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Historically, we have charged MOT to the project because the project gets the BENEFIT of the work <br />done, even though there are little to no increased costs due to the capital project for MOT time worked <br />on a project. Over time, the additional revenue received based on MOT to projects has resulted in a <br />contribution to the balance available in the fund, and in theory all rates are slightly lower because of <br />this revenue stream. <br /> <br />So the question now is, do we charge the Airport capital project for MOT hours? They are now <br />considered grant ineligible, and it is a significant amount of money ($19,500). <br /> <br />Options: <br />-charge the capital project and the grant the entire amount of the MOT and get grant reimbursement <br />for it. (Finance likely won’t like this, and it’s not consistent with what the PSF/grant project team <br />decided.) <br />-charge the capital project the MOT and have other Airport revenues pay for it (my understanding is <br />that you may not want to do this, because Airport leadership could argue they should go to outside firms <br />for this type of work, since it will be grant eligible) <br />-“write-off” the amount charged to the project and reduce revenues in 631 and expenses to the capital <br />project. <br />-reach an agreement where the Airport and PWE agree to some type of split on who is paying the costs. <br /> <br />I didn’t give you a recommendation, because I’d like to know what your goals are first. In any event, I <br />think we can accommodate them. <br /> <br />Thanks! <br />Susan <br /> <br />_____________________________________________ <br />From: SCHOENING Mark A <br />Sent: Thursday, November 04, 2010 9:03 AM <br />To: SMITH Tammy D; WEIXELMAN Susan E <br />Subject: FW: GJN4625 APT Runway <br /> <br /> <br />Tammy, <br /> <br />Thanks for pulling this information together. <br /> <br />Susan, <br /> <br />I am meeting with Tim today and will share the #’s. Its seems that we have the choice as to whether or not to charge a <br />project MOT. I understand that it is part of the model, but wanted your thoughts on waiving MOT on this project and <br />perhaps other federal-aid projects. <br /> <br /> <br /> <br /> <br />Mark Schoening, P.E. <br /> <br />City Engineer <br /> <br />City of Eugene <br />3 <br /> <br />