Staff Report
City Council
Item No. 3.D
Meeting Date: February 11, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Dream Homes Park (aka Esperanza Park):
Perimeter Wall Project (C07021)
RECOMMENDATION:
To accept and approve the Dream Homes Park: Perimeter Wall Project (C07021) as complete; and 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 Urban Habitat upon expiration of the Notice of Completion.
BACKGROUND:
In December 2021, California State Parks awarded Cathedral City $8,498,000 in Statewide Park Program (SPP) Round 4 grant funds for the Dreams Homes Park Project (currently known as Esperanza Park. Note: California State Parks requires referencing the project as Dream Homes Park for grant purposes). Following the notice of award in February 2022, the city received authorization from California State Parks to proceed with design and construction of the project.
In June 2022, Verde Design, Inc. (Design Consultant) was awarded a design professional services agreement to prepare final design and engineering plans, contract bid documents and technical oversight for the construction of the project.
City staff, in coordination with the design consultant, determined that bidding the perimeter wall as a separate project was in the best interest of the city. This approach allowed the selected prime contractor to self-perform most of the work and reduced additional markup costs that would otherwise have resulted from subcontracting within the larger park project.
On October 11, 2023, the City Council approved a construction contract with Urban Habitat for construction of the perimeter wall in the amount of $795,750.73, together with a fifteen percent (15%) contingency in the amount of $119,362.61 for unforeseen construction costs, for a total construction budget of $915,113.34. The total construction budget was programmed to be fully funded by the SPP Round 4 grant.
The project included the construction of approximately 3,140 linear feet of six-foot (6-ft)-high perimeter block wall along the west side of the park. The wall provides physical separation between the backyards of existing residences and park users, as required by the SPP grant application.
DISCUSSION:
Construction started on December 26, 2023, and was completed on September 3, 2025, concurrently with the completion of the park project.
City staff reviewed and inspected the block wall 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 Notice of Completion (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 recommend that the City Council accept and approve the Dream Homes Park:
Perimeter Wall Project (C07021) as complete; and 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 Urban Habitat upon expiration of the Notice of Completion.
FISCAL IMPACT:
The funding source for the construction of the perimeter wall is the California State Parks Statewide Park Program Grant. The fiscal impact of the construction of the project is as follows:
Authorized Construction Funding
FISCAL
YEAR
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME
or
ONGOING
2023-2024
Capital Improvement
Project (CIP) – State
Parks Statewide Park
Program Grant
331-150-150-
156-8800-8802 C07021 $915,113.34 ONE TIME
2023-2024 Total $915,113.34
Final Construction Cost
A. Construction Contract (Urban Habitat)
The construction expenditures with Urban Habitat were in the amount of $809,907.67 which included the original construction contract and change orders in the amount of $14,156.94.
The total construction contract cost is summarized below.
Base Contract Amount (Urban Habitat) $795,750.73
Change Orders $14,156.94
Total Construction Contract Cost $809,907.67
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $40,465.38 will be released to Urban Habitat in thirty-five (35) days from the date the NOC is filed.
B. Additional Work - City Purchase Orders
In addition to Urban Habitat’s construction contract, the city authorized additional expenditures in the amount of $44,035.55 for perimeter wall–related work outside the scope of the contract. This work included the reconstruction and reconnection of portions of private property side walls that were removed due to the perimeter wall construction.
The final construction cost is $853,943.22 as summarized below:
Urban Habitat Construction Contract Cost $809,907.67
Additional Work - City Purchase Orders $44,035.55
Final Construction Cost $853,943.22
There is a remaining balance of $61,170.12 from the construction budget authorized for the by City Council in October 2023 as shown in the table below.
Authorized Construction Budget $915,113.34
Total Construction Cost ($853,943.22)
Remaining Construction Balance $61,170.12
The remaining construction balance from this Dream Homes Park- Perimeter Wall Project, will be applied to the Dream Homes Park Project CIP 7021 for additional park-related expenditures.
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 Urban Habitat- Dream Homes Park: Perimeter Wall.