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Council approves just-over-$26 million contract to rebuild South Elm Street
Summary
The Keller City Council voted to award a construction contract to Fane Group Inc. to reconstruct South Elm Street, adding sidewalks, patterned paving, landscaping and a new parking lot. Councilmembers and staff outlined an 8-week mobilization, a year‑end 2027 completion target and a multi-source funding plan.
The Keller City Council voted Jan. 21 to award a construction contract to Fane Group Inc. for the South Elm Street reconstruction project in Old Town Keller, a project staff said will cost just over $26 million.
The project is the culmination of roughly four years of planning and design. Public Works Director Alonzo Leon said the work will include a roundabout at Bear Creek, widened sidewalks, patterned/colored street paving, enhanced crosswalks, street furniture, landscaping, wayfinding arches and plaques, a reconstructed and raised bridge north of the roundabout, and new underground utilities. The contract also includes a new parking lot the city negotiated to purchase from a church; staff estimated that lot will provide about 150–158 parking stalls depending on final design and added roughly 50 total on‑street parallel parking stalls distributed along Elm Street (the city currently has about 30 concentrated at the north end).
Why it matters: Council members and staff described Elm as a key Old Town investment intended to support redevelopment and the neighborhood’s parking needs. Leon said the county and the city have partnered on funding and that the work represents a full street reconstruction with pedestrian and streetscape improvements as well as water, sewer and drainage upgrades.
What council heard: Leon recapped the procurement history: earlier bids were rejected; a November rebid produced five qualifying bids and brought prices down. He recommended awarding the contract to Fane Group for “just over $26,000,000.” Leon and staff said the contractor will need four to six weeks to finish contract documents and insurance and roughly another two weeks to mobilize, putting the earliest visible activity on site at about eight weeks. Leon said the project should be completed by the end of calendar year 2027.
Funding and financial details: City finance staff described a mixed funding approach. The city issued approximately $10 million in debt in 2024 toward the project, and staff said the county has contributed roughly $7.0–7.5 million in bond and discretionary funds. Council staff said the city expects to apply about $5.5 million in project savings and additional general‑fund cash (staff identified roughly $1.8 million from one project and about $1.3 million from another) and to use interest earnings accumulated in fiscal 2024. City staff said the finance plan was designed to avoid cutting other projects in the near‑term capital improvement program. (Dollar amounts were presented by staff during the meeting; some were given as approximations.)
Public engagement and next steps: Staff said letters have been sent to property owners within 500 feet and that a pre‑construction meeting will follow council approval to discuss phasing, a schedule and a contact number for neighbors. Leon said the contractor will place a construction trailer on the new parking lot for the project’s duration and that an on‑site inspector will be present.
Council action: Councilwoman Bridal moved to approve the construction award; the motion received a second and carried. The motion and approval were recorded on the Jan. 21 agenda; the transcript did not include a roll‑call tally of individual yes/no votes.
The city will proceed to a pre‑construction meeting and begin contract closeout work; staff said materials ordering will begin immediately after contract award to reduce lead times.
