TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Notice of Completion for the Water Service Lateral Replacement in Hampshire Village Project (WA255) with G&A Nelos Construction, Inc.
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RECOMMENDATION
1) Accept the Water Service Lateral Replacement in Hampshire Village Project (WA255) with G&A Nelos Construction, Inc., Contract No. 2025-282 as complete; 2) authorize the Director of Public Works to file the Notice of Completion on behalf of the City of Chino; and 3) authorize the release of retention funds following the 35-day lien period.
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FISCAL IMPACT
The project was completed within the City Council approved project budget for WA255. All unused project funds will be returned to the Water Fund 520.
As a result of fees collected for a License Agreement, Contract No. 2026-073 between the City and G&A Nelos Construction, Inc. for temporary use of a City owned vacant lot, there was a revenue of $2,000 that will be deposited to the General Fund, account 1001000-59355
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
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Revenue: 1001000-59355 |
Expenditure: 5207310 - 48009 - WA255 |
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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 a population of 93,114 (2023) and a projected 2040 population of 113,333 (SCAG) for the City. The City water service area serves a population of approximately 84,560 and primarily follows the City boundary and includes approximately 23,000 service connections.
In recent years, the water service lines in the condominium neighborhood of Hampshire Village, near San Antonio Avenue and Riverside Drive, have significantly deteriorated. Aging materials have led to an increased frequency of leaks. The Water Service Lateral Replacement in Hampshire Village Project (WA255) included replacing the water service lines within existing public utility easements. Upgrading this infrastructure helps ensure continued access to clean, reliable, and resilient water while minimizing the City’s maintenance and operational costs to address leaks and water loss.
On June 3, 2025, the City Council awarded Construction Contract No. 2025-282 to G&A Nelos Construction, Inc. (G&A) for the Water Service Lateral Replacement in Hampshire Village Project (WA255) in the amount of $629,295.44, with an additional $62,929.54 authorized for construction contingency.
On August 13, 2025, City staff approved Change Order No. 1 with G&A in the amount of $55,318.36 to install 1” water services in lieu of the originally planned manifold connections and to add four additional 2” water services. On September 27, 2025, City staff approved Change Order No. 2 with G&A in the amount of $3,918.39 for time and material costs incurred by the contractor to locate and track mismarked water utilities in the field.
ISSUES/ANALYSIS
All work has been completed per the terms of the original construction contract and approved change orders, with the vendor G & A Nelos Construction Inc. The following is a summary of the final accounting of construction costs.
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WA255 - Hampshire Village Water Line Replacement |
Contract |
Contingency |
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Original Contract & Contingency |
$629,295.44 |
$62,929.54 |
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Contract Change Order No. 1 |
$55,318.36 |
- ($55,318.36) |
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Contract Change Order No. 2 |
$3,918.39 |
- ($3,918.39) |
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Final Contract Amount & Unused Contingency: |
$688,532.19 |
$3,692.79 |
G&A Nelos Construction, Inc. has complied with the terms of the contract, and the required warranty bond is on file with the City. A Notice of Completion has been prepared for filing with the San Bernardino County Recorder’s Office. The retention funds will be released following a 35-day lien period. Additionally, staff requests to release the Faithful Performance and Labor and Material Bonds following the 35-day lien period and accept a one-year Maintenance Guarantee Bond. At the end of the one-year maintenance period, if the improvements remain free from defects in the materials and workmanship, the Maintenance Bond may be released upon approval of the Director of Public Works.
Attachments: Exhibit A - Project Vicinity Map (WA255)
Exhibit B - Notice of Completion (G&A Nelos Construction, Inc.)