SUBJECT
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Resolution ratifying authorization of the City Manager to submit a grant application for $61,589,060.00 under the Texas Off-System Rail Grade Separation State Fund Program, part of the 2025 TxDot Call for Projects.
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PREVIOUS COUNCIL ACTION
This item was taken to council as a preliminary application submission on November 17, 2025 and was approved.
BACKGROUND
The 89th Legislature created this Texas Off-System Rail Grade Separation State Fund under Senate Bill 1555 which provides financial assistance for rail grade separation projects in Texas that will improve public safety, support economic development, and reduce traffic congestion. The program is divided into 2 phases.
The first phase was to submit a preliminary application which was approved by Council in November 2025.
The City was selected to advance to Phase 2, which will be to complete a full detailed application which will includes a 10% non-state match commitment by the City, which is waived since the City qualifies for it to be waived due to being located in the designated Economically Disadvantaged Counties.
The application submitted includes an estimated cost of $60,000,000.00 which includes a required 15% administrative fee by TxDot.
The deadline to submit the detailed applications is on January 19th, 2026, thus, this item to ratify the submission.
VIVA LAREDO PLAN ALIGNMENT
Alignment rating: Strong
Goal 4.1 - Improve multimodal transportation and mobility
“Provide a safe, efficient, and integrated transportation system that supports economic development and quality of life.”
(Viva Laredo Comprehensive Plan, p. 4.3 - Viva Laredo City of Laredo Comprehensive Plan)
Policy 4.1.2 - Improve safety and efficiency of the transportation network
“Improve transportation safety by reducing conflicts between vehicles, trains, pedestrians, and bicyclists.”
(Viva Laredo Comprehensive Plan, p. 4.6 - Viva Laredo City of Laredo Comprehensive Plan)
Policy 4.2.4 - Reduce congestion related to freight and rail activity
“Coordinate with rail operators and transportation agencies to reduce traffic congestion and delays associated with rail crossings.”
(Viva Laredo Comprehensive Plan, p. 4.11 - Viva Laredo City of Laredo Comprehensive Plan)
Goal 6.2 - Support economic competitiveness and trade infrastructure
“Enhance infrastructure that supports Laredo’s role as a major international trade and logistics hub.”
(Viva Laredo Comprehensive Plan, p. 6.8 - Viva Laredo City of Laredo Comprehensive Plan)
Summary of Alignment
The proposed resolution demonstrates strong alignment with the Viva Laredo Comprehensive Plan by advancing transportation safety, mobility, and economic competitiveness through strategic infrastructure investment. Submitting a grant application for rail grade separation directly supports Policy 4.1.2 by addressing conflicts between rail traffic and vehicles, thereby improving public safety and reducing collision risk at rail crossings.
The initiative also advances Policy 4.2.4 and Goal 4.1 by mitigating congestion and delays caused by rail activity, which is a persistent mobility challenge in Laredo. Furthermore, by seeking state funding to improve rail-related infrastructure, the City reinforces Goal 6.2, which emphasizes strengthening trade and logistics infrastructure critical to Laredo’s economy.
Overall, the agenda item aligns with broader planning themes of mobility, public safety, economic development, and intergovernmental coordination, justifying a Strong level of alignment with the Viva Laredo Comprehensive Plan.
COMMITTEE RECOMMENDATION
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STAFF RECOMMENDATION
recommendation
Recommend approval of this Resolution.
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Fiscal Impact
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Budgeted Y/N?: Click or tap here to enter text.
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Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
There is no financial impact to the City that is required to submit application.