Convoluted and confusing

The trouble that can occur when cronies become partners.  I'm all for subcontracting city services, but ultimately, who's minding the store?  This isn't just a Portland problem - the streetcar fiasco impacts everyone in the state, the Metro region, and the cities where the streetcars operate.  This wouldn't happen if public bureaucrats were personally responsible for the dollars they waste, but since it's all OPM, what does it matter?

'Convoluted and confusing' Portland streetcar bureaucracy needs clear goals, responsibilities

The Oregonian, April 17, 2014. By Brad Schmidt

The bureaucracy behind Portland’s $251 million streetcar system is "convoluted and confusing,"according to a new city audit, and no more money should be spent expanding it until city leaders set clear goals. 

In the 19 years since Portland launched its nationally known streetcar revitalization efforts, the city has authorized contracts worth nearly $21 million to the same nonprofit company, Portland Streetcar Inc., for administrative work without seeking a second round of competitive offers.

All the while, city officials within the Bureau of Transportation have broadly failed to set expectations for Portland Streetcar. And when clear responsibilities did exist, the audit found, the company didn’t always deliver.

Thursday’s report, released by Auditor LaVonne Griffin-Valade, is the most complete look into the Byzantine administrative structure behind the city’s streetcar system.

While Portland owns, operates and is financially responsible for the 16-streetcar system, Trimet employees drive the streetcars and the city contracts with Portland Streetcar Inc. for some administrative work. Consulting firm Shiels Obletz Johnsen has played the primary role, with the company’s Rick Gustafson serving as Portland Streetcar’s only executive director until this month.


While Portland Streetcar states publicly that itoperates the system on the city's behalf, auditors found that isn't really the case. Portland's agreement with the nonprofit places full risk and responsibility on the city while Portland Streetcar has "no responsibility" for operation and maintenance safety.