Council tables Union Pacific supplemental agreement for Keller Hicks crossing until June 2

Keller City Council on May 5 postponed action on a supplemental agreement with Union Pacific Railroad tied to the Keller Hicks Road improvement project, saying staff needs final invoices before ratifying additional payments.

Alonzo Leon, the city’s public works director, told the council that an interlocal signed in May 2023 committed the city to about $213,000 in Union Pacific work for the crossing. He said unanticipated signal and surface costs arose after the road’s grade was raised for drainage; that change left the safety crossarm below the manual’s required clearance and forced additional signal work. Leon said staff had reviewed invoices and corrected billing lines but had not received a final invoice from Union Pacific. He estimated the supplemental payout will be about $85,000–$90,000 but the proposed agreement authorizes up to $104,000 to ensure the city can cover remaining charges.

Several councilmembers pressed staff to pursue a further reduction with Union Pacific or wait until the railroad issues its final invoices. A motion to table the item until the council’s June 2 regular meeting passed so staff can reconcile outstanding charges and seek any further reductions before the council ratifies the supplemental agreement.

The decision pauses formal authorization but leaves staff the option to continue invoice review and vendor outreach. Leon said staff will tell Union Pacific the council will not ratify the supplemental until final numbers are provided.