Chino Hills council extends local emergency and allocates $900,000 after City Hall fire

Chino Hills — The City Council unanimously voted Aug. 12 to continue a local emergency declared after a June 23 fire at Chino Hills City Hall and to appropriate $900,000 from the general fund to speed repairs and contractor payments while the city pursues insurance reimbursement.

City Manager Ben told the council that sprinklers activated on the second floor on June 23 and caused extensive water damage to areas on both floors. He said remediation and reconstruction work is “well underway” on the second floor and that staff expect to start moving employees back early next week. The city estimates the full restoration will cost about $4,500,000, with roughly $2,100,000 of work already completed and about $800,000 paid directly by the California Joint Powers Insurance Authority (CJPIA).

Ben told the council the $900,000 request would allow the city to pay contractors now and seek reimbursement from the CJPIA, and that “we don't anticipate that those costs will be disallowed by the insurance company.” He also said the city would reserve about $225,000 of the appropriation for purchases that may not be reimbursable (for example, replacement computer equipment or upgrades outside the damage scope).

Council members asked about liability and insurance oversight. The mayor told the chamber that “we found out that there was no negligence on any part.” The city stressed that the JPA’s insurance adjusters review and approve covered costs, and council members said the appropriation is intended to keep the schedule moving while insurers process claims.

The council moved, seconded and approved the extension of the emergency and the appropriation on a 5–0 vote. Staff said the council will receive updates at each successive meeting while reconstruction continues and some First Floor work remains about three weeks behind the Second Floor.