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... CITY OF AT LANT A DEPARTMENT GF FINANCE ATLANTA, GEO RGIA 30303 July 15 , 1969 TO: Jay Fountain FROM: General Staff Y SUBJECT: wes t End Redeve~opmen t Area , Proj ect GA. R- 90 The fol l owi ng is a r eview of the ch a nge s inc orp or at 0d in Amend a tory Ap plicat ion No. l f or the West End Urb:n Renewa l Area a s reques ted i n your memo of June 20, 1969: (1) Wi t h refe r enc e to t he 34 pa rc e ls determined not t o be fea s i bl e for r ehab ilit a t i on , bu t wh ich wi l l be add ed t o a cqui sit ion: t her e i s no breakdown provided i n the narra tive st atement a s to the c ost of acq ui r ing th e s e pnrce l s . As a r esul t , t h is po rt ion of t he summar y cannot be verified. ( 2) Simil ar l y, t he indivi dual parc e l cost s (wh i ch will be de l eted fr om Acqui s it ion Expenses ) are not l isted in the nar r a t ive stat emen t , su t h e se ca nno t be checked against origina l ly pr ojec ted c osts of a cquis i tion. (3) The reus e de si gnati ons of fo ur parcel s will have no affec t on cos t of proj ec~ s. (4 ) Stree t wi dening act i vities being undertaken by t he City on Gordon Street are no t rep orted i n the nar rat i ve st ateme n t. From a c onvers a tio n with Mr . J i m Hunter of Street Engineering , it was l earned that the cost of the widening ac tivi t ies is estimated at $90 , 000 . 00 . I n the Project Co st Estimate and Financ ing Plan (l ine A-20), the revised est i mate for nonca s h loca l gra n ts-in-aid increased by $2 70 ,7 34 of whi ch thi s $90 , 000 . 00 wou l d make up appro ximately one-third . However , we hav e no s up porting sched ules with whi ch to check these fig ures and thus cann ot detennine how much , i f any , of thIB increase is appl i cable t o Gordon St reet . (5 ) With r e gard t o the inc reased int erest co sts , there appears t o be an error in the narrative stat eme nt ac c ompanin g th e Pr o ject Expenditures Bucige t. Comr,ut ation of t otal interest cost from Harch 31, 1969, indicat es cota l int e rest of $624,500 and a net increase of $49 3,400.00 . When the unencumbered bal anc e of $131, 44 1. 00 i s deducted from the t ota l interest cost of $624,500.00, th e ne t increase of $493,059.00, which differs from their computation by $341.00. In addition, the intere st to DHUD is increased by $10,653. 00 with the only explanation being a correction for a small overr un; it app ears tha t more information should be disclosed by t he Housing Authority with referenc e to this increase. (It is s omewhat frightening to note tha t the extension in time will cost the City over cae- ha lf million dolla~s ~n interest.) �.. Memo - Jay Fountain General Staff l'age Two July 15, 1969 _., (6) The requested increase in administrative costs is also confusing. It is stated that the present costs in this line item are ccmputP.d at the rate of $19, 800.00 per month. Based on this rate, they arrive at a total cost (from April, 1969, to the completion date of July, 1971--a period of 28 _months) of $L,43,L,00.00. With an unencumbered balance of $193,505, a net adjustment (increase ) of $360,900 is requested. Based on the total cost as shown by AHA , the correct ne t adjustment would be $249 ,395; however, $19,800 per month for 28 months gives a total cost of $554,400 which when reduced by the unencumbered balance requires a net adjustment of $360,895--a difference of $5 from their request o · Their ind icated total cost would cover a period of only 22.4 months, based on the rate given. This does not conform to the extension period of ApriJ 1, 1969, through July, 1971. Although two-thirds of the Surmnary of Changes could not be checked for verification due to _the l ack of information from AHA, it is hoped that the above findin gs will be helpful to you. �