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Council accepts $1.5M State Coastal Conservancy reimbursement for Surfers Point Phase 2, staff pledges contract‑management fixes
Summary
After public works staff described cost overruns and contract‑administration gaps on Surfers Point Phase 2, the City Council approved acceptance of a $1.5 million grant amendment from the California State Coastal Conservancy to reimburse previously authorized contingency costs and authorized associated budget adjustments. Staff outlined monthly contract oversight and training steps to reduce recurrence.
Public Works staff told council that construction change orders caused cumulative costs to exceed previously authorized contingencies on the Surfers Point Phase 2 project. Council had previously authorized up to $1.5 million to complete the project; staff said they pursued reimbursement from the State Coastal Conservancy and the Conservancy approved a grant amendment to reimburse that amount.
Principal Engineer Matt Mechler summarized the project history, said the Conservancy approved the request and recommended council execute the 7th Amendment to grant agreement 09‑016 to accept the funds. Staff acknowledged deficiencies in contract administration, provided an after‑action memorandum (attached to the staff report) and described improvements: monthly contract review meetings across Public Works divisions, a contract‑management training in August, and closer monitoring of contingency usage and invoices.
Council questioned discrepancies in earlier staff documents about line‑item amounts; staff explained $200,000 in earlier line items was a carryover from prior budget estimates for post‑construction monitoring and that final reconciliation is ongoing, with staff committed to returning if additional funds are required. Council moved and approved acceptance of the $1.5 million grant amendment (6–0; Council Member Schumacher absent).
Outcome: Council authorized acceptance of $1.5 million in additional grant funding from the State Coastal Conservancy, approved execution of the grant amendment and any needed budget adjustments to recognize grant revenue.
