46-25-Minutes for Meeting March 24,1983 Recorded 3/30/1983A
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DESCHUTES COUNTY BOARD OF COMMISSIONERS
MARCH 24
1983 CONTINUATION OF 3/23/83 BOARD M TI U 9 D
:
MAR 0
Chairman Young
called the meeting to order at 1:30 P.M. olXimissioner
Tuttle and Commissioner Prante were also priff~
OE PENHOLLOW, CQ CLERK
Discussion re
Mike Maier, Director of Administrative Services, gave
garding Post
an overall history of the county°s purchase of the old
Office
Post Office building downtown. He explained that they
anticipated spending $350,000 on remodeling the build-
ing and intended to borrow this from the Road Fund.
Since that time, there has been litigation in regard to
such loans, and the ruling was against interfund bor-
rowing. Based on that, the county will not proceed as
previously planned. He suggested to the Board that a
financial consultant be retained to determine alternate
financing methods.
Rick Isham, County Counsel, mentioned various consult-
ants with whom he was familiar. Kevin Peterson of Ham-
merbeck and Company had approached them in regard to
this matter and had suggested Certificates of Part-
icipation as a means of financing the building itself.
This would refund the purchase price of the building,
giving the county the necessary funds to remodel. The
investors will require that the obligation be paid two
years in advance to reduce their risk. Mr. Maier'
stated that this could be done by means of an unappro-
priated cash carry over in the budget, which would be
spent in the next year for the building payment.
There was some further discussion in regard to the
remodeling budget. Commissioner Tuttle stated that he
would not be in favor of financing $600,000 because it
would take about 19 years at $50,000 per year to repay.
He stated that!one option would be to sell the building
if.remodeling proved to be too expensive. The Board
had recently met in regard to the remodeling budget and
worked the cost down to about $306,000 by not doing any
work on the bottom floor. It wasmentioned that if
this program were adhered to, the cost of financing
would be roughly equal to the current rental expenses
now being paid to house those departments. It was
noted that the rent may be raised in the near future.
There was also a question raised of whether or not the
State would reimburse rental expenses for a building
owned by the county. It was suggested that Road Funds
be borrowed for a period of two years. Another option
would be to hire an additional maintenance person, who
would do only work on the Post Office remodeling, and
get it done piece by piece, however the majority of the
expense involved is in mechanical, boiler and elevator
costs. It was suggested that they borrow Road Fund
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money for two years, and at the end of the two years
sell a bond to satisfy that loan. Another suggestion
was a land trade, since Trailways has expressed an
interest obtaining in the old road shops, but this
would still involve Road Funds. Commissioner Tuttle
recommended limiting financing to payments of $55,000
for seven years. The information in regard to Certi-
ficates of Participation is that the interest rate
would be 7-3/4%.
It was the concensus of the Board to hire a financial
consultant to advise them of potential financing
programs. There was some discussion of the consultants
available and their rates.
MOTION; PRANTE moved that they request that Rick Isham
contact Kevin Peterson to set up consulting
arrangements to be set at a maximum amount of
$35 per hour and proceed to get the informa-
tion they need.
YOUNG: Second.
VOTE: UNANIMOUS APPROVAL.
Being no further business, the meeting was adjourned.
DESCHUTES COUNTY BOARD OF COMMISSIONERS
AL AZRA. G, A I
LO S RISTOW PRANTE, COMMISSIONER
LAURE CE A. TUTT E, COMMISSIONER
/ss
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