Memorandum
City of Lawrence
Department of Public Works
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TO: |
Chuck Soules, Public Works Director |
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FROM: |
Shoeb Uddin, City Engineer |
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CC: |
Laura Warner, Ed Mullins, Dave Corliss |
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Date: |
August 25, 2010 |
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RE: |
KDOT Funded Projects – Final Account Summary |
Background
The City of Lawrence routinely receives various State and Federal funding through Kansas Department of Transportation (KDOT) for road improvement projects on City Connecting Links (23rd, Iowa, West 6th) and on other major city streets. Most of these projects are administered by KDOT, and it requires the city to deliver funds to KDOT (before construction begins) for city’s share of the project cost and for all items considered “Non-Participating” by KDOT. Contractor payment requests and change orders are then processed, reviewed and approved by KDOT with concurrence from the city. After the construction is complete, KDOT Finance prepares a Final Accounts Summary of all project costs to determine if the City owes KDOT or vice versa. Unfortunately, this process usually takes years before a project is finally closed out. Following is a list of some of the projects completed within the past 5 to 7 years – as shown in the table below, the final transaction for some of these projects is yet to take place, and as a result, KDOT accounts for these projects are still open. However, city accounts for these projects have already been closed to avoid unnecessary interest payments on bonds. There are some projects where KDOT owes the city, and in other projects, the city owes KDOT.
In Balance, KDOT Owes the City
According to the accounting procedures of KDOT, each account has to be handled / settled independently. City Finance follows similar procedures. As a result, we cannot trade the balance in one project to take care of the deficit in another. In order to reimburse KDOT for projects for which city accounts have been closed, we are requesting authorization to draw funds from the Capital Improvement Reserve or other appropriate sources. If appropriate and directed, funds owed by KDOT can be deposited (upon receipt) to the Capital Improvement Reserve to replenish the proposed drawdown.
ACCOUNT SUMMARY – CITY / KDOT JOINT PROJECTS
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City Project Number |
Location |
Fund Type |
KDOT owes City |
City Owes KDOT |
City account No.
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54GI9S
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Bonded 2003 |
Open |
$20,736.62 |
202-3-3000-6041
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|
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65GI9S
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Bonded 2003 |
Open |
$21,120.73 |
202-3-3000-6041 |
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36P04S
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Bonded 2007 |
$65,063.97 Open |
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301-0000-373-2000 |
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05G05S
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23rd and Harper |
Bonded 2009 |
We recently received $20,184.90 from KDOT Closed |
301-0000-373-2000 |
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61G04C
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19th & LA |
Bonded 2009 |
Final accounting summary is yet to be prepared by KDOT. It is estimated that the City will owe approx $70,000 which is included in 2011 Capital budget. Open |
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27G05S Open |
N. 2nd and Locust |
We will not require any additional city funds for this project. The question is how much there will be left from our $1.0 million STP funds. The left over funds will be transferred to Kasold (Clinton Pkwy to 31st) project, if appropriate. Open |
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2009 KLINK project Closed |
23rd, Ousdahl to Barker |
We have received $200,000.00 this year. Closed |
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Action Request
Authorize staff to draw funds from the Capital Improvement Reserve for the following projects and amounts.
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1. 23rd and Barker (Intersection Improvements): $20,736.62 |
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2. 27th and Iowa (Intersection Improvements): $21,120.73 |
Attachments
KDOT Account Statement – #10-23 U-1847-01 - 23rd & Barker