Title
Consider a memorandum/resolution authorizing an amendment to the Professional Services Agreement with BGE Inc. to complete the 30% design of the Rancier Avenue Replacement and Streetscaping Improvements Project, in the amount of $2,037,006.37.
Body
DATE: November 5, 2024
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: Authorize the execution of an Amendment to the Professional Services Agreement with BGE Inc. to complete the 30% Design of the Rancier Avenue Replacement and Streetscaping Improvements Project
BACKGROUND AND FINDINGS:
The FY 2023 Capital Improvement Plan includes the Rancier Avenue Replacement and Streetscaping Improvements Project as an unfunded project for design. However, the project was intended to be funded using Tax Increment Reinvestment Zone Number 2 (TIRZ) funding. At the September 8, 2022 TIRZ Board Meeting, the TIRZ Board voted unanimously to allocate up to $1 million of TIRZ funding to complete the schematic design of the Rancier Avenue Project.
In addition to the TIRZ funding, the City applied for a KTMPO Grant in October 2020 for funding to improve the sidewalks and landscaping along Rancier Avenue. The grant was selected and awarded $3,240,000.00 in construction funding that will be available in 2024.
On December 6, 2022, the City Council authorized a professional services agreement (PSA) with BGE Inc. to complete the schematic design of the Rancier Avenue Replacement and Streetscaping project in the amount of $813,453.73. The schematic design includes background research of the limits between Fort Hood Street and W.S. Young Drive and TXDOT required studies that include Environmental Review, Archaeological Studies, Historical Studies, Threatened and Endangered Species, Water Resources, and a Hazardous Materials Initial Site Assessment. The schematic design also includes public involvement through public and stakeholder meetings, topographic surveying, utility coordination, roadway design, stormwater drainage design, urban landscaping, and grant application support.
In FY 2023-2024 TIRZ approved increasing the design funding for this project to a total of $3,000,000.00 in anticipation of the contact amendment to further the project design work beyond the completion of the schematic design.
With the completion of the schematic design efforts, the City requested a proposal from BGE to continue the design and support efforts for the project. BGE submitted a proposal to further project design work to 30% design completion. Like the previous contract, BGE will continue with the public involvement and grant application support. Also, the 30% design will solidify the design elements in the project including utility coordination, geotechnical investigations, design, required TXDOT Environmental Review completion, and beginning the right-of-way acquisition efforts.
Ultimately, an estimated additional $5.0 million in funding will be needed to complete 100% project design and construction documents.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A.
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The fee for services is in the amount of $2,037,006.37
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, funding is available as part of the FY 2025 Adopted Capital Improvement Program, which includes the Rancier Drive Reconstruction project (923009) as an ongoing initiative. This allows any unspent funds to roll over into the next fiscal year. Sufficient funding will be rolled into FY 2025 following the completion of the CIP budget roll, scheduled for December 2024, to account #226-56200-900-190-923009 in the TIRZ Fund, designated for Design/Engineering.
RECOMMENDATION:
Staff recommends that the City Council authorize the execution of an Amendment to the Professional Services Agreement with BGE Inc. in the amount of $2,037,006.37 for the Design of the Rancier Avenue Replacement and Streetscaping Improvements Project, and the City Manager, or his designee, is expressly authorized to execute any and all change orders with the amounts set by State and Local Law.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Proposal
Contract Amendment
Presentation