HomeMy WebLinkAboutItem A: Review of 2011 Implementation of Bond Measure to Fix Streets
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Review of 2011 Implementation of Bond Measure to Fix Streets and 2012
Pavement Management Report
Meeting Date: February 29, 2012 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 third 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 2011 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. This work session
will also review the 2012 Pavement Management Report.
BACKGROUND
Council Action History
Following considerable study and discussion, including forming a Council Committee on Transportation
Funding and convening an ad hoc citizen Street Maintenance Task Force, the 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 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)
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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:
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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,
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, 2010, through November 30,
2011, 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.” The Isler CPA
report is included as Appendix D to the SRRP 2011 Report.
The Isler CPA 2011 report has been placed on the internet along with the report of the citizen panel at
www.eugene-or.gov/gobonds.
Pavement Management Report
The annual Pavement Management Report is produced to update information and data regarding the City
of Eugene’s transportation system including improved streets, unimproved streets and off-street shared-
use paths. This report provides surface descriptions and associated mileage, reviews current treatment
programs and costs, and projects future treatment needs based on several funding scenarios. Currently,
Public Works manages 1,364 lane miles (533 centerline miles) of streets, and approximately 41 miles of
off-street shared-use paths within the City limits. This report includes a breakdown of the street
transportation system in terms of pavement type, level of improvement, and functional classification.
The 2012 Pavement Management Report was compiled by the Public Works Maintenance Division’s
Surface Technical Team to provide updated information on the condition of asphalt paving in Eugene
using 2011 rating and inventory data. The 2012 Pavement Management Report shows progress has been
made on the condition of Eugene’s streets, but more work is needed to further reduce the backlog of
needed repairs on the 1,364 lane-miles of streets in the city. Specifically, based on the 2010 ratings and
reported in the 2011 report the calculated backlog of repairs on improved asphalt streets was $139
million; as of the end of 2011 the current backlog has been calculated to be $118 million. Despite this
short-term downward trend the backlog is projected to continue to grow unless there is an increase in
funding that is both sufficient and sustainable.
The report includes an inventory of streets by improvement status and functional classification, details
how a pavement management system is used to inspect and rate pavement surfaces, explains Eugene’s
pavement preservation program, and includes updated information about treatment types and costs.
Electronic copies of the 2012 Pavement Management Report are available at www.eugene-or.gov/pw.
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RELATED CITY POLICIES
Council 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 2011 Report
B. 2012 Pavement Management Report
FOR MORE INFORMATION
Contact: Kurt Corey, Public Works Director
Telephone: 541-682-8421
Staff E-Mail: Kurt.A.Corey@ci.eugene.or.us
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ATTACHMENT A
M
EMORANDUM
Date:
To:
From:
Subject:
(Appendix D)
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.
Sustainability
Economic Impact
2011 SRRP REPORT
PAGE 2
Future projects
Forecast
Overall Condition Index (OCI)
Progress –
Bottom line
SRRP Members City of Eugene Staff
PAGE 3
2011 SRRP REPORT
2011 Report of the Citizen Street Repair
Review Panel
TABLE OF CONTENTS
B
ACKGROUND
KT
EYERMS
SRRPM
ISSION
SP
TREETROJECTS
2009 2010 Report from the Citizen Street Repair Review Panel,
O-S(S-U)PP
FFTREETHAREDSEATHROJECTS
UOFCSBF
SE OF THERUNDS IN ONJUNCTION WITH TREETOND UNDS
S
USTAINABILITY
FSF
UNDING TATUS AND ORECAST
2011 Bond Construction Projects
Projected/
$ 1,716,000 $ 336,000
$ 1,190,000 $ (226,000)
$ 1,417,000 $ 62,000
$ 201,000 $ (54,000)
$ 1,340,000 $1,560,000
$ 640,000 $ (170,000)
$ 1,122,000 $ 878,000
$ 1,727,000 $ 527,000
$ 164,000 $ (64,000)
$ 9,517,000 $2,849,000
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ 2,000,000
$ -
$ 1,949,000
$ -
$ -
$ 752,000
$ -
$ 653,000
$ 2,300,000 $ -
$ 105,000
$ -
$ 471,000
$ -
$ 486,000
$ -
$ 515,000
$ -
2011 SRRP REPORT
PAGE 19
Projected/
$ -
$ 254,000
$ 690,000
$ -
$ 346,000
$ -
$ -
$ 157,000
$ 800,000
$ -
$ 245,000
$ -
$ 310,000
$ -
$ 413,000
$ -
$ -
$ 200,000
$ 184,000
$ -
$ 324,000
$ -
$ 697,000
$ -
$ 332,000
$ -
$ 14,183,000 $ -
$ -
$ -
Summary of Bond Costs
2011 SRRP REPORT
PAGE 20
Projected/
$ 622,000
$882,000
$146,000
$38,000
$ 329,000
$ 211,000
$1,552,000
$305,000
$496,000
$ 483,000
$ 277,000
$ 982,400
$244,000
$332,000
$2,000,000
$1,949,000
$752,000
$653,000
$2,300,000
$105,000
$471,000
$486,000
$515,000
$254,000
PAGE 21
2011 SRRP REPORT
Projected/
$690,000
$346,000
$157,000
$800,000
$245,000
$310,000
$413,000
$200,000
$184,000
$324,000
$697,000
$ 332,000
Summary of Projected Bond Costs
$ 450,000
$(35,900,000)
$ 4,889,400
PAGE 22
2011 SRRP REPORT
23
Appendix D
PAGE 24
PAGE 25
2011 SRRP REPORT
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