Pom rau Amendment No. 1 rau Preliminary Engineering Services Agreement nrog BNSF Railway Company hauv zog nqa $100,438.80, nqa tag nrho cov ntaub ntawv kawm txuj ci mus rau $300,000.00, ua rau engineered design plan review thiab diagnostic evaluation, rau Blackstone Avenue thiab McKinley Avenue BNSF Grade Separation Project (Council Districts 1 thiab 7)

REPORT TO THE CITY COUNCIL FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Director, Capital Projects Department SCOTT MOZIER, PE, Director Public Works Department BY: SCOTT P. SEHM, PE, Assistant Director Capital Projects Department, Design Services Division ADAM LEE, PE, Licensed Professional Engineer Capital Projects Department, Design Services Division SUBJECT ..Title Approve Amendment No. 1 to the Preliminary Engineering Services Agreement with BNSF Railway Company in the amount of $100,438.80, bringing the total contract to $300,000.00, to perform engineered design plan review and diagnostic evaluation, for the Blackstone Avenue and McKinley Avenue BNSF Grade Separation Project (Council Districts 1 and 7) ..Body RECOMMENDATION Staff recommends the City Council approve Amendment No. 1 to the Preliminary Engineering Services Agreement with BNSF Railway Company for the Blackstone Avenue and McKinley Avenue Grade Separation Project. The Amendment increases the agreement amount by $100,438.80, from $199,561.20 to $300,000. Staff further recommends the City Council authorize the Capital Projects Director, or their designee, to execute the Amendment on behalf of the City of Fresno. EXECUTIVE SUMMARY The Blackstone Avenue and McKinley Avenue BNSF Railway Company (BNSF) Grade Separation Project will eliminate two existing at-grade crossings by grade-separating North Blackstone Avenue and East McKinley Avenue under the BNSF mainline track. As the City began presenting design plan elements to BNSF for review and comment, a Preliminary Engineering Services Agreement (PEA) was required for BNSF to formally accept the engineered plan submittals. On March 2, 2022, the City Council approved the original PEA with BNSF for $199,561.20 and authorized the Public Works Director or designee to execute the agreement. The PEA allowed the City and BNSF to conduct engineering and diagnostic meetings to jointly establish critical design elements, including construction phasing, traffic detours, shoofly alignments, and bridge types. The City now seeks to amend the original PEA by increasing the estimated cost in the amount of $100,438.80, from $199,561.20 to $300,000, due to project circumstances, delays, and scope changes. This additional funding will allow BNSF to continue working through the technical reviews necessary to obtain their approval prior to bidding the construction contract. The project is funded by Measure C Grade Separation Program funds, Local Partnership Program Formulaic (LPP) grant funds, and Transit and Intercity Rail Capital Program (TIRCP) grant funds. All preliminary engineering phase costs will be paid using Measure C Grade Separation Program funds and the majority of the construction cost will be paid using TIRCP funds. The project is approved for $80,000,000.00 in TIRCP grant funding, with ROW certification through California Transportation Commission (CTC) by March 2027 and projected obligation and authorization to construct by May 2027. BACKGROUND The City has long-planned for future grade separations at locations with high traffic volumes, such as the BNSF crossing at Shaw Avenue, which was grade-separated nearly 20 years ago. In the early 1970s, the City prepared a grade separation study, including many citywide locations, such as Blackstone Avenue and McKinley Avenue. In fiscal year 2020, staff completed an update of the Blackstone Avenue and McKinley Avenue Grade Separation Feasibility Study. The Blackstone Avenue and McKinley Avenue corridors serve as primary routes for the community, as well as the City’s Bus Rapid Transit system and emergency vehicles. They are also part of the Blackstone Smart Mobility Plan, which provides Class IV protected bicycle facilities along Blackstone Avenue through the project area. The project location has experienced the highest traffic volumes and number of accidents at any at-grade crossing on the BNSF corridor. The project will eliminate two existing at-grade crossings by grade separating North Blackstone Avenue and East McKinley Avenue under the BNSF Mainline Track. The City is progressing through the preliminary engineering and right-of-way phases of the project. To make the construction phase shorter, the City is actively making progress on acquisitions and demolition of improvements that are in conflict with project improvements. All project costs for the preliminary engineering phase, including this Amendment, will be paid by Measure C Grade Separation Program funds. The 2006 Measure C Expenditure Plan included a percentage of the transportation sales tax revenue to be dedicated to Rail Consolidation, which was then converted by the Fresno County Transportation Authority (FCTA) Board to the Measure C Grade Separation Program in April 2020. At their April 22, 2020, meeting, the FCTA Board also selected the Blackstone Avenue & McKinley Avenue BNSF Grade Separation Project as the highest priority project and approved a Cooperative Project Agreement. The Cooperative Project Agreement was later approved by City Council on June 25, 2020. On April 8, 2021, City Council authorized the Department of Public Works to sign Amendment No. 1 to the Cooperative Project Agreement with FCTA to begin preliminary right of way efforts. On May 26, 2022, City Council authorized the Department of Public Works to sign Amendment No. 2 to the Cooperative Project Agreement with FCTA to continue right of way efforts. On September 12, 2024, City Council authorized the Department of Public Works to sign Amendment No. 3 to the Cooperative Project Agreement with FCTA to continue preliminary engineering and right of way efforts. On September 11, 2025, City Council authorized the Department of Public Works to sign Amendment No. 4 to the Cooperative Project Agreement with FCTA to continue preliminary engineering and right of way efforts. The City Council approved the original Preliminary Engineering Services Agreement (PEA) with BNSF Railway Company on March 2, 2022, authorizing BNSF to conduct formal review and acceptance of engineered plan submittals, as well as to participate in diagnostic meetings to establish critical design elements such as construction phasing, traffic detours, shoofly alignments, and bridge types. The need for Amendment No. 1 to the PEA (Amendment) arises from project circumstances, delays, and scope changes that have increased BNSF’s estimated costs for plan review and diagnostic evaluation for construction activities that will occur within, and affect, their right-of-way. Environmental clearance for the project was obtained through a statutory exemption under Section 21080.13(a) of the California Public Resources Code and Section 15282(g) of the California Environmental Quality Act (CEQA) Guidelines, based on the project’s purpose to eliminate existing railroad grade crossings. The project is currently advancing through the preliminary engineering phase, with the 60% design package under review and 90% package in production. Right-of-way acquisition activities are also ongoing. Community engagement has included public information meetings, project newsletters, and updates via the City’s website and local media to keep residents, businesses, and property owners informed of project status and schedule. This Amendment is a necessary procedural step to maintain alignment with the project schedule and funding requirements established by the Cooperative Project Agreement and to ensure continued coordination with BNSF Railway Company as the project progresses toward construction. The City Attorney’s Office has reviewed and approved the proposed Amendment as to form, ensuring compliance with all applicable legal and procedural requirements. ENVIRONMENTAL FINDINGS In 2020, the City determined that the Blackstone Avenue & McKinley Avenue BNSF Grade Separation Project is exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to California CEQA Guidelines section 15282(g). This contract amendment does not create an exception to the exemption. Therefore, no further CEQA compliance action is necessary. LOCAL PREFERENCE Local preference was not considered because this item does not include a bid for or award of a construction or services contract. FISCAL IMPACT The project’s engineering design phase is grant-funded with Measure C Grade Separation program funds. This action will not impact the General Fund. All funds necessary for the contract amendment are included in the adopted fiscal year budget. Attachments: Amendment No. 1 to Preliminary Engineering Services Agreement Preliminary Engineering Services Agreement Vicinity Map