The Cost of Doing Nothing A local example. The Cost of Doing Nothing Historical perspective The current situation What changed Moving forward

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City Council

The Cost of Doing NothingA local exampleThe Cost of Doing NothingHistorical perspective

The current situation

What changed

Moving forward

Historical Perspective1928

City Hall5 floors built when only 2 were needed

Included a grand performance space

Renovated in 2012

Still serving the community today

Historical perspective1958

Foster Communications ColiseumBuilt 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 CenterBuilt in 1978

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

New marquee in 2015

Still serving the community today

Historical Perspective1972

Hickory AquiferWater 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 SituationPay me now or pay me later

Current Situation

Water mainsCatastrophic 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 replacementsReplaces 2-3 miles of rusting, cast-iron mains older than 50 years200-plus miles of main need replacingFinancial challenge w/ looming water supply projects

Water MainsThe cost of doing nothing:10% water loss. Could be halved with better mains. Reduced service to customers because of failing mains and valvesSeemingly insurmountable need to replace 200-plus miles of pipe at a cost of $200MA dissatisfied citizenry

Current Situation

Police StationBuilt 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Outdated electrical, HVAC, IT systems, elevatorSAPD splintered among several facilities

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

Police StationThe cost of doing nothing:Estimated cost up to $25 million for new facility.Police force unable to work at maximum efficiency = diminished public safetyLower officer moraleIncreased costs of operating an inefficient facilityA dissatisfied citizenry

Current situation

StreetsMaintenance budget $775K in FY2012 $3.74 million in FY2015 8-year street maintenance rotation but we must stick to the plan.Street studyHigh-tech analysis of and maintenance / reconstruction recommendation for each block of City-maintained roadways

StreetsThe cost of doing nothing, a few examples: Bell Street = $8.4 millionGlenna Drive = $2.6 millionMain Street = $3.5 millionMLK Boulevard = $2.5 millionSouthwest Boulevard = $12.9 million29th 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 PlanSeal coat every 5-7 years at cost of $2.15 sqydAdd 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 yearsSame with No Maintenance PlanWater infiltrating surface and undermining road base

In 25 years, reconstruction necessary at a cost of $140 sqydThis street needs reconstruction as base and surface have failed.Total:140 sqyd for street life no greater than 25 yearsWhat 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 didnt lead.

Moving forwardWe 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 whats 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