Staff Report
City Council
Item No. 3.F
Meeting
Date:
January 14, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the SB 821 - Whispering Palms Trail Class III Bike Route Project (C08672)
RECOMMENDATION:
To accept and approve the Senate Bill (SB) 821 - Whispering Palms Trail Class III Bike Route Project (C08672) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Granite Construction Company upon expiration of the notice of completion.
BACKGROUND:
At the City Council Meeting on August 13, 2025, the City Council approved a construction contract with Granite Construction Company in the amount of $672,000 with a twenty percent (20%) contingency in the amount of $134,400 for unforeseen construction costs, bringing the total authorized construction budget to $806,400.
The project consisted of pavement rehabilitation and the installation of a shared travel lane for bicycles and vehicles on a two-mile section of Whispering Palms Trail, from Dinah Shore Drive to 30th Avenue. Pavement rehabilitation included full removal and reconstruction of a severely deteriorated segment between Vega Road and Baristo Road, while the sections north of Vega Road and south of Baristo Road received a Rubberized Emulsion Aggregate Slurry (REAS) treatment.
The shared bicycle lane was implemented through the installation of shared lane markings (“sharrow”), bicycle route signage, speed feedback radar signs, and additional pavement striping and signage improvements to enhance safety and visibility.
As part of the project, Coachella Valley Water District (CVWD) facilities were adjusted to match the new street grade. CVWD opted to perform this work using their own on-call contractor.
DISCUSSION:
Construction started on September 22, 2025, and was completed on November 13, 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 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 withheld from progress payments pending satisfactory completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires filing a NOC with the Riverside County Recorder’s office. 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 thirty- five (35) day period has expired, and provided no claims or liens are received, the city can release retention funds.
City staff recommends the City Council accept and approve the Senate Bill (SB) 821 - Whispering Palms Trail Class III Bike Route Project (C08672) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Granite Construction Company upon expiration of the notice of completion.
FISCAL IMPACT:
The fiscal impact of the construction contract with Granite Construction Company 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
(65%)
240-100-150-
156-8800-8802 C08672 $524,160.00 ONE TIME
2025-2026 Assessment District 85-1
(35%)
341-100-150-
156-8800-8802 C08672 $282,240.00 ONE TIME
2025-2026 Total $806,400.00
Final Construction Cost
The final construction expenditures with Granite Construction Company were in the amount of $660,171.82, which includes change orders which credit the city in the amount of $11,828.18.
The total final contract cost summarized below is comprised of 65% (TDA funding) and 35% (Assessment District funding):
Base Contract Amount $672,000.00
Change Orders ($ 11,828.18)
Final Construction Cost $660,171.82
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $33,008.59 will be released to Granite Construction Company in thirty-five (35) days from the date the NOC is filed.
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 – Granite Construction Company