Additional levee project expenses in Foster City have resulted in the council approving $3.1 million in funding to address labor and resource costs and appropriating another $10 million to account for future unforeseen expenses.
The council used its March 7 meeting to approve a contract change order of $3.1 million to construction company Shimmick Construction for work on early-phased trail openings and avoid delays. It also added $300,000 to its construction contingency fund to complete the project and made a budget appropriation of $10 million, with $5 million in Measure P bonds and $5 million in city reserve funds that were established in case the project went over the Measure P bond measure. The city has issued $85 million of the $90 million Measure P bonds for the levee project. Around $1.1 million of the $3.1 million change order is being used to avoid potential delays in project trail construction milestones. The $10 million will account for any expenses currently not identified by the contractor or city. Given the additional expenses, current estimates show the project cost at completion slightly above $93 million, according to a staff report. Around 15% of the project still needs to be completed.
A staff recommendation initially called for the $10 million appropriation to be $15 million. However, Councilmember Sam Hindi expressed concern about the initial amount, although he declined to state his concerns publicly. However, he noted the issue was not with staff.
“The good news for the community is if we approve this, they are going to get on the trail earlier than anticipated,” Hindi said.
Foster City’s levee project is upgrading its 8-mile levee system to protect the city from rising sea levels and avoid the federal government mapping it as a flood zone. The project increases the levee height and width through a conventional sea wall, earthen levee or hybrid sheet pile wall. The project is also widening the levee trail for recreation use. Construction is occurring at the Bayfront and near Runco’s property, with the levee trail currently closed. The council approved the motion 5-0.
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