Agenda No. 6.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | December 7, 2021 |
| Department: | City Secretary |
| Subject: | Ordinance No. 21-T-48 - Consideration and/or action approving an Ordinance by the City Council of the City of Schertz, Texas authorizing an adjustment to the Fiscal Year 2021-2022 Budget to provide additional funding for the Tri-County Parkway Project Construction Phase, repealing all Ordinances or Parts of Ordinances in conflict with this Ordinance; and providing an effective date. (Final Reading) (M. Browne/A. Perez) |
BACKGROUND
Tri County Parkway, from Corridor Parkway to FM 3009, and Lookout Road between Tri County Parkway and Doerr Lane (“Tri County Parkway”) is a major collector that supports primary job employers and commercial businesses within the Schertz Industrial Park.
On October 17, 2019, the SEDC Board of Directors approved Resolution No. 2019-19 recommending to City Council approval of up to $4,050,000.00 for the Tri County Parkway project from the FY 2020-2021 SEDC Budget. On January 7, 2020, City Council approved Resolution No. 20-R-03 approving allocation of funding for the Tri County Parkway project.
A brief description of the project includes the reconstruction of Tri County Parkway from Corridor Parkway to FM 3009 and Lookout Road from Tri County Parkway to Doerr Lane and replacement and upsizing of the sanitary sewer mains in those roadway segments. The original project scope included improvements to the intersection at Tri County Parkway and FM 3009. However, TxDOT has indicated signaling is currently not warranted. This element was removed from the scope.
Engineering released Request for Bids (RFB) on August 10, 2021. Bids were opened on Tuesday, September 21, 2021, for the Tri County Parkway Project.
To date, the SEDC Reserves have transferred a total of $4,050,00.00 to the City General fund in support of the Tri County Parkway project. Total construction budget based on lowest bid and contingency totals $4,900,000.00. This Budget Adjustment Ordinance allocates an additional $1,240,000.00 bringing the total project cost including scoping and construction to $5,290,000.00 summarized as follows:
On October 17, 2019, the SEDC Board of Directors approved Resolution No. 2019-19 recommending to City Council approval of up to $4,050,000.00 for the Tri County Parkway project from the FY 2020-2021 SEDC Budget. On January 7, 2020, City Council approved Resolution No. 20-R-03 approving allocation of funding for the Tri County Parkway project.
A brief description of the project includes the reconstruction of Tri County Parkway from Corridor Parkway to FM 3009 and Lookout Road from Tri County Parkway to Doerr Lane and replacement and upsizing of the sanitary sewer mains in those roadway segments. The original project scope included improvements to the intersection at Tri County Parkway and FM 3009. However, TxDOT has indicated signaling is currently not warranted. This element was removed from the scope.
Engineering released Request for Bids (RFB) on August 10, 2021. Bids were opened on Tuesday, September 21, 2021, for the Tri County Parkway Project.
To date, the SEDC Reserves have transferred a total of $4,050,00.00 to the City General fund in support of the Tri County Parkway project. Total construction budget based on lowest bid and contingency totals $4,900,000.00. This Budget Adjustment Ordinance allocates an additional $1,240,000.00 bringing the total project cost including scoping and construction to $5,290,000.00 summarized as follows:
|
$4,050,000.00 | |
| - Engineering Costs | $ 390,000.00 | |
| = Construction Balance | $3,660,000.00 | |
| Construction Budget Required (Lowest Bid + 8% Contingency) |
$4,900,000.00 | |
| Construction Budget Adjustment (Budget Adjustment Ordinance 21-T-48) |
$1,240,000.00 | |
| Total | $5,290,000.00 |
On October 28, 2021, the SEDC Board of Directors approved Resolution No. 2021-10 recommending to City Council approval of up to $5,290,000.00 for resurfacing of Tri County Parkway.
GOAL
The goal of this ordinance is to amend the FY 2021-2022 Adopted Budget to allocate an additional $1,240,000.00 from the SEDC Reserve Fund to the City of Schertz General Fund for the construction phase of the Tri County Parkway project.
COMMUNITY BENEFIT
Allocation of SEDC reserves in support of this project would promote primary job employer investment and supplement the Street Preservation and Maintenance (SPAM) Program for additional investment in the industrial park and broader community.
SUMMARY OF RECOMMENDED ACTION
City Council approved this on first reading at their meeting on November 9, 2021. Staff recommends that the City Council approve Ordinance 21-T-48 on final reading authorizing the budget adjustment not to exceed $1,240,000.00 for the construction phase of the Tri County Parkway project.
FISCAL IMPACT
As of September 30, 2021, the unaudited balance in the SEDC Reserve Fund is $20,746,303.00. The approved FY2021-2022 SEDC Budget allocates $4,300,707 for SEDC operations and infrastructure reimbursements and performance agreement incentive payments creating an unencumbered balance of $16,445,596. Ordinance 21-T-48 amends the FY 2021-2022 Adopted Budget to allocate an additional $1,240,000 to the City Schertz General fund from the SEDC Reserve fund. This action brings the balance of the SEDC Reserve Fund to $15,205,596.
RECOMMENDATION
Staff recommends that the City Council approve Ordinance 21-T-48 on final reading authorizing the budget adjustment in an amount not to exceed $1,240,000.00 for the construction phase of the Tri County Parkway project.