Staff Report
City Council
Item No. 2.B
Meeting Date: September 16, 2026
From: Armando J. Garcia Baldizzone, City Engineer
Title: FY 2026-2027 Capital Improvement Program Update
RECOMMENDATION:
To receive a presentation providing an update on the Fiscal Year (FY) 2026-27 Capital Improvement Program (CIP), including the status of ongoing projects and projects anticipated to be completed during the current fiscal year.
BACKGROUND:
Cathedral City’s 5-Year Capital Improvement Program (CIP) Plan is a strategic tool for prioritizing and budgeting infrastructure projects based on long-term community needs and available resources. The CIP includes roadway, traffic signal, pedestrian, drainage, and other infrastructure improvement projects. Roadway projects included in the CIP are guided by the city’s Pavement Management Program (PMP), which evaluates roadway conditions and helps identify cost-effective maintenance and rehabilitation priorities.
In May 2023, the city completed a comprehensive PMP Implementation Report that evaluated the condition of all 157 miles of city-maintained streets. Each roadway segment was assigned a Pavement Condition Index (PCI) score, ranging from 0 (worst) to 100 (new or excellent condition), with the citywide average PCI recorded at 64, classified as “Fair.” The PMP has since been used to guide roadway project selection and funding priorities within the city’s 5-Year CIP Plan.
The 5-Year CIP was last presented to the City Council on March 25, 2026, as part of the bi- annual CIP update. At that time, staff presented the status of programmed CIP projects and proposed schedule adjustments for five (5) projects to maintain compliance with the Fiscal Year 2025-26 Maintenance of Effort (MOE) funding requirement. The City Council reviewed the proposed adjustments and provided direction regarding the implementation of the projects.
Today, staff will provide a semi-annual update on the CIP, highlighting ongoing projects from FY 2025-26 and providing an overview of upcoming projects programmed in the FY 2026-27 budget.
DISCUSSION:
FY 2026-27 Capital Improvement Projects
The 5-Year CIP identifies several roadway projects programmed for construction during FY 2026-27. Project selection and scheduling are based on multiple factors, including PCI data from the city’s PMP, availability and eligibility of funding sources, roadway condition and location, coordination with previously completed improvements, and opportunities to maximize available grant and local funding.
These criteria help ensure the limited resources available are invested through a balanced and cost-effective approach to roadway maintenance and rehabilitation.
For FY 2026-27 the CIP includes approximately:
$6.8 million for street reconstruction
$1.2 million for pavement maintenance and repairs
This represents a total planned roadway investment of approximately $8.0 million during FY 2026-27.
A comprehensive list of projects included in the FY 2026-27 CIP is attached to this report.
The list identifies ongoing and upcoming projects and provides each project’s current phase, status, and programmed budget. (Attachment 1)
Ongoing Construction Projects from FY 2025-26
The following projects began in FY 2025-26 and remain under construction, with completion anticipated during FY 2026-27. Maps identifying the project locations are attached to this report. (Attachment 2)
HSIP Cycle 11A - Citywide Pedestrian Crosswalk Upgrades (18 intersections). HSIP Cycle 11B - Pedestrian Signals/Hybrid Beacons (2 intersections) HSIP Cycle 11C - Citywide Traffic Signal Hardware Improvements (49 intersections) Upcoming Projects in FY 2026-27
The following projects are currently in various stages of implementation, including design, bidding, and contract award, and are anticipated to be completed during FY 2026-27. Maps identifying the project locations are attached to this report. (Attachment 2) Landau Public Alley Reconstruction
The Landau Public Alley Reconstruction Project was awarded for construction to R.J.
Noble Company on August 24, 2026. The project has a construction budget of $1,013,963.70 and is funded with Road Maintenance and Rehabilitation Account (RMRA)/SB 1 funds.
Cathedral Cayon Drive and Canyon Shores Drive Traffic Signal Project The Cathedral Canyon Drive and Canyon Shores Drive Traffic Signal Project is scheduled for construction contract award on September 16, 2026. The project has a proposed budget of $441,136.
Project costs are programmed to be funded through a reimbursement agreement with the Coachella Valley Association of Governments (CVAG), which provides 75 percent of eligible project costs, with the remaining 25 percent city share funded with Transportation Development Impact Fee (DIF) funds.
FY 2026-27 Fall Rubberized Emulsion Aggregate Slurry (REAS) Projects The FY 2026-27 Fall REAS Projects are scheduled for construction contract award on September 16, 2026. The proposed work includes REAS applications at the following locations:
Dream Homes Area REAS Project
Assessment District 88-2 Area REAS Project
Cove Lane and Grove Street REAS Project
The FY 2026-27 Fall REAS Projects have a proposed budget of $678,006.65 and are programmed to be funded through a combination of Measure W, General Fund Maintenance of Efforts (MOE) funds, and private developer funds provided through an agreement between the city and Silver Rock Development, Inc., executed on September 10, 2025.
East Palm Canyon Drive Widening, Master Underground Plan (MUP) and Traffic Signal at Cree Road
Due to delays during the design phase, construction of the East Palm Canyon Drive Widening, MUP, and Traffic Signal at Cree Road Project was reprogrammed to FY 2026- 27 as part of the CIP update presented to the City Council on March 25, 2026.
The project is currently in the final design stage, with final revisions to the plans and specifications underway in preparation for construction bidding. Construction contract award is anticipated in fall 2026. The CIP programmed budget for the project is $3,312,000, funded through a combination of RMRA/SB-1 funds, Master Underground Plan (MUP) funds, and Transportation Development Impact Fee (DIF) funds. Tropical Storm Hillary - Vista Chino Pavement Rehabilitation Project Plans and specifications for the Tropical Storm Hilary – Vista Chino Pavement Rehabilitation Project have been completed, and the project is scheduled to be advertised for construction bids in September 2026.
The programmed construction budget is $431,027, funded through a combination of Federal Highway Administration (FHWA) Emergency Relief funds and General Fund MOE funds.
Avenida El Mundo and Avenida El Pueblo Pavement Rehabilitation Projects The Avenida El Mundo and Avenida El Pueblo Pavement Rehabilitation Projects are scheduled to begin design in October 2026, with construction bidding anticipated in January 2027. Construction is anticipated to be completed before May 2027.
The programmed budget for the projects is $1,200,000, funded through a combination of RMRA/SB-1 funds and Community Development Block Grant (CDBG) funds. HSIP Cycle 12 A - Pedestrian Crossing Enhancements (3 intersections) The HSIP Cycle 12A project was awarded for design to TKE Engineering, Inc. on April 8, 2026. Design is currently underway and is anticipated to be completed by November 2026.
The project is programmed to proceed to construction during FY 2026-27, with a CIP programmed budget of $328,300.
HSIP Cycle 12 B - Pedestrian Crossing at Uncontrolled Locations (6 intersections) The HSIP Cycle 12B project was awarded for design to TKE Engineering, Inc. on April 8, 2026. Design is currently underway and is anticipated to be completed by November 2026.
The project is programmed to proceed to construction during FY 2026-27, with a CIP programmed budget of $240,840.
Ramon Road Bridge Project
The Ramon Road Bridge Project is being led by the City of Palm Springs. Design of the project has been completed, and construction bidding is anticipated in September 2026.
Construction is expected to begin in January 2027 and will extend beyond FY 2026-27 due to the anticipated construction duration.
The city’s CIP currently programs $968,235 as Cathedral City’s contribution toward construction of the project, distributed over the anticipated two-year construction period.
Following the construction contract award, the programmed contribution will be reviewed based on the actual construction cost and adjusted, as necessary.
Conclusion
Cathedral City continues to make steady progress in maintaining and improving its roadway infrastructure. The PMP and 5-Year CIP Plan provide a data-driven framework for evaluating pavement conditions, prioritizing projects, and aligning investments with long-term maintenance strategies.
City staff regularly update the PMP database with the latest pavement condition data and completed project information. This ongoing analysis supports more accurate planning and budgeting and helps ensure that roadway investments are prioritized based on current conditions, available resources, and system-wide infrastructure needs.
FISCAL IMPACT:
There is no fiscal impact for this update. This update is for information only.
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.
Action B-15: Develop a 5-Year pavement maintenance strategy and funding plan to achieve a citywide Pavement Quality Index that ranks in the Top 3 of Coachella Valley cities.
ATTACHMENTS:
1. Attachment 1 - FY 2026-27 CIP Project Report
2. Attachment 2 – FY 2026-27 CIP Construction Projects Maps