004,368 review billing Total $851,530 $2,371,182
CBO recommends the addition of a limited term program manager to support the review and monitoring of franchise audit findings. Prior to requesting ongoing funding and position authority for the position in future budget years, OCT should report back on the ROI of the limited term position as outlined in the three categories in the table above. Given the heightened pressure for effective advocacy and
Office of Management & Finance Page 25 of 50 March 6, 2018 litigation to preserve rights-of-way authority at the municipal level, CBO also recommends a one-time $20,000 augmentation of the division’s materials and services allocation for enhanced policy and legal activities. Continue IRS Data Exchange Program. The IRS Data Exchange program was originally established in FY 2013-14. At a basic level, the program accesses IRS tax data and matches it with local tax data to determine whether there are discrepancies. For three years the program had a substantial negative ROI, but breakthroughs made in the program’s application late in FY 2016-17 have contributed to positive ROI projections in the current fiscal year and going forward. Given the positive ROI projected in FY 2018-19, the as-yet untapped expansion of this program from non-filers to an analysis of the discrepancy in taxes paid, and the high value of continued access to this data upon implementation of an integrated tax system in the future, CBO recommends continued funding for this program in FY 2018-19. Given limited ongoing General Fund resources, CBO recommends $501,464 in one-time General Fund resources. As the division moves toward implementation of an integrated tax system, which it currently intends to finance via a benefits-based model, it will be important to understand what ongoing resources will be required from the General Fund to maintain access to IRS data in that operational environment. It will also be critical to incorporate the full cost of this program into the renegotiation of the tax collection IGA with the County since the County will also benefit substantially from this work. Add Tax Collection Staff for Three Years. The Revenue Division is requesting $1.8 million in one-time General Fund resources to support 3.0 additional Tax Collection Specialist IV positions, 1.0 Tax Collection Specialist V position, and 1.0 Business Systems Analyst position over three years. The request also includes approximately $350,000 in additional materials and services funding. Three years of funding is being requested because the Integrated Tax System, which is expected to result in collection efficiencies, will not be in place for another three years. The Revenue Division notes that the total number of Business License Tax accounts has increased by 52% (33,000 accounts) over the past several years. The increased number of accounts generates additional customer service workload and account maintenance work for the division; the spike in workload has caused the Revenue Division to pull staff away from collections activity to help support basic account maintenance and tax return document entry. By adding additional staff to support account maintenance, document entry, and customer service, the division will be able to keep greater staff focus on collection activities for a greater portion of the year. The increased revenue collection noted in the package narrative is an estimate of taxes that will continue to be collected by forestalling a decline in the overall compliance rate; these positions are not expected to generate additional revenue for City through increased collections activity, but are expected to help maintain current
Office of Management & Finance Page 26 of 50 March 6, 2018 compliance rates through a period of increased workload for the division. The methodology to determine the Business License Tax Gap has not changed since FY 2003-04, meaning that it has not been updated to reflect assumptions about the number of accounts that will ultimately be exempt (in particular, the explosion of BLT accounts due to growth in private-for-hire services like Uber and Lyft). That said, to the degree that the Revenue Division is pulling staff from other higher value collection activities due to increased time spent on customer service and more basic tax document entry activities, driving lower estimated compliance rates, additional limited term tax collection staff may be warranted. CBO recommends 3.0 limited term Tax Collection Specialist IV positions be added in FY 2018-19, with the expectation that the Division will report back to Council on the impact of these positions on compliance rates and preserved revenue collection prior to requesting additional funds in future years. CBO does not recommend the addition of a Tax Collection Specialist V or the Business Systems Analyst position at this time, nor the additional materials and services budget, as the impact of these positions on the immediate workload needs in the Revenue Division is less clear and there are other immediate needs for one-time resources. The one-time materials and services requirements for the 3.0 limited term positions should be managed within OMF’s existing resources. CBO Recommendation: $881,016 | 6.00 FTE Cut Open Signal Community Media Services MF_24 ($288,018), (0.00) FTE This package would substantially reduce the City’s support to Open Signal (formerly Portland Community Media), reducing the annual General Fund-funded grant by $288,018 from the base amount of $912,514. OMF has put forward similar reduction options in recent years, though historically the proposed reductions have been in the 5% range. The City’s support of Open Signal is funded from General Fund Resources and tied to an annual inflation factor5. The organization also receives operational funding from other community organizations and program fees. In addition to the City’s General Fund-funded support of Open Signal, the organization also receives an annual allocation from the OCT-staffed Mount Hood Regulatory Cable Commission (MHCRC) Capital Fund. These capital funds are restricted under cable services franchise agreements to fund capital costs related to use and content on the community media channels. The chart below shows Open Signal’s operating and capital resources in recent years:
5 From 1981 through FY 1996-97, the City allocated 40% of cable franchise fees to Open Signal (then known as Portland Cable Access) for annual operating costs. This “pass-through” of cable franchise fees was ended by the City in FY 97-98 due to Measure 50 impact on the City’s budget, and Open Signal’s operations funding was reduced to $624,161 with an annual increase based on CPI. Since that time, operations funding to Open Signal has been provided from General Fund resources rather than as a proportion of cable franchise fees.
Office of Management & Finance Page 27 of 50 March 6, 2018
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 Operating Grant - City of Portland $878,194 $829,893 $845,661 $865,957 $840,557
Other Grant Revenue $418,894 $177,843 $201,747 $512,047 Program Fees $177,948 $50,095 $305,727 $370,594 $320,850 Miscellaneous Income $22,256 $26,407 $72 $1,065 $1,809 Operations Totals $1,497,292 $906,395 $1,329,303 $1,439,363 $1,675,263 Capital Fund - MHCRC $978,598 $980,830 $903,201 $952,531 $989,255 Totals $2,475,890 $1,887,225 $2,232,504 $2,391,894 $2,664,518 The City’s General Fund support of Open Signal is in alignment with the Digital Equity Action Plan, and many of the classes and services offered by Open Signal either have scholarships geared toward low income, minority, and immigrant populations or have program fees that are heavily subsidized for all participants. The specific impact of this reduction package would be to reduce 5.0 FTE of Open Signal’s 21.75 FTE staff. This reduction would limit the ability of Open Signal to conduct outreach, reduce media education programs, and result in higher program fees and reduced hours. The City’s agreement with Open Signal expired at the end of FY 2016-17, but was renewed for one year to allow for renegotiations of services provided and ensure alignment with City priorities. In the coming months, OCT staff will negotiate two separate but related grant agreements: one between the City and Open Signal for the operations funding, and the other between the MHCRC and Open Signal for the restricted capital funding derived from the cable franchise agreements. Simultaneously, the City has contracted a consultant to provide recommendations on the organizational location of OCT and the City’s approach to public technology more generally (OCT Budget Note, FY 2017-18 Adopted Budget). The digital equity services and community media education provided by Open Signal are clearly in alignment with the City’s equity goals6, and substantial reductions in these services would have a negative impact on the community. However, given the ongoing contract negotiations around Open Signal’s contract, potential changes to the City’s approach to engaging the public around technology more generally, and the need to realign limited General Fund resources toward immediate Council priorities, CBO recommends a $72,000 reduction to the Open Signal contract. This reduction from $912,514 to $840,514 represents a 7.9% reduction of the FY 2018-19 base funding for Open Signal7. CBO Recommendation: ($72,000), 0.00 FTE
6 See Open Signal annual report here: https://www.opensignalpdx.org/uploads/documents/Open-Signal- Winter-2018-Catalog-Annual-Report_LowRes.pdf 7 This reduces the City’s support of Open Signal’s operation budget to FY 2016-17 levels. Historically, reductions to the Open Signal contract would have been restricted to the average reduction across City bureaus due to the terms of the contract. Because the contract expires at the end of the current fiscal year, this provision does not apply.
Office of Management & Finance Page 28 of 50 March 6, 2018 Procurement - Cut Admin, Equity, Outreach, Training MF_25, ($221,245) (1.00 FTE) This package puts forward multiple reduction options in the Bureau of Revenue and Financial Services Procurement Division, including the elimination of a Sr. Administrative Specialist position ($105,000), the reduction of materials and services support to the Prime Contractor Development program ($66,860), other materials and services reductions ($49,385 from Minority Evaluator Program, sustainability and training), and a reduction to materials and services that would be offset by recognizing increased ongoing revenues from the procurement card rebates ($50,000). Sr. Administrative Specialist reduction. This $105,000 reduction would eliminate a Sr. Administrative Specialist, with a request for one-time bridge funding. The package narrative indicates that insufficient funding makes it difficult for Procurement to be responsive to customer needs with reduced staff. However, an analysis of Procurement’s historical spending indicates the division has been carrying high vacancies, and its FY 2018-19 base personal services budget is more than $600,000 higher than actual personal services spending in any of the past three years. The division could likely retain this Sr. Administrative Specialist by realigning a vacant position. It is not possible to quantify the impact of eliminating this position on Procurement customer service levels, as the division does not currently have measures that track service from a customer experience perspective (i.e. full cycle timeline for contract execution). The package narrative indicates the workload of this position is primarily geared toward support of the social equity programs discussed above, and support to the Chief Procurement Officer (CPO), rather than to direct customer bureau support. However, in light of the challenges the division is facing in defining its base customer service levels and the development of meaningful customer-centric performance measures – both critical issues for customers during OMF Funding Model discussion – CBO’s recommendation is that the Procurement Division retain the position and/or resource flexibility to support the incoming CPO during these efforts. External Materials and Services Reduction. This $116,245 reduction option would primarily reduce materials and services spending on sponsorships for the Minority Evaluator Program and reduce technical assistance for DMWESBs under the Prime Contractor Development Program. Current allocations for the Minority Evaluator Program and the Prime Contractor Development Program are $99,000 and $178,000, respectively. The purpose of the Minority Program Evaluator (MEP) program is to engage diverse members of the community into the City’s procurement evaluation and contracting process, while the Prime Contractor Development Program (PCDP) is a tiered technical assistance program for state-certified DMWESBs. The proposed MEP reduction option will reduce the amount of outreach and the number of
Office of Management & Finance Page 29 of 50 March 6, 2018 sponsorships the program can provide. The reduction in sponsorships may impact the program’s ability to recruit new and additional evaluators to participate in the program at a time when the overall number of contracts across the City is increasing.
In November 2017, Council approved three interrelated resolutions that are intended to both standardize and expand the City’s efforts to increase the workforce participation of disadvantaged, minority-owned, women-owned, and emerging small businesses (DMWESB) in contracting. One of the resolutions directs OMF and OEHR to develop a Community Opportunities and Enhancements Program (COEP) and funding plan. Preliminary estimates indicate that the funding for the new program – set at 1% of all public improvement projects - will exceed $1 million annually. This funding will be directed toward programming to support the development of DMWESB contractors in the workforce and encourage their participation in the City’s procurement process.
While CBO understands that the COEP is intended to build on and add to existing services – and not replace funding for existing services – it does represent a substantial expansion of City programming around social equity and contracting, and CBO recommends that OMF give consideration as to whether there are synergies, efficiencies or other alignments with the current Prime Contractor Development Program. CBO recommends that the full materials and services allocations of the PCDP be reduced on an ongoing basis ($178,000) in order to fund other urgent City priorities, as well as the proposed materials and services reductions for MEP, sustainability, and training ($49,385 total). However, CBO also recommends one-time bridge funding for these programs of $227,385. In the current year, these ongoing reductions will have no impact on service levels and the bridge funding will allow time for the incoming Chief Procurement Officer to perform a “deep dive” into Procurement service provision and funding model as referenced in the package narrative.
In sum, CBO recommends the offset of General Fund resources with rebate revenue ($50,000), an ongoing reduction of materials and services spending for MEP, sustainability, and training, ($49,385), and an ongoing reduction of external materials and services spending in the Prime Contract Development Program ($178,000). CBO further recommends a one-time addback of $227,385 in materials and services spending. CBO Recommendation: ($277,385 ongoing), $227,385 one-time I 0.00 FTE Accounting - Cut Admin, Overtime, Consulting, Training MF_26, ($126,545) (0.50 FTE) This package puts forward a $73,260 materials and services reduction and a $53,285 personal services reduction in the Accounting Division of the Bureau of Revenue and
Office of Management & Finance Page 30 of 50 March 6, 2018 Financial Services. The division’s actual external materials and services spending has hovered between $80,000 and $120,000 in recent years; with this reduction, the division’s EMS budget would be reduced to approximately $50,000. In FY 2016-17 the division experienced a $146,760 reduction in ongoing General Fund resources, inclusive of a 26.7% reduction in its EMS budget, followed by a smaller reduction of $20,000 to its EMS budget in FY 2017-18. Despite these budget cuts, the division has managed to meet or exceed its performance goals. In recent years, division management initiated a substantial reorganization and process improvement efforts that have reduced the days required to produce the CAFR from 180 days to 120 days. The Division has also ensured there are zero audit deficiencies in the CAFR for the past several years. The proposed materials and services reductions would hamper the division’s ability to effectively implement the new CAFR production software that is currently being procured, and limit the amount of training accounting staff will receive on upcoming GASB changes. The proposed personnel services reductions would reduce an Operational Accounting OSS II position to half-time and reduce the division’s flexibility to bring on temporary staff or utilize overtime during CAFR production. Given the risk to key performance measures that ultimately impact the City’s financial health and limited flexibility within the division’s current resources, CBO does not recommend further reducing the division’s materials and services or personnel services budget. CBO Recommendation: $0.00, 0.00 FTE Grants Management - Cut Support for Grants, Special Appropriations, CEIP MF_27, ($38,334), (0.00 FTE) This package would reduce personal services resources in the Grants Management Division (GMD) by $38,334. The impact of this package would be to eliminate a limited term OSS III position, which is currently supported by interagency agreements with Water, PBOT, and Facilities Services, with GMD using that interagency resource to backfill the reduced personal services budget. The limited term OSS III position, which is currently filled by a temporary CSA, was added during the FY 2017-18 Fall BMP and is anticipated to be funded by interagency agreements for three years. GMD has also taken on the management of Special Appropriations in the last several years; this includes both the administration of ongoing grants and the management of the competitive grant process. An additional grants analyst position was added to manage this body of work, though the division provided an analysis that indicates the actual workload associated with Special Appropriations management may be greater than can be managed by 1.0 FTE.
Office of Management & Finance Page 31 of 50 March 6, 2018 Given the increasing workload in GMD and relatively small staff available to redistribute workload, CBO does not recommend reducing the division’s personnel resources. Going forward, as the Community Opportunities and Enhancements Program is further developed, it will be critical that the program funding (1% of all public improvement projects) include an administrative carveout for grants management support in the GMD. As part of the program development, CBO also recommends that OMF consider efficiencies that could be gained from greater programmatic alignment between GMD staff and Procurement’s social equity program staff. CBO Recommendation: $0.00, 0.00 FTE BUREAU OF INTERNAL BUSINESS SERVICES Facilities Services Staff Requests The budget guidance to internal service funds directed them to bring forward reduction options that bring down rates for customer bureaus. In particular, the guidance directed internal service funds to focus these reductions on broadly allocated indirect, overhead, and corporate-type charges. Embedded in the Facilities Services rates are two primary indirect charges: the allocation for BIBS administration and the division’s interagency agreement with OMF-Business Operations. These indirect costs represent a substantial and growing administrative cost that is passed through the customer bureaus when it is allocated across the division’s various rates. The BIBS administration costs, which are allocated out across BIBS divisions including Facilities Services, have increased by over 160%8 in the past five years:
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 BIBS ADMIN/MFOP000071 $387,803 $768,388 $840,233 $1,176,043 $1,009,659 (PS, EMS, IMS)
5-year increase $621,856 5-year % increase 160.35% Compound growth rate 27.03%
Similarly, the Business Operations interagency charge to Facilities Services has increased substantially in recent years, growing by almost 78% over the past five years9:
8 BIBS Administration increased by 6.0 FTE during this time period, 3.0 of which are new staff and 3.0 of which are existing staff reassigned to BIBS Administration from BIBS divisions. 9 The overall growth rate for the IA-funded portion of OMF-Bus Ops has grown at an annualized growth rate of 4%; this increase has disproportionately affected Facilities Services because the IA is allocated by total fund size.
Office of Management & Finance Page 32 of 50 March 6, 2018 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Bus-Ops Facilities IA $467,158 $629,465 $692,787 $732,755 $830,252
5-year increase $363,094 5-year % increase 77.72% Compound growth rate 15.46%
Many of the reduction options put forward by Facilities Services do not focus on the cost of service, on bringing down the rates themselves, but are in many cases direct service reductions that reduce to the total interagency charge to bureaus by decreasing the quantity or quality of services purchased or service availability but do not, ultimately, reduce rates charged to customer bureaus. While both types of reduction are likely to have an impact on service levels, this is a critical distinction and there is little purpose in taking many of the reduction options put forward by Facilities Services, as they do not ultimately reduce the rates that are charged to customers. A reduction package was put forward from BIBS administration (MF_58), but no reduction options were put forward to reduce the impact of interagency funded Business Operations on the rates charged by Facilities Services (or other internal service funds). To the degree that future budget guidance directs similar rate reduction options in the future, CBO recommends that division management and Business Operations support staff work together to focus on options to reduce the cost of services provided to customer bureaus. Facilities Services Staff Reductions MF_43, MF_44, MF_41, MF_42, MF_45, MF_40, ($814,510), (7.00) FTE Facilities Services put forward six decisions packages totaling $814,510 that would eliminate seven positions: a senior management analyst, a dispatch position, a construction project manager, a construction project specialist, two facilities maintenance technicians, and the asset management program coordinator. In attempting to analyze the impact of these various reduction options, it became clear that the division is currently operating with a much higher employee count than would otherwise be expected, and the division is utilizing flexibility in its corporate rate and direct billing to customers to support approximately 10 double-filled positions in a division with 38 authorized positions. For example, the Senior Management position is currently vacant, and the workload described in the package narrative is actually being performed by two employees (one regular and one double filled) that are supported by the division’s corporate rate. In this situation, it is difficult to assess the operational impact of eliminating the senior management analyst position, since it is this vacancy that is partially supporting the division’s ability to carry double filled employees. Aside from HR rules limiting this practice, CBO recommends that the division return to traditional budgeting of employees in
Office of Management & Finance Page 33 of 50 March 6, 2018 authorized positions to increase transparency for both customer bureaus and the public. Generally speaking, the Facilities Services division is struggling through a transition phase. Results from the division’s customer service survey indicate that customers are not satisfied with the level of communications and expertise they receive from the division. In recent years, the division has received approval to add multiple positions to improve its ability to respond to customer demands and address its workload, and has recently instituted changes to its work order prioritization process in order to help meet customer needs while addressing preventive maintenance. At this time, CBO does not recommend any of the Facilities Services staff reductions, as they do not generally align with the intent of the budget guidance (i.e. most of these reductions will not result in a reduction to rates charged to bureaus), and they are likely to further reduce customer satisfaction and/or delay the development of a more robust asset management practice within the division. CBO Recommendation: $0.00, 0.00 FTE Facilities Services Staff Additions MF_48, MF_49, MF_52, $379,739 4.0 FTE Facilities Services is requesting the addition of 4.0 FTE, including two additional dispatchers, an additional FMT apprentice, and an additional Utility Worker II position. The division notes that it is relying on temporary staff to assist with a spike in work order requests that must be fielded by dispatchers, and that the failure to add permanent staff may delay the dispatch of FMTs or Utility Workers to address customer demands. However, updated data on the actual increase in workload (total work order demands) is not currently available from the division, and it seems possible that the workload increase may be a temporary spike due to the recent relocation of Portland Building staff to new locations. The division is currently utilizing savings from the Portland Building being offline to support additional dispatch services in its corporate rate. Prior to adding permanent dispatch staff, CBO would recommend that the division compare year over year work order data to assess annual demand, and assess whether or not the current increase in workload is temporary in nature. CBO would also recommend the division undertake a current and continual work order analysis to determine a) a reasonable and attainable annual work plan for preventive maintenance and annualized estimates for demand maintenance work orders and b) an estimate of annual customer demand work orders that are billed to customers. Currently, both of these work types are addressed by the same staff billed out to different funding sources; it may be reasonable to create a distinction between customer-billed demand work orders and preventive and demand maintenance work orders, such that customer-billed demand staff can be scaled appropriately and a separate maintenance team can focus on preventive and demand maintenance that
Office of Management & Finance Page 34 of 50 March 6, 2018 is billed to building-specific operations and maintenance budgets. Absent this type of analysis and updated information on demand, it is difficult to assess an appropriate staffing level to address both work types. The implementation of a new work order system will help address this information gap. The division is currently employing three Utility Worker II positions, one of which is an authorized FTE and two of which are double-filled positions and are presumably being supported by customer billings10. CBO recommends 1.0 additional FTE for a Utility Worker II position, with the understanding that the position will direct bill customers for demand work orders. Ultimately, this will reduce the workload on FMT staff to address customer demand work orders, allowing them time to focus on higher-skilled preventive and demand maintenance. CBO Recommendation: $0.00, 1.00 FTE Jasmine Block Building Funding MF_32, $22,335,250, 0.00 FTE This request is to appropriate $2.6 million in General Fund one-time resources and $19.7 million in bond proceeds for the Jasmine Block project led by PSU. The purpose of the $22.3 million project is to fund the development of 30,000 square feet of City-owned space in the Jasmine Block building. This calculates to approximately $745 per square foot total cost to the City to occupy the space. The total building cost is estimated to be $99.5 million for 199,000 square feet. The actual “occupant area” square footage occupied by the City will be closer to 23,000 square feet based on the PSU projections. Partner organizations, in addition to PSU, include OHSU and PCC. OMF-Facilities Services has not yet completed a tenancy study to evaluate tenancy options for the downtown core, but at this point, OMF anticipates that BPS will occupy the newly constructed space at the Jasmine Block. BPS currently occupies 22,457 square feet in the 1900 Building, and BDS employees currently in 31,964 square feet of out-leased space will be moved to the 1900 Building; the viability of this plan depends on purchasing smaller standardized kits of furniture for BDS – a cost which is not currently included in total project costs. It is also not clear whether bringing in BDS from currently out-leases space is a viable plan to keep the 1900 Building fully occupied, given that BDS staff numbers tend to be cyclical with economic trends. A business case analysis has not been performed to support the property development or tenancy assumptions from a centralized Citywide space planning perspective. The revenue bonds would be backed by the downtown core blended rate model, which is comprised of rental payments to Facilities Services from tenant bureaus in the downtown core (1900 Building, Portland Building, City Hall, leased space, and
10 Sufficient demand for customer-billed work orders is presumed by the bureau to be sufficient to cover the cost of this service. CBO offset the costs associated with this position with a reduction to the division’s limited term personal services budget.
Office of Management & Finance Page 35 of 50 March 6, 2018 in the future, the Jasmine Block). Debt financing for the project (exclusive of the furniture costs noted above) is estimated to be $1.8 million per year for 20 years, the impact of which will be to increase the blended downtown core rental rate from $39.03 per square foot to $41.18 per square foot – a 5.5% rent increase. The impact of the Jasmine Block project on the General Fund is estimated to be $715,000 annually, with the remainder of the increase to the blended rate borne by non-General Fund bureaus. At this point in time, however, the financing plan for the Jasmine Block is still in flux; final details of the financing strategy will not be complete until the development agreement is approved by Council. At this point, OMF staff is using the current projections of sources and uses for the project: Jasmine Block Sources and Uses Sources Debt financing $19,712,300 Cash financing Cash for non-capital expenses 2% for Art $311,600 1% for Community Benefits $155,800 Miscellaneous $10,000 Planning $250,000 Total for non-capital expenses $727,400
Cash for capital costs $301,600 Cash for interim financing $1,593,950 Total cash financing $2,622,950 Total sources $22,335,250
Uses Project Costs PSU shell and core $15,580,000 Tenant Improvements, furniture, project management $5,000,000 Bond issuance costs $161,300 Interim financing costs $1,593,950 Total uses $22,335,250 The negotiation of the development agreement has experienced delays. A resolution went before Council in March 2017 that indicated the development agreement and tenancy study would be finalized by June 2017. OMF is not authorized to sell bonds prior to City Council action confirming the City’s participation in the project via approval of a development agreement or similar documentation, but these funds should be budgeted in the Facilities Services Operating Fund pending approval by Council. CBO recommends that the $19.7 million in bond proceeds be budgeted in the Facilities Services Operating Fund, but does not recommend that the $2.6 million in General Fund resources be allocated as requested. As part of the lease rate equalization directed by Council (Resolution 37159), OMF
Office of Management & Finance Page 36 of 50 March 6, 2018 and CBO developed a blended rental rate model for City-occupied property in the downtown core. The resolution is silent on the matter of cash funding for new acquisitions. For the Portland Building Reconstruction project, it was ultimately determined that tenant bureaus would fund the 5% cash contribution11 based on their square footage. At this point the presumed tenant is BPS, a General Fund- funded bureau, but there is some degree of uncertainty given that the downtown tenancy study has not been completed. However, as the City moves toward implementation of the blended rate model in FY 2020-2021, an alternative option for cash contributions would be to pursue a practice whereby cash contributions to space acquisitions in the downtown core are funded by all downtown rate-payers based on the blended rate allocation model. OMF’s primary concerns with this approach are 1) that it is a deviation from the cash contribution model used for the Portland Building Reconstruction project and 2) that non-General Fund bureaus have not incorporated the Jasmine Block cash contribution into their 5 year financial plans. However, the General Fund five year forecast similarly does not account for a cash contribution to the Jasmine Block. The purpose of the blended rate model was to provide greater cost certainty and predictability to City bureaus and other tenants. The combination of a stronger centralized space planning function in OMF and a blended rate cash contribution will further the goals of cost certainty and reduce the unpredictability of large one- time resource requests to the General Fund. CBO does not recommend General Fund one-time resources for the Jasmine Block at this time, due to competing and compelling requests for one-time resources that are better aligned with priorities outlined in the Mayor’s budget guidance. CBO and OMF note that, upon approval of the development agreement by Council, there will be cash financing and cash contribution requirements for the project that are currently unfunded. This budgetary shortfall would need to be resolved, though a temporary inter-fund loan from the Facilities Services Operating Fund would be a potential stop gap to avoid project delays12. CBO would suggest that both the downtown core tenancy study and the modelling of a blended rate option for the cash contribution be completed prior to future General Fund requests for the Jasmine Block.
11 The City’s debt management policy states: When feasible, the City shall make contributions from current resources or from outside funding sources (such as state or federal grants) to each capital project or program. The target contribution shall be equal to at least 5% of the total capital cost of a project or program. 12 Assuming the use of bonds, OMF estimates an internal loan of $800,000 would be required to cover interim financing costs in FY 2018-19. OMF estimates that delaying the cash contribution to FY 2019-20 would require a Facilities Services internal fund loan to the project of approximately $727,400 during FY 2017-18 and FY 2018-19.
Office of Management & Finance Page 37 of 50 March 6, 2018 CBO Recommendation: $0.00, 0.00 FTE Yeon Building Operations & Maintenance Reduction MF_39, ($527), (0.00 FTE) This package would reduce the General Fund cash transfer to the Facilities Services Operating Fund for the operations and maintenance of the Yeon Building. The building is currently occupied by the Rose Festival Foundation for $1/month through 2035. The Foundation also makes $667 monthly payment to the General Fund to pay off the costs of a previous tenant improvement. CBO does not recommend this reduction, as the operations and maintenance funding for this building, technically a Parks asset, is limited and OMF has spent more than $10,000 per year on maintenance on average. In addition to operations and maintenance costs, Facilities Services has noted that there are likely outstanding and unfunded major maintenance liabilities at this property. Neither Parks or OMF have an interest in using or maintaining this property, nor is the full scope of outstanding major maintenance costs fully understood or funded. CBO recommends that Council direct OMF to develop options to address this outstanding liability for Council consideration. These options could include the following: The City continues to perform operations and maintenance only, accepting the risk of any outstanding major maintenance issues and identifying resources to address them on an ad hoc basis, The City allocates resources to OMF to examine the major maintenance issues and come up with a plan and funding options to address them over the long term, or The City looks for ways to dispose of the asset, such as a transfer of the property to the Rose Festival Foundation. Absent any action, the major maintenance liabilities at this property will remain unaddressed, as no entity within the City currently has an interest in the long-term status of the property. CBO Recommendation: $0.00, 0.00 FTE Jerome Sears Building Operations & Maintenance Reduction MF_38, ($3,866), (0.00 FTE) While this reduction is a low dollar amount and unlikely to materially impact operations and maintenance at the Sears property, Facilities Services has yet to finalize the Jerome Sears Occupancy Study and there are a number of tentative proposals for use of the property in the future. The property should be maintained until such time as a tenancy plan or asset disposal has been put forward and accepted by Council. CBO Recommendation: $0.00, 0.00 FTE
Office of Management & Finance Page 38 of 50 March 6, 2018 Add Security Services Funding MF_46, $663,895, 0.00 FTE This request is for continued augmentation of security services at City Hall ($604,660) funded by City Hall tenants, as wells as for additional security services at the 1900 Building funded by BDS ($59,235). Early in calendar year 2017, an uptick in security incidents at City Hall prompted an increase in contracted security services. The cost for these security services exceeded the available operations and maintenance budget for the building, so Facilities Services temporarily relied upon major maintenance reserves to fund these services. In the FY 2017-18 Fall BMP, additional one-time funds were authorized to support the increased security level into the current fiscal year. While this increased level of funding may be warranted to ensure both tenants and the public’s sense of safety when accessing City Hall, this level of spending on security is approximately four times the amount spent as recently as FY 2014-15. Year to date security incidents at City Hall appear to have fallen relative to the spike in late FY 2016-17 and early FY 2017-18, but the trend is not clear given that many City Council events were held in the Portland Building during construction in City Hall chambers. It is also not clear whether the decrease in security incidents resulted from the increase security presence or whether external factors led to a decreased number of incidents. CBO is not uniquely qualified to assess the appropriate level of security services at City Hall, but in light of competing requests for ongoing General Fund resources to fund other Council priorities and absent information from the pending Citywide Security Assessment, CBO recommends that security services at City Hall be maintained at the threshold in the FY 2018-19 base budget. The increased interagency agreement with BDS for security services at the 1900 Building is recommended as requested. CBO Recommendation: $59,235 I 0.00 FTE Cut Project Management Software MF_47, (29,950), 0.00 FTE This reduction option would eliminate $29,950 from Facilities Services division’s corporate rate. The division had intended to use this resource to fund a project management software implementation. However, at this time no software solution has been identified, nor is there a timeline in place or a project lead for the implementation. Further, a software purchase and implementation could be appropriately funded from the division’s operating reserve, and ongoing maintenance costs covered by the allocation of the division’s administrative costs in the future. CBO would be supportive of the implementation of a project management software solution and its inclusion in the administrative allocation across divisional rates; at this time, however, all this reduction does is reduce flexibility within the division’s corporate rate.
Office of Management & Finance Page 39 of 50 March 6, 2018 CBO Recommendation: ($29,950) I 0.00 FTE Modernize Justice Center Elevators MF_50, $2,900,000, 0.00 FTE This request is for one-time resources from the General Fund Capital Set Aside or Build Portland to fund the repair and modernization of four elevators at the Justice Center that are at the end of their useful life. According to bureau staff, the elevators are frequently out of service and occasionally this results in entrapments. This is a source of frustration for bureau staff. Elevator issues primarily affect Police Bureau staff on floors 11-15 of the building; the officers assigned to Central Precinct are on the first floor of the building. CBO does not recommend funding for this project from the General Fund Capital Set- Aside or from Build Portland, as the project did not score as highly as other one-time capital projects. However, to the degree that elevator modernization is both an issue for bureau staff and is a critical asset maintenance project appropriately funded from major maintenance reserves, CBO recommends that Facilities Services staff re- evaluate the use of Police facilities major maintenance reserves in the out-years. Currently, the division’s projected spending for major maintenance at Police facilities includes almost $1 million in carpet replacement and painting projects in the next four years. These types of cosmetic projects are more typically considered tenant improvements under the division’s major maintenance policy, and may not be the best use of limited major maintenance funding. CBO Recommendation: $0.00 I 0.00 FTE ONI Relocation Funding MF_51, $795,000, 0.00 FTE This request is for $750,000 in one-time General Fund resources to relocate ONI staff from the Kelly Building to create space for the Police Bureau’s Drugs and Vice Division (DVD), which will vacate its current space at the Justice Center. Per Facilities Services, moving DVD will create space for an office for the new Deputy Chief of the Police Bureau and otherwise relieve overcrowding. Facilities Services’ financial analyses indicated that relocating ONI to leased space was less expensive than remodeling existing space in the basement of the Kelly Building to accommodate DVD. At this time, it is not clear where ONI would be relocated. Facilities Services has been engaged in a search for leasable property on the inner eastside, and the $45,000 ongoing portion of this request is to fund the presumed increase in ONI’s rent relative to its current location at the Kelly Building. The $750,000 one-time request is for ONI’s relocation costs and tenant improvements at the to-be-determined leased space. CBO does not recommend this request for several reasons. First and foremost, there are competing requests for General Fund one-time resources that more directly tie to unfunded Citywide priorities. CBO also has reservations about funding this request
Office of Management & Finance Page 40 of 50 March 6, 2018 relative to other known and unknown Citywide space planning needs (see major issues section). CBO Recommendation: $0.00 I 0.00 FTE Funding for Immediate Response Campsite Clean-ups MF_53, $1,500,000, 0,00 FTE, MF_59, $96,123, 0.00 FTE This request is to increase the current level of funding for immediate campsite clean- ups coordinated by the Homeless and Urban Camping Impact Reduction Program (HUCIRP) and convert the funding source from interagency agreements with property-owning bureaus to General Fund discretionary resources. During FY 2017-18 budget development, Facilities Services moved to an interagency- funded program model, whereby PBOT, Parks, Water, and BES funded three HUCIRP program employees, the Clean Start contract, bureau-requested clean-ups, and a new reserve for “immediate” campsite clean-ups:
HUCIRP - FY 2017-18 Adopted Budget PBOT BES Parks Water Total
Immediate cleanups (do not require bureau permission) $251,651 $99,060 $112,067 $37,523 $500,301 Clean Start program $181,080 $71,280 $80,640 $27,000 $360,000 Bureau requested clean-up (estimated IA) $166,063 $65,369 $73,952 $24,761 $330,145 Program Staff Total (3.0 FTE) $156,446 $61,583 $69,670 $23,327 $311,026 Total $755,240 $297,292 $336,329 $112,611 $1,501,472
Allocation Model (based on 2 year average of 50.3% 19.8% 22.4% 7.5% 100.0% actuals)
However, during the current fiscal year, and at the direction of the Mayor’s Office, Facilities Services spending on immediate campsite clean-ups began to quickly outpace the funding authorized by the interagency agreement model. Because the majority of immediate clean-ups were authorized by HUCIRP staff for PBOT properties, Facilities Services actually overspent that interagency agreement with PBOT relatively early in the current fiscal year:
Office of Management & Finance Page 41 of 50 March 6, 2018 HUCIRP Immediate Campsite Clean-ups
FY 2017-18 Adopted Budget FY 2017-18 Actuals through 11/15/2017
PBOT $ 251,651 $ 493,391 BES $ 99,060 $ 37,898 Parks $ 112,067 $ 112,315 Water $ 37,523 $ 17,418 TOTALS $ 500,301 $ 661,022
As part of FY 2018-19 budget development, Facilities Services included in the base budget interagency agreements for this program that were substantially higher than FY 2017-18 ($2.9 million FY 2018-19 costs compared to $1.5 million budgeted in FY 2017-18). The increase was driven by three primary factors: The funding for immediate clean-ups was more than doubled, from $500,000 to $1.2 million to better align with current year projected spending, The division increased the base funding amount for the three program staff by $288,700 to capture indirect costs associated with them (a 93% increase over current year). The division increased estimates for bureau-requested IAs by $376,000 based on projections and historical usage. o Additional adjustments were made to individual agreements for based on the historical usage allocation methodology. Property-owning bureaus were not in support of this increase to the interagency agreements funding the HUCIRP program, in particular because 1) the staffing costs almost doubled with no increase in service level and 2) they were not afforded any input into the dollar amount or spend rate of the immediate clean-ups. In principle, property-owning bureaus have a responsibility to maintain those properties as a function of their mission. There is, however, a substantial difference between the level of service (and funding) that bureaus would internally prioritize for campsite clean-ups from a property maintenance perspective and the service level desired from a livability perspective (driven by resident concerns and Council priorities). Livability concerns across the City are a primary focus for Council and the HUCIRP approach has had success in lessening the impact of campsites; arguably, property-owning bureaus should be directed to reprioritize their internal resources to fund immediate clean-ups at the level and pace desired by Council. A risk factor in converting immediate clean-ups to General Fund is that bureaus will rely on that resource rather than initiating and funding clean-ups of their own accord. The current allocation model for immediate clean-ups leads to unpredictable charges to bureaus year over year, as it is challenging to project what level at which bureau
Office of Management & Finance Page 42 of 50 March 6, 2018 properties will require clean-ups, and the estimated interagency agreement is monitored and amended continually. Moreover, from an operational perspective, it is somewhat arbitrary whether an immediate clean-up is needed on a Parks, PBOT, Water, or BES property. What is constant about this program are the fixed costs required to manage it and support bureau-requested clean-ups, as well as the costs of the Clean Start program. CBO recommends that, going forward, Facilities Services establish base interagency agreements with property-owning bureaus to cover these fixed costs using an allocation model that does not fluctuate dramatically over time (e.g. percentage of total property owned or maintained by the bureaus, or some type of overhead-like model). These charges will include program staff, Clean Start, and a bureau-determined reserve for bureau-requested clean-ups. To lessen the unpredictability of immediate campsite clean-ups, and in recognition of the fact that they are initiated outside of the bureau’s control and typically at a level of service beyond mere property maintenance, these clean-ups will be funded by the General Fund going forward. Beginning in FY 2018-19, due to substantial and competing requests for General Fund resources to fund Citywide priorities, CBO recommends this service be funded with $500,000 in General Fund one-time resources. To the degree that Council desires an increased level of service, additional one-time resources will be added or additional offsets will be identified from the 5% reduction options submitted by bureaus. A programmatic change that Council may want to consider would be to relocate the HUCIRP staff to the Mayor’s Office or another location with lower overhead costs. Current overhead costs are $288,700 for the program; another office could have lower overhead costs but would still need to provide management oversite and financial management, for example. CBO also notes that there is an OMF request for General Fund discretionary to fund Parks’ increased portion of administrative costs of the program (MF_59). CBO has not recommended funding for this request due to the pending decision about the allocation methodology. (This IA increase has been added to MF_53, but General Fund Resources have not been added to Parks to back this increase.) Upon finalizing the methodology, it will be clear to what degree Parks’ portion of administrative costs have increased. At that point, Council may then choose to fund this package with new General Fund resources or ask the bureau to absorb these costs. Relatedly, Parks’ portion of costs for bureau-initiated clean-ups have increased; aiming to maintain the current service level for Parks, CBO has recommended funding for these increased costs in PK_40. CBO Recommendation: $500,000 one-time General Fund, 0.00 FTE BIBS Administration - Cut Strategic Planning and Operations Team MF_58, ($131,062), (1.00) FTE This reduction option would eliminate a vacant position in the centralized BIBS administration team. In the FY 2017-18 Fall BMP, this position was transferred from
Office of Management & Finance Page 43 of 50 March 6, 2018 Facilities Services to the BIBS administration team to centrally coordinate sustainability and climate action reporting, among other activities. Prior to this transfer, the position had been utilized to backfill a number of administrative responsibilities in addition to work related to the EnergyCap program. The position was originally funded via lower energy costs that would otherwise have resulted in lower tenant rates; at the time of the transfer to BIBS administration (and increased interagencies with Risk, CityFleet, and Printing & Distribution) the nexus to sustainability and energy reduction goals in other BIBS divisions (and benefit to their ratepayers) was unclear. As noted above, the indirect cost to BIBS divisions to fund a centralized administrative and management team have increased substantially in recent years. In order to fund other Citywide priorities via savings in customer bureaus, CBO recommends this reduction be taken. To the degree that OMF’s planned “deep dive” into Facilities Services and CityFleet results in a recommendation to restore this position, a request should be brought forward in the future. CBO Recommendation: ($131,062), (1.00) FTE Risk Management - Temporary Services Reduction MF_57, ($55,771), (0.00) FTE This decision package would reduce external materials and services resources in Risk Management’s Workers Compensation team. The division relies on this resource in part to fund a temporary services contract to augment staff during peak workload or to implement special projects. With this reduction, the division’s discretionary external materials and services budget will be reduced from $275,000 to $220,000 (a 20% reduction), limiting the division’s flexibility to rely on temporary staffing. Spending on temporary staffing, while generally low, has increased in recent years:
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 (YTD) Activate Staffing (flexible contract) - - $21,099 $15,645 Temporary Staff (budgeted as part time) $2,268 $16,014 $7,715 $24,038 Total $2,268 $16,014 $28,814 $39,683 The division notes that it relies on temporary staff to assist with workload when vacancies arise. While flexibility to address workload spikes is useful, CBO recommends this reduction. To the degree that the remaining materials and services budget does not cover desired levels of temporary staffing and other needs, the division should monitor its contract such that spending mirrors actual vacancy savings in the division. CBO Recommendation: ($55,771), (0.00) FTE CityFleet - Vehicle and Equipment Mechanic Reduction MF_56, ($190,899), (2.00) FTE This reduction option would eliminate two Vehicle and Equipment Mechanics in CityFleet; this is a direct service cut to customer bureaus, and would not reduce
Office of Management & Finance Page 44 of 50 March 6, 2018 CityFleet’s rates in any way. These two positions represent 3-4% of the division’s total technician workforce of 53 mechanics, and the elimination of these positions is likely to slightly increase the turnarouegnd times for vehicle repairs and preventive maintenance. Downtime for vehicles and equipment for repairs is a critical factor in multiple bureaus’ operations, from BES and Water to the Police Bureau. While the average turnaround time for preventive maintenance has been relatively stable in recent years, the average turnaround time for vehicle and equipment repairs has been increasing13. CityFleet attributes this increase to the addition of more specialty vehicles and equipment to the fleet, which require more time to repair and maintain. Based on these performance trends, general concern with the reduction option from customer bureaus, and the fact that this reduction option does not actually reduce customer rates, CBO does not recommend this reduction option be taken at this time. CBO Recommendation: ($0.00), (0.00) FTE CityFleet Jerome Sears and Eastside Fueling Station Reduction MF_55, ($343,754), (0,00) FTE This proposed reduction option would eliminate planned fueling stations at the Jerome Sears facility (Westside Emergency Staging location) and a to-be-determined location on the east side of Portland. The reconstruction of five existing fuel stations would continue as planned. The reduction represents an ongoing decrease in annual debt service of $342,753, $153,841 of which would be borne by General Fund bureaus. CBO does not recommend this reduction option, as the construction of the Westside Staging and eastside fuel stations are important components of the City’s emergency plans. This reduction option was not discussed with PBEM staff prior to its inclusion in the Requested Budget. In response to CBO follow-up, PBEM provided information underscoring the criticality of these fuel stations in the event of an emergency. The Critical Energy Infrastructure hub where 90% of fuel comes into Oregon is on liquefiable soils over a fault line; in the event of an earthquake or other disaster, the Westside fuel station may be the only station available to refuel City equipment and vehicles and the eastside fuel station would provide fuel to the generator and other systems at the Emergency Coordination Center. CBO Recommendation: ($0.00), (0.00) FTE Printing and Distribution Reductions MF_01, MF_02, MF_03, MF_04, ($123,121), (0.00) FTE The Printing & Distribution (P&D) division put forward four reduction option packages totaling $123,121 ($53,087 estimated General Fund impact). Two of these options –
13 See relevant BIBS performance management dashboard here: https://www.portlandoregon.gov/bibs/article/670103
Office of Management & Finance Page 45 of 50 March 6, 2018 adjusting default settings to encourage fewer unnecessary color copies and elimination of an additional charge to downtown bureaus for sorting mail to temporary spaces – are not anticipated to have any negative impacts for bureaus or on operations within P&D (MF_02 and MF_03). CBO recommends these reductions. A third reduction option (MF_ 04) would be to eliminate Saturday US Mail sorting and delivery. This change is already underway, and the change has been communicated to customer bureaus, who will now receive weekend mail on Mondays. CBO recommends this reduction as well. Finally, P&D put forward a reduction option that would eliminate evening hours at the P&D satellite office at the 1900 Building during BDS’s Thursday Residential Permit Night ($15,000). While this service is not cost recovery - the revenue generated from these evening hours does not exceed the cost to operate the satellite office – BDS has indicated that the extra hours are a valuable service to residents seeking permits, who often arrive at the permitting center without the documentation and copies that are required. Given the value of the service to residents, the relatively low dollar amount of the reduction, and the impact it may have on the success of BDS’s residential permitting night, CBO does not recommend this reduction option. CBO Recommendation: ($108,121), (0.00) FTE
Office of Management & Finance Page 46 of 50 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of the Office of Management and Finance’s total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance$ 176,814,874 $ 188,740,828 $ (343,753) $ 343,753 $ 188,740,828 Taxes 33,500,000 36,086,000 - - 36,086,000 Licenses & Permits 5,717,500 5,634,000 - - 5,634,000 Charges for Services 88,257,581 121,785,942 (18,863) 15,000 121,782,079 Intergovernmental Revenues 11,478,854 11,948,119 (62,005) 61,486 11,947,600 Interagency Revenue 166,072,914 163,990,916 (1,630,525) 1,827,246 164,187,637 Fund Transfers - Revenue 2,442,355 4,272,404 4,913,557 (4,413,557) 4,772,404 Bond and Note Proceeds 69,992,147 62,801,551 19,712,300 - 82,513,851 Miscellaneous Sources 5,832,406 6,824,224 43,788 6,212 6,874,224 General Fund Discretionary 16,420,472 15,863,247 1,995,368 (1,249,802) 16,608,813 General Fund Overhead 11,139,615 11,164,349 (219,798) 98,038 11,042,589 Miscellaneous Fund Allocations (3,000,000) (2,430,626) - - (2,430,626) Total Resources $584,668,718 $626,680,954 $24,390,069 ($3,311,624) $647,759,399
Requirements Personnel Services $ 83,996,628 $ 87,110,292 $ (692,773) $ 1,240,046 $ 87,657,565 External Materials and Services 233,229,756 233,949,803 2,689,591 (2,259,450) 234,379,944 Internal Materials and Services 28,501,214 28,000,358 295,948 (114,225) 28,182,081 Capital Outlay 51,792,745 84,907,369 18,013,714 343,753 103,264,836 Debt Service 12,607,436 11,974,372 614,522 343,753 12,932,647 Fund Transfers - Expense 6,585,138 6,204,692 - - 6,204,692 Contingency 167,955,801 174,534,068 3,469,067 (2,865,501) 175,137,634 Total Requirements $584,668,718 $626,680,954 $24,390,069 ($3,311,624) $647,759,399
Office of Management & Finance Page 47 of 50 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of Management & Finance Adds MF_21 - BRFS - Add Tax Collection Staff for Three Years 01 5.00 0 1,818,434 0 1,818,434 3.00 0 300,000 0 300,000 MF_22 - BRFS - Continue IRS Data Exchange Program 02 2.00 501,464 0 0 501,464 2.00 0 501,464 0 501,464 MF_23 - BRFS - Increase Utility Franchise/Audit Support 03 1.00 98,750 50,000 0 148,750 1.00 0 118,730 0 118,730 MF_05 - BTS - PC/Laptop Lifecycle Replacement Schedule04 0.00 0 0 233,577 233,577 0.00 0 0 233,577 233,577 MF_07 - BTS - Microsoft Enterprise Mobility + Security 05 0.00 0 0 461,892 461,892 0.00 0 0 461,892 461,892 MF_20 - BHR-Employment and Outreach Add 06 3.00 168,403 0 199,795 368,198 3.00 168,403 0 199,795 368,198 MF_49 - Fac - Add 1 FTE Fac Main Technician Apprentice07 1.00 0 0 88,713 88,713 0.00 0 0 0 0 MF_52 - Fac - Add 1 FTE Utility Worker II Position 08 1.00 0 0 87,727 87,727 1.00 0 0 0 0 MF_13 - Bus Ops-Add Accounting Tech Position 09 1.00 9,109 0 51,209 60,318 0.00 0 0 0 0 MF_48 - Fac - Add Two FTE Facilities Dispatchers 10 2.00 0 0 203,299 203,299 0.00 0 0 0 0 MF_50 - Fac - Modernize Justice Center Elevators 11 0.00 0 2,900,000 0 2,900,000 0.00 0 0 0 0 MF_06 - BTS - Enterprise Mobility Management 12 2.00 0 0 319,805 319,805 2.00 0 0 319,805 319,805 MF_51 - Fac - ONI Relocation Funding 13 0.00 45,000 750,000 0 795,000 0.00 0 0 0 0 MF_59 - Fac - Fund Parks Additional HUCIRP Costs 14 0.00 0 0 96,123 96,123 0.00 0 0 0 0 MF_46 - Fac - Add Security Services Funding 15 0.00 0 0 663,895 663,895 0.00 0 0 0 0 MF_53 - Fac - Funding for Immediate Response Clean-ups16 0.00 1,500,000 0 (513,309) 986,691 0.00 0 500,000 (417,186) 82,814 MF_32 - Fac - Jasmine Block Building Funding 17 0.00 0 2,622,950 19,712,300 22,335,250 0.00 0 0 19,712,300 19,712,300 Total Adds 18.00 2,322,726 8,141,384 21,605,026 32,069,136 12.00 168,403 1,420,194 20,510,183 22,098,780 Reductions MF_03 - P&D Downtown Office Space Delivery Efficiencies01 0.00 0 0 (32,000) (32,000) 0.00 0 0 (32,000) (32,000) MF_01 - P&D Reduce Operating Hours at the 1900 Building02 0.00 0 0 (15,000) (15,000) 0.00 0 0 0 0 MF_02 - P&D Reduction of Color Copies 03 0.00 0 0 (67,321) (67,321) 0.00 0 0 (67,321) (67,321) MF_04 - P&D Eliminate Saturday US Mail Sorting 04 0.00 0 0 (8,800) (8,800) 0.00 0 0 (8,800) (8,800) MF_55 - Fleet-Jerome Sears and Eastside Fueling Stations05 0.00 0 0 (687,506) (687,506) 0.00 0 0 0 0 MF_39 - Fac - 5% Reduction for Yeon Building O&M 06 0.00 (527) 0 0 (527) 0.00 0 0 0 0 MF_38 - Fac - 5% Reduction for Sears Facility O&M 07 0.00 (3,866) 0 0 (3,866) 0.00 0 0 0 0 MF_31 - BHR-Reception Services Realignment 08 0.00 (13,154) 0 13,154 0 0.00 (13,154) 0 13,154 0 MF_58 - SPOT - Cut Perform Metrics Program Coordinator09 (1.00) 0 0 (131,062) (131,062) (1.00) 0 0 (131,062) (131,062) MF_57 - BIBS - Risk Temporary Services Cut 10 0.00 0 0 (55,771) (55,771) 0.00 0 0 (55,771) (55,771)
Office of Management & Finance Page 48 of 50 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of Management & Finance Reductions MF_09 - Bus Ops-Strat Plan and Fee Study Cut 11 0.00 (58,399) 0 (69,286) (127,685) 0.00 (58,399) 0 (24,286) (82,685) MF_24 - BRFS - Cut Open Signal Community Media Services12 0.00 (288,018) 0 0 (288,018) 0.00 (72,000) 0 0 (72,000) MF_25 - BRFS - Cut Admin, Equity, Outreach, Training 13 0.00 (124,059) 101,191 22,868 0 0.00 (126,868) 103,999 22,869 0 MF_44 - Fac - Cut 1 FTE Senior Management Analyst 14 (1.00) 0 0 (146,895) (146,895) 0.00 0 0 0 0 MF_43 - Fac - Cut 1 FTE Facilities Dispatch Position 15 (1.00) 0 0 (95,392) (95,392) 0.00 0 0 0 0 MF_47 - Fac - Cut Project Management Software 17 0.00 0 0 (29,950) (29,950) 0.00 0 0 0 0 MF_27 - BRFS - Cut Support for Grants, Spec Approp, CEIP18 (1.00) (17,533) 0 (20,801) (38,334) 0.00 0 0 0 0 MF_26 - BRFS - Cut Admin, Overtime, Consulting, Training19 (0.50) (57,878) 0 (68,667) (126,545) 0.00 0 0 0 0 MF_41 - Fac - Cut 1 FTE Fac Construction Project Manager20 (1.00) 0 0 0 0 0.00 0 0 0 0 MF_42 - Fac - Cut 1 FTE Fac Construction Proj Specialist21 (1.00) 0 0 0 0 0.00 0 0 0 0 MF_14 - BTS - Text Archiving Service Reduction 22 0.00 0 0 (151,968) (151,968) 0.00 0 0 0 0 MF_19 - BTS - Support Center Intern Program 23 0.00 0 0 (133,120) (133,120) 0.00 0 0 0 0 MF_35 - BTS - Application Development Services #2 24 (1.00) 0 0 (143,906) (143,906) 0.00 0 0 0 0 MF_34 - BTS - Application Development Services #1 25 (1.00) 0 0 (131,717) (131,717) 0.00 0 0 0 0 MF_45 - Fac - Cut 2 FTE Fac Maintenance Technicians 26 (2.00) 0 0 (214,469) (214,469) 0.00 0 0 0 0 MF_40 - Fac - Cut Asset Mgmt Prgm Coordinator Position27 0.00 0 0 (120,573) (120,573) 0.00 0 0 0 0 MF_29 - BHR-City Wide Training Fund Cut 28 0.00 (43,450) 0 (51,550) (95,000) 0.00 (43,450) 0 (51,550) (95,000) MF_28 - BHR-Site Team Manager Cut 29 (1.00) (82,327) 0 (97,673) (180,000) (1.00) (82,327) 0 (97,673) (180,000) MF_30 - BHR-Labor Relations Coordinator Cut 30 (1.00) (67,165) 0 (79,685) (146,850) 0.00 0 0 0 0 MF_36 - BTS - Customer Relations & IS Internship Program31 0.00 0 0 (50,000) (50,000) 0.00 0 0 0 0 MF_33 - BTS - Public Safety Reporting Services Reduction32 (1.00) 0 0 (81,657) (81,657) 0.00 0 0 0 0 MF_10 - BTS - Enterprise Asset Management Implementation33 (1.00) 0 0 (143,737) (143,737) 0.00 0 0 0 0 MF_08 - BTS - Tableau Implementation Reduction 35 (1.00) 0 0 (184,556) (184,556) (1.00) 0 0 (184,556) (184,556) MF_11 - BTS - Public Safety Radio Template Development36 (1.00) 0 0 (122,401) (122,401) 0.00 0 0 0 0 MF_16 - BTS - Stores and Procurement Services Reduction37 (1.00) 0 0 (171,889) (171,889) 0.00 0 0 0 0 MF_17 - BTS - Enterprise Architecture Reduction #1 38 (1.00) 0 0 (206,659) (206,659) 0.00 0 0 0 0 MF_18 - BTS - Enterprise Architecture Reduction #2 39 (1.00) 0 0 (147,618) (147,618) 0.00 0 0 0 0 MF_15 - BTS - Continuity of Operations Planning 40 (1.00) 0 0 (128,463) (128,463) 0.00 0 0 0 0 MF_54 - BTS - Project Business Analysis Services 41 (1.00) 0 0 (178,913) (178,913) 0.00 0 0 0 0
Office of Management & Finance Page 49 of 50 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of Management & Finance Reductions MF_56 - Fleet-Two Vehicle and Equipment Mechanics 42 (2.00) 0 0 (190,899) (190,899) 0.00 0 0 0 0 Total Reductions (23.50) (756,376) 101,191 (4,123,882) (4,779,067) (3.00) (396,198) 103,999 (616,996) (909,195) Total Office of Management & Finance (5.50) 1,566,350 8,242,575 17,481,144 27,290,069 9.00 (227,795) 1,524,193 19,893,187 21,189,585
Office of Management & Finance Page 50 of 50 March 6, 2018 Budget Review | Fiscal Year 2018-19 Office of the Mayor Analysis by Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $4.5 M $3.9 $3.7 $3.6 $4.0 M $3.3 $3.1 $3.5 M $3.0 M $2.5 $2.5 M
$2.0 M
$1.5 M
$1.0 M
$0.5 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
17.0 FTE 17.0 FTE 17.0 FTE 20.0 FTE 20.0 FTE 20.0 FTE
INTRODUCTION Council Offices were not required to submit reductions of 5% to their fiscal year 2018-19 Current Allocation Target. The Office of the Mayor submitted two decision packages for the fiscal year 2018-19 Requested budget process. The Office of the Mayor does not have any significant issues.
Office of the Mayor 1 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
$40,000 General Fund General Fund Ongoing One-Time Other Revenues $35,000 $40,000
$30,000 $28,499 $35,000 $24,021 $25,000 $30,000 $25,000 $20,000 $20,000 $15,000 $15,000 $10,000 $10,000 $5,000 $5,000 $- $- $- $- $- $- $- $- $- $- $0 $0 General Fund General Fund Other Ongoing One-Time Revenues
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Senior Staff Representative Funding Request MY_01, $20,920, 0.00 FTE This package maintains support for two Senior Commissioner Staff Representative (CSR) positions that were converted from Commissioner Staff Representative in the 2017 Fall Supplemental Budget process. The two positions were funded on a one-time basis from November 1, 2017 to June 30, 2018. The request was put forward for one-time General Fund resources with the understanding that an ongoing request would be made during the FY 2018-19 budget development process. Given the limited ongoing General Fund resources CBO does not recommend this request, recognizing that it may be challenging for the office to absorb these additional costs within existing resources. CBO Recommendation: $0 | 0.00 FTE
SummerWorks Program Additional Funding MY_02, $31,600, 0.00 FTE
Office of the Mayor 2 March 6, 2018 The Mayor’s Office is requesting $31,600 in ongoing resources to fully fund the SummerWorks program at the July 2018 minimum wage rate of $12 per hour. The Mayor’s Office received $550,000 in ongoing funding for the SummerWorks program in fiscal year 2017-18 Adopted budget. Due to the $0.75 increase in the minimum wage, the cost per internship has risen from $2,550 to $2,645. As such, the Office is requesting the difference to continue funding 220 internship positions. SummerWorks is a youth employment program facilitated by Worksystems, Inc., a Portland-based non-profit workforce development organization. In FY 2017-18 the City of Portland allocated $2,917,000 to Worksystems, Inc., or about 10% of their total annual revenue, making it the single largest non-federal contributor. During the last fiscal year, 1,029 youth participated in the SummerWorks program and earned a collective $1,539,1741 in wages. SummerWorks reflects the values in the City’s Racial Equity Plan, with 67% of participants identifying as coming from communities of color. Further, 97% of participants identify as low-income. The program reported the following demographics for FY 2017-18: • 67% were kids of color (including • 8% were pregnant or parenting Hispanics of white race) • 74% were out of school • 31% received public assistance • 14% were homeless • 73% had no high school diploma or GED CBO does not recommend ongoing funding given the very limited amount of ongoing General Fund available and competing requests. The City will need to discuss the desired level of service provided by this program as minimum wage costs continue to rise. As such, CBO does recommend funding for this request at this time. CBO Recommendation: $0 | 0.00 FTE
1 WorkSystems Annual Report: 2016-2017, Accessed February 12, 2018, https://www.worksystems.org/sites/default/files/Worksystems%20Annual%20Report%20- %20June%2C%202017_0.pdf
Office of the Mayor 3 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Mayor’s Office is funded through the General Fund Overhead model. Expenses are primarily staff costs. External materials and services include professional services, out of town travel, and education in addition to general operating expenses. Internal materials and services include space and technology costs as well as other OMF interagencies. Below is a summary of the Office of the Mayor’s total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources General Fund Discretionary 2,051,446 1,660,811 24,021 (24,021) 1,660,811 General Fund Overhead 1,828,614 1,945,764 28,499 (28,499) 1,945,764 Total Resources $3,880,060 $3,606,575 $52,520 $ (52,520) $3,606,575
Requirements Personnel Services $ 2,498,338 $ 2,283,700 $ 20,920 $ (20,920) $ 2,283,700 External Materials and Services 715,563 816,501 31,600 (31,600) $ 816,501 Internal Materials and Services 666,159 506,374 - - $ 506,374 Total Requirements $3,880,060 $3,606,575 $52,520 $ (52,520) $3,606,575
Office of the Mayor 4 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of the Mayor Adds
MY_01 - MY-Senior Staff Representative Funding NA 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0 MY_02 - MY-Summerworks Program Additional Fundin NA 0.00 14,453 0 17,147 31,600 0.00 0 0 0 0 Total Adds 0.00 24,021 0 28,499 52,520 0.00 0 0 0 0
Total Office of the Mayor 0.00 24,021 0 28,499 52,520 0.00 0 0 0 0
Office of the Mayor 5 March 6, 2018 Office of the Mayor 6 March 6, 2018 Budget Review | Fiscal Year 2018-19 Commissioner of Public Affairs (Saltzman) Analysis by Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $35.0 M $30.5 $30.4 $26.9 $30.0 M
$23.0 $25.0 M $19.0 $20.0 M $14.1 $15.0 M
$10.0 M
$5.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
14.0 FTE 14.0 FTE 14.9 FTE 15.9 FTE 16.9 FTE 16.9 FTE
INTRODUCTION Council Offices were not required to submit reductions of 5% to their FY 2018-19 Current Allocation Target. The Children’s Investment Fund is included in the Commissioner of Public Affair’s budget, resulting in significantly higher overall budget than other Council offices. The rapid increase in overall budget correlates with growing resources in the Children’s Investment Fund as the property tax compression experienced by the local option levy unwinds. The Office of the Commissioner of Public Affairs has requested an additional $31,380 to maintain
Commissioner of Public Affairs 1 March 6, 2018 three Senior Commissioner Staff Representatives and $122,000 for two packages at the Gateway Center for Domestic Violence. There are no significant issues.
Commissioner of Public Affairs 2 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $102,709 Ongoing One-Time Other Revenues Bureau requested
CBO recommends
$50,671
$33,643 $28,357
$- $- $- $- $- $- $- $- General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
1.0 FTE 0.0 FTE 1.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Senior Staff Representative Funding Request PA_01, $31,380, 0.00 FTE This package maintains support for three Senior Commissioner Staff Representative (CSR) positions that were converted from Commissioner Staff Representative in the 2017 Fall Supplemental Budget process. Two CSR positions within the Office of Public Affairs and one CSR position at the Gateway Center for Domestic Violence (GCDV) were converted to Senior Commissioner Staff Representative. This package maintains support for the Senior Commissioner Staff Representative positions for FY 2018-19. The three positions were funded on a one-time basis from November 1, 2017 to June 30, 2018. The request was put forward for one-time General Fund resources with the understanding that an ongoing request would be made during the fiscal year 2018-19 budget development process. Based on the lack of General Fund resources, CBO does not recommend funding, recognizing that it may be challenging for the office to absorb these additional
Commissioner of Public Affairs 3 March 6, 2018 costs within existing resources. CBO Recommendation: $0 | 0.00 FTE
Gateway Center – Permanent CASS Position PA_02, $62,000, 1.00 FTE In FY 2017-18, the Gateway Center for Domestic Violence received $35,000 in one- time resources to fund a full-time Commissioners Administrative Support Specialist (CASS) position. In prior fiscal years, the position was held by a rotating group of temporary interns that were supplied through the Oregon Department of Human Services, Jobs Plus program. The Gateway Center did not renew the grant as of the fiscal year 2017-18 Fall Supplemental Budget process as growing demand created a need for a full-time, permanent position. Between 2015 and 2017, the Center experienced an increase in individual adult clients from 3,153 and 6,854 service visits to 3,977 individual adult clients and 8,536 service requests in 2017. Although there is a limit on how much the increase can grow, with the Center reaching capacity most days, front desk staff must interface with children, support staff, and all onsite partners as well as manage the restraining order court room. The CASS position allows the Gateway Center to meet the needs of the growing number of individual clients and service requests by facilitating a more streamlined response as a single administrator rather than a rotating group of temporary interns. This request serves citywide equity goals. Based on the limited ongoing General Fund resources, CBO instead recommends $62,000 in one-time resources to fund this request for an additional year. CBO Recommendation: $62,000 | 1.00 FTE
Gateway Center – Immigration Legal Services PA_03, $60,000, 0.00 FTE The immigration legal services program is carried out by the Gateway Center in partnership with the Catholic Charities Immigration Legal Services (“CC-ILS”). This year, the program provided consultation to 48 domestic violence survivors from 9 countries, of these contacts, 58% have received immigration relief. In the FY 2017-18 budget, the program was funded with one-time resources. This package requests $60,000 in ongoing General Fund resources to provide support for an attorney to be available for clients at the Center all day on Wednesdays. Approximately 25 of those clients will receive ongoing immigration legal representation which accounts for half of this funding request.
Commissioner of Public Affairs 4 March 6, 2018 Given the limited ongoing General Fund resources CBO does not recommend this request. CBO Recommendation: $0 | 0.00 FTE
Commissioner of Public Affairs 5 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Commissioner of Public Affairs’ budget includes the administrative costs of the elected official’s office, staff for the Gateway Center for Domestic Violence Services, and administration and grant funding for the Portland Children’s Levy. The Portland Children’s Levy is expected to generate $2,040,157 more in tax revenues in fiscal year 2018-19. Current spending for fiscal year 2017-18 is expected to generate a $1.57 million increase to the budgeted beginning fund balance. The additional resources are budgeted as contingency and external materials and services in FY 2018-19. Below is a summary of the Commissioner of Public Affairs total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance$ 5,800,000 $ 7,375,000 -$ -$ $ 7,375,000 Taxes 18,983,154 21,023,311 - - 21,023,311 Intergovernmental Revenues 27,000 27,000 - - 27,000 Miscellaneous 24,733 - - - - General Fund Discretionary 1,410,921 905,512 102,709 (74,352) 933,869 General Fund Overhead 624,995 1,060,875 50,671 (17,028) 1,094,518 Total Resources $26,870,803 $30,391,698 $153,380 (91,380) $30,453,698
Requirements Personnel Services $ 1,866,538 $ 1,946,714 $ 93,380 $ (31,380) $ 2,008,714 External Materials and Services 18,840,291 19,851,893 60,000 (60,000) $ 19,851,893 Internal Materials and Services 323,173 268,294 - - $ 268,294 Fund Transfers - Expense 25,000 25,000 - - $ 25,000 Contingency 5,815,801 8,299,797 - - $ 8,299,797 Total Requirements $26,870,803 $30,391,698 $153,380$ (91,380) $30,453,698
Commissioner of Public Affairs 6 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Commissioner of Public Affairs Adds
PA_01 - PA-Senior Staff Representative Funding NA 0.00 14,352 0 17,028 31,380 0.00 0 0 0 0 PA_02 - PA- Gateway Center - Permanent CASS Posit NA 1.00 28,357 0 33,643 62,000 1.00 0 28,357 33,643 62,000 PA_03 - PA- Gateway Center - Immigration Legal Serv NA 0.00 60,000 0 0 60,000 0.00 0 0 0 0 Total Adds 1.00 102,709 0 50,671 153,380 1.00 0 28,357 33,643 62,000
Total Commissioner of Public Affairs 1.00 102,709 0 50,671 153,380 1.00 0 28,357 33,643 62,000
Commissioner of Public Affairs 7 March 6, 2018 Commissioner of Public Affairs 8 March 6, 2018 Budget Review | Fiscal Year 2018-19 Commissioner of Public Safety (Eudaly) Analysis by Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $1.4 M $1.2 $1.2 $1.1 $1.1 $1.2 M $1.0 $1.0 $1.0 M
$0.8 M
$0.6 M
$0.4 M
$0.2 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
7.0 FTE 8.0 FTE 8.0 FTE 8.0 FTE 8.0 FTE 8.0 FTE
INTRODUCTION Council Offices were not required to submit reductions of 5% to their FY 2018-19 Current Allocation Target and there are no significant issues for the Office of the Commissioner of Public Safety. The Office has submitted one decision package requesting ongoing funding for two positions that were reclassified during the FY 2017-18 Fall Supplemental Budget process.
Commissioner of Public Safety 1 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues
$11,352 $9,568.0
$- $- $- $- $- $- $- $- $- $- General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Senior Staff Representative Funding Request PS_01, $20,920, 0.00 FTE This package maintains support for two Senior Commissioner Staff Representative (CSR) positions that were converted from Commissioner Staff Representative, in the Fall Supplemental Budget process in 2017. The two positions were funded on a one-time basis from November 1, 2017 to June 30, 2018. The request was put forward for one-time General Fund resources with the understanding that an ongoing request would be made during the fiscal year 2018-19 budget development process. The Office of the Commissioner of Public Safety has not yet converted the two CSR positions into Senior Commissioner Staff Representative and is in the process of filling two vacancies. Currently, the Office has the resources within its external materials and services (EMS) budget and to a lesser degree its personnel budget. Over the last six fiscal years (which include three different elected officials), the Office of the Commissioner of Public Safety has expended an average of 63% of the EMS budgeted amount and 89% of its personnel budget. Given the limited ongoing General Fund resources CBO does not recommend this request recognizing that it may be challenging for the office to absorb these
Commissioner of Public Safety 2 March 6, 2018 additional costs within existing resources, particularly as the office achieves full staffing. CBO Recommendation: $0 | 0.00 FTE
Commissioner of Public Safety 3 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Office of the Commissioner of Public Safety is funded through the General Fund Overhead model. Expenses are primarily staff costs. External materials and services include professional services, out of town travel and general operating expenses. Internal materials and services include space and technology costs as well as other OMF interagencies. Below is a summary of the Office of the Commissioner of Public Safety’s total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources General Fund Discretionary 540,549 529,539 9,568 (9,568) 529,539 General Fund Overhead 641,006 620,394 11,352 (11,352) 620,394 Total Resources $1,181,555 $1,149,933 $20,920 $ (20,920) $1,149,933
Requirements Personnel Services $ 911,588 $ 911,760 $ 20,920 $ (20,920) $ 911,760 External Materials and Services 24,624 50,857 - - 50,857 Internal Materials and Services 245,343 187,316 - - 187,316 Total Requirements $1,181,555 $1,149,933 $20,920 $ (20,920) $ 1,149,933
Commissioner of Public Safety 4 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Commissioner of Public Safety Adds
PS_01 - PS-Senior Staff Representative Funding 01 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0 Total Adds 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0
Total Commissioner of Public Safety 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0
Commissioner of Public Safety 5 March 6, 2018 Commissioner of Public Safety 6 March 6, 2018 Budget Review | Fiscal Year 2018-19 Commissioner of Public Utilities (Fritz) Analysis by Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $1.4 M $1.2 $1.2 $1.1 $1.2 M $1.0 $1.1 $1.0 $1.0 M
$0.8 M
$0.6 M
$0.4 M
$0.2 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended -$0.2 M
7.0 FTE 8.0 FTE 8.0 FTE 8.0 FTE 8.0 FTE 8.0 FTE
INTRODUCTION Council Offices were not required to submit reductions of 5% to their FY 2018-19 Current Allocation Target and there are no significant issues for the Office of the Commissioner of Public Utilities. The office has submitted one decision package requesting ongoing funding for two positions reclassified during the FY 2017-18 Fall Supplemental Budget process.
Commissioner of Public Utilities 1 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues
$11,352.0 $9,568
$- $- $- $- $- $- $- $- $- $- General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Senior Staff Representative Funding Request PU_01, $20,920, 0.00 FTE This package maintains support for two Senior Commissioner Staff Representative (CSR) positions that were converted from Commissioner Staff Representative, in the Fall Supplemental Budget process in 2017. The two positions were funded on a one-time basis from November 1, 2017 to June 30, 2018. The request was put forward for one-time General Fund resources with the understanding that an ongoing request would be made during the FY 2018-19 budget development process. Alternatively, the Office could fund the ongoing positions within existing resources. Although it would reduce budgetary flexibility, underspending in the personnel budget presents an option for funding this request. Personnel budget underspending averaged $62,000 between fiscal year 2012-13 and fiscal year 2016-17. Given the limited ongoing General Fund resources CBO does not recommend this request, recognizing that it may be difficult for the office to absorb this cost within existing resources.
Commissioner of Public Utilities 2 March 6, 2018 CBO Recommendation: $0 | 0.00 FTE
Commissioner of Public Utilities 3 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Office of the Commissioner of Public Utilities is funded through the General Fund Overhead model. Expenses are primarily staff costs. External materials and services include professional services, education, and consulting in addition to general operating expenses. Internal materials and services include space and technology costs as well as other OMF interagencies. Below is a summary of the Commissioner of Public Utilities’ total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources General Fund Discretionary 543,146 529,539 9,568 (9,568) 529,539 General Fund Overhead 643,785 620,394 11,352 (11,352) 620,394 Total Resources $1,186,931 $1,149,933 $20,920 $ (20,920) $ 1,149,933
Requirements Personnel Services $ 814,608 $ 901,651 $ 20,920 $ (20,920) $ 901,651 External Materials and Services 137,937 79,759 - - 79,759 Internal Materials and Services 234,386 168,523 - - 168,523 Total Requirements $1,186,931 $1,149,933 $20,920 $ (20,920) $ 1,149,933
Commissioner of Public Utilities 4 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Commissioner of Public Utilities Adds
PU_01 - PU-Senior Staff Representative Funding 01 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0 Total Adds 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0
Total Commissioner of Public Utilities 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0
Commissioner of Public Utilities 5 March 6, 2018 Commissioner of Public Utilities 6 March 6, 2018 Budget Review | Fiscal Year 2018-19 Commissioner of Public Works (Fish) Analysis by Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $1.4 M $1.2 $1.2 $1.1 $1.1 $1.2 M $1.0 $1.0 $1.0 M
$0.8 M
$0.6 M
$0.4 M
$0.2 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended -$0.2 M
9.0 FTE 9.0 FTE 9.0 FTE 8.0 FTE 9.0 FTE 9.0 FTE
INTRODUCTION Council Offices were not required to submit reductions of 5% to their FY 2018-19 Current Allocation Target and there are no significant issues for the Office of the Commissioner of Public Works. The Office has submitted one decision package requesting ongoing funding for two positions that were reclassified during the FY 2017-18 Fall Supplemental Budget process.
Commissioner of Public Works 1 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues
$11,352.0 $9,568.0
$- $- $- $- $- $- $- $- $- $- General Fund General Fund One- Other Revenues Ongoing Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Senior Staff Representative Funding Request PW_01, $20,920, 0.00 FTE This package maintains support for two Senior Commissioner Staff Representative roles that were converted from Commissioner Staff Representative in the Fall Supplemental Budget process in 2017. The positions were funded on a one-time basis from November 1, 2017 to June 30, 2018. The request was put forward for one-time General Fund resources with the understanding that an ongoing request would be made during the fiscal year 2018-19 budget development process. Alternatively, the Office may be able to fund the ongoing positions within existing resources. Although it would reduce budgetary flexibility, underspending in the personnel budget presents an option for funding this request. Personnel budget underspending averaged $40,000 between fiscal year 2012-13 and fiscal year 2016-17. Given limited ongoing General Fund Resources, CBO does not recommend funding, recognizing that it may be difficult for the office to absorb this cost within existing resources. CBO Recommendation: $0 | 0.00 FTE
Commissioner of Public Works 2 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS The Office of the Commissioner of Public Works is funded through the General Fund Overhead model. Expenses are primarily staff costs. External materials and services include professional services, out of town travel, and space rental in addition to general operating expenses. Internal materials and services include space and technology costs as well as other OMF interagencies. Below is a summary of the Office of the Commissioner of Public Works’ total budget. Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources General Fund Discretionary 540,478 529,539 9,568 (9,568) 529,539 General Fund Overhead 640,609 620,394 11,352 (11,352) 620,394 Total Resources $1,181,087 $1,149,933 $20,920 $ (20,920) $1,149,933
Requirements Personnel Services $ 907,271 $ 944,940 $ 20,920 $ (20,920) $ 944,940 External Materials and Services 39,475 35,421 - - 35,421 Internal Materials and Services 234,341 169,572 - - 169,572 Total Requirements $1,181,087 $1,149,933 $20,920 $ (20,920) $1,149,933
Commissioner of Public Works 3 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Commissioner of Public Works Adds
PW_01 - PW-Senior Staff Representative Funding 01 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0 Total Adds 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0
Total Commissioner of Public Works 0.00 9,568 0 11,352 20,920 0.00 0 0 0 0
Commissioner of Public Works 4 March 6, 2018 Budget Review | Fiscal Year 2018-19 Office of Neighborhood Involvement Analysis by Yung Ouyang
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $14.0 M $12.0 $11.4 $12.0 M $10.3 $10.6 $9.1 $10.0 M $7.8 $8.0 M
$6.0 M
$4.0 M
$2.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
39.2 FTE 44.3 FTE 54.5 FTE 57.2 FTE 61.2 FTE 57.1 FTE
INTRODUCTION The Office of Neighborhood Involvement (ONI) has proposed the elimination of the Graffiti Abatement program and its funding to Elders in Action to meet the budget guidance that General Fund-receiving bureaus submit 5% reduction options. ONI is also requesting ongoing General Fund resources totaling $441,393 for a Public Information Officer, a Management Analyst for Advisory Boards & Commissions, additional support for the East Portland Neighborhood Office, and other programs, as well as one-time General Fund resources totaling $1.25 million for Public Safety & Emergency Preparedness grants, a continuation of the Portland United Against Hate position, funding for accommodations, and other uses. The requested additions, including all revenue sources, are about 17% of the bureau’s
Office of Neighborhood Involvement 1 of 17 March 6, 2018 FY 2018-19 base budget.
KEY ISSUES Cannabis Program Revenues and Fund Creation While the Cannabis regulation program initially required subsidy by the General Fund, the program was completely supported by program fees beginning in FY 2016-17. Revenues ended that year $480,485 greater than expenses, and during the Fall 2017 Supplemental, ONI requested the funds to be carried forward into the current year. The request was approved by Council. Because the excess revenues comprised such a high percentage of total revenues (36.5%), CBO recommended that ONI create a separate fund for the program to increase transparency. The bureau is currently working with Central Accounting and CBO to draft the ordinance to create the fund. Legally, it is inadvisable for the City to use the revenues for any purposes unrelated to cannabis, and segregation of the program’s finances from the General Fund will help to prevent such unrelated utilization.
FY 2016-17 Cannabis Regulatory Program Revenues ($1.3 million)
Excess Revenues , $480,485 , 37%
Program Expenditures, $834,361 , 63%
Furthermore, CBO advised the bureau to engage in a fee study. ONI has begun the process of procuring a consultant to support them in doing a fee study. CBO continues to recommend the creation of the fund and the conducting of a fee study.
Portland United Against Hate (PUAH) Grants Update In FY 2017-18, the City appropriated $346,765 in one-time General Fund resources to provide grants to a network of culturally specific organizations to serve as central points of contact for the reporting of hate acts. Four grants totaling $94,585 have been approved by Council as of the beginning of February 2018, with $255,415 left to be approved for release. Grants for nine other organizations are in various stages of approval. ONI expects to carry forward funding into FY 2018-19 and is requesting a continuation into the next year of the position created to
Office of Neighborhood Involvement 2 of 17 March 6, 2018 support the program, manage the grants through close-out, and report to Council. ONI states that the success of the program will be measured in two areas: capacity building and data collection/analysis. The bureau indicates that grantees are expected to build staffing and volunteer capacity to serve as first points of contact for those who have experienced a hate incident, provide shared resources and referrals to services, and respond to such incidents with community-specific and culturally appropriate strategies. Success will be measured by the number of trainings and events, people trained or participating, number of points of contact systems, number of shared resources and organizations using the resources, and the number of culturally specific or marginalized communities served. Concerning data collection and analysis, the bureau notes that grantees are expected to develop a data platform for gathering, tracking, sharing, and analyzing local hate incidents, and resource community organizations to enter incident information into this tracking system. Success will be measured by the development and usage of the platform, the amount of data collected, number of resources associated with the data collection process, and usefulness of the data collection process as determined through surveying users. ONI notes that the grantees are in the early stages of accomplishing their grant goals but are on track to be successful in their projects.
Leadership and Organizational Changes In the past year, ONI had three different directors, experienced a handover to a new Commissioner-in-Charge, and lost at least three program leads as well as a Business Operations Supervisor. Among other effects, these transitions have resulted in delays on some important projects or work on important issues, and in at least one case the failure to transfer critical information to new leadership. The new leadership quickly undertook strategic planning efforts in order to reestablish ONI’s mission. The bureau developed three 10-year bureau-wide goals to guide the redesign and impacts of its work. ONI is also undergoing an assessment of its capacities and has identified new competencies. ONI has begun to identify metrics that it believes more accurately reflect the contributory and long-term nature of the bureau’s impact. It believes that these metrics make apparent the need for partnerships across communities, City bureaus, and social sectors, and they must also be disaggregated by population, place, age, disability, immigrant/refugee status, income, and other ways that communities identify. In addition, the bureau intends its programs to have metrics unique to their own impact and effectiveness. Examples of these types of metrics include: . Levels of trust and confidence in local government . Voting and participation in activities related to local elections
Office of Neighborhood Involvement 3 of 17 March 6, 2018 . Access to "Healthy, Connected and Equitable Communities" The effort to identify new metrics and associated data is a work in progress. CBO strongly supports the new thinking on metrics and performance management and recommends that the bureau’s vacant position dedicated to performance and contract management be filled quickly. Budget-related items that may reflect the bureau’s implementation of its new strategic direction include the Fall 2017 Supplemental appropriation of funding for a rebranding effort and the current request for a Public Information Officer position to help the bureau develop a communications strategy. Organizational changes with no fiscal impact include the joining of the Crime Prevention team with the staff from the Neighborhood program and more of an emphasis on public safety as opposed to only focusing on crimes. CBO recommends that ONI maintain focus on the issue of funding parity for the neighborhood coalitions, an issue that has been discussed in prior CBO reviews as well as the City Auditor’s November 2016 report1. The FY 2018-19 Requested Budget includes requests for additional resources for the East Portland Neighborhood Office that, if funded, may mean more services to East Portland, but does not adequately address the existing lack of funding parity (see discussion on packages NI_07 and NI_15 below).
1Community and Neighborhood Involvement: Accountability limited, rules and funding model outdated: https://www.portlandoregon.gov/auditservices/article/597834
Office of Neighborhood Involvement 4 of 17 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $1,248,243 Ongoing One-Time Other Revenues $0 $0 $0 $0
$(165,667) $441,393
$174,052 $138,585
$0 $0
$(438,436) General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.8 FTE 0.0 FTE 5.8 FTE Requested (1.0) FTE Requested Recommended Recommended
5% Reduction Eliminating the Graffiti Abatement and the Elders in Action Program and Associated Packages NI_01, NI_09, NI_17, NI_18 ($319,736), (1.00) FTE ONI submitted reduction five percent reduction options that would eliminate both its Graffiti Abatement program ($407,980) and its grant funding to Elders in Action (EIA) ($165,667). In addition, ONI is requesting one-time bridge funding of $80,000 for the EIA program if the ongoing allocation for it is eliminated.
Graffiti Reports 10,000 9,500 9,000 8,500 8,000 7,500 FY 14 FY 15 FY 16 FY 17
Office of Neighborhood Involvement 5 of 17 March 6, 2018 ONI’s Graffiti Abatement Program is made up of components including a free removal program for private property owners and a volunteer component that leverages additional resources and supplements the removal needs of the community. Reported incidents have remained relatively stable over recent years, and referrals for removal are based on these reports. Graffiti reports in FY 2016-17 totaled 9,301, an increase of 3.7% over the prior year. However, there can be substantial variance since property owners and volunteers who are actively cleaning up graffiti without contacting ONI may not be reporting all that is removed. In the past, half of all reports of graffiti came from North Portland. East Portland only accounted for 5% of overall reports. This is not necessarily reflective of the problem in East Portland, but rather the complaint driven nature of the program. ONI received $440,000 in one-time General Fund resources this year to implement a more proactive approach to the problem by hiring contractors to remove graffiti. The cost of referred graffiti clean-ups varies by size, type of material to be cleaned, and ease of removal, with a typical removal costing between $75 to $90 dollars, but a clean-up can be as expensive as $1,200 in some cases. ONI was not able to provide a geographic breakdown of where current year program funds have been spent, either for the complain-driven program or the proactive approach. Eliminating the Graffiti program would result in non-profits, small businesses, and low-income private property owners paying for removal. In addition, all enforcement of City Code pertaining to graffiti would be eliminated, as well as support for the volunteer removal teams. Although eliminating the program would disproportionately impact low-income communities who not only experience more incidents but also have fewer resources to mitigate them, ONI contends that it is proposing to cut the program for two main reasons: 1) the program is the least “core” to the work of the bureau, and 2) the City lacks a comprehensive, multi- bureau approach to the graffiti problem. On this second point, ONI notes that other City bureaus do not remove the graffiti on their properties. In addition, the Police Bureau devotes minimal resources to the problem. Similarly, the bureau has proposed to eliminate its Elders program, a grant contract with the non-profit Elders in Action that has been in place for at least 10 years. FY 2017-18 is the last year of the current contract. ONI is proposing this reduction partly because it believes that communities such as the elder community require more than a single bureau or single-organization response and more than the $165,000 that the City has been allocating. Other reasons for eliminating the program include the bureau not having staff capacity to attend to the program and the problematic model of a single outside organization receiving all of the City’s funding dedicated to elder issues. EIA has sought to diversify its funding sources over the years, but City funding still accounts for at least 20% of its budget. ONI is requesting $80,000 of bridge funding for EIA to provide support while the organization transitions off of City funding; EIA contends that to avoid financial
Office of Neighborhood Involvement 6 of 17 March 6, 2018 hardship, $130,000 of bridge funding is needed. EIA is also asking that it be reclassified as one of the Diversity and Civic Leadership (DCL) groups. CBO recommends the elimination of the Elders program with the addition of $80,000 of one-time bridge funding. This will give the City time to evaluate how it serves the needs of the elderly community and redesign the program for more effective outcomes, if it chooses to do so. CBO does not recommend the elimination of the Graffiti Abatement program because one of the Mayor’s FY 2018-19 budget priorities for ongoing General Fund resources is livability. While the manner in which the City manages the problem of graffiti in the city may have gaps in practice or resources, CBO does not believe that the program should be eliminated but that it should be evaluated and, depending on the outcome of that evaluation, redesigned. For example, such an examination may include evaluating the results of a proactive versus reactive approach to graffiti and examining the role that other City bureaus can play. As elimination of these programs would result in savings in excess of what is required, if the reductions are realized, the bureau would redirect the additional savings to cover the Crime Prevention program’s increased rent costs resulting from the Police Bureau requesting the program to move from its Penumbra Kelly Building ($18,700) and the costs associated with transferring the Disability PDX Program to a community organization ($20,000). Thus, ONI is requesting funding for these two in NI_17 and NI_18 if the elimination of the Graffiti program is not realized. Regarding the transfer of the Disability PDX Leadership Program, ONI states that $20,000 is a low estimate and if the funding is approved, would transfer out of its own budget whatever additional resources would be required to operate the program. The bureau states that when so much of its resources are devoted to the leadership program, there is less available for supporting coalitions, developing partnerships, and building governmental capacity for system change. The program was originally conceived to be operated by a community partner, but the coalition that developed it did not have the capacity to provide the program and eventually disbanded. For a number of years, leadership changes at ONI prevented it from taking the program on in response to community demand, but ONI believed that not hosting it would have damaged the City’s relationship with its disability communities and eventually began hosting it. CBO does not recommend transferring it to an outside entity in FY 2018-19 due to the lack of additional ongoing General Fund resources. It recommends that ONI make the request again in future years if that continues to be the desired direction. Concerning the increased rental costs soon to be experienced by the Crime Prevention program, the bureau is examining its space needs. CBO does not recommend additional resources for the rent increase. In the past, ONI allocated savings, after budgeting its base budget for personnel and materials & services, to
Office of Neighborhood Involvement 7 of 17 March 6, 2018 a Special Projects Fund. For FY 2018-19, ONI is transferring some of the savings to fund additional FTE for the East Portland Neighborhood Office (see NI_04 below). CBO recommends that ONI explore using any additional excess savings for the increased rental costs, and if not available, implementing a more modest increase for EPNO in package NI_04 and reallocating the rest to the rental costs. CBO Recommendation: ($85,667) | 0.00 FTE
Public Information Officer and Strategic Communications with the Bureau of Development Services Packages NI_03, NI_05 $226,304, 1.00 FTE At $181,304, ONI’s highest priority request for additional General Fund is for a Public Information Officer (PIO) position and associated materials and services to help the bureau prioritize its communication needs and develop consistent, coordinated messages that allow it to inform in advance, update in real-time, and report and document afterwards. The General Fund part of the request totals $167,684, with the remaining $13,620 funded by Cannabis program revenues. A related request is one-time funding of $45,000 to continue an interagency agreement with the Bureau of Development Services (BDS) to make use of its Communications Team. The bureau states that it needs a PIO who is equipped or trained in communications as a professional skill set and organizational function to help it implement a communications strategy. It has indicated that the bureau’s level of activity has outpaced dedicated capacity to provide updates through either static channels such as its website or via an integrated strategy involving social media. ONI believes that this lack of communication capacity has the potential to damage relationships and contribute to misinformation and distrust, especially about complex social and policy issues. It cites Council’s Fall 2017 charge to the bureau to convene the Welcoming/Inclusive/Sanctuary Cities (WIS) Task Force as an issue where the potential for misrepresentation, confusion, and community division can be quite large. For example, without clear and consistent communication with the City’s Congressional delegation, the lack of communications expertise can cause unnecessary confusion and political tensions as a result of delayed, incomplete, and inconsistent communication. Other examples ONI listed as projects the PIO would work on in the coming year include revising ONI Standards and rolling out the bureau’s rebranding. The bureau cites establishing long-term goals related to its strategic direction such as the roll- out of its new name and brand as a measure of the position’s impact, with an internal audit of the bureau’s communications needs and the development of a communications strategy and plan as the PIO’s first milestones. CBO does not recommend funding for the PIO in light of constrained General Fund
Office of Neighborhood Involvement 8 of 17 March 6, 2018 resources. CBO recommends that Council consider the additional workload requirements for convening the WIS task force and provide ONI with additional one-time funding during the Spring Supplemental of 2018 if funding is available and necessary. Concerning the interagency agreement with BDS for use of its Communications Team, the $45,000 request is slightly higher than the $43,338 amount the bureau received this fiscal year in the Fall Supplemental. ONI reports that usage of the IA this year has so far been minimal because BDS was still hiring for the Team as of the beginning of February 2018. Work by the Team for ONI has been limited to communications for the Cannabis program. Similar to the request for the PIO position, CBO is not recommending the additional funding for the IA with BDS because of limited General Fund resources. If spending on the FY 2017-18 IA is expected to remain minimal at year-end, ONI can request the funds to be carried over into FY 2018-19 to support this function. CBO Recommendation: $0 | 0.00 FTE
East Portland Neighborhood Office (EPNO) Packages NI_04, NI_07, NI_15 $201,538, 1.73 FTE Three of ONI’s packages pertain to the East Portland Neighborhood Office (EPNO). NI_04 is a realignment that does not require additional funding. General Fund resources of $44,388 are reallocated to change the EPNO Director’s position from 0.875 FTE to 1.00 FTE, while the Program Specialist is also being adjusted to a full FTE from 0.70 FTE. CBO recommends the realignment. ONI is also requesting $161,170 in additional ongoing resources to expand support for EPNO, adding 0.30 FTE to the Community Info & Outreach Representative to make it 1.0 FTE, adding a Program Specialist position, and $28,000 for a rent increase. The Program Specialist would focus on developing, implementing, and evaluating EPNO’s capacity building and community engagement programs and would also be responsible for developing and creating materials to conduct program outreach and promotional activities. The rent increase is occurring because EPNO is currently leasing a facility through the Portland Water Bureau for only $12 per year, and Water has notified ONI of the rent change. ONI is projecting EPNO’s space needs based on the current location and market rate rent it obtained from the study of the Crime Prevention move (see discussion on package NI_17 above). The $28,000 request is based on $10 per square foot, although EPNO is looking at locations which may cost up to $20 per square foot. Finally, ONI is requesting $40,368 for EPNO in one-time General Fund resources for small grants, community engagement and civic engagement projects, and communications support for community-led initiatives. ONI has indicated that it is requesting one-time funds instead of ongoing due to guidance from Council on
Office of Neighborhood Involvement 9 of 17 March 6, 2018 limiting requests for ongoing funds. The following graph shows how much each of the coalitions will be allocated in FY 2018-19 out of ONI’s base budget, divided by the population of each coalition. It shows that even with funding for the East Portland Action Plan included, East Portland continues to be one of the least resourced areas of the city. This long- standing inequity has been highlighted in the past by the Auditor and CBO.
FY 2018-19 Base Budget per Resident* by Neighborhood Coalition $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $- SouthwestNorthwest North Northeast Southeast Central East (no East (inc. Northeast EPAP) EPAP)
*2017 Population data provided by the Bureau of Planning and Sustainability However, CBO does not recommend additional funding for these packages, but instead recommends that funding parity for EPNO should be achieved from a reallocation of existing resources and not the addition of new funding. This approach would reduce resources available to other coalitions, but EPNO should not continue to be under-resourced compared to other neighborhood coalitions due to General Fund constraints. CBO Recommendation: $0 | 0.43 FTE
Advisory Boards & Commissions (ABC) Management Analyst NI_02, $154,510, 1.00 FTE ONI is requesting to add a Management Analyst position to implement Resolution 37328 concerning advisory boards and commissions ($70,668 in ongoing General Fund discretionary dollars and $83,842 in overhead funding). ONI has stated that the staff person currently running the Public Involvement Best Practices program does not have the capacity to take on this work. Furthermore, ONI notes that bureaus have long been asking for someone who can help support and coordinate the standardization of forms, processes, and training for the City’s 150-plus advisory boards. CBO does not recommend additional resources for the position due to the lack of available ongoing General Fund dollars. CBO recommends that ONI consider realigning existing priorities and resources to fund it. CBO Recommendation: $0 | 0.00 FTE
Office of Neighborhood Involvement 10 of 17 March 6, 2018 Public Safety, Emergency Preparedness, Community Resiliency Grants NI_06, $750,000 Since the original request was submitted by the ONI, the bureau’s Commissioner- in-Charge has requested that this package be removed from consideration. CBO Recommendation: $0
Accommodations Fund NI_13, $100,000 ONI received $100,000 of one-time funding in FY 2017-18 to make it easier for traditionally under-represented communities to participate in civic life, activities, events and meetings, including translation services, childcare, transportation, and ADA accessibility, and the bureau is requesting the same amount for FY 2018-19. As of January 2018, the bureau had spent about $38,000, with about 45% of that amount spent by ONI’s own programs, and 55% spent by the bureau’s community partners. The bureau is not aware of any Citywide ability to track other accommodation efforts such as childcare, bus passes, and other types of accommodations other than the one-time funding it and the Office of Equity and Human Rights have received in the past. Thus, the bureau has created two new performance measures to track this spending, one for its own programs and another for total spending by all City’s bureaus. ONI believes that when a program has to pay for accommodations out of its budget, this creates a disincentive to engage people who need disability-related, language/cultural-related, childcare, or transit accessibility supports to participate. The bureau also believes that this creates inequities in funding and administering programs that are targeted at marginalized groups. However, the City has a stated goal to engage all communities in its civic processes, and providing accommodations should be assumed in the structure and cost of these programs. CBO recommends that accommodations be considered part of outreach and engagement costs and that the bureau should prioritize resources to achieve equitable engagement outcomes. To the degree that overall outreach and engagement outcomes are not meeting targets, the bureau should request additional engagement resources. As with last year’s request, CBO does not recommend additional funding to ONI for accommodations, but instead recommends that accommodations be included as a normal part of all City outreach. CBO Recommendation: $0
Office of Neighborhood Involvement 11 of 17 March 6, 2018 One Time Continuation of Portland United Against Hate (PUAH) Position NI_10, $118,235, 1.00 FTE In FY 2017-18, Council provided $346,765 in one-time General Fund resources through Special Appropriations to provide grant funding to a network of culturally specific organizations to serve as central points of contact for the reporting of hate acts and hate speech. In addition, $118,235 was provided to ONI for a limited term position for various purposes, including: supporting development of program mission and a strategic plan; supporting program refinement and information sharing with related efforts elsewhere; collecting and evaluating data; and managing contracts related to the program. See Key Issues above for an update on the grant funding. ONI is requesting $118,235 in one-time resources again to continue the position for another year to support program functioning, manage grants through closeout, and report on outcomes. Achievements of the position in the current year include leading the coalition into a strategic planning process, launching of a communications system and production of an interest digest to keep the public updated about ways to engage in anti-hate activities and technical assistance to grantees. By year-end, the position’s accomplishments should include the initiation of a hate incident tracking mechanism, a public information campaign for hate incident tracking, and a clear rapid response system in place for hate incidents. CBO does not recommend full funding for the position for another whole year because the position started in November 2017 and hence there are at least four months of vacancy savings from the current year that can be carried over into FY 2018-19 to continue any necessary work. ONI states that due to how late the staff person was onboarded and how late the grant contracts were drafted, the administrative work around grants will still need to be completed after the final presentation to Council in January or February of 2019. While only four grants have been approved by Council as of the beginning of February of this year, 13 organizations are in various phases of work related to the project and have received notices of funding, accounting for all of the grant funding. All grants are reimbursements, meaning that billing to the City only occurs after portions or all of the contracted work is done. Because most of the grants have yet to be approved by Council for release, CBO believes that it is reasonable to assume that the position’s work would last until February 2019 and recommends funding for the position for four months, in addition to the funds carried over from the current year. Early in FY 2018-19, if indeed the bureau determines that even more funding is needed to cover the last third of the fiscal year, it can request the additional resources during the Fall Supplemental budget. CBO Recommendation: $39,052 | 0.33 FTE
Office of Neighborhood Involvement 12 of 17 March 6, 2018 Disability Program Equity Indicators Data Collection NI_11, $55,000 Because the local data on people with disabilities is either nonexistent, out-of- date, or not disaggregated, ONI is requesting $55,000 in one-time General Fund resources to partner with an outside entity to help gather better data, with an emphasis on indicators of equity and community/civic engagement for Portland’s disability community, disaggregated by race/ethnicity, gender, language, etc. Successful implementation would enable more accurate data and data-informed program development for all bureaus, including more effective outreach to disability communities. The estimate of $55,000 is based on ONI having worked with Portland State University on data collection projects and the efforts of Coalitions of Communities of Color in their work around researching previously unresearched communities. As the effort is creating baseline information that has not been collected before, it also means the building of systems to continue the capacity for data collection and management. However, the bureau anticipates having to request additional funds in future years to update the data, but that partnerships with other City bureaus may provide avenues for ensuring that the data remains accurate and useful. ONI also intends to share data with the Office of Equity and Human Rights’ Disability Equity Specialist to ensure that the data informs the City’s Disability Equity plans and other measures of tracking progress. As CBO supports the use of data to inform decision-making and program development across the City, and the project also advances the City’s equity goals, CBO recommends funding of this data collection. However, CBO also recommends that the bureau and Council develop a plan for updating the data without additional resources in the future. CBO Recommendation: $55,000
Front Desk Coverage – Office Support Specialist II NI_12, $65,066, 1.00 FTE ONI is requesting one-time General Fund resources of $42,974 plus $22,092 in Cannabis fee revenues for an Office Support Specialist (OSS) II position devoted to handle front office functions, including transactions for liquor licensing, noise control, cannabis licensing, and requests for information about City services. These have been provided by I&R staff temporarily, but ONI believes this is an inefficient solution because when an I&R specialist is working at the front desk, an I&R supervisor has to backfill the work of the specialist. As ONI intends to move the I&R team to the third floor of City Hall, that program would no longer be able to support the front desk function. Even though the need is ongoing, the bureau is requesting one-time resources because of guidance from Council to limit the requests for additional ongoing resources. Although ONI cannot provide a breakdown of the more than 6,000 community
Office of Neighborhood Involvement 13 of 17 March 6, 2018 members and business owners that come to ONI’s first floor office, it has provided data that may indicate that many, if not most, of these are for transactions related to the Livability (liquor licensing and noise control) program and its Cannabis program. Cannabis expenditures are fully funded by that program’s revenues, while the Livability programs are subsidized by the General Fund. However, at least in the prior year, liquor and noise revenues have exceeded budgeted amounts due to a robust economy, which may or may not continue into the near future. CBO recommends that ONI explore using liquor and noise revenues to pay for the OSS II, in addition to the Cannabis revenues already dedicated in the request, since the OSS II would be mostly handling transactions pertaining to those programs. However, the OSS II may not be needed once an online payment portal is developed to handle financial transaction (see below). FY 2016-17 Liquor Licensing and Noise Control Program* Revenues & Expenditures
$500,000 $250,000 $- Liquor Noise
Expenditures Prog. Revenues
FY 2016-17 Liquor Licenses & Noise Variances 6,000 4,000 2,000 - Liquor Licenses Noise Variances
*Non-General Fund CBO Recommendation: $0 | 0.00 FTE
ONI Database Work NI_16, $25,000 ONI requests $16,666 in one-time General Fund resources (and $8,334 in Cannabis fee revenues) to fund the development of an online payment portal for its Livability (liquor & noise control) and Cannabis programs, as well as the expansion/enhancement of a bureau database that also serves CNIC and Crime Prevention. The Bureau of Technology Services (BTS) has indicated that an online payment portal is roughly estimated to cost between $5,000 and $10,000 per program. As with the request above, CBO recommends the use of program revenues to
Office of Neighborhood Involvement 14 of 17 March 6, 2018 develop the portal, since the transactions to be handled by the portal are for those programs. ONI does not believe that the costs of developing an online payment portal should be included in a cost recovery model and passed on to the end customer, but CBO notes that the transactions will be paid for by liquor and cannabis businesses, as well as construction companies requesting noise variances. It is not unusual for government entities to charge additional fees for credit card transactions, so CBO recommends that ONI work together with the City Treasurer and BTS to explore the possibility of a service fee to recover the costs of developing the portal. Having an online payment portal will also mitigate the need for an OSS II to handle transactions at the front desk which ONI is requesting General Fund resources for in request NI_12. CBO Recommendation: $0
Information & Referral (I&R) Staff Re-allocation NI_08, $13,868, 0.10 FTE ONI is requesting an additional $3,171 in ongoing General Fund resources (and $3,763 in General Fund Overhead), along with $6,934 from Multnomah County to add 0.10 FTE to the I&R program. The request also transfers 0.15 FTE from CNIC to I&R. According to ONI, staffing expansions and reconfigurations have led to the need for this request, including the addition of two positions for Cannabis and the need to house all Cannabis staff together, the colocation of CNIC staff with Crime Prevention staff, and the movement of I&R staff to the third floor of City Hall. CBO does not recommend any additional General Fund resources for I&R because the bureau expects call volume to decrease, although it has noted that the complexity of calls is expected to increase. Additionally, the City is currently exploring a comprehensive 3-1-1 system, with the project aiming to integrate a core set of information, referral, and resolution services across select in-person, phone, and virtual customer interfaces. Thus, CBO believes that additional resources would be premature as the I&R program may change significantly in the near future and recommends that the City wait to see what recommendations may be developed before devoting additional resources to I&R. CBO Recommendation: $0 | 0.00 FTE
Office of Neighborhood Involvement 15 of 17 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of ONI’s base budget. About 70% of Charges for Services are Cannabis program fees, with the rest coming from Liquor licenses and the Noise program. The $302,500 in Intergovernmental Revenues are from Multnomah County for the I&R program. ONI also receives Overhead funding for that program, as well as for Public Involvement and a Mental Health Specialist. On the expenditures side, the bureau’s personal services budget funds 56.3 FTEs. About $3.3 million, or 81% of ONI’s external materials and services budget are grants to outside organizations such as the DCL partners, Elders in Action, the East Portland Action Plan, etc.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Charges for Services $ 1,322,042 $ 1,522,548 $ 44,046 $ (44,046) $ 1,522,548 Intergovernmental Revenues 300,807 302,500 6,934 (6,934) $ 302,500 Interagency Revenue 18,461 18,661 - - $ 18,661 Fund Transfers - Revenue 250,000 - - - $ - General Fund Discretionary 9,242,866 8,473,973 1,251,200 (1,242,815) $ 8,482,358 General Fund Overhead 297,593 302,512 87,605 (87,605) $ 302,512 Total Resources $11,431,769 $10,620,194 $1,389,785 ($1,381,400) $10,628,579
Requirements Personnel Services $ 5,842,431 $ 5,767,738 $ 511,472 $ (431,624) $ 5,847,586 External Materials and Services 4,680,247 4,034,079 808,033 (880,201) $ 3,961,911 Internal Materials and Services 909,091 818,377 70,280 (69,575) $ 819,082 Total Requirements $11,431,769 $10,620,194 $1,389,785 ($1,381,400) $10,628,579
Office of Neighborhood Involvement 16 of 17 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Office of Neighborhood Involvement Adds
NI_03 - Public Information Officer 01 1.00 167,684 0 13,620 181,304 0.00 0 0 0 0 NI_07 - Ongoing Program support for EPNO 02 1.30 161,170 0 0 161,170 0.00 0 0 0 0 NI_15 - EPNO Program expansion 03 0.00 0 40,368 0 40,368 0.00 0 0 0 0 NI_02 - ABC Management Analyst 04 1.00 70,668 0 83,842 154,510 0.00 0 0 0 0 NI_06 - Public Safety, Emergency Preparedness, Com 05 0.00 0 750,000 0 750,000 0.00 0 0 0 0 NI_13 - ONI - Accomodations Fund 06 0.00 0 100,000 0 100,000 0.00 0 0 0 0 NI_10 - One time continuation of PUAH position 07 1.00 0 118,235 0 118,235 0.33 0 39,052 0 39,052 NI_11 - Disability Program Equity Indicators Data Colle 08 0.00 0 55,000 0 55,000 0.00 0 55,000 0 55,000 NI_12 - Front Desk Coverage - OSSII 09 1.00 0 42,974 22,092 65,066 0.00 0 0 0 0 NI_09 - Bridge funding for Elders in action 10 0.00 0 80,000 0 80,000 0.00 0 80,000 0 80,000 NI_18 - Disability PDX Leadership Program 11 0.00 20,000 0 0 20,000 0.00 0 0 0 0 NI_05 - Strategic Communications w/BDS 12 0.00 0 45,000 0 45,000 0.00 0 0 0 0 NI_16 - ONI Database work 13 0.00 0 16,666 8,334 25,000 0.00 0 0 0 0 NI_08 - I&R staff re-allocation 14 0.10 3,171 0 10,697 13,868 0.00 0 0 0 0 NI_17 - Rent increase for HUB office 15 0.00 18,700 0 0 18,700 0.00 0 0 0 0 Total Adds 5.40 441,393 1,248,243 138,585 1,828,221 0.33 0 174,052 0 174,052 Reductions
NI_01 - 5% required cut - Elder Services & Graffiti 01 (1.00) (438,436) 0 0 (438,436) 0.00 (165,667) 0 0 (165,667) Total Reductions (1.00) (438,436) 0 0 (438,436) 0.00 (165,667) 0 0 (165,667) Realignments
NI_04 - EPNO Positions change to full-time 01 0.43 0 0 0 0 0.43 0 0 0 0 Total Realignments 0.43 0 0 0 0 0.43 0 0 0 0
Total Office of Neighborhood Involvement 4.83 2,957 1,248,243 138,585 1,389,785 0.76 (165,667) 174,052 0 8,385
Office of Neighborhood Involvement 17 of 17 March 6, 2018
Budget Review | Fiscal Year 2018-19 Portland Parks & Recreation
Analysis by Ryan Kinsella and Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $350.0 M $300.6 $271.1 $300.0 M
$250.0 M $213.0 $175.4 $200.0 M $141.5 $130.2 $150.0 M
$100.0 M
$50.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
458 FTE 485 FTE 598 FTE 626 FTE 611 FTE 617.8 FTE
INTRODUCTION Portland Parks & Recreation (Parks) is proposing revenue offsets, closing community centers, shifting the costs of decorative fountains to the Water Bureau, and other administrative reductions to meet the required cut target of 5% ($3.3 million total). CBO is recommending funding for the operations and maintenance of new parks, major maintenance needs, and addressing the issue of perception of safety, while also critically analyzing whether proposed revenue increases will significantly impact core offerings and adversely impact underserved communities. CBO does not recommend, due to resource constraints, funding for a central scholarship program and ongoing subsidy for the preschool program.
Portland Parks & Recreation 1 March 6, 2018 KEY ISSUES The challenges facing Portland Parks & Recreation that were discussed in last year’s CBO review remain. Deterioration of assets threatens the usability of the parks system for future users. Meanwhile the continued collection of large amounts of system development charges (SDCs) allows for substantial expansion without dedicated resources to fund operation and maintenance costs. The City Budget Office (CBO) also highlights two emerging issues: the perceived safety of park users, particularly in light of City’s homelessness challenges, and continued pressure to offset General Fund reductions with fee increases. The bureau is acutely aware of these issues and informs both current planning processes and the bureau’s budget requests. Over the next few years, several planning processes currently in place will be critical for defining Parks’ core services and for mapping sustainable service levels. These efforts include a revised cost-recovery plan, a long-term financial plan, a level of service plan, and an update to capital design specifications. Council’s direction in response to these planning processes will be critical for setting the bureau on a course that is not only fiscally sustainable, but one that ensures that future generations enjoy the same gold medal park system as today’s Portlanders. The FY 2018-19 budget requests – both proposed reductions and additions – are consistent with prior year budget decisions. This chart highlights several key factors on how Parks’ budget has changed over the past five years:
▪ In recent years, Parks has been able to avoid making significant reductions to services to meet cut targets. During the recession, when cuts were greatest, Parks made cuts with service changes, including reductions to park maintenance and community center staffing. In recent years, rather than service reductions, Parks has proposed – and Council accepted – cutting the bureau’s General Fund allocation by cutting administration, increasing fee
Portland Parks & Recreation 2 March 6, 2018 revenues for various programs, and decreasing pass-through funding ($2.0 million net reduction in General Fund resources).
▪ Changes to service in recent years have included the funding of the Teen Program in FY 2015-16 and increases of the Ranger Program ($3.1 million net increase).
▪ Additional General Fund resources have primarily been used for operations and maintenance costs of new parks and Labor costs. The Arbitration Settlement with Local 483 converted 101.25 seasonal FTE into permanent positions. Beginning in FY 2018-19, Parks will receive $800,000 in General Fund discretionary to cover the increased wages of Recreation Support Staff ($3.2 million increase for operations and maintenance costs, and $4.2 million in increased labor costs, outside of regular cost-of-living increases, PERS costs).
▪ Over this period, Parks has received $8.0 million in one-time funding for major maintenance (not shown in graph); however, Parks’ ongoing General Fund major maintenance funding remains at $1.7 million.
To summarize: Parks budget has increased primarily due to increased labor costs and funding for operations and maintenance, while reductions have been offset by revenue increases – a strategy which will not be fiscally sustainable over the long- term and will eventually impact access to services. Parks is currently engaged in an update to its cost-recovery practices and policies. Cost-recovery policies are a central component of the bureaus ability to meet long- term financial sustainability goals. The updated cost recovery policy will address the tradeoffs Parks faces in improving equitable access to services while still meeting financial sustainability targets. System Development Charge Resources: Opportunities and Liabilities Due to the economic recovery over the past four 90% Percentage of Households served years, the bureau has experienced a steady 85% by a Park increase in System Development Charge (SDC) revenues. In FY 2016-17, SDC revenues exceeded 80% the revised budget of $22.6 million by $11.0 75% million (for a total of $33.6 million), primarily 1% expected driven by the collection of residential SDCs. This 70% increase
marks the largest SDC revenue growth following 65% the economic recovery and continues a trend over the past three years, during which SDC 60% revenues have exceed $20.0 million per year. Over the next five years, the bureau plans to allocate $71.8 million of the
Portland Parks & Recreation 3 March 6, 2018 unallocated balance and forecasted revenues in order to fund the development of new parks and facilities. Of this total, $13.8 million will be allocated for property acquisition, leaving $55.7 million that has no planned or allocated project. A strategy the bureau is using to spend these revenues is to expand current projects. For example, the bureau recently decided to increase the scope of the Leach Garden project from an original cost of $2.15 million to $9.9 million including $1.25 million in donations).1 SDC-funded projects are intended to add capacity to the park system by acquiring property, developing new parks to meet service level gaps, and expanding park capacity at currently developed parks. As a result of the forecasted SDC investment, an estimated 1% or 2,661 additional households will be within ½ mile of a park or natural area by 2020 (increasing from 80.6% to 81.6%) in addition to increasing capacity and some current parks. Park development will primarily occur in areas of the city that are least served; for example, access in East Portland is expected to increase by 2% as a result of the SDC-funded development. This cohort of new assets requires both operations and maintenance (O&M) costs but will also have major maintenance needs. The projected investment of $141.3 million in new assets will increase the total estimated value of the Parks system by 10% (totalling $1.59 billion in 2023). Based on the current plan, an additional $3.2 in ongoing General Fund resources will be required over the next five years to adequately fund the operations and maintenance --- an increase of $1.8 million from last year’s estimates due to the significant increase in SDC revenues. In addition, funding for the annualized major maintenance and replacement is estimated to be at least $500,000. To limit the ongoing costs of new parks, the following options should be considered: ▪ Design parks and community centers to minimize O&M and major maintenance costs. This may also include building assets with sustainable landscapes or assets that provide services with cost recovery, such as community centers or public-private partnerships. The bureau should continue to consider this strategy.
▪ Allocate an amount of General Fund available for O&M over the next five years. Council could then direct that Parks be designed to meet funding constraints.
▪ Decrease the scale of the SDC capital plan, thereby lessening the O&M needed to fund new projects. This strategy could be accomplished by either delaying projects and/or decreasing the amount of SDC’s collected via a reduction in fees. Fewer parks and community centers would be available
1 Previously the bureau received $157,000 for the operations and maintenance costs of Leach Garden beginning in FY 2017-18; expanded operations and maintenance costs of this project have not been requested
Portland Parks & Recreation 4 March 6, 2018 as the population increases, shifting capacity onto current assets. This would result in reduced service levels, limited expansion of parks in underserved neighborhoods, potentially increased O&M needs at current parks, and increased number and frequency of major maintenance projects.
SDCs continue to provide both an opportunity and a liability. With access to recreation centers and parks being proportionally less in East Portland, SDC resources provide an opportunity to build assets that will serve a greater portion of Portlanders and also positively impacting the City’s equity goals. However, the expansion of parks services will necessarily require the reprioritization of resources internally or rebalance the overall allocation of General Fund resources away from other City priorities, such as public safety and housing, in order to fund the operations and maintenance of new park facilities. The City must take into account the negative impact of investing less in these other services relative to parks investments – along with the equity impact this may have on specific communities – when making decisions about expanding Parks’ services.
Portland Parks & Recreation 5 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
$33,145,000 General Fund General Fund Ongoing One-Time Other Revenues
$1,096,000 $868,239 $200,000
Bureau requested $(295,097) CBO recommends
$1,468,223 Bureau requested $4,179,365 $800,000 CBO recommends $511,783 $270,000 $(2,625,603) $(3,266,188) General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
3.0 FTE (9.75) FTE 10.0 FTE Requested (23.5) FTE Requested Recommended Recommended
Preserving Assets for Future Park Users Even with the recent approval of the $68.0 million Parks Replacement Bond and the $1.8 million annual major maintenance appropriation, Parks faces a significant gap in major maintenance funding. To sustain the current condition of all assets, which is estimated at approximately 50% in fair or better condition, an additional $10 to $15 million dollars per year would be needed. Given the limited resources and the vast infrastructure needs of the City, it is incumbent upon the bureau to develop a major maintenance and replacement funding plan and adopt sustainable service levels with the explicit goal of operating and maintaining a park system that can be maintained indefinitely within the resources allocated. The principal strategy is clear: increase resources and/or decrease service levels until future park users can anticipate the same level of service as current park users. No single option will solve this steep challenge. Rather, multiple funding strategies will be needed, including (1) regular, periodic General Obligation Bonds (e.g. 2014 Replacement Bond), (2) divestment of assets, (3) regular increases in the ongoing General Fund major maintenance allocation until it meets the regularly scheduled needs of the assets, and lastly, (4) periodic one-time General Fund resources, such as capital set-aside and Build Portland funds, for large replacement projects. The chart illustrates how these strategies could close the bureau’s major maintenance
Portland Parks & Recreation 6 March 6, 2018 gap at various investment levels. With an estimated additional $5 million per year, Parks could avoid an accelerated deterioration rate of their assets. An additional $10 to $15 million per year would maintain the current condition of assets. A much more greater annual investment would be needed to address service and capacity gaps, including ADA improvements.
Increase Ongoing Major Maintenance Funding PK_25, $625,000, 0.00 FTE, PK_36, $500,000, 0.00 FTE, PK_39, $300,000, 0.00 FTE In FY 2018-19, Parks has requested additional ongoing funding of $625,000 for the major maintenance fund. This is strongly recommended by CBO; however, due to limited availability new resources, CBO recommends $450,000 in ongoing funding. In addition, CBO recommends regular increases of $500,000 to $1.0 million per year for Parks’ major maintenance needs, funded either within current resources or with new General Fund discretionary, until reaching a level that provides a financially sustainable asset management plan where resources are used efficiently to maintain the assets most critical to Parks’ core offerings. To this end, CBO recommends a budget note that directs the increase of Parks’ Current Appropriation Level target to its Capital Improvement Program Fund by $500,000 per year over the next five years. Funding for these appropriation levels will need to be identified in each budget process and could potentially result from a realignment of Parks operating resources. Within the first year of funding, CBO recommends that two of the bureau’s related one-time requests be funded with these resources: the demolition and removal of hazardous structures (PK_39) and a portion of the estimated costs for a seismic needs assessment (PK_36). Divestiture: Continued Evaluation and Prioritization
Portland Parks & Recreation 7 March 6, 2018 Parks and the Commissioner’s Office are currently creating a disposition policy, the aim of which will be to reduce major maintenance liability on underutilized assets and reduce the number of properties that do not serve system needs. This work will be done within the context of the long-term sustainability of the bureau and shared with Council along with the financial plan and updated cost recovery policy. Currently, a list of candidate properties and assets are being identified for the near-term disposition in addition to candidates for more in-depth evaluation. This list of potential divestitures would avoid $13.0 million in near-term major maintenance costs. Some of the properties may have market value, yielding sale proceeds, which would help to offset demolition and removal costs for dispositions, which are roughly estimated at $25 to $50 per square foot. This divestiture strategy is exemplified in two of Parks’ requests, both of which are recommended by CBO (PK_39 and PK_09). In addition, Parks has also proposed the closure of four community centers, all of which have major maintenance needs (PK_14, PK_16, and PK_17). Closing these centers would assist Periodic One-Time Funding: Capital Set-Aside and Build Portland Resources PK_24, $29,800,000, 0.00 FTE Since FY 2011-12, Parks has received $8.0 million in one-time funding for major maintenance. Serial one-time investments are unpredictable and lead to an asset management approach where assets on the verge of failure are funded first while preventive work that reduces long term costs goes unfunded. While these sources are effectively used to address pressing needs, this funding approach to asset management is not most cost efficient. In the current year, Parks requested $29.8 million in General Fund one-time resources from the capital set-aside to fund 17 major maintenance projects. Of the $29.8 million requested, CBO recommends $3.7 million. This includes funding of $500,000 for the Washington Park stairs, the bureau’s highest ranked project by the validation committee (6th of 36 projects). This project will improve the staircase from the parking lot on Burnside Ave. to Washington Park. Due to potential life and safety risks, the very poor condition, and large number of visitors to the park, this was Parks’ highest ranked project on the capital set-aside list. In addition, CBO recommends funding of $3,242,511 towards the repair and replacement Forest Park culverts, which ranked 7th on the list of capital set-aside projects. Addressing these issues will help to maintain access to trails throughout Forest Park while also avoiding potential environmental damages due to blown culverts and landslides within the park. In addition to these capital set-aside resources, $1.1 million in sale proceeds from Tabor Annex was allocated to Parks’ capital fund with the explicit intent that it would be used for the FEMA match of the December 2016 storm, a large portion of which was culvert repair totaling approximately $5.0 million. (Parks has decided
Portland Parks & Recreation 8 March 6, 2018 to use $400,000 of this funding for the maintenance facility in Gabriel, thus significantly lessoning the FEMA match for storm repairs.) The Bureau of Environmental Services (BES) has committed an additional $800,000 for culvert repair. In total, Parks stands to invest over $10 million in culvert repair over the next few years. CBO also highlights several other key projects included in Parks’ capital set-aside requests, but were not funded due to the limited availability of one-time resources: ▪ ADA Improvements. Parks, along with other bureaus and most notably PBOT, face significant costs related to ADA improvements. These improvements are not only needed to equitably improve services, but have legal risk with noncompliance. Parks’ long-term financial plan should include a funding strategy to address these ADA needs.
▪ Peninsula Park Community Center roof. Roof repairs are costly but result in other more costly major maintenance issues if not addressed. Peninsula Park Community Center serves a proportionally more diverse population and provides a variety of programming services. CBO notes this project as a critical next need for the bureau.
CBO Recommendation: $4,242,511 | 0.00 FTE
Revenue Offsets: Increasing External Revenues PK_02, ($400,000), 0.00 FTE, PK_03, ($100,000), $150,000, 0.00 FTE, PK_04, ($200,000), $100,000, 0.00 FTE, PK_05, ($90,000), 0.00 FTE, PK_06, ($193,500), 0.00 FTE, PK_33 $770,000, 3.00 FTE Parks is currently engaging in a process to update its cost recovery policy that will set service level goals for Parks’ revenue generating services. Setting explicit total and direct cost-recovery targets will facilitate improved decision-making and increase the transparency of Parks’ service delivery costs. In FY 2018-19, Parks submitted five revenue generating packages. Cost recovery packages include charging higher fees to recover more of the cost of staff time, site inspections, equipment, maintenance and rental use. Recover Costs for Emergency Tree Removal The Urban Forestry division provides 24/7 emergency response to clear tree failures in rights-of-way citywide. This package proposes a $400,000 ongoing reduction in General Fund resources by charging fees for emergency tree removal at PBOT, ODOT and Tri-Met sites. Between the three agencies, tree removal services would be split proportionally to the number of emergency incidents on right-of-way managed by each agency. The bureau notes that the vast majority of emergency tree response occurs on PBOT managed right-of-way.
Portland Parks & Recreation 9 March 6, 2018 CBO recommends drafting agreements with these agencies with the cost of service in mind. Parks has an existing interagency agreement for tree services with PBOT that does not include tree removal. Parks does not have a formal, intergovernmental agreement with Tri-Met, so a coordinated process between the agencies would need to be established. An existing agreement between ODOT and Parks would have to be updated to include emergency tree removal services and approved by Council. Parks estimates that establishing agreements with ODOT and Tri-Met would take a minimum of six months, but in time for next year’s storm season. CBO recommends updating existing agreements to include these costs and formalizing agreements between ODOT and Tri-Met to achieve greater cost recovery. This package will move Urban Forestry closer to full cost recovery; CBO recommends this General Fund reduction and offsetting fee increases. Strategic Parking Assessment & Revenue Study Parks implemented a “pay to park” system at Washington Park in January of 2014 after a 2012 parking feasibility study proposed a comprehensive paid parking access program specifically designed for Washington Park. Revenues from parking fees (about $2.7 million dollars per year), solely support improvements in and around Washington Park as well as incentivizing reduced driving trips in a parking constrained environment. Following the effectiveness of this program, Parks is proposing implementing parking fees in other locations to generate revenues to facilitate maintenance and improvements in other locations. The package proposes funding a strategic parking assessment that would first identify sites with a large number of cars or boat trailers, estimate the potential revenues revenue generated, and then determine the most effective use of revenue to maintain each site. Given that parking rates are released in January, this proposal requests one-time resources of $100,000 to support a parking assessment consultant and fill an expected revenue gap during FY 2018-19 while the revenue study is underway. CBO notes that there are concerns about the equity impacts as ‘pay-to-park’ could preclude some residents from accessing Park services, and that these factors should be considered as part of the assessment. CBO recommends this reduction in ongoing General Fund resources and the requested one-time General Fund as the proposal is in line with FY 2018-19 budget guidance and does not impact level of service provision. Cost Recovery for Private Use of Parks Facilities The package reduces Parks’ General Fund resources by $200,000 which is offset by increasing fees for private use permits and requests $100,000 in bridge funding.2
2 The new fees would go into effect January of 2019 and allow increased revenues for the remainder of the fiscal year, the bridge funding is to address the gap between July and January.
Portland Parks & Recreation 10 March 6, 2018 Private uses of Parks facilities: community gardens, Waterfront Park rentals, stadium field rentals, film permits, and picnic site rentals. Parks has identified a price increase for each category of private use: ▪ Community Gardens Demand Pricing, $8,000. This change reduces General Fund subsidy from 59% to 43% at nine of the 53 community gardens Parks currently operates. This will impact 475 gardeners.3 ▪ Waterfront Park rentals, $15,500. This change would result in a 57% increase in annual total fees, from $27,110 to $42,610. The increased costs will cover irrigation repairs and irrigation well maintenance. ▪ Stadium field rentals, $75,000. Stadiums (Walker, Delta, Erv Lind, Skavone) are only used by renters and not by the general public for park recreation. ▪ Permit fees for Film Permits, $49,000. Current permit fees cover 0% of staff time needed to review permits and to provide necessary site inspections conducted during and after the rental use. ▪ Picnic Site Rental Fees, $82,500: General Fund resources currently subsidize inspection and cleaning services. Permit fees for private uses of Parks’ facilities should aim for full cost recovery without adversely impacting access to services, especially in consideration of the City’s equity goals. The proposed fee increases generate partial cost recovery so as not to create a barrier for service users. Although the majority of private users are commercial patrons, private and special use permittees can overlap. As such, CBO cautions raising fees to the extent that services become inaccessible in an inequitable manner. CBO recommends this revenue-generating package as requested. Increase Fees for Special Use Permits This proposal decreases Parks’ General Fund discretionary resource by $90,000 by increasing fees for special use permits above the average annual 3%-5% increase. Special use permit fees are charged to support private use of sports fields, picnic shelters, and other park facilities. Cost recovery for Special Use permits vary by fee category, the 2016 recovery rates for special use permits were: 40% for weddings, 43% for picnics, 72% for special events, and 133% for the ‘other’ uses. In general, special use permit fees increase each year, staying in line with cost of living adjustments. Since fee increases occur in January each year this fee increase will produce General Fund savings for half of fiscal year 2018-19. This proposal increases revenues and brings the permitting department closer to
3 The gardens are in these neighborhoods: Buckman, Kerns, Sunnyside, Hosford-Abernathy, Grant Park, Mt. Tabor & Sellwood.
Portland Parks & Recreation 11 March 6, 2018 direct cost recovery which is in accord with FY 2018-19 stated budget priorities. To that end, CBO recommends increasing fees for special use permits to reduce the General Fund subsidy. Utility Cost Shift Currently, Parks pays the utility costs for Pittock Mansion, the Children’s Museum, and Pioneer Courthouse Square in varying degrees. This reduction package transfers the responsibility for utilities costs to the organizations that manage these properties. Parks estimates that shifting utility costs would generate an ongoing reduction of their General Fund resources by $193,500. Parks is currently renegotiating its agreement with Pittock Mansion, a partnership that has been in place since the property was donated to the City in 1997. Based on the average cost of utilities over the past three fiscal years, shifting costs for utility usage back to Pittock Mansion creates a corresponding budget reduction of $43,500. If this cost is passed onto paying visitors, a 50-cent increase to entry-fees would be required. The Children’s Museum has a generous 30-year lease agreement that includes a one-time rental payment of $10, City-funded utilities, and a five-year program subsidy of $517,000. In 2011, this agreement was updated to cap the level of subsidy Parks pays for the Children’s Museum’s utilities. Although the 30-year agreement does not expire until 2031, Parks recommends shifting roughly $120,000 in utility costs to the Museum. Finally, Parks estimates that the bulk of the $30,000 in utility costs it pays for Pioneer Courthouse Square are due to the water usage of an onsite Starbucks. There is no agreement in place for Parks to shift utility costs to Pioneer Courthouse Square. Whether these organizations will absorb these costs or pass the costs onto customers has not been determined. CBO recommends that Parks continue to work towards full cost-recovery of its leases, including utility and major maintenance costs. To the degree that the City intends to subsidize partner organizations, these decisions should be made intentionally and in consideration of how the subsidy impacts other core programming and complements its long- term strategic service goals. CBO recommends shifting utility costs to partner organizations as providing these subsidies is a noncore activity. Fee Increases – Enhanced Tree Permitting Service This package is intended to expedite development permitting and increase service levels following the direction from the Mayor after the April 2017 GATR session on improving permitting timelines.4 Parks is proposing increasing fees for development permits to create a General Fund offset of $770,000 and support
4 https://www.portlandoregon.gov/cbo/72474
Portland Parks & Recreation 12 March 6, 2018 nine FTE. This package expands the Urban Forestry Street Trees (UF) program through an Development Review Fees increase in development permit fees, which apply to 2016 2017 2018 permits required for property $500 development activities. $400 $300 Development fee cost $200 recovery is expected to $100 $- increase from the current rate Residential Residential Residential Commercial Commercial Commercial of 44% to approximately 84%, Remodel > Construction Construction Remodel ≥ Construction Construction which the bureau states would $25k ≤ $100k > $100k $25k ≤ $1M > $1M valuation valuation valuation valuation valuation valuation bring development fee cost recovery in line with other bureaus like BES, BDS and PBOT. Non-development permit fees will remain at the current, 13% cost recovery. The proposed changes would increase permit fees by $100-$250, depending on permit type. For example, a permit for Residential Construction valued over $100,000 will increase from $220 to $400. The bureau states that these revenues will allow Urban Forestry realign its organizational structure, enforce the Tree Code and improve service provision. While Urban Forestry’s response time goal is to respond to an initial permit applicant within two weeks, in FY 2016-17 permit response time ranged from four to five weeks At the same time, development permit volume increased from 1,461 to 2,216 in 2017. In its 2015 Tree Planting Compliance study, compliance rates were 63% for trees in development. Further, UF is currently not staffed to conduct compliance checks on street trees in development situations. The requested positions will allow UF to reduce response times and begin conducting compliance checks on street trees. To that end, this package requests nine full-time positions including: three tree inspectors, four arborists, a lead tree tech and administrative support. These positions will be fully funded by rates and completely dependent on development permit revenues. If revenues were to decrease, the bureau states that it would reduce expenditures or increase fees to reach revenue targets. In FY 2017-18, the General Fund subsidy for the permitting portion of the UF program was $1,974,708 or 32%.5 This request will not reduce the programs General Fund subsidy or bring it to full cost recovery, it aims to increase the compliance and effectiveness of the Tree Code. CBO recommends this package and position authority for three FTE to implement Council direction and expedite development permitting, as requested.
5 This includes development and non-development permitting, TRACS, customer service for all permit inquiries, inter-bureau requirements, emergency response, and tree permit policy and code development assistance.
Portland Parks & Recreation 13 March 6, 2018 CBO Recommendation: ($483,500), $200,000 | 3.00 FTE
Impact of Homelessness on Parks and Perceptions of Safety PK_32 $750,000, 6.00 FTE, PK_34, $98,000, 0.00 FTE, PK_40, $136,854, 0.00 FTE, PK_20, ($88,000), 0.00 FTE As part of the FY 2018-19 requested budget, the bureau has requested $450,000 in ongoing resources and $500,000 in one-time resources to address issues of homelessness, primarily directed to issues along the waterfront: Vera Katz Eastbank Esplanade Maintenance Reboot, Hazardous and Abandoned Boat Enforcement, Maintain Campsite Cleanup at PP&R Properties. Concerns about safety in parks seem to be increasing, a notion supported by several performance indicators. Specifically, the Auditor’s Community Survey previously asked residents about their perceived safety of parks during the day and at night. Over the past five years, until the recent discontinuation of the survey, perceptions of safety remained relatively unchanged; however, 2016 data highlighted two key issues. First, perception of safety decreased by 5% during the day and 2% at night as compared to the prior year. Second, perceptions of safety greatly differed in East Portland as compared to the rest of the city. A recent bureau survey asked residents about barriers to participation and “concerns for safety” was the second highest rated barrier identified as the key barrier by 30% of citywide respondents. Similarly, the number of calls for Parks Ranger services has increased from 2,201 in 2015 to 3,533 in 2017. The proportion of calls related to drugs/alcohol, property issues, and safety issues to total calls remained level or decreased in the past three years, but the proportion of calls for camping related issues in parks has increased by 14% from 40% of all calls to 53% of calls in 2017. Addressing issues of parks safety can be mitigated through a variety of policy mechanisms (e.g., increased police presence, changes to park design), but CBO notes that the Park Ranger program has increased considerably over the past ten years, a primary task of which is cultivating a sense of safety in parks. The Ranger program has experienced large personnel increases, notably a 50% increase in FTE between FY 13-14 and FY 17-18. Moving forward, the bureau and City will need to evaluate which policy tools most effectively and efficiently address these issues. Hazardous and Abandoned Boat Enforcement This package would increase ongoing General Fund discretionary resources by $68,000 to fund an agreement for patrol services by the Multnomah County Sheriff’s Department along the docks at Riverplace marina in addition to docks owned by Parks. The Riverplace Business Association will donate $30,000 to offset costs in the first year, reducing the amount of General Fund need in FY 2018-19. Council previously approved the agreement with the Multnomah County Sherriff’s Office in December 2014 (Ordinance 186921), which included funding $50,000 for
Portland Parks & Recreation 14 March 6, 2018 costs associated with towing and storage of abandoned and derelict vessels, and $48,000 for 600 hours of service. In FY 2015-16, costs of the agreement were $112,500, exceeding the budgeted amounts, which provided 1,200-1,300 hours of sheriff services for 200—225 incidents, averaging 5-6 hours per incident. Ranger Program incident data for adjacent parks does not specify whether the issue was dock related, making it challenging to determine the actual demand for service. Due to the limitation of ongoing resources, CBO does not recommend funding this request. As an alternative, Council could direct the bureau to reallocate funding within the Ranger Program budget to fund the cost of the agreement. Maintain Campsite Cleanup at PP&R Properties This package would increase the bureau’s ongoing General Fund resources by $136,854 to fund an interagency agreement with OMF for bureau-requested cleanup services at Parks properties impacted by camping and homelessness. Parks previously received $247,410 in FY 2017-18 for its portion of costs, however, Parks’ costs for the program have increased substantially as a result of the bureau being allocated a greater proportion of costs relative to other bureaus. CBO recommends one-time funding to continue this service into FY 2018-19. For a full discussion of this issue, please see CBO’s recommendation for MF_53 Funding for Immediate Response Clean-ups. Vera Katz Eastbank Esplanade Maintenance Reboot Parks requests $500,000 in one-time General Fund discretionary resources to fund four positions to maintain and improve conditions at the Vera Katz Eastbank Esplanade, including replacement of existing lighting with vandal resistant fixtures and other restoration and mitigation measures. Additionally, the request includes $250,000 in ongoing resources to support two additional Rangers to patrol the area, improve safety conditions, and reduce camping. CBO is not recommending funding for this package, but recommends that Council consider this request within the broader spectrum of campsite cleanups and maintenance resource allocation. Reduce Frequency of Downtown Restroom Cleaning This package would reduce funding for the regular cleaning of eleven public restrooms in the downtown core from twice per day to once per day. Parks manages three other downtown restrooms at Director Park, The Fields Park, and Wallace Park, which would retain their regular cleaning schedules regardless of this cut. Other publicly-accessible downtown restrooms include those located in public buildings, such as City Hall and the Portland State University building in addition to restrooms in Union State, Bud Clark Commons, and the Portland Rescue Mission. Alternative service reductions to the restrooms were considered, including peak season and peak day cleaning in addition to concentrating cleaning services to
Portland Parks & Recreation 15 March 6, 2018 fewer restrooms. The bureau proposed this reduction option as it is expected to have the least harmful impact on the homeless population. By directing the restroom needs of the homeless population to certain facilities and by focusing clean-up services to the highest used parks and restrooms, CBO believes that this reduction could be taken without significantly impacting downtown Park users, including the homeless community. CBO recommends this reduction in order to realign these savings to other City needs. CBO Recommendation: $48,854 | 0.00 FTE
Community Center Closures PK_14, ($75,415), (1.00) FTE, PK_16, ($582,182), (6.75) FTE, PK_17, ($477,943), (4.75) FTE Parks has proposed the reduction of Woodstock, Sellwood, Fulton and Hillside Community Centers to meet the 5% cut requirement. Assessing the specific service impacts of closures and the degree to which these closures could be mitigated by nearby private/nonprofit or Parks offerings are key considerations. Moreover, the total percentage of persons of color and percentage of persons experiencing poverty is less than the city average in these service areas, suggesting that the closures would not disproportionally impact historically underrepresented communities. However, the bureau does not collect demographic information on all unique participants (race/ethnicity, age) or income information, and so specific impacts on persons of color and lower income visitors are unknown. Persons with disabilities live throughout the community and would be affected by these closures. In addition, CBO notes that these centers have major maintenance requirements over the next five years which would need to be addressed if they are to remain open over the long-term. Closing these centers would avoid these future costs; keeping the centers open assumes that there will be sufficient resources to fund the major maintenance costs over the long-term6. Lastly, CBO notes that this reduction exemplifies the continual need to assess the asset and service delivery portfolio and realign effort to achieve a sustainable system over the long-term. Sellwood Community Center. Sellwood Community Center is primarily used for preschool and afterschool programming in addition to various dance, art, and fitness classes. Other out-of-school programs are provided at Sellwood, including summer camps, break camps, and late start coverage. The number of unique users to center in FY 2016-17 was estimated to be 1,339, resulting in an average annual subsidy of $150/visitor. An estimated additional savings of $61,500 in maintenance costs, $12,000 in utility costs and $231,000 in administrative support costs would
6 Estimated major maintenance costs over the next five years for all centers is $6.0 million, and total lifecycle costs for each center are estimated to be $10.0 million.
Portland Parks & Recreation 16 March 6, 2018 be realized if the center were closed. (These savings are not reflected in the proposed reduction.) Over the next five years, Sellwood is expected to need approximately $3.0 million in major maintenance to remain in service. Community centers within a 3-mile radius – the service level standard, established in the Parks 2020 vision plan – include Fulton Park Community Center (2.3 miles away; 8 min drive and 30 minutes by bus), Woodstock Community Center (2.6 miles; 10 min drive, 27 minutes by bus). A key consideration for Sellwood Community Center is the afterschool program, which serves approximately 100 students from neighboring elementary schools (Llewellyn, Duniway and Ardenwald) and Sellwood Middle School. After school programs are available at the school, but are scheduled for shorter hours and have limited availability. The major maintenance needs for Sellwood Community Center are substantial, estimated at $3.0 million in the next five years, and thus making it a prime candidate for disposition. CBO has not recommended this reduction due to expected impact on services. CBO supports the plan to eventually close Sellwood with plan that helps mitigate the service impacts. If this decision is made outside of the budget process – which is an option available to the bureau – savings from operations costs could be internally reallocated to their highest needs, which could include “buying back” budget reductions or investing in other high priority requests. Woodstock Community Center. Woodstock is primarily used as a preschool facility in addition to various dance, art, and fitness classes. Woodstock also offers rental space for community groups. The number of unique visitors to center in FY 2016-17 was estimated to be 265, resulting in an average annual subsidy of $322/visitor. An additional savings of $7,100 in maintenance costs and $22,000 in administrative support costs would be realized if the center were to close. (These savings are not reflected in the proposed reduction.) Community centers within a 3-mile radius include Brentwood-Darlington (1.5 miles away; 8 min drive and 20 minutes by bus), Mt Scott Community Center (1.9 miles; 8 min, 18 minutes by bus), and Sellwood Community Center (2.6 miles; 10 min drive, 27 minutes by bus). Notably, the Community Music Center is within 2 miles, and the Sellwood-Moreland library offers a meeting space for community meetings in addition to several other nonprofit organizations. CBO does not recommend this closing Woodstock at this time, but notes that the bureau should continue to reevaluate the need for this center in future budget processes as internal resources are prioritized and reallocated. Hillside Community Center. Hillside Community Center is primarily used for preschool and afterschool programming in addition to offering various dance, art, and fitness classes. The number of unique visitors to center in FY 2016-17 was estimated to be 471, resulting in an average annual subsidy of $815/visitor. An
Portland Parks & Recreation 17 March 6, 2018 estimated additional savings of $40,000 in maintenance costs, $21,000 in utility costs and $144,000 in administrative support costs would be realized if the center were closed. (These savings are not reflected in the proposed reduction total). Over the next five years, Hillside is expected to need approximately $300,000 in annualized major maintenance costs ($1.5 million over five years), but there are not specific major maintenance needs at this time. There are no community centers within a 3-mile radius of Hillside Community Center. It should be noted that as part of the acquisition of Hillside Community Center from the nonprofit Hillside Community and Recreation Center, Inc., the City agreed to use the space for “park purposes” (Ord. 138057). In order to comply with this agreement, the proposed reduction would transfer the service delivery option to a partner organization. Transferring operations to a private partner will avoid daily operations costs; however, CBO also recommends that the bureau reach an agreement that recovers funding for the regular and major maintenance costs of the center. Due to high subsidy per participant, the upcoming large maintenance costs, and expected proportionally lower impact on historically underserved communities, CBO recommends this reduction. Fulton Park Community Center. After being closed as a regular neighborhood community center as a result of a budget reduction in FY 2012-13, Fulton Park Community Center is currently a rental-only facility, with a primary lease to L’Etoile French Immersion School for school in addition to some Parks’ summer programs. The facility is also used as a rental space in the evenings and over the weekends. Recently Fulton Park Community Center was damaged due to excess rains, resulting in required repairs in excess of $1.6 million. An additional savings of $37,000 in maintenance costs, $13,000 in utility costs and $30,000 in administrative support would be realized if the center were closed. Due to the significant major maintenance needs and because the City is effectively subsidizing a private school, CBO recommends this reduction and that the bureau take the next steps in the surplus property process. CBO Recommendation: ($477,943) | (4.75) FTE
Outdoor Water Use Reduction PK_01, ($200,000), 0.00 FTE This package reduces water usage for irrigated park spaces to achieve an ongoing General Fund reduction of $200,000. To achieve this reduction, Portland Parks & Recreation will cut irrigation water usage on non-sports field turf areas by 10%, which includes: reducing the operating hours for splashpads by two hours per day and shortening the operating window by one month, making irrigation improvements, efficiency improvements, and reducing water use on irrigation systems controlled by parks staff.
Portland Parks & Recreation 18 March 6, 2018 Parks’ 10% reduction in irrigation watering will generate an ongoing $50,000 in savings. Parks’ reduction in splash pad usage will generate an ongoing savings of $75,000. Irrigation improvements, including, connecting eight more parks to the Central Irrigation Control System (CICS), using Golf course groundwater, and completing irrigation tune-ups to achieve ongoing savings Parks will achieve ongoing savings of $35,000. An additional $40,000 in savings will come from changes to irrigation systems directly controlled Zone staff. The impact of reducing water usage by 10% may cause minor aesthetic changes in some Parks and more dependency on seasonal precipitation levels, but no long- term deterioration of green infrastructure is anticipated. In years with less rainfall there is a possibility that aesthetic changes could change the percentage of residents rating the quality of Parks as ‘good’ or ‘very good,’ which was approximately 84% of residents according to the Auditor’s Community Surveys between FY 2011-12 and FY 2016-17. Given that this reduction package identifies a system-wide efficiency, as directed in the Mayor’s FY 2018-19 budget guidance, and that the proposed reductions will have minimal service level impacts, the CBO recommends this reduction. CBO Recommendation: ($200,000) | 0.00 FTE
Laurelhurst Dance Studio Realignment PK_07, ($72,628), (0.50) FTE This package is put forth as a voluntary realignment, shifting $72,628 in ongoing resources and 0.50 FTE from the Laurelhurst Dance Studio to another recreation site due to low cost recovery and ongoing homelessness issues at Laurelhurst Park and related safety concerns. The Laurelhurst Dance Studio had a 65% direct cost recovery and 38% total cost recovery (including bureau overhead) in fiscal year 2015-16. Of the three recreation centers offering City Arts programming, the Laurelhurst Dance Studio generated the lowest cost recovery. While the Laurelhurst Dance Studio has unique amenities like a specialized dance floor and instruction in a variety of dance genres for youth and adults, revenue and course registrations have steadily declined over the last four years. This realignment package will discontinue Parks use of Laurelhurst Dance Studio, which will have the largest impact on girls and women who are 86% of the studio’s registrants. In FY 2017-18, the center served 1,285 individual registrants who signed up for an average of 2 classes per year for a total of 2,685 registrations. The bureau did not provide information with regards to a disposition plan. This package is in accord with FY 2018-19 budget guidance which directed bureaus to identify efficiencies and realign resources to address priorities. CBO Recommendation: ($72,628) | (0.50) FTE
Portland Parks & Recreation 19 March 6, 2018 Fountain Elimination PK_08, ($220,000), (4.00) FTE This package reduces $620,000 in General Fund resources for operations and maintenance of 19 decorative fountains, and includes the reduction of 4.0 FTE and one seasonal maintenance worker. If this reduction is approved, Parks would continue to operate splash pads in City parks but turn off six interactive fountains that are used for recreation. Although the number of visitors to the fountains is unknown due to their central locations within the City, it is reasonable to assume that a large number of residents would be impacted if the fountains were to be shut-off. The bureau has explored alternative operating models, but concluded that four full-time positions are required to operate and maintain the fountains year-round, including those fountains that are only operational between March through October. As such, a “highest priority” model may not yield substantial savings. The bureau also believes that cutting any or all of the staffing for the fountains would result in irreparable damage and eventually require the fountains to be permanently closed. The fountains remain Portland Water Bureau assets and until FY 2013-14 were operated and maintained by the bureau. The 2017 ruling by Multnomah County Judge Bushong determined that water rates could be used to fund the costs of these fountains. As such, CBO recommends realigning the funding for these fountains to Water Bureau to generate General Fund savings. As to which bureau is best positioned to operate and maintain the fountains, it is inconclusive. Water is more uniquely qualified to maintain critical plumbing infrastructure, and as the asset owners, they developed a long-term asset management plan. The operational decision of what bureau would operate the fountains would need to be made if Council chooses to realign funding from the General Fund to water rates. CBO Recommendation: $620,000 | 0.00 FTE
Eliminate Service to Non-core properties PK_09, ($6,191), 0.00 FTE This package would eliminate the maintenance of undeveloped properties and properties owned by other bureaus. This reduction will result in minimal savings, but this package also reflects the operational decision of realigning seasonal maintenance staff toward higher priority projects – a practice strongly supported by CBO. CBO notes that some of these properties were originally acquired for land banking purposes with the intent of using the property as developed park space. The bureau is continuing to assess the value of underutilized properties for future park needs while developing a list of properties for disposition. The one-time resources
Portland Parks & Recreation 20 March 6, 2018 generated by any surplus property sales may provide funding for other bureau needs, such as major maintenance costs. A similar disposition process recently occurred when the Tabor Annex was sold to the Portland Housing Bureau, the proceeds were then applied as match funding for FEMA grants. CBO recommends that the bureau continue to prioritize resources to core functions and also look for opportunities to save in maintenance costs. Recommended as requested. CBO Recommendation: ($6,191) | 0.00 FTE
Discontinue Planting and Maintenance of Downtown Transit PK_10, ($100,000), (1.00) FTE This package would eliminate funding for the costs associated with servicing the 300 planters at the downtown transit mall (SW Yamhill, SW Morrison, SW 5th, and SW 6th Avenues). Planters are typically watered and cleaned for trash, needles and biohazards twice per week. To decrease planting and maintenance costs, planters have gradually been converted from more expensive “annual” flower pots to “permanent” pots containing grasses, perennials, and shrubs. The Portland Bureau of Transportation (PBOT) owns the right-of-way and the planters, and has an agreement with Tri-Met to maintain the planters. However, there is no agreement between PBOT and Parks that requires the bureau to maintain the planters nor does PBOT reimburse Parks for this service. CBO recommends reducing General Fund discretionary resources to fund these maintenance costs. PBOT, as the asset owner, should pay for Parks’ horticultural services via an interagency agreement and charge Tri-Met for the City’s maintenance of the service. This approach allows the asset owners and key stakeholders to define the service level for planter maintenance, while retaining the opportunity for Parks to provide the service if they offer the most cost efficient option at the desired level of service. CBO Recommendation: ($100,000) | (1.00) FTE
Reduce Capacity for Operational Support PK_11, ($70,000), 0.00 FTE This package would reduce funding within the Finance division that has been previously used to fund temporary staff during budget development and special projects. Most recently these funds provided funding for a temporary staff member to coordinate the relocation of Parks’ staff out of the Portland Building. CBO recognizes that having flexible funding can be useful for effectively and efficiently addressing ad hoc projects. However, the bureau has no specific plans for these funds in FY 2018-19, although the bureau notes that the funding would be used to support the cost-recovery and financial sustainability planning efforts.
Portland Parks & Recreation 21 March 6, 2018 As such, this reduction can be taken with minimal immediate impact. Recommended as requested. CBO Recommendation: ($70,000) | 0.00 FTE
Reduce capacity for Data Systems Development PK_12, ($98,416), 0.00 FTE This package would reduce funding for an interagency agreement with BTS by $98,416 that supports various Parks applications, some of which are central to the business of Parks’ programs, including the work order system (MicroMain), program registration (Active Net), and the Teen Force App. In addition, this agreement provides support for new projects prioritized by bureau management. In the short-term, projects include a system to track vendor contracts and allocated project funding, an ADA database, conversion of all parts Central Stores inventory to a digital bar-code (scanning) system, and online pesticide application management. If this reduction is taken, current applications would continue to receive support, but support for new projects and applications would be eliminated. This would likely impact Parks’ ability to move forward with the pilot of the Enterprise Asset Management module – a system which will be key for more effective work order management and asset maintenance planning. In the past three years, this $200,000 interagency agreement has been underspent by between $15,000 to $37,000, indicating Parks’ is utilizing nearly all of the funding for this service. Given the continued need to support key bureau applications, the regular emergence of application needs, and the continued need for supporting bureau data systems, CBO does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE
Work Order Efficiency PK_13, ($70,000), $100,000, 0.00 FTE This package proposes an improvement to the maintenance work order process. The current system includes a mixture of paper and electronic processing procedures that make the work order process time-intensive and necessitates considerable administrative support. This proposal will reduce $70,000 in ongoing General Fund resources by eliminating a currently vacant full-time staff position, which is not expected to be needed after streamlining the logging and tracking of work orders to completely electronic process. To implement these work order efficiencies, Parks requests $100,000 in one-time general fund. This one-time investment will allow the Parks to retain the administrative position ($55,000) while training ($45,000) occurs so that maintenance staff experience a smooth transition to the MicroMain mobile
Portland Parks & Recreation 22 March 6, 2018 work order system. This package is in accord with FY 2018-19 budget guidance which directed bureaus to identify efficiencies and realign resources to address priorities. CBO recommends the ongoing reduction portion of this package but recommends that Parks use savings within Central Services and Asset Management in FY 2017-18 to fund the temporary administrative position. CBO Recommendation: ($70,000), $0 | 0.00 FTE
Reduce Weekend Coverage at Customer Service Center PK_15, ($56,562), (1.00) FTE This proposal reduces one FTE Customer Service Center position, effectively eliminating weekend Ranger call coverage at the center. Weekend staff field Parks Ranger calls for service as well as administrative projects. However, the volume of Park Ranger calls for service on weekend days averages half of the calls for service volume on weekdays. Direct impacts would result in weekend Ranger calls going to voicemail. Rangers would need to implement a new practice to retrieve calls over the weekend. Capacity would also be reduced for database management and other tasks that were possible with the reduced volume of walk-ins and phone customers. Additionally, responses to customer inquiries would be delay until the following Monday. Given that Parks identified this reduction package as a noncore service, in alignment with stated budget priorities, and impacts to service provision will be low, CBO recommends this reduction. CBO Recommendation: ($56,562) | (1.00) FTE
Reduce Park and Facility Maintenance Capacity PK_18, ($270,000), (3.00) FTE This package would reduce General Fund resources by $252,372 and eliminate one full-time Automotive Equipment Operator I position from the Heavy Equipment group, a Plumber from Central Services, and a Maintenance Mechanic from the playgrounds and park amenities maintenance group. The loss of the Automotive Equipment Operator will extend the tall-grass mowing cycle, extend the ‘deep’ garbage can collection cycle, and decrease brush removal. There is demand for all three positions in terms of both preventative and urgent work. The estimated backlog of work orders is estimated at being three to nine months. Moreover, a key finding of the 2013 audit of Parks’ maintenance identified the need for preventative maintenance; the elimination of three central services staffing positions would further limit the bureau’s ability to efficiently maintain parks.
Portland Parks & Recreation 23 March 6, 2018 Parks has offered these reductions in previous years, not because their responsibilities or tasks were least valued within Central Services, but because these positions were vacant. The Automotive Equipment Operator position has been vacant since October 2016, the Maintenance Mechanic has been vacant since April 2017, and the Plumber has been vacant since July 2017 but is currently under active recruitment. Eliminating vacant positions allows for less staff disruption, and does not result in immediate impacts. However, eliminating these positions may have long-term impacts on preventative maintenance work. CBO has not recommended this reduction in the past because the maintenance of parks is a core function for the bureau and because Central Services play a critical role in maximizing the life of bureau assets. Given that these positions have been vacant for prolonged periods and due to the need to identify General Fund savings, CBO recommends a reduction of $90,000. CBO recommends that the bureau identify which position will result in the least impact to service levels and asset preservation. In terms of work order backlog, the elimination of the Automotive Equipment Operator I, which has been vacant for over a year, may have a lower impact. CBO Recommendation: ($113,092), (1.00) FTE
Regional Trails Service Reduction PK_19, ($52,000), 0.00 FTE This package would reduce basic maintenance services to regional trails from occurring biweekly to monthly. Park Technicians and seasonal maintenance workers address basic maintenance needs of the trails (graffiti and litter removal, vegetation trimming) along the Springwater Trail, Columbia Slough Trail, Willamette Greenway Trail, and Waud Bluff Trail. Whether this reduction will impact the public’s perception of these trails is unknown. CBO notes that the Springwater Trail and Columbia Slough Trail have been impacted by homelessness over the past few years, and that a reduction to trash removal may have a more noticeable impact. Following the clean-up of the Springwater Corridor last year, an increase Ranger presence and the centrally coordinated clean-up services have helped to mitigate the establishment of new campsites, but those enhanced services do not address basic trail maintenance. Despite the need for regular maintenance of these regional trails, CBO recommends this reduction in order to realign these savings to other City needs. CBO Recommendation: ($52,000) | 0.00 FTE
Eliminate Support for Removing Invasive Species PK_21 ($200,000), (2.00) FTE Parks proposes eliminating the Protect the Best program, which would result in
Portland Parks & Recreation 24 March 6, 2018 ongoing General Fund savings of $200,000 and the elimination of 2.0 FTE. The short-term impacts (3-5 years) of eliminating this program are minimal, however, the long-term impacts could be substantial and Citywide. The Protect the Best Program began in 2007 as part of the City’s Grey to Green Initiative, which had the goal of preventing small patches of invasive plants from spreading in Park’s natural areas. Currently, there are no other programs in the City that serve the function of protecting green infrastructure in natural areas. Performance measures impacted by this reduction include the number of acres annually treated for invasive weeds, which has remained constant at 2,000 since FY 2016-17 after decreasing from 2,173 in FY 2015-16. Invasive species removal preserves the health and resiliency of Parks’ green infrastructure. Given the Citywide impacts of eliminating the Protect the Best program, CBO does not recommend this reduction package. However, to balance with other Citywide priorities CBO is recommending a slight reduction of $50,000, which rather than eliminating the program may require realignment. CBO Recommendation: ($50,000) | 0.00 FTE
Reduction of Public Involvement Position PK_22, $69,924, 0.00 FTE This package would eliminate one Senior Community Outreach & Information Representative within the Public Involvement team which specifically supports public outreach for large projects and is the lead staff on groundbreaking and dedication events. This proposal realigns remaining Public Involvement staff funding directly to the projects and programs they support. Last year approximately $80,000 in costs were budgeted to be allocated for public involvement costs of capital projects. CBO supports this realignment, seeing that the demand for public involvement should be scoped to program and project needs. Due to the increased availability of Parks’ SDC resources, it is largely expected that there will be continued need for public involvement in park design, which can be funded within the project budgets. Related to the position elimination, while the role of this position is important in supporting the bureau’s relationship to the community, the elimination of the position will not directly impact services. Given the need to identify General Fund savings in order to fund other Council priorities, CBO recommends this reduction. CBO Recommendation: ($69,924) | 0.00 FTE
Preschool Scholarships PK_26 $80,000, 0.00 FTE This decision package requests $80,000 in ongoing General Fund resources to
Portland Parks & Recreation 25 March 6, 2018 provide scholarships for Parks preschool participants. Educational preschool programs provide pre-literacy, socialization, structure, familiarity with the classroom setting, and many other experiences that benefit children throughout their education. Offering scholarships will ensure that low-income families have access to these services. During FY 2017-18, Council issued a budget note directing Parks to achieve full cost recovery in its Preschool programming. Prior to the fiscal year 2016-17 arbitration agreement settlement, the cost of administering the preschool program rose by $750,000 per year. During the 2017-18 school year scholarships were provided across 14 sites to 530 participants, Parks approved 60 (11.3% of total attendees) scholarships averaging $712, for a total cost of $42,700. As such, Parks has increased the fees to provide these services by 28% to achieve direct cost recovery. If Parks were to include these scholarships in their cost recovery model, an estimated 43% systemwide price increase would be necessary. CBO does not recommend supporting these scholarships with ongoing General Fund discretionary in light of limited resources. To the degree that a scholarship program is built into the cost recovery plan for the program, Parks should assess what the impact would be on the demand for the service at the increased cost. CBO Recommendation: $0 | 0.00 FTE
Long Range Plan PK_27 $575,000, 0.00 FTE Parks requests $575,000 in one-time funding to renew the Parks Vision 2020 Long Range Plan. Parks plans to use the funding to initiate a public engagement process, update its vision to be more responsive to an increasingly diverse population addressing key issues that have emerged over the last 10-12 years. Parks is currently operating under the strategic guidance of its 2020 Vision Plan. CBO recognizes that bureaus need comprehensive and long-term, strategic plans that guide them toward bureau and citywide goals. However, given the FY 2018-19 stated priorities and competing Citywide needs, CBO does not recommend funding for the Parks 2020 Long Range Plan at this time. Moreover, given the limited availability of expected one-time resources in future budget processes, CBO recommends that the bureau consider performing this strategic planning process with existing staff and other internal resources, and what would be the trade-offs of this internal reallocation of resources. CBO Recommendation: $0 | (0.00) FTE
Implement Cost-Recovery and Financial Sustainability Plans PK_28, $150,000, 0.00 FTE This package would provide funding for consultant services that would assist with
Portland Parks & Recreation 26 March 6, 2018 the implementation of the Long-term Financial Plan and the Cost-Recovery Plan. CBO notes that both of these plans mark significant endeavors for the bureau and the effective implementation will be critical in setting the bureau on a fiscally sustainable path. However, significant progress needs to be made all both of these plans, including recommendations for next steps, prior to implementation. Absent this information, it cannot be determined whether additional resources are needed or whether these changes can be implemented within current resources. Following the finalization of these plans and Council sign-off, CBO recommends that the bureau reassess whether additional resources are needed and what would be the trade-offs of funding the implementation within current funding. CBO Recommendation: $0 | (0.00) FTE
Financial Assistance for Low Income Residents PK_29 $600,000, 0.00 FTE This package requests funding for the Parks scholarship program and proposes allocating $600,000 of one-time General Fund Resources to establish a dedicated pool of funds for providing low-income populations access to fee-supported recreation programs. The scholarship program is the bureau’s primary mechanism for ensuring access to programs for low-income youth and families. Parks does not currently budget scholarships; they are absorbed within the bureau’s existing General Fund allocation and offered to customers through fee reductions. Fee reductions are currently provided at the behest of Recreation Coordinators and Recreation Supervisors at each community center in a non-centralized non- standard manner. In the FY 2016-17 Budget, a one-time General Fund allocation of $100,000 was provided to support a limited-term Scholarship Coordinator to support transition to a revised policy and practice for recreation scholarships. A key adjustment to the proposed policy is shifting to an annual award ($200 maximum in most cases) value for qualifying individuals, eliminating the need to apply multiple times per year and at individual sites. To enable the bureau to shift from its current underfunded, informal and off- budget approach, Parks is requesting that scholarship funds be provided by City Council to explicitly support scholarships. It is expected that over time the bureau will have demographic data to identify populations most impacted by the scholarship program. During the FY 2017-18 Supplemental Budget process a recommendation was put forward for Parks to reallocate General Fund discretionary resources from Recreation Services to a separate fund, an internally sourced dedicated pool of scholarship funds. Since the Supplemental Budget process, Parks, CBO and Accounting have had several discussions on implementing the appropriate budget and accounting mechanisms. However, there has not been an agreed upon
Portland Parks & Recreation 27 March 6, 2018 approach. CBO maintains that the scholarship program is a necessary tool for ensuring equitable access to Parks’ programming, and whichever budget mechanism is used to account for scholarship funding, the goal should remain that scholarships are well-utilized and accessible. Parks should establish parameters for tracking demographic data (age, race/ethnicity, income), and a monitoring component to allow reporting on program performance. Moreover, CBO notes that the bureau may be able to fully fund the cost of program by shifting the resources used to fund the currently decentralized system to a centrally administered budget. Given these concerns and limited available one-time resources, CBO does not recommend this request. CBO Recommendation: $0 | 0.00 FTE
Develop Culturally Responsive Communication PK_30, $150,000, 0.00 FTE Parks has not updated its graphics and communications practices and standards during the last 14 years, since 2004. This proposal seeks funding to support an update to Park’s communications and design practices and protocols. This one- time add package provides funding to hire consultants with specialized skills to update and redevelop the bureau’s graphic standards While CBO recognizes the need for communication and marketing materials that appeal to Parks’ target audience, this request is not urgent and would not immediately or directly impact services. CBO also believes that, if planned appropriately and scaled to include the key components, could be absorbed within the bureau’s current appropriation. As such, CBO does not recommend this request for $150,000 in one-time General Fund resources. CBO Recommendation: $0 | 0.00 FTE
Operations and Maintenance PK_31, $178,369, 1.00 FTE The bureau requests $178,369 in General Fund ongoing resources and 1.0 FTE to support the estimated operations and maintenance of two projects (Lynchwood Community Garden and a new natural area near the recently completed Sellwood Bridge). Contracts for these parks have already been approved by Council or are scheduled for Council’s agenda in the coming months. CBO recommends the direct operation and maintenance funding for these parks. The City’s financial procedure (FIN 2.03.02) intends to ensure that there is sufficient operations and maintenance funding while also giving Council the flexibility to provide direction on projects during the budget process and prior to approval of construction contracts. Last year CBO recommended funding for direct
Portland Parks & Recreation 28 March 6, 2018 O&M of new parks, but that the bureau separately request funding for related administrative costs rather than assuming a proportional amount of funding is needed. Included with this request is $116,586 to fund the bureau’s next most pressing administrative need, an Organizational Management/Personnel Administrator, intended to address the administrative demands of the Workforce Development group. Parks has had a significant increase in the number of regular and limited term employees over the five years: total FTE has increased from 420 in FY 2012-13 to 695 in FY 2017-18. The increases are due to a number of factors, including the conversation of seasonal employees to 101.25 FTE in FY 2016-17 due to an arbitration settlement with Local 483. Parks has also increased operations and maintenance positions as a result of SDC-funded projects, in addition to an expansion of the Ranger program and the Asset and Development team following the implementation of the bond program. The increase in positions has also increased the demand of supporting a larger workforce. However, during this same period, Workforce Development has grown by a greater proportional amount: from three positions in FY 2013-14 to six positions in FY 2017-18. CBO recognizes the increased burden on Parks’ administrative staff and that as Parks’ system grows and programming expands, there will need to be a commensurate increase in administrative staff to support direct service providers. Given the limited available ongoing resources, CBO does not recommend funding at this time. CBO notes that Parks currently has many vacant positions, potentially exacerbating the workload demands of Workforce Development staff, limiting their ability to implement process improvements like developing recruitment strategies, simplifying the application process and developing recruitment and hiring practices to build a culturally competent and diverse staff. However, given the large number of vacancies, CBO also has concerns about creating new positions when it is possible that the next most pressing need for the bureau may be to realign a vacant position into the requested management analyst. CBO does not recommend the position included in this request. Moreover, CBO directs the bureau to include only costs directly related to O&M in decision packages associated with FIN 2.03.02. Administrative and support staff should be requested separately as those needs are identified. CBO recommends the portion of this package associated with the O&M for parks that are expected to by contracted or constructed over the next year. CBO Recommendation: $61,783 | 0.00 FTE
Utility Efficiencies PK_37, $500,000, 0.00 FTE This package requests $500,000 in one-time General Fund discretionary to fund positions (Turf and Irrigation tech and Facility Maintenance Tech) in addition to
Portland Parks & Recreation 29 March 6, 2018 contract costs. Changes implemented by these positions will result in increased efficiencies in systemwide irrigation in addition to more optimally using the system that manages the lighting, heating, cooling, and ventilation of Parks facilities. Ultimately, utility savings are expected to offset the ongoing cost of these positions. This request also includes funding for the initial contract costs for an Energy Savings Performance Contract (ESPC), in which construction costs of energy retrofits are financed by utility savings. Consistent with the Mayor’s guidance, the intent of this package is to find efficiencies and focus one-time requests on investments that decrease the City’s long‐term costs. However, given the limited availability of one-time resources, CBO does not recommend General Fund resources. Rather, CBO recommends that the bureau pursue the project through another financing method. Any savings could be used for future Parks’ needs or be offered as a future reduction package. CBO Recommendation: $0 | 0.00 FTE
Portland Parks & Recreation 30 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of Portland Parks & Recreation’s total budget.
FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance$ 95,768,253 $ 134,922,938 -$ -$ $ 134,922,938 Taxes 2,076 - - - Licenses & Permits 1,120,328 1,325,328 55,000 - 1,380,328 Charges for Services 44,278,108 46,386,461 (52,725) 543,336 46,877,072 Intergovernmental Revenues 345,199 2,253,673 - - 2,253,673 Interagency Revenue 2,544,223 2,005,530 400,000 620,000 3,025,530 Fund Transfers - Revenue 2,825,093 2,053,672 31,225,000 (27,032,489) 6,246,183 Bond and Note Proceeds 10,740,000 - - 10,740,000 Miscellaneous Sources 3,298,334 2,493,164 30,000 (30,000) 2,493,164 General Fund Discretionary 62,786,007 65,570,795 1,218,035 (3,445,001) 63,343,829 Total Resources $212,967,621 $267,751,561 $32,875,310 $ (29,344,154) $271,282,717
Requirements Personnel Services $ 69,425,892 $ 71,984,002 $ (917,101) $ 211,243 $ 71,278,144 External Materials and Services 30,714,436 55,893,238 33,754,902 (29,654,742) 59,993,398 Internal Materials and Services 11,988,586 13,394,478 37,509 99,345 13,531,332 Capital Outlay 58,927,767 57,110,712 - - 57,110,712 Debt Service 673,698 758,827 - - 758,827 Fund Transfers - Expense 1,745,289 1,241,807 - - 1,241,807 Contingency 39,329,261 67,202,756 - - 67,202,756 Unappropriated Fund Balance 162,692 165,741 - - 165,741 Total Requirements $212,967,621 $267,751,561 $32,875,310 $ (29,344,154) $271,282,717
Portland Parks & Recreation 31 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Parks & Recreation Adds
PK_25 - Increase Support for Capital Major Maintenan 01 0.00 625,000 0 0 625,000 0.00 450,000 (450,000) 0 0 PK_26 - Scholarships for Preschool 02 0.00 80,000 0 0 80,000 0.00 0 0 0 0 PK_27 - Long Range Vision Plan 03 0.00 0 575,000 0 575,000 0.00 0 0 0 0 PK_28 - Implement Cost Recovery/Financial Sustainab 04 0.00 0 150,000 0 150,000 0.00 0 0 0 0 PK_29 - Financial Assistance for Low Income Resident 05 0.00 0 600,000 0 600,000 0.00 0 0 0 0 PK_30 - Develop Culturally Responsive Communicatio 06 0.00 0 150,000 0 150,000 0.00 0 0 0 0 PK_31 - Operations and Maintenance 07 1.00 178,369 0 0 178,369 0.00 61,783 0 0 61,783 PK_40 - Maintain Campsite Cleanup at PP&R Properti 08 0.00 136,854 0 0 136,854 0.00 0 136,854 0 136,854 PK_32 - Vera Katz Eastbank Esplanade Maintenance R 09 6.00 250,000 500,000 0 750,000 0.00 0 0 0 0 PK_33 - Fee Increases -Enhanced Tree Permitting Ser 10 3.00 0 0 770,000 770,000 3.00 0 0 770,000 770,000 PK_34 - Hazardous and Abandoned Boat Enforcement 11 0.00 98,000 (30,000) 30,000 98,000 0.00 0 0 0 0 PK_35 - Portland Parks Foundation 12 0.00 100,000 0 0 100,000 0.00 0 0 0 0 PK_36 - Seismic Needs Assessment- PP&R Facilities 13 0.00 0 500,000 0 500,000 0.00 0 500,000 (500,000) 0 PK_37 - Utility Efficiencies 14 0.00 0 500,000 0 500,000 0.00 0 0 0 0 PK_38 - Fire Threats of Forested Areas Risk Assessme 15 0.00 0 100,000 0 100,000 0.00 0 0 0 0 PK_39 - Demolitions and Removal of Hazardous Struc 16 0.00 0 300,000 0 300,000 0.00 0 250,000 0 250,000 PK_24 - PP&R Priority Major Maintenance Capital Proj 17 0.00 0 29,800,000 0 29,800,000 0.00 0 3,742,511 0 3,742,511 Total Adds 10.00 1,468,223 33,145,000 800,000 35,413,223 3.00 511,783 4,179,365 270,000 4,961,148 Reductions
PK_01 - Outdoor Water Use Reduction - Splash Pad/T 01 0.00 (200,000) 0 0 (200,000) 0.00 (200,000) 0 0 (200,000) PK_02 - Recover Costs for Emergency Tree Removal 02 0.00 (400,000) 0 400,000 0 0.00 (400,000) 0 400,000 0 PK_03 - Strategic Parking Assessment & Revenue Stu 03 0.00 (100,000) 150,000 0 50,000 0.00 (100,000) 100,000 0 0 PK_04 - Inc Cost Recovery of Private Uses of Park Fa 04 0.00 (200,000) 100,000 100,000 0 0.00 (200,000) 100,000 100,000 0 PK_05 - Increase Fees for Special Use Permits 05 0.00 (90,000) 0 90,000 0 0.00 (90,000) 0 90,000 0 PK_06 - Transfer Utility Costs to Partner Organizations 06 0.00 (193,500) 0 0 (193,500) 0.00 (193,500) 0 0 (193,500) PK_08 - Fountains Elimination 07 (4.00) (620,000) 400,000 0 (220,000) 0.00 (620,000) 0 620,000 0 PK_09 - Eliminate Service to Non-Core Properties - La 08 0.00 (6,191) 0 0 (6,191) 0.00 (6,191) 0 0 (6,191) PK_10 - Discontinue Planting&Maint of Downtown Tran 09 (1.00) (100,000) 0 0 (100,000) (1.00) (100,000) 0 0 (100,000) PK_11 - Reduce capacity for Operational Support 10 0.00 (70,000) 0 0 (70,000) 0.00 (70,000) 0 0 (70,000)
Portland Parks & Recreation 32 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Parks & Recreation Reductions
PK_12 - Reduce capacity for Data Systems Devel & Su 11 0.00 (98,416) 0 0 (98,416) 0.00 0 0 0 0 PK_13 - Efficiency to PP&R’s Work Order System 12 0.00 (70,000) 100,000 0 30,000 (1.00) (70,000) 0 0 (70,000) PK_14 - Close Woodstock Community Center 13 (1.00) (35,000) 10,000 (50,415) (75,415) 0.00 0 0 0 0 PK_15 - Reduce weekend coverage at Customer Svc C 14 (1.00) (56,562) 0 0 (56,562) (1.00) (56,562) 0 0 (56,562) PK_16 - Close Sellwood Community Center 15 (6.75) (200,261) 111,000 (492,921) (582,182) 0.00 0 0 0 0 PK_17 - Close Fulton & Hillside Community Centers 16 (4.75) (136,182) 75,000 (341,761) (402,943) (4.75) (136,182) 0 (341,761) (477,943) PK_18 - Reduce Park and Facility Maintenance Capac 17 (3.00) (270,000) 0 0 (270,000) (1.00) (113,092) 0 0 (113,092) PK_19 - Regional Trails Service Reduction 18 0.00 (52,000) 0 0 (52,000) 0.00 (52,000) 0 0 (52,000) PK_20 - Reduce Frequency of Downtown Restroom Cl 19 0.00 (88,000) 0 0 (88,000) 0.00 (88,000) 0 0 (88,000) PK_21 - Eliminate Support for Removing Invasive Spe 20 (2.00) (200,000) 0 0 (200,000) 0.00 (50,000) 0 0 (50,000) PK_22 - Reduction of Public Involvement Position 21 0.00 (80,076) 150,000 0 69,924 (1.00) (80,076) 0 0 (80,076) Total Reductions (23.50) (3,266,188) 1,096,000 (295,097) (2,465,285) (9.75) (2,625,603) 200,000 868,239 (1,557,364) Realignments
PK_07 - Laurelhurst Dance Studio Realignment 01 (0.50) 0 0 (72,628) (72,628) (0.50) 0 0 (72,628) (72,628) PK_23 - Realignment of Outreach Position 02 0.00 0 0 0 0 0.00 0 0 0 0 Total Realignments (0.50) 0 0 (72,628) (72,628) (0.50) 0 0 (72,628) (72,628)
Total Portland Parks & Recreation (14.00) (1,797,965) 34,241,000 432,275 32,875,310 (7.25) (2,113,820) 4,379,365 1,065,611 3,331,156
Portland Parks & Recreation 33 March 6, 2018 Portland Parks & Recreation 34 March 6, 2018 Budget Review | Fiscal Year 2018-19 Prosper Portland
Analysis by Asha Bellduboset and Josh Harwood
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $8.0 M $7.0 $7.2 $7.0 M $6.0 $5.8 $5.7 $5.4 $6.0 M
$5.0 M
$4.0 M
$3.0 M
$2.0 M
$1.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 Requested CBO FY 19 Recommended
0.0 FTE 0.0 FTE 0.0 FTE 0.0 FTE 0.0 FTE 0.0 FTE
INTRODUCTION Prosper Portland is in a period of transition as it moves from an organization funded primarily with urban renewal resources (i.e. tax increment financing) to a proposed diverse mix of funding sources. It is being guided by its 2015-2020 Strategic Plan.1 In addition to managing ten Urban Renewal Areas (URAs) and six Neighborhood Prosperity Initiative (NPI) micro URAs, Prosper Portland uses City General Fund resources provide support for workforce development, business
1 https://prosperportland.us/wp-content/uploads/2016/04/PDC-Strategic-Plan.pdf
Prosper Portland 1 March 6, 2018 technical assistance, and traded sector industry expansion. KEY ISSUES Financial Sustainability Prosper Portland is finalizing a multi-year effort to chart a path toward long-term financial sustainability. Though the plan2 is still in draft form, it currently includes the following major funding components: • “Boomerang Funds” – allocating 25% of “new” General Fund that results from the expiration of Urban Renewal Areas • Real Estate Management and Investment • Unspecified New Urban Renewal Areas • Continuation and Expansion of Enterprise Zone and New Market Tax Credit programs Below is a discussion of the General Fund component of that plan, as well as an overall outlook and CBO recommendation on how City Council should proceed in the years ahead.
Boomerang Funds A significant source of future funding proposed by Prosper Portland is tied to “Boomerang Funds,” which are property tax dollars returned to the City and other jurisdictions following the retirement of urban renewal debt. Prosper Portland is proposing that 25% of the funds that the City will realize go back to Prosper Portland for continuing economic development programs. The purpose of urban renewal in Oregon is to temporarily divert property taxes from local governments in order to increase the tax base, and consequently return those areas back to the general tax rolls at much higher values. A 2002 study commissioned by Prosper Portland summarizes this as the justification for urban renewal itself: “When property values go up as a result of investment in the area or appreciation, the taxes on the increase in the assessed value above the frozen base are used to pay for the improvements in the urban renewal area (see chart in “How Urban Renewal Works”). In the long term, the increment goes back at full value onto the tax rolls, from which all taxing districts benefit.”3
2 https://prosperportland.us/wp-content/uploads/2017/04/Prosper-Portland-90-Draft-Financial-Sustainability- Plan.pdf 3https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjovNGsz7fZAhUD 2GMKHYKpCCcQFggpMAA&url=http%3A%2F%2Fwww.occma.org%2Fportals%2F29%2Fur%2520agency%2F oregon_urban_renewal_history.pdf&usg=AOvVaw1RG2NKWYduxuiN9GpPS7Tm
Prosper Portland 2 March 6, 2018 Taxes that return from expiring urban renewal areas are simply General Fund resources, no different than business or lodging taxes. CBO believes that Council should treat any request to use these boomerang funds for economic development the same as it treats all other requests and weigh the request against all other City priorities. It will be important for Prosper Portland to develop a detailed plan for the use of these funds so that City Council can effectively weigh the budgetary tradeoffs. Ultimately, allocating 25% of these dollars would dramatically increase the General Fund support of Prosper Portland and, depending on the amount of taxes returned, make the agency at least the sixth largest receiver of General Fund dollars in the City. Finally, the latest forecast of returned property taxes from expired urban renewal districts highlights the uncertainty around the retirement of the City’s existing URAs. As the graph below illustrates, the timing and amount of taxes returned to the City’s General Fund may change significantly by the time these funds may be allocated.
General Fund Taxes Returned from URA Defeasance $60 M $50 M $40 M $30 M $20 M $10 M $0 M FY 21 FY 22 FY23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32
February 2018 February 2017
Prosper Portland 3 March 6, 2018 Overall Budget Stability/Structure While developing its financial sustainability plan, Prosper Portland developed four funding scenarios and their estimated outcomes. In addition to the high and low funding scenarios4 described below, the plan contemplates two additional funding scenarios that fall in between:
Baseline High Revenue Low Revenue Scenario Scenario
Key Components Current 25% Boomerang No Boomerang Funding Funds, 6% Returns, Funds, 3% Returns, Level New URA(s) No New URA(s)
Workforce 20,733 19,303 10,600 Participants
Economic 22 24 9 Development FTE
Total FTE 86 79 49
The long-term financial plan for Prosper Portland requires a dramatic shift in revenue sources. With this comes two important considerations. First, the resources are much more flexible, especially as compared with the URA funding that are restricted as to both where and on what the money may be spent. Second, the resources themselves are more volatile, and availability is subject to outside influences (e.g., other General Fund priorities and/or limitations), than current resources (primarily property taxes from urban renewal districts). Such a change, even if all the uncertain aspects of the plan come to fruition, will be challenging. Historically, the structure of Prosper Portland was set up under state law to receive and manage urban renewal areas. This primary function will shrink over the next decade. The size of Prosper Portland has already contracted by more than half since FY 2009-10, and all scenarios in its long-term financial sustainability plan expect at least a modest further decline. Prosper Portland still maintains potentially redundant administrative functions, such as human resources, that are housed in the City’s Office of Management and Finance for all City bureaus. Lastly, Prosper Portland maintains 11 IGA’s with six City bureaus totaling nearly $105 million in FY 2017-18, which illustrates the degree to which Prosper Portland interacts with existing City bureaus. Given all of this, CBO recommends that Council study the potential costs and benefits of Prosper Portland becoming a City bureau, particularly if it is expected to become more reliant on General Fund support.
4 Slides 32 and 33 of https://prosperportland.us/wp-content/uploads/2017/04/FSP-Presentation-City-Council- Work-Session-2018-01-30.pdf
Prosper Portland 4 March 6, 2018
DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $1,250,000 Ongoing One-Time Other Revenues
$(268,025) $(244,904) $554,620
$242,240
$- $- $-
General Fund General Fund One- Other Revenues
Ongoing Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
Small Business Growth Program (Increase & XXcelerate) ZD_01, $275,000 This project was funded on a one-time basis in FY 2017-18 based on a pilot program funded internally by Prosper Portland in FY 2016-17. The program is now administered through Portland State University and provides a curriculum that helps very small businesses advance to the next stage of growth through a variety of methods, such as opening new locations, expanding into new markets, and launching new products. The structure of the program allows for robust data gathering and has easily measurable outcomes by tracking enrollees in terms of revenue and job growth. Prosper Portland developed a reporting tool that will track and report annual metrics around jobs and revenue for those participating in the program. The first report will be available in August 2018. Given this timeline, CBO does not recommend ongoing resources. However, CBO recommends supporting this effort with one-time resources, as there is a substantial opportunity to support the City’s equity goals. Should Prosper Portland meet its
Prosper Portland 5 March 6, 2018 programmatic goals and demonstrate robust demand for the program, the City should consider providing ongoing resources.
CBO Recommendation: $100,000 one-time
Division Street Business & Community Support ZD_02, $350,000 This package attempts to address expected disruptions to businesses around the construction of a bus rapid transit line on outer Division Street. It would fund two organizers in the NPI districts and provide business technical assistance through contracted work. Prosper Portland (then PDC) requested $400,000 in one-time General Fund resources in FY 2016-17 and $275,000 in ongoing support in FY 2017- 18 for this project, originally slated to start at the end of 2018. As noted in last year’s CBO review, it does not appear that the level of disruption and potential economic impacts of going from a traditional bus line to a bus rapid transit line will require the level of outreach services that Prosper Portland is proposing. The economic and demographic challenges of this area are similar to changes going on in other places in the City – Cully, North Williams, and St. Johns show similar signs of disruption, albeit potentially at different stages of development. Furthermore, the project has been proposed for several years without moving forward to actual construction. Finally, another project delay was recently announced.5 Therefore, CBO does not recommend funding in FY 2018-19. CBO Recommendation: $0
Portland Film Office ZD_03, $71,120 This package extends the one-time funding for the Portland Film Office, but at half the amount funded in FY 2017-18. Prosper Portland requested that the other half come from film permitting fees, primarily collected by the Portland Bureau of Transportation (PBOT) and Portland Parks and Recreation (PPR). The response to a FY 2017-18 budget note was to first create a universal film permit form so that the Film Office could serve as a one-stop shop for filmmakers in Portland. Through that development, it is envisioned that the Film Office could expand services, relieve some administrative work currently in the bureaus, and evaluate a potential move of the Film Office from Prosper Portland to another bureau. Such a process, paired with an evaluation of the fees themselves, could justify a revenue-sharing agreement to help relieve the need for General Fund for the Portland Film Office. CBO believes that this is the best approach and therefore recommends continuing the full one-time General Fund allocation for the Portland
5 http://www.oregonlive.com/commuting/index.ssf/2018/01/division_transit_project_likel.html
Prosper Portland 6 March 6, 2018 Film Office for FY 2018-19 while this concept is further developed. CBO Recommendation: $142,240 one-time
Brownfield Property Tax Exemption Administration ZD_04, $150,000, 0.0 FTE This package requests $150,000 in ongoing General Fund resources to support a position to administer the Brownfield Property Tax Exemption program. On July 19, 2017, City Council passed Resolution 37307, which directed the Bureau of Environmental Services (BES), the Bureau of Planning and Sustainability (BPS), and Prosper Portland to evaluate development of a Brownfield Property Tax Cleanup Incentive that would benefit the City.6 According to Prosper Portland, the administrative position would evaluate projects, process applications, provide receipts, monitor remediation, engage with property owners, and perform annual follow-ups. Current estimates are based on a 2012 Brownfields Assessment Report[2] which concluded that a property tax exemption program could generate approximately $42.0 million in annual tax revenues for the City of Portland as well as 31,000 new jobs in the City, while also citing Prosper Portland as the likely administrator of the program. BPS is commissioning an updated fiscal impact study to determine the expected tax revenue generated over a 10 to 20-year time frame which will be available in March 2018. Prosper Portland requests $150,000 in ongoing resources to support 1.0 FTE to implement the Brownfield Property Tax Exemption program. Given that the likely time horizon of the program is at least 15 years, funding this ongoing request at $150,000 per year will be at least a $1.5 million investment of General Fund resources for the administrative aspect alone. While this request is in accordance with FY 2018-19 budget guidance for ongoing resources as it will likely generate General Fund revenues and advance development in the City, CBO recommends further details on the scoping, updated costs, benefits, and impacts be put forward before providing ongoing funding. CBO Recommendation: $0
Small Business Technical Assistance (Tax & Financial Support) ZD_05, $100,000 The Small Business Growth program is part of Prosper Portland’s Inclusive Business
6 Resolution 37307 was passed in response to Oregon SB 4084, which authorizes certain local governments to adopt ordinance or resolutions that authorize property tax incentive programs, granting special assessment to Brownfields or exemptions to new and existing improvements and personal property on brownfields for a period of up to 10 years (with an additional period of up to five years based on locally adopted criteria) http://efiles.portlandoregon.gov/Record/11113891/ [2] Brownfield Property Tax Assessment Report 2012, https://www.portlandoregon.gov/bps/article/502821
Prosper Portland 7 March 6, 2018 Resource Network (IBRN). Through the IBRN, small businesses create and leverage partnerships as well as take advantage of a myriad of business services and resources provided by Prosper Portland.7 This package requests $100,000 in ongoing General Fund discretionary resources to provide year-round financial services for businesses in the IBRN, including tax preparation, market research, and accounting support for approximately 100 small businesses. The businesses are identified and referred through a network of eleven IBRN organizations (serving approximately 500 businesses a year) and through communication with business owners of color who have signed up on the Mercatus Platform (almost 200 business owners). Prosper Portland estimates that this funding would cover half the services being offered, as well as resources to expand a new pilot program for tax support. In prior years, this program was funded with one-time reserve funds from the Enterprise Zone program. Prosper Portland states that the 5% current allocation target reduction will impact how Enterprise Zone resources are allocated and whether any resources will be available to fund these services for fiscal year 2018- 19. Given limited General Fund Resources, CBO does not recommend funding at this time. CBO Recommendation: $0
Expansion of Neighborhood Prosperity Workforce Navigator ZD_06, $250,000 This ongoing request would fund workforce navigators in both St. Johns and Rosewood. Currently, Prosper Portland funds workforce navigators in the 42nd Avenue/Cully area in Northeast Portland and Jade District/Division-Midway area in southeast Portland. Since April 2015, Prosper Portland has teamed with Worksystems, Inc. to provide job placement assistance8 to approximately 660 individuals and have placed 24% of these individuals into jobs. Given the limited resources available, CBO does not recommended new ongoing resources, and recommends that Prosper Portland place its existing workforce navigators wherever demand is greatest. This would likely entail moving the existing navigators into different parts of the City somewhat frequently after they reach many of the available customers in a particular area. CBO does not recommend additional funding for this program in FY 2018-19. CBO Recommendation: $0
7 Prosper Portland: IBRN https://prosperportland.us/portfolio-items/inclusive-business-resource-network/ 8 Examples of services include resume review, interview coaching, job search assistance, and referrals to training programs
Prosper Portland 8 March 6, 2018 Traded Sector Inclusive Business Growth ZD_07, $133,500 This one-time request would fund three things: 1. Convening a traded sector diversity and inclusion seminar ($25,000) in which Prosper Portland would organize a one-day event focused on ways that small businesses can diversify their labor pool. 2. Establishing the Traded Sector Inclusive Innovation Fund ($50,000), which would provide grants to small businesses that agree to the conditions of a public benefit agreement that would promote certain hiring practices. 3. Creating a Traded Sector Inclusive Internship Fund ($58,500) that would fund internships and/or apprenticeships for youth from underrepresented backgrounds. Prosper Portland’s strategic plan states that “The goal of this plan is to achieve widely shared prosperity among all residents of Portland by harnessing and expanding PDC’s tools for job creation, placemaking, and economic opportunity.” To the extent that the above programs are more aligned with the long-term vision for the organization than other current activities, CBO recommends that resources be realigned to support the organization’s stated goals. As already noted, there are limited resources in this budget cycle. CBO does not recommend providing new funding for this initiative. CBO Recommendation: $0
Expansion of Mercatus – My People’s Market ZD_08, $100,000 This ongoing request would allow Prosper Portland to continue to provide entrepreneurs with six community learning events and two community marketplace events. Prosper Portland used existing resources to fund this program in FY 2017-18. Mercatus is a web-based networking platform for entrepreneurs of color. The most recent market featured more than 80 businesses and drew roughly 1,000 people. Mercatus and the subsequent markets serve a historically disadvantaged community of entrepreneurs. Due to a lack of available funds, CBO does not recommend funding at this time. However, CBO recommends that Prosper Portland continue this program as they have with existing resources in FY 2017-18, especially given the equity benefits. CBO Recommendation: $0
Staff Increase for Neighborhood Prosperity Network ZD_09, $175,000 This ongoing expense would help fund district administration and overhead in each of the seven neighborhood prosperity districts. Each NPI has a District Manager
Prosper Portland 9 March 6, 2018 funded with ongoing General Fund. Additional support for these districts has come from AmeriCorps funding, but Prosper Portland asserted that funding is no longer available. This funding would replace the lost AmeriCorps volunteers. There are not clear performance outcomes associated with this request. Given the limited resources and unclear impacts, CBO does not recommend funding this package. CBO Recommendation: $0
Venture Portland Catalytic Initiative (Grants & Technical Assistance) ZD_10, $200,000 Venture Portland proposes expanding its Catalytic Investment Initiative which provides personalized assistance to address issues businesses face including affordability, and displacement. This request for $200,000 in ongoing General Fund discretionary resources will expand the East Portland Catalytic Investment pilot program to include two targeted business districts in North Portland – Kenton and Williams. Personalized technical assistance for each participating business district involves a part-time (10 hours per week) staffer volunteering at each business district, assisting with grant applications, program evaluations, grant project implementation, maintaining member databases, implementing membership campaigns, activities that increase membership (canvassing, distributing newsletters, marketing emails), and creating district promotional materials.9 Public funds support the programs administrative costs (staffing, grants). In-district programming resulting from the staffing and grants is funded with private matching dollars which will be nearly $300,000 in fiscal year 2017-18, a 1.5-to-1 match. The program reports that, as of December 31st, 2017: ▪ Participating business districts had 350 members, a 36% increase over FY 16-17, ▪ 97 leaders on all-volunteer business district boards contributed 3,291 volunteer hours, nearly double the prior year. ▪ Participating business districts have generated $78,543 in new funds. The Catalytic Investment Initiative was launched in 2015, receiving $99,999 in the FY 2014-15 Spring Supplemental Budget process. In FY 2017-18, Venture Portland received $166,000 for the Catalytic Initiative, which the organization states were insufficient to fully implement the program. As such, the pilot was limited to six East Portland neighborhood business districts: 82nd Ave, Foster, Gateway, Lents, Midway, and Parkrose. This package requests resources to fully fund the program on an ongoing basis, which Venture Portland estimates to be a three to five-year
9 http://ventureportland.org/catalytic-investment-initiative/
Prosper Portland 10 March 6, 2018 timeframe. CBO does not recommend this request given that this program does not accord with FY 2018-19 budget guidance which directed a focus on housing, infrastructure, public safety, and innovation. CBO Recommendation: $0
Healthcare Cluster ZD_11, ($142,240) City Council opted to fund Prosper Portland’s proposal to support a new industry cluster as part of its economic development work for the first time in the FY 2017- 18 budget. Thus far, Prosper Portland has not hired the position nor advanced on this initiative with existing personnel. Given the need for the City to balance the ongoing budget while meeting multiple priorities, CBO recommends accepting this cut proposal. CBO Recommendation: ($142,240)
Venture Portland ZD_12, ($16,826) Venture Portland provides training and technical assistance to business district leaders and funding assistance for district projects through grants and leveraged private investments. This package proposes reducing the pass-through amount to Venture Portland by $16,826, which represents 5% of the Prosper Portland’s allocation to Venture Portland and 3.3% of Venture Portland’s budget allocation from the City for FY 2018-19. To absorb this reduction, Venture Portland will either reduce staff by 0.5 FTE or reduce small business investment by $6,000. Currently, Venture Portland has 3.75 FTE (five employees). Given the limited staffing, a reduction of 0.5 FTE would have a significant impact on operations. Additionally, the positions that would be cut generate revenue for the program, compounding the budgetary impact of this reduction. Venture Portland offers grants twice a year, which range from $1,000 to $10,000 depending on the grant type. In FY 2017-18 Venture Portland provided $73,017 in grant awards which the program reports to have leveraged $454,130 in private funding. In addition to providing grant funds to business districts, Venture Portland offers trainings, workshops, and fee-for-service programs. Venture Portland has nine training sessions and three workshops planned for this fiscal year and has not yet released the course catalogue for 2018-19 fiscal year.10 If funding for Venture Portland is cut, the program will not be able to meet increased demand for services, which are reported to be a 25% jump over the
10 Venture Portland Training and Workshop catalogue 2017-18, http://ventureportland.org/wp- content/uploads/2017/08/VenturePortland_CourseCatalog_2017-2018.pdf
Prosper Portland 11 March 6, 2018 prior year. Given limited ongoing General Fund Resources, CBO recommends this cut recognizing that it may be difficult for the program to maintain current service levels. To that end, CBO recommends reducing the small business investment efforts by $6,000 rather than reducing staff. CBO Recommendation: ($16,826)
Alberta Main Street ZD_13, ($33,000), 0.0 FTE The Portland Main Street program began in 2010 based on the Urban Main Street program model, which focuses on the revitalization of commercial districts by building off their unique assets and character. Alberta Main Street is one of eight districts in Prosper Portland’s Main Street Network and NPI program. During the eight years that Alberta Main Street has participated, the district has achieved the many of the goals of the Main Street program. This reduction package eliminates an administrative and operating grant of $30,000 and the promotional grant of $3,000, for a total reduction of $33,000 for the Alberta Main Street district. The grant contract between Alberta Main Street and Prosper Portland states that FY 2017-18 would be the last year that Alberta Main Street is included in the NPI and Main Street Network. Given the number of competing priorities this fiscal year, the success of the Alberta Main Street district, and limited ongoing General Fund resources, CBO recommends this cut. CBO Recommendation: ($33,000)
Workforce Development Training ZD_14, ($23,121) This package would eliminate services to approximately 12 workforce training participants per year through Prosper Portland’s partner Worksystems, Inc. Among the varied opinions express by Prosper Portland’s budget advisory committee, there was some consensus on the need for workforce development, especially vis- à-vis Prosper Portland’s traded sector economic development work. Due to the relatively small dollar amount, as well as concerns around the potential equity impacts, CBO does not recommend this cut package. CBO Recommendation: $0
Small Business Working Capital Micro Loans ZD_15, ($52,838) This package would eliminate the ongoing support for small loans – the average of
Prosper Portland 12 March 6, 2018 outstanding loans is $1,500 – to very small businesses, the majority of which are owned by persons of color and/or women. The program has been administered by Micro Enterprise Services Organization (MESO) and currently has $83,802 available for loans. Though this is a program, it does have available resources given its structure as a revolving loan pool (i.e., as firms pay back loans, those funds can then be lent again). To the extent that demand for these funds exceeds money available for lending, Council should consider using one-time resources to increase lending capacity. However, due to limited resources and the needs in other City services, CBO recommends accepting this cut package. CBO Recommendation: ($52,838)
Prosper Portland 13 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of Prosper Portland’s total General Fund budget. Prosper Portland’s General Fund budget represents 6% of its total annual budget of $105 million.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources General Fund Discretionary $ 6,021,910 $ 5,667,502 $ 1,536,595 $ (1,539,259) $ 5,664,838 Total Resources $6,021,910 $5,667,502 $1,536,595 ($1,539,259) $5,664,838
Requirements External Materials and Services $ 6,021,910 $ 5,667,502 $ 1,536,595 $ (1,539,259) $ 5,664,838 Total Requirements $6,021,910 $5,667,502 $1,536,595 ($1,539,259) $5,664,838
Prosper Portland 14 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Prosper Portland Adds
ZD_01 - Small Business Growth Program 01 0.00 275,000 0 0 275,000 0.00 0 100,000 0 100,000 ZD_02 - Div St Business and Comm Supp. 02 0.00 0 350,000 0 350,000 0.00 0 0 0 0 ZD_03 - Portland Film Office 03 0.00 0 71,120 0 71,120 0.00 0 142,240 0 142,240 ZD_04 - Brownfield Propert Tax Exemption Program Ad 04 0.00 150,000 0 0 150,000 0.00 0 0 0 0 ZD_05 - Small Business Technical Asst.-Tax & Fin. Sup 05 0.00 100,000 0 0 100,000 0.00 0 0 0 0 ZD_06 - Exp Neighborhood Prosperity Workforce Navi 06 0.00 250,000 0 0 250,000 0.00 0 0 0 0 ZD_07 - Traded Sector Inclusive Business Growth 07 0.00 0 133,500 0 133,500 0.00 0 0 0 0 ZD_08 - Expansion of Mercatus 08 0.00 100,000 0 0 100,000 0.00 0 0 0 0 ZD_09 - Staff Increase Neighborhood Prosperity Netwo 09 0.00 175,000 0 0 175,000 0.00 0 0 0 0 ZD_10 - Venture Portland Catalytic Initiative 10 0.00 200,000 0 0 200,000 0.00 0 0 0 0 Total Adds 0.00 1,250,000 554,620 0 1,804,620 0.00 0 242,240 0 242,240 Reductions
ZD_11 - Healthcare Cluster Reduction 01 0.00 (142,240) 0 0 (142,240) 0.00 (142,240) 0 0 (142,240) ZD_12 - Venture Portland 02 0.00 (16,826) 0 0 (16,826) 0.00 (16,826) 0 0 (16,826) ZD_13 - Alberta Main Street 03 0.00 (33,000) 0 0 (33,000) 0.00 (33,000) 0 0 (33,000) ZD_14 - Workforce Development Training 04 0.00 (23,121) 0 0 (23,121) 0.00 0 0 0 0 ZD_15 - Small Business Working Capital Micro Loans 05 0.00 (52,838) 0 0 (52,838) 0.00 (52,838) 0 0 (52,838) Total Reductions 0.00 (268,025) 0 0 (268,025) 0.00 (244,904) 0 0 (244,904)
Total Prosper Portland 0.00 981,975 554,620 0 1,536,595 0.00 (244,904) 242,240 0 (2,664)
Prosper Portland 15 March 6, 2018 Prosper Portland 16 March 6, 2018 Budget Review | Fiscal Year 2018-19
Bureau of Planning & Sustainability Analysis by Aaron Kaufman
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $22.6 $25.0 M $21.1 $21.8 $19.8 $18.7 $20.0 M $17.3
$15.0 M
$10.0 M
$5.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
97.0 FTE 97.0 FTE 93.0 FTE 97.0 FTE 106.0 FTE 101.0 FTE
INTRODUCTION To meet the 5% reduction target required by the Mayor's budget guidance, the Bureau of Planning & Sustainability (BPS) has proposed the elimination of three positions related to housing projects. Additionally, BPS is requesting resources to fund four housing related projects, expand its Historic Resource Inventory project, coordinate equitable development in East Portland, and support a Smart Cities Equity Advisory Group. KEY ISSUES Operating Projects - Transparent Budget Decisions The Bureau of Planning and Sustainability is transitioning from development to the implementation of the 2035 Comprehensive Plan. BPS, therefore, has a variety of
Bureau of Planning & Sustainability Page 1 of 14 March 6, 2018
planning related projects to prioritize. Reducing or increasing staff will affect the bureau’s capacity to deliver these projects, ultimately either lengthening or shortening the timelines or shrinking or increasing the scopes. Clarifying the trade-offs associated with project scope and schedule – and thus the appropriate level of staffing for the bureau – is highly dependent on understanding the granular nature of the workplan. However, unlike capital projects that are budgeted explicitly and inclusive of staff costs, BPS has not utilized this granular project budgeting to facilitate the trade-off discussion and establish clear expectations around scope, schedule, and cost prior to project initiation. While the bureau may have internal tracking mechanisms for project budgets and schedules, CBO recommends BPS utilize the “Operating Projects” function within the BRASS budgeting system. This will allow BPS and Council to more transparently track budget and actuals for BPS projects, therefore enabling Council to better identify tradeoffs associated with staffing decisions. An example of the difficultly in discussing trade-offs is discussed in BPS’ 5% General Fund cut package review (PN_05). Solid Waste Management Fund - General Fund Implications The Bureau of Planning and Sustainability’s programs are funded by the General Fund, Grants Fund, Community Solar Fund, and Solid Waste Management Fund (SWMF). The bureau’s planning activities are primarily supported by General Fund and BDS revenue for code development, and sustainability programs are funded through a combination of grant resources, SWMF, and some General Fund resources. Solid Waste Management Fund Reserves Revenue for the Solid Waste SWMF Revenue Budget to Actual Management Fund has Difference consistently generated an average revenue of nearly $600,000 higher $847K than projected, largely due to the $730K $738K continued economic expansion $627K $597K (see chart to the right). This will contribute to an estimated ending $450K $432K fund balance of $4.1 million in FY $357K 2017-18. The bureau plans to substantially draw-down these reserves to pay for one-time costs related to public trash can program expansion. FY 11 FY 12 FY 13 Fy 14 FY 15 FY 16 FY 17 Average
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SWMF Ending Fund Balance in Decline In FY 2022-23, the ending fund balance is projected to draw $4.20M $4.12M $3.83M down to $777,595, which is $3.44M $3.50M near its reserve requirement of $2.89M $500,000 (see chart to the left). This forecast includes a $1.75M scheduled commercial tonnage Reserve fee increase of $1.30, a nearly Requirement: $777K $500,000 14% increase in FY 2020-21. BPS projects the ending fund balance will stabilize after year FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 five. Sustainability Programs The Solid Waste Management Fund, in accordance with its statement of purpose, supports the Bureau’s “Solid Waste and Recycling, Green Building, and Sustainable Education and Assistance programs.” These programs include the Public Trashcan program, Green Building and Development, Multifamily and Event Recycling, Fix-it Fairs, Residential Outreach, Portland Recycles, Clean Energy, and Climate Policy and Planning. Of these programs, CBO notes that the Clean Energy and Climate Policy & Planning programs are subsidized through a significant amount of General Fund resources, a total of $797,079 across both programs (See the chart below for funding sources and amounts). The Solid Waste Management Fund contributes a smaller, yet significant portion of program funding for these two programs. Funding Sources for SWMF/GF Programs
$298K $219K $322K
Climate Policy & Planning
$499K $40K $72K $98K
Clean Energy
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
General Fund Grants Community Solar Solid Waste
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A nexus between these programs SWMF Ending Fund Balance and solid waste revenue has been $5 M previously established. It may be possible, therefore, to reallocate $4 M the General Fund from these $3 M programs while increasing the portion funded by SWMF. This will $2 M increase the rate of ending fund $1 M balance draw-down. The chart to the right shows the results of $0 M FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 reallocating 100% ($797,079) and Current Ending Fund Balance 100% GF Reallocation 50% ($398,539) of general fund 50% GF Reallocation Contingency Minimum Balance contributions on the ending fund balance. Increasing the SWMF contribution will require BPS to adjust their five- year plan to maintain the $500,000 contingency minimum. CBO recognizes that there are restrictions on SWMF revenue, and that some ongoing General Fund subsidy is likely required to keep a bright line between allowable uses. Given limited ongoing General Fund resources, the bureau may need to consider tradeoffs between maintaining current program funding allocations and reallocating General Fund contributions to other priority areas. Interagency Revenue In addition to serving city-wide interests, the Bureau of Planning and Sustainability provides specialized services for multiple bureaus including PBOT, PBEM, PHB, BES and others. These services enhance the ability of partner bureau's to successfully reach their goals. Direct funding for some of these services, such as transportation planning in partnership with PBOT, or river/environmental planning with BES, would increase transparency and conforms with CBO's recommendation related to Operating Projects. Land Use Revenue Stabilization In the FY2017-18 Adopted Budget, Council issued a budget note directing the City Budget Office, the Bureau of Development Services, and the Bureau of Planning & Sustainability to develop a long-term funding plan for necessary code development and revision work using Land Use revenue. Additionally, annual work plans and funding amounts for BDS and BPS should be included in the budget process for Council consideration. In January 2018, BPS and BDS reached an agreement to partially fund BPS code development work in FY2018-19 and beyond. The goal of this agreement is to stabilize BPS’ code development revenue from BDS’ Development Services Fee. BPS will receive $1.3 million from BDS in FY2018-19 and will receive 35% of
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Development Services fee revenue set at prior year actual levels. Forecasted revenue is included in the chart below.
BPS IA Revenue Stabilizes with New 35% Development Services Fee Agreement
$1.36M $1.41M $1.3M $1.27M $1.28M $1.34M
$716K
$247K $247K $258K $29K
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 <-- Before IA After IA -->
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DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
$768,698 General Fund General Fund Other Revenues Ongoing One-Time
$(436,241) $(436,241)
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE (3.0 FTE 5.0 FTE Requested (3.0 FTE Requested) Recommended Recommended)
General Fund Ongoing Cut PN_05, ($436,241), (3.00 FTE) To meet the 5% General Fund ongoing cut target, BPS has proposed eliminating two vacant Planning Assistant positions and a Senior Planner ($356,856) and contract funding ($79,358), thereby reducing the bureau’s capacity to deliver planning projects. The specific, near-term impacts identified by the bureau include the postponement of housing related projects intended to address the current housing emergency. These projects include (1) addressing barriers to shelter for extremely low-income households and individuals, (2) preservation of middle housing in SE Portland, and (3) Macadam Plan District update. Details of these projects can be found in the review of PN_01 below.
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BPS maintains a nimble staffing model Percent of General Fund Spending that allows generalist planning staff to work on a variety of projects. This 99.95% flexibility provides BPS with the 100% 98.56% 96.97% discretion to internally prioritize planning 98% 96.03% 96% projects, which require differing levels of 93.89% 94% staffing and contract funding. BPS’s 92% average General Fund spending has been 90% lower than normal since the transition 88% from 2035 Comprehensive Plan FY 13 FY 14 FY 15 FY 16 FY 17 development to implementation in early BPS Total Average FY 2016-17 (see chart to the right), possibly as a result of the bureau adjusting to the types of projects that will be needed to implement the Comprehensive Plan. Even though the bureau may have capacity to absorb this reduction looking at historical spending, the bureau believes it would need to cut the projects noted above. Accepting this cut package would reduce the bureau’s total planning staff by three FTE from 40.46 to 37.461, a 7.41% reduction. Comparatively, BPS had 38.75 FTE for planning in the FY 2017-18 Adopted Budget. To the degree that Council wishes for the bureau to move forward with these housing-related projects, given the current state of housing emergency, BPS could be directed to reprioritize existing scopes, schedules, and costs of other projects to accommodate the housing projects. Due to these reasons, and Citywide ongoing funding constraints, CBO recommends the 5% General Fund ongoing reduction. As discussed, this reduces the overall capacity of BPS to deliver planning projects, and CBO recommends this be the main topic of discussion at BPS’s budget work session. Finally, as noted above CBO recommends that BPS start using the “Operating Projects” function within BRASS in order for BPS and Council to more transparently set appropriate staffing levels. CBO Recommendation: ($436,241) | (3.00 FTE)
Increase the Supply and Range of Housing, Affordability, and Shelter PN_01, $503,698, 3.00 FTE2 This decision package provides personnel and professional services funding to
1 Total Planning FTE includes positions funded through an IA with BDS for code development work. See the “Land Use Revenue Stabilization” key issue for more information. 2 The total cost for this package is dependent on the status of the bureaus General Fund ongoing cuts. If the bureau’s ongoing General Fund is cut by 5%, this package will require $503,698 in one-time funding. However, if the General Fund is not cut, this package will require $351,000. The difference in cost is primarily due to the replacement of a Senior Planner (1.0 FTE) lost to the GFOG cut.
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initiate or complete the four housing related projects detailed below. Included are the three projects the bureau has submitted as part of its 5% ongoing General Fund reduction package. These projects represent the type of work that is a priority for BPS and the City: increasing housing options and reducing homelessness from a systematic perspective. While the Portland Housing Bureau and the Joint Office for Homeless Services focus on site-based, income-restricted development projects and human services interventions, BPS’ projects focus on the broader housing ecosystem. This is described as creating a holistic approach to the housing emergency within the City. BPS originally submitted this decision package for one-time funding, but requested that it be changed to ongoing to better match the Mayor’s priorities. While this is true for these projects, CBO notes that it is unclear what projects this ongoing funding will support after FY 2018-19. CBO recommends this decision package remain a one-time request until BPS receives level of service guidance, or project pacing direction, from Council. SW Corridor Housing and Mixed-Use Development Sites ($80,000 – 0.00 FTE) In FY 2017-18, BPS staff will complete the SW Corridor Equitable Housing Strategy, which helps meet affordable housing, density, equity, and transit objectives set by the 2035 Comprehensive Plan. Funding is requested for consultant services to assess sites for affordable housing development along the proposed light rail line. This funding request builds upon previously funded work, and leverages affordable housing opportunities around public transit on SW Barbur Blvd. The light rail line through the SW Corridor is estimated to be open in 2027, but affordable housing built along SW Barbur Blvd will be serviced by TriMet’s #12 frequent service bus line. Regarding equity, this package focuses on the Hillsdale and Multnomah Village neighborhoods. While these neighborhoods score low vulnerability and moderate opportunity on the BPS’ Opportunity/Vulnerability Matrix, these neighborhoods represent some of the only affordable housing opportunities on the West side. Addressing Barriers to Shelter for Extremely Low-Income Households ($80,000 – 0.00 FTE) This project would fund a study to reduce regulatory and other barriers to shelter and housing3 for extremely low-income and households experiencing homelessness. Potential results of this project may include clearing regulatory barriers (e.g., building and zoning codes) while addressing humanitarian needs (e.g., water and sanitary services) for shelter villages like “Village of Hope.”4 BPS
3 Shelter and housing types include mass shelters, tent campgrounds, villages of shelter pods, single-room-occupancy buildings, tiny houses on wheels and RVs, and smaller manufactured homes and ADUs. 4 http://www.kgw.com/article/news/local/homeless/portlands-village-of-hope-homeless-camp-cleared-out/283- 513939198
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expects to utilize the study’s results to prioritize the most effective and efficient regulatory changes in upcoming years, which may require additional funding. Funding this project would allow BPS to dedicate staff capacity and consulting services to address the housing crisis at a more systematic level. BPS, with its long- term planning and regulatory expertise, indicates that it is uniquely positioned to address long-term barriers. In addition to the City’s current and prior homeless services projects, the project is intended to provide the City with a comprehensive set of tools to address the housing emergency. BPS expects to build upon its work with the Joint Office of Homeless Services in FY 2016-17 and will take a leadership role while working with other bureaus including PHB, BDS, and BES to pursue deliverables including legislatively-adoptable code changes. Previous examples of this work include removing barriers to locating mass shelters. Preservation of Middle Housing in SE Portland ($55,000 – 1.00 FTE) The 2035 Comprehensive Plan has identified middle housing as a critical piece of the housing supply for Portland to meet goals including density, housing affordability, and equitable access to complete neighborhoods. Middle housing is defined as in-between single-family houses and larger, multi-family buildings. These buildings usually include duplexes, triplexes, small apartment complexes, bungalow courts, and ADUs. Funding for this project includes 1.00 FTE for a Planning Assistant. This project seeks to preserve middle housing units, which are often non-conforming under current codes, and are increasingly at risk of being lost to conversion or redevelopment. Funding this project will produce zoning code and/or map changes that will reduce regulatory complications that often force property owners to convert or redevelop multi-family structures into single-family residences. Preserving middle housing is part of BPS’ broader strategy to increase housing supply in the City. Delaying this project may result in the continued loss of roughly 20 units of middle housing units per year. Update of the Macadam Plan District ($288,000 – 2.00 FTE) Funding for this project includes 2.00 FTE for a Planning Assistant and Senior Planner. This project updates the 30-year old Macadam Plan District to increase the likelihood of new housing developments in high-opportunity locations, complete communities, and along civic corridors in accordance with the 2035 Comprehensive Plan. The project area, along SW Macadam Avenue, currently has floor-area-ratio (FAR) and height limits that may make development of inclusionary housing financially unappealing. This project may produce comparable results to the Interstate Avenue development area. Additionally, the Portland Streetcar supports the Macadam update as it considers expanding service to Johns Landing. Increasing development allowances in this strategically located area near the
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Central City align with three of BPS’ Key Performance Measures. ▪ PN_0020 Percentage of new housing units in the four-county region that are within the City of Portland: Updating zoning and codes along Macadam Ave may encourage development within the City instead of suburban sites.
▪ PN_0021 Percentage of Portlanders living in complete neighborhoods: Encouraging affordable housing along transit corridors increases options for residents to live in “complete neighborhoods.” The area surrounding SW Barbur Blvd. is currently rated between “moderate accessibility” and “best accessibility” related to transit. Proximity to transit may reduce transportation costs, and, therefore, may lower overall cost of living.5
▪ SD_0008 Percentage reduction in per person carbon emissions from 1990 levels: Focusing new development along transit corridors reduces reliance on carbon-emitting vehicles.
While these projects align with the Mayor’s priorities, due to Citywide ongoing budget constraints, CBO does not recommend this decision package. To the extent these projects are a bureau or Council priority in FY 2018-19, the City should explore delaying other projects in order to ensure this work moves forward in a timely manner. CBO Recommendation: $0, 0.00 FTE
Take Steps to Achieve Equitable Growth and Development in East Portland PN_02, $135,000, 1.00 FTE This decision package requests one-time funding for 1.00 FTE at $55,000 for a Limited-Term Planning Assistant and $80,000 for consulting services to undertake a review of the City’s community development strategies for East Portland. The Portland Housing Bureau, Prosper Portland, the State, TriMet, and other organizations have increased focus on East Portland with actions and investment related to community development, transportation, transit, and parks. This package will support an assessment of conditions and trends in East Portland to determine how public agency efforts combine to advance community development objectives. The Planning Assistant and consulting services will be used to improve coordination among public agencies, therefore, is intended to create efficiencies with public resources.
5 “My Portland Plan: What Makes a Neighborhood Complete?” http://www.portlandonline.com/portlandplan/?a=437441
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This package has significant equity considerations. East Portland is comprised of neighborhoods with a higher share of communities of color. These neighborhoods are ranked as having high vulnerability and low opportunity according to BPS’s Opportunity/Vulnerability Matrix (See excerpt to the right). As a historically underserved area of the City, coordinating efforts of multiple agencies may help to redirect the opportunity/vulnerability trend. While many organizations are focusing on East Portland, Council may alleviate some concerns raised by this project by directing the Portland Housing Bureau and Prosper Portland to ensure future actions align with the 2035 Comprehensive Plan. Due to Citywide one-time budget restraints, CBO does not recommend this package. CBO Recommendation: $0, 0.00 FTE
Build a More Diverse and Usable Historic Resource Inventory (HRI) PN_03, $80,000, 1.00 FTE This package requests ongoing (initially submitted as one-time) funding for 1.00 FTE ($55,000) for a Planning Assistant and limited consulting contracts ($25,000) to continue to modernize and expand the Historic Resource Inventory (HRI). This package will build upon work in FY 2016-17 completed with one-time funding that produced a report that identified best practices to be incorporated into the HRI, therefore increasing its efficiency and effectiveness. Specifically, this package is intended to address equity gaps in the HRI such as the lack of documentation of historic resources east of 82nd Avenue as well as other historic resources associated with ethnic, gender, social, and LGBTQ history. The City has experienced significant changes since the HRI was last updated in 1984, and this package intends to focus on equity by prioritizing the types of properties listed above. While, the preservation of these resources may have a positive cultural equity impact, CBO notes, however, that historic designations may place barriers on redeveloping or remodeling homes to accommodate people with disabilities. Regarding housing, preserving historic resources may serve to enhance livability by maintaining the current “feel” of neighborhoods, and BPS has indicated continued neighborhood disruption may result in opposition to housing growth. Other
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factors, however, may have a negative impact on housing and livability. Studies have indicated that historic resource designation typically raise the value of the designated property and surrounding property6, which may exacerbate already rapidly rising housing costs in Portland. By focusing on East Portland, this project may increase property value, and therefore housing costs, for communities previously displaced from higher priced neighborhoods. Furthermore, historic designations create barriers that prevent properties from being redeveloped into multi-unit structures. These new, or significantly remodeled, units are often much more energy efficient than the older, historic buildings. This hinders BPS’ Key Performance Measures, including the percentage of new housing in the four-county region that are within the City and the percentage reduction in per person carbon emissions. Therefore, CBO recommends that Council have a comprehensive policy discussion about the impact of historic designations on housing affordability before expanding this effort. CBO does not recommend this decision package at this time. CBO Recommendation: $0.00, 0.00 FTE
Advance Equity Through Smart Cities Initiatives PN_04, $50,000, 0.00 FTE This package provides one-time funding to pay stipends to Equity Advisory Group members. BPS is hoping to recruit 6-8 members with an annual stipend of $4,000 to $5,000. This funding also supports an outside consultant to develop a charter, processes, and protocols for the group’s operation. Public engagement including boards, commissions, and advisory groups, occurs throughout the City of Portland; however, members typically do not receive payment. BPS has indicated that they have had limited experience paying participants, but the results have been positive. Paying stipends to community members is designed to reduce barriers to participation and to address the concern of “engagement fatigue” (i.e., individuals or groups who are engaged repeatedly by multiple agencies for feedback). CBO expresses concern regarding the payment of specific individuals or groups to participate in advisory groups. CBO recommends that, prior to consideration of funding this particular request, City Council consider the Citywide implications of this program and make a clear policy determination regarding whether or not such payments are appropriate, and to determine if alternative solutions to promote participation are viable. CBO does not recommend this decision package. CBO Recommendation: $0.00, 0.00 FTE
6 Ijla, A. (2008). “The Impact of Local Historic Designation on Residential Property Value; an Analysis of Three Slow-Growth and Three Fast-Growth Central Cities in the United States.” Cleveland State University.
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SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of the Bureau of Planning & Sustainability’s total budget. On the revenue side, the FY 2018-19 budget reflects funding levels with the new interagency agreement with BDS, which provides a stable revenue source for code development work. This budget also reflects continued significant revenue collection from Licenses & Permits and Charges for Services into the Solid Waste Management Fund, which, if trends hold, will likely see collection amounts above budget projections. On the expenditures side, BPS is seeing higher expenses related to the pubic trash can program.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance$ 3,652,316 $ 4,181,170 -$ -$ $ 4,181,170 Taxes - - - - - Licenses & Permits 2,995,133 3,110,704 - - 3,110,704 Charges for Services 3,002,909 3,372,595 - - 3,372,595 Intergovernmental Revenues 1,323,253 1,347,434 - - 1,347,434 Interagency Revenue 1,325,850 1,397,000 - - 1,397,000 Fund Transfers - Revenue - - - - - Bond and Note - - - - - Miscellaneous 92,423 118,144 - - 118,144 General Fund Discretionary 7,910,226 7,953,184 332,457 (768,698) 7,516,943 General Fund Overhead 759,035 801,015 - - 801,015 Total Resources $21,061,145 $22,281,246 $332,457 ($768,698) $21,845,005
Requirements Personnel Services $ 12,285,597 $ 13,201,095 $ 6,842 $ (363,698) $ 12,844,239 External Materials and Services 2,613,468 2,956,623 315,615 (395,000) 2,877,238 Internal Materials and Services 2,362,894 1,833,894 10,000 (10,000) 1,833,894 Capital Outlay - - - - - Bond Expenses 67,638 72,419 - - 72,419 Fund Transfers - Expense 193,278 197,455 - - 197,455 Contingency 68,293 121,851 - - 121,851 Unappropriated Fund Balance 3,469,977 3,897,909 - - 3,897,909 Total Requirements $21,061,145 $22,281,246 $332,457 ($768,698) $21,845,005
Bureau of Planning & Sustainability Page 13 of 14 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Bureau of Planning & Sustainability Adds PN_01 - Increase Housing Supply, Options & Affordability01 3.00 0 503,698 0 503,698 0.00 0 0 0 0 PN_02 - Achieve Equitable Development in East Portland02 1.00 0 135,000 0 135,000 0.00 0 0 0 0 PN_03 - Build Modern Diverse Historic Resource Inventory03 1.00 0 80,000 0 80,000 0.00 0 0 0 0 PN_04 - Advance Equity Through Smart Cities Initiatives 04 0.00 0 50,000 0 50,000 0.00 0 0 0 0 Total Adds 5.00 0 768,698 0 768,698 0.00 0 0 0 0 Reductions PN_05 - 5% GFOG reduction 01 (3.00) (436,241) 0 0 (436,241) (3.00) (436,241) 0 0 (436,241) Total Reductions (3.00) (436,241) 0 0 (436,241) (3.00) (436,241) 0 0 (436,241) Total Bureau of Planning & Sustainability 2.00 (436,241) 768,698 0 332,457 (3.00) (436,241) 0 0 (436,241)
Bureau of Planning & Sustainability Page 14 of 14 March 6, 2018 Budget Review | Fiscal Year 2018-19 Portland Police Bureau
Analysis by Katie Shifley
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $250.0 M $229.6 $220.1 $211.3 $201.1 $190.1 $177.5 $200.0 M
$150.0 M
$100.0 M
$50.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
1171 FTE 1188 FTE 1226 FTE 1246 FTE 1331 FTE 1253 FTE1
INTRODUCTION The Portland Police Bureau (PPB) continues to face challenges in patrol staffing due to high numbers of officers on probation and increasing calls for service. These patrol staffing issues have led to declining response times and reduced time spent on proactive policing. In addition to a request for a 60-officer training pool, the bureau also requested new resources to augment its community policing efforts, for technology investments, and new resources for relocation of the Central Precinct and other facilities improvements. Proposed reductions include the
1 FY 2018-19 Requested and Recommended FTE totals above do not tie to the budgeting system. They have been adjusted upward to by 13.0 FTE to account for authorized Community Service Officer Program positions that have not yet been through Human Resources approval processes. There are also a number of expiring limited term positions not reflected in these totals.
Portland Police Bureau 1 of 38 March 6, 2018 transfer of multiple officers to revenue-backed Transit positions, and the elimination of substantial discretionary overtime resources, among others. KEY ISSUES Staffing and Workload: Calls for Service and Crime Levels Background Staffing issues within the Portland Police Bureau (PPB) have been a critical issue for the bureau for many years, and there are several factors that impact this issue: recruitment and hiring, attrition, number of officers available for patrol, use of overtime, and overall officer workload.
Following the elimination of 50 officer positions in FY 2013-14 – which was managed through attrition following the City’s hiring freeze in FY 2012-13 – the bureau reduced its focus on recruitment and hiring. The bureau struggled to restart its recruitment and hiring process in time to fill vacancies and manage the impact of continued attrition, given the 18+ month average time required to hire and train a new a new officer. However, with new pay incentives, additional recruitment and hiring support through civilianization of the backgrounding process, and effective process improvements, the bureau has made significant improvements in its recruitment and hiring over the last two years. The bureau hired almost three times as many officers in FY 2016-17 as compared to FY 2015- 16, and the bureau expects to approach full staffing by hiring as many as 70 additional officers in the current fiscal year. However, the combination of expected retirement spikes in FY 2018-19 and FY 2020-21 suggest that the bureau will continue to experience a high ratio of officers on probation relative to overall authorized positions. For the next several years, this issue will continue to have a negative impact on PPB’s performance measures and hamper the bureau’s ability to pivot toward a community policing model. The bureau’s top priority request, a 60-officer training pool, would increase the number of sworn positions by 60.0 FTE to 1,006 FTE – a 6.3% increase. The bureau has indicated that this is the first step of a multi-phase plan to request additional sworn positions in future years. This issue is explored in depth in PL_02, but the section below will address higher level workload and staffing trends facing the bureau. There is no easy answer to what is the ‘right’ number of sworn officers for Portland; the appropriate number of sworn positions will depend on the levels of service – in terms of response time, acceptable crime levels, community policing, and time reserved for proactive policing – that the City chooses to set. Calls for Service The total dispatched calls for service have been increasing in recent years. Over a five-year period, total call volume has increased by over 22% but has not been
Portland Police Bureau 2 of 38 March 6, 2018 matched by a commensurate increase in sworn staffing. In recent years, this trend has slowed somewhat, with the total number of incidents dispatched in FY 2016- 17, 252,230, increasing 1.5% from the previous year. While the total number of high priority calls has not increased much over the last several years, up only 6% from FY 2012-13, the increase in dispatched calls has been primarily driven by increases in low and medium priority calls2:
Calls for service are increasing, driven by low and medium priority calls
300,000
250,000
200,000
150,000
100,000
50,000
- FY 13 FY 14 FY 15 FY 16 FY 17
High Priority Calls Low and Medium Priority Calls
PPB’s Strategic Services Division performed an analysis of dispatched calls for services trends over the last six years using the following typology3: disorder, crime, traffic, and alarms. Over this time period, the increase in “disorder” calls for service dwarfed other call type increases, increasing by over 30,000 calls, or 32%.
Disorder call type increases were driven primarily by an increase in: ▪ Welfare checks – 55% increase in this call type, or about 10,000 additional calls ▪ Unwanted person – 64% increase in this call type, or about 10,000 additional calls ▪ Suspicious persons, cars, or circumstances – 50% increase in this call type, or 7,000 additional calls
2 PPB’s Strategic Services Division notes the following: high priority calls require multiple unit responses, so increases in high priority calls have a greater workload impact than lower priority calls. The priority assigned to call types/situations has changed over the reporting period, with call types previously coded as high priority changed to low/medium priority and inflating the growth of that priority group. Further, priority tends to be downgraded when there is no officer available to take the calls. 3 There are additional call type groups, but these represent the groups with the greatest change over time. Dispatch code usage tends to fluctuate, and is based on the discretion of BOEC call takes, which precludes more precise call type comparisons over time.
Portland Police Bureau 3 of 38 March 6, 2018 Within the “crime” call for service category, which generally increased less than disorder calls, the largest call increases were as follows: ▪ Stolen vehicles – a 97% increase in this call type, or about 5,000 additional calls
Within the “Traffic” category the largest increases was as follows: ▪ Traffic collision calls – a 32% increase in this call type, or about 4,000 additional calls
Increasing calls for service is a critical indicator of workload in PPB’s patrol function, and in an operational environment where very high numbers of officers are on probation, the increasing calls for service are putting pressure on the bureau’s ability to respond to low priority calls or otherwise spend time on proactive policing. The bureau has partially mitigated this increase in calls through the reassignment of specialty units (e.g. Traffic, Drugs and Vice) to patrol functions.
Response times for calls for service have been increasing in recent years across all priority types, including both the travel time and the amount of time a call is queued before an officer is dispatched:
Portland Police Bureau 4 of 38 March 6, 2018 Crime Rates
Data from a report from the Brennan Center4 shows that the overall crime rates in Portland today are low viewed over the past three decades, while the total PPB authorized sworn force has remained relatively flat viewed over the long term (969 sworn is the average since 1990). Property crime and aggravated assault – a proxy for violent crime – trends are shown below:
Portland property crime rates relative to sworn force 12,000 1,200
10,000 1,000
8,000 800
6,000 600
Crime Crime Count 4,000 400
2,000 200 Sworn Force Count
- 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Robbery Burglary Theft Motor Vehicle Theft Authorized Sworn Positions
Aggravated assault rate relative to sworn force 1,600 1200 1,400 1000 1,200 800 1,000 800 600 600 400 400 200 200 - 0
Aggravated Assault Authorized Sworn Positions
More recent crime data from PPB’s Open Data portal (which uses National Incident Based Reporting System (NIBRS) and is not directly comparable to the Uniform Crime Reporting (UCR) data and estimates above from the Brennan Center) shows
4 The Brennan Center report (and updated report) can be found here: https://www.brennancenter.org/analysis/crime-2017-updated-analysis
Portland Police Bureau 5 of 38 March 6, 2018 an uptick in crime, particularly in Person Crime and Property Crime. Only two full years of data are currently available for trend comparison due to the recent switch over in crime reporting methodology. Below is a chart that shows the percentage changes in the highest volume person, property, and societal crimes:
While crime is increasing relative to the prior year, it may be a reasonable assumption that the overall crime rate is still relatively low when viewed over a longer time horizon, albeit with sharp increases in certain types of crime relative to the prior year.
The increases in motor vehicle theft, intimidation, and burglary are particularly likely to affect residents’ perceptions of safety and overall fear of crime. Resident perceptions of crime are no longer surveyed since the elimination of the Auditor’s annual survey; CBO recommends that an annual resident survey be reconstituted in some format to continue to gather this essential data.
Non-sworn staffing changes At a high level, the bureau has been authorized additional non-sworn staff that have offset declines in sworn staffing resources. In some cases these non-sworn additions were required by the DOJ agreement, but for other positions, they represent the civilianization of work performed by sworn positions (i.e. background staff) in order to return those staff to patrol and specialty units, the addition of crime analysts to support policing efforts, and additional technology staff:
Portland Police Bureau 6 of 38 March 6, 2018
Reductions in the sworn force have been more than offset by increases to civilian positions 1400 1200 + 58 positions, + 24% 1000 800 600 - 41 positions, 400 -4% 200 0 2011 2012 2013 2014 2015 2016 2017
Authorized Sworn Positions Non-Sworn
Community Service Officer Program As part of the FY 2017-18 Adopted Budget, a new Community Service Officer (CSO) program was funded in the Police Bureau. The program, which included $1,159,293 in ongoing funding and 14.0 FTE positions (12 CSOs, a lieutenant, and a program officer), was created for the express purpose of reducing the pressure on patrol staff to respond to certain low priority and non-emergency calls, as well as other duties that do not have an enforcement component. As of February 2018, a lieutenant at the Training Division has been assigned responsibility for this program, and the position descriptions for CSOs are under development. At this time, the following core job duties are under consideration: ▪ Write police reports when there is no suspect information and no potential crime scene. ▪ Respond to non-injury traffic accidents to facilitate the information exchange between involved parties, facilitate ordering tows for disabled vehicles, direct traffic and provide DMV reporting information for the involved parties. ▪ Conduct follow up on property crimes, where there is no suspect information, either by phone or in person with an emphasis on crime victims’ rights and referrals to other city bureaus or programs. ▪ Receive and process found property when no suspect is present and there is no crime scene, and otherwise assist in evidence processing.
PPB staff estimate that it will be fall of 2018 before CSOs are actually hired and available to assume these duties, based on recruitment, background, and training timelines. It is not clear whether negotiations with the PPA will impact this timeline.
Portland Police Bureau 7 of 38 March 6, 2018 Going into FY 2018-19, it will be critical to understand and measure the positive impact of the CSO program in order to understand whether this model can be scaled to provide increased support to the bureau’s stressed patrol function. While this model has been successfully implemented in other jurisdictions, it may be reasonable to further delay the implementation of this program to the degree that substantial additional General Fund resources are needed in the near term to supplement the bureau’s request for an officer training pool. In addition, CBO recommends that the CSO program look for ways to coordinate with other non- sworn employees who address non-emergency public safety concerns such as Park Rangers and ONI crime prevention specialists.
Shifting Landscape Around Technology Investments The Police Bureau anticipates making investments in new technology over the next several years, the most prominent of which are the development of a body worn camera program and the potential replacement of the RegJIN police reporting system (discussed in depth in PL_04).
The body camera program is still in a relatively early stage of development. In FY 2016‐17, PPB received $1.7 million in ongoing funding and 4.0 FTE to implement a body worn camera program throughout the bureau. This funding augmented a one‐time amount of $834,619 that was added to the bureau’s budget several years ago and has been carried forward for several years. In the current fiscal year, the ongoing funding was reduced by $1.3 million one-time based on the pace of program development. Position authority and funding was retained, and a Sr. Management Analyst for supervising the body camera program and one assistant management analyst in the Records Division continue to work with sworn leadership to develop the program requirements. At this time, low confidence cost estimates have not changed; ongoing costs are estimated at $1.7 million and one- time costs are estimated at $2.8 million over several years.
A recent 2017 survey from the Major Cities Chiefs (MCC) Finance and Budget Conference Committee, including responses from 56 major police agencies, indicated that the following regarding their use of body worn cameras:
▪ 7% had issued body cameras to all officers, ▪ 20% had issued them to all patrol officers ▪ 21% had issued them to some patrol and traffic officers ▪ 23% were in a selection or RFP process ▪ 18% were in a testing or pilot phase ▪ 11% had not issued cameras and were not otherwise in a selection process
Portland Police Bureau 8 of 38 March 6, 2018 Most respondents indicated that additional dedicated personnel would be needed for body camera staffing, particularly for freedom of information act (FOIA) issues, review of videos, and technical tasks. Agencies’ primary concerns with implementation included privacy issues, video retention, storage, FOIA, video transfer to prosecution, and review/redaction.
At the time of the original ongoing funding approval for Portland’s body camera program, and wave of body worn camera adoption across the country, limited robust research existed on the perceived benefits and concerns with body worn cameras. Key recommendations from a federal review5 of available research from the federal Office of Justice Programs were that agencies interested in adopting body-worn camera technology should proceed cautiously with implementation and should continue to collaborate with researchers to design rigorous implementation and impact evaluations of body camera technology and with experimental research designs.
To a large degree, the perceived benefits of body cameras were based on a small 54-officer study out of Rialto, California, which indicated a relationship between body camera implementation and a reduction in use of force and citizen complaints. However, a larger (2,224 officer) and more methodologically robust evaluation6 was recently released from Washington D.C., where a randomized control trial was implemented to ascertain whether body cameras had a measurable effect on use of force and citizen complaints. This study found no measurable impact on use of force or citizen complaints, calling into question some of the perceived benefits of body worn cameras from smaller previous studies – especially for jurisdictions that have been under increased scrutiny by the Department of Justice (e.g. Washington D.C., Portland).
The D.C. study indicates that Portland may not experience substantial, broad- based reductions in use of force and citizen complaints from a body camera program. There may be other benefits of body camera programs, however, including training uses, heightened accountability for police behavior in specific encounters, and evidentiary benefits. Without a programmatic evaluation component to program implementation, it will be difficult to know whether this substantial investment will provide a net benefit, outweighing cost and privacy concerns. The FY 2016-17 Adopted Budget includes both funding of $50,000 and a budget note directing a program evaluation7.
5 White, Michael D. 2014. Police Officer Body-Worn Cameras: Assessing the Evidence. Washington, DC: Office of Community Oriented Policing Services. 6 Evaluating the Effects of Police Body-Worn Cameras: A Randomized Controlled Trial. David Yokum, Anita Ravishankar, Alexander Coppock. 7 From the budget note: “The bureau will use an outside program evaluator to document and provide evaluation postimplementation to assess the impacts and outcomes of the investment in body cameras.”
Portland Police Bureau 9 of 38 March 6, 2018 In light of new evidence from the robust study out of Washington D.C., it will be critical to establish clear outcomes that the City hopes to achieve out of a body worn camera program, and, ideally, partner with an academic institution to evaluate and assess these outcomes against program cost.
Portland Police Bureau 10 of 38 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund Ongoing One-Time Other Revenues $460,632
$12,295,038 ($113,801)
$8,795,054 $(9,404,922)
$3,117,932 $1,561,268 $992,044
$(894,462) General Fund General Fund One- Other Revenues Ongoing Time Bureau Request CBO Recommendation 102.0 FTE 17.0 FTE (7.17) FTE (1.0) FTE
Requested Recommended Requested Recommended
Add Sworn Positions to Meet Service Demand PL_01, $7,343,412, 64.00 FTE This package – the bureau’s top priority – requests a substantial increase in the Police Bureau’s number of authorized sworn positions. Sworn staffing levels currently stand at 946, with 653 officer positions; this request would increase the number of officer positions by approximately 10% by creating a 60.0 officer “training pool.” The package also requests 4.0 additional sworn positions to increase staffing at the training division for a total ongoing General Fund cost of $6,026,920 and one-time resources totaling $646,400 to purchase equipment and uniforms. The bureau is requesting these positions as part of a “multi-phase” effort to increase overall authorized sworn staffing levels to address increasing call volume and the desired shift to a community policing model. The bureau’s patrol staffing issues are complex, but two primary factors are contributing to current pressure on its patrol function: the extraordinarily high number of officers on probation during the current wave of retirements, and
Portland Police Bureau 11 of 38 March 6, 2018 increasing dispatched call volume, as discussed above in Major Issues. The bureau has mitigated some of this impact by shifting specialty unit officers to patrol and by instituting a rotational patrol shift for remaining specialty units. Additionally, the bureau has been authorized to carry 10-officer “over-hires,” and recently transferred 17.0 “retire-rehire” positions to limited term status in order to increase its hiring rate in advance of expected retirements in FY 2018-19 and FY 2020-21. Of 653 officer positions, 158 are currently assigned to specialty units (e.g. Traffic Division, Family Services Division, Gang Enforcement Team). Of the remainder, over 100 authorized officer positions are in some phase of probation; almost 25% of officers that could be assigned to patrol or to repopulate specialty units are currently on probation. The bureau has had between 9 to 84 vacancies at any given point over the last 15 years, but over that period had higher levels of authorized sworn positions compared to the current 946. That higher level of authorized sworn positions acted as a buffer against retirement and other attrition; the bureau generally did not have more than 946 sworn officer positions filled at any given time, but still carried an average of around 45 officer vacancies. In FY 2013-14, when 50.0 officer positions were eliminated, this was largely managed through attrition, but had the effect of lowering the number of filled positions by the average vacancy factor:
Authorized sworn positions, less actual vacancies at beginning of fiscal year 1050
1000
950
900
850
800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Authorized Sworn Sworn Vacancies Current Authorized Sworn
Currently, with the bureau hiring quickly toward full staffing, the bureau has to monitor its attrition very closely in order to be ready to hire into those vacancies on a one-out, one-in basis. Establishing a pool of officer trainees would help the bureau adjust to waves of attrition going forward by hiring officers into probationary status in advance of expected attrition. The probationary period is 18+ months long, which creates a substantial lag between a when vacancy is created and when the replacement officer is deployable. Generally, as officer trainees cycle through probation and onto patrol, the workload pressures on
Portland Police Bureau 12 of 38 March 6, 2018 patrol will decrease (as will the amount of overtime required to meet minimum staffing levels). The bureau anticipates 30-50 retirements in the third quarter of FY 2018-19 and another wave of 30-40 retirements in FY 2020-21. With almost 80 officers set to exit probation in FY 2018-19, the actual number of officers available for patrol will increase slightly, relative to current levels. Absent any other action, the bureau will continue to hire new officers to backfill attrition on a one-in, one-out basis. New officers hired in FY 2018-19 will similarly offset FY 2020-21 anticipated retirements, and the overall number of officers available (i.e. not on probation) will continue on a generally positive trend. That said, the pattern of having substantial numbers of officers on probation is expected to continue, absent other action, for three to five more years.
Bureau projection of officers available for patrol 500
400
300
200
100
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2017-18 FY 2018-19 FY 2019-20
Available officers for patrol: Probation
Projections indicate that, over the next five years, the bureau will eventually cycle through the period of heavy attrition and replacement hiring, with officers available for patrol projected to plateau in the 415 – 435 range, or about 55 - 75 officer positions higher than present8. If accurate, this projection may allow for a partial repopulation of specialty units.
The 2015 Matrix staffing study9, in analyzing staffing levels and workload, indicated that 408 officers across the thee precincts would be sufficient to manage workload and achieve a reasonable “proactive” policing ratio (a proactive ratio of 35% - 40% is common for large police agencies). This analysis accounted for an 8%
8 This estimate is based on bureau projections that include total sworn, less command staff, a leave estimate, and an officer vacancy assumption. Because the Matrix figure includes an 8% vacancy factor (376 actually available for patrol on any given day), the average number of patrol officers on leave, 20, was included in this available officer total for both the projection and the current day comparison. 9 The Matrix study was completed in February 2015, and relies on data from FY 2014-15.
Portland Police Bureau 13 of 38 March 6, 2018 vacancy factor (officers at training, on leave, or otherwise not available), for a total adjusted precinct staffing level of 376 officers. Currently, the precincts have closer to 350 - 360 officers available for patrol on any given day. This figure includes the officers reassigned from specialty units to support patrol staffing, but it does not account for the rotational patrol shift that specialty units are expected to fill as a result of the 2016 GATR session on patrol staffing10. However, workload for patrol officers has not remained static since FY 2014-15. Since that time, dispatched call volume has increased, particularly for low and medium priority calls, as discussed earlier:
Total call volume has increase by 6.4% since FY 2014-15 300,000
250,000
200,000
150,000
100,000
50,000
0 FY 15 FY 16 FY 17
High Priority Calls Low and Medium Priority Calls
Prior to substantially increasing authorized sworn specifically to meet increasing call volume, it may be warranted to wait and see whether strategies to limit the impact of increasing low priority calls – the implementation of the Community Service Officer program in particular – have the expected impact. As the bureau’s patrol staffing levels increase over a 3 – 5 year time frame, the return of officers to specialty units – particularly the Traffic Division – may also have a mitigating impact on the total calls for service as they reengage in their missions. The return of a more typical number of officers on patrol may also allow for the bureau to engage in more of the targeted task force and community policing strategies, similar to the requests in PL_05. The bureau’s patrol staffing shortages due to high numbers of probationary officers are having a detrimental impact on both call response time and are causing substantial increases in overtime spending. The bureau relies on overtime to meet patrol shift minimums. Patrol shift minimums are reexamined periodically,
10 See GATR session materials here: https://www.portlandoregon.gov/cbo/71330. Recent reports indicate that the show rate for these rotational shifts is only 36% - a much lower rate than anticipated and a drop off from the prior year show rate. This low show rate is a large driver of the large YTD increase in overtime spending to cover patrol shifts, relative to FY 2016-17.
Portland Police Bureau 14 of 38 March 6, 2018 as they are set based on typical call volume by shift and account for geographic boundaries to address call response time, but they have been set at their current levels for several years. Overtime spent on “personnel shortage backfill” is driven by shift minimums and whether or not there are sufficient officers available to meet those minimums. The bureau’s overtime spending for personnel shortage backfill through January 2018 is $2.3 million, which is almost $700,000 higher than this time last year – an increase of over 40%.
Personnel Shortage Overtime Hours - Annual Comparison at Month 7
45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18
Part of the reason that current year overtime spending is so high relative to FY 2016-17 is the decrease in the show rate – the percent of time a specialty unit officer shows up to a rotational patrol shift – for specialty unit rotational shifts. Coming out of the 2016 GATR session, the bureau both transferred specialty unit officers back to patrol and instituted a rotational shift (25% of shift hours) for remaining specialty unit officers. The show rate for rotational shifts has decreased to around 36% in the current year. The show rate can fluctuate for a variety of reasons, such as an officer is at training, needed at their “home” unit for a mission, or otherwise on leave – but may be due in part to dissatisfaction with this model and fatigue. This low show rate is putting increased pressure on the bureau’s personnel budget, and the bureau has set aside a $1.5 million contingency in its FY 2018-19 materials and services budget as a contingency for the presumed continuation of this spend rate. The impact of current patrol staffing levels - in particular the high numbers of officers on probation - on response times is apparent in the bureau’s increasing travel time to high priority calls, a key performance measure11:
11 Going forward, the bureau intends to report travel time and call queue time for all priority call types. This information is not yet available.
Portland Police Bureau 15 of 38 March 6, 2018 Average travel time to high prioritiy call (minutes) 7
6
5
4
3
2
1
0 FY 14 FY 15 FY 16 FY 17
A pool of officer trainees rolling off of probation in FY 2019-20 and FY 2020-21 will increase the number of officers on patrol relative to the current trajectory, and presumably create a commensurate reduction in overtime spending relative to the current trajectory. An officer training pool will also allow the bureau more flexibility to manage projected attrition, rather than waiting for large retirement waves to begin hiring to replace retirees, and pull forward the timeline by which patrol staffing levels are expected to stabilize. Over the long term, it is reasonable for the bureau to have flexibility to address retirements and other attrition.
A 20-officer training pool, approximately half of average annual attrition, would help the bureau hire and retain officers prior to retirement waves, and manage through the issues outlined above. However, given limited General Fund resources, CBO recommends a 14.0 officer training pool to help manage these issues, funded by an ongoing increase in General Fund resources of $1,451,268. Because the bureau has already received $1 million in funding in FY 2018-19 for a 10-officer over-hire in the current year Fall BMP – essentially the same model as a training pool – the additional funding for FY 2018-19 is recommended to be set at $451,268.
The pressures facing the bureau’s patrol staff function are very real over the next three to five years, and some measure of additional support seems warranted to alleviate the impact of high numbers of officers on probation.
CBO Recommendation: $1,451,268 I 14.0 FTE
One-time Replacement Shortfall for MDCs PL_02, $1,320,000, 0.00 FTE This request is for $1.32 million in one-time General Fund resources is to partially
Portland Police Bureau 16 of 38 March 6, 2018 fund the replacement of Mobile Data Computers (MDC) in PPB vehicles. MDCs, which are installed in most police vehicles and are an essential tool in policing, provide officers with mobile access to dispatched calls for service data, access to law enforcement databases, and report writing and communication tools. The bureau has an established interagency agreement that includes collection for the replacement of MDCs and other critical electronic equipment, consistent with City financial policy. However, payment into this reserve was temporarily suspended for three years, from FY 2012-13 through FY 2014-15, due to budgetary constraints. The total cost of MDC replacement and installation is estimated at $2.72 million, based on a recent RFP. The replacement reserve balance is $1.4 million, leaving a shortfall of $1.32 million, which is roughly equivalent to the value of foregone replacement reserve payments to BTS. Since the bureau intends to replace all of the MDCs over the course of the next year, it is also reasonable to include the replacement reserve payment for FY 2018-19 in the total of bureau resources available for this project (approximately $220,000 through the end of projected MDC deployment). Inclusive of this amount, the MDC shortfall is approximately $1,100,000. The bureau notes in the package narrative that this request is eligible to be funded from the remaining balance of the Public Safety System Revitalization Project (PSSRP), which was dedicated to funding public safety technology projects. After consultation with the BTS director on the timing and prioritization of requests for those reserves, it was determined that CBO would make recommendations for those reserve funds for urgent one-time public safety technology funding needs during FY 2018-19 budget development. CBO recommends that $1,100,000 from the Public Safety Technology reserves (the remaining balance of the Public Safety Revitalization System Project) be allocated to the Police Bureau to partially fund MDC replacements during FY 2018-19. CBO Recommendation: $1,100,000 I 0.00 FTE
Equipment Replacement Funding Backfill PL_03, $374,000, 0.00 FTE The Police Bureau restructured its command structure earlier in the current fiscal year, adding a permanent Deputy Chief and a permanent Administrative Assistant position. The total ongoing cost of these positions was estimated at approximately $374,000. Absent new ongoing resources, the bureau realigned internally from its existing external materials and services budget to fund these positions on an ongoing basis. This request is to restore the reduced flexibility in the bureau’s materials and services base budget. The bureau’s package narrative indicates that, without this external materials and services (EMS) backfill, the bureau will be at risk of being unable to fund life cycle
Portland Police Bureau 17 of 38 March 6, 2018 replacements for known, ongoing equipment needs. A historical analysis of PPB’s spending indicates that the bureau tends to underspend its EMS allocation in each year:
Budget to Actual Comparison - EMS spending (GF only) $30 M
$20 M
$10 M
$0 M FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Base Budget Requested Budget
Actual Budget 3 Year Average of Actual Spending
The current year base budget, absent any additional requests or reductions, is approximately $5.3 million higher than a three-year average of actual EMS spending. The bureau does carry over contracted costs from year to year, but a three to five-year historical average is a good approximation of actual EMS requirements, and is inclusive of lifecycle equipment replacement spending. The bureau notes that annual equipment replacement spending fluctuates between $500,000 to $1.5 million. While CBO appreciates the usefulness of EMS flexibility to absorb unanticipated one-time expenses – and, as noted elsewhere, the bureau has set aside a portion of its current year EMS budget as contingency for overtime and other personnel spending – the bureau can reasonably absorb priority equipment replacement costs absent any backfill for the personnel costs noted above. In the event that there are large one-time and unanticipated EMS expenses in the coming year, the bureau should look to fund those costs from federal asset forfeiture reserves12 (balance is currently $2.5 million). CBO Recommendation: $0.00 I 0.00 FTE
RegJIN User Fee Shortfall PL_04, $1,215,250, 0.00 FTE This request is for one-time resources of $300,000 to hire a consultant to explore options to replace the bureau’s law enforcement records management system, as well as $915,250 to subsidize per-user cost increases for regional partner agencies in FY 2018-19. This system went live in May of 2015. Total implementation costs
12 The use of asset forfeiture resources is restricted to one-time discrete purchases; purchases cannot supplant purchases that are routine or ongoing in nature.
Portland Police Bureau 18 of 38 March 6, 2018 were approximately $12 million, with annual program sustainment costs of approximately $2.6 million. RegJIN is funded by contributions from regional partner agencies (RPAs) based on an allocation formula that takes total system costs divided by the number of users. As such, the fluctuations in the total number of users and program sustainment costs are the primary drivers of changes to RPA contributions. The RegJIN User Board, comprised of all participating agencies, votes each year on increases to per- user costs. The Portland Police Bureau (PPB) is the owner of the contract with Versaterm and the largest user of RegJIN, but cannot unilaterally increase per-user costs by more than 10% annually; cost increases over 10% require approval by the user board. Since the 2015 go-live date, there have been several RPAs that have either exited or declared their intent to exit the user agreement. Exiting RPAs are only allowed to exit on January 1st of a given year, are required to provide 6-month notice, and must pay all costs associated with extracting their data from RegJIN. The primary reason that RPAs have exited the agreement is, per PPB staff, dissatisfaction with the RegJIN system interface. However, increasing cost is also a concern, as the per- user cost increases for remaining RPAs when there are exits. At this point in time, additional exits by regional partner agencies are a serious concern. Due to the limit on the per-user fee increase, the City is responsible not only for a higher proportional share of program costs as the number of users declines ($200,000 more in the current year), but also subsidizing the increase in RPA program costs in excess of the limit ($300,000 in the current year). In total, the bureau will pay $1.3 million for RegJIN operating cost in FY 2017-18, bearing 53% of the system cost, which is a $500,000 increase over FY 2016-17. Recently, PPB offered to subsidize any annual per-user cost increases for partner agencies that are greater than 10% through the life of the contract with Versaterm (ending in FY 2020-21) in order to provide greater cost certainty and reduce the likelihood of further exit. Based on PPB fiscal staff calculations in fall of 2017, this was estimated to require a subsidy to other RegJIN users fluctuating between $350,000 and $400,000 annually13. At the time, CBO noted that the primary risk in putting forward this proposal is that it obliges the City of Portland to absorb substantial cost increases with no assurance that the subsidy will prevent further exit. This budget request 1) assumes massive exits from RegJIN user base (exits of 437 users from a base of 1,370) that would increase Portland’s share of program costs from 53% to 67% ($400,000), and 2) assumes that the bureau cannot continue to absorb the current level of subsidy ($300,000).
13 This calculation assumes 5% annual increases to overall program sustainment costs and assumes the loss of revenue from several small agencies that are expected to exit the user agreement. The request is based on new assumptions about exiting agencies.
Portland Police Bureau 19 of 38 March 6, 2018 The actual exits that will occur in FY 2018-19 will not be known until July 2018, when partner agencies are required to inform the user board of any decision to exit14. CBO recommends that the bureau continue to absorb the current level of subsidy to partner agencies into FY 2018-19, and come forward with a request in the Fall BMP if actual exits declared in July indicate a substantially larger subsidy will be required. The RegJIN system has been in place for fewer than three years, which is an incredibly short timeline to be considering the pursuit of replacement options. However, the per-user sustainment costs are much higher than anticipated due to partner agency exits, there is general dissatisfaction with the system interface, and better, less costly, and/or newer technologies may be available. To the degree that there are options to replace RegJIN with a less expensive system when the Versaterm contract ends in FY 2020-21, CBO recommends for the $300,000 request for a consultant to study RegJIN replacement options. CBO recommends this work be funded from Public Safety Technology reserve (the remaining balance of the Public Safety Revitalization System Project), and further recommends that any remaining balance not otherwise allocated during budget development be reserved for a potential RegJIN replacement15. Based on current projections, this reserve balance may be up to $1 million. CBO Recommendation: $300,000 I 0.00 FTE
Enhance Neighborhood Livability and Walking Beats PL_05, $3,271,959, 21.00 FTE This request is for 18 additional officer positions and three additional sergeant positions to expand the bureau’s capacity to engage in community policing in each of the three precincts. The request also includes funding for nine new vehicles. Community policing is a central tenant of the 21st Century Policing model, and emphasizes the “systemic use of partnerships and problem-solving techniques to proactively address issues of crime, disorder, and fear of crime16.” Currently, the bureau employs a number of community policing strategies, including the Neighborhood Response Teams (NRT) in each precinct, the Street Crimes Unit (SCU), and the Entertainment District detail.
14 The terms of exit from the agreement are strict. Agencies that wish to exit must inform the user board on July 1, providing 6 months notice (and payment) until actually exiting December of that year. 15 CBO acknowledges that other one-time public safety technology projects may well arise between FY 2018-19 and the conclusion of the Versaterm contract. However, the PSSRP was the original funding source for the development of the RegJIN system, and it seems appropriate to partially fund any replacement system with these reserves. The balance will also be considered for 800 Megahertz Radio System projects, as the fiscal year end balances will be driven by rebates from a radio system project. 16 http://www.csrincorporated.com/pillar-4-pillars-of-justice-series-community-policing-and-crime- reduction/
Portland Police Bureau 20 of 38 March 6, 2018 The NRTs in all three precincts are currently staffed by five sworn positions each. This request would expand the NRTs in all precincts, and add capacity for neighborhood-specific and livability issues, ranging from Business Liaison Officers to Chronic Street Crime details. The purpose of these details is to proactively address public safety concerns before they rise to the level of emergency dispatched calls. Enhanced efforts toward community policing are clearly a priority for bureau leadership and Council. In fact, Council included a budget note in the FY 2016-17 Adopted Budget directing the bureau to re-request additional NRT positions when patrol staffing levels had stabilized. Unfortunately, patrol staffing levels have not yet stabilized. The expansion of NRT and livability details would require staffing by experienced officers, so the actual impact of establishing and filling these positions immediately would be to reassign experienced officers from existing specialty units and/or patrol functions. This would exacerbate concerns with regard to patrol staffing. Absent a reexamination of whether these community policing details are a higher and better use of experienced officers relative to existing specialty unit staffing and subsequent reassignment, these positions are unlikely to be staffed in the near term even if approved for funding. The bureau does intend to continue allocating approximately $200,000 of discretionary overtime to walking beat and community policing directed missions in FY 2018-19. The bureau has indicated that even with substantial approval of the 64 sworn positions requested in PL_01, the bureau is at least 18-24 months away from being able to staff the requested positions to enhance community policing. CBO recommends the bureau reexamine whether the community policing workload outlined above is a higher and better use of existing specialty unit resources (which would likely require the elimination of one or more specialty units). Absent reassignment from existing specialty units, CBO recommends that the bureau re- request additional funding for community policing details when patrol staffing has stabilized. CBO Recommendation: $0.00 I 0.00 FTE
Enhance Emergency Management Unit PL_06, $1,334,134, 8.0 FTE This request would add five officer positions, 1.0 sergeant position, a crime analyst, and Sr. administrative support specialist to the bureau’s existing Emergency Management Unit (EMU) team of 1.0 sergeant and 1.0 officer. Currently, the EMU’s primary workload is centered on assessing and planning for police presence at large public events, particularly parades, sponsored athletic activities, and stationary events (i.e. concerts). There were 66 such events in calendar year 2017. The expansion of the EMU would allow for additional resources to help assess,
Portland Police Bureau 21 of 38 March 6, 2018 plan for, and staff large events, as well as provide additional capacity to train for and respond to large scale emergency situations. The bureau notes that the current model for assessing and staffing large events relies on the realignment of resources – typically from precincts – which places an additional burden on the patrol staffing and precinct function at a time when patrol staffing levels are an issue. The bureau also notes, similar to PL_05, that the requested sworn positions are unlikely to be deployed as proposed until patrol staffing levels have stabilized; doing so would exacerbate the current patrol staffing issues. Given that the bureau’s highest priority is addressing patrol staffing (PL_01), and in an environment of limited available resources, CBO does not recommend this request. If greater capacity is needed in the EMU in the near term, CBO recommends that the bureau reassign or reclassify existing non-sworn support staff to this unit, pursue increased collaboration with and support from emergency response staff in PBEM, or identify discrete bodies of work that would advance the unit’s mission and could be funded via grants or other one-time resources (i.e. Asset Forfeiture funds). CBO Recommendation: $0.00 I 0.00 FTE
Ongoing Funding for Service Coordination Team PL_07, $1,544,904, 0.00 FTE The Service Coordination Team (SCT) is a program within the bureau’s Behavioral Health Unit that offers treatment and housing to repeat and frequent drug and property crime offenders. This program focuses on treating the underlying conditions that lead to recidivism, and attempts to break the cycle of arrest, release, and re-offense. The bureau put forward ongoing funding for the SCT as a realignment option during FY 2017-18 budget development, proposing that ongoing General Fund resources for this program be offset by newly available funds from the local recreational marijuana tax. The program, with its emphasis on drug addiction treatment, is eligible for funding from this resource. In the FY 2017-18 Adopted Budget, $410,00 of SCT costs were funded from the Recreational Marijuana Tax Fund, with the remaining $1,464,958 backfilled by General Fund one-time resources. The current request is for ongoing General Fund to restore ongoing funding for this program. The SCT program is a critical component of the bureau’s strategy to assist individuals that come into frequent contact with law enforcement due to mental health issues, addictions, and criminality. It is also a core strategy to meet the terms of the DOJ agreement vis-à-vis reducing police contact with people with mental health issues. SCT is an expensive program relative to the number of annual graduates (250 graduates since program inception in 2008). However, this
Portland Police Bureau 22 of 38 March 6, 2018 is a particularly difficult population to work with, and the SCT program has produced measurable positive results around reduced recidivism (reduced 83% for program graduates) and several evaluations from PSU have shown that the program results in significant cost-savings across the justice system. The bureau does not intend to eliminate this program if ongoing funding is not established, but funding this program internally would require deep reductions in other programs deemed less core to the bureau’s mission (e.g. advocacy funds for trafficking victims, the Strength Programs, or Hooper & CHIERS detox contracts). Given the importance of the SCT program to the bureau’s strategies around mental health and addiction, the connection to DOJ compliance, and the success of the program in reducing recidivism in a difficult population, CBO recommends that ongoing funding for this program be restored. Given the limited availability of ongoing General Fund resources, CBO recommends the unfunded portion of program costs ($1.54 million) be funded ongoing from the Recreational Marijuana Tax Fund in addition to the $410,000 currently budgeted in that fund ($1.95 million total). CBO Recommendation: $1,544,904 I 0.00 FTE
Enhance Behavioral Health Unit PL_08, $653,495, 3.0 FTE This request would expand the bureau’s Behavioral Health Unit (BHU) team by two officers, provide additional contracted support from clinicians with Project Respond, and add an assistant crime analyst. There are currently three Behavioral Health Response Team units; this request would expand that to five units. The BHU follows a referral-based model, wherein BHU officers partner with clinicians to coordinate the law enforcement response to situations where the mental health of an individual is a flagged as a concern by officers or the public. Referrals to BHU limit the potential of adverse police interactions with individuals with mental health issues, a critical component of compliance with the DOJ agreement. BHU staff assign referrals for follow-up based on risk metrics, and track these assignments and associated outcomes as part of their caseload. A key performance measure associated with the BHU is the percentage of outcomes facilitated through Behavioral Health System Coordination, and the universe of outcomes is as follows: ▪ Coordinated Services: the individual was connected or reconnected to mental health services or other community resources ▪ Civil Commitment: the individual was civilly committed or accepted into a diversion program as a result of a mental health civil hold ▪ Systems Coordination: BHU conducted some kind of coordination with the mental health or criminal justice system (but likely not as in-depth as
Portland Police Bureau 23 of 38 March 6, 2018 Coordinated Services) In 2017, 46% of the 467 cases assigned to BHU were resolved through coordination across the behavioral health system and 25% were otherwise mitigated. In other cases, the individual was unable to be located, entered into the criminal justice system, or refused assistance. The BHU team has identified situations where, if additional staff were available, a higher level of follow-up could be provided across its referral base. In particular, the unit could 1) re-assign past BHU clients for additional follow-up where a review of police reports indicates they have had police contact and 2) cross-check police reports to ensure that referrals have been accurately placed where an officer intended to do so. The requested additional resources will allow for the unit to potentially carry a higher caseload and have additional time dedicated to case follow-up. The BHU is a successful model and is critical to reducing contact between the police and individuals with mental health issues, and CBO is generally supportive of expanding these services to allow for additional follow-up. However, adding staff to BHU in the near term would require experienced officers be reassigned from other units. In keeping with analysis in PL_05 and PL_06, CBO recommends the bureau reexamine whether the BHU workload outlined above is a higher and better use of existing specialty unit resources to determine whether to reassign staff or eliminate other specialty units. Should PPB determine to re-request funding for additional BHU capacity in the future when additional experienced officers are available to reassign from patrol, CBO would encourage BHU and PPB leadership to explore multi-jurisdictional funding models for an expansion of BHU services, as the benefits from this mental health system coordination service extend well beyond reduced contacts with the police bureau. CBO Recommendation: $0.00 I 0.00 FTE
Increase Interagency Agreement with City Attorney PL_09, $181,000, 0.00 FTE This request is for one-time General Fund resources to fund the continuation of an increased level of service with the City Attorney’s Office. In the FY 2016-17 Fall BMP, the Police Bureau realigned underspending in personnel services to fund 1.0 FTE in the Attorney’s Office via an interagency agreement. This position provides legal support for the review of PPB policy directives as required under the terms of the DOJ Agreement. The increased level of legal support was continued into the current fiscal year, with the Police Bureau once again realigning within existing resources to fund the agreement. The legal support from the Attorney’s Office augments the bureau’s internal “policy team,” which is comprised of a Police Lieutenant, a Senior Management Analyst, and a Management Analyst. The restructuring, along with dedicated legal
Portland Police Bureau 24 of 38 March 6, 2018 support, allowed the bureau to expedite the pace of policy directive review. Of the 47 policy directives explicitly identified in the DOJ agreement, 46 have now been reviewed, re-written, and have received conceptual approval by the DOJ. Once approved by the DOJ and court, the policies are subject to a 12-month rolling review and approval for the life of the DOJ agreement. The current structure for policy review has clearly been effective in expediting the timeline for review of policy directives and, ultimately, future compliance with the DOJ agreement. However, given the limited availability for General Fund resources, CBO recommends the bureau continue to fund the interagency agreement within existing resources. CBO Recommendation: $0.00 I 0.00 FTE
Add Audit Team to Professional Standards Division PL_10, $306,150, 3.00 FTE This request would add three analyst positions to the Professional Standards Division (PSD) to double the division’s audit team17. The division is currently staffed by three positions that are trained to analyze and audit the following: use of force across the bureau, force reporting, supervisory investigations into use of force, and chain of command reviews. This body of work – which is both required by the DOJ agreement and considered a best practice – is sufficiently managed by existing staff. Additional staff capacity on the audit team is being requested in order to expand follow-up support on force audits and to expand audits beyond use of force reporting. The expanded audit function would range from auditing the adherence to procurement card usage, auditing equipment distribution policies at the Training Division, or the timelines of police misconduct cases in accordance with the DOJ Agreement. These additional audits would be useful, and improve overall accountability for adherence to bureau policies. At this time, given limited available General Fund resources, CBO does not recommend additional funding for this request. The force audit team produces reporting that is required by the DOJ agreement, but as indicated in this request, there may be more useful or efficient ways to integrate force reporting into bureau operations. As the City moves toward substantial compliance with the terms of the DOJ agreement, there may be opportunities over the long term to refocus the capacity of existing DOJ-related staff from a pure “compliance” focus toward maintenance of the spirit of the DOJ agreement in ways that are more useful to bureau operations.
17 This force audit team was previously in the Strategic Services Division, but was relocated to the Professional Standards Division within the past year.
Portland Police Bureau 25 of 38 March 6, 2018 CBO Recommendation: $0.00 I 0.00 FTE
Learning Management Systems Analyst PL_11, $105,538, 1.00 FTE This request is for one-time General Fund resources to continue support for a limited term Business Systems Analyst in the Police Bureau’s Training Division. CBO recommended this position for two-year limited term status in the FY 2017-18 Adopted Budget; this request is for the second year of funding. The Business Systems Analyst is critical to standing up the bureau’s new learning management system (LMS), Cornerstone, which was purchased in order to update the bureau’s training monitoring, evaluation, records maintenance, and reporting as required by the DOJ agreement. The LMS administrator position is responsible for system implementation, including developing processes for various end users. The bureau intends to request ongoing status and funding for this position in the future. In keeping with previous recommendations, CBO suggests that the bureau look to reclassify an existing administrative position; the new system is intended in part to substantially reduce the manual entry and tracking of training data in the current system, generating efficiencies that might allow for such a realignment. CBO Recommendation: $105,488 I 1.00 FTE
Second Floor Training Center Buildout Funding PL_11, $1,800,000, 0.00 FTE This request for one-time General Fund resources would fund capital improvements on the second floor of the bureau’s training complex. The training center project was originally funded via a bond issuance. The original project cost was estimated to be $18 million, including some of the proposed second floor enhancements, but the bond issuance was later scaled back to $15 million. The requested resources would primarily fund the installation of scenario-style training rooms, additional class room space, and an elevator. The bureau is largely able to provide required training on the site as is. Approximately $50,000 is spent annually on renting training space, presumably during high volume training periods. The bureau notes that external agencies would rent the training space more frequently if there were additional capacity; this space rental currently generates about $35,000 in revenue from other agencies annually. The bureau does not anticipate significant changes to operations and maintenances costs associated with the build out. Due to limited General Fund resources, CBO does not recommend this request. The PPB master facilities plan is still under development, but the draft document includes plans that would require substantial new resources in the range of $100 million to $200 million. Going forward, CBO recommends that the bureau work
Portland Police Bureau 26 of 38 March 6, 2018 with OMF and Council to establish a prioritized list of PPB facilities investments and an associated funding plan. CBO Recommendation: $0.00 I 0.00 FTE
LifeWorks NOW Ongoing Funding PL_13, $110,000, 0.00 FTE The bureau’s Sex Trafficking Unit (STU) and the Multnomah County District Attorney’s Office jointly fund a standing contract with LifeWorks Northwest to fund the New Options for Women (NOW) program. The program provides trauma- informed care to women trying to exit the sex industry, including mental health support, addiction treatment, education, and case management. The Sex Buyer’s Accountability Program – a diversion program for the demand side of the sex industry – is also funded from the City’s contribution to the NOW program. Historically, the Police Bureau has funded the City’s $210,000 contribution to the program with $100,000 from its external materials and services budget and $110,000 from a Justice Assistance Grant (JAG). With JAG funding unlikely to continue going forward due to federal interpretations of the City’s Sanctuary City status, this request is for General Fund resources to continue funding the NOW program at current levels in FY 2018-19. Police Bureau funding supports 3.0 FTE and related program expenses for NOW, in addition to 1.0 FTE and related program expenses funded by the County. Outcome-based data was not available, but NOW program information indicates that the program served 72 unique clients in FY 2015-16 and 67 in FY 2016-17, with an average of 37 hours spent per client case. The bureau would end its support of the NOW program, absent additional General Fund resources to offset the loss of the JAG funding, in order to preserve budgetary flexibility to address staffing issues. Given the importance of support services provided to vulnerable populations and the clear nexus with crime reduction, CBO recommends the lost JAG funding be offset with ongoing General Fund resources. Going forward, the Police Bureau should continue to seek alternative grant options for this program. CBO Recommendation: $110,000 I 0.00 FTE
Modify the Property Evidence Warehouse Entrance PL_14, $250,000, 0.00 FTE This request is for $250,000 in one-time General Fund resources to install a modified entrance at the Property Evidence warehouse. The entrance would be reconstructed to include a more secure two-door vestibule in order to alleviate security concerns of the civilian warehouse staff. The property has been included in the Citywide Security Assessment, with the consultant noting concerns, but the
Portland Police Bureau 27 of 38 March 6, 2018 bureau indicated that the security concerns are more urgent than the assessment recommendation timeline allows. Per OMF-Facilities Services, the project costs are as follows: ▪ $140,000 direct construction costs (including 15% contingency) ▪ $21,000 OMF-applied project estimating contingency (15% of construction estimate) ▪ $54,000 project management costs ▪ $32,000 project contingency (15% of total project cost)
CBO notes that combined contingency and project management factors are 50% of the total budget, which seem high for a project duration estimated at one month. However, to the degree that the warehouse entrance is a safety concern for employees and is a facilities priority for the bureau, CBO recommends that the bureau pursue the reconstruction. This type of project would be appropriately funded out of the bureau’s existing external materials and services budget, or, alternatively, out of asset forfeiture reserves (balance $2.5 million). Given other available resources, CBO does not recommend General Fund resources at this time. CBO Recommendation: $0.00 I 0.00 FTE
District Attorney Investigator Funding PL_15, $374,266, 0.00 FTE This request is for one-time General Fund resources to continue funding an intergovernmental agreement with the County to fund 3.0 FTE investigator positions that support case preparation in the District Attorney’s Office. For most of the life of the agreement, the Police Bureau assigned three Detectives to work with MCDA on case preparation, locating witnesses, servicing subpoenas, etc. In 2016, in light of the patrol shortage, the bureau returned these sworn positions to the precincts and used vacancy savings to provide funding to the District Attorney’s Office rather than personnel support. There is clearly a benefit to the overall justice system when crimes are successfully prosecuted. However, neither the historical impetus for this 20+ year agreement or the legal requirement for PPB to fund or otherwise support case preparation are entirely clear. According to communications with MCDA in November 2015, police agencies are responsible for serving all subpoenas on their cases and conducting all related investigation. They estimate that the cost to PPB of taking on the responsibility for serving subpoenas and other investigative work would far outweigh the costs of funding three investigators (out of 9.0 total MCDA investigators). CBO recommends that the bureau continue to examine the legal requirements that do (or do not) necessitate this interagency agreement. The bureau will likely continue to pay this interagency agreement in FY 2018-19.
Portland Police Bureau 28 of 38 March 6, 2018 However, CBO recommends that the bureau fund this interagency from its existing resources. The bureau notes that, with dwindling vacancy savings available to support this agreement, the funding will come from flexibility in its external materials and services budget that is more typically reserved for equipment replacement. The bureau is likely to have some level of vacancy savings in FY 2018- 19 from the CSO program that is not yet operational. Further, given historical underspending in external materials and services, CBO anticipates that the bureau will be able to realign internally to fund this agreement. CBO Recommendation: $0.00 I 0.00 FTE
Site Modification for Central Precinct PL_16, $1,725,000, 0.00 FTE This $1.7 million request is to make tenant improvements at the Jerome Sears building to temporarily house Central Precinct staff. This would be a temporary location because the bureau intends to later request $150 million in new resources to construct a purpose-built precinct on the Jerome Sears site. The Central precinct is currently located on the 1st floor of the Justice Center, a 16- story building co-owned with the County. Additional non-precinct staff (Chief’s Office, fiscal, personnel, etc.) are located on floors 11-15 of the building. The bureau’s primary concerns with the current location of the Central Precinct are insufficient space, insufficient parking, lack of community space, and the fact that the building does not meet updated standards for “essential facilities” in the event of a natural disaster. OMF-Facilities Services suggested the Jerome Sears location as a possible relocation option for the Central Precinct. CBO is unaware of the results from the OMF-Fire tenancy study at Jerome Sears, but presumably this relocation of Central Precinct to the Sears facility would not conflict with other plans for the property. CBO has several concerns with this request. First, the relocation of the Central Precinct to Southwest Portland would be a substantial change to bureau operations and its proximity to the downtown core. This relocation would put the precinct 10+ minutes away from the downtown core by car. The bureau has indicated it does not intend to change the configuration of district patrol coverage, but relocating the Central Precinct likely warrants additional community input. Even absent current survey data on community perceptions of crime, it seems reasonable to assume that residents’ fear of crime is greater in the downtown core than 10 miles SW of the central city. Currently, the Central Precinct is the only location with 24/7 front desk staffing to provide walk-in support for residents. Secondly, some of the financial analysis supporting the relocation of the precinct to Southwest Portland appears to assume that the majority of the 1st floor of the Justice Center will be rented out by a to-be-determined tenant, with the precinct intending to maintain a small presence at the Justice Center. Absent a tenancy
Portland Police Bureau 29 of 38 March 6, 2018 plan for the 1st floor of the Justice Center, it is unwise to assume the City will not continue to bear the costs of that space. Finally, without a comprehensive and generally accepted master facilities plan for the bureau’s operational needs over a five to ten-year horizon, it seems inadvisable to invest $1.7 million in a temporary location that may later necessitate a (currently unfunded) $150+ million investment for construction of a new precinct. CBO recommends that the bureau plan a work session with Council to generate buy-in and understanding of its long-term space planning needs, and develop strategies to incorporate community input into any large-scale changes that may have community impacts. CBO Recommendation: $0.00 I 0.00 FTE
Add Revenue-backed positions to support Public Records Requests PL_17, $173,028, 2.00 FTE This request would add two revenue-backed Senior Administrative Specialist positions in the Records Division. The positions are supported by records request fees under the current fee structure, which took effect in January 2016. Based on an internal assessment of projected fee revenue and workload, the bureau anticipates that two additional positions can be added to increase responsiveness without requiring an additional subsidy from the General Fund. The additional positions will help increase the total number of records requests that are completed within 21 days18 and address the backlog of records requests. CBO notes that the current fee structure does not achieve recovery of the full costs required to meet the division’s goal of completing 90% of records requests within 21 days. The bureau indicated that public dissatisfaction with fee increases in 2016 led to the decision to leave the current fee structure in place. CBO Recommendation: $173,028 I 2.00 FTE
Eliminate Home Security Program PL_18, ($88,801), (1.00) FTE This reduction option would eliminate the Home Security Program within the Forensic Evidence Division (FED). There is currently one position staffing this program, which provides free installation of locks and deadbolts to eligible low- income senior homeowners. Demand for this program has dropped off substantially in recent years; the program responded to 196 calls in 2014, compared to only 24 calls in 2017. While
18 This 21 day period is a divisional goal, as opposed to a statutory requirement.
Portland Police Bureau 30 of 38 March 6, 2018 the program serves a vulnerable population, including disabled and minority seniors, the extremely low demand for this service has prompted the bureau to pursue reclassification of the existing position to focus on other duties. If this reduction is not taken, the FED intends to reclassify the existing employee to support growing demand for photographic evidence support. Given competing demands for ongoing General Fund resources, and the relatively low demand for this program, CBO recommends this reduction. CBO Recommendation: ($88,801) I (1.00) FTE
Cease Small Grant Donations PL_19 ($25,000), 0.00 FTE This reduction option would eliminate external materials and services spending that goes toward small direct donations to charities and other civic organizations. The average annual cost of these donations has been $25,000. These donations have supported a number of worthwhile causes, but both the bureau and CBO acknowledge that the current process for small grant donations is not particularly transparent. Going forward, the bureau will redirect requests for donations to the City’s centralized Special Appropriations grants process. CBO Recommendation: ($25,000) I (0.00) FTE
Eliminate Strength Programs PL_20, ($205,879), (2.17) FTE This reduction option would eliminate the Girls’, Boys’, and Women’s Strength programs (Strength Programs) on an ongoing basis. These programs have repeatedly been put forward as reduction options during budget development, as they are considered less core to bureau operations than other potential reduction options. The programs are staffed by three Crime Prevention Program Administrators (CPPAs), one of which is limited term. The programs are a strong avenue for community engagement, and leverage thousands of volunteer hours to provide education and training around self- defense, safety, and violence prevention. The Girls’ Strength programming emphasizes self-defense, while the Boys’ Strength program focuses on reducing violence again women, among other topics. The Women’s Strength program also emphasizes self-defense, and many participants are victims of sexual or domestic violence. CBO does not recommend these programs for reduction at this time, given that these programs provide an opportunity for positive community engagement and may result in reductions to crime or the fear of crime. However, to the degree that additional General Fund resources are required for other priorities, CBO would recommend the reduction but that the program funding be added back on a one-
Portland Police Bureau 31 of 38 March 6, 2018 time basis to allow time to pursue available grant funding opportunities or work with civic organizations to identify other sustainment strategies. Alternatively, there may be an opportunity to consolidate some of the Strength Program activities with ongoing Crime Prevention activities elsewhere in the City; there appears to be a strong nexus between these programs and the work of Crime Prevention Specialists in ONI. CBO Recommendation: $0.00 I 0.00 FTE
Reassigning Officers to Revenue-Backed Transit Positions PL_21, PL_22, PL_25, PL_27, ($460,632) (0.00) FTE These decision packages all propose to transfer officers to revenue-backed positions with the Transit Police, offsetting $460,632 in General Fund resources. The reduction options are as follows: Community Engagement Officer: The bureau established an “Office of Community Engagement” in 2016 to improve coordination of bureau-wide community engagement activities and support specific engagement projects. This office was originally meant to be staffed by a community engagement liaison for the Somali community, but the position has remained vacant since it was established in FY 2016-17. More recently, an officer position was assigned to the Community Engagement Office and works to coordinate bureau-wide engagement efforts. The overall impact of this strategy is unclear – substantial community engagement activity still goes on at the precinct/division level, and it is not yet clear what community engagement model the bureau will pursue under its soon-to-be- updated strategic plan. Coordinating Officer for GREAT program: The Gang Resistance Education and Training (G.R.E.A.T) program has historically been located in the Youth Services Division, and one officer was responsible for coordinating with the school systems and officers to teach the curriculum. Contrary to its name, the curriculum in this program is more focused on life skills and positive engagement with youth than specifically on training to resist gang involvement. The officer responsible for this program recently retired, and the program is now inactive. At the current time, there is no plan to reinstate the program coordination activities given the pressures on patrol staffing. Going forward, the curriculum will be taught on an ad hoc basis by School Resource Officers. The actual effect of reassigning this vacant position to transit is unclear. Sunshine Division Officer Liaison Role: This officer position provides a coordination and liaison function between PPB and the Sunshine Division, a non-profit organization. The liaison role includes public relations, media, community engagement activities, and volunteer coordination. The PPB’s longstanding relationship with the Sunshine Division helps provide volunteer hours and donations to deliver food and clothing to community members in need. If this
Portland Police Bureau 32 of 38 March 6, 2018 position were reassigned to transit, the bureau would need to rely on the Sunshine Division for help coordinating volunteer support. Juvenile Runaway Follow-up Services: This option would realign the funding for a vacant officer position that currently is being used to fund a limited term Senior Program Specialist position in the Youth Services Division. The program specialist manages an active caseload of runaway youth, providing mandated updates to the National Crime Information Center as well as organizing a number of community- engagement activities with youth. Because the limited term position is backed by funding from an officer position, transferring this officer position to transit would require the bureau to eliminate this function or fund it within other existing resources. As a general matter, CBO does not recommend the bureau transfer these officer positions to transit for the sole purpose of offsetting General Fund resources. However, given the patrol staffing issues outlined above, and the bureau’s $6 million ongoing General Fund request to fund additional officers to address patrol staffing, CBO does recommend that the bureau re-evaluate whether the staff time spent on coordination and liaison functions could be better utilized on patrol activities. CBO Recommendation: $0.00 I 0.00 FTE
Eliminate Front Desk Support and North and East Precincts PL_26, ($240,439), (4.00) FTE This reduction option would eliminate four Police Desk Clerks assigned to North and East precincts, eliminating all front desk support at those locations. Currently, front desks at North and East are staffed during standard work hours, but not on the weekend. Central precinct has front desk staff support on a 24/7 basis, and is staffed by five front desk clerks. An initial analysis of work hours for staffing coverage indicated that the bureau may be able to absorb a 1.0 FTE reduction and maintain current front desk staffing support. This reduction is likely to shift some workload onto other support staff at precincts, and there may be potential labor issues if rotational staffing across precincts is required. The package narrative indicates that a pilot kiosk program may be able to help offset the impact of closing reception areas at North and East precinct. However, further conversations with operational staff indicate that kiosks would be unavailable if this reduction is taken, as the lobby areas would be locked to the public. CBO does not recommend this reduction at this time, given the community expectation of receiving support at local precincts. To the degree that additional General Fund resources are required to fund Council priorities, however, CBO
Portland Police Bureau 33 of 38 March 6, 2018 recommends that the bureau analyze the impact of a reduction of one Desk Clerk on front desk staffing. CBO Recommendation: $0.00 | 0.00 FTE
Eliminate Contract for CHIERS & Hooper Detox PL_28, ($1,718,000), (0.00 FTE) This reduction option would eliminate contracts with Central City Concern for operation of the Hooper Detox sobering station and the CHIERS service that transports inebriated individuals the sobering station. These services provide medically supervised sobering beds, which both diverts inebriated individuals from jail and reduces officer workload responding to individuals inebriated in public spaces. In FY 2016-17, there were over 4,000 admissions into this program, 83% of which were through officer-initiated action. Elimination of this contract would put a substantial workload back on officers to engage in a law enforcement response to public inebriation (i.e. hospital transport or jail transport). CBO does not recommend the elimination of funding for this contract in the current year, given the negative impact on officer workload and the reduced potential for diversion. CBO Recommendation: $0.00 | 0.00 FTE
Eliminate Advocacy Funds for Trafficking Victims PL_29, ($309,000), (0.00 FTE) This reduction option would reduce $309,000 in external materials and services resources that has been historically dedicated to funding support services for victims of trafficking. PPB previously contracted with Janus Youth and the Sexual Assault Resource Center (SARC) to support provision of shelter, advocacy services, and counseling. Absent these type support services, victims may often return to their exploiter rather than participate in their prosecution. Going forward, PPB may retain this contract Janus Youth and SARC with Janus Youth or with SARC (a Janus subcontractor) with changes to alleviate concerns about negative reports on their performance and effectiveness. Alternatively, the bureau may seek out other potential contractors to provide similar support services going forward. At this time, CBO recommends that PPB retain the resource to pursue contracting for traffic victim support. If the bureau is unable to find a suitable contracted support for these services, the use of these funds could be reassessed in the future. CBO Recommendation: $0.00 | 0.00 FTE
Portland Police Bureau 34 of 38 March 6, 2018 Eliminate Discretionary Overtime PL_30, ($6,357,171), (0.00 FTE) This package presents a series of tiered reductions to the bureau’s discretionary overtime budget that would be effectuated by either reassigning specialty unit staff assigned to patrol or by eliminating patrol responses to certain call types. Returning specialty unit officers to patrol is a fiscal strategy that has already been put into place with certain units; as part of the 2016 GATR session on police staffing, the bureau transferred 24 officers to patrol in order to reduce substantial and growing use of overtime to backfill patrol staffing to meet minimum shift levels. This package expands that effort and puts forward options to return School Resource Officers, Youth Service Division officers, and Traffic Officers to patrol. The elimination of certain call types assigned for patrol response is a strategy that has not yet been pursued to reduce the pressure of increasing call volume on patrol staff. In concept, this strategy may have some merit if implemented carefully. Right now, for example, patrol staff spend 3,000 – 4,000 hours per year responding to low priority alarm calls, more than 90% of which are false alarms. Additionally, there are certain low priority call types where online reporting would be just as effective as a patrol officer response (i.e. the crime or situation is no longer urgent and a report needs to be taken). The bureau should evaluate whether there are higher thresholds that could be employed before an alarm call for service is dispatched, or whether public communications strategies could divert some low priority call types to online reporting. CBO does not recommend these reduction options as a way to recoup General Fund resources for other City priorities, as the wholesale return of these officers to patrol will likely negatively impact the missions of those specialty units. CBO does recommend that the bureau continue to explore options to reduce reliance on overtime through careful examination of the tradeoffs for these officers’ activity in specialty units relative to patrol activity. CBO Recommendation: $0.00 I 0.00 FTE
Portland Police Bureau 35 of 38 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS Below is a summary of Portland Police Bureau’s total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 4,800,251 $ 4,191,000 $ 4,191,000 Taxes - 1,544,904 1,544,904 Licenses & Permits 1,381,000 1,381,000 1,381,000 Charges for Services 2,661,364 3,011,400 173,028 3,184,428 Intergovernmental Revenues 9,083,174 8,425,008 460,632 (460,632) 8,425,008 Interagency Revenue 7,238,080 9,345,380 819,016 (819,016) 9,345,380 Fund Transfers - Revenue 1,400,000 1,400,000 Bond and Note Miscellaneous 860,050 879,853 879,853 Miscellaneous Fund Allocations 910,000 910,000 910,000 General Fund Discretionary 184,337,207 188,287,977 11,685,170 (11,132,165) 188,840,982 Total Resources $211,271,126 $216,431,618 $13,137,846 ($9,466,909) $220,102,555
Requirements Personnel Services $ 150,269,206 $ 155,970,937 $ 3,929,238 $ (3,290,255) $ 156,609,920 External Materials and Services 24,187,275 24,074,227 5,649,795 (3,719,891) 26,004,131 Internal Materials and Services 36,602,645 36,386,454 3,558,813 (2,456,763) 37,488,504 Capital Outlay 212,000 Total Requirements $211,271,126 $216,431,618 $13,137,846 $ (9,466,909) $220,102,555
Portland Police Bureau 36 of 38 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Police Bureau Adds
PL_01 - Add Sworn Positions to Meet Service Demand 01 64.00 6,026,920 646,400 670,092 7,343,412 14.00 1,451,268 (1,000,000) 0 451,268 PL_02 - One-time Replacement Shortfall for MDCs 02 0.00 0 1,320,000 0 1,320,000 0.00 0 0 1,100,000 1,100,000 PL_03 - Equipment Replacement Funding Backfill 03 0.00 374,000 0 0 374,000 0.00 0 0 0 0 PL_04 - RegJIN User Fee Shortfall 04 0.00 0 1,215,250 0 1,215,250 0.00 0 0 300,000 300,000 PL_05 - Enhance Neighborhood Livability & Walking B 05 21.00 2,455,959 816,000 0 3,271,959 0.00 0 0 0 0 PL_06 - Enhance Emergency Management Unit 06 8.00 954,534 279,600 100,000 1,334,134 0.00 0 0 0 0 PL_07 - Ongoing Funding for Service Coordination Tea 07 0.00 1,544,904 0 0 1,544,904 0.00 0 0 1,544,904 1,544,904 PL_08 - Enhance Behavioral Health Unit 08 3.00 522,571 82,000 48,924 653,495 0.00 0 0 0 0 PL_09 - Increase Interagency with City Attorney 09 0.00 0 181,000 0 181,000 0.00 0 0 0 0 PL_10 - Add Audit Team to Professional Standards 10 3.00 306,150 0 0 306,150 0.00 0 0 0 0 PL_11 - Learning Management System Analyst 11 1.00 0 105,538 0 105,538 1.00 0 105,538 0 105,538 PL_12 - Second Floor Training Center Buildout Fundin 12 0.00 0 1,800,000 0 1,800,000 0.00 0 0 0 0 PL_13 - LifeWorks NOW Ongoing Funding 13 0.00 110,000 0 0 110,000 0.00 110,000 0 0 110,000 PL_14 - Modify the Property Evidence warehouse entra 14 0.00 0 250,000 0 250,000 0.00 0 0 0 0 PL_15 - District Attorney Investigator Funding 15 0.00 0 374,266 0 374,266 0.00 0 0 0 0 PL_16 - Site Modification Funding for Central Precinct 16 0.00 0 1,725,000 0 1,725,000 0.00 0 0 0 0 PL_17 - Add FTE Supporting Public Record Requests 17 2.00 0 0 173,028 173,028 2.00 0 0 173,028 173,028 Total Adds 102.00 12,295,038 8,795,054 992,044 22,082,136 17.00 1,561,268 (894,462) 3,117,932 3,784,738 Reductions
PL_19 - Cease Small Grant Donations 01 0.00 (25,000) 0 0 (25,000) 0.00 (25,000) 0 0 (25,000) PL_18 - Eliminate Home Security Program 02 (1.00) (88,801) 0 0 (88,801) (1.00) (88,801) 0 0 (88,801) PL_20 - Eliminate Strength Programs 03 (2.17) (205,879) 0 0 (205,879) 0.00 0 0 0 0 PL_21 - Reduce Community Engagement Coordination 04 0.00 (115,158) 0 115,158 0 0.00 0 0 0 0 PL_23 - Eliminate Coordinating Officer for G.R.E.A.T. 05 0.00 (115,158) 0 115,158 0 0.00 0 0 0 0 PL_25 - Eliminate PPB's Sunshine Division Liaison Ro 06 0.00 (115,158) 0 115,158 0 0.00 0 0 0 0 PL_27 - Eliminate Juvenile Runaway Follow-up Service 07 0.00 (115,158) 0 115,158 0 0.00 0 0 0 0 PL_28 - Eliminate contract for CHIERS & Hooper Deto 08 0.00 (1,718,000) 0 0 (1,718,000) 0.00 0 0 0 0 PL_26 - Eliminate Front Desk Support at North and Ea 09 (4.00) (240,439) 0 0 (240,439) 0.00 0 0 0 0 PL_29 - Eliminate Advocacy Funds for Trafficking Victim 10 0.00 (309,000) 0 0 (309,000) 0.00 0 0 0 0
Portland Police Bureau 37 of 38 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Police Bureau Reductions
PL_30 - Eliminate discretionary overtime 11 0.00 (6,357,171) 0 0 (6,357,171) 0.00 0 0 0 0 Total Reductions (7.17) (9,404,922) 0 460,632 (8,944,290) (1.00) (113,801) 0 0 (113,801)
Total Portland Police Bureau 94.83 2,890,116 8,795,054 1,452,676 13,137,846 16.00 1,447,467 (894,462) 3,117,932 3,670,937
Portland Police Bureau 38 of 38 March 6, 2018 Budget Review | Fiscal Year 2018-19 Special Appropriations
Analysis by Asha Bellduboset
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $16.0 M $13.8 $12.4 $14.0 M $11.7 $11.5 $12.0 M $10.3 $8.5 $10.0 M $8.0 M
$6.0 M
$4.0 M
$2.0 M
$0.0 M FY 15 FY 16 FY 17 FY 18 FY 19 CBO FY 19 Requested Recommended
2.0 FTE 2.0 FTE 4.0 FTE 3.0 FTE 3.0 FTE 3.0 FTE
INTRODUCTION Special Appropriations is used for General Fund expenditures that are not specific to a bureau, are multi-bureau efforts, or provide Citywide benefits. These include payments to non-City agencies and funding for some City programs. Included in the fiscal year 2018-19 Requested Budget are ten add requests totaling $3.49 million in General Fund resources. About 38% of the requests affect Portland’s immigrant and youth populations, nearly 36% of the requests are programmatic increases, while 25% are development related. In accordance with budget guidance, Special Appropriations submitted 5% ongoing reduction packages for sixteen programs. CBO is recommending three of those reductions.
Special Appropriations 1 March 6, 2018 DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $3,488,785 Ongoing One-Time Other Revenues $450,550
$0 $0 $0 $0
$75,000 $10,460 $- $- $- -$414,460 General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
0.0 FTE 0.0 FTE 0.0 FTE Requested 0.0 FTE Requested Recommended Recommended
COCL/PCCEP SA_22, $192,218, 0.00 FTE This package requests $192,218 in one-time General Fund resources to create an Office Support Specialist (OSS II) position which would be responsible for all PCCEP subcommittee meeting logistics. Additional funds would support: a community policing survey, a website for the Police Committee on Community-Engaged Policing (PCCEP), and resources for community forums.1 The OSS II would build and maintain the PCCEP website, create training materials for PCCEP members, coordinate with Open Signal to broadcast PCCEP meetings, schedule committee meeting space and ADA accommodations, and provide logistical support for quarterly Town Hall meetings. The Compliance Office/Community Liaison (COCL) and PCCEP were created to comply with the Settlement Agreement between the Department of Justice and the City of Portland. Due to program restructuring in fiscal year 2017-18, the level of resources necessary to fulfill the settlement agreement remains uncertain.2 The
1 A website currently exists for COCL-COAB. http://www.cocl-coab.org/ 2 In FY 2017-18 the Community Oversight and Advisory Board (COAB), charged with was dissolved and the PCCEP was created to replace the community oversight and engagement aspect of the DOJ settlement agreement.
Special Appropriations 2 March 6, 2018 current COCL contractual agreement is for $458,000 of ongoing resources. However, the program reports that without these funds, PCCEP will not be able to carry out its work. PCCEP was created on August 24, 2017 as part of changes to the Settlement Agreement between the Department of Justice and the City of Portland. PCCEP’s goals are to assess the Settlement Agreement and to make recommendations on the Portland Police Bureau’s outreach efforts and policy directives. During the FY 2017-18 Fall Supplemental Budget process PCCEP was allocated $130,000, which included funding to reclassify the current staff person to Senior Management Analyst. Per the Settlement Agreement, the establishment of PCCEP must take place by July 2018, but the program has yet to be established. Further, the City is still waiting for the Federal court to approve the Settlement Agreement amendments, including the creation of PCCEP. As the program has yet to be approved by a Federal court or established at the City-level, the level of necessary General Fund resources is uncertain. Given that the City is awaiting guidance and approval of PCCEP, CBO does not recommend additional resources for this request at this time. CBO Recommendation: $0 | 0.00 FTE
Infill Implementation: Accelerate ADU Development SA_23, $2,100,00, 0.00 FTE This package requests $2,100,000 in one-time General Fund discretionary resources to accelerate the development of accessory dwelling units (ADUs) by filling a market gap in available financing tools for individuals who want to develop ADUs and reducing their development costs. This proposal aims to triple the development of ADUs over a three-year period, from an annual average of 500 units per year to 1,500 units per year, building upon the development incentive provided by the waiver in system development charges (SDC) that increased ADU development from a reported 50 units per year to 500. There are three common types of ADU: an attached internal apartment with shared or separate entrances from the main dwelling, an attached external apartment with entrances separate from the main dwelling, and detached structures – habitable outbuildings. Currently, the total average cost to build an ADU is over $100,000. For individuals who do not have the cash on hand to support the purchase, there are few financing options. Most commonly, using equity in an existing property to take out a new loan to cover the cost, financing with an existing or new home loan that includes the ‘as completed’ value of the ADU, using a personal loan, purchasing with credit cards, or obtaining a loan from family and/or friends. There are currently no loan programs marketed specifically for ADUs. As such, individuals who want to install an ADU on their property but do not have enough equity in an existing home, cannot qualify for a home loan,
Special Appropriations 3 March 6, 2018 purchase with credit cards, or ascertain a loan are unable to access capital. This request proposes using $1.5 million of the requested resources to fund the development of a non-traditional lending product that will allow more people to finance ADUs. The remaining $600,000 will be used to fund initiatives that will reduce the soft costs of developing ADUs by 20%.3 Further, the package aims to leverage City investment in developing ADU strategies by at least a 2 to 1 ratio. In addition, the proposal claims that if ADU development increases to 1000 per year, it will produce more than $400,000 in property tax revenues annually, while also increasing the rate base for the City’s utilities. CBO notes that key considerations for this proposal moving forward will be identifying exactly how reductions in soft costs will occur, what the dollar value of those reductions will be, and who will create the specialized financing tools. In addition, it may be worth engaging a consultant to help determine the current demand for an ADU financing tool, the approximate number of additional ADUs that might be developed as a result of access to financing, and the number of ADUs that might be developed as a result of a reduction in soft costs. Given the current constraint on General Fund one-time resources, CBO does not recommend funding this request at this time. CBO Recommendation: $0 | 0.00 FTE
Gang Impacted Families Team Coordinator SA_08, $62,000, 0.00 FTE This package requests $62,000 in one-time resources to support a full-time GIFT coordinator position for fiscal year 2018-19. The Gang Impacted Family Team (GIFT) Coordinator grant is managed through the Office of Youth Violence Prevention. The goal of GIFT is to suppress, intervene and prevent both youth and adults from gang involvement and violence. Members of GIFT’s multi-disciplinary team meet program goals through suppression efforts, information sharing, and providing support to gang members who want to leave the gang lifestyle. In FY 2016-17 this program was funded by the Portland Police Bureau (PPB) salary savings and was moved to Special Appropriations within the OMF-Grants Office during the FY 2017-18 fiscal year. Moving the program to Special Appropriations and allocating $60,000 in one-time General Fund resources allowed the City to continue the program in lieu of PPB salary savings. CBO has requested outcome data on the GIFT program but has not yet received it. In light of the lack of available General Fund resources and unknown outcomes, CBO does not recommend funding at this time. Council may want to review this package when performance data becomes available.
3 The project proposes allocating funds for the lending tools and permitting aspects of this proposal through an RFP process.
Special Appropriations 4 March 6, 2018 CBO Recommendation: $0 | 0.00 FTE
Office of Youth Violence Prevention Staff Representative SA_13, $10,460, 0.00 FTE This package requests $10,460 in ongoing General Fund resources to continue to support the Senior Commissioner Staff Representative classification for the entire fiscal year. Although the OYVP is staffed by a Director and Policy Manager, both positions were classified as Commissioner Staff Representatives (CSR) until the 2017 Fall Supplemental Budget process when the OYVP received funding to convert one CSR to the Senior Commissioner Staff Representative classification. The reclassification was approved on a one-time basis for the period of November 2017 through July 2018. The request was put forward for one-time General Fund resources with the understanding that an ongoing request would be made during the FY 2018-19 budget development process. The Office of Youth Violence Prevention (OYVP) was founded in 2006 as a citywide response to growing concerns of youth violence. According to the OYVP, the program reflects priorities identified by Council to build a more family-friendly city and emphasizes attacking the root causes of problems in neighborhoods rather than a focus on policing efforts. The OYVP is staffed by one Director and one Policy Manager coordinate services, administrate grant funding to non-profit organizations, and facilitate community problem-solving. The Office has a budget of $1,269,555 in fiscal year 2017-18, with a base of $1,086,056. The fiscal year 2017-18 budget is split between personnel services (22%) and external materials and services (78%). The external materials and services budget primarily consists of grants to partner organizations, like Portland Public Schools, Native American Youth, and the Portland Opportunities Industrialization Center[4] and other program vendors. If the Office were to absorb the ongoing costs for this position, the program could realign funds from the external materials and services budget. However, of the budgeted amount for external materials and services currently only 23% remain. As such, the program would have to forego payments to partner organizations or reduce spending. CBO does not recommend additional funding in light of the overall constraints on the General Fund. CBO Recommendation: $0 | 0.00 FTE
Council Transition Funding SA_14, $153,914, 0.00 FTE
[2] Brownfield Property Tax Assessment Report 2012, https://www.portlandoregon.gov/bps/article/502821 4 POIC is a high school and career training program for youth affected by poverty and homelessness in the City of Portland. https://www.portlandoic.org/
Special Appropriations 5 March 6, 2018 This package requests $153,914 in General Fund discretionary resources for transition costs related to the Office of the Commissioner of Public Affairs. Funds will be used to provide staffing for the incoming elected official and staff team after the General Election and to provide temporary office space, update facilities, and prepare technology and equipment for the new administration. By comparison, this budget is much larger than the most recent Council transition budgets as it not only adds funding for additional transition staff for two months rather than one, it covers costs for items not previously charged as part of Council transition budgets including temporary office space and labor costs. Personnel Costs This one-time request covers the cost of the transition team as limited term employees before they transition into the positions currently held by the Commissioner and staff. The transition budget for Office of the Commissioner of Public Safety and the Office of the Mayor during their fiscal year 2016-17 transitions present viable comparisons. For example, one month of personnel costs were requested for the Commissioner’s staff at $24,902. Due to the Mayor winning in November, personnel costs were funded for two months at $42,965. This transition package includes personnel costs for two months at $60,545, a 29% increase over the FY 2016-17 Mayor’s transition budget for the same timeframe and a 59% increase over the Commissioner’s transition budget. The increase in personnel costs for this request is due to the addition of a Commissioners Administrative Support Specialist (CASS) position to the transition team at mid- rate, which increases the personnel services budget by $17,580 or 30%. CBO recommends one month of personnel costs rather than the two months requested, in alignment with prior council transition budgets. As such, CBO recommends personnel costs of $25,000 for this transition budget. Technology Given that the current Commissioner of Public Affairs is one of the longest-serving Council members, there are significant costs in this transition budget for updating the technology to align with the technology suite provided to more recent Council Offices. Technology costs for prior transitions have ranged from $17,014 to $26,598. The Bureau of Technology Services (BTS) estimates technology costs for this transition at $48,000. CBO recommends aligning the funding for technology costs with prior transition budget requests, for a total of $27,000.
Temporary Office Space & Labor Costs Costs associated with building out conference rooms to create temporary work spaces for the incoming transition come to 27% of this funding request. Historically, incoming transition teams were housed in extra office space within the Portland Building, given that Portland Building is under renovation, unoccupied office space is limited. Facilities estimates move-in labor costs for the incoming transition team and outgoing Commissioner and staff at $2,588.
Special Appropriations 6 March 6, 2018
During the fiscal year 2016-17 election cycle, the facilities budget for the incoming Commissioner of Public Safety and the incoming Mayor were $20,000 and $15,000 respectively, with no labor costs included. Facilities estimates increased costs (approximately $20,000) to prepare the Office for new staff given that there have been no transitions for the Office of the Commissioner of Public Affairs in 15 years.
In accordance with budgeted amounts for prior transition budgets, CBO recommends $23,000 for the facilities and labor portion of this request. CBO Recommendation: $75,000 | 0.00 FTE
Last Thursday Add Package SA_18, $78,646, 0.00 FTE Last Thursday on Alberta is an event held in June, July, and August each year that offers entertainment and supports local artists. Last Thursday events draw up to 15,000 attendees each year from a diverse audience. An August 2016 intercept survey of 180 attendees found that Last Thursdays on Alberta noted an attendance of 40% people of color, which is higher than the citywide average of 28% people of color. In FY 2017-18 Last Thursday received $112,780 in General Fund resources and is slated to receive $31,734 in FY 2018-19. The budget for Last Thursday supports costs for liability insurance, event maintenance, and management. This package requests $78,646 in additional resources to support what the program manager characterizes as the program’s efforts to become a platform for cultural understanding, art education, and outreach efforts that exposes the community to cultural art, food, and stories. This proposal makes significant programmatic changes to the Last Thursday events. The program intends to direct more resources toward becoming an educational platform, expanding current level of service, and rebranding the event, which includes new logos. CBO does not recommend this grant request as it does not meet the criteria for FY 2018-19 stated budget priorities. In addition, there are equity concerns with funding a special event for one neighborhood district over others. CBO Recommendation: $0 | 0.00 FTE
Floodplain Management Update SA_20, $884,500, 0.00 FTE This one-time request for $884,500 is to support the Floodplain Management Program Update over a three-year period. The Floodplain Management Program Update will develop regulatory updates to the National Flood Insurance Program,
Special Appropriations 7 March 6, 2018 ensuring that the City of Portland maintains compliance with the Endangered Species Act (ESA) while also working to advance local goals and objectives. The Floodplain Management Program Update is a multi-bureau endeavor, with Executive and staff teams from a wide variety of City bureaus and a program manager housed in OMF. These bureaus will work together to ensure that updates to our floodplain management protocols meet individual bureau and citywide goals. The Federal Emergency Management Agency (FEMA) operates the National Flood Insurance Program (NFIP) to provide flood insurance to property owners.5 In 2009 FEMA was sued for failure to consult the National Marine Fisheries Service (NMFS) and potentially endangering salmon. FEMA settled the lawsuit and is now working through a number of recommended strategies proposed by NMFS. While Oregon can be sure that there will be changes to the NFIP, there is uncertainty regarding what exact changes in policy and implementation will occur. Given that the specific guidance on implementation changes to the NFIP have been delayed several times (expected March 2018), some aspects of the program cannot be scoped yet. However, the project has presented a funding request, outlined in the table below. The central component of this request is code development. The NFIP update will necessitate changes to the City’s regulatory code, which also presents an opportunity to implement additional development code improvements. Floodplain Management Update - Option B: Serial One-Time Funding over 3-Years Topic: Tasks 3-Year Use of Funds Year 1 Year 2 Year 3 Allocation Land Impact Analysis and $283,965.22 1.0 FTE GIS $141,982.61 $141,982.61 Development Projection Technician II Residential and Business $95,657.00 Contract services $31,885.67 $31,885.67 $31,885.67 Equity Impact Analysis and and/or internal Mitigation Program billable hours Development Climate Science Panel $9,765.00 Per diems $9,765.00 Code Development $381,510.50 1.0 FTE, City 381,510 Planner II Mitigation Banking Financial $50,000.00 Contract services $25,000.00 $25,000.00 and Management Models Communications & Public $63,600.00 Contract services $21,200.00 $21,200.00 $21,200.00 Involvement Totals $884,497.72 $601,578.77 $229,833.28 $53,085.67 In light of overall constraints on one-time General Fund resources, CBO does not recommend this request at this time.
5 Federal regulation requires that all floodplain properties with federally-backed mortgages carry flood insurance. Property owners can only buy flood insurance from the NFIP if their local governments choose to participate in the program. All thirty-six counties in Oregon and nearly all cities participate.
Special Appropriations 8 March 6, 2018 CBO Recommendation: $0 | 0.00 FTE
VOZ Add Package SA_21, $17,507, 0.00 FTE The VOZ Workers’ Rights Education Project provides services that are culturally specific to Portland’s day laborer community. Since 2008, VOZ has offered a safe and healthy place for day laborers while they wait for work. The MLK Jr. Worker Center provides skill building trainings, wage claim services, and actively assists laborers in developing community-based solutions to the issues they face. Voz reports that approximately 500 day laborers and 1,500 local employers use Voz’s services each year. Day laborers face a unique combination of barriers to access to other workforce development programs, and Voz’s MLK Jr. Worker Center provides jobs and services for this population that would otherwise remain underserved. Over the last 10 years Voz has seen an increase in demand for services from both day laborers and employers. In 2017, Voz reported a 12% increase in job placements and a 20% increase in wages earned through the worker center. This package requests $17,507 to be combined with existing VOZ resources to support a Workforce Development Coordinator position that will allow the worker center to meet the increased demand for services and meet the needs of its growing membership. Voz states that the Workforce Development Coordinator will allow the program to connect day laborers with 600 more jobs and increase the average earned wage from $16.22 per hour to $18.00 per hour by June 2019. As such, VOZ supports a unique workforce and contributes to citywide equity and economic development goals. Due to overall constraints on General Fund resources, CBO does not recommend this at this time. CBO Recommendation: $0 | 0.00 FTE
5% REDUCTION PACKAGES The following packages were submitted to meet the FY 2018-19 budget guidance 5% cut target for non-revenue generating General Fund bureaus. CBO has recommended three of the reduction packages. County Title 13 Funding 5% Cut SA_15, ($3,191), 0.00 FTE This package reduces the ongoing allocation to fund Multnomah County for the enforcement of the Specified Animals provisions in Title 13 of the City Code. This package reduces the Title 13 budget of $63,827 by $3,191. Given that the City already planned to reduce the current service level provided by the County due to
Special Appropriations 9 March 6, 2018 redundancies with existing City programs. A 5% cut will have no adverse impact on community livability standards. CBO recommends this cut as requested. CBO Recommendation: ($3,191), 0.00 FTE
Clean & Safe 5% Cut SA_09, ($1,233), 0.00 FTE The Clean and Safe program provides services to Portland’s downtown business area, which is in alignment with livability priorities outlined in this year’s budget guidance. This 5% reduction package in the amount of $1,233 reduces funding that supports the City’s share of the downtown Business Improvement District. These funds support guides, marketing strategies, enhanced security, and street cleaning. Given that this is an assessment on all downtown businesses, the City cannot reduce its payment without a much larger conversation about the overall Business Improvement District. CBO Recommendation: $0 | 0.00 FTE
City Membership & Dues 5% Cut SA_01, ($16,622), 0.00 FTE This special appropriation of $332,440 provides funding for memberships and dues available to Council Offices. This decision package reduces the General Fund discretionary allocation by $16,622. CBO does not recommend this reduction. City Council would need to identify specific memberships to reduce in order for this reduction to be feasible. CBO Recommendation: $0 | 0.00 FTE
All Hands Raised 5% Cut SA_02, ($10,049), 0.00 FTE The All Hands Raised program manages Cradle to Career, which brings together practitioners and leaders from education, business, government and nonprofit organizations to ensure the success of Multnomah County’s children from cradle to career. This package proposes reducing the allocation to this program by $10,049. Given the citywide equity impacts, CBO does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE
Future Connect 5% Cut SA_03, ($28,860), 0.00 FTE
Special Appropriations 10 March 6, 2018 The Future Connect program focuses on increasing the number of Portlanders enrolling in and completing college. The program provides scholarships for first generation or low-income students within Multnomah County, Columbia County, the Hillsboro School District, or the Beaverton School District to PCC and has enrolled over 600 students.6 This package proposes reducing the ongoing allocation for the Future Connect program by $28,860. This cut would reduce the amount of pass through funding and could potentially reduce the level of service to students. Given the potential impact on scholarship funding for students, CBO does not recommend this cut. CBO Recommendation: $0 | 0.00 FTE
Regional Arts & Culture Council 5% Cut SA_11, ($204,841), 0.00 FTE The Regional Arts & Culture Council (RACC) serves artists, arts organizations, schools and residents throughout Clackamas, Multnomah, and Washington counties. This package would reduce the ongoing funding allocation for RACC by 5% or $204,841. The FY 2018-19 Requested budget for RACC net of this proposed cut is $4,091,977, which is in line with its revised budget from FY2017-18 at $4,146,838. To absorb this cut, RACC will award fewer and smaller grants during this fiscal year. CBO recommends that, in taking this reduction, RACC ensures that those cuts do not disproportionately impact culturally specific organizations. Given the scarcity of General Fund resources and the need to realign funding to meet the Mayor’s priorities of public safety, homelessness, and livability, CBO recommends reducing the funding allocation for RACC by 10%. CBO Recommendation: ($409,682) | 0.00 FTE
VOZ Worker’s Rights Education Project SA_07, ($1,625), 0.00 FTE This package proposes a 5% cut to the VOZ program. The Requested budget for VOZ for FY 2018-19 is $48,375 net of this cut. Given that the funds passed through to VOZ provide direct services to workers, this 5% cut will likely reduce the program’s level of service. CBO does not recommend this reduction package. CBO Recommendation: $0 | 0.00 FTE
6 Future Connect, https://www.pcc.edu/foundation/what-we-do/future-connect/
Special Appropriations 11 March 6, 2018 Village Market – Janus Youth 5% Cut SA_06, ($3,491), 0.00 FTE The Janus Youth Program is a non-profit that operates a neighborhood grocery store in Portland, the Village Market. The Village Market provides access to healthy and affordable food to over 400 customers a day, largely residents of New Columbia and Portsmouth Neighborhoods. The funding provided for this program directly impacts their ability to respond to the needs of the community. Without this 5% cut, the Requested budget for the 2018-19 fiscal year is $66,324, and this cut will reduce the amount passed through to the organization by $3,491. CBO does not recommend this reduction package given potential service level impacts. However, CBO recommends that the City discuss its long-term plans for subsidizing this grocery store and develop criteria for when such a subsidy will no longer be needed. CBO Recommendation: $0 | 0.00 FTE
Office of Youth Violence Prevention 5% Cut SA_12, ($55,986), 0.00 FTE This package proposes reducing the ongoing funding for the Office of Youth Violence Prevention (OYVP) by $55,986. This cut will directly impact the level of service provided by the organization and reduce the amount of grants under $5,000 offered to non-governmental organization services for adult mentoring, youth economic development, and other organizations that support citywide minority populations. The Requested budget for OYVP for FY 2018-19 is $1,177,661. CBO does not recommend this reduction given the direct impacts on service provision to grant recipients. CBO Recommendation: $0 | 0.00 FTE
Last Thursday 5% Cut SA_17, ($1,587), 0.00 FTE This decision package would reduce the appropriation level for Last Thursday events held in the Alberta community during June, July, and August. This package reduces $1,587 of the $31,734 Last Thursday appropriation. This reduction will eliminate half funding support for renting portable washrooms at the July 2018, August 2018 and June 2019 Last Thursday events. Typically, the events budget for 30 regular portable units and 2 portable ADA units. This reduction will eliminate the funding for 10 units, leaving the event with 22 units. In addition to washrooms, City funds support Police overtime, private security, traffic control, and online communications.
Special Appropriations 12 March 6, 2018 Providing support for Last Thursday events on Alberta street is a non-core City service. CBO recommends this reduction as stated budget priorities for FY 2018-19 direct bureaus to reduce non-core services, but also notes that portable washrooms may be one of the most important uses of this funding when it comes to neighborhood livability. The City should consider taking the reduction from another area. CBO Recommendation: ($1,587) | 0.00 FTE
Restorative Justice 5% Cut SA_19, ($1,481), 0.00 FTE The Restorative Justice program moves schools toward safe and inclusive communities where all students are welcomed. The City of Portland has supported restorative justice programming since FY 2009-10 by granting funding for programming in the Parkrose School District. The proposed cut will reduce funding for the continuation of professional development that aims to reduce the disparity in treatment of students of color regarding suspension and expulsion. Due to the service level impact this reduction of $1,481 would have on the Restorative Justice program, CBO does not recommend this cut. CBO Recommendation: $0 | 0.00 FTE
Cash Oregon 5% Cut SA_04, ($4,061), 0.00 FTE Cash Oregon is an ongoing special appropriation allocation that provides financial education, counseling and free tax preparation services for low-income Portlanders. Cash Oregon would receive $77,167 for FY 2018-19 net of this reduction. This cut will impact Cash Oregon’s service level provision as the organization will have less available resources to provide free tax preparation services. Reducing the funding for Cash Oregon will reduce the program’s ability to maintain its service levels. Cash Oregon serves roughly 5,000 clients each year, bringing in over $5.5 million in tax refunds at their Lloyd Center site. While the program is largely staffed with IRS certified volunteers, a $4,000 reduction would reduce Cash Oregon’s ability to staff Spanish interpreters by 60%. Given the impact on the program’s service level provision CBO does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE
Citizen Utility Board Billing Insert 5% Cut SA_05, ($529), 0.00 FTE The Citizen Utility Board (CUB) of Oregon is an outside, independent advocate for
Special Appropriations 13 March 6, 2018 the City’s residential ratepayers. General Fund resources cover the cost of printing and mailing CUB utility bill inserts. This package would reduce by 5% the ongoing allocation to the Citizen Utility Board for its bi-annual billing inserts which are sent out to all Water Bureau account holders. Given that the City is under a contractual obligation to furnish all utility customers with a billing insert, any cut to ongoing funding for billing inserts places the City’s contractual obligation at risk.7 CBO Recommendation: $0 | 0.00 FTE
COCL PCEEP 5% Cut SA_16, ($39,884), 0.00 FTE This decision package reduces funding for the Compliance Office/Community Liaison (COCL) and the Police Committee on Community-Engaged Policing’s (PCCEP) appropriation level for the current fiscal year by $39,884. The current appropriation level for FY 2018-19 is $797,673. To absorb the 5% reduction of General Fund support, the program would reduce resources available in its miscellaneous services budget which includes room rental, translation services, ADA accommodations, and the community policing survey. By reducing the budget for miscellaneous services, resources for town halls and community forums would be reduced, limiting community access to the committees. Given that the committees were established as a requirement of the US DOJ Settlement Agreement with the City of Portland to improve police accountability, CBO notes that insufficient funding would leave the City vulnerable to being out of compliance with the terms of the Settlement Agreement with the DOJ and recommends keeping the program fully funded, thereby maintaining resources for community forums and the community policing survey. CBO Recommendation: $0 | 0.00 FTE
Mt Hood Cable Ready Regulatory Commission 5% Cut SA_10, ($15,250), 0.00 FTE The Mt. Hood Cable Regulatory Commission (MHCRC) is charged with negotiating and administering cable services franchise agreements for Portland and five other member jurisdictions. The MHCRC contracts for staff and other support services through a services agreement with the City of Portland. This package reduces the $304,998 Requested budget allocation for the MHCRC by $15,250. The proposed cut would reduce the amount of funding available for public engagement, personnel costs, and data collection critical to the technology and digital equity needs in the City. Reducing funding for the MHCRC could violate the franchise agreement which requires the City to pay its share of the MHCRC’s operating budget to the
7 Citizens’ Utility Board of Oregon Agreement Section 2.d
Special Appropriations 14 March 6, 2018 Commission unlike other franchise members whose appropriations are collected from the cable services franchise fees. During the current fiscal year, the City of Portland’s appropriation was $281,036. As a result of the 5% reduction from the City of Portland to the MHCRC during the last fiscal year, wages were not increased for fiscal year 2017-18. CBO does not recommend this reduction. CBO Recommendation: $0 | 0.00 FTE
Open and Accountable Elections Program 5% Cut SA_24, ($61,860), 0.00 FTE The Open and Accountable Elections program is the City’s matching campaign finance program, funded in fiscal year 2017-18. The program is planned for full implementation by the 2020 election cycle. This package was put forth to meet the 5% current allocation cut target for fiscal year 2018-19. CBO does not recommend this cut at this time; however, as program development moves forward it may be possible to use some of the OAE’s ongoing resources on a one-time basis in FY 2018-19. At the request of Council, CBO analyzed the OAE and determined that it may not need full funding in FY 2018-19. CBO Recommendation: $0 | 0.00 FTE
Special Appropriations 15 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS
Below is a summary of the Special Appropriations total budget.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Intergovernmental Revenues - 103,463 - - 103,463 Interagency Revenue 134,492 348,674 - - 348,674 Fund Transfers - Revenue - 1,237,200 (61,860) 61,860 1,237,200 General Fund Discretionary 11,178,703 8,871,227 3,110,555 (3,450,015) 8,531,767 General Fund Overhead 174,969 179,353 - - 179,353 Total Resources $11,488,164 $10,739,917 $3,048,695 $ (3,388,155) $ 10,400,457
Requirements Personnel Services $ 348,253 $ 577,985 $ 817,533 $ (792,533) $ 602,985 External Materials and Services 11,559,401 10,054,015 2,142,793 (2,557,253) $ 9,639,555 Internal Materials and Services 80,510 107,917 88,369 (38,369) $ 157,917 Total Requirements $11,988,164 $10,739,917 $3,048,695 $ (3,388,155) $10,400,457
Special Appropriations 16 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Special Appropriations Adds
SA_22 - SA COCL/PCCEP Add 01 0.00 0 192,218 0 192,218 0.00 0 0 0 0 SA_23 - SA Infill Implementation: Accelerate ADU Dev 02 0.00 0 2,100,000 0 2,100,000 0.00 0 0 0 0 SA_08 - Gang Impacted Family Team Coordinator 03 0.00 0 62,000 0 62,000 0.00 0 0 0 0 SA_13 - SA OYVP Staff Rep 04 0.00 10,460 0 0 10,460 0.00 0 0 0 0 SA_14 - SA Council Transition Funding-Comm #3 05 0.00 0 153,914 0 153,914 0.00 0 75,000 0 75,000 SA_18 - SA Last Thursday Add Package 06 0.00 0 78,646 0 78,646 0.00 0 0 0 0 SA_20 - SA Floodplain Mgmt Update Add 07 0.00 0 884,500 0 884,500 0.00 0 0 0 0 SA_21 - SA VOZ Add 08 0.00 0 17,507 0 17,507 0.00 0 0 0 0 Total Adds 0.00 10,460 3,488,785 0 3,499,245 0.00 0 75,000 0 75,000 Reductions
SA_15 - SA County Title 13 Funding 5% Cut 01 0.00 (3,191) 0 0 (3,191) 0.00 (3,191) 0 0 (3,191) SA_09 - SA Clean & Safe 5% Reduction 02 0.00 (1,233) 0 0 (1,233) 0.00 0 0 0 0 SA_01 - SA City Mem & Dues 5% Cut 03 0.00 (16,622) 0 0 (16,622) 0.00 0 0 0 0 SA_02 - SA All Hands Raised 5% Cut 04 0.00 (10,049) 0 0 (10,049) 0.00 0 0 0 0 SA_03 - SA Future Connect 5% Cut 05 0.00 (28,860) 0 0 (28,860) 0.00 0 0 0 0 SA_11 - SA Regional Arts & Culture Council 5% Cut 06 0.00 (204,841) 0 0 (204,841) 0.00 (409,682) 0 0 (409,682) SA_07 - SA VOZ 5% Cut 07 0.00 (1,625) 0 0 (1,625) 0.00 0 0 0 0 SA_06 - SA Village Market-Janus Youth 5% Cut 08 0.00 (3,491) 0 0 (3,491) 0.00 0 0 0 0 SA_12 - SA Office of Youth Violence Prevention 5% Cu 09 0.00 (55,986) 0 0 (55,986) 0.00 0 0 0 0 SA_17 - SA Last Thursday 5% Cut 10 0.00 (1,587) 0 0 (1,587) 0.00 (1,587) 0 0 (1,587) SA_19 - SA Restorative Justice 5% Cut 11 0.00 (1,481) 0 0 (1,481) 0.00 0 0 0 0 SA_04 - SA Cash Oregon 5% Cut 12 0.00 (4,061) 0 0 (4,061) 0.00 0 0 0 0 SA_05 - SA Citizen Utility Board Billing Insert 5% Cut 13 0.00 (529) 0 0 (529) 0.00 0 0 0 0 SA_16 - SA COCL PCEEP 5% Cut 14 0.00 (39,884) 0 0 (39,884) 0.00 0 0 0 0 SA_10 - SA Mt Hood Cable Regulatory Commission 5% 15 0.00 (15,250) 0 0 (15,250) 0.00 0 0 0 0 SA_24 - SA Open and Accountable Elections Program 16 0.00 (61,860) 0 0 (61,860) 0.00 0 0 0 0 Total Reductions 0.00 (450,550) 0 0 (450,550) 0.00 (414,460) 0 0 (414,460)
Total Special Appropriations 0.00 (440,090) 3,488,785 0 3,048,695 0.00 (414,460) 75,000 0 (339,460)
Special Appropriations 17 March 6, 2018 Special Appropriations 18 March 6, 2018 325 Budget Review | Fiscal Year 2018-19 Portland Bureau of Transportation Analysis by Jessica Kinard & Kea Cannon
Adopted Budget Revenues - 5-Year Lookback Other Sources General Fund $700.0 M $590.5 $545.0 $600.0 M
$428.9 $500.0 M $376.0 $400.0 M $315.8 $326.0 $300.0 M
$200.0 M
$100.0 M
$0.0 M
-$100.0 M FY 15 FY 16 FY 17 FY 18 FY 19 Requested CBO FY 19 Recommended
749.0 785.7 821.4 881.3 954.3 943.3 FTE FTE FTE FTE FTE FTE
INTRODUCTION
The Portland Bureau of Transportation’s (PBOT’s) FY 2018-19 requested budget of $589 million is 38% larger than the current year adopted budget of $427 million. Record revenues - primarily due to recent local and State legislation and the strong economy - are driving bureau growth and greater service level expectations. Bureau decision packages include $9.8 million in ongoing General Fund requests and the allocation of $15 million in new transportation revenues, as well as $41.4 million in one-time Capital Set Aside requests and $3.6 million in one-time General Fund requests. As required by the Mayor’s budget guidance, PBOT submitted a 5% General Fund ongoing reduction package of $441,601, reducing residential street
Portland Bureau of Transportation 1 of 24 March 6, 2018 sweeping from twice to once annually and eliminating 3 maintenance positions. KEY ISSUES
Growing Bureau Revenues and Capacity Challenges The size of PBOT’s budget has PBOT's total budget has fluctuated since FY10, but fluctuated in the past eight increased in recent years. Budgeted contingency and fund years, but has experienced balance expenditures have grown to 28% of total steady and significant growth $500 M budgeted expenditures in FY18.
in the past three years. While $400 M the budgets in fiscal year (FY) 2009-10 and FY 2010-11 $300 M included over $60 million for $200 M three large capital projects (Streetcar, East Burnside, and $100 M Downtown Mall Light Rapid $0 M Transit construction), recent FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Contingency & Unappropriated Fund Balance year budgets reflect more Fund Expenditures broadly spread operational Bureau Expenditures growth. As shown in the chart Total Budgeted Expenditures to the right, budgeted contingency and ending balance have grown the most in the past three years (by $67 million), followed by bureau expenditures at $62 million. PBOT’s growing contingency and ending balance is primarily a result of the bureau’s recent receipt of greater-than-budgeted revenues as well as recent underspending. The graph below illustrates this trend: actual bureau revenues have increased dramatically, while expenditures over the past several years have remained relatively constant. Although actual expenditures increased last year, they did not increase at the same rate as revenues. Over the past eight years, PBOT revenues have grown while expenditures $500 M have remained relatively constant. PBOT’s actual receipt of revenues increased by $202 $400 M million, or 86%. Growth $300 M occurred in both one-time
$200 M revenues ($115 million, 134% growth) and ongoing $100 M revenues ($86 million, 57% $0 M growth); this growth took FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 place in both bureau Total Actual Revenues discretionary and non- Actual Ongoing Discretionary Resources discretionary revenues. Total Actual Expenditures (no contingency) Nearly all of the revenue growth occurred in the past four years, with notable increases in System Development Charge (SDCs) and other service charge revenue, and parking
Portland Bureau of Transportation 2 of 24 March 6, 2018 revenue. The majority of increased revenues are likely the result of a strong economy; however, the bureau has taken measures to maximize its collection of General Transportation Revenue through process improvements, technological efficiencies, and new practices in the parking services group. The bureau has also received new revenue streams, as with Fixing our Streets local gas tax beginning in FY 2016-17. Transportation's Operating Fund ending balance Beginning fund balance in the $200 M increased 144% over the past two years to $165 million. Transportation Operating Fund alone has increased from $2 million in FY 2011-12 $150 M to $165 million in the current year. The bureau has $100 M experienced growing SDC and discretionary (GTR) balances, $50 M and has set more money aside in reserves for the Streetcar $0 M FY12 FY13 FY14 FY15 FY16 FY17 and parking meter and fleet GTR Fund Balance and Carryover SDC Fund Balance equipment replacement or Reserves and Set-Asides Total Ending Balance maintenance. In the past four years, PBOT underspent budgeted expenditures by an average of 13%, or $30 million per year.1 Underspending in personnel services, professional and miscellaneous services, and capital costs have driven overall underspending. Personnel services underspending has been most pronounced in PBOT’s Engineering and Development groups, which underspent personnel budgets by $9.6 million in FY 2016-17. Personnel underspending appears to largely be related to position vacancies; a historical point-in-time analysis reveals that the bureau has had between 8% and 14% of regular, full time positions vacant (totaling between 58 and 119 positions) over the past four years. The Engineering Group manager cited challenges with hiring, specifically the need to compete with the private market for a limited number of specialized hires, as a key challenge to the group’s success. This challenge is not unique to PBOT - many bureaus experience challenges to quickly scale activities to changing resource availability – and is likely the result of several factors, including factors outside of bureau control. The City should investigate opportunities to assist the bureau in scaling up its activities. Changes in Discretionary Funds PBOT’s actual receipts of ongoing discretionary resources (primarily comprised of “General Transportation Revenue” or “GTR”) has grown by $61.5 million, or 80%, since FY 2009-10. This includes $15.6 million in General Fund and local gas tax that are dedicated to specific programs or projects - omitting these ‘dedicated’ discretionary revenues results in a 63% increase of GTR since FY 2010. Relatedly,
1 Using revised budget and actual year-end figures from each year, and excluding contingency.
Portland Bureau of Transportation 3 of 24 March 6, 2018 GTR non-carryover beginning balance has grown significantly, from $0 in FY 2011- 12 to $42.4 million in the current year, equating to one third of total GTR budgeted expenditures in the current year. The bureau budgeted just under $7 GTR beginning balance has grown 315% million in beginning balance in the to $42 million in the past two years 50 current year to support budgeted expenditures. The bureau has also had 40 significant levels of GTR and General Millions 30 Fund carryover in the past two years, 20 which does not contribute to beginning 10 balance figures. The bureau assumes it 0 will require all projected GTR fund FY12 FY13 FY14 FY15 FY16 FY17* FY18 balance to sustain the current level of *FY17 is an estimate from bureau documents service over the next ten years. Although the bureau may need the fund balance to create a ten-year balanced budget, the bureau’s ability to spend down fund balance will depend on the bureau’s ability to scale up its operational capacity. Managing Competing Priorities for Resources PBOT is the steward of 1/5 of the land area in Portland,2 and managing the competing interests on and below the land is a complex and significant task. City Council and/or the bureau have adopted 24 plans with over 650 policy goals and action items related to providing a complete transportation system for Portlanders.3 These policies and actions primarily focus on safety, accommodating growth, active transportation, connectivity and public access, design and development, reducing vehicle miles traveled, and equity. PBOT has worked to incorporate all individual planning documents into the Transportation System Plan (the transportation section of the City’s Comprehensive Plan) for continuity. Additionally, PBOT has developed two-year strategic plans (Portland Progress Plan I and Plan II) which highlight specific near-term action items. The number of policies and actions present an implementation challenge for the City and for PBOT. According to PBOT’s most recent asset status and condition report, meeting the bureau’s asset management and capacity gap, including safety and equity goals, would require an additional $3.63 billion over the next ten years; this includes addressing the bureau’s asset management backlog of $2.23 billion over the next ten years.4 If the City were to eliminate its two largest General Fund
2 PBOT Portland Progress II Plan, Wisely Manage City Resources goal description: https://www.portlandoregon.gov/transportation/article/637885. 3 CBO reviewed both citywide plans and bureau specific planning documents to gather a sense of the magnitude of PBOTs requirements and considerations as it provides services. These do not include the various federal, state or regional policy documents, nor is this a complete list of policy documents. 4 PBOT Asset Status and Condition Report FY 15-16, p5:
Portland Bureau of Transportation 4 of 24 March 6, 2018 bureaus – Police and Fire – and provide all the funds to PBOT, the funding would not be sufficient to meet these goals. The word cloud below is created from the hundreds of policies found in the plans studied, with word size reflecting the word prevalence in plan policies. Although the asset management backlog is the largest quantified need of the bureau, asset management and maintenance was not a primary phrase in the 650 policies reviewed by CBO. Asset management is however discussed in a separate document, The Asset Management Policy Statement.5 The bureau was without an asset manager for three years, until one year ago, as asset management duties were spread across the bureau. CBO highlights this analysis to demonstrate the expansive array of issue areas that the bureau strives to address. While there are benefits to ambitious goal-setting, the risk is that it may lead to a chronic perception of underfunding and under-delivery. When resources are not sufficient to achieve all goals, but all goals are deemed important, it also renders resource prioritization for maximum impact challenging. The bureau has successfully leveraged outside resources, especially for capital projects; however, the resources required to meet all goals continue to exceed what is available from internal and external sources. This issue is especially apparent in this year’s budget request: the bureau is projected to have record revenues with the passage of HB 2017, Fixing our Streets local gas tax, continued strong parking revenues, new General Fund Capital Set- Aside and Build Portland allocations, and with growing beginning fund balances. However, the bureau’s requested budget submission emphasizes inadequate resources to achieve its mandate, and requests $9.8 million in ongoing General Fund resources to assist with critical programs and projects. Citywide, bureaus requested $31.9 million in ongoing General Fund adds. While it’s true that the bureau requires significantly more funding to achieve all its goals, the same can be said for many bureaus across the City, and the City’s revenue growth is the
https://www.portlandoregon.gov/transportation/article/666967 5 Asset Management Policy Statement. Retrieved online on January 22, 2018 from: https://www.portlandoregon.gov/transportation/article/456762
Portland Bureau of Transportation 5 of 24 March 6, 2018 strongest it has ever been. Given this fact, Council and PBOT should not lose sight of the impressive body of work that the bureau will do with its existing and forthcoming resources, and continue to focus on prioritizing goals and maximizing the utility of all resources. PBOT is making investments to bolster its internal capacity to deliver increased services and projects as a critical first step in ensuring these new funds will be delivered effectively. Moving forward, CBO recommends the bureau and the City critically assess the tradeoffs of each new investment to ensure the utility of these dollars are maximized. DECISION PACKAGE ANALYSIS AND RECOMMENDATIONS Adds Reductions
General Fund General Fund $44,975,000 Ongoing One-Time Other Revenues
$- $- $-
$(401,669) $(401,669)
$15,331,404 $15,520,053 $9,840,722 $7,500,000 $(1,980,000)
$-
General Fund General Fund Other Revenues Ongoing One-Time
Bureau Request CBO Recommendation
53.0 FTE 33.0 FTE (13.0) FTE (3.0) FTE
Requested Recommended Requested Recommended
Reinstate ULF Funding TR_01, TR_17, ($0) During the FY 2017-18 budget development process, $1,980,000 in ongoing General Fund resources associated with Utility License Fees was realigned from PBOT’s budget to fund the beginning of the Build Portland initiative. PBOT was provided $1,980,000 in one-time resources in FY 2017-18 as bridge funding. PBOT submitted the TR_01 cut package to demonstrate the impact of the loss of funding, and has separately (TR_17) asked for the return of the $1.98 million in General Fund ongoing resources to restore the work in the cut package.
Portland Bureau of Transportation 6 of 24 March 6, 2018 The cut package proposes eliminating 10 maintenance positions and materials and services for the construction of ADA ramps at a total savings of $1.5 million, and eliminating $480,000 in materials and services for signal and streetlight major maintenance. This cut would reduce the annual construction of new ADA ramps from the 500 currently funded in the base budget to an estimated 200-250 and reduce the number of streetlights repaired from an estimated 130 to 80. Initial Build Portland (BP) project rankings include $34 million for PBOT projects, of which $14 million is for ADA ramps and signal and streetlight major maintenance. This $14 million would be sufficient to support the work in this package for seven years. Assuming BP recommendations, no additional funds are necessary. CBO Recommendation: $0.00, 0.00 FTE
Additional ADA Ramp Funding TR_02, TR_04, $10,000,000 PBOT is requesting $5 million in ongoing General Fund resources and $5 million in one-time Capital Set-Aside resources to construct ADA curb ramps as identified by the Civil Rights Education and Enforcement Center (CREEC). For each $5 million, the bureau estimates it can construct 750 ramps, in addition to the 500 ramps supported in the bureau’s base with GTR and Build Portland recommended resources. The city has 38,035 corners, which often have more than one ramp, and the exact number of ramps requiring construction or upgrades is currently unknown. PBOT prioritizes improvements by looking at corners presenting mobility barriers and safety hazards in 1) high pedestrian crash locations; 2) high pedestrian use areas; 3) places with higher concentrations of people with disabilities; 4) key locations within identified pedestrian networks; and 5) racially and geographically underserved locations. PBOT’s base budget includes $2.3 million for the construction of ADA ramps; additionally, the bureau has allocated $331,034 in Fixing our Streets funding for ADA compliant curb ramps in select locations, and PBOT received $5 million in one-time, Capital Set-Aside dollars in the current year to construct 1,000 ramps associated with the CREEC settlement. CREEC alleges 1,200 missing ramps. The settlement will determine the City’s legal requirements to construct ramps not constructed during eleven years of paving projects, and bureau requirements to bring other ramps up to ADA compliance. To achieve equity and asset management goals, the bureau aims to build 700-1,000 ADA-compliant ramps each year,6 and the CREEC settlement will likely require additional upgrades. As such, there is likely an ongoing need for this work. Because the CREEC lawsuit has not yet been settled, the bureau has not spent any of the $5 million in General Fund Capital Set-Aside funding. After the lawsuit is
6 PBOT 2016 Asset Status and Condition Report. P43. https://www.portlandoregon.gov/transportation/article/666967
Portland Bureau of Transportation 7 of 24 March 6, 2018 settled (expected mid-2018), PBOT will conduct an inventory of citywide ramp conditions to inform ramp construction and rehabilitation prioritization. The bureau has dedicated $2.3 million in annual base budget funding towards needed ramp construction to demonstrate to CREEC a good-faith effort to address the need during lawsuit deliberations. The $5 million allocated in the current year will enable the bureau to significantly address the alleged 1,200 ramps first. CBO recommends prioritizing currently available General Fund and Capital Set-Aside resources for other high-priority or high-risk projects that need immediate attention, and revisiting ramp funding requirements once the lawsuit is settled. CBO Recommendation: $0.00, 0.00 FTE
Capital Set-Aside Requests TR_04, TR_16, $41,363,409 Capital Set Aside Projects PBOT originally submitted 12 projects totaling $41,350,000 for General Fund Capital Set-Aside funding consideration. The top ranked projects include: • ADA accessible sidewalks and Traffic Signal Reconstruction Program - $6.5 million. As discussed in the review of TR_01, $14 million in Build Portland funding has been prioritized for this work, which will replace PBOT’s base budget funding for these efforts for seven years. The bureau requests additional Capital Set-Aside funds for these projects as the number of ramps and traffic signals requiring reconstruction exceeds what will be constructed using base budget resources. Available funding should be prioritized for highly- ranked projects that may be immediately addressed. As discussed above, PBOT has $5 million in unspent Capital Set-Aside funding for ADA ramps from the current year, and CBO recommends waiting to provide additional ADA ramp funding until the CREEC settlement is finalized. ADA ramps ranked 2nd among 36 projects, and will likely be eligible to receive more Capital Set-Aside funding in future budget processes. Due to the high Capital Set-Aside ranking for the traffic signal reconstruction program (ranked 3rd out of 36), CBO recommends the $1.5 million for this program. This allocation will address 3 signals; CBO notes that the cost per signal has more than doubled due to ADA accessibility requirements associated with the projects. • NE 42nd Avenue Bridge - $3 million. This project requested $7,270,822 and received $4,924,084 in Capital Set-Aside funding in the 2017-18 Fall BMP. The bureau has requested an additional $3 million to complete the project via Build Portland or through Capital Set-Aside (the Capital Set Aside request is slightly less). This project has consistently ranked highly due to health and safety impacts of the bridge. The bridge provides a critical pathway to 24,000 jobs located in the Airport district. The project includes required safety improvements and added pedestrian and bicycle use upgrades for 0.4 miles
Portland Bureau of Transportation 8 of 24 March 6, 2018 leading up to and off the bridge as the bureau strives to enable multi-modal transportation options to this employment hub. This is in line with a key bureau goal to have 70% of commuting trips be by walking, biking, or public transit. However, 55% ($7.7 million) of the total $14 million project cost is dedicated to pedestrian and bicycle use of the bridge, and the bureau does not currently have estimates on the number of people that currently – or would, given improvements – walk or bike to work over the bridge. The bridge does provide an essential link to a complete cyclist path being developed through the 47th avenue Local Improvement District project. Even so, CBO questions whether a $7.7 million investment in pedestrian and bicycle improvements in this location would maximize achievement of citywide goals. Build Portland funding has been recommended for this project; however, CBO recommends the bureau and Council consider whether it would be more advantageous for bureau and City goals to reallocate some of the project funds to other needed projects. • Halsey Corridor Traffic Signal Replacement - $3,000,000. Ranking 4th, this project will reconstruct or replace traffic signals at 5 intersections between NE 47th and NE 74th on NE Halsey street. Work will enhance safety on this high crash corridor and also benefit neighborhood greenways. The total project budget is $9 million (medium confidence) and includes $6 million in System Development Charge (SDC) and new HB 2017 revenues. Due to the high project ranking, CBO recommends this request. • Traffic Signal Upgrades Supporting Economic Development - $3,000,000. Ranking 5th, this project will provide upgrades to traffic signal hardware, wiring and poles, and software, including preventative maintenance work. PBOT will partner with private developers to maximize the utility of these resources. Due to the high project ranking, CBO recommends this request. Ongoing Operations and Maintenance Costs City Policy recommends that bureaus include maintenance costs in ongoing bureau operations when updating or adding infrastructure. PBOT traditionally has not budgeted these costs, which has contributed to the bureau’s current need for $2.23 billion to bring all assets to fair or better condition. PBOT requests General Fund ongoing resources to support maintenance for the North Greeley Multi-Use Path Project, funded with Capital Set-Aside funds in the FY 2017-18 Adopted Budget. CBO supports the bureau’s efforts to ensure ongoing funds are available for asset maintenance. However, PBOT’s primary ongoing revenue source is GTR, and ongoing maintenance for PBOT assets should be built into the bureau’s internal base budget allocation. CBO Recommendation: $7,500,000, 0.00 FTE
Expanded Work with New Revenue TR_02, TR_06, TR_07, TR_10, $14,995,250, 34.10 FTE
Portland Bureau of Transportation 9 of 24 March 6, 2018 As a result of the State’s passage of House Bill 2017 (HB 2017), PBOT projects a sustained increase in gas tax revenue: from $16.6 million in FY 2018-19 to $35.1 million in FY 2027-28. HB 2017 will provide a projected $283 million over the next ten years. However, PBOT estimates that $3.6 billion is required over the next ten years to bring current assets into fair or better condition, complete the transportation system, and meet bureau Vision Zero and equity goals. As such, it is critical these resources be delivered as cost-effectively as possible to meet City and bureau goals. To this end, CBO recommends the bureau consider trade-offs for each project component to maximize the impact of available resources. These tradeoffs are discussed in each package group, below. New Capital Projects PBOT proposes to invest $9.2 million towards the following capital-related expenditures: • Selling bonds at a cost of $2 million/year for 15 years to generate $20 million in capital project funds for specified projects; • $1 million for Naito parkway multi-modal improvements; • $4.4 million for safety projects on SE Division, and citywide Vision Zero and Safe Routes to School projects; • Seven new positions, including four positions to work on ADA ramp design, two signal and streetlight electricians, and one position and $500,000 in contract resources to provide initial planning and design efforts on prospective projects; and • $500,000 to leverage outside resources to fund greater street improvements. CBO recommends these investments, but recommends the bureau and Council consider: 1. Bureau bonding of HB 2017 revenue streams is estimated to cost $10 million in debt service payments over 15 years. If the bureau is able to structure and deliver the planned projects through a pay-as-you-go campaign, the savings could be re- deployed towards other needs and/or protect against future revenue uncertainties. PBOT finance often appropriately weighs project timeline needs with the potential to save money through a pay-as-you-go campaign. Given that the projects will not be construction-ready for 3-5 years, and given total HB 2017 revenues and ending balance figures are projected to increase over the next several years, the bureau may be able to plan its resource allocation through a pay-as-you go campaign with minimal setbacks to timeline. 2. This package includes $765,000 to support a nighttime operations pavement markings crew included in a separate package. As discussed below, the bureau’s existing striping efforts meet bureau goals, while the bureau lags behind goals in
Portland Bureau of Transportation 10 of 24 March 6, 2018 pavement maintenance. Spending $765,000 on pavement maintenance instead of striping could save $600,000 in future paving needs. See review of maintenance investments below for more information on this request.
Expanded Maintenance Investments PBOT proposes to invest $5.2 million in ongoing GTR and 20 additional FTE to the following maintenance activities: • $860,000 and six FTE to fill 15-20 more potholes per day, and meet the City’s 30-day repair goal;7 • $2 million for preventative pavement maintenance through micro-surfacing and slurry-seal treatment, potentially saving a net of $1.6 million in what would otherwise be deferred maintenance costs; • $1 million and four FTE to grade and gravel 20 lane-miles of unimproved streets annually, providing maintenance work on 36% of all unimproved streets per year; • $500,000 and nine FTE for a night maintenance crew to increase volume of pavement striping and marking (position funds are also part of the capital project package); • $844,300 and one electrician for several projects including: preventative bridge maintenance, tunnel lining replacement, guardrail maintenance, and asset inspections and assessments. PBOT currently has over 425 service requests for pothole repair; each on average involves filling five potholes. This request level is approximately 325% over bureau targets; as a result of the backlog, PBOT currently estimates pothole repairs to take twice as long as their target time of 30 days. While filling potholes does not prevent further road deterioration or address pavement condition, it is important for safety and livability purposes.
Avg cost per Pavement Micro-surfacing is Pavement Treatments lane mile Condition typically applied to Micro-surfacing or Slurry Seal $ 167,000 Fair to Poor pavement in fair 2-inch grind and pave $ 300,000 Poor condition, bringing the condition to very good, and extending the life of the pavement by 8 years. Micro-surfacing and slurry seal treatments are estimated to cost 44% less than the 2-inch grind and pave treatments required to obtain very good pavement condition once pavement has deteriorated to poor condition. This $2 million investment thus saves up to $1.6 million in future costs. Portland has roughly 1,840 pass miles of striping, and the City has a goal to paint
7 The bureau strives to fill all potholes requested for service within 30 days.
Portland Bureau of Transportation 11 of 24 March 6, 2018 each lane mile and marking 2-3 times a year to ensure visibility. In FY 2016-17, the bureau met striping goals by painting 4,229 lane miles. The proposal to add a night maintenance crew would add efficiency – it is easier to paint when there is less traffic – and would facilitate a durable marking program which involves paint that takes longer to dry but could last years instead of months. CBO recommends all investments proposed in this package; however, CBO also recommends the bureau continue to meet its goal of painting each marking 2-3 times through increased night work and durable markings, and reallocate existing daytime painting resources towards preventative paving. According to the 2016 Asset Status and Condition report, the City has over 300 arterial/collector road lane miles in fair condition; the $2 million in this package supports preventative treatment for 12 lane miles annually, and placing more resources towards this effort would further defray future costs. Additional Support Services With anticipated new indirect resources generated from HB 2017 projects, the bureau proposes funding eleven new support services positions and additional required office space, including: • Two positions to focus on community outreach and involvement in implementing new projects; • One legislative analyst to move projects and policies forward, and develop and maintain State transportation funding; • Two positions to further equity goals: one assisting with the implementation of the bureau’s equity plan, and the other to facilitate outreach to the Minority, Women, & Emerging Small Business (MWESB) community and managing existing contracts; • One position to coordinate the existing modal planners and coordinators working in the Complete Streets Planning section; • Two senior public works supervisors and one Business Operations Manager in the Maintenance group; and • One human resources coordinator and two management analysts in business operations. These packages would enhance bureau efforts around community engagement, equity and inclusion, and process improvement goals, but the measurable impact of these efforts is unknown. A compelling argument can be made for each of these positions, but each should be considered in direct opposition to providing other needed bureau services. CBO notes that it might be possible for the coordination of the modal coordinators to be done by the modal coordinators themselves, and for outreach to be conducted by one instead of two new FTE. The funds from these two positions could be redeployed to support other bureau priorities in their budget request such as the construction of 30 more ADA ramps annually or 3 new
Portland Bureau of Transportation 12 of 24 March 6, 2018 maintenance workers for snow/ice removal and other maintenance needs. Additionally, the bureau has processed seven GTR-funded position reclassifications in the current year and requests two additional reclassifications in this budget at an estimated total additional cost of up to $275,000 in annual GTR. These funds could instead construct 36 more ADA ramps annually, or fund a significant portion of the Vision Zero Citywide Awareness Campaign as discussed in TR_19. CBO does not recommend against any of the requested positions, but encourages Council and the bureau to consider these trade-offs with each new position. Additional Engineering Positions Funded through Fixing our Streets and capital improvement plan projects, PBOT proposes adding three new engineering positions and converting one part time position to full time. Fixing our Streets local gas tax resources are expected to provide $64 million over four years for an identified list of projects. CBO recommends these positions. CBO Recommendation: $14,995,250, 34.10 FTE
NW Streetcar Extension TR_05, $370,000 PBOT requests one-time General Fund resources for public involvement, design, and initial project management to expand the Portland Streetcar 2.3 miles in NW Portland. This package will support PBOT, Portland Streetcar Inc., TriMet and other City bureaus, in collaborating with the community in deciding between two possible alignments. Both options - NW 18th/19th streets and NW Wilson/York or NW Raleigh – currently have moderate access to public transportation.8 According to PBOT’s equity matrix,9 these project areas have low-moderate equity scores, depending on which route is selected. Presently, there are no plans for low-income housing development in this area, however the bureau suggests that this expansion will serve other low-income housing developments in other areas of Portland by connecting those residents to NW Portland. The estimated total project cost is between $46 - $49 million depending on the route selected. Ongoing maintenance costs for this addition are estimated at $4.7 million, to be split 50/50 with TriMet. Eventually TriMet will contribute up to 85% towards annual operating costs. Expanding the Streetcar would enhance livability for this area of Portland and increase the percentage of trips made by people walking, biking, or transit, through additional public transportation options, and reduce carbon emissions – meeting the Mayor’s budget guidance and various City goals. However, the project
8 TriMet Trip Planner. Interactive Map: https://ride.trimet.org/?tool=routes#/ 9 Portland Bureau of Transportation Equity Matrix: https://pdx.maps.arcgis.com/apps/MapSeries/index.html?appid=2e2252af23ed4be3a666f780cbaddfc5
Portland Bureau of Transportation 13 of 24 March 6, 2018 may not serve the communities most in need of public transportation. The relatively low equity matrix scores indicate that there may be other project opportunities the bureau could implement that better serve communities of concern. Given the limited availability of General Fund resources, CBO does not recommend this request. CBO Recommendation: $0.00 | 0.00 FTE
Congestion Pricing System-Wide Modeling TR_08, $350,000 This request would support technical analysis and system-wide modeling to evaluate potential congestion pricing scenarios and complementary multimodal improvements. This project is related to Oregon Department of Transportation’s (ODOT) “value” pricing of I-5 and I-205 project. In November 2017, PBOT sought City Council approval to collaborate with ODOT on their value pricing project and to coordinate with the Bureau of Planning and Sustainability (BPS) and regional partners to evaluate broad congestion pricing best practices (Resolution 37334).10 The financial impact statement (FIS) presented to Council stated that project work would “be completed by existing staff with existing budgets.” PBOT has since realized that to complete a supplemental modeling with more comprehensive regional-wide approach to ODOT’s, it would need more funding. Area partners would contribute $300,000 - $400,000 towards this analysis. This project is aligned with Mayoral budget guidance in that it may increase revenues, however it is currently unknown how revenues would accrue or what restrictions would be applied to the use of those funds. The request also aligns with City goals around increasing mode share and reducing carbon emissions. PBOT is currently projected to underspend its current year general transportation revenue budget by over $2 million, which may provide a one-time funding source for this project. Due to limited available General Fund resources, CBO does not recommend General Fund support for this request. CBO Recommendation: $0.00 | 0.00 FTE
Columbia Blvd Crossing Design Funding TR_09, $650,000, 0.00 FTE State House Bill 2017 includes $1.5 million to provide a safer crossing at North Columbia Boulevard near George Middle School; however, the State will not make the funding for this project available until 2019. The crossing has been the site of several serious injury crashes, including a near fatal crash of a student in 2016. PBOT seeks $650,000 in one-time General Fund resources for project development
10 City Auditor’s Office: http://efiles.portlandoregon.gov/Record/11443602/
Portland Bureau of Transportation 14 of 24 March 6, 2018 and design to enhance the safety of the project and meet construction deadlines. CBO recommends PBOT discuss the impact of the delayed State allocation with the State to see if earlier funding allocation is possible. Due to limited General Fund resources, CBO does not recommend additional funding for this request. CBO Recommendation: $0.00 | 0.00 FTE
Derelict RV Enforcement TR_11, $1,715,962, 6.00 FTE PBOT manages the Abandoned Autos program,11 including responding to the increasing complaints of derelict RVs across Portland, as part of meeting the bureau’s responsibility of keeping a clear and accessible public right-of-way.12 The bureau is requesting $1.5 million in ongoing General Fund resources to support six positions and programmatic materials and services to effectively manage this program. Since 2012, abandoned auto calls have increased 266% - from 8,200 to over 30,000. The bureau believes this increase is linked to the homelessness and housing crisis. The increasing complaints have resulted in the bureau moving six positions away from revenue-generating work within its parking enforcement division to address abandoned RVs. The average response time is one week from the time of the complaint to investigation. PBOT estimates program costs including cleaning, noticing, removing and disposing of an unoccupied RV averages to $2,540 per vehicle. The 2018 estimated total RV tows is 400, for a total materials and services cost of $1 million. The total program cost - including 6 FTE - is $1.7 million, which is partially offset by $189,000 in revenue from towing fees. PBOT estimates that parking enforcement has lost $900,000 (at $150,000/officer) in annual revenue by having existing officers prioritize abandoned vehicle work. If abandoned RVs are not disposed of, they may be recycled back into the community and create more complaints and unsafe/unstable living conditions. PBOT’s Vehicle Inspection Team responds to complaints in person, assessing whether the abandoned vehicle is inhabited or truly abandoned. Staff coordinate daily with the Joint Office of Homeless Services (JOHS) for training and issue education, coordination of efforts to engage social service providers, and guidance on interrelated work. PBOT also coordinates with the Portland Police Bureau (PPB) and with Campsite Cleanup as appropriate. The coordinating approach that the bureau has undertaken is a model which should be emulated by all City bureaus responding to the housing and homelessness crisis. This program thus meets the
11 Portland Bureau of Transportation. Abandoned Autos Program: https://www.portlandoregon.gov/transportation/73520 12 City of Portland Charter, Code, and Policies. Chapter 16.20 Public Right-of-Way. Section 16.20.120 Prohibited Parking or Stopping of a Vehicle. https://www.portlandoregon.gov/citycode/article/16044
Portland Bureau of Transportation 15 of 24 March 6, 2018 bureau’s mandate to maintain the right-of-way while also meeting Mayor’s budget guidance and City goals of increasing the number of people helped through homelessness preventive services. The safe access to the public right-of-way is one of the bureau’s core responsibilities, allowing ease of access for all modes of transportation and to facilitate the movement of goods and services. PBOT’s need to invest in this effort will mean that the bureau will be able to perform less work in other priority areas. Through coordinated efforts systemwide, and through the City’s investments in long-term solutions to homelessness, these costs should decline in future years. Current year parking revenues are on track to exceed budgeted levels despite the fact that parking enforcement staff have been taken from revenue generating activities to work on this program. This indicates that additional funds to support the positions in this package may not be necessary, but that additional parking enforcement staff may further increase bureau revenues. Due to limited available General Fund resources, CBO does not recommend this request, but recommends that the bureau continue its current efforts with internal resources due to the positive impact on Mayoral priorities and on bureau responsibilities and goals. CBO highlights that these resources, were they allocated towards other priorities, could build 200 additional ADA ramps or defray $800,000 in future pavement rehabilitation costs if put towards pavement maintenance. CBO notes that the bureau is also investing increased GTR funds (at $1 million total) for campsite cleanup. CBO Recommendation: $0.00 | 0.00 FTE
Regulatory – Background Checks TR_12, $417,548, 5.00 FTE CBO recommends adding the five regulatory specialist positions to conduct background checks for private-for-hire drivers, funded through existing service charges and fees. Most private-for-hire-transportation companies choose to have the City conduct background checks at a cost of $75.00 per check. Alternatively, Transportation Network Companies (TNC) utilize third parties to process background checks. The proposed change will require TNCs to provide data and documentation from background checks to PBOT for review. This change will serve to ensure an equitable and accessible onboarding process for private-for-hire drivers. PBOT estimates processing 26,200 background checks each year. CBO Recommendation: $417,548 | 5.00 FTE
Resiliency Plan TR_13, $500,000 PBOT is requesting one-time support of $500,000 to create a Transportation Resiliency Plan to increase the City’s response recovery and resiliency after a
Portland Bureau of Transportation 16 of 24 March 6, 2018 disaster. During a recent two-day Resilient Infrastructure Planning Exercise (RIPE) workshop, it was identified that all infrastructure bureaus are dependent on the resiliency and recovery of the transportation system. This two-year project will utilize casual staff to create the plan and will build off the 2016 Mitigation Action Plan and the Comprehensive Plan 2035. Additionally, the plan will update the City’s emergency transportation routes (ETRs) to current policies and plans and will establish a process for ETRs to be regularly updated. This project complements the City’s Continuity of Operations Planning (COOP) program implemented by the Portland Bureau of Emergency Management, and the Bloomberg Mayor’s Challenge, “Building Community Resilience Through Open Streets”, project submitted by the City in October 2017. This project is important for maintaining the City’s critical infrastructure and ensuring public safety after a disaster strikes and is aligned with Mayoral budget guidance. The bureau plans to realign its planning-to-construction pipeline prioritizing resiliency projects along ETRs and to develop a plan to address long- term solutions to its facilities that are highly vulnerable to events. The creation of a Transportation Resiliency Plan will include recommendations for ongoing funding and staffing needs to support a continuing resiliency program in the future. PBOT estimated the costs for developing this plan based off recent, similar resiliency plans created by the Bureau of Environmental Services and the Water Bureau. Just as the utility bureaus internally prioritized resources to produce their plans, so could PBOT as the bureau has four planning FTEs within its Policy & Regional Planning subgroup. The bureau anticipates its General Transportation Revenues (GTR) to increase by $25 million – or 20% - over the next five years. CBO agrees that incorporating resiliency planning into PBOT’s project decision making and prioritization is critical, and recommends the bureau consider the importance of this package in relation to other new activities funded with the budgeted $15 million in HB 2017 revenues. Due to limited available General Fund resources, CBO does not recommend General Fund dollars for this request. CBO Recommendation: $0.00 | 0.00 FTE
First Mile/Last Mile Microtransit Strategy TR_14, $200,000, 0.00 FTE This package seeks to address the need for public transit options in East Portland by exploring demand and opportunity for microtransit – small scale, on-demand public transit service. The East Portland Action Plan13 includes a goal of improving transit service throughout East Portland, and TriMet’s Eastside Service Enhancement Plan14 has a goal of improving service to East Portland through more
13 East Portland Action Plan. http://eastportlandactionplan.org/sites/default/files/2011.03.10%20Abbreviated%20EPAP.pdf 14 TriMet’s Eastside Service Enhancement Plan. https://trimet.org/future/pdf/eastside-final-report.pdf
Portland Bureau of Transportation 17 of 24 March 6, 2018 North-South bus service and other access to opportunities. However, there remains a need for transit options during off-days and times where demand isn’t sufficient for regular bus service. Other cities, such as Los Angeles15 and Lone Tree, Colorado16 have piloted microtransit to offer flexible transit options by utilizing technology through partnerships with private companies such as Uber. PBOT is in the process of developing a microtransit pilot with Metro and TriMet which would identify future roles for each partner. This transit strategy would seek to expand transit service to underserved communities currently lacking service. As such, this package may provide a promising solution to one of the City’s primary service inequities. Due to limited available General Fund resources, CBO does not recommend this package at this time. CBO notes that the bureau currently projects over $2 million in GTR underspending; CBO recommends the bureau assess if any of these funds may be carried forward for this purpose. CBO Recommendation: $0.00 | 0.00 FTE
South Portland Address Project TR_15, $305,000, 0.00 FTE Several Portland city blocks located between SW Naito Parkway and the Willamette River have numerical addresses that begin with zero. This creates confusion for address databases, for wayfinding, and for first responders. PBOT proposes to rename this area “South” and remove the leading zero from the address. This package would fund the sign replacements necessary to implement this change. This change would directly benefit visitors and residents of the area, and benefit bureaus with address databases that currently require work-arounds or special training for dealing with these unusual addresses. As such, this package aligns with Mayoral priorities to pursue efficiencies. This package does not directly serve historically underserved communities; however, it is possible that benefits would be felt systemwide if BOEC experiences reduced call time as a result of required triage work related to these addresses. The Fire bureau supports this package and would prioritize it over some of their own capital and infrastructure requests. While this project incurs benefits Citywide, the replacement of street signs falls within the responsibility of the Bureau of Transportation and would be an appropriate use of General Transportation Revenue. Due to limited availability of General Fund resources, CBO recommends that the bureau internally fund this project. The bureau currently projects it will underspend its General Transportation Revenue budget by over $2 million; the bureau may thus be able to redeploy current year underspending towards this effort.
15 Los Angeles, California MicroTransit Pilot Project. https://www.metro.net/projects/microtransit/ 16 Lone Tree, Colorado. Launches Link on Demand. http://cityoflonetree.com/news/what_s_new/city_of_lone_tree_partners_with_uber_to_launch_lin
Portland Bureau of Transportation 18 of 24 March 6, 2018 CBO Recommendation: $0.00 | 0.00 FTE
Vision Zero Requests TR_18, TR_19, $1,250,000 Strategic Lighting Infill PBOT has been implementing various Vision Zero projects across Portland since City Council adopted the Vision Zero Resolution 37130 in June 2015.17 Presently the bureau is conducting an analysis and inventory of the City’s lighting deficiencies. This work will be completed in June 2018, at which time the bureau would implement this one-time add package for lighting infill projects that aim to reduce pedestrian deaths from traffic related accidents. This request would fund the installation of 80-350 new streetlights based off the pending analysis. Communities of concern - which the bureau defines as including people of color, low-income households, older adults and youth, people with disabilities, people with limited English proficiency, and households with limited vehicle access - have identified a lack of lighting to pose a significant safety risk in their communities. Nationwide data show that lighting at intersections reduces auto crashes by 12% and reduces crash fatalities by 77%.18 Improving the uniformity of lighting (lighting infill) reduces the incidence of daytime and nighttime crashes by 2.3%. The June report will identify lighting projects to be funded with this request, and the bureau anticipates some of these projects may overlap with the high crash corridor and/or projects previously identified. The bureau and the Vision Zero Task Force will prioritize lighting projects in communities of concern, as one in three traffic deaths in Portland occur in these communities. Adding and/or replacing lights across Portland may assist to decrease the total pedestrian, bicycle, and auto traffic fatalities by enhancing visibility; however, as a new initiative, there is little available local data to demonstrate the successes of Vision Zero. Given the limited General Fund resources, CBO does not recommend funding at this time. Additionally, CBO recommends the bureau collaborate with its Maintenance Division to coordinate ongoing lighting maintenance projects that can partner with Vision Zero lighting projects. Citywide Awareness Campaign PBOT requests $500,000 for a safety education campaign focused on the dangerous behaviors of drivers in Portland. This project partners with the Portland Police Bureau and the Portland Fire Bureau to address impaired and distracted driving.
17 City Auditor’s Office. Resolution 37130. http://efiles.portlandoregon.gov/Record?q=recAnyWord%3A37130&pagesize=100&sortBy=recCreatedOn 18 Vision Zero Year Three report. February 2017. Retrieved online by PBOT from: https://www1.nyc.gov/assets/visionzero/downloads/pdf/vision-zero-year-3-report.pdf
Portland Bureau of Transportation 19 of 24 March 6, 2018 As a new initiative, there is little available local data to demonstrate the successes of Vision Zero; however, PBOT points to data from New York City and San Francisco’s successful media campaigns to support this request. 82% of New Yorkers indicated that they drive more carefully because of these campaigns, however there is no causal data that conclusively links a change in behavior to the reduction of fatalities. Given the limited available General Fund resources, CBO does not recommend funding at this time. CBO Recommendation: $0.00 | 0.00 FTE
Staffing for Snow/Ice Events TR_20, $1,320,000, 5.00 FTE PBOT is requesting $1,320,000 in ongoing General Fund resources to fund five permanent street sweeping positions and materials and services to plow public- school bus routes and additional city streets during snow and ice events. PBOT typically budgets $750,000 to deal with severe winter weather. Additionally, in the current year, the bureau received $330,000 in one-time General Fund resources for contracted snow removal services and new snow plow blades. The bureau internally reallocated $480,000 to install permanent variable messaging signs, purchase six salt spreaders, and cover salt storage areas. Snowplowing is only required when there is adequate accumulation of snow, which happens infrequently in Portland. The FY 2016-17 winter was an anomaly with several storms, costing the bureau $2.6 million in snow plow costs. However, the bureau spent nothing on snow plowing in FY 2014-15, $500,000 in FY 2015-16, and as of early February spent $40,000 in the current year. Given that the staff in this request would be only needed to address snow plowing a maximum of a few weeks out of the year, the request for permanent staff should be considered as predominantly addressing other maintenance needs. The bureau has not yet identified which other maintenance work these crews would address. CBO notes that it may be possible for new maintenance positions added in TR_06 to take on this function during snow emergencies. This package could positively impact the Mayor’s priority areas of enhancing livability and ensuring public safety, although the measurable impact this package would have on those areas is unknown. It is unknown if Portland will require more snow plowing than has historically been needed, but there will certainly always be outlier years. Due to the limited availability of General Fund resources, CBO does not recommend ongoing funding for this package. CBO recommends that the bureau carry forward any unspent snowplow funds from the current year, consider deploying new maintenance staff to this work during snow emergencies, and that the City and PBOT continue to be prepared to utilize contingency funds for emergency needs in response to extreme weather. CBO Recommendation: $0.00 | 0.00 FTE
Portland Bureau of Transportation 20 of 24 March 6, 2018 Utility Cut Interagencies TR_21, $336,154, 2.00 FTE Revised street restoration standards now require utility improvements to cut larger openings into Portland streets, making for more effective repaving restoration. In order to meet the assumed increase in utility-cut paving, this request adds two positions funded through an increased interagency agreement (IA) with the Portland Water Bureau. CBO recommends the increase to this IA to support increasing workload. CBO Recommendation: $336,154 | 2.00 FTE
Street Cleaning – 5% Reduction Option TR_22, ($401,669), (3.00) FTE To meet the Mayor’s budget guidance, PBOT submitted a reduction package to eliminate three street sweeping positions, reduce residential street sweeping from two times per year to one time per year, and reduce vegetation trimming to only include vegetation that presents a hazard to the right-of-way. PBOT submitted this package as a reduction option during last year’s budget development process, and CBO did not recommend taking the reduction due to 1) the fact that these staff also are integral in performing pre-winter storm response; 2) the resulting impact of pooling debris and water on safety; and 3) the need to demonstrate the City’s commitment to street preservation in the wake of the local gas tax passage. The bureau’s financial outlook has improved significantly since last year’s review. Compared to last year’s requested budget projections, FY 2017-18 GTR is $10.8 million greater and beginning balance is $12.9 million greater. $7.6 million of the revenue growth is due to the passage of HB 2017, but over $3 million is due to greater-than-anticipated parking revenues. Thus, the bureau may be able to absorb this reduction due to recent growth in resources. However, the bureau is also incurring more costs as a result of the homeless emergency. PBOT’s current year budget for street cleaning totals $6.5 million, and 77% is supported by GTR. The General Fund is the next largest source, totaling $827,873 or 13% of the total budget. In the past, the Bureau of Environmental Services (BES) contributed approximately $1.1 million, as the pooling water that occurs when streets are not swept has the potential to negatively affect the City’s Municipal Separate Storm Sewer System permit requirements. In FY 2013-14, BES reduced its funding for these services and currently contributes $179,550, or 2.8% of the program’s total cost. CBO recommends that PBOT and BES discuss whether additional funding for these efforts from BES would be appropriate and possible given the nexus with permit requirements. Due to limited available General Fund resources and $31.9 million in ongoing General Fund requests for competing priorities, CBO recommends the reduction in General Fund resources. However, CBO does not recommend the reduction in
Portland Bureau of Transportation 21 of 24 March 6, 2018 service; rather, CBO recommends PBOT consider maintaining current service levels by looking at the following options: • Engage BES in discussions around the appropriate level of interagency support for the street sweeping program, given the nexus with permit requirements; • Revisiting ending balance and contingency projections, given current year revenue and underspending projections to provide a temporary solution and then build these positions into next years’ base budget; and/or • Revisiting recent decisions to add or reclassify positions and determine if this work would take priority over any of those decisions. The bureau has processed seven GTR-funded position reclassifications in the current year and requests two additional reclassifications in this budget at an estimated total additional cost of up to $275,000 in annual GTR. Many of these position costs were built into the bureau’s base budget and not sourced through new revenue. CBO Recommendation: ($401,669) | (3.00) FTE
Portland Bureau of Transportation 22 of 24 March 6, 2018 SUMMARY OF REQUESTS AND RECOMMENDATIONS
Below is a summary of the Portland Bureau of Transportation’s total budget. PBOT’s FY 2018-19 base budget is $94 million – or 22% - greater than the FY 2017- 18 Adopted Budget. Projected revenue growth is primarily the result of new state Transportation and local gas tax revenues. These growing resources are primarily supporting increased capital project expenditures ($28 million increase) and contributing to increases in contingency ($39 million increase). Bureau revenue and fund balance issues are discussed in the Key Issues section of this review.
Adopted Request Bureau CBO Total FY 2017-18 Base Decision Recommended Recommended (A) Packages (B) Adjustments (C) Revised (A+B+C) Resources Budgeted Beginning Fund Balance $ 124,023,396 $ 213,080,154 $ - $ - $ 213,080,154 Taxes 18,500,000 18,500,000 - - 18,500,000 Licenses & Permits 9,763,300 11,280,000 188,649 (188,649) 11,280,000 Charges for Services 85,132,519 94,547,702 - - 94,547,702 Intergovernmental Revenues 111,006,712 118,759,135 13,015,250 1,980,000 133,754,385 Interagency Revenue 31,987,212 31,900,951 336,154 - 32,237,105 Fund Transfers - Revenue 27,796,833 25,833,554 54,414,053 (47,315,722) 32,931,885 Bond and Note 16,874,506 5,000,000 - - 5,000,000 Miscellaneous 2,204,447 2,158,430 - - 2,158,430 Miscellaneous Fund Allocations 1,590,000 1,520,626 - - 1,520,626 Total Resources $ 428,878,925 $ 522,580,552 $ 67,954,106 ($45,524,371) $ 545,010,287
Requirements Personnel Services $ 100,692,430 $ 113,753,580 $ 12,122,422 $ (6,183,082) $ 119,692,920 External Materials and Services 66,190,786 75,652,637 9,949,237 (6,941,289) 78,660,585 Internal Materials and Services 33,290,324 35,271,987 1,285,447 - 36,557,434 Capital Outlay 80,771,760 108,692,106 44,020,000 (32,400,000) 120,312,106 Bond Expenses 17,408,592 19,573,771 - - 19,573,771 Fund Transfers - Expense 10,776,185 10,719,664 - - 10,719,664 Contingency 118,075,801 157,243,760 577,000 - 157,820,760 Unappropriated Fund Balance 1,673,047 1,673,047 - - 1,673,047 Total Requirements $428,878,925 $522,580,552 $67,954,106 ($45,524,371) $545,010,287
Portland Bureau of Transportation 23 of 24 March 6, 2018 City of Portland Decision Package Recommendations (Includes Contingency and Ending Balance) Bureau Requested CBO Analyst Recommendations Bureau Gen Fund Gen Fund Other Total Gen Fund Gen Fund Other Total Priority FTE Ongoing 1-Time Revenues Expenses FTE Ongoing 1-Time Revenues Expenses Portland Bureau of Transportation Adds
TR_17 - Reinstate Utility License Fee (ULF) Funding 01 10.00 1,980,000 0 0 1,980,000 0.00 0 0 0 0 TR_03 - ADA Curb Ramps 02 0.00 5,000,000 0 0 5,000,000 0.00 0 0 0 0 TR_11 - Derelict RV Enforcement 03 6.00 1,527,313 0 188,649 1,715,962 0.00 0 0 0 0 TR_04 - Capital Set-Aside 04 0.00 0 41,350,000 0 41,350,000 0.00 0 7,500,000 0 7,500,000 TR_18 - VZ - Strategic Lighting Infill 05 0.00 0 750,000 0 750,000 0.00 0 0 0 0 TR_19 - VZ - Citywide Awareness Campaign 06 0.00 0 500,000 0 500,000 0.00 0 0 0 0 TR_16 - O&M for GF Capital Projects 07 0.00 13,409 0 0 13,409 0.00 0 0 0 0 TR_02 - HB 2017 - Capital Investments 08 7.00 0 0 9,188,564 9,188,564 7.00 0 0 9,188,564 9,188,564 TR_06 - HB 2017 - Maintenance Investments 09 20.00 0 0 5,206,942 5,206,942 20.00 0 0 5,206,942 5,206,942 TR_07 - HB 2017 - Support Services 10 4.00 0 0 599,744 599,744 4.00 0 0 599,744 599,744 TR_09 - Columbia Blvd Crossing 11 0.00 0 650,000 0 650,000 0.00 0 0 0 0 TR_05 - NW Streetcar Extension 12 0.00 0 370,000 0 370,000 0.00 0 0 0 0 TR_08 - Congestion Pricing System-Wide Modeling 13 0.00 0 350,000 0 350,000 0.00 0 0 0 0 TR_20 - Staffing for Snow/Ice Events 14 5.00 1,320,000 0 0 1,320,000 0.00 0 0 0 0 TR_13 - Resiliency Plan 15 0.00 0 500,000 0 500,000 0.00 0 0 0 0 TR_14 - First Mile/Last Mile Microtransit Strategy 16 0.00 0 200,000 0 200,000 0.00 0 0 0 0 TR_21 - Utility Cut Interagencies 18 2.00 0 0 336,154 336,154 2.00 0 0 336,154 336,154 TR_15 - South Portland Address Project 20 0.00 0 305,000 0 305,000 0.00 0 0 0 0 Total Adds 54.00 9,840,722 44,975,000 15,520,053 70,335,775 33.00 0 7,500,000 15,331,404 22,831,404 Reductions
TR_22 - Street Cleaning - 5% Reduction Option 01 (3.00) (401,669) 0 0 (401,669) (3.00) (401,669) 0 0 (401,669) TR_01 - Reduction to Utility License Fee (ULF) Fundin 02 (10.00) 0 0 (1,980,000) (1,980,000) 0.00 0 0 0 0 Total Reductions (13.00) (401,669) 0 (1,980,000) (2,381,669) (3.00) (401,669) 0 0 (401,669) Realignments
TR_12 - Regulatory - Background Checks 17 5.00 0 0 0 0 5.00 0 0 0 0 TR_10 - Position Authorizations 19 3.10 0 0 0 0 3.10 0 0 0 0 Total Realignments 8.10 0 0 0 0 8.10 0 0 0 0
Total Portland Bureau of Transportation 49.10 9,439,053 44,975,000 13,540,053 67,954,106 38.10 (401,669) 7,500,000 15,331,404 22,429,735
Portland Bureau of Transportation 24 of 24 March 6, 2018