For City Council Meeting April 8, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request City Council to: 1) Accept Real Property Appraisals, Establishing Just Compensation for the Locust Roadway Widening and Rehabilitation Project, City Project No. 230812; 2) Accept the Waiver Valuation Reports for the Project; 3) Adopt Resolution No. 8329 Amending the 2024-2025 Fiscal Budget and Appropriating $3,500,000 in the Regional Traffic Development Impact Fee (DIF) Towards the Project; 4) Authorize the City Manager or Their Designee to Negotiate and Execute Agreements for Property Dedications for An Amount Not To Exceed $3,200,000; 5) Authorize a Contract Change Order to Mark Thomas Pursuant to their On-Call Professional Services Agreement for Professional Civil Engineering Services in An Amount Not To Exceed $254,710 for 11 Parcels Identified on Locust Avenue in Need of Corrective Right-of-Way Acquisition; and 6) Authorize the City Manager or Their Designee to Execute all Related Documents.
(ACTION)
Body
RECOMMENDATION:
Staff requests that the City Council:
1. Accept Real Property Appraisals, Establishing Just Compensation for the Locust Roadway Widening and Rehabilitation Project, City Project No. 230812.
2. Accept the Waiver Valuation Reports for the project.
3. Adopt a Resolution Amending the 2024-2025 Fiscal Budget and Appropriating $3,500,000 in the Regional Traffic Development Impact Fee (DIF) Towards the Project.
4. Authorize the City Manager or Their Designee to Negotiate and Execute Agreements for Property Dedications for An Amount Not to Exceed $3,200,000.
5. Authorize a Contract Change Order to Mark Thomas Pursuant to their On-Call Professional Services Agreement for Professional Civil Engineering Services in An Amount Not To Exceed $254,710 for 11 Parcels Identified on Locust Avenue in Need of Corrective Right-of-Way Acquisition.
6. Authorize the City Manager or Their Designee to Execute all Related Documents.
BACKGROUND:
On January 24, 2023, during the discussion to adopt the City’s Truck Route Interim Urgency Ordinance, the City Council requested staff expedite the roadway rehabilitation plans for Locust Avenue from Riverside Avenue to Casmalia Street. This segment of Locust Avenue, a designated truck route, is currently a two-lane road classified as a secondary arterial.
On April 25, 2023, the City Council adopted Resolution No. 8067 to amend the City’s current Capital Improvement Program to include the Locust Avenue Roadway Widening and Rehabilitation Project and to authorize a purchase order to Mark Thomas in the amount of $1,572,563 for professional civil engineering services.
The road rehabilitation and widening project is in the advanced stages of its design and approaching 90% completion; staff predicts the start of construction in Fall 2025. In anticipation of the right-of-way requirements to widen the road, it was determined that the City does not possess all of the necessary right-of-way. Further, the design team has identified multiple developed parcels within the Project area where private property limits extend into developed City infrastructure such as sidewalks, curbs, and gutters.
ANALYSIS/DISCUSSION:
Locust Avenue has been identified as a truck route, and the section between Riverside Avenue and Casmalia Street is currently a two-lane road, classified as a secondary arterial. With the current rehabilitation project, the roadway will be widened from curb to curb to widths ranging from 64 to 88 feet. The new design will include a parkway with sidewalks on each side of the street. After the improvements, Locust Avenue will have two (2) southbound lanes and two (2) northbound lanes designed to support the increased loads from heavy truck traffic.
Project Status
The project is currently in the advanced stages of its design, with design approaching 90% completion. The design team and City staff are targeting construction by Fall 2025.
The remaining Project tasks include relocating conflicting Southern California Edison (SCE) power poles and acquiring right-of-way to accommodate the street widening efforts. Prior to SCE facility relocations, the City must acquire the right-of-way to relocate the facilities and the real estate necessary for the street widening.
Appraisals for the properties required to complete widening activities, SCE power pole relocations, and waiver valuations for temporary construction easements have been completed. Staff recommends the City Council authorize the City Manager or their designee to negotiate and execute agreements for property dedications for an amount not to exceed $3,200,000. A summary of each property's appraisal and valuation amounts can be found in Tables 1 and 2 below, and a map of the subject areas is included as Attachment 1. Additional property details are on file with the City Clerk’s office.
Table 1 - Real Property Appraisals
Table 1 - Real Property Appraisals (Continued)
Table 2 - Real Property Valuations
The amounts of the just compensation for the above-referenced parcels are set in the amounts indicated in the value conclusions.
Additional Right-Of-Way Scope
The City discovered an oversight in prior developments along Locust Avenue concerning right-of-way relinquishment. In anticipation of the right-of-way requirements for the current widening project, the City has identified 11 developed parcels where private property limits currently extend into developed City infrastructure such as sidewalks and curbs & gutters. The City must acquire the affected right-of-way parcels after the fact to correct this. The process may involve negotiations with current property owners, compensation agreements, and legal measures to ensure the right-of-way is corrected and secured ahead of completing the Locust Avenue roadway widening efforts.
Staff recommends the approval on a time and materials basis with a not-to-exceed amount of $254,710 to Mark Thomas to assist with the acquisitions. A copy of their proposal is included as Attachment 2. A copy of Mark Thomas’s Disclosure Statement is included as Attachment 3.
Grant Submission for Construction Phase
On November 12, 2024, the City Council authorized staff to submit a project application to the California Transportation Commission (CTC) for the Locust Roadway Widening and Rehabilitation Project under the Local Partnership Program (LPP) Competitive Program. The total projected construction costs are $19.75 million, with partial funding available through local development fees collected via the Regional Transportation Development Impact Fee (DIF). The City has requested $9.73 million in LPP funding to support the construction phase, proposing that already secured development fees serve as local matching funds. Project awards are expected to be announced in June 2025.
In summary, the project’s progress in design has enabled the submission of the LPP grant request for construction funding. Considering these two significant advancements, staff recommends that the City Council approve the necessary actions for the right-of-way. This approval will help keep the project on schedule if the LPP grant is awarded. However, if the City does not receive the LPP grant, finalizing the right-of-way work will strategically position the City to pursue additional funding opportunities anticipated to be released in the Spring or Fall of 2026.
ENVIRONMENTAL IMPACT:
The City has completed an analysis of potential environmental impacts associated with the Project. Mark Thomas on behalf of the City acting as Lead Agency pursuant to CEQA has prepared a Notice of Exemption.
The project qualifies for a City CEQA Class 1, Category 3, and State CEQA Class 1(c) exemption if it consists of operation, repair, maintenance, or minor alteration of existing street, sidewalk, and gutter involving negligible or no expansion of use beyond that previously existing; and does not involve the removal of a scenic resource. The proposed project would involve low-impact roadway, utility, and circulation improvements (including ADA circulation improvements); however, implementation of the proposed project would not expand or include incompatible uses or changes to the existing purpose of the roadway facility. In addition, pursuant to Section 15300.2 (c) and 15301 of Title 14 of the California Code of Regulations, there are no unusual circumstances with respect to the proposed project for which staff would anticipate a significant effect on the environment and the environmental analyses conducted above provide substantial evidence that there is no potential for any significant impacts from implementation (planning, construction, operations, and maintenance) of the proposed project.
The Notice of Exemption was prepared and filed with the San Bernardino County Clerk.
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.
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 the resolution and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact:
There is no impact to the Operating Budget.
Capital Improvement Budget Impact:
The project is currently funded by the Regional Transportation DIF, Account No. 22504312-53001, in the amount of $1,686,186. These funds were appropriated to initiate the design phase.
Regional Transportation DIF is projected to accumulate $19,892,415 by Fiscal Year 2026 through carryover funds and expected future revenues. Staff is recommending the adoption of Resolution No.____ to approve an appropriation in the Regional Transportation DIF, Account No. 22504312-53001-230812-03, in the amount of $3,500,000 for the project. This funding is necessary to cover costs associated with property dedications in the amount of $3,200,000 and a contract change order to Mark Thomas, pursuant to their On-Call Professional Services Agreement for Professional Civil Engineering Services, not to exceed $254,710.
The request for $3,500,000 is specifically for right-of-way acquisition costs; funds for the construction phase have not yet been appropriated for this project. By June 2025, staff will determine if the project has been selected for funding through the Local Partnership Program (LPP) grant in the amount of $9.73 million, which would support construction. At that time, staff will return to the council to discuss appropriations.
Licensing
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