Staff Report
City Council
Item No. 4.N
Meeting Date: September 10, 2025
From: John A. Corella, Director of Public Works
Title: Service Agreement for REAS Improvements for the Cathedral Cove Center (PUD No. 21-001)
RECOMMENDATION:
To approve a service agreement for the completion of off-site Rubberized Emulsion Aggregate Slurry (REAS) improvements with Cathedral Cove 1.0 LLC (Developer), for Planned Unit Development (PUD) No. 21-001 (Cathedral Cove Center); and authorize the City Manager and City Clerk to execute the service agreement, in a form approved by the City Attorney.
BACKGROUND:
PUD No. 21-001 for the development of a mix of commercial and residential uses, including restaurants, retail, a convenience market and fueling station, and future multi-family residential on an approximately 13.93-acre site within the Downtown Residential Neighborhood (DRN) Zoning District, was approved on September 28, 2022, by the Planning Commission. The conditions of approval for PUD No. 21-001 can be referenced in Attachment 1.
PUD No. 21-001 Section 4.41 “PUBLIC IMPROVEMENTS” of the conditions of approval requires the developer to apply Type II REAS from the gutter pan to the centerline of improvements along the entire East Palm Canyon Drive Phase I frontage (Development Project). Phase I includes Parcels No. 1 through 5 and APN 674-500-038 of Parcel Map No. 37876 (East Palm Canyon Drive from approximately 300 FT east of Van Fleet Street to 50 FT east of Date Palm Drive). The off-site improvement vicinity map is attached as Attachment
2. On May 24, 2023, the City Council approved an improvement agreement for parcel map No. 37876 with the Cathedral Cove 1.0 LLC, which outlines developer’s obligations to construct public and private improvements.
On December 10, 2024, the City Council approved Amendment No.1 to the improvement agreement, which extended the date to complete all public and private improvements by October 26, 2025, or by the date of the final City Building Division inspection.
DISCUSSION:
The developer, Cathedral Cove 1.0 LLC (Ms. Vasanthi Okuma) is constructing the commercial retail center on the southerly side of East Palm Canyon Drive and has determined that it requires construction services to comply with Section 4.41 “PUBLIC IMPROVEMENTS” of the conditions of approval, to apply REAS on East Palm Canyon Drive frontage of Phase I. The developer has requested assistance from the city to incorporate these public improvements in the city-led annual REAS project.
The city conducts REAS improvement projects within the jurisdictional boundaries of city and can include the improvements on East Palm Canyon Drive with a city-led REAS project. The developer would benefit from the cost savings associated with a larger improvement project and desires to work with the city to construct the REAS improvements required under the conditions of approval for PUD No. 21-001.
Per the city’s adopted biennial budget, the Engineering Division intends to complete a REAS improvement project within fiscal year 2025-2026.
City staff are proposing to execute a service agreement with Cathedral Cove 1.0 LLC providing REAS application and construction management services on a deposit basis. The service agreement defines the terms and conditions under which the city will be the lead agency on behalf of the developer for the overall implementation of applying REAS on East Palm Canyon Drive Phase I of the development, and the developer will fund one hundred percent (100%) of the cost prior to the commencement of the work upon city request. A copy of the service agreement (Attachment 3) is attached for reference Staff are recommending the City Council approve a service agreement for the completion of off-site REAS improvements with Cathedral Cove 1.0 LLC, for PUD No. 21-001 (Cathedral Cove Center); and authorize the City Manager and City Clerk to execute the service agreement, in a form approved by the City Attorney.
FISCAL IMPACT:
There is no fiscal impact with this service agreement.
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. PUD No. 21-001
2. Cathedral Cove Center Off-Site Improvements Vicinity Map
3. Cathedral Cove 1.0 LLC – Service Agreement