REPORT TO THE CITY COUNCIL
FROM: denix d. anbiah, PE, Director
Capital Projects Department
SCOTT L. 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 the Second Amendment to the Consultant Services Agreement with AECOM Technical Services, Inc. in the amount of $2,392,831.00, bringing the total contract to $10,061,878.23 with $325,000.00 remaining in contingency to provide the additional professional engineering services needed to revise and complete the plans, specifications, and estimates for the Blackstone Avenue and McKinley Avenue BNSF Grade Separation Project (Council Districts 1 and 7).
Body
RECOMMENDATION
Staff recommends the City Council approve the Second Amendment to the Consultant Services Agreement with AECOM Technical Services, Inc. in the amount of $2,392,831.00, bringing the total contract amount to $10,061,878.23 with $325,000.00 remaining in contingency and authorize the Capital Projects Director, or designee, to execute the Second Amendment on behalf of the City of Fresno (City) to provide the additional professional engineering services needed to revise and complete the plans, specifications, and estimates for the Blackstone Avenue and McKinley Avenue BNSF Grade Separation Project.
EXECUTIVE SUMMARY
The City and AECOM Technical Services, Inc. continue to advance the design of the Blackstone Avenue and McKinley Avenue BNSF Grade Separation Project. During design coordination, it was determined that additional professional engineering services are required beyond what was authorized in the original Consultant Services Agreement and the First Amendment. To address these needs, the City proposes a Second Amendment to expand the scope of work accordingly.
The purpose of this Second Amendment is to incorporate value-engineering measures needed to reduce construction costs and align the project with the available budget. These cost-saving measures include updates to retaining wall designs, modifications to detour plans, and additional utility revisions. The amendment also provides for other essential engineering services outside the current scope, such as coordination with adjacent projects, additional utility design, Americans with Disabilities Act (ADA) updates, and right-of-way coordination.
Staff recommends approval of the Second Amendment to the Consultant Services Agreement with AECOM Technical Services, Inc. in the amount of $2,392,831.00, bringing the total contract amount to $10,061,878.23, with $325,000.00 remaining in contingency. The project is funded by Measure C Grade Separation Program funds, Local Partnership Program Formulaic 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. Most construction costs will be funded through the TIRCP grant. The project has been approved for $80,000,000.00 in TIRCP funding, with right-of-way certification required by January 2027 and the funding allocation anticipated in March 2027. If construction does not begin by this deadline, the City risks losing this grant funding.
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 over 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 FY 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. In order 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 Second 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.
On April 12, 2021, the City entered into a Consultant Services Agreement with AECOM Technical Services, Inc. (AECOM) for a total fee of $6,483,786.23, with a $325,000.00 contingency, for the design of plans and general construction documents for the Blackstone Avenue & McKinley Avenue BNSF Grade Separation Project. During the development of design, City staff identified the need for professional engineering services required beyond the original scope of the project. The First Amendment was primarily to address additional BNSF coordination resulting in a second railroad underpass bridge structure, detoured roadways, and utility updates to drainage, sewer and water systems. On November 7, 2024, City Council approved the First Amendment to the Agreement with AECOM in the amount of $1,185,261.00 for a revised contract amount of $7,669,047.23 with a $325,000 remaining contingency.
The City now desires to amend the Consultant Services Agreement with AECOM to provide additional professional engineering services required in design and preparation of construction documents and to authorize the Capital Projects Director or designee to sign on behalf of the City.
The project is currently at the 90 percent design level and the City has identified a funding shortfall for the construction phase. While the City has pursued additional funding to close this gap, those efforts have not yet been successful. The primary purpose of this Second Amendment is to incorporate value engineering opportunities necessary to reduce construction costs so the proposed improvements better align with the project’s currently available funding.
To keep this important project moving forward, the City conducted a value engineering review to identify project-wide design alternatives that would result in construction cost savings. Through the value engineering process several such opportunities were identified and selected by the team. These design alternatives include updates to retaining wall designs, traffic detour modifications, and additional utility revisions. This Second Amendment will allow AECOM to fully evaluate and incorporate these cost-saving measures into the plans to reduce the project’s construction cost without affecting the amenities the project will deliver to the public.
In addition to the redesign work needed for the value engineering effort, this amendment also adds professional engineering services beyond the current scope, including coordination with adjacent projects, additional utility design, Americans with Disabilities Act (ADA) accessibility updates, and additional right-of-way coordination.
The design updates associated with the Second Amendment are expected to extend the preliminary engineering phase by approximately one year. This will result in an anticipated advertisement date of early summer of 2027 and a project completion date of spring of 2030.
The City Attorney’s Office has reviewed and approved the proposed Second Amendment as to form.
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 Blackstone Avenue & McKinley Avenue BNSF Grade Separation Project is within Council Districts 1 and 7. This request will have no impact to the General Fund. All project costs for the preliminary engineering phase will be paid by Measure C Grade Separation Program funds. All funds necessary for the Second Amendment are included in the current fiscal year budget as previously adopted by City Council.
Attachments:
Second Amendment to Agreement
First Amendment to Agreement
Original Consultant Services Agreement
Vicinity Map