Consultant deal delayed

A local board wants answers about a substantial cost increase between two contracts before voting on the matter.

The Portland Board of Works met Thursday morning and reviewed two contracts with Greg Guerrettaz of Financial Solutions Group.

One of the contracts, with a cap of $2,500 for analyzing the city's tax increment financing (TIF) district's financial standing in 2009, was approved.

The second contract is for a study of all of the city's finances.

The sustainability analysis will project the city's finances for the next four years, and project how changes in state funding will affect the city.

Guerrettaz asked to be paid up to $10,000 for the study.

Board members Bob McCreery and Bill Gibson asked to wait to make a decision about this contract until they can speak with Guerrettaz, because of the difference in the hourly pay in the two contracts.

In the study of all of the city's department budgets, he asked to be paid $185 per hour, compared to $160 per hour in the TIF study.

There also was a difference in the pay for staffing. The rate was $110 per hour for the overall study of the city's finances, compared to $45 for the TIF study.

"There's a tremendous difference between the first contract and the second," McCreery said. "I personally think we need an explanation."

"We're looking at the value of the expertise," said Portland Mayor Bruce Hosier, who said he didn't have a problem with approving the contract.

"I'm not arguing with his expertise," McCreery said. "How many people are getting raises of double the rate?"

Gibson suggested that they discuss the matter with Guerrettaz, and McCreery agreed. The contract will be reviewed at a future board meeting.

In other business, board members voted to approve a contract with The Schneider Corporation to design the sewer work for Katelynn Place apartments.

The company will be paid up to $30,000 to run city sewer service to the apartment complex, which is being built just west of Portland Place Apartments.

Paul Vincent of The Schneider Corporation told board members the sewer work needs to be completed by June.

"We want to turn dirt April 1 and bid in March," he said, adding that he needs to get the plans for the project to the Indiana Department of Environment Management in two weeks. The apartment complex is scheduled to open this summer.

City clerk-treasurer Randy Geesaman and Schneider officials said Thursday morning that they were unsure if Keller Development, which is developing the apartment complex, has been or will be asked to help pay some of the costs for the sewer work. Hosier was unavailable for comment.

Also Thursday, board members:

•Voted to enter into an agreement with new Portland Police Officer Nathan Johnsman.

The agreement states that the city will pay $9,873 for him to attend the Indiana Law Enforcement Academy. The agreement also states that he must remain with the police department for least three years. If he leaves the department between 1 and 365 days of graduating from the academy, he must pay back the full cost. If he leaves between one and two years, he must pay back two-thirds of the cost, and he must refund one-third of the cost if he leaves in the third year of employment.

•Voted to bill the owner of a property at 901 E. Votaw St. for the cost of razing a house there.

The house recently was torn down by A. Landon Excavating at a cost of $5,800. The structure had been condemned by the health department and the owner, Eric Haley, had been ordered several times the building and planning department to demolish it.

•Approve a leak adjustment for Danny McDavid, 1209 Hagins Ave.

He had a water leak between the house and the water meter. The sewage portion of his bill will be adjusted down to a three-month average prior to the leak.

•Voted to write off several water and sewage bills as bad debt.

A total of $315.08 in bills have gone unpaid for several months.[[In-content Ad]]