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Finance committee approves $4.7 million Measure C transfer to replenish police station contingency

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Summary

The Santa Barbara City Finance Committee unanimously approved a staff request to appropriate $4.7 million in Measure C funds to replenish contingency for the new police station project, citing contaminated soil removal and other unforeseen site work.

The Santa Barbara City Finance Committee on Oct. 14 unanimously approved a staff recommendation to appropriate $4,700,000 in Measure C funds to replenish contingency for the city's new police station project.

City Finance Director Keith Demartini introduced the request and turned the presentation over to Brad Hess, the city's principal project manager for the police station, who provided a project update. Derek Troya, construction manager with the Tynan Group, told the committee that environmental sampling found impacted (non-hazardous) artificial fill across the site and that about 60 soil samples were taken. The material, found in some areas from roughly seven feet depth up to the surface, was removed and hauled to landfills in San Luis Obispo and Kettleman City.

Troya said the initial remediation estimate was about $7,000,000 but, through collaboration with the contractor and trade partners, the cost was reduced to roughly $4,000,000. Because that work occurred early in construction, the team used about 40% of the project contingency within the first two months, a level staff called excessive for that phase of work.

The $4.7 million request covers the soil-removal costs and two additional unforeseen items: a water-line relocation on Santa Barbara Street to move a service line out of the building footprint and a microgrid controller to support the building's net-zero capacity. Demartini said any contingency not spent by project completion in September 2027 would be returned to the city.

Committee discussion was brief; no public speakers addressed the item. A committee member moved approval and another seconded. The motion passed unanimously.

The project began after Measure C passed in 2017 and construction started this year. Hess showed site photos, including excavated areas and an aerial drone image showing the police building and a separate future parking structure site. Troya said the team's remediation approach minimized impacts to the overall project schedule.

The committee approved the appropriation to replenish contingency, and staff will incorporate the transfer into project accounting and report back as the project progresses.