Efficiency and cost-containment? Change this!

The proponents of changing Portland’s Charter, especially in Measures 26-90 and 26-91, say the new way of structuring the Council and running the bureaus would save money and be more efficient. They cite the tram costs as an example of a problem that would be solved with a Yes vote – an assertion that totally ignores the Council’s choice, led by Mayor Katz, to approve the tram without doing the cost-benefit analysis recommended by the Portland Planning Commission.

While researching the post on Parks earlier today, I rediscovered something that might be changed to provide real efficiencies and cost savings without upsetting the entire apple cart:

Portland City Code, Chapter 5 section 5.33.060:

Directors of Bureaus or Offices are authorized to:

B. Execute Contract amendments for Goods and Services Contracts covered by this Chapter:

1. Up to 25% of the original Contract Amount, regardless of the original Contract Amount;

2. More than 25% of the original Contract Amount, provided that the amended Contract Amount does not exceed $500,000 and the Purchasing Agent concurs.

In other words, Bureau Directors have the power to increase the cost of a contract by 25%, without getting permission from the Council. And by even more than 25%, “only” for contracts under $500,000. Even in small contracts, 25% increases here and there add up. One step towards greater accountability for both elected officials and their appointed Bureau Directors would be to re-examine the Code section above. Perhaps there are other checks and balances in administrative rules to modify the overall policy, but its presence in the Code as a right and normal practice is disturbing.

Jack Bog’s blog this week features posts showing many of the Bureau Directors – the professional managers who run City bureaus. I’m guessing most Portlanders aren’t familiar with many of the names, in part because often elected politicians take responsibility for problems and credit for successes in the bureaus. Both the ballot measures being voted on right now, and Jack’s game, have the merit of helping citizens understand more about who decides what in Portland under the current system.

If the 26-91 Charter change passes, the Chief Administrative Officer (CAO) would be in charge of all the bureaus with all the directors reporting to him/her. It seems to me the CAO would have the power under the current Code to take the Council’s budget and then allow selected contracts to run 25% over budget in any bureau, without checking back with elected officials except the Mayor.

We should be looking for greater accountability and fiscal responsibility whichever form of government Portlanders choose on May 15.