Item A: Review of 2011 Implementation of Bond Measure to Fix Streets

Home Browse Search

On April 14, 2010, the City Council held a work session to receive the first annual report from the Street Repair Review Panel (SRRP) and the independent accountant’s report. On January 19, 2011, the City Council received the year-two report from the SRRP regarding the implementation of the 2008 bond measure to fix streets. On May 11, 2011 and October 26, 2011, City Council approved 22 additional streets to be repaired with the projected remaining bond funds, bringing the total streets to be repaired to 54 streets. 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 serving on the 2011 Street Repair Review Panel (SRRP) were: Paul Adkins, John Barofsky, Howard Bonnett, Janet Calvert, Paul Holbo, Bob Kline, Steve Lee, Bruce Mulligan, Ollie Snowden, Clayton Walker, Gary Wildish, and Jim Wilcox. Over the past year, the 12-member panel met two times to develop a recommendation of additional streets to be repaired with the bond measure proceeds remaining. In addition, they met three times over a three-month period in preparation of the report, which included a physical inspection of the projects completed in 2011. On January 11, 2012, the Street Repair Review Panel unanimously approved its third annual report (Attachment A), which included the following conclusion: “Based on this limited review and all materials presented to us, 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 2011 Report, Page 1). The report from the SRRP highlighted the sustainable practices used on the bond projects, including the use of reclaimed asphalt shingles, 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 135 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. The SRRP is continuing to meet in February and March to discuss a recommendation regarding a new bond measure to fix streets. Staff will return to the council later this year, to further discuss the recommendations. A website tracking the bond measure implementation has been established at www.eugene- or.gov/gobonds. The panel’s 2011 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. In preparation of the 2012 report, the Street Repair Review Panel is scheduled to reconvene in the fall, upon completion of the 2012 construction season. Independent Accountant’s Report The accounting firm of Isler CPA, who also performed the annual audit of the city’s FY11 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: S:\CMO\2012 Council Agendas\M120229\S120229A.doc