Federal Fund Exchange
Training
What is the
Federal Fund Exchange?
This is a voluntary program in which a
Local Public Agency can trade its
federal obligation authority with KDOT
or another local agency in exchange for
state funds. State funds are paid on a
reimbursement basis as the LPA incurs
costs.
What Are the Benefits of the
Fund Exchange?
• Eliminates costly and time-consuming
requirements of federal-aid projects.
– Reduced environmental documentation
– Plans development to meet local needs
– Inspection to meet local needs
– Avoid many restrictive federal provisions
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Buy America
Davis-Bacon
DBE
Pipe Policy
What Are the Benefits of the
Fund Exchange?
• More flexibility in selection of projects
– Projects can be on non-federal aid routes
– Bridges don’t have to meet eligibility
requirements
– Much wider range of scopes allowed
“Transportation Project”
• Road construction, reconstruction,
rehabilitation
• Pavement preservation (overlay, mill/overlay,
chip/seal, pvt. patching, crack sealing)
• Purchase of aggregate used exclusively on a
specific section of road
• Safety improvement (signing, pvt. marking,
roadside obstacles, intersection, etc.)
“Transportation Project”
• Bridge construction/replacement
• Bridge rehabilitation, repair
• Bridge removal
• Low-water crossing
“Transportation Project”
• Erosion protection in ditches or around
drainage structures.
• Const. of sidewalks, ADA ramps, pedestrian
signals.
• Construction of trails.
• Curb & Gutter repair or replacement.
• Storm sewer repairs.
Allowable Use of State Funds
• All phases of project are eligible.
• LPA determines procedures, criteria and
standards.
– Must meet applicable laws, regulations, accepted
engineering practices.
• LPA may “stockpile” funds for up to 3 years.
Current Fed.-Aid Process
Federal funds are made
available to KDOT
through FHWA.
FHWA
KDOT shares a portion of
federal funds with cities
and counties.
KDOT
City/County
LPA develops project.
KDOT lets/administers project
with federal/local funds
How the Fund Exchange Works
Federal funds are made
available to KDOT
through FHWA.
FHWA
KDOT shares a portion of
federal funds with cities
and counties.
KDOT
KDOT agrees to provide LPA
$0.90 state funds per $1.00 fed.
City/County
LPA requests KDOT
exchange funds.
How the Fund Exchange Works
KDOT reimburses LPA up to maximum
amount of total exchange.
KDOT
City/County
LPA submits request for reimbursement
to KDOT along with appropriate
documentation of expenditure.
LPA lets/administers project(s)
themselves and pays
contractor/suppliers.
Fed. Funds Available for Exchange
• 5-Year Plan funds (STP and BR)
– Counties: $34 million (FFY 2010)
– Cities: $13 million (FFY 2010)
• Minus Federal-Aid Local Bridge Program.
– Approx. $8 million annually.
• Minus Local Bridge Inspection Compliance Effort.
– Approx. $5 million annually.
– Through 2014.
Implementation Plan
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Fall 2010 – Federal Fiscal Year 2011.
All counties
Cities over 5,000 not in metro area.
Details
– Federal funding uncertainty.
– Current fund balances – counties.
– Fund distribution to cities.
– Ongoing project commitments.
“5-Year Plan Letter”
• No longer 5-year plan update
• Letter will:
– Tell you how many fed $ available for year
– Give you option of either programming fed-aid
project or requesting exchange.
– Provide deadline for informing us of decision.
What do I need to do to
exchange my federal funds?
Understand the Rules
County Name or
City Name
Amount City/County
wants to exchange
Agency Contact and
contact information
Must be signed by
authorized representative
for agency, not a
consultant
Must be dated
List of Projects
2 per page,
attach as many
sheets as needed
1st
Project
2nd
Project
Brief description of
project location
Describe the Scope of
the work to be done
Estimated
construction start
date.
Estimated costs for
only those cost for
which you will request
reimbursement
Design cost estimates
Right of Way
cost estimates
Utility adjustment
cost estimates
Construction
cost estimates
Inspection
cost estimates
Total Estimated Costs
Request is submitted to
KDOT, now what?
KDOT reviews request,
determines if projects
meet program
requirements
Reimbursement Process
County Name
City Name
Date of Request
Description of
work and
location
Project name
as decided by
LPA
Same
agreement
number as in
agreement
Name of Firm
or Supplier
Firm/Supplier
Invoice Number
Brief description
of
services/materials
Amount
requested to
be reimbursed
KDOT requests
amounts to be at
least $1,000 per
request
Invoices must be
attached in order to
process payments
Must be signed by
authorized representative
for agency, not a
consultant
Statutes, Regulations &
Engineering Practices
When do I need to hire an
engineer?
“A Study of the Duties of a County Engineer in
the State of Kansas”
By:
Thomas Mulinazzi, KU
Chaitanya Gampa, KU
Eugene Russell, KSU
http://www.kutc.ku.edu/pdffiles/Duties%20of%20an%20Engineer.pdf
http://www.kutc.ku.edu/pdffiles/Duties%20of%20an%20Engineer.pdf
Work Requiring Engineer
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Establishing design standards
Roadway and crossroad culvert design
Bridge (structural) design
Sizing crossroad culverts and bridges
Determining needed repairs on bridges & culverts
Bridge inspection & load rating
Drainage and flooding studies
Computing drainage areas and runoff rates
Work Requiring Engineer
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Prepare state & federal permit applications
Prepare construction specifications
Construction Inspection
Traffic control/signage design and review
Work That Does Not Require Engineer
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Project cost estimates
Right of way acquisition
Utility relocations
Advertisement and contract administration
Manage project for LPA
Maintenance type projects
Work That Does Not Require Engineer
• Pavement preservation w/o geometric, safety,
drainage or other changes
– Overlay, mill/overlay
– Chip and seal
– Pavement patching
– Crack sealing
– Placement of aggregate
• Replace deteriorated curb & gutter
• Storm sewer repair to restore function
• Installation of erosion protection measures in
ditch or at drainage structure outlet
K.S.A. 68-1105
Estimates, plans and specifications for bridges and culverts;
employment of engineer.
Whenever the board of county commissioners . . . Deem it
necessary to repair any county bridge or culvert it shall . . .
direct the county engineer to prepare complete plans for
the same, . . . Provided, that the board may employ an
engineer to act in conjunction with the county engineer in
preparing plans, specifications, estimates, and in
superintending the construction of any bridge or culvert
work: Provided, however, That no engineer shall be
employed by the board to furnish or to prepare plans,
specifications or estimates for any county or township bridge
or culvert work, or to supervise the construction of any such
work, who is in the employ of or represents any bridge
company, bridge firm, or bridge contractor. . .
Design Criteria
General Road Design
– AASHTO, NACE, APWA
– Depends on scope of work
Bridge Design
– AASHTO
Bridges
• NBI
– All bridges on public roads must be inspected.
– New or altered bridge must be on inventory in 180
days.
• K.S.A. 68-1111 – KDOT review and approve
plans for bridges over $200,000
K.S.A. 68-1111
Approval of plans by county engineer or state
engineer.
All plans for the construction or repair of highway
bridges and culverts, the estimated cost of which
does not exceed the sum of $200,000, shall be
submitted to the county engineer for approval. If
the estimated cost thereof exceeds the sum of
$200,000, such plans and estimates, before final
adoption, shall be submitted to the state
transportation engineer for approval. . .
Surveying
• Minimum Standards for the Practice of Land
Surveying (K.A.R. 66-12-1)
http://www.accesskansas.org/ksbtp/KAR66-12-1.html
• Statutes regarding survey practices and protection
of cornerstones and monuments
Environmental - Permits
• NEPA documentation not required
• Permits may be needed
– Division of Water Resources
– Corps of Engineers
– NPDES
– Others?
Right of Way Acquisition
• Uniform Relocation Assistance and Real
Property Acquisition Act
• K.S.A. Chapter 26
Contracts
• Method of contracting shall meet appropriate
Kansas statutory requirements and
procedures.
• Work with your attorney or counselor.
Questions?