Staff Report
City Council
Item No. 4.G
Meeting Date: August 13, 2025
From: John A. Corella, Director of Public Works
Title: Notice of Completion for Fiscal Year 2024-2025 Rubberized Emulsion Aggregate Slurry (REAS) Projects
RECOMMENDATION:
To accept and approve the following Rubberized Emulsion Aggregate Slurry (REAS) projects: East Palm Canyon Drive (C08695), Assessment District (AD) 86-5 neighborhood streets (C08696), Vista Chino Drive (C08697) and Date Palm Drive (C08698), as final; and, authorize the City Manager to execute and file a notice of completion with the Riverside County Recorder’s Office (County); and, authorize the release of retention funds to Petrochem Materials Innovation, LLC (PMI) upon expiration of the notice of completion (NOC).
BACKGROUND:
On March 26, 2025, the City Council approved a construction contract with PMI in the amount of $1,441,901.29, with a 15% contingency of $217,098.71 for unforeseen construction circumstances, thereby making the total construction budget $1,659,000 for the project.
The scope of the project consisted of the application of REAS on East Palm Canyon Drive, AD 86-5 neighborhood streets, Vista Chino Drive and Date Palm Drive, including traffic control, crack seal, and striping replacement.
DISCUSSION:
Construction started on May 27, 2025, and was completed on July 18, 2025.
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 to 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 that are withheld from progress payments pending satisfactory completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires that an NOC be filed with the County. 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 35-day period has expired, and provided no claims or liens are received, the city can release retention funds.
City staff recommend that the City Council accept and approve the following REAS projects:
East Palm Canyon Drive (C08695), Assessment District (AD) 86-5 neighborhood streets (C08696), Vista Chino Drive (C08697) and Date Palm Drive (C08698), as final; and, 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 PMI upon expiration of the NOC.
FISCAL IMPACT:
The fiscal impact of the construction contract with PMI is as follows:
Authorized Construction Funding
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT
ONE TIME
or
ONGOING
2024-
2025
East Palm Canyon REAS
(MOE)
100-100-150-
156-8800-8802 C08695 $ 345,231.73 ONE TIME
2024-
2025
Assessment District 86-5
Neighborhood Streets
REAS (AD 86-5)
344-100-150-
156-8800-8802 C08696 $ 213,012.50 ONE TIME
2024-
2025
Vista Chino Drive REAS
(Measure A)
243-100-150-
156-8800-8802 C08697 $ 629,026.65 ONE TIME
2024-
2025
Date Palm Drive REAS
(MOE)
100-100-150-
156-8800-8802 C08698 $ 254,630.41 ONE TIME
2024-
2025 15% Contingency XXX-100-150-
156-8800-8802
According to
Project Funding
Above
$ 217,098.71 ONE TIME
Total $1,659,000.00
Final Construction Costs
The final construction expenditures with Petrochem Materials Innovation were in the amount of $1,369,180.55 which includes change orders in the amount of $6,050.00.
The total final contract cost is summarized below:
Contract Work $1,363,130.55
Change Orders $6,050.00
Final Construction Cost $1,369,180.55
Remaining Authorized Construction Funds:
The project was completed within the authorized construction funding, resulting in a remaining balance of $289,819.45.
Authorized Construction Funding $1.659,000.00
Final Construction Costs $1,369,180.55
Balance Remaining $ 289,819.45
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.
The final invoice (5% retention) in the amount of $68,459.03 will be released to Petrochem Materials Innovation, 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 - PMI