STRATEGIC PRIORITY: Sustainable
AGENDA DATE: August 13, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Department of Transportation and Public Works
EXECUTIVE: Dev Rastogi
______________________________________________________________________
SUBJECT
Title
Authorize Amendment No. 1 to the Interlocal Agreement with Dallas Area Rapid Transit (DART) for the distribution of up to $80,000,000.00 in funding from DART for eligible projects that will benefit DART’s Public Transportation System or provide Complementary Transportation Services located in Dallas to extend the critical deadlines and the term of the agreement by one year, from April 30, 2026 to April 30, 2027 - Financing: No cost consideration to the City
Body
BACKGROUND
On June 14, 2023, the City Council authorized an Interlocal Agreement (ILA) with DART for the distribution of up to $80,000,000.00 in funding from DART which consisted of the City’s portion of (i) excess sales tax funds from DART of $72,000,000.00 and (ii) additional RTC Funds of approximately $8,000,000.00, all to be used to complete projects eligible for this funding that will benefit DART’s Public Transportation System or provide Complementary Transportation Services located in Dallas by Resolution No. 23-0822.
On January 28, 2025, the DART Board of Directors approved certain amendments to the original Interlocal Agreement to extend the critical deadlines and the term of the agreement by one year.
If approved, this action will authorize Amendment No. 1 to the ILA with DART to amend the following provisions:
Under Section 4.3, “Critical Deadlines,” contracts for Eligible Projects must be awarded by the City by August 30, 2025. Eligible Projects must achieve substantial completion by January 30, 2027, and requests for funds must be submitted by April 30, 2027. Funds not duly requested by April 30, 2027, will be transferred to DART’s reserve funds. Additionally, if the City realizes cost savings on approved projects due to value engineering or alternative delivery, DART will retain the remaining Funds in reserve for the City and may, in its sole discretion, work with the City to identify an alternative use of funds consistent with Section 3.1 of the ILA.
Under Section 5.2, “Expiration of Agreement,” the ILA shall terminate automatically upon the earlier of distribution or forfeiture of $80,000,000.00 in funds to the City and April 30, 2027; provided, however, obligations identified in Sections 3.3, 4.3, and 10.7, shall survive termination.
All other provisions of the original ILA are unchanged and remain in full force and effect.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 14, 2023, the City Council authorized an interlocal agreement with DART for the distribution of up to $80,000,000.00 in funding from DART which consisted of the City’s portion of (i) excess sales tax funds from DART of $72,000,000.00 and (ii) additional RTC funds of approximately $8,000,000.00, all to be used to complete projects eligible for this funding that will benefit DART’s Public Transportation System or provide Complementary Transportation Services located in Dallas by Resolution No. 23-0822.
The City Council was briefed by memorandum regarding this matter on August 8, 2025. <https://dallascityhall.com/government/citymanager/Documents/FY24-25%20Memos/Upcoming%20City%20Council%20Agenda%20Item%20%2343,%20August%2013,%202025.pdf>
FISCAL INFORMATION
No cost consideration to the City.