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Council seeks USDA funding clarity for Portuguese Bend sewer project after $1M award; staff may seek $5k–$10k PER update

Rolling Hills City Council · June 22, 2026
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Summary

Council received an update on phase 1 of the Portuguese Bend / Rolling Hills Road sewer-main project, heard that the city has $1 million in congressional community funding, and directed staff to investigate USDA funding options and supplemental sources after staff said USDA requires an updated engineering report (estimated $5,000–$10,000) before continuing its review.

Staff briefed council on the status of phase 1 of the Portuguese Bend / Rolling Hills Road sewer-main project and the complications of using the $1 million in congressional community funding the city received in 2024.

As staff summarized, "on 03/18/2024, the city did receive notice that the application for the fiscal year 24 local project funding through Representative Liu's office was signed into law... and secured an additional $1,000,000 for that project." Staff said USDA review requires an updated preliminary engineering report (PER) with a liberal cost projection and a 10–15% contingency; staff estimated the PER update would cost approximately $5,000–$10,000. USDA would typically reimburse eligible costs after project completion and expects compliance with NEPA and Buy America rules.

Council members debated whether the city should spend to update the PER given large escalation risks; some members worried the $1 million would be insufficient as current cost estimates have risen from earlier projections. After public comment highlighting history of escalating estimates, council directed staff to contact USDA and the congressional office for funding and financing options and to return with those options and any path to supplement the federal community funding before committing additional city funds.