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
Bianca Cardenas, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Professional Services Agreement with Paul Hansen Engineering, LLC for Project Management Support Services in the Amount of $203,924 for the Emergency Demolition and Construction of Interim Surface Parking Lot 3, for a Total Not-to-Exceed Amount of $253,779. (No Budget Impact) (Interim Public Works Director Semaan).
ADOPT RESOLUTION NO. 25-0109
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 25-0109 approving Amendment No. 2 to the Professional Services Agreement with Paul Hansen Engineering, LLC for project management support services in the amount of $203,924 for the Emergency Demolition and Construction of Interim Surface Parking Lot 3.
FISCAL IMPLICATIONS:
The original on-call contract with Paul Hansen Engineering, LLC (PHE) was for $49,855. Amendment No. 2 will add $203,924, bringing the total not-to-exceed amount to $253,779. Sufficient funds of $203,924 are currently available within the Parking Lot 3 Redevelopment (Demolition) and Interim Parking Lot 3 Project Parking Funds for Amendment No. 2 to the Professional Services Agreement with PHE for project management support services for the Emergency Demolition and Construction of Interim Surface Parking Lot 3. There are no additional fiscal implications for the project at this time.
BACKGROUND:
The City Council regularly adopts a 5-Year Capital Improvement Program (CIP), which includes several facility and infrastructure projects that are part of the City Council’s Work Plan and align with community-identified needs. The Engineering Division of the Public Works Department is responsible for advancing and implementing projects funded by the Capital Improvement Program. Keeping the momentum of these projects is essential to fulfilling project delivery commitments.
In late 2021, the Public Works Department issued a Request for Proposals (RFP) for Project Management (On-Call) Services for various CIP projects. The solicitation led to the award of five on-call project management agreements. PHE was one of the five firms, and their agreement was executed on June 1, 2022.
Amendment No. 1 was signed by the City Manager on October 28, 2023, extending the agreement term from December 31, 2023, to December 31, 2025. The original on-call agreement amount of $49,855 was primarily expended in 2024 on a CIP Project unrelated to Parking Lot 3, leaving a remaining balance of $6,955 in the contract.
Separately, in June 2024, a series of on-site inspections and structural assessments of the City-owned Lot 3 parking structure, located at the southwest corner of Morningside Drive and 12th Street in Downtown Manhattan Beach, revealed significant deterioration that compromised the structure’s integrity. Subsequently, City staff determined the best course of action was to close the structure indefinitely.
During the regular City Council meeting on September 3, 2024, the City Council adopted Resolution No. 24-0105, declaring a local emergency at Lot 3. This resolution authorized the City Manager to secure, demolish, and replace the structure. In addition to adopting Resolution No. 24-0105, the City Council directed staff to investigate ways to expedite the work.
In August and September of 2024, Task Order Solicitations No. 2024-05 and 2024-07 were issued to all five consultant firms on the City’s on-call list, including PHE, for emergency project management services related to the Lot 3 Parking Structure. These task orders were intended for two purposes: to obtain a demolition cost estimate and to secure a full-time, on-site Resident Civil Engineer on a contract basis for project management services. This was necessary due to staffing vacancies in the Engineering Division and the need for continuous oversight on the fast-tracked, high-profile Parking Lot 3 emergency project. PHE provided the best-qualified personnel to meet the City’s emergency requirements.
DISCUSSION:
According to Resolution No. 12-6422, adopted by the City Council on December 4, 2012, the City Manager is authorized to act during emergencies as outlined by California Public Contract Code (PCC) Section 22050. This section allows the City Manager to order the repair of public facilities without the need for advertising bids when such repairs are in the public interest and require immediate expenditure of public funds to protect life, health, or property.
Due to the unpredictable and urgent nature of the emergency demolition of the Lot 3 parking structure and construction of the interim Lot 3 parking lot, staff procured professional project management support services directly. This was done without amending the existing on-call contract with PHE, as allowed by Resolution No. 12-6422 for the declared emergency. The contract must now be formally amended by City Council. Following the City Council's direction, staff maximized the working hours and days to expedite the construction process.
PHE’s professional support services for the Lot 3 emergency project included:
Project Estimate
In August 2024, PHE provided a demolition cost estimate for Parking Structure Lot 3. The engineer’s estimate was used for project planning, scope, schedule, and costs. Ultimately, the detailed breakdown was used in comparison to the demolition bids quickly received, for which PHE performed the bid analysis.
Project Oversight
For emergency demolition, PHE provided project management for all demolition activities. The activities commenced on October 31, 2024, and were completed on November 27, 2024.
For construction of the interim parking lot, PHE provided project management for all construction activities. This also included preparation of a soils report by Geosyntec Consultants, PHE’s subconsultant. The soils report findings were used to develop final footing and pavement design within the interim parking lot. Construction activities for the interim parking lot commenced on April 12, 2025, with the new interim surface parking lot opening to the public on June 6, 2025. PHE is currently finalizing the final list and closeout items.
Project oversight by PHE included:
• Administered the contract (general contract administration and oversight of project);
• Served as the City’s representative at the project site, communicating with members of the public and nearby business owners, as appropriate;
• Observed and documented construction activities (prepared daily reports and digital photos of significant issues and milestones);
• Monitored Contractor’s daily labor force for compliance with State and federal labor laws;
• Field verified traffic control procedures and consistency with approved Traffic Control Plan;
• Conducted progress meetings and prepared meeting minutes;
• Coordinated with agencies and different stakeholders to ensure smooth progress of construction activities;
• Monitored project schedule;
• Verified quantities and assured quality control;
• Performed field observations of site safety; and
• Maintained complete and accurate project records;
Amendment No. 2 surpasses the City Manager's signing authority and requires authorization from the City Council for the emergency project management support services related to Parking Lot 3. Additionally, Amendment No. 2 extends the agreement's term to December 31, 2026, to facilitate the completion of the emergency project closeout.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this action.
ENVIRONMENTAL REVIEW:
The City Council’s consideration of an amendment to the Professional Services Agreement with Paul Hansen Engineering, LLC has been determined to be exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3), the commonsense exemption (formerly the “general rule”) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question can have a significant effect on the environment, the activity is not subject to CEQA, as is the case with this item. Note that projects managed via the amended contract were independently subjected to CEQA review.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0109
2. Resolution No. 24-0105
3. Amendment No. 2 - Paul Hansen Engineering, LLC
4. Agreement and Amendment No. 1 - Paul Hansen Engineering, LLC