Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute an Advance Funding Agreement (AFA) for Surface Transportation Block Grant (STBG) Off-System Funds with the Texas Department of Transportation (TxDOT) for the Construction of Laud Howell Parkway Lanes 3 & 4 from Lake Forest Drive to West of Trinity Falls Parkway
Summary
COUNCIL GOAL: Operational Excellence
(2.1: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: April 21, 2026
DEPARTMENT: Development Services / Engineering
CONTACT: Gary Graham, PE, Director of Engineering
Blake Sills, PE, Engineering CIP Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute an Advance Funding Agreement (AFA) for Surface Transportation Block Grant (STBG) Off-System funds with the Texas Department of Transportation (TxDOT) for the construction of Laud Howell Parkway Lanes 3 & 4 from Lake Forest Drive to west of Trinity Falls Parkway (CIP Project ST2310).
BACKGROUND INFORMATION:
• The current scope of work for the project (CIP Project ST2310) includes construction of lanes 3 & 4 of Laud Howell Parkway between Lake Forest Drive and west of Trinity Falls Parkway.
• Lanes 1 and 2 of Laud Howell Parkway are currently being constructed by private development.
• TxDOT has told the City that the MMD cannot receive federal funds and construct the road. The City will take the lead on designing and constructing lanes 3 and 4.
• Staff is working on an amendment of the Development Agreement with Republic Property Group to clarify the responsibility for the construction of lanes 3 and 4 of Laud Howell Parkway.
• Funding for the project includes STBG off-system funding (Federal Participation) in the amount of $15,000,000 with a 20% local match in the amount of $3,937,500.
• The federal funding approved for this project will be utilized for the construction phase. The city would be required to cover any additional construction cost beyond the federal funding committed.
• The Advance Funding Agreement (AFA) outlines use and responsibilities related to the federal funding only for the construction phase of the project. The AFA will be executed by the Texas Department of Transportation (TxDOT; authorized by the federal government to administer the federal funding) and the City of McKinney.
• The project has been approved by the Regional Transportation Council (RTC) for STBG funding and is included in the 2027-2030 Transportation Improvement Program (TIP).
FINANCIAL SUMMARY:
• Grant funding for the project (ST2310) will be included in the FY2027-2031 Capital Improvements Plan in the amount of $15,000,000.
• Under this agreement, the total “Local Participation” as shown in Attachment B of the AFA is $3,937,500 to cover the 20% match for construction and direct costs associated with TxDOT administration of the project.
• Pending execution of this agreement and initial payment to TxDOT by the city for direct costs ($187,500), $96,351 will remain in CIP Project ST2310. Additional funding for the remainder of the Local Participation used for construction will be included in the FY2027-2031 Capital Improvements Plan.
BOARD OR COMMISSION RECOMMENDATION:
• N/A