Fair Oaks Ranch approves interlocal agreement with Bexar County, OKs first reading to fund waterline replacement

FAIR OAKS RANCH, Texas — The Fair Oaks Ranch City Council on Nov. 21 approved a resolution authorizing an interlocal agreement with Bexar County to replace a failing waterline along Old Fredericksburg Road and approved the first reading of an ordinance to amend the fiscal 2024-25 budget to add $68,273 to the water capital fund for the project.

Grant Watanabe, the city—s public works director, told the council the project—already in the city—s five-year capital improvement plan—will replace roughly 2,700 linear feet of water main where main breaks have been "more frequent and expensive to repair." He said the city executed an engineering contract with K. Freeze & Associates in 2021 and coordinated a joint bid with Bexar County, which posted an invitation for bids Oct. 4; bids were received Nov. 8 and the county identified J3 Company as the lowest responsible bidder. "This project is included in our adopted 5 year capital improvement plan and replaces approximately 2,700 linear feet of water main," Watanabe said.

Watanabe gave a city cost estimate of $537,575 for the waterline portion. He said the requested increase—about $68,000—covers the 5% contingency plus remaining consultant and project-management costs. "So the increase is approximately $68,000," he said. Summer Fleming, the city—s director of finance, said the water capital fund has available unrestricted capital-reserve balances (more than $300,000) and that the amendment would appropriate an additional $68,273 from those funds to the waterline replacement project.

Council members clarified that the portion of Old Fredericksburg Road involved is outside the city limits but that the water utility serving that area belongs to the city. Staff said the joint project will move most of the line out of the roadway into the right-of-way, though some sections will remain underneath the road. The interlocal agreement in the agenda packet establishes responsibilities for project and contract management, construction oversight, inspection and acceptance between the city and Bexar County.

The council made and seconded a motion to approve the interlocal agreement; the motion passed on a voice vote with no opposition. Separately, the council approved the first reading of the budget-amendment ordinance on a voice vote after a motion to move the ordinance forward was made by Reuben and seconded by Laura.

The agenda packet lists the combined estimate for the joint road-and-water project at about $13,200,000; the city—s quoted portion for the waterline is $537,575. Staff told the council there were rollover funds and that the water capital fund—s available balance (from capital reserve fees not allocated to specific projects) would fund the requested amendment. The council completed other routine business and adjourned at 6:45 p.m.