Agenda packet — Chino City Council, November 21, 2023 (part 1 of 2)

Those persons wishing to speak on any item included on the agenda, or on any matter within the subject matter jurisdiction of the City Council, are invited fill out and submit to the City Clerk a “Request to Speak” form (name and address optional) which is available at the entrance to the City Council Chambers. Additionally, members of the public may submit electronic inquiries or comments by submitting emails to [email protected]
If you require a reasonable accommodation to participate in this meeting per your rights under the Americans with Disabilities Act or for any other reason, please contact the City Clerk’s Office (909) 334-3306, at least 48 hours prior to the advertised starting time of the meeting.

Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available in the City Clerk ’s Office during normal business hours at City Hall located at 13220 Central Avenue, Chino. In addition, such documents will be posted on the City’s website at www.cityofchino.org

CHINO CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

FINAL - CITY HALL COUNCIL CHAMBERS
13220 CENTRAL AVENUE
CHINO, CA 91710
TUESDAY, NOVEMBER 21, 2023

REGULAR MEETING
AGENDA
OPEN SESSION – 6:00 PM
_________________________________________________________________________________

ROLL CALL
Mayor Eunice M. Ulloa, Mayor Pro Tem Karen C. Comstock, Council Member Curtis Burton, Council Member Christopher Flores, Council Member Marc Lucio.

FLAG SALUTE

CEREMONIALS
Presentations
Mayor's Home Beautification Award - November 2023
Chino Community Theatre 40th Anniversary
Boy's Republic - Della Robbia Wreath Presentation

AGENDA ADDITIONS/REVISIONS

PUBLIC ANNOUNCEMENTS
This is the time and place for the Mayor to inform the public of all upcoming events and past occurrences of communitywide interest and concern.

PUBLIC COMMENTS
This is the time and place for the general public to address the City Council about subjects that do not appear elsewhere on the agenda. Due to Council policy and Brown Act requirements, 1 CHINO CITY COUNCIL
NOVEMBER 21, 2023 2
action will not be taken on any issues not on the Agenda. Ordinance No. 97-08 (Chino Municipal Code Section 2.04.090) limits speakers to no more than five (5) minutes in which to address Council, except as provided under Government Code 54954.3(b)(2).

CONSENT CALENDAR
At this time, members of the public may present testimony as to why an item should be removed from the Consent Calendar for separate discussion. Unless a member of the public or City Council requests that an item be removed from the Consent Calendar, all items will be acted upon as a whole and by one vote. Items placed on the Consent Calendar represent routine expenditures and/or actions that support ongoing City operations.

1. Warrants. Approve expenses as audited and within budget for warrants 767461 to 767655, and Electronic Fund Transfers 518041E to 518114E, totaling $5,319,524.07.

2. Minutes. Regular Meeting Minutes for November 7, 2023.

3. Elected City Officials’ Report Regarding Travel, Training, and Meetings. Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.

4. City Council Regular Meeting Cancellation. Authorize staff to cancel the January 2, 2024 City Council Regular Meeting.

5. Adoption of Ordinance No. 2023 -021. Adoption of Ordinance No. 2023 -021 amending Chapter

2.38 (Chino Community Services, Parks, and Recreation Commission) of the Chino Municipal Code (Second Reading).

ORDINANCE 2023 -021 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING CHAPTER 2.38 (CHINO COMMUNITY SERVICES,

PARKS, AND RECREATION COMMISSION) OF THE CHINO MUNICIPAL CODE

6. Adoption of Ordinance No. 2023 -020. Adoption of Ordinance No. 2023 -020 amending Title 12 (Streets, Sidewalks, and Other Public Places) of the Chino Municipal Code (Second Reading).

ORDINANCE 2023 -020 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING CHAPTERS 12.02 (PROTECTION OF INTERESTS WITHIN THE RIGHT -OF-WAY), 12.04 (STREETS), AND 12.08 (CURBS, GUTTERS,

SIDEWALKS, ASPHALT CONCRETE STREET PAVEMENT AND STREET LIGHTS) OF TITLE 12 OF THE CHINO MUNICIPAL CODE

7. Public Improvement Agreement - Kaykel Investment Properties, Inc. Approve the Public Improvement Agreement and securities with Kaykel Investment Properties, Inc. for Site Approval PL18-0047 located on the northeast corner of Central Avenue and El Prado Road.

8. Final Acceptance of Public Improvements - Parcel Map Nos. 19830 & 19831. Approve the Final Acceptance of Public Improvements for Parcel Maps Nos. 19830 & 19831, Euclid/Kimball Partners, LP a California General Partnership, located at 15723-15739 Euclid Avenue.

9. Chino Preserve Development Corporation - Subdivision Improvement Agreement Tract Map No.16420-5 (Block 3). Approve the Subdivision Improvement Agreement and securities with Chino Preserve Development Corporation for Tract Map No. 16420 -5 generally located on the north side of Chino Corona Road between Main Street and Legacy Park Street.

10. Memorandum of Understanding with San Bernardino County - Inspection & Permitting of Yorba Villas and other projects pending annexation. Approve a Memorandum of Understanding with County of San Bernardino for plan check, inspection and ministerial permit issuance services for Yorba Villas and other projects pending annexation. 2 CHINO CITY COUNCIL
NOVEMBER 21, 2023 3

11. Award of Contract - 7th Street Theater HVAC Replacement Project (IB249). Award a construction contract in the amount of $50,214 to C.E. Mechanical, Inc., Chino, CA, for the 7th Street Theater HVAC Replacement project, including expenditures of up to $7,532 in construction contingencies for a not-to-exceed construction contract

12. Classification and Compensation Adjustments to Classifications and Salaries for American Federation of State, County and Municipal Employees (AFSCME). Adopt Resolution No. 2023-073 approving Classification and Salary Schedule adjustments and title changes for job classifications represented by AFSCME, including an estimated appropriation of $382,184, or the actual amount, if not significantly higher.

13. California Department of Resources Recycling and Recovery (CalRecycle) Local Assistance Grant Programs. Approve Resolution No. 2023 -069 authorizing applications to CalRecycle for local assistance grant programs.

NEW BUSINESS

14. City of Chino Public Safety, Roads, Essential Services Measure. Adopt Resolution 2023 -071 declaring a fiscal emergency and Resolution 2023-072 calling the Special Municipal Election for the City of Chino Public Safety, Roads, Essential Services Measure.

Staff Report By: Linda Reich, City Manager
RECOMMENDATION:

1. Adopt Resolution 2023-071, declaring a fiscal emergency due to the projected severe deficits in future City budgets.

2. Adopt Resolution 2023-072, to approve the following:
a. Call and give notice of a Special Municipal Election for the purpose of submitting to the City’s qualified voters the “City of Chino Public Safety, Roads, Essential Services Measure,” which enacts the “City of Chino Transactions and Use Tax Ordinance” that establishes a general -purpose one percent retail transactions and use tax measure subject to majority voter approval; b. Request the Board of Supervisors of the County of San Bernardino to consolidate the Special Municipal Election with the Statewide Primary Election to be held on Tuesday, March 5, 2024;
c. Provide and set the rules for the filing of arguments for and against the measure and rebuttal arguments;
d. Direct the City Attorney to prepare the impartial analysis of the ballot measure; and
e. Provide for other election matters as required by law.

3. Conduct first reading of Ordinance to be submitted to City’s voters entitled, "AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA,

ESTABLISHING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION,” reading by title only and waiving further reading.

4. Authorize the Mayor, on behalf of the City Council, to prepare and file a written argument in favor of the proposed measure.

5. Authorize the City Manager to execute all the necessary documents on behalf of the City.

6. Approve an appropriation of $318,000 from General Fund reserves to fund the sales tax measure special election, voter information activities, and the assessment to administer the new local sales tax.
3 CHINO CITY COUNCIL
NOVEMBER 21, 2023 4

MAYOR AND COUNCIL REPORTS
This is the time and place for the Mayor and Council Members to report on prescheduled Council Committee Assignment Meetings that were held since the last Regular Council Meeting, and any other items of interest. Upon request by an individual Council Member, the City Council may choose to take action on any of the subject matters listed below.

Mayor Ulloa
Mayor Pro Tem Comstock
Council Member Burton
Council Member Flores

15. Community Support Fund - Council Member Flores. Approve community support fund contribution to the Chino High School Sports Boosters (Football Program).

Staff Report By: Council Member Flores
RECOMMENDATION: Approve community support fund contribution of $500 to the Chino High School Sports Boosters Football Program.

Council Member Lucio
City Manager's Report
City Attorney's Report
Police Chief's Report
Fire Chief's Report

ADJOURN
The next Regular Meeting of the City Council will be held on Tuesday, December 5, 2023 at 6:00 p.m. (Closed Session no earlier than 4:00 p.m. if necessary) in these Council Chambers.

I, Natalie Gonzaga, City Clerk of the City of Chino, hereby declare that on Thursday, November 16, 2023 this agenda was posted on the south window of Chino City Hall and this agenda together with all of the agenda reports and related documents were posted on the City’s website at www.cityofchino.org by myself or under my direction.
_______________________________________
Natalie Gonzaga, City Clerk.
4 MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: ROB BURNS, DIRECTOR OF FINANCE

SUBJECT
..titl e
Warrants.
..end

RECOMMENDATION
Approve expenses as audited and within budget for warrants 768010 to 768176, and Electronic Fund Transfers 518251E to 518311E, totaling $5,947,552.08. ..body

FISCAL IMPACT
Sufficient funds have been included in the Fiscal Year 23-24 Operating Budget.

Revenue:

Expenditure:

Transfer In: Transfer Out:
5 CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: WARRANTS.

PAGE: 2

BACKGROUND
As prescribed by Government Code Sections 37202 and 37208, the following demand registers are herewith submitted for Council ratification:

NO. WARRANTS DATE FY AMOUNT

1. 768010 – 768108 10/26/23 23-24 $1,603,238.66

2. 768109 – 768176 11/2/23 22-23 $426,240.07

3. 518251E – 518291E 10/27/23 22-23 $3,100,139.18

4. 518292E – 518311E 11/3/23 23-24 $817,934.17

E: Electronic Fund Transfer
TOTAL $5,947,552.08

ISSUES/ANALYSIS
See attached exhibit for detailed information on warrants exceeding $50,000.

RB:hm
Attachment

6 Council Meeting 11/21/23

CITY OF CHINO
A/P Warrant Register Over $50,000

Check
Number
Check Date Vendor Name Description Amount
768027 10/26/2023 B9 HAUPUAGE OWNER LLC REFUND OVERPAYMENT $60,267.24 768040 CT & T CONCRETE PAVING INC AS NEEDED CONCRETE MAINTENANCE $149,047.66 768054 HAZEN AND SAWYER WELLS 4 & 6 TREATMENT $106,044.31 768073 MNR CONSTRUCTION, INC. YORBA & EUCALYPTUS SEWER $921,155.15 518258 10/27/2023 CHINO VALLEY INDEPENDENT FIRE DISTRICT FIRE PROTECTION SERVICES- SEPT/OCT $2,284,524.00 518270 MYERS & SONS HIWAY SAFETY, INC. CITYWIDE SIGNAGE MAINTENANCE $94,836.41 518274 HUMANE SOCIETY OF POMONA VALLEY ANIMAL CONTROL SERVICES $53,157.50 518288 WATER FACILITIES AUTHORITY IMPORTED WATER $485,157.33 768112 11/02/2023 ALESHIRE & WYNDER LLP LEGAL SERVICES $61,738.99 768119 CHINO PRESERVE DEVELOPMENT CORP REFUND PRE-PAY CIRCULATION/DIF $242,900.40 518304 11/03/2023 INLAND EMPIRE UTILITIES AGENCY SEWAGE TREATMENT SERVICE $775,298.11

11 TOTAL $5,234,127.10

7 MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: NATALIE GONZAGA, CITY CLERK

SUBJECT
..titl e
Regular Meeting Minutes for November 7, 2023.
..end
..body

8 CHINO CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

REGULAR MEETING - CITY HALL COUNCIL CHAMBERS
13220 CENTRAL AVENUE
CHINO, CA 91710
TUESDAY, NOVEMBER 7, 2023

MINUTES
CLOSED SESSION – 5:00 PM
OPEN SESSION – 6:00 PM
_________________________________________________________________________________ The November 7, 2023, Regular Meeting of the Chino City Council / Successor Agency to the Redevelopment Agency was called to order at 5:01 pm by Mayor Eunice M. Ulloa in the Council Chambers.

ROLL CALL
PRESENT: Mayor Eunice M. Ulloa, Mayor Pro Tem Karen C. Comstock, Council Member Curtis Burton, Council Member Christopher Flores, and Council Member Marc Lucio ABSENT: NONE.

CLOSED SESSION PUBLIC COMMENTS
There were no requests to speak.

CLOSED SESSION
City Attorney Fred Galante read into the record the item listed on the Closed Session agenda.

2. CONFERENCE WITH LABOR NEGOTIATOR(S).

Pursuant to Government Code Section 54957.6:

Agency Negotiator: Geriann Kingslan, Director of Human Resources/Risk Management.

Employee Organizations: Chino City Hall Confidential Employee Association, Chino Police Professional Employees Association, San Bernardino Public Employees Association (SBPEA)/Teamsters Local Union No. 1932-Professioinal, Technical and Clerical, American Federation of State, County and Municipal Employees (AFSCME District Council 36-Local 3183), Unrepresented Management, Executive Management.

The City Council recessed to Closed Session at 5:02 p.m.

The City Council concluded Closed Session at 5:44 p.m. and reconvened the regular meeting at 6:02 p.m.
9 CHINO CITY COUNCIL
NOVEMBER 7, 2023 2

FLAG SALUTE
Council Member Flores led the assembly in reciting the Pledge of Allegiance.

CEREMONIALS
Proclamations
Purple Heart City. Proclamation to reaffirm the City of Chino's proud commitment to be a Purple Heart City along the Purple Heart Trail to honor the service and sacrifice made to preserve our freedom.

Mayor Ulloa read into the record the proclamation to reaffirm the City of Chino's proud commitment to be a Purple Heart City along the Purple Heart Trail to honor the service and sacrifice made to preserve our freedom. Michael Huizar, Commander, American Legion Post 299, Dennis Murillo, Commander, VFW Post 11546, Alex Ortiz, Purple Heart Recipient, American Legion Post 299, and David Metoyer, Purple Heart Recipient, American Legion Post 299 were present to accept the proclamation. The Mayor and Mayra Pratt, CSPR Manager, invited residents to the Veterans Day event on Saturday, November 11, 2023.

Great American Smokeout. Proclaim November 16, 2023, as the American Cancer Society's Great American Smokeout Day.

Mayor Ulloa read into the record the proclamation to recognize November 6, 2023 as the American Cancer Society's Great American Smokeout Day. Jessica Singletary, CSPR Coordinator, City of Chino, and Matthew Solano, Chino Police Officer/DARE program accepted the award.

Law Enforcement Records and Support Personnel Day. Proclaim November 14, 2023 as Law Enforcement Records and Support Personnel Day.

Mayor Ulloa read into the record the proclamation to recognize November 14, 2023, as Law Enforcement Records and Support Personnel Day. Police Chief Mensen and Chris Corbin, Police Professional Services Manager recognized the City of Chino Police Records Technicians Elda Torres, Laura Duenas, and Karla Rubio.

Presentations
Business of the Month - November 2023. Award of Business of the Month for November 2023 to Painted Dough.

Mayor Ulloa presented the Business of the Month November 2023 Award to Painted Dough.

Owner Danny Droung and his family accepted the award.

REPORT OUT OF CLOSED SESSION
City Attorney Fred Galante reported on closed session as follows:

1. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION
Pursuant to Government Code Section 54956.9 (d)(1): Harvey Allen II v. Chino Police Department, et al. (San Bernardino County Superior Court Case No. CIVDS2004426) The City Council received an update, provided direction, and no further reportable actions was taken.
10 CHINO CITY COUNCIL
NOVEMBER 7, 2023 3

2. CONFERENCE WITH LABOR NEGOTIATOR(S).

Pursuant to Government Code Section 54957.6:

Agency Negotiator: Geriann Kingslan, Director of Human Resources/Risk Management.

Employee Organizations: Chino City Hall Confidential Employee Association, Chino Police Professional Employees Association, San Bernardino Public Employees Association (SBPEA)/Teamsters Local Union No. 1932 -Professional, Technical and Clerical, American Federation of State, County and Municipal Employees (AFSCME District Council 36 -Local 3183), Unrepresented Management, Executive Management.

The City Council received a briefing, and no further reportable action was taken.

AGENDA ADDITIONS/REVISIONS
City Manager Linda Reich reported there were no agenda additions or revisions to the agenda.

INFORMATION
Economic Development Report. Receive and File the Quarterly Economic Development Report.

Mayor Ulloa announced the Economic Development Report is available in the agenda packet.

PUBLIC ANNOUNCEMENTS
Mayor Ulloa issued a reminder about the following scheduled community events:

The City of Chino’s Annual Veterans Day Ceremony will take place on Saturday, November 11 at the Community Building, 5443 B Street at 11:00 a.m. For information, contact the Carolyn Owens Community Center at 909-334-3258 or visit www.cityofchino.org/veteransday.

City Hall will be closed in observance of Veteran’s Day on Friday, November 10 and reopen on Monday, November 13 at 7:30 a.m.

Bark Around Ayala Park, presented by the City of Chino and Chino Valley YMCA, will take place on Saturday, November 18 from 9:00 a.m. to 12:00 p.m. at Ruben S. Ayala Park, 5575 Edison Avenue. For more Information, contact Healthy Chino at 909 -334-3478 or visit www.cityofchino.org/bark.

Gobbler Gloves Boxing Showcase will be held at the Neighborhood Activity Center, 5201 D Street, on Sunday, November 19. Doors Open at 12:00 p.m. Tickets will be available for purchase at the door. For more information, call 909-334-3260.

The City's Annual Tree Lighting Ceremony themed “Santa's Workshop,” will take place on Saturday, December 2 from 4:00-8:00 p.m. on the City Hall Lawn.

The City's Annual Chino Youth Christmas Parade & Fair, will take place on Saturday, December 9, at 9:00 a.m. starting on the corner of Riverside Drive and Monte Vista Avenue and end at City Hall Lawn where you can enjoy the Holiday Fair and Carnival. For more information, visit www.cityofchino.org/events.
11 CHINO CITY COUNCIL
NOVEMBER 7, 2023 4

PUBLIC COMMENTS
Pastor Dustin Harrison, Calvary Chapel Chino Valley, provided the invocation.

Melisa Compani, of Curt Hagman Fourth District Supervisor's Office, provided announcements and an update on upcoming events.

Monica Curiel, of Chino Basin Water Conservation District provided information on the Loteria Gallery event, which will take place in their garden on November 16 from 5:30 - 7:30 p.m.

Richard Montijo, UChooz Positive Youth, invited residents to the Fifth Annual Basketball Tournament event which will be held on November 11 at Don Lugo High School, at 5:30 p.m.

Mayor Ulloa acknowledged scouts from Troop 202 for attending the City Council meeting for their Communication Merit Badge requirements.

CONSENT CALENDAR

1. Warrants. Approve expenses as audited and within budget for warrants 767461 to 767655, and Electronic Fund Transfers 518041E to 518114E, totaling $5,319,524.07.

ITEM 2 WAS PULLED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.

4. Date Modification for the Third Amendment to Operating Covenant and Restrictive Covenants Affecting Interests In Real Property - Creative Bus Sales, Inc. Approve a date correction for the Third Amendment to Operating Covenant and Restrictive Covenants Affecting Interests In Real Property between City of Chino and Creative Bus Sales, Inc.

5. Contract Amendment and Vendor Cap Increase - RTS 85, Inc. Approve a professional services contract amendment with RTS 85 Inc., Chino, CA in the amount of $27,000 for carnival rides.

6. Award of Contract - Police Department Gun Range Cleaning Services. Award a professional services contract with HCI Environmental & Engineering Service, Corona, CA in the amount of $63,930 for the Police Department Gun Range Cleaning Services.

7. Vendor Cap Increase - GovernmentJobs.com dba NeoGov. Approve a Vendor Cap Increase to GovernmentJobs.com dba NeoGov for a total vendor cap of $59,000.

8. Amendment to the Salary Range of Corporal. Adopt Resolution 2023 -068 to amend the Corporal position compensation Step D and Step E previously adopted with typographical errors.

9. Measure I 5 -Year Capital Improvement Plan and Expenditure Strategy Adopt Resolution No. 2023-067, approving the Measure I Local Street Pass -Through Funds Five -Year Capital Improvement Plan and Expenditure Strategy for Fiscal Year 2023 -2024 through Fiscal Year 2027-2028.

10. 2023 Citizens’ Option for Public Safety Grant Funds Appropriation. Accept the additional funds of $122,502.02 received for the identified expenditure areas of the 2023 Citizens' Option for Public Safety (COPS) Program Grant.

11. 2024 Citizens' Option for Public Safety Grant Funds Appropriation. Accept the use of the grant funds for the identified expenditure areas of the 2024 Citizens’ Option for Public Safety (COPS) Program Grant.
12 CHINO CITY COUNCIL
NOVEMBER 7, 2023 5

12. 2024 Motorcycle Safety Education and Training Program Grant. Acceptance of the 2024 Motorcyclist Safety Education and Training Program Grant.

13. Office of Traffic Safety Selective Traffic Enforcement Program (STEP) Grant. Acceptance of the 2022 and 2023 Office of Traffic Safety Federal STEP Grant in the amount of $198,000.

14. JL Power Investments, LLC - Public Improvement Agreement PL21 -0020 (Administrative Approval). Approve the Public Improvement Agreement and securities with JL Power Investments, LLC for Administrative Approval PL21 -0020 located at 12938 Monte Vista Avenue.

15. Final Acceptance of Public Improvements - Tract Map No. 20232 (Taylor Morrison Communities). Final Acceptance of Public Improvements for Tract Map No. 20232 (Lot 11 ), Taylor Morrison Communities, generally located south of Garden Park Street between West Preserve Loop and Main Street, north of Pine Avenue.

16. Lewis - Final Tract Map No. 20380. Approve Final Tract Map No. 20380 generally located north of Legacy Park Street, west of East Preserve Loop, south of Academy Street, and east of Main Street in The Preserve Specific Plan area.

17. Initiate the Annexation to the Lighting District No. 2002 -1 (Annexation/Zone No. 88) for Site Approval PL17-0082 located at 14085 Magnolia Avenue and schedule the public hearing for January 16, 2024. Initiate the Annexation to the Lighting District No. 2002 -1 (Annexation/Zone No. 88) for Site Approval PL17 -0082 located at 14085 Magnolia Avenue and schedule the public hearing for January 16, 2024.

Motion by Council Member Burton, seconded by Mayor Pro Tem Comstock, to approve the Consent Calendar items 1 and 3 -17, as presented. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

ITEMS PULLED FROM THE CONSENT CALENDAR

2. Minutes. Regular Meeting Minutes for October 17, 2023. (Mayor Ulloa Absent-Excused) Motion by Council Member Flores, seconded by Council Member Burton, to approve Item 2. Minutes of the October 17, 2023 City Council regular meeting. The motion carried by the following vote:

AYES: COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

ABSTAIN: ULLOA
13 CHINO CITY COUNCIL
NOVEMBER 7, 2023 6

PUBLIC HEARING

18. Introduction of Ordinance No. 2023 -020 Amending Title 12 of the Chino Municipal Code.

Conduct a Public Hearing and approve the introduction of Ordinance No. 2023 -020 amending Chapters 12.02, 12.04, and 12.08 of the Chino Municipal Code.

Staff Report By: Jesus Plasencia, Assistant City Engineer RECOMMENDATION: Conduct a Public Hearing and approve the introduction of Ordinance No. 2023-020 Amending Title 12 (Streets, Sidewalks, and Other Public Places) of the Chino Municipal Code, to be read by number and title only, and waive further reading of the Ordinance.

Mayor Ulloa opened the public hearing.

Jesus Plasencia, Assistant City Engineer, provided a report on the item.

Hearing no requests to speak, Mayor Ulloa closed the public hearing.

Council Member Flores inquired regarding a free waiver for Accessory Dwelling Units (ADU) and Mr. Plasencia explained this would need to be incorporated into a future fee schedule.

Mayor Pro Tem Comstock thanked staff for their efforts to make the improvements that were addressed by Council at a past Workshop.

Council Member Lucio requested staff to explain the type of plans available to residents.

Development Services Director Warren Morelion explained the City developed multiple ADU building plans for residents free of charge. Council Member Lucio explained the ADUs are available in three size options and three different architectural designs, and noted the designs include electrical and plumbing. He thanked staff for the time and effort spent developing the ADU program for residents.

Mayor Ulloa asked if the plans are on the City's website. Mr. Morelion confirmed they are linked on the City website and encouraged residents to contact the Development Services Department to obtain additional information.

Mayor Ulloa requested City Attorney Galante to read the title of the Ordinance into the record.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHINO, CALIFORNIA, AMENDING CHAPTERS 12.02
(PROTECTION OF INTERESTS WITHIN THE RIGHT -OF-WAY),

12.04 (STREETS), AND 12.08 (CURBS, GUTTERS,

SIDEWALKS, ASPHALT CONCRETE STREET PAVEMENT
AND STREET LIGHTS) OF TITLE 12 OF THE CHINO

MUNICIPAL CODE
Motion by Mayor Pro Tem Comstock, seconded by Council Member Flores, to Conduct a Public Hearing and approve the introduction of Ordinance No. 2023 -020 Amending Title 12 (Streets, Sidewalks, and Other Public Places) of the Chino Municipal Code, to be read by number and title only, and waive further reading of the Ordinance. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.
14 CHINO CITY COUNCIL
NOVEMBER 7, 2023 7
ABSENT: NONE.

NEW BUSINESS

19. Introduction of Ordinance No. 2023 -021 - Community Services, Parks & Recreation Commission Member at Large. Approve the introduction of Ordinance No. 2023 -021 to revise the Chino Municipal Code to change the Member at Large of the Community Services, Parks & Recreation Commission to Mayor appointed.

Staff Report By: Fred Galante, City Attorney
RECOMMENDATION: 1) Approve the introduction of Ordinance No. 2023 -021, amending the Chino Municipal Code to change the Member at Large appointment of the Community Services, Parks & Recreation Commission to a Mayor appointment, to be read by number and title only, and waive further reading of the Ordinance.

City Attorney Fred Galante provided a report on the item, noting the proposed ordinance implements the Council's directive from its October 10, 2023 City Council workshop, where the Council provided direction to remove the Commission Member at Large position and make that position appointed by the Mayor with approval of the City Council, a process consistent with the Planning Commission appointments.

City Attorney Galante stated approval of this Ordinance would not have removed the appointed member serving in this position, who recently resigned. The Member at Large position would have remained on the Commission until the end of their term, and thereafter the next appointee for that seat would have been appointed through this new process, if the Council adopts the proposed ordinance.

Mayor Ulloa requested City Attorney Galante to read the title of the Ordinance into the record.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHINO, CALIFORNIA, AMENDING CHAPTER 2.38 (CHINO

COMMUNITY SERVICES, PARKS, AND RECREATION

COMMISSION) OF THE CHINO MUNICIPAL CODE
Motion by Council Member Burton, seconded by Council Member Lucio, to 1) Approve the introduction of Ordinance No. 2023 -021, amending the Chino Municipal Code to change the Member at Large appointment of the Community Services, Parks & Recreation Commission to a Mayor appointment, to be read by number and title only, and waive further reading of the Ordinance. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.
15 CHINO CITY COUNCIL
NOVEMBER 7, 2023 8

20. Approve Professional Services Agreement for Engineering and Design Services - Project No.

R2401. Award a Professional Services Agreement with Biggs Cardosa Associates, Inc., Orange, CA, for Engineering Design and Bid Support Services for Project No. R2401 – Bridge Along Euclid Avenue Between State Route 71 And Pine Avenue.

Staff Report By: Michele Hindersinn, CIP Principal Engineer RECOMMENDATION: 1) Award a Professional Services Agreement in the amount of $3,944,225.34 with Biggs Cardosa Associates, Inc., Orange, CA for Engineering Design and Bid Support Services for Project No. R2401 - Euclid Avenue Bridge Project; 2) approve design contingencies of $394,423 for a potential agreement amount not -to-exceed $4,338,648.34; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.

Michele Hindersinn, CIP Principal Engineer provided a report on the item. She indicated the existing bridge located along Euclid Avenue between State Route 71 and Pine Avenue was constructed in 2006, providing an 8-foot shoulder on each side with no dedicated pedestrian or bicycle facilities, and does not have the capacity to accommodate adequate flows during larger storm events. Ms. Hindersinn explained the proposed project will raise the profile of Euclid Avenue at Chino creek to accommodate the free flow of storm water from most storm events and will include pedestrian and bicycle facilities. She reported the City will focus on obtaining funding for the bridge construction through grant opportunities. She acknowledged the Finance Department Staff, Jizelle Sandoval, Purchasing Manager, for negotiating the contract price down in order to meet the City's budget for this project.

Mayor Ulloa inquired regarding the number of lanes in each direction. Ms. Hindersinn confirmed the number of lanes depends on the traffic study, but will include a minimum of two lanes in each direction and accommodate bicyclists and pedestrians.

Council Member Burton inquired how far south the proposed project is projected to go. Ms.

Hindersinn responded the goal of the project is to raise the profile of the street in order to address the flooding concerns and it will not go past Pomona Rincon Road, since the bridge elevation will start at that location. Council Member Burton recommended the intersection be improved, including the entrance to the dog park to improve egress to and from this intersection. He noted that it is very difficult to travel South or Westbound on Pomona Rincon Road and believes a traffic signal or another option will address the concern.

Council Member Burton noted the high cost of the design at almost 4 million, which does not include the construction cost. He thanked staff for their hard work on this project.

Mayor Ulloa noted the archery range and dog park is San Bernardino County land and requested staff to seek out County assistance and participation in the funding for the proposed improvements.

Mayor Pro Tem Comstock explained it is acceptable for the City to spend this amount of money prior to the potential relinquishment of Euclid Avenue and requested staff to explain why the process is appropriate. Hye Jin Lee, Director of Public Works, explained as long as the City does not start the construction before it potentially takes possession of Euclid Avenue, the City can begin the design phase of the project. Mayor Pro Tem Comstock noted that if the City has a shelf ready project, it will help make us more competitive in seeking grant funds in the future and thanked City staff for the work done for this project. Ms. Lee stated consultants were present this evening and are prepared to address the Council should they have any technical questions.

Amer Jakher, Special Projects Administrator, reported it is fairly common for cities to invest in 16 CHINO CITY COUNCIL
NOVEMBER 7, 2023 9
highways and bridges owned by Caltrans since City residents will benefit from the improvements. He stated this request is not unique and explained that whether or not Euclid was relinquished to the City, improvements are a good investment to be considered for grant funding.

Motion by Council Member Burton, seconded by Council Member Flores, to 1) Award a Professional Services Agreement in the amount of $3,944,225.34 with Biggs Cardosa Associates, Inc., Orange, CA for Engineering Design and Bid Support Services for Project No. R2401 - Euclid Avenue Bridge Project; 2) approve design contingencies of $394,423 for a potential agreement amount not-to-exceed $4,338,648.34; and 3) authorize the City Manager to execute all necessary documents on behalf of the City. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

21. Approve a Professional Services Agreement for Section 408 permit acquisition and other related regulatory permitting services associated with the Pine Ave Stage 3 Project ST203.

Approve a Professional Services Agreement for Section 408 permit acquisition and other related regulatory permitting services associated with the Pine Ave Stage 3 Project ST203.

Staff Report By: Jesus Plasencia, Assistant City Engineer RECOMMENDATION: 1) Appropriate $187,797 to the Transportation Fund with a corresponding year -end transfer amount from The Preserve Circulation (Streets, Signals, & Bridges) Development Impact Fee Fund 260; 2) increase the project budget for Pine Avenue Improvements (Hellman to Euclid Avenues) ST203 by $187,797 for a new project budget of $6,568,113.00; 3) approve a Professional Services Agreement to Ruth Villalobos & Associates, Inc., Ontario, CA for Section 408 permit acquisition and other related regulatory permitting services associated with the Pine Avenue Stage 3 project for an amount not to exceed $187,797; and 4) authorize the City Manager to execute the necessary documents on behalf of the City, and to approve up to two (2) one-year contract extensions.

Jesus Plasencia, Assistant City Engineer, provided a report on the item.

Motion by Mayor Pro Tem Comstock, seconded by Council Member Lucio, to 1) Appropriate $187,797 to the Transportation Fund with a corresponding year-end transfer amount from The Preserve Circulation (Streets, Signals, & Bridges) Development Impact Fee Fund 260; 2) increase the project budget for Pine Avenue Improvements (Hellman to Euclid Avenues) ST203 by $187,797 for a new project budget of $6,568,113.00; 3) approve a Professional Services Agreement to Ruth Villalobos & Associates, Inc., Ontario, CA for Section 408 permit acquisition and other related regulatory permitting services associated with the Pine Avenue Stage 3 project for an amount not to exceed $187,797; and 4) authorize the City Manager to execute the necessary documents on behalf of the City, and to approve up to two (2) one -year contract extensions. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.
17 CHINO CITY COUNCIL
NOVEMBER 7, 2023 10

22. Approve the award of contract, purchase order, and appropriation for Roof Restoration Project NC242 and IB249. Award of Contract, Purchase Order Approval, and Appropriation - Roof Restoration and Replacement.

Staff Report By: Silvia Avalos, Director of Community Services, Parks & Recreation RECOMMENDATION: 1) Establish a non -capital project number for tracking purposes for the City Hall South Roof Restoration project NC242; 2) appropriate $181,370.04 to the Building Management Fund with a year-end transfer from the General Fund reserves for the new project NC242; 3) award a construction contract in the amount of $149,590 to R&R Roofing & Waterproofing, Inc., Lake Elsinore, CA for the City Hall South (NC242) Roof Restoration project and the 7th Street Theater (IB249) Roof Replacement project; 4) authorize expenditures of up to $22,438.50 for construction project contingencies, for a not -to-exceed potential contract amount of $172,028.50; 5) approve a purchase order in the amount of $87,199.04 to The Garland Company, Inc., Cleveland, OH for the purchase of roofing materials for the City Hall South Roof Restoration Project; and 6) authorize the City Manager to execute all necessary documents on behalf of the City.

Silvia Avalos, Director of Community Services, Parks & Recreation provided a report on the item.

Motion by Council Member Lucio, seconded by Council Member Burton, to 1) Establish a non -capital project number for tracking purposes for the City Hall South Roof Restoration project NC242; 2) appropriate $181,370.04 to the Building Management Fund with a year -end transfer from the General Fund reserves for the new project NC242; 3) award a construction contract in the amount of $149,590 to R&R Roofing & Waterproofing, Inc., Lake Elsinore, CA for the City Hall South (NC242) Roof Restoration project and the 7th Street Theater (IB249) Roof Replacement project; 4) authorize expenditures of up to $22,438.50 for construction project contingencies, for a not-to-exceed potential contract amount of $172,028.50; 5) approve a purchase order in the amount of $87,199.04 to The Garland Company, Inc., Cleveland, OH for the purchase of roofing materials for the City Hall South Roof Restoration Project; and 6) authorize the City Manager to execute all necessary documents on behalf of the City. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

MAYOR AND COUNCIL REPORTS
Mayor Ulloa
Mayor Ulloa reported on the following meetings and events attended since the last meeting that included the Omnitrans meeting; Chino Valley Fire Department open house; Chino Valley Fire District State of the District; Chino Desalter Authority Board of Director Finance Authority meeting; Southern California Water Coalition Executive Committee Zoom meeting; Chino Police Department open house; Chaplain Sheldon Boyd's retirement celebration; Halloween Spooktacular event; Omnitrans Board of Director's meeting; San Bernardino County Transportation Authority Board meeting; Southern California Water Coalition Board of Directors meeting and Annual Awards dinner; Senior Center November Birthday celebration; Financial Consultant meeting to discuss the City's budgetary condition; Meeting with a Construction company regarding the building of local hotel; and tonight's Closed Session. 18 CHINO CITY COUNCIL
NOVEMBER 7, 2023 11
Mayor Pro Tem Comstock
Mayor Pro Tem Comstock reported on the following meetings and events attended since the last meeting that included City Manager meeting; Community Services, Parks, and Recreation Commission meeting; Chino Valley Fire District State of the District; City Manager meeting; Chaplain Sheldon Boyd's retirement celebration; Halloween Spooktacular; Inland Empire Economic Partnership Rurning Red Tape into Red Carpet award ceremony; City Manager meeting; and tonight's Closed Session.

Mayor Pro Tem Comstock encouraged residents to participation in the Uchooz basketball game event and congratulated the Painted Dough for being honored the Business of the Month for November.

Council Member Burton
Council Member Burton reported on meetings and events attended since the last meeting that included the Planning Commission meeting; Chino Valley Fire District open house; City Manager meeting; Meeting with a citizen regarding a community issue; Community Services, Parks & Recreation Commission meeting; State of the Fire District; Chino Valley Business Expo; Chino Police Department open house; Meeting with a citizen regarding a community concern; Chino Valley Chamber of Commerce meeting; Chaplain Sheldon Boyd retirement celebration; Halloween Spooktacular; Chino Valley Chamber of Commerce Leadership Collaborative meeting; City Manager Weekly meeting; Veterans Day celebration at Howard Cattle Elementary; and tonight's Closed Session.

23. Community Support Fund - Council Member Burton. Approve community support fund contribution to the Kiwanis.

Staff Report By: Council Member Burton
RECOMMENDATION: Approve community support fund contribution of $125 to Chino Kiwanis Club.

Council Member Burton presented a report on the item.

Motion by Mayor Ulloa, seconded by Mayor Pro Tem Comstock, to Approve community support fund contribution of $125 to Chino Kiwanis Club. The motion carried by the following vote:

AYES: ULLOA, COMSTOCK, BURTON, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

Council Member Flores
Council Member Flores reported on the following meetings and events attended since the last meeting that included the Softball Tournament with Chino Police Department for the annual Special Olympics fundraiser event; served as a Science Fair judge at Sycamore Academy; State of the Fire District; Boxing Foundation Board meeting, attended a boxing event that featured Daniel Cruz in professional fight match and that he won; Chaplain Sheldon Boyd retirement celebration; Halloween Spooktacular; Southern California Water Coalition annual awards dinner and recognized Steve Elie for being awarded the Kathy Cole Award; and attended the Oasis Optometry one year anniversary.
19 CHINO CITY COUNCIL
NOVEMBER 7, 2023 12
Council Member Lucio
Council Member Lucio reported on the following meetings and events attended since the last meeting that included a City Manager meeting; Chino Valley Fire District State of the District; City Manager meeting; Halloween Spooktacular; Turning Red Tape into Red Carpet Awards, and encouraged staff to apply for more of these awards to help showcase the City of Chino; Inland Empire Economic Partnership Regional Leadership Academy where he visited The Gas Company located in Downey and saw technology they have in place, discussed electric and natural gas vehicles; thanked all Veterans for their service; reported the LA County Sheriff lost four employees to suicide within a 24 hour period and cautioned all to keep an eye on coworkers and family members; he congratulated his son who committed to attend Cal Poly San Luis Obispo.

City Manager's Report
City Manager Reich thanked the Community Services, Parks and Recreation Department for their dedicated work on the Halloween Spooktacular event and extended a special thanks to the Chino Police Department, Chino Valley Fire District, and the Chino Public Works Department for their support of the event; thanked all employees who are Veterans; announced the Prado Park Country Camp Out concert is this weekend; and thanked the Public Works crew for doing a fantastic work in helping maintain the road condition in Chino.

City Attorney's Report
City Attorney Galante concurred with the Council Member's comments regarding the Chino Valley Fire District State of the District was exceptional; and reported he will facilitate the Planning 101 training session on Tuesday, November 14, 2023.

Police Chief's Report
Police Chief Mensen discussed the recently approved grants that will assist with public outreach and education; reported that crime continues to increase in California and the Chino Police Department continues to be proactive to address the increased local retail business theft; noted that he will provide an overview in January on crime statistics; and thanked all Veterans for their service.

Council Member Burton commented on retail business theft and asked if the City of Chino has a dedicated team to help address this specific type of crime. Chief Mensen confirmed the Police Department does not currently have the resources to dedicate a team. Council Member Burton asked Chief Mensen to report back information on the cost to make this task force possible.

Mayor Ulloa shared concerns about scam calls and asked for suggestions to address these types of scams. Police Chief Mensen advised residents not to send money, but instead to call and report such calls to the Chino Police Department.

Council Member Burton and Mayor Ulloa commented on the Country Campout event at El Prado Regional Park and asked Chief Mensen to describe the Chino Police Department role in this event. Chief Mensen responded with information on staffing the event and traffic plans.

Council Member Lucio commented on the recent retail theft crime increase and noted the Chino Police Department always takes reports on retail theft crimes and show businesses the City of Chino cares.

Fire Chief's Report
20 CHINO CITY COUNCIL
NOVEMBER 7, 2023 13
Fire Chief Dave Williams reported the Country Campout at Prado Regional Park will also have additional Emergency Medical Services (EMS) Division personnel to help provide emergency services if needed; reported the Chino Valley Fire District open house was well attended and approximately over 2,000 participants were present; thanked all who attended the Chino Valley Fire District State of the District and thanked Fire District Staff Member Rita Pro for her dedication to make this event a success; encouraged attendance at the San Bernardino County Board of Supervisor's meeting regarding the ambulance program; announced the upcoming Make a Child Smile annual event; honored all Veterans; and announced the Chino Valley Fire District's efforts to create a program for Veterans who want to be in the fire service.

ADJOURN
The meeting adjourned at 8:05 p.m. The next Regular Meeting of the City Council will be held on Tuesday, November 21, 2023 at 6:00 p.m. (Closed Session no earlier than 4:00 p.m., if necessary) in these Council Chambers.

APPROVED AND ADOPTED THIS 21ST DAY OF NOVEMBER 2023.
________________________________
EUNICE M. ULLOA, MAYOR
________________________________

NATALIE GONZAGA, CITY CLERK
**************************************************
(These minutes are not official until signed.)
21 MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: NATALIE GONZAGA, CITY CLERK

SUBJECT
..titl e
Elected City Officials’ Report Regarding Travel, Training, and Meetings.

..end

RECOMMENDATION
Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.

..body

FISCAL IMPACT
Sufficient funding is available in the adopted Fiscal Year 2023-24 Operating Budget.

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:

 Superior Customer Service
 Responsible Long-Range Planning
 Exemplary Leadership
 Public Service Excellence through Internal and External Partnerships

Revenue:

Expenditure: 1002000-43320
Transfer In: Transfer Out:
22 CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: ELECTED CITY OFFICIALS’ REPORT REGARDING TRAVEL, TRAINING, AND MEETINGS.

PAGE: 2

BACKGROUND
In accordance with Government Code Sections 53232.2 and 53232.3, implementing Assembly Bill (AB) 1234 on January 1, 2006, the City adopted Resolution No. 2005 -093 establishing a Business-Related Expense Policy. On December 6, 2016, the City approved Resolution No. 2016-075 adopting the latest revisions to this policy. In addition to requiring local agenci es to adopt a business-related expense policy, AB 1234 requires that Elected Officials provide a brief report on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.

ISSUES/ANALYSIS
In response to AB 1234, a report regarding Elected City Officials’ Travel, Training, and Meetings (Exhibit A) was created and is placed on the City Council Agenda Consent Calendar, as needed. The documents that pertain to the items listed on Exhibit A are available for publi c inspection at the City Clerk’s office located in City Hall at 13220 Central Avenue, Chino, CA.

Attachment – Exhibit A

23 Event Date Meeting Purpose and
Subject Matter
Location

City Official Attendees

None.

24 MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER

SUBJECT
..titl e
City Council Regular Meeting Cancellation.
..end

RECOMMENDATION
Authorize staff to cancel the January 2, 2024 City Council Regular Meeting. ..body

FISCAL IMPACT
No fiscal impact.

Revenue: Click or tap here to enter text.

Expenditure:

Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 25 CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: CITY COUNCIL REGULAR MEETING CANCELLATION.

PAGE: 2

BACKGROUND
From time to time, the City Council has voted to cancel regular ly scheduled meetings due to conflicts with events or holidays. The Tuesday, January 2, 2024 regular City Council meeting falls on the day following the January 1, 2024 New Years Day holiday.

ISSUES/ANALYSIS
City staff is recommending cancellation of this meeting due to the proximity to the New Years Day holiday. With the December 19, 2023 and January 16, 2024 regular meetings scheduled, there is no significant gap in meetings, allowing for the continuation of City business.

Should the City Council approve the cancellation of the Tuesday, January 2, 2024 meeting, the next regular meeting of the City Council would be held on January 16, 2024.

26 MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, COMMUNITY SERVICES DIRECTOR

SUBJECT
..titl e
Adoption of Ordinance No. 2023-021.
..end

RECOMMENDATION
Approve the adoption of Ordinance No. 2023 -021 on second reading, amending Chapters 2.38 of the Chino Municipal Code.
..body

FISCAL IMPACT
There is no fiscal impact.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above will 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:
 Superior Customer Service
 Responsible Long-Range Planning

Revenue:

Expenditure:

Transfer In: Transfer Out:
27 CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: ADOPTION OF ORDINANCE NO. 2023-021.

PAGE: 2

BACKGROUND
This matter was introduced on first reading by the Council at their November 7, 2023 meeting.

The ordinance revises Chapter 2.38 of the Chino Municipal Code to remove the member at large member of the Community Services, Parks, and Recreation Commission; making all seven members of the Commission mayor appointed with the approval of the City Council.

Once adopted on second reading, the ordinance will go into effect thirty (30) days thereafter.

ISSUES/ANALYSIS
ORDINANCE NO. 2023-021:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING CHAPTER 2.38 (CHINO COMMUNITY SERVICES, PARKS, AND RECREATION

COMMISSION) OF THE CHINO MUNICIPAL CODE
Attachment – Ordinance 2023-021

28 ORDINANCE NO. 2023-021

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHINO, CALIFORNIA, AMENDING CHAPTER 2.38 (CHINO

COMMUNITY SERVICES , PARKS, AND RECREATION

COMMISSION) OF THE CHINO MUNICIPAL CODE
WHEREAS, the City of Chino has adopted an ordinance establishing and regulating the duties and responsibilities of the Chino Community Services, Parks, and Recreation Commission and the members’ terms, codified in Chapter 2.38 of the Chino Municipal Code; WHEREAS, the City desires to revise Chapter 2.38 of the Chino Municipal Code to remove the member at large member of the Community Services, Parks, and Recreation Commission; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The City Council finds that the above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Section 2.38.030 (Membership – Appointment and term of office) of the Chino Municipal Code is hereby revised as follows (deletions in strikethrough):

A. The membership of the Community Services, Parks, and Recreation commission, as appointed by the mayor of the City of Chino, shall consist of seven members representing a broad interest in recreation, human services, park planning, cultural arts, youth, and senior citizens. Six Seven members shall be appointed by the mayor of the City of Chino with the appr oval of the city council . and one member shall be appointed by the six other commissioners (member at large). The appointment of the member at large is to be ratified by the city council.

B. In the event that a member appointed by the mayor of the City o f Chino is required to take a temporary leave of absence, the mayor may appoint a temporary replacement with the approval of the city council. In the event that a member resigns or dies before the end of his or her term, or for any reason is unable to complete the term, the mayor may appoint a member to fill the vacant position with the approval of the city council.

C. In the event that a member appointed by the six other commissioners (member at large) is required to take a temporary leave of absence, the other six members may appoint a temporary replacement. In the event that the member at large resigns or dies before the end of his or her term, or for any reason is unable to complete the term, the other six members may appoint a member to fill the vacant position. The appointment of the member at large is to be ratified by the city council.

D. All members of the Community Services, P arks, and Recreation commission appointed by the mayor of the City of Chino, as well as the at-large member, shall be residents of the City of Chino at the time of their appointment and throughout their terms of office.
29 Ordinance No. 2023-021

Page 2 of 3 ends

SECTION 3. Section 2.38.040 (Terms of office) of the Chino Municipal Code is hereby revised as follows (deletions in strikethrough):

There shall be seven Community Services, Parks, and Recreation commissioners who shall be appointed for four -year, staggered terms. Effective July 1, 2023, th e terms shall be staggered as follows:

Three terms ending June 30, 2027, (three city appointees) One term ending June 30, 2024, (one city appointee)
Three terms ending June 30, 2025 (three two city appointees, one member at large appointed by majority vote of the six other commissioners).

SECTION 4. Section 2.38.050 (Continuation in office) of the Chino Municipal Code is hereby revised as follows (deletions in strikethrough):

Members of the commission shall continue in office until their successors are appointed. Commissioners can be replaced if a member misses three meetings in one year, with the year being defined as July 1st to June 30th, without adequate excuse. Any commissioner can be removed, without cause, by the city council. City council can remove at large appointee, without cause.

SECTION 5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any person or circumstances, is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this or dinance are declared to be severable. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsec tions, sentences, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.

SECTION 6. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its second reading and adoption.

SECTION 7. Certification. The City Clerk of the City of Chino shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the Chino Champion, a newspaper of general circulation, within said City in accordance with the provisions of the Government Code.

PASSED, APPROVED, AND ADOPTED THIS 21ST DAY OF NOVEMBER 2023.

By:

EUNICE M. ULLOA, MAYOR

ATTEST:

By:

NATALIE GONZAGA, CITY CLERK
30 Ordinance No. 2023-021

Page 3 of 3 ends

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §

CITY OF CHINO )

I, Natalie Gonzaga, City Clerk of the City of Chino do hereby certify that the foregoing Ordinance of the City of Chino was duly adopted by said City Council at a regular meeting held on the 21st day of November 2023 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

By:

NATALIE GONZAGA, CITY CLERK

31 MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Adoption of Ordinance No. 2023-020.
..end

RECOMMENDATION
Approve the adoption of Ordinance No. 2023 -020 on second reading, amending Chapters

12.02, 12.04, and 12.08 of Title 12 of the Chino Municipal Code. ..body

FISCAL IMPACT
There is no fiscal impact.

Revenue:

Expenditure:

Transfer In: Transfer Out:
32 CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: ADOPTION OF ORDINANCE NO. 2023-020.

PAGE: 2

BACKGROUND
This matter was introduced on first reading by the Council at their November 7, 2023 meeting.

The ordinance clarifies the City’s current practices and procedures, as well as addresses issues staff has encountered in the past with the implementation of these chapters. T he updates provide superior customer service by implementing more efficient and effective requirements pertaining to the City right -of-way, as well as promote responsible long-range planning through the implementation of requirements that help ensure orderly development continues throughout the City in accordance with the General Plan.

Once adopted on second reading, the ordinance will go into effect thirty (30) days thereafter.

ISSUES/ANALYSIS
ORDINANCE NO. 2023-020:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING CHAPTERS 12.02 (PROTECTION OF INTERESTS WITHIN THE RIGHT -OF- WAY), 12.04 (STREETS), AND 12.08 (CURBS, GUTTERS, SIDEWALKS, ASPHALT CONCRETE STREET PAVEMENT AND STREET LIGHTS) OF TITLE 12 OF THE CHINO MUNICIPAL CODE.

Attachment – Ordinance 2023-020

33 01225.0005/901810.2
ORDINANCE NO. 2023-020

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHINO, CALIFORNIA, AMENDING CHAPTERS 12.02
(PROTECTION OF INTERESTS WITHIN THE RIGHT -OF-WAY),

12.04 (STREETS), AND 12.08 (CURBS, GUTTERS,

SIDEWALKS, ASPHALT CONCRETE STREET PAVEMENT AND
STREET LIGHTS) OF TITLE 1 2 OF THE CHINO MUNICIPAL
CODE

WHEREAS, the City reviews and updates the provisions of Title 12, Streets, Sidewalks and Other Public Places, from time to ti me to ensure the regulations therein are consistent with current standards and suited to current conditions and circumstances in the City of Chino.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HEREBY DOES ORDAIN AS FOLLOWS:

Section 1. Chapter 12.02 of the Chino Municipal Code is hereby replaced in its entirety with the following:

Chapter 12.02 - PROTECTION OF INTERESTS WITHIN THE PUBLIC RIGHT-OF-WAY Sections:
 12.02.010 - Legislative purposes.

A. The primary purpose of this chapter is to protect the life and property of the public, as well as the interests, rights and property of the city, from the impacts of encroachments within the public right -of-way. The secondary purpose of this chapter is to ensure that encroachments are conducted in accordance with the provisions of this chapter, the code and all other applicable laws and regulations, and to ensure that those who encroach in the public right -of-way are required to mitigate all adverse impacts of their activities on life, interests, rights and property, including those belonging to the city.

B. In order to effectuate the purposes of this chapter, the director is vested with the authority and discretion to implement the provisions of this chapter, the code and all other applicable laws and regulations.
 12.02.020 - Definitions.

The following words or terms shall have the meanings described below:

A. "City" means the city of Chino and its employees, officers, officials, and contractors.

B. "Code" means the Chino Municipal Code.

C. "Director" means the director of public works or development services or their designee.

D. "Emergency repairs" means those repairs that are necessary when a vital infrastructure service has been damaged, compromised, or has failed resul ting in a loss of service or constituting a hazard to public safety. 34 Ordinance No. 2023-020

Page 2 of 13 ends

01225.0005/901810.2
E. “Encroach” means to engage in or cause an encroachment.

F. "Encroachment” means any of the following activities conducted within the public right-of-way or on private property in a way that impacts the right-of-way:

1. Construction, demolition, alteration, excavation, grading, resurfacing, repair, or other related work.

2. Installation, removal, or modification of any structure or improvement.

3. The placement of any obstruction or traffic control device, whether permanent or temporary.
“Encroachment” does not include routine maintenance activities along property frontage, such as the maintenance of private landscaping.

G. "Encroachment permit" means a permit to encroach issued by the director pursuant to this chapter.

H. “Person” means any person or entity.

I. "Public right-of-way" means any and all property, or any other right or interest in property, that the city owns, possesses, controls or regulates, which is used or maintained, or can be used or maintained, to carry, convey, transmit or transport any commodity, electricity, gas, information, oil, signal, storm water, wastewater, water or any other thing, service or substance. The term "public right-of-way" also means any condition, grade, facility, im provement or structure of any kind including, without limitation, any cable, camera, culvert, curb, drain, gutter, light, median, planting, pole, pipe, pump, sewer line, sidewalk, sign, signal, street, storm drain, valve, water line, well, or wire located within any land owned, possessed, controlled or regulated by the city.

J. "Stop work order" means an order issued by the director demanding immediate cessation of an encroachment.

K. "Within" means above, from, in, of, on, over, through, to and under.  12.02.030 - Encroachment permit.

A. No person shall encroach within the public right -of-way without first obtaining an encroachment permit or another permit allowing the encroachment under this Code.

B. The director is authorized and instructed to impose any and all condi tions on each encroachment permit necessary to effectuate the purposes of this chapter, as stated in Section 12.02.010, and to assure compliance with the provisions of the code and all other applicable laws and regulations. The director may promulgate guidelines as necessary to effectuate and interpret this chapter.

C. Any person who fails to obtain an encroachment permit when required, or to comply with the terms and conditions of such permit, shall immediately cease any encroachment activity regardless of wh ether a stop work order has been issued by the city.
 12.02.040 - Application for encroachment permit.

A. All persons seeking an encroachment permit shall submit an application for an encroachment permit to the director.

B. The application required for an encroachment permit shall require submittal of all information reasonably necessary for the issuance of an encroachment permit as determined by the director, including, without limitation, the following:

1. The name, address and telephone number of the applic ant; 35 Ordinance No. 2023-020

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2. A description of the nature, location and duration of the proposed encroachment;

3. The plans and specifications for the proposed encroachment, which shall require the director's approval prior to the issuance of an encroachment permit;

4. The name, address and phone number of the on -site representative of applicant who is authorized to act on behalf of the applicant to accept a "demand for compliance" and "stop work order;" and

5. A letter of authorization from the applicant if the permit is being obtained on behalf of another person.

C. The director may also require an applicant to provide the following as part of the application if the director determines that such information is necessary in order to properly assess the risks of a proposed encroachment or to ad equately mitigate the impacts and effects of a proposed encroachment:

1. Studies, paid for by the applicant, demonstrating the effects, damages, and risks to life and property of the proposed encroachment; and

2. Proposals, including agreements, to mitigate the effects, damages, and risks to life and property of the proposed encroachment.

D. The application shall contain the following statement that shall be read and signed by the person requesting an encroachment permit:
"I _______, he reby apply for an Encroachment permit pursuant to the provisions of Chapter 12.02 of the Chino Municipal Code. I have received and read Chapter

12.02 of the Chino Municipal Code and I understand the requirements imposed upon me or my company and my agents, employees, con tractors and suppliers. I understand that any violation of Chapter 12.02 may result in the issuance of a "Demand For Compliance" requi ring me to comply with Chapter 12.02 and the directives of the Director of Public Works or Development Services within 24 hours unless I am able to satisfy said Director that such compliance is not required. I further understand that any violation of Chapter 12.02 may result in the issuance of a "Stop Work Order" requiring my project to be halted for an unspecified period of time and the suspension or revocation of any other permit issued to me by the City of Chino for this project. I further understand that any violat ion of Chapter 12.02 or the terms or conditions of the encroachment permit constitutes a misdemeanor and a public nuisance subject to all penalties and remedies under Chapters 1.12 and 1.15 of the Chino Municipal Code, in addition to potential suspension or revocation of the encroachment permit. Finally, I understand and agree to compensate the City of Chino and any other party for all c osts to restore any and all damage to the public right -of-way, other city property, and other life or property, and for all remediation costs of all environmental damage caused, directly or indirectly, by my acts or omissions as required by Chapter 12.02 of the Chino Municipal Code. DATED:________ By: ___________"
 12.02.050 - Fees, insurance and security.

A. Each applicant for an encroachment permit shall pay a fee, as determined by resolution of the city council, to reimburse the city for the cost of all staff time and administrative expenses necessary to process the application for an encroachment permit, including such costs and administrative expenses for plan checking, engineering, inspection and any costs of necessary construction by city forces or contractors.
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B. Each applicant seeking an encroachment permit shall furnish evidence of insurance in an amount determined by the director to be sufficient to protect life and property and city property including the public right -of-way from any damage or risk of harm potentially resulting from the encroachment.

C. Each person or entity shall deposit security with the city, as a condition of issuance of an encroachment permit, in an amount determined by the director to be sufficient to afford security for life and property, to repair or restore any property including the public right -of-way, and to assure compliance wit h all applicable laws and regulations, except that the director may exempt any public utility company regulated by the public utilities commission or municipal corporation. Any such security may be in the form of a cash deposit, bond or letter of credit. S uch security may be utilized by the city to repair or restore any damage to property including the public right-of-way to a like or a better condition than existed prior to the issuance of such encroachment permit, or conform to the requirements of any con dition of the encroachment permit.

D. The director may require an applicant to pay damages to the city or other person or entity who sustains or will sustain damage due to the applicant's encroachment as a condition of the issuance of an encroachment permit.  12.02.060 - Action of director.

A. After submission of a completed application for an encroachment permit, the director shall take one of the following actions:

1. Deny the encroachment permit, in whole or in part; or

2. Issue the encroachment permit with condition s necessary to protect life and property, and to guarantee compliance with this chapter, the code and all other applicable laws and regulations for the duration of the encroachment.

B. Each encroachment permit issued to an applicant by the director shall define and limit the nature, scope and duration of the encroachment.

C. Unless otherwise specified, encroachment permits are valid for 90 days from the date the permit is issued. Every permittee shall complete the work within the time required by the permit. The director may grant a time extension at his or her discretion. The permittee shall submit an application for an extension and pay an administrative fee prior to the expiration of the encroachment permit.  12.02.070 - Duty to protect life and property.

A. All persons encroaching within the public right -of-way shall protect all life and property from any damage or any risk of harm that may be caused by such encroachment. This duty shall continue for the full duration of the encroachment.

B. All persons encroaching within the public right -of-way who, directly or indirectly, cause any damage, interference, or obstruction to city or private property shall restore such property to a like or better condition that existed prior to the damage, interference or obstruction, to the satisfaction of the director.

C. Any person who fails to restore the public right -of-way, or such interests, rights or property belonging to the city or private property to the satisfaction of the director shall be liable for all costs to restore same and for reasonable attorney's fees and expert witness fees in the event litigation or other legal action is required to collect such costs.
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D. All persons shall comply with the requirements of this code and all applicable state and federal laws and regulations prior to and following the issuance of an encroachment permit.
 12.02.080 – Pavement cutting.

Pavement cutting and excavation within the city shall be prohibited as follows:

A. After any street has been constructed, reconstructed, or paved by th e city, under a city contract, or under a permit, no pavement cutting or excavation will be permitted for a period of five years after the city determines the construction has been completed. This will include asphalt overlays, pavement reconstruction/reha bilitation, and new pavement construction. After any street has been slurry sealed by the city, under a city contract, or under a permit, no pavement cutting or excavation will be permitted for a period of three years after the city determines the construc tion has been completed.

B. The director or city engineer may grant exemptions to this prohibition in order to facilitate new development on adjacent properties, provide for emergency repairs to subsurface facilities, provide for underground service conne ctions to adjacent properties, or allow the upgrading of underground utility facilities.

C. When an encroachment permit for pavement cutting is granted by the director or city engineer, all restoration and repair work shall be completed in accordance with the city’s Street/Alley Resurfacing Policy for streets/alleys under moratorium. This policy may be adopted and updated by the director from time to time as deemed necessary by the director.
 12.02.090 – Road closures.

As a condition of each encroachment p ermit, the permittee shall comply with and be bound by the city’s Road Closure Permit Policy.
 12.02.100 - Inquiry identification number.

Prior to the start of the work authorized by the encroachment permit, each applicant shall obtain an Inquiry Identification Number from the Regional Notification Center for Underground Center Alert of Southern California, pursuant to the Government Code sections 4216 through 4217.
 12.02.110 - Demand for compliance.

Upon any violation of the provisions of this cha pter or the terms and conditions of an encroachment permit, the director may serve a "demand for compliance" upon the applicant to whom an encroachment permit has been issued, or its on -site representative, demanding compliance with such requirements withi n twenty-four hours after personal service of such demand for compliance or seventy -two hours after the date of mailing by the city. The demand for compliance shall include the following information:

A. The name of the applicant;
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B. The encroachment permit numb er;
C. The nature and location of each violation;
D. The time and place for applicant to meet and confer with the director prior to the time and date set for compliance, for the purpose of determining whether such compliance is necessary.
 12.02.120 - Stop work order.

A. In the event that the applicant to whom the encroachment permit has been issued fails to comply with the "demand for compliance" or to meet and confer with the director to secure a determination that such compliance is not necessary prior to the time set for compliance in the demand for compliance, the director may issue a "stop work order" to the applicant prohibiting any further encroachment activity that fails to comply with the provisions of this chapter or the terms and conditions of the encroachment permit, or reasonably appears to have caused any damage or obstruction within the public right -of-way or private property, or has imperiled or is reasonably likely to imperil life, safety or property, or imperils compliance with any other applicable l aw or regulation, including this code. Further, the director may suspend or revoke the encroachment permit pursuant to the provisions of this chapter, and the city building official may suspend or revoke any building permit for the same activity for which an encroachment permit has been issued. In such event, the city building official shall follow the procedures provided by the City adopted California Building Code.

B. The director may also issue a stop work order to any other person for any violation of thi s chapter with or without a “demand for compliance” having been issued.

C. Stop work orders will be posted at the work site and, if reasonably possible, will be personally served on the applicant for the encroachment permit or another person who appears to be in charge of the work; provided, that failure to personally serve the stop work order will not invalidate the stop work order.

D. Upon posting of a stop work order, all activity related to the encroachment that is subject to the stop work order shall immedia tely cease. The effective date of the stop work order shall be the date it is posted by the city.

E. Causing, allowing or permitting activity in violation of a stop work order shall constitute a violation of this code.

F. No person shall remove or deface a stop work order, or allow or cause such to occur.

G. A stop work order shall be a cumulative remedy, and may be used in lieu of, in conjunction with, or in addition to any other remedy provided by this code, including permit suspension or revocation proceedings pu rsuant to this chapter.  12.02.130 – Construction of improvements within the right -of-way or city easements.

A. Permanent structures shall not be constructed within a city utility easement, or in a manner that otherwise interferes with city access to a city utility easement, unless approved in writing by the director or city engineer. Any structure constructed in violation of this section shall constitute a nuisance and may be abated in accordance with the provisions of chapter 8.50 of this code or as other wise provided by law.
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B. The director, in his or her sole discretion, may permit the owner of any property to construct a fence or wall or other improvement within portions of the right -of-way adjacent to the property where future street widening or other frontage improvements are anticipated but are not yet required by the city. Prior to the construction of such private improvements in the right -of-way, the owner of the adjacent property shall enter into an agreement with the city, in a form approved by the city attorney, which shall be recorded against the private property and run with the land and be binding on future owners, and which shall state the conditions under which the improvement shall be removed, who is responsible for the removal and the cost of removal, and the required timing of the removal. If the property owner is required to remove the improvement but does not do so, the city may remove the improvement and assess the costs of such removal as a lien against the property.
 12.02.140 – Permit suspension and revocation.

A. Determination by the director to suspend or revoke a permit. Whenever the director determines that work performed under a permit issued pursuant to this chapter has been undertaken or is being carried out in a manner that vio lates the terms or conditions of the permit, violates any term of an agreement with the city, violates this chapter or this code, is in violation of a stop work order issued by the city, or that the permit was issued based on an application or plans and specifications that contained a material misrepresentation of fact, the director may suspend or revoke the permit pursuant to this section.

B. Notice of order suspending or revoking a permit. Upon determining to order the suspension or revocation of a permit issued under this chapter, the director shall cause written notice of such order to be served on the permittee in the manner provided in this section. In addition to setting forth the order of the director suspending or revoking the permit, such notice shall contain a brief description of the reasons why the permit is being suspended or revoked, if applicable, the duration of the suspension and conditions to reinstatement, and shall contain a statement that the permittee has the right to appeal the order i n the manner provided by this chapter.

C. Method of service on a permittee. Any notice required by this chapter to be served on a person applying for or issued a permit under this chapter, including but not limited to a stop work order, shall be served by personal delivery or first class mail sent to the address set forth on the p ermit application, unless the person has provided the director with written notice of a change of address. Service shall be deemed completed on the date it is properly addressed and deposited in the mail, or personally delivered.

D. Method of service on ot her persons. Any notice required by this chapter to be served on a person who has not applied for or obtained a permit under this chapter, including but not limited to a stop work order, shall be served by personal delivery or first class mail sent to the person’s last known address. Service shall be deemed completed on the date it is properly addressed and deposited in the mail, or personally delivered.

E. Effect of order suspending or revoking a permit. A permittee served with a notice of the order of the director suspending or revoking a permit issued under this 40 Ordinance No. 2023-020

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chapter shall promptly terminate the encroachment or other work authorized by the permit, and restore the public right -of-way or other city property or easement in which such encroachment or other work was undertaken or carried out to the same condition as it was in prior to commencement of the encroachment or other work, or such modified condition as may be approved by the director.  12.02.150 – Appeals
Any recipient of a stop work order, or suspension or revocation of an encroachment permit, may appeal the order, suspension, or revocation by filing a written appeal with the city clerk within ten calendar days of the date the order, or notice of suspension or revocation, is served. The appeal must show cause why the stop work order should not have been issued, or why the permit should not have been suspended or revoked. The city manager, or designee, shall set a hearing date on the appeal not more than ten calendar days from receipt of the wr itten appeal and shall give the appellant notice of the hearing date through the method of service provided in Section 12.02.140. The decision of the city manager, or designee, on the appeal shall be final. The failure to file a timely and complete appe al as required herein shall constitute a waiver of all rights to appeal and a failure to exhaust administrative remedies. The submittal of an appeal shall not stay the stop work order, or suspension or revocation of an encroachment permit.  12.02.160 – Violation of encroachment permit, stop work order, agreement, or other violation of this chapter.

A. A violation of this chapter constitutes a misdemeanor, punishable pursuant to chapter 1.12 (General Penalty), at the discretion of the city prosecutor, as well as by administrative citation and fine, at the discretion of the city, pursuant to chapter

1.15 (Administrative Fines).

B. A violation of this chapter constitutes a public nuisance that may be abated, restrained or prevented by any means authorized by law, including injunctive relief.

C. Violation of any term of an agreement entered into with the city pursuant to this chapter shall also constitute a violation of this chapter, and shall be subject to the provisions of this section.

D. Each day a violation of this chapter continues constitutes a separate and distinct violation.

E. The remedies provided in this chapter are intended to be cumulative. Nothing in this chapter shall be deemed to prevent the city from utilizing any remedy in addition to, or in lieu of, any other remedy.

Section 2. Chapter 12.04 of the Chino Municipal Code is hereby replaced in its entirety with the following:
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Chapter 12.04 - STREETS
Sections:
 12.04.010 - Street dedication requirement
No building permit shall be issued for any lot unless one -half of the street, which is located on the same side of the centerline of the street as such lot, has dedicated right - of-way for the full width of the lot along all street frontages so as to meet t he City’s General Plan and other city standards for such street.
 12.04.020 – Waivers to requirement
A. Street dedication may be waived by the city engineer under any one of the following conditions:

1. When a building permit is issued for an addition which does not increase the floor area of an existing structure by more than five percent, and such addition is not constructed within the existing right -of-way or future right -of-way as identified in the City’s General Plan;

2. When a building permit is issued for the remodeling or reconstruction of a building in any zone, and the value of such remodeling or reconstruction as determined by the building official does not exceed 10 percent of the assessed value of such building as shown on the latest adopted county assessor's tax roll;

3. When a building permit is issued in any zone for the purpose of demolition of a structure;

4. When a building permit is issued in any zone for the construction of a wall or fence as long as such wall or fence is not constructed within the existing right- of-way or future right -of-way as identified in the City’s General Plan.

5. When a building permit is issued for the construction of accessory dwelling units, garages, carports, storage buildings, patio covers, swimming pools, and similar structures accessory to a single -family residence; and

6. Where dedication of the standard right -of-way is impractical as determined by the city engineer.

B. Notwithstanding any applicable exception in subsection (A), the city engineer may require dedication if the city engineer finds the change to the lot will cause sufficient increase in traffic flow to warrant widening the street.

Section 3. Chapter 12.08 of the Chino Municipal Code is hereby replaced in its entirety with the following:

Chapter 12.08 – CONSTRUCTION OF PUBLIC IMPROVEMENTS
Sections:
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 12.08.010 - Absence dangerous to public health and safety.

The absence of curbs, gutters, sidewalks, asphalt concrete pavement and street lights in the streets adjoining dwellings, buildings, private, public or semipublic parking lots, and residential, commercial, or industrial lots within the city is found and declared to be dangerous to the public health and safety of the inhabitants of the city .  12.08.020 - Required frontage improvements.

Any person or entity constructing, altering or enlarging any building, dwelling, or private, public or semipublic parking lot, or developing any residential, commercial, institutional or industrial lots in the city shall provide, at their own cost, for the construction and installation of concrete curbs, gutters, asphalt concrete street pavement, sidewalks, street lights, parkway landscaping, and street trees, including, as needed, the relocation and/or reconstr uction of any existing frontage improvements, in order to provide a fully improved frontage for such property that complies with all requirements, standards and specifications of the city, including the city’s General Plan.  12.08.030 - Location of improvements.

The improvements referred to in section 12.08.020 shall be constructed along all public street fronta ge adjoining the lot, which is located on the same side of the centerline of the street of such lot, upon which the building, dwelling, private, public or semipublic parking lot, or residential, commercial, institutional or industrial development is to be constructed, unless adequate curbs, gutters, sidewalks, asphalt concrete street pavement and street lights already exist in accordance with the requirements referred to in such section 12.08.020 along such street frontage.
 12.08.040 – Requirements prior to building permit issuance.

The Building Official shall not issue a Building Permit for any dwelling, buildi ng, private, public or semipublic parking lot, or for the development of any residential, commercial or industrial lot until the city engineer receives a notice of compliance verifying that the improvements required by this chapter exist or that the appli cant has entered into a construction agreement with the City, in a form approved by the city attorney, and provided acceptable security in an amount equal to the estimated cost of the construction of such improvements to guarantee the construction of such improvements, as provided in section 12.08.080. The agreement shall establish a timeline for completion of the improvements.
 12.08.050 - Exceptions to provisions.

The provisions of this chapter shall not apply to the following:

1. Reconstruction of a buildin g or structure, provided the total cost of the improvements to the building or structure does not exceed 50 percent of the value of the existing building or structure as shown on the latest adopted assessor’s tax roll;

2. Any addition to an existing single -family residence; 43 Ordinance No. 2023-020

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3. Construction of accessory dwelling units, garages, carports, storage buildings, patio covers, swimming pools, walls, fences and similar structures accessory to a single-family residence;

4. Any addition or cumulative additions, within a 5 -year period, to an existing commercial, office or multi -family residential building totaling less than 2,500 square feet. The provision will not apply if such addition(s) constitute more than 50 percent of the gross floor area of the existing building;

5. Any ad dition or cumulative additions, within a 5 -year period, to an existing industrial and/or institutional building total less than 10,000 square feet. The provision will not apply if such addition(s) constitute more than 50 percent of the gross floor area of the existing building;

6. Construction of accessory structures to a commercial/industrial/institutional building such as walls, fences, signs, billboards, structural covers on existing outdoor storage, fuel pump buildings, and carport structures over existing parking stalls; or

7. Notwithstanding the foregoing, alterations which do not intensify the use of the building or structure or generate a greater hazard to public health and safety as determined by the City Engineer.
 12.08.060 - Modification of provisions.

In unusual conditions or when compliance with the provisions of this chapter would constitute an extreme hardship or would be impractical, the city council may, upon written request of the property owner and payment of applicable review fees, waive or defer the requirements contained in this chapter as it may deem fit. The city council may impose any reasonable condition on a grant of a waiver or deferral under this chapter.

The city council’s action shall be final.
 12.08.070 - Fees in-lieu of construction.

Notwithstanding the provisions of this chapter, the construction of curbs, gutters, sidewalks, asphalt concrete pavement and street lighting, either one or all, will not be required if determined to be infeasible or impractical at the discretion of the City Engineer, provided the property owner pays to the city a fee equal to the total estimated cost of the improvements, to be calculated using standard unit prices on file in the office of the city engineer, and inclusive of applica ble escalation and administrative costs, to secure the future construction of curbs, gutters, sidewalks, asphalt concrete street pavement and street lights, either one or all.
 12.08.080 – Performance security.

Any person or entity subject to the requirem ents of 12.08.020, who does not pay a fee in-lieu of construction pursuant to section 12.08.070, shall deposit security with the city, as a condition of issuance of a building permit and prior to initiation of any work, in an amount determined by the City Engineer to be sufficient to complete the requirements of section 12.08.020 and this chapter, and to assure compliance with all applicable laws and regulations. The city may require such person to submit construction plans for completion of the work requi red in section 12.08.020 and cost estimates if necessary to determine the amount of the required security. Any such security may be in the form of a cash deposit, bond or letter of credit. Such security may be utilized by the city to 44 Ordinance No. 2023-020

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complete the construct ion and other work required by this chapter and other applicable laws.
 12.08.090 – Violations
A. A violation of this chapter constitutes a misdemeanor, punishable pursuant to chapter 1.12 (General Penalty), at the discretion of the city prosecutor, as well as by administrative citation and fine, at the discretion of the city, pursuant to chapter

1.15 (Administrative Fines).

B. A violation of this chapter constitutes a public nuisance that may be abated, restrained or prevented by any means authorized by law, including injunctive relief.

C. Violation of any term of an agreement entered into with the city pursuant to this chapter shall also constitute a violation of this chapter, and shall be subject to the provisions of this section.

D. It shall constitute a violation of this chapter for a person or entity to fail to properly and/or timely complete the requirements of this chapter, including sections

12.08.020 and 12.08.030.

E. Any permit issued for work required or authorized by this chapter, including a building permit, shall be subject to suspension or revocation in the event of a violation of this chapter. Such suspension or revocation shall follow the procedures set forth in sections 12.02.140 and 12.02.150 of this code.

F. Each day a violation of th is chapter continues constitutes a separate and distinct violation.

G. The remedies provided in this chapter are intended to be cumulative. Nothing in this chapter shall be deemed to prevent the city from utilizing any remedy in addition to, or in lieu of, any other remedy.

Section 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any person or circumstances, is, for any reason, held invalid or unconstitutional by any court o f competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.

Section 5. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its second reading and adoption.

Section 6. Certification. The City Clerk of the City of Chino shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the Chino Champion, a newspaper of general circulation, within said City in accordance with the provisions of the Government Code.

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ADOPTED THIS 21ST DAY OF NOVEMBER 2023.

By:

EUNICE M. ULLOA, MAYOR

ATTEST:

By:

NATALIE GONZAGA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §

CITY OF CHINO )

I, Natalia Gonzaga, City Clerk of the City of Chino do hereby certify that the foregoing Ordinance of the City of Chino was duly adopted by said City Council at a regular meeting held on the 21st day of November 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

By:

NATALIE GONZAGA, CITY CLERK

46 MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Public Improvement Agreement - Kaykel Investment Properties, Inc. ..end

RECOMMENDATION
Approve Public Improvement Agreement and securities with Kaykel Investment Properties, Inc. for Site Approval PL18 -0047 and authorize the City Manager to execute the necessary documents on behalf of the City.
..body

FISCAL IMPACT
There is no direct fiscal impact.

Revenue: Click or tap here to enter text.

Expenditure:

Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 47 CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: PUBLIC IMPROVEMENT AGREEMENT - KAYKEL INVESTMENT PROPERTIES, INC.

PAGE: 2

BACKGROUND
On October 21, 2019, the City’s Planning Commission conditionally approved Site Approval PL18-0047 for the construction of a 3,200 -square foot convenience store, 1,600 -square foot attached quick service restaurant, 3,000 -square foot gas station, and a 1,56 3-square foot detached express car wash on a 1.53 -acre site (“Project”). The Project is located on the northeast corner of Central Avenue and El Prado Road in the City’s Commercial Office zoning district (Exhibit A).

Over the last few years, the City has g ranted one-year time extensions to the applicant, Kaykel Investment Properties, Inc . Project delays have occurred due to the COVID -19 pandemic, funding uncertainties, and difficulties obtaining contract services to complete the final engineering. Project delays were also the result of significant gaps occurring between each plan check submittal during the final engineering phase. The applicant was required to go through several rounds of plan check to address all the City comments. The Project is now curren tly under construction.

The Engineering Conditions of Approval (COA) for the Project require public improvements including, but not limited to curb, gutter, sidewalk, streetlights, traffic signal, signal interconnect, asphalt concrete pavement, signing & striping, landscape, domestic water, recycled water, and drainage improvements on the northeast corner of Central Avenue and El Prado Road. To guarantee the completion of these public improvements, the developer is required to enter into a Public Improvement Agreement and obtain the necessary securities for the improvements.

ISSUES/ANALYSIS
The COA requirements of the Project have been met with the execution of the Public Improvement Agreement and by posting the necessary securities to guarantee the construction of the required public improvements . The City Attorney reviewed and approved the Public Improvement Agreement and respective securities, which is attached as Exhibit B.

Attachments: Exhibit A - Location Map Master Site Approval PL21-0045 Exhibit B - Public Improvement Agreement

48 Exhibit A

49 01225.0006/367559.3 Updated 10-2020

PUBLIC IMPROVEMENT AGREEMENT

by and between

CITY OF CHINO

and

KAYKEL INVESTMENT PROPERTIES, INC.

50 01225.0006/367559.3

PUBLIC IMPROVEMENT AGREEMENT BETWEEN

THE CITY OF CHINO
AND
KAYKEL INVESTMENT PROPERTIES, INC.

Agreement Date: November 21, 2023

Developer Name: Kaykel Investment Properties, Inc

Project Description: On October 21, 2019, the City’s Planning Commission conditionally approved Site Approval PL18 -0047 for the construction of a 3,200 -square foot convenience store, 1,600-square foot attached quick service restaurant, 3,000-square foot gas station, and a 1,563-square foot detached express car wash on a 1.53 -acre site (“Project”). The Project is located on the northeast corner of Central and El Prado Avenues in th e Cit y’s Commercial Office zoning district.

Project No.: PL18-0047

Estimated Total Cost of Improvements: $746,700.00

Security:

Bond No.: ____________________

Surety: ___________________
51 01225.0006/367559.3
Designees for the Service of Written Notice:

CITY: DEVELOPER
Jesus Plasencia
Assistant City Engineer

13220 Central Avenue
Chino, CA 91710

(909) 334-3417
[email protected]

Ron Reger
[email protected]
714-231-5922

Kaykel Investment Properties
Fueling Convenience
4350 Green River Rd
Corona, CA 92878

CITY PROJECT INSPECTOR SURETY
Isaac Ortega
Permit & Inspection Supervisor

13220 Central Avenue
Chino, CA 91710

(909) 334-3501
[email protected]

52 01225.0006/367559.3

TABLE OF CONTENTS

1. Construction Obligations

1.1 Works of Improvement

1.2 Other Obligations Referenced in Conditions of Approval

1.3 Intent of Plans

1.4 Survey Monuments

1.5 Performance of Work

1.6 Changes in the Work

1.7 Defective Work

1.8 No Warranty by City

1.9 Authority of the City Engineer

1.10 Documents Available at the Site

1.11 Inspection

1.12 Compliance With Law; Applicable Standards for Improvements

1.13 Suspension of Work

1.14 Erosion and Dust Control and Environmental Mitigation

1.15 Final Acceptance of Works of Improvement

1.16 Vesting of Ownership

1.17 Developer’s Obligation to Warn Public During Construction

1.18 Injury to Public Improvements, Public Property or Public Utility

2. Time for Performance

2.1 Commencement and Completion Dates

2.2 Phasing Requirements

2.3 Force Majeure

2.4 Continuous Work

3. Labor

3.1 Labor Standards

3.2 Nondiscrimination

3.3 Licensed Contractors

3.4 Workers’ Compensation

4. Security

4.1 Required Security

4.2 Form of Security Instruments

4.3 Developer’s Liability

4.4 Letters of Credit

4.5 Release of Security Instruments

53 01225.0006/367559.3

5. Cost of Construction and Provision of Inspection Service

5.1 Developer Responsible for All Related Costs of Construction

5.2 Payment to City for Cost of Related Inspection and Engineering Services

5.3 Payment of Development Impact Fees

6. Acceptance of Offers of Dedication

7. Warranty of Work

8. Default

8.1 Default by Developer

8.2 Remedies

8.3 Remedies Not Exclusive

8.4 Attorney’s Fees and Costs

8.5 Waiver

9. Indemnity/Hold Harmless

10. Developer’s Indemnity of Project Approval

11. Insurance Requirements

12. Environmental Warranty

13. General Provisions

13.1 Successors and Assigns

13.2 No Third-Party Beneficiaries

13.3 No Vesting Rights

13.4 Developer is Not Agent of City

13.5 Time of the Essence

13.6 Notices

13.7 No Apportionment

13.8 Severability

13.9 Captions

13.10 Incorporation of Recitals

13.11 Interpretation

13.12 Entire Agreement; Waivers and Amendments

13.13 Counterparts

14. Authority
54 01225.0006/367559.3
1 PUBLIC IMPROVEMENT AGREEMENT
THIS PUBLIC IMPROVEMENT AGREE MENT (this “Agreement”) is en tered into this 21st day of November, 2023, by and between the CITY OF CHINO, a municipal corporation, organized and existing in the County of San Bernardino, under and by virtue of the laws of the State of California, (“CITY”), and KAYKEL INVESTMENT PROPERTIES, INC. (“DEVELOPER”).

RECITALS
A. Developer is the owner of certain rea l p roperty located in the Ci ty o f Chino, County of San Bernardino , State of California (the “Property”), as described on Exhibit “A”, which Developer proposes to develop and construct certain work s of improvement thereon, as hereafter set forth.

B. Developer has applied for and rec eived conditional approval from the City to construct a 3,200 -square foot convenience store, 1,600-square foot attached quick service restaurant, 3,000-square foot gas station, and a 1,563 -square foot detached express car wash on a 1.53-acre site (the “Project”).

C. The City desires to assure that said improvements proposed for the Project w ill be construct ed in a good workmanlike manner and in accordance with all applicable laws, statues, ordinances, resolutions, and regulations now in force and effect in the City of Chino and the State of California, all of which are incorporated herein.

D. The Developer acknowledges familiarity with the various requirements for public improvements contained in the Chino Municipal Code and agrees to comply therewith.

COVENANTS
Based upon the foregoing Recitals which are incorporated herein by reference and in consideration o f City ’s site plan or other entitlements for the Property and permitting development of the Property to proceed, Developer agrees to timely perform all of its obligations as set forth herein.

1. Construction Obligations.

1.1. Works of Improvement . Developer agrees, at its so le c ost and expense, to construct or install, or cause to be constructed or installed the street, drainage, domestic water, sanitary sewer , street lighting, landscaping, utility, and other improvements more fully described as Exhibit “B” attached hereto (the “Works of Improvement ”), as the same may be supplemented and revised from time to time as set forth in this Agreement (said plans and specifications, together with all related documents, the “Plans”). The estimated construc tion cost for the Works of Improvement is $746,700.00.

1.2. Other Obligations Referenced in Conditions of Tentative Map Approval . In addition to the foregoing, Developer shall satisfy all of the other Conditions associated with the 55 01225.0006/367559.3
2 Project and the Property. The Conditions associated with the Map are included in Exhibit “B” attached hereto.

1.3. Intent of Plans. The intent of the Plans referenced in Section 1.1 is to prescribe a complete work of improvement which Developer shall perform or cause to be performed i n a manner acceptable to the City Engineer, (or designee), and in full compliance with all codes and the terms of this Agreement. Developer shall complete a functional or operable improvement or facility, even though the Plans may not specifically call out all items of wo rk required for Developer’s contractor to complete its tasks, incidental appurtenances, materials, and the like. If any omissions are made or information necessary to carry out the full intent and meaning of the Plans, Developer or its con tractor shall im mediately not ify its design engineer who will seek approval of the City Engineer for furnishing of detailed instructions. In the event of any doubt or question arising regarding the true meaning of any of the Plans, reference shall be made to the City Engineer whose decision thereon shall be final.

Developer recognizes that the Plans consist of general drawings. All authorized alterations affecting the requirements and information given on the Plans shall be in writing and approved by th e C ity Engineer. The Plans s hall be supplemented by such working or shop drawings as are necessary to adequately control the work. Without the City Engineer ’s prior written approval, no change shall be made by Developer or its contractor to any plan, specification, or working or shop drawing after it has been stamped as approved.

1.4. Survey Monuments . Before final approval of street improvements, Developer shall place survey monuments in accordance with the provisions of the State Subdivision Map Act, the Subdivision Ordinance of the C ity of Chino, and any other applicable law . Developer shall provide security for such obligation as provided in Section 4.1(a)(iii) and, after setting the monuments, Developer shall furnish the City Engineer written notice of the setting of s aid monuments and written proof of having paid the engineer or surveyor for the setting of said monuments.

1.5. Performance of Work . Developer shall furnish or cause to be furnished all materials, labor, tools, equipment, utilities, transporta tion, and incide ntals required to perform Developer’s obligations under this Agreement.

1.6. Changes in the Work . The City Engineer, without invalidating this Agreement and without notification to any of the sureties or financial institutions referenced in Pa ragraph 4, may order extra work or may make changes by altering or deleting any portion of the Works of Improvement as specified herein or as deemed necessary or desirable by the City Engineer as determined necessary to accomplish the purposes of this Agre ement and to pro tect the public health, safety, or welfare. The City Engineer shall notify Developer or its contractor in writing (by Correction Notice) at the time a determination has been made to require changes in the work. No field changes performed o r p roposed by Developer or it s co ntractor shall be binding on City unless approved in writing by the City Engineer. The City and Developer may mutually agree upon changes to the Works of Improvement , subject to the security requirements in Section 4.
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3 1.7. Defective Work . Developer shall cause its contractor to repair, reconstruct, replace, or otherwise make acceptable any work found by the City Engineer to be defective.

1.8. No Warranty by City . The Plans for the Works of Improvement have been prepared by or on behalf of Developer or its co nsultants or contractors, and City makes no representation or warranty, express or implied, to Developer or to any other person regarding the adequacy of the Plans or related documents.

1.9. Authority of the City Engineer . In addi tion to the auth ority granted to the City Engineer elsewhere in this Agreement, the City Engineer shall have the authority to decide all questions which may arise as to the quality and acceptability of materials furnished and work performed, and all questi ons as to the sa tisfactory and acceptable fulfillment of the terms of this Agreement by Developer and its contractor.

1.10. Documents Available at the Site . Developer shall cause its contractor to keep a copy of all approved Plans at the job site and shall giv e access thereto to the City’s inspectors and engineers at all times.

1.11. Inspection. Developer shall have an authorized representative on the job site at all times during which work is being done who has full authority to act for Developer, or its design en gineer, and Developer’s contr actor(s) regarding the Works of Improvement.

Developer shall cause its contractor to furnish the City with every reasonable facility for ascertaining whether or not the Works of Improvement as performed are in accordance with the requirements and intent o f th is Agreement, including the Plans. If the City inspector requests it, the Developer’s contractor, at any time before acceptance of the Works of Improvement, shall remove or uncover such portions of the finished work as may be directed which have not previously been inspected. After examination, the Developer’s contractor shall restore said portions of the work to the standards required hereunder. Inspection or supervision by the City Engineer (or designee) shall not be co nsidered as direct control of the individual workmen on the job site. City’s inspectors shall have the authority to stop any and all work not in accordance with the requirements contained or referenced in this Agreement.

The inspection of the work by City shall not relie ve Developer or its contractor of any obligations to fulfill this Agreement as herein provided, and unsuitable materials or work may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted.

1.12. Compliance With Law; Applicable Standards for Improvements. In addition to the express provisions of this Agreement and the Plans, Developer shall cause construction of the Works of Improvement to be completed in accordance with all other applicable federa l, state, and local laws, ordinances, rules and regulations. In addition, without limiting the foregoing, the Developer shall, at its expense, obtain and comply with the conditions of all necessary permits and licenses for the construction of the Works of Improvement. The Developer shall also give all necessary notices and pay all fees and taxes as required by law.

Developer shall construct the improvements in accordance with the City standards in effect at the time of the adoption of this Agreement. City reserves the right to protect the public safety or welfare or comply with applicable Federal or State law or City zoning ordinances. 57 01225.0006/367559.3
4 1.13. Suspension of Work. The City Engineer shall have authority to order suspension of the work for failure of the Developer’s contractor to c omply with la w pu rsuant to Section

1.12. In case of suspension of work for any cause what soever, Developer and its contractor shall be responsible for all materials and shall store them properly if necessary , and shall provide suitable interim drainage and/or dust control measures, and erect temporary structures where necessary.

1.14. Erosion and Dust Control and Environmental Mitigation . All grading, landscaping, and construction activities shall be performed in a manner to control erosion and prevent flooding problems. T he C ity Engineer shall have the authority to require erosion plans to prescribe reasonable controls on the method, manner, and time of grading, landscaping, and construction activities to prevent nuisances to surrounding proper ties. Plans sha ll include without limitation temporary drainage and erosion control requirements, dust control procedures, restrictions on truck and other construction traffic routes, noise abatement procedures, storage of materials and equipment, removal of garbage, tra sh, and refus e, securing the job site to prevent injury, and similar matters.

1.15. Final Acceptance of Works of Improvement . After Developer’s contractor has completed all of the Works of Improvement, Developer shall then request a final inspe ction of the work. If items are found by the City’s inspectors to be incomplete or not in compliance with this Agreement or any of the requirements contained or referenced herein, City will inform the Developer or its contractor of such items. After the Developer’s contractor has com pleted these items, the procedure shall then be the same as specified above for the Developer’s contractor’s initial request for final inspection. If items are found by City ’s inspector s to be incomplete or not in compliance a fter two (2) “final” inspections, the City may require the Developer or its contractor, as a condition to performing further field inspections, to submit in writing a detailed statement of the work performed subsequent to the date of the previous inspection which was found to be incomplete or not in compliance at that time. Developer shall be responsible for payment to City Engineer of re -inspection fees in the amount necessary to cover the City’s costs for additional final inspections, as determined by the City Engineer.

No inspection or acceptance pertaining to specific parts of the Works of Improvement shall be construed as final acceptance of any part until the overall final acceptance by the City Engineer is made. The City Engineer shall make a certifi cation of comple tion and acceptance on the Works of Improvement by recordation of a Notice of Acceptance on behalf of the City.

Final acceptance shall not constitute a waiver by the City Engineer of defective work subsequently discovered.

The date on whic h the Works of I mprovement will be considered as complete shall be the date of the Notice of Acceptance.

1.16. Vesting of Ownership. Upon recordation of the Notice of Acceptance, ownership of the Works of Improvement shall vest in the City.

1.17. Developer’s Obligatio n t o Warn Public During Const ruction. Until recordat ion of the Notice of Acceptance , Developer shall give good and adequate warning to the public of any dangerous condition of the Works of Improvements, and shall take reasonable actions to 58 01225.0006/367559.3
5 protect the publ ic from such dan gerous condit ion. Until re cordation of the Notice of Acceptance, Developer shall provide forty-eight ( 48) hours’ advance written notice to all neighboring property owners and tenants affected by Developer’s operations or construction of the hours, dates and duration of any planned construction activities.

1.18. Injury to Public Improvements, Public Property or Public Utility. Until recordation of the Notice of Acceptance of the Works of Improvement , Developer assumes responsibility for the care a nd maintenance of, and any da mage to, the Works of Improvements. Developer shall replace or repair all Works of Improvements, public property, public utility facilities, and surveying or subdivision monuments and benchmarks which are destroyed or damaged f or any reason, r egardless whe ther resulting from the acts of the Developer, prior to the recordation of the Notice of Acceptance. Developer shall bear the entire cost of such replacement or repairs regardless of what entity owns the underlying property. An y repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer.

Neither the City, nor any officer or employee thereof, shall be liable or responsible for any accident, loss or damage, regardless of cause, occurring to the work or Works of Improvements prior to recordation of the Notice of Acceptance of the work or improvements.

2. Time for Performance.

2.1. Commencement and Completion Dates . Subject to Section s 2.2 and 2.3 below, Developer shall (i) commence with construc tion and install ation of the Works of Improvement thirty (30) days following City ’s approval of the Plans ( “Commencement Date ”); and (ii) complete or cause to be completed all of the Works of Improvement within two (2) years after the Commencement Date. In the event good cause exists as determined by the City Engineer, the time for commencement of construction or completion of the Works of Improvement hereunder may be extended by up to three (3) additional one-year periods. Extensions shall be executed in writing by the C ity Engineer. The City Engineer in his or her sole discretion determines whether or not the Developer has established good cause for an extension. As a condition of such extension, the City Engineer may require Developer to furnish new secu rity guaranteeing performance of this Agreement, as extended, in an increased amount to compensate for any increase in construction costs as determined by the City Engineer. If Developer requests and is granted an extension of time for completion of the im provements, City may apply the standards in effect at the time of the extension.

2.2. Phasing Requirements. Notwithstanding the provisions of Section 2.1, the City reserves the right to control and regulate the phasing of completion of specific Works of Improvement as requir ed to comply with applicable City ordinances, regulations, and rules relating to the timely provision of public services and facilities. In addition to whatever other remedies the City may have for Developer’s failure to satisfy such phasi ng requirements, as the same now exist or may be amended from time to time, Developer acknowledges City ’s right to withhold the issuance of further building permits on the Property until such phasing requirements are satisfied. Prior to issuance of buildi ng permits, Developer shall p rovide satisfactory evidence that all applicable requirements that are a condition to issuance of building permits have been satisfied. Such requirements may include the payment of fees, construction of improvements, or both. Final inspection s or issuance of Certificates of 59 01225.0006/367559.3
6 Occupancy may be withheld from the Developer by the City, if, upon a determination by the City Engineer, completion of specific Works of Improvements or other requirements associated with the development of the Property hav e not been co mpleted to the City Engineer ’s satisfaction.

2.3. Force Majeure. Notwithstanding the provisions of Section 2.1, Developer’s time for commencement and completion of the Works of Improvement shall be extended for the period of any enforced delay caused due to circumstances beyond the control and without the fault of Developer, including to the extent applicable adverse weather conditions, flood, earthquakes, strikes, lockouts, pandemics, acts or failures to act of a public agency (in cluding City), required changes to the scope of work required by City, and similar causes; provided, however, that the period of any enforced delay hereunder shall not include any period longer than five (5) days prior to City ’s receipt of a written notice from Developer or its contractor detailing the grounds for Developer’s claim to a right to extend its time for performance hereunder. The City Engineer shall evaluate all claims to Force Majeure and make a reasonable determination regarding the length of any extension o f time for co mmencement and/or completion of the Works of Improvement and the City Engineer’s decision shall be final.

2.4. Continuous Work . After commencement of construction of the Works of Improvement (or separate portion thereof), Developer shall cause su ch work to be diligently pursued to completion and shall not abandon the work for a consecutive period or more than thirty (30) days, events of Force Majeure excepted.

3. Labor.

3.1. Labor Standards. This Agreement is subject to, and Developer agrees to comply with, all of the applicable provisions of the Labor Code including, but not limited to, the wage and hour, prevailing wage, worker compensation , and various other labor requirements in Division 2, Part 7, Chapter 1, including section 1720 t o 1740, 1770 to 1 780, 1810 to 1815, 1860 to 1861, which provisions are specifically incorporated herein by reference as set forth herein in their entirety. Developer shall expressly require compliance with the provisions of this Section in all agreements w ith contractors a nd subcontra ctors for the performance of the Works of Improvement.

3.2. Nondiscrimination. In accordance with the California Fair Employment and Housing Act ( “FEHA”), California Government Code Section 12940 et seq., Developer agrees that Developer, its agent s, employees, contractors, and subcontractor performing any of the Works of Improvement shall not discriminate, in any way, against any person on the basis of race, ethnicity, religious creed, color, national origin, ancestry, physical dis ability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, o r military and veteran status . Developer shall expressly require compliance with the provisions o f this Section in all agreeme nts with contractors and subcontractors for the performance of this Agreement.

3.3. Licensed Contractors. Developer shall cause all of the Works of Improvement to be constructed by contractors and subcontractors with valid Califor nia Contractors’ licenses for the type of work being performed. All of Developer’s contractors and subcontractors shall 60 01225.0006/367559.3
7 obtain a valid City of Chino business license prior to performing any work pursuant to this Agreement. Developer shall provide the City Engineer with a list of all of its contractors and subcontractors prior to initiating any work, and all valid Contractor ’s licenses and business licenses issued thereto as a condition of constructing the Works of Improvements.

3.4. Worker’s Compensation . Developer shall caus e every cont ractor and subcontractor performing any of the Works of Improvement to carry Workers ’ Compensation Insurance as required by the La bor Code of the State of California and shall cause each such contractor and subcontractor to sub mit to City a Cer tificate of Insurance verifying such coverage prior to such contractor or subcontractor entering onto the job site.

4. Security.

4.1. Required Security.
(a) At the time Developer executes this Agreement, Developer shall furnish to City the following b onds, letters of credit, inst ruments of credit (assignment of deposit account) or other security acceptable to City in its sole and absolute discretion and sat isfying the requirements of the applicable provisions of this Section 4 below (hereinafter “Security Instruments”):
(i) A Security Instrument securing Developer’s faithful performance of all of the Works of Improvement ( “Faithful Performance Security Instrument”), in the amount of $746,700.00 equal to 100% of the estimated construction cost referenced in Section 1.1.
(ii) A Security In strument guaranteeing the payment to contractors, subcontractors, and other persons furnishing labor, materials, and/or equipment (“Labor and Materials Security Instrument ”) with respect to the Works of Improvement in an amount equal to $373,300.00 equal to 50% of the estimated construction cost referenced in Section 1.1.

This Agreement shall not be effective for any purpose until such Security Instruments are supplied to and approved by City in accordance herewith. (b) Required Security Instrument for Maintenance and Warranty. Prior to the City Council ’s accept ance of the Works of Improvem ent and recordation of a Notice of Completion, Developer shall deliver a Security Instrument warranting the work accepted for a pe riod of one (1) year following said acceptanc e (“Maintenance and Warranty Security Instrument ”), in the amount of $74,700.00 equal to 1 0% of the estimated construction cost set forth in Section 1.1 or a suitable amount determined by the City Engineer.

4.2. Form of Security Instruments . All Security I nstruments shall be in the amounts required under Se ction 4.1 (a) or 4.1(b), as a pplicable, shall meet the following minimum requirements and otherwise shall be in a form provided by City or otherwise approved b y the City Attorney:
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8 (a) Bonds. F or Security Instruments provided in the form of bonds, any such bond must be issued and executed by an insurance company or bank authorized to transact surety business in the State of California. Any insurance company acting as surety shall have a minimum rating of A -IX, as rated by the current edition of Best ’s Key Rating Guide published by A.M. Be st’s Company, Oldwick, New Jersey, 08858. Any bank acting as surety shall have a minimum rating of AA, as rated by Moody’s or Standard & Poor’s.
(b) Letters of Credit. For Secur ity Instruments which are letters of credit, any letter of credit shall be an ori ginal separate unconditional, irrevocable, negotiable and transferable commercial letter of credit issued by a financial instituti on with offices in the State of California acceptable to City. Any such letter of credit shall specifically permit City to dr aw on same by unilateral certification of the City Engineer of the City that Developer is in default under its payment or performance obligations hereunder or in the event Developer fails to deliver a replacement letter of cred it not less than thirty (30) days prior to the date of expiration of any such letter of credit and shall further be subject to the provisions of Section 4.4.
(c) Instrument of Credit . For Secu rity Instruments which are Instruments of Credit, any Instrument o f Credit shall be an assignme nt of deposit account assigning as security to City all of Developer’s interest in funds on deposit in one or more bank accounts with financial institutions acceptable to City. (d) General Requirements for all Security Instruments.
(i) Payments under any Security Instruments shall be required to be made (and, with respect to bonds, litigation shall be required to be instituted and maintained ) in the City of Chino, State of California (and the Security Instrument shall so provide).
(ii) Each Security Instrument shall hav e a minimum term of one (1) year after the deadline for Developer’s completing the Works of Improvement, in accordance with Sectio n 2.1 (other than Instruments o f Credit, whic h shall have no defined term or expiration date).
(iii) Each Security Instrument shall provide that changes may be made in the Works of Improvement pursuant to the terms of this Agreement without notice to any issuer or surety and without affecting the obligations under such Security Instrument. (iv) If the Developer seeks to replace any security with another security, the replacement shall: (1) comply with all the requirements for security in this Agreement; (2) be provide d by the Developer to the City Engineer; and (3) upon its written acceptance by the City Engineer, be deemed a part of this Ag reement. Upon the City 62 01225.0006/367559.3
9 Engineer’s acceptance of a replacement security, the former security shall be released by the City.

4.3. Developer’s Liability. While no acti on of Developer shall be required in order for City to realize on its security under any Securi ty Instrument, Developer agrees to cooperate with City to facilitate City ’s realization under any Security Instrument, and to take n o action to prevent City from such realization of any Security Instrument. Notwithstanding the giving of any Security Instrument or the subsequent expiration of any Security Instrument or any failure by any surety or financial institution to perform its obligations with respect thereto, Developer shall be personally liable for performance under this Agreement and for payment of the cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (10) days after written demand therefor, deliver to City such substitute security as City shall require satisfying the requirements in this Section 4.

4.4. Letters of Credit.
(a) In the event a letter of credit is given pursuant to Section 4.2(b), City shall be entitled to draw on any such letter o f credit if a replacement letter of credit (expiring in not le ss than one (1) year, unless City agrees to a lesser term in City’s sole and absolute discretion) is not delivered not less than thirty (30) days prior to the expiration of the original letter o f credit, such substitute letter of credit being in the same amount and having the terms and conditions as the initial letter of credit delivered hereunder, issued by a financial institution acceptable to City as of the date of delivery of the replacement letter of credit. (b) In the event of draw by the City on a letter of credit, the City may elect, i n its sole and absolute discretion, to apply any such funds drawn to the obligations secured by such letter of credit or to hold suc h funds in an account under t he control of the City, with no interest accruing thereon for the benefit of the Developer. If the City elects to hold the funds in an account pursuant to the foregoing, City may thereafter at any time elect instead to apply s uch funds as provided in the foregoing. Developer agrees and hereby grants City a security interest in such account to the extent required for City to realize on its interests therein and agrees to execute and deliver to City any other documents requested by City in order to evidence the creation and perfection of City ’s security interest in such account.

4.5. Release of Security Instruments. The City shall release all Security Instruments consistent with Government Code Sections 66499.7 and 66499.8 , Section 1 9.09.010 of the Chino Municipal Code, and as follows:
(a) City shall release the Faithful Perfo rmance Security Instrument and La bor and Materials Security Instrument when all of the following have occurred:
(i) Developer has made written request for release and pr ovided evidence of satisfaction of all other requirements in this Section 4.5; (ii) the Works of Improvement have been accepted;
63 01225.0006/367559.3
10 (iii) Developer has delivered the Maintenance and Warranty Security Instrument; and
(iv) after passage of the time within which lien claims are required to be made pursuant to Title 3 (c ommencing with Section 9000) of Part 6 of Division 4 of the Civil Code of the State of California. If lien claims have been timely filed, City shall hold the Labor and Materials Security Instrument until such claims have been resolved, Developer has provided a statutory bond, or otherwise as required by applicable law.
(b) City shall release the Maintenance and Warranty Security Instrument upon Developer’s written request upon the expiration of the warranty period, and settlement of any claims filed during the warranty period. (c) The City may retain from any se curity released, an amount suffic ient to cover costs and reasonable expenses and fees, including reasonable attorney ’s fees.

5. Cost of Construction and Provision of Inspection Service.

5.1. Developer Responsible for All Costs of Construction . Developer shall be responsible for payment of all c osts incurred for construction and installation of the Works of Improvement. In the event Developer is entitled to reimbursement fr om City for any of the Works o f Improvement , such reimbursement shall be subject to a separ ate Reimbursement Agreement to be entered into between Developer and City prior to construction of the Works of Improvement.

5.2. Payment to City for Cost of Related Insp ection and Engineering Service s.

Developer shall compensate City for all of City ’s costs reasonably incurred in having its authorized representative make the usual and customary inspections of the Works of Improvement. In addition, Developer shall compen sate City for all design, plan check, evaluating any proposed or agreed-upon changes in the work. The procedures for deposit and payment of such fees shall be as established by the City. In no event shall Developer be entitled to additional inspections or a final inspection and accept ance of any o f the Works of Improvement until all City fees a nd charges have been fully paid, including without limitation, charges for applicable penalties and additional required inspections.

5.3. Payment of Development Impact Fe es. Developer shall pay Development Impact Fees pursuant to and in accordance with Chino Mu nicipal Code Chapter 3.40 and Cha pter

3.45, as applicable.

6. Acceptance of Offers of Dedication . The City Council shall pass as appropriate resolution or resolutions accepting all offers of dedic ation shown o n the approvals for the Project, with acceptance to become effective upon complet ion and acceptance by City of the Works of Improvement.
64 01225.0006/367559.3
11 7. Warranty of Work . Developer shall guarantee all Works of Improvement again st defective materials and wor kmanship for a period of one (1) year from the date of final acceptance. If any of the Works of Improvement should fail or prove defective within said one (1) year period due to any reason other than improper maintenance, or if any settlement of fill or b ackfill occur s, or should any portion of the Works of Improve ment fail to fulfill any requirements of the Plans, Developer, within fifteen (15) days after written notice of such defects, or within such shorter time as may reas onably be determined by the Ci ty in the eve nt of emergency, shall commence to repair or rep lace the same together with any o ther work which may be damaged or displaced in so doing. Should Developer fail to remedy defective material and/or workmanship or m ake replacements or repairs wi thin the peri od of time set forth above, City may make such r epairs and replacements and the a ctual cost of the required labor and materials shall be chargeable to and payable by Developer. The warranty provided herein shall n ot be in lieu of, but shall be in addition to, any warranties or other obligations otherwise imposed by law.

8. Default.

8.1. Default by Developer. Default by Developer shall include, but not be limited to:
(a) Developer’s failure to timely commence construction of Wo rks of Improvement under this Agreement;
(b) Developer’s failure to timely complete constructio n of the Works of Improvement;
(c) Developer’s failure to perform substantial construction work for a period for 20 consecutive calendar days after commencement of the work; (d) Developer’s insolvency, a ppointment of a receiver, or the filing of any petition in ba nkruptcy, either voluntary or inv oluntary, which Developer fails to discharge within 30 days;
(e) The commencement of a foreclosure action against the Property or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (f) Developer’s failure to perform any other obligation under this Agreement.

8.2. Remedies. The City reserves all remedies available to it at law or in equity for a default or breach of Developer’s obligations under this Agreement. T he City shall have the right, subject to this Section, to draw upon or use the ap propriate security to mitigate the City’s damages in the event of default by Developer. The City’s right to draw upon or use the security is in addition to any other remedy available to City. The parties acknowledge that the estimated costs and security amounts may not reflect the actual cost of construction of the improvements and, therefore, City ’s damages for Developer’s default sha ll be measured by the cost of completing the required improvements. The City may use the su ms provided by the securities for the completion of the Works of Improvement in accordance with the plans. In the event the Developer fails to cure any default under this Agreement within 20 days after the City mails a notice of such default to the Developer and the Developer’s surety, Developer authorizes the 65 01225.0006/367559.3
12 City to perform the obligation for which Developer is in default and agrees to pay the entire cost of such pe rformance by the City. The Cit y may take ov er the work and complete the Works of Improvemen t, by contract or by any other me thod City deems appropriate, at the expense of the Developer. In such event, City, without liability for doing so, may complete the Works of Improvement using any of Developer’s materials, appliances, plans and other property that are at the work site and that are necessary to complete the Works of Improvement.

8.3. Remedies Not Exclusive. In any case where this Agreement provides a specific remedy to City for a defau lt by Developer hereunder, the Developer agrees that the choice of remedy or remedies for Developer’s breach shall be in the discre tion of the City. Additionally, any remedy specifically provided in this Agreement shall be in addition to, and not exclusive of, City’s right to pursue any other ad ministrative, legal, or equitable remedy to which it m ay by entitled.

8.4. Attorney’s Fees and C osts. In the event that Developer fails to perform any obligation under this Agreement, Developer agrees to pay all costs a nd expenses incurred by City in securing performance of such obligations, including costs of s uit and reasonable attorney’s fees. I n the event of any dispute arising out of Developer’s performance of its obligations under this Agreement or under any of the Security Instruments referenced herein, the prevailing party in such action, in addition to a ny other relief which may be granted, shall be entitled to recover its reasonable attorney ’s fees and costs. Such attorney’s fees and cost shall include fees and costs on any appeal, and in addition a party entitled to attorney ’s fees and costs shall be e ntitled to all other reasonable costs incurred in investigating such action, taking depositions and discovery, retaining expert witnesses, and all other necessary and related costs with respect to the l itigation. All such fees and costs shall be deemed to have accrued on commencement of the a ction and shall be enforceable whether or not the action is prosecuted to judgment.

8.5. Waiver. No waiver by the City of any brea ch or default by the Developer shall be considered valid unless in writing, and no such waiver by the City shall be deemed a waiver of any subsequent breach or default by the Developer.

9. Indemnity/Hold Harmless . City or any officer, employee or agent thereo f shall not b e liable for any injury to persons or property occasioned by reason of the acts o r omissions of Developer, its agents, employees, contractors and subcontractors in the performance of this Agreement. Developer further agrees to protect, defend, indemnify and hold harmless City, its officials, boards and commissions, and members thereof, agents, and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions of Developer, its agents, employees, contractors and subcontractors in the performance of this Agreem ent, except for such claims, demands, causes of action, liability or loss arising out of the sole active negligence of the City, its officials, boards, commissions, the member s thereof, agents and emplo yees, including all claims, demands, causes of action, liability or loss because of or aris ing out of, in whole or in part, the design or construction of the improvements. This indemnification and agreement to hold h armless shall extend to injuries to pers ons and damages or taking of property resulting from t he design or construction of said Project, and the public improvements as provided herein, and in addition, 66 01225.0006/367559.3
13 to adjacent property owners as a consequence of the di version of waters from the design and construction of public drainage systems, streets and oth er improvements. Recordation of the Notice of Acceptance by the City of the Works of Improvements shall not constitute an assumption by the City of any responsibi lity for any damage or taking covered by this Section.

City shall not be responsible for the d esign or construction of the property to be dedicated or the improvements pursuant to the approved improvement p lans or map, regardless of any negligent action or inaction tak en by the City in approving the plans or map, unless the particular improvement d esign was specifically required by Ci ty over written objection by Developer submitted to the City Engineer before approval of the particular improvement design, w hich objectio n indicated that the partic ular improvement design was dangerous or defective and suggested an alternative safe and feasible design.

After recordation of the Notice of Acceptance , the Developer shall remain obligated to eliminate any latent d efect in desi gn or dangerous condition c aused by the design or construction defect for a perio d of o ne (1) year ; however, Developer shall not be responsible for routine maintenance. It is the intent of this section that Developer shall be responsible for all liability for design and construction of the improvements installed or work done pursuant to this Agreement and that City shall not be l iable for any negligence, nonfeasance, misfeasance or malfeasance in approving or reviewing any work or construction . The improvement security shall not be required to cover the provisions of this Paragraph.

Developer shall reimburse the City for all cost s and expenses, including but not limited to fees and charges of architects, engineers, attorneys, and other profess ionals, and c ourt costs, incurred by City in enforcing this Section.

10. Developer’s Indemnity of Project Approval. Developer shall defend, indemnify, and hold harmless the City and its agents, officers, a nd employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void, or annul, an a pproval of the City, advisory agency, appeal b oard, or legislative body concerning the Project. The City sha ll promptly notify the Developer of any claim, action, or proceeding and cooperate fully in the defense of any such claim, action, or proceeding. In the event City fails to promptly notify the Developer of any claim, action, or proceeding, or if the City f ails to cooperate in the defense, the Developer shall not thereafte r be responsible to defend, indemnify, or hold harmless the City. Nothing in this Section prohibits the City from participating in the defense of any claim, action, or proceeding if City be ars its own attorney ’s fees and costs and defends the action in good faith. Developer shall not be required to pay or perform any settlement unless the settlement is approved by the Developer.

11. Insurance Requirements. Developer, at Developer’s sole cost an d expense and for the full term of this Agreement and any extension s thereto, shall obtain and maintain all of the following minimum insurance requi rements in a fo rm approved by the City’s autho rized designee for Risk Management prior to commencing any work:
(a) Commercial General Liability policy with a minimum $1 million c ombined single limit for bodily injury and property damage providing all of the f ollowing minimum coverage without deductibles:
67 01225.0006/367559.3
14 (i) Premises operations; including X, C, and U coverage; (ii) Owners’ and contractors’ protection;
(iii) Blanket contractual;
(iv) Completed operations; and
(v) Products.
(b) Commercial Business Auto policy with a minimum $1 million c ombined single limit for bodily injury and pro perty damage, providing all of the following minimum coverage without deductibles:
(i) Coverage shall apply to any and all leased, o wned, hired, or non - owned vehicles used in pursuit of any of the activities assoc iated with this Agreement; and
(ii) Any and all mo bile equipment including cranes which are not covered under th e above Commercial Business Auto policy shall have sai d coverage pr ovided under the Commercial General Liability policy.
(c) Workers Compensation and E mployers’ Liability policy in accordance with the laws of the State of California and providing coverage for any and all employees of the Developer:
(i) This policy shall provide coverage for Workers ’ Compensation (Coverage A); and
(i) This policy shall provide coverage for $1,000,000 Employers’ Liability (Coverage B).
(ii) Pursuant to Labor Code section 1861, Developer by executing this Agreement certifies: “I am aware of t he provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers ’ Compensation or t o undertake self - insurance in accordance with the provisions o f that Code, and I will comply with such provisions be fore commencing the performance of the work of this contract.”
(iii) Prior to commencement of work, the Developer shall file with the City’s Risk Manager a Certificate of Insurance or certification of permission to self -insure workers’ compensation conforming to the requirements of the Labor Code.
(d) Endorsements. All of the following endorsements are requ ired to be made a part of each of the above-required policies as stipulated below:
68 01225.0006/367559.3
15 (i) “The City of Chino, its officers, employees and agents are hereby added as additional insureds.”
(ii) “This policy shall be considered primary insurance with respect to any oth er valid and collectible insurance the City ma y possess, including any self - insured retention the City may have and any other insurance the City does possess sha ll be conside red excess insurance only.”
(iii) “This insurance shall act for each insured and addit ional insured as though a separate policy has been written for each. This, however, will not act to increase the limit of the insuring company.” (iv) “Thirty (30) days prior written notice of cancellation shall be given to the City of Chino in the event of can cellation and/or reduction in coverage, except that ten (10) days prior written notice shall apply in the ev ent of cancellation for non -payment of premium. ” Such notice shall be sent to the Risk Manager at the address indicated in Subsection f below.
(v) Subsection d(iv ) hereinabove “Cancellation Notice ” is the only endorsement required of the Workers ’ Compensation and
Employers’ Liability policy.
(e) Admitted Insurers. All insurance companies providing insurance to the Developer under this Agreement shall be adm itted to transact the business of insurance by the California Insurance Commissioner.
(f) Proof of Coverage. Co pies of all required endorsements shall be attached to the Certific ate of Insurance which shall be provided by the Developer’s insurance company as evidence of the coverage required herein and s hall be mailed to:

City of Chino
Risk Management
13220 Central Avenue
Chino, CA 91710

12. Environmental Warranty.

12.1. Prior to the ac ceptance of any dedications or Works of Improvement by City, Developer shall provide City with a written warranty in a form substantially similar to Exhibit “C” attached hereto and incorporated herein by reference, that:
(a) Neither the property to be dedicat ed nor Developer are in violation of any environmental law, and neither the prope rty to be dedicated nor the Developer are subject to any existing, pending or threatened investigation by an y federal, 69 01225.0006/367559.3
16 state or local governmental authority under or in connec tion with the environmental laws relating to the property to be dedicated. (b) Neither Developer nor any other person with Developer’s permission to be upon the property to be dedicated shall use, generate, manufacture, produce, or release, on, u nder, or abou t the property to be dedicated, any Hazardous Substance except in compliance with all applicable environmental laws. For the purposes of this Agreement, the term “Hazardous Substances” shall mean any substance or material which is capable of p osing a risk of injury to health, safety or property, including all those materials and substa nces designated as hazardous or toxic by any f ederal, state or local law, ordinance, rule, regulation or pol icy, including but not limited to, all of those materi als and subst ances defined as “Toxic Materials” in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30, as the same shall be amended from time to time, or any other materials requiring remediation under federal, state or local laws, ordinances, rules, regulations or policies. (c) Developer has not cau sed or permitted the release of, and has no knowledge of the release or presence of, any Hazardous Substance on the property to be dedicated or the migration of a ny hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. (d) Developer’s prior an d present use of the property to be dedicated has not resulted in the release of any hazardous substance on the prop erty to be dedicated.

12.2. Developer shall give prompt written notice to City of:
(a) Any proceeding or investigation by any federal, state or local governmental (b) authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. (c) Any claims made or t hreatened by any third party against City or the property to b e dedicated relating to any loss or injury resulting f rom any hazardous substance; and
(d) Developer’s discovery of any occurrence or condition on any property adjoining or in the vicinity of the p roperty to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which it is intended, transferabi lity or suit under any environmental law.

13. General Provisions.

13.1. Successors and Assigns . This Agreement shal l be binding upon all successors and assigns to Developer’s right, title, and interest in and to the Property and any portion 70 01225.0006/367559.3
17 thereof. Developer hereby consents to City recording this Agreement as official records of San Bernardino County, affecting fee t itle interest to the Property to provide constructive notice of the rights and obligations incurred by Developer in the City ’s approval of this Agre ement. In the event the Property is subsequen tly conveyed by Developer to a third party prior to completion of the Works of Improvement, whereby the third party is intended t o assume Developer’s responsibilities with regard to this Agreement, (the “Replacement Developer”), the rights and obligations of this Agreement shall transfer to the Replacement Developer; however, the Security Instruments required pursuant t o Section 4 o f this Agreement, and furnished by Developer as a condition of the City ’s approval of this Agreement, shall remain Developer’s responsibility to maintain until such time as Developer and its Replacement Developer enter into a Transfer and Assi gnment of Public Improvement Agreement, (the “Transfer Agreement”), to acknowledge the transfe r of fee title to the Property from the Developer to its Replacement Developer, and to acknowledge the right s and obligations associated with this Agreement upon the Replaceme nt Developer, including Replacement Developer’s responsibility to furnish replacement Security Instruments meeting the City’s approval pursuant to Section 4 of this Agreement. Until such t ime as a Transfer Agreement, meeting the City ’s approval, is executed by Developer and its Replacement Developer, and replacement Security Instruments meeting City ’s approval are furnished by th e Replacement Developer, Developer retains sole responsibility for maintaining all Security Instruments required pur suant to Section 4 of this Agreement.

13.2. No Third Party Beneficiaries . This Agreement is intend ed to benefit only the parties hereto and thei r respective successors and assigns. Neither City nor Developer intend to create any third party beneficiary rights in this Agree ment in any contractor, subcontractor, member of the general public, or other person or entity.

13.3. No Vesting Rights. Performance by the Developer of this Agreement shall not be construed to v est Developer’s rights with respect to any change in a ny zoning or building law or ordinance.

13.4. Developer is Not Agent of City. Neither Developer nor Developer’s agents, contractors, or subcontrac tors are agents or contractors of the City in connection with the performance of Developer’s obligations under this Agreement.

13.5. Time of the Essence. Time is of the essence of Developer’s performance of all of its obligations under this Agreement.

13.6. Notices. Unless otherwise specified in this Agreement, all notices req uired or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on th e date is delivered in person, or, if mailed, on the date of d eposit in the United States Mail.

Notice shall be prov ided to the p ersons listed on Pages 1 and 2 of this Agreement by the parties for this purpose.

Either party may provide a new designated rep resentative and/or address by written notice as provided in this Section.
71 01225.0006/367559.3
18 13.7. No Apportionment. Nothing contained in thi s Agreement s hall preclude City from expending monies pursuant to agreements concurrently or p reviously executed between the parties, or from entering into agreements with other Developers for the apportionment of costs of water and sewer mains, or other i mprovements p ursuant to the provisions of the City ordinances providing therefore. Nor shall a nything in the Agreement commit City to any su ch apportionment.

13.8. Severability. I f any portion of this Agreeme nt is held invalid by a court of competent jurisdictio n, the remain der of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

13.9. Captions. The captions of this Agreement are for convenience and reference only and shall not be used in the interpretation of any provision of this Agreement.

13.10. Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into the terms of this Agreement.

13.11. Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California.

13.12. Entire Agreement; Waivers and Amendments . This Agreement integrates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previou s agreements between the parties with respect to all o r part of the subject matter hereof, except as may be expressly provided herein. All waivers o f the provisions of this Agreement must be in writing and signed by an authorized representative of the part y to be charged, and all amendments hereto must be in writing and s igned by the appropriate representatives of both parties.

13.13. Counterparts. This Agreement may be executed in one or more counterpa rts, all of which taken together shall be deemed one original.

14. Authority. The persons executing this Agreement on behalf of the parties warrant the (I) party is duly organized and existing, (ii) they are duly a uthorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreemen t, such party is formally bound to the provisions of t his Agreement, and (iv) the entering into of this Agreement does not violate any provisions of any other agreement to which said party is bound. [SIGNATURES ON NEXT PAGE]
72 73
74 01225.0006/367559.3 A-1

EXHIBIT “A”

[attached]
75 Exhibit A

76 01225.0006/367559.3 B-1
EXHIBIT “B”

WORKS OF IMPROVEMENT
A. Removal of undesirable, dangerous and dead plant materials and roots.

B. All onsite and offsite grading as specified on the approved grading plan.

C. Relocation of all public utility struct ures as ne cessary to properly construct the required improvements.

D. Storm drain facilities as required and shown on the approved construction plans and in accordance with City Standards.

E. Sanitary sewers constructed as shown on the approved, engineered plans and in accordance with City Standards.

F. Water mains, valves, hydrants, services, meters and appurtenances to serve each lot as shown on the approved construction plans and in accordance wit h City Standards.

G. Underground installation of all electrical, telep hone, cable television and any other energy or communication lines that abut or are within the project site.

H. A street lighting system (City-owned) in accordance with City Standards.

I. Disposal of all rocks and debris located within any public right -of-way wi thin said development or on the boundary streets thereof.

J. Installation of concret e curbs, gutters, sidewalks, cross gutters, dr iveways and intersections as shown on approved construction pl ans and in accordance with City Standards.

K. Installation of asphalt concrete o r Portland Cement Concrete street pavement on base material as shown on approved construction plans and in accordance with City Standards.

L. Street signs at intersections per the City Standards.

M. Installation of approved landscaping (plants and materials).

N. Setting monuments as required by the State Code.

The Developer shall also perform all work and furnish all materials ne cessary, in t he opinion of the Director of Development Service s or his designee and on his order, to complete the improvements in accordance with the plans and specifications on file as hereinbefore specified, or any changes required or ordered by said Eng ineer which, in his opinion, are necessary or required to complete this work. 77 78
79 80
81 82
83 84
85 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

STREETS
EA Tree Removal 800.00 $ - $
50 CY Concrete Removal 325.00 $ 16,250.00$
340 CY AC Pavement Removal 100.00 $ 34,000.00$ CY Im ported Common Fill (Incl. Compaction) 34.00$ - $ 10825 SF Pre paration of Subgrade, Sidewalk and Paving 1.00$ 10,825.00$ 1030 LF PCC 8" Curb & 24" Gutter on 6" AB 26.00 $ 26,780.00$ LF PCC 6" Curb & 24" Gutter on 6" AB 24.00 $ - $ 3570 LF PCC Curb Onl y 20.00$ 71,400.00$
LF 8" A.C. Berm 20.00 $ - $
SF 8" PCC Cross Gutter on 6" AB 16.00 $ - $ 3100 SF 4" PCC Sidewalk 5.80 $ 17,980.00$ SF 6" PCC Thick Drive A pproach on 6" AB 12.50 $ - $ 1250 SF 8" PCC Thick Drive A pproach on 6" AB 15.00 $ 18,750.00$ LF 2" x 6" Redwood Header 7.50 $ - $
2 EA Street Si gn and Post 475.00 $ 950.00 $ 6 EA Traffic Si gn and Post 400.00 $ 2,400.00$ EA Reflector Si gn and Post 175.00 $ - $
EA Painted Le gend 6.50 $ - $
SF Prime or Tack Coat 0.08 $ - $
370 TON AC Variable - <300T 130.00 $ 48,100.00$ TON AC Variable - >300T 120.00 $ - $
270 TON CAB Variable - <300T 100.00 $ 27,000.00$ TON CAB Variable - >300T 90.00 $ - $
EngCostEstimate Page 1 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
86 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

STREETS
EA Adjust Sewer Manhole to Grade 950.00 $ - $ EA Adjust Sewer Cleanout to Grade 500.00 $ - $ EA Adjust Water Valve and Can to Grade 525.00 $ - $ 3 EA Street Li ght (City Owner) 7,700.00$ 23,100.00 $ EA Electrical Pedestal 6,500.00 $ - $
EA Lot Monument Settin g Fee 550.00 $ - $
1000 LF Sawcut A.C. 3.00 $ 3,000.00$
LF Sawcut Concrete 3.00 $ - $
12000 SF Cold Plane A.C. 2" Thick 0.28 $ 3,360.00$ LF Si gning & Striping for
1500 Arterial 19.00 $ 28,500.00$
Collector 13.00 $ - $
Local 7.00 $ - $
EA Traffic Si gnal (8 - Phase Controller) 350,000.00$ - $ 1 EA Modif y existing Traffic Signal per Quadrant 75,000.00 $ 75,000.00 $ LF Chain Link Fence
4 foot Residential Grade (Add $7.00/LF for Removal of
Existing Fence) 25.00$ - $
6 foot School fence (Add $9.00/LF for Removal of
Existing Fence) 35.00$ - $
EA Utilit y Poles
Transmission 11,500.00 $ - $
Distribution 8,000.00 $ - $
Service 3,000.00 $ - $
3 EA Street Li ght Removal 2,000.00 $ 6,000.00 $ EngCostEstimate Page 2 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
87 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

STREETS
765 SF
Landscape (Including shrubs, Hardscape, Irrigation, Ground Cover, Lighting, Installation Labor and Connection to
Existin
g Systems) 15.00$ 11,475.00$
LF
14 foot Median with Landscape, Irrigation, Lighting,
Hardscape, Curb, Gutter & Pavement 300.00 $ - $ Rail Road Crossing
LS
Safety Equipment (Complete Including Crossing Gates,
Signs, and Lights) 500,000.00$ - $
SF Track Crossin g (Concrete) 175.00$ - $
SF Approach 4.00 $ - $
2 EA S.W. Ram ps (A.D.A. Compliant) 4,000.00$ 8,000.00 $ 16 EA Traffic Si gnal Loops 600.00 $ 9,600.00$ 30 SF Gravel Surfacin g 25.00$ 750.00 $
1E A Local Depression 700.00$ 700.00 $

STREETS
STREET SUBTOTAL 443,920.00 $
LS Mobilzation (5% of Construction Cost) 5% 22,196.00$
LS Traffic Control (5% of Construction Cost) 5% 22,196.00$ LS Clear & Grub Site (5% of Construction Cost) 5% 22,196.00$ LS Excavation (Clean Material) (5% of Construction Cost) 5% 22,196.00$ GRAND TOTAL STREETS ONLY 532,704.00$
EngCostEstimate Page 3 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
88 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item
WATER
LF Trench Su pport/Shoring (6 foot depth) 15.00$ - $ CY Pi pe Bedding & Compaction (Imported) 90.00$ - $ LF
6" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration 80.00 $ - $ LF
8" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration. 100.00 $ - $ LF
12" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration 135.00 $ - $ LF
18" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration 175.00 $ - $ LF Removal, Dis posal of ACP and Backfill 150.00 $ - $ EA 6" Gate Valve 2,000.00 $ - $
EA 8" Gate Valve 2,600.00 $ - $
EA 12" Gate Valve 4,500.00 $ - $
EA 18" Gate Valve 7,500.00 $ - $
EA Fire H ydrant Assembly per City Std. 7,500.00 $ - $ EA Blow-off Assembl y 4" per City Std. 8,600.00 $ - $ EA 2" Air Relief Assembl y 4,500.00$ - $
EA 1 1/2" Water Service/Meter 3,500.00 $ - $
1 EA 2" Water Service/Meter 4,500.00 $ 4,500.00 $ WATER
WATER SUBTOTAL 4,500.00$
LS Mobilzation (5% of Construction Cost) 5% 225.00$
LS Traffic Control (5% of Construction Cost) 5% 225.00$ GRAND TOTAL WATER ONLY 4,950.00$
EngCostEstimate Page 4 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
89 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

RECYCLED WATER
LF Trench Su pport/Shoring (6 foot depth) 15.00$ - $ 70 CY Pi pe Bedding (Imported) 90.00$ 6,300.00$ LF
6" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration 80.00 $ - $ 210 LF
8" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration. 100.00 $ 21,000.00$ LF
12" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration 135.00 $ - $ LF
18" Pipe & Fittings Installed, including excavation, bedding, backfill and pavement restoration 175.00 $ - $ EA 6" Gate Valve 2,000.00 $ - $
EA 8" Gate Valve 2,600.00 $ - $
EA 12" Gate Valve 4,500.00 $ - $
EA 18" Gate Valve 7,500.00 $ - $
2E A F i r e H ydrant Assembly per City Std. 7,500.00 $ 15,000.00 $ EA Blow-off Assembl y 5" per City Std. 8,600.00 $ - $ EA 2" Air Relief Assembl y 4,500.00$ - $
EA 1" Water Service/Meter 3,500.00 $ - $
1 EA 2" Water Service/Meter 4,500.00 $ 4,500.00 $

RECYCLED WATER
RECYCLED WATER SUBTOTAL 46,800.00$
LS Mobilzation (5% of Construction Cost) 5% 2,340.00$
LS Traffic Control (5% of Construction Cost) 5% 2,340.00$ GRAND TOTAL RECYCLED WATER ONLY 51,480.00$
EngCostEstimate Page 5 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
90 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item
SEWER
LF Trench Su pport/Shoring 15.00$ - $
LF
4" V.C.P Installed, including excavation, bedding, backfill and pavement restoration $75.00 - $
LF
8" V.C.P Installed, including excavation, bedding, backfill and pavement restoration $93.00 - $
LF
10" V.C.P. Installed, including excavation, bedding, backfill and pavement restoration $103.00 - $
LF
12" V.C.P. Installed, including excavation, bedding, backfill and pavement restoration $123.00 - $
LF
15" V.C.P. Installed, including excavation, bedding, backfill and pavement restoration $143.00 - $
LF
18" V.C.P. Installed, including excavation, bedding, backfill and pavement restoration $163.00 - $
LF
21" V.C.P. Installed, including excavation, bedding, backfill and pavement restoration $193.00 - $
LF
24" V.C.P. Installed, including excavation, bedding, backfill and pavement restoration $208.00 - $
EA Sewer Saddle $450.00 - $
EA W yes 4" x 8" Typical $225.00 - $
EA 48" Sewer Manhole $4,700.00 - $
EA 60" Sewer Manhole $7,500.00 - $
EA Sewer Cleanout $1,800.00 - $
LF
6" PVC Installed, including excavation, bedding, backfill and pavement restoration 80.00 $ - $
SEWER
SEWER SUBTOTAL -$
LS Mobilization (5% of Construction Cost) 5% -$
LS Traffic Control (5% of Construction Cost) 5% -$
GRAND TOTAL SEWER ONLY -$
EngCostEstimate Page 6 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
91 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

STORM DRAIN
LF 24" X 36" C.M.P.A. (10 Gauge) 230.00$ - $ LF 27" x 43" C.M.P.A (10 Gauge) 250.00$ - $ EA Storm Drain Manhole #1 10,000.00 $ - $
EA Junction Structure #2 (24" or larger) 8,850.00$ - $ EA Junction Structure #4 (24" or smaller) 4,000.00$ - $ EA Outlet Structure 7,000.00 $ - $
1 EA Catch Basin 3.5' Width 7,200.00 $ 7,200.00 $ EA Catch Basin 7' Width/L.D. 7,900.00 $ - $
1 EA Catch Basin 10' Width/L.D. 9,950.00 $ 9,950.00 $ EA Catch Basin 14' Width/L.D. 11,000.00 $ - $
EA Catch Basin 21' Width/L.D. 13,000.00 $ - $
10 LF
18 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 200.00 $ 2,000.00$ LF
24 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 240.00 $ - $ LF
27 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 260.00 $ - $ LF
30 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 280.00 $ - $ LF
33 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 295.00 $ - $ LF
36 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 310.00 $ - $ LF
39 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 320.00 $ - $ LF
42 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 330.00 $ - $ LF
45 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 360.00 $ - $ LF
48 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 385.00 $ - $ LF
54 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 440.00 $ - $ LF
60 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 500.00 $ - $ EngCostEstimate Page 7 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
92 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

STORM DRAIN
LF
66 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 560.00 $ - $ LF
72 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 625.00 $ - $ LF
78 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 690.00 $ - $ LF
84 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 765.00 $ - $ LF
90 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 830.00 $ - $ LF
96 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 920.00 $ - $ LF
102 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 1,000.00 $ - $ LF
108 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 1,075.00 $ - $ LF
7' x 6' RCB Installed, including excavation, bedding, backfill and pavement restoration 700.00 $ - $
LF
7' x 8.5' RCB Installed, including excavation, bedding, backfill and pavement restoration 820.00 $ - $ LF
7' x 9.5' RCB Installed, including excavation, bedding, backfill and pavement restoration 870.00 $ - $ LF
8' x 11' RCB Installed, including excavation, bedding, backfill and pavement restoration 1,000.00 $ - $
LF
8' x 13' RCB Installed, including excavation, bedding, backfill and pavement restoration 1,100.00 $ - $
LF
9' x 9' RCB Installed, including excavation, bedding, backfill and pavement restoration 1,000.00 $ - $
LF
9' x 12' RCB Installed, including excavation, bedding, backfill and pavement restoration 1,100.00 $ - $
LF
4' x 6' RCB Installed, including excavation, bedding, backfill and pavement restoration 680.00 $ - $
EA Flow gard Catch Basin w/ Fossil Filter 1,500.00 $ - $ LF 8" PVC 8.00 $ - $
LF 6" PVC 6.00 $ - $
EA 18" x18" Brooks Catch basin 750.00 $ - $ EA 24"x18" Ri prap 100.00$ - $
LF 6" Perforated Pi pe4 . 0 0 $ - $
40 LF
12 inch RCP Installed, including excavation, bedding,
backfill and pavement restoration 180.00 $ 7,200.00$

STORM DRAIN
STORM DRAIN SUBTOTAL 26,350.00$
EngCostEstimate Page 8 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
93 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item
LS Mobilization (5% of Construction Cost) 5% 1,317.50$
LS Traffic Control (5% of Construction Cost) 5% 1,317.50$ GRAND TOTAL STORM DRAIN ONLY 28,985.00$
EngCostEstimate Page 9 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
94 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item
DIRECT COSTS GRAND TOTAL STREETS ONLY 532,704.00 $
GRAND TOTAL WATER ONLY 4,950.00$
GRAND TOTAL RECYCLED WATER ONLY 51,480.00$
GRAND TOTAL SEWER ONLY -$
GRAND TOTAL STORM DRAIN ONLY 28,985.00$

GRAND TOTAL (FOR PLAN CHECK & INSPECTION FEE
DETERMINATION) 618,119.00$
PROJECT ADDITIVES Project Contingencies 10% 61,811.90$
Construction Staking 3% 18,543.57$
Soils Testing 1% 6,181.19$
Material Testing 1% 6,181.19$
Construction Inspection 4.8% 29,669.71$
Contract Administration 1% 6,181.19$
GRAND TOTAL (FOR BOND AMOUNTS) 746,687.75$
EngCostEstimate Page 10 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
95 RESOLUTION NO 2020-080

EXHIBIT C

CITY OF CHINO

ENGINEERING COST ESTIMATE
PROJECT NO: SA 18-0047
LOCATION : NEC CENTRAL AVENUE AND EL PRADO ROAD - OFFSITE By: KAMAL McHANTAF
DATE: 10/16/2023
Quantity Unit Item Unit Total Cost
Price Per Item

BY ENGINEER
Prepared By: Kamal McHantaf
R.C.E. Number: 51050
Expiration: 9/30/2025
Place R.C.E. Stamp and Signature Here (required)

BY CITY
Faithful Performance Bond (100% of Construction Cost) 746,700.00$ Labor & Material Bond (50% of Construction Cost) 373,300.00$ Warranty Bond (10% of Construction Cost) 74,700.00$
EngCostEstimate Page 11 of 11 Effective Date: January 1, 2021

FOR BONDING PURPOSES ONLY
96 01225.0006/367559.3 C-1

EXHIBIT “C”
PL18-0047
KAYKEL INVESTMENT PROPERTIES, INC.

ENVIRONMENTAL WARRANTY
As a condition precedent to acceptance of the de dications and public improvements to be conveyed by the above -named Developer to the City of Chino for the above-referenced Subdivision, Developer hereby warrants to the City of Chino that:

1. Neither the prope rty to be dedicated nor Developer are in viola tion of any environmental law, and neither the property to be dedicated nor the Developer are subject to any existing, pending or threatened investigation by any federal, state or local governmental authority u nder or in connection with the environmental l aws relating to the property to be dedicated.

2. Neither Developer nor any other person with Developer’s permission to be upon t he propert y to be dedicated has used, generated, manufactured, produced, or released, on, under, or about the property to be de dicated, any Hazardous Substance except in compliance with all applicable environmental laws. For the purposes of this warranty, the term “Hazardous Substances ” shall mean any substance or material which is cap able of posing a risk of injury to health, saf ety or proper ty, including all those materials and substances designated as hazardous or toxic by any federal, state or local law, ordinance, rule, regulation or policy, including but not limited to, all of tho se materials and substances defined as “Toxic Materials” in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30, as the same shall be amended from time to time, or any other materials requiring remediation under federal, state or local laws, ordinances, rules, regulations or policies.

3. Developer has not cause d or permitted the release of and has no knowledge of the release or presenc e of, any Hazardous Substance on the property to be dedicated or the mi gration of any hazardous substance from or to any other pro perty adjacent to, or in the vicinity of, the property to be dedicated.

4. Developer’s prior and present use of the property to be dedicated has not resulted in the release of any Hazardous Substance on the property to be dedicated.

5. All persons executing this warranty hereby represent and warrant to the City of Chino, and Developer hereby represents and warrants, t hat the si gnators hereto have the legal power, right and authority to execute thi s warranty on behalf of the Developer and that the signators hereto have sufficient knowledge or expertise, either personally, through reasonable inspection and investigation of the pro perty, or through reasonable reliance upon the investigation and profes sional opinion of Developer’s environmental experts, to mak e the representations herein, and that no consent of any other party is 97 98
99 MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, INTERIM DIRECTOR OF DEVELOPMENT

SERVICES

SUBJECT
..titl e
Final Acceptance of Public Improvements - Parcel Map Nos. 19830 & 19831. ..end

RECOMMENDATION
1) Appropriate $628,000 from the unappropriated reserve of the Water Fund and schedule a corresponding year -end transfer in the same amount from The Preserve Water Source, Storage, and Distribution Development Impact Fee Fund 261; 2) accept the public improvements as complete for Parc el Map Nos. 19830 and 19831; 3) authorize release of the performance bond and initiate the warranty bond; and 4) authorize the City Manager to execute the necessary documents on behalf of the City.
..body

FISCAL IMPACT
Requires an appropriation in the amount of $628,000 from the unappropriated reserve of the Water Fund and schedule a corresponding year -end transfer in the same amount from The Preserve Water Source, Storage, and Distribution Development Impact Fee Fund (261 Fund).

Staff will continue to monitor the fund balance in The Preserve Water Source, Storage, and Distribution Development Impact Fee program and will make progress payments to the developer (when funds are available) until the terms of the agreement are fulfilled. Each progress pa yment requires an appropriation of funds and, therefore, each payment will be brought back to the City Council for approval.

Sufficient funds are included in the City’s Operating Budget to cover costs for maintenance of the accepted public improvements.

Revenue: 2611000-50000

Expenditure: 5207300-43640
100
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS - PARCEL MAP NOS. 19830 & 19831.

PAGE: 2

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CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS - PARCEL MAP NOS. 19830 & 19831.

PAGE: 3

BACKGROUND
On November 13, 2017, the Chino Planning Commission conditionally approved Parcel Map Nos. 19830 and 19831 to subdivide approximately ten (10) acres of land to construct a 186,618 square-foot industrial park consisting of four (4) light industrial buildings with six (6) units ranging in size from 21,828 to 46,652 square -feet within the Airport Related (AR) land -use designation of The Preserve Specific Plan. This development is located at 15723 -15739 Euclid Avenue (Exhibit A – Location Map).

The Conditions of Approval ("COA") required public improvements along the project frontage on Euclid Avenue. These public improvements include curb, gutter, sidewalk, streetlights, paving, traffic signal & interconnect, sewer and storm drain facilities. Additionally, the developer was required to install a potable water line and recycled water line along the developer’s frontage on Euclid Avenue. Initially the project was to construct the recycled water line in Euclid Avenue from the project’s southerly border to Kimball Avenue. However, to minimize the disturbance to Euclid Avenue, the pipeline was realigned to be constructed within an easement on the property and adjacent to the potable water alignment. The requirements made at the time of the tentative maps have been met with the execution of a Subdivision Improvement Agr eement by the City Council on September 17, 2019 to guarantee the construction of the public improvements required as a Condition of Approval of the development (Exhibit B – Subdivision Improvement Agreement).

ISSUES/ANALYSIS
The public improvements have been completed and constructed to the satisfaction of the City Engineer. The public improvements that are being accepted by the City of Chino include curb and gutter, sidewalk, concrete paving, streetlights, parkway landscaping, sewer, storm drain, domestic and recycled water, signing, striping, traffic controls, and drive approaches. All pedestrian improvements being accepted have been satisfactorily constructed to meet all applicable accessibility requirements.

This development project experienced s ignificant delays due to the pandemic (supply chain issues/increased costs), staff turnover, changes to the COA as it pertains to the domestic and recycled water facilities as discussed above, and the coordination with the California Department of Transpor tation (“Caltrans”) for improvements within the Euclid Avenue right of way (State Highway 83). The culmination of these circumstances delayed the project 18-months as the developer had to redesign the recycled water line and go through the dual plan check process between the City and Caltrans, which was timely and costly. Additionally, due to the timing constraints and mounting construction costs, City staff allowed the developer to move forward with an informal bidding process to hasten the construction of the water lines. The developer obtained competitive pricing and awarded to the lowest responsible bidder.

Additionally, some of the required public improvements are master -planned facilities and are included in the City’s Development Impact Fee (DIF) prog ram. These public improvements are eligible for DIF credit and reimbursement per the Chino Municipal Code, Chapter 3.45. The City Engineer reviewed the final accepted/approved "as -built" plans, specifications and supporting documentation provided by the de veloper to determine the eligible costs for reimbursement per the terms of the Construction Credit and Reimbursement Agreement approved between the City and Euclid/Kimball Partners, dated February 15, 2022, attached as Exhibit C. It was determined that $1,785,004.46 is eligible for credit/reimbursement. 102
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS - PARCEL MAP NOS. 19830 & 19831.

PAGE: 4

Staff analyzed The Preserve DIF fund balance and there is $628,000 available to make a partial payment to the developer. It should be noted, the developer did not receive DIF credit for its Water DIF obligat ion during construction. Therefore, there are zero credits to deduct from the actual validated costs. Staff will continue to monitor the fund balance in The Preserve Water Source, Storage, and Distribution Development Impact Fee program and will make progr ess payments to the developer (when funds are available) until the terms of the agreement are fulfilled. Each progress payment requires an appropriation of funds and, therefore, each payment will be brought back to the City Council for approval.

Security for a one -year warranty period has been submitted to the City. Under the warranty bond obligation, the developer will correct any defects found within one -year of City Council’s acceptance of the project. Also, upon completion and final acceptance, the public improvements shall become the sole exclusive property of the City to operate and maintain. Sufficient funds are included in the City’s Operating Budget to cover costs for maintenance of said facilities. The following maintenance obligations will commen ce following acceptance of the public improvements:

Domestic Water System: By the City
Recycled Water System: By the City
Potable Water System: By the City
Sewer System: By the City
Storm Drain: By the City
Public Street Sweeping: By the City
Streetlights: By the property owner
Landscaping: By the property owner

Attachments: Exhibit A - Location Map
Exhibit B - Fully Executed Subdivision Improvement Agreement & Bonds Exhibit C - Fully Executed Construction Credit & Reimbursement Agreement Exhibit D - Public Improvements Index Map

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K:\SND_LDEV\095979002 - KIMBALL & EUCLID - BOATMAN\DESIGN\EXHIBITS\2023.02.01 - INFRASTRUCTURE EXHIBIT\KIMBALL AND EUCLID INFRASTRUCTURE EXHIBIT.DWG3880 LEMON STREET, SUITE 420,RIVERSIDE, CA 92501PHONE: 951-546-9868WWW.KIMLEY-HORN.COM PM 19830 AND PM 198312/6/2023095979002JOB NO.:DATE:

THIS DOCUMENT, TOGETHER WITH THE CONCEPTS AND DESIGNS PRESENTED HEREIN, AS AN INSTRUMENT OF SERVICE, IS INTENDED ONLY FOR THE SPECIFIC PURPOSE AND CLIENT FOR WHICH IT WAS PREPARED. REUSE OF AND IMPROPER RELIANCE ON THIS DOCUMENT WITHOUT WRITTEN AUTHORIZATION AND ADAPTATION BY KIMLEY-HORN AND ASSOCIATES, INC. SHALL BE WITHOUT LIABILITY TO KIMLEY-HORN AND ASSOCIATES, INC. COPYRIGHT KIMLEY-HORN AND ASSOCIATES, INC., 2023 NORTH0GRAPHIC SCALE AS SHOWN601201OF1INFRASTRUCTURE EXHIBIT

MATCHLINE -SEE ABOVE RIGHT

MATCHLINE - SEE BELOW LEFT

EUCLID AVENUE

BUILDING ABUILDING B

BUILDING EBUILDING F

BUILDING CBUILDING D

EUCLID AVENUE

KIMBALL AVENUE
CONSTRUCTED PUBLICWATER LINE (TYP.)CONSTRUCTED PUBLICRECYCLED WATER LINE(TYP.) PARCEL MAP 19830PARCEL MAP 19831

NOT APART
LIST OF PUBLIC IMPROVEMENTS CONSTRUCTED BY DEVELOPER:1.PUBLIC STREET IMPROVEMENTS2.PUBLIC SIGNING AND MARKING IMPROVEMENTS3.PUBLIC TRAFFIC SIGNAL IMPROVEMENTS4.PUBLIC STORM DRAIN IMPROVEMENTS5.PUBLIC STREET LIGHT IMPROVEMENTS6.PUBLIC RECYCLED WATER IMPROVEMENTS7.PUBLIC DOMESTIC WATER IMPROVEMENTS8.PUBLIC LANDSCAPE AND IRRIGATION IMPROVEMENTS

COMMERCIALBUILDING

AMPMBUILDING

MCBRIDE RVSTORAGE ALEREPROPERTY
204

MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Chino Preserve Development Corporation - Subdivision Improvement Agreement Tract Map No.16420-5 (Block 3). ..end
..end

RECOMMENDATION
1) Approve Final Tract Map No. 16420 -5; 2) approve Subdivision Improvement Agreement and securities with Chino Preserve Development Corporation; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.
..body

FISCAL IMPACT
There is no direct fiscal impact to the City.

205
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: CHINO PRESERVE DEVELOPMENT CORPORATION - SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO.16420-5 (BLOCK 3).

PAGE: 2

Revenue: Click or tap here to enter text.

Expenditure:

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CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: CHINO PRESERVE DEVELOPMENT CORPORATION - SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO.16420-5 (BLOCK 3).

PAGE: 3

BACKGROUND
In 2008, the City’s Planning Commission approved an “A” level Master Site Approval and Tentative Tract Map No. 16420 to subdivide 522 acres of land generally located south of Pine Avenue, west of Hellman Avenue, and north and east of Chino Corona Road for what is known as the South of Pine area in The Preserve. The purpose of the original Master Site Approval was to establish large parcels, and phase major backbone street systems for both future residential and non-residential development within the master plan area.

On February 23, 2022, the City’s Planning Commission conditionally approved a Development Modification to the Master Site Approval and Tentative Tract Map No. 16420. The modification removed the phased development concept originally approved, divided the larger land area into smaller lots to be reconveyed for development, and established improvement areas for future development. It is important to note that the Developer Modification also incorporated conditions of approval for improvements along Pine Avenue for associated developments within the larger project area to help facilitate needed improvements to the area.

Subsequently, on September 19, 2022 , the City’s Planning Commission approved Master Site Approval PL21-0045 and Tentative Tract Map No. 20446 to create 114 numbered lots and 7 lettered lots to accommodate 114 single -family homes (known as “Block 3”). This project is generally located on the north side of Chino Corona Road between Main Street and Legacy Park Street as shown Exhibit A . Tract Map No. 16420 (as amended) will dedicate and require surety for portions of offsite improvements within the Tentative Tract Map No. 20446 a rea.

Furthermore, Tentative Tract Map No. 20446 is intended to be recorded in two phases. Each phase may be recorded independent of the other. As a result, Chino Preserve Development Corporation is requesting approval of Tract Map No.16420-5 Final Map, which subdivides 24.91 acres within Block 3 as shown on Exhibit B.

The Engineering Conditions of Approval (COA) for Block 3 require public improvements including, but not limited to curb, gutter, sidewalk, streetlights, asphalt concrete pavement, median/parkway landscape, sewer, water, recycled water and drainage improvements on East Preserve Loop, Chino Corona Road, and Legacy Park Street. To guarantee the completion of these public improvements, the developer is required to enter into a Subdivision Improvement Agreement and obtain the necessary securities for the improvements.

ISSUES/ANALYSIS
The requirements made at the time of tentative map approval have been met by the executio n of the Subdivision Improvement Agreement for Tract Map No. 16420-5 and by posting the necessary securities to guarantee the construction of public improvements conditioned for Block 3. The City Attorney reviewed and approved the Subdivision Improvement Agreement and respective securities, which is attached as Exhibit C. Therefore, it is staff’s recommendation to the City Council to approve Final Tract Map No. 16420-5.

Attachments: Exhibit A - Location Map Master Site Approval PL21-0045 Exhibit B - Location Map Tract Map No. 16420-5
Exhibit C - Subdivision Improvement Agreement Tract Map No. 16420-5

207

EXHIBIT A

LOCATION MAP
MSA / TTM 20446 BLOCK 3

Project Site
208
209

10-27-23

SUBDIVISION IMPROVEMENT AGREEMENT

by and between

CITY OF CHINO

and

CHINO PRESERVE DEVELOPMENT CORPORATION
210

10-27-23

SUBDIVISION IMPROVEMENT AGREEMENT BETWEEN

THE CITY OF CHINO
AND

CHINO PRESERVE DEVELOPMENT CORPORATION

Agreement Date: November 21, 2023

Subdivider Name: Chino Preserve Development Corporation

Subdivision Description: On September 19, 2022, the City’s Planning Commission approved Master Site Approval PL21 -0045 and Tentative Tract Map No. 20446 to create 114 numbered lots and 7 letter lots to accommodate 114 single-family homes (known as “Block 3”). This project is generally located on the north side of Chino Corona Road between Main Street and Legacy Park Street as shown Exhibit A. Tract Map No. 16420 (as amended) will dedicate and require surety for portions of offsite improvements within Tentative Tract Ma p No. 20446 area. Further, Tentative Tract Map No. 20446 is intended to be recorded in two phases. Each phase may be recorded independent of the other. As a result, Chino Preserve Development Corporation is requesting approval of Tract No.16420-5 Final Map, which subdivides 24.91 acres within Block 3 as shown on Exhibit A.

Tentative Map No.: 16420-5

Estimated Total Cost of Improvements: $3,254,800.00

Estimated Total Cost of Monumentation : $62,135.00 (based upon the plans, including individual lots, subdivision boundary and public improvements).

Security:

Bond No.: ____________________

Surety: ___________________

211

10-27-23
Designees for the Service of Written Notice:

CITY: SUBDIVIDER:

Jesus Plasencia
Assistant City Engineer

13220 Central Avenue
Chino, CA 91710

(909) 334-3417
[email protected]

Chino Preserve Development Corporation

c/o Darius Fatakia
Lewis Management Corporation
1156 N. Mountain Avenue
Upland, CA 91786

(909) 579-1229
[email protected]

CITY PROJECT INSPECTOR

Isaac Ortega
Permit & Inspection Supervisor

13220 Central Avenue
Chino, CA 91710

(909) 334-3501
[email protected]

212

10-27-23

TABLE OF CONTENTS

1. Construction Obligations

1.1 Works of Improvement

1.2 Other Obligations Referenced in Conditions of Tentative Map Approval

1.3 Intent of Plans

1.4 Survey Monuments

1.5 Performance of Work

1.6 Changes in the Work

1.7 Defective Work

1.8 No Warranty by City

1.9 Authority of the City Engineer

1.10 Documents Available at the Site

1.11 Inspection

1.12 Compliance with Law; Applicable Standards for Improvements

1.13 Suspension of Work

1.14 Erosion and Dust Control and Environmental Mitigation

1.15 Final Acceptance of Works of Improvement

1.16 Vesting of Ownership

1.17 Subdivider’s Obligation to Warn Public During Construction

1.18 Injury to Public Improvements, Public Property or Public Utility

2. Time for Performance

2.1 Commencement and Completion Dates

2.2 Phasing Requirements

2.3 Force Majeure

2.4 Continuous Work

2.5 Reversion to Acreage

3. Labor

3.1 Labor Standards

3.2 Nondiscrimination

3.3 Licensed Contractors

3.4 Workers’ Compensation

4. Security

4.1 Required Security

4.2 Form of Security Instruments

4.3 Subdivider’s Liability

4.4 Letters of Credit

4.5 Release of Security Instruments

5. Cost of Construction and Provision of Inspection Service 213

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5.1 Subdivider Responsible for All Related Costs of Construction

5.2 Payment to City for Cost of Related Inspection and Engineering Services

5.3 Payment of Development Impact Fees

6. Acceptance of Offers of Dedication

7. Warranty of Work

8. Default

8.1 Default by Subdivider

8.2 Remedies

8.3 Remedies Not Exclusive

8.4 Attorney’s Fees and Costs

8.5 Waiver

9. Indemnity/Hold Harmless

10. Subdivider’s Indemnity of Project Approval

11. Insurance Requirements

12. Environmental Warranty

13. General Provisions

13.1 Successors and Assigns

13.2 No Third-Party Beneficiaries

13.3 No Vesting Rights

13.4 Subdivider is Not Agent of City

13.5 Time of the Essence

13.6 Notices

13.7 No Apportionment

13.8 Severability

13.9 Captions

13.10 Incorporation of Recitals

13.11 Interpretation

13.12 Entire Agreement; Waivers and Amendments

13.13 Counterparts

14. Authority

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1 SUBDIVISION IMPROVEMENT AGREEMENT
THIS SUBDIVISION IMPROVEMENT AGREEMENT (this “Agreement”) is entered into this 21st day of November 2023, by and between the CITY OF CHINO, a municipal corporation, organized and existing in the County of San Bernardino, under and by virtue of the laws of the State of California, (“CITY”), and Chino Preserve Development Corporation , a California corporation (Subdivider”).

RECITALS
A. Subdivider is the owner of and has obtained approval of a subdivision map identified as Tentative Tract Map No. 16420-5, (the “Map”), located in the City of Chino, County of San Bernardino, State of California (the “Property”), as described on Exhibit “A”. The Map requires Subdivider to comply with certain conditions of approval for the development of the Property (the “Conditions”) as described on Exhibit “B”.

B. Pursuant to the Conditions, Subdivider, by the Map, has offere d for dedication to City for public use of the streets and easements shown on the Map. City desires to accept the streets and easements shown on the Map for public use, and certain other improvements described in this Agreement.

C. Subdivider has delivered to City, and City has approved, plans and specifications and related documents for certain “Works of Improvement ” (as hereinafter defined) which are required to be constructed and installed in order to accommodate the development of the Property.

D. Subdivider’s agreement to construct and install the Works of Improvement pursuant to this Agreement and its offer of dedication of the streets, easements and other improvements and facilities, as shown on the Map, are a material consideration to City in approving Final Map No. 16420-5 for the Property and permitting development of the Property to proceed.

COVENANTS
Based upon the foregoing Recitals which are incorporated herein by reference and in consideration of City ’s approving the Map for the Property and permitting development of the Property to proceed, Subdivider agrees to timely perform all of its obligations as set forth herein.

1. Construction Obligations.

1.1. Works of Improvement . Subdivider agrees, at its sole cost and expense, to construct or install, or cause to be constructed or installed the street, drainage, domestic water, sanitary sewer, street lighting, landscaping, utility, and other improvements more fully described in Exhibit “B” attached hereto (the “Works of Improvement”), as the same may be supplemented and revised from time to time as set forth in this Agreement (said plans and specifications, together with all related documents, the “Plans”). The estimated construction cost for the Works of Improvement is $3,254,800.00.
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2 1.2. Other Obligations Referenced in Conditions of Tentative Map Approval. In addition to the foregoing, Subdivider shall satisfy all of the Conditions on the Map for the Property. The Conditions associated with the Map are included in Exhibit “B” attached hereto.

1.3. Intent of Plans. The intent of the Plans referenced in Section 1.1 is to prescribe a complete work of improvement which Subdivider shall perform or cause to be performed in a manner acceptable to the City Engineer, (or designee), and in full compliance with all codes and the terms of this Agreement. Subdivider shall complete a functional or operable improvement or facility, even though the Plans may not specifically call out all items of work required for Subdivider’s contractor to complete its tasks, incidental appurtenances, materials, and the like.

If any omissions are made or information necessary to carry out the full intent and meaning of the Plans, Subdivider or its contractor shall immediately notify its design engineer who will seek approval of the City Engineer for furnishing of detailed instructions. In the event of any doubt or question arising regarding the true meaning of any of the Plans, reference shall be made to the City Engineer whose decision thereon shall be final.

Subdivider r ecognizes that the Plan s consist of general drawings. All authorized alterations affecting the requirements and information given on the Plans shall be in writing and approved by the City Engineer. The Plans shall be supplemented by such working or shop drawings as are necessary to adequately control the work. Without the City Engineer ’s prior written approval, no change shall be made by Subdivider or its contractor to any plan, specification, or working or shop drawing after it has been stamped as approved.

1.4. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments as shown on Final Map No. 16420-5 in accordance with the provisions of the State Subdivision Map Act and the Subdivision Ordinance of the City of Chino. Subdivider shall provide security for such obligation as provided in Section 4.1(a)(iii) and, after setting the monuments, Subdivider shal l furnish the City Engineer written notice of the setting of said monuments and written proof of having paid the engineer or surveyor for the setting of said monuments.

1.5. Performance of Work . Subdivider shall furnish or cause to be furnished all materials, labor, tools, equipment, utilities, transportation, and incidentals required to perform Subdivider’s obligations under this Agreement.

1.6. Changes in the Work. The City Engineer, without invalidating this Agreement and without notification to any of the sureties or financial institutions referenced in Paragraph 4, may order extra work or may make changes by altering or deleting any portion of the Works of Improvement as specified herein or as deemed necessary by the City Engineer as determined necessary to accomplish the purposes of this Agreement and to protect the public health, safety, or welfare. The City Engineer shall notify Subdivider or its contractor in writing (by Correction Notice) at the time a determination has been made to require chan ges in the work. No field changes performed or proposed by Subdivider or its contractor shall be binding on City unless approved in writing by the City Engineer. The City and Subdivider may mutually agree upon changes to the Works of Improvement, subject to the security requirements in Section 4. 216

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3 1.7. Defective Work. Subdivider shall cause its contractor to repair, reconstruct, replace, or otherwise make acceptable any work found by the City Engineer to be defective.

1.8. No Warranty by City. The Plans for the Works of Improvement have been prepared by or on behalf of Subdivider or its consultants or contractors, and City makes no representation or warranty, express or implied, to Subdivider or to any other person regarding the adequacy of the Plans or related documents.

1.9. Authority of the City Engineer . In addition to the authority granted to the City Engineer elsewhere in this Agreement, the City Engineer shall have the authority to decide all questions which may arise as to the quality and acceptability of material s furnished and work performed, and all questions as to the satisfactory and acceptable fulfillment of the terms of this Agreement by Subdivider and its contractor.

1.10. Documents Available at the Site . Subdivider shall cause its contractor to keep a copy of all approved Plans at the job site and shall give access thereto to the City ’s inspectors and engineers at all times.

1.11. Inspection. Subdivider shall have an authorized representative on the job site at all times during which work is being done who has full a uthority to act for Subdivider, or its design engineer, and Subdivider’s contractor(s) regarding the Works of Improvement. Subdivider shall cause its contractor to furnish the City with every reasonable facility for ascertaining whether or not the Works of Improvement as performed are in accordance with the requirements and intent of this Agreement, including the Plans. If the City inspector requests it, the Subdivider’s contractor, at any time before acceptance of the Works of Improvement, shall remove or uncover such portions of the finished work as may be directed which have not previously been inspected.

After examination, the Subdivider’s contractor shall restore said portions of the work to the standards required hereunder. Inspection or supervision by the City Engineer (or designee) shall not be considered as direct control of the individual workmen on the job site. City’s inspectors shall have the authority to stop any and all work not in accordance with the requirements contained or referenced in this Agreement.

The inspection of the work by City shall not relieve Subdivider or its contractor of any obligations to fulfill this Agreement as herein provided, and unsuitable materials or work may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted.

1.12. Compliance with Law; Applicable Standards for Improvements. In addition to the express provisions of this Agreement and the Plans, Subdivider shall cause construction of the Works of Improvement to be completed in accordance with all other applicable federal, state, and local laws, ordinances, rules and regulations. In addition, without limiting the foregoing, the Subdivider shall, at its expense, obtain and comply with the conditions of all necessary permits and licenses for the construction of the Works of Improvement. The Subdivider shall also give all necessary notices and pay all fees and taxes as required by law.

Subdivider sha ll construct the Works of I mprovements in accordance with the City standards in effect at the time of the adoption of the Approved Tentative Map. City reserves the 217

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4 right to protect the public safety or welfare or comply with applicable Federal or State law or City zoning ordinances.

1.13. Suspension of Work. The City Engineer shall have authority to order suspension of the work for failure of the Subdivider’s contractor to comply with law pursuant to Section 1.12.

In case of suspension of work for any cause whatsoever, Subdivider and its contractor shall be responsible for all materials and shall store them properly if necessary and shall provide suitable interim drainage and/or dust control measures, and erect temporary structures where necessary.

1.14. Erosion and Dust Control and Environmental Mitigation . All grading, landscaping, and construction activities shall be performed in a manner to control erosion and prevent flooding problems. The City Engine er shall have the authority to require erosion plans to prescribe reasonable controls on the method, manner, and time of grading, landscaping, and construction activities to prevent nuisances to surrounding properties. Plans shall include without limitati on temporary drainage and erosion control requirements, dust control procedures, restrictions on truck and other construction traffic routes, noise abatement procedures, storage of materials and equipment, removal of garbage, trash, and refuse, securing th e job site to prevent injury, and similar matters.

1.15. Final Acceptance of Works of Improvement . After Subdivider ’s contractor has completed all of the Works of Improvement, Subdivider shall then request a final inspection of the work. If items are found by the City’s inspectors to be incomplete or not in compliance with this Agreement or any of the requirements contained or referenced herein, City will inform the Subdivider or its contractor of such items. After the Subdivider’s contractor has completed these items, the procedure shall then be the same as specified above for the Subdivider’s contractor’s initial request for final inspection. If items are found by City’s inspectors to be incomplete or not in compliance after two (2) “final” inspections, the City may require the Subdivider or its contractor, as a condition to performing further field inspections, to submit in writing a detailed statement of the work performed subsequent to the date of the previous inspection which was found to be incomplete or not in compliance at that time. Subdivider shall be responsible for payment to City Engineer of re-inspection fees in the amount necessary to cover the City’s costs for additional final inspections, as determined by the City Engineer.

No inspection or acce ptance pertaining to specific parts of the Works of Improvement shall be construed as final acceptance of any part until the overall final acceptance by the City Engineer is made. The City Engineer shall make a certification of completion and acceptance on the Works of Improvement by recordation of a Notice of Acceptance on behalf of the City.

Final acceptance shall not constitute a waiver by the City Engineer of defective work subsequently discovered.

The date on which the Works of Improvement will be considered as complete shall be the date of the Notice of Acceptance.

1.16. Vesting of Ownership. Upon recordation of the Notice of Acceptance, ownership of the Works of Improvement shall vest in the City.
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5 1.17. Subdivider’s Obligation to Warn Public During Construction. Until recordation of the Notice of Acceptance , Subdivider shall give good and adequate warning to the public of any dangerous condition of the Works of Improvements, and shall take reasonable actions to protect the public from such dangerous condition. Until re cordation of the Notice of Acceptance, Subdivider shall provide forty-eight (48) hours’ advance written notice to all neighboring property owners and tenants affected by Subdivider’s operations or construction of the hours, dates and duration of any planned construction activities.

1.18. Injury to Public Improvements, Public Property or Public Utility. Until recordation of the Notice of Acceptance of the Works of Improvement, Subdivider assumes responsibility for the care and maintenance of, and any damage to, the Works of Improvements. Subdivider shall replace or repair all Works of Improvements, public property, public utility facilities, and surveying or subdivision monuments and benchmarks which are destroyed or damaged for any reason, regardless whether resulting from the acts of the Subdivider, prior to the recordation of the Notice of Acceptance. Prior to the recordation of the Notice of Acceptance, Subdivider shall bear the entire cost of such replacement or repairs regardless of what entity owns the underlying property.

Any repair or replacement shall be to the reasonable satisfaction, and subject to the reasonable approval, of the City Engineer.

2. Time for Performance.

2.1. Commencement and Completion Dates . Subject to Section s 2.2 and 2.3 below, Subdivider shall (i) commence with construction and installation of the Works of Improvement thirty (30) days following City’s approval of the Plans (“Commencement Date”); and (ii) complete or cause to be completed all of the Works of Improvement within two (2) years after the Commencement Date. In the event good cause exists as determined by the City Engineer, the time for commencement of construction or completion of the Works of Improvement hereunder may be extended by up to three (3) additional one-year periods. Extensions shall be executed in writing by the City Engineer. The City Engineer in his or her sole discretion determines whether or not t he Subdivider has established good cause for an extension. As a condition of such extension, the City Engineer may require Subdivider to furnish new security guaranteeing performance of this Agreement, as extended, in an increased amount to compensate for any increase in construction costs as determined by the City Engineer. If Subdivider requests and is granted an extension of time for completion of the improvements, City may apply the standards in effect at the time of the extension.

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6 are satisfied. Prior to issuance of building permits, Subdivider shall provide satisfactory evidence that all applicable requirements that are a condition to issuance of building permits have been satisfied. Such requirements may include the payment of fees, construction of improvements, or both. Final inspections or issuance of Certificates of Occupancy may be withheld from the Subdivider by t he City, if, upon a determination by the City Engineer, completion of specific Works of Improvements or other requirements associated with the development of the Property have not been completed to the City Engineer’s satisfaction.

2.3. Force Majeure. Notwith standing the provisions of Section 2.1, Subdivider ’s time for commencement and completion of the Works of Improvement shall be extended for the period of any enforced delay caused due to circumstances beyond the control and without the fault of Subdivider, including to the extent applicable adverse weather conditions, flood, earthquakes, strike s, lockouts, epidemics, pandemics and other public health emergencies, construction-industry-wide inability to procure labor or materials in the region in which the Property is located, construction-industry-wide inability to procure equipment or supplies on the open market in the region in which the Property is located, unusual delays resulting from transportation, laws, rules, regulations or orders of a public agency or other public agency action or inaction (including City), , acts or failures to act of a public agency (including City), changes to the scope of work required by City, and similar causes; provided, however, that the period of any enforced delay hereunder shall not include any period longer than five (5) days prior to City’s receipt of a written notice from Subdivider or its contractor detailing the grounds for Subdivider’s claim to a right to extend its time for performance hereunder. The City Engineer shall evaluate all claims to Force Majeure and make a reasonable determination regarding the length of any extension of time for commencement and/or completion of the Works of Improvement and the City Engineer’s decision shall be final.

2.4. Continuous Work . After commencement of construction of the Works of Improvement (or separate portion thereof), Subdivider shall cause such work to be diligently pursued to completion and shall not abandon the work for a consecutiv e period or more than thirty (30) days, events of Force Majeure excepted.

2.5. Reversion to Acreage. In addition to whatever other rights City may have due to Subdivider’s failure to timely perform its obligations hereunder, Subdivider recognizes that City reserves the right to revert the Property to acreage subject to the limitations and requirements set forth in California Government Code Section 66499.11 through Section 66499.20.1.

3. Labor.

3.1. Labor Standards. This Agreement is subject to, and Subdivider agrees to comply with, all of the applicable provisions of the Labor Code including, but not limited to, the wage and hour, prevailing wage, worker compensation, and various other labor requirements in Division 2, Part 7, Chapter 1, including section 1720 to 1740, 1770 to 1780, 1810 to 1815, 1860 to 1861, which provisions are specifically incorporated herein by reference as set forth herein in their entirety. Subdivider shall expressly require compliance with the provisions of this Section in all agreements wi th contractors and subcontractors for the performance of the Works of Improvement.
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7 3.2. Nondiscrimination. In accordance with the California Fair Employment and Housing Act ( “FEHA”), California Government Code Section 12940 et seq. , Subdivider agrees that Subdivider, its agents, employees, contractors, and subcontractor performing any of the Works of Improvement shall not discriminate, in any way, against any person on the basis of race, ethnicity, religious creed, color, national origin, ancestry, physical disa bility, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status . Subdivider shall expressly require compliance with the provisions o f this Section in all agreements with contractors and subcontractors for the performance of this Agreement.

3.3. Licensed Contractors. Subdivider shall cause all of the Works of Improvement to be constructed by contractors and subcontractors with valid Califor nia Contractors’ licenses for the type of work being performed. All of Subdivider’s contractors and subcontractors shall obtain a valid City of Chino business license prior to performing any work pursuant to this Agreement.

Subdivider shall provide the City Engineer with a list of all of its contractors and subcontractors prior to initiating any work, and all valid Contractor ’s licenses and business licenses issued thereto as a condition of constructing the Works of Improvements.

3.4. Worker’s Compensation . Subdivider shall cause every contractor and subcontractor performing any of the Works of Improvement to carry Workers ’ Compensation Insurance as required by the Labor Code of the State of California and shall cause each such contractor and subcontractor to submit to City a Certificate of Insurance verifying such coverage prior to such contractor or subcontractor entering onto the job site.

4. Security.

4.1. Required Security.
(a) At the time Subdivider executes this Agreement, Subdivider shall furnish to City the follow ing bonds, letters of credit, instruments of credit (assignment of deposit account) or other security acceptable to City in its sole and absolute discretion and satisfying the requirements of the applicable provisions of this Section 4 below (hereinafter “Security Instruments”):
(i) A Security Instrument securing Subdivider ’s faithful performance of all of the Works of Improvement ( “Faithful Performance Security Instrument”), in the amount of $ 3,254,800.00 equal to 100% of the estimated construction cost referenced in Section 1.1.
(ii) A Security Instrument guaranteeing the payment to contractors, subcontractors, and other persons furnishing labor, materials, and/or equipment (“Labor and Materials Security Instrument ”) with respect to the Works of Improvement in an amount equal to $1,627,400.00 equal to 50% of the estimated construction cost referenced in Section 1.1.
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8 (iii) A Security Instrument guaranteeing the payment of the cost of setting monuments as required in Section 1.4 in the amount of $62,135.00 equal to 100% of the cost thereof.

This Agreement shall not be effective for any purpose until such Security Instruments are supplied to and approved by City in accordance herewith. (b) Required Security Instrument for Maintenance and Warranty . Prior to the City Council ’s acceptance of the Works of Improvement and recordation of a Notice of Completion, Subdivider shall deliver a Security Instrument warranting the work accepted for a period of one (1) year following said acceptance (“Maintenance and Warranty Security Instrument”), in the amount of $325,500.00 equal to 10% of the estimated construction cost set forth in Section 1.1 or a suitable amount determined by the City Engineer.

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9 instituted and maintained) in the City of Chino, State of California (and the Security Instrument shall so provide).
(ii) Each Security Instrument shall have a minimum term of one (1) year after the deadline for Subdivider ’s completing the Works of Improvement, in accordance with Section 2.1 (other than Instruments of Credit, which shall have no defined term or expiration date).
(iii) Each Security Instrument shall provide that changes may be made in the Works of Improvement pursuant to the terms of this Agreement without notice to any issuer or surety and without affecting the obligations under such Security Instrument.
(iv) If the Subdivider seeks to replace any security with another security, the replacement shall: (1) comply with all the requirements for security in this Agreement; (2) be provided by the Subdivider to the City Engineer; and (3) upon its written acceptance by the City Engineer, be deemed a part of this Agreement. Upon the City Engineer’s acceptance of a replacement security, the former security shall be released by the City.

4.3. Subdivider’s Liability. While no acti on of Subdivider shall be required in order for City to realize on its security under any Security Instrument, Subdivider agrees to cooperate with City to facilitate City’s realization under any Security Instrument, and to take no action to prevent City from such realization of any Security Instrument. Notwithstanding the giving of any Security Instrument or the subsequent expiration of any Security Instrument or any failure by any surety or financial institution to perform its obligations with respect ther eto, Subdivider shall be personally liable for performance under this Agreement and for payment of the cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (10) days after written demand therefor, deliver to City such substitute security as City shall require satisfying the requirements in this Section 4.

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10 control of the City, with no interest accruing thereon for the benefit of the Subdivider. If the City elects to hold the funds in an account pursuant to the foregoing, City may thereafter at any time elect instead to apply such funds as provided in the foregoing. Subdivider agrees and hereby grants City a security interest in such account to the extent required for City to realize on its interests therein, and agrees to execute and deliver to City any other documents requested by City in order to ev idence the creation and perfection of City ’s security interest in such account.

4.5. Release of Security Instruments . The City shall release all Security Instruments consistent with Government Code Sections 66499.7 and 66499.8 , Section 19.09.010 of the Chino Municipal Code, and as follows:
(a) City shall release the Faithful Performance Security Instrument and Labor and Materials Security Instrument when all of the following have occurred:
(i) Subdivider has made written request for release and provided evidence of satisfaction of all other requirements in this Section 4.5; (ii) the Works of Improvement have been accepted;
(iii) Subdivider has delivered the Maintenance and Warranty Security Instrument; and
(iv) after passage of the time within which lien claims are required to be made pursuant to Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code of the State of California. If lien claims have been timely filed, City shall hold the Labor and Materials Security Instrument until such claims have been resolved, Subdivider has provided a statutory bond, or otherwise as required by applicable law. (b) City shall release the Maintenance and Warranty Security Instrument upon Subdivider’s written request upon the expiration of the warranty period, and settlement of any claims filed during the warranty period. (c) The City may retain from any security released, an amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorney’s fees.

5. Cost of Construction and Provision of Inspection Service.

5.1. Subdivider Responsible for All Costs of Construction . Subdivider shall be responsible for payment of all costs incurred for construction and installation of the Works of Improvement. In the event Subdivider is entitled to reimbursement from City for any of the Works of Improvement, such reimbursement shall be subject to a separate Reimbursement Agreement to be entered into between Subdivider and City prior to construction of the Works of Improvement.
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11 5.2. Payment to City for Cost of Related Inspection and Engineering Services .

Subdivider shall compensate City for all of City ’s costs reasonably incurred in having its authorized representative make the usual and customary inspecti ons of the Works of Improvement. In addition, Subdivider shall compensate City for all design, plan check, evaluating any proposed or agreed-upon changes in the work. The procedures for deposit and payment of such fees shall be as established by the City. In no event shall Subdivider be entitled to additional inspections or a final inspection and acceptance of any of the Works of Improvement until all City fees and charges have been fully paid, including without limitation, charges for applicable penalties and additional required inspections.

5.3. Payment of Development Impact Fees . Unless otherwise addressed in the Development Agreement, as amended, between Subdivider, its affiliates, Chino Holding Company, LLC and Chino Development Corporation , and the City, or in a Construction Credit and Reimbursement Agreement or other agreement among any of the foregoing entities and the City, Subdivider shall pay Development Impact Fees pursuant to and in accordance with Chino Municipal Code Chapter 3.40 or 3.45, as applicable.

6. Acceptance of Offers of Dedication. The City Council shall pass as appropriate resolution or resolutions accepting all offers of dedication shown on the Map for the Property, with acceptance to become effective upon completion and acceptance by Cit y of the Works of Improvement. Such resolution(s) shall authorize the City Clerk to execute the Certificate made a part of the Map regarding said acceptance of the offer of dedication.

7. Warranty of Work. Subdivider shall guarantee all Works of Improvement against defective materials and workmanship for a period of one (1) year from the date of final acceptance. If any of the Works of Improvement should fail or prove defective within said one (1) year period due to any reason other than improper maintenanc e, or if any settlement of fill or backfill occurs, or should any portion of the Works of Improvement fail to fulfill any requirements of the Plans, Subdivider, within fifteen (15) days after written notice of such defects, or within such shorter time as may reasonably be determined by the City in the event of emergency, shall commence to repair or replace the same together with any other work which may be damaged or displaced in so doing. Should Subdivider fail to remedy defective material and/or workmans hip or make replacements or repairs within the period of time set forth above, City may make such repairs and replacements and the actual cost of the required labor and materials shall be chargeable to and payable by Subdivider. The warranty provided herei n shall not be in lieu of, but shall be in addition to, any warranties or other obligations otherwise imposed by law.

8. Default.

8.1. Default by Subdivider. Default by Subdivider shall include, but not be limited to:
(a) Subdivider’s failure to timely commence constr uction of Works of Improvement under this Agreement;
(b) Subdivider’s failure to timely complete construction of the Works of Improvement;
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12 (c) Subdivider’s failure to perform substantial construction work for a period for 20 consecutive calendar days after commencement of the work; (d) Subdivider’s insolvency, appointment of a receiver, or the filing of any petition in bankruptcy, either voluntary or involuntary, which Subdivider fails to discharge within 30 days;
(e) The commencement of a foreclosure action against the su bdivision or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (f) Subdivider’s failure to perform any other obligation under this Agreement.

8.2. Remedies. The City reserves all remedies available to it at law or in equity for a default or breach of Subdivider’s obligations under this Agreement. The City shall have the right, subject to this Section, to draw upon or use the appropriate security to mitigate the City ’s damages in the event of default by Subdivider. The City’s right to draw upon or use the security is in addition to any other remedy available to City. The parties acknowledge that the estimated costs and security amounts may not reflect the actual cost of construction of the improvements and, therefore, City ’s damages for Subdivider’s default shall be measured by the cost of completing the required improvements. The City may use the sums provided by the securities for the completion of the Works of Improvement in accordance with the plans. In the event the Subdivider fails to cure any default under this Agreement within 20 days after the City mails a notice of such default to the Subdivider and the Subdivider ’s surety, Subdivider authorizes the City to perform the obligation for which Subdivider is in default and agrees to pay the entire cost of such performance by the City. The City may take over the work and complete the Works of Improvement, by contract or by any other method City deems appropriate, at the expense of the Subdivider. In such event, City, without liability for doing so, may complete the Works of Improvement using any of Subdivider’s materials, appliances, plans and other property that are at the work site and that are necessary to complete the Works of Improvement.

8.3. Remedies Not Exclusive . In any case where t his Agreement provides a specific remedy to City for a default by Subdivider hereunder, the Subdivider agrees that the choice of remedy or remedies for Subdivider’s breach shall be in the discretion of the City. Additionally, any remedy specifically provided in this Agreement shall be in addition to, and not exclusive of, City’s right to pursue any other administrative, legal, or equitable remedy to which it may by entitled.

8.4. Attorney’s Fees and Costs . In the event that Subdivider fails to perform any obligation under this Agreement, Subdivider agrees to pay all costs and expenses incurred by City in securing performance of such obligations, including costs of suit and reasonable attorney’s fees. In the event of any dispute arising out of Subdivider ’s perform ance of its obligations under this Agreement or under any of the Security Instruments referenced herein, the prevailing party in such action, in addition to any other relief which may be granted, shall be entitled to recover its reasonable attorney’s fees and costs. Such attorney’s fees and cost shall include fees and costs on any appeal, and in addition a party entitled to attorney’s fees and costs shall be entitled to all other reasonable costs incurred in investigating such action, taking depositions and discovery, retaining expert witnesses, and all other necessary and related costs 226

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13 with respect to the litigation. All such fees and costs shall be deemed to have accrued on commencement of the action and shall be enforceable whether or not the action is p rosecuted to judgment.

8.5. Waiver. No waiver by the City of any breach or default by the Subdivider shall be considered valid unless in writing, and no such waiver by the City shall be deemed a waiver of any subsequent breach or default by the Subdivider.

Subdivider further agrees to protect, defend, indemnify and hold harmless City, its officials, boards and commissions, and members thereof, agents, and employees from any and all claims, demands, causes of action, liability or loss o f any sort, because of, or arising out of, acts or omissions of Subdivider, its agents, employees, contractors and subcontractors in the performance of this Agreement, except for such claims, demands, causes of action, liability or loss arising out of the active negligence or willful misconduct of the City, its officials, boards, commissions, the members thereof, agents and employees, including all claims, demands, causes of action, liability or loss because of or arising out of, in whole or in part, the design or construction of the improvement s. This indemnification and agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of said Subdivision, and the public improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design and construction of public drainage systems, streets and other improvements. City shall not be responsible for the design or construction of the property to be dedicated or the improvements pursuant to the approved improvement plans or map, regardless of any negligent action or inaction taken by the City in approving the plans or map, unless the particular improvement design was specifically required by City over written objection by Subdivider submitted to the City Engineer bef ore approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design.

For a period of one (1) year a fter the City’s a cceptance of the improvements , the Subdivider shall remain obligated to eliminate any latent defect in design or dangerous condition caused by the design or construction defect ; however, Subdivider shall not be responsible for routine maintenance. It is the intent of this section that , subject to applicable law, including statutes of limitations, Subdivider shall be responsible for all liability for design and construction of the improvements installed or work done pursuant to this Agreement and that City shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving or reviewing any work or construction. The improvement security shall not be required to cover the provisions of this Paragraph.

In the event of a dispute regarding this Section, the non -prevailing party shall reimburse the prevailing party for all costs and expenses, including but not limited to fees and charges of architects, engineers, attorneys, and other professionals, and court costs, incurred by the prevailing party in enforcing this Section.
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14 10. Subdivider’s Indemnity of Project Approval. Subdivider shall defend, indemnify, and hold harmless the City and its agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void, or annul, an approval of the City, advisory agency, appeal board, or legislative body concerning the Subdivision. The City shall promptly notify the Subdivider of any claim, action, or proceeding and cooperate fully in the defense of any such claim, action, or proceeding. In the event City fails to promptly notify the Subdivider of any claim, action, or proceeding, or if the City fails to cooperate in the defense, the Subdivider shall not thereafter be responsible to defend, indemnify, or hold harmless the City. Nothing in this Section prohibits the City from participating in the defense of any claim, action, or proceeding if City bears its own attorney’s fees and costs and defends the action in good faith. Subdivider shall not be required to pay or perform any settlement unless the settlement is approved by the Subdivider.

11. Insurance Requirements. Subdivider, at Subdivider’s sole cost and expense and for the full term of this Agreement and any extensions thereto, shall obtain and maintain all of the following minimum insurance requirements in a form approved by the City’s authorized designee for Risk Management prior to commencing any work:
(a) Commercial General Liability policy with a minimum $1 million combined single limit for bodily injury and property damage providing a ll of the following minimum coverage without deductibles:
(i) Premises operations; including X, C, and U coverage; (ii) Owners’ and contractors’ protection;
(iii) Blanket contractual;
(iv) Completed operations; and
(v) Products.
(b) Commercial Business Auto policy with a minimum $1 million combined single limit for bodily injury and property damage, providing all of the following minimum coverage without deductibles:
(i) Coverage shall apply to any and all leased, owned, hired, or non - owned vehicles used in pursuit of any of the activities associated with this Agreement; and
(ii) Any and all mobile equipment including cranes which are not covered under the above Commercial Business Auto policy shall have said coverage provided under the Commercial General Liability policy. (c) Workers Compensation and Employers ’ Liability policy in accordance with the laws of the State of California and providing coverage for any and all employees of the Subdivider:
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15 (i) This policy shall provide coverage for Workers ’ Compensation (Coverage A); and
(i) This policy shall provide coverage for $1,000,000 Employers’ Liability (Coverage B).
(ii) Pursuant to Labor Code section 1861, Subdivider by executing this Agreement certifies: “I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers ’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract.”
(iii) Prior to commencement of work, the Subdivider shall file with the City’s Risk Manager a Certificate of Insurance or certification of permission to self-insure workers’ compensation conforming to the requirements of the Labor Code.
(d) Endorsements. All of the following endorsements are required to be made a part of each of the above-required policies as stipulated below:
(i) “The City of Chino, its officers, employees and agents are hereby added as additional insureds.”
(ii) “This policy shall be considered primary insurance with respect to any other valid and collectible insurance the City may possess, including any self- insured retention the City may have and any other insurance the City does possess shall be considered excess insurance only.” (iii) “This insurance sha ll act for each insured and additional insured as though a separate policy has been written for each. This, however, will not act to increase the limit of the insuring company.” (iv) “Thirty (30) days prior written notice of cancellation shall be given to the City of Chino in the event of cancellation and/or reduction in coverage, except that ten (10) days prior written notice shall apply in the event of cancellation for non -payment of premium. ” Such notice shall be sent to the Risk Manager at the address indic ated in Subsection f below.
(v) Subsection d(iv ) hereinabove “Cancellation Notice ” is the only endorsement required of the Workers’ Compensation and Employers’ Liability policy.
(e) Admitted Insurers. All insurance companies providing insurance to the Subdivider under this Agreement shall be admitted to transact the business of insurance by the California Insurance Commissioner.
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16 (f) Proof of Coverage. Copies of all required endorsements shall be attached to the Certificate of Insurance which shall be provided by the Subdivider’s insurance company as evidence of the coverage required herein and shall be mailed to:

City of Chino
Risk Management
13220 Central Avenue
Chino, CA 91710

12. Environmental Warranty.

12.1. Prior to the acceptance of any dedications or Works of Improvement by City, Subdivider shall provide City with a written warranty in a form substantially similar to Exhibit “C” attached hereto and incorporated herein by reference, that:
(a) Neither the proper ty to be dedicated nor Subdivider are in violation of any environmental law, and neither the property to be dedicated nor the Subdivider are subject to any existing, pending or threatened investigation by any federal, state or local governmental authority under or in connection with the environmental laws relating to the property to be dedicated.
(b) Neither Subdivider nor any other person with Subdivider’s permission to be upon the property to be dedicated shall use, generate, manufacture, produce, or release, on, under, or about the property to be dedicated, any Hazardous Substance except in compliance with all applicable environmental laws. For the purposes of this Agreement, the term “Hazardous Substances” shall mean any substance or material which is capab le of posing a risk of injury to health, safety or property, including all those materials and substances designated as hazardous or toxic by any federal, state or local law, ordinance, rule, regulation or policy, including but not limited to, all of those materials and substances defined as “Toxic Materials” in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30 in effect as of the date of this Agreement and/or the d ate of the completion of the public improvements , or any other materials requiring remediation under federal, state or local laws, ordinances, rules, regulations or policies in effect as of the date of this Agreement and/or the date of the completion of the public improvements.
(c) Subdivider has not caused or permitted the release of, and has no knowledge of the release or presence of, any Hazardous Substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. (d) Subdivider’s prior and present use of the property to be dedicated has not resulted in the release of any hazardous substance on the property to be dedicated.

12.2. Subdivider shall give prompt written notice to City of:
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17 (a) Any proceeding or investigation by any federal, state or local governmental (b) authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other pr operty adjacent to, or in the vicinity of, the property to be dedicated. (c) Any claims made or threatened by any third party against City or the property to be dedicated relating to any loss or injury resulting from any hazardous substance; and
(d) Subdivider’s discovery of any occurrence or condition on any property adjoining or in the vicinity of the property to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which it is intended, transferability or suit under any environmental law.

13. General Provisions.

13.1. Successors and Assigns. This Agreement shall be binding upon all successors and assigns to Subdivider’s right, title, and interest i n and to the Property and any portion thereof.

Subdivider hereby consents to City recording this Agreement as official records of San Bernardino County, affecting fee title interest to the Property to provide constructive notice of the rights and obligati ons incurred by Subdivider in the City ’s approval of this Agreement. In the event the Property is subsequently conveyed by Subdivider to a third party prior to completion of the Works of Improvement, whereby the third party is intended to assume Subdivide r’s responsibilities with regard to this Agreement, (the “Replacement Subdivider”), the rights and obligations of this Agreement shall transfer to the Replacement Subdivider; however, the Security Instruments required pursuant to Section 4 of this Agreemen t, and furnished by Subdivider as a condition of the City ’s approval of this Agreement, shall remain Subdivider ’s responsibility to maintain until such time as Subdivider and its Replacement Subdivider enter into a Transfer and Assignment of Subdivision Ag reement, (the “Transfer Agreement ”), to acknowledge the transfer of fee title to the Property from the Subdivider to its Replacement Subdivider, and to acknowledge the rights and obligations associated with this Agreement upon the Replacement Subdivider, i ncluding Replacement Subdivider ’s responsibility to furnish replacement Security Instruments meeting the City ’s approval pursuant to Section 4 of this Agreement. Until such time as a Transfer Agreement, meeting the City’s approval, is executed by Subdivider and its Replacement Subdivider, and replacement Security Instruments meeting City’s approval are furnished by the Replacement Subdivider, Subdivider retains sole responsibility for maintaining all Security Instruments required pursuant to Section 4 of t his Agreement.

13.2. No Third-Party Beneficiaries. This Agreement is intended to benefit only the parties hereto and their respective successors and assigns. Neither City nor Subdivider intend to create any third-party beneficiary rights in this Agreement in any contractor, subcontractor, member of the general public, or other person or entity.
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18 13.3. No Vesting Rights. Performance by the Subdivider of this Agreement shall not be construed to vest Subdivider’s rights with respect to any change in any zoning or building law or ordinance.

13.4. Subdivider is Not Agent of City. Neither Subdivider nor Subdivider ’s agents, contractors, or subcontractors are agents or contractors of the City in connection with the performance of Subdivider’s obligations under this Agreement.

13.5. Time of the Essence. Time is of the essence of Subdivider ’s performance of all of its obligations under this Agreement.

13.6. Notices. Unless otherwise specified in this Agreement, all notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date is delivered in person, or, if mailed, on the date of deposit in the United States Mail. Notice shall be provided to the persons listed on Pages 1 and 2 of this Agreement by the parties for this purpose.

Either party may provide a new designated representative and/or address by written notice as provided in this Section.

13.7. No Apportionment. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreements with other subdividers for the apportionment of costs of water a nd sewer mains, or other improvements pursuant to the provisions of the City ordinances providing therefore. Nor shall anything in the Agreement commit City to any such apportionment.

13.8. Severability. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

13.9. Captions. The captions of this Agreement are for convenience and reference only and shall not be used in the interpretation of any provision of this Agreement.

13.10. Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into the terms of this Agreement.

13.11. Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California.

13.12. Entire Agreement; Waivers and Amendments. This Agreement integrates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parti es with respect to all or part of the subject matter hereof, except as may be expressly provided herein. All waivers of the provisions of this Agreement must be in writing and signed by an authorized representative of the party to be charged, and all amend ments hereto must be in writing and signed by the appropriate representatives of both parties.
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19 13.13. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed one original.

14. Authority. The persons executing this Agreement on behalf of the parties warrant (i) the party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into of this Agreement does not violate any provisions of any other agreement to which said party is bound. [SIGNATURES ON NEXT PAGE]
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01225.0006/366470.2 A-1

EXHIBIT “A”
[attached]
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01225.0006/366470.2 B-1
EXHIBIT “B”
TRACT MAP NO. 16420-5 WORKS OF IMPROVEMENT
A. Removal of undesirable, dangerous and dead plant materials and roots.

B. All onsite and offsite grading as specified on the approved grading plan.

C. Relocation of all public utility structures as necessary to properly construct the required improvements.

D. Storm drain facilities as required and shown on the approved construction plans and in accordance with City Standards.

E. Sanitary sewers constructed as shown on the approved, engineered plans and in accordance with City Standards.

F. Water mains, valves, hydrants, services, meters and appurtenances to serve each lot as shown on the approved construction plans and in accordance with City Standards.

G. Underground installation of all electrical, telephone, cable television and any other energy or communication lines that abut or are within the project site.

H. A street lighting system (City-owned) in accordance with City Standards.

I. Disposal of all rocks and debris located within any public right -of-way within said development or on the boundary streets thereof.

J. Installation of concrete curbs, gutters, sidewalks, cross gutters, driveways and intersections as shown on appro ved construction plans and in accordance with City Standards.

K. Installation of asphalt concrete or Portland Cement Concrete street pavement on base material as shown on approved construction plans and in accordance with City Standards.

L. Street signs at intersections per the City Standards.

M. Installation of approved landscaping (plants and materials).

N. Setting monuments as required by the State Code.

The Subdivider shall also perform all work and furnish all materials necessary, in the opinion of the Director of Development Services or his designee and on his order, to complete the improvements in accordance with the plans and specifications on file as hereinbefore specified, or any changes required or ordered by said Engineer which, in his opinion, are necessary or required to complete this work. 238
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01225.0006/366470.2 C-1

EXHIBIT “C”
TRACT NO. 16420-5

CHINO PRESERVE DEVELOPMENT CORPORATION

ENVIRONMENTAL WARRANTY
As a condition precedent to acceptance of the dedications and public improvements to be conveyed by the above -named Subdivider to the City of Chino for the above-referenced Subdivision, Subdivider hereby warrants to the City of Chino that:

1. Neither the p roperty to be dedicated nor Subdivider are in violation of any environmental law, and neither the property to be dedicated nor the Subdivider are subject to any existing, pending or threatened investigation by any federal, state or local governmental authority under or in connection with the environmental laws relating to the property to be dedicated.

2. Neither Subdivider nor any other person with Subdivider’s permission to be upon the property to be dedicated has used, generated, manufactured, produced, or released, on, under, or about the property to be dedicated, any Hazardous Substance except in compliance with all applicable environmental laws. For the purposes of this warranty, the term “Hazardous Substances” shall mean any substance or material which is capable of posing a risk of injury to health, safety or property, including all those materials and substances designated as hazardous or toxic by any federal, state or local law, ordinance, rule, regulation or policy, including but not limited to, all of those materials and substances defined as “Toxic Materials” in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30 in effect as of the date of this Warranty and/or the date of the completion of the public improvements , or any other materials requiring remediation under federal, state or local laws, ordinances, rules, regulations or policies in effect as of the date of this Warranty and/or the date of the completion of the public improvements.

3. Subdivider has not caused or permitted the release of, and has no knowledge of the release or presence of, any Hazardous Substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated.

4. Subdivider ’s prior and present use of the property to be dedicated has not resulted in the release of any Hazardous Substance on the property to be dedicated.

5. All persons executing this warranty hereby represent and warrant to the City of Chino, and Subdivider hereby represents and warrants, that the signatories hereto have the legal power, right and authority to execute this warranty on behalf of the Subdivider and that the signatories hereto have sufficient knowledge or expertise, either personally, through reasonable inspection and investigation of the property, or through reasonable 249
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MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Memorandum of Understanding with San Bernardino County - Inspection & Permitting of Yorba Villas and other projects pending annexation.

..end

RECOMMENDATION
Approve the Memorandum of Understanding between the City of Chino and San Bernardino County for plan check, inspection and ministerial permit issuance services and authorize the City Manager to execute all necessary documents on behalf of the City.

..body

FISCAL IMPACT
Approval of the Memorandum of Understanding is not expected to have a fiscal impact on the City as all charges by the County for services performed will be pass through costs borne by developers.

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
 Responsible Long-Range Planning
 Public Service Excellence through Internal and External Partnerships

Revenue: Click or tap here to enter text.

Expenditure:

Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 251
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: MEMORANDUM OF UNDERSTANDING WITH SAN BERNARDINO COUNTY -

INSPECTION & PERMITTING OF YORBA VILLAS AND OTHER PROJECTS PENDING ANNEXATION.

PAGE: 2

BACKGROUND
On June 20, 2023, the City Council approved a Pre -Annexation and Development Agreement (Agreement) with Yorba Villas LLC, owners of property located at 4570 and 4664 Francis Avenue in the County of San Bernardino (Property). The Agreement provided for certainty as to the annexation of the Property to the City and the owner’s ability to develop the Property as contemplated by entitlements it received from the County of San Bernardino. The Agreement requires the owner to support the City’s application to the Local Agency Formation Commission (LAFCO) for the Ramona Francis Annexation process, including the Property. Since the entitlements were issued by the County, the Agreement further called for the County to perfo rm all inspections and issue ministerial permits consistent with those entitlements. The Agreement exempted permits related to the sewer service connections, which would be performed by the City.

The Agreement contemplated that the City would enter into a memorandum of understanding with the County authorizing the County to perform those inspections and issuance of ministerial permits.

ISSUES/ANALYSIS
Following approval of the Agreement, the City Attorney drafted the attached Memorandum of Understanding (MOU), which incorporates the County’s comments and revisions. The specific services in the MOU include plan check services, inspection services, issuance of ministerial development permits (including, but not limited to, grading permits, infrastructure permits, building permits and certificates of occupancy) and bond processing, oversight and exoneration in connection with the development of the Yorba Villas project. The MOU further allows the City, in its discretion, to request the County’s services fo r other projects within the City’s sphere of influence that may be pending annexation at commencement of the applicable project.

Any developer utilizing the services under the MOU, including the Yorba Villas owner, is responsible under the MOU for payment of any applicable County fees for services provided.

The MOU requires the County to provide the City with itemized billing statements for any County-provided services in accordance with the County’s Schedule of Fees. The City is then to collect applicable County fees from those developers and tender them to the County within 60 calendar days.

The County is to provide the services under the MOU in a timeframe that complies with standard County practice and procedures. The MOU is effective for 5 years follow ing approval by the County. The County Board of Supervisors is currently anticipated to consider approval of the MOU in December, 2023.

ENVIRONMENTAL DETERMINATION
In accordance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq.), and any applicable local CEQA policies and procedures, the Memorandum of Understanding is not a “project” for purposes of CEQA, as that term is defined by the CEQA Guidelines section 15378, because the Memorandum of Understanding merely contemplates a government funding mechanism or other government fiscal activity, which does not involve any commitment to any specific project 252
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: MEMORANDUM OF UNDERSTANDING WITH SAN BERNARDINO COUNTY -

INSPECTION & PERMITTING OF YORBA VILLAS AND OTHER PROJECTS PENDING ANNEXATION.

PAGE: 3

which may result in potentially significant physical impact on t he environment, pursuant to Guidelines section 15378(b)(4), or alternatively, it constitutes an organizational or administrative activity that will not result in a direct or indirect physical change in the environment pursuant to Guidelines section 15378(b)(5). Any developer utilizing the services under the Memorandum of Understanding has or will be required to secure CEQA approval before qualifying for use of the services.

Attachment - Memorandum of Understanding Between the City of Chino and San Berna rdino County for Plan Check, Inspection and Ministerial Permit Issuance Services

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01225.0005/920326.2 1

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF CHINO AND SAN BERNARDINO COUNTY

FOR PLAN CHECK, INSPECTION AND MINISTERIAL PERMIT ISSUANCE

SERVICES

This Memorandum of Understanding ( “MOU”) is made and entered into this ___ day of ______, 2023 by and between the City of Chino (“City”), and San Bernardino County (“County”) related to plan check, inspection and ministerial permit issuance services. Hereinafter, the City and County may be referred to individually as a “Party” or collectively as the “Parties.”

I. RECITALS

WHEREAS, on October 4, 2022, the County’s Board of Supervisors approved a Planned Development Permit (“PDP”) and Vesting Tentative Tract Map No. 20394 (“VTM 20394”) for the development of a gated project at the property located at 4570 and 4664 Francis Avenue in the unincorporated area of San Bernardino County (“Property”) comprising of 45 single-family homes, new private streets, a small private park, street improvements (along Francis and Yorba Avenue), on -site stormwater infrastructure and related amenities at the Property (collectively, “Yorba Villas Project”);

WHEREAS, the Property is within City’s sphere of influence;

WHEREAS, City intends to submit an annexation application (“Annexation”) for an area consisting of a 144.683-acres located at the northern border of the City, generally centered on Ramona Ave nue and Mustang Road (“Annexation Area”) to the San Bernardino Local Agency Formation Commission (“LAFCO”) in accordance with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code §§ 56000-57550), which Annexation Area includes the Property;

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WHEREAS, to allow for consistency following an approval by LAFCO of the Annexation, City desires County to provide post-final map, PDP and other entitlement plan check services, inspection services, issuance of ministerial development permits (including, but not limited to, grading permits, infrastructure permits, building permits and certificates of occupancy) and County bond ing processing, oversight and exoneration (collectively “Services”) in connection with the development of the Yorba Villas Project consistent with the PDP, VTM 20394 and applicable County development and building regulations as set forth in Title 6 of the San Bernardino County Code of Ordinances (collectively “County Regulations”) . When specifically requested, City further desires County to provide similar Services in connection with the development of other projects located within the Annexation Area that has received a County approval prior to LAFCO’s approval of the Annexation (collectively “Other Projects”);

WHEREAS, the applicant for the Yorba Villas Project and an applicant for an Other Project shall be collectively referred to as “Applicant”;

WHEREAS, County has personnel with sufficient training and expertise to provide the Services as requested by City;

WHEREAS, County is prepared to provide such Services under the terms and conditions set forth in this MOU; and

NOW THEREFORE, in consideration of the forgoing Recitals, which Recitals are incorporated herein by this reference, and mutual promises, covenants and condition s contained herein, the Parties mutually agree as follows:

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II. TERMS AND CONDITIONS

A. SCOPE OF SERVICES.

The City agrees to honor any unexpired (including validly extended) land use entitlement (examples include, but are not limited to, a Planned Development Permit, Minor Use Permit, Conditional Use Permit, Special Use Permit, Tentative Parcel Map and/or Tentative Tract Map) , and associated development plan, building plan, building permit, infrastructure permit, grading permit and/or certificate of occupancy that was approved or conditionally approved by the County before LAFCO’s approval of th e Annexation, including the Yorba Villas Project and Other Projects. The City requires professional services from the County as described in Section II.C for all post entitlement, plan and permit checks for the development of the Yorba Villas Project or Other Projects.

The scope of professional services rendered by County will be designed to ensure the Yorba Villas Project and Other Projects are constructed in a manner consistent with the County approved discretionary entitlements and complies with those County Regulations applicable at the time such discretionary entitlements were approved by County.

B. TERM

The term of this MOU shall be effective on the date last executed by the Parties and shall continue in effect for up to five (5) years, or until terminated pursuant to Section V below.

C. SERVICES TO BE RENDERED BY COUNTY

1) Plan Check Services
With respect to development plans (e.g., building plans, infrastructure plans, grading plans) approved by the County prior to Annexation, if Applicant proposes 256

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any revision to any such plan or any supplement thereto, City shall submit such proposed revision and supplement to County, and County shall provide all plan check, plan revision, and inspection services related thereto. The Applicant shall be responsible for the payment of any applicable fees, as established in County ’s Schedule of Fees codified in San Bernardino County Code, Section 16.0201 et seq. (“County Fees”) for the type of review requested at the time of submission of the request, to cover the cost of services provided. All such County services shall be provided in a timeframe that complies with standard County practice and procedures.

2) Inspection/Permitting Services
With respect to building permits, infrastructure permits, grading permits or similar ministerial permits issued by County to an Applicant prior to Annexation, County will provide all inspection services related thereto, and, prior to Annexation, County shall issue all related certificates of occupancy for any structure authorized by any such permit that qualify for approval in accordance with applicable County Regulations. Following Annexation, if an Applicant applies to City for a building permit for a structure contemplated by a development plan that was approved by the County prior to Annexation, the City will submit such building permit application to County, and County will review such application to determine compliance with applicable County Regulations and thereafter notify City whether such application qualifies for building permit approval pursuant to such County Regulations. Upon receipt of County’s notification that any such building permit application qualifies for approval, City shall promptly issue the relevant building permit to the Applicant.

For all building permits issued by City in accordance with the immediately preceding sentence, City shall submit all related applications for certificates of occupancy to the County for review. Upon receipt of any such certificat e of occupancy application, County shall perform all related inspection services and determine whether such application qualifies for certificate of occupancy approval 257

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pursuant to applicable County Regulations and notify City of such determination.

Upon re ceipt of County’s notification that any such certificate of occupancy application qualifies for approval, City shall promptly issue the relevant certificate of occupancy to the Applicant. The Applicant shall be responsible for the payment of any applicable County Fees to cover the cost of services provided by County.

All such County services shall be provided in a timeframe that complies with standard County practice and procedures.

3) Excluded Services
Services to be rendered by County specifically exclude sewer connection services for which City shall conduct all permitting and inspection services, including charging any Applicant the applicable City fees, including sewer development impact fees.

D. PAYMENT FOR SERVICES

Following Annexation, County shall provide City with itemized billing statements for any County provided services in accordance with the County Fees. City shall collect applicable County Fees from Applicants for the cost of the services rendered by County and shown on the billing statements and tender same to County within sixty (60) calendar days.

E. PERSONNEL

The services provided by the County in accordance with this MOU shall be performed by County personnel under the control and direction of County. To the extent that City personnel may also participate in any of the activities herein provided for, any expenses by the City in this process shall be borne by City, unless such activities are separately requested by any Applicant, in which case, City s hall directly bill City’s 258

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applicable fees to such Applicant.

F. MUTUAL HOLD HARMLESS/INDEMNIFICATION

1) To the fullest extent permitted by applicable law, City shall and does agree to indemnify, protect, defend and hold harmless County, its agencies, distri cts, special districts and departments, t heir respective directors, officers, elected and appointed officials, employees, a gents and represen tatives (collective “County indemnitees”) for, from and against any and all liabilities, claims, damages, losses, liens, causes of action, suits, awards, judgements and expenses, attorney and/or consultant fees and costs, taxable or otherwise, of any nature, kind or description of any person or entity, directly or indirectly arising out of, caused by, or resulting from the MOU, including any approved amendments or modifications ( “City Liabilities”). The City’s indemnification obligation herein shall apply to County’s “active” as well as “passive” negligence but does not apply to the County’s “sole negligence” or “willful misconduct” within the meaning of Civil Code Section 2782.

a) In the event there is conflict between this clause and California Civil Code Section 2782, this clause shall be interpreted to comply with Civil Code Section 2782. Such interpretation shall not relieve City from indemnifying the County to the fullest extent allowed by law.

b) With respect to any action or claim subject to indemnification herein by City, City shall, at its sole cost, have the right to use counsel of its own cho ice, subject to approval of County, which shall not be unreas onably withheld, and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of County; provided, however that any such adjustment, settlement or compromise in no manner whatsoever limits or circumscribes City’s indemnification to County as set forth her ein. City’s 259

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obligation to defend, indemnify and hold harmless County shall be subject to County having given City written notice within a reaso nable period of time of the claim or of the commencement of the relat ed action as the case may be, and information and reasonable assistance, at City’s expense, for the defense or settlement thereof. City’s obligation hereunder shall be satisfied when City has provided to County the appropriate form of dismissal relieving County from any liability for the action or claim involved.

2) To the fullest extent permitted by applicable law, County shall and does agree to indemnify, protect, defend and hold harmless City, its agencies, districts, special districts and departments, th eir respective directors, officers, ele cted and appointed officials, employees, agents and representatives (collectively “City Indemnitees”) for, from and against any and all liabilities, claims, damages, losses, liens, causes of action, suits, awards, jud gements and expenses, attorney and/or consultant fees and costs, taxable or otherwise, of any nature, kind or description of any person or entity, directly or indirectly arising out of, caused by, or resulting from the MOU, including any approved amendment s or modifications (“County Liabilities”). The County’s indemnification obligation herein shall apply to City’s “active” as well as “passive” negligence but does not apply to the City’s “sole negligence” or “willful misconduct” within the meaning of Civil Code Section 2782.

a) In the event there is conflict between this clause and Califor nia Civil Code Section 2782, this clause shall be interpreted to comply with Civi l Code 2782.

Such interpretation shall not relieve County from indemnifying the City to the fullest extent allowed by law.

b) With respect to any action or claim subject to indemnification herein by County, County shall, at their sole cost, hav e the right to use counsel of their own choice, subject to approval of City, which shall not be unreasona bly withheld, 260

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and shall have the ri ght to adjust, settle, or compromise any such action or claim without the prior consent of City provided, however, that any such adjustment, settlement or compro mise in no manner whatsoe ver limits or circumscribes County’s indemnification to City as set forth her ein. County’s obligation to defend, indemnify and hold harmless City shall be subject to City having given written notice within a reasonable period of time of the claim, or of the commencement of the related a ction, as the case may be, and information and reasonable assistance, at City’s expense, for the defense or settlement ther eof. County’s obligation her eunder shall be satisfied when County has provided to City the appropriate form of dismissal relieving City from an liability for the action or claim involved.

III. RECORDS

County agrees to maintain records and documentation of the Services rendered and supplies used pursuant to this MOU for a period of time consistent with the County’s record retention policy . S uch records or copies thereof shall be accessible to City for review upon reasonable notification by City without copying charges.

IV. AMENDMENTS

Any amendment, modification, or variation from the terms of this MOU shall be in writing and shall be effective only upon mutual approval by the authorized parties.

V. TERMINATION

Either City or County may terminate this MOU at any time by giving 30 calendar days written notice with or without cause to the designated contacts , but in no event soon er than County’s completion of all Services related to the Yorba Villas Project. Upon receipt 261

01225.0005/920326.2 9

of any notice of termination on the agreed upon effective date of termination, Services shall cease thereafter. Upon termination of this MOU, any inspection and permit requirements shall revert to the City. Termination of this MOU does not terminate the Parties’ responsibility for payment of prior authorized Services rendered.

VI. COMPLETE MEMORANDUM OF UNDERSTANDING

This written MOU, including all writings specifically incorporated hereby in reference, shall constitute the complete MOU between the parties hereto. No oral agreement or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement or representation be binding upon the parties hereto. Any previous agreements between the City and County, whether oral or written, with regards to the activities outlined in this MOU, shall be supplanted by this MOU. Other agreements or contracts between the City and County shall be unaffected by this MOU.

VII. JURISDICTION/VENUE

This MOU shall be governed by, and construed in accordance with, the laws of the State of California. City and County agree and consent to the exclusive jurisdiction of the courts of the State of California for all purposes regarding this MOU, and further agrees that venue of any action brought hereunder shall be exclusively in the County of San Bernardino.

VIII. NOTICE

All written notices provided for in this MOU or which either party desires to give to the other shall be deemed fully given, when made in writing and either served personally, or by facsimile, or deposited in the United States mail, postage prepaid, and addres sed to 262

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the other party as follows:

City: County:

City of Chino
Attn: City Clerk
13220 Central Avenue
Chino, CA 91710

San Bernardino County
Land Use Services Department
Attn: Director
385 North Arrowhead Avenue
San Bernardino, CA 92415

Notice shall be deemed communicated two business days from the time of mailing if mailed as provided in this paragraph.

IX. AUTHORITY TO EXECUTE MEMORANDUM OF UNDERSTANDING

Both City and County do covenant to each individual executing this MOU on behalf of each party is a person duly authorized. This MOU may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same MOU. The parties shall be entitled to sign and transmit an electronic signature of this MOU (whether by facsimile, PDF or other mail transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed MOU upon request.

[Signatures on following page]

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IN WITNESS WHEREOF, the Parties hereto have caused this MOU to be executed.

CITY OF CHINO

_______________________________
Linda Reich, City Manager

Dated:_________________________

SAN BERNARDINO COUNTY

______________________________
Dawn Rowe, Chair, Board of Supervisors

Dated:________________________
ATTEST:

_________________________________
Natalie Gonzaga, City Clerk

SIGNED AND CERTIFIED THAT A COPY OF THIS

DOCUMENT HAS BEEN DELIVERED TO THE

CHAIRMAN OF THE BOARD

_______________________________________
Lynna Monell, Clerk of the Board of Supervisors
San Bernardino County
APPROVED AS TO FORM:

__________________________________
Fred Galante, City Attorney

APPROVED AS TO FORM:

Tom Bunton
County Counsel

____________________________
Jason M. Searles
Supervising Deputy County Counsel

264

MEMORANDUM

CITY OF CHINO

COMMUNITY SERVICES, PARKS & RECREATION DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS &

RECREATION

SUBJECT
..titl e
Award of Contract – 7th Street Theater HVAC Replacement Project (IB249). ..end

RECOMMENDATION
1) Award a construction contract in the amount of $50,214 to C.E. Mechanical, Inc., Chino, CA, for the 7th Street Theater HVAC Replacement project; 2) authorize expenditures of up to $7,532 for construction contingencies for a not-to-exceed construction contract amount of $57,746; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.

..body

FISCAL IMPACT
Sufficient funds are included in the Fiscal Year 2023 -24 Building Management Operating Budget.

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:
 Financial Stability
 Fiscal Responsibility
 Responsible Long-Range Planning

Revenue: Click or tap here to enter text.

Expenditure: 65083101-43650-IB249
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 265
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: AWARD OF CONTRACT - 7TH STREET THEATER HVAC REPLACEMENT PROJECT (IB249).

PAGE: 2

BACKGROUND
The Fiscal Year 2023-24 Building Management Fund budget provides funding for the 7 th Street Theater HVAC Replacement project (IB249). The project scope of work includes removal of existing 15 -ton unit and installing a new energy efficient unit. C.E. Mechanical, Inc. is an approved contractor that possesses the knowledge, certifications, and expertise to complete all aspects for maintenance, installation, and repair services.

During the past few years, the existing 15 -ton unit has experienced several significant mechanical failures, likely due to its age (15+ years). Currently, the unit has fulfilled its life cycle and is experiencing several leaks throughout the duct work causing damage to the seating area.

These leaks impact the Theater’s shows due to closing off areas affected by the leak s and limiting seating for scheduled productions.

ISSUES/ANALYSIS
Staff met with contractors on site to discuss the project’s scope of work and request proposals.

The lowest proposal was submitted by C.E. Mechanical, Inc., Chino, CA. Staff is recommending that City Council authorize a construction contract in the amount of $50,214 to C.E. Mechanical, Inc., Chino, CA f or the 7 th Street Theater HVAC Replacement project. In addition to the contract amount, staff is requesting up to $7,532 in construction contingencies for unanticipated work, bringing the total potential construction contract to $57,746.

Company Name Total Bid Amount
1 C.E. Mechanical, Inc. $50,214.00
2 Airite $57,150.00
3 Emcor Services Meza Energy Declined to submit proposal.

Attachments: C.E. Mechanical, Inc. – Agreement and Proposal

266

01225.0006/515653.2

Contract No.:

Approved:

AGREEMENT

“7TH STREET THEATER HVAC REPLACEMENT PROJECT”

THIS AGREEMENT is made and entered into this 21st day of November, 2023 by and between T HE CITY OF CHINO, a municipal corporation, hereinafter called “ City,” and C.E. MECHANICAL, INC., hereinafter called “Contractor”.

WITNESSETH, that the parties hereto mutually agree as follows:

ARTICLE I: For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by City, Contractor agrees to perform and complete all of the work for the project entitled “7th STREET THEATER HVAC REPLACEMENT PROJECT” in a good and workmanlike manner in accordance with all plans and specifications therefor , to furnish at Contractor’s sole cost and expense all tools, equipment, labor, and materials necessary therefor, except such materials and equipment as are expressly stipulated to be furnished by City, and to do everything required by the Contract Documents.

ARTICLE II: Contractor shall be responsible for furnishing all labor, materials, equipment, tools, and services, furnishing and removing all plants, temporary structures, tools, and equipment, and doing everything required by this Agreement and by the Contract Documents. Contractor shall also be responsible for all losses and damages arising out of the performance of the Work, from the action of the elements, or from any unforeseen difficulties that may arise during the prosecution of the Work until its acceptance by City; for all risks of every description associated with the Work; and for all expenses resulting from the suspension or discontinuance of the Work.

City shall pay Contractor, and Contractor shall receive, for completing the Work in accordance with the requirements of the Contract Documents and in full compensation therefor, the price named in the Bid Proposal. Subject to any additions or deductions that may be made by change order or amendment, and any penalties or damages that may be assessed against Contractor, Contractor shall receive a total contract amount of Fifty Thousand Two Hundred Fourteen Dollars and No Cents ($50,214.00) for completion of the contract work.

ARTICLE III: The City hereby employs said Contractor to perform the work according to the terms of this Agreement for the above-mentioned price(s), and agrees to pay the same at the time, in the manner, and upon the conditions stipulated in the Contract Documents; and the said parties for themselves, their heirs, executors, administrators, successors and assignees, do hereby agree to the full performance of the covenants herein contained.

ARTICLE IV: Contractor shall begin work within five (5) calendar days after receiving a Notice to Proceed from the City and the work shall be completed within ten (10) working days from the date on which the work was started. If the work is not completed within said time period, liquidated damages shall apply.

ARTICLE V: The Notice Inviting Bids, the Summary of Work, the Instructions to Bidders, the Bid Documents, the Required Post-Bid Documents, the General Provisions, the Special Provisions, the Technical Specifications, and all other drawing, plans, or specifications fo r the Work (collectively, “Contract Documents”) are hereby incorporated in to and made part of this 267

01225.0006/515653.2
Agreement.

ARTICLE VI: Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable attorneys’ fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and i ts officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

ARTICLE VII: No officer or employee of the City shall have any financial interest in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his financial interest or the financial interest of any corporation, partnership or association in which he is interested, in violation of any State statute or regulation.

Similarly, Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

ARTICLE VIII: This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S.

District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.

ARTICLE IX: Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.

Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall imp air such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

ARTICLE X: No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which 268

01225.0006/515653.2
may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

ARTICLE XI: The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

ARTICLE XII: In the course of its work under this Agreement, the Contractor, its agents and employees shall be bound by and comply with all applicable federal, state and local laws and requirements.

ARTICLE XIII: The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.

[SIGNATURES ON FOLLOWING PAGE]

269

01225.0006/515653.2
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed on the day and year first above written.

Approved as to Form: Approved as to Content:

City Attorney Silvia Avalos , Director of Community
Services, Parks & Recreation

CONTRACTOR

Dated: By:
(Signature)
Name:
(Please Type or Print Name)
(Signature must be notarized) Title:
(Please Type or Print Title)

CITY OF CHINO

Dated:

Linda Reich, City Manager

ATTEST:

Natalie Gonzaga, City Clerk

Date

270
271
272
Service Manager
273
274

MEMORANDUM

CITY OF CHINO

HUMAN RESOURCES DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: GERIANN KINGSLAN, DIRECTOR OF HUMAN RESOURCES/RISK

MANAGEMENT

SUBJECT
..titl e
Classification and Compensation Adjustments to Classifications and Salaries for American Federation of State, County and Municipal Employees (AFSCME). ..end

RECOMMENDATION
1) Adopt Resolution No. 2023 -073 approving Classification and Salary Schedule adjustments and title changes for job classifications represented by the American Federation of State, County and Municipal Employees (AFSCME); 2) approve an estimated total appropriation in the amount of $382,184, and/or the actual amount, if not significantly higher, to the various funds listed in the Fiscal Impact section below; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
Requires an estimated appropriation from the funds listed: General Fund 100 $534; Transportation Fund 320 $34,597; CDBG Fund 350 $103; Landscape and Lighting Fund 360 $37,829; Assessment District Fund 361 $7,934.00; Water Fund 520 $183,335 ; Sewer Fund $4,905; Storm Drain Fund $6,699; Sanitation Fund $467; Employees Services Fund 640 $49,218; Building Management Fund 650 $46,524; and Equipment Management Fund 660 $10,039 for a total amount of $382,184. There are sufficient reserves of fund b alance in each of the funds mentioned above to cover the cost of the recommended adjustments.

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
 Exemplary Leadership

Revenue: Click or tap here to enter text.

Expenditure: Various program accounts
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 275
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: CLASSIFICATION AND COMPENSATION ADJUSTMENTS TO CLASSIFICATIONS

AND SALARIES FOR AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME).

PAGE: 2

BACKGROUND
The City initiated a Classification and Compensation Study using the firm Koff & Associates in compliance with an agreement contained in a Memorandum of Understanding between the City of Chino and AFSCME entered into in fiscal year 2019 -2020. Initiation of the Study experienced a substantial delay primarily due to a contract with Koff & Associates that was amended twice to reflect the direction of the City Council. The process of conducting the study is extensive and calls for affected employees to complete a detailed and comprehensive Position Description Questionnaires; individual and group interviews held with Koff & Associates representatives; followed by months of negotiations between City management and AFSCME representatives on the comparators used, a ccuracy of the survey data, position titles and contents of job descriptions. Agreement between the parties was reached on November 9, 2023, and the findings are shown in Resolution No. 2023-073.

ISSUES/ANALYSIS
As previously referenced, the Classifi cation and Compensation Study is complex and time intensive. Completion of Position Description Questionnaires typically requires an employee a minimum of 5 hours to complete. This is followed by a review by the employee's supervisor for input and then an interview with an expert from Koff & Associates.

Thereafter, Koff & Associates takes the information and writes a Job Description for each position, which is provided to the employee, their supervisor/department director, and Human Resources staff for review and approval. The essential duties of each job description are relied upon to ensure that City of Chino position classifications are correctly compared with our 11 established survey cities to obtain a job match. This is a critical component of the Study.

When the job classifications are in final form, compensation data is then sought to place our positions at the midpoint of all comparable agencies. The survey, which includes job descriptions, titles, and salaries, in this case, went to vote by AFSCM E for acceptance as the study had been incorporated into their Memorandum of Understanding, which provided for a completion date in June 2021. Therefore, in compliance with the City’s obligation to implement the findings of a Classification and Compensatio n Study in July 2021, AFSCME members who the study found were not paid at or above the median are eligible for retroactive pay adjustments to July 2021.

Also included with this Study as a method of agreeing to retain his employment with the City is a title and salary adjustment for the current Water Utilities Supervisor.

Providing an actual cost for the implementation of the Classification and Salary adjustment requires retroactive payroll calculations back to July 1, of 2021. These calculations will requi re additional time to determine the exact amounts owed to employees. Therefore, staff is recommending that City Council approve the estimated amount of $382,184 and/or the actual amount, if not significantly higher.

276
CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023
TITLE: CLASSIFICATION AND COMPENSATION ADJUSTMENTS TO CLASSIFICATIONS

AND SALARIES FOR AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME).

PAGE: 3

The following summarizes the request:

CURRENT TITLE PROPOSED TITLE SALARY ADJ
Building Maintenance Supervisor Facilities Maintenance Supervisor 13.7% Building Maintenance Worker Facilities Maintenance Technician 5.5% Customer Service Representative Water Meter Technician 7.2% Customer Service Lead Rep. Water Meter Lead Technician 17.5% Equipment Mechanic Equipment Mechanic 0.0%
Equipment Lead Mechanic Equipment Lead Mechanic 4.6% Facilities Worker Facilities Worker 0.0%
Maintenance Worker Grounds Maintenance Worker 0.0% Maintenance Worker Streets Maintenance Worker 0.0% Maintenance Worker Wastewater Maintenance Worker 0.3% Maintenance Lead Worker Grounds Maintenance Lead Worker 4.5% Maintenance Lead Worker Streets Maintenance Lead Worker 4.5% Maintenance Lead Worker Wastewater Maintenance Lead Worker 4.8% Maintenance Lead Worker Maintenance Coordinator 8.5% Recycled Water Coordinator Cross Connection Specialist 4.6% Water Quality Technician Cross Connection Specialist 4.6% Water Distribution Operator Water Distribution Operator 11.1% Water Distribution Lead Operator Water Distribution Lead Operator 4.8% Water Systems Operator Water Treatment Operator 8.9% Water Systems Lead Operator Water Treatment Lead Operator 2.8% Water Utilities Supervisor Water Utilities Superintendent 16.1%

If adopted, Resolution 2023-073 will provide a Classification and Salary Schedule that reflects all proposed adjustments to position titles and salary ranges.

Attachment: Resolution 2023-073

277
RESOLUTION NO. 2023-073

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, AMENDING CERTAIN PORTIONS OF THE IDENTIFIED RESOLUTIONS LISTED ADDRESSING THE CITY’S CLASSIFICATION AND

SALARY SCHEDULE

WHEREAS, the City Council o f the City of C hino has the autho rity to create and maintain position classifications; and

WHEREAS, greater flexibility is desired to meet changing conditions and better serve general organizational needs; and

WHEREAS, the City Council of the City of Chi no has historic ally adopted resolution s to establish salaries, benefits, and terms and conditions of employment for City employees , including, but not limited to , Resolution Nos. 85-52 and 85-54, and subsequent resolutions to establish changes to salaries, benefits, and terms and conditions of employment for City employees as well as resolutions adopting memoranda of understanding with represented employees; and

WHEREAS, job titles and salaries will be adjusted as a result of the classification and compensation study performed; and

WHEREAS, the City Council of the City of Chino authorizes an amendment be made to salaries adopted in Resolutions listed; and

NOW, THEREFORE, BE IT R ESOLVED the City Council of the City of Chino does hereby adopt the changes b elow. All provi sions apply only to those indi viduals who are employed by the City of Chino on the day following adoption of this Resolution.

1. The following job classifications are proposed for title changes:

CURRENT TITLE PROPOSED TITLE
Building Maintenance Supervisor Facilities Maintenance Supervisor Building Maintenance Worker Facilities Maintenance Technician Customer Service Representative Water Meter Technician Customer Service Lead Representative Water Meter Lead Technician Maintenance Worker Grounds Maintenance Worker
Maintenance Worker Streets Maintenance Worker
Maintenance Worker Wastewater Maintenance Worker
Maintenance Lead Worker Grounds Maintenance Lead Worker Maintenance Lead Worker Streets Maintenance Lead Worker Maintenance Lead Worker Wastewater Maintenance Lead Worker Maintenance Lead Worker Maintenance Coordinator
Recycled Water Coordinator Cross Connection Specialist Water Quality Technician Cross Connection Specialist Water Systems Operator Water Treatment Operator
Water Systems Lead Operator Water Treatment Lead Operator Water Utilities Supervisor Water Utilities Superintendent

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RESOLUTION NO. 2023-073
PAGE 2

2. Resolution No s. 2023-051, 2023-052, 2023-060 and 2023-061 of the City’s Classification and Salary Schedule are revised to establish the following changes to the salary schedule:

The salaries below are effective with the pay period which includes July 1, 2023:

Non-Management Classifications (monthly salary amounts):

Step A Step B Step C Step D Step E
Facilities Maintenance Supervisor $6,992 $7,342 $7,709 $8,094 $8,499 Facilities Maintenance Technician $4,508 $4,733 $4,970 $5,218 $5,479 Water Meter Technician $4,582 $4,812 $5,052 $5,305 $5,570 Water Meter Lead Technician $5,270 $5,534 $5,810 $6,101 $6,406 Equipment Lead Mechanic $5,819 $6,110 $6,415 $6,736 $7,073 Grounds Maintenance Worker $4,273 $4,488 $4,711 $4,946 $5,195 Streets Maintenance Worker $4,273 $4,488 $4,711 $4,946 $5,195 Wastewater Maintenance Worker $4,287 $4,501 $4,727 $4,963 $5,211 Grounds Maintenance Lead Worker $4,916 $5,161 $5,420 $5,690 $5,975 Streets Maintenance Lead Worker $4,916 $5,161 $5,420 $5,690 $5,975 Wastewater Maintenance Lead Worker $4,930 $5,177 $5,436 $5,708 $5,993 Maintenance Coordinator $5,101 $5,356 $5,624 $5,905 $6,200 Cross Connection Specialist $5,653 $5,935 $6,232 $6,544 $6,871 Water Distribution Operator $4,916 $5,161 $5,420 $5,690 $5,975 Water Distribution Lead Operator $5,653 $5,935 $6,232 $6,544 $6,871 Water Treatment Operator $5,514 $5,789 $6,079 $6,383 $6,702 Water Treatment Lead Operator $6,341 $6,658 $6,990 $7,340 $7,707

Non-Sworn Management Classification (monthly salary amounts) Base 22.5% Maximum
Water Utilities Superintendent $8,682 $10,635 $11,287

Part-time Classifications (hourly salary amounts):

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Facilities Maintenance
Technician $26.01 $26.66 $27.31 $27.99 $28.67 $29.39 $30.10 $30.86 $31.61

Water Meter Technician $26.44 $27.10 $27.76 $28.45 $29.15 $29.88 $30.60 $31.37 $32.13 Grounds Maintenance
Worker $24.66 $25.27 $25.89 $26.54 $27.18 $27.86 $28.54 $29.26 $29.97

Streets Maintenance
Worker $24.66 $25.27 $25.89 $26.54 $27.18 $27.86 $28.54 $29.26 $29.97

Wastewater Maintenance
Worker $24.73 $25.35 $25.97 $26.62 $27.27 $27.95 $28.63 $29.35 $30.06

Except as so modified, Resolution Nos. 2023-051, 2023-052, 2023 -060 and 20 23-061 of the City’s Classification and Salary Schedule shall remain unmodified and in full force and effect.

3. Resolution Nos. 2022-044, 2022-045, 2022-046, 2022-054, 2022-061, 2022-088, 2023-004, 2023-005, 2023-011, 2023-012 and 20 23-034 of the City’s Classification and Salary Schedule are revised to establish the following changes to the salary schedule:

The salaries below are effective with the pay period which includes July 1, 2022:

279
RESOLUTION NO. 2023-073
PAGE 3
Non-Management Classifications (monthly salary amounts):

Step A Step B Step C Step D Step E
Facilities Maintenance Supervisor $6,756 $7,094 $7,449 $7,821 $8,212 Facilities Maintenance Technician $4,343 $4,560 $4,788 $5,028 $5,279 Water Meter Technician $4,418 $4,639 $4,871 $5,114 $5,370 Water Meter Lead Technician $5,097 $5,352 $5,620 $5,901 $6,196 Equipment Lead Mechanic $5,605 $5,885 $6,180 $6,489 $6,813 Grounds Maintenance Worker $4,109 $4,315 $4,530 $4,756 $4,995 Streets Maintenance Worker $4,109 $4,315 $4,530 $4,756 $4,995 Wastewater Maintenance Worker $4,123 $4,329 $4,545 $4,772 $5,011 Grounds Maintenance Lead Worker $4,734 $4,971 $5,219 $5,480 $5,754 Streets Maintenance Lead Worker $4,734 $4,971 $5,219 $5,480 $5,754 Wastewater Maintenance Lead Worker $4,749 $4,987 $5,236 $5,498 $5,773 Maintenance Coordinator $4,920 $5,166 $5,424 $5,695 $5,980 Cross Connection Specialist $5,445 $5,718 $6,004 $6,304 $6,619 Water Distribution Operator $4,745 $4,983 $5,121 $5,493 $5,768 Water Distribution Lead Operator $5,445 $5,718 $6,004 $6,304 $6,619 Water Treatment Operator $5,319 $5,585 $5,864 $6,157 $6,465 Water Treatment Lead Operator $6,104 $6,409 $6,729 $7,066 $7,419

Part-time Classifications (hourly salary amounts):

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Facilities Maintenance
Technician $25.06 $25.68 $26.31 $26.97 $27.62 $28.31 $29.01 $29.73 $30.46

Water Meter Technician $25.49 $26.13 $26.76 $27.43 $28.10 $28.80 $29.51 $30.24 $30.98 Grounds Maintenance
Worker $23.71 $24.30 $24.89 $25.52 $26.14 $26.79 $27.45 $28.13 $28.82

Streets Maintenance
Worker $23.71 $24.30 $24.89 $25.52 $26.14 $26.79 $27.45 $28.13 $28.82

Wastewater Maintenance
Worker $23.78 $24.38 $24.97 $25.60 $26.22 $26.88 $27.53 $28.22 $28.91

Except as so modified, Resolution Nos. 2022-044, 2022-045, 2022-046, 2022 -054, 2022- 061, 2022 -088, 2023-004, 2023 -005, 2023-011, 2023-012 and 20 23-034 of the City’s Classification and Salary Schedule shall remain unmodified and in full force and effect.

4. Resolution Nos. 2021-060, 2021-064, 2021-070, 2021-071, 2021-077, 2021-075, 2021-081, 2021-082, 2021 -087, 2022 -005, 2022 -014, 2022 -017 and 20 22-023 of the City’s Classification and Salary Schedule are revi sed to establ ish the following changes to t he salary schedule:

The salaries below are effective with the pay period which includes July 1, 2021:

Non-Management Classifications (monthly salary amounts):

Step A Step B Step C Step D Step E
Facilities Maintenance Supervisor $6,640 $6,972 $7,321 $7,687 $8,071 Facilities Maintenance Technician $4,262 $4,476 $4,699 $4,934 $5,181 Water Meter Technician $4,337 $4,554 $4,782 $5,021 $5,272 Water Meter Lead Technician $5,013 $5,263 $5,527 $5,803 $6,093 Equipment Lead Mechanic $5,501 $5,776 $6,064 $6,368 $6,686 280
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Grounds Maintenance Worker $4,028 $4,230 $4,441 $4,663 $4,897 Streets Maintenance Worker $4,028 $4,230 $4,441 $4,663 $4,897 Wastewater Maintenance Worker $4,042 $4,244 $4,456 $4,679 $4,913 Grounds Maintenance Lead Worker $4,645 $4,877 $5,121 $5,377 $5,646 Streets Maintenance Lead Worker $4,645 $4,877 $5,121 $5,377 $5,646 Wastewater Maintenance Lead Worker $4,661 $4,894 $5,138 $5,395 $5,665 Maintenance Coordinator $4,831 $5,072 $5,326 $5,592 $5,872 Cross Connection Specialist $5,343 $5,611 $5,891 $6,186 $6,495 Water Distribution Operator $4,662 $4,895 $5,140 $5,397 $5,667 Water Distribution Lead Operator $5,343 $5,611 $5,891 $6,186 $6,495 Water Treatment Operator $5,223 $5,485 $5,759 $6,047 $6,349 Water Treatment Lead Operator $5,986 $6,285 $6,600 $6,930 $7,276

Part-time Classifications (hourly salary amounts):

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Facilities Maintenance
Technician $24.59 $25.21 $25.82 $26.47 $27.11 $27.79 $28.47 $29.18 $29.89

Water Meter Technician $25.02 $25.65 $26.27 $26.93 $27.59 $28.28 $28.97 $29.69 $30.42 Grounds Maintenance
Worker $23.24 $23.82 $24.41 $25.02 $25.63 $26.27 $26.91 $27.58 $28.25

Streets Maintenance
Worker $23.24 $23.82 $24.41 $25.02 $25.63 $26.27 $26.91 $27.58 $28.25

Wastewater Maintenance
Worker $23.32 $23.90 $24.48 $25.10 $25.71 $26.35 $26.99 $27.67 $28.34

Except as so modified, Resolution Nos. 2021-060, 2021-064, 2021-070, 2021-071, 2021- 077, 2021-075, 2021-081, 2021-082, 2021-087, 2022-005, 2022-014, 2022-017 and 2022- 023 of the City’s Classification and Salary Schedule shall remain unmodified and in full force and effect.

5. SAVINGS CLAUSE - Should any portion of this Resolution be held invalid by law and/or a court of competent juri sdiction, or entity with legal standing, then only th at clause will be stricken and the remainder of the Resolution will be in full force and effect. The City and the affected employee association will immediately commence to negotiate for the purpose of replacing any invalid or illegal provision. However, no such replacement is mandated.

APPROVED AND ADOPTED THIS 21st day of November, 2023.

________________________________
EUNICE M. ULLOA, MAYOR

ATTEST:

_____________________________

NATALIE GONZAGA, CITY CLERK

CITY OF CHINO

281
RESOLUTION NO. 2023-073
PAGE 5

State of California )
County of San Bernardino )ss.

City of Chino )

I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the forgoing Resolution was duly adopted by the City Council at a regular meeting held on the 21st day of November 2023, by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

______________________________________

NATALIE GONZAGA, CITY CLERK

282

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
California Department of Resources Recycling and Recovery (CalRecycle) Local Assistance Grant Programs.
..end

RECOMMENDATION
Approve Resolution No. 2023-069 authorizing applications to the California Department of Resources Recycling and Recovery (CalRecycle) for local assistance grant programs; and authorize the Director of Public Works to execute all necessary documents on behalf of the City. ..body

FISCAL IMPACT
Approving this resolution will have no fiscal impact on 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

283
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TITLE: CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) LOCAL ASSISTANCE GRANT PROGRAMS.

PAGE: 2

Revenue:

Expenditure:

Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 284
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TITLE: CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) LOCAL ASSISTANCE GRANT PROGRAMS.

PAGE: 3

BACKGROUND
CalRecycle awards annual payments to cities and counties for the City/County Payment Program, Used Oil Payment Program and has recently added the SB1383 Local Assistance Grant Program.

The Local Assistance Grant program is a non -competitive grant program that provi des funding to local jurisdictions to assist with the implementation of regulation requirements associated with SB 1383. The funds awarded to eligible cities and counties are specifically for recycling activities and implementing projects to assist CalRecy cle in reaching and maintaining their recycling goals.

ISSUES/ANALYSIS
On October 5, 2023, CalRecycle announced that all jurisdictions applying for Local Assistance Grant Program funds must provide an approved resolution authorizing their submittal of an annual application to CalRecycle for these funds. The current Local Assistance grant program provides funding to local jurisdictions to assist with the implementation of regulation requirements associated with SB1383, including but not limited to:
 Capacity Planning
 Collection
 Edible Food Recovery
 Education and Outreach
 Enforcement
 Inspection
 Program Evaluation/Gap Analysis
 Procurement Requirements
 Record keeping
The funding estimate for the City of Chino is $171,753.00. Grants will be awarded March 20 24 and the grant term ends April 1, 2026.

Therefore, staff is recommending approval of Resolution No. 2023 -069, authorizing the ongoing submittal of applications to CalRecycle for payment programs. The resolution will approve staff’s submittal of all eligible CalRecycle grant applications and authorize the City Manager to execute all required documents related to the grant programs.

Attachment: Resolution 2023-069

285

RESOLUTION NO. 2023-069

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, AUTHORIZING SUBMITTAL OF INDIVIDUAL GRANT

APPLICATIONS TO THE CALIFORNIA DEPARTMENT OF

RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) FOR

ALL GRAN T P ROGRAMS FOR WH ICH THE CIT Y OF CHINO IS

ELIGIBLE

WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s ( State) effo rts to reduce, recycle , and reuse so lid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and

WHEREAS, in furtherance of this authority CalRecycle is required to estab lish procedures governing the application, awarding, and management of the grants; and

WHEREAS, CalRecycle grant application procedures r equire, among other things, an applicant’s governing body to declare by resolution certain authorizations related to t he administration of CalRecycle grants.

NOW, THEREFORE, BE IT RESOLVED that the City of Chino authorizes the submittal of applications to CalRecycle for all grants for which the City of Chino is eligible; and

BE IT F URTHER RESOLVED that the Director of P ublic Works , or their d esignee, is hereby authorized and empowered to execute in the name of the City of Chino all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project; and

BE IT FURTHER RESOLVED that this authorization is effective for five y ears from the date of adoption.

APPROVED AND ADOPTED THIS 21st DAY OF NOVEMBER 2023.

EUNICE ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA, CITY CLERK

286
RESOLUTION NO. 2023-069
PAGE 2

State of California )
County of San Bernardino )ss.

City of Chino )

I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting held on the 21st day of November 2023, by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

287

MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: NOVEMBER 21, 2023

TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER

SUBJECT
..titl e
City of Chino Public Safety, Roads, Essential Services Measure. ..end

RECOMMENDATION
..recommendation

1. Adopt Resolution 2023 -071, declaring a fiscal emergency due to the projected severe deficits in future City budgets.

2. Adopt Resolution 2023-072, to approve the following:
a. Call and give notice of a Special Municipal Election for the purpose of submitting to the City’s qualified voters the “City of Chino Public Safety, Roads, Essential Services Measure,” which enacts the “City of Chino Transactions and Use Tax Ordinance” that establishes a general -purpose one percent retail transactions and use tax measure subject to majority voter approval; b. Request the Board of Supervisors of the County of San Bernardino to consolidate the Special Municipal Election with the Statewide Primary Election to be held on Tuesday, March 5, 2024;
c. Provide and set the rules for the filing of arguments for and aga inst the measure and rebuttal arguments;
d. Direct the City Attorney to prepare the impartial analysis of the ballot measure; and
e. Provide for other election matters as required by law.

3. Conduct first reading of Ordinance to be submitted to City’s voters entitled, "AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA,

ESTABLISHING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION,” reading by title only and waiving further reading.

4. Authorize the Mayor, on behalf of the City Council, to prepare and file a written argument in favor of the proposed measure.

5. Authorize the City Manager to execute all the necessary documents on behalf of the City.

FISCAL IMPACT
Subject to approval by Chino voters on the March 5, 2024 Special Municipal Ele ction, a 1% local transactions and use tax (sales tax) would take effect pursuant to the timeline specified in 288
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Revenue and Taxation Code §7265, projected to be July 1, 2024. Staff estimates that a 1% local sales tax would generate additional annual revenues for the City of Chino of approximately $28 million (based on FY 2023 -24 sales tax projections). Should voters approve the proposed sales tax measure, amendments to the adopted FY 2023 -25 City budget will be brought to the City Council for consideration.

Under Revenue and Taxation Code § 7272, the California Department of Tax and Fee Administration (CDTFA) will assess the City charges to administer the new local sales tax based on actual costs, with a statutory maximum not to exceed $175,000.

San Bernardino County will incur additional costs by consolidating elections as requested by the City of Chino. The City would be required to reimburse the County for the City's share of the applicable costs, estimated to be $40,000 based on past elections.

Additionally, the City will need to develop and make available to residents information about the proposed measure, resulting in costs related to public outreach and education, estimated to be $103,000.

The FY 2023-2025 Budget would be adjusted as follows:

Account Description From To
100 General Fund Reserves $318,000
1002030-43650 City Clerk – Other Contractual $ 40,000 1002040-43320 Community Promotion – Training/
Education/ Meetings
$ 25,000
1002040-43650 Community Promotion – Other
Contractual
$ 78,000
1003000-43515 Fiscal Services – $175,000
$318,000 $318,000

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

Revenue:

Expenditure:

Transfer In: Transfer Out:
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TITLE: CITY OF CHINO PUBLIC SAFETY, ROADS, ESSENTIAL SERVICES MEASURE.

PAGE: 3

BACKGROUND
Summary
The Chino City Council will vote on whether to place a measure on the March 5, 2024 ballot to provide Chino voters the option of enacting a secure, locally generated general fund revenue source. The measure for consideration by Chino voters would increase the City’s sales tax by 1% to provide an estimated $28 million annually to maintain essential City services for residents and businesses, including police, 911 emergency medical response, street repair, clean local drinking water, clean and safe public are as, while addressing homelessness, and maintaining senior, veteran, and youth programming. For the proposed measure to pass, a majority +1 vote is required.

City of Chino Budget
The City of Chino receives revenue from numerous sources, including sales tax , property tax, user fees, and development revenue, with the major revenue sources being sales tax and property tax, which account for 67% and 67.5% of total General Fund revenues, respectively, in Fiscal Years 2023-2024 and 2024-2025.

Over time, the City’s revenues have increased, and there have been significant infusions of one- time revenues over the last three years. However, while City revenues have increased over time and are expected to continue to do so, it is anticipated that expenditures will outpa ce revenues yearly for the next 10 -year period and beyond. Revenue increases are being absorbed by the escalating operational costs of services, materials, and labor, and increased inflation, which impact the City’s ability to provide essential services to the community. Operational costs will “crowd out” capital investments and other strategic opportunities. Additionally, to remain financially sound in the future, City expenditures should be based on ongoing revenues as much as possible.

Over the years, the Chino City Council has taken a fiscally prudent approach to balancing the City budget. During and after the 2008 recession and the COVID -19 pandemic, the City undertook a financially responsible approach to address budget challenges, wh ich included reducing the City’s workforce, eliminating programs, and deferring repairs and maintenance. By taking these actions, the City was able to approve operationally balanced budgets.

Consistent with this approach, the City has historically maintai ned a healthy General Fund reserve with the goal of maintaining adequate reserve levels to mitigate future risks (e.g., revenue shortfalls and unanticipated expenditures).

This method allowed the City to adopt operationally balanced budgets while continui ng to provide quality services to its residents and businesses through the recession and COVID -19, but the impact of rising costs associated with providing essential services to residents and businesses, along with the costs to complete deferred maintenance and projects, is projected to result in structural budget deficits in the near future.

General Fund Forecast
On June 20, 2023, the Chino City Council adopted a two -year budget, covering Fiscal Years 2023-2024 and 2024-2025, that anticipates the City of Chino will be operating in a deficit during this period. The City is projecting a structural deficit averaging $15 million annually starting in FY 290
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2024-2025. This fiscal year, the City‘s shortfall is projected to be $5.7 million, with reserves covering the difference.

While the operating deficits will initially be covered by the City’s existing General Fund reserves, long-term operating deficits are projected to exhaust General Fund reserves by FY 2028 -2029.

The City will face significant challenges that m ay force crucial City services and programs to be reduced or eliminated in the coming years unless additional sources of revenue for the General Fund are secured. Protecting Chino’s long-term financial stability is key to maintaining essential City services for residents and businesses, including police, 911 emergency medical response, street repair, clean local drinking water, clean and safe public areas, while addressing homelessness, and maintaining senior, veteran, and youth programming.

The persistent structural budget imbalance is projected to deplete the $73 million currently in the City’s reserves, making the City increasingly vulnerable to emergencies and other unanticipated factors, and threatening its ability to provide essential services.

ISSUES/ANALYSIS
Options to Achieve a Structurally Balanced City Budget
Considering the gravity and severity of the anticipated fiscal crisis, staff was directed to evaluate potential expenditure reductions as well as existing and potential revenue sources to ensure a City budget that is both operationally and structurally balanced.

Should the City remain in the status quo, it will become more difficult to protect the City’s valued quality-of-life programs and maintain vital services. To address higher costs, the City Council will be required to prioritize the mandatory services needed to operate the City and may have to drastically reduce, eliminate, or choose among essential functions and services.

Revenue Options
To protect Chino’s future and maintain the current standard of service, the City has explored different approaches to generate revenue, with the goal of securing a stable, reliable source of general-purpose funding.

The revenue sources considered include:
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 User Fees – A city-wide cost-of-service study was recently conducted, and fees were adjusted. However, user fees are designed to cover the cost of providing a particular service and do not provide for general operating revenues.  Grants – The City identifi es and pursues a wide variety of grants to fund projects and services. Most grants, however, provide only one-time funds for specific purposes.  Fines and Penalties – The levying and collection of fines and penalties is labor - intensive and costly, reducing the benefits of potential increases for purposes of increasing revenues.
 Investment Earnings – The City invests to maximize interest earnings; however, investment earnings are subject to market environments and cannot be relied upon to cover operations.
 Taxes – Property and parcel taxes are subject to 2/3 voter approval. A transient occupancy tax, also known as hotel tax, would not provide a significant revenue source in Chino.

A balanced mix of revenues contributes to the long -term financial sustainability of the City and allows the City to plan for the future, invest in infrastructure improvements, and address emerging challenges without relying solely on short-term fixes.

Expenditure Reductions
Without significant additional revenues, the City will have to make drastic cuts in those critical areas where it has the flexibility to do so, resulting in potential impacts to:
 Public Safety – Inability to staff needed police officer positions; increase in emergency response times; reduced capability to keep gangs and criminals out of Chino.  Infrastructure – Inability to replace aging park s, equipment, and facilities; and maintain street infrastructure.
 Community Services – Reduce or eliminate programs and events such as youth programming, senior services, mental health services, social services, and special events.
 Maintenance and Facilities – Reduce the maintenance schedule for parks and facilities; reduce streets rehabilitation schedule.

Without additional general revenues, the City would be forced to prioritiz e basic and mandated services that do not provide for enhancing the quality of life or maintenance of the community.

Road, parks, and facilities maintenance expenditures are among those projected to have the most significant negative impact on the City’s G eneral Fund reserves. However, based on the needs identified in the recently completed Pavement Management Plan and Parks & Facilities Master Plan, continuing to defer maintenance puts these valuable assets at risk of accelerated deterioration and needed r eplacement, in addition to negatively impacting the residents and businesses that rely on these facilities.

Recommendation – Increase Revenues through Sales Tax
Given the limited options for increasing revenues to the levels needed to keep up with inflatio n and the exponentially increasing costs of materials, labor, utilities, and other operational factors, a local sales tax increase provides the best available option to ensure dedicated annual revenue to address the City’s fiscal emergency and ensure that Chino can continue to provide critical essential services. Additionally, a local sales tax measure guarantees that local funds remain in Chino.
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Transactions and Use Tax (Sales Tax)
The California Department of Tax and Fee Administration (CDTFA ) collects the sales and use tax from local retailers selling tangible personal property or from the users of tangible personal property purchased from retailers outside of the State of California. California cities currently receive 1% of the total sales tax rate within its jurisdiction, which is known as the Bradley -Burns Uniform Local Sales & Use Tax.

Chino’s sales tax rate is currently 7 .75%, of which the City receives 1%. The State of California receives 6%, and San Bernardino County receives the rem aining 0.75%. The current 1% local Bradly-Burns rate is a general tax and is allocated to all cities in California. It is unrestricted and received into the General Fund for general city services.

CURRENT BREAKDOWN OF CHINO SALES TAX
Sales Tax Breakdown with Current 7.75% Rate

State law authorizes city and county residents to adopt local transactions and use taxes in addition to the basic Bradley Burns tax. The local portion of the sales tax that a county and a city within that county can levy together is capped at 2%.

The San Bernardino County Transportation Authority (SBCTA) currently collects 0.75% per dollar of sales, of which 0.5% has been approved by the voters of San Bernardino, leaving 1.5% available for other local sales taxes.

If the County or other local districts or agencies pass additional local sales tax measures, those would also apply toward the cap. Once the 2% cap is met in Chino, Chino voters would no longer be able to implement a local sales tax measure to support local City services. The City of Chino would, instead, become part of the County funding pool and receive only a portion of those taxes to support its programs.

If Chino voters approve a local 1% sales tax measure, which is still under the 2% cap, all the tax dollars from that measure will be allocated locally to Chino to support its services. 293
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Comparison of Local Sales Tax Rates
The proposed 1% measure will keep Chino competitive with other cities in the region, many of which already have local sales tax rat es equal to or higher than what is being proposed for Chino (8.75%). The additional revenue generated by these cities has allowed them to make important investments in their communities. Ontario, for example, is receiving approximately $100 million more a year as a result of its local sales tax measure.

In 2022 alone, 70 cities in California pursued sales tax increases to generate revenues for their communities, with many others expected to consider tax increases in the future.

SALES TAX RATES IN NEIGHBORING CITIES
 Ontario 8.75%
 Corona 8.75%
 Redlands 8.75%
 San Bernardino 8.75%
 Montclair 9.0%
 Claremont 9.5%
 Riverside 8.75%
 Murrieta 8.75%
 Pomona 10.25%
Sales Tax Break Down with Local Sales Tax Increase
The funds from the proposed Chino sales tax measure would be locally generated and, therefore, safe from seizure by the State or other entities. These funds would additionally enable the City to invest in services and infrastructure of priority to the Chino community and help support and maintain the qualit y of life for Chino residents and businesses. Increasing locally controlled revenue funds will help stabilize Chino’s finances and will allow the City to continue to provide necessary services essential to the safety and quality of life of the community.

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Next steps
To provide Chino voters the option of approving a 1% sales tax increase to fund critical City services, the Chino City Council must unanimously approve Resolution No. 2023 -071 declaring a fiscal emergency. This allows the City Council to proc eed to call for a Special Municipal Election on March 5, 2024, to allow Chino voters to consider a general tax measure to address the fiscal emergency.

By adopting Resolution No. 2023 -072, the City Council calls for the Special Municipal Election on March 5, 2024 and requests its consolidation with the Statewide Primary Election. It also approves the ordinance enacting the 1% sales tax increase, subject to voter approval at the election. The resolution directs the City Attorney to prepare an impartial analysis of the measure and authorizes the Mayor on behalf of the City Council to prepare an argument in favor of the measure and a rebuttal of an argument filed against the measure if required.

A two -thirds (i.e., 4 Councilmembers) vote of all members of the City Council (Gov. Code Section 53724(b); Rev. & Taxation Code Section 7285.9) will be required to pass Resolution No. 2023-72 to order the submission of the proposed sales tax ordinance to the voters.

On March 5, 2024, City of Chino qualified voters would vote on the following ballot question:

City of Chino Public Safety, Roads, Essential
Services Measure

Shall the measure providing Chino funding for
general government use, such as maintaining
911 response, police/fire protection;
recruiting/retaining well-trained police officers;
preventing crime; repairing streets/potholes;
protecting local drinking water sources;
addressing homelessness; maintaining
veterans/senior/youth/ afterschool programs by
enacting a 1¢ sales tax providing approximately
$28,000,000 annually until ended by voters;
requiring audits/public spending disclosure/all
funds benefitting Chino residents, be adopted?
YES
NO

Impact and Applicability
Should the majority of qualified voters (50% + 1) vote “Yes” on the proposed measure, a 1% increase to the City of Chino sales tax will be enacted, generating approximately $28 million annually in General Fund revenue.

For those making applicable purchases in the City of Chino, the sales tax will cost an additional .01¢ per $1.00 spent on taxable goods or .10¢ for every $10.00 spent. The proposed sales tax 295
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excludes groceries, medical and dental services, real estate, rent, utilities, education, personal services, and labor.

Additionally, a portion of the City’s sales tax revenues are generated by non -residents, thus providing an opportunity for non -Chino residents to contribute their fair share to the community while enjoying the City’s amenities.

Increasing the sales tax by 1% is not likely to push residents and non -residents to shop in nearby cities instead of Chino, as many cities adjacent to and nearby Chino already have higher sales tax rates than Chino, as previously noted.

Unfunded Infrastructure and Neighborhood Improvement Projects To support the preservation of the City’s existing quality of life services and allow for the City to begin addressing $260 million in unfunded infrastructure and neighborhood improvement projects over the next 5 years, new revenue is requi red. It is important to secure the needed revenues as soon as possible, given that the costs of these projects continue to rise over time, further exacerbating the budget deficits and the severity of the City’s fiscal emergency. Many of these unfunded pro jects are necessary for the well -being of the Chino community as they support safe neighborhoods, quality infrastructure, and reliable, high-quality services that attract businesses and residents. Funding these infrastructure and neighborhood improvement projects invests in Chino’s future.

By enacting a 1% sales tax, the City will be able to address the budget imbalance and fiscal emergency as well as start to fund important infrastructure projects the City hopes to complete within the next 5 years, such as:
 Public Safety - $9.9 MILLION for a Police substation, Fire station repairs and improvements, and maintaining 911 emergency response times.  Homeless Intervention & Mental Health Services - $6.3 MILLION to provide support for individuals and families with children.
 Parks, Recreation, & Community Beautification - $45.8 MILLION for maintenance, lighting and safety improvements; and restroom, ballfield, and court improvements.  Local Drinking Water & Improving Flood Control - $120.3 MILLION for improvements to Chino’s drinking water and to purify and reclaim wastewater to help Chino withstand droughts.
 City-Wide Fiber Internet Services - $3.2 MILLION for community -wide fiber and internet services.
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 Streets & Sidewalks - $38 MILLION for repairs, construction, and safety improvements to enhance traffic flow.

Accountability
The City of Chino Public Safety, Roads, Essential Services Measure includes numerous accountability provisions, such as public disclosure of all spending and annual independent financial audits, ensuring that funds from this measure will be used efficiently, effectively, and as intended. The City is required to publicly report on the expenditure of revenues, including the revenues generated by the proposed sales tax measure.

Importantly, the reve nues generated by the measure will be under local control to provide general local services and will be spent on quality -of-life services and programs benefitting Chino residents and businesses. By law, the State and County cannot take this funding away.

Overview of the City of Chino Public Safety, Roads, Essential Services Measure The ballot measure proposed for voter consideration:
 Enacts a 1% local sales tax for general City purposes  Generates approximately $28 million annually
 Places all funds genera ted by the measure in the City’s General Fund for maintaining essential city services for residents and businesses, including police, 911 emergency medical response, street repair, clean local drinking water, clean and safe public areas, while addressing h omelessness, and maintaining senior, veteran, and youth programming, as determined each year by the City Council through the budget approval process
 Includes the funds generated by the sales tax in the City's annual independent audit  Is subject to the City Council’s annual review and report on expenditures  Ensures that these locally generated revenues remain in Chino

Attachments:

1. Resolution No. 2023-071 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, UNANIMOUSLY DECLARING A FISCAL EMERGENCY.

2. Resolution No. 2023-072 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, CALLING AND GIVING NOTICE OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, MARCH 5, 2024.

297
01225.0007/937724.1
RESOLUTION NO. 2023-071

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, UNANIMOUSLY DECLARING A FISCAL
EMERGENCY PURSUANT TO ARTICLE XIIIC SECTION 2(b) OF

THE CALIFORNIA CONSTITUTION
WHEREAS, pursuant to Article XIIIC, Section 2(b) of the California State Constitution, an election to impose a general tax is required to be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by unanimous vote of the governing body; and
WHEREAS, the City Council may act to submit to the voters at the special municipal election to be held on March 5, 2024 (an ele ction which does not include the election of a person to membership on the City Council) a question related to the imposition of a general tax, if a fiscal emergency is declared; and
WHEREAS, the City of Chino (“City”) faces severe budget pressures due to continued increases in operating expenditures significantly outpacing increases in revenue; and WHEREAS, protecting the City’s long-term financial stability is key to maintaining essential city services for residents and businesses, including police, 911 e mergency medical response, street repair, clean local drinking water, clean and safe public areas, while addressing homelessness, and maintaining senior, veteran, and youth programming; and WHEREAS, the City is facing a financial crisis. In Fiscal Year 2023-2024, the City shortfall is projected to be $5.7 million, with reserves covering the difference. Starting in Fiscal Year 2024- 2025, the City is projecting a structural deficit of $15 million on average annually; and

WHEREAS, after reviewing the Fiscal Year (FY) 2023 -2025 budget, which outlines $118 million and $118.7 million in expenditures for 2023-2024 and 2024-2025 budgets, respectively, it is estimated that the City’s current needs require an additional $15 million on average annually, which would deplete the $73 million currently in reserves by FY 2028-29; and WHEREAS, the City Council wishes to declare a fiscal emergency as that term is used in Article XIIIC, section 2(b) of the California State Constitution; and WHEREAS, the City Council undertoo k a financially responsible approach to overcoming hurdles in the years during and after the recession and COVID-19 to balance the budget, which included reducing the City’s workforce, eliminating programs, and deferring repairs and maintenance; and

WHEREAS, while having an operationally balanced budget, the City has approximately $260 million in unfunded infrastructure and neighborhood improvement projects that, over time, will become more expensive to address; and

WHEREAS, unless addressed, the Cit y will be facing challenges that may force essential City services and programs to be reduced or eliminated in the coming years if additional sources of revenue for the General Fund are not identified; and

WHEREAS, it will become more difficult to protect the City’s valued quality of life 298
Resolution No. 2023-071

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Chino City CouncilNovember 21, 2023

Chino City Council
November 21, 2023