Resolution No. 36386

Form Internal Advisory Committee to consider how best to inform City Council of potential cost impacts (Resolution)

WHEREAS, the City Council authorizes and approves capital improvement projects, public improvements needing major maintenance, construction services and Professional, Technical or Expert (PTE) contracts and budget requests for these same items; and

WHEREAS, there currently is no formal method for informing the City Council of the level of confidence that bureaus and offices have in their estimates and proposed budget requests for capital improvement projects, public improvements needing major maintenance and related PTE contracts; and

WHEREAS, it is possible for city offices and bureaus to express their level of confidence, based on established criteria, in the budgets and estimates they are considering, as shown by the City of Portland Asset Status and Conditions Report of December 2005, which analyzed the condition of various city assets using a similar measurement approach; and

WHEREAS, the City Council has an interest in reassessing how the city manages its assets and expressing confidence in project cost estimates will be an important step in initiating a city-wide consideration of asset management; and

WHEREAS, an internal advisory committee, under the direction of the Bureau of Purchases, should be formed to lead this effort and ultimately provide a report to the City Council suggesting a method by which such levels of confidence can be expressed and the criteria by which such levels of confidence are assigned to the City Council; and

WHEREAS, the committee should include representatives from all the various city offices and bureaus in order to make sure that the suggested method will be feasible; and

WHEREAS, the Director of the Bureau of Purchases may determine the size of the committee, its meeting schedule, the type of report to be presented, and other procedural details; and

WHEREAS, the completed report should recommend a process for expressing a level of confidence in budget numbers, estimates for public improvements and major maintenance of public improvements and related PTE contracts, including the size of projects or minimum thresholds to which the method would apply as well as definitions of each level of confidence showing the degree of certainty that each level reflects; and

WHEREAS, the internal advisory committee should report back to the City Council within the next three months either with a completed report or with a description of its progress to date;

NOW, THEREFORE, BE IT RESOLVED that the Portland City Council hereby forms an Internal Advisory Committee to explore how best various city offices and bureaus can express to the Council their level of confidence in the various estimates and budget numbers and construction estimates for capital improvement projects, public improvements requiring major maintenance, and related PTE contracts under the direction of the Director of the Bureau of Purchases.

Adopted by the Council: March 08, 2006     Gary Blackmer

                Auditor of the City of Portland

                By /S/ Colleen Phillips

Mayor Tom Potter                 Deputy

Commissioner Sam Adams

Prepared by: Mary Jo Markle

March 1, 2006

BACKING SHEET INFORMATION

AGENDA NO. 288-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36386