TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Cooperative Agreement with the California Department of Transportation (Caltrans) for the relinquishment of State Route 83 (Euclid Avenue).
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RECOMMENDATION
recommendation
1) Adopt Resolution No. 2025-090, authorizing the City Manager to execute Agreement No. 08-1799 (Relinquishment Agreement) with Caltrans to accept a lump sum payment of $18,823,725 for the transfer of ownership of State Route 83 to the City of Chino; 2) establish a revenue object code within the General Fund for the deposit and project number MS265 for tracking future expenditures; 3) appropriate $60,000 to the Euclid Avenue Program for contract services to secure the transfer of easements on Federal Land for the Euclid Avenue Relinquishment Project MS265; and 4) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
This transaction will require a revenue increase in the General Fund of $18,823,725 and an appropriation of $60,000 from the General Fund 100, to prepare an easement transfer document required for relinquishment. A new revenue account and project number MS265 will be established to track all transactions for the relinquishment funds. During the close of each fiscal year, Accounting will reserve and track unspent amounts in the General Fund Assigned balance to be earmarked for future maintenance and project costs of Euclid Avenue.
Following California Transportation Commission (CTC) approval, tentatively scheduled for its March 2026 meeting, Caltrans will file a Resolution of Relinquishment with the County Recorder’s Office. Approximately 30 days following this recordation, the City will receive a one-time lump-sum payment of $18,823,725. Anticipated annual maintenance and capital improvement expenses will be incorporated into the Fiscal Year 2026-27 budget and 5-year Capital Improvement Program. Maintenance costs to close out Fiscal Year 2025-26 will be absorbed through current Citywide maintenance programs.
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
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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Revenue: 1001000-TBD-MS265 |
Expenditure: 1007010-40010-43650-MS265 |
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Transfer In: |
Transfer Out: |
BACKGROUND
Euclid Avenue was established as a state highway in 1934 and designated as California State Route 83 (SR-83) in 1964. SR-83 has historically served as a key north-south corridor for the region spanning 14 miles through the cities of Upland, Ontario, and Chino. In 2010, the City of Upland completed the relinquishment of SR-83 within its city limits, transferring control from Caltrans to Upland. Similarly, in 2024, the City of Ontario finalized the relinquishment of the portion of SR-83 within its jurisdiction, gaining local authority over the roadway for future planning, maintenance, and improvements.
On January 17, 2023, City Council adopted Resolution No. 2023-006 supporting and initiating State Legislation for the California Transportation Commission’s (CTC) relinquishment of SR-83 in the City of Chino. SR-83 spans 6.25 miles from Riverside Drive to State Route 71 (Exhibit A). In October 2023, Assembly Bill 250 passed, authorizing the CTC to consider relinquishing the portion of SR-83 within the City of Chino limits.
In September 2024, Caltrans staff provided a formal compensation offer to the City in the amount of $15,885,000 for the relinquishment of SR-83. This financial offer began further discussions between the City and Caltrans regarding potential terms of a relinquishment agreement. In April 2025, the City received a draft Relinquishment Agreement for review and comment. In August 2025, Caltrans, City staff, and City Attorney came to an agreement on the final language and terms. In September 2025, after negotiations between City staff and Caltrans District 8, Caltrans Headquarters approved an additional $2,938,725 in funding-an 18.5% increase over the original allocation-raising the total compensation to $18,823,725.
On September 30, 2025, City staff presented an update to the Infrastructure/Streets Committee on the progress of the relinquishment and negotiated financial compensation. The Committee provided support of the relinquishment to staff, allowing the Resolution to be brought forth to City Council for consideration.
ISSUES/ANALYSIS
Taking ownership of Euclid Avenue from Caltrans will enable the City to strategically align roadway improvements with local economic development goals. With greater control, the City can implement infrastructure upgrades and streetscape enhancements that attract investment, support local businesses, and create a more vibrant commercial corridor. This transition positions the City to proactively shape Euclid Avenue into a catalyst for sustained economic growth.
With relinquishment, the City gains the ability to pursue state and federal grants, as well as other external funding opportunities through SBCTA, to support roadway upgrades, safety enhancements, tailored traffic management, traffic signal interconnect and cameras, and beautification projects without relying solely on general fund dollars. This empowers Chino with greater local control, ensuring that improvements reflect community priorities and can be implemented more efficiently. Ultimately, the transition provides both fiscal flexibility and the autonomy needed to shape Euclid Avenue into a corridor that better serves residents, businesses, and visitors.
By signing the Agreement and adopting Resolution No. 2025-090, the City will accept and assume full maintenance, ownership, responsibility, control, and liability in perpetuity over the relinquished facilities in exchange for the payment of $18,823,725 from Caltrans to the City of Chino.
A portion of Euclid Avenue between SR-71 and Pine Avenue is located on federally managed lands of the United States Army Corps of Engineers (USACE). To transfer those rights, the City will need to enter into a temporary License Agreement with USACE for interim rights to access and maintain Euclid Avenue until a permanent roadway easement is executed between the City and USACE. To secure outstanding rights of Euclid Avenue on Federal land, the City will need to appropriate $60,000 to have an on-call consultant complete a legal description at a price of $7,475 and have USACE administer the process at an approximate cost of $50,000 which will finalize the easement transfer.
Staff recommends adoption of Resolution No. 2025-090 authorizing the City Manager to execute a Cooperative Agreement with Caltrans for the relinquishment of Euclid Avenue to the City. Following the CTC’s approval of the Resolution of Relinquishment, Caltrans’s recording of said Resolution with the County Recorder’s Office, and City’s receipt of an additional 18.5% funding allocation, totaling $2,938,725 above the original $15,885,000 programmed amount for a combined total of $18,823,715, the City shall formally accept the portion of Euclid Avenue in perpetuity identified in the Relinquishment Agreement.
Attachments: Exhibit A - Relinquishment Area Vicinity Map
Exhibit B - Resolution No. 2025-090 (Authorizing Cooperative Agreement)
Exhibit C - Agreement No. 08-1799 (Relinquishment Agreement)