Staff Report
City Council
Item No. 5.A
Meeting Date: March 11, 2026
From: John A. Corella, Director of Public Works
Title: Construction Contract Award to Matich Corporation for the Whitewater Area Street Rehabilitation Project Phase II (C02610)
RECOMMENDATION:
To award a construction contract to Matich Corporation in the amount of $799,776.00 for the Whitewater Area Street Rehabilitation Project Phase II (C02610), and, approve a fifteen percent (15%) contingency in the amount of $119,966.40 for unforeseeable construction costs; and, approve a proposal from LandMark Consultants, Inc. in the not to exceed amount of $8,000 to provide material testing services during construction, thereby bringing the total construction budget to the amount of $927,742.40; and, authorize the City Manager to execute the required contract documents and the reimbursement agreement with the Coachella Valley Water District; and, authorize the City Engineer to execute LandMark Consultants, Inc. proposal, request bonds and insurance for the project, and issue the Notice to Proceed.
BACKGROUND:
In May of 2023, Cathedral City’s Engineering Department adopted a pavement management program (PMP) to aid in monitoring, maintaining, and rehabilitating the street network in the city. The PMP provides a dynamic, continually updating pavement condition index (PCI) for all streets across the city. The PCI value ranges from zero to one hundred (0-100) and categorizes street sections as very good, good, fair, poor, and very poor based on their value.
This system aids in deciding which streets are the most optimal and cost effective to receive treatment with the available budget.
Based on the funding available for FY 2025-2026 roadway improvements and the data analyzed in the city’s PMP, city staff determined the following streets as the most appropriate to receive pavement rehabilitation:
Ortega Road between Shifting Sands Trail and Cathedral Canyon Drive (PCI = 30.6), Navajo Trail between 33rd Avenue and Dinah Shore Drive (PCI = 49.5), and Pueblo Trail between 33rd Avenue and Dinah Shore Drive (PCI = 40).
On April 21, 2025, the City Council approved the FY 2025–2026 CDBG Annual Action Plan (AAP), allocating $452,412.76 in CDBG funds to support eligible public infrastructure improvements for the project. These streets are located within Census Tract 0449.07, a designated low- and moderate-income (LMI) areas, as identified by the 2020 U.S. Census; therefore, the improvements qualify for CDBG funding.
On May 14, 2025, the City Council adopted Resolution No. 2025-07, as required annually under the California Road Repair and Accountability Act of 2017, to program revenues through the Road Maintenance and Rehabilitation Account (RMRA), commonly referred to as Senate Bill 1 (SB-1). Through this action, $850,000 in SB-1 funds was programmed to cover the remaining estimated construction costs of the project.
The proposed improvements include removal and replacement of existing asphalt concrete (AC) pavement, reconstruction of Americans with Disabilities Act (ADA) compliant curb ramps, adjustment of utilities to final grade, and installation of pavement striping and markings.
Engineering staff prepared plans, specifications and estimates (PS&E) for this project in- house. These documents were completed on January 13, 2026.
DISCUSSION:
On January 15, 2026, the city advertised an Invitation to Bid for Bid No. B26-114E, seeking qualified contractors to perform the scope of work described in the plans and specifications of the project. 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 AC pavement elevations (costs borne by CVWD).
The bid solicitation was made available to contractors for twenty (20) calendar days and was advertised in the following locations:
• The Desert Sun - Published on January 15, 2026, and January 22, 2026 • PlanIt Print Works - From January 15, 2026, until February 4, 2026 • City’s Website - From January 15, 2026, until February 4, 2026 On February 4, 2026, the city received ten (10) bid proposals. The following table ranks each qualified bidder by the base bid amount.
Rank Contractor Amount
1 Matich Corporation – San Bernardino, CA $754,876.00
2 LCR Earthwork & Engineering – Jurupa Valley, CA $755,330.00 3 Calmex Engineering Inc. – Bloomington, CA $764,657.75 4 RJ Noble Company – Orange, CA $788,460.00
5 Onyx Paving Company Inc. – Yorba Linda, CA $794,538.50 6 Granite Construction Company – Indio, CA $817,718.00
7 Hardy & Harper Inc. – Lake Forest, CA $883,980.00
8 All American Asphalt – Corona, CA $889,262.00
9 Romero General Construction Corp – Escondido, CA $909,008.00 10 Van Engineering Inc. – Wildomar, CA $1,202,937.50
The bid tabulation prepared by the Engineering Division is attached to this report for reference. The lowest responsive and responsible bidder for the base bid schedule of the project is Matich Corporation from San Bernardino, CA.
Following the bid review, CVWD approved the cost proposal in the amount of $44,900.00 for the additive alternate submitted by Matich Corporation and authorized the city to proceed with this portion of the work. A full reimbursement agreement with CVWD for the additive alternate, attached to this staff report, will be executed upon City Council approval.
The total bid cost for the project is in the amount of $799,776.00 and is summarized in the table below:
Base Bid – Roadway Improvements $754,876.00
Additive Alternate – Utility Adjustments (CVWD
reimbursement)
$44,900.00
Total $799,776.00
Engineering staff is recommending the City Council award a construction contract to Matich Corporation in the amount of $799,776.00 for the Whitewater Area Street Rehabilitation Project Phase II (C02610), and, approve a fifteen percent (15%) contingency in the amount of $119,966.40 for unforeseeable construction costs; and, approve a proposal from LandMark Consultants, Inc. in the not to exceed amount of $8,000 to provide material testing services during construction, thereby bringing the total construction budget to the amount of $927,742.40; and, authorize the City Manager to execute the required contract documents and the reimbursement agreement with the Coachella Valley Water District; and, authorize the City Engineer to execute LandMark Consultants, Inc. proposal, request bonds and insurance for the project, and issue the Notice to Proceed.
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 CIP Biennial Budget
The project is included in the FY 2025-2026 Capital Improvement Program (CIP) as the Whitewater Area Street Rehabilitation Phase II, with a total programmed budget of $1,302,412.76 funded as follows.
CDBG $452,412.76
RMRA SB1 $850,000.00
Total Programmed CIP Budget $1,302,412.76
Construction Budget
The total construction budget is $927,742.40, which includes the low bid of $799,776.00 submitted by Matich Corporation, a 15% contingency of $119,966.40, and $8,000.00 for material testing services by LandMark Consultants, Inc. The total construction budget is summarized below.
Total Bid Cost (Matich Corporation) $799,776.00
15% Contingency $119,966.40
Material Testing Services (LandMark Consultants, Inc.) $8,000.00 Construction Budget $927,742.40
Proposed Funding Sources
Staff are proposing to fund the total construction budget of $927,742.40 through CDBG funds, CIP funds (CVWD reimbursement), and RMRA SB-1 funds. Allocation of Funds to Construction Contract
The total construction bid submitted by Matich Corporation is $799,776.00. This amount will be funded as follows:
Funding Source Amount
CDBG Funds $452,412.76
CIP Funds (CVWD Reimbursement) $44,900.00
RMRA SB-1 Funds (Balance of Total Bid Cost) $302,463.24 Total Construction Contract $799,776.00
Allocation of Funds to Contingency and Material Testing Services In addition to the construction contract, the project includes a 15% contingency in the amount of $119,966.40, and material testing services in the amount of $8,000.00. These costs, totaling $127,966.40, will be funded with RMRA SB-1 funds.
Total Construction Budget Funding Summary
The following table summarizes the proposed funding sources for the construction of the project.
Funding Source Amount
CDBG Funds $452,412.76
CIP Funds (CVWD Reimbursement) $44,900.00
RMRA SB-1 Funds (Balance of Total Bid Cost) $302,463.24 RMRA SB-1 Funds (Contingency and Material Testing) $127,966.40 Total Construction Budget $927,742.40
The following table summarizes the budget allocations for the construction of the projects
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME or
ONGOING
2025-
2026 CDBG 251-100-150-
156-8800-8802 C02610 $452,412.76 ONE TIME
2025-
2026
Capital Improvement
Program (CIP) – CVWD
Reimbursement
331-100-150-
156-8800-8802 C02610 $44,000.00 ONE TIME
2025-
2026 RMRA/SB-1 248-100-150-
156-8800-8802 C02610 $430,429.64 ONE TIME
2025-
2026 Total $927,742.40
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. Whitewater Area Street Rehabilitation Project Phase II – Contract
2. Whitewater Area Street Rehabilitation Project Phase II – Bid Tab
3. Whitewater Area Street Rehabilitation Project Phase II – Vicinity Map
4. LandMark Consultants Inc. Proposal
5. CVWD Reimbursement Agreement