Council approves Promenade construction contract and management team; city to reallocate CIP funds to cover gap

The Laguna Beach City Council approved awarding the Promenade permanent-conversion construction contract and associated construction-management services, authorizing contingencies and a one-time CIP funding transfer to meet a supplemental funding need.

City Engineer Tom Perez said staff received four construction bids and found Superb Engineering to be the responsive low bidder with a contract amount of "just over $5,500,000." Council also authorized change-order authority not to exceed $1,100,000 for unforeseen conditions. For construction management and inspection services, staff recommended awarding a contract to NextGen not to exceed $340,000 with a small contingency for change orders.

Consultant Sarah Curran (Somis) explained the FEMA-related no-rise analysis and hydrology work supporting the project’s compliance with floodplain requirements. Perez told council the project budget carried approximately $2.8 million programmed for the Forest Promenade and that staff identified a supplemental funding need of about $4.4 million; staff proposed pulling funds from inactive or not-ready CIP projects and replenishing them in future cycles.

Council members pressed staff on contingency levels, mock-up protections in contract documents and public outreach to businesses; staff said mock-up language and inspection regimes give the city review authority over proposed materials and workmanship and that a local construction manager and outreach specialist would be assigned.

Following public comment both raising concerns about cost and support for the project, council voted to award the contracts, authorize contingencies, and approve CIP transfers as recommended; the motion passed unanimously.