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 Ratifying a Construction Agreement with Applied Restoration, Inc. In the Amount of $103,826.82, Approving Plans and Specifications, and Accepting the Work as Complete for the Emergency Shoring at the Lot 3 Parking Structure Project (Budgeted) (Public Works Director Awwad).
A) ADOPT RESOLUTION NO. 26-0084
B) ACCEPT AS COMPLETE
Body
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RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 26-0084:
a) Ratifying the approval of plans and specifications for the Emergency Shoring at the Lot 3 Parking Structure Project;
b) Ratifying a construction agreement with Applied Restoration, Inc. in the amount of $103,826.82 for the Emergency Shoring at the Lot 3 Parking Structure; and
c) Authorizing the City Manager to execute the Agreement;
2. Formally accept as complete the Applied Restoration, Inc. construction contract for the Emergency Shoring at the Lot 3 Parking Structure;
3. Authorize the filing of the Notice of Completion with the County Recorder; and
4. Release the retention of $5,191.34.
FISCAL IMPLICATIONS:
Sufficient funds of $126,072 are currently available in the Parking Lot 3 Redevelopment Project for emergency shoring toward demolition within the Parking Fund. After the payment to Applied Restoration, the remaining project balance is $22,246.16. A Project Budget and Expenditures Summary is attached.
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. In the interest of public safety, the third level of the structure was closed to the public on June 24, 2024, and a structural engineering consulting firm, IDS Group, Inc. (IDS), was engaged to perform a structural inspection. On July 30, 2024, IDS observed corrosion and structural damage to the steel pipe columns and stair risers and recommended immediate shoring of the structure or closure of the facility to the public. Therefore, the structure was fully closed to the public, including the sidewalks along 12th Street and Morningside Drive, considering that portions of the structure overhang the public right-of-way.
According to Resolution No. 12-6422, adopted by the City Council on December 4, 2012, the City Manager was authorized to take necessary actions during an emergency in accordance with California Public Contract Code (PCC) Section 22050. Section 22050 generally allows for the City Manager to 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.
On September 3, 2024, 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.
Following the Termination of the Emergency Order on August 5, 2025, the following have been completed: 1) the Lot 3 parking structure has been demolished; 2) an interim surface parking lot was installed providing beneficial use to the City; 3) the emergency conditions have been fully abated; and 4) the circumstances arising from the unsafe conditions are now considered to be manageable by standard procurement procedures.
DISCUSSION:
As a result of the deteriorating state of the parking structure and to prioritize public safety, Applied Restoration, Inc. (ARI) was commissioned to perform emergency shoring on a labor and materials cost tracking basis. ARI was previously under contract with the City and insured as a contractor on a nearby Capital Improvement Project.
As detailed in the Lot 3 Emergency Status Update Staff Reports dated September 3, 2024, and September 27, 2024, the construction of temporary shoring, which involved the installation of structural timber posts adjacent to the existing, deteriorating steel columns, commenced on August 15, 2024, and was completed on September 4, 2024. The contractor's documentation of labor and materials used was thoroughly examined and verified by City staff. However, processing payments and accepting the work as complete requires a City Council-authorized agreement because the emergency order was terminated on August 5, 2025. In close collaboration with the City Attorney's Office, an agreement in the amount of $103,826.82 was prepared for the work approved by the City Manager in accordance with California Public Contract Code (PCC) Section 22050.
All work was inspected by the City and was found to be in conformance with the emergency shoring plans. Therefore, final payment will be made and a Notice of Completion will be filed with the County Recorder. If no claims are filed within 35 days of filing of the Notice of Completion, the five percent retention in the amount of $5,191.34 will be released.
Staff recommends the City Council ratify and approve the plans, specifications, and agreement; accept the temporary shoring work as complete; and authorize the filing of a Notice of Completion and release of retention for the temporary shoring work associated with the emergency proclamation.
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, staff conducted extensive outreach by discussing project impacts with the DBPA and businesses at the time of construction. 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, resolution and agreement, and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 26-0084
2. Resolution No. 24-0105
3. Resolution No. 12-6422
4. Agreement - Applied Restoration, Inc.
5. Plans and Specifications
6. Budget and Expenditures Summary
7. Location Map