Memorandum

City of Lawrence

Public Works

TO:	Thomas M. Markus, City Manager
FROM:	Charles F. Soules, Director of Public Works
CC:	Diane Stoddard, Casey Toomay, Bryan Kidney, David Cronin
DATE:	April 15, 2016
RE:	Federal Fund Exchange

Background

Lawrence is allocated approximately $1 million annually from the U.S. Department of Transportation (USDOT) which is administered through Kansas Department of Transportation (KDOT) for transportation.  This federal allocation is limited to transportation improvement projects on arterial and collector streets.  These funds are not for maintenance projects i.e. mill and overlay. 

KDOT has developed a Federal Fund Exchange Program (see attached program guidelines) where municipalities/counties can exchange the federal dollars for state funds at a ninety percent (90%) “exchange rate.”

Federally funded projects can cost significantly more due to strict requirements for everything from planning, design, property acquisition, materials specified, construction and documentation.  Federally funded projects can easily cost twenty percent (20%) more than a project that the city develops and bids.

In the past we have used these funds for projects such as 23^rd & Iowa and 15^th & Iowa that have received other federal funds (i.e. for safety improvements).

The Fund Exchange Program also provides communities with more flexibility to use the funds for other projects such as maintenance, pavement marking and sidewalk/ADA ramp construction.

The City has available:

$125,375.23	- from 2015	- Left over from the 15^th & Iowa project
$1,031.965.61	- From 2016
$1,157,340.84	Total Federal Funds Available

At ninety percent (90%) exchange rate, the city would receive $1,041,606.76.

Staff would recommend that we use $200,000 (approximately 20%) for sidewalk improvements and the remainder would fund the City’s costs for the 19^th & Ousdahl Road intersection.

Action

Authorize the Mayor to sign the Federal Fund Exchange Agreement with the Kansas Department of Transportation.