REPORT TO THE CITY COUNCIL
FROM: PAUL AMICO, PE, Director
Department of Public Utilities
BY: AHMED ALY, PE, Assistant Director
Department of Public Utilities - Utilities Planning & Engineering
SARAH AGUILA, Project Manager
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Approve a First Amendment to the Preliminary Engineering Services Agreement with BNSF Railway Company, to increase the agreement amount by $106,846.61, for a total estimated cost of $159,952.61 for additional submittal review and approval for the North Avenue Sewer Trunk Main Realignment Project (Council Districts 3 and 5)
Body
RECOMMENDATIONS
Staff recommends that City Council approve the First Amendment to the Preliminary Engineering Services Agreement (Agreement) with BNSF Railway Company (BNSF), to increase the agreement amount by $106,846.61, for a revised estimated cost of $159,952.61, for the review and approval of contractor submittals on the North Avenue Sewer Trunk Main Realignment Project (Project), and authorize the Director of Public Utilities, or designee, to execute the First Amendment on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
After two major pipe segment failures on the existing 57-inch diameter North Avenue sewer trunk main, the City awarded a Construction Contract to Floyd Johnston Construction Co., Inc. (Floyd Johnston), and completed a temporary repair by slip lining the unstable section of sewer main with a 42-inch pipe until the permanent realignment could be constructed. The City is currently under contract with Teichert Construction for the Project which includes the permanent realignment of the 42-inch pipe with a 66-inch diameter sewer main. The construction of the permanent sewer requires construction underneath BNSF’s existing railroad facilities and within their right-of-way. On November 15, 2024, the City entered into an Agreement with BNSF to provide preliminary engineering services for the review and approval of contractor submittals associated with the Project for an estimated fee amount of $53,106.00. The Project has required an unexpected amount of contractor submittals related to the railroad crossings, and additional funding is needed to allow BNSF to continue processing contractor submittal reviews. This First Amendment to the Agreement will increase BNSF’s compensation by $106,846.61 for an estimated cost of $159,952.61.
BACKGROUND
The existing 57-inch diameter North Avenue sewer trunk main experienced two localized structural collapses in the segment of sewer main between Golden State Boulevard and Maple Avenue, most recently on January 27, 2023. The failures were due to the complete corrosion of the crown of the sewer trunk main from hydrogen sulfide gas.
Following the most recent collapse, Floyd Johnston was contracted by the City on August 7, 2023, and completed a temporary repair by slip lining the unstable section of sewer main with a 42-inch pipe until the permanent realignment could be constructed. The installation of the 42-inch pipe diminished the flow capacity of the existing sewer trunk main and does not suffice as a permanent repair. This Project includes construction of the 66-inch diameter, permanent realignment of the sewer main.
On July 2, 2025, the City contracted with Teichert Construction to construct The Project which includes replacement of a portion of a failed section of the existing 57-inch diameter North Avenue sewer trunk main, at a location approximately 1,450 feet to the west of Maple Avenue with a new 66-inch diameter sewer trunk main. The Project is bound by a major railroad crossing serving both the BNSF and Union Pacific Railroads to the west, a Fresno Irrigation District (FID) canal to the south, commercial property to the north, and Maple Avenue to the east.
On November 15, 2024, the City entered into a preliminary engineering services agreement with BNSF for the review and approval of contractor submittals with respect to BNSF’s railroad facilities located near the project. The estimated cost for these services was $53,106.00. BNSF began their submittal reviews on September 23, 2025.
The increase of resubmittals has resulted in additional reviews by BNSF in approving contractor submittals. Contractor submittal reviews and approvals prior to construction within the BNSF and the Union Pacific Railroad right-of-way is necessary for the completion of the Project.
Staff recommends that City Council approve the First Amendment to the Agreement with BNSF, to increase the agreement amount by $106,846.61, for a total not-to-exceed amount of $159,952.61.
The City Attorney’s Office has reviewed and approved the First Amendment to the Agreement as to form.
ENVIRONMENTAL FINDINGS
Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(5), this is not a “project” for the purposes of CEQA. This approval pertains to the amendment of a contract that is solely for the review of engineering plans and other submittals relating to the North Avenue Sewer Trunk Main Realignment Project.
LOCAL PREFERENCE
Local preference was not implemented because this is an amendment to an existing agreement.
FISCAL IMPACT
There is no impact to the General Fund. The Project is located in Council Districts 3, 5 and Fresno County. Funding for this Project is included in the Fiscal Year 2026 capital improvement budget within the Wastewater Management Division Wastewater Operating Fund.
Attachments:
First Amendment to the Agreement
Preliminary Engineering Services Agreement
Location Map
Vicinity Map