The Trinity River Vision Shell Game Continues

WHO pays?  YOU do.

What now?  The bridge at Henderson....yes, again. 

Here is one of the emails we were forwarded about this.  YOU should be there Tuesday.  It could save YOU some money.

See the attached M & C which the Council is being asked to ratify Tuesday night. Staff applied for a state grant to reimburse some costs for the TRV Henderson Street Bridge and now they are asking Council to ratify the application.

Note that if the grant is approved, the state would reimburse the funds over a 10-15 year period and that just 80 to 90 percent of the money is actually reimbursed. See if you can figure out from the vague descriptions in the M & C exactly what is to be reimbursed. This one calls for a detailed explanation at pre-council about how much more the City may be out because everything won't be reimbursed even if they do get the grant.

The shell game continues. City Council candidates need to make an issue of this -- our city is strapped for funds, but we continue to front funds or not be reimbursed fully for expenses on the TRV project. Citizens probably won't like this and they need to know about it.

Award of Contract

1. M&C C-24837

- Ratify the Application for and Authorize Acceptance of a Grant, if Awarded, of Pass Through Financing Project Funds in an Amount Up to $10,510,000.00 for the Construction of the New Henderson Street Bridge with the Texas Department of Transportation and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9)

M & C 24837

DATE: 4/5/2011 REFERENCE NO.: C-24837 LOG NAME: 06HENDERSON STREET BRIDGE CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO SUBJECT: Ratify the Application for and Authorize Acceptance of a Grant, if Awarded, of Pass Through Financing Project Funds in an Amount Up to $10,510,000.00 for the Construction of the New Henderson Street Bridge with the Texas Department of Transportation and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9)

RECOMMENDATION:

It is recommended that the City Council:

1. Authorize the City Manager, if selected, to execute a contract with the Texas Department of Transportation for the reimbursement;

2. Ratify the application for and authorize the City Manager to accept, if awarded, a grant in an amount up to $10,510,000.00 in Pass Through Financing Project Funds from the Texas Department of Transportation for construction of the Henderson Street Bridge Project; and

3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grant Fund by $10,510,000.00.

DISCUSSION:

The Texas Department of Transportation (TxDOT) has allocated $250 million in funding for the 2011 Pass Through Financing Program. Applications were dueMarch 1, 2011, and qualifying projects had to be part of TxDOT's highway system ("on-system") in order to be eligible for selection. Reimbursement is only for local dollars that were contributed for construction by a local agency, and full reimbursement occurs over a 10-15 year period. On average, 80-90% of local costs are reimbursed with respect to selected projects. However, the actual reimbursement rate is negotiated after project selection and is primarily based upon the amount of traffic annually "passing through" the transportation improvement.

After staff reviewed multiple city projects, the only project meeting TxDOT's criteria for the Pass Through Financing Program was the new Henderson Street Bridge. This Bridge is located on State Highway 199 and it is being constructed in order to span the new bypass channel that is part of the Trinity River Vision – Central City Project. The new bridge is expected to begin construction in mid-2012 with an estimated construction cost of $20.26 million, including an additional $3.05 million in construction contingencies. Of this amount, $12.8 million is already funded by the federal government with the remaining $10.51 million coming from local funds. The City's portion comes from funding that was previously set aside by voters in the 2004 and 2008 Capital Improvement Programs.

The purpose of the application that has already been submitted to TxDOT for Pass Through Financing is to request reimbursement for the local dollars already budgeted for the Henderson Street Bridge Project. Because of the short turnaround with respect to the grant program submittal deadline, and because this program does not require any additional local matching funds beyond those already budgeted, the application was submitted prior to the March 1 deadline. Therefore, the City Council is being asked to ratify the application process. A letter of support from the Regional Transportation Council (RTC) that was approved at their February 10, 2011 meeting was also included in the application.

This project is located in COUNCIL DISTRICTS 2 and 9, Mapsco 62U, 62Y and 62Q and will benefit the entire City. FISCAL INFORMATION/CERTIFICATION:

The Financial Management Services Director certifies that upon approval of the above recommendations, receipt of the grant, and adoption of the attached appropriation ordinance funds will be available in the current operating budget, as appropriated, of the Grants Fund. Funds will be reimbursed by grantor after expenditures are made.

TO Fund/Account/Centers

GR74 451942 006302459000 $10,510,000.00

GR74 5 (VARIOUS) 006302459300 $10,510,000.00

FROM Fund/Account/Centers

Submitted for City Manager's Office by: Fernando Costa (6122)

Originating Department Head: Randle Harwood (6101)

Additional Information Contact: Mark Rauscher (2446)