Rio Communities approves HDR 2026 rates and Don Diego Road oversight with NMDOT grant support

The Rio Communities City Council on Feb. 23 approved HDR Engineering's proposed 2026 on-call hourly rates and authorized HDR to provide construction observation and related services for the Don Diego Road reconstruction project.

City staff and HDR representatives said the annual rate update is routine. "Typically, it's a 4% increase," HDR representative Chris Sanchez told the council, adding that the adjustment applies to future work and does not change already-signed contracts. HDR also noted a change for the project principal rate from about $325 per hour to $345 per hour.

Council and staff clarified that the Don Diego oversight work will be billed under the new 2026 rates while prior purchase orders remain at earlier rates. Staff described the contract as a time-and-materials proposal with a not-to-exceed expectation for budget planning, and said most construction oversight ranges between 10% and 15% of construction costs. The project will be funded primarily from a New Mexico Department of Transportation grant (transportation project fund) with the city responsible for an approximate 5% local match; staff said those match costs have been budgeted.

Councilor Marquez moved to approve the item, the motion was seconded, and the measure passed by roll call (four yes votes). Mayor Ramall and staff emphasized that procurement and accounts-payable procedures for invoicing were discussed with HDR and that any additional invoice processing beyond normal oversight would be handled under a set number of hours specified in the contract.

The contract award authorizes HDR to proceed with construction observation and oversight for Don Diego Road under the terms described; the council approved the on-call hourly rate amendment and the authorization for HDR to perform the Don Diego scope.