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City prepares for large I‑20 utility relocations; TxDOT to reimburse but city must front costs
Summary
City staff notified council the I‑20 Segment 1 (Phase B) widening requires relocation of roughly 54 utility conflicts between SH 1936 and Loop 338. Probable relocation costs were estimated at about $63 million; TxDOT will reimburse 100% but the city must initially fund engineering and construction and work out reimbursement timing and financing.
Public works and finance staff updated the council on a TxDOT‑led I‑20 widening project (Segment 1, Phase B) that requires relocating city utilities between Highway 1936 and Loop 338. Alex (Utilities) said the relocation list includes 54 conflicts and some very large water and wastewater mains, including a substantial wastewater line to the Darrington plant. City staff described the TxDOT process: the city will design and construct relocations, submit reimbursement packets to TxDOT and receive reimbursement; staff said TxDOT will reimburse 100% but typically does not advance funds for design and the process for reimbursement can take time. The engineer’s probable cost for relocations was presented as approximately $63 million (including a 25% contingency for large‑line work); the design phase alone is estimated at about $4.7 million payable upfront until TxDOT approves the design. City finance staff outlined options to fund the upfront work: (1) request a partial advance from the Odessa Development Corporation (ODC) — staff suggested a $20 million cushion to float early expenses; (2) apply for a State Infrastructure Bank loan (pre‑approved interest shown at about 4.422%) noting that interest would not be reimbursable by TxDOT; (3) seek MPO or other partner funding (staff said MPO assistance for design might be limited — roughly $5 million was a rough estimate); or (4) use fund balance (staff cautioned this would reduce reserves available for other planned projects). Staff said segment construction timing is aligned with TxDOT’s letting in 2029 and that the city’s schedule aims to complete relocations before TxDOT construction begins to avoid simultaneous contractors in the corridor. Council members expressed concern about the city fronting large sums for a reimbursable project, the timeline for reimbursement and the effect on ODC fund balance and other planned projects. Staff said they will meet with TxDOT and ODC finance to firm reimbursement cadence, prepare an ODC funding request and produce a 3–5 year project plan for ODC to consider at its budget meeting.
