6.3 East Magnolia Improvements FundingCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
2/4/2013 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 6
BY:
ITEM PUBLIC WORKS FINAL APPROVAL:
NO: 3
Page 1 BY: Daniel R. Stack BY:
ITEM:
Authorizing the City Manager to sign a request from the Kansas Department of Transportation (KDOT)
to exchange the 2012 federal funds for the East Magnolia Improvements, City Project No. 10 -2808.
BACKGROUND:
On February 3, 2011, KDOT and City staff conducted a City Commission Study Session to discuss a
new federal funds exchange program available to Local Public Agencies (LPA). On September 12,
2011 and February 27, 2012, the City Commission authorized the City Manager to sign the requests
to exchange 2011 and 2012 federal funds for the East Magnolia Improvements. Attached is a
summary of funds exchanged and reimbursed thus far.
Many LPAs find the rules and requirements of the federal transportation dollars they receive annually
to be overly restrictive, cumbersome, and costly to administer. Although these funds help cities and
counties construct major projects, they often fall short of helping them address many important
problem areas in their transportation systems. This new program was established to provide the LPAs
the option to "sell" their federal funds to KDOT in exchange for state dollars. This voluntary program
benefits the local agency by allowing them to build their projects with less KDOT /Federal Highway
Administration oversight in exchange for 10% of the reimbursement.
This request is for $246,045.96 of federal dollars now available (April 1, 2012 to September 30, 2012)
since the previous 2012 request. KDOT will follow this action by sending the City an agreement for
the Mayor's signature. These annual allotments will continue to be applied to East Magnolia thru the
end of 2013.
FISCAL NOTE:
For this exchange program, State funds are paid on a reimbursement basis as the LPA incurs costs.
The total project cost is estimated at around $3.4 million. The approved Capital Improvement Program
includes selling bonds to finance the balance of the project costs estimated at $2,140,000.
CONFORMANCE WITH STRATEGIC PLAN:
Goal #3: The City will provide the highest quality of services, consistent with governing body direction,
available resources and staff commitment to quality.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff recommends the City Commission authorize the City Manager to sign the request from KDOT to
exchange 2012 federal funds for the East Magnolia Improvements, City Project No. 10 -2808.
Attachments: Exchange request form
Previous blue sheet from 9/12/2011 and request from 2/27/12
Summary of funds available and reimbursed
ass as
Department of Transportation
KANSAS DEPARTMENT OF TRANSPORTATION
BUREAU OF LOCAL PROJECTS
REQUEST TO EXCHANGE FEDERAL FUNDS
County /City:
Federal Funds to Be Exchanged:
Funds to be banked for 2012:
' alma
$ 114lo,oLi S .qfo
$ 4
The Secretary of Transportation is hereby requested to make available to the city/county state funds in exchange
for the city's /county's allotment of federal funds in the amount stated above.
We understand that the amount of state funds provided by the Secretary will be calculated at an exchange rate of
$0.90 of state funds per dollar of federal funds. We further understand that the state funds must be used for
transportation project(s) in accordance with the program guidelines and will be paid on a reimbursement basis as
the city /county incurs costs on the project(s).
Proposed project(s) to use the state funds are listed on the attached sheets.
Contact Person: bani Q- Title: C
Address: Soo w, hs1.� / PO_ Box '73% Sa lin4, K 5 (o?402- 0140
Phone: 0 %5Z09 - $ ri 't 5 Email:
Signature*
jcx 50 A A . Gcn&
Typed or Printed Name
Title
2 -- 11- 13
Date
dan.5- tack(dD5al1`nGL y"
*Tire representative signing this request must be authorized by law to bind the city/county to an agreement
T WORKS
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REQUEST TO EXCHANGE FEDERAL FUNDS Project List: (Attach as many sheets as needed)
Project Location: 1E. pla9nolia Road Ohio if1r. 'to (100" ¢ate
Scope of Work: Sur -F* c i n q Seedi n g
Estimated Construction Start Date:
Estimated Costs: (Only show those costs for which you will request reimbursement)
Design $
Right of Way $
Utility Adjustments $ r
Construction $ '1.17319 9�- t�l.25
Inspection $
Total Estimated Costs $ 2 5
Project Location:
Scope of Work:
Estimated Construction Start Date:
Estimated Costs: (Only show those costs for which you will request reimbursement)
Design $
Right of Way $
Utility Adjustments $
Construction $
Inspection
Total Estimated Costs
WQRKS
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CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/12/2011 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 6
BY:
ITEM FINAL APPROVAL:
NO: 4
Page 1 BY: Daniel R. Stack BY:
ITEM:
Authorize the City Manager to sign the request from the Kansas Department of Transportation
(KDOT) to exchange federal funds for the East Magnolia Improvements, City Project No. 10 -2808.
BACKGROUND:
On August 26, 2009, KDOT informed the City of Salina that $1.4 million had been authorized for the
East Magnolia Improvements, subject to federal funding being available. The project will involve new
and wider pavement, a center median and landscaping east of Huntington Road, underground storm
sewers, a ten foot bicycle /pedestrian path on the south side, a five foot sidewalk on the north side,
and continuous street - lighting.
On February 3, 2011, KDOT and City staff conducted a City Commission Study Session to discuss a
new funding program available to Local Public Agencies (LPA). Many LPAs find the rules and
requirements of the federal transportation dollars they receive annually to be overly restrictive,
cumbersome, and costly to administer. Although these funds help cities and counties construct major
projects, they often fall short of helping them address many important problem areas in their
transportation systems. This new program has been established to provide the LPAs the option to
"sell" their federal funds to KDOT in exchange for state dollars, which allows the agency to tailor
projects to better meet the local needs. This is a voluntary program which benefits the local agency
by allowing them to build their projects with less KDOT /Federal Highway Administration oversight in
exchange for 10% of the reirribursement. For this project, the City will give up $140,000. KDOT
benefits by getting an additional $140,000 to spend on their own federally funded projects, while
Salina gets more flexibility in the use of the funds.
City staff believes this 10% loss in federal dollars would be easily made up by the Construction
Engineering costs typical for a KDOT administered project. KDOT figures construction engineering
(CE) at about 15% of the construction costs. For this $4.0 million construction project, the CE costs
would amount to $600,000 or 7,500 hours of inspection at $80 /hour. We anticipate this project will
take approximately 240 working days (a little more than one construction season), so 7,500 hours
equates to 31 hours of inspection each day, or 3 to 4 people full -time. KDOT informed us they would
typically staff a project like East Magnolia with 2 to 3 people a day and 3 to 4 when placing concrete,
which includes one person at the concrete plant.
Due to current work loads for City inspectors, staff does not anticipate being able to dedicate more
than one person full -time to the East Magnolia Improvements and would have to hire at least two
consultants full -time to assist. Two consultants for 240 days at 8 hours /day at $80 /hour = $307,200,
which is more than the $140,000 the City will give up by entering this project into the exchange
program. This exchange would not make sense if the project was a fully funded KDOT 80/20
percentage, similar to past projects for the City where all inspection costs would be reimbursed.
The following table illustrates some of the past CE costs for City /KDOT /federally funded projects with
South Ninth Street being the exception. South Ninth Street Phase IV (2009 -2010) contained no
federal funds and was inspected by one full -time City staff inspector with art -time assistance from
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/12/2011 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: 6
BY:
ITEM FINAL APPROVAL:
NO: 4
Page 2 BY: Daniel R. Stack BY:
another City inspector and an outside testing company. City staff believes this level of CE could be
completed again on the East Magnolia project to still produce a quality project at a reduced cost.
FISCAL NOTE:
The 2010 -2014 Capital Improvement Program includes selling bonds to finance the balance of the
project costs above the $1.4 million. These costs include the consultant design fee, construction
services, right -of -way and easement acquisition, utility relocations, testing, Financing and construction
costs. The total project cost is estimated at around $4.5 million. For the exchange program, State
funds would be paid on a reimbursement basis as the LPA incurs costs.
CONFORMANCE WITH STRATEGIC PLAN:
Goal #3: The City will provide the highest quality of services, consistent with governing body direction,
available resources and staff commitment to quality.
Goal #6: The City will work to make Salina a city that has connectivity physically and socially.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for Commission consideration:
Authorize the City Manager to sign the request from KDOT to exchange federal funds for the
East Magnolia Improvements, City Project No. 10 -2808, reducing the KDOT commitment for
the project from $1.4 million to $1.26 million.
2. Continue the funding arrangement for the East Magnolia project as currently planned,
maintaining the KDOT commitment to the project at $1.4 million.
3. Provide another option or give further direction to staff.
Staff recommends Option 1.
Attachments: Request to exchange federal funds
Request for reimbursement
Federal funds exchange program pamphlet
Construction
Construction
CE % of
Project
Project No. Cost
Engineering
Construction
North Broadway Corridor (Pacific to North Street)
03 -1409 $2,149,000
$437,000
20.3%
Broadway Hageman Intersection
05 -1538 $ 374,000
$ 44,000
11.8%
South Ohio (Schilling to Magnolia)
03 -1402 $2,591,000
$361,000
13.9%
South Ninth Street Phase 4 (Riffel to Belmont)
06 -1579 $4,700,000
$314,000"
6.7%
"Includes $50,000 in contract testing and $264,000
for in -kind City staff costs which were calculated using 3300 hours
(actual time spent) at $80 /hour (same as consultant average pay per hour for comparison)
FISCAL NOTE:
The 2010 -2014 Capital Improvement Program includes selling bonds to finance the balance of the
project costs above the $1.4 million. These costs include the consultant design fee, construction
services, right -of -way and easement acquisition, utility relocations, testing, Financing and construction
costs. The total project cost is estimated at around $4.5 million. For the exchange program, State
funds would be paid on a reimbursement basis as the LPA incurs costs.
CONFORMANCE WITH STRATEGIC PLAN:
Goal #3: The City will provide the highest quality of services, consistent with governing body direction,
available resources and staff commitment to quality.
Goal #6: The City will work to make Salina a city that has connectivity physically and socially.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for Commission consideration:
Authorize the City Manager to sign the request from KDOT to exchange federal funds for the
East Magnolia Improvements, City Project No. 10 -2808, reducing the KDOT commitment for
the project from $1.4 million to $1.26 million.
2. Continue the funding arrangement for the East Magnolia project as currently planned,
maintaining the KDOT commitment to the project at $1.4 million.
3. Provide another option or give further direction to staff.
Staff recommends Option 1.
Attachments: Request to exchange federal funds
Request for reimbursement
Federal funds exchange program pamphlet
ansas
Department of Transportation
KANSAS DEPARTMENTi OF TRANSPORTATION
BUREAU OF LOCAL PROJECTS
REQUEST TO EXCHANGE FEDERAL FUNDS
County/City:
Federal Funds to Be Exchanged:
Funds to be banked for 2012:
s 2a3 4161.46
•❑
The Secretary of Transportation is hereby requested to make available to the city /county state funds in exchange
for the city's/county's allotment of federal funds in the amount stated above.
We understand that the amount of state funds provided, by the Secretary will be calculated at an exchange rate of
$0.90 of state funds per dollar of federal funds. We further understand that the state funds must be used for
transportation project(s) in accordance with the program guidelines and will be paid on a reimbursement basis as
the city /county incurs costs on the project(s).
Proposed project(s) to use the state funds are listed on the attached sheets.
Contact Person: 9, St'aG4C Title: City � na ine r
Address: Sao W . AS h QD Bo X 7 3 (c -i w 111 q t k S 6`7'F02 -073%
Phone: C7�) 3oR - r.72.S Email: dan. Stctck(a saIina.n
Typed or Printed Nance
C I � y riana a �
Title
Date
*The representative signing this request mast be authorized by law to bind the city /county to an agreement
T woxyti•Tatl(NV�p1A RKS i41.:tl.MWi
� � Yr • Ra��l�i
REQUEST TO EXCHANGE FEDERAL FUNDS Project List: (Attach as many sheets as needed)
Project Location: E . Mggnol;o► 9,•ad (01,%'o 5-r. to GM" eask
Scope of Work: &,Qcunq SurfaoA q , Sepii na
Estimated Construction Start Date: l.�l zot'�,
Estimated Costs: (Only show those costs for which you will request reimbursement)
Design $
Right of Way $
Utility Adjustments $
Construction $ 2 827 , 1 S
Inspection $
Total Estimated Costs $ 82 7.14 1. z S
Project Location:
Scope of Work:
Estimated Construction Start Date:
Estimated Costs: (Only show those costs for which you will request reimbursement)
Design $
Right of Way $
Utility Adjustments $
Construction $
Inspection $
Total Estimated Costs $
WORKS
City of Salina Federal Fund Exchange
Exchange Amount
90%
Reimbursed
Funds
Available
2011 $544,688.15
$490,219.33
$490,219.33
$0.00
2012 $449,235.44
$404,311.90
$0.00
$404,311.90
2013 $0.00
$0.00
$0.00
$404,311.90