Staff Report
City Council
Item No. 3.E
Meeting Date: January 14, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the SB 821 - Perez Road Class IV Separated Bikeway Project (C08673)
RECOMMENDATION:
To accept and approve the Senate Bill (SB) 821 - Perez Road Class IV Separated Bikeway Project (C08673) as complete; 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 Union Pavement Services (UPS), Inc., upon expiration of the notice of completion.
BACKGROUND:
At the City Council meeting on September 10, 2025, the City Council approved a construction contract with UPS (Contractor) in the amount of $249,590 with a twenty-five percent (25%) contingency in the amount of $62,410 for unforeseen construction costs, thereby making the total encumbrance $312,000.
At the same City Council meeting, the City Council authorized the City Engineer to execute a purchase order in the amount of $67,250.68, for the procurement of K71 bollards with Zumar Industries Inc.
The project consisted of the application of Rubberized Emulsion Aggregate Slurry (REAS) to rehabilitate the pavement, and the installation of a Class IV Separated Bikeway using K71 bollards as the physical separation between bicyclist and vehicular traffic. The project area extended along Perez Road from Cathedral Canyon Drive to Date Palm Drive, approximately
0.6 miles.
DISCUSSION:
Construction started on October 19, 2025, and was completed on November 14, 2025.
City staff reviewed and inspected the improvements and confirmed the project was built in accordance with all contract requirements and therefore recommends 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 that were withheld from progress payments pending satisfactory completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires the NOC to be filed with the Riverside County Recorder’s Office. The NOC is a written notice issued by the owner of the project, or their agent, to notify concerned parties that all work on the project has been completed. This notice also sets a period of 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-day period has expired, and provided no claims or liens are received, the city can release retention funds to the contractor.
City staff recommends the City Council to accept and approve the Senate Bill (SB) 821 – Perez Road Class IV Separated Bikeway Project (C08673), as complete; 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 Union Pavement Services, Inc., upon expiration of the notice of completion.
FISCAL IMPACT:
The fiscal impact of the construction contract with Union Pavement Services, Inc., is as follows:
Authorized Construction Funding
FISCAL
YEAR
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME
or
ONGOING
2025-2026 TDA – SB 821 Fund
(75%)
240-100-150-
156-8800-8802 C08673 $284,438.01 ONE TIME
2025-2026 Measure A
(25%)
243-100-150-
156-8800-8802 C08673 $94,812.67 ONE TIME
2025-2026 Total $379,250.68
Final Construction Cost
a) Construction Contract - Union Pavement Services, Inc.
The construction expenditures with UPS Inc. were in the amount of $266,396.94, which includes change orders in the amount of $16,806.94.
The total construction contract cost is summarized below:
Base Contract Amount $249,590.00
Change Orders $16,806.94
Total Construction Contract Cost $266,396.94
The final invoice (5% retention) in the amount of $13,319.85 will be released to Union Pavement Services, Inc., thirty-five (35) days from the date that the NOC is filed should there be no claims or discrepancies in the work completed. b) Equipment – Zumar Industries Inc.
Additionally, K71 bollards were purchased from Zumar Industries Inc. in the amount of $67,250.68.
The final construction cost is $333,647.62 as summarized below:
Construction Contract UPS Inc. $266,396.94
Equipment Zumar Ind. Inc $ 67,250.68
Final Construction Cost $333,647.62
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 – Union Pavement Services, Inc.