Buda council hears mid-program bond update; staff flags roughly $14 million shortfall and readies $64M in bids

The Buda City Council received a mid-program briefing on the 2021 bond program, where staff said the program is now more than 1,100 days in and about 54.3% complete. The presentation focused on schedule, current and expected costs, and a set of near-term construction packages the city plans to bid next year.

Program staff said widespread increases in labor and material costs — particularly steel, concrete and fuel — have generally plateaued at a higher-than-expected level and have consumed much of the contingency that the program assumed in 2020. "This isn't the hitting of the panic button or sounding of alarm," the program manager said, but the city faces a shortfall the staff estimated in the low tens of millions and will need to make choices about priorities, timing and scope.

Staff outlined a procurement pipeline that includes roughly $64,000,000 in anticipated bidding in the spring and summer quarters, highlighting three projects coming before council: Onion Creek Trail, Garlic Creek Trail and an interim East Main Street expansion solution. For Garrison Park the staff reported the project is nearing final design but currently shows approximately $2,630,000 in funding shortfall; staff said they will return with options to leverage other available funds or recommend a prioritized scope to preserve the project’s core elements.

On trail projects, staff noted the bid results showed a range of prices and recommended pursuing the complete loop and the bid alternate that uses an engineered surface product. The staff described the surface as an engineered, locked-aggregate product (referred to in materials and contractor submittals as "Staylock") that is more expensive up front but intended to lower maintenance costs over time; staff said manufacturer representatives and field-service training will be part of pre-construction to protect warranties.

Council members pressed staff on several recurring risks: TxDOT-dependent turnbacks and signalization (manufacturing lead times for signal poles can be many months), right-of-way acquisition uncertainties, and the potential for remobilization costs if projects are broken into smaller phases. Staff responded that some projects avoid right-of-way acquisition and that bid alternates and phased delivery are tools they will use to balance affordability and program objectives.

The council praised the depth of planning and the work of the bond oversight group; staff said a full slate of the larger projects will go to market next year and that, while the city can pursue grants, there is a tradeoff between grant timing/requirements and the city’s objective to keep projects moving.

Ending: Staff will return with specific funding recommendations and prioritized options for projects with shortfalls; multiple trail and road projects are scheduled for award and start of work in coming months depending on final council approvals and contractor mobilization.