Staff Report
City Council
Item No. 3.E
Meeting Date: April 22, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Panorama Neighborhood Streets, Corta Road, and Alcita Road Pavement Rehabilitation Projects (C02605 & C02606)
RECOMMENDATION:
To accept and approve the Panorama Neighborhood Streets Pavement Rehabilitation Project (C02605), and Corta Road and Alcita Road Pavement Rehabilitation Project (C02606) 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 Vance Corporation upon expiration of the notice of completion.
BACKGROUND:
At the City Council meeting on October 6, 2025, the City Council approved a construction contract with Vance Corporation in the amount of $919,715.40, with a twenty percent (20%) contingency of $183,943.08 for unforeseen construction costs, for a total authorized construction budget of $1,103,658.48.
Originally, the Panorama Neighborhood Streets Rehabilitation Project included the application of Type II Rubberized Emulsion Aggregate Slurry (REAS). However, due to weather conditions unfavorable for REAS application, an alternative slurry seal, Type II Rubberized Polymer Modified Slurry (RPMS), was utilized. Additional improvements included micro-milling, crack sealing, pavement edge resurfacing, and roadway restriping.
These improvements were completed on the following streets:
Los Gatos Road, from Val Yermo Trail to Fortuna Road
Panorama Road, from Vista Chino to Avenida Diosa
Durango Road, from Avenida La Paz to Avenida La Vista
Within the Assessment District 85-1, pavement resurfacing and roadway restriping were completed on the following streets:
Corta Road, from Pauline Avenue to approximately 625 feet east of Landau Boulevard Alcita Road, from Avenida Maravilla to the west end
During construction, two (2) additional road segments not originally included in the contract were added to the project. Pavement resurfacing and roadway restriping were completed on the following streets:
Whispering Palms Trail, from 30 th Avenue to Durango Road Corta Road, from Pauline Avenue to Avenida Maravilla
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 its own on-call contractor.
On February 10, 2026, Engineering staff conducted a field review with Vance Corporation along Durango Road, between Avenida La Paz and Whispering Palms Trail, to assess pavement conditions. The completed work did not meet inspection standards; therefore, corrective slurry reapplication and restriping were required. This work was completed on March 17, 2026.
DISCUSSION:
Construction started on November 10, 2025, and was completed on March 17, 2026.
As a result of the pavement rehabilitation projects, roadway conditions improved significantly.
The table below summarizes the pavement condition index (PCI) ratings before and after construction:
Street Section PCI
Before
PCI
After
Los Gatos Road, from Val Yermo Trail to Fortuna Road 59 95 Panorama Road, from Vista Chino to Avenida Diosa 50 95
Durango Road, from Avenida La Paz to Avenida La Vista 57 95 Corta Road, from Pauline Avenue to approximately 625 feet east of Landau Boulevard 58 96
Alcita Road, from Avenida Maravilla to the west end 50 96 Whispering Palms Trail, from 30th Avenue to Durango Road 57 96 Corta Road, from Pauline Avenue to Avenida Maravilla 51 96 City staff reviewed and inspected the improvements and determined the work was constructed in accordance with contract requirements and therefore recommend the City Council acceptance of the project as complete.
City Council acceptance is required to approve the project’s final contract amount and authorize the release of retention funds. Retention funds are monies earned by the contractor that are withheld from progress payments pending satisfactory project completion and final acceptance.
Additionally, City Council acceptance also requires the filing of 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. Upon expiration of this thirty-five (35) day period, and provided no claims or liens are received, the city may release retention funds.
City staff recommend the City Council to accept and approve the Panorama Neighborhood Streets Pavement Rehabilitation Project (C02605), and Corta Road and Alcita Road Pavement Rehabilitation Project (C02606) 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 Vance Corporation upon expiration of the notice of completion.
FISCAL IMPACT:
The fiscal impact of the construction contract with Vance Corporation is as follows:
Authorized Construction Funding
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT ONE TIME ON
GOING
2025-2026 Assessment
District 88-3
347-100-150-
156-8800-8802 C02605 $35,000.00 One Time
2025-2026 Measure W 151-100-150-
156-8800-8802 C02605 $498,076.22 One Time
2025-2026 Measure W 151-100-150-
156-8800-8802 C02606 $386,639.18 One Time
2025-2026
Measure A
(20%
Contingency)
243-100-150-
156-8800-8802
C02605
C02606 $183,943.08 One Time
2025-2026 Total $1,103,658.48
Funding for Additional Work
During construction, additional work was performed on two (2) roadway segments within the project vicinity. Funding for this work was provided from the respective District Improvement funding for Mayor Raymond Gregory and Mayor Pro Tem Ernesto Gutierrez, as detailed below:
Mayor R. Gregory - District Improvement funds $42,200.00 Mayor Pro Tem E. Gutierrez - District Improvement funds $28,000.00 Total additional funds $70,200.00
Total Project Construction Cost
A. Construction Contract Cost - Vance Corporation
The final construction expenditures with Vance Corporation were in the amount of $928,856.52, which include change orders in the amount $9,141.12, as summarized below:
Base Contract Amount $919,715.40
Change Orders $9,141.12
Total Contract Cost $928,856.52
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $46,442.83 will be released to Vance Corporation thirty-five (35) days following the filing oof the NOC.
B. Additional Construction Expenditures - City Purchase Orders The city authorized an additional expenditure of $2,400.00 for required material testing services performed by the city’s on-call geotechnical firm and not included in the construction contract with Vance Corporation.
C. Total Project Construction Cost
The total construction cost is summarized below.
Construction Contract Cost (Vance Corporation) $928,856.52 Additional Construction Expenditures (City POs) $2,400.00 Total Project Construction Cost $931,256.52
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 – Vance Corporation