Title
Federal Fund Exchange Master Agreement with KDOT.
Body
Recommended Action: Approve the Master Agreement and authorize the Chairman to sign.
Sedgwick County participates in a KDOT program to exchange federal funding that is allocated to Sedgwick County for state funds. When exchanging funds, KDOT provides state funds in the amount of 90% of the federal funds. There are fewer restrictions on the use of the state funds and overall the overall cost and time savings that result from the use of state funds is believed to exceed the 10% loss of funds. KDOT periodically updates these standard agreements.
Alternatives:
Financial Considerations: The agreement allows the County to use either the allocated direct funds or exchanged funds depending upon which best suits the needs of the County.
Legal Considerations: The BoCC is authorized to make all contracts in relation to the property and concerns of the County under K.S.A. 19-101 fourth; and to perform such duties as required by law concerning roads under K.S.A. 19-212 Ninth. Under K.S.A. 12-2908, the BoCC may enter into contracts with other cities or townships to perform any governmental service, activity or undertaking that each entity is authorized to perform.
This agreement proposes a 90% exchange rate. Within Addendum No. 2 to the Kellogg / I-235 interchange agreement between KDOT and the County, KDOT has agreed to pay the County at the rate of 100% for the years 2016, 2017, and 2018, for federal-aid funds that pertain to the interchange project. As a result, there is a conflict between the agreements regarding the exchange rate. KDOT has verbally committed to honoring the 100% exchange rate of the project-specific agreement, which KDOT considers to control over the Federal-aid Fund Exchange Master Agreement. KDOT was unwilling to modify the Federal-aid Fund Exchange Master Agreement to reflect how this conflict is resolved.
Policy Considerations: