MEMORANDUM

SUBJECT: Ordinance No. 2006-19-09: An Ordinance Accepting $1.8 Million from the State of Alaska for Borough-wide Road Improvements and Appropriating the Grant to a Road Service Area Capital Project Account

In February 2006, the Road Service Area (RSA) Board identified its priorities for capital improvement projects. The projects were divided into two groups, Group A and Group B. Projects in Group A were to be completed using funds in the Service Area’s FY2006 CIP budget and carryover funds. Any remaining funds would be used for projects listed in Group B. (See RSA Resolution 2006-01 attached hereto.) This ordinance approves and funds the remaining projects recommended by the RSA but not previously approved.

The Borough recently received notification from the Alaska Department of Commerce, Community and Economic Development that funding is available to the Borough for road improvement projects. A legislative grant has been awarded to the Borough in the amount of $1.8 million for borough-wide road upgrades. Upon acceptance and appropriation of the grant, the Service Area intends to use this funding for projects listed under Group B of its resolution. Those projects are:

GROUP B – ROAD NAMES	PROJECT #	REGION/UNIT	TOTAL FOOTAGE
Raven Ln., Eagle Ln.	E3RAV	East, 3	2690
Thunder Rd., Galankin St.	N1THU	North, 1	3030
Ron’s Ave, Eddie’s Way, Jasper Ln., Lynn Ct.	N1RON	North, 1	4225
Round Rd., Koehler Ave.	N4ROU	North, 4	4400
Charlie’s Way, Karen Ave.	N4CHA	North, 4	5300
Palmer Street, Crossman Ridge	S5PAL	South, 5	6475
Juel Ave., Kenaitze Ave., Nielson St.	W1JUE	West, 1	4190
Fairway Ave.	W3FAI	West, 3	5000
Foster Ave., Walker St., Lopez Ave.	C4FOS	Central, 4	7050
Spruce Creek Bridge	E3SPR	East, 3
Moat Way, Excalibur Way, Camelot	E3MOA	East, 3	4000

A shortened hearing date has been requested to allow use of these funds during the 2006 construction season. One of the projects in Group B is the Spruce Creek Bridge project. The Service Area has declared this project as a top priority and has requested it be declared an emergency-funded project. An emergency procurement was issued on June 28, 2006, for McLane Consulting Inc. to perform the engineering, design, contract administration, and inspection services for the Spruce Creek Bridge Project in Seward. Acceptance and appropriation of the $1.8 million by August 15, 2006, would allow the project to be fully funded in an expeditious manner. The other projects approved by this ordinance will be completed through the normal annual CIP process.

It is understood there will be other RSA CIP projects being recommended for approval and funded through the FY2007 RSA CIP budget process.

As of July 1, 2006, the Borough’s cost allocation plan went into effect. The plan allows the Borough to charge a fee for administrative costs for grants and projects. The rate for the administrative costs for FY2007 was set at 3.04 percent, which will be charged against each project.

Attachments: Ordinance, RSA Res. 2006-01, DCCED notification