TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Final Acceptance of the Kimball Avenue Landscape Median and reimbursement for Bickmore Avenue Street Improvements constructed by Richland Ventures, Inc. associated with Parcel Map No. 19756.
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RECOMMENDATION
1) Appropriate and authorize the reimbursement of $120,144.47 from the Preserve Circulation Development Impact Fee Fund 260 to Richland Ventures, Inc. for additional street improvements completed on Bickmore Avenue; 2) accept the public improvements as complete for the Kimball Avenue Landscape Median constructed by Richland Ventures, Inc. associated with Parcel Map No. 19756; 3) authorize release of the performance bond and initiate the one-year warranty period; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Approval of the reimbursement requires an appropriation of $120,144.47 to the Preserve Circulation Development Impact Fee Fund (Fund 260). There is sufficient fund balance for this transaction.
There is no direct fiscal impact related to the acceptance of the landscape median improvements, as ongoing maintenance responsibilities will be assumed by the Homeowners Association (HOA).
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars in which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Public Service Excellence through Internal and External Partnerships
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Expenditure: 2607005-43640 |
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BACKGROUND
Subdivision Improvement Agreement & Construction Credit Reimbursement Agreement Parcel Map No. 19756
Parcel Map No. 19756, submitted by Richland Ventures, Inc. (“Richland)”, initially proposed the development of a 1.2 million square-foot light industrial business center, referred to as the Altitude Business Center, on approximately 72.77 acres within the Airport Related land use designation of The Preserve Specific Plan. The project is located on both the east and west sides of Quality Way (formerly Mayhew Avenue), between Kimball and Bickmore Avenues, as depicted in Exhibit A. The Tentative Parcel Map No. 19756, processed by Richland, received conditional approval from the City of Chino Planning Commission on October 7, 2019.
Pursuant to the Engineering Conditions of Approval for the Tentative Parcel Map, Richland was required to design and construct various backbone public improvements. These included, but were not limited to, potable water lines, street improvements, sewer lines, and storm drain systems along Kimball, Quality Way, and Bickmore Avenues. To ensure the timely delivery of the public improvements, a Subdivision Improvement Agreement was executed, and the required securities were posted and approved of by the City Council on May 19, 2020, as subsequently amended (Exhibit B).
On November 5, 2024, the City Council accepted the public improvements constructed pursuant to the Subdivision Improvement Agreement for Parcel Map No. 19756 and authorized the release of the performance bond, thereby initiating the one-year warranty period. Several of the accepted improvements are master-planned facilities identified in the City’s Development Impact Fee (DIF) and Nexus Calculation Report. These facilities are eligible for DIF credit and/or reimbursement pursuant to Chino Municipal Code Chapter 3.45 and the Construction Credit and Reimbursement Agreement executed concurrently with the Subdivision Improvement Agreement on May 19, 2020 (Exhibit C). Richland is preparing the backup documentation to support reimbursement eligibility for the completed master-planned improvements. Upon review and approval of final “as-built” plans, specifications, and supporting documentation by City staff, a cost reconciliation will be presented to the City Council at a future meeting.
Public Improvements Agreement - Kimball Median Landscape
Concurrently with the final acceptance of the public improvements, the Council approved a new Public Improvement Agreement (“PIA”) and accompanying securities with Richland to ensure the completion of a missing segment of landscape within the Kimball Avenue raised median located immediately east of Euclid Avenue (Exhibit D). This new PIA was necessary due to the omission of this segment from the original landscape design, a detail that was inadvertently overlooked during staff’s plan review. Rather than delaying acceptance of the otherwise completed improvements, staff recommended executing a separate agreement to guarantee the installation of the remaining landscape improvements. The landscape improvements have since been completed in accordance with City plans and standards, and are now ready for final acceptance as depicted in Exhibit E.
Reimbursement for Bickmore Avenue Improvements
As part of the required public improvements for the Altitude Business Center project associated with Parcel Map No. 19756, Richland Ventures, Inc. (“Richland”) and In-N-Out Burgers entered into a construction agreement with Pacific Coast Engineering Contractors, LLC (“PCEC”) to construct backbone street improvements along Mayhew Avenue (now Quality Way), Bickmore Avenue, and Kimball Avenue. The original scope of work along Bickmore Avenue did not include a 20-foot-wide asphalt overlay along the south side of the street, as this segment was located beyond the project's frontage and was not required under the conditions of approval. At the City’s request, Richland agreed to expand its scope to include the overlay of this adjacent roadway section to provide a uniform transition between the newly constructed improvements and the existing pavement.
However, upon field inspection, Hardy & Harper, Inc., the paving subcontractor retained by PCEC, determined that the condition of the existing pavement was severely deteriorated and would not support an overlay. As a result, the City directed Richland to revise the scope of work to include full-depth removal and reconstruction of the 20-foot-wide pavement section. PCEC subsequently executed Change Order No. 3.1 to reflect this revision and directed Hardy & Harper, Inc. to complete the improvements.
Although this segment of Bickmore Avenue was not originally included in the project’s Conditions of Approval, the City directed Richland to expand the scope to address the severely deteriorated condition of the existing roadway. Rather than applying a basic asphalt overlay, the work involved full pavement removal and reconstruction to City standards at that time, consistent with the ultimate street section identified in the City’s Master Facilities Plan. Because the improvements were equivalent in scope and quality to those required of a new development project and resulted in permanent infrastructure benefiting the broader circulation system, the costs are considered eligible for reimbursement through the DIF program. This determination aligns with the Construction Credit and Reimbursement Agreement and the criteria set forth in Chino Municipal Code Chapter 3.45.
ISSUES/ANALYSIS
In October 2024, staff presented the final acceptance of the Altitude Business Center project to the City’s Infrastructure Streets Committee to obtain feedback on specific issues, including the prior sinkhole repair, storm drain pump operations, and the extended warranty for critical infrastructure. During this presentation, the Committee was also briefed on project nuances and outstanding close-out items, including the installation of the Kimball Avenue median landscape improvements and the anticipated pavement reimbursement along Bickmore Avenue. As these two items were previously discussed, are relatively minor in scope, and represent straightforward follow-through actions, staff did not return to the Infrastructure Streets Committee for further review prior to bringing them forward to the City Council for final action.
The public improvements now presented for acceptance include the landscaped median within Kimball Avenue, located directly east of Euclid Avenue, adjacent to the existing AM/PM commercial site and the McBride RV Storage facility. These improvements were constructed in accordance with City standards and specifications and have been reviewed and approved by the Public Works Inspector. The improvements were fully funded by the developer, and ongoing maintenance of the landscaped median will be the responsibility of the Homeowners Association (HOA).
Security for the required one-year warranty period has been submitted to the City. Pursuant to the terms of the warranty bond, the developer remains responsible for correcting any deficiencies identified during the one-year period following City Council acceptance.
Additionally, Richland submitted a reimbursement request for the additional pavement work completed along Bickmore Avenue. The City’s consultant, David Taussig & Associates (DTA), in coordination with Public Works Engineering staff, conducted a technical review of the request following the approval of final “as-built” plans, specifications, and supporting documentation. Based on the submitted materials and the results of the review, staff determined that the reimbursement request, in the amount of $120,144.47, is justified and consistent with the terms of the Construction Credit and Reimbursement Agreement. Staff recommend approval of the reimbursement and the corresponding fund appropriation.
Attachments: Exhibit A - Location Map - Parcel Map No. 19756
Exhibit B - Fully Executed Subdivision Improvement Agreement, as amended
Exhibit C - Fully Executed Construction Credit / Reimbursement Agreement
Exhibit D - Fully Executed Public Improvements Agreement
Exhibit E - Kimball Avenue Landscape Median