Staff Report
City Council
Item No. 4.E
Meeting Date: April 23, 2025
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Cove Crack Repair Project (CIP No. C08675) RECOMMENDATION:
To accept and approve the Cove Crack Repair Project (C08675) as final, authorize the City Manager to file a notice of completion with the Riverside County Recorder’s Office, and authorize the release of retention funds to LCR Earthwork and Engineering, Corp. upon expiration of the notice of completion.
BACKGROUND:
On March 27, 2024, the City Council approved a construction contract with LCR Earthwork and Engineering, Corp. (LCR) in the amount of $893,803.35 with a twelve percent (12%) contingency of $106,196.65 for unforeseen construction costs, thereby bringing the total construction budget to $1,000,000.
The project consisted of repairing and sealing asphalt cracks in the Cove neighborhood using different techniques for two separate applications. Approximately 744 wide transversal cracks were removed and repaired at full asphalt depth. For smaller cracks, typical crack seal treatment was applied, improving approximately 300,000 linear feet of asphalt surface.
DISCUSSION:
Construction started on June 03, 2024, and was completed on March 14, 2025.
City staff reviewed and inspected the improvements and found the project was built in accordance with all contract requirements and therefore recommends 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 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 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.
City staff recommends City Council accept and approve the Cove Crack Repair project (C08675) as final, authorize the City Manager to file a notice of completion with the Riverside County Recorder’s Office, and authorize the release of retention funds to LCR Earthwork and Engineering, Corp. upon expiration of the notice of completion.
FISCAL IMPACT:
Authorized Construction Funding
FISCAL YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT ONE TIME or
ONGOING
2024-2025 AD 2004-02 354-100-150-
156-8800-8802 C08675 $1,000,000.00 ONE TIME
2024-2025 Total $1,000,000.00
The final construction expenditures with LCR total $926,666.45, which includes a change order in the amount of $32,863.10.
The total final contract cost is summarized below:
Base Contract Amount $893,803.35
Change Orders $32,863.10
Final Construction Cost $926,666.45
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $46,333.32 will be released to LCR in thirty-five (35) days from the date the NOC is filed.
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 - LCR Earthworks and Engineering Corp