Require City Administrator to develop Citywide Asset Management Strategy to establish priorities and practices to address asset management maturity and financial planning gaps

WHEREAS, the City owns billions of dollars’ worth of public assets and infrastructure, including: built infrastructure such as roads, streets, water and sewer systems, buildings, and facilities; equipment, technology, and data management assets such as telecommunications systems and programs; and natural infrastructures such as natural areas, parks, and trees, and waterways; and WHEREAS, these assets and infrastructure allow the City to deliver basic services to the public; and the City’s infrastructure – its streets, parks, water and sewer systems, arts and culture venues, public safety facilities, and technology – form the foundation of daily life and directly impact the health, safety, and well-being of every Portlander; and WHEREAS, Portlanders experience the City’s infrastructure every day – when they drink clean water, flush their toilets, walk or roll down safe sidewalks, visit a park, commute to school or work, and rely on fundamental City services like public safety; and WHEREAS, failing assets are a threat to public safety, public health, and our economic future; and WHEREAS, decades of underinvestment have led to deteriorating assets, from poorly maintained streets to unkempt parks to critical service interruptions; and WHEREAS, a strategic approach to asset management can help ensure clean drinking water, safe and well-maintained streets, reliable sewer and stormwater services, welcoming parks, vibrant arts, and cultural venues, and dependable public safety systems for all Portlanders, now and for future generations; and WHEREAS, in 2021 through Resolution 37551, the City recognized the importance of the natural and built physical infrastructure the City owns and manages, and directed the adoption of an asset management policy by capital asset owning and managing bureaus; and WHEREAS, in April 2025, the Auditor’s Audit Services reported that the City has underinvested in routine and preventive maintenance of its aging assets, which created a backlog of costly and increasingly urgent needs that the City does not have the funding to meet. The City has not adopted a unified Citywide asset management strategy due to the pre-Charter commission form of government, decision-making processes, and lack of long-term approach to address the infrastructure funding gap; and WHEREAS, the transition to a Mayor-Council form of government provides an opportunity for a more coordinated approach to asset management and supports service areas and bureaus working together to reduce life cycle costs for delivering services to Portlanders; and WHEREAS, infrastructure asset management involves a comprehensive approach to make the best decisions to manage our built and natural assets to obtain the greatest public value at the lowest life cycle cost and an acceptable level of risk; and WHEREAS, the estimated annual funding gap between overall infrastructure needs and dedicated resources is expected to grow exponentially unless addressed; and WHEREAS, coordinated asset management planning helps avoid unnecessary repairs and emergency costs, reducing long-term financial burdens on Portland ratepayers and taxpayers; and WHEREAS, responsible stewardship of City assets ensures that today’s investments do not become tomorrow’s burdens, and supports an intergenerational commitment to leaving our children and grandchildren a city that works better than we found it; and WHEREAS, the City owns over $80 billion worth of assets and the Public Works Service Area is responsible for over 90% of the City’s assets-including systems that deliver clean drinking water, treat wastewater, and maintain our streets and public spaces across Portland. NOW, THEREFORE, BE IT RESOLVED that the City Administrator, pursuant to Charter Section 2-406(j) shall submit a report to Council, a new Citywide Asset Management Strategy, that includes but is not limited to: Identification of current best practices for asset management decision making with long-range financial planning, with compliance and financial implications meaningfully informing enterprise-wide policies and standards; Incorporation of organization needs, existing assets and asset management capabilities, and operational realities that may support or impede effective implementation of a strategy; Development of a standardized approach to asset management across all bureaus that recognizes different needs; Inclusion of appropriate stakeholders and bureau-level technical expertise, to support cross-disciplinary collaboration and accountability; Incorporation of sustainability and climate resilience may be included to ensure Portland’s infrastructure is prepared to meet the challenges of a changing environment – for this generation and the next; Inclusion of options and opportunities for funding, including but not limited to raising revenue or allocating funding for deferred maintenance of and regulatory compliance for existing infrastructure, system growth, and infill; Inclusion of a proposal for monitoring, communicating, and updating Council and other stakeholders on the status and progress of citywide asset management; and Recommendations for how and when to convene Service Area stakeholders to assess the scope and timing of potential City capital project needs, timing, and eligibility. BE IT FURTHER RESOLVED that: The Report on a new Citywide Asset Management Strategy should be submitted to the Council no later than September 30, 2026. The City Administrator and the Chief Financial Officer shall develop a proposed strategy for a Citywide general obligation bond program that must be included in the proposed Citywide Asset Management Strategy. This strategy should be submitted to the Finance Committee for comment no later than December 31, 2026.