Staff Report
City Council
Item No. 3.G
Meeting Date: July 22, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Sunny Sands Neighborhood Pavement Rehabilitation and Cathedral Canyon Drive Street Rehabilitation Projects (C02612 & C02613)
RECOMMENDATION:
To accept and approve the Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) and Cathedral Canyon Drive Street Rehabilitation Project (C02613) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office for each project; and authorize the release of retention funds to Matich Corporation upon expiration of the notices of completion.
BACKGROUND:
At the April 22, 2026, City Council meeting, the City Council awarded 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 Street Rehabilitation Project (C02613). The City Council also approved a twenty percent (20%) construction contingency of $222,934.40 to address unforeseen construction costs and authorized a proposal from LandMark Consultants, Inc., in an amount not to exceed $7,000, to provide materials testing services during construction. The total authorized construction budget was $1,344,606.40.
The construction contract included two pavement rehabilitation projects designed to improve roadway conditions, upgrade accessibility, and extend the service life of the City's pavement infrastructure.
Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) The project included asphalt concrete (AC) pavement resurfacing, upgrading curb ramps to meet Americans with Disabilities Act (ADA) requirements, adjusting existing utility facilities to final grade, and installing pavement striping and markings on the following streets:
Baristo Road, from Date Palm Drive to the eastern end
El Toro Road, Victor Road, and Neuma Drive, from Ramon Road to Baristo Road As part of this project, Coachella Valley Water District (CVWD) facilities were adjusted to match the new street grade. CVWD opted to perform this work using their own on-call contractor.
Cathedral Canyon Drive Street Rehabilitation Project (C02613) The project included asphalt concrete (AC) pavement resurfacing, adjusting existing utility facilities to final grade, and installing pavement striping and markings on Cathedral Canyon Drive, from Perez Road to Paseo Azulejo.
As part of this project, Desert Water Agency (DWA) facilities were adjusted to match the new street grade. The adjustments were included in Matich Corporation's construction contract.
DISCUSSION:
Construction started on May 4, 2026, and was completed on June 7, 2026.
As a result of the pavement rehabilitation project, roadway conditions improved significantly.
The table below summarizes the pavement condition index (PCI) ratings before and after construction:
Street Section PCI
Before
PCI
After
Baristo Road, from Date Palm Drive to the eastern end 41 97 El Toro Road, from Ramon Road to Baristo Road 48 97
Victor Road, from Ramon Road to Baristo Road 53 97
Neuma Drive, from Ramon Road to Baristo Road 55 97
Cathedral Canyon Drive, from Perez Road to Paseo Azulejo 24 97 City staff reviewed and inspected the improvements on both projects and determined that the work was constructed in accordance with the approved plans, specifications, and contract requirements. Accordingly, staff recommend that the City Council accept the projects as complete.
DWA staff also inspected the improvements to their facilities and accepted the work performed by Matich Corporation on the Cathedral Canyon Drive project.
City Council acceptance is required to approve the project’s final contract amounts 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 the NOCs 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 Sunny Sands Neighborhood Pavement Rehabilitation Project (C02612) and Cathedral Canyon Drive Street Rehabilitation Project (C02613) as complete; authorize the City Manager to execute and file a notice of completion (NOC) with the Riverside County Recorder’s Office for each project; and authorize the release of retention funds to Matich Corporation upon expiration of the notices of completion.
FISCAL IMPACT:
The fiscal impact of the construction contract with Matich Corporation is as follows:
Authorized Construction Funding
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
$ 34,915.80
$ 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
Construction Expenditures
A. Construction Expenditures – Sunny Sands Neighborhood Pavement Rehabilitation Project
The final construction expenditures with Matich Corporation for the Sunny Sands Neighborhood Pavement Rehabilitation Project were $649,034.83, which includes change orders resulting in a net decrease of $25,544.17. Staff note that the net decrease resulted from the reconciliation of the estimated bid quantities with the final field-measured quantities.
This adjustment does not reflect a reduction in the project scope, but rather the difference between the estimated and actual quantities constructed.
The final construction expenditures for the Sunny Sands Neighborhood are summarized below:
Construction Contract Cost $674,579.00
Change Orders ($ 25,544.17)
Final Construction Expenditures $649,034.83
Should there be no claims or discrepancies in the work completed, the final payment (5% retention) in the amount of $32,451.74 will be released to Matich Corporation thirty-five (35) days following the filing of the NOC.
B. Construction Expenditures – Cathedral Canyon Drive Street Rehabilitation Project The final construction expenditures with Matich Corporation for the Cathedral Canyon Drive Street Rehabilitation Project were $447,028.82, which includes change orders resulting in a net increase of $6,935.82.
The final construction expenditures at Cathedral Canyon Drive are summarized below:
Construction Contract Cost $440,093.00
Change Orders $ 6,935.82
Final Construction Expenditures $447,028.82
Should there be no claims or discrepancies in the work completed, the final payment (5% retention) in the amount of $22,351.44 will be released to Matich Corporation thirty-five (35) days following the filing of the NOC.
C. Material Testing Expenditures – LandMark Consultants, Inc.
The final material testing expenditures for services provided by LandMark Consultants, Inc. were in the amount of 9,250.00, which includes a change order resulting in a net increase of $2,250.00.
The final material testing expenditures are summarized below:
Material Testing - LandMark Consultants, Inc. $7,000.00 Change Orders $2,250.00
Final Material Testing Expenditures $9,250.00
Total Projects Construction Cost
The total project construction cost is summarized below.
Construction Expenditures – Sunny Sands Neighborhood Project $649,034.83 Construction Expenditures – Cathedral Canyon Drive Project $447,028.82 Material Testing Expenditures - LandMark Consultants, Inc. $ 9,250.00 Total Projects Construction Cost $1,105,313.65
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 – Sunny Sands Neighborhood Pavement Rehabilitation Project
2. Notice of Completion – Cathedral Canyon Drive Street Rehabilitation Project