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HomeMy WebLinkAboutMINUTES - 01241989 - 1.37 1-03'7 TO: BOARD OF SUPERVISORS FROKs J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR DATE: JANUARY 24, 1989 SUBJECT: ADVANCE FUNDS WHEN REQUESTED BY THE PUBLIC WORKS DIRECTOR TO BYRON AIRPORT AGAINST OUTSTANDING FEDERAL AVIATION ADMINISTRATION GRANT REIMBURSEMENTS — BYRON AREA (FUND 140400, ORG. 4824, ACCT. 4670) 4 Specific Request(s) or Recommendation(s) & Background & Justification RECtN MMMED ACTION s AUTHORIZE the County Auditor-Controller to advance funds when requested by the Public Works Director to the Byron Airport Capital Improvement Program against outstanding funds owed the Program by the Federal Aviation Administration (FAA) and the State Division of Aeronautics pursuant to Airport Improvement Project (AIP) No. 3-06-0008-02 . Advanced funds shall bear interest to the County commensurate with current yields on County deposits. FINANCIAL IMPACT: The FAA has approved AIP No. 3-06-0008-02 for $2,673,402 to reimburse the County for land purchases required for the Byron Airport. As properties are • acquired for the Airport, it is necessary for the County to front the purchase money and invoice FAA for reimbursement. It is estimated that the amount of reimbursement outstanding at any one time should not exceed $1, 000,000; nor should the reimbursement period exceed 60 days . The County cost for the advance will be covered by the interest payments. Cont'd on attachment: E yes Signature: Recommendation of County Administrator Recommendation of Board Committee Approve Other: Sicmature(s) s Action of Board ons JAN 24 1989 Approved as Recommended- _ Other Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRU B AND CORRECT COPY OF AN X_ Unanimous (Absent ) ACTION TAKEN AND ENTERED ON THE Ayes: Noes: MINUTES OF THE BOARD OF Absents Abstain: SUPERVISORS ON DATE SHOWN. Orig.Div.-Buchanan Field Airport Attested JAN 24 1989 cc: County Administrator Phil Batchelor, Clerk of the Public Works Director Board of Supervisors Public Works Accounting and County Admi strator Public Works Real Property Auditor-Controller By Aviation Advisory Committee Deputy Clerk Federal Aviation Admin. HEW:dg byron24.t1 y 1 Advance Funds to Byron Airport January 24, 1988 Page 2 REASONS FOR RECONMAATION/BACKGROUND: The Airport Capital Improvement Project has a cash flow problem when the amount of needed expenditures are high and the amount of unpaid claims are also high. The funds advanced by the County will , at all times be secured by the outstanding claims payable by the aforementioned FAA Grant. The funds will only be requested by the Public Works Director when needed. Smaller parcels may be acquired using the local 10% match funds . The larger parcels will likely have to be acquired by borrowing from the General Fund. CONSEQUENCES OF NEGATIVE ACTIONS Failure to receive credits for outstanding claims will preclude timely closing of escrows on properties for which cooperating property owners expect timely payment of funds. This situation adversely affects negotiation with property owners and raises the possibility of having to option property, a costly alternative to direct acquisition.