TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Agreement between the City of Ontario and City of Chino for Operations and Maintenance of Raised Landscape Median on Euclid Avenue.
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RECOMMENDATION
Approve an agreement between the City of Ontario and City of Chino for the operation and maintenance of raised landscape median on Euclid Avenue; and authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
An increase in the City’s Operating Budget will be necessary to cover the ongoing maintenance costs for the raised landscape median once it is constructed and officially accepted by the City.
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
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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BACKGROUND
On October 27, 2020, the City of Ontario Planning Commission approved Parcel Map No. 20016. This map consists of seven numbered lots and one lettered lot on approximately 80.653 acres of land, as presented by the Developer, Euclid Land Venture, LLC. The proposed project consists of an industrial / business park to include seven warehouse buildings ranging from 43,400 square feet (sf) to 1,099,000 sf, totaling a maximum development of 1,676,000 sf of warehouse and office uses (“Project”). The Project area is bounded by Eucalyptus Avenue on the north, Sultana Avenue on the east, Merrill Avenue on the south, and Euclid Avenue on the west located in The Ontario Ranch Business Park Specific Plan area.
As a condition of project approval and under the terms outlined in the existing development agreement between the Developer and the City of Ontario, the Developer is obligated to design and construct public improvements on Euclid Avenue along the project frontage between Eucalyptus and Merrill Avenues. These improvements include a 65-foot-wide raised landscape median that will extend approximately halfway into the City of Chino jurisdiction (Exhibit A). The new median is intended to enhance both the visual appeal and functionality of the roadway per the City of Ontario’s Ontario Ranch Business Park Specific Plan and the City of Chino’s General Plan. Additionally, the Developer is required to design and construct improvements along the south side of Merrill Avenue within the Chino City limits, adjacent to Chino Airport.
The Developer has committed to completing these improvements through a Public Improvement Agreement with the City of Chino, which was finalized on October 18, 2022. This agreement includes the necessary securities to ensure the timely completion of the conditioned improvements, attached as Exhibit B.
Recently, the Developer and Chino agreed to extend the scope of improvements on Merrill Avenue to include additional features that were not part of the City of Ontario’s conditions of approval for the project. This includes the design and construction of traffic signal interconnects, sidewalks, parkway landscaping, and streetlights. These enhancements are intended to further benefit the community by improving traffic flow, aesthetics, and pedestrian safety.
On July 30, 2024, the City Council approved a construction reimbursement agreement with the Developer for a not to exceed amount of $15,709,100. This agreement covers the above-mentioned improvements, including installation of the new raised landscape median on Euclid Avenue. Additionally, this agreement represents a collaborative effort and shared investment between the City of Chino and Developer to enhance local infrastructure, addressing the needs created by new developments and supporting the local community and businesses in the surrounding area.
ISSUES/ANALYSIS
The Developer will up front all costs related to the construction of these public improvements, including the provision of necessary equipment and materials, per the approved construction plans and applicable standards. The Developer’s costs will be offset by The Preserve and Citywide Circulation Development Impact Fee (DIF) program funds, as well as $5.0 million deposited by the Scannell/FedEx project, designated for future enhancements along the Chino Airport perimeter, particularly on Merrill Avenue.
To manage the ongoing operation and maintenance of the raised landscape median, Ontario and Chino staff propose an agreement outlining the responsibilities of each agency for this shared facility. Initially, the agreement will solely address the segment of median between Eucalyptus and Merrill Avenues constructed with the Developer’s project. Under the proposed terms, Ontario will handle all operational and maintenance tasks for this segment, with Chino reimbursing 50% of the maintenance costs plus an additional 10% to cover administrative overhead. The estimated annual operation & maintenance cost for this segment is approximately $64,000, which includes expenses for landscape and irrigation system maintenance, water usage, electrical consumption, and a 10% contingency.
Future amendments to this agreement will be necessary to address additional segments of the raised landscape median to be constructed on Euclid Avenue north of Eucalyptus Avenue as part of future development projects. The two agencies will negotiate to address future cost distribution and maintenance responsibilities. Any amendments requiring changes to the cost split will be presented to the City Council for approval unless the changes fall within the staff’s authority to approve per the City’s Purchasing Ordinance.
Staff recommends that the City Council approve the proposed operation and maintenance agreement and authorize future amendments as needed to address additional segments of the raised landscape median.
Attachments: Exhibit A - Median Location
Exhibit B - Public Improvement Agreement
Exhibit C - Draft Agreement City of Ontario