TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Award a Construction Contract to R2Build for the Well 16 Upgrades Project (WA234).
end
RECOMMENDATION
recommendation
1) Appropriate $774,707 from the Water Fund (Fund 520) and $200,000 from The Preserve Water Source, Storage and Distribution Development Impact Fee (Fund 261) for the Well 16 Upgrades Project (WA234), for a total project additional appropriation of $974,707 ; 2) approve the plans and specifications for construction as approved by the Director of Public Works; 3) approve the rejection of the non-responsive bid received from Estate Design & Construction; 4) award a construction contract to R2Build for the Well 16 Upgrades Project (WA234) for $967,000; 5) authorize up to $96,700 (10% of the contract amount) for construction contingencies as allowable per the Public Contract Code; and 5) authorize the City Manager to execute the necessary documents on behalf of the City.
body
FISCAL IMPACT
Requires an appropriation of $974,707. This includes an appropriation of $774,707 from the Water Fund (Fund 520), and an appropriation of $200,000 from The Preserve Water Source, Storage and Distribution Development Impact Fee (Fund 261). Sufficient fund balances are available in Funds 520 and 261. Expenditures incurred to date have covered costs for San Bernardino County Clerk filing, advertisement fees, and pump repair costs.
|
WA234 – Well No. 16 Upgrades Project |
|
Fund |
Adopted Budget |
Expenditures |
Appropriation |
Available Budget |
|
520 - Water Fund* |
$250,000 |
($79,507) |
$774,707 |
$945,200
|
|
261- Preserve Water DIF |
0 |
0 |
$200,000 |
$200,000 |
|
Total Available Budget |
$250,000 |
($79,507) |
$974,707 |
$1,145,200 |
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
• Financial Stability
• Responsible Long-Range Planning
|
Revenue:
|
Expenditure: 5207310 – 48005 | 48009 – WA234 & 2617005-48005-WA234 |
|
Transfer In: |
Transfer Out: |
BACKGROUND
The City of Chino encompasses approximately 30 square-miles, with a water service area of 29 square-miles. According to the U.S. Census Bureau, Chino has an estimated current population of 93,114 (2023), with a projected 2040 population of 113,333 (Southern California Association of Governments - SCAG). The City water service area serves a population of approximately 84,560 and primarily follows the City boundary and includes two treatment plants and six active groundwater wells.
The City of Chino's Water Master Plan, updated in January 2022, prioritizes the essential infrastructure needed to augment the City's local groundwater supply. This infrastructure includes groundwater supply wells, water treatment facilities, reservoirs, pump stations, and transmission lines. In 2023, the City completed the Phase III expansion of the Eastside Water Treatment Facility (EWTF), which included the piping connection of Well No. 16 (located on site) as a supply source to the expanded treatment plant. Phase III expansion of the EWTF and Well No. 16 Upgrades were both designed by the City’s Consultant, Hazen & Sawyer. These projects contribute to the City’s timely delivery of the water supply to support the continued development in The Preserve area.
The City’s Well No. 16 (Well 16) was designed to produce 1,200 gallons per minute (gpm) of water, treated on site at the EWTF. Well 16 has been inactive since 2019 due to impacts from contaminants and subsequent deterioration of the equipment. In 2023, a video survey was conducted and found that the casing was plugged, and observation of severe scaling was identified causing the motor pump to become inoperable. Expenditures were incurred to make repairs to the pump and enable this project to move forward. Moreover, this project includes installation of conduit, electrical and controller upgrades, instrumentation programming and preventative maintenance coatings to reduce future repair needs.
On November 1, 2022, City Council approved an amendment to the Professional Services agreement with Hazen and Sawyer in the amount of $67,176 for additional design of the Eastside Water Treatment Plant for the Well 16.
ISSUES/ANALYSIS
On May 21, 2025, the City issued an Invitation for Bids (IFB#2025-0013) “Well 16 Upgrades” on PlanetBids, in accordance with the City’s procurement policies and the Public Contract Code. On June 4, 2025, staff held a non-mandatory pre-bid meeting located at the jobsite with six (6) contractors attending the meeting. By the stated deadline of June 18, 2025, the City received two (2) construction bids. The results were as follows:
|
Rank |
Contractor |
Location |
Bid Amount |
|
*N/A |
Estate Design & Construction |
Culver City, CA |
$739,800 |
|
1. |
R2Build |
Laguna Hills, CA |
$967,000 |
*Note: During bid evaluation, a discrepancy was identified with Estate Design & Construction. The lowest bid submitted by Estate Design & Construction is considered a non-responsive bid
After evaluation of the bids, City staff identified R2Build as the lowest responsive and responsible bidder. Therefore, staff recommends that the City Council award a construction contract for $967,000 with R2Build for the Well 16 Upgrades Project (WA234). Staff also recommends that the City Council authorize up to $96,700 (10% of the contract amount) for construction contingencies as allowable per the Public Contract Code. Staff subsequently reviewed the Contractor’s licensing, bonding, references, and list of subcontractors submitted for the project, and found all bid submittal documentation to be satisfactory. The estimated project construction costs are itemized below:
|
Project Task |
Vendor |
Total |
|
Construction |
R2Build |
$967,000 |
|
10% Construction Contingency (1) |
As allowable per Public Contract Code |
$96,700 |
|
Construction Management and Inspections Services (2) |
Murow Development Consultants |
$78,500 |
|
Estimated Administrative Soft Costs |
Includes but is not limited to laboratory analysis for water quality testing and filing fees with the County |
$3,000 |
|
Estimated Total Construction Cost: |
$1,145,200 |
Note: (1) Note that, as in all the City's public works contracts, the contract itself provides the Director of Public Works authority to issue change orders of up to 10% of the original contract amount. When the Council approves the contract, it approves this authority. Ten percent is generally considered within the normal range of changed conditions on a public works construction project and, by providing change order authority upfront, Council helps to reduce the possibility of delay on a construction project.
(2) This agreement was processed administratively under the City Manager’s approval in accordance with the City’s procurement policy.
This project is exempt from the California Environmental Quality Act (CEQA) according to Section 15301 (b) and (d) of the CEQA Guidelines. In compliance with CEQA Guidelines, a Notice of Exemption was filed with the San Bernardino County Recorder’s Office.
Attachments: Exhibit A – Project Vicinity Map (WA234)
Exhibit B – Construction Agreement - R2Build