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ITEM NO. 3
Canyon Lake CA logo CITY COUNCIL STAFF REPORT                   
 
 
 
TO:
 
  Honorable Mayor and Members of the City Council
 
FROM:
 
  Arron Brown, City Manager
 
BY:
 
  Arron Brown, City Manager
 
DATE:
 
  03/11/2026
 
SUBJECT:  
Consideration of Amendment No. 2 and Amendment No. 3 to the Professional Services Agreement with Interwest Consulting Group for Design Services for the Railroad Canyon Road Corridor Safety Improvements Project for a Combined Total of $173,175
     


Recommendation:

Approve Amendment No. 2 and Amendment No. 3 to the professional services agreement with Interwest Consulting Group for design services for the Railroad Canyon Road Corridor Safety Improvements Project for a combined total of $173,175 and authorize the City Manager to execute the Amendments.  

Background/Analysis:

The City and Interwest Consulting Group entered into a Professional Services Agreement ("Agreement") for Design Services for the Railroad Canyon Road Corridor Safety Improvements Project ("HSIP")on July 14, 2023.  Interwest's scope of work for the Agreement included HSIP grant, design, and project management services.  On June 19, 2024, the City executed Amendment #1 to the Agreement to address additional project scope requirements identified during the design phase.  Amendment #1 increased the project amount by $14,045.  The HSIP Project was advertised on ActiveBidder on June 20, 2025.
 

A construction contract was awarded to All American Asphalt, Inc. on August 13, 2025, for the sum of $2,523,357.  At the time of award, the City only had $1,207,980 allocated in HSIP funds towards the Project. Interwest worked with Caltrans to request more HSIP funds and eventually Caltrans agreed to allocate a total of $2,000,000 towards the HSIP Project. The additional allocation of HSIP funds from Caltrans ensured that the City was able to fund the Project. Securing the additional funding required additional grant services than was originally budgeted for in the Agreement with Interwest. Construction of the HSIP Project commenced on October 27, 2025, and was anticipated to be completed on February 19, 2026. All American Asphalt is now anticipated to complete the HSIP Project on June 24, 2026, due to an expanded scope of work and delays in material delivery.
 

Interwest will not have enough budget to complete the project management and grant services under the current Agreement. Therefore, to ensure that the HSIP Project is completed in an efficient manner, it is recommended that the City Council authorize the City Manager to execute Amendment #2 and Amendment #3 to the Agreement for a combined total of $173,175.00.


Fiscal Impact Yes/No:
Yes

Additional Fiscal Information:

Approval of Amendment #2 ($97,075) and Amendment #3 ($76,100) would increase the agreement by a combined total of $173,175. The additional costs are associated with expanded scope, extended construction duration, and additional HSIP grant administration requirements necessary to secure and manage increased federal funding allocations.

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