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

New vote needed on park bond

Portland City Council

By Rachelle [email protected]

Members of a local board voted on a resolution to bond for a park project Monday night, but will have to vote again.

The Portland City Council voted 3-2 to bond for phase IV of Hudson Family Park, but because there are seven members of the council, four votes are required to pass this or any council business.

No one questioned the vote Monday, but Portland Mayor Bruce Hosier said this morning he realized after the meeting the three votes were not enough.

Hosier said the council will vote again on the resolution at its next meeting June 21.

Just five of the seven council members were present Monday, and two of those members - Don Gillespie and Kent McClung - voted no on a resolution to issue bonds totaling $1.975 million for the fourth phase of Hudson Family Park.

Council members Judy Aker and Kip Robinette did not attend Monday's meeting, leaving the resolution one vote short of the four needed to pass.

McClung said he voted against the resolution because he felt moving the Portland Pool to the park should be the priority.

Gillespie said he voted no because, "I just didn't feel comfortable with it."

He added after the meeting that he had questions about the bonding, but did not ask any questions during the meeting.

The resolution is for a total bond amount of up to $1,975,000. Sue Beesley of Bingham McHale said the resolution is higher than the projected cost of the project in case the city decides to use bonds to help pay for a new pool.

The city will bond for the amount of the park project, along with fees for Beesley and Greg Guerrettaz of Financial Solutions Group, for assistance in the bonding process, engineering firm The Schneider Corporation, city attorney Bill Hinkle, debt service reserve and capitalized interest.

Beesley said Monday she did not know how much these items would total because the capitalized interest will be based on the interest rates of the bonds.

She estimated this morning that the total of these fees and the park project will be much less than the $1,975,000.

Although the city could have bonded up to $2.2 million, the lower figure would not require the city to raise taxes, Beesley and other city officials have said.

Bids for the park project were opened last week.

The apparent low bid came in at $1,100,000, plus alternates of $99,000 to add a roof to the stage of the amphitheater and $27,000 to add towers to each side of the stage to hold lighting and sound equipment. The Portland Park Board is expected to review the bids today at 7 p.m.

The difference between the total cost of the park project - including the fees - and the $1,975,000, could be used for a new pool. The city cannot issue bonds for more than the park project costs and fees associated with it, Beesley said this morning. If city officials decide to use bonds to pay for part of the pool in the future, bonds will have to be sold again.

In a related matter, Portland Mayor Bruce Hosier said that he, city clerk-treasurer Randy Geesaman, Beesley and Guerrettaz recently presented information about the city's financial state to an analyst to determine the city's bond rating. A bond rating, which is similar to a credit score, will estimate what interest rates the city will have to pay those who purchase the bond.

Hosier said the city has not yet received its rating.

Also Monday, council members voted to add the airport manager to the city's payroll.

Previously, one person had one contract to serve as both the airport manager and the fixed base operator (FBO) of the airport. Since the contracts were separated city attorney Bill Hinkle recommended that the airport manager be added to the city's payroll. The FBO is an unpaid position.

Dave Miller, former airport manager and current FBO was considered in independent contractor. He was paid once a month and did not receive any city benefits.

Hal Tavzel, the new airport manager, will work 30 hours per week and is considered a part-time city employee, so he will not receive benefits such as sick and vacation time, eligibility for health insurance and contributions to the Public Employee Retirement Fund. He will be paid every other week, like other city employees.[[In-content Ad]]
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