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Property-tax bills will be coming out in the next five or six weeks. Property owners will see for the first time the impact of one of the largest property-tax bond measures ever in Oregon – the Portland Public Schools construction bond. Expect the numbers to be large enough for landlords to need to pass on costs to renters. Portland Public Schools should expect extra scrutiny on the bond measure, its team and how the program is being executed.

Concerns are already being raised about changes to the contingencies and reserves that the bond has budgeted. Recent reports indicate that the reserves have been cut by 50 percent, but no serious construction has started. While the reasons given for the reduction in reserves seem admirable, the decision does not reflect the tight discipline that is essential to successfully carry out one of Oregon’s largest bond measures.

It makes little sense to cut reserves before any real work has been undertaken. Reserves are necessary to handle the anticipated unknown and unforeseen conditions that will inevitably be encountered. In addition, the school district is proposing to reduce the cost of the buildings – a change that will result in lower quality being delivered to the schoolchildren of Portland. The plan for top-quality schools was a major deal point between the voters and PPS.

The voters approved this record-setting bond measure, and the school district needs to get it right the first time. Not getting it right runs the risk of a voter revolt as promises are not kept.

Contingency management and public expectation management will be critical to success of this effort. Undoubtedly, conditions will evolve as the bond measure is being executed. As these things become known the basic scope of the measure may need to be revised. But reducing contingencies and reserves and lowering the quality of the product at this point is not the best solution.

It is expected that there will be ongoing significant controversies as the bond measure is carried out. Programs like this are never without ongoing discussions and difficulties to be resolved.

Staffs often turn over, and complete teams that start programs of this magnitude seldom finish them. However, making a fundamental change in the basic financial makeup of the bond measure this early in the process places the whole program at an unnecessary risk.

The school district’s team has not had the opportunity to carry out a program of this size and complexity. It should proceed cautiously and carefully to ensure that the public remains solidly behind the decisions that they’re making.

Christian Steinbrecher is president of Ukiah Engineering Inc., a senior consultant at Capital Project Consultants and president of the American Society of Civil Engineers’ Oregon section. Contact him at [email protected].