The City of Sugar Land has multiple drainage outfalls that discharge into the Fort Bend County Levee Improvement District No. 2 (LID 2) facilities.  In March of last year, staff met with LID 2 to discuss the LID's upcoming ditch lining project for Ditches "B", "B-1", "C", "C-1", and "E".  LID 2 staff inquired if the City would be willing to partner with the LID to complete a storm water outfall replacement project, similar to a project completed in 2015 on Ditches "A", "D", & "G".  This would allow for the maintenance of the storm sewer outfalls, efficiencies in the project schedule, resolve potential access issues, and maintain a safe project site.

Staff worked with LID 2 to determine the outfalls that would be replaced and a scope of work.  It was determined that 18 City-owned outfalls are in need of replacement.  LID 2 has completed bidding for this project and the City's portion, including contingency and management fees is $227,711.  The low bidder was Texas Wall and Landscape. This project is the first for LID 2 that will address ongoing issues related to the ditch system as well as increased capacity for channel storage which they identified through their post Hurricane Harvey analysis. 

Funding for this project was planned in the City's Capital Improvement Program - DR1902 - Outfall Structure Improvements with LID #2, with a planned budget of $400,000. With LID 2's desire to get this started early the City will need to provide funds this fiscal year through a budget amendment from CIP - Fund Balance. Year-to-date Council has already approved budget reductions, and recognized savings in the CIP fund of $593,035, as a result of lower contract awards. As result of this project’s timing moving up, the CIP project will not appear as a new project in the FY19 CIP, as originally planned.

The Development Participation Agreement is an Interlocal Agreement and is authorized by Chapter 791, Tex. Gov't Code.

Staff recommends that the City Council authorize the Development Participation Agreement between the City of Sugar Land and Fort Bend County Levee Improvement District No. 2 in the amount of $227,711, and a budget amendment of $227,711 from CIP Fund Balance.