Item Number: 2
City Council / Board of Directors
Public Hearing(s)
Meeting of: August 19, 2025
Submitted By:
Fredy Bonilla, City Engineer
Brenda Hampton, Director of Electric Utility Services
Subject:
Award of Construction Contract and Notice of Exemption for VMUS Gas Improvement Project – Phase 5
Recommendation:
That the Honorable City Council:
(1) Open and conduct the Public Hearing, receive testimony regarding the proposed Capital Improvement Project (CIP) and CEQA Notice of Exemption; (2) Close the Public Hearing;
(3) Approve the CEQA Notice of Exemption and authorize staff to file the notice with the Office of Planning & Research and the County Clerk; and (4) Award a construction contract to A.M. Ortega Construction, Inc., in the amount of $181,052.42 for the VMUS Gas Improvement Project - Phase 5.
Fiscal Impact:
This action will result in fiscal impact of $181,052.42. This project is funded by the Victorville Municipal Utilities Services (VMUS) Gas Fund, No. 419. An additional appropriation is not required. There are sufficient funds available in the project to cover the planned expenses.
Account Number Account Description Amount Available
4190210 – 55080 – 30079 Infrastructure
Improvements
$181,052.42
Strategic Plan Goal:
This item aligns with “Goal E Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026. Completing this conversion will allow VMUS to provide all customers with reliable natural gas at a competitive price supplied through the Kern River Pipeline. 4 2
7 5
Background:
On February 7, 2023, the City Council approved an Interconnection Agreement with Kern River Gas Transmission Company (KRGT) for the construction of a natural gas pipeline interconnection and meter station facilities. Pursuant to that agreement, KRGT constructed a new delivery meter station and associated infrastructure, enabling a direct supply of natural gas to Victorville Municipal Utility Services (VMUS).
Subsequently, on April 2, 2024, the City Council awarded a construction contract in the amount of $709,024.79 to Arizona Pipeline Company for the Kern River Interconnect Project. This project facilitated the physical connection between the VMUS natural gas system and the KRGT pipeline, allowing VMUS to receive natural gas at a significantly lower price. This project was completed in September 2024.
Discussion:
Currently, a small portion of the VMUS gas service area remains connected to the Southwest Gas distribution system. This section has not yet been converted to the KRGT system. Southwest Gas has announced plans to implement a significant fee increase to SCLA, effective January 1, 2026. The purpose of this project is to convert the final segment of the VMUS service area to the KRGT supply system. Completing this conversion will eliminate the City’s reliance on Southwest Gas entirely and allow VMUS to serve all customers with reliable natural gas at a competitive price.
This project was solicited using the informal bidding procedures in accordance with Victorville Municipal Code Section 2.28.200 and the California Public Contract Code. A Notice inviting bids was advertised and posted on the City of Victorville website on June 1, 2025. The following bidders responded:
(1) A.M. Ortega Construction Inc., Lakeside CA - $181,052.42 (2) Arizona Pipeline, Hesperia, CA - $214,478.13
Each bid submission was reviewed by the Purchasing Department, and they determined the best value bidder to be A.M. Ortega Construction Inc., based on their price bid of $181,052.42, which was the lowest bid amount. A.M. Ortega Construction Inc. is familiar with the City and VMUS’ natural gas distribution system, having completed the VMUS Gas Replacement Project Phase – IV project in September 2023.
Staff recommends that the Honorable City Council approve the Notice of Exemption and award the Construction Agreement (Attachment C) by and between the City of Victorville and A.M. Ortega Construction, Inc., for the VMUS Gas Improvement Project – Phase 5.
Staff is available for any questions Council may have.
Prepared By:
Sylvia Severson, Management Technician
4 2
7 5
Attachments: A. Location Map
B. Notice of Exemption
C. Construction Agreement