Sunset Beach council presses for engineering and legal review after Catchment 7 contractor delays

Town staff and council spent a substantial portion of the June 1 meeting reviewing problems with the Catchment 7 stormwater project, which has repeatedly missed deadlines and produced quality issues, according to staff.

The project was awarded in August 2025 with a September notice to proceed, but the contractor did not start until mid‑October and missed the December completion target. Staff described utility conflicts, failure to properly backfill and address erosion control, and basins installed at incorrect elevations that prevent proper drainage. The original base bid was $417,130.56; change orders documented to date total about $55,280.54 for unanticipated utility work; staff reported about $338,576 paid to date with roughly $133,834 still outstanding and $20,000 retained as holdback.

Councilmembers and staff said some change orders were retroactive or not well documented and agreed that the town needs a written record of defects and of contractor commitments. Staff described ongoing work (a recent sewer relocation and renewed pipe work) and said McGill Associates (engineer) expects remaining corrective work, such as lowering basins and installing a missing drain on Sixth Street, to be addressed before final sign‑off.

Council directed staff to obtain a written list of outstanding defects, to ask McGill Associates for a near‑term update, and to involve the town attorney to clarify options (including potential contract remedies or re‑procurement). Council asked staff to convene a special meeting focused on Catchment 7 to allow the engineer and contractor to answer questions and to provide the public with a clearer timeline for completion and remedial work.