Staff Report
City Council
Item No. 4.D
Meeting Date: August 26, 2026
From: Armando J. Garcia Baldizzone, City Engineer
Title: Approval of a Budget Adjustment to the HSIP Cycle 9A Traffic Signal Improvements at 12 Intersections Project (C08752), and Approval of Amendment No. 3 to the Professional Service Agreement with Z&K Consultants, Inc.
RECOMMENDATION:
Approve a budget adjustment to the HSIP Cycle 9A Traffic Signal Improvements at 12 Intersections Project (C08752), utilizing Highway Safety Improvement Program (HSIP) funding awarded by the California Department of Transportation (Caltrans); and authorize the City Engineer to prepare and execute Amendment No. 3 to the Professional Services Agreement with Z&K Consultants, Inc. for additional construction engineering services necessary to complete the project.
BACKGROUND:
The Highway Safety Improvement Program (HSIP) is a federal-aid program administered by the California Department of Transportation (Caltrans) that provides funding to state, local, and tribal governments for infrastructure projects and programs designed to achieve a significant reduction in traffic fatalities and serious injuries on all public roads.
In December 2018, Cathedral City was awarded $1,302,500 in HSIP Cycle 9 grant funding for traffic safety improvements at 10 signalized intersections (Project). The improvements include the installation of advanced dilemma zone detection equipment, left turn signal phases, and pedestrian countdown signal heads.
On June 24, 2020, the city entered into a Professional Services Agreement with Advantec Consulting Engineers, Inc. (Advantec) for the design of traffic signal improvements at the 10 intersections. In February 2022, the agreement was amended to add two (2) intersections to the project due to overlapping improvements included in the Coachella Valley Association of Governments' (CVAG) Regional Traffic Signal Synchronization Project (CV Sync). The amendment increased the project scope from ten (10) to twelve (12) intersections. The total contract amount with Advantec was $258,348, and the design work was completed in January 2024. The twelve (12) project intersections are listed below and a map showing their locations are included as Attachment 1.
1. Ramon Road and Whispering Palms Trail
2. Ramon Road and Cathedral Canyon Drive
3. Vista Chino and Avenue Quintana
4. Gerald Ford Drive and Plumley Road
5. East Palm Canyon Drive and El Dorado
6. Ramon Road and Desert Vista Road
7. Ramon Road and Da Vall Drive
8. Date Palm Drive and Via Olivera
9. Dinah Shore Drive and Plumley Road
10.Landau Drive and 30 th Avenue
11.Date Palm Drive and Gerald Ford Drive
12.Dinah Shore Drive and Cathedral Canyon Drive
On March 27, 2024, the City Council awarded a Professional Services Agreement with Z&K Consultants, Inc. in the amount of $209,124 for professional construction engineering support services for HSIP Cycle 9A Project Traffic Signal Improvements at 12 Intersections.
In July 2024, the city advertised the project for construction and received three (3) bids. The lowest bid exceeded the available HSIP construction funding due to increased construction costs since the original grant award. On October 23, 2024, the City Council rejected all bids and directed staff to revise the project specifications and readvertise. City staff, with assistance from NAI Consulting and Albert A. Webb Associates, submitted a cost and scope change request to Caltrans for additional funding. On November 19, 2024, Caltrans approved the request, increasing the HSIP construction funding by $1,217,100. The project was readvertised in January 2025, and five (5) bids were received on February 6, 2025; however, due to an error in the bid opening process, the City Council rejected all bids on February 26, 2025.
The city readvertised the Project for a third time on March 2, 2025, and received seven (7) bids on March 25, 2025. Following a bid protest submitted by Elecnor Belco Electric, Inc. (Belco), city staff coordinated with Caltrans and Z&K Consultants to review the apparent low bid submitted by Yunex LLC for compliance with federal Disadvantaged Business Enterprise (DBE) requirements. Yunex's bid was determined to be non-responsive for failure to meet the DBE participation goal or demonstrate sufficient good faith efforts. As a result, Belco was determined to be the lowest responsive and responsible bidder, and on April 23, 2025, the City Council awarded the construction contract to Belco in the amount of $850,888.
The construction phase of the Project began on June 23, 2025, with administrative and pre- construction activities, including field surveying, material procurement, and coordination of anticipated delivery dates for major materials and equipment. On August 8, 2025, construction activities were suspended based on the contractor's construction schedule and anticipated material delivery dates. Construction resumed on December 8, 2025, with an anticipated completion date of March 25, 2026. During construction, an additional fourteen (14) working days were approved through change orders, and work was suspended for an additional twenty-six (26) days to allow for equipment replacement. These schedule adjustments extended the construction period, and construction was substantially completed on May 21, 2026.
Throughout the pre-construction and construction phases, Z&K Consultants, Inc. provided construction engineering services to ensure compliance with all federal requirements applicable to the HSIP-funded Project. These services included construction management, labor compliance monitoring and enforcement, construction inspection, materials testing, and the preparation and maintenance of all required project documentation.
DISCUSSION:
Z&K's Professional Services Agreement was amended twice to extend the term of the agreement due to delays prior to construction and, subsequently, delays during construction associated with material and equipment lead times. These amendments allowed Z&K to continue providing construction engineering services throughout the prolonged construction period.
With construction completed on May 21, 2026, the project has entered the closeout phase, which includes completion of the required construction and federal-aid documentation. Z&K has exhausted the original contract amount and has requested Amendment No. 3 in the amount of $45,072 for additional construction engineering services associated with the extended construction period and to complete the remaining project closeout services.
On July 29, 2026, city staff reviewed the available HSIP construction funding and determined that the construction cost was below the grant amount awarded for construction. Based on the available funding, city staff requested that Caltrans reallocate $45,072 in HSIP funds from construction to construction engineering to fully fund Z&K’s proposed Amendment No.
3. Caltrans approved the funding reallocation on August 3, 2026. Caltrans approval is included as Attachment 3.
Amendment No. 3 will increase the total not-to-exceed compensation by $45,072, from $209,124 to $254,196, and extend the term of the agreement by two (2) months, through November 30, 2026, to allow Z&K to complete the remaining Project closeout services. The proposed amendment is included as Attachment 2.
Staff recommend that the City Council approve a budget adjustment to the HSIP Cycle 9A Traffic Signal Improvements at 12 Intersections Project (C08752), utilizing HSIP funding awarded by Caltrans; and authorize the City Engineer to prepare and execute Amendment No. 3 to the Professional Services Agreement with Z&K Consultants, Inc. for additional construction engineering services necessary to complete the project.
FISCAL IMPACT:
The HSIP Cycle 9 grant included $1,217,100 in federal funding for construction and construction engineering. The table below summarizes the original federal funding allocation and the revised allocation following the reallocation approved by Caltrans on August 3, 2026.
Finance Items Original Revised
Construction $1,051,400 $1,006,328
Construction Engineering $165,700 $210,772
Available HSIP Grant Funding $1,217,100 $1,217,100
In 2024, the City Council awarded a contract to Z&K Consultants in the amount of $209,124 and approved a ten percent (10%) contingency of $20,912, for a total construction engineering budget of $230,036.
Z&K Consultants Inc. Agreement $209,124
Contingency (10%) $20,912
Construction Engineering Budget $230,036
Amendment No. 3, in the amount of $45,072, will increase the Professional Services Agreement with Z&K Consultants, Inc. from $209,124 to $254,196.
Z&K Consultants Revised Contract Amount
Z&K Consultants Inc. Agreement $209,124
Amendment No. 3 $45,072
Revised Contract Amount $254,196
Funding Sources
At the time the construction engineering budget was established in 2024, the final construction cost was unknown. Therefore, the approved construction engineering budget was funded with $165,700 in available HSIP funds and $64,336 in Measure A funds.
The additional services under Amendment No. 3 will be fully funded with HSIP funds. The city is required to maintain the existing $43,424 local funding contribution to the Z&K agreement.
HSIP Funds - Z&K Consultants Agreement $165,700
Measure A Funds - Z&K Consultants Agreement (local funding) $43,424 Measure A Funds - Contingency (10%) $20,912
HSIP Funds – Amendment No 3 $45,072
Construction Engineering Budget $275,108
The previously approved construction engineering contingency of $20,912 will remain within the Project budget and will be used to fund additional administrative and federal-aid project support services provided by NAI Consulting, the city's on-call state and federal project support consultant.
Staff are requesting a budget adjustment to increase the project’s construction engineering appropriation by $45,072 in the Capital Improvement Program Fund, account No. 331-100- 150-156-8600-8802.
The following table summarizes the allocations for the project’s construction engineering budget.
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT
ONE TIME
or
ONGOING
2026-2027 HSIP Funds
Construction Engineering
331-100-150-156-
8600-8802 C08752 $210,772 ONGOING
2026-2027 Measure A
Construction Engineering
243-100-150-156-
8800-8802 C08752 $43,424 ONGOING
2026-2027 Measure A
Project Contingency
243-100-150-156-
8800-8802 C08752 $20,912 ONGOING
2026-2027 Total $275,108
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. Attachment - Project Location Map
2. Attachment – Z&K Amendment No 3
3. Attachment – Caltrans Approval