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2nd Floor
San Clemente, California
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AGENDA REPORT
CITY OF SAN CLEMENTE
CITY COUNCIL MEETING
CITY OF SAN CLEMENTE
Meeting Date: November 4, 2025 Agenda Item: 11E.
Submitted By: Public Works
Prepared By: Belgin Cuhadaroglu, Senior Civil Engineer
Subject:
..titl e
CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO Q&E
PIPELINE COMPANY FOR THE CAMINO VERA CRUZ RECYCLED WATER LINE EXTENSION, CIP PROJECT NO. 17407, AUTHORIZING THE CITY MANAGER TO EXECUTE THE
CONSTRUCTION CONTRACT, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM ..body THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Fiscal Impact:
The estimated total construction cost of $597,000 is within the approved budget of $1,868,428 from Account No. 052-467-45300-000-17407, Camino Vera Cruz Recycled Water Line Extension, Phase II, Water Acreage Fee Reserve Fund.
Summary:
Before the City Council is the award of a construction contract to Q&E Pipeline Company, in an amount not to exceed $507,000, for the Camino Vera Cruz Recycled Water Line Extension.
Due to high demand for recycled water conversion within the Forster Ranch Home Owners Association’s (HOA) areas, approximately 402 linear feet of recycled water line pipes and three irrigation meters will be installed, at the intersection of Camino de Los Mares and Camino Vera Cruz, to provide recycled water to reduce the use of imported potable water from the Metropolitan Water District of Southern California.
1 Attachment 3
Meeting Date: November 4, 2025 Agenda Item: 11E.
CITY OF SAN CLEMENTE
Background:
Recycled water customers account for approximately 15% of the City's overall water demand and utilize approximately 1,200 acre-feet per year of recycled water. The City's customer use of recycled water reduces the City's need for imported potable water from the Metropolitan Water District of Southern California (Metropolitan).
Upon completion of the City’s recycled water expansion, Phase I, in 2014, there was one remaining area within Forester Ranch that provided approximately 10.5 acre-feet of water use adjacent to an existing recycled water line. City staff coordinated with the homeowners association and determined the best location to install additional new meters for conversion of the private irrigation system to recycled water. The project is recommended at this time prior to the paving of the Camino De Los Mares/Camino Vera Cruz intersection. Approximately 402 linear feet of pipeline and 3 irrigation meters will be installed to provide additional recycled water, as shown below.
The City originally conducted formal
competitive bidding for the Camino
Vera Cruz Recycled Water Line
Extension and received bids on May
5, 2025; however, after further
evaluation, staff recommended to
re-scope the bid package and re-bid
the project with a scope of work that
will better address the potential
conflicts with underground utilities.
On June 3, 2025, the City Council
approved rejecting the bids received
on May 5, 2025, and directed staff
to re-bid the project.
Staff modified the scope of work and prepared a bid package for the Camino Vera Cruz Recycled water line extension, notified local contractors, advertised the project for competitive bidding on the PlanetBids website, and in the San Clemente Times. Four bids were received on October 16, 2025, ranging from $507,000 to $884,676 as shown on the table below.
Company Name Company Location
Bid
Amount
Q&E Pipeline Company Pomona, CA $507,000
O'Connell Engineering &
Construction, Inc. Winchester, CA $591,875
Big Ben Engineering Irvine, CA $597,890
Alliance Diversified Escondido, CA $884,676
The lowest responsive and responsible bidder is Q&E Pipeline Company of Pomona, California, in the amount of $507,000. Based on the lowest bid, the estimated total construction cost for this project is as follows:
2 HOA (2. ◄ AFY) DE LOS MARES
I
I
I
~
CAMINO VERA CRUZ
Meeting Date: November 4, 2025 Agenda Item: 11E.
CITY OF SAN CLEMENTE
Construction Administration, Management and Inspection $ 90,000 Construction $507,000
Estimated Total Construction Cost $597,000
As required by state law and City policy, the contractor, Q&E Pipeline Company will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 2). Project plans and specifications are on file in the City Clerk’s office.
Council Options:
Adopt Resolution No. 25-169 (Attachment 1), finding the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Conversion of Small Structures, 14 CCR Section 15303) of the State CEQA Guidelines, awarding the construction contract to Q&E Pipeline Company, and authorizing the City Manager to execute a construction contract in an amount not to exceed $507,000. Modify and adopt Resolution 25-169.
Continue the item and direct staff to provide additional information. Do not adopt Resolution No. 25-169 and put the project on hold.
Environmental Review/Analysis:
This Project was determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Section 15303 of the state CEQA Guidelines, Class 3 (New Construction or Conversion of Small Structures), 14 CCR Section 15303).
Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 25-169, which will:
1. Find the Camino Vera Cruz Recycled Water Line Extension, Project No. 17407, categorically exempt from CEQA under Class 3 (New Construction or Conversion of Small Structures, 14 CCR section 15303) of the State CEQA Guidelines;
2. Award a contract to Q&E Pipeline Company, as the lowest responsible and responsive bidder, for the Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407; and
3. Authorize the City Manager to execute a contract with Q&E Pipeline Company in an amount not to exceed $507,000 in a form substantially similar to Contract No. 25-54 (Attachment 2) for Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407. ..end
Attachment:
1. Resolution No. 25-169
2. Contract No. C25-54 (without attachments)
Notification:
All Bidders.
3 Attachment 1
4882-9904-3949 v1
RESOLUTION NO. 25-169
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN CLEMENTE, CALIFORNIA, AWARDING A
CONSTRUCTION CONTRACT TO Q&E PIPELINE
COMPANY FOR THE CAMINO VERA CRUZ RECYCLED
WATER LINE EXTENSION, CIP PROJECT NO. 17407 IN AN
AMOUNT NOT TO EXCEED $507,000, AUTHORIZING THE
CITY MANAGER TO EXECUTE THE CONSTRUCTION
CONTRACT, AND FINDING THE PROJECT
CATEGORICALLY EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, recycled water customers account for approximately 15% of the City's overall water demand and utilize approximately 1,200-acre feet per year of recycled water.
WHEREAS, the City's customer use of recycled water reduces the City's need for potable imported water from the Metropolitan Water District of Southern California; and WHEREAS, extension of an existing recycled water line will provide recycled water to three meters for an annual demand of approximately 10.5 acre feet of recycled water and this area was previously identified as a high water use; and WHEREAS, due to high demand adjacent to an existing recycled water line in Camino Vera Cruz within Forster Ranch, approximately 402 linear feet of recycled water pipe lines and three irrigation meters will be installed; and WHEREAS, the City originally conducted formal competitive bidding for the Camino Vera Cruz Recycled Water Line Extension and received bids on May 5, 2025; and
WHEREAS, after further evaluation, staff recommended to re-scope the bid package and re-bid the project with a scope of work that will better address the potential conflicts with underground utilities; and
WHEREAS, on June 3, 2025, the City Council approved rejecting all bids received on May 5, 2025, and directed staff to re-bid the project with the modified scope of work; and
WHEREAS, the City conducted formal competitive bidding for the Camino Vera Cruz Recycled Water Line Extension with the modified scope of work; and WHEREAS, on October 16, 2025, the City received four (4) bids ranging from $507,000 to $884,676 for the Project; and
WHEREAS, the lowest responsive and responsible bidder was Q&E Pipeline Company of Pomona, California, in the amount of $507,000; and 4 Resolution No. 25-169 Page 2
WHEREAS, this project is determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Section 15303 of the state CEQA Guidelines, Class 3 (New Construction or Conversion of Small Structures, 14 CCR 15303).
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. That the above recitations are true and correct and incorporated herein.
SECTION 2. That the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Conversion of Small Structures, 14 CCR section 15303) of the State CEQA Guidelines because it consists of construction of utility extensions of reasonable length and there is no possibility of a direct or reasonably foreseeable indirect substantial impact on the environment.
SECTION 3. That the City Council finds that Q&E Pipeline Company is the lowest responsive and responsible bidder, and the construction contract for the Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407, is hereby awarded to Q&E Pipeline Company.
SECTION 4. That the City Manager is authorized and directed to execute a construction contract for the Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407 with Q&E Pipeline Company in an amount not to exceed $507,000 in a form substantially similar to that presented to City Council on November 4, 2025.
SECTION 5. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _________ day of ______________, 2025.
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California 5 Resolution No. 25-169 Page 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-169 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _____ day of ______, 2025, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, 2025. ________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
6 Attachment 2
SECTION 00500
CONTRACT
THIS CONTRACT is made this _____ day of _________, 2025, in the County of Orange, State of California, by and between the City of San Clemente hereinafter called City, and Jesus Lopez dba Q&E Pipeline Company, a sole proprietorship located at 2235 Marquette Ave, Pomona, CA 91766 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Contract. City and the Contractor for the considerations stated herein agree as follows:
ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:
Camino Vera Cruz Recycled Water Line Extension, CIP Project No. 17407 The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within fifty (50) working days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract and the Work, which includes everything that is reasonably foreseeable related thereto, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Five Hundred Seven Thousand ($507,000). Payment shall be made as set forth in the General Conditions.
At any time during the term of the Contract, City may, pursuant to the terms and provisions of the Contract Documents, request that the Contractor perform additional work. Contractor shall not perform, nor be compensated for, additional work without written authorization from the City pursuant to the terms and provisions of the Contract Documents.
ARTICLE 4. LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay City the sum of $1,000 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event that Liquidated Damages are not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:
Contract
Table of Contest
7 55452.01510\32905704.2 2
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Non-Collusion Declaration Form
Contractor Information and Experience Form
List of Subcontractors Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Addenda
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project.
ARTICLE 7. INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.
ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the Office of the City Clerk or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures. (Signatures on following page)
8 55452.01510\32905704.2 3
CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 2025
____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney
APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization
Jesus Lopez dba Q&E PIPELINE COMPANY,
a sole proprietorship
(“CONTRACTOR”)
By:_____________________________
Jesus Lopez, CEO/CFO
Dated: __________________, 2025
END OF CONTRACT
9