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Ending the Cycle of Decay: Rebuilding Infrastructure Through Management

CityLinks Partnership between Veliko Turnovo, Bulgaria, and Golden, Colorado

Veliko Turnovo, Bulgaria

Golden, Colorado

C a s e s t u dyC a s e s t u dy

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Ending the Cycle of Decay: Rebuilding Infrastructure Through Management �

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IntroductionThe situation for Bulgarian local governments mirrors the problems of many local governments throughout the world. Weak local econo-mies, limited local revenue collection, and insufficient funding from the central government have left cities strapped for resources. Infrastructure maintenance—for roads, public buildings, parks, and water and sewer lines—is often the first item eliminated as local governments try to bal-ance their budgets.

When Rumen Rashev was elected as mayor of Veliko Turnovo, he resolved to end this cycle of neglect and decay. Deteriorating streets and sidewalks were frustrating residents and deterring people from visiting the community despite its advantageous geographical location, breathtaking scenery, and rich history as Bulgaria’s old capital. More important, the mayor saw what citizens saw: from their point of view, the deteriorating infrastructure was an indication that the local government was ineffective and incompetent. Fixing streets, he thought, could help the local tourist economy and restore the trust of local citizens in their government. As a newly elected mayor with a reformist agenda, Mayor Rashev was soon recognized by USAID Bulgaria as an advocate for change and targeted as a candidate for participation in Bulgaria’s CityLinks Program.

ICMA selected Golden, Colorado, to partner with Veliko Turnovo. Golden also had struggled with the impact of deferred mainte-nance on its crumbling streets and how to pay the bill—millions of dollars—to repair and rebuild its decaying infrastructure. As in Veliko Turnovo, Golden’s winter climate conspired against the city’s roads. During warm spells in the winter, water would seep into the smallest

Like so many cities throughout the world, Veliko Turnovo, Bulgaria, was plagued by crumbling streets. The city found itself in a never-ending financial spiral in which the need for repairs far outpaced its financial abilities. There appeared to be no escape—until a CityLinks partnership was formed with Golden, Colorado. The partner-ship not only provided Veliko Turnovo with engineering technicians and analytical methods to quantify the problem, but it also gave to the city council and citizens the information they needed to make and support policy decisions that will enable Veliko Turnovo to find and implement a viable solution. Following the financial plan developed with the help of its partner city will help Veliko Turnovo focus attention on street maintenance needs and avoid the need for more costly renovation of roads in the future, saving the city millions of dollars in the long run.

Veliko Turnovo Facts

Location: North-Central Bulgaria, 160 miles east of Sofia Population: 101,000 CityLinks Partner: Golden, Colorado Partnership Dates: 2000–2004


� Ending the Cycle of Decay: Rebuilding Infrastructure Through Management

cracks in the streets and sidewalks, waiting for the next cold front to freeze and expand, silently exploding the pavement. This exacerbated the need for repairs and cut short the life expectancy of the streets, increasing the overall costs of infrastructure maintenance and replace-ment. Indeed, Golden had shared Veliko Turnovo’s pain—and shared its roadmap to success!

The StrategyWorking together, Veliko Turnovo and Golden created a preventive main-tenance program that evaluates street conditions and assigns maintenance treatments timed to extend the life of the street at the lowest cost. The new plan rejects conventional wisdom, which says that the worst streets should be repaired first. Instead, Veliko Turnovo decided to defer recon-struction of the city’s worst streets and implement a new standard of maintaining the most vulnerable streets first—a much more cost-effective maintenance strategy.

Establishing the GoalAt an early meeting, the partners agreed that their goal was simple and straightforward: to develop a methodology in Veliko Turnovo that would allow the city to have better streets. To accomplish this goal, the partner-ship identified two main tasks:

• Create an inventory of existing streets and their condition

• Identify investments needed to maintain municipal streets.

The information generated during the project was then used to develop a financial plan to fund the needed infrastructure maintenance, as well as to generate support from the community for these plans.

The CityLinks Model

The CityLinks methodology is flexible and is tailored to meet the needs of each par-ticipant. In this partnership, meetings were held between Veliko Turnovo and Golden practitioners, alternating between each city. At the initial meeting in Veliko Turnovo, the Golden team saw firsthand the extent of the street infrastructure problem. Subsequent meetings in Golden and Veliko Turnovo allowed practitioners from both teams to work side-by-side to adapt the methodology to Veliko Turnovo’s needs.

After Golden had assessed Veliko Turnovo’s technical capabilities, the team trained Veliko Turnovo staff in how to use satellite digital mapping technologies and Microsoft Excel spreadsheets to inventory the condition of the street infrastructure. The part-ners worked together to identify priorities for investments, to develop a financial plan that took into account not only the objective analysis of data but also the political context, and to overcome opposition from citizens used to a traditional approach to street maintenance, in which the worst streets were given priority for repair.



Infrastructure InventoryArmed with knowledge gleaned from an initial meeting in Golden, the Veliko Turnovo staff assembled existing paper and digital maps of the city and began to inventory paved street conditions. Each street was divided into segments, and each segment was evaluated on three criteria: the condition of the surface, the base condition, and drainage flow lines for each segment.1 Veliko Turnovo staff members entered this information into a simple Microsoft Excel spreadsheet, grading each component on a five-point scale (from “1” for the segments in the worst condition, to “5” for the best).

“There really wasn’t anything that unique about the problems Veliko Turnovo faced. Many cities underfund preventative mainte-nance. Golden certainly did. The lessons we learned in Golden were very relevant in Veliko Turnovo. Having traveled the road before, I think we were able to guide them past some of the problems we had encountered—they could benefit not only from our knowledge, but from our mistakes as well.”

Dan Hartman, City Engineer, Golden, Colorado

This first step of conducting the street inventory is the most basic and critical. Many cities stop their inventory here, once they have developed a spreadsheet illustrating the evaluation of street conditions. Even the most basic street inventory can provide essential information to staff and political decision makers and remains a very popular and effective meth-odology among cities that do not have access to geographic information system (GIS) or global positioning system (GPS) technologies.

In reviewing Veliko Turnovo’s existing mapping and technical equip-ment, however, Golden recognized that Veliko Turnovo had the capac-ity to go further in its inventory and analysis. Golden demonstrated how to use a GPS to inventory and assess roads and other infrastruc-ture. Working with Golden, Veliko Turnovo’s team went to multiple points on the ground and used satellite technology to ascertain the length and location of paved road segments. This greatly expedited the process of updating the digital maps used to inventory Veliko Turnovo’s streets and sidewalks.2



In follow-up meetings conducted in Golden, Veliko Turnovo’s engineers learned how to use an AutoCAD program for infrastructure manage-ment that Golden had developed. Together, engineers from Golden and Veliko Turnovo adapted the technology for conditions in Veliko Turnovo, replacing criteria for and references to asphalt streets built in the 1960s (Golden’s) with those apropos to cobblestone roads built in the twelfth century (as in Veliko Turnovo), for example. Detailed work sessions also were held on GPS/GIS mapping programs and the specific evaluation of Veliko Turnovo’s roads.

Identifying InvestmentsThe next step required analyzing the computerized data on Veliko Turnovo’s streets to determine needs and prioritize actions. Central to the analysis was a “pavement deterioration curve” that Golden had used to guide its infrastructure investment (see the illustration on the next page). The partners used the methodology to identify the optimal time to invest funds for street maintenance.

The basic concept behind the pavement deterioration curve methodol-ogy is a financial life-cycle analysis. After looking at the current state of the infrastructure and obtaining information about the costs of repairs and replacement, analysts identify costs at different stages of the street’s life. To build a new road requires a large, one-time, lump-sum payment. Money invested in maintaining and repairing a street over its lifetime can extend its life by years, deferring the need for total—and expensive—

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01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

75% of the time

40% quality drop

40% drop in quality

$1.00 Here

12%time

Will cost $5.00 Here

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Pavement Deterioration Curve



reconstruction. The principle is simple: Spend a little money to keep good streets in good shape, instead of spending a lot to rehabilitate deteriorated streets into good streets.

Once the team had used the methodology to assess where investments might prove to be most beneficial, it turned attention to developing a financial plan for implementing its strategy and engaging public and pri-vate entities to begin to implement a viable approach.

Developing a Financial PlanWorking with its Golden partners, Veliko Turnovo developed a long-term financial plan for repairing and maintaining its street and sidewalk infrastructure. Using Golden’s software program, the city identified the optimal timing of needed repairs and how much they would cost. The expenditure estimates totaled $4 to 5 million: $323,000 for annual replacement needs; $1.8 million to bring the entire system up to mini-mum standards; and $2.2 million for surfacing and repaving over the next five years. After reviewing the city’s resources, Veliko Turnovo agreed to target existing funds toward routine street maintenance to extend the life of streets where possible, and to seek funding from the central govern-ment and international donors to help with the more expensive recon-struction needs that had resulted from years of neglect.

“Veliko Turnovo used its grasp of the political climate to craft a financial plan that would work. City leaders knew that the city would have a better chance to get outside funding for new streets and reconstruction activities than for routine maintenance. This factored into their decision to target city funds toward street maintenance—even though it went against the traditional way of doing things.”

Dan Hartman, City Engineer, Golden, Colorado

This financial plan went beyond the data analysis and engineers’ recommendations and incorporated insights into the political reality in which Veliko Turnovo operated. In Veliko Turnovo’s experience, external money could often be found to fund new infrastructure but not to main-tain existing infrastructure. State elected officials and international donors alike were often lured by the idea of a ribbon-cutting ceremony announc-ing a new facility or road; supporting the city’s efforts in sealing cracks



in the street with hot tar afforded far fewer photo opportunities. This understanding of the problem contributed to Veliko Turnovo’s decision to spend its resources on the less glamorous job of maintenance and to seek other resources for reconstruction and renewal.

Public and Political InvolvementThe work of Veliko Turnovo and Golden was professional, and the analysis was commendable. But one obstacle loomed large: Gaining the approval of citizens and the elected officials who represent them. While the methodology seems irrefutable, one basic premise had to be rejected if this new way of doing things was to be implemented. Citizens and elected officials had to understand that in the new analysis, worst is not first. Residents of the city’s worst street—a characterization now quantifi-able through the use of the new data—perhaps naturally expected it to be repaired first. Now, they heard that it was not first in line for repairs—that in fact it was not even scheduled for repairs, because Veliko Turnovo planned to first address streets that were in far better condition. Many citizens found this concept difficult to fathom.

Since Golden had faced much of the same skepticism when it had presented its street maintenance plan ten years earlier, the Golden team was equipped to help Veliko Turnovo deal with the backlash. The partners worked together to prepare a presentation that explained Veliko Turnovo’s decision to focus on ongoing maintenance needs. The pre-sentation clearly demonstrated that spending four to five million dollars over the next five years for preventative maintenance would save an estimated $25 million in reconstruction costs. The partners presented their findings to the mayor, city council members, and other political leaders, as well as to representatives of the business community and the general public.

After fully vetting the proposal, the various constituencies of Veliko Turnovo agreed with the recommendation to invest first in the streets that could be preserved at minimal cost. The city council appreci-ated the technical information on the timing of maintenance and the cost estimates, and the public came to understand that this “new” approach would afford the city an opportunity to provide the best streets possible at the least expense.

Results and SustainabilityUsing their newfound knowledge and skills, Veliko Turnovo’s leaders and staff have undertaken the largest maintenance and capital improve-ment program ever financed by the city. The city continues to carry out its infrastructure management plan based on the needs identified in the public infrastructure inventory and analysis process. Staffers are using the methodology and skills introduced by Golden to continue updating the plan. Continuing to use the new approach is expected to save Veliko



Turnovo millions of dollars per year in infrastructure reconstruction costs.Veliko Turnovo also has used the information in its financial plan to

successfully apply for assistance from Biochim bank (Bank of Austria Credit Anstalt). A $3.35 million loan will enable the city to reconstruct most of its streets and to implement the rest of its infrastructure manage-ment plan. The repair work began in the fall of 2003.

Veliko Turnovo has mentored Plovdiv, providing training and assis-tance as Plovdiv used Golden’s methodology and process to address its street infrastructure needs.

“The program has been successful on many fronts. The Bulgarians have gained knowl-edge and skills from our planning, develop-ment, and engineering expertise, and our team has gotten exposure to professional challenges that they couldn’t get locally. I think everyone involved has benefited tremen-dously from this partnership.”

Mike Bestor, City Manager, Golden, Colorado

After suffering devastating floods in 2000, Veliko Turnovo turned atten-tion to how the principles introduced by Golden—sound engineering analysis with prudent financial planning—could be applied to stormwater and groundwater system maintenance to mitigate such flooding in the future. Following the principles previously established, Veliko Turnovo prepared cost estimates for the construction of new water detention basins, developed drainage plans to link the new basins into the city’s stormwater drainage system, and developed an irrigation plan for uti-lization of the groundwater collected by the detention basins. By link-ing sound engineering analysis with prudent financial planning, Veliko Turnovo engineers were able to present elected officials and citizens alike a comprehensive plan for investing in new stormwater improvements that, while expensive, would avoid more costly responses to future flood-ing within the city.

Lessons Learned and SharedThe preventive street maintenance program initiated in Veliko Turnovo has resonated throughout Bulgaria. As part of a Bulgaria USAID-funded program, the city of Plovdiv (population 360,000) partnered with Veliko Turnovo for in-country replication of its street maintenance program. Golden, Colorado, prepared a training program on preventive street


10 Ending the Cycle of Decay: Rebuilding Infrastructure Through Management

maintenance that was presented to twenty-five representatives from Plovdiv’s six districts.

Following the training, the Plovdiv team, in consultation with Veliko Turnovo, measured the condition of its roads and developed a timeline for street and sidewalk improvement and preventive maintenance. The city used a GIS system to prepare a map showing which streets were in serious disrepair and which required little attention. Following the model used in Veliko Turnovo, the Plovdiv team then used a Microsoft Excel spreadsheet to show the length, pavement condition, and repair costs for each road segment. Veliko Turnovo showed Plovdiv representatives how to link the inventory with digital maps of the town, using models from Golden and AutoCAD software.

As in Veliko Turnovo, Plovdiv reached out to explain its infrastructure management plan to the citizenry. Following an enthusiastic response when the plan was presented at a public hearing, Plovdiv’s city council approved the infrastructure and financial management plan that staff had recommended, and municipal staff began preparations for a bond issue, which will ensure funding for the implementation of the infrastructure maintenance plan.

As a new convert to the program, Plovdiv has agreed to mentor at least ten more cities as they implement the preventive maintenance program.

Results and Sustainability

• Using what it has learned from Golden, Colorado, Veliko Turnovo has embarked on the largest maintenance and capital improvement program ever financed by the city.

• Veliko Turnovo is routinely updating the infrastructure management plan, which has become a critical element of the city’s financial program. Following the plan will save the city the millions of dollars it would have cost to reconstruct its streets in the years ahead.

• Veliko Turnovo used the information in its financial plan to successfully apply for a $3.35 million bank loan that will enable the city to reconstruct most of its deteriorating streets and to implement the rest of the infrastructure manage-ment plan.

• Veliko Turnovo is currently working to apply the process and methodology to address its stormwater and groundwater system maintenance needs. The city has applied the Golden models to finalize the cost estimates as part of the conceptual design for the allocation of floodwater basins, has developed preliminary drainage plans for the selected basins to protect infrastructure, and has developed a draft irrigation plan for utilization of the groundwater collected by the dewatering system.

Ending the Cycle of Decay: Rebuilding Infrastructure Through Management 11


ConclusionThe “you can pay me now or you can pay me later” principle is easy to understand, yet often difficult to implement. Veliko Turnovo is not alone in deferring maintenance and then seeking funding from international donors or the central government for infrastructure reconstruction. Mayor Rashev understood that he had to find a way out—a way to find answers, not fix blame. Working with Golden, Colorado, Veliko Turnovo has estab-lished an infrastructure maintenance and funding process that can be used by local governments throughout the world to invest wisely in their infrastructure needs.

Endnotes1. Drainage under the street is critical to long-term street preservation, because it allows

groundwater from under the street and water that leaks through the street to drain away. Water that accumulates under the street can freeze and heave the pavement above, creat-ing a pothole.

2. The appearance of three Americans with GPS tracking equipment and a satellite dish gave Bulgarian customs officials some pause. But after some persuasion by Bulgarian partners, the group, and its equipment, were allowed into the country.

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