Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Enter into an Agreement with the Regional Transportation Council for Award of Transportation Development Credits for Various Federally Funded Transportation Projects
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
(1A: Establish regional and infrastructure incentives to increase economic growth)
MEETING DATE: August 17, 2021
DEPARTMENT: Development Services / Engineering
CONTACT: Nick Ataie, P.E., Engineering CIP Manager
Gary Graham, P.E., Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to enter into an Agreement with the Regional Transportation Council (RTC) for Award of Transportation Development Credits for the following planned transportation projects which include federal funding:
o US 380 and Community Avenue Intersection Improvements (CIP Project ST2011, CSJ 0135-02-067)
o SH 5 Deck Park Feasibility Study (CIP Project ST2234, CSJ 0047-05-059)
BACKGROUND INFORMATION:
• The Regional Transportation Council (RTC) is the regional transportation policy body associated with the North Central Texas Council of Governments (NCTCOG), our regional Metropolitan Planning Organization, and is comprised primarily of local elected officials.
• The City of McKinney has previously been awarded Transportation Development Credits (TDC’s) by NCTCOG for adopting policies, programs, and projects that reflect regional priorities and support Mobility 2045 goals.
• A TDC is a financial accounting tool approved by the Federal Highway Administration that allows states to use federal funding on projects without the typical requirement of a cash match. In other words, cities can leverage awarded TDC’s, if approved, to offset their obligated local match for a project.
• The NCTCOG tracks regional projects through the Transportation Improvement Program (TIP) which is a staged, multiyear program of projects approved for funding by federal, state, and local sources.
• Two (2) planned City of McKinney projects on the TIP include federal funding which requires a 20% local match. TDC’s awarded to the City of McKinney will offset the local match upon execution of an agreement.
• The agreement includes use of 240,000 TDC credits to offset the required $240,000 local match for planned intersection improvements to US 380 and Community Avenue. The project currently includes $1,200,000 in approved federal funding to install additional left and right turn lanes at the intersection. Design of these improvements is expected to begin by late 2021/early 2022.
• The agreement includes use of 400,000 TDC credits to offset the required $400,000 local match for conceptual engineering and feasibility analysis for identifying improvements to the SH 5 corridor (generally between Louisiana Street and Virginia Street) to connect adjacent neighborhoods. The project currently includes $2,000,000 in approved federal funding. The study is expected to start as soon as project funding agreements are in place.
• Upon city execution of the agreement, the RTC will fully execute and subsequent funding agreements for the projects shown will be reflected accordingly to show use of TDC’s in lieu of a monetary local contribution.
FINANCIAL SUMMARY:
• The agreement will allow the City to leverage available TDC’s in lieu of an estimated $640,000 local match for federal project funding.
• CIP Project ST2011 is currently included in the FY21-25 Capital Improvement Program and staff has successfully increased federal funding participation amount from $664,706 to $1,200,000.
• CIP Project ST2234 has been included in the draft FY22-26 Capital Improvement Program.
BOARD OR COMMISSION RECOMMENDATION:
• N/A