BACKGROUND:
Since 2015, as part of Cathedral City’s multi-year Pavement Management Program (PMP), the City of Cathedral City has used Type II, Rubberized Emulsion Aggregate Slurry (REAS) as its primary pavement maintenance surface treatment to preserve the asphalt on public streets because of its durability and longevity. REAS is a surface application used to preserve five to seven-year-old streets in good condition and to prolong the life of older streets that will need reconstruction within five to seven years.
On March 23, 2022, City Council approved a contract with Petrochem Materials Innovation LLC. (PMI) to supply and apply Type II REAS on various streets in the Century Park Neighborhood, on Ramon Road east of Date Palm Drive to Da Vall Drive City limits, and on Corral Road east of Cathedral Canyon Drive. The Project included the REAS work, traffic control, crack sealing, and striping replacement.
City Council acceptance is required to approve the Project’s final contract amount and release retention funds. Retention funds are monies earned by the Contractor that are withheld from progress payments pending satisfactory completion and final acceptance of the Project. City Staff reviewed and inspected the improvements and found the Project was built in accordance with all contract requirements, and therefore recommends acceptance of the Project as complete.
City Council acceptance of the Project requires that a Notice of Completion (NOC) be filed with the Riverside County Recorder’s office. The NOC is a written notice issued by the owner of a Project, or their agent, to notify concerned parties that all work on the Project has been completed. This notice also sets the period, which is 30 days from the date the NOC is filed, within which concerned parties may exercise their lien rights against one another. Once the thirty-day period has expired, and provided no claims or liens are received, the City can release retention funds.
DISCUSSION:
The City of Cathedral City executed a construction contract with PMI for the contract bid amount of $944,045 with a 15% contingency of $141,608 for unforeseen construction circumstances, inspection and other technical services related to the Project, thereby making the total construction budget $1,085,653 for the Project.
However, no contract change orders were required for this Project.
PMI was issued the notice to proceed on March 24, 2022, 30 working days, scheduled to be completed by April 26, 2022. However, PMI completed all the work required for the Project on June 8, 2022, due to communication company contractors doing utility work in the same area of the Century Park Neighborhood. Staff does not recommend assessing liquidated damages on this Project. The Project is now ready for acceptance by the City Council.
FISCAL IMPACT:
The total contract amount for PMI, including all additions and subtractions for constructed quantities, came to $919,106.90. Therefore, the comparison between actual budget and charges are as follows:
Council Authorization Project
Budget Actual Charges Remaining
Budget
Original Contract $944,045.00 $919,106.90 $24,938.10
Contingency $141,608.00 $0.00 $141,608.00
Change Orders $0.00 $0.00 $0.00
Payments to Date $873,151.55 $0.00
Retention Due $45,955.35
The current retainage, $45,955.35, and the final invoice amount is to be paid to PMI, will be released 30 days from the date that the NOC is filed should there be no claims or discrepancies in the work completed.