Archuleta County

1
Archuleta County

• Roads To Recovery
• 600 p.m.
• April 29, 2009

2
Roads To Recovery

• Agenda
• Part I 4 Year Road Capital Plan (600 p.m.)
• Part II Recovery (700 p.m.)
• Part III Open Forum (800 p.m.)

3
Roads To Recovery

• Overview
• Part I Four Year Capital Plan
• Archuleta County will present our blue print
  to begin rebuilding roads and infrastructure.
  This Plan will outline Phase 1, Phase 2, and
  Phase 3 that is planned to begin in Summer 2009.

4
Roads To Recovery

• Overview
• Part II Recovery
• The 2nd part of the meeting will focus on our
  local economy. According to a study by Region 9,
  75 of new jobs are created by existing
  businesses. The BoCC and staff will present
  strategies designed to assist our local economy.

5
Roads To Recovery

• Overview
• Part III Open Forum
• The floor will be open to the public and local
  business owners to provide ideas, suggestions,
  and input as to what can be done to help
  stimulate the local economy.
• We Want To Hear From You!

6
Roads To Recovery

• Part I
• Four Year Capital Improvement Plan
• Fix The Roads, Dang It!

7
Roads To Recovery

• 4 Year Capital Plan
• Road conditions have perpetually been a leading
  issue for the citizens of Archuleta County.
• County staff, in collaboration with the Board of
  County Commissioners (BoCC), have developed a
  proposed 4 Year Plan to start funneling
  meaningful amounts of funding towards road
  capital improvements.
• The proposed plan involves 3 phases that begins
  in Summer 2009 and continues into 2012 and
  beyond.

8
Roads To Recovery
9
Roads To Recovery

• 4 Year Capital Plan
• Phase 1 has two approaches The first approach
  is the initiation of a major road capital project
  in the rehabilitation of Park Ave.
• Park Ave. is a project that has been waiting for
  at least 2 years. The initial scope for Park Ave.
  was from N. Pagosa to Carlee Place, but was
  extended to Piedra Ave. via Cloud Cap.

10
Roads To Recovery

• 4 Year Capital Plan
• The Park Ave. Project is anticipated to begin
  construction in mid-June and completed by
  October, depending on weather and the Traffic
  Plan.
• It hasnt been bid yet, but is estimated to cost
  2.0 to 3.0 million.
• A request for permission to advertise for bids is
  expected to occur at the May 5th BoCC meeting.

11
Roads To Recovery

• 4 Year Capital Plan
• The second approach for 2009 is to move forward
  with a Lease / Purchase Option Agreement.
• A Lease / Purchase Program is a tool to acquire
  funding in a relatively quick process.
• In many ways, a Lease / Purchase is similar to a
  home mortgage with a loan of money in exchange
  for collateral and a defined source of repayment
  income.

12
Roads To Recovery

• 4 Year Capital Plan
• The proposed terms of the Lease / Purchase Option
  Agreement are as follows
• - 5 million funding, with 4 million in
  proceeds
• - Payoff of an existing equipment lease with
  Wells Fargo for road equipment with an existing
  balance of 931,345 and a debt service of
  383,000 annually.
• - 15 Year Term
• - 5.7 Interest Rate
• - A new annual debt service payment 484,000 for
  the 5 million funding and the existing
  equipment lease.
• - Pledging of RCI sales tax revenue as the
  repayment source (30 of existing sales tax
  stream) with a County asset as collateral,
  specifically the Courthouse building.

13
Roads To Recovery

• 4 Year Capital Plan
• By ballot measure, half of the County portion of
  the sales tax, in perpetuity, is dedicated to
  road capital improvement and is kept in a
  dedicated account, also know as the RCI Fund.
• In the next slide, the Countys portion of the
  sales tax revenue is portrayed over the past 6
  years. Weve recently seen, and are projecting a
  sales tax decline, but it has remained relatively
  stable.

14
Roads To Recovery
15
(No Transcript)
16
Roads To Recovery

• Why Do We Think This Is A Good Idea?
• Risk is very low as it obligates only 30 of the
  RCI revenue stream and leaves about 70 for other
  RCI purposes.
• Cost of materials will go up.
• Opportunity for a timely injection of capital
  into the community.

17
Roads To Recovery

• Why Do We Think This Is A Good Idea?
• Allows for the effective planning of 2010
  projects.
• Presents an opportunity to consolidate debt
  service for the funding plus the existing
  equipment lease.
• Enhance the perception of residents and visitors
  alike.

18
Roads To Recovery

• Phase 2 has three approaches
• First approach is to engage the community in the
  summer/fall of 2009 to determine future
  priorities and allocation of the 4.2 million of
  available funding for the 2010 construction
  season.
• Second approach is to complete projects to
  further inject capital and enhancements to the
  community.
• Third, after demonstrating credibility and
  ability to execute on projects, a possible ballot
  measure in November 2010 for continued road
  improvements in 2011 and beyond.

19
Roads To Recovery

• What About 1A Funding?
• At first we thought about 1A funds too, but the
  intent of 1A was for maintenance.
• We decided that we would leave the 1A funding
  separated from the capital programs to continue
  the maintenance of the existing, and hopefully
  new, roadways.

20
Roads To Recovery

• Part II
• Recovery For the Community
• What Can The County Do To Help The Local
  Economy?

21
Roads To Recovery

• Recovery
• According to a study by Region 9 Economic
  Development, 75 of new jobs are created by
  existing businesses.
• Consequently, the more help we can provide the
  local businesses, the more benefit they can
  provide to the community.
• The County is very interested in doing what it
  can for local businesses.

22
Roads To Recovery

• Recovery
• What has the County done recently, or is doing
  now?
• - CR 975 (800K) Local vendor
• - Arboles Substation (400K) Local vendor
• - Gravel Purchases (201K) Local vendor
• - Trucking for Gravel (140K) Local vendors
• - Park Ave Engineering Construction
  Management (150K) Local vendor
• - Park Ave Construction (2.0M - 3.0M
  Hopefully a local vendor!

23
Roads To Recovery

• Recovery
• - Juanita Bridge (1.4M) Crews housed in
  Pagosa
• - Phase I Parallel Taxiway (5M) Crews housed
  in Pagosa
• - The total County net payroll is 4.5 million
  that goes directly into the community. If the
  statistic of a 1 circulating 7 times is true,
  then the contribution is 31.5 million, less
  leakage.
• - Although not ascertained, a significant amount
  of supplies services are purchased locally.
• - BoCC recently implemented a 10 local
  preference for non-capital goods or services.

24
Roads To Recovery

• Recovery
• What Else Can We Do?
• Continue to strengthen the organization to build
  confidence and credibility that becomes accepted
  in the community and beyond.
• Implement development policies that are clear,
  transparent, and predictable.
• Institute time frames for planning and building
  that ensures the above.
• Continue to implement policies, codes, and/or
  procedures that safeguard the health, safety ,
  and welfare of the community that also makes this
  a community of choice for current and future
  residents.

25
Roads To Recovery

• Part III
• Open Forum
• What Do You Think
• And
• How Can We Help?