Title
Supplemental Agreement No. 1 to the Federal Funds Exchange Agreement with the Kansas Department of Transportation (KDOT) for Federal Fiscal Year 2013 (second distribution).
Body
Recommended Action: Approve the supplemental agreement and authorize the Chairman to sign.
Sedgwick County receives an annual allocation of Federal highway funds from KDOT based on a formula that is prescribed in State statutes. Counties have the option to receive State funds in exchange for these Federal funds. When using the exchange, the County receives 90 percent of the allocated amount of Federal funds. When using State funds, there are savings to the County in design costs, construction costs (use of more practical design standards) and administrative costs. Project development timelines are also much shorter. Public Works recommends the use of State funds in lieu of Federal funds whenever it appears that the cost savings are projected to be equal to or higher than the 10 percent loss of funds.
On July 10, 2013, the Board approved the original agreement and allocated funding to two projects in the current Capital Improvement Program. This initial distribution resulted in $842,507.23 in State funds for County projects. After receiving notice from the Federal Highway Administration of the final allocation of Federal funds to Kansas, KDOT calculated the second and final distribution of funds to counties for FFY 2013. At this point in the Federal fiscal year, the only option for the funds is to bank them for use in a future year. The supplemental agreement revises the total available Federal funds for 2013 from $936,119.14 to $1,881,278.14. If exchanged for State funds, the total available would be revised from $842,507.23 to $1,693,150.33.
Alternatives: None
Financial Considerations: If approved, expenditure of the additional funds will have to be authorized by the Board of County Commissioners through the Capital Improvement Program at a future date.
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