Commissioners approve S.D. DOT amendment specifying funding terms for county road project

Union County commissioners on Dec. 30 reviewed and approved Amendment No. 1 to Agreement No. 717947 with the South Dakota Department of Transportation, which updates the county’s funding and reimbursement terms for a road project (referred to in the amendment and tied to a BIG award).

The amendment replaces Paragraph 23 to state that the State will reimburse the county 80% of actual construction engineering costs and 70% of other eligible costs, not to exceed the BIG award cap of $685,300. The amendment also offers an option for funding disbursements: upon receipt of signed contracts for preliminary engineering, construction and construction engineering, the State may pay 75% of the State’s share of those costs at contract execution, with final reconciliation after construction. If the State’s share of eligible costs is less than an advance, the county must reimburse the State for the difference.

The minutes record that county staff discussed Northshore Drive opening and the speed limit on County Road 1B/Hwy 105 in the same agenda area. The board approved the amendment and authorized customary signatures.

The amendment requires the county to provide documentation after construction, including contracts, amendments, pay estimates and QC/QA test summaries before final payments are issued. County officials were also informed that if the BIG award amount is fully expended, the county may be billed for 100% of any additional project costs incurred by the State.

Next step: county staff will coordinate with the State DOT and engineering consultants to submit contracts and documentation needed to obtain disbursements and final reimbursements under the amended agreement.