TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Award a Construction Contract to G&A Nelos Construction, Inc. for Water Service Lateral Replacement in Hampshire Village Project (WA255)
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RECOMMENDATION
1) Approve the plans and specifications for construction and award a construction contract to G&A Nelos Construction, Inc. for the Water Service Lateral Replacement in Hampshire Village Project (WA255) for $629,295.44; 2) authorize up to $62,929.54 (10% of the contract amount) for construction contingencies as allowable per the Public Contract Code, for a not to exceed contract amount of $692,224.98; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
The Fiscal Year 2024-25 Capital Improvement Program (CIP) Budget includes sufficient funding for the Water Service Lateral Replacement in Hampshire Village Project (WA255) as outlined below. Expenditures incurred to date cover administrative soft cost for San Bernardino County Clerk filing and advertisement fees.
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WA255 - Water Service Lateral Replacement in Hampshire Village Project |
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Fund |
Adopted Budget |
Expenditures |
Available Budget |
|
520 - Water Fund |
$1,829,500 |
($398) |
$1,829,102 |
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Financial Stability
• Responsible Long-Range Planning
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Revenue: Click or tap here to enter text. |
Expenditure: 5207310 - 48003 | 48005 | 48008 | 48009 - WA255 |
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Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
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.
Over the past several years, the water service lines installed in the 1980s at the condominium site near San Antonio Avenue and Riverside Drive have significantly deteriorated. Aging materials have led to an increased frequency of leaks. Replacing the water service lines within existing public utility easements at the condo site will help ensure continued access to clean, reliable, and resilient water. This proactive effort will also minimize future water crew’s response times, repair costs, reduce water loss, and enhance overall system reliability. The water division crew’s resources can be dedicated to other maintenance operations.
On March 19, 2025, the City Planning Commission approved the project as exempt from the California Environmental Quality Act (CEQA) according to Section 15301(c) of the CEQA Guidelines - Existing Facilities, which includes the operation, repair, and maintenance of highways, streets, sidewalks, gutters, bicycle and pedestrian trails, and other similar facilities.
ISSUES/ANALYSIS
On April 24, 2025, the City issued an Invitation for Bids (IFB#2025-0009A) “Hampshire Village Water Service Line Replacements” on PlanetBids. The bidding process adhered to the City’s procurement policies. On May 15, 2025, the City received eleven (11) construction bids with the final ranking as follows:
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Rank |
Contractor |
Cost |
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1. |
G&A Nelos Construction, Inc.$629,295.44 |
|
|
2. |
Christensen Brothers General Engineering Inc. |
$657,138.69 |
|
3. |
Big Ben Inc. |
$767,650.00 |
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4. |
Dominguez General Engineering, Inc. |
$810,400.00 |
|
5. |
Ferreira Construction Co, Inc DBA Ferreira Coastal Construction |
$824,000.00 |
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6. |
W.A. Rasic Construction Co., Inc. |
$828,888.00 |
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7. |
CEM Construction Corp |
$938,200.00 |
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8. |
D Corporation General Contracting and Engineering |
$953,000.00 |
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9. |
Gentry Brothers, Inc. |
$990,400.00 |
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10. |
Kirtley Construction, Inc. |
$1,110,700.00 |
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11. |
C.P. Construction Co., Inc. |
$1,486,800.00 |
After evaluation of the bids, staff identified G&A Nelos Construction, Inc. as the lowest responsive and responsible bidder. Therefore, staff recommends that the City Council award a construction contract for $629,295.44 with G&A Nelos Construction, Inc. for the Water Service Lateral Replacement in Hampshire Village Project (WA255). The Estimated Expenditure Plan is shown in the Table below:
|
Project Costs |
Vendor |
Amount |
|
Construction Contract |
G&A Nelos Construction, Inc.$629,295.44 |
|
|
(1)10% Construction Contingency |
As allowable per the Public Contract Code |
$62,929.54 |
|
(2)Geotechnical Engineering Services |
Geo-Advantec |
$23,720.00 |
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(3)Estimated Administrative Soft Cost |
|
$3,000.00 |
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TOTAL CONSTRUCTION COST: |
$718,944.98 |
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.
(3) Administrative soft costs include but are not limited to laboratory analysis for water quality testing and filing fees with the County.
In compliance with CEQA Guidelines, a Notice of Exemption was filed with the San Bernardino County Recorder’s Office at a cost of $50 prior to advertisement for bids.
Attachments: Exhibit A - Project Vicinity Map
Exhibit B - Construction Agreement - G&A Nelos Construction, Inc. (WA255)