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 Terminating the Local Emergency for the Lot 3 Parking Structure (Unbudgeted) (Interim Public Works Director Semaan).
ADOPT RESOLUTION NO. 25-0102
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 25-0102 terminating the proclamation of a local emergency in response to the public health, safety, and welfare concerns caused by the advanced deterioration of the Lot 3 Parking Structure.
FISCAL IMPLICATIONS:
The original cost estimate for demolishing and replacing the Lot 3 Parking Structure (Lot 3) with an at-grade parking lot was approximately $3,000,000. Pursuant to Manhattan Beach Municipal Code Section 3.08.060.A.6.c, the emergency demolition and replacement phase is being carried out through multiple emergency contracts. The City has expended, encumbered, and planned for the budgeted amounts indicated in the following table. Therefore, staff will return to the City Council to ratify and 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.
|
|
General Fund |
Prop A Fund |
Meas M Fund |
Parking Fund |
TOTAL |
|
DEMOLITION |
|
|
|
|
|
|
Actual |
- |
- |
- |
258,071 |
258,071 |
|
Planned |
- |
- |
- |
291,929 |
291,929 |
|
Subtotal |
- |
- |
- |
550,000 |
550,000 |
|
|
General Fund |
Prop A Fund |
Meas M Fund |
Parking Fund |
TOTAL |
|
INTERIM LOT |
|
|
|
|
|
|
Actual |
- |
- |
- |
690,825 |
690,825 |
|
Planned |
- |
- |
- |
875,208 |
875,208 |
|
Subtotal |
- |
- |
- |
1,566,033 |
1,566,033 |
|
|
|
|
|
|
|
|
SHUTTLE |
|
|
|
|
|
|
Actual |
- |
85,142 |
6,000 |
376 |
91,518 |
|
Subtotal |
- |
85,142 |
6,000 |
376 |
91,518 |
|
|
|
|
|
|
|
|
LOT CLOSURE |
|
|
|
|
|
|
Actual |
3,284 |
- |
- |
4,367 |
7,651 |
|
Subtotal |
3,284 |
- |
- |
4,367 |
7,651 |
|
|
|
|
|
|
|
|
GRAND TOTAL |
3,284 |
85,142 |
6,000 |
2,120,776 |
2,215,202 |
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. Built in 1971, this three-story structure provided 144 parking spaces, which were vital for visitors and businesses in the Downtown area.
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.
Furthermore, staff temporarily implemented shuttle services and made modifications to increase the number of parking spaces within walking distance of the Downtown area. To further alleviate the impact of reduced parking, parking restrictions were suspended in the Downtown Resident Permit Parking Area. Additional discussions focused on considering alternative locations for the Farmer’s Market, providing shuttle services for special events, and evaluating the potential for valet parking.
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.
California PCC Section 22050 requires that if the City Manager orders an emergency action, the governing body shall initially review the emergency action at its next regularly scheduled meeting and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action. Previous updates were provided at all City Council Regular Meetings held between September 17, 2024, and July 15, 2025.
DISCUSSION:
As of August 5, 2025: 1) the Lot 3 Parking Structure has been demolished; 2) an interim surface parking lot is substantially complete and provides beneficial use to the City; 3) the situation resulting from said unsafe conditions is now deemed to be within the control of the normal procurement services, personnel, and equipment; and 4) the emergency conditions have been fully abated. As such, staff recommends that the City Council terminate the proclamation of the local emergency. Staff will return to the City Council to ratify and accept the work, and to file a Notice of Completion releasing the retention for work that was urgently approved by the City Manager and/or her designee, concerning the emergency proclamation.
Emergency Demolition
Demolition activities concluded on November 22, 2024, and 12th Street was reopened to traffic that same day. Center Place was reopened for use as a delivery zone on November 27, 2024.
Interim Parking Lot
Carbon Activated Corporation initiated construction activities for the interim parking lot on April 12, 2025, and substantially opened it on June 6, 2025. After being held at a United States customs inspection station for multiple weeks, the City-purchased site lighting components were delivered, assembled, and installed at the end of July, marking full beneficial use of the lot under the project’s contracted work. A timeline for the electrical design in collaboration with Southern California Edison for the installation of electric vehicle charging stations is currently being established under a separate contract.
Refuse Enclosure Licensing Agreements
A refuse enclosure has been built in the interim parking lot to store recycling containers for private property. These containers were previously kept in the Lot 3 Parking Structure before its demolition. During the City Council Meeting on February 18, 2025, City staff presented a proposal for fees related to the use of this refuse enclosure. As directed, a fee of $3.00 per square foot will be applied, with a maximum of $200 per month for each licensee. This fee will be included in all licensing agreements between the City and individual business owners who choose to store their containers in the interim lot.
Permanent Redevelopment Options for Parking Lot 3
On December 9, 2024, the City Council received a presentation from Kosmont Companies about potential scenarios and alternative options for redeveloping the Lot 3 site. The Council reviewed several options and directed staff to conduct further research on the possibilities available to the City. Additionally, staff held a community meeting on May 21, 2025, to engage residents about the future of the Lot 3 and 400 Manhattan Beach Boulevard site. Staff will return to the City Council with more information and recommendations for the next steps.
Project Impacts on Farmer’s Market
As directed by the City Council, the Farmer's Market, which is held every Tuesday by the Downtown Business and Professional Association (DBPA), has been temporarily relocated from its usual spot near 13th Street and Morningside Drive to the Civic Center Plaza and Parking Lot. Staff has secured an amendment to the City’s agreement with the DBPA to reflect this change. A decision regarding if or when the Farmer's Market will return to its original location has not yet been made.
To gather insights on whether to keep the Farmer’s Market in the Civic Center Plaza and Parking lot, a survey was conducted in July to collect feedback from City and Library staff regarding operational impacts, public access, safety considerations, and overall functionality. Staff will present additional information to the City Council to seek direction on the permanent location of the Farmer’s Market.
PUBLIC OUTREACH:
A formal public notice is not required for this item; however, it was included in the agenda for this meeting, which was posted in accordance with the law. Additionally, the staff conducted extensive outreach by discussing parking impacts with local businesses and coordinating communication with the DBPA and businesses that previously used the refuse enclosure in Lot 3.
Business owners and residents near Lot 3 were invited to a pre-construction meeting that was held on April 16, 2025, in the Civic Center Plaza. The purpose of the meeting was to inform stakeholders of the forthcoming construction activities and anticipated impacts to the downtown area during construction of the interim parking lot. The pre-construction meeting was advertised to businesses and residents through the mailing of postcards covering the area between Manhattan Beach Boulevard to the south, 13th Street to the north, Highland Avenue to the west, and Valley Drive to the east. The pre-construction meeting was also advertised to the public. Contact information was provided for businesses that required additional project details.
ENVIRONMENTAL REVIEW:
The City previously reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and determined that the demolition of Lot 3 was covered by the statutory exemption for Emergency Projects (State CEQA Guidelines Section 15269) because the demolition was necessary to address a clear and imminent danger, and required immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. Because the structure overhung the public right-of-way on three sides, collapse posed a threat to life, health, property, and essential public services.
Additionally, 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. 25-0102
2. Resolution No. 24-0105
3. Location Map