For City Council Meeting September 9, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request City Council to: (1) Adopt Resolution No. 8406 Amending the 2025-2026 Fiscal Budget; (2) Award of a Construction Contract to C.P. Construction Co., Inc., in the amount of $29,107,522.20 for the Baseline Storm Drain Project, City Project No. 170700; (3) Authorize a Contract Change Order in the amount of $2,993,555.00 with Fountainhead Corporation Pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for Baseline Storm Drain Project, City Project No. 170700; (4) Approve a Fourth Amendment for Construction Phase Services to Huitt-Zollars in the amount of $330,000.00 and to Extend the Term Limits of the Professional Services Agreement; (5) Delegate Authority to the City Manager to Approve Contract Change orders in the Cumulative Amount of $1,000,000; and (6) Authorize the City Manager or Their Designee to Execute all Related Documents.
(POWERPOINT)
(ACTION)
Body
RECOMMENDATION
Staff requests that City Council:
1) Adopt Resolution amending the 2025-2056 Fiscal Budget;
2) Award a construction contract to C.P. Construction Co., Inc., in the amount of $29,107,522.20 for the Baseline Storm Drain Project, City Project No. 170700;
3) Authorize a contract change order request in the amount of $2,993,555.00 with Fountainhead Corporation pursuant to the City’s “on-call” agreement for construction management, inspection, and materials testing services for Baseline Storm Drain Project, City Project No. 170700;
4) Approve a fourth amendment for construction phase services to Huitt-Zollars in the amount of $330,000.00 and to extend the term limits of the professional services agreement;
5) Delegate authority to the City Manager to approve contract change orders in the cumulative amount of $1,000,000; and
6) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND
In 2016, the San Bernardino County Flood Control District (SBCFCD) began development of the Cactus Basin System Improvements, which includes expanding the basins to increase storage capacity. On August 8, 2017, the City Council authorized staff to release a Request for Proposal for the design of the master-planned storm drain in Baseline Road from the Cactus Basin to Tamarind Avenue.
On June 26, 2018, the City Council awarded a professional services agreement to Huitt-Zollars Inc. for the design of the Baseline Master Plan Storm Drain from the Cactus Basin to Tamarind Avenue in the amount of $521,625.
On April 27, 2021, the City Council adopted a mitigated negative declaration, approved a first amendment to the professional services agreement with Huitt-Zollars in the amount of $44,000 for a not-to-exceed amount of $565,625 for Phase 1, and authorized advertisement for construction bids for Phase 1 of the Baseline Storm Drain Project, City Project, 170700. The project was originally anticipated to be split into two phases to allow for the easement, encroachment permits, and regulatory permits to be obtained during construction in phase 1, in anticipation of phase 2. The project has since been consolidated into a single, continuous project.
On September 12, 2023, City Council approved Tentative Parcel Map No. 2020-0001, Resolution No. 8141 Conditional Development Permit No. 2020-0002, Resolution 8142 Precise Plan of Design No. 2020-00012 and Resolution No. 8143 Environmental Assessment Review No. 2020-0003 for the Crow Holdings Industrial development (APN:0264-213-18) located on the north side of Baseline Road approximately 350 feet east of Fitzgerald Avenue. Crow Holdings Industrial agreed to grant the easement and a voluntary contribution of $3,000,000 towards the construction of the Baseline Storm Drain Project. The details were included in the Olive Grove Development Agreement Regarding Community Enhancement Contributions.
On September 10, 2024, the City Council authorized the release of bids for the Baseline Storm Drain Project.
ANALYSIS/DISCUSSION
The project consists of an approximately 2.0-mile-long storm drain system capturing ultimate flows north of Baseline Road. The storm drain line starts at the Tamarind Avenue/Baseline Road intersection and runs along Baseline Road to the outlet at Cactus Basin No. 3. A conceptual layout is included in Attachment 1.
On June 12, 2025, the City released RFB No. 25-042 for the Baseline Storm Drain Project, City Project No. 170700, and published the Notice Inviting Bids on the PlanetBids.com website. On July 31, 2025, the City received nine bids as follows:
A complete bid summary is included as Attachment 2. The engineer’s estimate was $20,000,000. The lowest responsible and responsive bid was $29,107,522.20 submitted by C.P. Construction Co., Inc. Mike Bubalo Construction Co., Inc., the initial low bidder, requested staff to relieve Mike Bubalo Construction Co., Inc. of their bid submission due to a mathematical error on their end pursuant to Public Contract Code Section 5103. Staff reviewed the request and found that Mike Bubalo Construction Co. Inc.’s error is non-responsive to the contract requirements and would need to proceed with awarding to the next lowest responsive, responsible bidder. Staff reviewed the bid and found C.P. Construction Co. to be properly licensed and qualified. C.P. Construction Co., Inc.’s Disclosure Statement, Contractor’s License, and DIR verification documents are included as Attachment 3. Staff recommends that the City Council accept the bid received from C.P. Construction Co., Inc. as the lowest responsible and responsive bid. A construction contract with C.P. Construction Co., Inc. for the project is included as Attachment 4.
Construction Management, Inspection, and Materials Testing Services
On April 12, 2022, the City Council approved an on-call agreement with Fountainhead Corporation for on-call construction management, inspection, and materials testing services for an initial three-year term, with two one-year optional extensions.
Staff has reviewed and recommends approval of the proposal provided by Fountainhead Corporation based on their prior constructability review of the project plans and their experience overseeing projects of this magnitude, similar in scope to the project. A copy of their proposal is included as Attachment 5. Fountainhead Corporation has provided a fee proposal of $2,993,555.00 to provide the required construction phase services through the duration of the project. A copy of Fountainhead Corporation’s Disclosure Statement is included in Attachment 6.
Construction Administration Services
On June 26, 2018, the City Council awarded a Professional Services Agreement to Huitt-Zollars Inc. for the design of the Baseline Master Plan Storm Drain from the Cactus Basin to Tamarind Avenue in the amount of $521,625. On April 27, 2021, the City Council adopted a mitigated negative declaration, approved a first amendment to the professional services agreement with Huitt-Zollars in the amount of $44,000 for a not-to-exceed amount of $565,625 for Phase 1, and authorized advertisement for construction bids for Phase 1 of the Baseline Storm Drain Project, City Project, 170700.
Considering the magnitude of the project, the City will need to retain Huitt-Zollars Inc.’s services for construction administrative tasks throughout construction. Staff has reviewed and recommends approval of the proposal provided by Huitt-Zollars, by a fourth amendment to their professional services agreement, having been the design team for the project, and their familiarity with the project since inception. Staff further recommends that the amendment extend their contract to allow for completion of the project. A copy of Huitt-Zollars’ proposal is included in the Fourth Amendment as Attachment 7. A copy of Huitt-Zollars’ Disclosure Statement is included in Attachment 8.
ENVIRONMENTAL IMPACT
The City has completed an analysis of potential environmental impacts associated with the Project. Huitt-Zollars, Inc., on behalf of the City, acting as Lead Agency pursuant to CEQA, has prepared an Initial Study/Mitigated Negative Declaration (the “IS/MND”). At the April 27, 2021, council meeting, the City Council adopted a Mitigated Negative Declaration. A copy of the declaration is included as Attachment 9.
The Initial Study concluded and determined that the Project will not have a significant effect on the environment. During the construction phase, various mitigative monitoring and reporting actions will be implemented per the Mitigation Monitoring and Reporting Program (MMRP).
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Policy 3-6.3: Require an increasing level of public safety infrastructure and service capability tied to population increase and increasing service demand.
Policy 3-6.4: Complete infrastructure master plans for sewer, water, and drainage.
Goal 3-7: Upgrade public infrastructure as an inducement to promote private investment.
Goal 5-2: Minimize the risk and damage from flood hazards.
Policy 5-2.5: Require that any structure proposed within an officially designated 100-year floodplain, or other floodplain as determined through geotechnical investigation, be designed in a manner that does not negatively impede or redirect floodwaters or raise anticipated flood heights.
LEGAL REVIEW
The City Attorney’s Office has reviewed the construction contract and amendment to the professional services agreement and approved them as to form.
FINANCIAL IMPACT
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The project is currently funded through the Storm Drain Development Impact Fee (DIF) Fund, Account No. 22304720-53001-170700, with an initial allocation of $12,500,000 and a remaining budget of $11,774,113. To accommodate the full scope of administration, construction, and construction support services, staff recommends appropriating an additional $21,156,964.20 from the Storm Drain DIF fund balance and $500,000 from the Capital Project Fund, Account No. 33004720-53001.
The Storm Drain DIF fund balance is estimated at $33,069,783.91 at the end of Fiscal Year 2024-2025. Upon approval of these recommended appropriations, the estimated fund balance will be $138,706.71.
Following the adoption of the requested budget resolution, the construction contract with C.P. Construction Co., Inc., in the amount of $29,107,522.20 will be funded from the Storm Drain DIF account, Account No. 22304720-53001-170700-05. Additionally, staff recommends delegating authority to the City Manager to approve contract change orders in the cumulative amount of $1,000,000, funded by $500,000 from the Storm Drain DIF account, Account No. 22304720-53001-170700-05, and $500,000 from the Capital Project Fund, Account No. 33004720-53001-170700-22.
The contract change order request with Fountainhead Corporation in the amount of $2,993,555 and the fourth amendment for construction phase services to Huitt-Zollars in the amount of $330,000 will be funded from the Storm Drain DIF account, Account No. 22304720-53001-170700-16/15.
Licensing
C.P. Construction Co., Inc. and Fountainhead will pay a Business License Tax prior to commencing the services for this project.
ATTACHMENTS
Conceptual Layout – Baseline Storm Drain
Bid Results
CP Construction Co., Inc. Disclosure Form
CP Construction Co., Inc. Contract
Fountainhead Proposal
Fountainhead Disclosure Agreement
Huitt-Zollars 4th Amendment
Huitt-Zollars Disclosure Agreement
Initial Study/Mitigated Negative Declaration
Resolution
PowerPoint Presentation