Memorandum

City of Lawrence

Public Works

TO:	David L. Corliss, City Manager
FROM:	Charles Soules, Director of Public Works
CC:	Diane Stoddard, Cynthia Wagner, Casey Toomay, Ed Mullins, Scott McCullough, David Cronin, Mark Thiel
DATE:	January 23, 2014
RE:	January 28, 2014 City Commission Agenda Item US-40 “Turn-Back Agreement”

During the development of the City’s 2014 budget and review of the community’s capital needs, City Staff presented in June, the Kansas Department of Transportation’s desire to complete several important state highway projects benefiting Lawrence. Additionally as the state’s highway lane-miles grow with new miles in Lawrence, there is interest in considering the “turning-back” of City streets which also have state highway designation to City ownership.

The proposed turn-back is the approximately 4 mile section of West 6^th Street between Iowa and K-10 which is also designated as US-40. While the State could unilaterally make decisions on de-designation of State highways, they have a strong desire for partnership with local governments on these important decisions. Removing the State highway designation on this portion of West 6^th Street will mean that the City will have State connecting link payments reduced by approximately $47,892 a year ($3000/lane mile x 3.991 mile). The State pays the City of Lawrence a per lane mile grant per State law, for maintenance of these streets which function as both State highways and local streets. City Staff has sought an appropriate level of State financial assistance as part of the proposed US-40 turn-back to recognize this permanent loss of State assistance for this road. Staff believes that this portion of US-40 is an appropriate candidate for a turn-back agreement because the road is in generally good maintenance condition and has recently been improved with a number of geometric improvements (5^th lane, turning movements, etc.) which leave this road in good shape as it becomes sole City maintenance and governance responsibility.

The attached agreement from the KDOT reflects the proposed turn-back agreement provisions as negotiated between City Staff and KDOT Staff. In staff’s view, the proposed agreement reflects appropriate compensation for the turn-back. It also has the benefit of freeing up additional debt capacity for other City priorities.

Through credits back to the City, the turn-back agreement would provide approximately $3.55 million to the City, with additional benefit to the City with KDOT’s proposed traffic signalization improvements at the intersection of K-10 and West 6^th Street. The $3.5 million is illustrated as follows:

Ø KDOT reimbursement to the City for the 6^th and Iowa improvements	$1.5 million
Ø KDOT additional participation in the 2014 improvements at 23^rd and Iowa	$1.050 million
Ø KDOT agrees to proposed City/County participation in the K-10 and Bob Billings Parkway (City $1 million, County $528,000) which is $500,000 less than the $2 million requested by KDOT	$.5 million
Ø KDOT reimbursement to the City for traffic signalization for two West 6^th Street intersections which warrant/or will soon warrant traffic signals (W. 6^th & George Williams Way, and W. 6^th & Champion)	$.5 million
TOTAL	$3.55 million

KDOT will be responsible for reimbursing (or crediting) for the actual costs of the above eligible projects.

Additionally, KDOT is solely funding traffic signal improvements at 6^th & K-10 (estimated $180,000) and will also allow for KLINK funding of repaving of West 6^th Street in 2014 (estimated grant of $200,000).

What should also not be lost in this discussion is the significant investment the State is making in Lawrence and Douglas County in the coming months with the completion of K-10 (South Lawrence Trafficway) and the K-10 Bob Billings Parkway Interchange.

The funding for the 6^th & Iowa Street improvements ($1.5 million) and the additional KDOT funding for the 23^rd & Iowa Street improvements ($1.050 million) free up debt capacity for other City priorities for the following projects:

Ø Santa Fe Depot Rehabilitation	$300,000
Ø Signalization at BBP & GWW	$300,000
Ø Fiber/ITS Match (including 6^th St., from Iowa St. to Wakarusa Dr.	$400,000
Ø Police Facility Site	$1,500,000
TOTAL	$2.5 million

The reroute of US-40 will be south of K-10 to Iowa Street (Hwy-59) then back to the intersection of 6^th & Iowa Street. US-40 could not be routed to the KTA as this route would include a toll road (map attached in agreement).

Coordination of signage between the City and the State for the redirection of the US-40 route will take a few months therefore the effective date of the turn-back will be no sooner than July 31, 2014.

Action Requested:

Authorize the Mayor to sign Agreement Number 251-13, state route transfer (turn-back) US-40, between the City of Lawrence and Kansas Department of Transportation.

Respectfully Submitted,

Charles F. Soules, P.E.

Director of Public Works

CFS/ch