San Clemente Council accepts emergency repairs at Kasa Romantica and directs insurance negotiation, independent cost review

San Clemente—ity Council on June 16 accepted emergency slope stabilization work at Kasa Romantica and directed staff to pursue additional insurance reimbursement and provide a more detailed cost estimate by the council ugust meeting.

Deputy Public Works Director Sean Ryan briefed the council on extensive stabilization work undertaken after a major slide at the historic Casa Romantica property. He said geotechnical repairs completed earlier this year included grade beams, tiebacks and geogrid to halt slope creep following a high-water event. "We installed four rows of grade beams and geogrid and addressed persistent groundwater outflow," Ryan said. He told the council the full stabilization effort has required significant contractor work and that the city had paid the original contract price; approximately $3.3 million in additional work remained unpaid and staff is pursuing insurance reimbursement through the California Joint Powers Insurance Authority (CJPIA).

Ryan said CJPIA's current valuation for like-for-like repairs to amenities and grounds stands at about $2.5 million, while staff expects an additional roughly $1.35 million may be recoverable for drainage-related repairs pending documentation and review. "Their assessor has valued the repairs at $2.5 million, but until we get into construction we won't know if that number will hold," Ryan said.

Council members worried the insurer—igure might understate likely costs and asked staff both to negotiate with CJPIA and to obtain an independent construction-cost estimate. "We've invested millions to stabilize the slope," Councilmember Victor said. "We should pursue a like-for-like restoration, but we also need an independent estimate so we know whether $2.5 million is realistic." Councilmember Zen Mark asked staff to break proposed repairs into clearer cost categories (structural stabilization, drainage, surface amenities and amphitheater elements) to improve negotiation leverage with the insurer.

Members of the Casa Romantica community urged restoration of the amphitheater and grounds. "Casa Romantica is a city-owned jewel that draws visitors and supports local cultural programming," said Jackie Gross, executive director at Casa Romantica. Other volunteers and former contractors said some restoration work could be completed at lower cost with private contributions or donations of labor and materials.

The council voted to: accept a notice of completion for Phase 1 emergency work; authorize payment actions needed to close out contracts (including the outstanding approximately $3.3 million amendment); direct staff to continue insurance discussions with CJPIA regarding the $1.35 million drainage-related claim and the $2.5 million like-for-like valuation; and return to council with an independent construction-cost estimate and a coastal-permit plan for like-for-like restoration. The council set an informational update for Aug. 18.

What happens next: staff will continue CJPIA negotiations, commission an independent cost review, begin preliminary coastal-permit work for a like-for-like restoration plan, and return to council in August with refined estimates and options. If additional damaged items push costs above the insurer's payout, Ryan said CJPIA has indicated it may pay amounts above its initial valuation if properly documented and agreed upon.

Authorities referenced in the meeting included CJPIA insurance procedures and the California Coastal Commission review process for shoreline structures. The council ction accepted the emergency repairs and set direction for next steps rather than committing to a single restoration scope.