Item A: Review of 2010 Implementation of Bond Measure to Fix Streets

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Street Repair Review Panel In October 2009, a citizen group was formed to evaluate the City’s use of the first year of 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 (SRRP) were: Paul Adkins, John Barofsky, Howard Bonnett, Dan Brown, Janet Calvert, Paul Holbo, Bob Kline, Steve Lee, Bruce Mulligan, Clayton Walker, Gary Wildish, and Jim Wilcox. All members returned in October 2010, to evaluate the City’s use of the second year of bond proceeds. The group met three times over a three- month period, which included a physical inspection of the bond measure projects completed in 2010, and those scheduled for 2011. On January 10, 2011, the Street Repair Review Panel unanimously approved its second annual report (Attachment A), which included the following conclusion: “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.” (SRRP 2010 Report, Page 1). The report from the SRRP highlighted the sustainable practices used on the bond projects, including the use of warm mix asphalt and in-place recycling, as well as the cost-savings achieved through lower-than- anticipated construction bids and the positive economic impacts of funding more than 80 full-time- equivalent jobs during the period of construction. Looking to the future, the SRRP and the Public Works staff recognize that even though the backlog estimate has declined over the past year, the current level of funding, including the bond measure, is insufficient to keep the backlog from growing over the long term. On a more positive note, it appears likely that all of the projects listed in Exhibit A of the bond measure will be completed and there will be bond proceeds remaining. These remaining bond funds will allow the council to add other street preservation projects to the list. Staff will return to the council later this spring, after the 2011 construction bids are opened, to further discuss the addition of projects to the original list. A website tracking the bond measure implementation has been established at www.eugene- or.gov/gobonds. The panel’s 2010 report has been placed on the internet, and links to the online report will be sent to the Neighborhood Leaders Council and other community and business organizations. The Street Repair Review Panel is scheduled to reconvene in fall 2011, upon completion of the 2011 construction season. Independent Accountant’s Report The accounting firm of Isler CPA, who also performed the annual audit of the city’s FY10 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, \\Cesrv500\cc support\CMO\2011 Council Agendas\M110119\S110119A.doc