Staff Report
City Council
Item No. 3.E
Meeting Date: February 11, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion the Dream Homes Park Project (aka Esperanza Park) (C07021)
RECOMMENDATION:
To accept and approve the Dream Homes Park 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 Dream 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 provide technical oversight during construction of the project.
In November 2023, the City Council approved a construction contract with Urban Habitat in the amount of $6,899,029.97 and authorized a contingency of $1,028,591.25, bringing the total authorized construction budget to $7,927,621.22 for the Dream Homes Park Project.
In December 2023, the construction contingency was increased by $144,938.48 with authorization by the City Council to purchase the restroom building which was procured and executed after the construction contract was awarded to Urban Habitat. This adjustment increased the project contingency to $1,173,529.73 and the total construction budget for Urban Habitat to $8,072,559.70 for the park project.
DISCUSSION:
Construction began on December 26, 2023, and was substantially completed on May 22, 2025, concurrent with the park opening ceremony. In accordance with the contract terms, Urban Habitat was subjected to a 90-day landscape maintenance period, as well as a separate punch-list completion period. Urban Habitat’s final working day, and completion date for the project was November 17, 2025 (due to claim resolution), as documented in the attached Notice of Completion (NOC).
City staff reviewed and inspected the park improvements and found the project was built in accordance with all contract requirements and therefore recommend 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 recommend City Council accept and approve the Dream Homes Park Project (C07021) as complete; and 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 Urban Habitat upon expiration of the Notice of Completion.
FISCAL IMPACT:
Several funding sources were authorized for the Dream Homes Park Project. A summary of all project funding sources is provided on the table below:
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 $8,498,000.00 ONE TIME
2023-2024 General Fund 100-100-150-
156-8800-8802 C07021 $2,427,931.00 ONE TIME
2023-2024 Environmental
Conservation Fund
246-900-910-
911-8800-8802 C07021 $ 161,280.00 ONE TIME
2023-2024
Capital Improvement
Project (CIP) – CVAG
Reimbursement
331-100-150-
156-8800-8802 C07021 $ 534,404.51 ONE TIME
2023-2024 Total $11,621,615.51
Authorized Construction Budget
The authorized construction budget was in the amount of $8,072,559.70 and it is shown below:
Construction Contract (Urban Habitat) $6,899,029.97
Contingency $1,173,529.73
Construction Budget $8,072,559.70
Final Construction Cost
A. Urban Habitat Construction Contract Cost:
The total construction expenditures with Urban Habitat were $7,741,506.37. This amount includes the original construction contract in the amount of $6,899,029.97, change orders and credits totaling $842,476.40 issued during construction of the project. The total construction contract cost is summarized below:
Base Contract Amount $6,899,029.97
Change Orders/Credits $ 842,476.40
Total Construction Contract Cost $7,741,506.37
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $387,075.32 will be released to Urban Habitat in thirty-five (35) days from the date the NOC is filed.
B. Additional Construction Expenditures - City Purchase Orders The city authorized additional expenditures in the amount of $236,609.87 for supplemental park improvements, including additional park benches, bike racks, flagpole, soccer goals, and electrical fixtures for the restroom building. These expenditures also included required support services and regulatory items not included in the construction contract with Urban Habitat, such as material testing services, additional labor compliance monitoring and construction-related regulatory permits.
Expenditure Category Amount
Park Amenities & Equipment $31,723.04
Electrical Fixtures $968.50
Material Testing Services $37,045.00
Overnight Security Services $20,205.00
Labor Compliance Monitoring $98,036.25
Permits & Regulatory Fees $7,364.60
Signage & Wayfinding $1,297.89
Restroom & Shade Structure Taxes $39,969.59
Additional Construction Expenditures (City POs) $236,609.87 C. Remaining Construction Budget
The remaining construction budget is summarized below:
Authorized Construction Budget $ 8,072,559.70
Urban Habitat Construction Cost ($7,741,506.37)
Additional Construction Expenditures (City POs) ($236,609.87) Remaining Construction Budget $94,443.46
D. Additional Construction Change Orders (ACCO)
To maximize available construction funds and enhance project’s quality and scope, the remaining construction funds are being used to complete park amenities deferred during the design phase due to budget constraints. These park improvements were anticipated as future additions and are being incorporated into the project. The following additional construction change orders (ACCOs) implement these improvements:
ACCO No.1 – Lighting at rear restroom wall.
Includes purchase and installation lighting along the rear restroom building wall (facing CV Link) to provide illumination for a future art mural. The total cost = $3,454.56. ACCO No.2 – Picnic Shelters Lighting
Lighting for the picnic shade structures was removed during design to reduce project costs and was not included in the construction scope. City staff coordinated with the shelters manufacturer and secured pricing to furnish and install solar-powered lighting systems at each individual picnic shelter. The total cost = $54,896.00 ACCO No.3 - Speed Humps
Speed humps will be installed at the parking lots entrances on Mia Place and Chia Place.
The cost to purchase the speed humps = $1,680.65.
ACCO No.4 to No.6 – Additional Erosion Control Landscaping Rock Landscaping in the north and south areas of the park was significantly reduced during design and removed from the project budget. To improve erosion control, restrict access to these park areas, and maintain consistency with the original design intent, city staff have secured quotes for the purchase and installation of landscaping rubble rock. The total cost for these landscaping improvements includes $12,233.82 for landscaping rubble rock, $1,581.48 for landscape fabric, and $18,025.00 for labor installation.
The total cost for these additional construction improvements is $91,871.51 and is summarized below.
Additional Construction Change Orders Amount
ACCO No.1: Lighting at rear restroom wall $3,454.56
ACCO No.2: Picnic Shelters Lighting $54,896.00
ACCO No.3: Speed Humps $1,680.65
ACCO No.4: Landscaping rubble rock (material) $12,233.82 ACCO No.5: Landscape fabric (material) $1,581.48
ACCO No.6: Landscape labor installation $18,025.00
Additional Construction Change Orders Total $91,871.51
The completion of these park improvements is anticipated by the end of the Fiscal Year 2025-2026.
E. Final Construction Cost
The final construction cost is summarized below:
Urban Habitat Construction Contract Cost $7,741,506.37
Additional Construction Expenditures (City POs) $236,609.87 Additional Construction Change Orders $91,871.51
Total Construction Cost $8,069,987.75
Grant Support Services (Separate of Construction Cost)
MVR Consulting was awarded a task order in the amount of $93,900 to provide grant support services for the project. This task order is not included in the construction expenditures summarized above. Total expenditures by MVR Consulting to date are in the amount of $41,880, with a remaining balance of $52,020 still encumbered. MVR Consulting has indicated that approximately $3,830 of the encumbered amount will be billed to produce and complete the project closeout documentation required by California State Parks. Grant management expenses will total $45,710, resulting in a savings of 48,190.
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