TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Joseph DeFrancesco, Interim Public Works Director
Gilbert Gamboa, City Engineer
Bianca Cardenas, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 3 to the Professional Engineering Services Agreement with IDS Group, Inc. for $52,062 for the Parking Lot 3 Redevelopment Feasibility Study for a Total Not-to-Exceed Amount of $121,234. (Budgeted) (Interim Public Works Director DeFrancesco).
ADOPT RESOLUTION NO. 26-0072
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 26-0072 approving Amendment No. 3 to the Professional Services Agreement with IDS Group, Inc. for $52,062 and extending the term through December 31, 2028, for the Parking Lot 3 Redevelopment Feasibility Study.
FISCAL IMPLICATIONS:
Sufficient funds of $705,000 are currently available for the Parking Lot 3 Redevelopment Project within the Parking Fund. Amendment No. 3 authorizes an additional $52,062 for continued professional engineering services, bringing the total not-to-exceed amount under the agreement to $121,234. City Council’s approval of Amendment No. 3 is required, as the total amount of the amended agreement will exceed the City Manager's awarding authority. There are no additional fiscal implications for the project at this time.
BACKGROUND:
In the spring of 2025, “Project Pulse” was established as a coordinated approach to redeveloping the property at 400 Manhattan Beach Boulevard and the City-owned Parking Lot 3 property at 1155 Morningside Drive. In line with this initiative, the City Council held a study session on August 26, 2025, to discuss the redevelopment of the two properties and a related public engagement program. City Council directed staff to gather community feedback on a list of nine possible redevelopment alternatives and approved a public engagement program outlining the outreach and engagement strategies staff would use to collect input on these options.
On January 20, 2026, staff provided the City Council with a status update on public engagement efforts. The City Council reviewed the information collected and refined the list of redevelopment options for both locations. This includes one option focused on parking and another that presents a mixed-use, retail, and open space concept at 1155 Morningside Drive (Parking Lot 3), which includes underground parking. City Council instructed staff to engage an engineering consulting firm to develop conceptual schematics and cost estimates to assess the feasibility of creating an underground connection between the current Metlox parking structure and the proposed underground parking at the Parking Lot 3 site.
On April 21, 2026, staff provided City Council with a second status update, including input from the Planning Commission study session. City Council provided direction to investigate two ideas for Parking Lot 3 during the conceptual design workshops:
1. Mixed-use proposal featuring commercial (including retail) and open space, along with up to three levels of underground parking; and
2. A parking facility comprising up to three levels of underground parking and up to two levels of aboveground parking (providing approximately 200 parking spaces), with the top level potentially serving as a mix of open and/or enclosed areas that may include community meeting space.
DISCUSSION:
On March 17, 2026, the City entered into a contract with M. Arthur Gensler, Jr. & Associates, Inc. (Gensler) to provide architectural and public engagement services to develop conceptual designs for both Project Pulse locations. As part of this effort, professional engineering services are necessary to consider the feasibility and estimated costs for the underground parking structure options and the proposed structural connection to the existing Metlox underground parking structure. With the approval of Amendment No. 3, IDS Group, Inc. (IDS) will perform this specific engineering feasibility analysis in support of the comprehensive conceptual design services conducted by Gensler.
In accordance with the direction from the City Council, staff has asked IDS to submit a proposal for a structural feasibility study aimed at connecting the proposed underground parking at Lot 3 to the existing Metlox underground parking structure. Leveraging their experience and knowledge of the project area, the study will assess the viability of constructing a new underground parking facility at the Lot 3 site and the feasibility of integrating it with the current Metlox underground parking structure.
IDS previously provided services for the City’s 2017 Seismic Evaluation Report for the Lot 3 Parking Structure, which included options for a replacement parking structure and the respective opinion of probable costs. Subsequently, IDS provided updates to the Seismic Evaluation Report of the Lot 3 Parking Structure in 2022, as well as in 2024, before the structure’s demolition in late 2024.
In an effort to maintain the Project Pulse public engagement program timeline, IDS began providing professional engineering services through Amendment No. 2 of their current contract with the City for the prior seismic evaluation of the former Parking Lot 3 Structure. Amendment No. 2’s scope of work included a site visit, review of all available existing record drawings and reports, and preliminary discussion regarding project and site requirements.
The proposed Amendment No. 3 surpasses the City Manager's signing authority and requires City Council authorization for additional professional engineering services to prepare and finalize the feasibility report and rough order of magnitude cost estimates. The feasibility report will include developing up to three design concepts for a multi-level underground parking structure, considering and including:
• Options for two and three levels of underground parking (including underneath 12th Street right-of-way);
• Schematic parking stall layouts;
• Drive aisle widths;
• Vehicle circulation patterns;
• Structural floor depths;
• Structural connection to the existing Metlox parking structure;
• Elevator shaft;
• Mechanical ventilation;
• Protecting in place and/or relocation of existing underground utilities;
• Undergrounding of overhead electrical and communication facilities; and
• A load allowance (for a generic two- or three-level above-grade steel-framed commercial structure that could be constructed concurrently or later).
Following the anticipated completion of the report in August 2026, staff will acquire a more thorough understanding of feasible options and associated costs. They will subsequently present their findings to the City Council at a future meeting for the City Council's review and any additional guidance.
PUBLIC OUTREACH:
The public has been informed of this agenda item as part of the City’s standard meeting notice practices via public bulletin boards, website calendar, and social media. Outreach for these projects will consist of meeting with each impacted department and designated staff. Before these projects go to bid or begin construction, public notice of the projects will be provided.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary. While the goal is to make progress towards developing design concepts, future redevelopment project(s) that the City Council identifies will be subject to applicable provisions of CEQA and will be analyzed at that time.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 26-0072
2. Amendment No. 3 - IDS Group, Inc.
3. Agreement, Amendment No.1, and Amendment No. 2 - IDS Group, Inc.