Public works director Iris Lee told the council that the lifeguard headquarters and police substation — a building originating in the 1930s that has been modified in phases — needs major work and may require a tear-down and full replacement.

Lee said an updated assessment completed in 2020 envisioned an approximately 8,500-square-foot lifeguard headquarter/substation and that, accounting for escalation, the project would cost on the order of $15,000,000 today. “There is currently about $4,400,000 sitting in the bank as seed money,” Lee said, noting that the existing funds are insufficient and that the city faces roughly a $10 million delta to complete a full rebuild.

Lee described two primary staff recommendations: (1) issue an RFP for a project team (design, permitting, environmental and geotechnical) to reach shovel-ready status — budgeted at roughly $1–2 million depending on the level of design and permitting — and (2) pursue external funding sources (grants, state iBank debt, naming rights, private donors or congressional-directed funding) while aligning the project with climate-resilience and coastal-benefit elements when eligible.

Councilmembers debated whether to pursue the full project at once or use a phased approach (prioritizing garage space, locker rooms and critical systems first). Members asked staff to investigate Coastal Commission requirements, to target grants that require matching funds, and to weigh the risk that lengthy permitting plus later delays could force redoing early design work. Staff said some grant programs expect local matches of 20–50% unless a specific federal appropriation applies.

Council asked staff to bring back a roadmap and a proposed working-group structure by February 28, 2026 to identify funding strategies, grant-writing and legislative advocacy needs, and possible phased deliverables. No formal appropriation or final design was approved at the session.