Staff Report
City Council
Item No. 5.A
Meeting Date: January 28, 2026
From: John A. Corella, Director of Public Works
Title: Traffic Signal Head Backplates Change Order Request for the HSIP Cycle 11C - Citywide Traffic Signal Hardware Upgrades Project (C08756)
RECOMMENDATION:
To approve Change Order No. 1 to the contract with Econolite Systems, Inc., in the amount of $107,129.84; for the construction of HSIP 11C, Citywide Traffic Signal Hardware Upgrades Project (C08756); and, authorize a budget adjustment to the construction budget for the project, in the amount of $47,875.11; and, authorize the City Engineer to execute the change order and issue the notice to proceed for this work.
BACKGROUND:
The Highway Safety Improvement Program (HSIP) is a federal-aid program intended to achieve significant reductions in traffic fatalities and serious injuries on all public roads, including non-state-owned public roads and roads on tribal land.
On June 25, 2021, the city completed its Local Roadway Safety Plan (LRSP) which provides a framework for identifying, analyzing, and prioritizing roadway safety improvements on local roads. Adoption of an LRSP or equivalent safety plan is required to apply for HSIP Funding.
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.
In June 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.
The preliminary engineering phase of the project, including the preparation of plans, specifications and estimates (PS&E) was completed In June 2025. The Request for Funding Allocation (RFA) for construction funding was submitted to Caltrans on June 18, 2025, and approved on August 7, 2025. The total construction allocation was $1,034,700, consisting of construction engineering (CE) services and construction (CON), as detailed below:
Description Total Cost HSIP Funds
(90%)
Local Match
(10%)
CE $ 135,000 $ 121,500 $ 13,500
CON $ 899,700 $ 809,730 $ 89,970
TOTAL CON $1,034,700 $ 931,230 $103,470
In October 2025, the City Council awarded a construction contract to Econolite Systems, Inc. (Contractor), in the amount of $564,709.40. Subsequently, the City Council approved a professional services agreement with RT Engineering & Associates, Inc. (CE Consultant) for construction engineering, in the amount of $134,229.04. To account for potential unforeseen conditions or project changes, the City Council approved a 20% contingency, in the amount of $139,861.56, thereby bringing the total construction budget to $838,800.00.
DISCUSSION:
The bid proposal submitted by Econolite Systems, Inc., included upgrading existing traffic signal backplates with yellow retroreflective borders to meet the Caltrans standard on 778 traffic signal heads citywide.
Several traffic signals have been in operation for more than 40 years and were originally installed by Riverside County and/or Caltrans prior to the City’s incorporation. As a result, portions of the existing traffic signal system include obsolete signal heads with components that are no longer supported by manufacturers.
Prior to the start of construction, the contractor, CE consultant, and city staff conducted a field evaluation to develop an inventory of existing traffic signal heads at all 49 signalized intersections, verifying both the type and manufacturer.
Based on the completed inventory, of the 778 traffic signal heads identified in the bid proposal, the following was determined:
• 39 traffic signal heads have already been upgraded
• 142 traffic signal heads are obsolete and need replacement • 597 traffic signal heads are compatible for upgrade
Change Order
Following the field evaluation, city staff and the CE consultant evaluated available alternatives and determined that replacing the obsolete traffic signal heads with new units will reduce maintenance and will bring these traffic signals into conformance with current standards. Implementation of this alternative solution will require a change order to the project scope of work and materials.
The proposed change order to the scope of work and materials, attached to this report, results in a net construction cost increase of $107,129.84. The change order includes the furnishing and installation of 142 new traffic signal heads to replace obsolete units at a cost of $209,358.64, partially offset by a cost reduction of $102,228.80 associated with the removal of traffic signal heads from the bid that have already been upgraded or are no longer required.
City staff recommends that the City Council approve Change Order No. 1 to the contract with Econolite Systems, Inc., in the amount of $107,129.84; for the construction of HSIP 11C, Citywide Traffic Signal Hardware Upgrades Project (C08756); and, authorize a budget adjustment to the construction budget for the project, in the amount of $47,875.11; and, authorize the City Engineer to execute the Change Order and issue the Notice to Proceed for this work.
FISCAL IMPACT:
Authorized Construction Budget
The City Council previously authorized a construction budget of $838,800, which includes the construction bid submitted by Econolite Systems, Inc. in the amount of $564,709.40, CE services provided by RT Engineering & Associates, Inc. of $134,229.04, and a 20% contingency of $139,861.56 to account for potential unforeseen conditions or project changes. The breakdown is summarized below:
Construction Bid Amount (Econolite) $564,709.40
Construction Engineering Cost (RTEA) $134,229.04
Total Construction Cost $698,938.44
20% Contingency $139,861.56
Authorized Construction Budget $838,800.00
Change Order No. 1
The proposed Change Order No. 1, in the amount of $107,129.84, can be fully covered by the current contingency, leaving a remaining contingency balance of $32,731.52.
Contingency $139,861.56
Change Order No 1 $107,129.84
Remaining contingency $32,731.52
As construction has not yet started, the remaining contingency balance of $32,731.52 may be insufficient to address unforeseen conditions that could arise once work begins. Additional funding to increase the contingency is available through the HSIP Cycle 11 grant and Measure A funds.
Funding Available
The FY 2025-26 Capital Improvement Program (CIP) included the following funding sources for this project.
HSIP Cycle 11 Funds
The city was awarded $931,230 in HSIP Cycle 11 construction funds. The Council has authorized the use of $754,920 for construction and CE, leaving a balance of $176,310 available.
Awarded HSIP Funds $931,230
Council Authorized HSIP Funds ($754,920)
HSIP Funds Available $176,310
Measure A Funds
In the FY 2025-26 CIP, $209,500 in Measure A Funds were programmed for this project. The Council has authorized $83,880 from Measure A funds, as the local match required by the HSIP Cycle 11 grant program, leaving $125,620 of unused programmed funds.
Programmed Measure A Funds $209,500
Council Authorized Measure A Funds ($83,880)
Measure A Funds Available $125,620
Revised Construction Cost and Budget
With Change Order No. 1, the total construction cost increases to $806,068.28, as shown below.
Construction Bid Amount (Econolite) $564,709.40
Change Order No. 1 $107,129.84
Construction Engineering Cost (RTEA) $134,229.04
Revised Construction Cost $806,068.28
City staff recommend establishing a 10% contingency based on the revised construction cost, in the amount of $80,606.83, resulting in a revised construction budget of $886,675.11.
This contingency is recommended because construction has not yet begun, and additional unforeseen conditions may be encountered once work starts.
Revised Construction Cost $806,068.28
10% Contingency $80,606.83
Revised Construction Budget $886,675.11
Budget Adjustment Requested
A budget adjustment in the amount of $47,875.11 is recommended to increase the construction budget to account for the additional contingency.
Revised Construction Budget $886,675.11
Authorized Construction Budget ($838,800.00)
Budget Adjustment $ 47,875.11
Staff propose using HSIP Cycle 11 grant funds in the amount of $43,087.60 to cover 90% of the increase, with the remaining 10% in the amount of $4,787.51 to be funded through programmed Measure A funds to satisfy the city’s local match requirement. The allocation is summarized below:
FISCAL
YEAR
DESCRIPTION GENERAL LEDGER
ACCOUNT CODES
PROJECT
CODE
AMOUNT ONE TIME
or
ONGOING
2025- HSIP Funds 331-100-150- C08756 $43,087.60 ONE TIME 2026 (Grant) 156-8800-8802
2025-
2026
Measure A
(Local Match)
243-100-150-
156-8800-8802 C08756 $ 4,787.51 ONE TIME
2025-
2026 Total $47,875.11
FIVE-YEAR STRATEGIC PLAN:
Goal B: Community Investment
Objective: Cathedral City roads, gateways, public spaces, and other infrastructure are well planned, designed, constructed and maintained.
ATTACHMENTS:
1. Econolite Systems, Inc. – Request for Change
2. HSIP 11C - Change Order No. 1