Title
Supplemental Agreement No. 1 to KDOT Agreement 188-16 for the Federal Funds Exchange Program.
Body
Recommended Action: Approve the supplemental agreement and authorize the Chairman to sign.
The Kansas Department of Transportation (KDOT) allocates a portion of federal highway funds directly to counties. Counties have the option to exchange the federal funds for state funds. The primary advantages to using state funds are that they can be used for a wider variety of road and bridge projects than federal funds and that project costs are reduced due to elimination of the burden of a number of federal requirements.
The supplemental agreement will allow KDOT to adjust the reimbursement rate annually. The exchange rate through FFY 2017 was 90%. For FFY 2018 the statewide rate has been set at 75%. Under the County’s agreement with KDOT for the I-235/US-54 interchange, the County’s exchange rate for 2018 will be 100%. KDOT cannot process the 2018 reimbursement until the supplemental agreement is approved.
Alternatives: None.
Financial Considerations: KDOT allocates approximately $2.6M in federal funds to Sedgwick County each year. If exchanged, it results in approximately $1.95M in state funds. Funds are budgeted to road and bridge work through the CIP.
Legal Considerations: The County is authorized to enter into contracts with the Secretary of Transportation to participate in the benefits of federal aid funds under K.S.A. 68-402(b).
Policy Considerations: None