Staff Report
City Council
Item No. 3.F
Meeting Date: July 22, 2026
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Whitewater Area Street Rehabilitation Project Phase II (C02610)
RECOMMENDATION:
To accept and approve the Whitewater Area Street Rehabilitation Project Phase II (C02610) 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 Matich Corporation upon expiration of the notice of completion.
BACKGROUND:
At the March 11, 2026, City Council meeting, the City Council awarded a construction contract to Matich Corporation in the amount of $799,776.00 for the Whitewater Area Street Reconstruction Phase II Project. The City Council also approved a fifteen percent (15%) construction contingency of $119,966.40 to address unforeseen construction costs and authorized a proposal from LandMark Consultants, Inc. in an amount not to exceed $8,000.00 to provide materials testing services during construction. The total authorized construction budget was $927,742.40.
The project included the removal and replacement of existing asphalt concrete (AC) pavement, reconstruction of Americans with Disabilities Act (ADA) compliant curb ramps, adjustment of existing utility facilities to final grade, and installation of pavement striping and markings on the following roadway segments:
Ortega Road between Shifting Sands Trail and Cathedral Canyon Drive; Navajo Trail between 33rd Avenue and Dinah Shore Drive; and Pueblo Trail between 33rd Avenue and Dinah Shore Drive.
As part of the project, Coachella Valley Water District (CVWD) water facilities were adjusted to match the new roadway grades. CVWD elected to have Matich Corporation perform this work under the city's construction contract and reimburse the city for the associated construction costs.
DISCUSSION:
Construction started on April 28, 2026, and was completed on June 3, 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
Ortega Road between Shifting Sands Trail and Cathedral Canyon Drive 30.6 97 Navajo Trail between 33rd Avenue and Dinah Shore Drive 49.5 97 Pueblo Trail between 33rd Avenue and Dinah Shore Drive 40 97 City staff reviewed and inspected the improvements and determined that the work was constructed in accordance with the approved plans, specifications, and contract requirements. Accordingly, staff recommends that the City Council accept the project as complete.
CVWD staff also inspected the improvements to their facilities and accepted the work performed by Matich Corporation.
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 Whitewater Area Street Rehabilitation Project Phase II (C02610) 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 Matich Corporation upon expiration of the notice of completion.
FISCAL IMPACT:
The fiscal impact of the Whitewater Area Street Rehabilitation Project Phase II (C02610) is as follows:
Authorized Construction Budget
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 $44,900.00 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
Construction Expenditures
A. Matich Corporation - Construction
The final construction expenditures with Matich Corporation were $782,841.81, which included change orders resulting in a net decrease of $16,934.19. The net decrease resulted from a balancing change order that reconciled the estimated bid quantities with the actual quantities constructed in the field, resulting in a lower final construction cost than originally bid.
The final construction expenditures with Matich Corporation are summarized below:
Base Contract Amount $799,776.00
Change Orders ($16,934.19)
Final Construction Expenditures (Matich Corporation) $782,841.81 Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $39,142.09 will be released to Matich Corporation thirty-five (35) days following the filing of the NOC.
B. LandMark Consultants Inc, (Material Testing Services The final expenditure for material testing services provided by LandMark Consultants, Inc. totaled $4,230.00,
Final Construction Cost
In accordance with the reimbursement agreement for this project, the Coachella Valley Water District (CVWD) will reimburse the City of Cathedral City $44,900.00 for the construction work associated with the adjustment of its facilities.
The final construction cost is summarized below.
Construction Contract Cost (Matich Corporation) $782,841.81 Material Testing Services (LandMark Consultant Inc.) $4,230.00 Less: CVWD Reimbursement (44,900.00)
Final Construction Cost $742,171.81
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 – Matich Corporation