Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Enter into an Advance Funding Agreement with the Texas Department of Transportation for Improvements to East Louisiana Street (Capital Improvement Project CO1817)
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
(1A: Establish regional and infrastructure incentives to increase economic growth)
MEETING DATE: August 3, 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 Advance Funding Agreement with the Texas Department of Transportation (TxDOT) Outlining Obligations, Funding Sources, and Requirements for Improvements to East Louisiana Street.
BACKGROUND INFORMATION:
• The proposed improvements to East Louisiana Street were previously partially designed under Capital Improvement Project CO1208, also known as the Flour Mill Phase I Project, and included a complete reconstruction of East Louisiana Street including street, drainage, utility, and pedestrian enhancements. The project also includes construction of a roundabout at the intersection of East Louisiana Street and Greenville Street.
• The intent of this project is to provide sustainable infrastructure improvements to further promote economic growth and development in East McKinney (East of State Highway 5). In addition, the construction of a new roundabout intersection connecting East Louisiana Street and Greenville Street will improve mobility and street network connectivity.
• The Engineering Department has previously worked with the North Central Texas Council of Governments (NCTCOG), TxDOT, and Collin County to identify and request alternative (non-local) funding sources which may be available to support the planned improvements to East Louisiana Street.
• In April 2021, the Regional Transportation Council (RTC) provided authorization to allocate Regional Toll Revenue (RTR) funding to the East Louisiana Street Improvement Project in the amount of $3,720,000.
• RTR funding is managed by the TxDOT and includes surplus toll revenues which are collected and placed in a sub account to provide various transportation improvements in the region that those toll revenues are collected. Use of such surplus toll revenues for various transportation improvements are at the discretion of the regional representatives assigned and funding for projects is considered and approved by the RTC.
• An Advance Funding Agreement (AFA) has been developed for city execution which outlines the requirements and use of RTR funds for the project. The AFA does not stipulate a local match requirement although local funds will be necessary to supplement the RTR funds based on the overall project cost projections.
• The current estimated project cost including design services, land acquisition, and construction cost is approximately $6.3 million.
• Design of the East Louisiana Improvements Project (CIP Project CO1817) has been underway as of late 2020 and is expected to be complete in late 2021. Construction is currently anticipated to begin in early 2022 with a 12-16 month duration depending on further considerations for construction phasing, milestones, and any incentives which may be considered to expedite construction.
FINANCIAL SUMMARY:
• Grant funding for the project (CO1817) is included in the FY2021-2025 Capital Improvements Plan. Grant funding amount in CO1817 will be revised as part of the FY2022-2026 Capital Improvements Plan to reflect the actual amount included under this agreement.
• Under this agreement, the total “Local Participation” as shown in Attachment A of the AFA is $0. Local funding has been allocated under the CIP to cover project cost over the committed RTR funding.
BOARD OR COMMISSION RECOMMENDATION:
• N/A