AGENDA CAPTION:
Title
Consider approval of Resolution 2026-29R, approving a Standard Utility Agreement Supplemental and an Advanced Funding Agreement Amendment with Texas Department of Transportation, to provide reimbursement to the city for increased utility removal and relocation costs, relating to the project along Interstate Highway 35 at State Highway 123, from South of State Highway 80 to North of Ranch to Market Road 12, in the amount of $346,211.95; authorizing the City Manager, or her designee, to execute the appropriate documents on behalf of the city; and declaring an effective date.
Body
Meeting date: February 17, 2026
Department: Engineering & CIP
Amount & Source of Funding
Funds Required: NA - $346,211.95 will be reimbursed to the City
Account Number: C629
Funds Available: NA
Account Name: IH-35 Utility Relocations
Fiscal Note:
Prior Council Action: Resolution 2021-31R (Approval of Advanced Funding Agreement with TxDOT)
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Background Information:
The attached Standard Utility Agreement Supplemental for $346,211.95 to the Contract #0016-03-114 with Texas Department of Transportation (TxDOT) will allow the City to finalize the reimbursement from TxDOT for the project located along IH-35 from south of SH80 to north of RM12.
A Standard Utility Agreement (Contract # 0016-03-114) between TxDOT and the City of San Marcos (City) was executed in April 2021. The project scope included required adjustment, removal, and/or relocation of the City’s utilities, including water and wastewater lines. TxDOT's participation in the costs of these adjustments and the City’s amount eligible for reimbursement was 100%.
An amendment to the Utility Advance Funding Agreement (AFA amendment #1) was executed in August 2021 to change the betterment ratio and reduce the betterment amount. The project is complete, and due to the changes in the bid materials and labor, a re-evaluation of the betterment ratio and the project cost was conducted. External engineering services, including SUE, Storm Drain Analysis, Survey, Design, and environmental testing used by the City, increased the total project cost from $2,964,982.04 to $3,291,275.34.
To get reimbursed, the City and TxDOT have to execute a Utility Agreement Supplemental as well as an Advance Funding Agreement Amendment #2. TxDOT will finalize the AFA Amendment #2 once the City signs the Standard Utility Agreement Supplemental.
Based on the revised betterment ratio and additional costs incurred by the City, net reimbursement in the amount of $346,211.95 will be issued to the City.
The construction is complete and accepted by TxDOT and the City.
Council Committee, Board/Commission Action:
NA
Alternatives:
NA
Recommendation:
Staff recommends approval of this Resolution.