PRESENTER: Presenter
Scott McClelland, Assistant Director of Transportation & Construction Services
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SUBJECT: Title
Public hearing, discussion, and possible action to approve an expenditure of up to $2,400,000 for additional construction costs of Castell Avenue Phase 1 - Coll Street Drainage Improvement, pursuant to 501.103 of the Texas Local Government Code.
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DEPARTMENT: Transportation & Construction Services
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COUNCIL DISTRICTS IMPACTED: 5
BACKGROUND INFORMATION:
In the Fall of 2021, the New Braunfels Economic Development Corporation (NBEDC) contracted with Kimley-Horn to provide a preliminary engineering design and streetscape plan for South Castell Avenue from Bridge Street to Business 35. The findings from the engineering report were presented to the NBEDC in December 2022 and phases were identified as next steps. Phase 1 detailed the need for drainage improvements on Coll Street between Castell Avenue and the Comal River. As part of the 2023 Bond Project prioritization process, this phase was ranked as the number one project priority by the NBEDC.
On March 9, 2023, NBEDC approved funding for Kimley-Horn to complete the final design of the Castell Avenue Phase 1 Project. The NBEDC received an update on this project at its workshop meeting on January 24, 2024. At that time, 60% design plans were presented and a cost estimate was provided. Three alternatives were offered to the NBEDC for consideration: 1. Adding proposed trees only; 2. Adding enhanced landscaping with plantings and hardscapes; and 3. Completing underground electric and telecommunication conversions and adding street lighting. The NBEDC Board agreed to add all three alternatives to the project. For the utility companies to begin with their design of the underground conversion, a commitment for construction funding was required.
On February 14, 2024, the NBEDC held a public hearing and approved $7.2M in construction funding. While the construction estimate at the time was based on 60% of design, staff has been updating the Board on the project cost as the design has progressed, and additional cost estimates have been prepared.
Construction bidding for this project was completed April 2, 2026. Four bids were received from qualified contractors and evaluated by staff. Based on the bid from the selected best value contractor, a funding gap of $2.4M has been identified beyond the construction funding of $7.2M approved by NBEDC in February 2024. The total construction cost and construction administration for Phase 1 of the Castell Street improvements is now estimated at $9.6M.
The NBEDC received a presentation about this project expenditure at its May 21, 2026 meeting. This project falls under the Planning and Infrastructure category in the NBEDC Strategic Priorities. If approved, the New Braunfels City Council will consider action in July or August 2026 to approve the expenditure and award the construction contract.
ISSUE:
The final bids for the Castell Street reconstruction - Phase 1 were received. The final amount is $2.4M greater than the original $7.2M estimate from February 2024 for a total of $9.6M.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☒Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
The original $7.2M expenditure has been incorporated into financial forecasting as a debt issuance with $600,000 of estimated annual debt service. An additional $2.4M will cost approximately $200,000 in additional annual debt service. The NBEDC currently has approximately $10.3M of annual revenue with approximately $2.8M in annual debt service. The additional expenditure will increase annual debt service payments to approximately $3M per year.
The NBEDC has available funds to approve this expenditure.
Recommendation
RECOMMENDATION:
Staff recommends approval of the project expenditure to fund the additional construction of Castell Avenue Phase 1 - Coll Street Drainage Improvement.