Staff Report
City Council
Item No. 5.A
Meeting Date: April 22, 2026
From: John A. Corella, Director of Public Works
Title: Construction Contract Award to for the Sunny Sands Neighborhood Pavement Rehabilitation and Cathedral Canyon Drive Street Rehabilitation Projects (C02612 & C02613)
RECOMMENDATION:
To award a construction contract to Matich Corporation in the amount of $1,114,672.00 for the Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) and the Cathedral Canyon Drive from Perez Road to Ofelia Bringas Bridge Street Rehabilitation Project (C02613); approve a twenty percent (20%) contingency in the amount of $222,934.40 for unforeseeable construction costs; approve a proposal from LandMark Consultants, Inc. in the not to exceed amount of $7,000.00 to provide material testing services during construction, thereby bringing the total construction budget to the amount of $1,344,606.40; and, authorize the City Manager to execute the required contract documents; 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 2023, Cathedral City’s Engineering Department adopted a pavement management program (PMP) to support the monitoring, maintenance, and rehabilitation of the city’s street network. The PMP establishes a dynamic and continuously updated Pavement Condition Index (PCI) for all streets throughout the city. PCI values range from 0 to 100 and classify pavement conditions as very good, good, fair, poor, or very poor. This program, combined with field observations, provides the basis for identifying the most effective and cost-efficient rehabilitation strategies for specific roadway segments.
On May 28, 2025, the City Council adopted the FY 2025–2026 and FY 2026–2027 Biennial Budget, which included the Sunny Sands Neighborhood Pavement Rehabilitation project (FY 2027/2028) and Cathedral Canyon Drive Street Rehabilitation project (FY 2026/2027) as part of the 5-Year Capital Improvement Project (CIP) Plan.
On March 25, 2026, Engineering staff presented an update to the FY 2025-2026 CIP and recommended adjustments to the 5-year CIP plan to ensure timely use of Maintenance of Effort (MOE) funds in accordance with annual expenditure requirements.
As part of these adjustments, staff recommended advancing the following projects to FY 2025–2026:
1. Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) Originally scheduled for construction in FY 2027–2028 utilizing MOE and SB-1 funds, this project includes pavement rehabilitation on the following streets:
Baristo Road (PCI = 41), from Date Palm Drive to the eastern end. El Toro Road (PCI = 48), Victor Road (PCI = 53), and Neuma Drive (PCI = 55), from Ramon Road to Baristo Road
Proposed improvements include pavement resurfacing, restriping, upgrading curb ramps to meet Americans with Disabilities Act (ADA) requirements, and adjusting water and other underground utility facilities to grade.
2. Cathedral Canyon Drive Street Rehabilitation Project (C02613) Originally scheduled for construction in FY 2026–2027 utilizing MOE funds, this project includes pavement rehabilitation along Cathedral Canyon Drive from Perez Road to Paseo Azulejo (average PCI = 24).
Proposed improvements include pavement resurfacing, restriping, and adjustment of water and other underground utility facilities to grade.
Engineering staff prepared plans, specifications and estimates (PS&E) for both projects in- house. The PS&E package was completed on March 26, 2026, and served as the basis for bid solicitation and will govern construction of the projects.
DISCUSSION:
On March 31, 2026, the city advertised an Invitation to Bid for Bid No. B26-118E, seeking qualified contractors to perform the scope of work described in the plans and specifications of the project. The bid documents included an additive alternate for the adjustment of Coachella Valley Water District (CVWD) facilities (valves, manholes, and cleanout lids) to match new asphalt pavement elevations, with the associated costs to be borne by CVWD.
The bid solicitation was advertised for 10 calendar days through the following platforms:
• The Desert Sun - Published on March 31, 2026
• PlanIt Print Works - From March 27, 2026, until April 10, 2026 • City’s Website - From March 27, 2026, until April 10, 2026 On April 10, 2026, the city received 7 bid proposals. The following table ranks each qualified bidder by the base bid amount.
Rank Contractor Amount
1 Matich Corporation – San Bernardino, CA $ 1,114,672.00 2 Hardy & Harper Inc. – Lake Forest, CA $ 1,203,290.00
3 Onyx Paving Company Inc. – Yorba Linda, CA $ 1,217,000.00 4 Calmex Engineering Inc. – Bloomington, CA $ 1,226,420.90 5 Granite Construction Company – Indio, CA $ 1,249,000.00 6 Romero General Construction Corp – Escondido, CA $ 1,327,330.00 7 Vance Corporation – Beaumont, CA $ 1,332,898.36
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 is Matich Corporation from San Bernardino, CA.
Following the bid review, CVWD rejected the additive alternate submitted by Matich Corporation and elected to perform this work separately using its on-call contractor during construction. As a result, the city will not include the CVWD-related water facility adjustments in this contract.
Based on the bids received and CVWD’s decision, the lowest responsive and responsible bidder who yields the lowest contract price is Matich Corporation from San Bernardino, CA.
Engineering staff recommend the City Council award a construction contract to Matich Corporation in the amount of $1,114,672.00 for the Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) and the Cathedral Canyon Drive from Perez Road to Ofelia Bringas Bridge Street Rehabilitation Project (C02613); approve a twenty percent (20%) contingency in the amount of $222,934.40 for unforeseeable construction costs; approve a proposal from LandMark Consultants, Inc. in the not to exceed amount of $7,000.00 to provide material testing services during construction, thereby bringing the total construction budget to the amount of $1,344,606.40; and, authorize the City Manager to execute the required contract documents; 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
Both projects are included in the approved FY 2025-2026 CIP and programmed to be funded as described below:
1. The Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) had an estimated programmed construction cost of $1,340,000, with a plan for funding to be $840,000 from General Fund Maintenance of Effort (MOE) funds and $500,000 from RMRA/SB-1 funds.
2. The Cathedral Canyon Drive Street Rehabilitation Project (C02613) had an estimated programmed construction cost of $540,000 with a plan for funding to be General Fund MOE funds.
The combined estimated construction cost for both projects, as programmed in the CIP Plan totaled $1,880,000 and is shown below:
Sunny Sands Neighborhood (C02612) $ 1,340,000.00
Cathedral Canyon Drive (C02613) $ 540,000.00
Combined Estimated Construction Cost $ 1,880,000.00
Construction Budget
The city received a combined base bid of $1,114,672.00 from Matich Corporation for both projects. The base bid amounts by project are as follows:
Sunny Sands Neighborhood (C02612) $ 674,579.00
Cathedral Canyon Drive (C02613) $ 440,093.00
Total Base Bid $ 1,114,672.00
Staff recommends approval of a 20% contingency in the amount of $222,934.40, to account for potential unforeseen construction costs, as well as $7,000.00 for material testing services to be provided by LandMark Consultants, Inc., thereby bringing the total actual construction budget to $1,344,606.40, as shown below:
Total Bid Cost (Matich Corporation) $ 1,114,672.00
20% Contingency $ 222,934.40
Material Testing Services (LandMark Consultants, Inc.) $ 7,000.00 Total Construction Budget $ 1,344,606.40
Proposed Funding Sources
The programmed CIP amounts for both projects were based on planning-level cost estimates and included allocations from Maintenance of Effort (MOE) and RMRA/SB-1 funds.
Based on the bids received, the total construction budget, including contingency and materials testing, is $1,344,606.40, which is lower than the programmed CIP estimates. This reduction allows both projects to be fully funded with available General Fund MOE without the need to utilize RMRA/SB-1 funds.
Accordingly, staff are proposing to prioritize the use of available MOE funds to ensure the city meets the FY 2025–2026 MOE expenditure requirements.
The following table summarizes the budget allocations for the construction of the projects Fiscal
Year DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT
ONE TIME
or
ONGOING
2025-26 Sunny Sands Neighborhood
Construction
100-100-150-
156-8800-8802 C02612 $674,579.00 ONE TIME
2025-26 Cathedral Canyon Drive
Construction
100-100-150-
156-8800-8802 C02613 $440,093.00 ONE TIME
2025-26 20% Construction
Contingency
100-100-150-
156-8800-8802
C02612
C02613
$134,915.80
$ 88,018.60 ONE TIME
2025-26 Material Testing 100-100-150-
156-8800-8802
C02612
C02613
$ 3,500.00
$ 3,500.00 ONE TIME
2025-26 Total $1,344,606.40
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. Sunny Sands Neighborhood and Cathedral Canyon Drive – Vicinity Map
2. Sunny Sands Neighborhood and Cathedral Canyon Drive – Bid Tab
3. Sunny Sands Neighborhood and Cathedral Canyon Drive – Contract
4.LandMark Consultants, Inc. Proposal