Title
Federal Funds Exchange Agreement with the Kansas Department of Transportation (KDOT) for Federal Fiscal Year 2015.
Body
Recommended Action: Approve the 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% 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% loss of funds. Because KDOT is no longer specifying the projects that receive the fund, the Capital Improvement Program specifies which County projects will utilize exchange funds. Actual funding is subject to adjustments to allocated federal funding as they may occur. Funds are received on a reimbursement basis. The agreement covers a total request of $2,360,513.75 in state funds in exchange for an allocation of $2,622,793.06 in federal highway funds.
Alternatives: None.
Financial Considerations: Reimbursements are requested as expenditures are made in accordance with the approved 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. 68-402b.
Policy Considerations: