Multnomah County addresses audit finding on library construction recycling as bond program nears completion

Multnomah County staff updated the Board of Commissioners on the fourth‑quarter 2025 status of the county's library capital bond program and disclosed a recent auditor report that flagged gaps in construction waste and recycling reporting.

"In May 2025, the Multnomah County auditor's office received a tip to the good government hotline," said Kate Vance, deputy director for the library capital bond program, who briefed the board. "The report ... found that the county could not verify actual recycling rates on these 4 projects." Vance named the affected projects as the Albina, Holgate, Midland and North Portland libraries.

Vance said the issue reflects an industrywide challenge and that the program is beginning a review. "There is room for improvement," she said, and the library program management office (PMO) will work across departments with sustainability consultants and general contractors to identify process improvements and ensure more reliable reporting on future projects.

On immediate impacts, Vance told the board that while some projects lost points tied to construction waste and recycling, the projects remain within the threshold for LEED Gold certification. "While 3 of the 4 projects lost the opportunity for LEED points due to this issue, each project will still achieve or is on track to achieve LEED gold certification," she said. The PMO also noted that a separate LEED challenge to the operations center was unsuccessful and that those points were retained.

Bond program staff described technical causes for the reporting gap. Mike Day, PMO director, said constrained jobsite layouts can force commingled waste streams that rely on haulers to segregate and weigh materials downstream. "Where the gap was was in that weighing piece," Day said, adding that Metro and recycling vendors have responsibility in the material‑handling chain and that the county will convene technical experts, prime contractors and sustainability consultants to address the weighing and verification process.

Commissioners pressed for clarity on potential remedies and consequences. Commissioner Megan Moyer asked whether the audit could lead to losing LEED certification retroactively or triggering other penalties. Vance said the program is still evaluating the report but that, based on the audit as released, the LEED status for the projects remains intact and there were no immediate tax‑credit repercussions.

Board members also emphasized vendor support and equity. Commissioner Singleton urged the county to assist vendors in improving practices rather than defaulting to punitive steps, noting industry dynamics that can disadvantage some firms.

Beyond the audit, staff reported financial updates: roughly $1.3 million in added interest income since the last update, and about $87,000 in incentives from Energy Trust of Oregon, mostly for the Albina project. Staff said portfolio contingencies remain healthy and described a "contingency savings" tracking project for better transparency.

Staff said the county expects to complete the bond program over the next nine months and will schedule work sessions with technical experts and sustainability partners to implement the changes identified by the audit and to improve contractor reporting.

The commissioners did not take a formal vote; staff left the board with planned next steps and an intention to report back on process changes and outcomes.