The proposed Overpass Agreement with Burlington Northern Santa Fe Railway Company (BNSF) provides for obligations of BNSF and the City to construct the overpass over BNSF right-of-way. The agreement includes the construction and design guidelines and requirements for the overpass. The agreement calls for special contract provisions that will be incorporated into the City’s construction contract including agreements that must be entered into between BNSF and the contractor.

The agreement provides for reimbursement of inspection labor costs borne by the railroad estimated to be $333,300 based on 250 days of work within BNSF right-of-way.

The financial impact is estimated to be $333,300.Currently, total projected unencumbered funds available from 2015 and 2017 G.O. Bonds is $10,812,438.60. Staff has identified an additional $2,600,000 in funding available for the project increasing the funds available to $13,412,438.60.

Including this action, the projected encumbrances are the construction contract, UPRR agreement and the construction phase services IPO with Kimley-Horn and Associates, Inc. with an estimated total of $14,220,020.04. The estimated funding gap is $807,581.44. Contract expenditures will be funded in the interim through the Fund Balance with the intent of reimbursing the Fund with a future funding mechanism to provide the total required funding.

Staff recommends approval of the Overpass Agreement with Burlington Northern Santa Fe Railway Company for Bailey Boswell Road Overpass.