REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director - Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
NANCY BRUNO, Right of Way Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
RESOLUTION - A resolution of the council of the City of Fresno, granting authority to the City Manager or designee to approve and authorize payment for the move and one year’s storage costs for the relocation of A & T Ceramic Tile as a result of the Blackstone McKinley BNSF Grade Separation Project, pursuant to the Uniform Relocation Act. (Council Districts 1 and 7)
Body
RECOMMENDATION
Staff recommends the City Council adopt a Resolution granting authority to the City Manager or designee to approve and authorize payment for the move, one year’s storage costs, and insurance for the relocation of A & T Ceramic Tile, located upon Assessor’s Parcel Number (APN) 451-071-35, situated at 1730 East McKinley Avenue, formerly owned and operated by Avedis A. Terzian, for the Blackstone McKinley BNSF Grade Separation Project in the amount not to exceed $1,100,000 pursuant to Section 49 Code of Federal Regulations (CFR) Part 24.301 and Section 49 CFR Part 24.303, paid through Measure C Grade Separation and California Local Partnership Program grant funds.
EXECUTIVE SUMMARY
The Blackstone McKinely BNSF Grade Separation Project (“Project”) includes acquisition of residential and commercial properties. Appraisals of the properties within the Project area began in July 2022, and the City’s first written offers to purchase have been presented to the property owners. Staff are requesting the City Council authorize the City Manager or designee to approve and authorize payment for the move , one years’ storage costs, and insurance for the relocation of A & T Ceramic Tile, located upon APN 451-071-35, situated at 1730 East McKinley Avenue (the “Subject Property”), formerly owned and operated by Arvedis A. Terzian, which is being displaced as a result of the acquisitions for the Project (the “Business Owner”). The Business Owner has been qualified for relocation assistance pursuant to the Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs (“URA”). The costs for this move exceed the contract amount the City Manager has been authorized to enter into for the Project.
BACKGROUND
The Blackstone Avenue and McKinley Avenue corridors serve as primary routes for the community, the City’s Bus Rapid Transit system, emergency vehicles, and is also part of the Blackstone Smart Mobility Plan providing 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 of any at-grade crossing on the BNSF corridor. The Blackstone McKinley 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. The City is progressing through the engineering design stage and right of way acquisition stage of the project.
On April 18, 2024, the City Council approved a Resolution of Necessity for acquisition of APN 451-071-35, owned by Avedis A. Terzian (Resolution Number 2024-071). On July 12, 2024, an eminent domain case was filed with the Superior Court of the State of California, County of Fresno, Central Division (“Superior Court”) (Case Number 24CECG02985). On March 25, 2025, the Superior Court issued an Order Granting the Motion for Prejudgment Possession, stating the City’s possession of the Subject Property is to commence at 5:00 p.m. on the 30th day after the service of the Notice of Entry of Order which has been determined to be May 9, 2025. As such, the City’s relocation consultant has been working to obtain estimates to move and store the contents of the Subject Property pursuant to the URA.
Pursuant to Caltrans Manual Section 10.05.05.01, eligible displacees of the Project are entitled to the cost to transport personal property and other items of personalty, not acquired by the City, to the replacement property not to exceed fifty (50) miles from the displacement property. Transportation may include packing, unpacking, crating, and uncrating, including any special packaging or equipment that must be used to protect sensitive or high valued items. Pursuant to Caltrans Manual Section 10.05.05.07, a nonresidential displacee may be entitled to storage of the non-acquired personalty, based on relocation consultant and staff recommendations, that is absolutely necessary in order to vacate the Subject Property for the Project. Pursuant to Caltrans Manual Section 10.05.05.08, displacees are entitled to receive insurance for the replacement value of the personalty in connection with the move and during storage.
Each displaced business is unique in their needs to relocate and reestablish, and A & T Ceramic Tile has not yet identified a replacement location. As such, the Business Owner requires moving and storage of the contents of their building as the City has been granted possession by Order of the Superior Court so the City may proceed with the Project. The City’s relocation consultant has obtained bids from three moving and storage companies, and pursuant to Caltrans Manual Section 10.05.05.08, the payment should be based on the lowest of the three bids, including an appropriate amount for insurance. The bid from Olympic Move and Transport is the lowest of the three bids at a cost not to exceed $1,100,000, including move, storage and insurance, which is the amount for which staff recommends the City Council adopt a Resolution granting authority to the City Manager or designee to approve and authorize payment for the relocation of A & T Ceramic Tile for the Blackstone McKinley BNSF Grade Separation Project pursuant to Section 49 Code of Federal Regulations (CFR) Part 24.301 and Section 49 CFR Part 24.303, paid through Measure C Grade Separation and California Local Partnership Program grant funds. The City Attorney’s Office has reviewed and approved the Resolution as to form.
ENVIRONMENTAL FINDINGS
This Project was found to be statutorily exempt by Fresno City Council on June 25, 2020, pursuant to California Public Resources Code Section 21080 .13(a) and 15282(g) of the California Environmental Quality Act (CEQA) Guidelines. The Notice of Exemption was thereafter recorded with the Fresno County Clerk on July 30, 2020. The statute of limitations for challenges to this exemption has run pursuant to CEQA Guideline Section 15062(d). This project will eliminate two railroad crossings and grade separate North Blackstone Avenue and East McKinley Avenue under the BNSF Mainline Track.
LOCAL PREFERENCE
Local preference was not considered because this item does not include a bid for or an award of a construction or services contract.
FISCAL IMPACT
The proposed Blackstone McKinley BNSF Grade Separation Project is within Council Districts 1 and 7. These acquisitions will have no impact to the General Fund. All project costs for the right of way phase are funded with Measure C Grade Separation and California Local Partnership Program grant funds. All funds necessary for the acquisition are included in the current fiscal year budget as previously adopted by the City Council.
Attachments:
Resolution
Location Map
Vicinity Map