Public Works Agency
www.santa-ana.org/pw
Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 21, 2026
TOPIC: Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project
AGENDA TITLE
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Street Improvements Project (Project Nos. 18-6901, 20-6971, 23- 6628, 26-6427) (Non-General Fund)
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $124,549 in prior-year fund balance in the Local Drainage Area IV, Prior Year Carry Forward revenue account and appropriate the same amount into the Local Drainage Area IV, Improvements Other Than Buildings expenditure account. (Requires five affirmative votes.)
2. Approve an appropriation adjustment recognizing $788,948 in prior-year fund balance in the Local Drainage Area VI, Prior Year Carry Forward revenue account and appropriate the same amount into the Local Drainage Area VI, Improvements Other Than Buildings expenditure account. (Requires five affirmative votes.)
3. Approve an appropriation adjustment recognizing $45,634 in prior-year fund balance in the Transportation Systems Improvement Area E, Prior Year Carry Forward revenue account and appropriate the same amount into the Transportation Systems Improvement Area E, Improvements Other Than Buildings expenditure account. (Requires five affirmative votes.)
4. Approve an appropriation adjustment recognizing $53,439 in prior-year fund balance in the Transportation Systems Improvement Area F, Prior Year Carry Forward revenue account and appropriate the same amount into the Transportation Systems Improvement Area F, Improvements Other Than Buildings expenditure account. (Requires five affirmative votes.)
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
5. Approve an appropriation adjustment recognizing $709,239 in prior-year fund balance in the Transportation Systems Improvement Area B Tustin, Prior Year Carry Forward revenue account and appropriate the same amount into the Transportation Systems Improvement Aut Area B Tustin, Improvements Other Than Buildings expenditure account. (Requires five affirmative votes.)
6. Approve an amendment to the Fiscal Year 2025-2026 Capital Improvement Program to include an additional $4,724,159 in construction funds for the Warner Avenue Improvements Project (No. 18-6901, 20-6971, 23-6628, 26-6427).
7. Approve the Project Cost Analysis for a total estimated construction delivery cost of $25,428,000, which includes $21,190,000 for the construction contract, $2,119,000 for contract administration, inspection, and testing, and $2,119,000 for unanticipated or unforeseen work.
8. Award a construction contract to Los Angeles Engineering, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $21,190,000, subject to change orders, for construction of the Warner Avenue Street Improvements Project (Nos. 18-6901, 20-6971, 23-6628, 26-6427), for a term beginning April 21, 2026 and authorize the City Manager to execute the contract.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
Warner Avenue is classified as an East-West Major Arterial in the City’s General Plan Mobility Element and the County of Orange Master Plan of Arterial Highways. Improving the one-mile segment of Warner Avenue from Main Street to Grand Avenue was approved by City Council in 2015 and has been a long-term priority project that is being constructed in multiple phases. Warner Avenue Phase 1 spans from Main Street to Oak Street and is under construction. Warner Avenue Phase 2 is from Oak Street to Grand Avenue (Exhibit 1) is the final phase of the project. Construction on both phases will occur concurrently and be completed at the same time. Improvements include widening the street from a four-lane roadway to a six-lane arterial to address safety issues and provide adequate multi-modal transit capacity as well as related improvements such as storm drains, water mains, traffic signals, bike lanes, and sidewalks.
The proposed improvements for the Project originated as a mitigation measure for the Tustin Legacy Project, which involves the redevelopment of the former Tustin Marine Corps Air Station as a mixed-use commercial, residential, and industrial project. As such, the City of Tustin agreed to partially fund the improvements on Warner Avenue between Main Street and Grand Avenue in the amount of $8,000,000; these funds were Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
received by the City of Santa Ana in 2012.
The construction scope of work includes street lighting, hardscaping, landscaping, irrigation, raised medians, sound walls, traffic signals, signing, striping, street pavement rehabilitation, and water and storm drain improvements. The Warner Avenue Protected Bike Lane Project has been identified in the City Council-approved Safe Mobility Santa Ana Plan (SMSA), Active Transportation Program (ATP), and Central Santa Ana Complete Streets Plan (CSACS). The project includes Class IV protected bicycle and pedestrian improvements aimed at enhancing safety and mobility for all users.
The City experiences significant flooding of roadways during intense rain events, which can have negative impacts on vehicle and pedestrian travel, business operations, and can cause property damage. The City’s 2018 Storm Drain Master Plan recommended numerous storm drain system improvements citywide in order to facilitate storm flows and reduce flooding including improvements on Warner Avenue.
This project features the upgrade of existing storm drain infrastructure along Warner Avenue, from Oak Street to Grand Avenue, which will connect to the newly constructed storm drain on Warner Avenue and Oak. The project also includes new drought tolerant landscaping, interpretive signage, and stormwater treatment devices. The goal of the project is to increase the capacity of the City’s storm drain system in the Delhi Channel Watershed to better facilitate storm flows.
Upon project completion, the City will offer remnant parcels for purchase and development in accordance with the requirements of the Surplus Land Act (SLA).
Proceeds from these sales will be returned to OCTA in accordance with the grant funding agreements.
Grant Funding
The City received $14,019,325 in grants for the design, right-of-way acquisition, and construction of the project from various agencies including Orange County Transportation Agency (OCTA), California State Transportation Department (Caltrans), and the California Department of Water Resources (DWR) (Federal/State/Regional).
Measure M2 Competitive funds were received from OCTA in the amount of $11,997,205, Prop 68 Floodplain, Management, Protection, and Risk Awareness (FMPRA) funds were received from DWR in the amount of $1,000,000, and Congestion Mitigation and Air Quality (CMAQ) were received from OCTA’s Bicycle Corridor Improvement Program (BCIP) in the amount of $1,022,120. The grants require that this project be completed by June 30, 2029. The balance of the Project funding comprise of transportation and drainage development impact fees, gas tax revenues and water capital improvement funds.
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
Project Advertisement and Contractor Procurement
To provide an opportunity for local vendors to submit bids, the City notified a total of 3,766 regional vendors via PlanetBids, many of which are Santa Ana based.
Furthermore, staff specifically reached out to Santa Ana vendors to encourage their participation in bids. A total of four bids were received. One bid was received from a Santa Ana contractor.
This project was advertised for bid in the Orange County Register newspaper and on PlanetBids on October 15, 2025. Bids were received electronically via PlanetBids on February 27, 2026. No bid protest was submitted by any of the bidders during the bid protest period.
A copy of construction plans, contracts, specifications, and all related reference materials (such as The Greenbook) are available for public review at the City’s Public Works Agency, Central Files office located in City Hall.
Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID
1 Los Angeles Engineering, Inc. Covina, CA $21,190,000
2 Vido Samarzich, Inc. Santa Ana, CA $21,548,007
3 SEMA Construction, Inc. Carlsbad, CA $22,041,714
4 Excel Paving Co. Long Beach, CA $28,998,993
A total of four bids were received and deemed responsive. Los Angeles Engineering, Inc. submitted the lowest responsive base bid in the amount of $21,190,000 (Exhibit 2).
As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to Los Angeles Engineering, Inc. (Exhibit 3).
Los Angeles Engineering, Inc. has previously performed work as a prime contractor in the City of Santa Ana within the past five years, including Bristol Street Improvements Phase 3A from Civic Center Drive to Washington Avenue. The Contractor has performed satisfactorily on this project and staff recommends awarding the construction contract to Los Angeles Engineering, Inc. for the construction of the Warner Avenue Street Improvement project.
Project Delivery
To deliver a complete project, in addition to the construction contract, the estimated total project delivery cost includes a budget allocation for construction administration, inspection, and testing. Construction administration and inspection may be performed by either staff or consultants and includes construction management, inspection of the Contractor’s work to ensure contract compliance, workmanship and quality, materials Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
testing, and implementation of the labor requirements.
Any of the allocated construction administration funds not spent are considered project savings and are returned to the respective fund balance upon close out of the project.
As indicated in the Cost Analysis and as summarized in the table below, the estimated total construction delivery cost of the project is $25,428,000.
Project Item Total
Construction Contract Bid Amount $21,190,000
Construction Administration $1,130,133
Inspection $706,333
Testing $282,534
Unanticipated or Unforeseen Work $2,119,000
TOTAL ESTIMATED CONSTRUCTION DELIVERY
COST $25,428,000
Project Schedule and Contract Time
The project completion date is October 2027, barring unforeseeable conditions such as rain, natural disasters, or other delays beyond the control of the City and of the Contractor. The project will be constructed concurrently with Phase 1 improvements such that both phases are completed by October 2027. The contract time for this project is 350 working days, as specified in the bid documents. Working days are counted in accordance with the City’s Standard Specifications, which exclude weekends, City- observed holidays, and inclement weather days that prevent work.
The actual completion date will depend on the contractor’s schedule, material procurement timelines, and any unforeseen delays. Based on a typical project timeline, the estimated project completion is provided below;
Project Milestones
Milestone Estimated
Completion
Notes
Administrative Startup April 2026 Contract execution, bonds, insurance
Material Procurement May 2026 Procurement may take place concurrently with construction
Contractor Mobilization May 2026 Start of construction activities Project Completion October 2027 Based on 350 working days Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
Project Phasing
The contractor will be constructing this project in the following phases:
1. Phase I – Soundwalls, temporary street lighting, potholing, utility abandonments/removals, storm drain, street lighting, traffic signal pole foundation, and BMP filtration units.
2. Phase II – Pole relocation construction by utility companies.
3. Phase III – Surface Improvements
Public Outreach
As part of standard community outreach practices, during the project design phase, staff coordinated with Delhi Neighborhood Association, schools, and businesses to present the project and collect community input. Upon Council approval of recommended actions, prior to start of construction, staff will notify Delhi Neighborhood Association, schools, and businesses of upcoming construction and distribute informational material including who to contact for additional information or to address issues of concern.
To ensure timely and effective communication, the following notification measures will be implemented prior to the start of construction:
Electronic message signs will be installed two weeks in advance of construction activities to provide early notice of the project’s start date, A project information sign will be posted at the construction site, including contact information for public inquiries,
Residents and businesses within 1,000 feet of the project limits will receive door hangers or mailed notifications at least two weeks before construction begins, A second round of notification will be issued 48 hours prior to the start of construction to residents and businesses adjacent to the limits of work, and The City will also disseminate information through its official website and social media platforms to keep the public informed of construction activities, including any lane closures.
The Contractor is required to issue construction notices to adjacent residents and businesses at least two weeks before construction begins. Additionally, the contractor is required to install signage at the project site indicating project details and contact information.
ENVIRONMENTAL IMPACT
On September 1, 2015, City Council approved the Warner Avenue Final Environmental Impact Statement (EIR) (SCH No. 2012101004). The Warner Protected Bike Lanes Project received Caltrans approval under the National Environmental Policy Act (NEPA); a Categorical Exemption (CE) was approved on December 30, 2019. Caltrans revalidated the NEPA/CEQA document on May 27, 2025. The project remains consistent with the EIR and CE (Exhibit 4).
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $25,428,000. With the approval of the requested appropriation adjustments, all funds will be available for expenditure in Fiscal Year 2025-26. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers into Fiscal Year 2026-2027 (Exhibit 5).
The proposed contract authorizes staff a maximum of 10% in construction contract change orders for unanticipated or unforeseen work. Staff will return to City Council for authorization and appropriation of additional funding if necessary.
A portion of the Transportation System Improvement Area B accumulated fund balance will be appropriated in the Transportation System Improvement Area B Tustin, Improvements Other Than Buildings expenditure account (No. 99217950-66220). The spendable portion of the fund balance is estimated to be $716,021, as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $709,239.
A portion of the Local Area Drainage Area IV accumulated fund balance will be appropriated for spending in the Public Works-Storm Drain Construction, Improvements Other Than Buildings expenditure account (No. 22417660-66220). The spendable portion of the fund balance is estimated to be $218,222 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $124,549.
A portion of the Local Area Drainage Area VI accumulated fund balance will be appropriated for spending in the Public Works-Storm Drain Construction, Improvements Other Than Buildings expenditure account (No. 22617660-66220). The spendable portion of the fund balance is estimated to be $788,950 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $788,948.
A portion of the New Transportation System Improvement Area E accumulated fund balance will be appropriated for spending in the New Transportation System Improvement Area E, Improvements Other Than Buildings expenditure account (No. 03417660-66220). The spendable portion of the fund balance is estimated to be $45,634 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $45,634.
A portion of the New Transportation System Improvement Area F accumulated fund balance will be appropriated for spending in the New Transportation System Improvement Area F, Improvements Other Than Buildings expenditure account (No. 03517660-66220). The spendable portion of the fund balance is estimated to be $53,349 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $53,349.
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
Fiscal
Year
Accounting
Unit –
Account No.
(Project No.)
Fund Description
Accounting Unit,
Account
Description
Amount
CURRENT BUDGET
2025-26
03217663-
66220
(18-6901)
Measure M-Street
Construction
Measure M2
Competitive Street,
Improvements
Other Than
Buildings
$11,997,205
2025-26
03417660-
66220
(18-6901)
New
Transportation
System
Improvement Area
E
New
Transportation
System
Improvement Area
E, Improvements
Other Than
Buildings
$252,385
2025-26
05917660-
66220
(20-6971)
Select Street
Construction
Select Street
Construction,
Improvements
Other Than
Buildings
$1,022,120
2025-26
05917668-
66220
(18-6901)
Select Street
Construction
Warner Ave –
Tustin CFD,
Improvements
Other Than
Buildings
$1,332,131
2025-26
06617647-
66301
(26-6427)
Water Acquisition
& Construction
Water Utility
Capital Projects,
Water Capital
Project
$3,002,350
2025-26
16417640-
66220
(23-6628)
PWA Enterprise
Capital Grants
Public Works –
Water Quality and
Control,
Improvements
Other Than
Buildings
$1,000,000
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
Fiscal
Year
Accounting
Unit –
Account No.
(Project No.)
Fund Description
Accounting Unit,
Account
Description
Amount
2025-26
99217950-
66220
(20-6971)
Transportation
System
Improvement Aut
Area B
Transportation
System
Improvement Aut
Area B,
Improvements
Other Than
Buildings
$100,000
2025-26
99217950-
66220
(18-6901)
Transportation
System
Improvement Aut
Area B
Transportation
System
Improvement Aut
Area B,
Improvements
Other Than
Buildings
$5,000,000
APPROPRIATION ADJUSTMENT
2025-26
99217950-
66220
(18-6901)
Transportation
System
Improvement Aut
Area B
Transportation
System
Improvement Aut
Area B,
Improvements
Other Than
Buildings
$709,239
2025-26
22417660-
66220
(23-6628)
Local Drainage
Area IV
Pub Wks – Storm
Drain Contruction,
Improvements
Other Than
Buildings
$124,549
2025-26
22617660-
66220
(23-6628)
Local Drainage
Area VI
Pub Wks – Storm
Drain
Construction,
Improvements
Other Than
Buildings
$788,948
Award a Construction Contract to Los Angeles Engineering, Inc. for the Construction of the Warner Avenue Improvements (Oak Street to Grand Avenue) Project April 21, 2026
5 7
0 3
Fiscal
Year
Accounting
Unit –
Account No.
(Project No.)
Fund Description
Accounting Unit,
Account
Description
Amount
2025-26
03417660-
66220
(18-6901)
New
Transportation
System
Improvement Area
E
Pub Wks – Storm
Drain
Construction,
Improvements
Other Than
Buildings
$45,634
2025-26
03517660-
66220
(18-6901)
New
Transportation
System
Improvement Area
F
Pub Wks – Storm
Drain
Construction,
Improvements
Other Than
Buildings
$53,439
TOTAL $25,428,000
EXHIBIT(S)
1. Location Map
2. Bid Proposal
3. Construction Contract
4. Environmental Determination
5. Capital Improvement Project Worksheet
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager