DATE:
September 15, 2026
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Cassandra Sanchez, Director of Public Works/City Engineer Tina Souza, Senior Project Manager
Deanna Lestina, Project Manager
SUBJECT:
Award Construction Contract for FY 2025-26 CDBG Street Improvements, Construction Order No. 7176
RECOMMENDED ACTION
It is recommended that the City Council:
Award a construction contract for the FY 2025-26 CDBG Street Improvements, Construction Order (C.O.) No. 7176 project to the lowest responsive/responsible bidder, Hardy & Harper, Inc. Company for the bid amount of $765,000; approve an additional 10% contingency in the amount of $76,500, for a not-to-exceed total construction contract amount of $841,500; and Authorize the City Manager to execute the contract.
BACKGROUND
The City Council has continuously expressed a desire to improve existing roadways within the City. As a result, staff has sought innovative ways to fund such improvements. Annually the City receives Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD). In the past, a large part of this funding was directed to programs, which left small amounts available for capital projects. In order to accomplish the Council’s goal of improving more streets throughout the City, staff has designated a larger amount of CDBG funding towards the CDBG Capital Fund.
The FY 2025-26 CDBG Street Improvements (Project) consists of the rehabilitation or reconstruction of the street segments below.
Street Segment
From
To
Palm Street
Eighth Avenue
Seventh Avenue
Eighth Avenue
Palm Street
Cactus Street
Ninth Avenue
Lime Street
Cactus Street
Redwood Avenue
Juniper Street
Live Oak Street
Victor Avenue
Juniper Street
Live Oak Street
Hemlock Avenue
Juniper Street
Live Oak Street
The proposed Project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 – Existing Facilities) and Section 15302 (Class 2 – Replacement or Reconstruction) as the project involves the repair or reconstruction of an existing roadway within the public right-of-way with negligible or no expansion of use or capacity. A Notice of Exemption has been filed with the County Clerk and State Clearinghouse.
ISSUES/ANALYSIS
This project was advertised for bids beginning on August 5, 2026. More than 1,000 contractors were notified about the project through Public Purchase, the City’s online bidding platform. Bids were received, opened, and publicly read on August 25, 2026.
The City received five (5) bids for the project. Of the five (5) bids received, three (3) were determined to be non-responsive due to the bidders’ failure to submit all required bid forms, documents, and signatures. The two (2) responsive bids received are listed below:
Contractor
Bid Amount
Hardy and Harper, Inc.
$ 765,000.00
Onyx Paving Company, Inc.
$ 1,416,912.00
After reviewing the submitted bids, staff has determined that Hardy and Harper, Inc. is the lowest responsive/responsible bidder. Hardy & Harper, Inc. is a licensed general engineering contractor and has successfully completed projects of similar size and scope. After staffs review and due diligence, the contractor is qualified to perform the work required for this project. Therefore, staff recommends that Council award a contract to Hardy & Harper, Inc. for construction of the FY 2025-26 CDBG Street Improvements, C.O. No. 7176.
CITY GOAL SUPPORTED BY THIS ITEM
Capital Improvement – Continually evaluate capital improvement priorities.
FISCAL IMPACT
Funding for the Project is budgeted in the Fiscal Year 2026-27 Capital Improvement Program (CIP). Funding includes $759,620 in Fund 251 – Community Development Block Grant (CDBG) for the FY 2025-26 CDBG Street Improvements Project, C.O. 7176, in addition to CDBG funding rolled over from previous program years.
ALTERNATIVE(S)
1. Do not award the construction contract. HUD grant funds may be at risk for failure to use funds timely.
2. Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Award Construction Contract for FY 2025-26 CDBG Street Improvements, Construction Order No. 7176 September 15, 2026