CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 15 Section Name: CONSENT CALENDAR Account Number: 26-3111 File ID: 26-11560 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: September 08, 2026
SUBJECT:
Marina Library Structural Improvement Project — Budget Transfer RECOMMENDATION:
Adopt a Resolution to authorize a budget transfer in the amount of $500,000 from the General Fund balance within the Capital Fund to the Marina Library Structural Improvement Project.
BACKGROUND:
The Marina Branch Public Library Restoration Project (Project) is implementing critical improvements, including foundation and structural repairs; mechanical, electrical and plumbing upgrades; accessibility improvements; exterior and landscaping improvements, and a relocated deck. The Project is currently under construction, with an estimated completion date of February 2027.
On June 16, 2025, Council approved a $5,405,000 contract with DL Falk Construction, Inc. for construction of the Project and a contingency reserve in the amount of $540,500 for unforeseen expenses. To date, approximately $40,000 of the contingency is needed for approved or pending change orders. In addition, over the course of construction, the Contractor experienced unexpected difficulties with the foundation repair and releveling scope, including the installation of the helical piles which took significantly longer than expected. This extended construction duration required additional special inspection services, extended construction management oversight, and extra involvement from the design team to ensure structural integrity and compliance. The increased costs for these professional services were approved by Council at the August 17, 2026, meeting, increasing the design agreement by $123,000 and the construction management/special inspection contract by $185,045, for a combined total of $308,045.
In addition to the helical pile issues, the Project’s Furniture and Shelving package, awarded during the July 20th City Council meeting for a total cost of $422,119.26, cost nearly $75,000 more than the designer’s estimate, primarily driven by increases in material and shipping costs and despite a Value Engineering review to identify potential cost-reduction measures.
Due to these additional expenses for the Project, staff anticipated a budget shortfall for the Project fund and planned to address the funding deficiency during the FY 2026–27 budget cycle. However, due to an oversight during the budget development process, the additional funding was not included in the adopted budget as originally intended.
Therefore, staff requests funding in the amount of $500,000 to replenish the Project fund in order to ensure the contingency reserve in the Project fund is sufficient for the remaining Project expenses. To date, the construction management team has identified approximately $380,000 in potential change orders based on current risk factors on the Project.
CITY OF SAN MATEO
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Based on the above, staff recommends approving the budget transfer for $500,000 in General Fund from the Capital Fund to the Marina Branch Public Library Restoration Project. These budget transfers are necessary to continue the construction throughout the rest of the Project. The previous original contingency reserve authorization of $540,500 will remain, and no further increases are needed at this time.
BUDGET IMPACT:
There are currently insufficient funds in the Marina Library Structural Improvements Project (665100) to fully fund the anticipated remaining project expenses. Staff is requesting a budget transfer of $500,000 to the Project budget from the Capital Fund.
ENVIRONMENTAL DETERMINATION:
This action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
STRATEGIC PLAN ALIGNMENT
This staff report supports the Infrastructure initiative.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
STAFF CONTACT
Charlie Evans, Assistant Engineer
[email protected]
(650) 522-7320