WEBVTT 1 00:06:30.052 --> 00:06:30.992 Good morning, everyone. 2 00:06:31.916 --> 00:06:35.499 Uh, I'm going to call the meeting of the Public Works Committee to order. 3 00:06:35.579 --> 00:06:39.983 It's Tuesday, July 28th, at 9:32. 4 00:06:41.105 --> 00:06:42.701 Deanna, can you please call the roll? 5 00:06:43.829 --> 00:06:44.230 Good morning. 6 00:06:44.745 --> 00:06:45.437 Koyama Lane? 7 00:06:46.353 --> 00:06:46.464 Here. 8 00:06:47.300 --> 00:06:47.687 Green? 9 00:06:48.586 --> 00:06:48.699 Here. 10 00:06:49.422 --> 00:06:49.776 Smith? 11 00:06:50.836 --> 00:06:51.110 Absent. 12 00:06:51.737 --> 00:06:52.105 Kanal? 13 00:06:52.444 --> 00:06:52.540 Here. 14 00:06:54.565 --> 00:06:54.680 Clerk? 15 00:06:54.906 --> 00:06:55.083 Here. 16 00:06:55.632 --> 00:06:58.475 And Claire, can you please read the statement of conduct? 17 00:06:59.759 --> 00:07:00.112 Thank you, Chair. 18 00:07:00.836 --> 00:07:02.925 Good morning and welcome to the meeting of the Public Works Committee. 19 00:07:03.391 --> 00:07:14.247 To testify before this committee in person or virtually, you must sign up in advance on the committee agenda at portland.gov/council/agenda/publicworkscommittee or by calling 311. 20 00:07:14.750 --> 00:07:17.733 Registration for virtual testimony closes 1 hour prior to the meeting. 21 00:07:18.252 --> 00:07:20.992 In-person testifiers must sign up before the agenda item is heard. 22 00:07:21.512 --> 00:07:26.615 If public testimony will be taken on an item, individuals may testify for 3 minutes unless the chair states otherwise. 23 00:07:27.129 --> 00:07:28.911 Your microphone will be muted when your time is over. 24 00:07:29.456 --> 00:07:30.355 The chair preserves order. 25 00:07:30.677 --> 00:07:38.172 Disruptive conduct such as shouting, refusing to conclude your testimony when your time is up, or interrupting others' testimony or committee deliberations will not be allowed. 26 00:07:38.750 --> 00:07:40.579 If you cause a disruption, a warning will be given. 27 00:07:40.997 --> 00:07:43.067 Further disruption will result in ejection from the meeting. 28 00:07:43.661 --> 00:07:46.903 Anyone who fails to leave once ejected is subject to arrest for trespass. 29 00:07:47.432 --> 00:07:50.286 Additionally, the committee may take a short recess and reconvene virtually. 30 00:07:51.023 --> 00:07:53.011 Your testimony should address the matter being considered. 31 00:07:53.283 --> 00:07:55.302 When testifying, please state your name for the record. 32 00:07:55.831 --> 00:07:58.172 If you are a lobbyist, identify the organization you represent. 33 00:07:58.653 --> 00:08:02.004 And finally, virtual testifiers should unmute themselves when the clerk calls your name. 34 00:08:02.180 --> 00:08:02.483 Thank you. 35 00:08:03.687 --> 00:08:04.216 Thank you, Claire. 36 00:08:05.209 --> 00:08:15.293 Uh, colleagues, uh, for today's meeting, we have 2 updates from PBOT, uh, on topics where there is a lot of interest and a lot of anticipation. 37 00:08:15.870 --> 00:08:24.644 First, we're going to hear about the implementation of the TUF and the street damage restoration fee based on direction that the council gave them that passed this year. 38 00:08:25.752 --> 00:08:34.451 And then we'll have a discussion of automated vehicles, including in-progress rulemaking, and I would like to entertain possibly policy concepts. 39 00:08:35.140 --> 00:08:42.379 But before we get to our main items, we need to adopt committee minutes for our meeting of June 9th and June 23rd. 40 00:08:45.503 --> 00:08:46.024 Let's see. 41 00:08:47.783 --> 00:08:50.017 Diana, can you please read the first item? 42 00:08:51.620 --> 00:08:59.899 Item number 1, June 9th, 2026 to June 23rd, 2026 Public Works Committee meeting minutes. 43 00:09:02.076 --> 00:09:02.254 Great. 44 00:09:02.318 --> 00:09:05.803 Do I have any comments, objections, support? 45 00:09:06.046 --> 00:09:10.124 Seeing okay, so, um, the minutes are approved by unanimous consent. 46 00:09:10.190 --> 00:09:11.235 No objections. 47 00:09:12.552 --> 00:09:13.741 Great, let's move on. 48 00:09:15.159 --> 00:09:17.475 Uh, Diana, can you please read the first item? 49 00:09:18.809 --> 00:09:26.594 Item number 2, document number 2026-265, update on local transportation funding. 50 00:09:28.509 --> 00:09:28.880 Terrific. 51 00:09:29.446 --> 00:09:40.575 So colleagues, uh, as you recall, when we passed the transportation utility fee and the street damage restoration fee this spring, seems like so long ago at this point. 52 00:09:42.409 --> 00:09:52.148 We included there lots of concerns, lots of work to be done by PBOT. 53 00:09:52.748 --> 00:10:02.717 So my understanding is that there is specific methodology on some of those concerns is still being determined, but we're going to get an initial status update today. 54 00:10:03.432 --> 00:10:09.823 As well as a preview of some of the more detailed information that we're going to get in the fall before implementation. 55 00:10:10.779 --> 00:10:19.109 So with that, I would like to hand this off to— I see Director Williams is here and Shoshana Cohen and Gabriel Graff. 56 00:10:20.131 --> 00:10:20.504 Welcome. 57 00:10:20.780 --> 00:10:22.111 Thank you for being here this morning. 58 00:10:22.307 --> 00:10:23.312 We're happy to see you. 59 00:10:24.028 --> 00:10:25.618 We're really looking forward to this update. 60 00:10:31.878 --> 00:10:32.823 Good morning. 61 00:10:34.389 --> 00:10:35.644 Thank you so much for having us. 62 00:10:37.576 --> 00:10:38.820 Give me one second, please. 63 00:10:39.948 --> 00:10:41.288 Shift some things around this morning. 64 00:10:41.854 --> 00:10:42.402 So good morning. 65 00:10:42.596 --> 00:10:43.984 My name is Millicent Williams. 66 00:10:44.113 --> 00:10:53.474 I am the director of the Portland Bureau of Transportation, and we'd like to thank you, Council Vice President Clark, and members of the committee for having us here today. 67 00:10:54.182 --> 00:11:02.706 I'm pleased that we're here today to provide a report back to the progress of setting up our new local funding next slide, please. 68 00:11:03.943 --> 00:11:17.580 Our Public Works service area delivers clean drinking water, maintains an award-winning parks and recreation system, provides reliable sewer and stormwater services, and keeps our transportation system safe and accessible so people can get to where they need to go. 69 00:11:18.784 --> 00:11:26.431 For years, funding for the maintenance of a safe and accessible transportation system has been eroding and unable to keep up with the needs of the system. 70 00:11:26.976 --> 00:11:32.471 Thanks to you and your council colleagues, PBOT's transportation funding is now a bit more stable. 71 00:11:33.403 --> 00:11:45.518 The transportation utility fee and street damage restoration fee have already helped to stabilize this year's PBOT's budget and helped our staff to plan for the year with a certainty that we have not had for many, many years. 72 00:11:46.514 --> 00:11:53.004 While these mechanisms are helping to stabilize transportation funding, rolling them out is a collaborative Public Works project. 73 00:11:53.505 --> 00:12:04.216 We are 5 months away from implementation of the transportation utility fee and street damage restoration fee, and we're working together as a service area on communications and many structural preparations. 74 00:12:05.038 --> 00:12:11.745 This is an exciting opportunity for cross-bureau collaboration, and I'm pleased to be here today with our first implementation update. 75 00:12:13.785 --> 00:12:20.307 As has already been mentioned, we've had challenges across all fronts at the federal, State and local level. 76 00:12:20.839 --> 00:12:25.543 One could say PBOT's financial foundation is standing on a wobbly stool. 77 00:12:25.606 --> 00:12:27.909 And if you'll advance to the next slide, I'm sorry I didn't mention that. 78 00:12:28.423 --> 00:12:36.587 And even though this graphic, which I am not a huge fan of, shows one wobbly leg, we've had really 3 wobbly legs. 79 00:12:36.830 --> 00:12:37.445 Great graphic. 80 00:12:38.239 --> 00:12:40.149 Thank you for whoever did that. 81 00:12:40.732 --> 00:12:42.951 Your compliments to the chef. 82 00:12:44.969 --> 00:12:45.115 Next. 83 00:12:45.164 --> 00:12:45.491 So thank you. 84 00:12:45.802 --> 00:12:48.707 The local funding for our work has been coming from the local gas tax and the heavy vehicle use tax. 85 00:12:51.086 --> 00:12:59.745 The local gas tax now buys half of what it did when it was established in 2016, and our ability to fund our work has been steadily decreasing. 86 00:13:00.565 --> 00:13:01.110 Next slide, please. 87 00:13:02.250 --> 00:13:07.440 Thanks to all of you, we now have a much more solid foundation at the local level. 88 00:13:08.211 --> 00:13:21.600 There will be another attempt at a statewide transportation package during the 2027 session, and PBOT's ability to continue to stabilize our operations and maintain our transportation system will still be dependent on a successful transportation package. 89 00:13:22.017 --> 00:13:28.313 However, today we are here to focus on the implementation work that we have begun around these new local funding sources. 90 00:13:28.907 --> 00:13:32.993 Once again, I wish to thank all of you for making this work possible. 91 00:13:33.474 --> 00:13:39.980 If not for the transportation utility fee, PBOT would have faced very significant reductions in services this fiscal year. 92 00:13:40.749 --> 00:13:48.606 Thank you for preventing this loss of critical services and for providing funding for maintenance, operations, and safety work on our transportation system. 93 00:13:49.346 --> 00:13:56.506 Today, we are here to provide our first update on the progress we are making to implement the Transportation Utility Fee and the Street Damage Restoration Fee. 94 00:13:57.116 --> 00:14:04.921 Implementing these new revenue sources and delivering this work is a bureau-wide and, as has already been mentioned, really a service area-wide effort. 95 00:14:05.322 --> 00:14:13.333 It involves teams from maintenance, engineering, project management, Vision Zero, Finance, our utility partners, and others. 96 00:14:14.158 --> 00:14:25.445 Some of our work in the first few months has been focused on setting up an internal structure that will ensure we are coordinating this large body of work across teams and delivering in a transparent and accountable way. 97 00:14:26.142 --> 00:14:30.523 To that end, I'd like to introduce Gabe Graff, who will be— excuse me. 98 00:14:30.909 --> 00:14:34.767 I'd like to introduce Gabe Graff, who you will be hearing from during this presentation. 99 00:14:35.041 --> 00:14:38.980 He is taking on this overall project management of delivering this work. 100 00:14:39.596 --> 00:14:41.475 Gabe is a seasoned project manager. 101 00:14:41.539 --> 00:14:54.881 He works in some of the most difficult environments to deliver on amazing work, and he is, uh, he is respected throughout the community, and he's respected throughout the bureau, and we're excited to have him on board for this critical project. 102 00:14:55.894 --> 00:15:02.187 As you know, the transportation utility fee and the street damage restoration fee will both go into effect on January 1st. 103 00:15:02.251 --> 00:15:04.836 We're still building the program and getting ready. 104 00:15:05.062 --> 00:15:09.191 Today we are here with the initial updates because we want to bring you along on our process. 105 00:15:09.801 --> 00:15:15.102 However, we still have additional work to do, and we will be back again both in September and November to go deeper. 106 00:15:15.344 --> 00:15:15.874 Next slide, please. 107 00:15:17.047 --> 00:15:18.764 So here's our agenda for our presentation. 108 00:15:18.878 --> 00:15:25.673 We'll share an update on the implementation timeline and a reminder about the transportation utility fee directives that we are working on. 109 00:15:25.785 --> 00:15:36.916 We'll provide an overview of this year's budget allocations and then discuss the implementation work that we're doing around communications, Billing, financial assistance, methodology updates, utility outreach, and accountability. 110 00:15:37.413 --> 00:15:42.888 Now I'll turn it over to PBOT Chief of Staff Shoshana Cohen to begin with the timeline for our work. 111 00:15:43.995 --> 00:15:44.638 Thank you, Director. 112 00:15:45.038 --> 00:15:47.687 For the record, I'm Shoshana Cohen, PBOT Chief of Staff. 113 00:15:48.586 --> 00:15:56.035 This implementation schedule before you includes upcoming milestones for both the transportation utility fee and the street damage restoration fee. 114 00:15:56.693 --> 00:15:58.732 We have a busy 6 months or so ahead of us. 115 00:15:59.437 --> 00:16:02.001 It's already been a busy 6 months, but continuing. 116 00:16:03.106 --> 00:16:07.081 We have a special Fixing Our Streets Oversight Committee meeting next week on August 4th. 117 00:16:08.073 --> 00:16:13.504 And then we will be back, as has already been mentioned, before this committee again in September with a more detailed update. 118 00:16:14.162 --> 00:16:22.668 And then we expect to return to council again in November with a code alignment ordinance and to ensure the code reflects all the directives related to the transportation utility fee. 119 00:16:23.437 --> 00:16:28.548 And as directed, we'll be holding a rate hearing for the non-residential methodology by February 15th. 120 00:16:29.408 --> 00:16:32.855 And we also plan on hosting district open houses in February. 121 00:16:33.355 --> 00:16:44.239 This is the time when people will be receiving their first bills early in the year for the transportation utility fee, and we want to be out in community at that point making sure that people are able to learn about the work that is being funded. 122 00:16:46.289 --> 00:16:53.605 Currently, the Street Damage Restoration Fee team is drafting revised administrative rules to incorporate the damage fee into the current permitting process. 123 00:16:54.241 --> 00:16:58.364 As part of the drafting process, we're engaging impacted utilities to help inform, review, and refine these rules. 124 00:16:58.461 --> 00:16:58.607 Thank you. 125 00:17:01.851 --> 00:17:09.073 We also have permitting software updates that we're working on to allow for the coordination and assessment work that's required with the street damage restoration fee. 126 00:17:09.950 --> 00:17:14.984 And for both the transportation utility fee and street damage fee, we have ongoing outreach and communications work. 127 00:17:15.950 --> 00:17:16.625 Next slide, please. 128 00:17:18.390 --> 00:17:22.824 So this is a summary of the directives that were included in the transportation utility fee ordinance. 129 00:17:23.321 --> 00:17:25.749 And these directives, you know, thank you for all of them. 130 00:17:25.813 --> 00:17:27.805 They really are driving our implementation work. 131 00:17:28.936 --> 00:17:44.951 You provided guidance around revenue allocation, establishing a low-income discount for multifamily housing residents, developing a commercial appeals process and an impact-based rate methodology for the commercial side, and a number of directives around accountability. 132 00:17:45.785 --> 00:17:47.435 And we really are working on all of this. 133 00:17:48.253 --> 00:17:51.635 And now to sort of jump more into the details, I'll hand it over to Gabe Graff. 134 00:17:52.741 --> 00:17:55.852 Thank you, Shoshana, and thank you, Director Williams, for that kind introduction. 135 00:17:56.429 --> 00:17:57.887 For the record, my name is Gabe Graff. 136 00:17:57.983 --> 00:18:08.057 I'm a capital project manager at the Portland Bureau of Transportation, and I am newly assigned to manage the standing up of this transportation utility fee and street damage restoration fee. 137 00:18:08.685 --> 00:18:16.719 I'm just a little over 2 weeks into this assignment, so I still have a lot to learn, and I may lean on my leadership here for questions that I can't answer. 138 00:18:17.251 --> 00:18:23.176 That said, I'm very excited about the work ahead and appreciate the opportunity to provide you all with an update. 139 00:18:23.728 --> 00:18:24.310 Next slide, please. 140 00:18:27.453 --> 00:18:35.675 So this slide shows this year's budget allocation aligned with the direction from the Transportation Utility Fee Ordinance and the Street Damage Restoration Fee Resolution. 141 00:18:36.414 --> 00:18:40.493 And we will talk about each of these revenue allocations over the next few slides. 142 00:18:40.605 --> 00:18:56.788 But before we do that, I want to highlight for you that we plan to be back in front of this committee in September with a more detailed Local Funding at Work investment strategy, which will really dive into each of the buckets, including more detailed prioritization criteria, reporting metrics, that kind of thing. 143 00:18:57.156 --> 00:18:58.663 Today will be more of a high-level overview. 144 00:18:59.130 --> 00:19:03.811 You'll note that at the bottom it says initial estimates to be refined. 145 00:19:04.501 --> 00:19:05.688 These estimates will change. 146 00:19:05.896 --> 00:19:19.335 Some of the factors that will affect our estimated net revenues include fine-tuning our collection costs, the implementation of the low-income discount, working out the appeals process, and other policy and implementation details that will get refined along the way. 147 00:19:19.884 --> 00:19:20.221 Next slide. 148 00:19:20.334 --> 00:19:29.045 The Transportation Utility Fee, or TUF, funding is split out per council direction with 75% of the funding for maintenance work and 25% of the funding for safety. 149 00:19:29.881 --> 00:19:33.304 And the Street Damage Restoration Fee funds are dedicated to pavement maintenance. 150 00:19:34.316 --> 00:19:34.685 Next slide. 151 00:19:37.272 --> 00:19:47.780 So here we are in the pavement maintenance category, which is where the majority of the new local funding will be invested, with funds coming from both the Street Damage Restoration Fee and the transportation utility fee. 152 00:19:48.489 --> 00:19:53.287 You'll see a range of investment levels here from $15 million to $26 million for this fiscal year. 153 00:19:53.738 --> 00:19:59.729 And this range is driven by uncertainty on the level of funding that the street damage restoration fee will generate at this stage of our work. 154 00:20:01.579 --> 00:20:13.093 This category of work is— this year is focused on basic pavement maintenance, including grind and paves, where we take off the top 2 inches of worn pavement and replace it with a smooth new layer of 2 inches of asphalt. 155 00:20:13.442 --> 00:20:23.071 Seals, including crack seals and slurry seals, essentially treatments that prolong the life of existing pavement by preventing water from getting through the pavement and eroding the base layer below. 156 00:20:24.194 --> 00:20:30.453 Base repair, where we tackle specific segments of the road where water has gotten through and damaged the supporting road structure underneath. 157 00:20:31.175 --> 00:20:33.632 And potholes, which are generally self-explanatory. 158 00:20:34.306 --> 00:20:47.185 In all of these categories, the team has put considerable time into thinking through how to prioritize projects and maintenance activities and you can see here we've got some criteria for how we select streets to pave or potholes to patch. 159 00:20:48.002 --> 00:20:53.499 Work in this category will be spread across all 4 districts with a focus on streets of citywide significance. 160 00:20:53.852 --> 00:20:57.009 These are streets that play critical roles in moving people and goods across Portland. 161 00:20:57.537 --> 00:21:05.885 These streets support transit, high-volume travel, freight, emergency response, and neighborhood greenways are prioritized pedestrian and cycling routes. 162 00:21:06.445 --> 00:21:13.401 We're also looking for opportunities to further our safety work and leverage opportunities with our sister bureaus across Public Works and other partners. 163 00:21:15.508 --> 00:21:22.698 On all categories of work, we are committed to transparent reporting on our progress, and you'll see here our reporting metrics are lane miles paved and number of potholes filled. 164 00:21:23.779 --> 00:21:24.267 Next slide. 165 00:21:26.348 --> 00:21:35.780 Okay, the streetlights and signals bucket of work is also in the maintenance category, also funded by the transportation utility fee, with $1.8 million invested in this fiscal year. 166 00:21:36.707 --> 00:21:45.378 This work will be focused on repairing streetlight knockdowns and vandalism, applying protective coatings to streetlights, and signal and rapid flashing beacon maintenance. 167 00:21:46.099 --> 00:21:57.642 And like all of our maintenance work, while this is in the maintenance category, there are clear safety benefits to these investments, and we're coordinating closely with our Vision Zero team to leverage opportunities to enhance safety alongside these maintenance efforts. 168 00:21:58.667 --> 00:22:10.903 Work in this category will also be spread across all 4 districts with work prioritized based on asset condition, the length of the disrepair, and whether the infrastructure is on one of our high crash next slide. 169 00:22:15.346 --> 00:22:15.846 Thanks. 170 00:22:16.893 --> 00:22:25.278 This slide just gives a little bit more flavor for the type of work that will be funded with the transportation utility fee in the signals and street lighting category. 171 00:22:25.950 --> 00:22:33.828 So you can see example projects like rebuilding of signals, addressing vandalism, and repairing or painting streetlights throughout the city. 172 00:22:34.827 --> 00:22:35.726 Next slide. 173 00:22:37.185 --> 00:22:41.662 Okay, we're moving on to the safety categories of investment for the transportation utility fee here. 174 00:22:42.367 --> 00:22:49.442 In the Vision Zero category, we've got $2.9 million in this first fiscal year focused on both programmatic work and capital improvements. 175 00:22:50.067 --> 00:23:00.078 On the programmatic side, we're investing in safety analysis, project identification and development, community engagement, and safety evaluations to ensure our capital investments are having the desired results. 176 00:23:01.298 --> 00:23:08.814 The capital investments in the Vision Zero category are focused on high-crash intersections where we can make cost-effective improvements to make intersections safer. 177 00:23:09.488 --> 00:23:14.577 We're also looking to leverage that existing maintenance work we talked about earlier to gain additional safety benefits. 178 00:23:15.220 --> 00:23:25.656 So for example, when we know we'll be sending crews to do routine signal maintenance, we can also have them install reflective signal backplates, no turn on red signs, or pedestrian head starts, all of which will make intersections safer. 179 00:23:26.811 --> 00:23:35.807 Our Vision Zero work is data-driven at every level, including in the project prioritization, and work will be focused in this category on our high-crash network and high-injury road segments. 180 00:23:37.237 --> 00:23:37.782 Next slide. 181 00:23:39.342 --> 00:23:45.617 The SIP, or Sidewalk Alternative Pathways category, is our final category of investment, also in the safety bucket. 182 00:23:46.247 --> 00:23:55.756 We've got $2.9 million here in this first fiscal year and will be focused on sidewalk infill projects similar to this one shown in the slide on Southeast Flavelle. 183 00:23:56.509 --> 00:24:06.380 Project selection for the SIP is building off of our existing plans such as PedPDX with a careful look to project readiness so we can stretch our limited dollars as far as possible. 184 00:24:07.869 --> 00:24:12.148 In this category, we are identifying early deliverable small projects in Districts 1 and 4. 185 00:24:13.013 --> 00:24:20.728 And looking forward, we are drafting a larger 200% list of potential SIP sidewalk projects building off of previous planning and engagement efforts. 186 00:24:20.890 --> 00:24:31.271 We'll be sharing those longer lists and gathering feedback through community engagement and at our February open houses that Shoshana mentioned early next year. 187 00:24:32.965 --> 00:24:33.336 Next slide. 188 00:24:36.784 --> 00:24:41.248 Now I'm going to shift gears a little bit and talk a little bit about some of the other program implementation work we've been doing. 189 00:24:42.230 --> 00:24:42.778 Next slide. 190 00:24:43.917 --> 00:24:45.230 Thank you. 191 00:24:45.294 --> 00:24:51.025 On the communication side, we have launched our Fixing Our Streets, Your Local Funding at Work website. 192 00:24:51.599 --> 00:24:59.244 We're going to continue to build out the website, but each of the local funding sources now has a page that can be found at www.portland.gov/fixingourstreets. 193 00:25:02.299 --> 00:25:14.502 We're working closely with our partners on the utility customer service team to develop communications that will go out to customers and help them prepare to respond to questions from customers as we get ready for the utility fee implementation date. 194 00:25:15.801 --> 00:25:18.077 Next slide. 195 00:25:19.505 --> 00:25:32.602 January is coming up quickly, and as we've mentioned, one of the critical path tasks is making sure that our Public Works colleagues— that with our collaboration with our Public Works colleagues, that our implementation is going smoothly and we're prepared for January rollout. 196 00:25:33.372 --> 00:25:39.501 I just specifically want to thank Customer Service Director Becky Anneker and her team for the support and this process. 197 00:25:41.406 --> 00:25:43.634 And I'll turn it over to Shana to go over the next couple slides. 198 00:25:44.877 --> 00:25:45.571 Next slide, please. 199 00:25:45.684 --> 00:25:46.250 Thank you, Gabe. 200 00:25:47.170 --> 00:25:53.340 So we're also doing a lot of work on the non-residential side of things in alignment with the direction in the Transportation Utility Fee Ordinance. 201 00:25:54.150 --> 00:26:02.307 This work includes developing an appeals process for the first year of the program from January 1st, 2027 to January 1st, 2028. 202 00:26:02.743 --> 00:26:13.234 During this period, the transportation utility fee for commercial and non-residential residential non-residential properties will be 4.3%— excuse me— of their water, sewer, and stormwater bill. 203 00:26:14.101 --> 00:26:25.844 The appeals process will be developed to provide relief for non-residential users where the water, sewer, stormwater bill is disproportionate to the transportation impact based on regional averages for similar types of businesses. 204 00:26:26.740 --> 00:26:31.852 We're currently developing regional average commercial rates that will serve as the basis for the appeals process. 205 00:26:32.125 --> 00:26:37.154 We're also working with city billing staff to analyze administrative and financial implications of this work. 206 00:26:37.202 --> 00:26:37.315 Thank you. 207 00:26:38.454 --> 00:26:48.773 We'll use this information to develop a draft process, and this work will include feedback from businesses with a special consideration, as I believe you asked for, for the impact on small businesses. 208 00:26:50.250 --> 00:27:03.666 In addition to the work on the appeals process, we're working on developing draft recommendations for an impact-based transportation utility fee methodology for non-residential and commercial properties that can be presented at a rate hearing by February 15th. 209 00:27:04.036 --> 00:27:08.605 Approved by City Council by April 1st and implemented then by January 1st, 2028. 210 00:27:09.742 --> 00:27:23.031 At a minimum, the approaches will include a trip-based transportation utility fee that's similar to 31 other Oregon cities and a land use-based methodology with a combined per unit and parcel square footage rate model. 211 00:27:24.250 --> 00:27:29.827 In order to meet the ordinance's intent, again, that special consideration will be given to impacts on small businesses. 212 00:27:30.325 --> 00:27:54.586 We'll be meeting with representatives from small businesses and other interested parties in advance of the rate hearings and fair this is again just sort of an initial touch, letting you know we've gotten started with this, and we intend to provide a more significant update on this work when we're here in September to ensure we're on track to implement an effective and efficient appeals process and successful rate hearings on discussing a next methodology. 213 00:27:55.839 --> 00:27:56.501 Next slide, please. 214 00:27:58.298 --> 00:28:04.298 We've also been exploring pathways for a transportation utility fee discount for income-qualified market-rate multifamily residents. 215 00:28:04.394 --> 00:28:09.953 Another thing that we know is clearly important is As we brought this TUF forward. 216 00:28:11.046 --> 00:28:21.090 As you probably remember, the utility bill includes a discount already for low-income single— low-income customers in single-family housing, and that will be extended to the transportation utility fee. 217 00:28:21.877 --> 00:28:28.616 However, there's currently no way for individual multifamily households to directly receive a discount through the existing system. 218 00:28:29.259 --> 00:28:37.893 This is because multifamily resident— residential properties typically have an overarching water sewer bill account, and individual tenants don't pay their own water bills. 219 00:28:37.941 --> 00:28:38.037 Thank you. 220 00:28:38.605 --> 00:28:44.465 The city doesn't have a direct connection to the individual household, so it's pretty complicated to find ways to give them a discount. 221 00:28:45.210 --> 00:28:50.304 This is a challenge that our utility bureau and utility bureaus nationally have grappled with for years. 222 00:28:50.967 --> 00:28:59.380 However, I'm really pleased to say that we have a team who's very excited to be digging into this and looking forward to making progress and really being a leader in this complex area. 223 00:29:01.327 --> 00:29:06.737 This team has been researching low-income discount programs that exist within the city, regionally, and nationally. 224 00:29:07.653 --> 00:29:12.071 There are 3 approaches that have emerged from the research, and they're shown on the slide. 225 00:29:13.356 --> 00:29:16.473 The first is a property-based discount pass-through model. 226 00:29:17.373 --> 00:29:30.691 In this model, the utility discounts the sort of overarching master metered property account with the expectation that the owner will pass the discount along through to tenants through rent reductions, credits, or service enhancements. 227 00:29:31.478 --> 00:29:33.935 However, there are some significant limitations with this model. 228 00:29:34.481 --> 00:29:42.657 The model relies on the property owner or manager to comply and pass the discounts along to their tenants, and it can frankly be hard to know if the discount ever reaches the tenant. 229 00:29:43.442 --> 00:29:54.178 Additionally, in market rate units, the model may put tenants in a situation where they would need to disclose personal income information to their property owners or managers to prove eligibility for the discount. 230 00:29:55.928 --> 00:30:00.028 Another utility discount approach we looked at is a cross-utility crediting model. 231 00:30:00.855 --> 00:30:09.641 For this model, another bill that the tenant does receive, such— and what we've seen is on an electric bill— is used as the vehicle for delivering the discount. 232 00:30:10.539 --> 00:30:13.945 Our team met with staff from the City of Austin to learn more about this model. 233 00:30:14.445 --> 00:30:15.834 It has proven effective there. 234 00:30:16.448 --> 00:30:25.357 However, Austin's utility environment is much different than Portland because the city controls the municipal utility services, the electric service. 235 00:30:27.019 --> 00:30:31.747 There are not many cities that we've seen, Austin, maybe one or two others, but not many that do this. 236 00:30:31.859 --> 00:30:35.688 And we don't believe— we haven't found yet anyone that does it with non-municipal utilities. 237 00:30:35.736 --> 00:30:36.905 So again, it shows promise. 238 00:30:37.019 --> 00:30:41.468 It's working well in Austin, but we think in our environment it would be pretty challenging. 239 00:30:43.509 --> 00:30:46.538 The third model is a direct-to-tenant rebate or credit model. 240 00:30:47.231 --> 00:30:56.107 Tenants apply to receive a discount and they're sent a rebate in a number of ways, either via mailed check, loaded debit or gift card, a digital app, or potentially another delivery model. 241 00:30:57.800 --> 00:31:04.436 We believe this model is the most promising at this point because we could reach tenants directly and it works in our utility environment. 242 00:31:05.407 --> 00:31:08.221 Any of these options will require new administrative processes. 243 00:31:08.317 --> 00:31:13.228 However, we'll be looking to find opportunities to streamline and find efficiencies through program design. 244 00:31:14.454 --> 00:31:15.085 Next slide, please. 245 00:31:17.190 --> 00:31:19.278 Again, we're sort of giving you— bringing you along. 246 00:31:19.454 --> 00:31:20.385 That's where we are right now. 247 00:31:20.515 --> 00:31:23.855 We still have more work to do before we can come back with a clear recommendation. 248 00:31:24.771 --> 00:31:26.875 The ordinance directed us to be back with our study in December. 249 00:31:26.924 --> 00:31:36.507 However, we We plan to be back with a clearer recommendation in September in order to ensure we can get your feedback in time to implement a program next year. 250 00:31:36.700 --> 00:31:37.902 We're on a tight timeline here. 251 00:31:39.280 --> 00:31:50.260 In doing that, we're continuing to work closely with a variety of city partners, revenue, city data office, all sorts of folks, and really thinking through implementation feasibility. 252 00:31:51.222 --> 00:32:03.548 We'll also be doing more outreach with organizations that can help us better understand how to make this work for the people who need it most, and also can help us to make sure that people know about benefit once we make it available. 253 00:32:04.836 --> 00:32:05.538 Next slide, please. 254 00:32:08.589 --> 00:32:17.049 We also have staff who are hard at work thinking through the new pavement coordination and utility assessment processes and how we update our administrative rules for the street damage restoration fee. 255 00:32:17.685 --> 00:32:18.105 Next slide. 256 00:32:19.393 --> 00:32:30.866 We want this work to be informed by utilities, and one of the things we've just completed is a survey that was sent out to utility representatives to gain their input on things like how best to improve coordination and incentivize reducing the number of street cuts. 257 00:32:32.884 --> 00:32:33.335 Next slide. 258 00:32:34.490 --> 00:32:51.479 PBOT is still assessing the survey responses, but initial utility feedback includes encouraging us to provide more advanced notice of paving and capital projects, improving the visibility of planned work by PBOT and other utilities, and providing centralized coordination versus project-to-project communication. 259 00:32:52.796 --> 00:33:04.365 They've also asked that the administrative rules clearly outline how the fee will be calculated, ensure the permit requirements are consistently applied, and PBOT provides dedicated staff to support utility coordination. 260 00:33:05.251 --> 00:33:19.066 We really appreciate this feedback that we've been getting both from our external utilities and our partners in water and BES, and it's truly helping us to ensure we're able to put together an efficient program that is grounded in minimizing street damage. 261 00:33:20.792 --> 00:33:21.839 Next slide, please. 262 00:33:23.539 --> 00:33:33.674 The existing Fixing Our Streets Oversight Committee, which used to be primarily over the 10-cent local gas tax, is expanding its oversight to include the transportation utility fee and the street damage restoration fee. 263 00:33:34.157 --> 00:33:38.766 We really appreciate the volunteers on this committee embracing this larger scope and responsibility. 264 00:33:39.621 --> 00:33:40.250 Next slide, please. 265 00:33:41.653 --> 00:33:52.353 At their next committee meeting on August 4th, the committee will review some updates to the bylaws to reflect this new responsibility and review an overview of our implementation progress, very similar to what you're seeing here today. 266 00:33:53.961 --> 00:33:54.588 Next slide, please. 267 00:33:55.849 --> 00:34:01.011 Finally, as we've mentioned already a number of times, we'll be back again in September with more details on all of this. 268 00:34:01.749 --> 00:34:11.833 And we also— staff, we wanna make sure you all know, 'cause there's a lot of details here, that staff are available between now and September for any additional feedback or engagement on these items. 269 00:34:12.329 --> 00:34:13.981 And we encourage you all to be in touch. 270 00:34:14.893 --> 00:34:21.547 And then finally in November, we will be back to have a conversation about some things we'll have to put back in code with an ordinance. 271 00:34:22.349 --> 00:34:23.679 And next slide, please. 272 00:34:23.728 --> 00:34:25.539 And I believe that concludes our presentation. 273 00:34:25.603 --> 00:34:25.715 Thank you. 274 00:34:27.630 --> 00:34:27.807 Terrific. 275 00:34:27.905 --> 00:34:30.257 Thank you all, and welcome, Gabe. 276 00:34:30.744 --> 00:34:34.297 I imagine this is a little more complicated than a capital project. 277 00:34:34.637 --> 00:34:35.465 I don't know. 278 00:34:36.742 --> 00:34:37.675 It's a lot to learn. 279 00:34:37.802 --> 00:34:38.590 A lot to learn. 280 00:34:39.056 --> 00:34:41.597 Well, thanks, and welcome to the team. 281 00:34:41.726 --> 00:34:43.992 We really appreciate this update. 282 00:34:45.538 --> 00:34:49.949 I know you can't dive too deeply, but we appreciate at least getting the skeleton of what's going on. 283 00:34:50.014 --> 00:34:52.641 And I know we're going to have lots of questions and comments here today. 284 00:34:53.434 --> 00:34:55.460 So why don't we start with Councilor Kanal? 285 00:34:56.320 --> 00:34:57.878 Thank you, Chair Clark. 286 00:34:58.041 --> 00:34:59.112 Thanks everybody for being here. 287 00:34:59.175 --> 00:35:00.197 I appreciate the presentation. 288 00:35:02.719 --> 00:35:10.753 I, as I listened through the first, let's say, 18 slides, I appreciate, and the end as well, a lot of what's been done here. 289 00:35:10.898 --> 00:35:15.135 And it seems like the core function process is going forward. 290 00:35:15.652 --> 00:35:20.996 Councilor Avalos and I put up an amendment to the original ordinance back in— what was that, April? 291 00:35:21.621 --> 00:35:27.266 And it doesn't appear like a lot of work's been done on that yet. 292 00:35:27.331 --> 00:35:36.313 I appreciate, Shoshana, you saying that we're going to be coming back with more information in September, but my understanding is September is when you're also going to be asking us to vote. 293 00:35:37.195 --> 00:35:43.067 And so I don't know how we're going to have the opportunity to provide— if there's going to be the opportunity for a feedback loop. 294 00:35:43.452 --> 00:35:52.135 And I'll be more specific about what I'm looking at, but just from a process perspective, Are there going to be 2 different touchpoints in September, or is those going to be on the same— are those going to be on the same date? 295 00:35:52.619 --> 00:35:58.570 We're happy with you to work sort of as you sort of would like us to do. 296 00:35:58.635 --> 00:36:00.211 We can come with 2 points. 297 00:36:00.762 --> 00:36:05.672 I think that's why we were laying out sort of right now where we were, that we have those 3 options. 298 00:36:06.849 --> 00:36:11.014 So happy to follow up and make this work as you see. 299 00:36:11.483 --> 00:36:14.644 I think that we're also looking for some feedback on what we've what we presented today. 300 00:36:14.820 --> 00:36:20.487 So I think this is sort of one of the first, um, points, but again, happy to continue working with you as much as you would like. 301 00:36:21.048 --> 00:36:25.670 Yeah, I think in terms of the SDRF, it feels like I have no immediate concern there. 302 00:36:25.784 --> 00:36:30.326 I'll, I'll, um, follow up if anything comes up, but that, that feels like it's, it's going well. 303 00:36:30.454 --> 00:36:32.989 In terms of— and if you could go to slide 19, please. 304 00:36:33.648 --> 00:36:39.168 Um, the, uh, it'll be 19 and 20 primarily, but it'll start at 19. 305 00:36:39.307 --> 00:36:54.177 So the understanding that I have from how that amendment went is that the intention was to actually increase the amount of research and not limit it to what we already had. 306 00:36:54.775 --> 00:36:56.065 Actually, we should start with slide 20. 307 00:36:56.130 --> 00:36:56.646 I apologize. 308 00:36:58.952 --> 00:37:00.242 I'm a little surprised. 309 00:37:00.646 --> 00:37:05.599 I don't know if anyone else here is a renter, but I rent a market rate unit. 310 00:37:05.664 --> 00:37:11.715 The idea that it may require tenant to disclose income to owner, and that's a new thing, Is a little bizarre to me. 311 00:37:12.246 --> 00:37:13.340 You already have to do that. 312 00:37:14.257 --> 00:37:17.378 That's how you get approved for an apartment or rental. 313 00:37:18.552 --> 00:37:19.327 That's not a new thing. 314 00:37:19.440 --> 00:37:24.003 That happens just about everywhere around the city for 47% of us who rent. 315 00:37:25.976 --> 00:37:41.610 And so that being a concern there, it, you know, the second one having primarily seems to only have been based on a conversation with Austin, but also we— and the idea that we don't run electricity, so we can't— we run water and sewer though. 316 00:37:42.012 --> 00:37:43.190 We have that billing authority. 317 00:37:43.769 --> 00:37:48.331 So it seems like we're just— we've already decided that we want to go with the third option. 318 00:37:48.943 --> 00:37:54.268 And I want to be clear, I won't vote yes on anything if I don't get another option besides that in September. 319 00:37:54.735 --> 00:37:57.951 I am very opposed to that being the only thing that we explore. 320 00:37:58.000 --> 00:37:59.657 And it appears that's all that's been explored. 321 00:38:01.320 --> 00:38:02.206 Can— oh, go ahead. 322 00:38:02.400 --> 00:38:15.206 If I may, Councilor, thank you for raising your concern and referencing these are but 3, and we've not made a determination about which one. 323 00:38:15.304 --> 00:38:25.416 We're just talking about for implementation the challenges or lack of challenge with implementation if we chose one path over another. 324 00:38:25.659 --> 00:38:35.563 We're not suggesting that we wouldn't do the most involved resource— research-driven solution, but our team does need a little bit more time to continue to do the work. 325 00:38:35.628 --> 00:38:35.724 Thank you. 326 00:38:35.853 --> 00:38:36.239 Councilor Smith. 327 00:38:38.239 --> 00:38:55.485 Work to get to both the answers that you're wanting in terms of looking at a full panel of options and weighing that against the ability for us to do that implementation in a way that supports both the goals of this initiative as well as supports community that's being served by it. 328 00:38:56.126 --> 00:39:02.521 Yeah, and just to be clear, I am perfectly fine with the idea of taking more time on it. 329 00:39:02.952 --> 00:39:07.297 I'm also fine— I'm not saying I necessarily want to pursue either of these first 2 options. 330 00:39:07.746 --> 00:39:09.913 The challenges of associating this with a water bill. 331 00:39:10.570 --> 00:39:19.514 I am concerned that there was one opportunity, one option presented back in April for a specific, a specific not only methodology but vendor. 332 00:39:20.445 --> 00:39:23.047 And that's the only thing that has a green under it right now. 333 00:39:23.898 --> 00:39:32.005 So by putting a red and green up here, that's a thumb on the scale as far as how I interpret it and how I think the public will interpret it in terms of challenging and moderate. 334 00:39:32.231 --> 00:39:39.467 So I really want I want to be clear, I need a second option besides the one vendor and option that was brought up in April. 335 00:39:39.789 --> 00:39:48.114 I also want to be very clear that a couple things, just, and again, we are happy to sort of continue this conversation as much as possible. 336 00:39:48.211 --> 00:39:52.077 And I think we had reached out to your office last week to try to get some of this feedback. 337 00:39:52.222 --> 00:39:58.768 We're happy to, you know, we're here sharing sort of what is emerging, but we have no— we'll take as long as it needs. 338 00:39:59.346 --> 00:40:02.760 I do want to clarify that a couple things. 339 00:40:02.824 --> 00:40:04.449 We have done more research. 340 00:40:04.530 --> 00:40:11.606 It's been, in some ways, I think the team on this has dug in the most quickly and done, you know, this is just a hard area. 341 00:40:11.751 --> 00:40:14.365 As we said, there's not a lot of solutions nationally. 342 00:40:14.429 --> 00:40:18.965 So I think what we saw early on, we are continuing to see. 343 00:40:19.094 --> 00:40:22.853 I think if it was easy, if there were a lot of good solutions, more people would've done it. 344 00:40:23.224 --> 00:40:27.322 But I do want to be very clear that it wasn't, I know there was an earlier Water Bureau report. 345 00:40:27.418 --> 00:40:28.492 We've done more of our own original research. 346 00:40:28.543 --> 00:40:28.985 We really have been digging in. 347 00:40:31.248 --> 00:40:44.141 And then also on that third option, I think what we're saying is some sort of direct payment to people seems like the thing that people would want most. 348 00:40:44.239 --> 00:40:45.385 Like, send me a check. 349 00:40:45.530 --> 00:40:47.452 That seems like, you know, send me a check. 350 00:40:47.548 --> 00:40:51.465 Or for people who don't have bank accounts, send me a debit card, something. 351 00:40:51.963 --> 00:40:54.652 I know there is some conversation about a particular vendor. 352 00:40:54.715 --> 00:40:57.791 We are not saying that this is a recommendation for that particular vendor. 353 00:40:57.855 --> 00:41:01.025 We're saying that some sort of an app thing is still on the table. 354 00:41:01.088 --> 00:41:02.903 Some sort of a direct check is on the table. 355 00:41:02.952 --> 00:41:04.188 Some sort of a debit card. 356 00:41:05.119 --> 00:41:05.842 Something like that. 357 00:41:05.922 --> 00:41:11.061 And that's where we also are trying to talk to community organizations and people and say, what would you prefer? 358 00:41:11.188 --> 00:41:12.023 Would you like a check? 359 00:41:12.088 --> 00:41:15.155 Would you like, you know, would you like an app? 360 00:41:15.460 --> 00:41:16.632 Those are the things we're trying to dig in. 361 00:41:16.744 --> 00:41:22.974 But we are not saying— there's been no sort of conversation about this is, you know, this is what we're presenting. 362 00:41:23.489 --> 00:41:29.077 Again, I think the research so far did— has continued to lift up some of the challenges that we saw earlier. 363 00:41:29.496 --> 00:41:30.717 But we can go back. 364 00:41:31.360 --> 00:41:39.186 I think we also felt like we were under pressure to deliver by the beginning of the program or as close to that as possible, which means there's some limits. 365 00:41:40.117 --> 00:41:42.947 So I understand that. 366 00:41:43.010 --> 00:41:47.315 And I think just to correct the record here, the time was offered. 367 00:41:47.364 --> 00:41:48.188 My staff did meet. 368 00:41:48.253 --> 00:41:49.740 We asked if more research had been done. 369 00:41:49.789 --> 00:41:51.228 And in that briefing, we were told no. 370 00:41:52.150 --> 00:41:53.559 So I just want to get that on the record here. 371 00:41:55.313 --> 00:41:59.702 Secondly, I'm perfectly content to have other ways of doing the direct-to-tenant. 372 00:41:59.798 --> 00:42:02.396 Like, that can be subdivided into different options, and I get that. 373 00:42:04.458 --> 00:42:08.588 In terms of SEAMS, I do want to note, you know, I'm having a picnic and other events. 374 00:42:08.652 --> 00:42:15.717 We offered that to your staff to come to do the community engagement so that SEAMS can be verified by data, right? 375 00:42:16.137 --> 00:42:18.250 That's August 9th from 12 to 3 at McCoy Park. 376 00:42:18.298 --> 00:42:18.927 Anyone interested? 377 00:42:19.230 --> 00:42:39.090 But I just wanted to make sure that that's on the record here because I do understand the time crunch and I am content to look at potentially offering legislative flexibility to ensure that we're able to do it right. 378 00:42:39.556 --> 00:42:44.918 I'm concerned about being sort of shoved into the only option that was identified in April. 379 00:42:46.235 --> 00:42:48.579 And so that's what I'm trying to avoid here. 380 00:42:48.869 --> 00:42:54.088 Councilor, I think that we've clarified that there's actually a lot more going on or has gone on. 381 00:42:54.184 --> 00:42:56.688 And I think some things get lost in translation. 382 00:42:57.572 --> 00:43:03.737 So I would encourage you to personally discuss this with Shoshana or somebody else from the team if you can. 383 00:43:04.202 --> 00:43:05.793 My team did, and I'm happy to do it again. 384 00:43:06.065 --> 00:43:07.590 But I have the dates on that. 385 00:43:07.639 --> 00:43:09.534 You can check the team's records, public records there. 386 00:43:09.679 --> 00:43:09.871 Thanks. 387 00:43:10.000 --> 00:43:10.416 Thank you. 388 00:43:12.726 --> 00:43:13.681 Councilor Koyama Lane. 389 00:43:16.510 --> 00:43:17.063 Thank you, Chair. 390 00:43:20.023 --> 00:43:21.791 Sorry, I am virtual today. 391 00:43:24.146 --> 00:43:37.847 I wanted to say, as I was hearing this presentation, I wanted to say that I could really see that you all at PBOT really have taken close notes of what councilors are serious about and asking. 392 00:43:41.722 --> 00:43:48.487 So I know we don't have all of our answers and solutions yet, but I wanted to start with that, that I could really see that. 393 00:43:48.873 --> 00:43:52.777 And I can't see the faces of those who were presenting. 394 00:43:53.132 --> 00:43:59.431 It's kind of like teaching virtually on Zoom, but just know that I have appreciation there and hope you feel that. 395 00:44:01.465 --> 00:44:05.201 For my questions, you know, I'm just— I'm thinking about the limited Thank you. 396 00:44:05.280 --> 00:44:06.132 We just received tough revenues. 397 00:44:06.195 --> 00:44:07.288 It's really exciting. 398 00:44:07.704 --> 00:44:14.528 And we also have, you know, especially when thinking about Vision Zero, we have a lot to accomplish. 399 00:44:14.704 --> 00:44:20.083 There's a lot of different projects from capital projects to reporting, community engagement. 400 00:44:20.789 --> 00:44:40.101 I'm wondering how we can make sure that we're really strategically deploying those funds to make sure that projects that are going to save the most lives possible are prioritized, and I'm wondering if whoever is the best-suited person could kind of speak to some of the thinking and planning around that. 401 00:44:42.889 --> 00:44:43.503