Staff Report
City Council
Item No. 4.O
Meeting Date: September 10, 2025
From: John A. Corella, Director of Public Works
Title: Service Agreement for REAS Improvements for the Grove Street Apartments (DR No. 23-001)
RECOMMENDATION:
To approve a service agreement for the completion of off-site Rubberized Emulsion Aggregate Slurry (REAS) improvements with Silver Rock Development, Inc. (Developer), for Design Review (DR) No. 23-001 (Grove Street Apartments); and, authorize the City Manager and City Clerk to execute the service agreement, in a form approved by the City Attorney.
BACKGROUND:
DR No. 23-001 for the development of a 19-unit residential apartment, including site improvements on an approximately 0.68-acre site within the Downtown Residential Neighborhood (DRN) Zoning District, was approved by the Planning Commission in March 2024. The conditions of approval for DR No. 23-001 can be referenced in Attachment 1.
DR No. 23-001 Section 4.37 “PUBLIC IMPROVEMENTS” of the conditions of approval requires the developer to crack seal and apply REAS on Cove Lane and Grove Street from the centerline to the DR’s curb face (approximately 14 feet) along the entire length of the DR’s frontages (west to east DR’s property lines). The off-site improvement vicinity map is attached as Attachment 2.
DISCUSSION:
The developer, Silver Rock Development, Inc. (Mr. Ethan Mezrahi) is constructing buildings, outdoor parking and other outdoor amenities improvements, and has determined that it requires construction services to comply with Section 4.37 “PUBLIC IMPROVEMENTS” of the conditions of approval, to apply REAS on the Cove Lane and Grove Street frontages.
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 Cove Lane and Grove Street 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 DR No. 23-001.
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 Silver Rock Development Inc. 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 Cove Lane and Grove Street, 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 Silver Rock Development, Inc., for DR No. 23-001 (Grove Street Apartments); 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. DR No. 23-001
2. Grove Street Apartments Off-Site Improvements Vicinity Map
3. Silver Rock Development, Inc. – Service Agreement