Posting Language
Title
Authorize negotiation and execution of an Advance Funding Agreement with Texas Department of Transportation for the relocation and adjustments of existing water and wastewater lines and appurtenances in conflict with the Interstate Highway 35 Capital Express Central Roadway Project Packages 1 and 2 in the amount of $9,252,250 plus a 10 percent contingency of $925,225, for a total amount not to exceed $10,177,475. Funding: $10,177,475 is available in the Capital Budget of Austin Water.
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Lead Department
Austin Water.
Fiscal Note
Funding: $10,177,475 is available in the Capital Budget of Austin Water.
For More Information:
Vicky Addie, 512-974-0332, Vicky.addie@austintexas.gov.
Council Committee, Boards and Commission Action:
November 10, 2026 - to be reviewed by the Water and Wastewater Commission.
Additional Backup Information:
The Texas Department of Transportation (“TxDOT”) Interstate Highway 35 Capital Express Central Roadway Project Packages 1 and 2 includes the relocation of existing water and wastewater lines along Interstate Highway 35 from MLK Blvd to Lady Bird Lake (LBL). The relocations of these water and wastewater lines will involve placing them within city right-of-way (ROW) bounded by East 46th Street to the north, Lafayette Ave to the east, Peck Ave to the west and Clyde Littlefield/Manor Road to the south. In accordance with the regulations for federally funded projects, TxDOT is responsible for providing 100 percent of the engineering and construction costs as well as reimbursing the City for inspection and administrative cost of relocating approximately 8,510 linear feet of water lines and 7,920 linear feet of wastewater lines and appurtenances within the Interstate Highway 35 right-of-way.
The project also provides an opportunity for Austin Water to upgrade its existing infrastructure to better serve the growing Austin Metropolitan area. The requested upgrades and additions are considered “betterments” and will be constructed by TxDOT as part of the project and funded by Austin Water. The betterment portion consists of constructing about 12,228 LF of water lines and 8,240 LF of wastewater lines and new appurtenances including service lines, gate valves, wet connections, manholes, and air release valves.
The estimated total contract amount associated with construction, relocation, and adjustments of existing infrastructure, including betterments is $ 38,886,827-. The Advance Funding Agreement allows Austin Water to pay TxDOT an amount of $9,252,250 for construction of betterments plus a 10 percent construction contingency in the amount of $925,225 for a total contract amount of $10,177,475. A 10 percent contingency in funding is requested to cover possible changes to the scope of betterments that may become necessary during construction due to unforeseen conditions.
The roadway in this Advance Funding Agreement was identified as a transportation improvement project by TxDOT. Austin Water’s existing water and wastewater lines are required to be adjusted to accommodate the proposed roadway improvements, and this agreement will allow water and wastewater infrastructure in conflict to be adjusted. Executing this Advanced Funding Agreement will bring together the efforts of TxDOT and Austin Water in the design and construction of the roadway improvements and utility adjustments to reduce impacts to the public and save cost.
The construction of the roadway improvement of Interstate Highway 35 from MLK Blvd to LBL is tentatively scheduled to start within six to eight months after the TxDOT letting process starts. The letting process is tentatively scheduled for March 2027. The water and wastewater line relocations and construction are scheduled to be done first as part of the roadway improvement construction. All dates are dependent upon TxDOT design and construction contracts.
This project is managed by Austin Water.
This project is located within zip codes 78705 and 78722 (District 9).
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