1. Federal Fund Exchange Training

2. 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.
Program is voluntary.
Requires $ be used on a transportation project. (More later)
Reimbursement program.
Saves dollars/time:
Reduced plan needs in many cases
Avoid cumbersome fed. Requirements
Projects better tailored to local needs – Example: bridge on very low vol. road
More flexibility:
Wider range of projects, for example some maintenance activities are eligible. More later.
Dollars don’t have to be spent on specific classes of roads.

3. 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
Buy America
Davis-Bacon
DBE
Uniform Act
Pipe Policy

4. 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

5. “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.)

6. “Transportation Project”
Bridge construction/replacement
Bridge rehabilitation, repair
Bridge removal
Low-water crossing

7. “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.

8. 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.
Funds must be requested prior to September 15 of Federal Fiscal Year they were made available.
Transportation project: Defined in Guidelines. See list
Eligible phases: PE, R/W, Util., Construction, CE
Project doesn’t have to be done the “KDOT way”.
Local standards and practices may be followed.
All applicable laws, regulations and engineering practices must be met.
Reimbursement on projects may be for the entire project or we can make “progress payments” to help the LPA manage its cash flow.

9. Current Fed.-Aid Process
Federal funds are made available to KDOT through FHWA.
KDOT shares a portion of federal funds with cities and counties.
FHWA
KDOT
City/County
Project must meet federal rules and requirements. Example: NEPA
Project standards and specs established by KDOT & FHWA rules.
Plan development must be in accordance with KDOT practices.
LPA develops project.
KDOT lets/administers project with federal/local funds

10. How the Fund Exchange Works
Federal funds are made available to KDOT through FHWA.
KDOT shares a portion of federal funds with cities and counties.
FHWA
KDOT
City/County
KDOT agrees to provide LPA $0.75 state funds per $1.00 fed. In 2018 with rate to be determined annually by the Secretary of Transportation
LPA requests KDOT exchange funds.
Local agency determines appropriate standards, specifications, plan requirements.

11. 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.
Local agency determines appropriate standards, specifications, plan requirements.
LPA lets/administers project(s) themselves and pays contractor/suppliers.

12. Fed. Funds Available for Exchange
5-Year Plan funds (STP Limitation)
Counties: $31.1 million (FFY 2018)
Cities: $11.6 million (FFY 2018)
Minus Federal-Aid Local Bridge Program.
Approx. $8 million annually.
Minus Local Bridge Inspection Compliance Effort.
Approx. $5 million annually.
Through 2022.

13. Implementation Plan Beginning Fall 2010 – Federal Fiscal Year 2011.
All counties
Cities over 5,000 not in metro area.

14. “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.

15. What do I need to do to exchange my federal funds?

16. Understand the Rules

22. Request is submitted to KDOT, now what?

23. KDOT reviews request, determines if projects meet program requirements

24. Reimbursement Process

26. Statutes, Regulations & Engineering Practices

27. 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

30. Work Requiring Engineer
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

31. Work Requiring Engineer
Prepare state & federal permit applications
Prepare construction specifications
Construction Inspection
Traffic control/signage design and review

32. Work That Does Not Require Engineer
Project cost estimates
Right of way acquisition
Utility relocations
Advertisement and contract administration
Manage project for LPA
Maintenance type projects

33. 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

34. K.S.A
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. . .

35. Design Criteria General Road Design Bridge Design AASHTO, NACE, APWA
Depends on scope of work
Bridge Design
AASHTO

36. Bridges NBI All bridges on public roads must be inspected.
New or altered bridge must be on inventory in 180 days.

37. Surveying
Minimum Standards for the Practice of Land Surveying (K.A.R )
Statutes regarding survey practices and protection of cornerstones and monuments

38. Environmental - Permits
NEPA documentation not required
Permits may be needed
Division of Water Resources
Corps of Engineers
NPDES
Others?

39. Contracts
Method of contracting shall meet appropriate Kansas statutory requirements and procedures.
Work with your attorney or counselor.

40. Questions?