Staff Report
City Council
Item No. 3.F
Meeting Date: July 9, 2025
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Fiscal Year 2024-2025 Dream Homes Neighborhood Area and East Palm Canyon Drive Pavement
Rehabilitation Projects
RECOMMENDATION:
To accept and approve the Fiscal Year 2024-2025 Dream Homes Neighborhood Area (C08693) and East Palm Canyon Drive (C08694) Pavement Rehabilitation Projects as complete; authorize the City Manager to file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Vance Corporation upon expiration of the notice of completion.
BACKGROUND:
On February 26, 2025, the City Council awarded a construction contract to Vance Corporation in the amount of $481,836.28. In addition, a 20% contingency of $96,373.72 was approved to address any unforeseen construction conditions, bringing the total authorized construction budget to $578,210.00.
The project addressed infrastructure improvements in two different areas of the city: the Dream Homes Neighborhood and East Palm Canyon Drive.
In the Dream Homes Neighborhood, the project included the reconstruction of asphalt pavement on three streets that provide direct access to Esperanza Park: Chia Place, Mia Place, and San Diego Drive. To improve pedestrian safety and accessibility, new crosswalks and directional signage were installed on Chia Place and Mia Place. In addition, drainage improvements were completed at the intersection of Laguna Court and Mission Court. These improvements involved the reconstruction of a cross gutter, associated spandrels, and curb ramps, to address stormwater drainage issues and reduce the risk of future flooding.
On East Palm Canyon Drive, the work involved the reconstruction of asphalt pavement in areas requiring structural repair beyond standard slurry sealing (REAS). Improvements were completed along the segment between Canyon Plaza West and Canyon Plaza East/El Dorado, including two left-turn lanes providing access to Perez Road.
For both project areas, pavement striping was restored to match existing configurations, and water utility infrastructure was adjusted to conform with final grade elevations.
DISCUSSION:
Construction started on April 06, 2025, and was completed on May 23, 2025.
As a result of the pavement rehabilitation project, the condition of the roadways has improved significantly. The table below highlights the pavement condition ratings before and after reconstruction:
Street Section PCI
Before
PCI
After
San Diego Drive from Mia Place to Chia Place 58 97
Mia Place from San Diego to Esperanza Park 59 97
Chia Place from San Diego to Esperanza Park 70 97
E. Palm Canyon Drive from Canyon Plaza to Canyon Plaza/El Dorado 39 95 City staff reviewed and inspected the improvements and found the projects were 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 filing an NOC 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 (35) day period has expired, and provided no claims or liens are received, the city can release retention funds.
City staff recommends the City Council accept and approve the Fiscal Year 2024-2025 Dream Homes Neighborhood Area (C08693) and East Palm Canyon Drive (C08694) Pavement Rehabilitation Projects as complete; authorize the City Manager to file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Vance Corporation upon expiration of the notice of completion.
FISCAL IMPACT:
Authorized Construction Funding
The table below outlines the construction funding approved by the City Council on February 26, 2025.
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME or
ONGOING
2024-2025 AD 2004-01 353-100-150- C08693 $310,820.00 ONE TIME 156-8800-8802
2024-2025 MOE 100-100-150-
156-8800-8802 C08694 $267,390.00 ONE TIME
2024-2025 Total $578,210.00
Final Construction Cost
The final construction expenditure with Vance Corporation was in the amount of $547,409.96, which includes change orders in the amount of $65,573.68 The total final contract cost is summarized below:
Base Contract Amount $481,836.28
Change Orders $65,573.68
Final Construction Cost $547,409.96
Remaining Authorized Construction Funds:
The project was completed within the authorized construction funding, resulting in a remaining balance of $30,800.04.
Authorized Construction Funding $578,210.00
Final Construction Costs $547,409.96
Balance Remaining $ 30,800.04
The remaining balance will be returned to the funding sources and made available for allocation to other programmed projects within the city’s Five-Year Capital Improvement Program (CIP), based on the unspent portion of each fund per project.
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $27,370.50 will be released to Vance Corporation after 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 – Vance Corporation