Item B: Funding Strategies for Transportation System Operations, Maintenance, and Preservation

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percent of the construction cost and were, therefore, adjusted downward to reflect an overall average of those costs across project sizes and types and to compensate for the effects of inflation from 1995-2001. After adjustment, the result was a slight increase in the unit cost over that period. Mr. Bonnett asked the following question: If $8.5 million was provided for a program to include the application of slurry sealing and overlaying, and an allocation was included for striping, engineering, and administration expenses, what percentage savings to the current budget of the Department would be realized? Mr. Furber responded that the stop-gap work would move off to other parts of the system, and he doubted a significant portion of it would be replaced by the repair work. He said he could not provide an exact figure to Mr. Bonnetts question. Mr. Corey said that the report to be presented in the next agenda = item would provide information on what was being spent on various activities that were funded by Road Fund revenues. He said he would not want there to be an expectation that the current expenditures would decrease by a certain percentage; however, he added that the goal for this type of pavement management program was to cap the liability and avoid inflationary increases, and over time the overall maintenance expenditures would decrease. Mr. Corey concluded that absent such a program, the costs would increase over time. Mr. Bonnett questioned how much of the operations and maintenance needs could be discounted if this program was instituted. III.PRESENTATION OF CONSULTANT REPORT ON ROAD FUND OPERATION AND MAINTENANCE ACTIVITIES Mr. Corey explained there had been a request made by the Budget Committee that an analysis be prepared MINUTES- Citizen Subcommittee of the Budget Committee September 19, 2001Page 5