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November 24, 2008 Item No. 7I <br />Page 2 <br />The Federal funds are administered through the Minnesota Department of Transportation <br />(MnDOT). Before the funds will be released from the Federal government to MnDOT, it is <br />required that an Agreement be in place between the City and MnDOT, whereby the City <br />designates MnDOT to act as its agent in accepting the funds. The agreement is known as <br />an “Agency Delegated Contract Process” Agreement, or DCP Agreement. <br />The DCP Agreement between the City and MnDOT is not project specific. The Agreement <br />will cover both projects listed previously, as well as any future projects for which the City <br />receives Federal funds. <br />MnDOT has checked their records, and they do not have a DCP Agreement with Mounds <br />View on file. Therefore, the Agreement needs to be approved and executed by both <br />parties before Federal funds can be distributed for the upcoming projects. <br />MnDOT has prepared their standard version of the DCP Agreement, and has provided it <br />for consideration by the City. A copy of the Agreement is included with this Staff Report for <br />review. The Agreement number is 90473. <br />Staff has reviewed the Agreement and finds no concern or objection with it. <br />One item worth noting on the Agreement is that the disbursement of Federal funds is <br />different than the disbursement of Minnesota State Aid funds. On a State Aid funded <br />project, the City can request 95% of the total amount of the State Aid Funds upon award of <br />a construction contract. This provides positive cash flow for the City on the project, and <br />allows the City the opportunity to achieve interest income until the funds are expended. <br />However, as stated under Paragraph E of Section I of the DCP Agreement, on the <br />Federally funded project the City must certify and make each partial construction payment <br />to the contractor before the request can be submitted to MnDOT for disbursement of <br />Federal funds. This requires the City to have an interim local funding source for the time <br />period between when payment is made to the contractor and when Federal funds are <br />received. <br />An approved and certified resolution to enter into the DCP Agreement is required as an <br />attachment to the Agreement. MnDOT has provided sample language for use in the <br />resolution.