Staff Report
City Council
Item No. 6.A
Meeting Date: October 6, 2025
From: John A. Corella, Director Public Works
Title: Construction Contract Award to Vance Corporation for the Panorama Neighborhood Streets, Corta Road, and Alcita Road Pavement Rehabilitation Projects (C02605 & C02606)
RECOMMENDATION:
To award a construction contract to Vance Corporation in the amount of $919,715.40 for the Panorama Neighborhood Streets Pavement Rehabilitation Project (C02605), and Corta Road and Alcita Road Pavement Rehabilitation Project (C02606); and, approve a twenty percent (20%) contingency in the amount of $183,943.08 for unforeseeable construction costs, thereby bringing the total project budget to the amount of $1,103,658.48; and, authorize the City Manager to execute the required contract documents; and, authorize the City Engineer to request bonds and insurance for the project, and issue the notice to proceed.
BACKGROUND:
On November 5, 2024, Cathedral City voters approved Measure W, enacting a local ½-cent transactions and use tax to provide dedicated funding for community priorities. Among its key objectives, the measure addresses long-standing concerns about the condition of neighborhood streets, a need identified through city assessments and community feedback.
Measure W is expected to generate approximately $5 million in annual revenue, with about $1 million (or 20%) specifically allocated to support ongoing residential street maintenance and rehabilitation.
On May 28, 2025, the City Council adopted the FY 2025–2026 and FY 2026–2027 Biennial Budget, which includes the 5-Year Capital Improvement Program (CIP). Measure W funding was identified as an additional source supporting continued investment in neighborhood infrastructure.
In alignment with this commitment, the following street improvement projects have been programmed in the FY 2025–2026 CIP budget to receive Measure W funds:
• Panorama Neighborhood Streets Grinding and REAS (C02605) • Corta and Alcita Road Pavement Reconstruction (C02606) The proposed improvements for the Panorama Neighborhood Streets project include road surface restriping, micro milling, crack sealing, pavement resurfacing on the edges of the road, and the application of Rubberized Emulsion Aggregate Slurry (REAS) on the following streets:
Los Gatos Road, from Val Yermo Trail to Fortuna Road (PCI 59) Panorama Road, from Vista Chino to Avenida Diosa (PCI 50) Durango Road, from Avenida La Paz to Avenida La Vista (PCI 57) Within Assessment District 85-1, proposed improvements include road surface restriping, pavement resurfacing, and adjustments to water facility on the following streets:
Corta Road, from Pauline Avenue to approximately 625 feet east of Landau Boulevard (PCI 58)
Alcita Road, from Avenida Maravilla to the west end (PCI 50) City staff prepared plans, specifications, and cost estimates (PS&E) for both projects in- house, with final documents completed in July 2025.
DISCUSSION:
On August 17, 2025, the city advertised an Invitation to Bid for Bid No. B25-102E, seeking qualified contractors to perform the scope of work described in the plans and specifications for both the Panorama Neighborhood and Corta and Alcita Roads street rehabilitation projects. The bid documents also included an additive alternate for the adjustment (raising or lowering) of Coachella Valley Water District (CVWD) facilities (valve and manhole lids) to match new pavement elevations (costs borne by CVWD).
The bid solicitation was made available to contractors for eighteen (18) calendar days and was advertised in the following locations:
The Desert Sun- Published on August 17, 2025
PlanIt Print Works- From August 15, 2025, until September 4, 2025 City’s Website- From August 15, 2025, until September 4, 2025 On September 4, 2025, the city received seven (7) bid proposals. The following table ranks each qualified bidder by the total bid amount.
RANK CONTRACTOR AMOUNT
1 Vance Corporation – Beaumont, CA $ 919,715.40
2 Hardy & Harper, Inc. – Lake Forest, CA $ 929,449.00 3 Matich Corporation – San Bernardino, CA $ 938,738.00 4 The R.J. Noble Company – Orange, CA $ 945,713.50
5 Onyx Paving Company, Inc. – Anaheim, CA $ 963,000.00 6 Granite Construction Company – Indio, CA $ 1,000,000.00 7 LCR Earthwork & Engineering Corp. – Jurupa Valley, CA $ 1,019,324.90 The bid tabulation prepared by the Engineering Division is attached to this report for reference.
Following bid review, CVWD rejected the cost proposal for the additive alternate submitted by the lowest bidder. Instead, CVWD has elected to complete that work separately using its own on-call contractor during the construction phase. As a result, the city will not include the CVWD-related water facility adjustments in this contract.
Based on the bids received, and taking CVWD’s decision into consideration, the lowest responsive and responsible bidder who yields the lowest contract price is Vance Corporation, from Beaumont, CA.
Engineering staff is recommending the City Council award a construction contract to Vance Corporation in the amount of $919,715.40 for the Panorama Neighborhood Streets Pavement Rehabilitation Project (C02605), and Corta Road and Alcita Road Pavement Rehabilitation Project (C02606); and, approve a twenty percent (20%) contingency in the amount of $183,943.08 for unforeseeable construction costs, thereby bringing the total project budget to the amount of $1,103,658.48; and, authorize the City Manager to execute the required contract documents; and, authorize the City Engineer to request bonds and insurance for the project, and issue the notice to proceed.
All construction work will be performed within the existing public right-of-way. Construction is expected to start in November 2025 and is estimated to be completed by December 2025.
Environmental Analysis
These Projects are categorically excluded under the National Environmental Policy Act (NEPA) process for federally funded projects per 24CFR58.35 (a)(1) and Categorically Exempt under the California Environmental Quality Act (CEQA), Section 15301 for “Existing Facilities”.
FISCAL IMPACT:
FY 2025-2026 Capital Improvement Program (CIP) Budget
The FY 2025–2026 Capital Improvement Program includes two street improvement projects with a combined estimated construction cost of $1,325,000.00, as shown below:
Panorama Neighborhood Grinding and REAS (Project No. C02605) oEstimated Construction Cost: $490,000.00
oFunding Source: Measure W
Corta and Alcita Road Pavement Reconstruction (Project No. C02606) oEstimated Construction Cost: $835,000.00
oFunding Sources: Measure W ($510,000.00) and Measure A ($325,000.00) The combined estimated construction cost for both projects, as programmed in the CIP, is as follows:
Panorama Neighborhood Streets $ 490,000.00
Corta Road and Alcita Road $ 835,000.00
Combined Estimated Construction Cost $ 1,325,000.00
Construction Bid and Budget
The city received a combined base bid of $919,715.40 from Vance Corporation for both projects. The base bid amounts by project are as follows:
Panorama Neighborhood Streets (C02605) $ 533,076.22
Corta Road and Alcita Road (C02606) $ 386,639.18
Total Base Bid $ 919,715.40
Staff recommend a 20% contingency in the amount of $183,943.08, to account for potential unforeseen construction costs, thereby bringing the total construction budget to $1,103,658.48, as shown below:
Vance Corporation Base Bid $ 919,715.40
20% Contingency $ 183,943.08
Total Construction Budget $ 1,103,658.48
Note: The total base bid amount is lower than the estimated construction cost that was programmed in the FY 2025-26 Capital Improvement Program (CIP) Budget.
Proposed Funding Sources
Staff propose funding the construction budget through the following funding sources as detailed below:
a. The base bid for the Panorama Neighborhood Streets Project (C02605) is $533,076.22. It will be funded with $498,076.22 from Measure W and $35,000 from Assessment District (AD) 88-3 funds.
AD 88-3 funds can only be used in the Panorama Neighborhood area. Staff recommend using $35,000 from AD 88-3 to supplement Measure W funding. This approach helps preserve flexible funds such as Measure W and Measure A for future projects in other areas of the city.
Assessment District 88-3 Funds $ 35,000.00
Measure W $498,076.22
Panorama Neighborhood Streets Project $533,076.22
b. The Corta Road and Alcita Road Project (C02606) has a base bid cost of $386,639.18, which will be fully funded by Measure W.
Measure W $386,639.18
Corta Road and Alcita Road Project $386,639.18
c. The 20% construction contingency, totaling $183,943.48, will be funded through Measure A.
Measure A $183,943.08
Total Contingency (20%) $183,943.08
Based on the proposed funding sources, the total construction budget of $1,103,658.48 is supported without requiring any additional appropriations beyond those identified in the FY 2025–2026 CIP.
Measure W will fund most of the construction costs with a total amount of $884,715.40 (made up of $498,076.22 and $386,639.18).
Measure A will fund the full contingency amount of $183,943.48.
Additionally, AD 88-3 funds in the amount of $35,000.00, will supplement the Panorama Neighborhood Streets project thereby reducing the allocation from Measure W.
The following table summarizes the budget allocations for the construction of the projects.
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT ONE TIME ON
GOING
2025-2026 Assessment
District 88-3
347-100-150-
156-8800-8802 C02605 $35,000.00 One Time
2025-2026 Measure W 151-100-150-
156-8800-8802 C02605 $498,076.22 One Time
2025-2026 Measure W 151-100-150-
156-8800-8802 C02606 $386,639.18 One Time
2025-2026
Measure A
(20%
Contingency)
243-100-150-
156-8800-8802
C02605
C02606 $183,943.08 One Time
2025-2026 Total $1,103,658.48
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. PNCA – Contract
2. PNCA – Bid Tabulation
3. PNCA – Vicinity Map