For City Council Meeting [April 22, 2025]
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request the City Council/Rialto Utility Authority Board to: (1) Award a Maintenance Services Agreement with Hardy & Harper, Inc. for On-Call Asphalt and Concrete Maintenance Services for an annual amount not to exceed $1,150,000 for Services Related to Public Works Maintenance Operations and Rialto Utility Authority Maintenance Projects; and, (2) Authorize the City Manager or Their Designee to Execute All Related Documents.
(ACTION)
Body
RECOMMENDATION:
Staff recommends that the City Council/Rialto Utility Authority Board:
1) Award a Maintenance Services Agreement with Hardy & Harper, Inc., for On-Call Asphalt and Concrete Maintenance Services for an annual amount not to exceed $1,150,000 on an annual basis for services related to Public Works maintenance operations and Rialto Utility Authority maintenance projects; and,
2) Authorize the City Manager or their designee to execute all related documents.
BACKGROUND:
On April 12, 2022, the City Council approved an agreement for Pothole Repair and Asphalt Maintenance Services with Hardy & Harper, Inc. in an amount not to exceed $1,000,000. The amount set has been awarded to Hardy & Harper, Inc. on an annual basis for maintenance services throughout the City.
On September 13, 2022, the City Council/Rialto Utility Authority Board approved the First Amendment to the Services Agreement with Hardy and Harper, Inc., in the amount of $150,000 to include asphalt maintenance services related to Rialto Utility Authority Maintenance Projects. The designated funding was used to perform permanent street repairs to non-capital improvement project sites.
ANALYSIS/DISCUSSION:
On February 5, 2025, the City released Request for Qualifications (RFQ) No. 25-019 for On-Call Asphalt and Concrete Maintenance Services on PlanetBids and the City’s website. The RFQ scope of services generally included, but were not limited to, all required work for asphalt and concrete removal and placement, slurry seal activities, tree and root removals, striping removals and placement, and miscellaneous excavation, fill, disposal, grading, and compaction. The RFQ was written to ensure that the selected firm(s) demonstrated successful experience and capacity to provide services to municipal government agencies.
On March 11, 2025, the City received two (2) statements of qualifications from the following firms, listed in alphabetical order:
1. Hardy & Harper, Inc.
2. Paveco Construction, Inc.
Staff evaluated the statement of qualifications (SOQs) and found Hardy & Harper to be qualified and their SOQ to be responsive to the RFQ. The annual cost for pothole repair and asphalt maintenance services fluctuates depending on the demand and need for repairs and maintenance.
Rialto Utility Authority Maintenance Projects
Staff is requesting that the City Council include $150,000 in the Maintenance Services Agreement with Hardy and Harper, Inc. for Asphalt and Concrete Maintenance Services specifically related to Rialto Utility Authority maintenance projects. Section 3.2 (Easements and Licenses) of the Concession Agreement approved by the City/RUA in 2012 outlines the provisions between the City/RUA and Concessionaire (Rialto Water Services [RWS]) for RWS’s performance of maintenance activities on the water and wastewater utilities throughout the City. Subsection (h) of Section 3.2 (Restoration of Easement and License Areas) provides the requirements for restoration of City improvements affected by RWS’s maintenance activities, and states:
(h) Restoration of Easement and License Areas. If, in the performance of its obligations under the terms of this Agreement, Concessionaire excavates, cuts or otherwise disturbs an area within the Wastewater Facility Site Easement, Water Facility Site Easement, or the Warehouse Building and Parking Area License or Collection System License, Water Delivery System License, Concessionaire shall reasonably restore such area to its previous condition. In the case of streets, sidewalks and other rights-of-way, Concessionaire shall restore such streets, sidewalks and other rights-of way to a condition of rough finish that is reasonably suitable for final finishing by the City or others, at the cost and expense of the City. Notwithstanding the foregoing, to the extent that Concessionaire excavates, cuts or otherwise disturbs streets, sidewalks and other rights-of-way as part of a Wastewater Facility Improvement or Water Facility Improvement, Concessionaire shall restore such streets, sidewalks and other rights-of-way to a condition of final finish.
As emphasized in the cited subsection (h), the City has been responsible for completing the finish paving of any street excavations at the City’s cost (the noted exception is if RWS is completing an approved capital project - Wastewater Facility Improvement or Water Facility Improvement - RWS’s capital project will include full restoration of the asphalt pavement in the project cost).
Typically, the City has incorporated the work to finish pave the excavations caused by RWS’s maintenance activities, funded by the RUA budget in the annual street maintenance contracts.
Staff recommends that the City Council approve an agreement for On-Call Asphalt and Concrete Maintenance Services with Hardy & Harper to provide the requested services for the City with terms of the Agreement with an initial term of three (3) years, with two (2) one-year extensions upon approval of the City Manager and mutual consent of the selected firm, for a total maximum of five (5) years at a total cost not to exceed $1,150,000 on an annual basis for the term of their contract.
Hardy and Harper’s Disclosure Statement is included as Attachment 1. A copy of the Agreement is included as Attachment 2.
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 stall, 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 agreements and approves them as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action will have no impact on the Operating Budget.
Capital Improvement Budget Impact
Funds have been budgeted in the Capital Projects Fund, Account No. 33007305-52011 for Fiscal Year 2025/2026, in the amount of $1,000,000. Additionally, $90,000 has been budgeted in RUA 56807960-52011 and $60,000 in 56807860-52011 for a total amount of $150,000.
Funding for the extra contract years will be included in the budget process for the subsequent fiscal year.
Licensing
Prior to execution of the Professional Service Agreement, each vendor shall submit a business license application and pay a Business License tax at the rate of $1,354, as well as Administration and State fees.