For City Council Meeting November 10, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Yazdan Emrani, P.E., Director of Public Works
Title
Request City Council to: (1) Adopt Resolution No. 8587 Amending the 2026/2027 Fiscal Year Budget to Appropriate $393,300 for the I-10/Riverside Avenue Interchange Phase II Project, City Project No. 140813; (2) Approve Amendment No. 2 to the Project Funding Agreement with San Bernardino County Transportation Authority (SBCTA) Group Substantially Similar to the Agreement Attached to the Staff Report and Approved as to Form by the City Attorney; (3) Approve a Third Amendment to the Professional Services Agreement with Jacobs Engineering Group, Inc., in the Amount of $302,896; and (4) Authorize the City Manager or Their Designee to Execute all Related Documents.
(ACTION)
Body
RECOMMENDATION:
Staff requests that the City Council:
1) Adopt Resolution Amending the 2026/2027 Fiscal Year Budget to Appropriate $393,300 for the I-10/Riverside Avenue Interchange Phase II Project, City Project No. 140813;
2) Approve Amendment No. 2 to the Project Funding Agreement with San Bernardino County Transportation Authority (SBCTA) Group Substantially Similar to the Agreement Attached to the Staff Report and Approved as to Form by the City Attorney;
3) Approve a Third Amendment to the professional services agreement with Jacobs in the amount of $302,896; and
4) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND:
In June 2012, the City of Rialto, in cooperation with the California Department of Transportation (Caltrans) and the San Bernardino County Transportation Authority (SBCTA), previously coordinated and funded the completion of the I-10/Riverside Avenue Interchange Project (the “Interchange Project”).
The Interchange Project is located immediately adjacent to an existing Union Pacific Railroad (UPRR) bridge crossing, a local bridge owned and maintained by the City of Rialto. This UPRR bridge crossing is located over the West Colton Yard, one of the largest railroad hubs for UPRR. With the understanding that the LA/Long Beach ports move 40% of the nation’s cargo throughout the United States, much of that cargo is offloaded onto rail cars traveling directly through the West Colton Yard and under the City’s UPRR bridge crossing.
During the design of the Interchange Project, decisions were made to construct a narrower overcrossing to “fit” the eastbound I-10 on/off ramps without impacting the immediately adjacent UPRR bridge to the south of the I-10 freeway. This design was based, in part, on minimizing the cost of the Interchange Project, as widening the UPRR bridge was estimated to cost as much or more than the Interchange Project itself. Additionally, the UPRR bridge was eligible for funding through the Highway Bridge Program (HBP) based on its assessment by Caltrans at that time.
Progress on this project stalled due to Caltrans' determination that the project would not be funded in the HBP, with a 2016 cost estimate of $24 million for widening or $40 million for replacement. This fact eliminated all external State or Federal funding available for the project. On October 5, 2021, the City of Rialto submitted a formal request to SBCTA to program funding for the Design and Right-of-Way Phases as part of SBCTA’s Update to its 10-Year Delivery Plan.
The City identified the “Widening Alternative” as the preferred alternative because replacement of the bridge is not necessary. Under the widening alternative, the bridge will be widened to allow for the extension of the dual northbound left-turn lanes for traffic entering the I-10 westbound on-ramps and related improvements. The total cost estimate to widen the existing UPRR bridge is $33.5 million.
On December 1, 2021, in response to the City’s request, the SBCTA Board of Directors approved the Update to the 10-Year Delivery Plan that programmed funding for $5,193,156.
On February 22, 2022, the City Council approved a Project Funding Agreement with SBCTA and on March 2, 2022, the SBCTA Board approved the Project Funding Agreement.
On March 8, 2022, the City Council adopted a resolution amending the Capital Improvement Program to add the I-10/Riverside Avenue Interchange Phase II, City Project No. 140813, appropriating a project budget of $7,153,107, and approving a Professional Services Agreement with Jacobs Engineering Group, Inc. for final design services in the amount of $2,618,927.
On November 12, 2024, the City Council approved a First Amendment to the Project Funding Agreement with SBCTA. The amendment increased SBCTA’s total contribution from $5,193,156 to $5,863,181 and allowed for project design, environmental analysis, surveying, site access, and support of the Trade Corridor Enhancement Program (TCEP) grant. As part of the Council action, Resolution No. 8304 was adopted, appropriating $922,900 to the project budget. A first amendment with Jacob Engineering Group, Inc., was also approved in the amount of $537,288 for tasks essential to completing design. The additional services generally included evaluating the City-requested exclusive right-turn lane from southbound Riverside Avenue to westbound Slover Avenue, including associated cost and environmental analyses; conducting surveying and coordinating site access required by UPRR due to revised railroad track configurations; and preparing right-of-way engineering and easement documentation due to limited agency and stakeholder information. Jacobs also provided services supporting the City’s 2024 TCEP grant application. These efforts were successful, and on July 7, 2025, the City was notified that the I-10/Riverside Avenue Interchange Phase II project was selected for funding, with $29.8 million anticipated for construction.
On July 22, 2025, the City Council approved a Second Amendment with Jacobs to extend the term of the Agreement to June 30, 2027, and to finalize the design and meet the TCEP grant requirements for funding.
On January 13, 2026, the City Council accepted the SB1 Trade Corridor Enhancement Program Grant for the Construction Phase of the I-10 Riverside Avenue Freight Improvement Project, City Project No. 140813, in the amount of $29,800,000.
On September 21, 2026, to maintain the project’s design schedule, the City proceeded with the right-of-way acquisition efforts through EPIC Land Solutions, Inc. The agreement was executed under the City Manager’s authority in the amount of $90,404.
ANALYSIS/DISCUSSION:
Jacobs submitted a proposal to incorporate the additional scope of work incurred to date in coordination with the City and key project stakeholders, including Caltrans and UPRR, as well as support for the coordination of Right-of-Way acquisition services. These additional tasks are necessary to complete the final design and deliver the 100% Plans, Specifications, and Estimates (PS&E) for the project, as well as to address the ongoing coordination requirements with the various agencies, entities, and stakeholders involved in the project. The additional scope of work is included as Attachment 1. The additional scope of work generally includes the following:
1. Extended Limits & Traffic Signal/Electrical - Layout plans extended north of project limits up to the Westbound I-10 ramp for Caltrans permitting. Added signal design south of Slover Ave for system uniformity, SCE lighting coordination, and as-built research.
2. Dedicated Traffic Handling Plans - Complete stage construction/traffic handling plans for vehicles, bicycles, and pedestrians on Riverside Ave and I-10 off/on-ramps following CA-MUTCD and Caltrans standards.
3. 12-Month Right-of-Way Acquisition Services - Extended engineering support, exhibits, and agency coordination for 12 months during the property acquisition process.
4. Extended Project Administration - Extended support through June 2027, including Caltrans EPOP/QMAP applications (submitted 6/29/26), CPUC GO-88B package preparation, and pre-diagnostic meeting coordination.
5. 100% PS&E Submittal Support - Support for Caltrans comment responses, plan revisions beyond project limits, and Kinder Morgan utility potholing.
6. TCEP Grant Extension Support - Preparing and filing grant extension applications to CTC by April 2027 to protect project grant funding.
Staff found the scope of the Third Amendment critical to completing the project design and the fee contained in the proposal is fair and reasonable. The Third Amendment to the Professional Services Agreement with Jacobs is included as Attachment 2.
In addition to the proposed Jacobs Third Amendment, the project includes $90,404 for the previously executed agreement with EPIC Land Solutions, Inc., for right-of-way acquisition services. This agreement was executed by the City Manager’s authority to maintain the project's right-of-way acquisition schedule.
The City has identified a need for an additional $285,536 from SBCTA to fully fund its portion of the Public Share. With the proposed Amendment No. 2 to the Funding Agreement, SBCTA's total contribution would increase to $6,148,717. Table 1 below summarizes the updated costs for the Public Share phase.
Table 1
The proposed Amendment No. 2 to the project funding agreement is scheduled for consideration by the SBCTA during the Metro Valley Study Session (MVSS) on November 12, 2026, and will be presented to their Board of Directors on December 2, 2026. The proposed amended Project Funding Agreement is included as Attachment 3. If, for any reason, the SBCTA Board does not approve the proposed amendment to the Funding Agreement to increase SBCTA’s financial contribution to the project, the City would be required to fund the entire cost associated with the Third Amendment to the Jacobs Agreement.
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act ("CEQA"). In accordance with the CEQA Guidelines, the City acting as "Lead Agency" pursuant to CEQA, previously completed an environmental analysis of the potential impacts resulting from widening the UPRR bridge. On April 1, 2015, the City of Rialto approved a Notice of Exemption determining that the project was exempt under Statutory Exemption Section 21080.13 of the California Public Resources Code that allows for an exemption for projects that reconstruct an existing grade separation.
The Project was initially funded, in part, by federal funds, requiring local oversight by the State of California, Department of Transportation (Caltrans). As a federally funded project at that time, the project was subject to environmental review pursuant to the National Environmental Policy Act (NEPA). On April 25, 2016, Caltrans, acting as the lead agency pursuant to NEPA, made an environmental determination that the project does not individually or cumulatively have a significant impact on the environment as defined by NEPA and is excluded from the requirements to prepare an Environmental Assessment (EA') or Environmental Impact Statement (EIS), has considered unusual circumstances pursuant to 23 CFR 771.117(b), and that it qualifies for a Categorical Exclusion under 23 CFR 771.117, activity (c)(27).
GENERAL PLAN CONSISTENCY:
The City of Rialto General Plan establishes various guiding principles, goals and objectives through which the City looks to improve the community and protect the quality of life for our residents. This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Policy 4-1.1: Establish and maintain standards for a variety of street classifications to serve both local and regional traffic, including Major Arterial Highways, Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
LEGAL REVIEW:
The City Attorney’s Office has reviewed Amendment No. 2 to the Project Funding Agreement with the San Bernardino County Transportation Authority (SBCTA) and approved it as to form. City Attorney’s Office has also reviewed the Third Amendment to the Professional Services Agreement with Jacobs Engineering Group, Inc. and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact:
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The project is currently funded by a funding agreement with SBCTA in the Special Grant Project Fund, Account No. 22234429-53001 in the amount of $5,863,181. A required local match of $2,212,826 was budgeted through the Traffic Development Impact Fee Fund, Account No. 22504312-53001. This project also received TCEP Grant funding for the Construction Phase in the amount of $29,800,000 in Grant Project Fund, Account No. 22234424-47536-140813-20.
Staff recommends increasing revenue in the Special Grant Project Fund, Account No. 22234429-47585-140813-30, by $285,536, and appropriating expenditures in Account No. 22234429-53001-140813-30 for SBCTA’s 72.6% public share of these project phases, as per the Project Funding Agreement. The City will appropriate funding for the 27.4% or $107,764 for the Developer Fair Share from Traffic Development Impact Fee Fund, Account No. 22504312-53001-140813-31 allocated as follows:
Special Grant Project Fund, Account No. 22234429-53001-140813-30: $285,536
Traffic DIF Fund, Account No. 22504312-53001-140813-31: $107,764
The amount of $393,300 includes $302,896 for the Third Amendment to the Professional Services Agreement with Jacobs Engineering Group, Inc., and $90,404 to the Professional Services Agreement with EPIC Land Solutions, Inc.
If, for any reason, the SBCTA Board does not approve the proposed amendment to the Funding Agreement to increase SBCTA’s financial contribution to the project, the City would be required to fund the entire cost associated with the Third Amendment to the Jacobs Agreement. In that event, staff would return to City Council to request the necessary additional appropriations.
Licensing
As part of the initial design, Jacobs has paid the Business License Tax.
ATTACHMENTS:
1. Jacobs Proposal
2. Jacobs Engineering Contract Third Amendment
3. SBCTA Project Funding Agreement Amendment No. 2
4. Resolution