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Nogales approves $1.74 million contract for Camino Del Cielo water and sewer Phase 2; council seeks contractor oversight
Summary
Council authorized a contract with Inova Engineering, Inc., for Camino Del Cielo water, sewer and street improvements Phase 2 for up to $1,740,007.70; councilmembers asked the contractor to present schedule and oversight details and confirmed WIFA/CDBG administrative oversight by regional administrator SEAGO.
The City of Nogales on May 7 approved Order 2025-05-014, authorizing the city manager to award a contract to Inova Engineering, Inc., for the Camino Del Cielo, Camino Del Sol water, sewer and street improvements Phase 2 project for an amount not to exceed $1,740,007.70.
The contract matter is significant because it covers combined water and sewer construction funded in part through state/federal programs (WIFA and CDBG were discussed) and because councilmembers raised concerns about contractor performance, project management and prior project delays on similar regional projects.
Public Works staff said the bid process attracted interest but only one bidder submitted at final close. Councilmember Bonilla pressed staff to require that Inova appear before the council to explain scheduling and quality-control approaches, saying the firm’s past projects had sometimes fallen short. City staff agreed to request that the contractor attend a future meeting to present the schedule and project-control plan.
Council and staff described administrative oversight arrangements: the city will act as contracting authority and a regional administrator (SEAGO — Southeastern Arizona Governments Organization) will perform CDBG/WIFA administrative oversight, review pay applications and verify progress and quality before payments. Staff said the city would hold standard retainage and follow the payment-application process, with SEAGO copied on payment approvals for federal program compliance.
City Manager Kramer and Public Works staff said funds are available to complete the work and that the city will use internal paving crews for some work phases to reduce costs. The council approved the order; staff said they will require contractor presentations and periodic updates as the project proceeds.
The item passed without a recorded roll-call name-by-name vote in the transcript excerpt; the motion carried and staff will follow up to require the contractor to appear for a presentation if the contract is approved.
