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Item A: Review of 2010 Implementation of Bond Measure to Fix Streets
ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Review of 2010 Implementation of Bond Measure to Fix Streets Meeting Date: January 19, 2011 Agenda Item Number: A Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 541-682-8421 ISSUE STATEMENT This work session is an opportunity for the Eugene City Council to review the second year of the implementation of Measure 20-145, the bond measure to fix streets. To facilitate this review, two documents were prepared: the Citizen Street Repair Review Panel 2010 Report and the independent accountant’s report prepared by Isler CPA. These reports are provided as informational items in compliance with the City Council resolution placing the bond measure on the ballot. BACKGROUND Following considerable study and discussion, including forming a Council Committee on Transportation Funding and convening an ad hoc citizen Street Maintenance Task Force, council on July 28, 2008, approved Resolution 4953, calling a city election on a measure authorizing the issuance of $35.9 million of general obligation (G.O.) bonds to fund street preservation projects. Eugene voters on November 4, 2008, approved the measure. In the City Council resolution and the information provided to voters, there were specific requirements related to accountability: In order to promote accountability in the use of bond proceeds, the City Manager will contract with an outside auditor to prepare a written report on the use of the bond proceeds on a regular basis. The auditor will ascertain and report on whether the bond proceeds were used for the authorized purposes and in compliance with the restrictions set forth above. The City Manager will provide the report to the council and make the report publicly available. (Resolution 4953, Section H) To further promote accountability and citizen involvement in street preservation projects, the City Manager has advised that he intends to create a street repair review panel. The street repair review panel will prepare a report, separate and distinct from the report prepared by the outside auditor, documenting the City’s use of the bond proceeds and noting whether the bond proceeds were used in compliance with the terms of this resolution. The City Manager will provide the street repair review panel’s report to the council and make the report publicly available. (Resolution 4953, Section I) On April 14, 2010, the City Council held a work session to receive an update regarding the implementation of the 2009 bond measure to fix streets. The first annual report from the Street Repair Review Panel (SRRP) and the independent accountant’s report were discussed. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110119\S110119A.doc 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 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 December 1, 2009, through November 30, 2010, and were conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent accountant expenditure testing concluded, “All tested expenditures were recorded in the proper account fund and period and were spent on street projects included in Exhibit A of City Council Resolution No. 4953. No exceptions were noted.” Further, it was the summary conclusion of the independent accountant that, “Based on our limited testing, we noted that the City followed the purpose and limitation of the City Council Resolution #4953” (Attachment B). The Isler CPA 2010 report has been placed on the internet along with the report of the citizen panel at www.eugene-or.gov/gobonds. RELATED CITY POLICIES The council’s goals include “Transportation Initiative: Develop mechanisms to adequately fund our transportation system for cars, trucks, bikes and pedestrians including maintenance and preservation and capital reconstruction.” COUNCIL OPTIONS This work session is informational; no action is requested. CITY MANAGER’S RECOMMENDATION This work session is informational; no action is requested. SUGGESTED MOTION This work session is informational; no motion is requested. ATTACHMENTS A. Citizen Street Repair Review Panel 2010 Report B. Isler CPA 2010 Report FOR MORE INFORMATION Contact: Kurt Corey, Public Works Director Telephone: 541-682-8421 Staff E-Mail: Kurt.A.Corey@ci.eugene.or.us \\Cesrv500\cc support\CMO\2011 Council Agendas\M110119\S110119A.doc ßÌÌßÝØÓÛÒÌ ß Ý·¬·¦»² ͬ®»»¬ λ°¿·® λª·»© п²»´ îðïð λ°±®¬ ׳°´»³»²¬¿¬·±² ˰¼¿¬» º±® Ó»¿«®» îðóïìë Þ±²¼ ¬± Ú·¨ ͬ®»»¬ Ö¿²«¿®§ îðïï Ы¾´·½ ɱ®µ ͬ®»»¬ λ°¿·® λª·»© п²»´ Ý·¬§ ±º Û«¹»²» ïðï Ûò Þ®±¿¼©¿§ô Í«·¬» ìðð Û«¹»²»ô Ñ®»¹±² çéìðï øëìï÷ êèîóèìîï øëìî÷ êèîóêèîê ÚßÈ ©©©ò»«¹»²»ó±®ò¹±ªñ¹±¾±²¼ Ó ÛÓÑÎßÒÜËÓ Ü¿¬»æ Ö¿²«¿®§ ïðô îðïï ̱æ Ý·¬§ Ó¿²¿¹»® Ö±² Ϋ·¦ Ú®±³æ ͬ®»»¬ λ°¿·® λª·»© п²»´ Í«¾¶»½¬æ Ç»¿® Ì©± λ°±®¬ ±º ¬¸» ͬ®»»¬ λ°¿·® λª·»© п²»´ ׬ · ±«® °´»¿«®» ¬± °®»»²¬ ¬¸» »½±²¼ ¿²²«¿´ ®»°±®¬ ±º ¬¸» ͬ®»»¬ λ°¿·® λª·»© п²»´ øÍÎÎÐ÷ò ̸· °¿²»´ ©¿ º±®³»¼ô ¿²¼ ¬¸· ®»°±®¬ ©¿ ©®·¬¬»²ô ·² ®»°±²» ¬± ¬¸» ¿½½±«²¬¿¾·´·¬§ °®±ª··±² ·² Ó»¿«®» îðóïìë ø¾±²¼ ³»¿«®» ¬± º·¨ ¬®»»¬÷ò ̸» ïîó³»³¾»® °¿²»´ ³»¬ ¬¸®»» ¬·³» ±ª»® ¿ ¬¸®»»ó³±²¬¸ °»®·±¼ô ©¸·½¸ ·²½´«¼»¼ ¿ °¸§·½¿´ ·²°»½¬·±² ±º ¬¸» °®±¶»½¬ ½±³°´»¬»¼ ·² îðïðò É» 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¼«» ¬± »¨°¿²·±² ¿²¼ ½±²¬®¿½¬·±² ±º ¬¸» «²¼»®´§·²¹ ±·´ò Í»½¬·±² ±º ¬¸» °¿¬¸ ¬¸¿¬ ©»®» ¼»»³»¼ ¬± ¾» ¬¿¾´» ©»®» ±ª»®´¿·¼ ©·¬¸ é ·²½¸» ±º ½±²½®»¬» ®»·²º±®½»¼ ©·¬¸ ¬®«½¬«®¿´ º·¾»®ò ɸ»®» ¬¸» »¨·¬·²¹ °¿¬¸ ©¿ »¨°»®·»²½·²¹ »ª»®» ½®¿½µ·²¹ ¿²¼ ³±ª»³»²¬ ¬¸» »¨·¬·²¹ °¿¬¸ ©¿ »¨½¿ª¿¬»¼ ¿²¼ é ·²½¸» ±º ½±²½®»¬» ®»·²º±®½»¼ ©·¬¸ ¬®«½¬«®¿´ º·¾»® ©¿ ½±²¬®«½¬»¼ ±ª»® ïî ·²½¸» ±º ¾¿» ®±½µò ͬ®«½¬«®¿´ º·¾»® ©»®» ·²½±®°±®¿¬»¼ ·²¬± ¬¸» ²»© ½±²½®»¬» °¿¬¸ ¬± ¸»´° °®»ª»²¬ ½®¿½µ·²¹ ¼«» ¬± ±·´ »¨°¿²·±² ¿²¼ ½±²¬®¿½¬·±²ò ݱ¬æ ̱¬¿´ °®±¶»½¬ ½±¬ô º®±³ ¿´´ º«²¼·²¹ ±«®½»ô ¿®» »¬·³¿¬»¼ ¿¬ üìïðôðððò üìïðôððð ̱¬¿´ Þ±²¼ Ú«²¼ Ю±¹®¿³³»¼ ¬± ¬¸» Ю±¶»½¬ ã üìðëôððð ̱¬¿´ Ю±¶»½¬»¼ñß½¬«¿´ Þ±²¼ Ú«²¼ Ë»¼ ã ü ëôððð Ü·ºº»®»²½» ã ß¼¼·¬·±²¿´ ͱ«®½» ±º Ú«²¼·²¹æ ͬ±®³©¿¬»® «¬·´·¬§ º»»ò Ю±¶»½¬ 豬±æ Ú»®² η¼¹» п¬¸ °®·±® ¬± ½±²¬®«½¬·±²ò Ú»®² η¼¹» п¬¸ ¿º¬»® ½±²¬®«½¬·±²ò Ö¿²«¿®§ ëô îðïï ÍÎÎÐ îðïð λ°±®¬ п¹» ïî APPENDIX A Citizens Street Repair Review Panel 2010 Repor t 5-Year Street Bond Project List Projected/ ProjectProposedProgrammed Street nameFromToWard(s)Difference Map #TreatmentCostActual Cost Construction Year 2009 6Bailey Hill Rd18th AveEast Side Of 8 $ 1,866,000 $ 934,980 $ 931,020 Reconstruct/Overlay Bertelsen 15Goodpasture Is RdNorkenzie RdDelta Hwy Bridge5Overlay $ 367,000 $ 434,620 $ (67,620) 20Railroad BlvdVan BurenChambers7Overlay $ 421,000 $ 398,165 $ 22,835 Construction Year 2009 Totals= $ 2,654,000 $ 1,767,765 $ 886,235 Construction Year 2010 118th Ave510' East Of ChambersCity View1Reconstruct/Overlay $ 1,733,000 $ 1,280,000 $ 453,000 145 Goodpasture Is RdBridge Over SloughKingsley Rd Reconstruct/Overlay $ 1,319,000 $ 686,000 $ 633,000 1750-feet North of Valley 1250-feet North of River DrValley River Dr 16Harlow RdI-5 Coburg4Reconstruct/Overlay $ 1,202,000 $ 875,000 $ 327,000 18PattersonE 13th Ave23rd Ave3 Reconstruct $ 2,134,000 $ 1,374,000 $ 760,000 218th AveHilyardPatterson1 323rd AveHilyardPatterson3 29Willamette St306' North Of 29th Ave140' South Of 29th 2Reconstruct $ 405,000 $ 518,000 $ (113,000) Ave 29Willamette St46th Ave52nd Ave2Overlay $ 500,000 $ 410,000 $ 90,000 Construction Year 2010 Totals= $ 7,293,000 $ 5,143,000 $ 2,150,000 Construction Year 2011 218th AvePattersonWashington1,3Reconstruct/Overlay $ 2,052,000 ---- ---- 5AlderBroadway18th Ave3Reconstruct/Overlay $ 964,000 ---- ---- 10Coburg Rd850' North Of Cal Young450' North Of I-105 4Overlay $ 1,479,000 ---- ---- Off Ramp 11Conger St7th Pl11th Ave7Overlay $ 147,000 ---- ---- 17Hilyard StE 24th Ave34th Ave2,3Reconstruct $ 2,900,000 ---- ---- 19Pearl4th Ave200' North Of 7Reconstruct/Overlay $ 470,000 ---- ---- Broadway 21River RdHorn LnRailroad7Reconstruct/Overlay $ 2,000,000 ---- ---- 29Willamette St140' South Of 29th Ave46th2Reconstruct/Overlay $ 2,254,000 ---- ---- 30Wilson StW 5th AveW 7th Pl7Overlay $ 100,000 ---- ---- $ - $ - Construction Year 2011 Totals= $ 12,366,000 Construction Year 2012 424th AveJeffersonChambers1Reconstruct/Overlay $ 622,000 ---- ---- 8BrewerGilhamNorkenzie5Reconstruct/Overlay $ 146,000 ---- ---- 9Coburg RdCrescentSouth Onramp 4 $ 415,000 ---- ---- Overlay Beltline 12Curtis Ave550' East Of NorkenzieNorkenzie5Overlay $ 38,000 ---- ---- 14Goodpasture Is RdKingsley Rd.1750-feet North of 5Overlay $ 448,000 ---- ---- 13Gilham RdHoneywood StCrescent5Overlay $ 305,000 ---- ---- 24Royal AveHwy 99100' East Of Waite 8 $ 1,565,000 ---- ---- Reconstruct St 25Silver LnRiver RdGrove7Overlay $ 305,000 ---- ---- 32Taney StBargerMarshall6Reconstruct $ 349,000 ---- ---- 26Terry St1100' North Of Avalon StRoyal6Reconstruct/Overlay $ 978,000 ---- ---- 28Warren StBailey HillTimberline Dr8Reconstruct/Overlay $ 217,000 ---- ---- $ - $ - Construction Year 2012 Totals= $ 5,388,000 Construction Year 2013 31Augusta16th Ave26th Ave3Reconstruct $ 1,434,000 ---- ---- 7Blair Blvd2nd AveMonroe7Reconstruct/Overlay $ 1,228,000 ---- ---- 22Riverview StFranklin Off Ramp247' South Of 3 $ 65,000 ---- ---- Overlay Franklin Off Ramp 23Riverview StSylvan16th Ave3Overlay $ 17,000 ---- ---- 27Van BurenRR CrossingBlair Blvd7Reconstruct $ 305,000 ---- ---- $ - $ - Construction Year 2013 Totals= $ 3,049,000 Totals= $ 30,750,000 Off-Street (Shared Use) Path Project List ProjectOff-Street Path ProposedProgrammedProjected/ FromToWard(s)Difference Map IDProjectTreatmentCostActual Cost Construction Year 2009 AAmazon Path19th Ave31st Ave3Reconstruct $ 648,000 $ 747,569 $ (99,569) Construction Year 2010 BFern Ridge PathVan Buren St.Chambers St.1Reconstruct $ 410,000 $ 405,000 $ 5,000 CWestmoreland Polk Street500' West of Polk St.1Reconstruct Construction Year 2011 DSouth Bank PathMaurie Jacobs Park Ferry Street Bridge7Reconstruct ---- ---- $ 367,000 Construction Year 2012 EWest Bank PathGreenway BridgeStephans St.7Reconstruct ---- ---- $ 325,000 Total Programmed Off-Street Path Project Costs in 2008 Dollars=$ 1,750,000 Summary of Bond Costs Total Street Projects in 2008 Dollars=$ 30,750,000 Total Off-Street Path Projects =$ 1,750,000 Bond Issuance Costs=$ 130,000 Inflation=$ 3,270,000 =$ 35,900,000 Total Bond Costs ßÐÐÛÒÜ×È Þ Ý·¬·¦»² ͬ®»»¬ λ°¿·® λª·»© п²»´ îðïð λ°±®¬ Û«¹»²» ͬ®»»¬ Þ±²¼ Ю±¶»½¬ Ô·¬ Ö¿²«¿®§ îðïï îëïí ç ïî è íî ïë É¿®¼ ê ïì îê ïð É¿®¼ ë îï îì Û ïê É¿®¼ ì Ü îð É¿®¼ é îé íð ïç é ïï É¿®¼ è Þ îî ë îí ïè î ï Ý É¿®¼ ï ß í îè ê íï ì É¿®¼ í îç ïé É¿®¼ î îç Ô»¹»²¼ ݱ«²½·´ É¿®¼Ý±²¬®«½¬·±² Ç»¿® îç ïîððç îîðïð íîðïï ìîðïî ëîðïí ê Ý·¬§ ͬ®»»¬ é Û«¹»²» ËÙÞ è Ю±¼«½»¼ ¾§ Ý·¬§ ±º Û«¹»²» ÐÉ Û²¹ ײº± Ì»¿³ô Ü»½»³¾»® îðïð øÎ»ºý ðçïðóïêîð÷ ððòîëðòëÓ·´» ûèèûùôï÷îèú City of Eugene 2 Agreed-Upon Procedures (2) Bond proceeds and project expenditures. The following is a summary of bond proceeds and project expenditures from inception of the Street Bond project to November 30, 2010: (3) From Issuance toFrom December 1, 2009 11/30/2009November 30, 2010Total Bond proceeds2,795,000$ 5,555,000$ 8,350,000$ Project expenditures2,682,749 5,737,236 8,419,985 As of November 30, 2010 the City had $1,850,000 outstanding on the credit facility ($8,350,000 in proceeds less $6,500,000 repaid) with $27,550,000 in authorized borrowing remaining ($35,900,000 authorized less $8,350,000 in proceeds). Based on our limited testing, we noted that the City followed the purpose and limitation of the City Council Resolution #4953. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion on the financial records. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the City Manager of the City of Eugene, and is not intended to be and should not be used by anyone other than these specified parties. Isler CPA Eugene, Oregon December 30, 2010