REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
SITTING AS THE GOVERNING BODY FOR THE FOLLOWING:
SAN BERNARDINO COUNTY
BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
December 17, 2024
FROM
NOEL CASTILLO, Director, Department of Public Works - Special Districts
BEAHTA R. DAVIS, Director, Regional Parks Department
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Construction Contract for the Prado East Wells Project
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of San Bernardino County:
a. Approve a 2024-25 budget increase of $717,070, from $272,500 to $989,570, for the Prado East Wells Project.
b. Approve the use of an additional $657,070 of Available Reserves from Chino Agricultural Preserve Fund, from up to $332,500 to a total of up to $989,570, for eligible costs associated with the Prado East Wells Project in the Chino area.
c. Authorize the Auditor-Controller/Treasurer/Tax Collector to post budget adjustments, as detailed in the Financial Impact section, for the Prado East Wells Project (Four votes required).
d. Approve Addendum No. 1, issued October 21, 2024, to the bid documents for the Prado East Wells Project.
e. Award construction contract to Canyon Springs Enterprises, in the amount of $536,000, for the Prado East Wells Project.
f. Authorize a contingency fund of $53,600 for the Prado East Wells Project.
g. Authorize the Director of the Department of Public Works - Special Districts to approve expenditures of the contingency fund in the amount of $53,600 for verified quantity overruns for this unit priced construction contract.
h. Authorize the Director of the Department of Public Works - Special Districts to order any necessary changes or additions in the work being performed under the construction contract with Canyon Springs Enterprises for a total amount not-to-exceed $39,300 of the $53,600 reserved for quantity overruns, pursuant to Public Contract Code Section 20142.
i. Authorize the Director of the Department of Public Works - Special Districts to accept the work when 100% complete and execute and file the Notice to Completion.
2. Acting as the governing body of County Service Area 70 Countywide, authorize the Auditor-Controller/Treasurer/Tax Collector to post budget adjustments in the amount of $717,070, as detailed in the Financial Impact section, for the Prado East Wells Project (Four votes required).
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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). On November 14, 2023 (Item No. 90), the Board of Supervisors (Board) approved the use of up to $332,500 from the Chino Agricultural Preserve Fund for eligible costs associated with the Prado East Wells Project (Project) in the Chino area.
Approval of Recommendation No. 1 would allocate an additional $717,070 for the construction of the Project, funded by the use of Available Reserves from the Chino Agricultural Preserve Fund of $657,070 and offset by a decrease of $60,000 from other Professional Services, for a total Project budget of $989,570.
Sufficient appropriation and revenue for the Project will be included in future recommended budgets as needed.
The following 2024-25 budget adjustments are requested to proceed with the Project:
|
Fund Center/Fund |
Commitment Item/GL Account |
Description |
Action |
Amount |
|
San Bernardino County |
|
7801132734 |
55305030 |
Operating Transfers Out |
Increase |
$717,070 |
|
7801132734 |
52002445 |
Other Professional & Specialized Services |
Decrease |
$60,000 |
|
2734 |
37008880 |
Fund Balance-Reserved - Available Reserves |
Decrease |
$657,070 |
|
County Service Area 70 Countywide - Capital Improvement Program |
|
1050003604 |
40909975 |
Operating Transfers In |
Increase |
$717,070 |
|
1050003604 |
54104010 |
Improvements to Land |
Increase |
$717,070 |
BACKGROUND INFORMATION
On December 17, 2013 (Item No. 64), the Board adopted Resolution No. 2013-241 to declare 165.30 acres of County owned dairy properties in the City of Chino as surplus and authorized holding a public auction to sell 60.57 acres [Assessor’s Parcel Numbers (APNs) 0218-301-01- 0000, 0218-301-05-0000, 0218-301-06-0000, 0218-301-07-0000, 0218-301-12-0000, 0218-301- 14-0000, 0218-301-15-0000, 0218-301-22-0000, 0218-301-25-0000, 0218-301-26-0000, 1055- 081-01-0000, and 1055-081-02-0000] of this land. At that time, the Board also authorized the conveyance of the remaining 104.73 acres to Watson Land Company (Watson) in exchange for $6,364,000 and the conveyance of 271.66 acres of vacant land to the County by Watson. Most of the surplus dairy land was originally acquired by the County with grant funds under Proposition 70. However, a 4.78-acre portion of the 60.657 acres was purchased with a grant from the United States Department of Agriculture (USDA) in the amount of $100,000.
On June 24, 2014 (Item No. 74), the Board approved the highest bid received at the auction held on March 19, 2014, from Watson to purchase 60.57 acres for $15,335,000. The County and Watson entered into Purchase and Sale Agreement and Escrow Instructions for Auction Sales, Contract No. 14-429 (Contract). Subsequently, escrow was opened, with the close of escrow contingent on the County’s removal of a Deed Restriction associated with the USDA Grant (USDA Deed Restriction).
The USDA Deed Restriction provides that the property is restricted to agricultural operations, including the growing of food, dairy operations, growing of fiber and feed for animals, and cattle operations. The USDA Deed Restriction also provides that the land shall not be converted to non-agricultural use and includes a contingent right of enforcement in the United States.
Over the ensuing years, County staff has worked closely with USDA Natural Resources Conservation Service (NRCS) staff to remove the USDA Deed Restriction and establish an Agricultural Land Easement (Easement), which is the instrument that will replace the USDA Deed Restriction, on a 11.22-acre portion of County-owned land (APN 1057-212-17-0000) located on Hellman Avenue in the City of Chino and at the north end of the 271.66 acres. However, the USDA requires that this replacement location be irrigated. The property currently does not have municipal water, but instead has two on-site wells.
The Project proposes to rehabilitate Well No. 3, install pumping equipment, a tank, and an underground pipeline that will allow for the irrigation of the future Easement area.
At the time the Project was established on November 14, 2023, it was unknown what the total project scope would include as it was dependent on well testing. Since that time, it has been determined that additional funding is needed for construction, construction contingency, project management and inspection, which is why the budget increase of $717,070 is necessary to complete the Project.
On September 24, 2024 (Item No. 60), the Board determined the Project was exempt under California Environmental Quality Act and directed the Department of Public Works - Special Districts (Department) to file and post said notice. The Board also approved the Project’s plans and specifications and authorized the Director of the Department to advertise the Project for competitive bids.
PROCUREMENT
On September 27, 2024, the Department advertised the Project for bids through the County’s Electronic Procurement Network (ePro) and in accordance with Public Contract Code Section 22037. On September 26, 2024, and October 3, 2024, the Department advertised for bids by publishing the Project in the San Bernardino County Sun and Inland Valley Daily Bulletin for Ontario newspaper.
During the bidding process, the following addendum was issued:
• Addendum No. 1: Provided all interested parties with questions and responses gathered after the pre-bid meeting through the bid process, updated the contractor’s licenses required for the bid on the project, updated the bid proposal in Section A of the bid package, and provided additional technical specifications for the project.
On October 10, 2024, a total of ten contractors attended the mandatory pre-bid meeting. On October 24, 2024, the Department received the following bids:
|
Contractor |
Location |
Bid Amount |
|
Canyon Springs Enterprises |
Temecula, CA |
$536,000.00 |
|
RE Chaffee Construction, Inc. |
Wrightwood, CA |
$536,660.00 |
|
RC Foster Corporation |
Corona, CA |
$719,097.40 |
|
R2BUILD |
Laguna Hills, CA |
$1,089,820.00 |
The Department reviewed the bids received for the Project and recommends awarding the construction contract to Canyon Springs Enterprises, as the lowest responsive, responsible bidder for a total base bid of $536,000. The lowest bidder was determined pursuant to Public Contract Code section 20103.8(b), as the lowest total of the base bids.
Under an established formula based on the contract amount of $536,000, Public Contract Code Section 20142 allows the Board to authorize the Director of the Department to order changes in the contract, including for unforeseen conditions or designed shortfalls, should they become necessary in the future, for the total amount not-to-exceed $39,300 of the $53,600 reserved for verified quantity overruns.
Upon Board approval, construction is anticipated to commence in January 2025.
REVIEW BY OTHERS
This item has been reviewed by Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on November 15, 2024; County Counsel (Scott Runyan, Principal Assistant County Counsel and Sophie A. Curtis, Deputy County Counsel, 387-5455) on November 21, 2024; Purchasing (Michael Candelaria, Lead Buyer, 387-8258) on November 18, 2024; Finance (Jessica Trillo, 387-4222, Garrett Baker, 387-3077, and Elias Duenas, 387-4052 Administrative Analysts) on December 3, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on December 3, 2024.