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Council approves pipeline easement payment, Union Pacific review fees and Rocket Lane change orders as road costs rise
Summary
Council authorized $94,600 to Enterprise Texas Pipeline Company for a permanent easement and recoating related to Topperwine Road Phase 1, approved a $50,000 estimated reimbursement agreement with Union Pacific, and accepted remaining Rocket Lane change orders while imposing liquidated damages to reduce the contractor payment.
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City of Converse council members on May 6 approved three actions tied to major road projects, authorizing an easement payment and recoat work for a pipeline under a future arterial, agreeing to reimburse Union Pacific for engineering reviews and settling remaining change orders for the Rocket Lane expansion.
Staff said as Topperwine Road Phase 1 moved into final design, engineers identified a 20-inch natural-gas transmission pipeline beneath Hilltop Avenue that intersects the new right-of-way. Enterprise Texas Pipeline Company agreed to sell additional easement to the city for $100 but required re‑coating and remediation work on the pipeline to protect it from heavier traffic and vibration; staff said the company provided cost estimates. Assistant City Manager Nina Nixon Mendez explained the total payment proposed is $94,600 — a package that, staff said, includes a $75,000 recoat estimate, about $9,000 for asbestos remediation and roughly $10,500 for inspection.
Staff also presented a proposed reimbursement agreement with Union Pacific Railroad to review Topperwine alignment plans at multiple submittal stages; review and reimbursement work is estimated at about $50,000. City staff said TxDOT required railroad coordination as part of intersection realignment work near FM 1976.
In separate but related capital‑project business, council considered outstanding change orders on the Rocket Lane Expansion Project. Public works and engineering staff presented seven remaining change‑order requests totaling roughly $160,900 and recommended approval. City engineers described a number of issues, including a grading/elevation discrepancy that required additional retaining walls, curb work and concrete (a Time & Material change order partly tied to rework of a type‑F curb), as well as other adjustments. Staff also recommended applying previously calculated liquidated damages for delay totaling about $62,500; applying that penalty reduced the council’s additional payment to about $98,500. Staff reported the Rocket Lane project is over budget by approximately $2,367,249.31 overall and that prior change orders had already been approved.
Council approved the Enterprise payment and Union Pacific reimbursement authorization and voted to accept the Rocket Lane change orders with the liquidated‑damages offset. Staff said the pipeline easement payment would be charged to the project’s certificate of obligation funding that had been previously authorized. The city manager said staff will recommend a workshop to discuss borrowing options and a broader capital‑financing plan as the municipality faces multiple upcoming capital needs.
Council discussion touched on whether the city should require an indemnification clause in the easement; staff reported Enterprise would not accept the city’s indemnity language and staff recommended moving forward without it because the city code requires liability insurance and other protections. Council also asked for documentation of the pipeline cost breakdown, which staff said Enterprise had provided in quotes.
