TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Funding Reconciliation for the Central Avenue / SR-60 Interchange Project (R7200).
end
RECOMMENDATION
recommendation
1) Appropriate $62,942 from the General Fund (Fund 100) to support required landscape maintenance for the Central Avenue / SR-60 Interchange Project (R7200); 2) approve a transfer of $988,803 from the General Fund balance to reimburse the Citywide Circulation DIF (220) for expenditures of the prior fiscal year Police Department masonry block wall; 3) appropriate $988,803 from the Citywide Circulation DIF (Fund 220) to the Central Ave / SR Interchange Project (R7200) for a revised project budget of $19,471,129; and 4) authorize the City Manager to execute all the necessary documents on behalf of the City.
body
FISCAL IMPACT
The $988,803 previously expensed to the Citywide Circulation Development Impact Fee Fund will be reclassified as an expense to the General Fund. This is due to the Police Department masonry block wall being outside the approved project scope for the Central Ave / SR Interchange Project (R7200). There are two appropriations: $62,942 from the General Fund (100) and $988,803 from the Citywide Circulation DIF (Fund 220). There is sufficient fund balance in Fund 100 and Fund 220 for both purposes. This adjustment restores the Circulation DIF Fund 220 and preserves the integrity of the Central Avenue / SR-60 Interchange Project (R7200) budget, while accurately accounting for the masonry wall outside the project.
|
Funding Source |
Adopted Budget |
Budget Adjustment |
Revised Budget |
|
Fund 220 Citywide Circulation DIF |
$ 14,719,590.00 |
$ 988,803.00 |
$ 15,708,393.00 |
|
Fund 260 Preserve Circulation DIF |
$ 1,725,000.00 |
$ - |
$ 1,725,000.00 |
|
Fund 320 SB County Reimbursement |
$ 1,255,255.00 |
$ - |
$ 1,255,255.00 |
|
Fund 320 City of Montclair Reimbursement |
$ 99,099.00 |
$ - |
$ 99,099.00 |
|
Fund 100 - General Fund |
$ 620,440.00 |
$ 62,942.00 |
$ 683,382.00 |
|
Total |
$ 18,419,384.00 |
$ 1,051,745.00 |
$ 19,471,129.00 |
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
BACKGROUND
The Central Avenue / SR-60 Interchange Project (R7200) is a significant regional transportation effort led by the San Bernardino County Transportation Authority (SBCTA), with the City of Chino serving as a key local partner. The project is designed to improve traffic operations, reduce congestion, and enhance safety at one of the region’s most critical freeway interchanges. Project improvements include roadway widening, bridge reconstruction, new on- and off-ramps, and enhanced connectivity for both vehicular and pedestrian traffic.
Throughout the planning and construction phases, SBCTA has coordinated closely with the City of Chino to ensure that all project elements align with regional transportation goals. The overall project budget is substantial and supported by multiple funding sources, including Development Impact Fee (DIF) funds, regional contributions, and local partnership funding.
On April 19, 2022, the City Council awarded a contract to Metrocell for construction of the masonry block wall project for the Chino Police Department. The improvement serves security and aesthetic purposes specific to the Police Department facility and a decision was made to add this project to the Central Avenue / SR-60 Interchange Project.
In FY 2024-25 during project reconciliation, the discrepancy was identified and staff became aware that the wall project was an ineligible use of DIF Funds because it did not provide a transportation or regional mobility benefit. This discrepancy was reported to the City Council during the City’s FY 2025-26 budget adoption process. Because the $988,803 wall expenditure was not an eligible use of DIF funds, a funding reclassification is required to shift the cost to the General Fund. This action ensures compliance with allowable DIF expenditure and aligns the cost with its appropriate departmental purpose.
This correction is part of the broader project closeout effort and was reviewed with both the Infrastructure/Streets Committee and the Finance Department during budget preparation discussions, ensuring transparency, fiscal accountability, and consistency in the City’s financial management.
ISSUES/ANALYSIS
As part of this budget adjustment, the $988,803 previously charged to the Citywide Circulation Development Impact Fee Fund will be reclassified as a General Fund expenditure, as the Police Department masonry block wall was outside the approved interchange project scope. This correction and reimbursement will restore the Circulation DIF funds and preserve the financial integrity of the Central Avenue / SR-60 Interchange Project R7200.
The R7200 project will include a budget appropriation of $62,942 from the General Fund to cover required landscape maintenance costs associated with the interchange improvements and reallocate $988,803 from the DIF Fund for any remaining project close out costs. Together, these actions ensure that all project expenses are appropriately funded while properly accounting for the wall as a non-transportation facility improvement.
Furthermore, in a subsequent report on tonight’s agenda, staff will present Amendment No. 6 to the SBCTA cooperative agreement, which incorporates the increased landscape costs and ensures full project budget alignment.