For City Council Meeting August 25, 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. 8570 Amending the 2026/2027 Fiscal Budget; (2) Award a Construction Contract to Hardy & Harper, Inc., a California corporation, in the Amount of $1,434,000 for the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083; (3) Authorize a Task Order in the Amount of $76,093.85 with Onward Engineering pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083; (4) Award a Construction Contract to LCR Earthwork & Engineering, Corp., a California corporation, in the Amount of $2,114,038 for the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084; (5) Authorize a Task Order in the Amount of $74,156.82 with Onward Engineering pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084; and (6) Authorize the City Manager or Their Designee to Execute all Related Documents.
(ACTION)
Body
RECOMMENDATION:
Staff requests that the City Council:
1) Adopt Budget Resolution Amending the 2026/2027 Fiscal Budget;
2) Award a construction contract to Hardy & Harper, Inc., in the amount of $1,434,000 for the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083;
3) Authorize a task order in the amount of $76,093.85 with Onward Engineering pursuant to the City’s “on-call” agreement for construction management, inspection, and materials testing services for the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083;
4) Award a construction contract to LCR Earthwork & Engineering, Corp., in the amount of $2,114,038 for the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084;
5) Authorize a task order in the amount of $74,156.82 with Onward Engineering pursuant to the City’s “on-call” agreement for construction management, inspection, and materials testing services for the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084; and
6) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND:
On May 27, 2025, the City Council approved the draft of the Fiscal Year 2026-2030 Five-Year Capital Improvement Plan. Approximately $6,400,000 was programmed for all phases of a pavement management program project for FY 2025-2026.
On June 10, 2025, the City Council adopted Resolution No. 8357, adopting a list of projects funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2025/2026. From the list, Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083, was identified to address an area of the City that has received numerous resident calls and requests for rehabilitation over the last several years.
On June 9, 2026, City Council authorized the release of bids for the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083, and the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084.
ANALYSIS/DISCUSSION:
Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083
On June 18, 2026, the City released RFB No. 26-025 for the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083, and published the Notice Inviting Bids on the PlanetBids.com website. On July 15, 2026, the City received twelve (12) bids as shown in Table 1 below:
Table 1
A complete bid summary is included as Attachment 1. The engineer’s estimate was $2.2 million. The lowest responsible and responsive bid was $1,434,000 submitted by Hardy & Harper, Inc. Staff reviewed the bid and found Hardy & Harper, Inc. to be properly licensed and qualified. Hardy & Harper, Inc., Disclosure Statement, Contractor’s License, and DIR verification documents are included as Attachment 2. Staff recommends that the City Council accept the bid received from Hardy & Harper, Inc., as the lowest responsible and responsive bid. A construction contract with Hardy & Harper, Inc., for the project is included as Attachment 3.
Staff coordinated with PSOMAS for preparation of the construction plans, specifications, and estimates per their on-call professional engineering design services agreement with the City.
Construction Management, Inspection, and Materials Testing Services
Staff requested cost proposals from Onward Engineering and Bureau Veritas North America for the on-call construction management, inspection, and materials testing services. Based on a review of these proposals, staff recommends approval of the proposal provided by Onward Engineering. Onward Engineering has experience overseeing projects of this magnitude similar in scope to the Project. A copy of their proposal is included as Attachment 4. Onward Engineering has provided a fee proposal of $76,093.85 to provide the required construction phase services through the duration of the project. A copy of Onward Engineering’s Disclosure Statement is included in Attachment 5. Table 2 below provides the proposal amounts received from each firm:
Table 2
Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084
On June 18, 2026, the City released RFB No. 26-031 for the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084, and published the Notice Inviting Bids on the PlanetBids.com website. On July 16, 2026, the City received eleven (11) bids as shown in Table 3 below:
A complete bid summary is included as Attachment 6. The engineer’s estimate was $4.3 million. The lowest responsible and responsive bid was $2,114,038.00 submitted by LCR Earthwork & Engineering, Corp. Staff reviewed the bid and found LCR Earthwork & Engineering, Corp. to be properly licensed and qualified. LCR Earthwork & Engineering, Corp., Disclosure Statement, Contractor’s License, and DIR verification documents are included as Attachment 7. Staff recommends that the City Council accept the bid received from LCR Earthwork & Engineering, Corp., as the lowest responsible and responsive bid. A construction contract with LCR Earthwork & Engineering, Corp., for the project is included as Attachment 8.
Staff coordinated with Michael Baker International for preparation of the construction plans, specifications, and estimates per their on-call professional engineering design services agreement with the City.
Construction Management, Inspection, and Materials Testing Services
Staff requested cost proposals from Onward Engineering and Bureau Veritas North America for the on-call construction management, inspection, and materials testing services. Based on a review of these proposals, staff recommends approval of the proposal provided by Onward Engineering. Onward Engineering has experience overseeing projects of this magnitude similar in scope to the Project. A copy of their proposal is included as Attachment 9. Onward Engineering has provided a fee proposal of $74,156.82 to provide the required construction phase services through the duration of the project. A copy of Onward Engineering’s Disclosure Statement is included in Attachment 5. Table 4 below provides the proposal amounts received from each firm:
Table 4
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, the Residential Streets Rehabilitation Zone 3 Phase I, City Project No. 26083 and the Residential Streets Rehabilitation Zone 3 Phase II, City Project No. 26084 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:
The City of Rialto General Plan establishes various guiding principles, goals and objectives through which the City looks to improve the community and protect the quality of life for our residents. 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 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 Arterial Highways, Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the resolution and agreements and approved them as to form.
FINANCIAL IMPACT:
Operating Budget Impact:
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact:
The proposed projects are included in the City’s Draft Fiscal Year 2026-2030 Capital Improvement Program under the Pavement Management Program and funded through SB-1 Gas Tax Fund. The projected SB1 gas tax revenue and related expenditures were included in the Fiscal Year 2025/2026 City Budget in Gas Tax Revenue Account No. 22037305-47524 and Gas Tax Expenditure Account No. 22037305-53001. The current SB-1 Fund balance is approximately $8,390,133.
The Residential Streets Rehabilitation - Zone 3, Phase I project has an engineer’s estimate of $2,200,000 and an initial budget of $143,540 for the design phase. Upon adoption of the resolution to appropriate funds, the construction contract with Hardy & Harper, Inc., will be funded by the SB-1 Gas Tax Fund 22037305-53001-26083-05 in the amount of $1,434,000. The task order with Onward Engineering for construction management, inspection, and materials testing services will be funded by the SB-1 Gas Tax Fund, Account No. 22037305-53001-26083-16, in the amount of $76,093.85. The cumulative cost of the project is expected to be $ 1,653,634.
The Residential Streets Rehabilitation - Zone 3, Phase II project has an engineer’s estimate of $4,400,000 and an initial budget of $159,615 for the design phase. Upon adoption of the resolution to appropriate funds, the construction contract with LCR Earthwork & Engineering, Corp., will be funded by the SB-1 Gas Tax Fund 22037305-53001-26084-05 in the amount of $2,114,038. The task order with Onward Engineering for construction management, inspection, and materials testing services will be funded by the SB-1 Gas Tax Fund, Account No. 22037305-53001-26084-16 in the amount of $74,156.82. The cumulative cost of the project is expected to be $2,347,810.
Licensing
Hardy & Harper, Inc., LCR Earthwork & Engineering, Corp and Onward Engineering, Inc. will each pay a Business License Tax prior to commencing the services for these projects.
ATTACHMENTS:
1. Bid Summary, 26083
2. Disclosure Statement, Contractor’s License, and DIR verification, 26083
3. Construction Contract, 26083
4. Onward Engineering CM&I proposal, 26083
5. Onward Engineering Disclosure Statement
6. Bid Summary, 26084
7. Disclosure Statement, Contractor’s License, and DIR verification, 26084
8. Construction Contract, 26084
9. Onward Engineering CM&I proposal, 26084