Special Notice / Hearing: None__
Vote Required: 4/5ths
To: Honorable Board of Supervisors
From: Tory A. Newman, Director of Public Works
Hannah Ormshaw, Parks Director
Subject: Increase the Not-to-Exceed Amount of the Agreement with Gordon N. Ball, Inc. and Corresponding Appropriation Transfer Requests for the Tunitas Creek Beach Improvements Project
[County Project No. P30T1, Project File No. E4995]
RECOMMENDATION:
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Recommendation to:
A) Adopt a resolution increasing the Director of Public Works’ authority to execute change orders to the construction agreement with Gordon N. Ball, Inc., for the Tunitas Creek Beach Improvements Project, to increase the not-to-exceed amount of $14,253,081 by an additional $926,646.71 to a new not-to-exceed amount of $15,179,727.71; and
B) Approving an Appropriation Transfer Request to appropriate funds from the Parks Capital Projects Fund Reserves in the amount of $350,000 for the funding of the Tunitas Creek Beach Improvement Project.
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BACKGROUND:
On January 31, 2023, this Board adopted Resolution No. 079437, which authorized the Director of Public Works to proceed with finalizing the plans and specifications and called for sealed bids for the Tunitas Creek Beach Improvements Project (Project).
On June 13, 2023, this Board adopted Resolution No. 079664, which adopted the plans and specifications, including conformance with general prevailing wages, as established by the Department of Industrial Relations, in the locality in which said work is to be performed for each type of workman needed to execute the contract for the Project. The resolution also authorized an agreement with Gordon N. Ball, Inc. (Contractor) for construction of the Project in the amount of $11,593,710 and authorized the Director of Public Works to execute contract change orders to grant time extensions for project completion and payment up to a maximum agreement amount not to exceed $12,753,081.
On May 6, 2025, this Board adopted Resolution No. 081138, which increased the not-to-exceed amount of the agreement with Contractor for the Project in the amount of $1,500,000 and authorized the Director of Public Works to execute contract change orders and payment up to a maximum agreement amount not to exceed $14,253,081.
On June 16, 2026, this Board approved an Appropriation Transfer Request (ATR) recognizing unanticipated revenue, to be reimbursed from the Parks Capital Project fund in the amount of $3,513,000 to the Capital Project’s Program for the funding of the Project.
DISCUSSION:
Construction of the Project with Contractor has been completed. The Department of Public Works (Department) and Contractor have been negotiating to resolve additional costs and delays experienced due to unanticipated conflicts and design challenges throughout the duration of the Project. These issues have rendered the current “not-to-exceed” amount insufficient to properly compensate Contractor for the completed work and to close out the Project.
The Project incurred significant delays and additional costs. Substantial effort and coordination with utility companies (PG&E, AT&T, and Comcast) were necessary to secure the Right-of-Way Certification and Encroachment Permit from Caltrans, and to complete the utility relocations to place overhead utility lines underground. There were also unanticipated design changes and challenges during site grading and the installation of the ADA path, handrails, and guardrails. These increased overhead costs due to unexpected delays and design changes are estimated to be approximately $926,646.71.
The Parks Capital Project Funds Reserve will reimburse the Capital Projects Program for eligible project costs associated with the Project, including final construction costs and approved change orders reflected in this appropriation.
The Department recommends that the Board consider these unanticipated conditions for the Project, and approve the recommended contract increase amount and ATR to facilitate completion of the Project. Construction issues or conflicts arise during construction, which must be addressed immediately to keep the Project moving forward. In some cases, these issues require additional compensation. The Department has worked diligently through construction of the Project to minimize additional costs and develop solutions that are timely, effective, and financially responsible.
The County Attorney has reviewed and approved the resolution and ATR as to form.
COMMUNITY IMPACT:
The Department, through this recommended action, reaffirms its commitment to advance access to improvements that serve our communities and ensures that critical construction activities can be accomplished. By completing the Project, the County will provide a source of low-cost recreation that provides coastal access, supports healthier lifestyles, strengthens community bonds, and creates opportunities for local events and inclusive recreation.
FISCAL IMPACT:
The recommended increase to complete the Project is $926,646.71. The new not-to-exceed amount of the Gordon N. Ball, Inc. construction contract is $15,179,727.71.
Approval of the ATR from the Parks Department will enable the Parks Department to appropriate funds using Parks Capital Projects Reserves to reimburse the Department for the abovementioned Project costs.
There is no impact to the General Fund.