Transportation Bureau 2022 Audit Status Report

Street Improvement Projects: Bureau of Transportation has an inclusive planning process, but should improve assessment of neighborhood impact

Report published March 31, 2019| Follow-up report | Contact KC Jones

The Portland Bureau of Transportation designs and constructs projects to improve streets for pedestrians, bicycles, and vehicles. We audited two projects in 2018 to assess the Bureau’s planning and evaluation process. We found the Bureau met expectations for the planning phase, but its evaluation of project effectiveness needed improvement. The Transportation Bureau had made progress with project evaluation when we checked the status of the recommendations one year after the audit. Progress continued in 2020 with the completion of a project checklist to ensure project goals are met and the development of a performance management framework, but work is ongoing.

On this audit there were two recommendations in process.

Fixing Our Streets: Some accountability commitments not fulfilled

Report published May 29, 2019 | Follow-up report | Contact: Jenny Scott

Voters approved a tax in 2016 to fund street repair and safety projects. The City promised to spend 56 percent of revenues raised by the tax on repair projects and 44 percent on safety projects. Our 2019 audit found the Transportation Bureau was not accurately tracking and accounting for costs by those categories. Projects that had spending for both repair and safety improvements were not accounted for separately, making it impossible for the City to assure the public it kept its promise to voters. The Bureau still has not changed the way it tracks and accounts for projects to maintain the spending split as promised to voters. It also has not yet shared information with the public about spending compared to its commitment.

On this audit there were four recommendations implemented, and three not implemented.

Sewer Maintenance: Renewed attention to partnership needed to better serve ratepayers

Report published September 14, 2021 | Contact: Bob MacKay

Wastewater goes through pipes owned by the Bureau of Environmental Services but the bureau pays another - the Bureau of Transportation - to maintain these pipes. This longstanding agreement has had mixed results. We make recommendations for both bureaus in our audit report.

This is a new audit with four recommendations pending follow-up.

Not Implemented Recommendation Details

We recommended that the Bureau of Transportation clarify how it would account for street repair and safety elements in projects so the oversight committee could help ensure the promised spending split was maintained. The City promised to spend 56 percent of revenues raised by voter approved gas tax on repair projects and 44 percent on safety projects. However, Bureau managers said accounting for the spending split is not realistic because many projects include both street repair and safety elements. (Fixing Our Streets: Some accountability commitments not fulfilled)

We recommended that the Bureau of Transportation clarify how it would account for street repair and safety elements in projects so the oversight committee could help ensure the promised spending split was maintained. The City promised to spend 56 percent of revenues raised by voter approved gas tax on repair projects and 44 percent on safety projects. However, Bureau managers said accounting for the spending split is not realistic because many projects include both street repair and safety elements. (Fixing Our Streets: Some accountability commitments not fulfilled)

We recommended the Bureau track and publicly report on Fixing Our Streets projects as they related to commitments made to the public. The Bureau publicly reported that it could not uphold the commitment it made to voters, as part of the first iteration of Fixing our Streets, to spend 56 percent of revenues on repair and 44 percent on safety projects. Bureau management said it eliminated the unrealistic funding commitment from the second iteration of Fixing our Streets since revenue is not split between street repair and safety by percentage. The City did, however, commit specific amounts of revenue to categories of projects, including paving on busy and neighborhood streets; potholes, gravel streets, and base repair; sidewalks and other walkways; traffic signals and crossing beacons; and basic safety improvements. The Bureau’s November 2022 project report separated projects and spending into these categories. When a project funded by Fixing our Streets includes elements from multiple categories, the Bureau will need to track and account for category-level spending so it can validate its new commitments to voters. (Fixing Our Streets: Some accountability commitments not fulfilled)

Implemented Recommendation Details

We recommended the Transportation Bureau educate companies about the data required and take enforcement action against companies that don’t provide it. The Transportation Bureau said that both Transportation Network Companies were consistently reporting all required data, but that two small, minority-owned taxi companies continued to have data reporting challenges. The Bureau has chosen to not take enforcement actions for data reporting requirements because of the Covid-19 pandemic’s financial impact on all transportation companies. The Bureau said that rides by Transportation Network Companies fell nearly 80 percent at the start of the pandemic and have been slow to recover since. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended the Transportation Bureau ensure that companies’ self-reported data is accurate and complete. Accurate data is needed to collect fees and to measure service levels. The Transportation Bureau sends compliance letters monthly to companies with incomplete data, but noted that two smaller companies continue to struggle with reporting data even after the bureau provided business support. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended using customer complaints and collision reports systemically to inform inspections, enforcement, and education actions. The Transportation Bureau reviewed customer complaints and collision reports and has updated the collision report form. Collision data informs where the Bureau inspects cars. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended determining what information is needed to measure the use of and effects of dynamic pricing to best achieve Council's policy goals. The Bureau has decided not to obtain any data on dynamic pricing from transportation network companies. This determination resolves our recommendation. The Bureau said that dynamic pricing was an effective way to maintain short wait times for riders. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended establishing goals and performance measures for its inspections. The Bureau set the following goals and performance measures: a 95-percent Code compliance rate; to randomly inspect at least 30 percent of permitted drivers each year; and to conduct 900 office compliance checks each year. The Bureau also established a Regulatory Compliance Team to bring illegal operators into compliance. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended adjusting inspection processes, so resources are deployed to areas of highest risk. The Bureau has continued inspections in areas of risk and in the central city, where most of the transportation network companies’ traffic was. For example, it has chosen to look for unpermitted drivers and companies and to check areas where bicyclists and pedestrians are at risk. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended determining if $.50 per ride is appropriate to recover regulation costs, as part of the annual fee-setting. The Bureau projects a budget shortfall in four to five years and says Portland’s regulatory fee is among the lowest in the country. The Bureau did not identify fee changes. (Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety)

We recommended providing the Fixing our Streets oversight committee with information needed to understand and carry out its responsibilities. The Bureau reported that staff trained oversight committee members on their roles as public officials pursuant to emerging rules from the Office of Community and Civic Life. The Bureau also provided members with committee bylaws, charter, and protocols that outline the purpose of the committee and responsibilities of members. The Bureau reseated the committee in 2019 and now members have staggered four-year terms. The Bureau said the staggered terms will support continuity of oversight as experienced members can share knowledge with new members. The Bureau said it provides committee members with monthly project reports and detailed briefing documents on projects ahead of quarterly meetings where there may be changes in scope, schedule, or budget. The Bureau said sharing information ahead of time results in informed discussions in committee meetings where members vote on project change recommendations. The Bureau said project reports are more accurate because it fully adopted project management software that was only partially in-use at the time of our audit. (Fixing Our Streets: Some accountability commitments not fulfilled)

We recommended exploring options to ensure that heavy vehicle owners pay their fair share for maintenance, operations and improvements of City streets. City Council approved an increase to the Heavy Vehicle Use Tax that will take effect in 2021. The Bureau estimates that the 3 percent tax will generate $11 million over four years, which is commensurate with what experts calculated was heavy vehicle owners’ share of City street maintenance, operations, and improvement costs. (Fixing Our Streets: Some accountability commitments not fulfilled)

We recommended specifying the type of audit desired and ensuring that audit commitments are fulfilled. The financial auditing firm under contract to the City performed additional procedures in 2019 to review Fixing our Streets program revenues and expenditures and to examine a sample of project-level transactions. The report from the auditors is publicly available. The Bureau paid for the work with Fixing our Streets funds. (Fixing Our Streets: Some accountability commitments not fulfilled)

We recommended making ballot item commitments clear, realistic, measurable, achievable, and time bound. The City asked voters to renew the local gas tax to fund a second iteration of the Fixing our Streets program in May 2020. In the ballot summary, the Bureau committed to spend certain dollar amounts on different project categories over the four-year life of the tax, as opposed to the percentage split they promised voters in 2016 that proved unrealistic and difficult to measure. The Bureau assigned a senior project manager to oversee the program and individual project managers are assigned to all projects scheduled for the first two years. The Bureau said it plans to publish detailed project schedules after development is complete and anticipates this will make project schedules more reliable. (Fixing Our Streets: Some accountability commitments not fulfilled)

Pending Recommendation Details

We recommended the Bureau develop and implement alternatives to use sewer maintenance staffing and vehicles to their full budgeted potential. (Sewer Maintenance: Renewed attention to partnership needed to better serve ratepayers)

We recommended that the Bureau remove expenses included in its indirect costs that could be considered direct administrative costs for a specific program or service to ensure ratepayer funds are used only on services related to and necessary for sewer maintenance. (Sewer Maintenance: Renewed attention to partnership needed to better serve ratepayers)

We recommended that the Bureau properly document materials taken by crews; increase inventory safeguards for sewer lining materials; and enforce existing procedures. (Sewer Maintenance: Renewed attention to partnership needed to better serve ratepayers)

We recommended that the Bureau re-evaluate the pros and cons of the agreement for sewer maintenance. (Sewer Maintenance: Renewed attention to partnership needed to better serve ratepayers)

---

Data Notes

At the end of every audit report, we issue a series of recommendations intended to make programs work even better. This report includes the status of Bureau recommendations since 2018, which was the beginning of our new follow-up process. We prepared it with a few audiences in mind:

• City Council can use it to identify bureaus that may need additional resources or support in order to implement recommendations.
• Bureau directors can use it to assess bureau performance and to determine if any changes in policy or procedure are necessary.
• Bureau management and staff can use it to track recommendation status across audits to develop work plans and priorities.
• General public can use it to monitor the status of recommendations related to topics of interest and to compare performance across bureaus.

This report includes recommendation status as of December 31, 2022.

---

Translated reports

Most reports are available in four languages: Spanish, Vietnamese, Chinese, and Russian. We are translating new reports as they’re released, but older reports may not be available in a language other than English. If you would like to request a translated version of a report, please contact KC Jones.

---

Links

• Transportation Network Companies and Taxicabs: Transportation Bureau needs to monitor service, not just safety

  • Report Link https://www.portlandoregon.gov/auditservices/article/593785

  • Follow-up Link https://www.portlandoregon.gov/auditservices/article/756354

• Street Improvement Projects: Bureau of Transportation has an inclusive planning process, but should improve assessment of neighborhood impact

  • Report Link https://www.portlandoregon.gov/auditservices/article/676585

  • Follow-up Link https://www.portlandoregon.gov/auditservices/article/766441

• Fixing Our Streets: Some accountability commitments not fulfilled

  • Report Link https://www.portlandoregon.gov/auditservices/article/733093

  • Follow-up Link https://www.portland.gov/year2FixingOurStreets

• Sewer Maintenance: Renewed attention to partnership needed to better serve ratepayers

  • Report Link https://www.portland.gov/audit-services/sewer-maintenance