TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Amendment to the Construction Reimbursement Agreement with LS College Park, LLC for the design/construction of public improvements on Edison Avenue between Central Avenue to Oaks Avenue in the amount of $2,500,000 for a total contract amount not to exceed $16,200,000.
end
RECOMMENDATION
recommendation
1) Appropriate $2,500,000 to the Transportation Fund (320 Fund) and schedule a corresponding year-end transfer from the Citywide Circulation (Streets, Signals, & Bridges) Development Impact Fee program (220 Fund); 2) increase the project budget for ST163, Edison Avenue between Central and Oaks Avenues, by $2,500,000 bringing the total project budget to $16,200,000; 3) approve an amendment to the construction reimbursement agreement with LS College Park, LLC for the design and construction of public improvements on Edison Ave between Central Avenue and Oaks Avenue, increasing the agreement amount by $2,500,000, for a total not to exceed $16,200,000; and 4) authorize the City Manager to execute all the necessary documents of behalf of the City.
body
FISCAL IMPACT
Requires an appropriation to the Transportation Fund. There is sufficient balance in the Citywide Circulation (Streets, Signals, & Bridges) Development Impact Fee program (220 Fund) for the year end transfer of $2,500,000 to offset the costs to the Transportation Fund (320 Fund). There is no fiscal impact to the General Fund with the approval of this amendment.
|
Funding Type |
Budget |
Expenditures |
Remaining |
|
Successor Agency Funds |
$ 8,431,000 |
$ (8,431,000) |
$ - |
|
Measure I CPNA |
$ 2,000,000 |
$ (342,463) |
$ 1,657,537 |
|
Citywide Circulation DIF |
$ 5,769,000 |
$ - |
$ 5,769,000 |
|
Total |
$ 16,200,000 |
$ (8,773,463.43) |
$ 7,426,537 |
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
• Responsible Long-Range Planning
|
Revenue: |
Expenditure: 3207100-40010-ST163 |
|
Transfer In: 3201000-50000 |
Transfer Out: 2201000-40001 |
BACKGROUND
On September 7, 2004, the City of Chino entered into the College Park Development Agreement (“Development Agreement”) with SCC/College Park, LLC (“SunCal”), the City of Chino Redevelopment Agency, and the State of California. Subsequently, SunCal filed for bankruptcy and the rights and interests to the Development Agreement were transferred with the sale of the property to LS College Park, LLC (“Developer”).
The Development Agreement outlines the various terms and conditions associated with constructing public improvements within and surrounding the College Park Specific Plan area. These public improvements include the ultimate street widening of Edison Avenue adjacent to Ayala Park, from Central Avenue to Oaks Avenue, and other associated improvements such as the construction of a master-planned storm drain, a recycled water main, and traffic signal modifications at the Central/Edison Avenue intersection (collectively referred to as the “Edison Avenue Improvements”).
On August 2, 2016, the City, as Successor Agency to the Redevelopment Agency (“RDA”), and the Developer entered into a reimbursement agreement for the Edison Avenue Improvements for a not exceed amount of $8,431,000. Shortly thereafter, the Developer began the preliminary field activities in preparation to begin the design and construction of the Edison Avenue Improvements. The Developer was able to complete the construction of the recycled water main improvements on Edison Avenue in short order; however, during the construction of the storm drain, the contractor encountered a dry utility conflict across Edison Avenue, which resulted in significant construction delays.
In 2021, the Developer formally bid the landscape, street improvements, traffic signal modifications, interconnect, and the remaining storm drain work. Upon the Developer bidding the remaining work, it was discovered that the costs associated with the perimeter landscape, sidewalk, relocation of trees, and a marquee at and around Ayala Park, were not included in the reimbursement agreement’s original cost estimate. As a result, the City Council approved an amendment to the reimbursement agreement in the amount of $3,976,140 for the additional work for a total estimated project cost of $12,407,140.
On October 17, 2023, the City Council approved a second amendment to the reimbursement agreement totaling $1,292,860. This amendment covered expenses for extra storm drain improvements and various project-related field change orders essential for project completion. The additional work increased the total estimated project cost to $13,700,000.
Currently, within the last 8 months, the contractor hired by the Developer has encountered additional delays attributed to unforeseen tasks required to complete the project. These tasks have included significant efforts such as relocating Southern California Edison underground utilities, which conflicted with the proposed storm drain, as well as conducting extensive grading and landscape improvements at Ayala Park spanning from 12th Street to the YMCA entrance.
These delays have led to increased project expenditures, exacerbated by rising costs of labor and materials. Additionally, both City staff anticipates additional field change orders to finalize the project, which are estimated to cost $2,500,000. These change orders encompass several major items, including:
• Full pavement rehabilitation of Edison Avenue from Central Avenue to Oaks Avenue.
• Removal and replacement of street pavement at the intersection of Central and Edison Avenues to ensure compliance with accessibility standards for crosswalks.
• Relocation and reconstruction of the existing monument sign located at the southeast corner of Edison Avenue and Central Avenue.
To cover the additional work required to close out the project, staff proposes amending the current agreement by $2,500,000. The breakdown is summarized as follows:
|
$ 8,431,000 |
Original Agreement |
|
$ 3,976,140 |
Amendment No. 1 |
|
|
$ 1,292,860 |
Amendment No. 2 |
|
|
$ 13,700,000 |
Subtotal before proposed Amendment No. 3 |
|
|
$ 2,500,000 |
Proposed Amendment No. 3 |
|
$ 16,200,000 |
Total Contract not to Exceed |
This amendment, if approved, will bring the total contract amount to $16,200,000, ensuring sufficient funding to complete the Edison Avenue Improvements project
ISSUES/ANALYSIS
According to the Development Agreement, the Edison Avenue Improvements are eligible for reimbursement by the Successor Agency (City of Chino). These improvements have been included in each of the City’s Recognized Obligation Payment Schedules (ROPS) and validated by the State of California Department of Finance as an enforceable obligation totaling $8,431,000. The Successor Agency funds allocated by the State of California Department of Finance to the City have been fully utilized. To cover the remaining project costs, the City plans to utilize Measure I CPNA funds and the Citywide Circulation (Streets, Signals, & Bridges) DIF program as outlined in the table below:
|
Funding Type |
Budget |
|
Successor Agency Fund 401 |
$8,431,000 |
|
Measure I CPNA Fund 328 |
$2,000,000 |
|
Citywide Circulation DIF Fund 220 |
$5,769,000 |
|
Total |
$16,200,000 |
Therefore, staff recommends that the City Council approve an amendment to the existing agreement for an additional $2,500,000, making the total not to exceed $16,200,000 for the Edison Avenue Improvements.
Attachments:
Fully Executed Reimbursement Agreement
Amendment No. 1
Amendment No. 2
Amendment No. 3