Staff Report
City Council
Item No. 6.C
Meeting Date: October 6, 2025
From: John A. Corella, Director of Public Works
Title: Award Contracts for HSIP Cycle 11C: Citywide Traffic Signal Hardware Upgrades (C08756)
RECOMMENDATION:
To:
Award a construction contract to Econolite Systems, Inc., in the amount of $564,709.40 for the Highway Safety Improvement Program (HSIP) Cycle 11C – Citywide Traffic Signal Hardware Upgrades Project (C08756); and, Award a professional services agreement to RT Engineering & Associates, Inc., in the amount of $134,229.04 for professional construction engineering support services for this project; and,
Approve a twenty percent (20%) contingency in the amount of $139,861.56 for unforeseeable construction costs and project changes; thereby bringing the total construction budget for this project to $838,800.00; and Authorize the City Manager to execute both contract documents, and, Authorize the City Engineer to request bonds and insurance for the project and issue the Notice to Proceed.
BACKGROUND:
The HSIP is a core Federal-aid program with the purpose of achieving significant reduction in traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal land. The HSIP is one of the programs in the Federal Surface Transportation Act, established in August 2005.
The California local HSIP program funds local highway safety improvement projects on a biennial call-for-projects cycle. The timing and size of the call is determined by program apportionments, current HSIP Federal Transportation Improvement Program (FTIP) capacity and delivery of the existing HSIP Projects.
The Division of Local Assistance (DLA) manages California’s local agency share of HSIP funds. California’s Local HSIP prioritizes infrastructure projects with nationally recognized crash reduction factors (CRF). Local HSIP projects are ranked on the basis of crash severity, crash potential, crash rate, or other data-supported means.
On June 25, 2021, the city completed the final Local Roadway Safety Plan (LRSP) which provides a framework for identifying, analyzing, and prioritizing roadway safety improvements on local roads. A local agency must have an LRSP or an equivalent safety plan to apply for HSIP grants.
In August 2022, the City Council approved a task order with the city’s on-call traffic engineering consultant, STC Traffic Inc., to prepare four (4) grant applications for the HSIP Cycle 11 Call-for-Projects. In September 2022, the applications were completed and submitted to the California Department of Transportation (Caltrans).
The HSIP Cycle 11 grant follows a 90/10 reimbursement structure, whereby ninety percent (90%) of eligible project costs are funded by the HSIP, and the remaining ten percent (10%) is required as a local match. For the HSIP 11C – Citywide Traffic Signal Hardware Upgrades Project, the total estimated project cost is $1,119,700. Of this amount, the city was awarded $1,007,730 (90%) in HSIP grant funding, with the remaining $111,970 (10%) to be provided as the city’s required local match. The grant includes funding for both the preliminary engineering (PE) and construction (CON) phases of the project.
The proposed improvements included the installation of LED safety lighting, internally illuminated street name signs (IISNS), and traffic signal backplates with retroreflective borders at forty-nine (49) signalized intersections throughout the city. A vicinity map of the proposed intersections is included as Attachment 1.
In February 2024, Caltrans assigned a Federal Project Number for the HSIP 11C Project and approved the Authorization/Agreement Summary (E-76) for funding the preliminary engineering (PE) phase of the project.
In June 2024, the City Council awarded a professional services agreement to STC Traffic, Inc. (STC), to prepare the plans, specifications, right-of-way, and environmental documents to complete the PE phase of the project.
In December 2024, STC and city staff identified a significant increase in the construction costs for installing internally illuminated street name signs (IISNS), compared to the estimated costs included in the 2022 HSIP grant application. In response, city staff submitted a cost change request to Caltrans for consideration. Following its review, Caltrans informed the city that IISNS installation is not considered a roadway safety countermeasure under the HSIP guidelines. As a result, the cost change request was denied, and Caltrans removed IISNS installation from the project scope.
In June 2025, the preliminary engineering phase of the project, including the preparation of plans, specifications and estimates (PS&E) was completed. The Request for Funding Allocation (RFA) for construction funding was submitted to Caltrans on June 18, 2025, and approved on August 7, 2025.
DISCUSSION:
Construction Bid Process
On August 14, 2025, the city advertised the invitation to bid, requesting qualified contractors to perform the scope of work described in Bid No. B24-88E, which includes the PS&E for this project.
The bid solicitation was made available to contractors for twenty-one (21) calendar days and advertised in the following locations:
Desert Sun – published on August 14, 2025, and August 26, 2025 PlanIt Print Works – from August 14, 2025, until September 4, 2025 City’s Website – from August 14, 2025, until September 4, 2025 On September 4, 2025, the city received three (3) bid proposals for this project. The following table ranks each qualified bidder by the total base bid amount.
RANK CONTRACTOR AMOUNT
1 Econolite Systems, Inc. $564,709.40
2 California Professional Engineering, Inc. $833,758.00 3 Calpromax Engineering, Inc. $878,200.00
The bid tabulation prepared by the Engineering Division is attached to this report for reference.
Based on the bids received, the lowest responsive and responsible bidder, which yields the lowest contract price, is Econolite Systems, Inc. from Jurupa Valley, CA.
Request for Qualifications/Proposals for Construction Engineering Support Services The HSIP Cycle 11 grant application included funds for Construction Engineering (CE) to ensure the project comply with all State-funded requirements during construction. The CE support services tasks include construction management, labor compliance monitoring and enforcement, inspection, and material testing.
Staff issued proposals for the Request for Qualifications/ Proposals (RFQ/P) for Construction Engineering Support Services for the HSIP 11C Project. The RFQ/P was advertised in the Desert Sun and the city’s website on August 17, 2025. Consultant companies were given until September 8, 2025, twenty-two (22) days, to submit their proposals.
Proposals for CE support services for the HSIP 11C Project were received from the following five (5) consultant companies:
Fountainhead Consulting Corporation Fontana, CA
NV5, Inc. Palm Desert, CA
RT Engineering & Associates, Inc. San Bernardino, CA
TKE Engineering, Inc. Palm Desert, CA
Z&K Consultants, Inc. Riverside, CA
Proposals were evaluated following the selection process required for federally and state funded projects.
The proposals were reviewed by a panel consisting of three staff members from the Engineering Division and a staff member from the Building Department. The panel cited all companies provided proposals that were responsive, qualified, and knowledgeable about the requirements for the project and the requirements for working in Cathedral City. The rating summary of the panel’s review is attached to this report.
The proposal provided by RT Engineering & Associates, Inc. (RTEA) received the highest ratings from the panel. RTEA submitted a work proposal providing assurance that, if selected, the performance of CE support tasks would be completed efficiently.
Following the evaluation and scoring of the consultant companies, the cost proposal submitted by RTEA was opened and reviewed in accordance with State requirements to complete the RFQ/P evaluation process. The initial cost proposal from RTEA exceeded the city’s estimated cost as submitted in the 2022 HSIP Cycle 11 application. To address this, the City Engineer entered into negotiations with the CEO/President of RTEA. As a result, RTEA submitted a revised cost proposal that aligns with current market rates, the city’s expectations for the scope of services, and the original cost estimates included in the 2022 HSIP Cycle 11 application.
City staff recommend the City Council to:
Award a construction contract to Econolite Systems, Inc., in the amount of $564,709.40 for the HSIP Cycle 11C – Citywide Traffic Signal Hardware Upgrades Project (C08756); and,
Award a professional services agreement to RTEA, in the amount of $134,229.04 for professional construction engineering support services for this project; and, Approve a twenty percent (20%) contingency in the amount of $139,861.56 for unforeseeable construction costs and project changes; thereby bringing the total construction budget for this project to $838,800.00; and Authorize the City Manager to execute both contract documents; and, Authorize the City Engineer to request bonds and insurance for the project and issue the Notice to Proceed.
All work will be performed within the existing city right-of-way. Construction is expected to start in December 2025 and is estimated to be completed by March 2026.
ENVIRONMENTAL ANALYSIS:
These projects are categorically excluded under the National Environmental Policy Act (NEPA) process for federally funded projects per 24CFR58.35 (a)(1) and categorically exempt under the California Environmental Quality Act (CEQA), Section 15301 for existing facilities.
FISCAL IMPACT:
HSIP Grant Balance
The HSIP Cycle 11C grant includes funds for PE, CE and CON, in the amount of $1,007,730.
The PE phase has been completed, leaving an HSIP grant balance in the amount of $931,230 for the CE and CON phases of the project as shown below.
Construction $ 809,730
Construction Engineering $ 121,500
HSIP Grant Balance $931,230
FY 2025-2026 CIP Biennial Budget
The project is listed in the FY 2025-2026 Capital Improvement Program (CIP) with an estimated total programmed budget in the amount of $1,253,480 as shown below:
HSIP Grant Balance $ 931,230
Measure A (Local Match)
Traffic Safety Fund (Local Match)
Maintenance of Effort (MOE, Local Match)
$ 209,500
$ 41,500
$ 71,250
Programmed CIP Budget $1,253,480
Construction Budget
The construction bid amount submitted by Econolite Systems, Inc. is $564,709.40. The CE services, to be provided by RTEA, are estimated at $134,229.04. This brings the total construction cost to $698,938.44, as shown below:
Construction Bid Amount (Econolite Systems, Inc.) $564,709.40 Construction Engineering Cost (RTEA) $134,229.04
Total Construction Cost $698,938.44
To account for potential unforeseen conditions or project changes, city staff are recommending a 20% contingency applied to the total construction cost, in the amount of $139,861.56. This results in a total construction budget of $838,800.00, as shown below:
Total Construction Cost $698,938.44
20% Contingency $139,861.56
Construction Budget $838,800.00
City staff propose using HSIP grant funds in the amount of $754,920.00 to cover ninety percent (90%) of the project’s construction costs. The remaining ten percent (10%), in the amount of $83,880.00, is proposed to be funded with programmed Measure A funds, to fulfill the city’s local match requirement. The following table summarizes the budget allocations for the construction of the project.
FISCAL
YEAR
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME
or
ONGOING
2025-2026 HSIP Funds
(Grant)
331-100-150-
156-8800-8802 C08756 $754,920.00 ONE TIME
2025-2026 Measure A
(Local Match)
243-100-150-
156-8800-8802 C08756 $83,880.00 ONE TIME
2025-2026 Total $838,800.00
FIVE-YEAR STRATEGIC PLAN:
Goal-E: Safety
Objective: Continue to explore and utilize technology to promote public safety.
ATTACHMENTS:
1. HSIP 11C – Project Vicinity Map
2. HSIP 11C – Bid Tabulation
3. HSIP 11C – Econolite Systems, Inc. Contract
4. HSIP 11C – CE Ranking Summary
5. HSIP 11C – RTEA Work Proposal
6. HSIP 11C – RTEA Revised Cost Proposal
7. HSIP 11C – RTEA Contract