A Portland City Council discussion that could've ended a collaborative agreement, without a backup plan in place, has been scrapped a day after the election. The move would've cost the city more than $40M. by Courtney Vaughn Update: Nov. 6- This story has been updated to note that this week's Council discussion has been canceled. A day after an election showing Portland City Commissioners Mingus Mapps and Rene Gonzalez losing their bids for mayor, a plan to revisit an intergovernmental agreement on homelessness between the city and Multnomah County has been canceled.  An agenda item scheduled for Thursday, Nov. 7 to consider terminating the homeless services agreement was pulled from the agenda Wednesday afternoon, just 26 hours before it was slated to be considered by Council. The proposal, which came from Commissioners Mapps, Gonzalez, and Dan Ryan, was a divisive move that could've upended the city's collaboration with the county on the most pressing issue impacting the region. In a joint statement Wednesday, Gonzalez, Ryan and Mapps said pulling the plug on their plans "will allow space for the new City Council, Mayor, and County Commissioners to renegotiate the Homelessness Response Services Intergovernmental Agreement if they choose." "The Commissioners remain steadfast in their conviction that the City of Portland, Multnomah County, and Metro can build a better system to address homeless services and pave a better path forward," the statement reads. Three weeks ago, while presiding over a Council meeting in Mayor Ted Wheeler’s absence, Commissioner Gonzalez directed the city attorney to draft up a contract termination ordinance that would dissolve the intergovernmental agreement (IGA) dictating homelessness response and collaboration. He got a nod of support from Mapps and Ryan.  The trio then introduced a proposal to formally end the contract between the governing agencies, citing “insufficient progress” to meet key milestones and deadlines. A contract termination proposal on Thursday’s agenda suggests the current arrangement lacks the right framework and governance structures to tackle the homelessness crisis “with the urgency, collaboration, and effectiveness required.” Gonzalez, Ryan, and Mapps pitched the proposal as an orderly wind-down to make way for an improved agreement. But one day after an election showing Gonzalez and Mapps losing their bids for mayor, the proposal was abandoned. The proposal drew swift backlash from the mayor and Multnomah County Chair Jessica Vega Pederson. Following Portland’s Oct. 16 Council meeting, Vega Pederson issued a statement admonishing Gonzalez, Ryan, and Mapps.  The majority of City Council says they don't want to work with the County to end homelessness. Its clear these officials - candidates desperately vying for your vote this month - have their eyes on their own future and not our collective one. Disappointing. pic.twitter.com/sZwkoQBiF2 — Jessica Vega Pederson (@jvegapederson) October 17, 2024 Last Friday, when the item officially appeared on a Council agenda, she spoke out again. “The City Council deciding to end this agreement after just a few months is a short-sighted decision that will harm our community’s future,” Vega Pederson wrote November 1 in a lengthy explanatory statement released by the county. “We don’t need more talking–this community cannot afford it. That will not lead to better outcomes or fewer people on the street, and I do not believe it is a good use of taxpayer resources when we have a collaborative plan we are already putting into action. No single government can [solve] this issue alone. The County is taking action on homelessness every day and that work is best when we work in partnership.” Vega Pederson previously called the move a “political stunt” by Gonzalez, Ryan, and Mapps just before the election. If the Council voted to end the contract, it wouldn't take effect for 90 days, when a new City Council is in place.  Margaux Weeke, communications director for Commissioner Ryan, says the commissioner isn't opposed to working with the county under a modified arrangement, but it needs to be substantially different. “Dan Ryan knows the players. He knows the game," Weeke says. "And he wants to expand the amount of seats at the table and pave a better path forward for homeless services." The current IGA, which was just renewed in July, essentially lays out a division of labor, funding, and responsibilities between the city and the county with regard to homeless services and shelters. It also identifies goals and milestones for reducing the number of unsheltered people in the county.  Vega Pederson said the county now spends all of its homeless services funds, and more, while providing clear data and public dashboards. She also noted the homelessness response plan lays out 120 action items, each assigned to a responsible party. The county has issued data on spending and progress summaries. If city estimates are accurate, ending the agreement would place a significant financial burden on the city as it heads into a tight fiscal year. Portland and Multnomah County currently share financial responsibility for the region’s homelessness response.  The city would no longer have to send $32 million in general fund money to Multnomah County, but it would take on more than $40 million in costs to permanently manage the Safe Rest Villages and Temporary Alternative Shelter Sites.  The roughly $40 million expense doesn’t include costs for wraparound services that the county currently provides at the shelter sites. The city doesn’t know how much it would cost to provide those services, and there is no alternative plan in place for maintaining services and shelter beds if the contract goes away. Welcome Home Coalition, a nonprofit focused on affordable housing and universal access to housing, warned the termination proposal was dangerous. “They are presenting this action without a clearly articulated new plan of how the city will serve people experiencing homelessness,” an email sent from the coalition reads. “Backing out of the Intergovernmental Agreement without an understanding of how this would impact service provision will have rippling consequences that will no doubt result in more harm to those in the most need of services.” In a joint letter released last week, the three commissioners explained their decision to introduce the agenda item, saying the city needs to see a different way of managing services. “As Portland City Commissioners with years of experience with the Joint Office of Homeless Services, we are resolute that we can no longer afford to maintain the status quo,” the joint letter states. “We are also united in our repeated calls for accountability, efficiency, and improved governance to enhance our homeless services. …And despite our repeated requests for clear and useful data, operational alignment for short-term shelters, and a shared vision for the homeless services system, we have faced significant challenges in implementing these necessary changes.” Ending the IGA would further deteriorate an already strained relationship between the city and county. Mayor Wheeler previously said the working relationship between both governments had improved over the past year, but recent IGA renewals have been met with reluctance from Mapps, Ryan, and Gonzalez.