Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute Agreements with the Texas Department of Transportation to Contribute Right of Way Funds for the FM 1461 Project
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1A: Establish regional and infrastructure incentives to increase economic growth)
MEETING DATE: August 18, 2020
DEPARTMENT: Development Services / Engineering
CONTACT: Nick Ataie, PE, Engineering CIP Manager
Gary Graham, PE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This item authorizes the City Manager to execute two (2) agreements with the Texas Department of Transportation (TxDOT) for the funding participation related to right of way acquisition for the FM 1461 project as follows:
o Custer Rd to Lake Forest Dr (CCSJ# 1973-01-015), $107,477.00
o Laud Howell Pkwy to Bloomdale Rd (CCSJ# 1392-03-012), $81,330.60
BACKGROUND INFORMATION:
• The Texas Department of Transportation (TxDOT) is currently advancing land acquisition for the planned improvements to FM 1461 between Preston Road and Bloomdale Road.
• The planned improvements consist of a complete reconstruction of FM 1461 from a 2-lane rural undivided roadway to a 4-lane (ultimate 6-lane) urban divided roadway.
• At this time the letting (bidding for construction) of the project is planned to occur in January 2024 pending TxDOT identification and allocation of construction funding.
• The portion of the project within the McKinney ETJ (Custer Rd to Bloomdale Rd) has been split into two project segments by TxDOT as follows:
o Custer Rd to Lake Forest Dr (CCSJ# 1973-01-015)
o Laud Howell Pkwy to Bloomdale Rd (CCSJ# 1392-03-012)
• As typical for TxDOT system roadway improvements, TxDOT is requesting a 10% local funding contribution for costs associated with acquiring necessary right-of-way for the planned improvements. TxDOT will contribute 90% of the funding necessary to acquire right-of-way and will assume responsibility for administering the acquisitions.
• The 10% local contribution by the City of McKinney is only applicable to anticipated right-of-way located in city limits at the time of this agreement and does not apply to right-of-way required outside of city limits but within the City of McKinney ETJ.
• In order to facilitate contribution of our local match, TxDOT has prepared two (2) agreements entitled “Agreement to Contribute Right of Way Funds (Fixed Price)” for execution by the City of McKinney for each CCSJ of the project limits within the City of McKinney ETJ.
• Anticipated right-of-way impacts and costs for each agreement/CCSJ are as follows based on current design of the improvements:
o Custer Rd to Lake Forest Dr (CCSJ# 1973-01-015)
§ Total Estimated Costs: $1,074,770.00
§ City of McKinney 10% Contribution: $107,477.00
o Laud Howell Pkwy to Bloomdale Rd (CCSJ# 1392-03-012)
§ Total Estimated Costs: $813,306.00
§ City of McKinney 10% Contribution: $81,330.60
• Because the agreements are “fixed price”, the local contribution amount is not subject to change unless site conditions change, work requested by the local government is ineligible for federal participation, or an adjustment is mutually agreed on by the TxDOT and the local government.
• Staff requested a deferred payment clause be included in both agreements to accommodate a delayed payment to TxDOT pending approval of the FY21 Capital Improvement Program (CIP) budget which includes funding for right of way cost participation. Although no immediate payment is required, TxDOT has requested that both agreements be executed as soon as possible.
FINANCIAL SUMMARY:
• The agreements do not require any immediate financial contribution upon execution by the City of McKinney, but request the local contribution be submitted to TxDOT by November 1, 2020.
• The total local fixed contribution amount for both project segments/agreements is $188,807.60.
• Funding is planned to be available for both agreements and will be included in the proposed FY21 Capital Improvements Program (CIP) Project FM 1461 TxDOT Local Contribution (Custer - Bloomdale). The proposed funding source for this expenditure is planned to be previously issued transportation/street bonds.
BOARD OR COMMISSION RECOMMENDATION:
• N/A