TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ramzi Awwad, Public Works Director
Gilbert Gamboa, City Engineer
Eduardo Pech, Senior Civil Engineer
SUBJECT:Title
Construction Update: 28th Street Stormwater Infiltration CIP Project. (No Budget Impact) (Public Works Director Awwad).
(Estimated Time: 45 Min.)
RECEIVE AND FILE
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council receive and file a construction update on the 28th Street Stormwater Infiltration Project.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the status report.
BACKGROUND:
Stormwater Quality Regulations
Under the Federal Clean Water Act and California Porter-Cologne Water Quality Control Act, the Los Angeles regional stormwater system permit establishes requirements that municipalities must implement to reduce pollutants in stormwater and urban runoff. These requirements include water quality monitoring and reporting, public outreach, oversight of commercial and construction programs, municipal maintenance practices, responses to illicit discharges, and implementation of projects and programs needed to meet water quality requirements for the Santa Monica Bay and the Dominguez Channel.
Manhattan Beach meets its part of the regional stormwater permit obligations through two complementary efforts. First, the City independently manages and documents stormwater system permit requirements that apply specifically to Manhattan Beach.
Second, the City participates with the cities of Redondo Beach, Hermosa Beach, and Torrance, and the Los Angeles County Flood Control District in the Beach Cities Watershed Management Group (Beach Cities Group). Through this regional partnership, the agencies jointly implement the Beach Cities Coordinated Integrated Monitoring Program (CIMP) and Watershed Management Program (WMP).
The CIMP includes receiving-water and storm drain monitoring, data reporting, watershed progress reporting, and coordination with the Los Angeles Regional Water Quality Control Board (Water Board). The WMP identifies priority capital improvement projects to reduce pollutants in stormwater discharges.
28th Street Storm Drain
The 28th Street storm drain system, shown in Attachment 1, was identified as a high priority because long-term monitoring data showed that this storm drain contributes to bacteria detections in the South Santa Monica Bay, particularly during wet weather days. The 28th Street storm drain system collects stormwater runoff from a tributary area of approximately 1,520 acres, accounting for about 60 percent of the City of Manhattan Beach’s stormwater flows. The tributary area also includes a small contribution from the cities of Redondo Beach and Hermosa Beach.
Given its large drainage area and compliance risks, the WMP ranked the 28th Street storm drain system as the top priority for reducing discharges of bacteria, trash, and debris into the South Santa Monica Bay.
On April 20, 2020, the City Council approved a contract with California Watershed Engineering, Corp. (CWE), a firm specializing in water resources, to conduct a feasibility study of potential sites for treating stormwater to reduce pollutants in the 28th Street storm drain system. Three locations were evaluated: Polliwog Park, the 26th Street Parking Facility, and a beachfront site near the Marvin Braude Bike Trail.
28th Street Stormwater Infiltration Project
The 26th Street Parking Lot and Bruce’s Beach site was selected as the preferred site for a project to reduce pollutants in the 28th Street storm drain system for three main reasons. First, it is near the end of the 28th Street storm drain system, where the accumulation of pollutants along most of the system can be addressed. Second, it is one of the few open spaces along the coast in the City. Third, the underground soil consists of sand, which is well-suited to absorbing and draining water - an important condition for stormwater pollutant removal projects.
On February 15, 2022, CWE was awarded a contract to design a system to reduce pollutants at the 26th Street Parking Lot and Bruce’s Beach site. The project was named the 28th Street Stormwater Infiltration Project (Project).
On March 18, 2025, the City Council approved the engineering plans and specifications for the Project and authorized the solicitation of sealed bids for construction of the project.
The project was designed as a stormwater drywell system which works as follows: storm water in the pipe under 28th Street and Manhattan Avenue is diverted to an underground storm water treatment system under Manhattan Avenue between 27th Street and 26th Street. The treatment system consists of pumping storm water up and through trash and sediment removal devices and routing it to a matrix of drywells located in the 26th Street parking lot and at Bruce’s Beach Park, as shown in Attachment 2. The drywells, which generally consist of a chamber of engineered gravel and permeable textiles, cause the water to infiltrate into the existing soil at designated locations, which removes pollutants.
Construction Contracting
On June 23, 2025, staff issued a Request for Qualifications (RFQ) to pre-qualify firms interested in bidding to construct the project by assuring that they would have the requisite licensing, bonding, experience, and capabilities in accordance with applicable State and City procurement requirements. Qualifications were submitted by 11 contractors, and following a comprehensive evaluation against the established selection criteria, nine contractors were deemed qualified.
A notice inviting bids for construction of the Project was issued on August 27, 2025, in accordance with the provisions of the California Public Contract Code. The notice inviting bids was advertised in The Beach Reporter, on the City of Manhattan Beach Public Works Department Bid Opportunities webpage, and on the City’s Bid Portal on OpenGov (an online service that connects vendors, suppliers, and contractors to government procurement opportunities). In addition, staff conducted a mandatory pre-bid meeting on September 20, 2025, for the prequalified contractors.
Four bids were received by the deadline of October 21, 2025. It is important to note that State law prohibits the City from choosing a contractor it prefers for these types of public infrastructure construction projects. Rather, State law states that a construction agreement may only be awarded to the lowest responsive and responsible bidder. A bidder is responsible if they meet the minimum requirements in the notice inviting bids with respect to experience, facilities, references, and financial resources. A bid is considered responsive if it demonstrates compliance without material deviation from the requirements of the solicitation and the terms and conditions of the proposed contract.
The four bids received by the deadline were analyzed by staff for arithmetical errors, completeness, and accuracy. Staff reviewed the bid, contractor’s license, and references for the apparent low bidder, Zusser Company, Inc. (Zusser), and determined their bid and license were in order.
On December 16, 2025, the City Council awarded a construction agreement for the Project to Zusser in the amount of $25,308,810 and authorized the City Manager and/or their designee approval authority for a contingency fund of up to $2,530,881 (10% of construction contract cost) for unforeseen work, if necessary.
Construction Management and Inspection
Successful construction of a capital improvement project requires significant contract administration and rigorous oversight of construction activities. This includes construction management services which generally consist of administering the construction contract, monitoring the construction schedule, addressing schedule risk or deviation, reviewing and approving payments for work completed, managing potential differing site conditions, controlling the budget and use of contingency funds, and coordinating between all parties involved in construction. Additionally, construction inspection is needed - which generally consists of inspecting all work for conformance with the engineered plans and specifications; monitoring all site activities for compliance with safety regulations, traffic controls, and environmental protections; overseeing and documenting materials testing; and preparing daily construction reports and compiling other construction records.
To obtain suitable construction management and inspection resources, on August 14, 2025, a request for proposals for these services was issued. A total of four proposals were received by the deadline of September 18, 2025. The proposals were evaluated for understanding of the scope of services, firm’s qualifications and experience in performing similar work, management and quality control/assurance methods, qualifications and experience of key personnel, and familiarity with local conditions. Transtech Engineers, Inc. (Transtech) was selected as the most qualified firm based on these criteria. Accordingly, on December 16, 2025, the City Council approved a professional service agreement with Transtech for construction management and inspection services.
Engineering Services During Construction
During construction of a capital improvement project, engineering support is essential to ensure the project is built as intended. Typically, this support is provided by the engineering firm that produced the engineered plans and specifications, also known as the Engineer of Record (EOR). The engineering support services during construction include attending construction progress meetings and conducting periodic site visits to assure that design intent is being met; reviewing product data, shop drawings, and samples for compliance with the engineered plans and specifications; providing updated designs when field conditions are found to differ from what records have shown; and promptly responding to contractor questions, as it is not practical to convey absolutely all the information needed for construction without answering some contractor questions and clarifying some items.
The Project’s EOR is CWE, and on December 16, 2025, the City Council approved an amendment to their design services agreement to add engineering services during construction.
DISCUSSION:
Pre-Construction
Prior to commencing construction, Zusser was required to submit a performance bond, which protects the City if Zusser fails to perform in accordance with the contract, because a surety company will arrange completion of the work at the same contract price. Additionally, Zusser was required to submit a payment bond, which protects the City if Zusser fails to pay its subcontractors, as a surety company will arrange payment to the subcontractors at no additional cost to the City. Furthermore, Zusser was required to provide several certificates of insurance, including automobile, workers’ compensation, general, and umbrella liability, among others. These insurance requirements also protect the City by ensuring that the contractor has sufficient insurance to cover unexpected losses.
After confirming the required bonds and insurance, the City issued the first notice to proceed with construction (NTP 1) on March 13, 2026. NTP 1 authorized the contractor to submit product data, shop drawings, and samples for review and approval for conformance with the engineered plans and specifications, so that materials could be ordered and fabricated.
Subsequently, a limited second notice to proceed (NTP 2) was issued on May 5, 2026, authorizing the contractor to mobilize to the project site; implement the City-approved traffic control plan; install settlement, vibration, groundwater, and noise monitoring equipment; and construct 20 drywells, including field validation of engineering assumptions on the first drywell.
The traffic management plan, as shown in Attachment 3, included closure of Manhattan Avenue between 26th and 27th Streets, closure of 26th Street Parking Lot, converting Ocean Avenue to a northbound one-way street, switching parking on 27th Street between Highland and Marine Avenues from the north to south side of the street, implementing a neighborhood residential parking permit program, limiting public parking to 1 hour until the 26th Street Parking Lot reopens, lifting street sweeping restrictions in the neighborhood near the project area, and increasing parking enforcement in the neighborhood.
Construction
On June 1, 2026, the contractor mobilized to the project site and began drilling the first drywell. This drywell was considered a test, or pilot, drywell because the site's infiltration rate had not yet been field-validated. Although the Project was conservatively designed for 40 drywells, this was based on the EOR’s extensive experience with similar projects in similar conditions; however, field validation of infiltration rates could result in a reduction in the number of drywells. Field validation was deliberately scheduled for the construction phase of the project rather than the engineering phase because constructing a single stand-alone drywell during engineering would have been disproportionately more expensive, as it would have required a full mobilization and management effort.
Sub-Contractor Substitution Request
September 9, 2026, once drilling resumed and 5 drywells were completed, Zusser submitted a request to the City to replace the drywell subcontractor. Zusser was contractually required to obtain the City’s approval before replacing any subcontractor. In accordance with California law, the City notified the subcontractor that this request had been submitted. The subcontractor responded to the City stating that they did not think they should be replaced. Although the matter was not the City’s conflict, California law required the City to hold a hearing on the matter. Staff notes that the subcontractor started demobilizing from the project site on September 10, 2026.
A subcontractor replacement hearing was held on October 29, 2026, with an independent industry expert serving as the Hearing Officer. During the hearing, the prime contractor made their case as to why the subcontractor should be replaced, and the subcontractor made their case as to why they should not be replaced. On November 3, 2026, the Hearing Officer made a determination. On November 4, 2026, the Public Works Director issued a decision approving Zusser’s request to substitute the drywell subcontractor based on the Hearing Officer’s determination.
Between Zusser’s subcontractor substitution request and the hearing determination, two more drywells were constructed, and the full-scale infiltration test was completed. The infiltration test finalized the number of drywells needed for the project at 35.
On November 4, 2026, Zusser proposed a replacement subcontractor, Condon-Johnson & Associates, Inc. (Condon-Johnson), for the City’s approval. Public Works staff checked Condon-Johnson’s licenses, labor compliance registrations, and experience references. On November 10, 2026, Public Works staff approved the replacement subcontractor and requested a revised schedule from Zusser.
Current Status
To date, a total of seven drywells have been installed, and the City has approved payments totaling $1,695,770 of the $25,308,810 contract price, or 6.7%. The subcontractor substitution request or its outcome does not change the contract price of the project, barring any approved contract extensions or unforeseen site conditions, such as inclement weather, the discovery of an unrecorded utility, or acts of God.
Similarly, Zusser remains obligated to complete the project by the contract completion date, barring any approved contract extensions or unforeseen site conditions, such as inclement weather, the discovery of an unrecorded utility, or acts of God. The current completion date for the project is November 18, 2027. The contract allows the City to pursue liquidated damages in the amount of $10,000 per working day if the project is not completed on schedule.
Zusser is also contractually required to maintain the project site in good order and to protect the project site from stormwater impacts. The City will strictly monitor the site throughout construction for potential stormwater impacts when rain is forecasted, and require the contractor to take necessary protective actions.
Current Status
Given that the substitute subcontractor was just approved, a revised construction schedule remains pending as of the date of this staff report's publication. However, in general, the main elements and order of construction are anticipated to be those listed below, as shown in Attachment 4.
• Remaining drywells for the lower and upper parking lots.
• Underground structure at 28th Street and Manhattan Avenue that diverts stormwater to the treatment system.
• Stormwater pipe under Manhattan Avenue from 28th Street to 27th Street.
• Trash and sediment removal devices on Manhattan Avenue between Bruce’s Beach Park and the parking lots.
• Restoration work including parking lot improvements.
There will be significant overlapping activities and concurrent work; therefore, the elements below represent the general order rather than the absolute sequence of construction.
Additionally, Staff notes that Zusser reserves the right to change the order of construction to best suit their needs, as the construction method is best determined by the construction contractor.
Review of Construction Oversight Protocols
Given the significant impacts of this project to the neighborhood and the El Nino forecast for the 2026-2027 rainy season, the Public Works Director is undertaking a review of construction oversight protocols and resources. This may result in revisions to the construction oversight process and/or the deployment of additional construction oversight resources, potentially with specialized expertise such as geotechnical engineering or geohydrology.
PUBLIC OUTREACH:
Over the past six years, a number of community and City Council meetings were held for this Project.
Most recently, considering the pause in construction and concerns raised by nearby residents, acting on the recommendation of the Mayor, the Public Works Director held an on-site community meeting on October 28, 2026. Postcards were mailed to residents near the project, and an email notice was sent to the Project’s email list to inform them of the meeting.
The meeting was attended by a group of approximately 35 to 40 residents. Public Works gave an overview of the current status of the project staff and responded to questions regarding the pause in work and next steps. Additionally, there was a pattern of questions from residents on the following topics:
• Traffic movements and lighting at the intersection of 27th Street and Highland Avenue;
• Stop sign compliance at the intersection of 27th Street and Manhattan Avenue;
• One-way traffic compliance on Ocean Drive; and
• Partial re-opening of the southern parking lot.
Staff initially responded that the traffic management plan was implemented with the idea that it would be reviewed and adjusted if necessary. Therefore, staff committed to reviewing these concerns and considering modifications to the traffic management plan as the project progresses.
Finally, the audience was reminded that the project will be on the City Council agenda on November 17, 2026.
Future Meetings and Outreach
Community meetings and City Council updates will be scheduled prior to critical construction stages throughout the duration of the Project. Postcards will be mailed to residents living near the project, and an email notice will be provided to the Project’s email list to inform them about any upcoming meeting. Additionally, the meetings will be listed on the City’s website events calendar and shared on social media platforms.
ENVIRONMENTAL REVIEW:
No environmental review is required for this update. The City fully complied with the California Environmental Quality Act during the review and approval of the project prior to construction.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Storm Drain System and Drainage Area
2. 28th Street Stormwater Infiltration Project
3. Traffic Management Plan
4. Order of Construction
5. Location Map
6. PowerPoint Presentation