In a nutshell
According to the agreement, the city will be responsible for utility relocation costs totaling $5.7 million—$424,135 for design costs and $5.3 million for construction costs.
The relocation is needed due to a road widening project so that the utilities are out of the right-of-way, according to the agenda.
“It's always customary for the utility holder to be responsible to pay for the utility relocations,” Norm McGuire, assistant city administrator and public works director, said in the May 21 workshop meeting. “This one is a tremendous segment of both water and sewer utilities.”
McGuire said TxDOT will design and construct it. However, it is an obligation that the state requires the city to pay, he said.
The funding for the project will come from capital expenditures, but were not budgeted during the Capital Improvement Plan process, per the agenda item.
“The director of finance certifies that there are available revenues in excess of those estimated in the budget or that unreserved/unencumbered fund balance is available,” states the agenda.
