For City Council Meeting September 22, 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 Resolution No. 8579 Amending the Fiscal Year 2026-2027 Budget in the Amount of $2,000,000 From General Fund Reserves for Asphalt and Concrete Maintenance Services Under the Existing Hardy & Harper, Inc. Maintenance Contract; and (2) Authorize the City Manager or Their Designee to Execute Necessary Task Orders and Related Documents Under the Contract for Such Work.
(ACTION)
.Body
RECOMMENDATION:
Staff recommends that the City Council:
1) Adopt a Resolution Amending the Fiscal Year 2026-2027 budget in the amount of $2,000,000 from General Fund reserves for asphalt and concrete maintenance services under the existing Hardy & Harper, Inc. maintenance contract; and
2) Authorize the City Manager or their designee to execute necessary task orders and related documents under the contract for such work.
BACKGROUND:
On January 11, 2022, the City Council approved a Revised List of Streets for rehabilitation and reconstruction, based on the Pavement Condition Index (PCI), as part of the City’s Pavement Management Program (PMP). At that meeting, the City appropriated $1,000,000 for pothole repairs and street maintenance and directed staff to obtain a qualified contractor.
Subsequently, on March 1, 2022, the City issued Request for Proposals (RFP) No. 22-053 for On-Call Asphalt and Concrete Maintenance Services. The RFP covered a comprehensive set of services, including asphalt removal and placement, slurry seal, tree and root removal, striping, and related excavation and grading tasks. The City received one proposal from Hardy & Harper, Inc. (Hardy & Harper) on March 16, 2022.
On April 12, 2022, the City Council awarded the agreement to Hardy & Harper, authorizing the City's "On-Call" Agreement for Asphalt and Concrete Maintenance Services with an initial term of one year with two possible one-year extensions, not to exceed a total of $1,000,000.
On September 13, 2022, the City Council approved a first amendment to the agreement in the amount of $150,000 to cover asphalt maintenance services for Rialto Utility Authority Maintenance Projects, allowing for permanent street repairs at non-capital improvement project sites. The annual service costs varied based on the City’s maintenance needs and repair demands.
At the conclusion of the previous agreement, the City issued Request for Qualifications (RFQ) No. 25-019 on February 5, 2025, for On-Call Asphalt and Concrete Maintenance Services. The RFQ included a comprehensive scope of work, including asphalt and concrete removal and placement, slurry seal activities, tree and root removals, striping, and related excavation and grading, to select firms experienced in municipal projects.
By March 11, 2025, the City received two statements of qualifications. After evaluation, the City determined that Hardy & Harper was both qualified and responsive. On April 22, 2025, the City Council subsequently approved an agreement with Hardy & Harper for these services, establishing an initial three-year term with up to two one-year extensions, for a potential maximum of five years. A copy of the Agreement is included as Attachment 1.
On July 2, 2025, a first amendment was approved to change the contract language to include the ability to issue task orders as part of the agreement. A copy of the first amendment is included as Attachment 2.
ANALYSIS/DISCUSSION
Despite substantial investments, the need for ongoing street repairs remains urgent. Deferred maintenance can accelerate pavement deterioration, leading to higher long-term costs and reduced service life of roadway assets. The PMP continues to play a vital role in guiding resource allocation, ensuring that repairs are prioritized based on pavement condition, usage, and safety considerations. Continued investment in street repairs is essential to preserve infrastructure, support economic activity, and enhance community quality of life.
The PMP serves as the foundation for all pavement-related decision-making. It provides a data-driven framework for evaluating pavement conditions, forecasting future needs, and optimizing repair strategies. By adhering to the PMP, the City aims to maximize return on investment, minimize lifecycle costs, and maintain a safe, reliable transportation network.
Historical spending patterns on street repairs show a trend, with increased investment during periods of higher capital funding and reduced spending during budget constraints. The chart below illustrates overall investment over time per fiscal year. In recent years, spending has increased noticeably, reflecting the City’s strategic emphasis on preventive maintenance and rehabilitation in accordance with the PMP.
Historical Spending Trends
Currently, the City has awarded $1,150,000 toward large-scale pavement projects and repairs. This investment reflects the City’s ongoing commitment to maintaining and improving its roadway infrastructure. The City prioritizes these projects based on the PMP, which uses objective criteria to assess pavement conditions and schedule repairs for maximum efficiency and cost-effectiveness. The chart below illustrates the current spending trend per fiscal year under the current contract agreement.
Current Spending Trend
The request for additional funding is driven by continued uncertainty in the cost of materials essential to pavement construction and repair. Prices for asphalt, aggregate, and other petroleum-based products have experienced significant and unpredictable fluctuations in recent years, largely due to global supply chain disruptions, volatility in energy markets, and regional demand factors beyond the City’s control. In addition, significant increases in labor costs have further constrained available funding and resources.
The additional funds requested will offset increased material and labor costs, enabling the City to proceed with more of its planned pavement projects and address a greater number of roadway segments. Increasing the amount of paving work completed will improve roadway ride quality, reduce pavement deficiencies, and enhance the overall driving experience for residents, businesses, and visitors. More extensive pavement improvements will also contribute to an increase in the City’s overall PCI, helping to maintain the roadway network in better condition and reducing the likelihood of more costly rehabilitation or reconstruction in the future.
This proactive investment provides a direct benefit to the community by allowing the City to improve more lane miles, extend the useful life of existing pavement, and maintain safer, smoother, and more reliable roadways. By addressing pavement needs before they deteriorate further, the City can maximize the value of its infrastructure investments, reduce long-term maintenance costs, and preserve the quality and functionality of the transportation network for our residents.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental Quality Act (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, each maintenance and/or repair assignment will be considered categorically exempt from CEQA.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A 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 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Policy 4-1.1: Establish and maintain standards for a variety of street classifications to serve both local and regional traffic, including Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
LEGAL REVIEW
The City Attorney’s Office has reviewed the Resolution and approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
Approval of this action does not impact the Operating Budget.
Capital Improvement Budget Impact
Approval of the Resolution will increase the funding for the City's "On-Call" Agreement for Asphalt and Concrete Maintenance Services by $2,000,000, for a total amount of $3,150,000 for Fiscal Year 2026/2027. The additional funding of $2,000,000 will be new appropriations from General Fund Reserves to Account No. 33007305-52011.
Staff recommends adopting the Resolution, attached as Attachment 3, to appropriate $2,000,000 to the Capital Projects Fund Account No. 33007305-52011.
Licensing
Before executing any additional work, the vendor shall submit a business license application and pay the Business License tax, as well as Administration and State fees.
ATTACHMENTS
1. Hardy & Harper Inc. Contract Service Agreement
2. First Amendment
3. Resolution