Title
Consider a memorandum/resolution authorizing a contract amendment for professional design services with BGE, Inc., for the final design of the Rancier Avenue project, in the amount of $7,396,410.95.
Body
DATE: October 21, 2025
TO: Kent Cagle, City Manager
FROM: Andrew Zagars, P.E., City Engineer
SUBJECT: Contract Amendment for professional design services with BGE, Inc., for the final design of the Rancier Avenue Project
BACKGROUND AND FINDINGS:
The Fiscal Year (FY) 2023 Capital Improvement Plan (CIP) 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 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 grant with the Killeen-Temple Metropolitan Planning Organization (KTMPO) 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 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 Texas Department of Transportation (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.
On November 5, 2024, the city council authorized the execute of a design amendment to proceed the design to 30%. This proposed amendment will continue the design to final plans and include bidding for construction. The amendment covers all the costs associated with TxDOT coordination, final drainage design, final utility design and relocations, pavement design, signal design, and landscape design. The amendment also included the cost for the needed work for right-of-way services, including negotiations with property owners and title work.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms with state and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total contract amendment is $7,396,410.95.
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes, for FY 2026.
If not, where will the money come from?
Tax Increment Reinvestment Zone (TIRZ) Fund (226-56200-900-190-923009) - FY 2026: $3,800,000; FY 2027: $3,100,000; and FY 2028: $496,410.95.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
es. Upon approval of the mid-year budget amendment, sufficient funds will be available in the current fiscal year. Future years’ allocations will be shifted to the TIRZ fund as approved through each subsequent budget.
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager, or designee to execute a contract amendment for professional design services with BGE, Inc., for the final design of the Rancier Avenue project, in the amount $7,396,410.95. This amendment includes the final design and right of way real estate work needed to complete the design and have the project ready to bid for construction.
DEPARTMENTAL CLEARANCES:
Engineering Services
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Proposal
Agreement
Presentation