The Cost of Doing Nothing A local example. The Cost of Doing Nothing Historical perspective The...

The Cost of Doing NothingA local example

The Cost of Doing Nothing• Historical perspective

• The current situation

• What changed

• Moving forward

Historical Perspective1928

City Hall• 5 floors built when only 2 were needed

• Included a grand performance space

• Renovated in 2012

• Still serving the community today

Historical perspective1958

Foster Communications Coliseum• Built in 1958

• Last renovated in 2007 with voter-approved half-cent sales tax, reroofed in 2014

• Seating expansion being explored

• Still serving the community today

Historical perspective1978

McNease Convention Center• Built in 1978

• Renovated in 2008 with voter-approved half-cent sales tax

• New marquee in 2015

• Still serving the community today

Historical Perspective1972

Hickory Aquifer• Water rights acquired in 1972

• $120 million project

• Phase 1 completed in 2014

• Daily capacity of 9 million gallons

• Will serve this community decades into the future

Current Situation

“Pay me now … or pay me later…”

Current Situation

Water mains• Catastrophic water main failure in 2007. The

lifespan of mains cannot be extended through maintenance; they must be replaced.

• $1.3 million budgeted annually for main replacements• Replaces 2-3 miles of rusting, cast-iron mains

older than 50 years• 200-plus miles of main need replacing• Financial challenge w/ looming water supply

projects

Water Mains• The cost of doing nothing:

• 10% water loss. Could be halved with better mains.

• Reduced service to customers because of failing mains and valves

• Seemingly insurmountable need to replace 200-plus miles of pipe at a cost of $200M

• A dissatisfied citizenry

Current Situation

Police Station• Built in 1963 for 90 employees. Today, SAPD

has 206 employees. • 45,000 square feet. Maxed out space.

Consultant advises 100,000-plus square feet.• Outdated electrical, HVAC, IT systems, elevator• SAPD splintered among several facilities

• Options: Expand and renovate current station, First Financial downtown property, retrofit another existing structure, build elsewhere

Police Station• The cost of doing nothing:

• Estimated cost up to $25 million for new facility.

• Police force unable to work at maximum efficiency = diminished public safety

• Lower officer morale• Increased costs of operating an inefficient

facility• A dissatisfied citizenry

Current situation

Streets• Maintenance budgeto $775K in FY2012o $3.74 million in FY2015o 8-year street maintenance rotation … but we

must stick to the plan.• Street study•High-tech analysis of and maintenance /

reconstruction recommendation for each block of City-maintained roadways

Streets• The cost of doing nothing, a few examples:

• Bell Street = $8.4 million• Glenna Drive = $2.6 million• Main Street = $3.5 million• MLK Boulevard = $2.5 million• Southwest Boulevard = $12.9 million• 29th Street = $5 million • TOTAL = $34.9M (vs. $3.74M maintenance)

PLUS: Reduced safety, accelerated tire wear, vehicle damage, dissatisfied citizens.

The Life of a City Street: Cost ComparisonStreet with Maintenance Plan• Seal coat every 5-7 years at

cost of $2.15 sqyd• Add an application of crack

seal for $5/sqyd • In 25 years, maintenance cost

will have been $15.75 sqyd

• This street can be milled & overlayed for $45 sqyd to extend its life by 10 years.

• Total: $61 sqyd for street life beyond 25 years

Same with No Maintenance Plan• Water infiltrating surface and

undermining road base

• In 25 years, reconstruction necessary at a cost of $140 sqyd

• This street needs reconstruction as base and surface have failed.

• Total:140 sqyd for street life no greater than 25 years

What changed?

What changed?• We lost the foresight that led to City Hall, Foster

Communications Coliseum, the McNease Convention Center and the Hickory Aquifer.

• We made the easy cuts in lean economic times … then never revisited our infrastructure needs.

• We lost our nerve … and didn’t lead.

Moving forward• We must consider the future … and the type of

community we want our children and grandchildren to inherit. What will be our Coliseum or Hickory Aquifer?

• We must talk frankly to taxpayers about what’s needed & how much it will cost. We must give them a clear understanding of our tax base & of the costs / consequences of doing nothing.

• We must be BOLD!

The cost of doing nothing…

Liz Grindstaff, San Angelo Councilwoman SMD 5325.942.8164