Ethics demand that the next city council decide fate of Chamber’s no-bid cleaning and security contract
Slow down to get answers on the multimillion contract extension with Portland Metro Chamber
Portland City Council is rushing a vote on a no-bid contract extension with the influential Portland Metro Chamber just weeks before 80 percent of the council leaves office.
The 5-year contract expansion is for a clearing and security contract for the Downtown Enhanced Service District (ESD), which taxes downtown residents and provides millions of dollars in funding each year to the Chamber. The Chamber subcontracts all the cleaning and security services to other organizations.
This new contract would expand the geographic area covered, the number of properties being taxed, and the tax rate paid by downtown property owners. Over the next five years, it will generate at least $58 million in fees from property owners.
A forensic accountant from Tacoma, Wash., completed an analysis of the current Chamber contract using its tax records to piece together the following information: His analysis raises several ethical questions that the council should fully explore and answer before extending the contract.
Review the full presentation here.
Why is the Chamber’s administration fee so high? According to public records and the chamber’s 2023 tax documents, the Chamber receives $1.3 million to administer the contract and funds nearly half of the chamber’s CEO’s $303,000 a year salary, part of salaries for three other senior executives and $146,000 in rent. Yet the chamber subcontracts all the cleaning and security services to other firms. Consider that Central City Concern receives $1.5 million to deliver the actual cleaning services downtown.
Are there other firms who want to bid and could do a better job?
Downtown property owners have raised serious concerns about the safety and security of downtown Portland, noting trash on the streets and sidewalks that have contributed to fewer people visiting the city center and hurting retail businesses. Given this record, why would the city extend its contract with the Chamber without opening it up to other contractors who hire union labor?
Should city taxpayers, residents, and nonprofits subsidize the chamber’s operations? As property owners, the City of Portland, Multnomah County, downtown residents, and nonprofits contribute $1.3 million annually to fund this contract, and thus subsidize the chamber’s operations. Is this ethical, given the Chamber’s active lobbying efforts with the city?
Should taxpayers subsidize the Chamber, which advocates for harmful policies? Because of the high administrative fee, this contract subsidizes the Chamber’s operations at a minimum of $1.3 million annually. In addition to its lobbying efforts, the Chamber spent millions during this last election to fund candidates they see as more sympathetic to their interests. The Chamber has been outspoken against Preschool for All, and city charter reforms and has advocated for criminalizing people who are houseless.
Should candidates with a conflict of interest vote on this contract? The Chamber's Political Action Committee spent hundreds of thousands of dollars in support of Councilor Dan Ryan’s re-election campaign. Chamber members are also well-known donors to Rene Gonzalez and Mingus Mapps. Any councilor with a conflict of interest should not vote on this contract or, at the very least, disclose their conflicts publically before voting.
Can the auditor review the contract first? This contract needs proper review to assure the public that this contract is in the city and downtown community’s best interest. In 2022, the Portland city staff reported to Michael Jordan, the current interim city manager, that the contract lacked proper transparency and oversight. Since then, the city has hired an outside consultant, BDS, an urban planning and design firm with connections to the chamber, to conduct an audit. This new contract extension and expansion needs more sunlight so voters can be assured that the underlying issues have been adequately addressed.
References
City’s expansion recommendation
Clean and Safe Report: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.portland.gov/omf/documents/2022-clean-and-safe-contract-ppb/download