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HomeMy WebLinkAbout028862 RES - 11/16/2010RESOLUTION APPROVING THE FORMATION OF A STREET MAINTENANCE FINANCE AD HOC ADVISORY COMMITTEE TO DEVELOP A STREET MAINTENANCE FUNDING PLAN. Whereas, improving the condition of City streets is one of the City Council's goals; and Whereas, on August 31, 2010, the City Council approved a motion to direct staff to come back with an agenda item to establish a five (5) member ad hoc task force, with committee members to be appointed by the Mayor, to look at options to put in place a permanent mechanism for funding street maintenance and report back to the Council with recommendations; and Whereas, staff has assessed the condition of all City streets and has determined that, if outsourced, a one-time initial cost of $1,250,000,000 (which includes total project costs of construction and administration) is needed to improve all streets to a "good" condition; and Whereas, staff has determined that an additional annual cost of $88,000,000 (20 -year lifecycle projection) is needed to maintain the streets in "good" condition after the initial repair is completed; and Whereas, there is no dedicated funding source for street repair/improvement; and Whereas, in the past 24 years, (1986 — 2010), Bond Projects have provided approximately $10,000,000 per year for street improvements; and Whereas, the current annual street maintenance budget from the General Fund is $11,000,000 (including $2,000,000 Council supplemented for street improvements in FY2010) of which $9,000,000 actual dollars are spent on street repairs; and Whereas, budget reductions and reallocations of funds from other City functions cannot meet street funding requirements; and Whereas, an additional funding source is needed to improve the condition of city streets and to maintain streets in "good" condition; and Whereas, historically, each dollar required for street repair has required an additional dollar for utility repair/replacement within the street ROW and these funds have been provided by various utility departments and are not included in street repair and maintenance cost requirements; and Whereas, street repair and maintenance should be limited to no more than 10% of the street system per year to limit disruption of traffic flow, and therefore, the repair program duration will be approximately 10 years; and Whereas, staff has determined that the existing street centerline mileage is 1204 miles, and the existing street square yardage is 20,297,511 square Yards; H,\LEG-DIR\Lisa\2010 Resolutions\Street Maintenance Finance Committee Resolution V5 clean.doc 025.862 INDEXED NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. The City of Corpus Christi hereby creates an ad hoc committee composed of five (5) members to be appointed by the Mayor, to develop and evaluate a funding plan for street maintenance, with committee recommendations to be provided to City Council. Section 2. Committee name and membership. A. The committee shall be known as the Street Maintenance Finance Ad hoc Advisory Committee. B. The committee members shall be City of Corpus Christi residents. Committee members shall be comprised as follows: a) One Certified Public Accountant or Financial industry representative. b) One Owner/manager of a roadway construction business. c) One consultant engineer. d) Two at large members. C. The committee is subject to compliance with the Texas Open Meetings Act. Section 3. The committee shall evaluate various funding options for street maintenance, including the following: A. Develop and evaluate funding options for a 10 -year street repair and maintenance program with annual expenditures of $125,000,000 for construction, engineering and project management, where construction, engineering, and project management would be outsourced. The maintenance budget during this period would be $9,000,000 and would be accomplished by City resources. B. Develop and evaluate funding options for a perpetual street maintenance program with annual expenditures of $88,000,000 (20 -yr lifecycle projection). City resources would accomplish $9,000,000 of the annual maintenance work. Construction, Engineering and Project Management for the remainder would be outsourced. Section 4. Evaluation of funding options shall consider the following evaluation criteria: A. Match user cost with user benefit. B. Predictability and stability of funding source. C. Ease of implementation. D. Other evaluation criteria as determined by the Committee Section 5. Staff support. H:\LEG-DIR\Lisa\2010 Resolutions\Street Maintenance Finance Committee Resolution V5 clean.doc A. The Director of Storm Water & Street Operations is designated as the City staff person to assist the committee with scheduling, record keeping, reporting, and other technical and administrative tasks that might be needed to support committee activities. In addition, research, data collection, calculations, report preparation, etc. will be provided by City staff. B. The following staff shall also attend meetings of the Committee to provide support as needed: City Director of Financial Services, Assistant Director of Street Operations, City Attorney or designated Assistant City Attorney, The City Financial Advisor shall also attend meetings of the Committee, as his schedule allows. Section 6. Schedule. The initial meeting of the Committee shall occur no later than December 31, 2010. The Committee shall develop a schedule to provide preliminary and final reports to the Council. Upon presentation of the final report to City Council, the Committee shall automatically be disbanded. Section 7. This Resolution shall be and become effective immediately and after its adoption and approval. Armando Chapa City Secretary APPROVED: November 15, 2010 Lisa Aguil for the Cit ssistant City Attorney ttorney THE CITY OF CORPUS CHRISTI ,d1.,,61e04.eta Joe Adarr9e Mayor H:\LEG-DIR\Lisa\2010 Resolutions\Street Maintenance Finance Committee Resolution V5 clean.doc Corpus Christi, Texas of WOR -120C , 2010 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott 028862