For City Council Meeting September 8, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Yazdan Emrani, P.E., Director of Public Works
Title
Request City Council to: (1) Adopt a Budget Resolution No. 8572 Amending the Fiscal Year 2026/2027 Budget; (2) Award a Professional Services Agreement to Milestone CM Consulting, LLC in the Amount of $228,848 for Construction Management, Inspection and Materials Testing Services, for the Fire Station 201 Interior Improvements Project, City Project No. 25022; and (3) Authorize the City Manager or Their Designee to Execute all Related Documents.
(ACTION)
Body
RECOMMENDATION:
Staff requests that City Council:
1) Adopt a Budget Resolution amending the Fiscal Year 2026/2027 budget;
2) Award a professional services agreement to Milestone CM Consulting, LLC in the amount of $228,848 for construction management, inspection and materials testing services for the Fire Station 201 Interior Improvements Project, City Project No. 25022; and
3) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND:
On the evening of May 11, 2024, an errant driver collided with the west side of Fire Station 201, also known as Fire Headquarters, located at 131 S. Willow Avenue, Rialto, California. The vehicle breached the building envelope and entered the station’s living and kitchen area, causing significant damage to the facility. The collision also damaged fire sprinkler components, resulting in water release and additional interior impacts. Fire staff were not injured as a result of the incident.
Following the collision, the City initiated emergency response, damage assessment, insurance coordination, design, and project development activities to restore the damaged portions of the station. Fire and EMS operations have continued from Fire Station 201, with only a brief interruption immediately following the incident.
The Fire Station 201 Interior Improvements Project will repair and restore the portions of the facility impacted by the May 11, 2024, collision, including structural repairs, interior finishes, flooring, kitchen and living area improvements, fire sprinkler repairs, and other related work necessary to return the damaged areas to full service.
The City has been coordinating with its insurance adjuster and insurance representatives regarding reimbursement for eligible repair and restoration costs associated with the loss. Based on the low bid submitted by R Dependable Construction Inc., the insurance representatives have confirmed an undisputed amount of $904,589 toward the interior repair work. The City will continue to coordinate with the insurance representatives regarding remaining disputed or unresolved items, including scope quantities, contingency-type items, appliances, and other potentially recoverable costs.
Fire Station 201 exterior safety improvements are being addressed separately under City Project No. 25021. On January 13, 2026, City Council awarded a construction contract to Roadway Engineering & Construction Corp. in the amount of $937,665 for those improvements.
On June 23, 2026, City Council awarded a construction contract to R Dependable Construction Inc. in the amount of $1,160,417 for the Fire Station 201 Interior Improvements Project, City Project No. 25022. The project represents a high-priority restoration of the City’s active Fire Headquarters and will be completed while Fire and EMS operations continue from the facility.
The City has been coordinating with its insurance adjuster and insurance representatives regarding reimbursement for eligible repair and restoration costs associated with the loss. Based on the proposal submitted by Milestone CM Consulting, LLC, the insurance representatives have confirmed the amount of $212,664 toward actual costs incurred for project Construction Management and Inspection costs. The City will continue to coordinate with the insurance representatives regarding remaining disputed or unresolved items, including scope quantities, contingency-type items, appliances, and other potentially recoverable costs.
ANALYSIS/DISCUSSION:
On March 25, 2026, the City released Request for Bids No. 26-018 for the Fire Station 201 Interior Improvements Project, City Project No. 25022, and published the Notice Inviting Bids through the PlanetBids website. On April 30, 2026, the City received five construction bids. Following evaluation of the bids, the City Council awarded the construction contract to R Dependable Construction, Inc., as the lowest responsible and responsive bidder. The construction contract provides for a performance period of 140 working days.
The project involves improvements to an active public-safety facility and presents several conditions that require sustained construction management, field inspection, testing, coordination, and contract administration throughout the construction period, including:
• Active Fire Headquarters: Fire Station 201 serves as the City’s Fire Headquarters and will remain operational throughout construction. Construction activities must be carefully planned and coordinated to minimize impacts to ongoing City operations.
• Continuity of Fire and Emergency Medical Services: Fire and EMS personnel, emergency response activities, fire apparatus, and emergency access must remain fully operational during construction. Construction sequencing, temporary access, deliveries, utility interruptions, and other activities must be coordinated to avoid impacts to emergency response capabilities.
• Occupied City Campus: The City Clerk building and Building and Safety operations are located immediately adjacent to the project site and will remain occupied during construction. Construction activities will therefore require ongoing coordination to minimize disruptions to City staff and daily operations.
• Public and Employee Access: City employees, visitors, and members of the public will continue to access adjacent City facilities during construction. This requires careful management of construction access, deliveries, temporary conditions, pedestrian routes, and site safety.
• 140-Working-Day Construction Period: The 140-working-day performance period requires consistent construction management, contract administration, field inspection, documentation, schedule monitoring, progress-payment review, and coordination throughout the project.
• Structural and Specialty Work: The project includes structural and specialty construction requiring appropriate inspection and testing in accordance with the California Building Code and applicable project requirements, including inspections associated with structural steel and welding.
• Life-Safety Systems: Work includes fire sprinkler and other building systems within an occupied public-safety facility, requiring careful sequencing, inspection, and coordination.
• Construction Safety Oversight: Milestone's staffing resources include personnel with construction health and safety qualifications, including a Certified Health and Safety Technician (CHST), to support oversight of construction activities within this active municipal and emergency-response environment.
• High-Visibility Project: Due to the facility's public-safety function, location within the Civic Center, and continued City operations surrounding the work, the project requires a heightened level of documentation, coordination, and quality control.
To support construction of the project, staff subsequently began soliciting proposals for construction management, inspection, and materials testing services. The scope of services includes construction administration, field inspection, coordination with the contractor and design team, review of submittals and requests for information, change-order support, schedule monitoring, labor-compliance coordination, progress-payment review, project documentation, materials testing, punch-list administration, and project closeout.
The procurement and evaluation process required additional time because staff sought proposals and availability information from multiple qualified firms to obtain appropriate staffing at a reasonable cost. The following responses were received:
The following on-call CM&I firms declined or did not submit a proposal:
• SPECS declined to submit a proposal due to adjacent project conflicts (FS 201 Safety)
• Bureau Veritas declined to propose
• Onward Engineering declined to propose
Therefore, staff reached out to other qualified companies to obtain cost proposals for the needed CM&I services.
The proposals received demonstrated that the cost of providing construction management and inspection services for this project is influenced significantly by the 140-working-day construction duration, required level of professional oversight, complexity of the work, and operational constraints at the site, rather than solely by the approximately $1.16 million value of the construction contract.
Following review of the proposals, consultant availability, qualifications, project approach, and anticipated level of effort, staff determined that Milestone CM Consulting, LLC provides the best overall value to the City. The not-to-exceed amount of $228,848 represents the final negotiated scope and fee with Milestone CM Consulting, LLC, which provides the City with a cost-effective level of construction management, inspection, and materials testing while maintaining the oversight necessary for a complex project within an active public-safety facility. Milestone's proposal also remains substantially below the other market proposals received.
Furthermore, the insurance representatives have confirmed that the amount of $212,664 would be reimbursable for the actual costs incurred for project Construction Management and Inspection costs.
Staff therefore recommends that City Council approve a Professional Services Agreement with Milestone CM Consulting, LLC in a not-to-exceed amount of $228,848. The consultant's cost proposal is included as Attachment 1, the proposed Professional Services Agreement is included as Attachment 2, and the firm's Disclosure Statement is included as Attachment 3.
Staff previously coordinated with SVA Architects for preparation of the project's construction plans, specifications, and estimate pursuant to the firm's on-call professional architectural services agreement with the City. During construction, SVA Architects will continue to provide design-related support, while Milestone CM Consulting, LLC will provide construction management, inspection, and materials testing services on behalf of the City.
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental Quality (CEQA) include a list of classes of projects that have been determined not to have a significant effect on the environment and which shall, therefore, be exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with 14 CCR Section 15301, “Existing Facilities,” Class 1 projects consist of the repair, maintenance, or minor alteration of existing structures and facilities; therefore, the Fire Station 201 Interior Improvements Project are considered categorically exempt from CEQA, and a Notice of Exemption will be prepared and filed with the San Bernardino County Clerk.
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.
Goal 5-3.1: Provide for fire personnel, equipment, and fire stations to have adequate and appropriate resources to meet the needs and serve all areas of Rialto.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the agreement and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact:
There is no impact to the Operating Budget.
Capital Improvement Budget Impact:
The Fire Station 201 Interior Improvements project is included in the City’s Draft Fiscal Year 2026-2030 Capital Improvement Program, scheduled for Fiscal Year 2026. The current budget for construction is funded by the General Liability Fund, Account No. 67302148-53001-25022-05, in the amount of $904,589, and the Fire Protection Capital Improvements Fund, Account No. 33005174-53001-25022-22, in the amount of $255,828. This brings the total cumulative construction budget to $1,160,417.
Staff recommends adopting the resolution, attached as Attachment 4, to appropriate $212,664 to the General Liability fund Account No. 67302148-53001 for Insurance proceeds and $16,184 from the General Fund balance to the Fire Protection Capital Improvements Fund, Account No. 330051741-53001, for Construction Management, Inspection, Labor Compliance, and Materials Testing services.
The Professional Services Agreement with Milestone CM Consulting, LLC will be funded by Account No. 33005174-53001-25022-16 and Account No. 67302148-53001-25022-55 in the amount of $228,848. Based on the anticipated allocation of services associated with restoration of the insured loss, the insurance representatives have determined a total amount of $212,664 toward actual costs incurred for project Construction Management and Inspection costs. The remaining approximately $16,184 is attributable to City-directed improvements and other non-loss-related work. Insurance proceeds received for eligible CM&I costs will reimburse the applicable project expenditures.
Licensing
Milestone CM Consulting, LLC will pay a Business License Tax prior to commencing the services for this project.
ATTACHMENTS:
1. Proposal
2. Professional Services Agreement
3. Disclosure Statement
4. Resolution