CA Review TL
Meeting Date: Jan. 27, 2026
To: Mayor and City Council/President and Board of Directors From: Geoff Patnoe, City Manager/Executive Manager
Staff Contact: Brandon Miles, Associate Engineer
[email protected], 442-339-2745
Sean Diaz, Utilities Senior Engineer
[email protected], 442-200-7222
Subject: Acceptance of Bids and Awarding a Construction Contract for the Barrio Traffic Calming Project
District: 1
Rec
ommended Actions
1) Adopt a City Council resolution accepting the bids and awarding a contract to Palm Engineering Construction Company, Inc. for the Barrio Traffic Calming Project in an amount not to exceed $3,543,178.50; and
2) Adopt a Carlsbad Municipal Water District Board of Directors resolution authorizing the use of $2,457,834.50 from the Water System Rehabilitation and Replacement Program for the Barrio Traffic Calming Project.
Executive Summary
As part of an overall goal of improving traffic safety and walkability, the Village & Barrio Master Plan calls for adding traffic calming features at various intersections throughout the Barrio area.
On Nov. 18, 2025, the City Council and the Carlsbad Municipal Water District Board adopted the plans, specifications and contract documents and authorized advertising for bids for construction of the Barrio Traffic Calming Project, Capital Improvement Program Project No. 4015.
The construction work includes traffic calming features, including one traffic circle with associated water and sewer improvements. Staff recommend that the City Council accept the bids for construction of the project and award a contract to Palm Engineering Construction Company, Inc., in an amount not to exceed $3,543,178.50.
The total estimated project cost, including construction contingency, construction management and inspection, and testing costs is $4,783,292. Staff obtained $2.5 million in federal funds to help offset local transportation-related construction costs.
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Staff are also recommending that the CMWD Board authorize the use of $2,457,834.50 from the Water System Rehabilitation and Replacement Program, Capital Improvement Program Project No. 3904-D, to fund the water improvements portion of the project.
The City Council and the CMWD Board’s approvals are required for all formally bid contracts when the value exceeds $220,000 under Carlsbad Municipal Code Sections 3.28.080(C) and
3.28.080(I)(6).
Explanation & Analysis
Given the flat terrain and proximity to the
beach, Village area and Coastal Rail Trail,
the Barrio is a neighborhood ideal for
walking and biking. Consequently, the
Village & Barrio Master Plan, approved by
the City Council in 2019, recommended
traffic calming and design features that
would slow down traffic, encourage safer
driving behaviors, and make walking and
biking more inviting.
The project includes one traffic circle at
Pine Avenue and Harding Street, high-
visibility crosswalks with rapid flashing
beacons to alert drivers to pedestrians, and
four new all-way stops with high-visibility
crosswalks with rapid flashing beacons.
(The public art within the traffic circle will
be fabricated and installed though separate
contracts.)
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Federal grant
In 2021, the city worked with U.S. Rep. Mike Levin to secure up to $5 million in federal funding to help offset construction costs of the Barrio Traffic Calming and Barrio Street Lighting projects. Of this amount, $2.5 million has been allocated to the construction of the Barrio Traffic Calming Project and $2.5 million to the construction of the Barrio Street Lighting Project
.1
Bidding process
To ensure a fair and competitive selection for the project, the city followed its formal bidding procedures to solicit construction bids.
• The City Council and the CMWD Board adopted the plans, specifications and contract documents and authorized advertising the project for construction bids on Nov. 18, 2025, with the adoption of Resolution Nos. 2025-247 and 1787, respectively. The total engineer’s estimate for the project was $4,328,723.
• The project was then advertised using the city’s formal bidding procedures. • Staff
received three bids for construction on Dec. 22, 2025.
• Staff reviewed the bids and found that Palm Engineering Construction Company, Inc. was the lowest responsible and responsive bidder, with a bid in the amount of $3,543,178.50.
• Palm Engineering Construction Company, Inc. was found to be responsive because its bid meets the requirements of the bidding documents and responsible because it submitted a list of similar projects to show its capability and qualification to perform the specified work.
Fiscal Analysis
The contract is funded by $1,544,553 in Transportation funds, $292,791 from the Sewer Replacement fund, and $1,705,834.50 from the Water Replacement fund.
The project’s budget includes $2.5 million of federal grant funding for transportation improvements. Other funding sources include the gas tax, TransNet,2 General Capital Construction and Sewer Replacement Funds for the transportation and sewer improvements portion.
Of the total contract amount, $1,837,344 is allocated for transportation and sewer improvements. The total project cost to be funded by Capital Improvement Program Project No. 4015 is $2,646,344, including construction contingency, construction management and inspection, and testing costs. Sufficient funding is available in the CIP Project No. 4015 budget.
Of the total contract amount, $1,705,834.50 is allocated for water improvements, which will be funded by the Water System Rehabilitation and Replacement Program, CIP Project No. 3904-D.
The total amount to be funded by Project No. 3904-D is $2,457,834.50, including construction contingency, construction management and inspection, and testing costs. Sufficient funding is available in the Project No. 3904-D budget. The available funds and estimated costs for the project are summarized in the following tables:
1 The California Department of Transportation approved the use of the federal funds, as required by the terms of the funding.
2 TransNet is a countywide sales tax collected to fund regional transportation projects.
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6
Carlsbad Municipal Code Sections 3.28.040(C)(5) authorizes the City Manager/Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which for this project is $710,000.
Barrio Traffic Calming
Capital Improvement Program Project No. 4015
Total appropriation to date $4,759,000
Total expenditures and encumbrances to date -$1,219,080 Total available balance $3,539,920
Project costs (transportation and sewer improvements)
Construction contract (Palm Engineering Construction Company, Inc.) -$1,837,344 Construction contingency -$368,000
Construction management, inspection, material testing and support services (estimated) -$441,000
Total estimated construction costs (transportation and sewer improvements) -$2,646,344
Remaining balance $893,579
Additional appropriation needed $0
Water System Rehabilitation and Replacement Program
Capital Improvement Program Project No. 3904
Total appropriation to date $22,258,366
Total expenditures and encumbrances to date -$8,849,199 Total available balance $13,409,167
Water Main Replacement for the Barrio Traffic Calming
Capital Improvement Program Project No. 3904-D
Construction contract (Palm Engineering Construction Company, Inc.) -$1,705,834.50 Construction contingency -$342,000
Construction management, inspection, testing & support services (estimated)
-$410,000
Total estimated construction costs (water improvements) -$2,457,834.50 Remaining balance $10,951,332.50
Additional appropriation needed $0
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Next Steps
Once the City Council and the CMWD Board accept the bids and award the construction contract to Palm Engineering Construction Company, Inc. staff will issue a purchase order, schedule a pre-construction meeting with the contractor and issue a notice to proceed for construction of the project.
Construction is expected to commence in spring 2026 with a duration of about 12 months and an estimated completion date of spring 2027.
Environmental Evaluation
The proposed action qualified for an exemption pursuant to California Environmental Quality Act, or CEQA, Guidelines Section 15301(c), Existing Facilities, because CEQA and its implementing regulations (the CEQA Guidelines), adopted by the Secretary of the California Natural Resources Agency, list classes of projects that have been determined not to have a significant effect on the environment, and as a result are exempt from further environmental review under CEQA.
CEQA Guidelines Section 15301 is a Class 1 exemption for existing facilities, and includes (c) Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety, and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes). The improvements to these intersections involve negligible expansion of the current uses beyond existing and do not result in additional automobile lanes. In addition, the water and sewer infrastructure are existing facilities that will not be expanding capacity.
During the development of this project, a number of studies were undertaken to assess the impact and design the projects. The feasibility and stop sign analysis studies were presented to the Traffic & Mobility Commission on Sept. 7, 2021. The following analyses were undertaken:
Feasibility Analysis, including Fastest Path Analysis and Level of Traffic Stress (LTS) Analysis; Stop Sign Removal Analysis; Photometric Analysis; Hydrology and Hydraulics Report; and Storm Water Standards Questionnaire (E-34). Based on these analyses and traffic studies, it can be determined that there will be no increase in vehicular use of the roadway. Additionally, the work will occur within the existing public right of way and will not change the overall facility use at any of the intersections impacted. The project will help encourage walking and biking to key designations in the Village and Barrio neighborhoods, having a positive impact to Vehicle Miles Travelled and reducing greenhouse gas emissions. No exception to the exemption as set forth in CEQA Guidelines section 15300.2 applies.
This project is also subject to the National Environmental Policy Act, or NEPA, because federal funds are being used for the project. Staff worked with Caltrans to obtain this federal environmental clearance for the project. Additional studies were required and have been completed and approved by Caltrans. Caltrans concluded the NEPA clearance process and provided a categorical exclusion determination for the project on May 5, 2023. Additionally, the categorical exclusion determination was revalidated on March 27, 2024. With the appropriate environmental clearances in place, all the city’s procedural requirements and relevant aspects of CEQA and NEPA have been satisfied.
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Exhibits
1. City Council resolution
2. CMWD Board resolution
3. Location map
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6 Exhibit 1
RESOLUTION NO. 2026-022 .
A R
ESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING THE BIDS AND AWARDING A CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC. FOR THE BARRIO TRAFFIC CALMING PROJECT IN AN AMOUNT NOT TO EXCEED $3,543,178.50 WH
EREAS, the City Council of the City of Carlsbad, California has determined it necessary, desirable and in the public interest to construct the Barrio Traffic Calming Project, Capital Improvement Program, or CIP, Project No. 4015, or Project; and
WHEREAS, in keeping with the city’s General Plan Mobility Element, Growth Management Plan and Village and Barrio Master Plan , the Project will construct traffic calming at various locations with enhanced crosswalks and one traffic circle in the Barrio neighborhood to improve traffic safety and walkability; and
WHEREAS, on Nov. 18, 2025, the City Council adopted Resolution No. 2025 -247, adopting the plans, specifications and contract documents and authorizing advertisement for construction bids for the Project; and
WHEREAS, on Dec. 22, 2025, staff received three bids for construction of the Project; and WHEREAS, Palm Engineering Construction Company, Inc. submitted the lowest responsive bid in an amount not to exceed $3,543,178.50; and
WHEREAS, staff reviewed all bids and determined that Palm Engineering Construction Company, Inc. is a responsible bidder and submitted a responsive bid in compliance with all bid requirements; and
WHEREAS, the Project appropriation includes $ 2.5 million of federal grant funding and was authorized to proceed with construction and bidding by the California Department of Transportation, or Caltrans, on Aug. 19, 2025; and
WHEREAS, the P roject will construct sewer improvements in an amount of $292,791 which amount is available and funded by the Sewer Replacement fund; and WHEREAS, Carlsbad Municipal Code Sections 3.28.040(C)(5) authorize s the City Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which for the transportation and sewer improvements portion of this project is $368,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
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1. That the above recitations are true and correct.
2. That the City Council has previously found that the proposed action qualified for an exemption pursuant to the California Environmental Quality Act, or CEQA, Guidelines section 15301(c), Existing Facilities, because CEQA and its implementing regulations (the CEQA Guidelines), adopted by the Secretary of the California Natural Resources Agency, list classes of projects that have been determined not to have a significant effect on the environment, and as a result are exempt from further environmental review under CEQA. CEQA Guidelines Section 15301 is a Class 1 exemption for existing facilities, and includes (c) Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety, and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle -share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes). The improvements to these intersections involve negligible expansion of the current uses beyond existing and do not result in additional automobile lanes. In addition, the water and se wer infrastructure are existing facilities that will not be expanding capacity. During the development of this project, a number of studies were undertaken to assess the impact and design the projects. The feasibility and stop sign analysis studies were presented to the Traffic & Mobility Commission on Sept. 7, 2021. The following analyses were undertaken: Feasibility Analysis, including Fastest Path Analysis and Level of Traffic Stress (LTS) Analysis; Stop Sign Removal Analysis; Photometric Analysis; Hydro logy and Hydraulics Report; and Storm Water Standards Questionnaire (E -34). Based on these analyses and traffic studies, it can be determined that there will be no increase in vehicular use of the roadway. Additionally, the work will occur within the existing public right of way and will not change the overall facility use at any of the intersections impacted. The project will help encourage walking and biking to key designations in the Village and Barrio neighborhoods, having a positive impact to Vehicle Miles Travelled and reducing greenhouse gas emissions. No exception to the exemption as set forth in CEQA Guidelines section 15300.2 applies.
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6
3. That the City Council has previously found that this project is also subject to the National Environmental Policy Act, or NEPA, because federal funds are being used for the project.
Staff worked with Caltrans to obtain this federal environmental clearance for the project. Additional studies were required and have been completed and approved by Caltrans. Caltrans concluded the NEPA clearance process and provided a categorical exclusion determination for the project on May 5, 2023. Additionally, the categoric al exclusion determination was revalidated on March 27, 2024. With the appropriate environmental clearances in place, all the city’s procedural requirements and relevant aspects of CEQA and NEPA have been satisfied.
4. That the lowest responsive bid in the amount of $ 3,543,178.50, submitted b y Palm Engineering Construction Company, Inc. , is accepted and the Mayor is hereby authorized to execute the contract for the Barrio Traffic Calming Project, CIP Project No.
4015.
5. That the sewer improvement s constructed by the Project will be funded by the Sewer Replacement fund.
6. That the City Manager or designee is authorized to approve construction change orders up to $368,000 for the transportation and sewer improvements portion of the Project.
7. That the City Manager or designee is authorized to sign all other documents necessary for regulatory compliance, to extend funding opportunities, or to otherwise implement and finalize the Project, all of which are subject to review and approval as to form by the City Attorney’s office.
8. That the award of this contract is contingent upon Palm Engineering Construction Company, Inc. executing the required contract a nd submitting the required bonds and insurance policies, as described in the contract, within 20 calendar days after adoption of this Resolution. The City Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies.
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District and the City Council of the City of Carlsbad on the 27th day of January, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, Mayor
_______
________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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Exhibit 2
RESOLUTION NO. 1794 .
A
RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE USE OF $ 2,457,834.50 FROM THE WATER SYSTEM
REHABILITATION AND REPLACEMENT PROGRAM FOR THE BARRIO TRAFFIC
CALMING PROJECT
W HEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors of the City of Carlsbad, California has determined that it is necessary, desirable and in the public interest to replace water distribution pipelines as part of the Barrio Traffic Calming Project, Capital Improvement Program, or CIP, Project No. 4015, or Project; and
WHEREAS, on Nov. 18, 2025, the CMWD Board adopted Resolution No. 1787, adopting the plans, specifications and contract documents and authorizing advertisement for construction bids for the Project; and
WHEREAS, on Dec. 22, 2025, staff received three bids for construction of the Project; and WHEREAS, Palm Engineering Construction Company, Inc. submitted the lowest responsive bid in an amount not to exceed $3,543,178.50; and
WHEREAS, staff reviewed the bids and determined that Palm Engineering Construction Company, Inc. is a responsible bidder and submitted a responsive bid in compliance with all bid requirements; and
WHEREAS, the City Council authorized and directed the Mayor to award a contract to Palm Engineering Construction Company, Inc.; and
WHEREAS, the Project will construct water improvements in an amount of $1,705,834.50; and WHEREAS, Carlsbad Municipal Code Sections 3.28.040(C)(5) authorizes the Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time of Project award, which for the water portion of the Project is $342,000.00; and WHEREAS, the total estimated cost of the water improvements is $2, 457,834.50 and includes construction management and inspection, testing, and support services in the amount of $410,000; and
WHEREAS, sufficient funding is available in the Water System Rehabilitation and Replacement Program, CIP Project No. 3904-D, for construction of the water improvements.
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6
NOW, THEREFORE, BE IT RESOLVED by the CMWD Board of Directors of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the CMWD Board has previously found that the proposed action qualified for an exemption pursuant to the California Environmental Quality Act, or CEQA, Guidelines section 15301(c), Existing Facilities, because CEQA and its implementing regulations ("CEQA Guidelines"), ado pted by the Secretary of the California Natural Resources Agency, list classes of projects that have been determined not to have a significant effect on the environment, and as a result are exempt from further environmental review under CEQA. CEQA Guidelines Section 15301 is a Class 1 exemption for existing facilities, and includes (c) Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety, and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle -share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes). The improvements to these intersections involve negligible expansion of the current uses beyond existing and do not result in additional automobile lanes. In addition, the water and sewer infrastructure are e xisting facilities that will not be expanding capacity. During the development of this project, a number of studies were undertaken to assess the impact and design the projects. The feasibility and stop sign analysis studies were presented to the Traffic & Mobility Commission on Sept. 7, 2021. The following analyses were undertaken: Feasibility Analysis, including Fastest Path Analysis and Level of Traffic Stress (LTS) Analysis; Stop Sign Removal Analysis; Photometric Analysis; Hydrology and Hydraulics Repo rt; and Storm Water Standards Questionnaire (E -34). Based on these analyses and traffic studies, it can be determined that there will be no increase in vehicular use of the roadway. Additionally, the work will occur within the existing public right of way and will not change the overall facility use at any of the intersections impacted. The project will help encourage walking and biking to key designations in the Village and Barrio neighborhoods, having a positive Jan. 27, 2026
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6
impact to Vehicle Miles Travelled and reducing greenhouse gas emissions. No exception to the exemption as set forth in CEQA Guidelines section 15300.2 applies.
3. That the CMWD Board has previously found that this project is also subject to the National Environmental Policy Act, or NEPA, because federal funds are being used for the project. Staff worked with Caltrans to obtain this federal environmental clearance for the project. Additional studies were required and have been completed and approved by Caltrans. Caltrans concluded the NEPA clearance process and provided a categorical exclusion determination for the project on May 5, 2023. Additionally, the categorical exclusion determination was revalidated on March 27, 2024. With the appropriate environmental clearances in place, all the city’s procedural requirements and relevant aspects of CEQA and NEPA have been satisfied.
4. That the water improvements constructed by Palm Engineering Construction Company, Inc. for the Barrio Traffic C alming Project , CIP Project No. 4015 in an amount of $1,705,834.50 will be funded by the Water System Rehabilitation and Replacement Program, CIP Project No. 3904-D.
5. That the Executive Manager or designee is authorized to approve construction change orders up to $342,000.00 for the water improvements constructed by the Project.
6. That the Executive Manager or designee is authorized to sign all other documents necessary for regulatory compliance, to extend funding opportunities, or to otherwise implement and finalize the Project, all of which are subject to review and approval as to form by the Office of the General Counsel.
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipa l Water District and the City Council of the City of Carlsbad on the 27th day of January, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
_______
_______________________________
KEITH BLACKBURN, President
_______
________________________________
SHERRY FREISINGER, Secretary
(SEAL)
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6
Exhibit 3
Jan. 27, 2026
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Docusign Envelope ID: 45EBDDCD-CC9E-43E3-9E37-6C852805A8C6 Adriana Trujillo
All Receive - Agenda Item #
For the Information of the:
CITY COUNCIL
Date 11)-(4.2XA CC L -
CM jjACM ± DCM (3) L-
From: Mary Jones <[email protected] >
Sent: Friday, January 23, 2026 12:22 PM
To: City Clerk
Subject: Barrio
Please consider a stop sign vs a traffic circle at Harding and pine. Save the funds for helping the needy people in our community M Jones
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