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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) S:\CMO\2012 Council Agendas\M120229\S120229A.doc 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 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. S:\CMO\2012 Council Agendas\M120229\S120229A.doc 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 S:\CMO\2012 Council Agendas\M120229\S120229A.doc 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  4%:)1)281%2%+)1)286)4368 %R9THEXISR%WTLEPX4EZIQIRX'SRHMXMSRWERH4VSKVEQW 6EXMRK -RZIRXSV](EXE      4VITEVIHF] 4YFPMG;SVOW1EMRXIRERGI 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