Council gives consensus to tentative award of water resiliency contract and adds multiuse path funding from accommodations tax

Surf City staff presented a combined waterline resiliency package and multiuse-path add‑alternate that the town bid in a single procurement. David Price and project staff said the low bid for the resiliency elements came in below earlier estimates — roughly $5.8–5.9 million — and that the town had secured a loan package that included approximately $6.8 million with a forgivable portion and a favorable interest rate on the remainder.

Staff explained two add alternates in the package; one is the multiuse path, which the town can include at a discount because the contractor can combine the work with mainline installation. Price said the multiuse-path engineering estimate was about $1.2 million and that the add-alternate bid came in at about $664,000. Council discussed timing, the DEQ review window (about 30 days), and an anticipated start on non-public-facing work (the well) with visible work expected in mid‑summer and an overall completion window of about 18 months.

Council members expressed particular interest in how to fund the multiuse-path segment. Staff recommended and the auditor confirmed that using accommodations-tax reserves (Fund 21) for part of the path is permissible so long as a rational nexus to tourism exists; staff proposed a budget ordinance amendment to move funds from Fund 21 to the capital fund (Fund 55) to pay for the segment. Council gave consensus to proceed, with staff and the town attorney authorized to finalize contract review and execution once DEQ approval and standard contract reviews are complete.

Staff emphasized that the contract award is tentative and contingent on DEQ approval and attorney/manager review; they will present separate agenda documents showing the funding split between utility (proprietary) funds and accommodations-tax reserves so there is no commingling of funds.