What's the Name of That Book??? discussion

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The Highest Tide
SOLVED: Children's/YA
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SOLVED. YA Coming-Of-Age Realistic. Main character (M) lives in a harbor city. Has a crush on his former babysitter (F) who he realizes is a burnout and possible drug addict. Possible Spoilers. [s]
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I remember the ending of the book involved the main character being on a boat possibly with the babysitter and he realizes that the bioluminescent algae around the beach begins to glow.
Cover included water with a dark blue square containing the title with a small starfish over the title.
I bought the CD audiobook at a bookstore going out of business in 2006-2007.
*EDIT: I remembered that it involved the main character seeing a giant squid.