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Agenda No. 7.
CITY COUNCIL MEMORANDUM
| City Council Meeting: |
June 3, 2025 |
| Department: |
Engineering |
| Subject: |
Resolution 25-R-063 - Authorizing a Defense Community Infrastructure Program funding application for the Lower Seguin Road Reconstruction Project (B.James/K.Woodlee/J.Nowak) |
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| BACKGROUND |
Portions of Lower Seguin Road is classified as a rural secondary arterial and a secondary arterial between FM 1518 and Loop 1604. The "rural" section is a three-lane section with a travel lane in each direction and a center turn lane. The other section is two lanes in each direction with a center median. Lower Seguin Road is currently a narrow, two-lane street in very poor condition. The surface of the street is rough, has numerous patches, and large areas indicating base failures. Instead of just reconstructing the existing roadway section, it is more prudent to develop a comprehensive project to widen the street to the sections identified in the Master Thoroughfare Plan and construct other improvements to move vehicles more efficiently through the corridor and improve access to the Randolph South Gate.
The Randolph South Gate serves as the main entrance and exit for all the commercial base traffic supporting the base as well as some employee traffic. The gate is only open part of the day, from 6 am to 7 pm, but routinely has over 3,500 vehicles entering on a daily basis. Due to the amount of traffic entering the base, a queue often forms on Lower Seguin Road, which impedes through traffic from proceeding along the corridor; creates delays for vehicles exiting the base; and is the cause of accidents. This, and the general condition of the street, are the source of numerous complaints received by the City and Randolph. The proposed improvements will improve access to and from the Randolph South Gate; provide space for the queue so through traffic can move normally; improve the driveability of the street; and improve the street's longevity.
To address these issues, Council previously authorized Task Orders with Halff Associates to do the preliminary project design and environmental clearance and to do the final design, acquire needed right-of-way, and bid the project. It was anticipated that the City would pursue Federal Funding to help pay for construction of the project so it could be completed more quickly. As the preliminary design and environmental clearance efforts were underway, the Federal Defense Community Infrastructure Program (DCIP) was identified as a good source for construction funding for the project. The preliminary design has been completed and the environmental clearance is ongoing. Final project design is underway and is expected to be nearly complete in the near future. The next project funding call for the DCIP is this June.
Our consultant has been preparing the DCIP funding application for this project on our behalf. In order to formally submit the application for funding, Council must authorize the City Manager to sign and submit the application. The application review and approval process typically takes a few months to complete. We would expect to know if our application was successful in August. If our application is successful, the City would have five (5) years from the approval date to spend the funding. Staff recommends applying for the DCIP funding now, so the project can be constructed as quickly as possible. Staff and our consultant are confident that the project can be constructed and the funding spent within the five (5) year time limit. |
| GOAL |
| Council authorization for the City Manager to sign and submit the DCIP funding application for the Lower Seguin Road Reconstruction project. |
| COMMUNITY BENEFIT |
| The Lower Seguin Road Reconstruction project will widen the street to the secondary arterial roadway sections shown in the City's Master Thoroughfare Plan; provide a traffic signal and other improvements at the Randolph South Gate entrance; improve drainage; and provide a stronger pavement section capable of supporting the vehicle loading on the street. These improvements will provide a smoother driving surface and allow traffic to move more efficiently on Lower Seguin Road. The signalization and other improvements at the Randolph South Gate will provide improved access to the base and help support Randolph's mission. Securing DCIP funding will significantly reduce the out of pocket costs of the project to the City and allow the improvements to be completed more quickly. |
| SUMMARY OF RECOMMENDED ACTION |
| Council authorization for the City Manager to sign and submit the DCIP funding application for the Lower Seguin Road Reconstruction project. |
| FISCAL IMPACT |
The current estimated construction cost for the project is approximately $20,000,000. Staff and our consultant have held multiple meetings with the DCIP administration staff to get information on the program and the program requirements. Based on our current understanding of the DCIP program (as a result of these meetings), since the project is located in a zip code containing less than 100,000 people, there would not be a local match requirement. Therefore, in the application we would request funding for the full estimated project cost - $20,000,000. There are some project costs that would not be eligible for DCIP funding, such as right-of-way and easement acquisition and environmental clearance efforts. Additionally, any costs for project development or design that are incurred before the project is approved for DCIP funding would not be eligible for reimbursement by the DCIP.
The Lower Seguin Road project is included in the Capital Improvement Plan (CIP). When the project was created in the CIP, it was assumed that there would need to be a local match for construction, that the City would need to fund the project design and environmental clearance, and need to fund right-of-way and easement acquisition. As a result, the City allocated Bond sale proceeds to fund the preliminary design and environmental clearance tasks and began work on the project. Subsequently, the City allocated additional Bond sale proceeds to the project to fund the final design, right-of-way and easement acquisition, and for a portion of the estimated construction costs. Currently the City has a total of $15,985,000 of funding available for the project.
Of that total, $985,000 was allocated for the preliminary design and environmental clearance and $2,700,000 was allocated for the final project design. This leaves $12,300,000 of funding available for the project. This available funding would be used for right-of-way and easement acquisition; construction cost overruns; and a local match (worst case scenario approximately $6,000,000). Additionally, based on the earlier project estimate when creating the CIP, an additional portion of Bond sale proceeds in the FY 25-26 is planned to be allocated to this project. This additional amount is $3,200,000.
If the additional Bond amount is not needed for the project, those proceeds could be spent on other street projects. Any other excess City funding would be allocated to other, future street projects in the CIP. |
| RECOMMENDATION |
| Approve Resolution 25-R-063. |
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