HomeMy WebLinkAboutItem 5: Resolution on GO Bonds to Fund Street Preservation
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Resolution 5063 Calling a City Election on November 6, 2012, for the Purpose of
Referring to the Legal Electors of the City of Eugene a Measure Authorizing the Issuance
of a Maximum of $43,000,000 of General Obligation Bonds to Fund Street Preservation
Projects and Bicycle and Pedestrian Projects
Meeting Date: July 9, 2012 Agenda Item Number: 5
Department: Central Services/Public Works Staff Contact: Sue Cutsogeorge
www.eugene-or.gov Contact Telephone Number: 541-682-5589
ISSUE STATEMENT
The council will consider placing a General Obligation (GO) bond measure for street preservation on the
November 2012 ballot.
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 taxes levied from the 2008 street bond,
end in 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 in part
due to the additional funds available from the GO bonds, but more work was needed to further reduce the
backlog of 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, work session, the
council provided direction to staff to work with the citizen Street Repair Review Panel (SRRP) to
develop a recommendation on a 2012 bond measure. On April 10, 2012, the SRRP unanimously
approved the recommendation to renew a five-year $43 million bond measure to fix 76 streets and fund
bicycle and pedestrian projects.
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On May 23, 2012, the council directed the City Manager to bring a resolution placing a $43 million GO
bond measure to fix streets on the November 2012 ballot, including the 76 proposed streets projects listed
and an average of six percent, or $516,000, be allocated annually for bicycle and pedestrian
improvements.
On June 27, 2012, the council directed the City Manager to bring the council a resolution placing a $43
million GO bond measure to fix streets on the November 2012 ballot for final action. Attachment A
includes the resolution referring the GO bond measure to the November 2012 ballot along with the
specific list of street projects. The resolution includes one change from the June 27 draft version. In
Recital F, it includes a statement about the estimated tax rate for the new bond measure being the same as
the estimated tax rate currently paid by Eugene taxpayers. Attachment B contains a map of the proposed
projects to show how they are distributed throughout the City.
The $43 million bond 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. The cost to the average homeowner in
2013 (the final year of the 2008 bond) is projected at $121. The cost to the average homeowner in 2014
(the first year of the proposed new $43 million bond) is estimated at $120.
Voters’ Pamphlet
Immediately following this item on the council agenda is an item that requests funding for a voters’
pamphlet and assignment of councilors to serve on the proponent committee. The City has prepared
neutral information tabloids for some of the previous bond measures, including the previous street bond
measure. Staff is not proposing to do so this time, however, so no request for funding for that purpose is
being made at this time.
Timing
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.
RELATED CITY POLICIES
The City 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 council could approve the resolution as presented in Attachment A, make changes to the resolution,
or take no action.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approving the resolution.
SUGGESTED MOTION
Move to adopt Resolution 5063 placing a GO bond measure on the November 2012 ballot.
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ATTACHMENTS
A. Resolution Referring a GO Bond Measure to the November 2012 Ballot
B. Map of Proposed Projects
FOR MORE INFORMATION
Contact: Sue Cutsogeorge, Finance Director
Telephone: 541-682-5589
Staff E-Mail: Sue.L.Cutsogeorge@ci.eugene.or.us
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
A RESOLUTION CALLING A CITY ELECTION ON NOVEMBER 6, 2012, FOR THE
PURPOSE OF REFERRING TO THE LEGAL ELECTORS OF THE CITY OF EUGENE
A MEASURE AUTHORIZING THE ISSUANCE OF A MAXIMUM OF $43,000,000 OF
GENERAL OBLIGATION BONDS TO FUND STREET PRESERVATION PROJECTS
AND BICYCLE AND PEDESTRIAN PROJECTS
The City Council of the City of Eugene finds that:
A.
Using the City’s current 5-cent per gallon local gas tax, other dedicated pavement
preservation funding, and a $35.9 million, five-year bond measure approved by voters in
November 2008 to repair more than 54 streets, the City has completed nearly $44.7 million
in street preservation work since 2002, the beginning of Eugene’s pavement preservation
program, and the City has repaired 343 lane miles of streets through overlay, reconstruction
and slurry seal treatments.
B.
The revenues from the local gas tax and the 2008 bond measure have helped reduce the
backlog of street repair projects. Currently the backlog of repairs on improved asphalt streets
is $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 funding that is both sufficient and
sustainable. The taxes levied from the 2008 street bond end in 2013. Streets that have failed
to the point of reconstruction create safety problems and cause vehicle repair problems, make
walking, biking or driving on the streets uncomfortable, interfere with economic activity and
diminish the quality of life.
C.
In order to address the funding shortfalls with the City’s street maintenance and preservation
program, the City Council determined that a General Obligation Bond measure generating
approximately $8 million in net revenues annually should be referred to voters. Of that
amount, the Council determined that an annual average of $516,000 should be allocated over
a period of five years to support bicycle and pedestrian projects guided by the Pedestrian and
Bicycle Master Plan, City staff, and the Bicycle and Pedestrian Advisory Committee.
D.
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 preservation project. These preservation efforts will be undertaken
only to preserve existing elements, not to expand the motor vehicle capacity of the street
system. In addition, the City will allocate an annual average of $516,000 of the bond
proceeds over a period of five years to fund bicycle and pedestrian projects.
E.
A general obligation bond measure of $43 million would fund specific street preservation
projects over a period of five years. This amount represents 76 different projects that would
repair an estimated 74 lane miles of roads and fund bicycle and pedestrian projects. The $43
million figure accounts for $8 million per year for five years at an inflation factor of 4%.
Page 1 of 3
F.
The measure is expected to cost an average of $0.65 per 1000 of assessed value each year for
five years. For an average homeowner in Eugene, this would be about $127 per year. This
rate is also the approximate average tax rate levied over the five years of the 2008 bond
measure. The taxes would first be levied in November 2014, after the 2008 bond taxes end in
2013.
G.
The criteria for choosing bond projects included: a) use of the most current engineering and
cost-benefit information about needed street rehabilitation and reconstruction; b) citizen input
with respect to prioritizing major streets in need of reconstruction; and c) geographic
distribution throughout the community to ensure all areas of the City benefit from the bond
proceeds. Bond proceeds will only be used for street preservation projects included in the list
of projects attached as Exhibit A to this Resolution. If all of the projects listed in Exhibit A
are completed and there are bond proceeds remaining, the Council may add other street
preservation projects to the list.
H.
In order to promote accountability in the use of bond proceeds, the City Manager will
contract with an outside auditor to prepare an annual written report on the use of the bond
proceeds. 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.
I.
To further promote accountability and citizen involvement in street preservation projects, the
City Manager will convene the citizen street repair review panel. The citizen street repair
review panel will prepare an annual 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.
NOW THEREFORE based upon the above findings,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal
Corporation of the State of Oregon, as follows:
Section 1
. A city election is called for the purpose of submitting to the qualified electors of
the City a Measure authorizing the issuance of a maximum of $43,000,000 of General Obligation
bonds to fund street preservation projects and bicycle and pedestrian projects.
Section 2
. The City Council orders this City election to be held in the City of Eugene,
Oregon, concurrently with the general election on the 6th day of November, 2012, in accordance
with the provisions of Chapter 254 of the Oregon Revised Statutes, and the ballots shall be
counted and tabulated and the results certified as provided by law.
Page 2 of 3
Section 3.
The City Recorder is directed to give not less than ten days’ notice of the City
election by publication of one notice in the Register Guard, a newspaper published in the City
and of general circulation within the City.
Section 4.
If approved by the electors, the proceeds from the sale of the bonds will be used
only for costs related to street preservation projects, bicycle and pedestrian projects and payment
of bond issuance costs and not to expand the motor vehicle capacity of the street system. The use
of bond proceeds for street preservation projects will be limited to projects included in Exhibit A
to this Resolution unless upon completion of all the projects listed in Exhibit A to this Resolution
the Council adds other street preservation projects to the list in order to utilize unspent bond
proceeds. An outside auditor will report on whether the bond proceeds were used in compliance
with these limitations.
Section 5.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted the _____ day of ______________, 2012.
________________________________________
City Recorder
Page 3 of 3
ExhibitA
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
ExhibitA
Map#StreetNameLimits
BESTLNADKINSST
45IONEAVE
HWY99NFAIRFIELDAVE
46JACOBSDR
8THAVE18THAVE
47JEFFERSONST
NSADDR1424SOUTHEND
48JUHLST
ECHOHOLLOWRDELIZABETHST
49KNOOPAVE
NORKENZIERD640FEETWESTOFNORKENZIERD
50LARKSPURAVE
NORKENZIERD(N)NORKENZIERD(S)
51LARKSPURLOOP
NORTHENDWESTERNDR
52LEIGHST
5THAVE13THAVE
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
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