Board nixes High Street work

A plan for installing sidewalks on High Street has been canceled.

Portland Board of Works voted Friday to stop an Indiana Department of Transportation project that would have paid for sidewalks on both sides of High Street from Middle Street to Meridian Street.

It also heard an update on the financial health of the water and wastewater departments.

The city was awarded the grant in 2016, but board members were initially wary of accepting it because of the cost of engineering. Once INDOT agreed to cover the cost 80/20, the board of works agreed to the proposal and signed contracts for it last fall.

In March, an item on a board of works meeting agenda seemed to indicate that the project would be canceled. At that meeting, Portland Mayor Randy Geesaman said more discussion needed to be had on the issue before a decision was reached.

Board member Bill Gibson started off the conversation at Friday’s meeting in favor of dropping the grant.

“I think we ought to scrap it,” Gibson. “I realize we need sidewalks but we could do them a heck of a lot cheaper with our own employees than we can going this route.”

Gibson and fellow board member Jerry Leonhard were concerned about the cost of going with INDOT, as the city had previously installed sidewalks on its own for cheaper than INDOT’s estimate.

Jay County director of community development Ami Huffman strongly advised against canceling the grant. The estimate is not set in stone and the project has not been bid out yet, so the actual cost for Portland could be much lower than estimated, she said.

“If that price has come down since ’15 and ’16, and it has, concrete was higher in ’15 and ’16, you still only pay 20 percent of what that cost is,” Huffman said. “It’s also turning back grant money that was awarded to you that we’ve agreed to move on.”

Additionally, the city has already spent $15,000 on engineering work for the project, clerk-treasurer Lori Ferguson said.

“We already have to spend $15,000, we know that,” Leonhard said. “But do we want to go ahead and spend from $15,000 up to …?”

“Up to an unknown amount?” Gibson said.

A letter to INDOT signed by Geesaman and Ferguson requesting the project be stopped indicated that as Judge Haynes Elementary School (located on High Street) is closing at the end of the year, the sidewalk is no longer a top priority for Portland. Rough patches in the current sidewalks could be replaced by city workers, the letter said.

It also noted that Portland’s budget is restricted because of mandatory improvements to the wastewater treatment plant and obtaining the bonds necessary for those updates.

Also Friday, the board received financial reports for the water and wastewater departments. Ross Hagen of H.J. Umbaugh and associates presented reports from the end of 2017 and projections for the next few years.

The total cash balance for the water department was $3,482,842 at the end of of 2017, Hagen said. Its operating costs had gone down, but that balance decreased from $4.2 million at the end of 2016 because of the water main work on Main Street last summer.

The department also had $2.8 million more in its reserved than Umbaugh recommends, Hagen said, putting it in a “very strong cash position.” He projected that the department would add $80,000 to its cash balances over the next five years.

“The last time we had a rate increase was 2004,” Geesaman said. “Based on the cash balance that we have we’re in a very strong position that we don’t have to look at that for the next few years.”

Portland’s water rate is significantly lower than comparable towns’ rates, Hagen said. For using 5,000 gallons a month, the average cost would be $41.27 in cities of 6,000 to 10,000 people. Portland residents would pay $24.50.

The wastewater department was also in good shape, thanks in part to sewage rate increases that went into effect last year. That department also has reserves in excess of its recommended amount, putting its total cash balance at $2.2 million — a decrease of about $135,000 from 2016. However, Hagen projected the department would add about $80,000 to its cash balances in 2018 thanks to the rate increases.

In other business, board members:

•Approved the hiring of Zachary Bailey, who will work at the water plant.

•Opened grants for trash service for the city. Best Way Disposal would cost $128,160 for recycling and $296,928 for trash for the first two years, and $131,904 for recycling and $305,856 for trash the third year.

Rumpke Waste and Recycling offered services for curbside trash and recycling pick-up combined for $604,800 the first year, $614,592 the second year and $629,568 the third year, and automated pickup for $547,200 the first year, $555,840 the second year and $569,088 the third year.

The board will discuss and vote on the bids at its next meeting.

•Approved a reimbursement agreement for Kyle Denney, who was recently hired as a police officer. This agreement is standard for all new hires, requiring repayment of $11,977.59 (the cost of sending him to the police academy) if Denney leaves the department within three years of his hire.

•Approved an interlocal agreement to use the Jay County Landfill as a shooting range. The police department formerly used the wastewater treatment plant property, but hasn’t been able to use it because of construction. Jay County offered to let the department use the landfill and share it with Jay County Sheriff’s Office.

•Selected a bid for a camera for the wastewater treatment plant. Superintendent Brad Clayton told the board that the plant used to rent cameras, but purchasing one would be more cost effective. The board received two bids, one for $10,675 from Best Way and one from Southwestern for $8,900. The board chose the higher bid from Best Way at Clayton’s recommendation, as it involved a higher-quality camera and would result in lower repair costs.

•Pushed back discussion on paving Main Street between Meridian and Charles streets. Geesaman said because the project is anticipated to cost more than $150,000, it requires receiving sealed bids. The board should be able to discuss the paving at its next meeting, he said.

•Approved the contract for Portland’s planning grant. Work on the plan will begin in June and is slated to be finished by the end of the year.”