Sixty-day delay on jail bonds

Published 5:00 am Tuesday, May 7, 2013

The Deschutes County Jail expansion project will be delayed about 35 days while the county waits a mandatory 60 days to sell the $8.7 million in bonds to investors.

“We will go back, start over and be on a more compressed schedule,” said County Administrator Tom Anderson. “But we gave ourselves some cushion in the first plan, so we won’t be behind the entire 60 days.”

The Deschutes County Commission approved a resolution Monday authorizing the sale of up to $8.7 million in bonds to partially fund the $11 million, 144-bed expansion project. It will sell the bonds under Oregon Statute 287A.150, which requires the waiting period as an opportunity for voters to file a petition asking the commission to refer the issue to a public vote.

The commission originally planned to authorize the bond sale under a different Oregon law that did not require the waiting period, known as a voter referral.

Under the original resolution, the bonds were scheduled to go on sale at the beginning of June. As a result of the change, the bonds will go on sale July 10, Anderson said.

“We received public input suggesting an alternate way to go about this issue,” Anderson said. “It’s my understanding that the person who suggested it is pleased and does not intend to pursue a petition.”

The citizen who requested the change in statute use, Mike Morgan of Sisters, threatened litigation if the county did not comply with his request.

“His issue was more about the process and less about disputing the county’s need for the jail expansion,” said Commissioner Tony DeBone.

Morgan contacted Sheriff Blanton and the commissioners to voice his concern. He said he supports the jail expansion and will not be petitioning.

“The issue was about complying with Oregon statutes in regards to voter rights,” Morgan said. “The referral process is part of voters rights. I am pleased they made the right decision.”

Blanton said he hopes to be moving into the expanded facility by June 2014.

“By this time next year, I hope to be planning our open house,” he said.

Anderson said the delay shouldn’t affect the interest rate on the bonds, and he expects the money will be borrowed at about a 3.4 percent interest rate and be paid back over 25 years.

Property and Facilities Director Susan Ross said the project is underway and calls the construction schedule “very aggressive.”

“The final construction documents will be completed in June, and we’re hoping the permitting will be finished by mid-June,” she said. “We’ll most likely start on site work as soon as we get the permits from the city of Bend.”

The $11 million expansion will be funded by a combination of the bonded money and $2.6 million the county has set aside. A $44 million bond that would have expanded the jail to more than 900 beds failed to get voter approval in 2010, leading commissioners to reconsider and settle on the $11 million project.

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