May 28, 2004

Interview: Sandra McDonough

Newly-Appointed President Of The Portland Business Alliance

As readers by now are probably aware, the Portland Business Alliance recently named their new president. Last week, the Alliance announced that one Sandra McDonough would take over for interim President Pat LaCrosse, who took the post after the somewhat ignominious departure of ever-controversial Kim Kimbrough.

McDonough has been a Board member of the Alliance, the Vice President of National Energy & Gas Transmission, worked in public affairs and communciations at PacifiCorp, and as a reporter for The Oregonian and Seattle Times.

For context's sake, there was a Business Journal of Portland notice of her appointment, as well as an Oregonian item. More recently, The Oregonian editorialized on her appointment and its views on what it should bring to Portland. In addition, McDonough was a member of the independent panel which recently released its report on the Mt. Tabor reservoirs.

What follows is an interview with McDonough conducted by email this week. This item also marks the launch of a new Interviews category here, of which which we hope to make more use in the coming months.

Some of our questions were knowingly asked without expecting quite a direct response (you'll likely be able to tell which ones), but how people decide to answer such questions probably reveals something as well.

It should also be noted, for the sake of transparency, that the exchange was conducted through an intermediary at the Alliance's public relations office, rather than through direct email to and from McDonough.

Portland Communique: What should be the most important near-term focus of the Portland Business Alliance?

Sandra McDonough: Near-term, the Alliance needs to listen. We need to listen first and foremost to our members to ensure we are meeting their needs. For the last two years, we've been implementing the merger of the Greater Portland Chamber of Commerce and the Association for Portland Progress. Now we need to fulfill the promise of that merger, by working with our broader membership toward a goal of building a strong regional economy and a vital downtown.

We also need to listen to elected officials and community leaders throughout the Portland area, as well as at the state. We need to build a collaborative relationship with them so that we can work together toward our common objectives. And, finally, we need to listen to the other business associations working in this region, and join forces with them where possible.

Communique: What has been the most important missed opportunity or missed focus of the Portland Business Alliance?

McDonough: I'm new to this position, and it's not fair that I should second guess any earlier decisions with the benefit of 20/20 hindsight. So I don't want to talk about missed opportunities.

On a going forward basis, we will emphasize collaborative relationships and partnerships, with government and particularly with other business and civic organizations. It's clear that building relationships with other groups is something the Alliance could do more of. We are the largest business association in the region, and sometimes it makes sense for us to take the lead on an issue. But sometimes, other organizations could appropriately be in the leadership role. In the future, partnership will be the norm for the Alliance because it is the most efficient and effective way of getting a message heard.

Communique: What should be the most important near-term focus of City Hall?

McDonough: The Business Alliance staff and our member companies have an excellent relationship with City Hall, as well as with governments throughout the region and at the state level. We want to build on those relationships, and bring business to the table as a partner in the "Portland Process."

It's our tradition in this City to bring issues to the table, to comment on them, shoot at them, and rework them until we achieve a product that comes as close as possible to benefiting everyone. The Business Alliance believes in that process, and we want to be at the table with the leaders in City Hall to work with them toward our common goal: Keeping Portland a great place to live and work.

Communique: What has been the most important missed opportunity of missed focus of City Hall?

McDonough: The past few years have been a challenging time, for business and for government. The poor economy has had a real impact on all of us. I think we need to apply what we've learned over these last difficult years to set priorities and manage costs for the future. One of the biggest questions we have in front of us is how do we keep Portland affordable as a place to have a business or to live.

We need to put our attention on reviewing the City's budget from the ground up, and determining whether vital services are being delivered in the most efficient way possible. Many businesses have used such a "zero-based budgeting" approach for years, and it provides them with an annual opportunity to rethink priorities and find efficiencies. We recognize that the demands on government are different from the demands in a business. But in many respects, the City budget process shouldn't be all that different from a corporate budget process: You need to look at priorities, new initiatives and spending propositions that have a positive return.

A broad, ground-up budget review that involves a broad cross section of the public could help us ensure that vital services are maintained, that they are delivered efficiently and that Portland stays affordable over the long-term.

Communique: Given your answers to the preceding questions, what do you feel you bring to the Portland Business Alliance which help help address these issues?

McDonough: I'm a firm believer in building collaboration and consensus, which is how Portland traditionally has addressed issues. I have experience as a business manager, including working through some pretty tough business times in corporations, and I have also worked around government for more than 20 years. So I understand budget issues and some of the pressures facing elected officials.

Finally, I'm committed to this region. I grew up here and now I'm raising a son here. I want the Portland-area to be a place where he has great opportunities as a child, and where he will want to live and work when he reaches adulthood.

Communique: Name one way in which critics of the Portland Business Alliance are wrong, and one way in which they are right.

McDonough: I have been on the board of the Business Alliance since its inception and also served on the board of its two predecessor organizations. I think sometimes people view us as a monolithic body concerned with little more than our bottom lines. That's not true. First of all, we are made up of many different kinds of businesses, from the state's largest corporations to the small mom-and-pop businesses that are the lifeblood of our economy.

The businesses of this region care deeply about the Portland-metropolitan region and they want to keep it as a place where people want to live and work. That means maintaining good schools and vital government services, as well as creating an atmosphere in which businesses can grow and create jobs.

Communique: You were one of eight members of the Mt. Tabor Independent Review Panel who voted against reservoir burial. Why? Also, what lessons do think the panel's experience offers about decision-making and public involvement in Portland?

McDonough: The IRP process was very educational for me and all of the panel members. Our first and foremost concern, across the board, was maintaining a safe and reliable water supply for the city. But we also were concerned about cost. We saw that the Portland Water Bureau has many issues to deal with, not just at Mt. Tabor, but across the system. This includes an aging delivery system that needs to be maintained, as well as potential new regulations that could impact not just Mt. Tabor but many other aspects of the system.

Portlanders have already experienced steep increases in their combined water/sewer bill, as a result of the combined sewer overflow project. The projected capital improvement projects for the water system, including a Mt. Tabor burial, would push those costs even higher. I am concerned about whether the City's residents and businesses can sustain continued, steep increases in the water/sewer bills.

Where I came down on the Mt. Tabor issue is that there was no compelling reason to bury the reservoirs at this time - there is no existing public health hazard or regulatory change that would drive us to that conclusion. And there are reasons to avoid the costs at this time.

I also believe the City should look holistically at all of the capital improvements need on the water system, including changes that may be made necessary by new regulations if they occur, and bring together a group experts that will help public officials set priorities and plan for the necessary system-wide changes in the most cost-efficient way possible, including doing as much work as possible within the existing rate structure.

The IRP process was an excellent application of public involvement in an important city issue. Commissioner Saltzman and the rest of the Council should be commended for bringing together a panel of truly independent thinkers to review data and make a recommendation.

Communique: What can be done to increase both the amount and the quality of dialogue between the Portland Business Alliance and the larger Portland community?

McDonough: We are very involved on many issues affecting downtown Portland and the broader metropolitan region, including transportation, workforce housing, education, investment recruitment and many others. Our work on the Clean and Safe District downtown has us out meeting with people every day. In the future, we will look for new opportunities to build relationships through partnerships with other business and civic organizations.

Communique: What are your perspectives on the following development projects, proposals, and decisions:

The Burnside Bridgehead Redevelopment Concept, otherwise known as the possible Home Depot development in the Central Eastside.

McDonough: The Alliance's Central City Committee is looking at this development and has not yet taken a formal position.

Communique: The recent decision of Powell's Books not to renew the lease for their Travel Store located in Pioneer Courthouse Square.

McDonough: I don't have personal information about why Powell's made that decision, so I can't comment.

Communique: The current alignment and design for the Transit Mall Revitalization Project.

McDonough: This is a great example of public/private collaboration. We are working toward a solution that will keep the transit mall vital, addressing the concerns of both the businesses located there and the broader public who use the transit mall.

Communique: The intended relocation of Fire Station #1 and the related Portland Public Market proposal.

McDonough: The Alliance's Central City Committee has publicly supported the building of new housing on the waterfront and a reactivated Ankeny Plaza. The public market is one of several options being considered. We don't have a position on the market specifically at this time.

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Comments (1)

  1. Amanda on 29 May 2004

    Dear Sandra: I feel you will be a refreshing new leader for the PBA. Congratulations to you. They really are a great bunch of people and I feel they get a bad rap at times.