April 30, 2025
Dear Councilors,
I am writing in response to Resolution 37702, the resolution you passed that urges me “to investigate the facts and prepare a report detailing the City’s handling of Zenith’s LUCS applications to bring clarity and transparency to the situation given the many competing statements and arguments heard by Council on January 21, 2025, from City staff, Zenith, and members of the public.” I appreciate your recognition of my Office’s authority and role in ensuring transparency and accountability in Portland’s government and have considered whether it would be prudent for my Office to undertake such an investigation.
City Charter Section 2-509 empowers the Ombudsman, a division of my Office, to investigate any City administrative act pursuant to a complaint or on the Ombudsman’s own initiative. The Ombudsman focuses its limited investigative resources on situations where the City is causing direct and unique harm to community members, particularly those who are vulnerable and lack other recourse. The Ombudsman’s lens is fairness and whether the City has treated people fairly. While transparency and accountability are part of administrative fairness, it is unclear how preparing a report detailing past City actions around the Land Use Compatibility Statement (LUCS) decisions will remedy harm or result in fairer treatment, except in the most abstract sense.
When deciding whether to investigate a complaint, the Ombudsman generally declines when another available process is more appropriate and may provide the resolution the complainant is hoping for. In this instance, using its powers under Charter Section 2-109, Council could request from Portland Permitting & Development a detailed written account of its handling of the LUCS applications and/or compel witnesses to testify under oath. To the extent that there are questions about whether City employees provided Council with full and accurate information, Council could refer to the supervisor and the Bureau of Human Resources for investigation and appropriate action. The Ombudsman does not have authority to impose discipline on City staff and generally refers employee conduct complaints to supervisors and Human Resources. The Ombudsman may refer complainants with concerns about potential violations of state ethics rules to the Oregon Government Ethics Commission.
The investigative powers of other divisions of my Office do not clearly fit the scope of investigation urged by the Resolution. The Elections Division investigates alleged violations of City lobbying regulations, if there are specific allegations of unregistered or unreported attempts to influence official actions. The Fraud Hotline investigates tips about fraud, waste, inefficiency, or abuse of City resources.
If there are systemic concerns about a specific process or program where the efficiency, effectiveness, and equity of City functions could be improved, suggesting the topic for a performance audit may be another potential option. City leaders may make suggestions directly to the Audit Services Director. The Audit Services Division also maintains an online suggestion form where members of the public can share ideas throughout the year. The Audit Schedule for the next fiscal year is published annually in June.
Sincerely,
Simone Rede
City Auditor