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CC SR 20260421 E - Crenshaw Sinkhole Emergency NOC CITY COUNCIL MEETING DATE: 04/21/2026 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider a Notice of Completion for the Crenshaw Boulevard (Approximately 830-feet North of Crest Road) Storm Drain Contract. RECOMMENDED COUNCIL ACTION: (1) Accept the construction contract with Colich & Sons, L.P. for the emergency work to replace the deteriorating storm drain on Crenshaw Boulevard approximately 830-feet north of Crest Road as complete; (2) Authorize the City Clerk to file a Notice of Completion (NOC) for the project with the Los Angeles County Registrar-Recorder’s Office; and if no claims are filed within 35 days after recordation, send a notice to the surety company to exonerate the Performance Bond; and, (3) Authorize the Contract Officer to release the 5% construction retention payment to Colich & Sons L.P., 35 days after recordation of the NOC by the Los Angeles County Registrar-Recorder’s Office, contingent upon no claims being filed on the project, and the contractor posting an acceptable warrant y bond with the City. FISCAL IMPACT: The total construction cost was $360,110, which is equal to the approved total construction budget. The total cost of the project, inclusive of other components such as engineering and inspection, is $420,100. The work is funded through the Fiscal Year (FY) 2025- 26 budget under the Stormwater Asset Management Program in the Capital Infrastructure Program Fund. The budget amount listed below is the budget for the City’s entire storm drain program. VR Amount Budgeted: $1,450,000 Additional Appropriation: $0 Account Number(s): 330-400-8701-8XXX (various accounts) (CIP Fund – Storm Drain Asset Mgmt – Various) VR ORIGINATED BY: Brandon Mesker, Associate Engineer REVIEWED BY: Ramzi Awwad, Public Works Director APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Notice of Completion (page A-1) 1 B. March 17, 2026 Emergency Construction Contract Staff Report (Linked) BACKGROUND: In January 2025, a resident reported that a location on the northbound lane of Crenshaw Boulevard approximately 830 feet north of Crest Road appeared to be sinking. Shortly thereafter, Staff conducted a camera inspection of the existing storm drain system beneath the reported location. The camera inspection revealed that the existing metal pipe was rusted out along the flowline and required replacement; however, there was no indication at that time that the pipe was collapsing or the roadway was subsiding. Staff began the process of preparing engineered plans and specifications through a consultant engineer to obtain construction bids for replacement of the pipe. In August 2025, as part of a routine inspection, Staff observed separation of a portion of the curb and gutter located above the storm drain line. As a precautionary measure, the City installed steel plates across Crenshaw Boulevard while engineering and b idding of the replacement project were in progress. After observing the expansion of a sinkhole on Hawthorne Boulevard at Indian Valley Road shortly after recent rainstorms, Staff immediately obtained an additional camera inspection of the Crenshaw Boulevard storm drain to be sure that the condition there was not also worsening due to the recent rainstorms. The updated camera inspection revealed further deterioration of the storm drain warranting an immediate response . DISCUSSION: Following an informal competitive bidding process, the City authorized Colich and Sons, L.P. (Colich) to commence work on replacing the deteriorating storm drain based on their proposal in the amount of $360,110. This bid was formalized into a construction contract that also included a $25,000 contingency and was signed by the City Manager on March 14, 2026 under emergency procurement procedures cited in Rancho Palos Verdes Municipal Code (RPVMC) Section 2.44.080 – “Emergency Purchases”, which states, “Emergency purchases required due to natural disasters or other unforeseen circumstances may be made by the purchasing agent if so noted on the purchase order form. Any such purchase shall be reported to the City Council at the earliest opportunity, including supporting documentation to demonstrate the emergency and to provide a detailed accounting”. (Attachment B) As a separate item on tonight’s agenda, the City Council is being asked to ratify payments for the emergency response under the City Manager’s emergency contract, in accordance with RPVMC procurement procedures; which state that emergency purchases made by the City Manager shall be reported to the City Council at the earliest opportunity including detailed accounting. Construction was substantially completed on March 24, 2026 for a total cost of $360,110, which is equal to the approved total construction budget. The total cost of the project, inclusive of other components such as engineering and inspection , is $420,100. 2 The construction contract includes a 12-month warranty period requiring the contractor to remedy any defective work. The project area will be monitored for the duration of the warranty period. Figure 1: Southbound Crenshaw Blvd After Construction Figure 2: Northbound Crenshaw Blvd After Construction 3 The filing of the NOC with the Los Angeles County Registrar-Recorder’s Office allows the City to close out its contract with Colich and release the associated retention within a reasonable timeframe relative to the date that all construction contract work was completed, and when the City took beneficial use of the facility. CONCLUSION: The construction contractor, Colich, has completed all work in accordance with the plans, specifications, and construction contract. Therefore, Staff recommends accepting the project as complete and filing a NOC with the Los Angeles County Registrar-Recorder’s Office. If no claims are filed within 35 days after recordation, the City will release the 5% retention, and upon the contractor posting an acceptable warranty bond, notify the surety company to exonerate the Performance Bond. ALTERNATIVES: In addition to Staff recommendation, the following alternative action s are available for the City Council’s consideration: 1. Direct Staff not to file the NOC for emergency work to replace the deteriorating storm on the northbound direction of Crenshaw Boulevard approximately 830-feet north of Crest Road. 2. Take other action, as deemed appropriate. 4 Revised 05/2019  To be recorded with County Recorder within 15 days after completion. No recording fee. RECORDING REQUESTED BY: City of Rancho Palos Verdes Attn: City Clerk 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 AND WHEN RECORDED MAIL TO: Same as above THIS SPACE FOR RECORDERS USE ONLY NOTICE OF COMPLETION (CA Civil Code 9204- Public Works) Notice is hereby given by the undersigned owner, a public entity of the State of California, that a public work of improvement has been completed, as follows: Project title or description of work: Date of completion: Nature of owner: Interest or estate of owner: Address of owner: Name of contractor: Address of contractor: Street address or legal description of site: Dated: ___________________________ Owner: City of Rancho Palos Verdes (Name of Public Entity) By: Title: ____________________________ Ara Mihranian, AICP, City Manager State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I am the City Clerk of the City of Rancho Palos Verdes, the public entity which executed the foregoing notice and on whose behalf I make this verification; I have read said notice, know its contents, and the same is true. I certify under penalty of perjury that the foregoing is true and correct. , California on (Date) Executed at Rancho Palos Verdes By: Title: Teresa Takaoka, City Clerk A-1