CITY COMMISSION AGENDA ITEM

Department:	Public Works		Commission Meeting Date:  April 4, 2017
Staff Contact:	Charles F. Soules, Director of Public Works
Recommendations/Options/Action Requested:
Authorize the Mayor to sign the Federal Fund Exchange Agreement with the Kansas Department of Transportation.
Executive Summary:		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. Use of this federal allocation is limited to transportation improvement projects on arterial and collector streets. These funds are not eligible for maintenance projects (i.e. mill and overlay).  KDOT offers a Federal Fund Exchange Program through which municipalities/counties can exchange their Federal dollars for State funds at a 90 percent “exchange rate.” Federally funded projects include additional requirements for items such as planning, design, property acquisition, materials specified, construction and documentation. These additional requirements increase the cost of Federally funded projects by 20 percent compared to projects developed and bid by the City. 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. In the past the City has used these funds for projects such as 23^rd & Iowa and 15^th & Iowa that were eligible for other Federal Funds (i.e. for safety improvements). In 2016 the City used the funds to match the Sunflower grant for extension of the “Lawrence Loop” and for the improvements to 19th & Ousdahl.  The City has been granted $1,009,057.52 in Federal funding eligible for the KDOT Fund Exchange program this year. At the 90 percent exchange rate, the City would receive $908,151.76. Staff recommends entering the fund exchange agreement with KDOT and using this year’s allocation to help fund the construction of 19th & Naismith intersection.
Strategic Plan Critical Success Factor		Innovative Infrastructure and Asset Management Core Services
Fiscal Impact (Amount/Source):		Utilizing the KDOT Federal Fund Exchange would result in the City exchanging, with KDOT, eligible Federal funding of $1,009,057.52 at a rate of $0.90 per $1.00 with KDOT. Under the agreement, the City would receive $908,151.76 for use at the City’s discretion. If approved, the funds would be allocated to pay a portion of the City’s cost to reconstruction the intersection of 19^th and Naismith, part of CIP# PW17E10.
Attachments:		KDOT letter dated 3/2/17 KDOT Federal Exchange Funds Agreement COL Federal Fund Exchange Spreadsheet

Reviewed By: (for CMO use only)

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