REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 7, 2025
FROM
DON DAY, Director, Project and Facilities Management Department
MARK MCCULLOUGH, Director, Fleet Management
SUBJECT
Title
Construction Contract with Cornerstone Development Company dba Cornerstone CC for the Fuel Tank Infrastructure Phase IV Project
End
RECOMMENDATION(S)
Recommendation
1. Approve Addendum No. 1, dated June 24, 2025, to the bid documents for the Fuel Tank Infrastructure Phase IV Project in Trona, which responded to the pre-bid requests for information from bidders.
2. Find the bid proposal from RE Chaffee Construction, Inc. to be nonresponsive for failing to include the Non-Collusion Declaration as required by the bid documents.
3. Award Construction Contract in the amount of $1,550,000, to Cornerstone Development Company dba Cornerstone CC for a contract period of 365 calendar days from the date of the issuance of the Notice to Proceed for the Fuel Tank Infrastructure Phase IV Project in Trona.
4. Approve a budget increase of $1,492,259 to Capital Improvement Program Project No. 22-008, from $1,026,900 to $2,519,159, for the Fuel Tank Infrastructure Phase IV Project in Trona.
5. Authorize the Director of the Project and Facilities Management Department to order any necessary changes or additions in the work being performed under the contract for a total amount not to exceed $90,000, pursuant to Public Contract Code Section 20142.
6. Authorize the Director of the Project and Facilities Management Department to accept the work when 100% complete and execute and file the Notice of Completion.
7. Authorize the Auditor-Controller/Treasure/Tax Collector to post the necessary budget adjustments as detailed in the Financial Impact section (Four votes required).
(Presenter: Don Day, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The recommended budget increase of $1,492,259 will be funded through the Fleet Management Department’s (Fleet) Internal Service Fund (7910004064). Upon approval, sufficient appropriation and revenue will be incorporated into the 2025-26 Capital Improvement Program (CIP) budget to award this contract.
The following budget adjustments are necessary to increase the Fuel Tank Infrastructure Phase IV Project (Project) budget:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
7910004064 |
40909995 |
Residual Equity Transfers In |
Increase |
$1,492,259 |
- |
|
7910004064 |
55305030 |
Operating Transfers Out |
Increase |
$1,492,259 |
- |
|
7700003100 |
54304030 |
Structures and Improvements to Structures |
Increase |
$1,492,259 |
10.10.1195 |
|
7700003100 |
40909975 |
Operating Transfers In |
Increase |
$1,492,259 |
10.10.1195 |
The Fuel Tank Infrastructure Phase IV Project (Project) (WBSE 10.10.1195) budget of $2,519,159 is comprised of the following components:
|
Description |
Amount |
|
Project Design |
$307,865 |
|
Administration |
$481,044 |
|
Construction and Third-Party Testing |
$1,640,250 |
|
Construction Contingency |
$90,000 |
|
Total Project Budget |
$2,519,159 |
BACKGROUND INFORMATION
Fleet provides nearly three million gallons of fuel annually to County vehicles through 100-plus fuel tanks strategically located throughout the county. The ongoing Project is in support of the County’s mandated five-day disaster fuel support plan. Phase I (Devore & Barstow), Phase II (Baker), and Phase III (Victorville) have previously been completed in 2017, 2018, 2020, and 2023, respectively. The Phase I, II, and III scope includes the installation of 10,000-gallon diesel and 10,000-gallon unleaded fuel tanks, and a fueling station, at each of the locations listed above.
After the earthquake on July 4, 2019, it was determined that a County-owned fuel site would be desirable in the strategic unincorporated area of Trona, thereby supporting the County and Chief Executive Officer's goals and objectives of improving County government operations and ensuring the development of a well-planned, balanced, and sustainable County focused on recovery and resiliency following major emergency responses.
The new fueling station will be constructed on County-owned property that is located adjacent to the Public Works yard located in Trona. The Project consists of the construction and installation of two 10,000-gallon above ground fuel tanks for the storage of unleaded and diesel fuel. The Project shall also include the construction of a 100-foot by 100-foot asphalt-paved enclosure to hold the installed fuel tanks, as well as the installation of new fencing, a new light pole, and a new diesel fuel backup generator.
A budget adjustment is necessary to ensure delivery of a compliant and functional project. The scope of work expanded to include an additional backup generator with two additional automatic transfer switches (ATS) units, a significant increase in concrete requirements (237 cubic yards compared to the original 30), asphalt paving (12,812 square feet versus 1,250), and extensive grading of approximately 38,083 cubic feet with a retention basin. Additional environmental requirements were also added, including CEQA studies, Phase II ESA testing, and a soil management plan which were not accounted for during the original scoping phase. Furthermore, design and permitting costs were originally underestimated, and construction cost escalation of nearly 37% as reflected in the California Construction Consumer Index, has further increased labor and material expenses.
On April 9, 2024 (Item No. 35), the Board of Supervisors (Board) found the Project to be categorically exempt under California Environmental Quality Act (CEQA) Guidelines (Title 14, California Code of Regulations) Section 15301(e) and directed the Clerk of the Board to file and post the Notice of Exemption for the Project. This exemption allows for additions to existing structures in an area that is not environmentally sensitive, when the addition will not exceed 10,000 square feet and where all public services and facilities are available to allow for maximum development permissible in the General Plan. No additional CEQA review is required at this time.
This Project is consistent with County Administrative Office approved CIP Project No. 22-008.
PROCUREMENT
On April 23, 2025, the CEO, pursuant to County Policy 11-15, authorized the Project and Facilities Management Department (PFMD) to advertise for competitive bids. PFMD advertised for bids in the Sun, six Plan Rooms, and on the County Electronic Procurement Network (ePro) via Request for Proposals No. ANE223-ANE2C-5875 on May 7, 2025. On May 28, 2025, nine contractors attended a mandatory job walk. On June 24, 2025, Addendum No. 1 was issued to respond to pre-bid Request for Information (RFI) from bidders. On June 30, 2025, the following five bids were received:
|
Name |
Location |
Bid |
|
Cornerstone Development Company dba Cornerstone CC |
Victorville, CA |
$1,550,000 |
|
Proterra Builders, Inc. |
Apple Valley, CA |
$1,797,895 |
|
RE Chaffee Construction, Inc. |
Wrightwood, CA |
$1,809,000 (nonresponsive) |
|
Rasmussen Brothers Construction, Inc. |
Fallbrook, CA |
$1,913,000 |
|
Western Pump, Inc. |
San Diego, CA |
$2,573,471 |
PFMD received two bid protests on July 2, 2025, both challenging the responsiveness of Cornerstone Development Company dba Cornerstone CC’s (Cornerstone) bid.
The first protest, submitted by Proterra Builders, Inc., alleged that Cornerstone’s bid was nonresponsive due to missing California Air Resources Board (CARB) Certificates of Compliance for subcontractors and the absence of a listed subcontractor holding a C-10 electrical license. Upon review, it was determined that the protest lacked merit. The equipment to be used in this Project falls below the power threshold requiring CARB certification, and Cornerstone, as the prime contractor, may self-perform the electrical scope in accordance with Business and Professions Code §7057.
The second protest, submitted by Rasmussen Brothers Construction, Inc., similarly cited the absence of CARB Certificates of Compliance. This protest was also reviewed and found to lack merit for the same reasons.
RE Chaffee Construction, Inc. (RE Chaffee) failed to include the Non-Collusion Declaration with their bid proposal as required by the bid documents. Thus, PFMD recommends that the Board find RE Chaffee’s bid nonresponsive.
PFMD recommends the Board award the construction contract to Cornerstone, the lowest responsive and responsible bidder.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kaleigh Ragon, Deputy County Counsel, 387-5455) on August 20, 2025; Fleet Management (Mark McCullough, Director, 387-7872) on August 20, 2025; Purchasing Department (Ariel Gill, Supervising Buyer, 387-2070) on August 22, 2025; Project and Facilities Management (Sarah Riley, Chief of Project Management, 387-5115) on September 15, 2025; and County Finance and Administration (Yael Verduzco, Principal Administrative Analyst, 387-5285) on September 19, 2025.
(eg, 387-5000)