Staff Report
City Council
Item No. 5.C
Meeting Date: July 22, 2026
From: John A. Corella, Director of Public Works
Title: Approval of a Budget Adjustment to the CWSRF Septic-to-Sewer Planning Project (C01020), Acceptance of Additional (Clean Water State Revolving Fund) CWSRF Funding, and Approval of Additional Scope of Work Proposals from Ardurra, Inc. and Fomotor, Inc.
RECOMMENDATION:
Approve a budget adjustment to the CWSRF Septic-to-Sewer Planning Project (C01020), utilizing additional Clean Water State Revolving Fund (CWSRF) funding awarded by the California State Water Resources Control Board (SWRCB); and authorize the City Engineer to accept the proposals from Ardurra Group, Inc. and Fomotor, Inc. for additional scope of work necessary to complete the project.
BACKGROUND:
The Clean Water State Revolving Fund (CWSRF), administered by the California State Water Resources Control Board (SWRCB), provides funding for a variety of water quality improvement projects, including septic-to-sewer conversion projects. In August 2024, the City of Cathedral City was awarded $2,474,070 through the CWSRF Septic-to-Sewer Planning Program (SWRCB Project No. C-06-8696-110) to evaluate, design, and prepare necessary construction documents to connect six (6) existing residential areas currently utilizing septic systems to municipal sewer service. A map of the project areas is included in Attachment 1.
The municipal sewer systems within Cathedral City are owned, operated, and maintained by the Coachella Valley Water District (CVWD) and the Desert Water Agency (DWA). The project includes the following service areas:
CVWD Service Area
Whispering Palms Neighborhood (Whitewater area)
South City (Ocotillo Park area)
Papaya/Pomegranate Lane
Royal Palms Mobile Home Park
Caliente Sands Mobile Home Park
DWA Service Area
Lakeview Villas Condominiums
On March 26, 2025, the City Council approved a Professional Services Agreement with Ardurra Group, Inc. in the amount of $2,178,017.56 to prepare Preliminary Engineering Reports (PERs), environmental documentation, construction funding applications, and Plans, Specifications, and Estimates (PS&E) necessary to fulfill the requirements of the CWSRF Agreement.
As of July 2026, Ardurra has completed the PERs for both the CVWD and DWA service areas, which have been approved by SWRCB. The project has subsequently advanced into environmental review, preparation of PS&E, tribal consultation, and development of the CWSRF construction funding applications.
Additionally, Memoranda of Understanding between the city, CVWD, and DWA have been executed establishing the respective responsibilities for project delivery, with the city responsible for planning, design, and environmental clearance, and the water agencies responsible for construction and operation of the sewer infrastructure within their service areas.
Since the commencement of the project, additional technical requirements, coordination efforts, and design complexities have been identified that required modifications to the approved project scope, schedule, and budget.
On February 25, 2026, the city submitted an amendment request to the SWRCB requesting additional funding, modifications to the project scope, and an extension of the project schedule.
On May 29, 2026, the SWRCB approved the city's amendment request in its entirety and executed Amendment No. 1 to the grant agreement, increasing the total grant funding award by $94,898.56, revising the project scope, and extending the project completion schedule.
DISCUSSION:
As part of Amendment No. 1 to the CWSRF Grant Agreement approved by SWRCB, additional scope of work was authorized as reimbursable activities to address newly identified right-of-way requirements and increased design complexity. Staff are requesting authorization to proceed with accepting proposals from consultants for the services necessary to complete these additional project requirements.
1. Utility Easement Acquisition and Bureau of Indian Affairs Coordination Following consultation with the Agua Caliente Band of Cahuilla Indians (ACBCI), it was determined that utility easements will be required to construct sewer improvements within the Royal Palms Mobile Home Park area. Additionally, existing rights-of-way on Date Palm Drive adjacent to the project area are limited to highway purposes and cannot be utilized for utility infrastructure under current federal requirements.
As a result, the project requires acquisition of two (2) permanent utility easements and one (1) temporary construction easement, all of which require review and approval by the Bureau of Indian Affairs (BIA). These activities were not anticipated during preparation of the original grant application.
To support these efforts, staff requested proposals from Ardurra, Inc. (Project Design Consultant) and Fomotor, Inc. (City On-Call Consultant for Land Surveying) for surveying, mapping, easement preparation, appraisal coordination, and BIA processing services.
Consultant Cost Proposal
Ardurra (Project Design Consultant) $52,632.00
Fomotor (City On-Call Surveyor) $45,000.00
Staff recommend acceptance of the proposal submitted by Fomotor, as it provides the necessary scope of services at the lower cost. Staff also recommend a contingency of $5,000 for title status report fees.
2. Increased Design Effort
As design development progressed, the project team identified significant increases in the amount of infrastructure required to serve several project areas compared to the assumptions used during the original grant application process.
The refined project design includes approximately 120 additional septic-to-sewer connections, a 53 percent increase in 8-inch sewer pipeline lengths, additional trunk sewer upsizing, and substantially greater design complexity associated with mobile home parks and condominium developments.
As a result, Ardurra submitted an amendment request amount of $298,360 for additional design services necessary to complete PS&E for the affected project areas.
3. Additional Project Scope and Schedule Modifications
To accommodate the increased project complexity and anticipated BIA processing timelines, the amendment request to the SWRCB included additional scope and schedule modifications.
Staff requested authorization to divide the CVWD service area into two (2) separate CWSRF construction funding applications. Under the revised approach, Royal Palms Mobile Home Park and Caliente Sands Mobile Home Park will proceed as one (1) construction package, while Whispering Palms, South City, and Papaya/Pomegranate Lane will proceed as a separate construction package. This modification will allow the single-family residential areas to advance while federal easement approvals are obtained for the mobile home park areas.
Staff also requested an extension of the project completion date from June 30, 2027, to March 31, 2028, with a final reimbursement deadline of September 30, 2028, to accommodate the additional coordination and permitting requirements.
Summary
The city submitted an amendment request to SWRCB requesting these scope modifications and an additional $94,898.56 in grant funding. The SWRCB approved the city's request in its entirety and executed Amendment No. 1 to the funding agreement.
A full copy of the SWRCB amendment request, including the exhibits listed below, is attached to this staff report as Attachment 2.
Royal Palms Mobile Home Park necessary utility easements map Project schedule update
Fomotor proposal for utility easement coordination and approval with BIA Ardurra amendment request for increased design effort
Revised project budget
Staff recommend that City Council approve a budget adjustment to the CWSRF Septic-to- Sewer Planning Project (C01020), utilizing additional CWSRF funding awarded by the SWRCB; and authorize the City Engineer to accept the proposals from Ardurra Group, Inc. and Fomotor, Inc. for additional scope of work necessary to complete the project.
FISCAL IMPACT:
The original CWSRF grant award totaled $2,474,070. Of this amount, $42,080 was utilized to reimburse the city for preparation of the original planning grant application, leaving $2,431,990 available for the Septic-to-Sewer Planning Project.
CWSRF Grant Award $2,474,070
Planning Grant Application Services ($42,080)
Available Budget for Septic to Sewer Planning Project $2,431,990 The City Council awarded a contract to Ardurra in the amount of $2,178,017.56 and approved a contingency of $253,972.44. Following payment of $511 in advertising costs, the remaining project contingency balance is $253,461.44.
Available Budget for Septic to Sewer Planning Project $2,431,990.00 Ardurra Professional Design Service Cost ($2,178,528.56) Advertising Cost ($511.00)
Remaining Project Contingency $253,461.44
The total cost of the additional scope of work summarized in this staff report is as follows:
Ardurra- Additional PS&E $298,360.00
Fomotor- Easement Approval and BIA Coordination $45,000.00 Contingency for Title Status Report Fees $5,000.00
Total Cost for Additional Scope of Work $348,360.00
After applying the remaining project contingency, the city requested additional funding from SWRCB in the amount of $94,898.56.
Total Cost for Additional Scope of Work $348,360.00
Remaining Project Contingency ($253,461.44)
Amendment Request Amount $94,898.56
On May 29, 2026, SWRCB approved the full funding request, increasing the total project budget from $2,474,070.00 to $2,568,968.56. As such, all necessary increased scope of work proposals can be fully budgeted using CWSRF grant funding.
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT
ONE TIME
or
ONGOING
2026-
2027
CWSRF Septic
to Sewer
Planning Project
331-100-150-
156-8600-8601 C01020 $2,568,986.56 ONE TIME
2026-
2027 Total $2,568,986.56
FIVE-YEAR STRATEGIC PLAN:
Goal B: Community Investments
Objective: Cathedral City roads, gateways, public spaces, and other infrastructure are well planned, designed, constructed, and maintained.
Action B-9: Continue to work on Septic to Sewer grant.
ATTACHMENTS:
1. Project Locations Map
2. SWRCB Amendment Request
3. Amendment No. 1 to CWSRF Planning Grant Agreement