Item B: Citizen Street Repair Review Panel Report

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Street Repair Review Panel In October 2009, a citizen group was formed to evaluate the City’s use of the bond proceeds and report whether the bond funds were used in compliance with the council resolution. The 12 community members selected to serve on the Street Repair Review Panel were Paul Adkins, John Barofsky, Howard Bonnett, Dan Brown, Janet Calvert, Paul Holbo, Bob Kline, Steve Lee, Clayton Walker, Gary Wildish, Bruce Mulligan and Jim Wilcox. The group met three times over a three-month period and also conducted a physical inspection of the bond measure projects completed in 2009, and those scheduled for 2010. On January 26, 2010, the Street Repair Review Panel unanimously approved its first-year annual report (Attachment A), which included the following conclusion: “Based on the information we received and our subsequent study and discussions, we unanimously conclude that the bond proceeds were used for the authorized purposes and in compliance with the limitations and restrictions outlined in Council Resolution 4953, calling the election for the purpose of referring the bond measure to the voters.” (SRRP 2009 Report, Page 1) The panel also found that the City was able to complete its 2009 bond measure projects with significant cost savings due to favorable bids from contractors and, as a result, encouraged the City and the Public Works Department to accelerate the street repair schedule as much as is reasonable to take advantage of anticipated continued favorable bidding conditions in the future. Additionally, the panel agreed that giving the public accurate information as to why some streets get repaired while roads in worse shape do not get repaired is an ongoing educational issue with city residents. A web site tracking the bond measure implementation has been established and may be accessed at www.eugene-or.gov/gobonds. The panel’s 2009 report has been placed on the internet, and links to the online report have been sent to the Neighborhood Leaders Council. The Street Repair Review Panel is scheduled to reconvene in fall 2010, upon completion of the 2010 construction season. Independent Accountant’s Report The accounting firm of Isler CPA, who also performed the annual audit of the City’s FY09 financial statements, was contracted to perform sufficient agreed-upon procedures in order to determine whether the expenditure of G.O. bonds were made in accordance with the purposes and limitations outlined in the street repair bond resolution – namely, that expenditures were: 1.Used only for costs related to street preservation projects, off-street bicycle and pedestrian path preservation projects and payment of bond issuance costs, and not to expand the capacity of the street system; and also, 2.Limited to projects included in Exhibit A to the resolution, unless upon completion of all of the projects listed in Exhibit A, the council adds other street preservation projects to the list in order to utilize unspent bond proceeds. The accountant’s procedures were performed for the period from the date of initial bond issuance through November 30, 2009, and were conducted in accordance with standards established by the American Institute of Certified Public Accountants. It was the summary conclusion of the independent accountant that, “Based on the procedures performed, the bond proceeds were used for the authorized purposes and in compliance with the restrictions set forth in City Council Resolution No. 4953.” Z:\CMO\2010 Council Agendas\M100414\S100414B.doc