Staff Report
City Council
Item No. 3.F
Meeting Date: January 28, 2026
From: John A. Corella, Director of Public Works
Title: Reject Bids for the construction of Highway Safety Improvement Program (HSIP) Cycle 11A, 18 Unsignalized Intersection Upgrades Project (C08754)
RECOMMENDATION:
To reject all bids received for the construction of the Highway Safety Improvements Program (HSIP) Cycle 11A, 18 Unsignalized Intersection Upgrades Project (C08754); and direct staff to readvertise for construction bids to ensure compliance with fair and competitive bidding practices.
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. 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 through a biennial call-for-projects cycle. The timing and size of each call depend on program apportionments, the current HSIP Federal Transportation Improvement Program (FTIP) capacity, and the delivery status of the existing HSIP Projects.
The California Department of Transportation (Caltrans), through its Division of Local Assistance (DLA), administers California’s share of HSIP funds allocated to local agencies.
The local HSIP prioritizes infrastructure projects shown to reduce traffic collisions using nationally recognized crash reduction factors (CRFs). These projects are ranked based on crash severity, crash potential, crash rate, and other data-supported criteria.
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).
For the 18 Unsignalized Intersection Upgrades Project (HSIP Cycle 11A), the total estimated project cost was $1,452,100.00. Of this amount, the city was awarded $1,306,890.00 (90%) in HSIP grant funding, with the remaining $145,210.00 (10%) to be provided as the city’s required local match. The awarded grant includes funding for the preliminary engineering (PE) phase and the construction (CON) phase for the project.
The proposed improvements include installation of ADA compliant ramps and pedestrian crossings, LED safety lighting, LED flashing stop signs, high visibility crosswalk striping, Rectangular Rapid Flashing Beacons (RRFBs), conventional flashing beacons, and advanced warning pavement markings and signs. A vicinity map of the proposed intersections is included as Attachment 1.
In February 2024, Caltrans assigned a Federal Project Number for the HSIP 11A 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 Kimley- Horn and Associates, 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.
In October 2025, city staff submitted a request for allocation (RFA) of HSIP construction funding to Caltrans, which included the PS&E package. Caltrans approved the RFA in November 2025, authorizing the city to proceed with the construction phase of the project.
The total construction allocation was $1,163,717.50, consisting of $960,390.00 in HSIP funds and $203,327.50 in required local matching funds. (Attachment 2).
DISCUSSION:
On Sunday, December 7, 2025, the city advertised an invitation to bid, requesting qualified contractors to perform the scope of work described in Bid No. B25-105E, which includes the plans and specifications for this project. This solicitation was made available to contractors for thirty-one (31) calendar days and advertised in the following locations:
Desert Sun - Published on December 7, 2025
PlanIt Print Works - From December 7, 2025, until January 7, 2026 City’s Website - From December 7, 2025, until January 7, 2026 On January 7, 2026, the city received four (4) bid proposals for this project. The following table ranks each bidder by the total base bid amount.
RANK CONTRACTOR AMOUNT
1 All American Building Services – Santa Clarita, CA $ 1,248,433.75 2 Elecnor Belco – Chino, CA $ 1,445,888.00
3 LC Paving – Escondido, CA $ 1,592,872.50
4 Crosstown Electrical Data, Inc. – Irwindale, CA $ 1,646,704.00 Upon review of the bids received, staff noted the following:
The apparent low bidder and the second low bidder did not acknowledge the addendum issued during the bid process, rendering their bids non-responsive. The third and fourth lowest bidders properly acknowledged the addendum; however, their bid amounts exceed the currently approved HSIP funding allocation for the project.
Proceeding with the responsive bid prices would require the city to request additional funding approval from Caltrans (the HSIP administrator), which was not anticipated at the time of bid solicitation.
Given the non-responsiveness of the lowest bids and the funding uncertainty associated with the remaining bids, staff recommend rejecting all bids. Re-advertising the project will allow the city to reassess the project scope, confirm funding availability, and ensure compliance with HSIP requirements, while maintaining a fair and competitive bidding process.
According to the California Public Contract Code (PCC) section 20166 and the project specifications section 1110 Instruction to Bidders, subsection 22.0 Rejection of Bids, staff recommend all the bids be rejected by the City Council to allow fairness and transparency of the bid solicitation process.
Staff recommends that the City Council reject all bids received for the construction of the Highway Safety Improvements Program (HSIP) Cycle 11A, 18 Unsignalized Intersection Upgrades Project (C08754); and direct staff to readvertise for construction bids to ensure compliance with fair and competitive bidding practices.
FISCAL IMPACT:
This recommended action will not have a fiscal impact.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENTS
OBJECTIVE: Cathedral City roads, gateways, public spaces, and other infrastructure are well planned, designed, constructed and maintained.
ATTACHMENTS:
1- Vicinity Map
2- Finance Letter – Construction Phase Allocation - Caltrans