TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Joseph DeFrancesco, Interim Public Works Director
Gilbert Gamboa, City Engineer
Bianca Cardenas, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution Approving Change Order No. 1 to the Construction Agreement with Carbon Activated Corporation for Additional Work in the Amount of $98,854.56 Regarding the Interim Parking Lot 3 Project for a Total Contract Amount of $1,259,609.56; Reappropriating $65,000 in the Parking Lot 3 Redevelopment Demolition Project to the Interim Parking Lot 3 Project Within the Parking Fund; and Accepting as Complete Work Performed by Carbon Activated Corporation and American Wrecking, Inc. Regarding the Parking Lot 3 Project (Unbudgeted) (Interim Public Works Director DeFrancesco).
A) ADOPT RESOLUTION NO. 26-0009
B) APPROVE REAPPROPRIATION OF FUNDS
C) ACCEPT
D) AUTHORIZE
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council:
1) Adopt Resolution No. 26-0009, approving Change Order No. 1 to the construction agreement with Carbon Activated Corporation for additional work in the amount of $98,854.56 regarding the Interim Parking Lot 3 Project for a total contract amount of $1,259,609.56;
2) Formally accept as complete the Carbon Activated Corporation construction agreement regarding the Interim Parking Lot 3 Project;
3) Formally accept as complete the American Wrecking, Inc. construction agreement regarding the Parking Lot 3 Emergency Demolition Project;
4) Authorize the filing of the Notice of Completions for both agreements with the County Recorder;
5) Release retention for both agreements; and
6) Approve the reappropriation of $65,000 in the Parking Lot 3 Redevelopment Demolition Project to the Interim Parking Lot 3 Project within the Parking Fund.
FISCAL IMPLICATIONS:
The Interim Parking Lot 3 budget consists of $1,566,032.99 within the Parking Fund. An additional appropriation of $65,000 is needed to fully fund additional scope for the electrical service and design of the Electric Vehicle (EV) Charging Stations. Sufficient funds of $65,000 are currently available for the project as a reappropriation from the available funds for the Parking Lot 3 Redevelopment Demolition Project in the Parking Fund. A Project Budget and Expenditures Summary is attached.
BACKGROUND:
The Lot 3 Parking Structure was a City-owned facility located at the southwest corner of Morningside Drive and 12th Street in Downtown Manhattan Beach. In June 2024, a series of on-site inspections and structural assessments revealed that severe deterioration had compromised the parking structure’s integrity. As a result, City staff recommended closure of the structure indefinitely. During the September 3, 2024, regular City Council meeting, the City Council adopted Resolution No. 24-0105, declaring a local emergency at Lot 3 and authorizing the City Manager to secure, demolish, and replace the structure with an at-grade parking lot. In addition to adopting Resolution No. 24-0105, the City Council instructed staff to explore ways to accelerate the work, including, but not limited to, extending construction hours.
According to Resolution No. 12-6422, adopted by the City Council on December 4, 2012, the City Manager is authorized to take necessary actions during an emergency in accordance with California Public Contract Code (PCC) Section 22050. Section 22050 provides that the City Manager may order the repair of public facilities without advertising for bids when the repair is in the public interest and necessitates the immediate expenditure of public money to safeguard life, health, or property. Pursuant to Manhattan Beach Municipal Code Section 3.08.060.A.6.c, the emergency demolition and replacement phase were carried out through multiple emergency contracts. Staff would return to the City Council to ratify, accept the work, and file a Notice of Completion to release retention for work urgently approved by the City Manager and/or her designee, in association with the emergency proclamation.
DISCUSSION:
Parking Lot 3 Demolition
In close coordination with the City Attorney’s Office, staff prepared an agreement for the emergency demolition of Parking Lot 3 with the successful low bidder, American Wrecking, Inc., for $238,887, which was executed by the City Manager on October 17, 2024. On November 6, 2024, City Council ratified the agreement.
The Contractor commenced demolition on October 31st, 2024 and completed on November 22, 2024, totaling 16 utilized working days out of the 40 allowable working days stipulated in the Contract. The original contract amount was increased by $29,913.01 due to one change order for the adjustment of final bid quantities and an early completion bonus of $2,000 per day per the contract. The final contract amount was $268,800.01.
The retention amount of $13,440 will be released 35 days after the recording of the Notice of Completion with the County Recorder. All work inspected by the Public Works Department was of good quality and in conformance with the plans and specifications.
Interim Surface Parking Lot 3 Construction
On April 8, 2025, the City Manager executed an agreement for Interim Parking Lot 3 construction with the successful low bidder, Carbon Activated Corporation, for $1,160,755. On April 15, 2025, City Council ratified the construction agreement.
Carbon Activated Corporation’s work began on April 12, 2025, and was substantially completed on June 6, 2025, with installation of the customs-delayed solar parking lot lights occurring in July 2025. Work included construction of a 69-space parking lot with a code-compliant refuse enclosure, bike racks, low-level landscaping, irrigation, installation of solar pay stations and solar lights.
Given the urgency of the project and the City Manager and/or her designee’s authority to take necessary actions, Change Order No. 1 work was authorized to proceed and included the following additions and changes to the contract work:
1. Adjustment in Final Bid Quantities
2. Reimbursement for Solar Light Delivery Reroute
3. Saturday Work
4. Refuse Enclosure Changes
5. Electric Vehicle Charging Station Conduit
6. Existing Lot 3 CMU Wall Improvements
7. Sidewalk Improvements
8. Signage and Striping
9. Landscape Irrigation and Controller Changes
10. Additional Solar Parking Lot Lights
11. Solar Light Tower Rental
Change Order No. 1 increased the original contract price of $1,160,755 by $98,854.56, resulting in a final contract amount of $1,259,609.56. The original Contract Time of 40 working days was extended by 7 working days.
The retention amount of $62,980.49 will be released after payment of Change Order No. 1 and 35 days after the recording of the Notice of Completion with the County Recorder. All work inspected by the Public Works Department is of good quality and in conformance with the plans and specifications.
Electric Vehicle (EV) Charging Stations
Due to the interim lot’s immediate urgency for construction and the fact that Southern California Edison’s electrical service design would take multiple months of preparation, electrical service, design, and installation for the EV charging stations were not a part of the emergency project executed contracts. Therefore, an additional appropriation of $65,000 is needed to support the forthcoming Southern California Edison electrical service and design for the electric vehicle charging stations required by the building code and for the associated fees under the project’s temporary certificate of occupancy. Conduit infrastructure for the future EV charging stations exists in anticipation of this work.
PUBLIC OUTREACH:
The businesses and residences impacted by this project were provided with pre-construction meeting invitations, advance notices, including dates, times of construction, and contact information for the City’s project manager.
ENVIRONMENTAL REVIEW:
The City previously determined that the interim surface parking aspect of the project qualifies for the following categorical exemptions:
• Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the project would modify the ground floor of a parking facility (that existed at the time the determination was made) to provide fewer parking spaces than the prior facility, thus resulting in no expansion of the prior use.
• Class 2 categorical exemption pursuant to Section 15302 (Replacement or Reconstruction) of the State CEQA Guidelines because the parking structure would be replaced with a flat parking lot with substantially the same purpose as the now-demolished structure and substantially the same capacity as the ground floor of the now-demolished structure.
• Class 4 categorical exemption pursuant to Section 15304 (Minor Alterations to Land) of the State CEQA Guidelines because grading necessary to accommodate a surface parking lot would occur at a lot that has less than 10 percent slope, is not in a waterway, wetland, or scenic area, and is not in officially mapped areas of geological hazard.
The actions under consideration at this time remain part of the previously analyzed project, and no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 26-0009
2. Change Order No. 1 - Carbon Activated Corporation
3. Agreement - Carbon Activated Corporation
4. Agreement and Change Order No. 1 - American Wrecking, Inc.
5. Budget Expenditure Summary Report
6. Location Map