6.3 East Magnolia Improvement Federal Funds ExchangeCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
8/19/2013 4:00 P.M.
AGENDA SECTION 6 ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO: BY: tl;,-
PUBLIC WORKS
ITEM 3 FINAL APPROVAL:
NO:
Page 1 BY: Daniel R. Stack BY:
ITEM: Resolution No. 13 -7040
1. Authorize the Mayor to sign an agreement with the Kansas Department of Transportation
(KDOT) to exchange federal funds for the East Magnolia Improvements.
2. Authorize the City Manager to sign a request from KDOT to exchange 2013 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. On February 3, 2011,
KDOT and City staff conducted a City Commission Study Session to discuss this new federal funds
exchange program (90/10 split). On September 12, 2011, February 27, 2012, February 4, 2013, and
April 1, 2013 the City Commission authorized the City Manager to sign the requests to exchange
2011, 2012, and 2013 federal funds for the East Magnolia Improvements. Attached is a summary of
funds exchanged and reimbursed thus far.
Many Local Public Agencies (LPA) 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.
The agreement pertains to the 2013 allotment of $209,143.44 (October 1, 2012 to March 31, 2013) of
federal funds to be applied to this project. Similar agreements have been presented for the Mayor's
signature for past year allotments. The attached agreement details the terms of the arrangement.
The agreement has been reviewed and approved by the City Attorney.
The current request is for $252,664.53 of federal dollars now available (April 1, 2013 to September
30, 2013) for federal fiscal year 2013. 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
through the end of 2013.
FISCAL NOTE:
For this exchange program, State funds are paid on a reimbursement basis as the Local Public
Agencies (LPA) incurs costs. The total project cost at this time is $3,499,958. The approved Capital
Improvement Program includes selling bonds to finance the balance of the project costs of
$2,239,958.
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.
AGENDA SECTION
NO:
ITEM
NO:
Page 2
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
8/19/2013 4:00 P.M.
ORIGINATING DEPARTMENT
PUBLIC WORKS
BY: Daniel R. Stack
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
BY:
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 and recommends Option 1:
1. Approve Resolution 13 -7040 authorizing the Mayor to sign an agreement with the KDOT to
exchange federal funds and authorizing the City Manager to sign the request from KDOT to
exchange 2013 federal funds for the East Magnolia Improvements, City Project No. 10 -2808.
2. Provide another option or give further direction to staff.
Attachments: Agreement (October 1, 2012 to March 31, 2013 funds)
Signed Request to Exchange Federal Funds
2013 Exchange request form (April 1, 2013 to September 30, 2013 funds)
Previous blue sheet from 9/12/2011
Summary of funds available and reimbursed
PROJECT NO. 85 U- 0077 -13
FUND EXCHANGE
CITY OF SALINA, KANSAS
AGREEMENT
Agreement No. 136 -13
This Agreement is between MICHAEL S. KING, Secretary of Transportation, Kansas
Department of Transportation (KDOT) (the "Secretary ") and the CITY OF SALINA, KANSAS (the
"City ").
RECITALS:
A. Secretary has authorized a Federal Fund Exchange Program under which local units of
government may exchange some or all of the Federal Funds allotment by KDOT to the local
unit in a specific federal fiscal year for State Funds allocated to Secretary.
B. City desires to exchange all or a portion of City's annual allotment of Federal Funds for
State Funds at the Exchange Rate or to bank all or a portion of its annual allotment, such
amount to be used in the future for either a Federal -Aid Project or exchanged for State
Funds at the Exchange Rate.
C. Secretary and City are empowered by the laws of Kansas to enter into agreements incident
to the financing, construction, and maintenance of city roads utilizing federal or state funds.
NOW, THEREFORE, the Parties agree as follows:
ARTICLE I
DEFINITIONS:
As used in this Agreement, the capitalized terms below have the following meanings:
1. "Agreement" means this written document, including all attachments and exhibits,
evidencing the legally binding terms and conditions of the agreement between the Parties.
2. "City" means the City of Salina, Kansas.
3. "Effective Date" means the date this Agreement is signed by the Secretary or his designee.
4 "Exchange Rate" means the exchange of Federal Funds allotment for State Funds at a rate
of ninety percent (90 %) of State Funds for one hundred percent (100 %) of local federal
obligation authority for costs incurred pursuant to this Agreement, on a reimbursement
basis.
5. "Federal Funds" means federal -aid transportation funds, including Surface Transportation
Program funds, for use on state and local federal -aid transportation projects.
City - Federal Fund Exchange Rev. 03/13 1
Agreement No. 136 -13
6. "KDOT" means the Kansas Department of Transportation, an agency of the state of Kansas,
with its principal place of business located at 700 SW Harrison Street, Topeka, KS, 66603-
3745.
7. "Parties" means the Secretary and KDOT, individually and collectively, and the City.
8. "Secretary" means Michael S. King, in his official capacity as Secretary of Transportation
of the state of Kansas, and his successors.
9. "State Funds" means State of Kansas transportation funds.
ARTICLE II
TERMS OF AGREEMENT:
1. Secretary Authorization. Secretary is authorized by City to take such steps as are deemed
by Secretary to be necessary or advisable for the purpose of securing the benefits of the
current Federal -Aid Transportation Act for this exchange.
2. Incorporation of Program Application. City has submitted a program application for this
Federal Fund exchange, which is hereby incorporated into and made a part of this
Agreement for all purposes.
3. Exchange of Funds.
(a) When the City requests to use the banked funds for a Federal -Aid Project, the
Secretary will apply one hundred percent (100 %) of the requested amount to said
project, up to $209,143.44 in Federal Funds.
(b) When the City requests to use the exchanged or banked funds pursuant to the Federal
Fund Exchange Program, the following terms will apply to the exchange:
(i) City authorizes Secretary to retain and use $209,143.44 of City's annual
allotment of Federal Funds for federal fiscal year 2013 in exchange for State
Funds at the Exchange Rate.
(ii) Secretary shall reimburse City, with State Funds, for one hundred percent
(100 %) of costs incurred pursuant to this Agreement, up to $188,229.10. All
costs incurred in excess of the fund exchange amount will be the sole
responsibility of the City.
(iii) Any State Funds exchanged pursuant to this Agreement may be carried over
in the next federal fiscal year by City.
City- Federal Fund Exchange Rev. 03/13 2
Agreement No. 136 -13
(iv) City understands that Secretary may use the retained Federal funds
exchanged by City for any federally eligible purpose or project within the
State.
(v) The Secretary will make partial payments to City for amounts not less than
$1,000 and no more frequently than monthly. Such payments will be made
after receipt of proper billing showing costs paid by City and any
reimbursement form required by KDOT.
4. Limitations on Use of State Funds.
(a) City shall not deposit the exchanged State Funds into the operating budget for
the City.
(b) City shall use the State Funds exchanged pursuant to this Agreement for:
(i) specific road and bridge projects, as pre- approved by the Secretary,
which are eligible under KDOT's Federal Fund Exchange Guidelines,
including but not limited to roadway construction, reconstruction or
rehabilitation, pavement preservation programs, bridge construction,
replacement, rehabilitation, repair and removal, construction of low
water crossing, safety improvement programs; and
(ii) for all phases of the pre- approved road and bridge project including,
but not limited to preliminary engineering, right of way acquisition,
utility relocation, construction and inspection.
(c) Upon completion of the road or bridge project, City shall notify Secretary and
allow the Secretary to participate in a final review of the road or bridge
project. Reviews by the Secretary are not done for the benefit of City or its
contractors, or agents, or other political subdivision, or the traveling public.
The Secretary makes no representation, express or implied warranty to any
person or entity concerning the adequacy or accuracy of the design plans,
specifications, estimates, surveys, and any necessary investigations or
studies, including, but not limited to, environmental, hydraulic, and
geological investigations or studies for the Project, or any other work
performed by City.
5. Availability of State Funds. The total dollars exchanged under this Agreement are
contingent upon the availability of State funds. If, in the judgment of Secretary, sufficient
State Funds are not appropriated to continue the function performed in this Agreement,
Secretary may terminate this Agreement without further notice. Secretary will not be
responsible to City for any reduction in State Funds.
6. Availability of Federal Funds. The total dollars exchanged under this Agreement are also
contingent upon the availability of Federal funds. If, due to Congressional funding
City - Federal Fund Exchange Rev. 03/13 3
Agreement No. 136 -13
restrictions, sufficient Federal funds have not been allocated to City, Secretary shall
exchange funds in the amount available.
7. Audit. City will participate and cooperate with Secretary in an audit which will occur either
annually or by project. City shall make its records and books available to representatives of
Secretary for audit for a period of five (5) years after date of final payment under this
Agreement. If any such audits reveal payments have been made with State Funds to the City
for items considered non - participating, City shall promptly reimburse Secretary for such
items upon notification by Secretary.
8. Compliance with Federal and State Laws. City shall comply with all applicable federal,
state, and local laws, regulations, executive orders, and ordinances governing the projects
undertaken pursuant to this Agreement.
9. Right of Way Acquisition. All right of way acquisition for the project shall be done in
compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 as amended by the Surface Transportation and Uniform Relocation Assistance
Act of 1987, and administrative regulations contained in 49 C.F.R. Part 24, entitled Uniform
Relocation Assistance and Real Property Ac uisition for Federal and Fedcrally Assisted
Programs.
10. Legal Authority. City shall adopt all necessary ordinances and /or resolutions and take such
administrative or legal steps as may be required to give full effect to the terms of this
Agreement.
11. Indemnification. To the extent permitted by law, City agrees to defend, indemnify, hold
harmless, and save Secretary and his or her authorized representatives from any and all
costs, liabilities, expenses, suits, judgments, damages to persons or property or claims of any
nature whatsoever arising out of or in connection with the provisions or performance of this
Agreement by City or City's employees.
ARTICLE III
GENERAL PROVISIONS:
Civil Rights Act. The "Special Attachment No. 1," pertaining to the implementation of the
Civil Rights Act of 1964, is attached and made a part of this Agreement.
2. Contractual Provisions. The Provisions found in Contractual Provisions Attachment (Form
DA -146a, Rev. 06 -12), which is attached hereto, are hereby incorporated in this contract and
made a part thereof.
3. Binding Agreement. This Agreement and all contracts entered into under the provisions of
this Agreement shall be binding upon Secretary and City and their successors in office.
4. No Third Party Beneficiaries. No third party beneficiaries are intended to be created by
City- Federal Fund Exchange Rev. 03/13 4
Agreement No. 135 -13
this Agreement, nog- do the parties herein authorize anyone not a party to this Agreement to
maintain a suit for damages pursuant to the terms or provisions of this Agreement.
5. Headings. The captions of the various articles and sections of this Agreement are for
convenience and ease of reference only, and do not alter the terms and conditions of any part
or parts of this Agreement.
6. Effective Date. This Agreement will become effective as of the date signed by Secretary or
his designee.
IN WITNESS WHEREOF the Parties have caused this Agreement to be signed by their
duly authorized officers as of the Effective Date.
►a"Nof. 9
CITY OF SALINA, KANSAS
CITY CLERK (Date) MAYOR
(SEAL)
Kansas Department of Transportation
Michael S. King, Secretary of Transportation
LE
Jerome T. Younger, F.E. (Date)
Deputy Secretary and
State Transportation Engineer
City - Federal Fund FAchanue Rev. 03113 5
Kansas
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:
Salina
209,143.44
$ 0
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: Daniel R. Stack, P.E. Title: City Engineer
Address:
300 W. Ash Street, P.O. Box 736, Salina, KS 67402 -0736
Phone: (785) 309 -5725
Sign ire
Jason A. Gage
Typed or Printed Name
City Manager
Title
3 -21 -13
Date
Email: Dan.Stack @Salina.org
*The representative signing this request must be authorized by law to bind the city /county to an agreement.
WORKS
REQUEST TO EXCHANGE FEDERAL FUNDS Project List: (Attach as many sheets as needed)
Project Location: E. Magnolia Road (Ohio Street to 600' east of the levee)
Scope of Work: _ Grading, surfacing, seeding
Estimated Construction Start Date: April 2012
Estimated Costs: (Only show those costs for which you will request reimbursement)
Design $ 0
Right of Way $ 0
Utility Adjustments $ 0
Construction $2,827,947.25
Inspection $ 0
Total Estimated Costs $ 2,827,947.25
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 $.
TWORKS
• � x
Kansas
KANSAS DEPARTMENT OF TRANSPORTATION
BUREAU OF LOCAL PROJECTS
REQUEST TO EXCHANGE FEDERAL FUNDS
County/City:
Federal Funds to Be Exchanged:
Estimated Year of Reimbursement (if Banked)
Salina
$252,664.53
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).
Contact Person: Daniel R. Stack, P.E. Title: City Engineer
Address: 300 W. Ash Street, P.O. Box 736, Salina, KS 67402 -0736
Phone: (785) 309 -5725 Email: Dan.Stack @Salina.org
Signature*
Jason A. Gage
Typed or Printed Name
City Manager
Title
8 -19 -13
Date
*The representative signing this request must be authorized by law to bind the city/county to an agreement.
TWORKS
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 reimbursement. 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 part -time assistance from
AGENDA SECTION
NO: 6
ITEM
NO:
Page 2
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/12/2011 4:00 P.M.
ORIGINATING DEPARTMENT:
BY: Daniel R. Stack
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
C4
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
City of Salina Federal Fund Exchange
Exchange
90%
Reimbursed
Funds Available
Amount
2011 $544,688.15
$490,219.34
$490,219.34
$0.00
2012 $449,235.44
$404,311.90
$404,311.90
$0.00
2013 $461,807.97
$415,627.17
$0.00
$415,627.17