1. The Cost of Doing Nothing A local example

2. The Cost of Doing Nothing Historical perspective The current situation What changed Moving forward

3. Historical Perspective 1928

4. City Hall 5 floors built when only 2 were needed Included a grand performance space Renovated in 2012 Still serving the community today

5. Historical perspective 1958

6. 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

7. Historical perspective 1978

8. 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

9. Historical Perspective 1972

10. 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

11. Current Situation “Pay me now … or pay me later…”

12. Current Situation

13. 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

14. 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

15. Current Situation

16. 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 Outdated electrical, HVAC, IT systems, elevator SAPD splintered among several facilities Options: Expand and renovate current station, First Financial downtown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

17. 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

18. Current situation

19. Streets Maintenance budget o $775K in FY2012 o $3.74 million in FY2015 o 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

20. 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.

21. The Life of a City Street: Cost Comparison Street 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

22. What changed?

23. 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.

24. 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!

25. The cost of doing nothing… Liz Grindstaff, San Angelo Councilwoman SMD 5 325.942.8164