TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Amendment No. 1 to the Three-Party Cooperative Agreement between the City of Chino, the City of Ontario, and the San Bernardino County Flood Control District (SBCFCD) for the San Antonio Regional Storm Drain Project (R8001).
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RECOMMENDATION
Approve Amendment No. 1 to the Three-Party Cooperative Agreement between City of Chino, City of Ontario, and San Bernardino County Flood Control District (SBCFCD) for the San Antonio Regional Storm Drain Project (R8001) to increase the applicable costs by $284,750, for a revised City share amount of $868,750; and authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Sufficient funds are included in the Fiscal Year 2023-2024 Capital Improvement Program for Project No. R8001.
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
• Public Service Excellence Through Internal & External Partnerships
• Responsible Long-Range Planning
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Revenue: Click or tap here to enter text. |
Expenditure: 5407360 - 43650 -R8001 |
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Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
BACKGROUND
The construction of the San Antonio Avenue Storm Drain Project (R8001) is of critical importance to the City of Chino, City of Ontario, and San Bernardino County. The San Antonio Storm Drain runs northerly from the Sultana-Cypress Storm Drain in the City of Chino to Phillips Street and easterly on Philips Street to Oakland Avenue in the City of Ontario.
This facility consists of approximately 2.1 miles of mainline storm drain ranging in size from 90” reinforced concrete pipe to 9.5’x8’ reinforced concrete box and will be designed to carry 100-year storm runoff. The Sultana-Cypress Storm Drain, at the point of connection, will be a fully lined concrete trapezoidal channel under the jurisdiction of the San Bernadino County Flood Control District (“SBCFCD”).
The need for the project has been recognized by the SBCFCD as a significant Secondary Flood Protection Facility with regional impacts and funding was recommended as a part of the SBCFCD’s Zone 1 priority list and ten-year Construction Funding Program. As a result, SBCFCD has coordinated with staff from both the City of Chino and City of Ontario to establish a collaborative project which addresses storm drain needs. The City of Ontario will act as lead agency for both the design and construction phases of the project.
ISSUES/ANALYSIS
On November 3, 2020, City Council approved the City of Chino entering into a Three-Party agreement with the City of Ontario and the SBCFCD for the San Antonio Regional Storm Drain Project (R8001) for a total agreement amount not to exceed $23,360,000 and a City share portion not to exceed $584,000 for the design and construction of the San Antonio Storm Drain Project, with an additional $4,380,000 in SBCFCD contingency. The funding agreement between the City of Chino, the City of Ontario, and the SBCFCD utilizes Zone 1 Storm Drain Funds on a reimbursement basis for the project. SBCFCD’s share includes 75-percent of the project costs with the City of Chino and City of Ontario sharing the remaining 25-percent of project costs wherein Ontario is contributing 22.5-percent and the City of Chino contributing 2.5-percent of the overall 25-percent.
Construction costs have increased significantly since the time the agreement was authorized. The estimate total project cost is now $34,750,000, up from the original 2020 construction cost estimate of $23,360,000. Due to the anticipated increase in cost, the City of Ontario requests to split the additional expenses proportionally and to use the entirety of the allotted SBCFCD contingency, resulting in additional contributions of $4,162,500 from SBCFCD, $2,562,750 from Ontario, and $284,750 from the City of Chino. The following tables show a breakdown of the original and updated cost breakdown:
ORIGINAL AGREEMENT - TOTAL PROJECT COST $23,360,000
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AGENCY |
SBCFCD |
CITY OF ONTARIO |
CITY OF CHINO |
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Share |
$17,520,000 |
$5,256,000 |
$584,000 |
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Share Percentage |
75% |
22.5% (90% of 25%) |
2.5% (10% of 25%) |
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Contingency |
$4,380,000 |
$0 |
$0 |
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Total Contribution |
$21,900,000 |
$5,256,000 |
$584,000 |
PROPOSED REVISIONS - TOTAL PROJECT COST $34,750,000
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AGENCY |
SBCFCD |
CITY OF ONTARIO |
CITY OF CHINO |
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Share |
$26,062,500 |
$7,818,750 |
$868,750 |
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Share Percentage |
75% |
22.5% (90% of 25%) |
2.5% (10% of 25%) |
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Contingency |
$0 |
$0 |
$0 |
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Total Contribution |
$26,062,500 |
$7,818,750 |
$868,750 |
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Total Additional Funding |
$4,162,500 |
$2,562,750 |
$284,750 |
All three agencies, the City of Chino, the City of Ontario, and SBCFCD, are in support of these revisions and are committed to seeing this project through implementation. Staff is therefore recommending City Council approve Amendment No. 1 to the Three-Party Cooperative Agreement with the City of Ontario and SBCFCD increasing the City’s share by $284,750 for a revised total City contribution of $868,750. The City of Ontario is required to submit details of potential future contingencies in writing and receive written approval from SBCFCD and the City of Chino prior to incurring such costs.
Attachments: Amendment No. 1 to SB County Cooperative Agreement 21-276