TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, Acting City Manager
FROM:
Erick Lee, Public Works Director
Ryan Heise, Acting Community Development Director
Onyx Jones, Interim Finance Director
Katherine Doherty, City Engineer
Alexandria Latragna, Communications and Civic Engagement Manager
SUBJECT:Title
Consideration of an Update on the Lot 3 Parking Structure, Alternative Parking Solutions, and Business Impacts; and Adoption of a Resolution Directing and Delegating Authority to the City Manager Authority to Take Emergency Action to Secure, Demolish and Replace (Public Works Director Lee and Acting Community Development Director Heise).
(Estimated Time: 1 Hr.)
A) DISCUSS AND PROVIDE DIRECTION
B) DETERMINE THAT PROJECT IS EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
C) ADOPT RESOLUTION NO. 24-0105
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RECOMMENDATION:
Staff recommends that the City Council:
A. Discuss and provide direction regarding the demolition of the Lot 3 Parking Structure (Lot 3) and replacement of parking at the site, alternative parking solutions, and consider the impacts to businesses; and
B. Adopt Resolution No. 24-0105.
FISCAL IMPLICATIONS:
The closure and demolition of Lot 3 will have the following fiscal implications:
- Demolition and Replacement Costs: The estimated cost for demolition and replacement of Lot 3 with an at-grade parking lot is projected to be up to $3,000,000. Pursuant to Manhattan Beach Municipal Section 3.08.060.A.6.c, the emergency demolition and replacement phase may be done through an emergency contract and may be partially funded with funds available in the Parking Fund. The emergency contract, associated costs and any necessary budget appropriations will be brought to City Council at a future date for ratification. In addition to the appropriation from the Parking Fund, it is anticipated that another funding source will need to be identified.
- Loss of Parking Revenue: The closure of Lot 3 is anticipated to result in a monthly loss of approximately $50,000 in public parking meter revenue. As Lot 3 was also previously utilized for merchant permit parking, these permit holders are now redirected to other downtown parking lots, which is further impacting available public parking. If Lot 3 is temporarily replaced with a flat lot of approximately 70 spaces, it is projected that monthly revenue up to $25,000 could be generated.
- Parking Alternatives: The following options have been evaluated to mitigate the impact of the parking structure closure:
o Option # 1 Implementing a rideshare voucher program for park and ride participants, at an estimated cost of $12 per ride for the rideshare vouchers and approximately $9,000 per month for leasing the current alternative park and ride location until the holiday season.
o Option # 2 Continuation of the current shuttle services and alternative park and ride location will cost approximately $25,000 per month and $9,000, respectively.
o Option # 3 Discontinuance of the shuttle and alternative parking locations will not result in additional direct costs beyond the lost parking revenue; however, it should be noted that the businesses downtown have expressed that the loss of parking results in lower revenue, and loss of business and productivity. This could have an indirect impact on the City’s sales tax revenue.
Based on the scope of proposed options # 1 and # 2, a significant portion of the expenses related to the rideshare vouchers or shuttle services, and securing park and ride locations, may be eligible for funding through the City’s Local Return allocation, pending approval by the Los Angeles County Metropolitan Transportation Authority (Metro).
BACKGROUND:
The Lot 3 parking structure, located at 12th Street and Morningside Drive, was constructed in 1971 and has experienced significant deterioration, leading to its closure last month. Recent structural inspections have identified critical safety concerns that necessitate immediate attention. Due to the structure’s age, the Public Works Department has been monitoring the structure for the past approximately six years with both in-house engineering staff and a consultant structural engineer, IDS Group, Inc. (IDS). During a routine inspection performed on June 18, 2024, in-house staff observed visible corrosion in the steel columns and staircases leading to the third level of the structure. In the interest of public safety, the third level of the structure was closed to the public on June 24, 2024, and IDS was engaged to perform another site visit. On July 30, 2024, IDS observed structural damage to the steel pipe columns and stair risers, which was most likely caused by the water intrusion due to recent heavy rainstorms and the proximity of the structure to the ocean. IDS recommended immediate shoring of the structure or closure of the facility to the public. The structure was therefore fully closed to the public later that day, including the sidewalks along 12th Street and Morningside Drive, due to the portions of the structure that overhang the public right-of-way.
On August 6, 2024, a temporary fence was placed around the structure. WM (formerly Waste Management) trash bins within the parking lot’s trash enclosure were removed, replaced with larger bins, and strategically placed along the west side of Center Place. WM is currently providing push out service to those businesses directly south of the lot and is providing truck service via Highland Avenue to those trash bins in the southwest corner of Center Place.
Center Place was closed to vehicle traffic on August 12, 2024, however pedestrian traffic is still allowed. The back entrances to the businesses along Center Place remain accessible to provide required egress routes, and Right Tribe remains open and operational. Temporary 20-minute commercial loading zone locations have been created for deliveries at the following locations:
1. Highland Avenue Directly North of Center Place - Two parking spaces, at approximately 40 feet, have been replaced with yellow curb. Posted hours allowed for commercial parking is from 7:00 a.m. to 11:00 a.m., two-hour metered parking is allowed from 11:00 a.m. to 6:00 p.m., three-hour metered parking is allowed from 6:00 p.m. to 9:00 p.m., and no parking is allowed during street sweeping.
2. Morningside Drive Directly North and South of Center Place - Forty feet of yellow curb has been placed on the southwest side of Morningside Drive at Center Place. Fifty feet of yellow curb has been placed on the northwest side of Morningside Drive at Center Place. 20-minute commercial loading is not limited to certain hours at this location.
Construction for the temporary shoring, which consists of the installation of timber columns alongside the existing, deteriorating columns, began on August 15, 2024, and is expected to be completed during the first week of September.
After the closure of the top level of Lot 3 at the end of June 2024, staff immediately identified alternative parking locations at Pacific Elementary School (ended August 18, 2024), U.S. Bank, and the Manhattan Village Shopping Center. Because Pacific Elementary School and the Manhattan Village Shopping Center are both off-site, a public shuttle service was established with two downtown pick-up and drop-off locations. Since establishing the current shuttle service at the beginning of July, a total of 1,762 people have used the shuttle. The shuttle proved to be a valuable resource for the community, particularly during the 6-Man Volleyball Tournament and the Manhattan Beach Open AVP Volleyball Tournament (MBO) where the weekend ridership ranged between 65-125 and 200-500 riders per day, respectively. Part of the increased ridership could be attributed to the increased hours of operation during the MBO when the shuttle ran from 9:00 AM - 12:00 AM on Saturday, allowing employees of the downtown Manhattan Beach businesses to park and ride for the entirety of their shifts. After the shuttle was moved to the Manhattan Village Shopping Center on August 19, average ridership has slightly increased, based on the limited data we have received as of the publishing of this report.
Additionally, the City has opened the Lower Civic Center Parking Lot to the public on Fridays starting at 1:00 p.m. as of August 23, 2024. The parking lot is typically only available to City and Library staff Monday through Friday, 8:00 a.m. to 5:00 p.m. However, on Fridays, City Hall is half-staffed and consequently the parking garage is underutilized. Allowing public parking in the afternoon on Fridays can assist with providing some relief to the business community and recovering some parking meter revenue during those hours.
While the Parking Structure Lot 3 Replacement Project has been identified on the Capital Improvement Project list since Fiscal Year 2023-2024, the recent discovery of the structural deficiencies necessitates immediate action. In 2024, as part of the City Council Work Plan discussion, City Council gave direction to staff to evaluate a variety of redevelopment options for the site. Staff initiated a redevelopment study to optimize of the use of the property in June 2024. While staff is currently prioritizing this project and has accelerated the project timeline given the recent closure of the structure, any long-term redevelopment plan will take time, as it will require development and approval of concepts, designs, and ultimately construction. However, due to the imminent threat to public health, safety and welfare, the Structure now must be demolished and thereafter replaced.
DISCUSSION:
Demolition of Structure
As noted above, the demolition of Lot 3 is required to address the immediate emergency threatening the public health, safety and property. This would cost approximately $3,000,000 and take approximately four to five months for the demolition work.
Once demolished, the site may be temporarily regraded and paved to serve as an at-grade parking lot. If directed to pursue a temporary use, the surface level parking would allow for approximately 70 metered parking spaces.
On December 4, 2012, the City Council adopted Resolution No. 12-6422, delegating authority to the City Manager to take action in emergencies pursuant to California Public Contract Code Section 22050. Per Resolution No. 12-6422, in the event of an emergency the City Manager may take action to repair public facilities without advertising for bids if the repair is in the public interest and necessitates the immediate expenditure of public money to safeguard life, health, or property. Given the safety risks associated with the structure’s current condition, it is imperative that the lot be demolished. For these reasons, the City Manager authorized Applied Restoration (ARI) to complete the necessary temporary shoring. That work is underway and is anticipated to be completed the first week of September.
Upon direction from City Council, demolition and the replacement of the parking at this location can begin within one month through an emergency contract. Per the Municipal Code, construction activity can occur only between 7:30 a.m. and 6:00 p.m. on weekdays, and between 9:00 a.m. to 6:00 p.m. on Saturdays. No work shall occur on Sundays or on 11 identified public holidays. City Council may modify the hours of construction activity under limited circumstances, per MBMC Section 9.44.030.
Parking Alternatives
In addition to impacts caused by the closure of Lot 3 described elsewhere in this report, parking is a significant concern for the California Coastal Commission because it is one of the most convenient ways to provide access to the coast. Any short- or long-term change to parking availability must take this into consideration. The Coastal Commission has been made aware of the closure of Lot 3 and staff has provided information to the Commission regarding the City’s current efforts to address the parking shortage. While the Coastal Commission has not provided any formal input on the closure, it is important that the City demonstrate to the Commission that every effort is being made to address the loss of parking supply.
With the closure of Lot 3 having resulted in a deficiency of 146 parking spaces in the center of downtown, staff has identified parking alternatives for City Council’s consideration.
In addition to the options listed below, staff explored an alternative parking option that would temporarily move the City employee parking from the Lower Civic Center Parking Lot to Live Oak Field, opening the Lower Civic Center Parking Lot to the public. This option presents several challenges that are not easily overcome nor is this option recommended. Since the field would become non-operational, field user groups would be displaced. Baseball is a highly impacted sport as there are two organizations vying for field space-Manhattan Beach Little League (MBLL) and South Bay PONY. Live Oak Baseball Field is one of the City’s highly valued fields as it has lights, is one of only two fields on the west side of Sepulveda Boulevard, and it is the only one with its smaller size dimensions for younger players. Despite this upcoming season being PONY and MBLL’s fall-season, they will have over 800 users combined in their leagues. During the primary season in the spring and summer, both organizations combined will have well over 1,000 participants that heavily utilize Live Oak Field. Due to the high demand of fields with lights, the City also runs City programming such as adult kickball, Sportball and Brit West Soccer year-round. Whenever openings are available, the City places other user groups at Live Oak for one-off practices.
Furthermore, the field would need to be replaced once the City employee parking is eventually moved back to the Lower Civic Center Parking Lot, which would be an additional expense to the City.
PARKING ALTERNATIVES:
Parking Option # 1: Establish a rideshare voucher system for park and ride participants.
Description: The City has leased 75 public spaces at Manhattan Village Shopping Center. A rideshare voucher system could be established for park and ride participants. The current shuttle is limited to fixed drop off points and time durations with a pick-up frequency of every 30 minutes. The City has the ability to customize the voucher program such that it is available within the Manhattan Village Shopping Center’s parking hours, which currently coincide with the MB Shuttle service (Monday through Thursday: 1:00 p.m. to 9:00 p.m., and Friday through Sunday: 9:00 a.m. to 9:00 p.m.).
Duration: This program would continue during the construction and redevelopment of the Lot 3 structure. The lease agreement with Manhattan Village Shopping Center expires on September 8, 2024, and could be extended until the holiday season, after which an alternative location would need to be found.
Cost: Leasing 75 parking spaces at Manhattan Village Shopping Center for the public park and ride is estimated to cost approximately $9,000 per month. The rideshare voucher program for the park and ride participants is projected to cost $12 per ride.
Parking Option # 2: Continue shuttle and alternative parking locations
Description: The City has leased 75 parking spaces at Manhattan Village Shopping Center. A public shuttle is currently shuttling riders from Manhattan Village Shopping Center to two drop off points in downtown Manhattan Beach. The current shuttle is limited to certain drop off points and time durations with a pick-up frequency every 30 minutes.
Duration: This program would continue during the construction and redevelopment of the Lot 3 structure. The lease agreement with Manhattan Village Shopping Center expires on September 8, 2024, and could be extended until the holiday season, after which an alternative location would need to be found.
Cost: The cost to maintain the current shuttle services and alternative park and ride location at Manhattan Village Shopping Center is anticipated to cost approximately $25,000 per month and $9,000 respectively.
Parking Option # 3: Discontinue shuttle and alternative parking locations
Description: This option allows the current contracts for the shuttle and leased parking to expire on September 8, 2024.
Duration: The shuttle and alternative parking location would be discontinued throughout the duration of the redevelopment of Lot 3. The City Council could later choose to reinstate the shuttle service and alternative parking locations.
Cost: There are no costs to this option, however, the businesses downtown have expressed that the loss of parking results in lower revenue, and loss of business and productivity. This could have an indirect impact on the City’s sales tax revenue. Additionally, the California Coastal Commission has expressed concerns regarding the loss of available parking as noted above.
Downtown Business Impacts
The closure of Lot 3 has impacted businesses in the surrounding area, with less parking available for customers and merchant permit holders throughout downtown. The Downtown Business and Professional Association (DBPA) reached out to City staff regarding support or resources available for these businesses during the closure of the parking lot. If directed by the City Council, staff can explore different options to assist impacted businesses while the lot is temporarily closed and under reconstruction.
CONCLUSION:
Given the significant safety risks, escalated costs, and long timelines associated with retaining and renovating Lot 3, staff recommends the complete demolition and replacement of parking at the site and adoption of Resolution No. 24-0105. Additionally, staff recommends implementing Parking Option # 1 until the holiday season at which time the parking and voucher usage may be reassessed for future use. Lastly, staff recommends that City Council discuss and provide direction related to options to assist impacted businesses.
PUBLIC OUTREACH:
Formal public notice is not required for this item; however, the item was included in the agenda for this meeting, which was posted in accordance with the law. Additionally, staff has conducted significant outreach by speaking with businesses about parking impacts, coordinating communication and outreach with the Downtown Business and Professionals Association, promoting the alternative parking options.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the demolition of Parking Lot 3 falls under the statutory exemption for Emergency Projects (State CEQA Guidelines Section 15269) because the demolition is necessary to address a clear and imminent danger and requires immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. Because the existing structure overhangs the public right of way on three sides, collapse poses a threat to life, health, property and essential public services.
Additionally, the City has 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 an existing parking facility to provide fewer parking spaces than the existing facility, thus resulting in no expansion of the existing use.
- Class 2 categorical exemption pursuant to Section 15302 (Replacement or Reconstruction) of the State CEQA Guidelines because the existing parking structure would be replaced with a flat parking lot with substantially the same purpose as the existing structure and substantially the same capacity as the ground floor of the existing 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.
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. 24-0105
2. Location Map
3. Resolution No. 12-6422
4. PowerPoint Presentation