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CC SR 20260421 F - Hawthrone at Indian Valley Sinkhole NOC CITY COUNCIL MEETING DATE: 04/21/2026 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider a Notice of Completion for the Hawthorne Boulevard and Indian Valley Road Sinkhole Contract. RECOMMENDED COUNCIL ACTION: (1) Accept the construction contract with Colich & Sons, L.P. for the emergency work to address the sinkhole at the intersection of Hawthorne Boulevard and Indian Valley 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 emergency response was done on a time and materials basis, and the total construction cost was $179,857. The total cost of the project, inclusive of other components such as engineering and inspection, is $312,000. 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: N/A 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 BACKGROUND: During heavy rainstorms in December 2025, a small, shallow sinkhole began to develop at the intersection of Hawthorne Boulevard and Indian Valley Road. To maintain traffic flow while Staff further assessed conditions and developed plans to repair the sinkh ole, the Public Works Department hired Clarke Contracting Corporation (Clarke) to install traffic-rated steel plates over a 60-inch drainage pipe that was thought to be the cause of the sinkhole. Once a detailed assessment of the pipe was complete, Staff engaged the services of Sunbeam Consulting (Sunbeam) through an existing on-call contract to prepare engineered construction documents to repair the storm drain and restore the roadway surface. Staff planned to use these engineered construction documents to solicit bids from multiple construction contractors for construction of the repairs. Following additional rainfall between the evening of February 10 and the morning of February 11, 2026, Staff inspected the above-described traffic plates. The inspection found that the plates had noticeable displacement from the originally installed locati on, and the surrounding asphalt roadway had deteriorated such that the ability of the traffic plates to support traffic flow was compromised. DISCUSSION: The roadway conditions on Hawthorne Boulevard and Indian Valley Road that were observed by Staff on February 11 constituted an immediate risk to life and property and did not allow a reasonable timeframe for the City Council to formally declare an emergency related to the sinkhole. Therefore, on February 11, 2026, the City Manager approved a Construction Contract with Colich and Sons, L.P. (Colich) to repair the sinkhole, after notifying the City Council, City Attorney and City Department Heads. This action was conducted in accordance with Rancho Palos 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 ”. Colich completed the storm drain repair on February 13, 2026, at a cost of $179,857. The total cost of the project, inclusive of other components such as engineering and inspection, is $312,000. Due to the emergency nature of project, work was conducted on a time and material basis. Staff and Sunbeam have reviewed all Colich invoices and have determined the charges to be fair, reasonable, commensurate with the level of effort required, and consistent with daily field records. The 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. 2 Figure 1: Completed Repairs at the Hawthorne Blvd. and Indian Valley Rd. 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: 3 1. Direct Staff not to file the NOC for the Hawthorne Boulevard and Indian Valley Road Sinkhole Contract. 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