Board approves strategic investment fund plan; Savas votes no over fairness concerns

The Clackamas County Board of Commissioners voted 3-1 Feb. 25 to approve strategic investment fund expenditures as presented in Attachment B, a plan that programs a portion of county vehicle-registration revenues for jointly agreed road projects and jurisdictional transfers with cities.

Commissioner Karen Schrader moved to approve the strategic investment fund expenditures; Commissioner Tom West seconded the motion. The board recorded three affirmative votes and one dissenting vote from Commissioner Paul Savas, and the motion passed.

Why it matters: the strategic investment fund was created as part of a countywide vehicle registration fee approved by the board in 2019 and effective January 2020. The presentation said the fee generates about $11.5 million a year; by statute the revenue is split 60% to the county and 40% to cities. County staff described a county-setaside called the strategic investment fund that equals roughly 10% of the county's share (staff estimated about $1 million per year) and is intended for projects that are mutually beneficial to the county and cities, including jurisdictional transfers and fringe projects.

Presentation and plan highlights: Dan Johnson, director of the Department of Transportation and Development, and Mike Besner, assistant director for transportation, reviewed Attachment B and the fund's five-year project plan. Staff said previous work under the fund included jurisdictional transfers and city projects in Canby, Estacada, Sandy and Wilsonville; current or proposed items on the Attachment B list included:

- Design and planned construction for a project at Deuce Road and Eagle Creek Road outside Estacada (construction slated for 2026 as presented). - Molalla: design work for the Bear Creek Bridge replacement on Molalla Avenue. - Oregon City: Beavercreek Road transfer and related work (staff-to-staff agreement; a board action expected in coming months). - A proposed rapid-flashing beacon at Don and Pilkington for Rivergrove (county intersection adjoining a city). - A Lake Harmony/Railroad Avenue intersection study in Milwaukie and other intersection studies. - Discussions with Canby staff on a possible transfer of Pine Street and other city–county transfers or contributions (Tualatin, Wilsonville, Lake Oswego were mentioned in various partnership contexts).

Staff cautioned that Attachment B is a living document: final agreements, contracts and intergovernmental agreements (IGAs) will return to the board for approval before any funds are spent. Staff also said state statute governs the 60/40 distribution and that changing the allocation would require agreement with the cities via IGAs and likely amendment of county code.

Commissioner concerns and board debate: Commissioner Paul Savas said he supported the vehicle-registration fee in principle but criticized the distribution formula and the effect on unincorporated areas as the program nears the end of its road-transfer phase. "I'm not voting against the vehicle registration fee. I'm just voting against that. I don't like... there's a fairness issue that's growing here as we near the end of the road transfer aspect," Savas said, and he urged staff to return with options to transition or phase the county's contribution. Staff and other commissioners noted that some cities declined transfers (staff listed Gladstone, Happy Valley and Milwaukie among jurisdictions that did not accept earlier proposed transfers) and that the county cannot force a city to accept a road transfer. Several commissioners and staff argued the fund has enabled county projects and local paving and safety improvements that otherwise would not have been funded.

Vote and next steps: the motion passed 3-1. Staff told the board they plan to return with updates during development of the county's Transportation System Plan (TSP) and as legislative outcomes from the state long session emerge; any change to the fund's allocation would require agreements with cities and likely an amendment to county code.

Ending: The board approved the Attachment B plan to program strategic investment fund dollars; Commissioner Savas registered a dissent and requested future consideration of a redistribution or phase-down to address perceived fairness for unincorporated areas.