Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Enter Into an Interlocal Agreement with the County of Collin, Texas, for Reimbursement for Costs Relating to the Relocation of the Utility Lines due to the Texas Department of Transportation (“TxDOT”) Construction of the U.S. 380 Bypass and Spur 399 Extension
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
(1A: Establish regional and infrastructure incentives to increase economic growth)
MEETING DATE: December 17, 2024
DEPARTMENT: Development Services / Engineering
CONTACT: Gary Graham, P.E., Director of Engineering
Katie McKenzie, P.E., CIP Engineering Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to enter into an Interlocal Agreement with the County of Collin, Texas (“County”) for reimbursement associated with the relocation of utility lines due to the TxDOT construction of the U.S. 380 Bypass and Spur 399 Extension (the “Project”).
BACKGROUND INFORMATION:
• The Project includes the relocation of utility lines necessary for the TxDOT construction of the US 380 Bypass and Spur 399 extension, including program management, engineering, easement acquisition, construction, material testing, and construction inspection services.
• An Interlocal Agreement (ILA) has been developed and reviewed by the City of McKinney and the County of Collin which outlines the obligations and payments for the improvements, generally as follows:
o The City of McKinney agrees to prepare plans and specifications for the designed improvements, accept bids and award a contract to construct the improvements and administer the construction contract, provided County agrees to reimburse City for its reasonable costs relating to the Project.
• The City estimates the total actual cost of the Project to be One Hundred Twenty Million Dollars ($120,000,000.00) (“Estimated Project Cost”). The County agrees to initially allocate One Hundred Twenty Million Dollars ($120,000,000.00) (the “County Participation Amount”) to the performance of the Project.
• At this time, it is anticipated that TxDOT will construct the US 380 Bypass and Spur 399 Extension project in multiple segments. To account for this timeline, County agrees to remit upfront that proportional amount of the County Participation Amount attributable to each segment of the Project to the City.
• After each segment is bid and a revised estimate is received (the “Revised Segment Cost”), the City shall reconcile the difference between the Estimated Segment Cost and the Revised Segment Cost by either requesting additional funds from the County or reimbursing the difference, should the Revised Segment Cost be less than initially anticipated.
• During construction of each segment, City shall cover cost overruns; however, County agrees to provide reimbursement to City of said cost overruns, provided the cost overruns are directly related to the approved plans and specifications.
• If the actual cost to design and construct the Project (collectively the “Actual Project Cost”) is less than the Estimated Project Cost, then the City shall reimburse to the County an amount equal to the difference between the Estimated Project Cost and the Actual Project Cost.
• Should the City receive reimbursement by TxDOT or any other source, City agrees to remit said funds to County within thirty (30) days of receipt.
• County agrees that County’s participation in the Project may exceed the County Participation Amount but shall otherwise not exceed One Hundred Fifty Million Dollars ($150,000,000.00) without further amendment of the ILA.
FINANCIAL SUMMARY:
• The agreement (ILA) provides funding for the Project in the amount of $120,000,000.00 subject to change based on actual construction costs.
• A future budget ordinance amending the FY24 or FY25 Capital Improvement Program will be required at a later date to add County of Collin funding into a future CIP Project.
BOARD OR COMMISSION RECOMMENDATION:
• N/A