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Chino Council awards $44.1 million construction contract for State Street water treatment plant, approves $58.5 million project budget
Summary
The City Council approved a $44,063,900 construction contract and related professional-services amendments for the new State Street Water Treatment Plant (WA212), increasing the project budget to about $58.5 million and authorizing a 10% contingency while pursuing state and federal grants and a low‑interest SRF loan.
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The Chino City Council on May 6 approved a $44,063,900 construction contract with Pacific Hydrotech Corporation for the State Street Water Treatment Plant (WA212) and authorized related engineering and construction‑management amendments, bringing the projectrevised budget to about $58.5 million.
The project will treat groundwater from Wells 12 and 14 for nitrate, perchlorate and 1,2,3‑trichloropropane (1,2,3‑TCP) and restore the wells to service. Associate Engineer Natalie Avila told the council the facility "will enable an alternative redundant water supply," describing treatment trains that include granular activated carbon for 1,2,3‑TCP and ion‑exchange vessels for nitrate removal.
The council approved appropriating $38,788,159 from the water enterprise fund to cover current cash needs while the city pursues funding. Staff said the city has applied for a Drinking Water State Revolving Fund (SRF) loan (up to $50 million) and a $10 million SRF grant; the city also has a $2 million congressional grant and a $750,000 Bureau of Reclamation WaterSMART grant committed. Until SRF loan or grant proceeds are received, the water enterprise fund will temporarily cover costs.
Project scope and cost details - Construction contract award to Pacific Hydrotech Corporation: $44,063,900. - Recommended 10% construction contingency to allow change orders for unknown site conditions. - Fifth amendment to the design professional services agreement (Hazen & Sawyer): $997,840 for construction‑phase engineering. - Amendment to construction management and inspection agreement (Butier Engineering): $607,000. - Native American monitoring services (Kitsch Nation Resource Management): not to exceed $290,000. - Total revised project budget (construction, contingency, current projected expenditures): $58,494,712.
Council members and staff discussed risks and contingencies: staff noted the bid contained a minor miscalculation in the contractor's bid schedule (roughly $10,000 relative to a $44 million bid), which the city deemed a waivable irregularity after review with the city attorney. Staff recommended, and the council approved, waiving the irregularity and adjusting the contract to match the listed unit prices. The construction contract includes language to protect the city if anticipated funding is delayed; staff explained the city can withhold a final notice to proceed until financing is secured and that the contractor agreed in writing to hold the bid price for a defined period.
Why it matters The plant is designed to treat 4,000 gallons per minute and will include new pumps, treatment buildings, security and communication upgrades, and about 1.5 miles of off‑site pipeline and utilities. Two wells that have been inactive because of contamination will be able to supply treated water once the facility is online, improving local supply reliability.
Timeline and next steps Staff said design is complete and, with procurement and equipment lead times, construction is expected to take roughly two years if permitting and funding proceed smoothly. The city is finalizing SRF loan documents and expects to return to council to accept the loan terms once legal review is complete. Council voted 4–0 (one member absent) to approve the package and funding appropriation.
Votes at a glance - Award construction contract to Pacific Hydrotech Corporation for $44,063,900; approve 10% construction contingency and associated professional services amendments: Passed, 4 yes, 0 no, 1 absent.
Details from the council record are incorporated from the May 6 City Council meeting transcript and staff presentations. No new policies or land‑use approvals were adopted in connection with this vote.

