Staff Report
City Council
Item No. 3.D
Meeting Date: March 26, 2025
From: John A. Corella, Director of Public Works
Title: Notice of Completion for HSIP Cycle 9B: Varner Road Safety Improvements Project (C08751)
RECOMMENDATION:
To accept and approve the Highway Safety Improvements Program (HSIP) Cycle 9B, Varner Road Safety Improvements Project (C08751), as complete; authorize the City Manager to execute and file a notice of completion with the Riverside County Recorder’s Office; and authorize the release of retention funds to Granite Construction Company, upon expiration of the notice of completion (NOC).
BACKGROUND:
On April 24, 2024, the City Council approved the agreement with Willdan Engineering (Willdan) to perform construction engineering services for the HSIP Cycle 9B Varner Road Safety Improvements Project.
On September 11, 2024, the City Council approved a construction contract with Granite Construction Company (Granite), in the amount of $743,000 with a fifteen percent (15%) contingency in the amount of $111,450 for unforeseen construction costs, thereby making the total encumbrance $854,450.
The project consisted of the installation of centerline rumble strips, flashing stop signs and guardrail along Varner Road. The project area was along Varner Road from Mountain View Road to approximately 1 mile east of Date Palm Drive.
DISCUSSION:
Construction started on November 18, 2024, and was completed on February 24, 2025.
Willdan and city staff reviewed and inspected the improvements and found the project was built in accordance with all contract requirements and therefore recommend the City Council accept the project as complete.
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 withheld from progress payments pending satisfactory completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires an NOC be filed with the Riverside County Recorder’s Office. The NOC is a written notice issued by the owner of the project, or their agent, to notify concerned parties that all work on the project has been completed. This notice also sets a period of thirty-five (35) days from the date the NOC is filed, within which concerned parties may exercise their lien rights against one another. Once the thirty-five-day period has expired, and provided no claims or liens are received, the city can release retention funds to the contractor.
City staff recommends the City Council to accept and approve the Highway Safety Improvements Program (HSIP) Cycle 9B, Varner Road Safety Improvements Project (C08751), as complete; authorize the City Manager to execute and file a notice of completion with the Riverside County Recorder’s Office; and authorize the release of retention funds to Granite Construction Company, upon expiration of the notice of completion (NOC).
FISCAL IMPACT:
The fiscal impact of the construction contract with Granite Construction Company is as follows:
Authorized Construction Funding
FISCAL YEAR DESCRIPTION GENERAL LEDGER
ACCOUNT CODES
PROJECT
CODE AMOUNT
ONE TIME
or
ONGOING
2024-2025 HSIP 9B Fund 331-100-150-156-
8800-8802 C08751 $780,785 ONE TIME
2024-2025 Measure A Funds 243-100-150-156-
8800-8802 C08751 $ 73,665 ONE TIME
Total $854,450
Final Construction Cost
The final construction expenditures with Granite Construction Company were in the amount of $811,771.94, which includes change orders in the amount of $68,771.94.
The total final contract cost is summarized below:
Base Contract Amount $743,000.00
Change Orders $68,771.94
Final Construction Cost $811,771.94
The final invoice (5% retention) in the amount of $40,588.60 will be released to Granite Construction Company, thirty-five (35) days from the date that the NOC is filed should there be no claims or discrepancies in the work completed.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
1. Notice of Completion - Granite Construction Company