Rosenberg terminates railroad culvert project, agrees to pay contractor $30,812.52

The Rosenberg City Council unanimously approved Resolution No. R-3912 to terminate a construction contract (Bid No. 2025-23B) with T Construction, LLC for a proposed culvert under railroad tracks near Old Richmond Road and Ward Street, part of a Community Development Block Grant Mitigation (CDBG-MIT) drainage project. Rigo, the presenting staff member, said the city awarded the bid earlier in 2025 but encountered unforeseen coordination and cost issues with railroad companies; BNSF quoted a flagging cost in the order of hundreds of thousands of dollars, making the activity financially infeasible. Rigo said the city negotiated with the contractor and the General Land Office and concluded that removing the activity from the overall grant-funded project would not compromise the project’s low-to-moderate-income compliance. "There was numerous unforeseen challenges related to coordinating with the railroad companies for the covert crossing. The high cost required by BNSF for flagging, along with the anticipated similar and reimbursement for all expenses to date totaling $30,812.52," Rigo said. Councilmembers asked about the ordered materials and restocking fees; staff said the city would return culvert pipe and other materials and expect a restocking fee of approximately $19,641. The culvert pipes originally cost about $110,000; the contractor had already ordered material. City staff told the council the General Land Office approved deleting this activity and that the unused grant funds could be reallocated to other drainage projects included in the overall CDBG-MIT program. The council voted 7-0 to approve the termination and the related payment to the contractor.