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Item 4ECity of Southlake, Texas MEMORANDUM November 7th, 2006 TO: Shana Yelverton, City Manager FROM: Robert H. Price, P.E., Director of Public Works, x8097 SUBJECT: Resolution No. 06-066, Approve a resolution in support of the City of Grapevine and Tarrant County's request to pursue "Pass Through" financing on State Highway 26 in Grapevine. Action Requested: Approve resolution 06-066 and authorize Mayor to issue letter to Texas Department of Transportation Commission in support of Grapevine and Tarrant County's request to participate in Pass Through financing on the construction of SH 26 between Colleyville City Limits and the interchange with SH 114. Background Information: The City of Grapevine and Tarrant County have applied for reimbursement funding for the construction of SH 26 between Colleyville City Limits and the interchange with SH 114. They have asked for a show of support from the neighboring communities to be exhibited by sending a letter of support to the members of the TxDOT Commission. In a pass -through agreement, a local government can agree to shoulder the cost of construction, and TxDOT reimburses the public partner the cost of the project through periodic payments based on the numbers and types of vehicles using the roadway. The new law, approved by the 2005 session of the Texas Legislature, allows cities and counties to enter into "pass -through" financing agreements with the Texas Department of Transportation, and begin construction on needed roadways more quickly. The widening of SH 26 through the City of Colleyville is currently funded with the start of construction in the near future. The initial funding by the local entities enables the Grapevine portion of the SH 26 project to proceed in concert with the Colleyville section at a time when the state does not have short term funding available. The local entities have requested that they be reimbursed by the state over a reasonable time frame to enable them to use their funds for additional projects to benefit their citizens. It should be noted that no actual tolling on the roadway will occur as a result of this financing agreement. Financial Considerations: None Citizen Input/ Board Review: None Legal Review: None Alternatives: Approve or Deny. Supporting Documents: Letter of Support Staff Recommendation: Staff recommends that City Council approve Resolution No. 06- 066 and authorize the Mayor to issue a letter to the members of Texas Department of Transportation Commission in support of Grapevine and Tarrant County's request to participate in "Pass Through" Financing of the construction of the Grapevine portion of SH 26. Staff Contact: Robert H. Price, P.E., x8097 RESOLUTION NO. 06-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS EXPRESSING SUPPORT FOR THE CITY OF GRAPEVINE AND TARRANT COUNTY'S APPLICATION FOR REIMBURSEMENT FUNDING FOR THE CONSTRUCTION OF SH 26 BETWEEN THE CITY OF COLLEYVILLE CITY LIMITS AND THE INTERCHANGE WITH SH 114. WHEREAS, the City of Southlake desires to support regional transportation projects, such as the Grapevine portion of SH 26 between the City of Colleyville City Limits and the interchange with SH 114, which provide for the flow of traffic resulting from the rapid growth of the Northeast Tarrant County area; and WHEREAS, the City of Southlake recognizes the leadership positions that the City of Grapevine and Tarrant County are taking by committing to provide initial funding participation for the above referenced On System project in the respective amounts of $2,000,000 and $6,400,000; and, WHEREAS, the City of Southlake recognizes that the initial funding by the local entities enables this project to proceed in concert with the Colleyville section at a time when the State of Texas does not have short term funding available. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: 1. That the City of Southlake supports the request of Grapevine and Tarrant County for "Pass Through" Financing of the construction of SH 26 between the City of Colleyville City Limits and the interchange with SH 114; and, 2. That the City of Southlake urges the Texas Department of Transportation to give favorable consideration to the above referenced request for use of "Pass Through" financing on SH 26; and, 3. That the City Council of the City of Southlake hereby authorizes the Mayor to dispense a letter to the members of the Texas Transportation Commission expressing the City of Southlake's support of the use of "Pass -Through" financing for the construction of the Grapevine portion of SH 26. PASSED AND APPROVED THIS THE 7th DAY of NOVEMBER, 2006. Andy Wambsganss Mayor ATTEST: Lori A. Farwell, TRMC City Secretary November 7, 2006 Honorable Ric Williamson, Chairman Honorable John W. Johnson, Commissioner Honorable Hope Andrade, Commissioner Honorable Ted Houghton, Commissioner Texas Department of Transportation 125 E. 11 t" Street Austin, Texas 79701 Re: SH 26 Pass Through Financing Dear Sirs: On behalf of the City of Southlake, I want to express our strong support for the City of Grapevine's and Tarrant County's application for reimbursement funding for the construction of SH 26 between the Colleyville City Limits and the interchange with SH 114. The City of Grapevine and Tarrant County continue to take a leadership role in regional transportation issues by committing to provide initial funding participation for this On System project in the respective amounts of $ 2,000,000 and $ 6,400,000. Northeast Tarrant County, including the City of Grapevine and surrounding communities, continues to experience rapid growth. The widening of SH 26 through the City of Colleyville is currently funded with the start of construction in the near future. The extension of this widened pavement section northeast through Grapevine to its interchange with SH 114 is critical to provide the capacity necessary for this highway corridor to function properly. The initial funding by the local entities enables this project to proceed in concert with the Colleyville section at a time when the state does not have short term funding available. The local entities have requested that they be reimbursed by the state over a reasonable time frame to enable them to use their funds for additional projects to benefit their citizens. I urge you to give favorable consideration to this request for reimbursement to these two supportive partners. Sincerely Andy Wambsganss Mayor