Portland council orders investigations, pauses related administrative actions in Zenith Energy matter

Portland City Council voted to investigate decisions and communications tied to Zenith Energy Terminal Holdings LLC, directing the mayor and bureau staff to review potential violations of the company’s franchise agreement and urging the city auditor to examine competing statements that arose during January briefings.

Councilors framed the resolution as a transparency and public-trust measure designed to resolve conflicting claims about how the company and city staff handled land-use compatibility and related administrative actions. The resolution asks permitting and development, the city attorney and other bureaus to disclose prior communications with Zenith and requests the mayor pause further administrative actions related to Zenith while the reviews proceed.

Supporters said the city needs clarity given years of public concern and multiple, sometimes contradictory, accounts in the record. “When Portlanders lose faith in the work of our city, we lose so much,” Councilor Angelita Murillo said, arguing that a public, independent review would restore confidence. Sponsors emphasized that the mayor has charter authority to investigate franchise agreements and that the auditor’s role is to examine the facts and prepare a public report.

Opponents and cautious voters expressed concern about the tone and attachments in the draft resolution and about possible effects on city staff. Several councilors pressed for language that preserves fairness and does not presume guilt; an amendment adopted during debate removed one disputed attachment and narrowed language so the mayor’s investigation could proceed under the city charter.

The council also debated whether to accept extensive outside materials and media reports into the official record. A council amendment that would have stripped multiple attachments and background paragraphs failed; a narrower amendment that removed a single unsigned attachment passed.

Public testimony was brief; two speakers urged accountability and transparency and asked the council to approve the requested investigations so the community can know whether local laws or procedural obligations were followed.

Outcome and next steps: the amended resolution passed by council vote (final recorded result: 11 yes). The resolution directs the mayor to investigate potential violations of the Zenith franchise agreement, asks bureaus to disclose communications with Zenith, requests that permitting staff evaluate recent land-use review decisions in light of prior records, and urges the city auditor to report on competing statements made to council during prior sessions. The resolution also asks the mayor to pause administrative actions related to Zenith to the extent permitted by law while those reviews proceed.

What the council did not do tonight: the vote did not revoke any permit or immediately halt already-issued approvals; the resolution asks the mayor and auditor to review and report publicly and asks the mayor to pause further administrative action going forward, within legal limits. Council repeatedly stressed investigations should be fair and that personnel accountability, if any, will follow established administrative processes.

The council recorded the vote and adopted the amended resolution. The mayor indicated he would carry out the investigation consistent with the council’s direction and the charter. The auditor’s office was asked to consider an independent factual review and to report findings to council.

Provenance: council committee staff summary, committee discussion, public testimony, extended council debate and final vote were recorded in the March 19 transcript.