After encountering some bumps along the way, Oak Harbor’s Public Works department needs extra funding to add some finishing touches to the Northeast Seventh Avenue reconstruction project.

During a meeting last week, the city council unanimously approved the addition of a 10% contingency for up to $201,156, increasing the total construction spending authority from $2.413 million to $2.615 million.

While the project is mostly complete, City Engineer Alex Warner said the extra funds would cover the cost of landscaping and hardscaping, striping the roadway and improving signage. The project is expected to wrap up within the next month or two.

As of March 4, the total spent on the improvements was $2.265 million, with the remaining work expected to cost an additional $260,746, according to information presented at the meeting.

Public Works has been in contact with the Washington State Department of Transportation and the Transportation Improvement Board to have the added costs covered by existing grant funding, Warner said. While most of the increases are expected to be paid for by grants, the rest will be covered by local dollars.

Deputy City Administrator and Finance Director David Goldman said the extra cost will be included in a future budget amendment, with transportation impact fees available to cover the local share.

According to information presented during the meeting, the contract with SRV Construction that was approved by the council in May 2024 amounted to $2.011 million. A contingency of $402,313, or 20%, brought the total spending authority to $2.413 million.

Councilmember Bryan Stucky asked if the 10% contingency will be enough, or if there is a possibility the council will be asked to vote on another increase in the future, to which Warner said he is confident that won’t be the case.

This project was long overdue and has had a “challenging history,” Warner said.

Although the city had a grant for the project over ten years ago, it lost the matching funds to address the discovery of Indigenous human remains during a construction project on Pioneer Way, according to a News-Times story published in 2021.

According to Warner, the project was at some point estimated to cost $7.5 million, with only $1.2 million available to fund it. The scope was narrowed, bringing the cost to $2.5 million while the city received $1 million in federal and state grants and had local dollars available to rely on.

More challenges arose when the project broke ground in August 2024, requiring change orders. According to Warner, information about water main connections, water services and roadway and curb elevations was incomplete. TranTech Engineering — the consulting firm hired years prior by the previous administration — is “no longer a functioning engineering consulting firm,” Warner wrote in his letter to the council.

Other challenges and cost increases were brought by the surrounding wetlands. Warner also explained that the project incurred extra costs to address the unstable subsurface and create a product that would last many years. For example, while building a concrete-reinforced wall would have been the cheaper option, it would have cracked after a few months, he said. On the other hand, the layered wall topped with asphalt is more flexible and expected to last much longer.

Until last summer, the street lacked sidewalks, bike lanes, street lighting and a proper stormwater system. Now it features a multi-modal shared use path, enhanced street lighting, narrower lanes to reduce the speed of cars, new water mains and services and more, according to the city’s website.

Mayor Ronnie Wright, Mayor Pro Tempore Tara Hizon and Councilmember James Marrow said they were pleased with the results, despite the challenges. Community members, too, have been providing positive feedback, Warner said.

“We’ve turned lemons into lemonade,” Wright said.