For City Council Meeting January 13, 2026
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Yazdan Emrani, P.E., Director of Public Works
Title
Request City Council to: (1) Adopt Resolution No. 8450 Accepting the SB1 Trade Corridor Enhancement Program Grant for the I-10 Riverside Avenue Freight Improvement Project, City Project No. 140813, in the amount of $29,800,000; and (2) Authorizing the Execution of a Baseline Agreement with the California Transportation Commission and the California Department of Transportation, Substantially Similar to the Agreement Attached to the Staff Report and Approved as to Form by the City Attorney; and (3) Authorize the City Manager or Their Designee to Execute the Baseline Agreement.
(ACTION) (POWERPOINT)
Body
RECOMMENDATION:
Staff recommends that the City Council:
1) Adopt a resolution accepting the SB1 Trade Corridor Enhancement Program (TCEP) Grant for the I-10 Riverside Avenue Freight Improvement Project, City Project No. 140813, in the amount of $29,800,000; and
2) Authorizing the execution of the Baseline Agreement with the California Transportation Commission (CTC) and California Department of Transportation (Caltrans), substantially similar to the agreement attached to the staff report and approved as to form by the City Attorney; and
3) Authorize the City Manager or their designee to approve and execute the Baseline Agreement.
BACKGROUND
In June 2012, the City of Rialto, in cooperation with Caltrans and the San Bernardino County Transportation Authority (SBCTA), coordinated and funded the completion of the I-10/Riverside Avenue Interchange Project (the “Interchange Project”), which included widening the Riverside Avenue bridge over Interstate 10.
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 UPRR railroad hubs. 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.
Progress on the UPRR bridge project, referred to as the I-10/Riverside Avenue Freight Improvement Project, stalled after Caltrans determined the project would not be funded in the Highway Bridge Program (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.
In 2017, the State Legislature passed and the Governor signed Senate Bill (SB) 1, known as the Road Repair and Accountability Act, which increased transportation funding and instituted transportation funding reforms. One of the statewide competitive programs funded by SB 1 is the Trade Corridor Enhancement Program (TCEP), with a targeted allocation of $300 million per year. Administered by the California Transportation Commission (CTC), TCEP provides an ongoing source of State funding dedicated to freight-related projects. The program funds infrastructure improvements on federally designated Trade Corridors of National and Regional Significance within the Primary Freight Network and along corridors with high freight volumes.
The City identified the “Widening Alternative” for the UPRR bridge project as the Preferred Alternative because bridge replacement is not necessary. Under the widening alternative, the bridge will be widened to accommodate the extension of the dual northbound left-turn lanes for traffic entering the I-10 westbound on-ramps, along with related improvements. The project has completed the 95% design milestone. The Project Location is included as Attachment 1.
On July 6, 2025, the City received notification that the I-10/Riverside Avenue Interchange Phase II project was selected for funding through TCEP. The project will receive $29,800,000 towards the construction of the project.
ANALYSIS/DISCUSSION:
On June 26, 2025, the CTC adopted the Program of Projects for the 2024 TCEP, where the I/10 Riverside Avenue Freight Improvement Project was awarded $29.8 million. Although the funding application was submitted in partnership with Caltrans, the City of Rialto will be the project's implementing agency.
In accordance with the SB 1 Accountability and Transparency Guidelines, the City of Rialto must enter into a Baseline Agreement with Caltrans and the CTC for any project receiving TCEP funds. The Baseline Agreement sets forth the agreed-upon expected project benefits, scope, schedule, and cost. It also provides a benchmark for comparison to the current status of the project and the forecast of conditions under a no-build scenario, through the Performance Metric Form. Baseline Agreements identify the agency responsible for meeting the reporting requirements and, for locally implemented projects, identify Caltrans’ responsibilities relative to the type and location of the project.
Additionally, the CTC considers the Baseline Agreement as the front-end document that forms the foundation for in-progress and follow-up accountability.
The deadline for completing the baseline agreement for the TCEP program is six months from the date of environmental clearance. The environmental clearance for this project was obtained on October 5, 2025; therefore, the City’s deadline for obtaining the CTC’s approval of the baseline agreement is April 3, 2026. The last CTC meeting before this deadline is scheduled for March 19, 2026. However, to ensure the project is included on the CTC agenda for review and final approval, the City must submit all required documents, including the Council-approved baseline agreement, to Caltrans on or before January 20, 2026.
A copy of the Baseline Agreement is included as Attachment 2. A copy of the Performance Metric Form is included as Attachment 3.
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:
This action is consistent with Guiding Principle 3A 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.
The City of Rialto has also outlined key Goals and Objectives through which the City looks to minimize congestion on the local road network, create opportunities and incentives for people to avoid use of their cars for short trips, and maintain a circulation system that supports local businesses’ needs. These efforts will contribute to reductions in greenhouse gas emissions pursuant to State mandates.
Approval of this action also complies with the City of Rialto General Plan Goal 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 and approved the resolution and agreement, substantially as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action has no impact to the Operating Budget.
Capital Improvement Budget Impact
The I-10/Riverside Avenue Freight Improvement Project has a total estimated cost of $45.68 million across all phases.
The $29.80 million TCEP grant award specifically funds the construction phase, which was estimated at $37.24 million at the time of grant application. This grant represents the largest single funding component and covers approximately 80% of construction costs.
The grant funds must be expended in accordance with TCEP program guidelines and State contracting requirements. Any cost overruns beyond the total project budget would require identification of additional funding sources and Council approval.
Licensing
The proposed action will not require payment of a business license.