APPROVAL OF PLANS AND AWARD OF CONSTRUCTION CONTRACT TO HARDY & HARPER, INC. FOR THE FISCAL YEAR 2026-2027 RESIDENTIAL ROADWAY REHABILITATION PROJECT, CITY PROJECT NO. 27-104

The scope of work for the Fiscal Year (“FY”) 2026-27 Residential Roadway Rehabilitation Project entails the rehabilitation of residential streets bounded by Bastanchury Road, Kraemer Boulevard, Palm Drive, and western City limits (Attachment 1), totaling approximately 667,000 square feet of roadway. In general, the work consists of pavement rehabilitation; replacement of damaged sidewalk, curb, and gutter, pavement markings, and pavement legends.

The City solicited competitive bids for the project. A total of nine (9) bids were received for this project on August 27, 2026. These bids consisted of three portions: Bid "A" + Additive Bid "B" + Additive Bid "C". Bid "A" is the base bid which entails street rehabilitation and concrete work. Bid schedule "B" is for rehabilitation of 3 alley sections in the City. Bid schedule "C" is for adjusting sewer manholes for the Orange County Sanitation District (OC San). The grand total of all bids was used as the basis in determining the low bid for this project. The contract will be for the amount represented by the sum of Bid "A", Additive Bid "B" and Additive Bid "C" Schedule. After reviewing bids, it was determined that equal bids were received from Hardy & Harper, Inc. and Onyx Paving Company, Inc. in the amount of $2,015,000.00. The bids received from both contractors were found to be the responsive and responsible. Under the City’s Municipal Code, if two or more bids received are for the same total amount, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City Council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tied bidders at the time of the bid opening.

In accordance with the provision in the City’s Municipal Code, City staff proceeded with negotiation with the tie bidders. The negotiation consisted of a request for updated bid schedules from the tie bidders reflecting any revised pricing offered by the contractor for consideration in determining the contract award. The revised bid received from Hardy & Harper, Inc. was found to be the lowest responsive and most responsible bid received. Staff recommends that City Council award a construction contract to Hardy and Harper, Inc. in the amount of $1,936,000.00.

In addition to the construction cost, a ten percent (10%) construction contingency amount of $193,600.00 is provided to cover any unforeseen conditions found during construction. The total construction contract cost, including contingency, amounts to $2,129,600.00.

A separate project led by the City of Anaheim will consist of pavement rehabilitation along Miraloma Ave from Jefferson St. to Van Buren St. The project entails pavement rehabilitation, concrete repairs and new striping markings, and pavement legends. A portion of work is within the City of Placentia, and in effort to further collaborate between both agencies, staff is recommending entering into an agreement. The City of Placentia would be responsible for reimbursing the City of Anaheim for an amount not to exceed $18,560.

This item recommends the City Council award a construction contract to Hardy and Harper, Inc., in the amount of $1,936,000.00, and a 10% contingency of $193,600, for a total not-to-exceed contract amount of $2,129,600. It is also recommended that the City Council approve an Agreement with the City of Anaheim for Placentia's fair share of $18,560 for Anaheim's pavement rehabilitation project. 

It is recommended that the City Council:

1. Approve the Plans and Specifications prepared by the Public Works Department – Engineering Division for the FY 2026-2027 Residential Roadway Rehabilitation Project, City Project No. 27-104; and
2. Approve a Public Works Agreement with Hardy & Harper, Inc. for the FY 2026-2027 Residential Roadway Rehabilitation Project in the amount of $1,936,000.00; and
3. Reject all other bids received and authorize return of the bid bonds; and
4. Authorize the Acting City Administrator to approve contract change orders up to ten percent (10%) of the contract amount, or $193,600.00, for a total construction contract not-to-exceed amount of $2,129,600.00; and
5. Approve an Agreement between the City of Anaheim and the City of Placentia for the construction cost of Placentia’s fair share of Anaheim's roadway improvement project that is estimated to be $18,560, with the final cost to be based on actual construction completion; and
6. Authorize the Acting City Administrator and/or her designee to execute all necessary documents, in a form approved by the City Attorney.

This item conforms to Strategic Goal No. 3: Maintain and enhance streets, parks, and public facilities to ensure they are well-appointed, clean, attractive, and reflective of the City's commitment to quality.

The scope of work for the FY 2026-27 Residential Roadway Rehabilitation Project includes the rehabilitation of residential streets bounded by Bastanchury Road, Kraemer Boulevard, Palm Drive, and the western City limits. The scope of work includes pavement rehabilitation; replacement of damaged sidewalk, curb, and gutter, pavement markings, and pavement legends. A total of approximately 667,000 square feet of roadway will be rehabilitated as part of this project.

On August 27, 2026, the City received nine (9) bids from contractors. The following table provides the total bid amounts received from each contractor and these amounts reflect base bid "A", additive bid "B" and additive bid "C" which form the basis of award:

After reviewing bids, it was determined that equal bids were received from Hardy & Harper, Inc. and Onyx Paving Company, Inc. in the amount of $2,015,000.00. The bids received from both contractors were found to be the lowest responsive and most responsible bids received. Under the City’s Municipal Code, when two or more bids are identical and the public interest does not permit delaying the project for re-advertisement, the City may award the contract to a bidder selected at its discretion or to the lowest bidder after negotiation with the tied bidders at the time of bid opening. In accordance with the provision in the municipal code, City staff proceeded with negotiation with the tied bidders. The negotiation consisted of the request for updated bid schedules from the tied bidders reflecting any revised pricing by the contractor offered for consideration in determining the contract award. On September 8, 2026, the City received revised bids from contractors. The following table provides amounts received from each contractor. 

Tie-Breaker Bid Submission

After reviewing the bids, it was determined that Hardy & Harper, Inc. submitted the lowest responsible bid. Upon review and analysis, staff determined the bid proposal to be responsive and valid. Based upon Hardy & Harper’s reference check, and submitted bid, staff recommends awarding a construction contract to Hardy & Harper, Inc. in the amount of $1,936,000.00. In addition to the construction cost, a ten percent (10%) construction contingency amount of $193,600.00 is provided to cover any unforeseen conditions found during construction. The total construction contract cost, including contingency, amounts to $2,129,600.00.

A separate project led by the City of Anaheim will consist of pavement rehabilitation along Miraloma Ave from Jefferson St. to Van Buren St. The project entails pavement rehabilitation, concrete repairs and new striping markings, and pavement legends. A portion of work is within the City of Placentia, and in effort to further collaborate between both agencies, staff is recommending entering into an agreement with Anaheim. The City of Placentia would be responsible for reimbursing the City of Anaheim for an amount not to exceed $18,560. It is also recommended that the City Council approve an Agreement with the City of Anaheim for Placentia's fair share of $18,560 for Anaheim's pavement rehabilitation project. 

The total construction cost for the Fiscal Year (FY) 2026-27 Residential Roadway Rehabilitation Project amounts to $2,129,600.00. This cost consists of the bid amount submitted by Hardy & Harper, Inc. in the amount of $1,936,000.00, a construction contingency in the amount of $193,600.00.

This item also recommends the approval of an Agreement with the City of Anaheim for Placentia's share of roadway improvements. Since there are savings from this FY 2026-27 Residential Roadway Rehabilitation Project, Measure U funds will be allocated to pay for Placentia's share, or about $18,560, for Anaheim's street rehabilitation project for work done in Placentia. In total, the cost for these action items is $2,148,160.00. 

Funding for this project is supported by sources outlined below: