TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Amending Reimbursement Agreements with the County of San Bernardino and the City of Montclair for the Central Avenue at State Route 60 Interchange Improvements Project (R7200).
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RECOMMENDATION
1) Approve Amendment No. 2 to the Reimbursement Agreement between the City of Chino and the County of San Bernardino in the amount of $66,216, increasing the total reimbursement amount from the County to $1,321,471; 2) Approve Amendment No. 2 to the Reimbursement Agreement between the City of Chino and the City of Montclair in the amount of $5,228, increasing the total reimbursement amount from Montclair to be $104,327; 3) Increase the City’s reimbursement revenue budget (Fund 320-R7200) by $401,293, bringing the revised total to $1,425,798; and 4) Authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
The City’s reimbursement revenue budget (Fund 320-R7200) will be increased to $1,425,798 for FY 2026-27.
Due to increased project costs, a final reconciliation was completed to determine actual eligible project costs and each agency’s respective cost-sharing obligations. Pursuant to Agreement No. 15-1001091 (R14050) between the San Bernardino County Transportation Authority (SBCTA) and the City of Chino, the final eligible project costs and revised cost-sharing allocations are summarized below:
|
Cost Allocation |
Amount |
|
Total Validated Project Cost |
$37,677,927 |
|
Public Share SBTCA |
$20,290,151 |
|
Development Share Chino, Montclair, and SB County |
$17,387,776 |
|
Total |
$37,677,927 |
The revised Development Share cost allocation among the participating agencies is summarized below:
|
Agency |
Development Share |
|
City of Chino |
$15,961,978 |
|
SB County |
$1,321,471 |
|
City of Montclair |
$104,327 |
|
Total Development Share |
$17,387,776 |
The City of Chino’s Citywide Development Impact Fee (DIF) Fund 220 advanced the funding necessary to complete the Central Avenue at State Route 60 Interchange Improvements Project R7200, including costs attributable to the County of San Bernardino and the City of Montclair. Reimbursements received from both agencies will backfill the DIF Fund 220 and General Fund as applicable.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
|
Revenue: 2207005-59355-R7200 |
Expenditure: |
|
Transfer In: |
Transfer Out: |
BACKGROUND
The Central Avenue at State Route 60 Interchange Improvements Project (R7200) was crucial for easing traffic congestion in the San Bernardino County region and for the City of Chino. The Project involved widening the eastbound and westbound ramps and the Central Avenue bridge, with improvements to hardscape and landscaping.
On October 1, 2013, the City of Chino and the San Bernardino County Transportation Authority (SBCTA) signed a Memorandum of Understanding to outline the Project's terms. This was followed by a Cooperative Agreement approved by the City Council on July 15, 2014, which designated roles including SBCTA as the lead agency responsible for project management, planning, environmental documentation, design, right-of-way acquisition, and construction. SBCTA was also tasked with selecting and managing consultants and coordinating with the California Department of Transportation (Caltrans) for property acquisition. The original total estimate of the Project was $20,591,000, with $12,493,964 representing the City of Chino’s cost share.
On December 15, 2015, the City of Chino entered into Reimbursement Agreements with both the County of San Bernardino (County) and City of Montclair for cost-share of the Project total. The City’s share is divided between the County (7.6%) and the City of Montclair (0.6%), with the remainder as City of Chino’s share (91.8%).
Over the past several years, the Cooperative Agreement with SBCTA has been amended to address changes and escalated costs during the Project's development. As a result of the actual bid amounts received by SBCTA, the City approved Amendment No. 1 to the Reimbursement Agreement with the County on August 19, 2021, increasing the County’s cost-share contribution by $305,714 from $949,541 to $1,255,255. Further, on March 10, 2022, the City approved Amendment No. 1 to the Reimbursement Agreement with the City of Montclair, increasing the City of Montclair’s cost-share contribution by $24,135 from $74,964 to $99,099.
City Council approved Amendment No. 5 to the SBCTA Cooperative Agreement on December 3, 2024, and subsequently Amendment No. 6 on February 3, 2026, bringing the City of Chino’s Contribution (prior to cost-share) to $17,387,776. The cost adjustment was a result of increased landscape maintenance, right-of-way acquisition, other soft costs and actual construction cost increases caused by unanticipated delays and inefficiencies encountered during construction.
ISSUES/ANALYSIS
The Project was substantially completed in April 2025. SBCTA began the four-year landscape maintenance period in July 2025 and will continue to oversee the contract prior to Caltrans ultimately taking over maintenance in July 2029. In July 2026, SBCTA issued a change order to the landscape maintenance contract to address rock encroachment onto the travel lanes. The change order authorized the installation of delineators at select freeway on and off-ramp locations to enhance safety and reduce the potential for rock intrusion.
The following table includes the cost-share breakdown of the Project from the original cost to the amount represented with Amendment No. 2 for both the County of San Bernardino and the City of Montclair.
|
Cost-share Breakdown of Central Avenue at State Route 60 Interchange Improvements Project (R7200) |
|
|
City of Chino Contribution (Prior to Cost-Share Agreements) |
County of San Bernardino Share (7.6%) |
City of Montclair Share (0.6%) |
City of Chino Share (91.8%) |
|
Original |
$12,493,964 |
$949,541 |
$74,964 |
$11,469,459 |
|
Amendment No. 1 |
$15,162,162 |
$1,255,255 |
$99,099 |
$14,937,808 |
|
Amendment No. 2 |
$17,387,776 |
$1,321,471 |
$104,327 |
$15,961,978 |
This action does not increase the overall cost of the completed Project. Instead, Amendment No. 2 aligns the reimbursement agreements with the final project costs and ensures the City recovers the additional amounts owed by the participating agencies.
Following approval of these amendments, the City will invoice each agency for its final proportional share. Contributions from San Bernardino County and the City of Montclair will reduce the City’s share by 8.2% as outlined in the reimbursement agreements approved by the City Council on December 15, 2015. Revenues received will be deposited into the applicable revenue account and used to reimburse the Citywide DIF program for project costs previously advanced.
Staff recommends that the City Council approve Amendment No. 2 to the Reimbursement Agreements with the County of San Bernardino and City of Montclair to allow reimbursement for the proportional shares from the County and City of Montclair for the final actual design and construction cost of the Project improvements. The City of Montclair approved Amendment No. 2 on April 21, 2026, and the County has placed this item on their October 20, 2026, Board Meeting agenda for approval.
Attachments: Exhibit A - Amendment No. 2 with County of San Bernardino
Exhibit B - Amendment No. 2 with City of Montclair