Item C: General Obligation Bonds for Street Maintenance

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EXECUTIVE SUMMARY The annual Pavement Management Report is produced to provide updated information and data regarding the City of Eugene’s street transportation system. This report provides surface descriptions and associated mileage, current treatment programs and costs, and projects future treatment needs based on several funding scenarios. The street transportation system is conservatively estimated to represent a $500 million public asset. This asset is typically described in both lane miles and centerline miles. Currently, Public Works manages Eugene’s 1,343 lane miles, representing 538 centerline miles, within the city limits. A breakdown of the street transportation system is provided in terms of pavement type, level of improvement, and functional classification. Comparative statistical data includes both lane and centerline miles. Street data is collected manually by trained staff involving detailed inspections. Condition inspections are performed annually on arterials and collectors, and on a three-year rotating schedule for residential streets. An Overall Condition Index (OCI) score generated through the inspections provides the data utilized in analysis. CenterLine, a computerized pavement management system (PMS) is the analysis tool utilized by the Public Works Department. Analysis helps in establishing efficient treatment needs and identifies financial implication of various response strategies. Additional benefits of the PMS include a street inventory and condition trends, which are possible due to the compilation of 20 years of street condition information. For some time, funding levels have not kept pace with rehabilitation needs, as evidenced by a growing backlog. To help address this trend, the City established a local gas tax in 2003, dedicated for a Pavement Preservation Program (PPP). This program has supported the rehabilitation of approximately 107 lane miles of streets. For this report, an assumption has been made that the 2 cent gas tax initially scheduled to sunset February 2008, will continue to provide a funding stream. Even with this assumption, the funding for preservation dips to $4.2 million annually. At the current level, preservation funding is not addressing a growing backlog. A $173 million backlog existed at the end of 2007, and by 2017, a backlog of $339 million is anticipated. A portion of the backlog increase is due to unprecedented rising costs in the petroleum industry. Current analysis in the Pavement Management Report includes updated costs prepared by Engineering in 2006 utilizing cost data from prior PPP projects and the Oregon Department of Transportation. A 2% inflation factor is added to the modified 2006 costs. The local gas tax has supported implementation of the preservation program, but as supported by analysis, is insufficient for stabilizing or reducing the growing backlog. Optimizing funding options over a 10-year cycle for stabilizing or reducing the current backlog will require financial investments of $18 million annually. With this investment, projections show that by 2025, the reconstruct backlog will be eliminated. Addressing the rehabilitation needs and reconstruction backlog within the same 10-year period requires an annual funding commitment of approximately $27 million. 1