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Memorandum <br /> Date: January 14,- 1999 <br /> To: Steve Sarkozy,city Manager <br /> From: Karl Keel,public works Director <br /> fie: I TE -INCENTIVE FOR 1999 PROJECT <br /> Each year the Metro Area receives transportation funding from the federal government. These <br /> dollars are distributed through a number of ceding programs and help to implement most of <br /> the major transportation projects in the region. Traditionally,while technically available to all <br /> transportation providers,these funds were primarily used to improve the state highway <br /> system. In 1991,with the advent of ITEA,more monies were allocated to local jurisdictions <br /> and more agencies became involved in developing projects that met the federal funding <br /> guidelines. Unfortunately,the new transportation players are not as successful at <br /> implementing federal projects. In many instances,projects have not met funding schedules <br /> and funding has been forfeited. To date,lain/loot has been able to use the forfeited funds and <br /> no federal dollars have been lost to the region. <br /> In 1998,ISTEA was replaced by TEA21 -a new federal program that increases the amount <br /> available for transportation projects. Combined with our inability to implement projects,this <br /> increase in funding has resulted in a projected surplus of approximately 0,000,000. In an <br /> effort to reduce tWs surplus,the region is proposing to offer incentives to encourage projects <br /> to be implemented in 1999. A proposal is currently being forwarded to guarantee 80 percent <br /> federal construction funding for all approved projects that schedule bid lettings before <br /> December 31, 1999. <br /> On November 23, 1998, the council approved the acceleration of two federally funded projects <br /> that could benefit from the proposed regional incentive. The current and potential funding is <br /> detailed below. <br /> Current Funding with <br /> P ro'ect Funding Incentive <br /> Earpenteur Construction -Federal $700,000 $936,000 <br /> Avenue Construction -city $470sOOO $234,000 <br /> treetscape Engineering-City $2309000 $2303,000 <br /> Total $I-A 00 $1,400,000 <br /> Dale Street/ Construction -Federal $632,800 $6323800 <br /> Waterworks construction -city $1589200 $1589200 <br /> Trail Engineering-City $1589200 $1589200 <br /> Total $9499200 $9499200 <br />