Clear Lake approves $4.63M Eighteenth Avenue contract; tribal counsel warned of pending CEQA, Brown Act and records concerns

The Clear Lake City Council on May 18 authorized a contract with Argonaut Constructors for the Eighteenth Avenue Improvement Project in the amount of $4,632,295 and authorized the city manager to approve up to 10% in unforeseen contract amendments.

Director Lave told the council the project was put out to bid in January, bids opened March 16 and Argonaut was the lowest responsible bidder; staff noted a prior April award had been rescinded due to a funding-source delay and brought the item back to the council for approval. "Staff is here tonight to represent a request for approval of the contract with Argonaut Constructors in the amount of $4,632,295," Director Lave said.

On Zoom, Lauren Bernadette, an attorney representing the Koi Nation of Northern California, said the tribe had submitted a May 16 letter outlining three requests: do not proceed while a CEQA action the tribe filed is pending because construction before resolution could create risk and remedial costs; cure an alleged Brown Act violation after a contract rescission at the April 20 meeting that the tribe says was not properly on the posted agenda; and promptly fulfill a Public Records Act request for documents related to the project. "The city could face significant costs and remediation work if the tribe prevails in the CEQA litigation after the city has already commenced construction," Bernadette said.

City manager Flora and the city attorney (Mr. Jones) responded that under state law environmental review is presumed to comply with CEQA absent a court order and that the council had the discretion to proceed; they said the prior rescission could be cured by action taken on a properly posted agenda tonight and that the city would comply with the Public Records Act. "We received the request, and we will comply with providing the documents as required under the law," Mr. Jones said.

Council member Kramer moved to authorize the contract and the contingency authority; Council member Slooton seconded. The motion passed unanimously with Council member Overton absent.

Why it matters: The item involves a multimillion-dollar capital contract, state environmental law (CEQA) and a tribal party that has signaled an active legal challenge; potential litigation or a court finding could require project delays, modifications or remediation costs. Staff said the California Transportation Commission approved a related funding allocation and that CTC and Caltrans staff had reviewed the environmental documents and were comfortable with the work proceeding.

Next steps: Staff will execute the contract with Argonaut Constructors and monitor any legal developments; the city clerk and city attorney will process the Public Records Act responses requested by the Koi Nation. The council took no further action to pause the contract.