Staff Report
City Council
Item No. 6.C
Meeting Date: August 13, 2025
From: John A. Corella, Director of Public Works
Title: Amendment No. 1 to the Professional Services Agreement with Willdan Engineering, Inc. for the Sarah Street Area Assessment District Formation Phase 2A.
RECOMMENDATION:
To approve Amendment No. 1 to the Professional Services Agreement with Willdan Engineering, Inc. to extend the term of the agreement for the Sarah Street Assessment District Formation Project – Phase 2A; authorize a budget adjustment in the amount of $15,131.74 to continue project funding; and authorize the City Manager to execute this Amendment No. 1.
BACKGROUND:
On January 4, 2023, the City Council approved an agreement with Woodard & Curran (Consultant) to provide Phase 1 Assessment District support services. The scope of work included public outreach related to the potential formation of an assessment district in the combined Sarah Street area, which encompasses the following:
Agua Caliente Trail Area
Sarah Street Area
Bochner Family Property
On November 29, 2023, the City Council awarded a professional services agreement to Willdan Engineering, Inc. (Willdan) to provide Phase 2A preliminary design services for the combined Sarah Street area.
A community update meeting was held on November 14, 2024, at City Hall to inform property owners of the progress on the assessment district effort. Attendees included two representatives from Willdan, three property owners, and City staff.
During the meeting, Willdan presented an overview of the project, which included the proposed scope of improvements, preliminary construction cost estimates, available financing mechanisms, and an explanation of the assessment district formation process. A summary of the proposed improvements and meeting outcomes by area is provided below:
Agua Caliente Trail Area:
The proposed improvements within the designated assessment district included streets, water and sewer systems, gas and electrical utilities.
Two property owners from the Agua Caliente Trail area attended the meeting and expressed concern about the high preliminary assessment estimates. Based on their input, property owners in this area indicated they did not wish to move forward with assessment district formation.
Bochner Family Property:
The proposed improvements within the assessment district for the Bochner Family Property included sewer and electrical installations. These improvements are proposed to be extended to the property line to provide for future connections upon development.
No representatives from this property attended the meeting, so staff could not gauge interest or receive feedback.
Sarah Street Area:
Improvements proposed for the Sarah Street Area were limited to sewer infrastructure, as all other utilities are already available.
One property owner attended the meeting and expressed interest in proceeding with the preliminary design for the sewer assessment district formation. Based on this limited input, staff identified the need to further assess interest among other property owners in the area before making a recommendation.
DISCUSSION:
Since the execution of the agreement, Willdan Engineering has completed several tasks, including utility coordination, preliminary exhibits, a preliminary sewer memorandum, and an engineer’s opinion of probable cost. These tasks supported the November 14, 2024, community meeting presentation.
Following the feedback from the Sarah Street property owner, Willdan refined the project scope to focus exclusively on the Sarah Street area. The engineer’s opinion of probable cost was subsequently updated to reflect this revised scope.
Due to this refined scope and the need for continued community engagement, an extension of the agreement term is necessary to complete additional tasks such as hosting another community meeting with the Sarah Street property owners, distributing a postcard survey, and analyzing the level of interest in proceeding with assessment district formation.
A follow-up community meeting is scheduled for July 30, 2025, to further assess interest from other property owners prior to proceeding with the postcard survey and making a formal recommendation on whether to proceed with the assessment district formation for the Sarah Street area. The results of this meeting with the Sarah Street property owners will be presented tonight.
The original agreement with Willdan expired on November 29, 2024. A retroactive extension is necessary to allow sufficient time to complete these additional Phase 2A tasks.
Amendment No. 1, attached to this report, proposes extending the agreement term by thirteen (13) months, through December 31, 2025, resulting in a total agreement term of twenty-five (25) months. The amendment does not modify the scope of work or compensation.
Because the project was originally anticipated to be completed within FY 2024-25, no funds were allocated for Phase 2A Preliminary Design Services in the FY 2025-26 Budget. A budget adjustment in the amount of $15,131.74 is required to complete the remaining work on this phase of the project.
City staff recommend the City Council approve Amendment No. 1 to the Professional Services Agreement with Willdan Engineering, Inc. to extend the term of the agreement for the Sarah Street Assessment District Formation Project, Phase 2A; authorize a budget adjustment in the amount of $15,131.74 to continue project funding; and authorize the City Manager to execute this Amendment No. 1.
FISCAL IMPACT:
This Amendment No. 1 to the Professional Services Agreement with Willdan Engineering, Inc., modifying Section 1 “Term of Agreement”, does not increase, modify, or affect the total compensation of the agreement.
The original agreement with Willdan was approved in the amount of $49,300.00, with a fifteen percent (15%) contingency of $7,395.00, resulting in a total approved budget of $56,695.00, as outlined below:
Willdan Engineering Cost $49,300.00
15% Contingency $ 7,395.00
Total Approved Budget $56,695.00
This approved budget was funded through the Engineering Professional and Technical Services account (100-100-150-156-8600-8601) within the FY 2023-24 and FY 2024-25.
The remaining available balance includes a contract balance of $7,736.74, and a contingency balance of $7,395.00. for a total remaining budget in the amount of $15,131.74 as shown below.
Willdan Engineering Contract Balance $ 7,736.74
Contingency Balance $ 7,395.00
Total Remaining Budget $15,131.74
A budget adjustment is required to carry over the remaining project funds and complete the remaining work under Phase 2A. Staff are requesting to roll over the total remaining budget of $15,131.74 into the FY 2025-26 Engineering Professional and Technical Services budget.
FISCAL
YEAR
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME
Or
ONGOING
2025-2026
Sarah Street
Assessment
District, Phase 2A
100-100-150-
156-8600-8601 C01020 $15,131.74 One Time
2025-2026 Total $15,131.74
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:
Amendment No. 1