AGENDA REPORT
City Council
MEETING
DATE:
August 26, 2026
PREPARED
BY:
Braden DeWhite
Engineer I
DEPARTMENT
DIRECTOR:
Dan Nutter, PE
DEPARTMENT: Engineering CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Award a Construction Contract to Prestige Prime Engineering for the La Costa Avenue Pedestrian Path Project (CS24C)
RECOMMENDED ACTIONS:
1. Authorize the City Manager, or designee, to execute a contract in substantial form as contained in Attachment 2, and any necessary amendments and time extensions in consultation with the City Attorney, with Prestige Prime Engineering in the amount of $1,069,232 plus $128,307 construction contingency for a total not-to-exceed construction contract amount of $1,197,539 including any future contract amendments to construct the La Costa Avenue Pedestrian Path Project (CS24C).
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (c) of the CEQA Guidelines. This exempts minor alterations to existing public streets, sidewalks, gutters, and similar facilities including the replacement or reconstruction of existing structures and facilities. The project meets the criteria of this CEQA Guidelines section. No historic resources are affected by the construction and grading proposed with the project and no other exceptions in Section 15300.2 of the CEQA Guidelines are applicable to the project.
This item relates to Measure CET-1 of the Climate Action Plan. Specifically, the addition of new sidewalks, and Class IIB buffered bike lanes.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This item is related to the FY 2026-27 City Council Work Plan Focus Area III, Safe and Efficient Mobility and Circulation for all Modes of Transportation, and Goal 3.1.5, Improve alternate 2026-08-26 Item #10E Page 1 of 12
transportation routes, by implementing the La Costa Pedestrian Path Project.
FISCAL CONSIDERATIONS:
The estimated construction phase cost of the La Costa Avenue Pedestrian Path Project (CS24C) is $1,326,528 and is detailed in the following table.
La Costa Avenue Pedestrian Path Project (CS24C)
Construction Phase Cost
Construction Contract $1,069,232
Construction Contingency (12%) $128,307
Construction Management &
Inspection (CM&I) $128,989
Total Estimated Construction
Phase Cost $1,326,528
The fiscal impact of $1,326,528 is included in the current project budget and no further funding is being requested.
BACKGROUND:
On June 21, 2023, City Council approved design funding for the La Costa Pedestrian Pathway Project (CS24C) (the “Project”). The Project was initiated by residents expressing the need to have improved pedestrian facilities along La Costa Avenue. The scope of the Project is to include the construction of a decomposed granite (DG) pedestrian path along the south side of La Costa Avenue from Vulcan Avenue to Interstate 5.
On February 26, 2024, a Citizen Participation Plan (CPP) meeting was held for the Project at City Hall. Approximately 25 residents attended the CPP meeting and staff answered 18 total questions.
In August 2024, the City received an $18,050 fair share deposit and a $11,250 in lieu fee payment from the owner of 1967 North Vulcan Avenue as a condition of the Triton Encinitas Apartments, as approved by City Council. This $29,300 payment was set aside for future appropriation to the La Costa Avenue Pedestrian Path Project (CS24C) for construction costs associated with project elements along the property frontage.
On January 6, 2025, a call for project release was issued by SANDAG for the Smart Growth Incentive Program (SGIP) Cycle 6, which is authorized by the TransNet Extension Ordinance and provides funding for planning efforts and transportation-related infrastructure improvements that support smart growth development.
On March 19, 2025, the City Council authorized the City Manager or designee to apply for, accept, and administer funding from the SANDAG SGIP Cycle 6 for selected City Capital Improvement Program (CIP) Projects.
On April 13, 2025, the City of Encinitas submitted the La Costa Ave Ped Path Project (CS24C) for the SANDAG SGIP Cycle 6 for approval of construction funding.
On December 12, 2025, the SANDAG Board of Directors approved the award of an SGIP Cycle 2026-08-26 Item #10E Page 2 of 12
6 Grant to the City of Encinitas for the construction of the La Costa Avenue Pedestrian Project (CS24C) for a total grant amount of $1,197,238.
On April 6, 2026 the City and SANDAG entered into a funding agreement for the construction of the La Costa Avenue Pedestrian Path Project (CS24C) for a total grant amount of $1,197,238. As a condition of the grant, $100,000 of local matching funds must be provided. This agreement expires on October 15, 2029.
On April 28, 2026, an Administrative Hearing for the Project’s Coastal Development Permit (CDP007927-2025) was held at City Hall, hosted by Development Services.
On April 29, 2026, a Notice of Decision (NOD) was filed for CDP-007927-2025 to perform the work.
On June 17, 2026, City Council approved the Design for the La Costa Avenue Pedestrian Path Project (CS24C), Authorized Advertisement for Construction, and appropriated developer fair share and in lieu fees. With the addition of the developer fair share and in lieu fees, the total of $1,326,528 is available for the construction of the project ANALYSIS:
A Public Notice inviting bids was published on June 30, 2026, with a bid opening on July 28, 2026.
The City received six (6) bids for this construction solicitation, and the results are summarized below:
La Costa Ave Pedestrian Path Project Bid Results
Bidder Base Bid
Prestige Prime Engineering $1,069,231.72
A.B. Hashmi, Inc $1,073,867.35
RAC Construction & Engineering $1,134,729.40
Van Engineering $1,268,700.65
US Builders and Consultants $1,320,800.00
Palm Engineering $1,373,168.36
The low bidder for this project is defined in the project specifications as the lowest responsive and responsible bidder. After bid analysis, Staff determined that Prestige Prime Engineering was the lowest responsive and responsible bidder. Staff recommends awarding a construction contract for the La Costa Avenue Pedestrian Path Project (CS24C). If the recommended action is approved, construction is expected to begin in November 2026 and be completed in Spring 2027.
ATTACHMENTS:
1. Vicinity Map – La Costa Ave Pedestrian Path Project (CS24C).
2. Construction Contract with Prestige Prime Engineering for the La Costa Ave Pedestrian Path Project (CS24C).
2026-08-26 Item #10E Page 3 of 12
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Vicinity Map - La Costa Pedestrian Path Project (CS24C) 2026-08-26 Item #10E Page 4 of 12
ATTACHMENT 2
CITY OF ENCINITAS
LA COSTA AVE PEDESTRIAN PATH
CS24C
CONTRACT
(To be executed by successful bidder after Award)
THIS CONTRACT is made this _____ day of _____ 2026, in the County of San Diego, State of California, by and between the City of Encinitas hereinafter called “City”, and ___________________________, hereinafter called “Contractor”.
Whereas the City completed project design for LA COSTA AVE PEDESTRIAN PATH (CS24C), “Project” and advertised it for construction bids; and Whereas the Contractor submitted lowest responsive and responsible bid for the Project; and Whereas the work to be completed is specified in the following contract documents: the Project Plans, Specifications, Standard Specifications, incorporated Specifications, General and Special Provisions, Addenda, Reference Drawings, Permits and Environmental Documents.
The City and the Contractor agree as follows:
ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Project work within the time stipulated in the Contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all the Project work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:
LA COSTA AVE PEDESTRIAN PATH CS24C
The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
ARTICLE 2. TIME FOR COMPLETION. The Work shall begin on the date stated in City’s Notice to Proceed. The Contractor shall complete all Project work for the base bid required by the Contract Documents within sixty five (65) working days from the commencement date stated in the Notice to Proceed. Additionally, a ninety (90) calendar day Plant Establishment Period (PEP) shall commence within the sixty five (65) working day period and continue until all success criteria are met.
By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ____________________________________________________ Dollars ($______________).
Payment shall be made as set forth in the General Conditions. 2026-08-26 Item #10E Page 5 of 12
ATTACHMENT 2
ARTICLE 4. LIQUIDATED DAMAGES. It is agreed that the Contractor shall pay to the City of Encinitas the sum of Four Thousand Two Hundred Dollars ($4,200) per each calendar day of unexcused project delay in completing the work in excess of the number of working days prescribed above as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
ARTICLE 5. COMPONENT PARTS OF THE CONTRACT DOCUMENTS. The “Contract Documents” which form this Contract include the following: the entire Contract Documents, Specifications and Standard Drawings bid book including: Notice Inviting Bids, Information and Instruction to Bidders, Bid Forms, Contract Form, Performance Bond, Payment Bond, Worker’s Compensation Insurance Certificate, Guaranty, General Specifications, Special Provisions, Technical Provisions and Final Close Out Agreement. The Contract Documents also include Addenda, Project Plans, Standard Specifications, Standard Plans, incorporated Specifications, Reference Documents, Certificate(s) of Insurances and Endorsements, Permits, Environmental Documents, and Right of Way Documents.
The Contactor shall complete the Work in strict accordance with all the Contract Documents and direction from the City Engineer or her designee.
All the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of the California Labor Code applicable to this Project, including, but not limited to prevailing wage requirements.
ARTICLE 7. INSURANCE AND INDEMNIFICATION. Contractor shall provide insurance and indemnification as both set forth in the Contract Documents and as included below. 5-4 INSURANCE.
Contractor shall procure a standard, commercial general liability insurance policy and property damage insurance, or commercial general liability insurance, from an insurance company approved by City having a Best Rating of A-: VII or better and licensed and authorized by the Insurance Commissioner of the State of California Department of Insurance to be transacting business in the State of California. Policies shall be in protection of the City, its officers and employees indemnifying and defending such parties against direct or contingent loss or liability for damages for personal injury, death or property damage related to the possession, operation or performance of the work of the project. The insurance shall extend for the full term of this Contract and remain in full force and effect, in the following minimum limits:
A. Commercial General liability (Including operations, Products and completed operations):
Combined Single Limit per Occurrence $3,000,000.00
General Aggregate $5,000,000.00
B. Automobile Liability:
Combined Single Limit Per Occurrence
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ATTACHMENT 2
(For bodily injury and property damage) $1,000,000.00
Such policy shall comply with all the requirements of this Article. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Contractor from liability in excess of such coverage, nor shall it limit Contractor’s indemnification obligations to City, and shall not preclude City from taking such other actions available to City under other provisions of the Contract Documents or law.
Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.
Contractor shall make certain that any and all Subcontractors hired by Contractor are insured in accordance with this Contract. If any Subcontractor’s coverage does not comply with the foregoing provisions, Contractor shall indemnify and hold the City harmless from any damage, loss, cost, or expense, including attorneys’ fees, incurred by City as a result thereof.
All general liability policies shall be written to apply to all bodily injury, including death, property damage, personal injury, owned and non-owned equipment, blanket contractual liability, completed operations liability, explosion, collapse, underground excavation, removal of lateral support, and other covered loss, however occasioned, occurring during the policy term, and shall specifically insure the performance by Contractor of that part of the indemnification contained in this Agreement, relating to liability for injury to or death of persons and damage to property.
Deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City. If the coverage contains one or more aggregate limits, a minimum of 50% of any such aggregate limit must remain available at all times; if over 50% of any aggregate limit has been paid or reserved, City may require additional coverage to be purchased by Contractor to restore the required limits. Contractor may combine primary, umbrella, and as broad as any possible excess liability coverage to achieve the total limits indicated above. Any umbrella or excess liability policy shall include the additional insured endorsement described in the Contract Documents.
For any claims related to this Project, the Contractor's insurance coverage shall be primary insurance with respect to the City, and their sub-entities, officers, officials, employees, and volunteers. Any insurance of self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute to it.
If the contractor maintains broader coverage and/or higher limits than the minimums shown herein, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Workers Compensation Insurance
The Contractor shall provide, during the life of this Contract, workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease for all of the employees engaged in Project under this Contract, on or at the Project site, and, in case any of sublet Work, the Contractor shall require each Subcontractor similarly to provide workers’ 2026-08-26 Item #10E Page 7 of 12
ATTACHMENT 2
compensation insurance for all the latter’s employees as prescribed by State law. Any class of employee or employees not covered by a Subcontractor’s insurance shall be covered by the Contractor’s insurance. In case any class of employees engaged in work under this Contract, on or at the Project site, is not protected under the Workers’ Compensation Statutes, the Contractor shall provide or shall cause a Subcontractor to provide, adequate insurance coverage for the protection of such employees not otherwise protected. The Contractor is required to secure payment of compensation to their employees in accordance with the provisions of Section 3700 of the Labor Code. The Contractor shall file with City certificates of their insurance protecting workers and shall provide certificates at any time upon request.
Company or companies providing insurance coverage shall be acceptable to Agency, if in the form and coverage as set forth in the Contract Documents. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Contractor shall assume the immediate defense of and indemnify and save harmless Agency and its officers and employees, agents, and consultants from all claims, loss, damage, injury, and liability of every kind, nature, and description brought by any person employed or used by Contractor, or any Subcontractor, to perform the Project under this contract regardless of responsibility or negligence.
Employer’s Liability Insurance
Contractor shall provide during the life of this Contract, Employer’s Liability Insurance, including Occupational Disease, in the amount of, at least, one million dollars ($1,000,000.00) per person per accident. Contractor shall provide Agency with a certificate of Employer’s Liability Insurance. Such insurance shall comply with the provisions of the Contract Documents. The policy shall be endorsed, if applicable, to provide a Borrowed Servant/Alternate Employer Endorsement and contain a Waiver of Subrogation in favor of Agency.
Evidence of Insurance
The insurance policies shall provide that the policies shall remain in force during the term of this contract and shall not be canceled, terminated, or allowed to expire, nor shall it be changed so that it no longer meets the City’s insurance requirements, without 30 days prior written notice to City from the insurance company. Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language affecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.
Coverage
The insurance shall cover all operations of the Contractor, its agents and employees, performed in connection with this Contract including but not limited to premises and automobile.
Additional Insured Requirements
2026-08-26 Item #10E Page 8 of 12
ATTACHMENT 2
The City, its sub-entities, its officers, elected officials, employees, contractors, agents, construction managers, architects and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to all liability arising out of the Project or operations performed by or on behalf of the Contractor including, but not limited to, materials, parts or equipment furnished in connection with such work or operations. General liability coverage shall be provided in the form of an endorsement to the Contractor's insurance, or the City, its officers, agents, and employees shall be named as additional named insureds on Contractor's policies, evidenced by an additional insured endorsement, using form ISO CG 20-10-10-01 and CG 20-37-10-01 or their exact combined equivalent.
Proof of Insurance
The Contractor shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance, signed by the carrier, in a form satisfactory to the City, upon the City’s request.
Responsibility
Maintenance of insurance by the Contractor as specified in this Contract shall in no way be interpreted as limiting the Contractor’s responsibility whatsoever. The Contractor may carry, at its own expense, such additional insurance as it deems necessary.
Adjustment
Any insured loss is to be adjusted with the City and made payable to the City on behalf of the insureds, as their interests may appear. The City shall have the power to adjust and settle any loss with the insurers unless, within five working days after the loss, one of the parties in interest shall object in writing to the City’s exercise of this power; and if such objection be made, the matter shall be subject to resolution as provided herein.
Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Contractor’s insurance policy must contain a provision which provides that the insurer waives any rights of subrogation it has or may have against the City, or any of their officers or employees.
Further, any insurance maintained by the City shall apply in excess of and not contribute together with, insurance provided by Contractor.
City May Obtain Insurance for Contractor
In the case of any breach of any insurance provision of this Contract, City may, at City’s sole discretion, take out and maintain, at Contractor’s expense, any insurance in the name of Contractor or any Subcontractor, as City deems proper. In such case, City may deduct the cost 2026-08-26 Item #10E Page 9 of 12
ATTACHMENT 2
of taking out and maintaining the insurance from any sum to which Contractor is entitled or may become entitled under this Contract.
ADD the following subsection 5-4.5:
5-4.5 Indemnification and Hold Harmless.
To the greatest extent allowed by law, Contractor shall immediately defend (with counsel approved by City), indemnify and hold City, and its officers, agents, employees, and representatives free and harmless from any and all claims, demands, negligence (including the active or passive negligence of City as allowed by law), causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, to the extent arising out of or incident to any acts, omissions, negligence or willful misconduct of Contractor, its officials, officers, employees, agents, consultants, Subcontractors and Contractors arising out of or in connection with the performance of the Project or this Contract, including without limitation the payment of all damages and attorney’s fees, fines, penalties and other related costs and expenses.
Contractor shall immediately defend, upon the City’s tender, at Contractor’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its officers, agents, employees and representatives notwithstanding whether liability is or can be established against City.
Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City, its officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse City, and its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code Section 2782 or other applicable provisions of law.
Contractors defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans With Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the Work or after the Project is complete, as the result of violations of accessibility law, regulation or negligence in Contractor’s construction or protection of the Work. By inspecting, approving, or accepting the Work, City shall not have waived the protections afforded herein to City and City's officers, officials, employees, and agents or diminished the obligation of Contractor who shall remain obligated in the same degree to indemnify and hold City and City's officers, officials, employees, and agents, harmless as provided above.
Contractor's obligation herein includes, but is not limited to, alleged defects in the construction of the Work; alleged defects in the materials furnished in the construction of the Work; alleged injury to persons or property; alleged inverse condemnation of property as a consequence of the construction or maintenance of the Work; any regulatory violations (including but not limited to Stormwater Pollution Control BMP/Erosion Control, State Construction General Permit, and other and regulatory requirements) ; and any accident, loss or damage to the Work prior to the acceptance of same by City.
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ATTACHMENT 2
By inspecting, approving, or accepting the Work, City shall not have waived the protections afforded herein to City, its officers, elected officials, appointed officials, volunteers, employees, and agents or diminished the obligation of Contractor who shall remain obligated in the same degree to indemnify and hold City, and its elected officials, appointed officials, volunteers, employees, and agents, harmless as provided above.
Contractor's obligation herein does not extend to liabilities, claims, demands, causes of action, losses, damages, or costs that arise out of the City's intentional wrongful acts, violations of law, or the City's sole active negligence.
ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City or may be obtained online at http://www.dir.ca.gov/Public-Works/Prevailing-Wage.html and which must be posted at the job site. The prevailing wage determination for this project is 2026-1. 2026-08-26 Item #10E Page 11 of 12
ATTACHMENT 2
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. [NAME OF CONTRACTOR]
By: ___________________________
Name: ___________________________
Title: ___________________________
License No. _________________________
Date: ___________________________
CITY OF ENCINITAS
By_________________________
Jennifer Campbell, City Manager
Date: ___________________________
APPROVED AS TO FORM
___________________________
Ajit Thind, City Attorney
___________________________
Date
NOTE: Pursuant to California Corporations Code Section 313, if Contractor is a corporation or nonprofit organization, this Contract must be signed by (a) the Chairperson of the Board, President or Vice-President and (b) the Secretary any Assistant Secretary, the Chief Financial Officer or any Assistant Treasurer.
END OF CONTRACT
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