July 23, 2014 at 2:10 p.m.

Consultant contract OK'd

Rate will be same as '09

By Rachelle [email protected]

A local board approved a contract this morning after hearing that a proposed hourly rate increase has been postponed.

Members of the Portland Board of Works met today and discussed a contract for Greg Guerrettaz of Financial Solutions Group to project the city's finances for the next four years.

Portland Mayor Bruce Hosier, who had received an e-mail from Guerrettaz explaining his reasoning, discussed the issue with fellow board members Bill Gibson and Bob McCreery this morning.

Guerrettaz explained in the e-mail that the proposed hike in hourly rates is due to an increase in business costs.

But Guerrettaz has agreed to accept an hourly rate that matches that of a contract approved earlier this month.

During a Feb. 4 meeting, McCreery had questioned the difference in hourly rates for the overall financial study ($185 per hour for Guerrettaz) and a study of the city's tax increment financing (TIF) district's financial study ($160 per hour). The TIF contract was approved Feb. 4.

Proposed hourly rates for FSG employees were also higher for the overall financial study.

Today, Hosier announced that Guerrettaz decided to charge the city the same hourly rates for both contracts, but he will charge the higher hourly rates for any future work.

Portland Clerk-Treasurer Randy Geesaman said this morning that those two contracts were prepared at different times, and that Guerrettaz did not realize the proposed hourly rates for the two contracts were different.

The mayor said Guerrettaz decided to charge the same rate for the financial projection, "Because he did not want any misunderstanding or confusion."

He said the financial projection study is more labor intensive and extensive than the TIF study, but was not a factor in the proposed increase. The study will project how changes in state funding will affect the city.

The TIF contract has a not to exceed amount of $2,500, and the other contract, which was approved today, has a cap of $10,000.

Hosier said he believes Guerrettaz is still working on the TIF study and is expected to begin work on the financial projection soon. The findings of the TIF study will be presented to the Portland Redevelopment Commission.

In other business this morning, board members approved a leak adjustment request for a property at 906 S. Bridge St.

The water leak was located between the house and the meter, which follows the city's leak adjustment policy.

Jessie Walter, who owns the property, told the board this morning that he repaired the leak.

The sewer portion of his water/sewer bill will be adjusted to a three-month average prior to the leak.[[In-content Ad]]
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