Title
Consider/Discuss/Act on a Resolution of the City of McKinney, Texas, Authorizing the City Manager to Amend the Project Agreement with the NRCS for the Lake 2A Dam Rehabilitation Project
Summary
COUNCIL GOAL: Safe and Secure Community
MEETING DATE: August 15, 2017
DEPARTMENT: Development Services / Engineering
CONTACT: Michael Hebert, PE, CFM, Assistant Director of Engineering
Kyle Odom, CFM, Environmental Engineering Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to amend the Project Agreement with the NRCS to allow the City of McKinney to get full credit for land rights acquisition.
• The additional value for land rights is $87,537. Of that, 65% is reimbursable from the NRCS, which means this amendment will allow for an additional $56,899 in reimbursement to the City.
BACKGROUND INFORMATION:
• Construction for the Lake 2A dam rehabilitation project was successfully completed in November 2016. The proposed amendment to the project agreement is simply to revise the dollar amounts in the agreement.
• In particular, the NRCS has granted a request by the City of McKinney to amend the project agreement to take full credit for the actual value of land rights acquisition. This is possible only because construction costs were lower than anticipated.
• The project agreement expires on 8/30/2017. It must be executed before then by the City of McKinney, the Collin County Soil and Water Conservation District, and the NRCS.
• This dam is located north of County Road 123 between Custer Road and Lake Forest Drive. The lake is known locally as Highland Lake.
FINANCIAL SUMMARY:
• According to the project agreement with the NRCS, the City of McKinney as the sponsoring local agency is responsible for 35% of the overall project costs. The original project agreement executed in 2014 included the following breakdown for McKinney’s share of the costs:
• Construction (Cash Contribution) = $ 1,472,250
• Administration (In-Kind) = $ 50,000
• Land Rights = $ 100,000
• Total Sponsor Cost Share = $ 1,622,250
• Amendment 1 in 2015 revised the cost sharing breakdown as follows:
• Construction (Cash Contribution) = $ 1,175,250
• Administration (In-Kind) = $ 50,000
• Land Rights = $ 397,000
• Total Sponsor Cost Share = $ 1,622,250
• Amendments 2 and 3 made non-financial revisions in 2015 and 2016.
• This final amendment 4 will revise the costs again to account for lower than anticipated construction costs and to get full credit for the actual value of the land rights acquired by the City. The final breakdown is as follows:
• Construction (Cash Contribution) = $ 990,675
• Administration (In-Kind) = $ 34,197
• Land Rights = $ 484,537
• Total Sponsor Cost Share = $ 1,509,409
BOARD OR COMMISSION RECOMMENDATION:
• N/A