TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Amendment No. 5 - Cooperative Agreement between the City of Chino and San Bernardino County Transportation Authority (SBTCA) for the Interchange Improvements at Central Avenue and State Route 60.
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RECOMMENDATION
recommendation
1) Appropriate $620,440 to the Transportation Fund (320) from the General Fund (100) reserves; 2) increase the budget for Project R7200, Central Ave State Route 60 Improvements, by the same amount, for a total budget not to exceed $18,419,384; 3) approve Amendment No. 5 to the Cooperative Agreement between the City of Chino and SBCTA to address additional costs related to landscape maintenance, right-of-way acquisition, and other soft costs. This amendment will increase the City’s cost share by $405,441, bringing the City’s total cost share amount to $16,921,957, with an overall contract amount of $36,891,327; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
An appropriation of $620,440 from the General Fund (100) reserves is required for this project. San Bernardino County Transportation Authority oversees project management, with the City reimbursing the County through periodic billing cycles. The preliminary engineering, design, and construction costs are fully funded by Development Impact Fees (DIF) from both the General City and The Preserve areas. However, it is important to note that DIF funds do not cover maintenance costs, which necessitates the use of General Fund reserves for ongoing maintenance expenses.
|
TOTAL PROJECT BUDGET - R7200 |
|
Funding Source |
Adopted Budget |
Additional Appropriation |
Revised Project Budget |
|
DIF Fund 220 - Citywide Bridges/Signals/Thoroughfare |
$14,719,590.00 |
$0 |
$14,719,590.00 |
|
DIF Fund 260 - Preserve Bridges/Signals/Thoroughfare |
$1,725,000.00 |
$0 |
$1,725,000.00 |
|
Fund 320 - County of San Bernardino Reimbursement |
$1,255,255.00 |
$0 |
$1,255,255.00 |
|
Fund 320 - City of Montclair Reimbursement |
$99,099.00 |
$0 |
$99,099.00 |
|
General Fund 100 |
$0 |
$620,440.00 |
$620,440.00 |
|
TOTALS: |
$17,798,944.00 |
$620,440.00 |
$18,419,384.00 |
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
• Public Service Excellence through Internal and External Partnerships
|
Revenue: |
Expenditure: 3207100-40010-R7200 |
|
Transfer In: 3201000-50000 |
Transfer Out: 1001000-40001 |
BACKGROUND
The Central Avenue overpass project at State Route 60 (Project) is crucial for easing traffic congestion in the San Bernardino County region and the City of Chino. The project involves widening the eastbound and westbound ramps and the Central Avenue bridge, with improvements to hardscape and landscaping.
On October 1, 2013, the City of Chino and the San Bernardino County Transportation Authority (“SBCTA”) signed a Memorandum of Understanding (“MOU”) to outline the project's terms. This was followed by a Cooperative Agreement (“Agreement”), approved by the City Council on July 15, 2014, which designates SBCTA as the lead agency responsible for project management, planning, environmental documentation, design, right-of-way acquisition, and construction. SBCTA is also tasked with selecting and managing consultants and coordinating with the California Department of Transportation (“Caltrans”) for property acquisition.
The total estimated cost of the project is $20,591,000. Of this amount, $12,493,964 represents the City’s fair share. Contributions from San Bernardino County and the City of Montclair will partially reduce the City's share, as outlined in reimbursement agreements approved by the City Council on December 15, 2015. These contributions will be reimbursed at the conclusion of the project, subject to the availability of fund balances.
Over the past several years, the Agreement has been amended multiple times to address changes and issues during the Project's development. These amendments are summarized below
|
Agreement |
Approved |
Amount |
Description |
|
Original |
7/15/2014 |
$12,493,964 |
Designates SBCTA as the lead agency responsible for project management, planning, environmental documentation, design, right-of-way acquisition, and construction |
|
Amendment No. 1 |
10/17/2017 |
---- |
Council authorized SBCTA for the right of acquisition |
|
Amendment No. 2 |
12/5/2018 |
$6,375,513 |
Adjusted scope of work due to Caltrans design policy changes and unforeseen environmental conditions |
|
Amendment No.3 |
2/4/2020 |
$1,184,051 |
Adjusted cost estimate based on final design and escalated costs of construction |
|
Amendment No. 4 |
11/3/2020 |
$(3,537,012) |
Adjusted cost based on actual bid amount. Reduction in the City's cost share due to Proposition 1B Trade Corridor Improvement Fund buy-down requested by Caltrans from the California Transportation Committee in May 2020. |
|
City’s Cost Share |
$16,516,516 |
(as of Amendment No. 4) |
Construction is mostly complete and is presently under safety checklist and punch list review by Caltrans and the City. SBCTA will officially accept the project as complete once these items are resolved. Concurrently, final cost accounting is underway. As part of this process, Amendment No. 5, totaling $405,441, is necessary to cover the City’s cost share associated with landscape maintenance, right-of-way acquisition, and the preparation of plans, specifications, and estimates.
ISSUES/ANALYSIS
The completed landscaping work entered its one-year establishment period in March 2024. This period involves regular maintenance to support healthy growth and resolve any emerging issues. By the end of this period, the landscape is expected to be fully established, reflecting the project’s careful planning and efforts.
SBCTA is working to procure a four-year construction management and landscape maintenance contract, with the Notice to Proceed anticipated by February 2025. The current Agreement includes $195,216 for landscape maintenance; however, due to rising labor and material costs, SBCTA forecasts an additional $425,224 is required. This brings the total City share of funding needed for the full four-year maintenance period to $620,440. In order to keep the work on schedule, both SBCTA and City staff agreed to process this amendment now. SBCTA approved Amendment No. 5 at its Board meeting on November 6, 2024.
Additionally, there is a budget shortfall for right-of-way acquisition and the preparation of plans, specifications, and estimates. This will be covered using anticipated cost savings from other budget categories (i.e. construction and project management). Although the preliminary engineering, design, construction, and landscaping are funded through the Development Impact Fees (DIF) program, DIF funds cannot be used for maintenance. Therefore, the original landscape maintenance budget of $195,216 from DIF will not be used, and $620,440 will be allocated from the General Fund reserves to fully cover the maintenance costs. As a result, the DIF budget will have a surplus, as part of the landscape budget is no longer required, ensuring that no further DIF funds will be needed for this amendment. Moving forward, SBCTA will adopt a bottom-line budget approach to process invoices and reconcile final project costs.
Staff recommends that the City Council approve Amendment No. 5 to the Cooperative Agreement with SBCTA, which will increase the City’s total cost share by $405,441, bringing the total cost share to $16,921,957. This amendment also establishes the maximum contract amount at $36,891,327, as outlined in Exhibit B, titled Amendment No. 5 to Cooperative Agreement No. 15-1001091(R14050).
Attachments:
Exhibit A - Cooperative Agreement & Amendments 1-4
Exhibit B - Amendment No. 5 to Cooperative Agreement No. 15-1001091(R14050)