TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Final Acceptance of Public Improvements for Parcel Map No. 19756 for the Altitude Business Center Located South of Kimball Avenue on the East and West Sides of Quality Way.
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RECOMMENDATION
1) Accept public improvements as complete for Parcel Map No. 19756; 2) authorize the release of the performance bond and initiate the warranty bond period; 3) approve an amendment to the Subdivision Improvement Agreement for Parcel Map No. 19756 to extend the warranty period by an additional two years, totaling three years, for the storm drain pump and pavement on Quality Way and Bickmore Avenue; 4) approve a Public Improvement Agreement with Richland Ventures, Inc. for the Kimball Avenue Median Landscape; and 5) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
There is no current fiscal impact to the City at this time by accepting the improvements for Parcel Map No. 19756, due the one year warranty bond period, and an additional two years being requested.
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 on 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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BACKGROUND
Parcel Map 19756, as presented by Richland Ventures, Inc. (“Richland”) initially consisted of a 1.2 million- square foot light industrial business center located on 72.77 acres of land within the Airport Related (AR) land-use designation of The Preserve Specific Plan. This project is generally located in The Preserve on the east and west sides of Quality Way (formerly Mayhew Avenue), between Kimball and Bickmore Avenues (Exhibit A). Tentative Parcel Map No. 19756, processed by Richland Communities, was conditionally approved by the City of Chino Planning Commission on October 7, 2019.
The Engineering Conditions of Approval (“COA”) for Parcel Map No. 19756 required the developer, Chino Preserve Development Corporation, to design and construct certain backbone public and improvements including, but not limited to, potable water lines; street improvements; sewer improvements; and storm drain improvements in/on Kimball, Mayhew and Bickmore Avenues. The public improvements completed by the developer necessitated the execution of a Subdivision Improvement Agreement and posting securities that the City Council approved on May 19, 2020 (Exhibit B). It should be noted that the costs associated with the design and construction of the required public improvements are completely offset by the applicant. There is no direct fiscal impact on the City.
The public improvements have been completed to the satisfaction of the City Engineer, meeting all City standards and accessibility requirements. While the project encountered delays, these were not attributable to the review process; engineering plans were submitted and largely approved between March 2020 and June 2021. Construction commenced in October 2020, beginning with utility work at Bickmore Avenue and Quality Way. Improvements on Kimball Avenue included the installation of storm drains and water utility lines, alongside roadway reconstruction.
To facilitate construction, a prolonged road closure on Kimball Avenue was necessary due to inadequate space for safe two-way traffic movement. City staff approved this closure to enhance safety and expedite the improvements. Although the developer requested the closure in July 2021, it was postponed minimizing disruptions from other ongoing closures in The Preserve.
During the closure, conflicts emerged between the proposed utilities in their engineering plans and existing underground lines. The engineering plans did not accurately represent the existing utilities layouts and those of other agencies, such as Southern California Gas Company. This discrepancy required the developer to collaborate with City staff to find solutions and adjust the alignment of the new utilities, resulting in further delays. The closure, originally anticipated to last about 40 working days, extended through February 2022 due to these utility conflicts and wet weather.
Major construction activities took place from October 2020 to September 2023. Following this period, City staff provided the developer with a punch list of items that needed to be addressed prior to the City accepting the public improvements as complete.
A significant factor contributing to the extended timeline was the discovery of sinkholes at the southern end of the project site along Quality Way and Bickmore in January and March 2023. While the exact cause remains unconfirmed, it is believed it was from inadequate soil compaction during the installation of underground utilities or shallow groundwater issues. The contractor implemented repairs in February and June 2023, following guidance from their geotechnical consultant, which included the installation of geogrid material for soil reinforcement. Since these repairs, no additional sinkholes have been reported.
Another major public improvement was the construction of a segment of Storm Drain Line H, a master-planned City storm drain that collects water from Chino Airport and surrounding areas. This storm drain features a pipe with a diameter of up to 96 inches, running along Quality Way before discharging south of Pine Avenue into the Prado Lake area. The developer was responsible for constructing most of the northern half of this storm drain, extending from Kimball Avenue to approximately 900 feet south of Bickmore Avenue.
Due to the underground location of the storm drain, the developer was required to install an interim pump facility to manage water removal after rain events. This facility will be owned and maintained by the City until the remainder of Storm Drain Line H is constructed as part of either a future private land development project or a City capital improvement project.
During the 2023/2024 wet season, City inspection staff discovered that one of the storm drain pumps at the new facility was non-operational due to sediment buildup from upstream water quality basins along Kimball Avenue, which are maintained by the County for Chino Airport. This issue prompted the developer to order a replacement pump, contributing to further delays in project completion. Although these issues have been addressed to the City’s satisfaction, concerns regarding potential future problems persist.
ISSUES/ANALYSIS
There was an outstanding item identified by staff regarding the installation of landscaping in the new median constructed east of Euclid, in front of the AM/PM commercial property and the McBride RV storage facility. This median was inadvertently omitted from the developer’s landscape design, and the oversight was not caught during the landscape plan review. The developer has submitted revised landscaping plans, which are nearing approval, and the contractor intends to install the landscaping after the City completes a new westbound left turn pocket for the AM/PM property.
Additionally, the parkway on the south side of Kimball Avenue, fronting the Chino Airport basin, remains without landscaping. While the developer was required to construct certain street improvements on the south side of Kimball Avenue, including a new multipurpose trail, landscaping was not mandated in this area as it is east of their project site and does not directly abut their property. However, staff anticipates that landscaping improvements will be included in a proposed project by In-N-Out, which is currently undergoing administrative approval. This project involves expanding their parking area onto adjacent County land. Staff has communicated the City’s intention to condition the project to include landscaping improvements, and In-N-Out has agreed to comply.
All these items, including the previously mentioned sinkholes on Quality Way and Bickmore Avenue, as well as the storm drain pump, were presented to the Infrastructure Streets Committee on October 8, 2024, to gather feedback before scheduling the final acceptance of public improvements for City Council consideration. During the Infrastructure Streets Committee meeting, staff recommended the following actions:
1. Accept the public improvements as complete and authorize the release of the developer’s performance bond, triggering the beginning of a warranty period during which the developer is responsible for addressing any defects in the public improvements.
2. Amend the public improvement agreement to extend the warranty period by an additional two years, resulting in a total warranty period of three years. This extension aims to specifically ensure the roadway pavement and storm drain pumps are free of defects (Exhibit C).
3. Approve a new Public Improvement Agreement and associated security with the developer, ensuring the completion of the pending landscape improvements within the Kimball Avenue median (Exhibit D).
The Infrastructure Streets Committee supported staff’s decision to proceed with the final acceptance of the public improvements for the Altitude Business Park.
The public improvements that are being accepted by the City of Chino include domestic and recycled water, street, sewer, and storm drain improvements as shown on Exhibit E. The public improvements completed have been constructed in compliance with the City’s standards/specifications, and accessibility requirements, and to the satisfaction of the Public Works Inspector and City Engineer. All public improvements that were part of the COA for these tracts were fully funded by the developer.
Additionally, some of the public improvements are master-planned facilities detailed in the City’s Development Impact Fee and Nexus Calculation Report. These facilities are eligible for credit or reimbursement under the City's Municipal Code Chapter 3.45 and in accordance with the construction credit and reimbursement agreement approved by the City Council on May 19, 2020 (Exhibit F). Following the review and approval of the final "as-built" plans, specifications, and supporting documentation by staff, a reconciliation of the actual costs will be presented to the City Council at a subsequent meeting.
Security for a one-year warranty period has been submitted to the City. The warranty bond will be in effect for one year from the date of final acceptance. The developer will be notified of any required repairs or replacements within this one-year warranty period. If no repairs or replacements are necessary, the City will process a bond reduction for the extended warranty items, covering the remaining two-year period. The bond will remain in effect and will not be released prior to November 5, 2027.
Also, upon completion and final acceptance, the public improvements shall become the sole exclusive property of the City to operate and maintain.
The following maintenance obligations will commence following acceptance of the public improvements on Kimball Avenue, Bickmore Avenue and Quality Way, please refer to the infrastructure exhibits attachments.
Domestic Water: By the City
Recycled Water: By the City
Public Sewer: By the City
Storm Drain: By the City
Public Street Sweeping: By the City
Public Streetlights: By the Owner/HOA
Public Landscape: By the Owner/HOA
Attachments: Exhibit A - Location Map - Parcel Map No. 19756
Exhibit B - Subdivision Improvement Agreement
Exhibit C - Amendment Subdivision Improvement Agreement (Extended Warranty)
Exhibit D - Public Improvement Agreement (Kimball Median)
Exhibit E - Infrastructure Atlas
Exhibit F - DIF Construction Credit & Reimbursement Agreement