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 Budget Resolution No. 8588 to Amend the Fiscal Year 2026/2027 Budget to Appropriate $500,000 from the Traffic Development Impact Fee (DIF) Fund; (2) Approve the San Bernardino County Transportation Authority Assuming the Lead Agency Role for Project Management Services, Including Advertise, Award, and Administer Services, During the Construction Phase of the I-10/Riverside Avenue Freight Improvement Project - Phase II, City Project No. 140813; and (3) Authorize the City Manager or Their Designee to Continue Coordinating with San Bernardino County Transportation Authority and, Subject to City Attorney Review and Mutually Acceptable Terms, Execute all Related Documents Necessary to Implement These Services.
(ACTION)
Body
RECOMMENDATION:
Staff recommends that the City Council:
1) Adopt a budget resolution to amend the Fiscal Year 2026/2027 budget to appropriate $500,000 from the Traffic Development Impact Fee (DIF) Fund;
2) Approve the San Bernardino County Transportation Authority assuming the lead agency role for project management services, including advertise, award, and administer services, during the construction phase of the I-10/Riverside Avenue Freight Improvement Project - Phase II, City Project No. 140813; and
3) Authorize the City Manager or their designee to continue coordinating with San Bernardino County Transportation Authority and, subject to City Attorney review and mutually acceptable terms, execute all related documents necessary to implement these services.
BACKGROUND:
Staff has coordinated with the San Bernardino County Transportation Authority (SBCTA) regarding its experience with the I-10/Cedar Avenue Interchange project, which also involves widening a bridge over the Union Pacific Railroad (UPRR) rail yard. SBCTA’s experience with this project, particularly its coordination with Caltrans District 8 and UPRR, could provide valuable insight to support delivery of the City’s project. SBCTA indicated that a formal letter of interest is needed to initiate its internal approval process, including consideration by its Board.
Based on these discussions and the potential benefits of SBCTA’s experience and coordination with Caltrans and UPRR, staff recommended this approach to the City Manager.
On October 12, 2026, the City Manager submitted a letter to SBCTA requesting that SBCTA assume lead construction agency responsibilities and provide Advertise, Award, and Administer (AAA) services during the project’s construction phase. A copy of the letter to SBCTA is included as Attachment 1. In SBCTA’s letter response, dated October 21, 2026, to the City Manager, SBCTA acknowledged the City’s request and outlined the conditions under which SBCTA may provide the requested services. A copy of SBCTA’s response letter is included as Attachment 2. SBCTA stated that, under Measure I Strategic Plan Policy VFI-34, assuming project management responsibilities during the construction phase requires the SBCTA Board of Directors to approve an exception to the policy and the parties to execute a mutually acceptable agreement.
To meet the grant deadlines and maintain the existing project schedule, SBCTA has expedited its review of the request and presented it to the SBCTA Board of Directors for consideration at its November 4, 2026, meeting. The Board approved the item on November 4, 2026. SBCTA’s staff report is included as Attachment 3.
ANALYSIS/DISCUSSION:
The City of Rialto is finalizing the design and construction bid package for the I-10/Riverside Avenue Freight Improvement Project - Phase II (City Project No. 140813). The project includes improvements to the Riverside Avenue overhead bridge and is intended to enhance regional transportation and freight mobility.
The City of Rialto formally requested that SBCTA assume the lead agency role for project management services, including AAA services, during the construction phase of the I-10/Riverside Avenue Freight Improvement Project - Phase II (City Project No. 140813). This request was made to facilitate project delivery and streamline the administration of the construction phase. The proposed action would authorize SBCTA to perform these services in accordance with the terms and conditions agreed upon by the City and SBCTA.
Following Board approval, SBCTA staff indicated that it would work with City staff to develop an agreement defining the parties’ roles and responsibilities, scope of services, project delivery requirements, schedule, and cost-reimbursement procedures for AAA services.
Pursuant to Measure I Strategic Plan Policy VFI-35, SBCTA advised that the City would be responsible for reimbursing SBCTA for its actual project management costs, estimated at $500,000. SBCTA clarified that this estimate covers project management and oversight only. Construction capital, construction management/inspection consultant services, and other support costs would remain project costs paid through the project funding plan.
SBCTA stated that its provision of AAA services is contingent on the project being fully funded. The Cooperative Agreement will address responsibility for any funding shortfall if bids exceed available funding. If Trade Corridor Enhancement Program (TCEP) funds are lost or bids exceed available funding, replacement funding and an amendment to the Cooperative Agreement would be required before construction begins.
SBCTA’s response also notes that the City is expected to continue providing right-of-way support, utility coordination, and other responsibilities identified in the City’s request. The Cooperative Agreement will be based on the City delivering right-of-way certification, utility relocation certification, and its other responsibilities in time to meet the TCEP allocation and contract award deadlines.
The final agreement will clearly identify the services to be provided, the City’s continuing responsibilities, reimbursement of actual SBCTA project management costs, funding conditions, and the process for addressing any funding shortfall.
ENVIRONMENTAL IMPACT:
The proposed action is not a “project” as defined by the California Environmental Quality Act (CEQA), Section 15378. CEQA Guidelines Section 15378(b)(5): organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment are not a project. The action assigns construction-phase project management and Advertise, Award, and Administer (AAA) services to SBCTA. It also appropriates funds to reimburse SBCTA’s project management and oversight costs. It does not approve construction, change the project’s physical scope, or authorize any activity that would physically change the environment.
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:
All related documents will be reviewed by the City Attorney’s Office and approved as to form before execution.
FINANCIAL IMPACT:
Operating Budget Impact:
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
SBCTA estimates the cost of project management and oversight services at $500,000, which the City would be responsible for reimbursing pursuant to Measure I Strategic Plan Policy VFI-35. This estimate excludes construction management and inspection consultant services, and other support costs. Staff will return to City Council to request funding for these services, once the construction bid package and associated cost estimate have been finalized.
Staff recommends appropriating $500,000 from the Traffic DIF Fund balance to the Traffic DIF Fund Account No. 22504312-53001.
Upon the adoption of the Resolution and approval of the revised budget, there will be sufficient funds available for the SBCTA proposed assumption of project management responsibilities in the amount of $500,000. This amount will be allocated in the Traffic DIF Fund Account No. 22504312-53001-140813-34.
Licensing
This action does not require payment of a business license.
ATTACHMENTS:
1. City Manager’s Letter to SBCTA
2. SBCTA Response Letter
3. SBCTA Staff Report
4. Budget Resolution