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Carousel Tract residents raise groundwater and possible petroleum contamination concerns; city to host town hall
Summary
Residents of the Carousel Tract told the council that groundwater and slurry left from past construction have resurfaced and in some excavations produced an oily smell; homeowners reported costly sewer repairs and potential sinkhole risks. City staff said inspections occurred, Cal Water was engaged previously, and a neighborhood town hall will be scheduled.
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Several Carousel Tract homeowners told the City Council on Feb. 3 that persistent groundwater is surfacing in streets and yards after local sewer repairs, and that in some excavations the water had a strong oil smell. Homeowner Jason Aguayo said his main sewer line collapsed six months ago during excavation; repairs cost him about $100,000. Sameer Benimore and other neighbors said multiple homes now show water seepage that does not drain and that sand backfill turns to slurry when saturated, raising fears of sinkholes and potential toxic exposure.
"It crushed under the street and cost us upwards of $100,000," said Jason Aguayo, describing his household's repair costs and urging a city response. Residents asked the city to investigate whether the water is coming from a domestic source, construction disturbance, or deeper petroleum‑impacted soils.
City staff and the assistant city manager reported the issue had been investigated in the past during construction, when engineers documented fugitive water from clay formations at the bottom of excavation pits. Staff said Cal Water tested earlier excavations and determined that some historic fugitive water was not chlorinated domestic water but groundwater from the clay formation. Staff acknowledged that some recent wet yards could be a mix of chlorinated (domestic) and unchlorinated sources and said they would perform additional follow‑up, coordinate with Cal Water, and host a Carousel Tract town hall.
Council members asked staff to coordinate a neighborhood meeting and pursue further testing; staff committed to additional inspections and to report back. The council noted the fiscal and safety concerns raised by residents and asked that contact information be left with the city clerk to keep homeowners informed.
Next steps: Staff will coordinate further investigations, follow up with Cal Water where relevant, and schedule a town hall meeting in the Carousel Tract to share findings and next steps with residents.

