Don’t be intimidated: The “Washington State Local Improvement District Manual” is lengthy (114 pages), but fairly easy to read. “What’s a LID?” “How do you do one?” “Why are they doing this or that?” Should be all in this document; Charles and Robert Macaulay, of Macaulay and Associates (Ocean Shores Street LID; proposed Illahee-Oyehut Sewer LID) are given credit as contributors:

LID manual

“This is … (local woman) I thank you for putting it on the front page about the $330,000 breakdown. I am outraged! I hope that the city put it out to bid. I found it outrageous that Charles Macaulay gets $250 per hour which is more than a surgeon. makes . . . How can someone make more in an hour than a poor widow makes in a month?”

At the last City Council meeting, councilors voted (Garland French cast the lone “no” vote) to approve $329,230 for Macaulay and Associates to do a Final Benefit/Proportionate Assessment Study and Report for the Street LID.
From page 30 of the Nov. 23 City Council agenda, breakdown of the estimated costs:
Charles Macaulay will be paid $250 per hour, for an estimated 90 hours of “Analysis review and consultation.” Robert Macaulay will be paid $225 per hour, for an estimated 480 hours, for “Project supervision, property inspections, individual analysis and analysis review, report completion and review, meetings and consultation.”
Kelly Hao will be paid $175 per hour for 480 hours of “Individual property analysis assistance, report preparation assistance and spreadsheet compilation.”
Paul Bird, $175 per hour for 320 hours “Analysis of commercial property including hotels/motels and condominiums.”
Ashley Zacharia, “appraiser trainee,” is to be paid $90 per hour for 320 hours of “Market research, spreadsheet compilation and report preparation assistance.”

Total hours: 1,690.

How did this happen? For two years, Ocean Shores was seemingly cruising through its three-year, city-wide Street LID program. On multiple occasions, council and citizens were told “we’re on track” by Ken Lanfear, the Public Works Director and de facto LID project manager. Then, earlier this year, Lanfear made a cryptic comment that “interim interest was not properly considered,” and Mayor Dean Bunkers told council an $8 million line of credit would be needed to finish the project. Two bond anticipation notes, voted for by council in 2007 and 2008, added up to a total of nearly $32 million.

But, as was made clear in presentations to council (attended by Lanfear, who was part of the presentations), this wasn’t really $32 million to spend: a total of nearly $4.5 million was set aside in two capitalized interest accounts. So there was only $27.5 million to put into the actual project. (Monday night, Lanfear is scheduled to ask council for another $330,000 for a “Final Special Benefit/Proportionate Assessment Study“; it is not clear if this was part of the original estimate, or will be another addition to the LID.)

Additionally, the original estimate presented by Lanfear at a Town Hall in March of 2007 shows a total of approximately $31.8 million (this was used as the base figure to estimate how much businesses, residents and lot owners would have to pay). Again, it is clear that $31.8 million is not a total to be paid to contractors. It includes several million dollars in interest and administrative costs.

So, clearly, Lanfear should have known, right from the start of the project and throughout, that he had “only” $27 million or so to pay contractors. But he apparently close to that total in only two years.

So why weren’t council members, businesses and citizens informed about this until the project was teeterting on bankruptcy?

Monday night, the Director of Public Works, Ken Lanfear,  will be asking City Council for around $330,000 for a Street LID assessment study. The final cost of the Street LID has not been announced, but it long allow blew past the original estimate, of $31.8 million. Earlier this year, Mayor Dean Bunkers asked council for, and received, permission to open an $8 million line of credit, as the $32 million (split between two Bond Anticipation Notes) was nearly gone. More money was needed, Lanfear, the Street LID’s de facto project manager, told council in May, because “interim interest was not properly considered.”

On the City’s Web site, and also here, is a list of Questions and Answers from the March 2007 Town Hall meeting regarding the Street LID. Also below, an overview of the Street LID package, which includes $2.4 million for financing, as part of the $31.7 million total.

Some excerpts:
In answer to Question No. 3, re inspectors:
“The construction work will be primarily inspected by City personnel . . .”
In answer to Question No. 9, re authorized use of LID funds:
“Interim financing, either short-term bonds or a line of credit, will be used for constructions as the work proceeds . . .”
In answer to Question No. 11, “What guarantee do citizens have that the estimate is close to the actual amount that will be charged?’
“Staff have worked with contractors, received input from the State, and have based construction estimates on recent similar-work costs, with adjustments for inflation, location, material cost increases, etc.”
In answer to Question 14, “Will there be a special department set aside for the LID money, and will that department be audited every year?”
“Yes. Every City department is audited every year.”
Question No. 27: “What will be the true cost?”
“Our best estimate, looking at inflation, material costs, etc., is the approximate $31,800,000 indicated in presentation.”

Please enjoy your drive along . . . freshly paved Pt. Brown Avenue!

pt brown paved web

from the city’s web site:

There will be no paving today.

The Contractor will be placing some shoulder rock.

Pavement Repair: Pt. Brown Avenue – Southbound Lanes

(Between the City Gates and the Roundabout Project Area)

If you have any questions about the paving project, please contact the LID Clerk at 289-2754

Monday, September 28, 2009
Paving:
- Ocean Shores Boulevard NW
(Between Pt. Brown Avenue and Ensign Avenue)
- Chance a la Mer Beach Access / Parking Lot
(Between the Shilo and Cloud Nine)
Pavement Repair:
- Pt. Brown Avenue – Southbound Lanes*
(Between the City Gates and the Roundabout Project Area)
*The southbound lanes of Pt. Brown Avenue are scheduled
to be paved on Thursday, October 1st.
If you have any questions about the paving project,
please contact the LID Clerk at 289-2754.

Wednesday, September 23, 2009
Paving: Anchor Avenue NW; Barnacle Street NW; Capstan Street NW; Ocean Court NW
Pulverization: Ocean Shores Boulevard NW – Northbound and Southbound Lanes
(Between Capstan Street and Ensign Avenue)

Don’t know about the logic of doing the two main, commercial arteries of Pt. Brown from the city gates to the roundabout and “hotel row” of Ocean Shores Blvd. at the same time, but it’s continuing this week:
Monday, September 21, 2009
Paving:

- Ocean Shores Boulevard NW – Northbound Lanes
(Between Pt. Brown Avenue and Capstan Street)
- Pt. Brown Avenue – Northbound Lanes
(Between City Gates and Roundabout Project Area)
If you have any questions about the paving project,
please contact the LID Clerk at 289-2754.