CITY COUNCIL STAFF REPORT
DATE: JULY 8, 2026 CONSENT CALENDAR
SUBJECT: AWARD OF A CONTRACT AND APPROVAL OF TASK ORDERS FOR
THE SOUTH PALM CANYON DRIVE ROAD RECONFIGURATION, CITY
PROJECT 22-21A, INCLUDING APPROVAL OF A CONSTRUCTION
CONTRACT TO EAGLE PAVING, LLC IN THE AMOUNT OF $2,210,000; APPROVAL OF A TASK ORDER UNDER ON-CALL AGREMEENT NO.
25Q198 WITH DCCM INFRASTRUCTURE, INC. (FORMERLY
SOUTHSTAR) IN AN AMOUNT NOT TO EXCEED $187,466 FOR
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES; AND
APPROVAL OF A TASK ORDER UNDER ON-CALL AGREEMENT NO.
23PO41 WITH TSG ENTERPRISES, INC., DBA THE SOLIS GROUP, IN AN AMOUNT NOT TO EXCEED $8,700 TO PROVIDE COMMUNITY
WORKFORCE AGREEMENT ADMINISTRATION
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Award of this contract will allow the City to proceed with construction of the South Palm Canyon Road Reconfiguration, City Project 22-21A, including approval of associated agreements for construction management services and community workforce agreement administration.
RECOMMENDATION:
1) Award a construction contract to Eagle Paving LLC (Eagle) in the amount of $2,210,000 for the South Palm Canyon Road Reconfiguration, City Project No. 22- 21A (“Project”);
2) Authorize the City Manager to approve a task order for project management and inspection services from an on-call engineering services firm, DCCM Infrastructure, Inc. (DCCM), in an amount not to exceed $187,466; 3) Authorize the City Manager to approve a task order for Community Workforce Agreement (CWA) administration services from an on-call CWA firm, TSG Enterprises, Inc., dba The Solis Group, in an amount not to exceed $8,700;
City Council Staff Report
July 8, 2026 -- Page 2
Award South Palm Canyon Road Reconfiguration, CP 22-21A 4) Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $335,000 with all change orders reported to the City Council; and
5) Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure forms for Eagle, DCCM, and The Solis Group are included as Attachment A.
BACKGROUND:
In December 2021, the City developed the Palm Springs Pedestrian Master Plan, which identified 37 locations, consisting of street segments and intersections, for further evaluation of potential pedestrian safety enhancements. One such project was the South Palm Canyon Drive Road Reconfiguration. The focus of this project is to improve pedestrian, bicyclist, and vehicle safety through lane reconfiguration, bike lanes, enhanced crossings, and sidewalk gap closures where feasible. The limits of the proposed lane reconfiguration are shown in Figure 1 as follows.
Figure 1: South Palm Canyon Drive Road Reconfiguration, City Project 22-21A On January 10, 2024, staff solicited proposals from the City’s on-call traffic engineering consultants to prepare a traffic study, conduct extensive community outreach, and develop Plans, Specifications, and Estimates (PS&E) for the Project.
On February 29, 2024, the City Council approved a Task Order with Kimley-Horn for traffic engineering services.
City Council Staff Report
July 8, 2026 -- Page 3
Award South Palm Canyon Road Reconfiguration, CP 22-21A Between September 2024 and February 2025, three in-person community meetings were held to gather feedback and keep residents engaged as the project progressed through the conceptual design stage. An online interactive map tool and a dedicated project email address were also used to collect additional input. Affected communities and businesses were notified via email and mailed notices.
Throughout the process, more than 120 comments were received, and all feedback was considered in the design. Throughout the design process, the design team and Staff coordinated with the Fire Department and Police Department to confirm no issues with the proposed road reconfiguration along South Palm Canyon. There were no conflicts with the selected bike lane and turn lane design.
On February 3, 2025, a call for projects was published by RCTC seeking applications for the SB 821 Bicycle and Pedestrian Facilities Program. This year, the program’s maximum funding request was $727,986 per application and $1,455,973 per jurisdiction. The City submitted two applications, with one being the South Palm Canyon Road Reconfiguration, and the other being Racquet Club Road Reconfiguration.
On June 11, 2025, RCTC approved 13 projects for funding out of the 33 applications received. The South Palm Canyon Road Reconfiguration was selected as one of six in the Coachella Valley. The Racquet Club Road Reconfiguration was also selected by RCTC.
On September 10, 2025, the City Council approved an agreement with RCTC to accept SB 821 grant funding in an amount not to exceed $727,986 for the Project.
On May 12, 2026, the City Council approved the plans, specifications, and estimate for the proposed Project. This project advertised for bidding in The Desert Sun, industry plan rooms, and the PlanetBids electronic system on May 28, 2026.
STAFF ANALYSIS:
On June 18, 2026, the City received thirteen (13) bids from the following contractors:
Company Location Bid Amount
Eagle Paving LLC Poway, CA $2,210,000.00
Matich Corporation Cabazon, CA $2,223,284.00
Vance Corporation Beaumont, CA $2,227,759.40
Hardy & Harper, Inc Lake Forest, CA $2,315,000.00
Calmex Engineering, Inc. Bloomington, CA $2,378,262.00
Romero General Construction Corp. Escondido, CA $2,380,380.00 R.J. Noble Company Orange, CA $2,499,201.00
City Council Staff Report
July 8, 2026 -- Page 4
Award South Palm Canyon Road Reconfiguration, CP 22-21A Rove Engineering, Inc. El Centro, CA $2,518,921.03
All American Asphalt Corona, CA $2,556,768.00
Granite Construction Company Indio, CA $2,618,105.00
LC Paving & Sealing, Inc. Escondido, CA $2,795,385.00
Onyx Paving Company, LLC Yorba Linda, CA $2,877,000.00
Van Engineering Wildomar, CA $3,698,463.50
Scope of Work
The Project consists of roadway improvements along South Palm Canyon Drive between Acanto Drive and East Palm Canyon Drive. Improvements include the installation of Class II bicycle lanes, pavement resurfacing, associated signing and striping, and the construction of new sidewalk segments and ADA-compliant curb ramps at strategic locations to enhance pedestrian connectivity and accessibility. The Project will reconfigure the existing four-lane roadway into a three-lane cross section consisting of one travel lane in each direction and a continuous two-way left-turn lane to improve multimodal mobility and roadway safety.
Time of Completion
The work shall be diligently prosecuted to completion before the expiration of 40 working days from the issuance of a notice to proceed. Working days are defined as Monday through Friday, excluding weekends and City recognized holidays.
Bid Analysis
The submitted bid documents were reviewed, and it was determined that Eagle complied with the instructions to bidders and submitted the lowest responsive and responsible bid at $2,210,000. For reference, the Project construction estimate was $3,400,000. Staff recommends the City Council award a construction contract to Eagle. The proposed agreement is included as Attachment B. The bidding documents received from Eagle are included as Attachment C.
Construction Management Services
Staff issued a Request for Proposals (RFP) for Construction Management (CM) and Inspection services to one of their on-call CM firms. The requested RFP was written to ensure that the selected firm demonstrated successful experience and capacity to provide construction management with inspection services required by the City. DCCM provided a proposal in the amount of $187,466. Staff recommends the City Council approve a task order under On-Call Agreement 25Q198 with DCCM, not to exceed $187,466.
Project Labor Agreement (PLA) and Administration
This Project is subject to the City’s Community Workforce Agreement dated August 31, 2021, which is on file with the City. The Contractor and all Subcontractors of any tier are to include contractual provisions in all contracts they enter for the performance of the work requiring the Contractor and all Subcontractors to comply with the provisions of the PLA City Council Staff Report
July 8, 2026 -- Page 5
Award South Palm Canyon Road Reconfiguration, CP 22-21A prior to the commencement of work and at no additional cost. Staff issued a Request for Proposals (RFP) from our on-call Community Workforce Administration Services firm, TSG Enterprises, Inc., dba The Solis Group. Staff recommends the City Council approve a task order under On-Call Agreement 23PO41 with TSG not to exceed $8,700.
Local Business Preference Compliance
Section 7.03.08 of the Palm Springs Municipal Code (“PSMC”), “Local Business Preference Program”, requires prime contractors to use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose workforce resides within the Coachella Valley.
Eagle is not considered a local business but has demonstrated sufficient evidence of good faith efforts to subcontract the supply of materials to local businesses.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use. Therefore, Staff has determined that the Project is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The estimated construction and administrative costs to complete the project are shown in Table 1 below. Sufficient funds have been budgeted to cover the cost of construction.
Table 1
Project Costs Amount
SB 821 Grant Funding $727,986
Measure A Funds $985,373
Measure J Funds $610,373
Capital Funds $967,434
Project Administration ($50,000)
Construction Administration/Inspection ($187,466)
Community Workforce Agreement Administration ($8,700)
Construction Contract ($2,210,000)
15% Contingency ($335,000)
Total Remaining $500,000
City Council Staff Report
July 8, 2026 -- Page 6
Award South Palm Canyon Road Reconfiguration, CP 22-21A REVIEWED BY:
City Engineer: Joel Montalvo
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Public Integrity Disclosure Forms
B. Construction Agreement
C. Contractor’s Bid