Agenda

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City Council Regular Meeting

Meeting Date:

09/13/2022

BACKGROUND

Since 2015, the City of Schertz has been working with the Texas Department of Transportation (TxDOT) in support of their plan to expand and improve FM 1518 from IH 10 to FM 78 from a two-lane section, to a four-lane, divided section with sidewalks and multi-use paths. The citizens of Schertz initially voted to approve the issuance of $5 million in general obligation bonds for the purpose of contributing to the planned improvements. In 2017, the City learned that due to the increasing cost of construction, an additional $5 million contribution toward the effort would be needed. The City Council committed to providing that requested funding through the approval of Resolution 17-R-108.

Preparations for the actual construction of the improvements are nearing completion. Right-of-way has been secured, design is mostly complete, and utility relocations are underway. The expansion project construction contract is currently scheduled for a letting in September 2023. The City's cost contribution of $10 million is expected to be made to TxDOT at least 60 days prior to that letting.

In order to formalize the arrangement with TxDOT, the City must enter into and Advance Funding Agreement (AFA) for Voluntary Local Government Contributions to Transportation Improvement Projects with No Required Match On-System. A copy of that AFA is included as Exhibit A to Resolution 22-R-95.

GOAL

The goal of Resolution 22-R-95 is Council authorization for the City Manager to execute the AFA with TxDOT for a Voluntary Local Government Contribution to the FM 1518 improvement project.

COMMUNITY BENEFIT

The agreement with TxDOT to maintain a partnership in the improvements to FM 1518 supports the City’s policy values of a Safe City with strong Essential Services, and also contributes to Fiscal Sustainability by leveraging City funds of $10 million dollars for the estimated $60 million project. Improvements to FM 1518 within the City of Schertz will provide a significant improvement to travel safety and ease along an arterial roadway segment through which more than an estimated 15,000 vehicle trips are made each day.

SUMMARY OF RECOMMENDED ACTION

It is recommended that Council authorize execution of an AFA with TxDOT for the funding contribution of $10 million toward the FM 1518 improvement project.

FISCAL IMPACT

Funding from bond proceeds of $4,395,000 from GO 2022 and $5,605,000 from CO 2022A received on August 24, 2022, makes up the $10 million total contribution.

RECOMMENDATION

Staff recommends that Council authorize the Advance Funding Agreement for Voluntary Local Government Contributions to Transportation Improvement Projects with No Required Match On-System for the FM 1518 Expansion.

Attachments
Resolution 22-R-95
22-R-95 Exhibit A TxDOT AFA for FM 1518
Resolution 15-R-104 Canvass of Election
Resolution 17-R-108 Committment of Additional Funds