Staff Report
City Council
Item No. 5.B
Meeting Date: May 27, 2026
From: John A. Corella, Director of Public Works
Title: Award Construction Contract and Construction Engineering Support Services Agreement for the Highway Safety Improvement Program (HSIP) Cycle 11A, 18 Unsignalized Intersection Upgrades Project (C08754)
RECOMMENDATION:
To:
Award a construction contract to LC Paving & Sealing, Inc., in the amount of $1,470,710.25 for the Highway Safety Improvement Program (HSIP) Cycle 11A, 18 Unsignalized Intersection Upgrades Project (C08754); and, Award a professional services agreement to NV5, Inc. in the amount of $84,923.22 for professional construction engineering support services for this project; and, Approve a total construction budget in the amount of $1,716,196.82, which includes a 10% contingency and on-call administrative support services for state-funded project requirements; 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 intended to achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non-state-owned public roads and roads located on tribal land. The HSIP was established under the Federal Surface Transportation Act in August 2005.
The California local HSIP program provides funding for local highway safety improvement projects through a biennial call-for-projects cycle. The timing and size of each funding cycle are determined based on available program apportionments, Federal Transportation Improvement Program (FTIP) capacity, and delivery of existing HSIP Projects.
The California Department of Transportation (Caltrans), Division of Local Assistance (DLA) administers California’s local agency share of HSIP funds. California’s Local HSIP prioritizes infrastructure projects with nationally recognized crash reduction factors (CRF). Projects are ranked based on crash severity, crash potential, crash rate, or other data-supported evaluation methods.
On June 25, 2021, the city completed the 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 for local agencies applying 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 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 18 Unsignalized Intersection Upgrades Project (HSIP Cycle 11A), the total estimated project cost was $1,452,100.00. Of this amount, the city was originally awarded $1,306,890.00 (90%) in HSIP funding, with the remaining $145,210.00 (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 under the HSIP Cycle 11A project include the 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.
The 18 intersections were identified based on the safety strategies and countermeasures included in the city’s LRSP. The intersections were categorized under the following countermeasures: NS01 – Add Intersection Lighting; NS20PB – Install Pedestrian Crossings at Uncontrolled Locations; and NS21PB – Install/Upgrade Pedestrian Crossings with Enhanced Safety Features. A vicinity map of the proposed intersections is included as Attachment 1.
In February 2024, Caltrans authorized funding for 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, estimates (PS&E), right-of-way, and environmental documents required for the project. The PE phase was completed in August 2025, and Caltrans subsequently authorized the construction funding in November 2025, allowing the city to proceed with construction bidding.
Engineering staff advertised an invitation to bid in December 2025 and opened four (4) bid proposals in January 2026. After review of the bids received, staff determined the two (2) lowest bids were non-responsive and the remaining bid amounts exceeded the approved HSIP funding allocation. As a result, staff recommended rejection of all bids at the January 28, 2026, City Council meeting.
Engineering staff re-advertised the project in February 2026 and opened two (2) bid proposals later that month. The second bid opening resulted in construction costs significantly exceeding both the engineers’ estimate prepared during the PS&E phase and the construction funding amount allocated by Caltrans. In response to the increased construction costs, engineering staff submitted a cost change request to Caltrans for additional construction funding. Caltrans approved an additional $300,000.00 in construction funding in April 2026, and the allocation request for the additional funds was subsequently approved on May 6, 2026.
DISCUSSION:
Request for Qualifications/Proposals for Construction Engineering Support Services The HSIP Cycle 11 grant application included funds for Construction Engineering (CE) support services to ensure the project complies with all applicable state-funded requirements during construction. The CE support services tasks include construction management, labor compliance monitoring and enforcement, inspection, and material testing.
Engineering staff solicited a Request for Qualifications/ Proposals (RFQ/P) for CE support services for the HSIP 11A Project. The RFQ/P was advertised in the Desert Sun on September 4, 2025, and posted on the city’s website from September 4, 2025, to September 25, 2025. The RFQ/P was made available to consultants for twenty-one (21) calendar days.
Proposals for CE support services were received from the following four (4) consultant companies:
Fountainhead Consulting Corporation Fontana, CA
NV5, Inc. Palm Desert, CA
RT Engineering & Associates, Inc. San Bernardino, 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 (3) staff members from the Public Works Department, and one (1) staff member from the Planning Department. The panel determined that all consultant companies submitted responsive proposals and demonstrated the qualifications and experience necessary to perform the required services for the project.
The rating summary of the panel’s review is attached to this report.
Based on the evaluation results, the proposal submitted by NV5, Inc. (NV5) received the highest overall rating from the evaluation panel. NV5 demonstrated a clear understanding of the project requirements and provided assurance that the CE support services would be completed efficiently and in compliance with applicable state and federal requirements.
Following completion of the qualifications-based evaluation process, the sealed cost proposal submitted by NV5 was opened and reviewed in accordance with state and federal procurement requirements. Engineering staff determined that NV5’s cost proposal is within the funding allocated through the HSIP grant for CE support services.
Construction Bid Process
On February 1, 2026, the city advertised an invitation to bid, requesting qualified contractors to construct the improvements identified in Bid No. B25-105E. The bid package included the approved plans, specifications, and contract documents for the project. The solicitation period remained open for sixteen (16) calendar days and advertised through the following outlets:
Desert Sun - Published on February 1, 2026
PlanIt Print Works – From January 30, 2026, until February 17, 2026 City’s Website - From January 30, 2026, until February 17, 2026 On February 17, 2026, the city received two (2) bid proposals for this project. The following table ranks each qualified bidder by the total base bid amount.
RANK CONTRACTOR AMOUNT
1 LC Paving & Sealing, Inc. (Escondido, CA) $ 1,470,710.25 2 Elecnor Belco Electric, Inc. (Chino, CA) $ 1,488.888.00 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 LC Paving & Sealing, Inc. from Escondido, CA.
City staff recommend the City Council to:
Award a construction contract to LC Paving & Sealing, Inc., in the amount of $1,470,710.25 for the Highway Safety Improvement Program (HSIP) Cycle 11A, 18 Unsignalized Intersection Upgrades Project (C08754); and, Award a professional services agreement to NV5, Inc. in the amount of $84,923.22 for professional construction engineering support services for this project; and, Approve a total construction budget in the amount of $1,716,196.82, which includes a 10% contingency and on-call administrative support services for state-funded project requirements; 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 July 2026 and is estimated to be completed by November 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 original HSIP Cycle 11A grant includes funding for preliminary engineering (PE), construction engineering services (CE) and construction (CON), in the amount of $1,306,890.00. Due to the increased construction costs identified during the bidding process, Caltrans approved and allocated an additional $300,000.00 in construction funding in April 2026, thereby bringing the total grant amount to $1,606,890.00.
The PE phase has been completed, leaving an available HSIP grant balance of $1,404,390.00 for the CE and CON phases of the project, as shown below.
Construction (CON) $ 1,260,390.00
Construction Engineering (CE) $ 144,000.00
HSIP Grant Balance $ 1,404,390.00
FY 2025-2026 CIP Biennial Budget
The project is included in the FY 2025-2026 Capital Improvement Program (CIP) with an estimated programmed budget in the amount of $1,425,000.00. The adopted CIP does not include the additional $300,000.00 in HSIP funding approved by Caltrans in May 2026 for the construction of the project.
Construction Budget
The construction bid amount submitted by LC Paving & Sealing, Inc. is in the amount of $1,470,710.25. In addition, CE support services to be provided by NV5, Inc. are estimated at $84,923.22, bringing the total construction contract costs to $1,555,633.47, as shown below.
Construction Bid Amount (LC Paving & Sealing, Inc.) $ 1,470,710.25 Construction Engineering Services (NV5, Inc.) $ 84,923.22 Construction Contract Costs $ 1,555,633.47
Staff recommend approval of a 10% contingency in the amount of $155,563.35 to address potential unforeseen construction conditions. Staff also recommend including $5,000.00 for administrative support services related to state-funded project requirements to be provided by NAI Consulting, Inc. (city’s on-call consultant for administrative support services on federal and state funded projects).
The total construction budget is summarized below:
Construction Contract Costs $ 1,555,633.47
10% Contingency $ 155,563.35
Administrative Support Services (NAI Consulting, Inc.) $ 5,000.00 Total Construction Budget $ 1,716,196.82
Proposed Funding Sources
City staff propose using HSIP grant funds in the amount of $1,404,390.00 toward the project.
The remaining balance of $311,806.82 is proposed to be funded using available Traffic Safety Funds, which will satisfy the city’s required local match and cover additional project costs exceeding the available HSIP grant funding.
The following table summarizes the budget allocations for the Construction Engineering support services of the project.
FISCAL YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT ONE TIME or
ONGOING
2026-2027 HSIP Funds
(Grant)
331-100-150-
156-8800-8802 C08754 $1,404,390.00 ONE TIME
2026-2026
Traffic Safety
Funds
(Local Match)
233-100-150-
156-8800-8802 C08754 $311,806.82 ONE TIME
2026-2027 Total $1,716,196.82
FIVE-YEAR STRATEGIC PLAN:
Goal B: Community Investment
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
1. HSIP 11A – Project Vicinity Map
2. HSIP 11A – Bid Tabulation
3. HSIP 11A – LC Paving & Sealing, Inc. Contract
4. HSIP 11A – CE Evaluations and Ranking
5. HSIP 11C – NV5 Work Proposal
6. HSIP 11C – NV5 Cost Proposal
7. HSIP 11C – NV5 Professional Services Agreement