Report to City Council
ID: 26-0385 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer AGENDA DATE: October 20, 2026
TITLE: CONSTRUCTION AGREEMENT FOR THE SHERMAN
AVENUE SIDEWALK IMPROVEMENTS PER
CALIFORNIA STATE PUBLIC CONTRACT CODE
SECTION 22000 ET SEQ (REPORT OF: PUBLIC
WORKS) (DISTRICT 1)
TITLE SUMMARY: Construction Agreement Award To Hardy & Harper, Inc. For The Sherman Avenue Sidewalk Improvements (Community
Development Block Grant) Project Number 801 0119
DISTRICT: District 1
Recommendation(s)
That the City Council:
1. Find the Sherman Avenue Sidewalk Improvements (Community Development Block Grant) project is Categorically Exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15301(c) and Section 5.1.2 of the City’s Rules and Procedures for CEQA implementation;
2. Award a construction agreement to Hardy & Harper, Inc. for the Sherman Avenue Sidewalk Improvements (Community Development Block Grant) Project Number 801 0119;
3. Authorize the City Manager to execute the agreement with Hardy & Harper, Inc. in the amount of $335,000.00, funded by the Community Development Block Grant Funds (Fund 2512);
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4. Authorize the issuance of a purchase order to Hardy & Harper, Inc. in the amount of $402,000.00 (bid amount plus 20% contingency) once all parties have signed the agreement;
5. Authorize the City Manager, or his or her designee, to execute any subsequent change orders to the agreement with Hardy & Harper, Inc. within the adopted City Council annual budgeted amounts, including the authority to authorize the associated purchase orders in accordance with the terms of the agreement, subject to the approval of the City Attorney; and
6. Approve an Amendment to the Adopted FY 2025/26 & 2026/27 Capital Improvement Plan (CIP) to incorporate the proposed project changes and associated budget adjustments.
SUMMARY
This staff report recommends awarding a construction agreement to Hardy & Harper, Inc. for the Sherman Avenue Sidewalk Improvements Project (Project No. 801 0119). The project is funded by the Community Development Block Grant (CDBG) (Fund 2512). The proposed improvements will enhance pedestrian safety and accessibility for residents and the public traveling along Sherman Avenue between Day Street and Pepper Street.
DISCUSSION
The Sherman Avenue Sidewalk Improvements Project will construct approximately 790 feet of missing sidewalk along the north side of Sherman Avenue, creating a continuous pedestrian connection from Day Street to Pepper Street. Supporting improvements include modifications to driveways, drainage facilities, curb and gutter, and access ramps to accommodate the new sidewalk and enhance pedestrian connectivity and accessibility.
Because the project’s location falls within the federal CDBG Program’s eligible Census Tract, the City can leverage CDBG funding for these improvements. These improvements will provide a continuous pedestrian connection and enhance accessibility along this segment of Sherman Avenue. Per California State Public Contract Code Section 22000 et seq., Public Works is limited in its ability to perform public project work using the City’s force account, which restricts such work to projects with an estimated value of $75,000 or less .
The design phase was completed in August 2026 by in-house engineering staff to reduce costs. The project was advertised for construction bids on August 21, 2026. Twelve (12) bids were received through the City’s electronic bid management system, PlanetBids, on September 15, 2026, as follows:
Contractors Bid Amount
1. Hardy & Harper, Inc. $335,000.00
2. LCR Earthwork & Engineering, Corp. $375,730.00
3. TVR Construction Engineering LLC $394,615.00
4. Baltazar Construction, Inc. $401,292.24
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5. Universal Construction & Engineering $431,370.00
6. Onyx Paving Company Inc. $442,888.00
7. Vido Samarzich, Inc. $477,000.00
8. Greer’s Contracting & Concrete, Inc. $487,090.99
9. CT&C Concrete Paving, Inc. $492,402.55
10.Marin Concrete Construction, Inc. $495,300.00
11.Gentry General Engineering, Inc. $496,412.00
12.EBS General Engineering, Inc. $522,170.00
The lowest responsible bidder was determined by comparing the cumulative total for all bid items as stipulated in the bidding documents. Staff reviewed the bid from Hardy & Harper, Inc. and found it to be the lowest responsive and responsible bidder in possession of a valid license and bid bond. Reference checks for the bidder revealed no outstanding issues. Therefore, staff recommends awarding an agreement to Hardy & Harper, Inc. in the amount of $335,000 and authorizing the issuance of a purchase order in the amount of $402,000.00, which includes the bid amount plus a 20% contingency for the construction of these much-needed street improvements. The contingency is recommended to account for latent or unforeseen circumstances that may arise during construction.
ENVIRONMENTAL REVIEW
The Community Development Department’s, Planning Division determined that the project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301(c) of the California Environmental Quality Act (CEQA) Guidelines and Section 5.1.2 of the City’s Rules and Procedures for the Implementation of CEQA.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
This alternative will provide for the timely construction of the Sherman Avenue Sidewalk Improvements. Staff recommends this alternative.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative, as it will delay the construction of much-needed improvements and may result in a loss of CDBG grant funding and higher future construction costs.
FISCAL IMPACT
The Sherman Avenue Sidewalk Improvements Project (801 0119) was awarded CDBG funding (Fund 2512) in FY 2025/26. The project has an available budget of $616,693.00.
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AVAILABLE BUDGET
Community Development Block Grant (Fund 2512)
(Account 2512-70-77-80001-720199) (Project No. 801 0119-2512-99).... $616,693.00
ESTIMATED CONSTRUCTION COSTS
Construction (including 20% contingency) .................................................... $402,000.00 Geotechnical and Material Testing................................................................. $50,000.00 Project Administration, Inspection, and Labor Compliance ........................... $164,693.00 Estimated Construction Cost Total:............................................................... $616,693.00
ANTICIPATED PROJECT SCHEDULE
Construction is planned to start in Fall 2026, after all pre-construction documentation has been provided and approved by the City. The project is expected to finish in early Spring 2027, unless there are delays caused by weather or unforeseen site conditions.
NOTIFICATION
Prior to construction, business owners, schools, utilities, adjacent property owners, law enforcement, fire department, churches, public transportation, and other emergency service responders in the area will be notified in a timely manner of the proposed construction and roadway closures.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Andrew Palacios Melissa Walker, P.E.
Assistant Engineer Public Works Director/City Engineer
Concurred By: Concurred By:
Quang Nguyen, P.E. Harold Zamora, P.E.
Capital Projects Principal Engineer Engineering Division Manager/Assistant City Engineer
CITY COUNCIL GOALS
Positive Environment: Create a positive environment for the development of Moreno Valley's future.
Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
Public Safety: Provide a safe and secure environment for people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.
CITY COUNCIL STRATEGIC PRIORITIES
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1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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Report Approval Details
Document
Title:
STAFFREPORT_PW_CP_SHERMAN_AVE_801_0119.docx
Attachments: - Location Map.pdf
- Draft Agreement_Hardy And Harper_Project No. 801 0119.pdf Final Approval
Date:
Oct 15, 2026
This report and all of its attachments were approved and signed as outlined below:
Melissa Walker
Sean Kelleher
Anna Chacon
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez