REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 5 and Amendment No. 6 to the Grant Agreement with the California Department of Transportation Division of Rails and Mass Transportation, to include additional at-grade crossing upgrades and to expand the budget for the Agnew Road At-Grade Crossing Project and Related Budget Amendments
Report
BACKGROUND
In 2014, City staff submitted a request for safety improvements at the Agnew Road crossing of the Union Pacific Railroad (UPRR) tracks (Attachment 1) under the Section 130 Railroad-Highway Crossings Program. This federally funded program, established by the U.S. Congress in 1987, is intended to eliminate hazards to vehicles and pedestrians at public railway-roadway crossings. The program is funded by the Federal Highway Administration (FHWA), administered in California by the Department of Transportation’s Division of Rails and Mass Transportation (Caltrans), and utilizes federal Surface Transportation Program (STP) funds.
Under state guidelines and the California Public Utilities Code, the California Public Utilities Commission (CPUC) is responsible for determining the scope of work needed to eliminate hazards at all public at-grade crossings.
In July 2017, the CPUC issued final recommendations for improvements at the Agnew Road crossing. The proposed work is divided between the City and UPRR. The City’s scope includes reconstruction and installation of concrete sidewalks, tactile warning strips, curb ramps, pavement striping, and adjustment of utilities within the City and railroad rights-of-way. UPRR’s scope includes replacement of railroad warning devices (flashing lights and automatic gates) and reconstruction of the concrete panel crossing surface.
In December 2017, Caltrans notified the City that $573,750 in federal funding had been obligated for the City’s portion of the work. This amount covers 100 percent of the City’s estimated costs, and no local funding match is required. Caltrans will reimburse the City for all eligible costs incurred up to this amount. The City and UPRR will coordinate throughout the design and construction phases to deliver all recommended safety improvements at the crossing. On March 20, 2018, City Council approved the agreement with the California Department of Transportation Division of Rails and Mass Transportation for the Agnew Road At-Grade Crossing Project (Attachment 2).
To date, the City and Caltrans have executed Amendments No. 1 through 4 to the agreement (Attachment 3), which address extensions of the grant agreement duration and authorization for the City Manager to make minor modifications to the agreement and execute all documents necessary for the administration of the project.
DISCUSSION
The City worked closely with Caltrans and UPRR to advance the project. However, the project was delayed due to coordination with the Capitol Corridor Joint Powers Authority (CCJPA) on their adjacent Agnew Siding Rail Improvement Project. During this effort, the California Public Utilities Commission (CPUC), which oversees railroad and rail transit safety in California, recommended additional safety enhancements that were not within the project scope and budget. In response to CPUC’s recommendations, the City, Caltrans, and UPRR determined that to address the CPUC’s recommendations additional improvements and grant funding is required.
To support these improvements, Caltrans, UPRR, and the City have agreed to include additional at-grade crossing upgrades under this project and to expand the project budget. As a result, Caltrans prepared Amendments No. 5 and No. 6 to the agreement, providing the City with an additional $3,812,402.49 in funding. This brings the total project funding to $4,386,152.49. This amount covers 100 percent of the City’s estimated costs, and no local funding match is required.
Staff requests Council authorization for the City Manager, or designee, to execute Amendment No. 5 and Amendment No. 6 to the agreement (Attachment 4). Amendment No. 5 reduces funding from $573,750 to $12,152.49 and Amendment No. 6 increases funding to $4,386,152.49. Caltrans prepared these amendments to align the project with its administrative accounting procedures. Staff also requests approval of the associated budget amendments. Staff will return to Council, as needed, for the award of future consultant and construction contracts related to this project.
ENVIRONMENTAL REVIEW
This project is federally funded and requires environmental review under both the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). Caltrans is the lead agency responsible for NEPA review and the City is the lead agency responsible for CEQA review. The City, as the lead agency responsible for CEQA, will complete any necessary additional environmental review required by CEQA as part of the project development process.
FISCAL IMPACT
The total revised cost estimate for the work to be completed by the City is $4,386,152.49. The City has received $12,152.49 in prior grant reimbursements, and this project is currently budgeted in FY 2025/26 in the amount of $560,645. Staff requests a budget amendment to increase funding for the Agnew Road At-Grade Crossing Project by $3,813,355, which will be funded through reimbursements from Caltrans. As the funding source is external and there is no local match, there is no impact to the City’s General Fund with the exception of staff time.
Budget Amendment
FY 2025/26
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Current |
Increase/ (Decrease) |
Revised |
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Streets and Highways Capital Fund |
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|
|
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Revenues |
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|
|
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Other Agencies Revenue |
$28,571,001 |
$3,813,355 |
$32,384,356 |
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Expenditures |
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Agnew Road At-Grade Crossing Project |
$560,645 |
$3,813,355 |
$4,374,000 |
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to Execute Amendment No. 5 and Amendment No. 6 to the Grant Agreement with the California Department of Transportation Division of Rails and Mass Transportation, to include additional at-grade crossing upgrades and to expand the budget for the Agnew Road At-Grade Crossing Project and Related Budget Amendments, in final forms approved by the City Attorney; and
2. Approve the FY 2025/26 budget amendment in the Streets and Highways Capital Fund to increase the Other Agencies Revenue estimate by $3,813,355 to recognize grant funding for the California Department of Transportation Division of Rails and Mass Transportation grant and increase the Agnew Road At-Grade Crossing Project expenditure appropriation in the amount of $3,813,355 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Location Map
2. Caltrans Grant Agreement
3. Executed Amendments No. 1, 2, 3, and 4 to Grant Agreement
4. Amendment No. 5 and 6 to Grant Agreement