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Council authorizes $1.5 million to cover Surfers Point Phase 2 change orders
Summary
After staff reported unforeseen subsurface soils, deteriorated fairgrounds sewer laterals and required electrical upgrades, the council authorized a $1.5 million funding increase to construction contract PW25‑1143 to cover cumulative change orders and instructed staff to pursue grant augmentation from the Coastal Conservancy.
The City Council voted unanimously to authorize $1.5 million in additional funding for construction contract PW25‑1143 (CA Rasmusen Inc.) to cover construction change orders on the Surfers Point Managed Retreat Phase 2 project.
Public Works principal engineer Matt Meckler described the work: the project restores dune and beach habitat, installs a buried cobble mattress for long‑term erosion protection and relocates a bike‑and‑pedestrian path. It received a $16.2 million construction award in June 2023 and completes the eastward phase of a multi‑phase shoreline resilience effort. Meckler said construction uncovered “pumping soils” beneath the former parking lot — unsuitable substrata that required larger excavation and replacement — and found deteriorated fairgrounds sewer laterals and electrical infrastructure that needed upgrades.
"Staff is requesting authorization of 1.5 million in additional funding," Meckler said, noting staff had verbal support from Coastal Conservancy staff for a grant augmentation and that Measure O funds would be used as a backstop if the conservancy does not approve an augmentation. The city’s chief financial officer explained that repairing a failing sewer lateral posed a public‑health risk during a high‑use event (Strawberry Festival), which justified emergency action to protect the public.
Council members pressed staff on process questions: why the work proceeded past contingency without prior council authorization, what the original contingency amount was (about $1,389,967), and whether the city had presented the use of Measure O funds to the Measure O committee. Public works staff acknowledged process shortcomings, describing training and process improvements for construction managers going forward.
Councilmember Mcrenolds said he was troubled that change orders had proceeded without prior council authorization; Deputy Mayor Halter and others described operational reasons staff kept construction moving to avoid public‑health hazards and long delays. Deputy Mayor Halter moved to approve the staff recommendation; Councilmember Duran seconded. The motion passed 7–0 (Duran, Mcrenolds, Mang, Schumacher, Compost, Deputy Mayor Halter, Mayor Janette Sanchez Placios voting yes).
Why it matters: The Surfers Point work is a visible coastline resilience project; the additional funding covers unforeseen but material construction costs and raises questions about internal controls for project change orders. Staff will pursue Conservancy grant augmentation and, if awarded, reimburse Measure O funds.
