Loading...
HomeMy WebLinkAboutItem A: Street Repair Review Panel Recommendation for 2012 Bond Measure ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Street Repair Review Panel Recommendation of 2012 Bond Measure to Fix Streets Meeting Date: May 23, 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 discuss the citizen Street Repair Review Panel’s (SRRP) recommendation for funding capital pavement preservation projects with a General Obligation (GO) bond measure to fix streets. The council is asked to provide direction for development of a resolution to place a GO bond measure on the ballot in November 2012. 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, passed the five-year general obligation bond to fix streets, payable from property taxes beginning November 2009 and continuing through November 2013. The final set of street projects to be paid from this bond measure will occur in the summer of 2013. The 2012 Pavement Management Report was presented to the council on February 29, 2012, and provided updated information on the condition of asphalt paving in Eugene using 2011 rating and inventory data. The report showed progress had been made on the condition of Eugene’s streets, but more work was needed to further reduce the backlog of needed repairs on the 1,364 lane-miles of streets in the city. Specifically, the 2012 report calculated the backlog of repairs on improved asphalt streets was $118 million; a reduction in the estimated backlog of needed repairs of more than $50 million since the 2008 bond was approved. 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. In anticipation of the expiration of the 2008 bond measure, at the October 26, 2011, council work session, the council provided direction to staff to work with the citizen Street Repair Review Panel to develop a recommendation on a 2012 bond measure. The 11 community members serving on the Street Repair Review Panel were: John Barofsky, Howard Bonnett, Janet Calvert, Mel Damewood, Paul Holbo, Bob Kline, Steve Lee, Ollie Snowden, Clayton Walker, Gary Wildish, and Sue Wolling. The group met five times over a four-month period before unanimously approving the recommendation on April 10, 2012, to renew the bond measure to fix streets. S:\CMO\2012 Council Agendas\M120523\S120523A.doc Placing a measure on the November 2012 ballot would allow Public Works staff to continue a seamless process of designing and bidding an annual street repair program. It takes several years to plan and design major street repair projects. This would also provide public and private utilities sufficient time to complete their work in advance of street repairs. If voters approved a new bond measure late in calendar 2012, it would allow construction to occur during the summer of 2014. If a new bond measure was approved by voters in November 2012, the taxes would first be levied in November 2014, after the 2008 bond ends in 2013. This would be clearly stated in the bond measure ballot materials. Use of Bond Proceeds The citizen Street Repair Review Panel recommended the renewal of a bond measure to fix streets and unanimously concluded that the resolution for the future bond measure should include four principal areas: Issuance of General Obligation Bonds: The City should issue a maximum of $43 million of general obligation bonds to fund street preservation projects. The measure would generate approximately $8 million in net revenues annually, plus inflation for five years. Of that amount, the SRRP recommended that over the five years of the bond, an average of six percent, or $516,000, be allocated annually for bicycle and pedestrian improvements. The measure is expected to cost an average homeowner in Eugene $0.65 per $1,000 of assessed value each year for five years or about $127 per year. This rate is also the approximate average tax rate levied over the five years of the current bond measure. Attachment A includes a comparison of the estimated 2008 and projected 2012 general obligation bonds effect on the taxpayer. Street Project Criteria: To guide the selection of street projects, the citizen SRRP recommended the following primary street project criteria: use of the most current engineering and cost-benefit information about needed street rehabilitation and reconstruction; citizen input with respect to prioritizing major streets in need of reconstruction; and geographic distribution throughout the community to ensure all areas of the City receive benefit from the bond proceeds. Secondary street project criteria established by the citizen SRRP included the following: overlay projects will generally receive higher priority than reconstruction projects; arterial and collector streets are generally prioritized over local streets; and additional criteria includes streets with utility needs, presence of bike lanes or routes, Pedestrian and Bicycle Master Plan projects, transit routes, and local streets that serve schools or commercial or industrial areas. If approved, the bond proceeds will fix approximately 74 lane-miles of streets and fund pedestrian and bicycle improvements. Bond Criteria and Use: The citizen SRRP recommended the continuation of the bond criteria to limit the use of bond proceeds for specific street preservation projects included in the resolution. If all of the listed projects are completed and there are bond proceeds remaining, the council may add other street preservation projects to the list. The bond proceeds will be used to overlay or reconstruct the driving surface of streets as well as to preserve existing integral elements of the street such as curbs, gutters, sidewalks, on-street bike lanes, traffic signals, street lights, medians, traffic calming devices, and other integral parts of a street S:\CMO\2012 Council Agendas\M120523\S120523A.doc preservation project. These preservation efforts will be undertaken only to preserve existing elements, not to expand the motor vehicle capacity of the street system. Regarding the use of the average annual allocation for bicycle and pedestrian improvements dedicated to off-street bike and pedestrian path preservation and repair projects, the SRRP recommended allowing the use of bond funds to support bicycling and walking projects guided by the Pedestrian and Bicycle Master Plan, City staff, and the Bicycle Pedestrian Advisory Committee. Bond proceeds would pay bond issuance costs as well. Accountability and Transparency: The citizen SRRP recommended the continuation of the accountability and transparency requirements in the resolution. To promote accountability and citizen involvement, the City Manager should contract with an outside auditor to prepare an annual written report on whether the bond proceeds were used in compliance with the limitations of the bond measure, and continue the use of the citizen Street Repair Review Panel to prepare an annual report documenting the City’s use of the bond proceeds and noting whether the bond proceeds were used in compliance with the terms of the resolution. Timing The citizen Street Repair Review Panel recommended that the measure be placed on the November 6, 2012, ballot. Should the council wish to proceed with this election date, a resolution placing the measure on the ballot should be approved no later than July 23 to comply with the election timelines for the November election. The council tentative agenda includes a work session on June 27 to provide final direction for changes to the resolution in order to allow for adequate bond counsel review and approval of any changes and action on July 9 to place the measure on the November ballot. 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 The focus of this council work session is to determine more specifically what to include in the resolution placing a bond measure on the ballot to fix streets. The resolution will become part of the materials included in the Voters’ Pamphlet, and resolution language is the basis for the language contained in the ballot title (caption, question and summary). The council has before it policy decisions related to the size of the measure and restrictions on uses of the revenue:  Measure size: The citizen Street Repair Review Panel recommended a total measure of $43 million, which works out to be approximately $8 million plus inflation annually. The council could choose a different amount for the bond measure. Attachment A includes the estimated effect on taxpayers from different bond amounts.  Project list: The citizen SRRP reviewed and approved a list of streets to be improved by the new bond measure. The proposed project list to be included in the measure is provided as Attachment S:\CMO\2012 Council Agendas\M120523\S120523A.doc B. A map of the proposed projects is provided as Attachment C. The council could modify the project list or adopt other measure language as deemed appropriate.  Pedestrian and bicycle improvements: The citizen SRRP recommended an average annual allocation of $516,000 for pedestrian and bicycle improvements. The council could choose to maintain the language in the 2008 bond measure or to choose a different amount. CITY MANAGER’S RECOMMENDATION The City Manager recommends that a GO bond measure to fund $43 million ($8 million plus inflation annually over five years) of capital pavement preservation projects and pedestrian and bicycle improvements should be prepared for the November 2012 ballot. The resolution placing the measure on the ballot should include a project list and incorporate any additional language as directed by the council at this meeting. SUGGESTED MOTION Direct the City Manager to bring a resolution placing a $43 million GO bond measure to fix streets on the November 2012 ballot, consistent with the proposed project list included as Attachment B. ATTACHMENTS A. Effect on Taxpayer - 2008 vs. 2012 GO Bonds and Different Bond Amounts B. Proposed List of Projects to Be Included in the Bond Measure C. Map of Proposed Projects FOR MORE INFORMATION Contact: Kurt Corey, Public Works Director Telephone: 541-682-8421 Staff E-Mail: Kurt.A.Corey@ci.eugene.or.us S:\CMO\2012 Council Agendas\M120523\S120523A.doc Attachment A General Obligation Bonds to Fix Streets Effect on Taxpayer Comparison of 2008 GO Bonds vs. 2012 GO Bonds and Estimation for Different Bond Amounts 2008 General Obligation Bonds to Fix Streets ACTUALS THROUGH FY12; PROJECTED TO FY1 4 Assessed GrossCity-wideTaxValue ofCost to Bond ParAnnualAV inRateAverageAverage AmountLevy Amount1000'sPer 1000HomeHome FY106,500,000$ 7,146,667 11,590,081 $0.62158,447 $98 FY116,810,000$ 7,477,333 11,741,991 $0.64163,303 $104 FY127,140,000$ 7,808,511 12,017,702 $0.65168,546 $110 FY137,480,000$ 8,170,213 12,408,380 $0.66173,602 $114 FY147,970,000$ 8,691,489 12,830,434 $0.68178,810 $121 $ 35,900,000Average:$0.65Average:$109 39,294,213 2012 General Obligation Bonds to Fix Streets Estimated Using the Average Tax Rate of the 2008 Measur e Assessed GrossCity-wideTaxValue ofCost to Bond ParAnnualAV inRateAverageAverage AmountLevy Amount1000'sPer 1000HomeHome FY158,000,000$ 8,680,000 13,279,717 $0.65184,175 $120 FY168,290,000$ 9,000,000 13,758,056 $0.65189,700 $123 FY178,590,000$ 9,320,000 14,253,623 $0.65195,391 $127 FY188,900,000$ 9,660,000 14,767,039 $0.65201,253 $131 FY199,220,000$ 10,000,000 15,298,586 $0.65207,290 $135 $ 43,000,000Average:$0.65Average:$127 46,660,000 Estimated Effect on Taxpayer from Different Bond Amount s TaxCost to Bond ParRateAverage AmountPer 1000Home $ $0.53$10435,000,000 $ $0.61$11940,000,000 $ $0.65$12743,000,000 $ $0.68$13345,000,000 $ $0.76$14950,000,000 $ $0.84$16455,000,000 $ $0.91$17860,000,000 $ $0.99$19465,000,000 $ $1.06$20770,000,000 AttachmentB ProjectListfor2012BondMeasuretoFixStreets Map#StreetNameLimits WASHINGTONSTVANBURENST 101STAVE BLAIRBLVDWESTEND 201STAVE BLAIRBLVDGARFIELDST 302NDAVE BERTELSENRDWESTEND 405THAVE BERTELSENRDCOMMERCIALST 506THAVE BERTELSENRDOSCARST 607THAVE 7THAVE/HWY99BAILEYHILLRD 707THPL WASHINGTONSTGARFIELDST 813THAVE BERTELSENRDCOMMERCEST 913THAVE FAIRMOUNTBLVDAGATEST 1015THAVE FAIRMOUNTBLVDAGATEST 1117THAVE FILLMORESTCHAMBERSST 1219THAVE FRIENDLYSTPOLKST 1322NDAVE HAWKINSLNBRITTANYST 1425THAVE COLUMBIASTSPRINGBLVD 1527THAVE SPRINGOVERPASSAGATEST 1630THAVE MILLST(WEST)FERRYST(EAST) 1730THAVE MILLSTWILLAMETTEST 1830THAVE WILLAMETTEST100'EASTOFDENSMORERD 1939THAVE HILYARDSTDONALDST 2040THAVE NSHASTADILLARDRD 2143RDAVE ECHOHOLLOWRDJUHLST 22AVALONST WILLAKENZIERDKENTWOODDR 23BESTLN 39THAVEWILLAMETTEST 24BRAEBURNDR MILLSTPEARLST 25BROADWAY WOODSIDEDRFORRESTERWAY 26BUFFWAY WESTERNDRHARLOWRD 27CALVINST SPRINGBLVD50'NOFCRESTADERUTAST 28CAPITALDR MINDADR400'SOUTHOFMINDADR 29CARMELAVE AVALONSTJUHLST 30CASCADEDR MLK,JRBLVD(EAST)MLK,JRBLVD/CLUBRD 31CENTENNIALLP 28THAVE29THAVE 32CITYVIEWST SSFERRYSTBRIDGE50'SOFEWEBON/OFFRAMP 33COBURGRD 5THAVESOUTHEND 34COMMERCIALST FORRESTERWAYTANDYTURN 35CORYDONST HILYARDSTDILLARDRD 36EASTAMAZONDR KNOOPAVEROYALAVE 37ELIZABETHST WSHWY99ROYALAVE 38FAIRFIELDAVE 19THAVE24THAVE 39FILLMOREST SPRINGBLVDAGATEST 40FIRLANDBLVD COBURGRDWSDRWY1033 41FORRESTERWAY ROOSEVELT6THAVE 42GARFIELDST GOODPASTUREISRD(EASTINTERSECTION)GOODPASTUREISRD 43GOODPASTURELOOP (WESTINTERSECTION) 44INTERIORSTNORTHENDOFCULDESACSOUTHENDOFIMPROVEDSECTION AttachmentB Map#StreetNameLimits BESTLNADKINSST 45IONEAVE HWY99NFAIRFIELDAVE 46JACOBSDR 8THAVE18THAVE 47JEFFERSONST NSADDR1424SOUTHEND 48JUHLST ECHOHOLLOWRDELIZABETHST 49KNOOPAVE NORKENZIERD640FEETWESTOFNORKENZIERD 50LARKSPURAVE NORKENZIERD(N)NORKENZIERD(S) 51LARKSPURLOOP NORTHENDWESTERNDR 52LEIGHST AVE13THAVE 5TH 53LINCOLNST TOMAHAWKLNHARLOWRD 54LYDICKWAY 1STAVE8THAVE 55MADISONST GARDENWAYHONEYSUCKLELN 56MAHLONAVE 30THAVE(NORTH)30THAVE(SOUTH) 57MILLST 1STAVEBLAIRBLVD 58MONROEST FIRLAND43RDAVE 59NORTHSHASTALOOP PIONEERPIKENORTHEND 60PIONEERCT CHASASTFIRACRESDR(INCLCULDESAC) 61PIPERLN 24THAVE29THAVE 62POTTERST OAKWAYRDCALYOUNGRD 63ROLANDWAY BAILEYLNWESTERNDR 64SATREST COBURGRDESDRWY1023 65SHARONWAY FAIRMOUNTBLVDCAPITALDR 66SPRINGBLVD WARRENSTWINTERCREEKDR 67TIMBERLINEDR HARLOWRD580'NORTHOFHARLOWRD 68TOMAHAWKLN CRESCENTAVEHOLLYAVE 69TULIPST 23RDAVE27THAVE 70VANNESSST 8THAVE13THAVE 71WASHINGTONST ESHILYARDSSFOXHOLLOW 72WESTAMAZONDR CALVINSTWESTEND/MONROEMIDDLESCHOOL 73WESTERNDR 24THAVE29THAVE 74WILLAMETTEST 10THAVE13THAVE 75WILLAMETTEST CALYOUNGRDSHARONWAY 76WOODSIDEDR 69 43 23 50 45 29 61 22 51 46 48 76 30 65 63 26 49 41 52 38 37 35 6068 54 42 31 2 1 4 58 3 55 1 33 5 7 6 53 34 25 9 71 8 75 44 10 47 12 11 13 14 66 39 70 62 28 67 15 32 74 57 17 18 16 72 40 19 59 20 24