TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ted Semaan, Interim Public Works Director
Gilbert Gamboa, Acting City Engineer
Eduardo Pech, Senior Civil Engineer
SUBJECT:Title
Consideration of Resolutions Approving Change Order No. 2 to the Construction Agreement with Clarke Contracting Corporation for Additional Work in the Amount of $626,468 and Approving Amendment No. 2 to the Professional Services Agreement with CWE Corporation for Additional Design and Construction Support Services for $123,754 for the Santa Monica Bay Stormwater Total Maximum Daily Load Trash Treatment Project; and Reappropriating $479,121 in the Storm Drain Fund for the Santa Monica Bay Stormwater Total Maximum Daily Load Trash Treatment Project (No Budget Impact) (Interim Public Works Director Semaan).
A) ADOPT RESOLUTIONS NOS. 25-0107 AND 25-0108
B) APPROVE REAPPROPRIATION OF FUNDS
Body
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RECOMMENDATION:
Staff recommends that City Council:
A. Adopt Resolution No. 25-0107, approving Contract Change Order No. 2 (CCO2) with Clarke Contracting Corporation (Clarke) for additional work in the amount of $626,468 to include the Dominguez Channel Trash Total Maximum Daily Load (Dominguez Channel TMDL) Project and authorizing the City Manager, and/or his or her designee, to execute the CCO2; and
B. Adopt Resolution No. 25-0108, approving Amendment No. 2 to the Professional Services Agreement with CWE Corporation (CWE) for additional design and construction support services in the amount of $123,754 for the Santa Monica Bay Stormwater Total Maximum Daily Load Trash Treatment Project (SM Bay TMDL Project); and authorizing the City Manager, and/or his or her designee, to execute Amendment No. 2.
C. Approve the reappropriation of $479,121 from the Annual Storm Drain Capital BMP Project to the SM Bay TMDL Project within the Storm Drain Fund.
FISCAL IMPLICATIONS:
The original construction agreement with Clarke was for $3,225,000. CCO1 with Clark reduced the contract value by $11,721.75. CCO2 with Clarke authorizes an additional $626,468 for a total construction agreement amount of $3,839,746. Sufficient funds are available in the Dominguez Channel TMDL Project in the Storm Drain Fund.
Amendment No. 2 with CWE authorizes an additional $123,754 for a total design and construction support services agreement amount of $468,750.
The SM Bay TMDL Project budget consists of approximately $1.9 million within the Storm Drain Fund and about $1.9 million in the Measure W Fund. An additional appropriation of $479,121 is needed to fully fund the project, which is available in the Annual Storm Drain Capital BMP project budget within the Storm Drain Fund. To complete these additional design and construction support services, Amendment No. 2 will also extend the term of the CWE agreement to June 30, 2026.
A Budget and Expenditure Summary Report is attached.
BACKGROUND:
The cities of Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, and the Los Angeles County Flood Control District have collaboratively developed an Enhanced Watershed Management Program (the Beach Cities EWMP) to comply with the 2012 Los Angeles Regional Water Quality Control Board Storm Water Permit (LA MS4 Permit). The Beach Cities EWMP has identified capital improvement projects aimed at minimizing wet weather discharges and eliminating dry weather discharges into Santa Monica Bay and Dominguez Channel Watersheds. These efforts are designed to reduce pollutants entering both water bodies and to meet the water quality-based effluent limitations. As part of the Annual Storm Drain Capital BMP program, City staff periodically studies the feasibility of TMDL projects. Once a project is identified, a project is established to record the design and construction of the project.
Manhattan Beach's stormwater runoff is discharged through the municipal separate storm sewer system (MS4) into the Santa Monica Bay and Dominguez Channel. As a result, the City is recognized as a responsible jurisdiction under the Santa Monica Bay and Dominguez Channel Total Maximum Daily Load (TMDL) Trash Treatment. According to the City’s approved Trash Monitoring and Reporting Plan, the City aims to meet the final compliance milestones of the TMDL by installing full capture devices. These devices will address 100% of the storm drainage system tributaries to both the Santa Monica Bay and the Dominguez Channel within its jurisdiction.
The Santa Monica Bay Stormwater TMDL Trash Treatment Project is a high-priority initiative aimed at significantly reducing contaminated runoff entering Santa Monica Bay from the City of Manhattan Beach. This project will help meet discharge compliance requirements for approximately 40 percent of the City’s Santa Monica Bay Watershed Management Area (SM Bay WMA). The remaining areas will be addressed either by existing treatment devices or through the upcoming 28th Street Stormwater Infiltration Project.
The Dominguez Channel Stormwater TMDL Trash Treatment Project is also a high-priority initiative aimed at significantly reducing contaminated runoff into the Dominguez Channel from Manhattan Beach. This project seeks to address approximately 50 percent of the City’s Dominguez Channel Watershed Management Area (Dominguez WMA) to ensure compliance with discharge requirements into the channel. The remaining areas will be targeted through the upcoming Dominguez Channel Stormwater Infiltration Project, which is currently in the planning stage.
A Notice to Proceed was issued on October 1, 2024, to Clarke. At the time, the Project included the installation of Trash Capture Devices located on the following streets:
1. 1st Street from Ocean Drive to the Strand;
2. 14th Street from Ocean Drive to the Strand;
3. 24th Street from Ocean Drive to the Strand;
4. 26th Street from Ocean Drive to the Strand;
5. 32nd Street from Ocean Drive to the Strand;
6. 39th Street from the Strand to the Marvin Braude Bike Trail; and
7. Installation of Connector Pipe Screens (CPS) and related screening devices throughout the City between Ocean Drive and The Strand.
Due to various utility conflicts encountered during preconstruction, two trash capture devices were removed from the project scope at 26th Street from Ocean Drive to the Strand and at 32nd Street from Ocean Drive to the Strand. These were replaced with an additional 14 catch basin inserts for their respective storm drain systems. Similarly, the trash capture devices at 1st Street from Ocean Drive to the Strand also presented construction challenges unforeseen during the design, and as a result, construction was paused at the end of March 2025 to perform a redesign of the unit and identify the exact trash capture inserts needed at the additional 14 catch basins. The changes resulted in an overall reduction in total contract cost, while increasing the number of working days to address the scope changes. Contract Change Order No.1, approved on August 7, 2025, documented these changes and other issues encountered during construction.
Concurrently, City staff collaborated with Geosyntec, Inc. to design a trash capture system for 50 percent of the Dominguez Channel watershed. This effort concluded that one trash capture device located on Aviation Boulevard near Marine Avenue, along with 12 inserts along the City’s eastern boundary at Aviation Boulevard and the northeast boundary on Rosecrans Boulevard, would meet the targets set by the State Water Resources Control Board (SWRCB). The SWRCB requires the City to capture trash larger than 5 millimeters generated by stormwater runoff in 50 percent of the Dominguez Channel watershed by September 2026. To fulfill this requirement, City staff is recommending approval of Contract Change Order Number 2 to incorporate these improvements into the existing Clarke contract to reduce costs, as the contractor has similar bid item work in the current competitively bid Santa Monica Bay watershed project contract.
DISCUSSION:
On February 6, 2024, the City Council awarded a construction contract to Clarke Contracting Corporation for $3,225,000.00 and authorized the City Manager and/or his or her designee to approve change orders up to $322,500 for additional work resulting from unforeseen conditions and utility interferences. The work was estimated to be completed in approximately 12 months, once the work started in the Fall 2024. However, with construction paused due to redesigns, the Project is now anticipated for completion by the end of Summer 2026.
Construction Contract Change Order No. 2
To complete the Dominguez Channel Trash TMDL Project quickly and cost-effectively, City Staff contacted Clarke about including this project in their current contract. Staff received proposals for improvements totaling $626,468 for the Dominguez Channel Trash TMDL. For the Dominguez Channel Trash TMDL Project, the City will be able to:
• Utilize the existing contract currently in place to construct the improvements by a contractor who is completing similar work in the City, whose construction contract was awarded through the competitive bid process, and is familiar with the City’s infrastructure.
• Complete improvements required to comply with the State Water Resources Control Board’s stormwater quality regulations.
• Achieve time and cost savings by eliminating the need to prepare formal bid documents and conduct a full bidding process.
Therefore, City Staff recommends that City Council approve CCO2 with Clarke Contracting Corporation for an additional $626,468 over the existing base, CCO1 and contingency amount. The new scope of work with an additional 40 working days is estimated to be completed in approximately six months, once it commences in late Summer 2025.
Amendment to the Design Professional Services Agreement
Additional professional services were needed to support construction during the initial mobilization of the project. Specifically, more geotechnical recommendations were required, along with preparing progress and expenditure reports submitted to the LA County Grant administrator for the Prop 1 IRWM Grant that partially funds this project.
These reports are vital for maintaining current and future funding, as they ensure compliance with the terms and conditions outlined in the grant agreement. Additionally, a monitoring plan must be developed at the end of construction to comply with the grant requirements. Furthermore, a redesign was necessary for the trash capture device on 1st Street between Ocean Avenue and the Strand.
Therefore, staff recommends that the City Council approve Amendment 2 with CWE in the amount of $123,754. This work will continue throughout construction, which is estimated to be completed in approximately 12 months once it commences in late Summer 2025.
Additionally, upon review, it was determined that expenditures incurred for the design and permitting for the SM Bay TMDL Project had been recorded against the Annual Storm Drain Capital BMP program, which should be transferred along with the relevant budget to accurately capitalize the project expenditures.
PUBLIC OUTREACH:
The Project was presented to the Parking and Public Improvements Commission on October 26, 2023. Additionally, a public outreach meeting with stakeholders was held on January 30, 2024, in Council Chambers to present the project design and discuss the benefits to the community and construction impacts. Area residents will continue to be updated with information posted on the City’s website. During construction, public outreach will continue to include an initial project construction notice mailed to nearby residents and property owners, and periodic updates at construction milestones on the City website.
ENVIRONMENTAL REVIEW:
The proposed additions to the project were evaluated for compliance with the California Environmental Quality Act (CEQA), and a determination was made that the existing Categorical Exemption pursuant to Section 15301(c) of the State CEQA Guidelines (the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use; including existing highways, streets, or sidewalks) for the Project remain applicable. There are no features that distinguish this project from others in the exempt class; therefore, there are no unusual circumstances.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that approving CCO2 for the additional work presents a mild risk due to the same kind of work already being performed by the Contractor and the benefits from economies of scale. No additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0107
2. Change Order No. 2 - Clarke Contracting Corporation
3. Agreement and Change Order No. 1 - Clarke Contracting Corporation
4. Resolution No. 25-0108
5. Amendment No. 2 - CWE
6. Agreement and Amendment No. 1- CWE
7. Plans and Specifications
8. Budget Expenditure Summary Report
9. Location Map - Dominguez Channel Trash TMDL
10. Location Map - Santa Monica TMDL Trash Treatment