TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ramzi Awwad, Public Works Director
Gilbert Gamboa, City Engineer
Bianca Cardenas, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution Awarding a Construction Agreement to UBD, Inc. in the amount of $322,893 for the Marine Avenue Park Pay N Play Racquetball Building Demolition Project, Including Contingency, Approving an Additional Appropriation of $12,500 from the Capital Improvements Program (CIP) Fund, Making a Determination Pursuant to the California Environmental Quality Act (CEQA) that this Activity is Categorically Exempt, and Approving Plans and Specifications (Partially Budgeted) (Public Works Director Awwad).
A) ADOPT RESOLUTION NO. 26-0085
B) APPROPRIATE FUNDS
Line
_________________________________________________________
RECOMMENDATION:
Staff recommends the City Council adopt Resolution No. 26-0085:
1. Awarding a Construction Agreement to UBD, Inc. for the Pay N Play Racquetball Building Demolition Project, in the amount of $280,777;
2. Making a Determination of Exemption Pursuant to Section 15301 of the State CEQA Guidelines Section for the Project;
3. Approving the Plans and Specifications for the Project;
4. Authorizing the City Manager to execute the Agreement;
5. Authorizing the City Manager and/or his/her designee to approve an extra work contingency up to $42,116; and
6. Appropriating an additional $12,500 from the CIP Fund for the Pay N Play Racquetball Building Demolition Project.
FISCAL IMPLICATIONS:
The Marine Avenue Park Pay N Play Facility Redevelopment Project budget consists of $449,850, with $400,000 budgeted within the Grants Fund and $49,850 within the CIP Fund.
Demolition costs of $265,793 are expected to be reimbursed from the Los Angeles County Regional Parks and Open Spaces District (RPOSD) Measure A grant program. The remaining project costs totaling $62,350 are required from the CIP Fund for improvements that cannot be reimbursed by the grant, specifically the temporary sod turf and irrigation installation, which does not meet the grant’s multi-benefit and sustainability requirements for maintenance in perpetuity. Therefore, an additional appropriation of $12,500 from the unreserved CIP Fund balance is needed to fully fund the project. A Project Budget and Expenditures Summary is attached.
BACKGROUND:
Marine Avenue Park is located at 1629 Marine Avenue and includes a full-sized baseball field, a soccer field, two outdoor basketball courts, a skate spot, picnic tables, children’s play areas, a small recreation activity building, and a four-court indoor racquetball building that was open to the public and privately operated by Pay N Play Company of America.
The 35-year lease for the Pay N Play racquetball facility expired on December 31, 2021, and control of the building transitioned back to the City in September 2022. Minimal investments were made to maintain the building during the lease. Public Works subsequently conducted a building assessment and identified significant deficiencies in the approximately 4,000-square-foot concrete building. Repurposing the Pay N Play facility at Marine Avenue Park is within the City Council Work Plan for Fiscal Year 2025-2026. It is identified in the Parks Master Plan as a mid-range project in the Increase and Optimize Access to Open Space category.
On April 28, 2025, the Parks and Recreation Commission evaluated various alternative uses for the existing facility after it was returned to the City, such as indoor golf, batting cages, sports classes, pickleball, wallyball, racquetball, and more. Considering the building's deteriorating condition, the high costs of necessary repairs, and feedback from the community, the Commission ultimately recommended the demolition of the current structure.
On October 7, 2025, City Council approved the demolition of the Pay N Play Racquetball Building and made the decision to temporarily repurpose the land for recreational activities that would have widespread community appeal.
The scope of work for the Project includes demolition of the Pay N Play Racquetball building, installation of natural sod turf in its place, and associated work. The Parks and Recreation Department plans to return to the City Council at a later date following public outreach to gather ideas for future redevelopment.
DISCUSSION:
Project Bid
Bids for the Project were solicited in June 2026 on a competitive basis under the provisions of the California Public Contract Code. The Project was advertised in the City’s publisher of record (The Beach Reporter), on the City of Manhattan Beach Public Works Department Bid Opportunities webpage, and on the City’s Bid Portal with OpenGov (an online service that connects vendors, suppliers, and contractors to government procurement opportunities).
Six bids were received and opened on July 6, 2026. The bids ranged from a low bid of $280,777.00 to the highest bid of $399,028.00 as follows:
Contractor Calculated Total Bid Amount
UBD, Inc. $280,777.00
Resource Environmental Services, LLC $293,000.00
Unlimited Environmental, Inc. $364,400.00
Golden Sun Firm & Co., Inc. $364,860.00
National Contracting Company, Inc. $370,372.00
Interior Demolition, Inc. $399,028.00
All bids were analyzed for arithmetical errors, completeness, accuracy, etc. UBD, Inc.’s bid, contractor’s license, and references were reviewed by staff and found to be responsive. Representatives of agencies where UBD, Inc. performed work have indicated that the work was comparable to the Project scope of work and was completed to their satisfaction.
Therefore, staff recommends the City Council award a construction agreement to UBD, Inc. for $280,777 and authorize the City Manager and/or his or her designee to approve change orders for up to $42,116 (approximately 15%) for additional work.
Anticipated Demolition Project Timeline
The demolition project is anticipated to start with survey, lead and asbestos testing, and contractor requirements for permits in September 2026. Demolition is anticipated to begin in December 2026, and the implementation of the natural sod turf is expected to be completed by May 2027, following a 10-week sod establishment period. Allowable construction hours are 7:30 AM to 4:30 PM, Monday through Friday.
PUBLIC OUTREACH:
The Pay N Play repurposing project has been discussed regularly at Parks and Recreation Commission meetings since February 2021. The Parks and Recreation Commission recommended demolition of the existing building on April 28, 2025. Once the project progresses to the construction phase, public outreach will include construction update notices to applicable programs and updates on the City’s website.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and determined that it qualifies for Class 1 (Existing Facilities, Section 15301) and Class 4 (Minor Alterations to Land, Section 15304) categorical exemptions. The project involves demolishing an accessory structure within Marine Avenue Park and replacing it with turf grass. The project will not expand the existing recreational use of the site. Thus, 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. 26-0085
2. Agreement - UBD, Inc.
3. Plans and Specifications
4. Budget and Expenditures Summary
5. Location Map