For City Council Meeting September 22, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Yazdan Emrani, P.E., Director of Public Works
Title
Request City Council to: (1) Adopt Resolution No. 8575 Approving a Construction Fee Credit and Reimbursement Agreement by and Between the City of Rialto and Warmington Residential California, Inc., a California Corporation, Including a Credit of $198,288 From Regional Traffic Fee Fund, and $2,848 From Street Median Fee Fund, and Authorizing the Associated Reimbursement to the Developer; and (2) Authorize the City Manager or Their Designee to Execute all Related Documents.
Body
RECOMMENDATION:
Staff requests that City Council:
1) Adopt a resolution approving a construction fee credit and reimbursement agreement by and between the City of Rialto and Warmington Residential California, Inc., a California Corporation; and
2) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND:
Warmington Residential California, Inc., a California Corporation (hereinafter the “Developer”), submitted various planning and development applications to the City and proposes to construct 81 attached condominium dwelling units with private streets on 4.99 acres of vacant land (APNs: 0128-361-20 and 0128-361-24) located at the northeast corner of Foothill Boulevard and Spruce Avenue (the “Project”) (see map included as Attachment 1).
On March 19, 2025, the City of Rialto Planning Commission approved Precise Plan of Design (PPD) 2024-0008, which established Conditions of Approval for the Project. The Conditions of Approval for the Project require the Developer to construct specified off-site improvements (“Off-Site Improvements”), including but not limited to widening the Foothill Boulevard frontage (“Roadway Widening”) and construction of a raised and landscaped median (“Median Work”).
The roadway widening and median work are both eligible for reimbursement through a Construction Fee Credit and Reimbursement Agreement pursuant to the provisions of Section 3.33.100 of the Rialto Municipal Code (Fee Credits), which states:
…if as a condition of approval of a development project a Developer constructs a public facility identified in a Nexus Report for which a development impact fee is imposed, then the Developer shall be eligible to receive a fee credit toward the development impact fee imposed on the development project for the same type of public facility so constructed. The Developer shall not be entitled to reimbursement for any excess in the costs to construct the public facility over the amount of the Developer's obligation to pay the development impact fee for the type of public facility constructed, unless a separate reimbursement agreement is approved by the City Council.
ANALYSIS/DISCUSSION:
Section 3.33.110 of the Rialto Municipal Code (Construction and Credit Agreements) permits the City Manager to negotiate a Construction Fee Credit and Reimbursement Agreement requested by a Developer, subject to City Council approval. The City Building Official or the City Engineer shall determine the amount of the fee credit based upon the evidence of costs to construct the public facility submitted by the Developer.
Regional Traffic Fee Credit
The Regional Traffic Fee Program (Measure I) identifies the widening of Foothill Boulevard as an eligible improvement. The Regional Traffic Fee Program (RMC 3.33.160) compensates developers for constructing roadway capacity improvements, including roadway widening, curb/gutter/sidewalks, and streetlights (complete streets).
The Project owes $198,288 in Regional Traffic Development Impact Fees at the time of issuance of the building permit. The estimated construction cost for eligible improvements of the Roadway Widening, considered an eligible Regional Traffic Fee improvement, is $250,172. In accordance with Section 3.33.110 of the Rialto Municipal Code, the Developer has requested a credit toward the Regional Traffic Fee for the cost to construct the roadway widening and has requested reimbursement of the cost exceeding the Regional Traffic Fee, with reimbursement estimated at $51,884.
Street Median Fee Credit
The City’s local Street Median Development Impact Fee (RMC 3.33.180) established a fee for construction of raised and landscaped medians along major arterials within the City pursuant to the City’s Circulation Element of its General Plan. Foothill Boulevard is identified as a 6-lane divided Major Arterial with a raised and landscaped median.
The Project owes $2,848 in Street Median Development Impact Fees at the time of issuance of the building permit. The estimated construction cost for the median work is $146,366. In accordance with Section 3.33.110 of the Rialto Municipal Code, the Developer has requested a credit towards the Street Median Fee for the cost to construct the median work and has requested reimbursement of the cost exceeding the Street Median Fee - with reimbursement estimated at $143,518.
The estimated cost of the Public Improvements and Net Reimbursement Due to Developer is summarized below:
The City will credit the Developer with the full amount of the Regional Traffic Fee and Street Median Fee due and will owe a reimbursement of $51,884 for the roadway widening and $143,518 for the median work to the Developer.
Conclusion
The City will base the final credit amounts upon the actual costs of constructing the eligible improvements. The Developer must provide invoices and evidence of payments to construct these improvements. The Developer must also comply with the City’s competitive bidding and contracting procedures as well as pay prevailing wages for these publicly financed improvements.
A copy of the proposed Construction Fee Credit and Reimbursement Agreement is included as Attachment 2, and the conflict disclosure statement with Warmington Residential California, Inc. is included as Attachment 3.
ENVIRONMENTAL IMPACT:
This Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332, In-Fill Development Projects.
Approval of the Construction Credit and Reimbursement Agreement is an administrative or fiscal action by the legislative body that will not result in any additional direct or indirect physical change in the environment than what was already analyzed (Section 15378(b) of the California Environmental Quality Act (CEQA) Guidelines).
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 3-1: Strengthen and diversify the economic base and employment opportunities and maintain a positive business climate.
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 3-7: Upgrade public infrastructure as an inducement to promote private investment.
LEGAL REVIEW:
The City Attorney’s Office has reviewed resolution and agreement and approved them as to form.
FINANCIAL IMPACT:
Operating Budget Impact:
There is no impact on the Operating Budget.
Capital Improvement Budget Impact:
The City normally receives Development Impact Fees at issuance of building permits. In this case, Developer will receive a full credit of the Regional Traffic Fee and Street Median Fee that would otherwise be due and payable upon issuance of a building permit. As the costs for the eligible fee credit work exceed the amount of the fee credit otherwise due, the City will reimburse the Developer the excess amount subject to the provisions of the Construction Fee Credit and Reimbursement Agreement. Upon completion of the public improvements, Staff will verify the final costs and the City and Developer will make reconciliation payments as appropriate in accordance with the terms of the Construction Fee Credit and Reimbursement Agreement.
The proposed Construction Fee Credit and Reimbursement Agreement will grant the Developer a credit of $198,288 against Regional Traffic Fee Fund, Account No. 22504312-47679 and $2,848 against Street Median Fee Fund, Account 22554314-47679 otherwise due. Upon project completion, the City will reimburse the Developer $51,884 from the Regional Traffic Fee Fund, Account No. 22504312-53001 (subject to the availability of funds at the time of reimbursement) and $143,518 from the Street Median Fee Fund, Account No. 22554314-53001 (subject to the availability of funds at the time of reimbursement).
If sufficient funds are not available in the applicable Impact Fee accounts at the time reimbursement is due, payment may be deferred in accordance with Section 5.4.4, “Availability of Unencumbered Impact Fees,” until sufficient funds are available and appropriated by the City Council.
Licensing
Before execution of any issued On-Site or Off-Site Construction Permits, the Subdivider secured a business license application and paid a Business License tax at the Contractor's rate, as well as Administration and State fees for his contractors performing any improvements, and shall renew accordingly.
ATTACHMENTS
1. Location Map
2. Proposed Construction Fee Credit and Reimbursement Agreement
3. Conflict Disclosure Statement