CITY OF WILDOMAR
CITY COUNCIL REGULAR MEETING

Notice of Completion - Bundy Canyon Road Rehab and Slurry Seal Project (CIP 057-3, 058-3)

1. Authorize the City Manager to approve the Task Order First Amendment for Construction Management Services with Interwest Consulting Group for the Bundy Canyon Road Rehab and Slurry Seal Project (CIP 057-3, 058-3) in the amount not to exceed $17,000.

2. Adopt a Resolution entitled:

RESOULTION NO. 2026 - _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILDOMAR, CALIFORNIA ACCEPTING THE BUNDY CANYON ROAD REHAB PROJECT (057-3) AND SLURRY SEAL PROJECT (058-3) AS COMPLETE AND AUTHORIZING STAFF TO PREPARE AND FILE THE NOTICE OF COMPLETION WITH THE RIVERSIDE COUNTY RECORDER

This item will accept the Bundy Canyon Road Rehab and Slurry Seal Projects (CIP 057-3, 058-3) as complete, authorize the filing of a Notice of Completion, and begin the one-year warranty period for the Project. 

On February 10, 2026, the City Council awarded a construction contract to All American Asphalt, Inc. (AAA, Contractor) in the amount of $2,567,666.02 for the Bundy Canyon Road Rehab and Slurry Seal Project (CIP 057-3, 058-3) ("Project"). The City Council also authorized the Public Works Director to execute Task Agreements for Construction Management/Inspection services with Geocon West, Inc. for a total not to exceed of $64,999, Labelle-Marvin Inc. for a total not to exceed of $74,999, and Interwest Consulting Group for a total not to exceed of $109,999. The City Council also authorized the Public Works Director/City Engineer to approve change orders not to exceed 25% of the construction contract amount ($641,916) (contingency).

On May 13, 2026 the City Council authorized the City Manager to execute a Memorandum of Understanding (MOU) with the City of Menifee for resurfacing Scott Road/Bundy Canyon Road as part of CIP 057-3. The City Council also authorized the Public Works Director to execute a three-party Escrow Agreement with Citizens Business Bank and Project Contractor All American Asphalt as allowed under Public Contract Code Section 22300. The City Council also approved a supplemental appropriation of $100,000 in expenditures and increase in revenue budget for Fund 507 to allocate available grant funds to CIP 057-3.

On August 12, 2026, the City Council further authorized the Public Works Director/City Engineer to approve change orders not to exceed 37% of the construction contract amount, in the amount of $950,036 (contingency). This action was made to account for the reimbursement agreement made with the City of Menifee (Menifee MOU) for including a segment of Bundy Canyon Road/Scott Road within CIP 057-3. The City Council also approved a deappropriation of Fund 120 (Measure AA) to decrease $200,000 from CIP 103 and approve a supplemental appropriation for Fund 120 (Measure AA) to increase $200,000 in expenditures for CIP 057-3. These funds were utilized for executing a Change Order to construct the Wildomar Trail Rehab and Restriping Improvements identified under CIP 103 as part of the CIP 057-3 Construction Contract.

Project construction is complete, and it is appropriate at this time for the City to accept the project as complete.

Contingency and Contract Change Orders

The original construction contract amount was $2,567,666.02 with an authorized 25% contingency ($641,916). The City Council subsequently authorized a 37% contingency ($950,036) to account for the Men. A few change orders were required during construction to allow for extra work requested by the City that provided additional public benefit. These change orders included:

1. Inclusion of Wildomar Trail street improvements from Margaret Lane to Western Way
2. Extension of pavement rehabilitation strategy on Orange Street, Gruwell Street and Via Sarah
3. Addition of F-Mix asphalt crack fill treatment on Slurry Seal streets
4. Striping and Signage adjustments on several Rehab and Slurry Seal streets
5. Inclusion of Bundy Canyon/Scott Road street improvements from Sunset Ave. to Murrieta Road (Menifee MOU)

At project completion, the final construction contract cost was $3,517,773 (37% increase). The Menifee MOU portion of extra work accounted for $313,241.65 (12.2% of the contingency) and is fully reimbursable to the City of Wildomar. As a result, the net contingency used within the City of Wildomar was 24.8% of the contingency.

Interwest Task Order Amendment

The total construction contract period extended beyond the originally anticipated schedule due to additional working days being granted for additional work performed and requested as part of the contract change orders. Additional Construction Management and Inspection services were needed to provide the required oversight for the extended duration of construction. With construction now complete, the City requested Interwest to prepare a First Amendment to their Task Agreement for the additional construction management and inspection services for the Project. This First Amendment is for an additional fee amount not to exceed $17,000, bringing the total Agreement amount to $126,999. This First Amendment does not include any hourly rate increases for the consultant's staff and instead honors the original billing rates as included in the Task Agreement approved on February 10, 2026. The First Amendment is included as Attachment B. Approval of this amendment will allow staff to close out its Task Agreement with Interwest for the Project.

Acceptance and Notice of Completion

AAA has completed the Project improvements in accordance with the contract documents, and the Project is ready for acceptance and filing of the Notice of Completion (NOC) with the Riverside County Recorder. If no liens or claims have been filed within 30 days of filing the NOC, the City will authorize the Contractor's escrow bank account to release the remaining 5% retention funds ($175,885) to the Contractor. City staff recommends that the City Council adopt the attached Resolution to accept the Project as complete and authorize staff to file the attached NOC (Attachment A) with the Riverside County Recorder within 10 days.

Construction, including Construction Inspection/Administration, was funded by the fund sources listed in Table 1 below. The Final amounts are estimated and will be reconciled following the close of the FY 26/27 budget.

Final costs are within the original Project budget, including subsequent budget approvals to account for the Menifee MOU Agreement and Wildomar Trail Rehab and Restriping (Measure AA transfer of $200,000) made through the FY 25/26 and FY 26/27 budget cycles. It should be noted that the total Final Costs also include City staff costs, construction management/inspection costs, as well as costs from the City's contract traffic engineer and traffic signal maintenance contractor for construction support services provided. No additional budget adjustments are necessary to close-out the Project. During construction, the 5% retention funds ($175,885) were paid to the Contractor's escrow bank account and no additional funds or budget adjustments are needed. Those funds could now be released/paid to the Contractor once the NOC is recorded and the 30-day window to file claims has surpassed.

Due to efficiencies during Construction, an estimated $378,000 in Measure A (Fund 201) and $627,421 in RMRA (Fund 501) will return to the Capital Improvement Program for re-programming. Capital Reinvestment/Menifee MOU (Fund 500) and Misc. State Funds (Fund 507) expenditures are 100% reimbursable to the City through two cooperative funding agreements with the City of Menifee and CalRecycle Rubberized Grant Program.