[Council Communication]  [Attachments]

Council Communication

Title:	Authorization for the City Administrator to Sign and Execute ODOT Agreement No. 21888 - 2003 Fund Exchange Agreement; E. Main Street (Dewey to N. Mountain Avenue) City of Ashland
Dept:	Public Works Department
Date:	July 20, 2004
Submitted By:	Paula Brown
Approved By:	Gino Grimaldi, City Administrator

Synopsis:	The City has participated in the State's federal fund exchange program through the Oregon Department of Transportation for many years. This year staff proposes that the federal funds for the 2003 federal transportation funding allocation go toward the E. Main Street, Dewey Street to N. Mountain Avenue resurfacing project. This is consistent with the Capital Improvement's Program outlined in the budget document.
Recommendation:	It is recommended that City Council authorize the City Administrator to sign and execute ODOT Agreement No. 21888 - 2003 Fund Exchange Agreement; E. Main Street (Dewey to N. Mountain Avenue) City of Ashland obligating Federal Funds in the amount of $107,969 in exchange for State funds of $101,491.
Fiscal Impact:	Through the federal fund exchange program, the City in essence looses 6% of cash for a benefit of being allowed to use the state's system of project management. The gain from a contract flexibility and construction management stand point is well worth the minor reduction in funds. This project is in the Capital Improvements Program for FY05 construction. It is one of four projects in the 2005 Street Projects and is in design. It is estimated that the total construction will be approximately $125,000. The street fund will provide the difference between the fund exchange and the total cost.
Background:	The ODOT Fund Exchange Program is an extension of the Federal Surface Transportation Program (STP). Cities with population in excess of 5000 people receive an annual allocation of funds based upon actual population. The State provides these funds at a reduced rate (94% of the federal allocation) for City projects. By using the funds through the State's exchange program, the funds can be used for a wider variety of projects, and work can be completed by City crews or contracted directly through the City. The State's requirements and controls are not as stringent as Federal controls. ODOT has approved the project prospectus and found the project eligible for the fund exchange program. Prior year's fund exchange dollars have been used to fund the reconstruction of Union Street (FFY 98), reconstruction of Sherman Street (FFY 97) and Wightman Street Realignment (FFY 96). The past four year's of allocation (FFY 99 through FFY 02) have been dedicated to the Water Street Bridge replacement project now scheduled for construction start in May 2005. With the City now a part of the Metropolitan Planning Organization, we will no longer receive a direct federal allocation after this year's project. We have however, negotiated with the MPO to protect our street project interests through at least 2008 and perhaps longer as there are prior funding commitments that extend past 2008 for the original MPO cities. At that time, the City will need to compete for street projects with the entire MPO.
Attachments:	•  ODOT Agreement No. 21888 - 2003 Fund Exchange Agreement; E. Main Street (Dewey to N. Mountain Avenue) City of Ashland

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