Staff Report
City Council
Item No. 5.A
Meeting Date: November 12, 2025
From: John A. Corella, Director of Public Works
Title: Award a Construction Contract to Onyx Paving Company, Inc. for HSIP Cycle 11D: Pedestrian Crossing Upgrades Project (C08757) RECOMMENDATION:
To:
Award a construction contract to Onyx Paving Company, Inc., in the amount of $306,000 for the Highway Safety Improvement Program (HSIP) Cycle 11D – Pedestrian Crossing Upgrades Project (C08757);
Approve a ten percent (10%) contingency in the amount of $30,600 for unforeseeable construction costs and project changes; thereby bringing the total construction budget for this project to $336,600;
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 Highway Safety Improvement Program (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. HSIP is one of the programs in the Federal Surface Transportation Act, established in August 2005.
The California local HSIP 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 based on 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. (STC), 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 the local match. For the HSIP 11D - Pedestrian Crossing Upgrades Project, the total estimated project cost was $277,600. Of this amount, the city was awarded $249,840 (90%) in HSIP grant funding, with the remaining $27,760 (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 for the HSIP 11D project include the installation of curb bulb- outs, ADA curb ramps, flashing stop signs, school zone flashing beacons, and LED safety lighting at the intersection of 30th Avenue and San Eljay Avenue. A vicinity map of the project location is provided as Attachment 1.
In February 2024, Caltrans assigned a Federal Project Number for the HSIP 11D Project and approved the Authorization/Agreement Summary (E-76) for funding the preliminary engineering (PE) phase of the project.
In October 2024, the City Council awarded a professional services agreement to STC Traffic, Inc., to prepare the plans, specifications, right-of-way, and environmental documents to complete the PE phase of the project.
In August 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 July 24, 2025, and approved on August 1, 2025.
DISCUSSION:
On August 17, 2025, the city advertised the invitation to bid, requesting qualified contractors to perform the scope of work described in Bid No. B25-97E, which includes the PS&E for this project.
The bid solicitation was made available to contractors for twenty-three (23) calendar days and advertised in the following locations:
Desert Sun – published on August 17, 2025 and August 25, 2025 PlanIt Print Works – from August 17, 2025 through September 9, 2025 City’s Website – from August 17, 2025 through September 9, 2025 On September 9, 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 Onyx Paving Company, Inc. $306,000.00
2 Granite Construction Company $336,000.00
3 LC Paving and Sealing, Inc. $352,716.50
The bid tabulation prepared by the Engineering Division is attached to this report for reference as Attachment 2.
Based on the bids received, the lowest responsive and responsible bidder is Onyx Paving Company, Inc. (Onyx) from Yorba Linda, CA, who provided the lowest contract price.
The construction bid submitted by Onyx exceeded the cost estimate originally allocated through the HSIP Cycle 11 program. Following the bid opening, City staff consulted with the Caltrans District Local Assistance Office to explore the possibility of securing additional HSIP funds. Staff were informed that, under current program guidelines, the project is not eligible for supplemental HSIP funds. As a result, additional local funding will be necessary to proceed with the construction phase of the project.
City staff recommend the City Council:
Award a construction contract to Onyx Paving Company, Inc., in the amount of $306,000 for the HSIP Cycle 11D – Pedestrian Crossing Upgrades Project (C08757), Approve a ten percent (10%) contingency in the amount of $30,600 for unforeseeable construction costs and project changes; thereby bringing the total construction budget for this project to $336,600,
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 February 2026.
ENVIRONMENTAL ANALYSIS:
This project is 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 11D grant includes funding for the preliminary engineering (PE) and construction (CON) phases of the project in the amount of $249,840. The PE phase has been completed, leaving a remaining HSIP grant balance of $207,090 for the CON phase, as detailed below.
Construction $ 180,090
Construction Engineering $ 27,000
HSIP Grant Balance $ 207,090
FY 2025-2026 CIP Biennial Budget
The project is included in the FY 2025-2026 Capital Improvement Program (CIP) with an estimated total programmed budget in the amount of $260,115, funded as follows.
HSIP Grant Balance $ 207,090
Traffic Safety Fund (Local Match) $ 53,025
Total Programmed CIP Budget $ 260,115
Construction Budget
The construction budget is based on the construction bid cost submitted by Onyx and includes a 10% contingency to account for potential unforeseen conditions or project changes. The total construction budget, in the amount of $336,600, is summarized below.
Construction Bid Cost (Onyx) $306,000
10% Contingency $ 30,600
Construction Budget $336,600
Additional Funding Required
The total construction budget of $336,600 exceeds the currently programmed CIP budget of $260,115 by $76,485, as follows:
Construction Budget $ 336,600
Programmed CIP Budget $ 260,115
Additional Funding Required $ 76,485
To fund the construction phase of the HSIP Cycle 11D project, City staff recommend allocating the amount of $76,485 from available Traffic Safety Funds. This would increase the total Traffic Safety Fund contribution to $129,510, as summarized below.
Traffic Safety Fund (Local Match) $ 53,025
Additional Traffic Safety Funds Required $ 76,485
Total Traffic Safety Fund Contribution $ 129,510
City staff propose utilizing $207,090 in remaining HSIP grant funds to cover eligible construction costs. The remaining $129,510 will be funded through the Traffic Safety Fund to fulfill the required local match under the HSIP program and to cover additional construction costs. 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 C08757 $207,090.00 ONE TIME
2025-2026 Traffic Safety Funds
(Local Match)
233-100-150-
156-8800-8802 C08757 $ 53,025.00 ONE TIME
2025-2026 Traffic Safety Funds
(Additional)
233-100-150-
156-8800-8802 C08757 $ 76,485.00 ONE TIME
2025-2026 Total $336,600.00
ATTACHMENTS:
1. HSIP 11D – Project Vicinity Map
2. HSIP 11D – Bid Tabulation
3. HSIP 11D – Onyx Paving Company, Inc. Contract