CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 30, 2026 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF INDIAN CANYON DRIVE SEWER PHASE 2, CITY PROJECT 01-11B
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
The construction of the Indian Canyon Sewer Phase 2, (the “Project”) has been completed. Formal City Council acceptance of the Project is required to document the completion of public works improvements and to allow the City’s filing of a Notice of Completion with the Riverside County Recorder in accordance with Section 9200 of the California Civil Code.
RECOMMENDATION:
1) Accept the public works improvement identified as Indian Canyon Sewer Phase 2, City Project 01-11B, as completed in accordance with the plans and specifications. 2) Authorize the City Engineer to execute and file for recordation with the Riverside County Recorder a Notice of Completion for Indian Canyon Sewer Phase 2 City Project 01-11B.
BACKGROUND:
On April 23, 2025, the City Council awarded construction contracts in the amount of $8,108,067 to GRBCON Inc. (the “Contractor”); $526,654 to NV5 Inc. for Construction Management and material inspections; and $27,000 to The Solis Group for Workforce Agreement administration for the Project. The location of the project is shown in Figure 1 on the following page.
City Council Staff Report
September 30, 2026 -- Page 2
Acceptance of Indian Canyon Drive Sewer Phase 2, City Project 01-11B Figure 1 – Project Location
STAFF ANALYSIS:
Construction of the Project started November 17, 2025, and was determined to be substantially completed on June 13, 2026. Staff recommends City Council accept the completed Project as required by Section 9200 of the California Civil Code and authorize the City Engineer to file and record a Notice of Completion to be submitted to the County.
A copy of the Notice of Completion is included as Attachment A.
ENVIRONMENTAL ASSESSMENT:
Section 21084 of the California Public Resources Code requires Guidelines for Implementation of CEQA. Approval of the requested action will allow Staff to comply with CEQA. In accordance with the CEQA Guidelines, the City acting as "Lead Agency," completed an environmental analysis of the potential impacts resulting from construction of the Sewer Line. An initial environmental review of the sewer line determined that an Initial Study leading to a Mitigated Negative Declaration ("IS/MND") is the appropriate environmental document, and that an Environmental Impact Report was not necessary.
The City circulated a Tiered IS/MND for the Sewer Line and made it available for comments between September 17, 2020 and October 29, 2020. The City received 4 comments, and responses were incorporated into the final Tiered IS/MND. The final document was recirculated for comments between November 1, 2021 and December 1, 2021. Two comments were received and incorporated into the final document. In accordance with the CEQA Guidelines, following public review of the IS/MND, the City Council adopted it on September 1, 2022. A final copy of the IS/MND is located at the Office of the City Clerk and the City filed a Notice of Determination on September 8, 2022.
City Council Staff Report
September 30, 2026 -- Page 3
Acceptance of Indian Canyon Drive Sewer Phase 2, City Project 01-11B ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The original construction contract was $8,108,067. During construction, four change orders totaling $425,549.64 were issued to address unexpected field conditions. These conditions consisted of tunneling work, CCTV work, utility conflict realignment, obstruction removals, delays associated with microtunneling, and a shift to open-cut trenching. A fifth, final balancing change order of $128,130.45 to cover increased work for utility investigation, material quantities for road/trench repair, and unused bid items will be issued. The change order total of $553,680.09 is within the $1,225,000 Project contingency. The final construction contract will be $8,661,747.09 as indicated in the Final Balancing Change Order, included as Attachment B.
The City is currently holding retention funds in the amount of $425,430.18 pending acceptance of the improvements and the filing of the Notice of Completion with the County Recorder’s Office.
REVIEWED BY:
City Engineer: Joel Montalvo
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Notice of Completion
B. Final Balancing Change Order No. 5