Title
Consider a memorandum/resolution authorizing an Interlocal Agreement with the Killeen Independent School District for the construction of a sewer line in the Trimmier Creek Basin.
Summary
DATE: May 17, 2022
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the execution of an Interlocal Agreement with Killeen Independent School District (KISD) to help fund the construction of a sewer line in the Trimmier Creek Basin
BACKGROUND AND FINDINGS:
The 2019 Water and Wastewater Master Plan includes project 5S - construction of a 12-inch sewer line north of Chaparral Road and west of East Trimmier Road. This project is also included in the Impact Fee Study and is eligible for funding through impact fees. This new sewer line will provide sewer service to new customers in the Trimmier Creek Basin area. The Killeen Independent School District (KISD) approached City staff with their desire to build a new middle school (MS 15) located on Chaparral Road, south of the new Chaparral High School. During discussion about MS 15, City staff informed KISD staff about Project 5S and how it could provide sewer service to MS 15. City and KISD staff developed the attached Interlocal Agreement which states that KISD will pay for 50% of Project 5S, up to $750,000, as long as Project 5S will provide sewer service to MS 15 and can keep MS 15 on an August 2024 timeline. The 2019 Water and Wastewater Master Plan cost estimate for Project 5S is $1,620,700. The community at large will benefit from the new school and sewer line improvements; the City and KISD staff feel this Interlocal Agreement will maximize efficiencies and prudently manage rate payer resources, while avoiding conflict or duplication of efforts.
THE ALTERNATIVES CONSIDERED:
(1) Reject Interlocal Agreement with KISD and fully fund Project 5S without KISD contribution.
(2) Authorize the execution of an Interlocal Agreement with KISD to help fund the construction of a 12-inch sewer line in the Trimmier Creek Basin.
Which alternative is recommended? Why?
Alternative two (2) is recommended due to KISD’s willingness to help fund Master Plan Project 5S up to $750,000.
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The 2019 Water and Wastewater Master Plan cost estimate for Project 5S is $1,620,700. Under the terms of the Interlocal Agreement, KISD will pay to the City 50% of the project’s cost not to exceed $750,000. The City will be responsible for the remaining costs.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes, the City’s portion is available in the Water & Sewer CIP Fund accounts 387-8934-493.69-01 and 387-8934-493.69-03 and the KISD portion will be included in a subsequent budget amendment upon approval.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Authorize the City Manager, or designee, to execute an Interlocal Agreement that provides for a contribution from Killeen Independent School District in an amount not to exceed $750,000 to partially fund construction of a sewer line in the Trimmier Creek Basin.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Interlocal Agreement