TO: Linda Reich, City Manager
FROM: Hye Jin Lee, Director of Public Works
DATE: May 20, 2025
SUBJECT:
BACKGROUND
FINDINGS
Caltrans Abatement Payment 1,529,548.70$
216,128.00$
397,872.00$
915,548.70$
2. Misallocated Project Charges ST061 Pine Avenue Connector Correction to General Fund (Repayment to Fund 322)
Fund Object Project Fiscal Year Amount Description
3227190 48003 ST061 2024 4,166.63$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 8,333.34$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
3227190 48003 ST061 2024 4,166.67$ Advocacy
Total 50,000.00$
General Fund (GF)
Corrective Memorandum - Reconciliation and Funding Allocation for Pine Avenue Connector (ST061) and SR-71 Interchange Improvements (ST204)
This memorandum documents funding allocation corrections identified during the reconciliation of expenditures for the Pine Avenue Connector (ST061) and the State Route (SR-71) Interchange Improvements Project (ST204), both of which are included in the City's Capital Improvement Program and partially funded by Measure I Arterial funds administered by the San Bernardino County Transportation Authority (SBCTA).
1. Expired Agreement & SAFETEA-LU Repayment:
Caltrans audit in 2024 found that the City's agreement with Huitt-Zollars for preliminary engineering had expired in 2020. As a result, approximately $1,529,548.70 in SAFETEA-LU federal expenditures incurred between 2020 and 2025 were deemed ineligible and repaid using:
Preserve DIF (Fund 260)
MI - (Fund 328)
These funds were deemed ineligible due to the expiration of the preliminary engineering agreement with Huitt-Zollars and the cessation of SAFETEA-LU as an active funding source.
Misallocated Project Costs (continued)
Correction to General Fund (Repayment to Fund 328)
Fund Object Project Fiscal Year Amount Description
3287103 41020 ST061 2022 2,212.94$ Inspection
3287103 48009 ST061 2022 23,103.32$ Project R7061 3287103 48005 ST061 2022 150,255.80$ Project R7061 3287103 48005 ST061 2022 288,707.38$ Project R7061 3287103 48005 ST061 2022 (102,466.50)$ moved R7061
Total 361,812.94
Correction to General Fund (Repayment to 260 which backfills 320) Fund Object Project Fiscal Year Amount Description
3207100 43650 ST061 2022 4,166.63$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 43650 ST061 2022 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.63$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
3207100 48003 ST061 2023 4,166.67$ Advocacy
Total 100,000.00$
511,812.94$
Project ST061 Current Budget Corrected Budget
Total Costs 5,853,756.63$ 5,853,756.63$ SAFETEA-LU 3,064,262.39$ 1,534,713.69$ 320 Fund *CW DIF
320 Fund *Pres. DIF
MI - (Fund 328) 671,559.16$ 1,389,625.97$ MI - (Fund 322) 197,390.34$ 147,390.34$ General Fund -$ 1,427,361.64$ Total Expenditures 5,853,756.63$ 5,853,756.63$ 1,354,664.99$ 1,920,544.74$
Advocacy Charges – $150,000 in advocacy-related expenditures were incorrectly charged to the Measure I Fund 322 and Transportation Fund 320, which is backfilled by DIF and should have been funded by the General Fund.
Final Funding Allocations – Pine Avenue Connector Project (ST061) Following the funding allocation corrections, the final expenditures for the Pine Avenue Connector Project (ST061) have been reconciled and documented. This project will be officially closed out as of June 30, 2025. Going forward, the City will continue efforts under the successor project, Pine Avenue Connector / Bridge Project (ST261).
Total Impact to General Fund
Pine Avenue Repairs – A total of $361,812.94 in costs associated with Pine Avenue Repair Project R7061 in 2022 were improperly recorded to Fund 328 and have since been corrected to reflect appropriate General Fund coverage.
3. CPNA Measure I Arterial Fund Re-Allocation of Costs
Project ST204 (State Route 71 Interchange Project)
Fiscal Year Arterial MI- CPNA DIF
FY 2020 -$ 5,812.50$ FY 2021 309,855.01$ -$
FY 2022 285,007.53$ -$
FY 2023 32,253.29$ 50.00$
FY 2024 30,874.76$ -$
FY 2025 21,647.22$ -$
Subtotal 679,637.81$ 5,862.50$ Total Expenditures 685,500.31$
Cost Share Reallocation
Arterial MI 64.8% 444,204.20$ Reimbursement DIF 35.2% 241,296.11$
328 - Fund Project ST061 (Pine Avenue Connector )
Fiscal Year Arterial MI- CPNA DIF (total)
FY 2020 -$ -$
FY 2021 -$ -$
FY 2022 582,638.94$ -$
FY 2023 19,919.52$ -$
FY 2024 69,000.70$ -$
FY 2025 397,872.00$ -$
Subtotal 1,069,431.16$ 2,036,672.74$ GF Corrections (361,812.94)$ -$ Total 707,618.22$ 2,036,672.74$ SAFETEA-LU Match (383,678.43)$
Abatement Payment (216,128.00)$
Remaining DIF 1,436,866.31$
CPNA MI Arterial 707,618.22$
2,144,484.53$
SAFETEA-LU (80%) 1,534,713.69$ Costs 2011 to Dec. 2019 DIF match (20%) 383,678.43$ Per Caltrans invoicing 1,918,392.12$ Total Participating Costs Arterial MI 64.8% 1,389,625.97$ Reimbursement DIF 35.2% 754,858.55$ Costs for 2020-2025 2,144,484.53$ Reallocated
$ 1,833,830.17
Cost Share Amount to be Reallocated
Summary of CPNA Measure I Arterial Fund Reallocation
Staff completed a reconciliation of expenditures for the SR-71 Interchange (ST204) and Pine Avenue Connector (ST061) projects and identified misallocations between Development Impact Fees (DIF) and Measure I Arterial funds. To correct this, approximately $1.8 million in costs incurred between 2020 and 2025 will be reallocated to Measure I Arterial Fund 328, based on an updated cost share of 64.8% Measure I and 35.2% DIF.
Total SBTCA Reimbursement Request