Staff Report
City Council
Item No. 3.K
Meeting Date: July 22, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Dream Homes Neighborhood Crack Repair Project (C02611)
RECOMMENDATION:
To accept and approve the Dream Homes Neighborhood Crack Repairs Project (C02611) as complete; authorize the City Manager to file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Riverside Slurry Seal, Inc. upon expiration of the notice of completion.
BACKGROUND:
At the April 22, 2026, City Council meeting, the City Council awarded a construction contract to Riverside Slurry Seal, Inc. in the amount of $396,772.08 and approved a ten percent (10%) construction contingency of $39,677.21 to address unforeseen construction costs, for a total authorized construction budget of $436,449.29.
The project consisted of repairing wide asphalt cracks with a mastic binder and sealing narrower cracks to prevent water intrusion, reduce pavement deterioration, and extend the service life of the roadway. The work also serves as a preparatory measure for this upcoming fall of 2026 application of Rubberized Emulsion Aggregate Slurry (REAS) as part of the Dream Homes Neighborhood street maintenance project included in the city's 5-Year Capital Improvement Program (CIP).
DISCUSSION:
Construction started on May 26, 2026, and was completed on June 26, 2026.
City staff reviewed and inspected the improvements and determined that the project was constructed in accordance with the approved specifications and contract requirements.
Accordingly, staff recommends that the City Council accept 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 completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires filing an 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 Dream Homes Neighborhood Crack Repairs Project (C02611) as complete; authorize the City Manager to file a notice of completion (NOC) with the Riverside County Recorder’s Office; and authorize the release of retention funds to Riverside Slurry Seal, Inc. upon expiration of the notice of completion.
FISCAL IMPACT:
The fiscal impact of the Dream Homes Neighborhood Crack Repair Project is as follows:
Authorized Construction Budget
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT
ONE TIME
or
ONGOING
2025-
2026
Assessment
District 04-01
353-100-150-
156-8800-8802 C02611 $436,449.29 ONE TIME
2025-
2026 Total $436,449.29
Total Construction Cost
The final construction expenditures with Riverside Slurry Seal, Inc. were $362,882.58, which included a change order resulting in a net decrease of $33,889.50. Staff note that the net decrease resulted from reconciling the estimated bid quantities with the actual 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 total project construction cost is summarized below.
Construction Contract Cost – Riverside Slurry Seal, Inc. $396,772.08 Change Orders ($ 33,889.50)
Total Construction Cost $362,882.58
Should there be no claims or discrepancies in the work completed, the final payment (5% retention) in the amount of $18,144.13 will be released to Riverside Slurry Seal, Inc. thirty- five (35) days following the filing of the NOC.
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 – Riverside Slurry Seal, Inc.