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Item 4C - Memo CITY OF SOUTH LAKE Item 4C MEMORANDUM October 06, 2026 To: Alison Ortowski, City Manager From: Pritam Deshmukh, P.E. Director of Public Works Subject: Resolution No. 26-032, Authorizing execution of an Advance Funding Agreement (AFA) with the Texas Department of Transportation for the Brumlow Avenue Widening Project. Action Requested: Resolution No. 26-032, Authorizing execution of an Advance Funding Agreement (AFA) with the Texas Department of Transportation for the Brumlow Avenue Widening Project. Background Information: The City of Southlake received $2.5 million in federal Highway Infrastructure Program funding for the Brumlow Avenue widening project through the Consolidated Appropriations Act of 2024. The funding will be used for the Engineering phase of the project, including schematic development, environmental clearance, and development of plans, specifications, and estimates (PS&E). The project will widen Brumlow Avene from East Continental Boulevard to SH 26 from the existing two-lane undivided roadway to a four-lane divided arterial. Proposed improvements include roadway and intersection improvements, drainage and utility improvements, bicycle and pedestrian facilities, and other associated improvements. The project is intended to improve mobility and connectivity between SH 26 and FM 1709 and support the long-term transportation needs of the area. As a condition of the federal funding, the City and TxDOT will enter into an Advance Funding Agreement establishing the responsibilities and financial commitments of each party. The City will manage the Engineering phase, including procurement and management of an engineering consultant in accordance with applicable federal and TxDOT requirements, with TxDOT providing project oversight and review. Acceptance of the federal funding will require the City to follow applicable federal and TxDOT requirements throughout the Engineering phase. This includes a federally compliant consultant Page 1 of 3 Item 4C selection procurement process, TxDOT review and approval of engineering services, environmental clearance, and additional project documentation and oversight. The City will continue to manage the project, but federal authorization must be obtained before proceeding with work intended for federal reimbursement. The proposed resolution authorizes the City to enter into the AFA and provides the authorization required by TxDOT prior to execution of the agreement. The AFA is currently being finalized with TxDOT and will be presented separately to City Council for consideration. Following execution of the AFA and receipt of federal authorization for the Engineering phase, the City will begin the federally compliant consultant procurement process. Staff anticipates bringing an Engineering Services Agreement to City Council for consideration during FY27. The federal funding must be obligated by September 30, 2027. Once the engineering consultant is under contract, the project will advance through schematic development, environmental clearance, and final PS&E. The current federal funding is limited to the Engineering phase. Future right-of-way acquisition and construction will be addressed separately as the project advances. Financial Considerations: The project has been awarded $2.5 million in federal funding for the Engineering phase. The funding provides for 80 percent federal participation and requires a 20 percent local match. The City's anticipated local participation associated with the AFA will be presented with the finalized agreement. Funding for the City's participating is available in the approved Capital Improvements Program. Strategic Link: These items link to the City's Strategy Map by delivering on the focus areas of Infrastructure. It provides this by focusing on Financial Objective F1: Safeguarding the public trust through a commitment to thoughtful planning and responsible, conservative financial management. Citizen Input/ Board Review: N/A Page 2 of 3 Item 4C Legal Review: The City attorney reviewed and approved this resolution. Alternatives: The City Council may approve or deny the resolution. Staff Recommendation: Approve Resolution No. 26-032, Authorizing execution of an Advance Funding Agreement with the Texas Department of Transportation for the Brumlow Avenue Widening Project. Supporting Documents: Attachment A - Resolution No. 26-032 Staff Contact: Pritam Deshmukh, P.E. Director of Public Works Jeff Ginn, P.E., City Engineer Jimmy Sibert, P.E., Deputy City Engineer Josue A. Hernandez, P.E., Civil Engineer Page 3 of 3