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CC - CONSENT ITEM: (1) Adoption of an Addendum to the Initial Study/Mitigated Negative Declaration for the Washington Boulevard Stormwater and Urban Runoff Diversion Project, PR001; (2) Award of Construction Contract to Stacy & Witbeck, Inc., as the Lowest Responsive and Responsible Bidder, in the Amount of $14,459,640 for the Washington Boulevard Stormwater and Urban Runoff Diversion Project, PR001 and Median Improvements, PS020; (3) Authorization to the Public Works Director to Approve an Additive Bid Item to the Contract in an Amount Not-to-Exceed $2,332,000 Subject to Grant Funding Becoming Available; (4) Authorization to the Public Works Director to Approve Change Orders to the Contract in an Amount Not-to-Exceed $2,518,746 to Cover Contingency Costs; (5) Approval of an Amendment to the Existing Professional Services Agreement with Michael Baker International for Construction Management & Inspection Services in an Amount Not-to-Exceed $400,000; (6) FOUR-FIFTHS VOTE REQUIREMENT: Approval of a Related Budget Amendment Appropriating $2,000,000 from Clean Water/Clean Beach (Fund 434) Fund Balance to PR001; and (7) FOUR-FIFTHS VOTE REQUIREMENT: Approval of a Related Budget Amendment Appropriating $2,490,000 Costco Wholesale Corporation Cost Share to PR001
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Meeting Date: July 14, 2025
Contact/Dept: Sean Singletary/Public Works - EPO
Phone Number: 310-253-6457
Fiscal Impact: Yes [x] No [ ] General Fund: Yes [] No [x]
Attachments: : Yes [x] No [ ]
Public Notification: E-Mail: Meetings and Agendas (07/10/2025)
Department Approval: Yanni Demitri, Public Works Director/City Engineer (06/19/2025)
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RECOMMENDATION
Staff recommends that the City Council (1) adopt an addendum to the Initial Study/Mitigated Negative Declaration for the Washington Boulevard Stormwater and Urban Runoff Diversion Project; (2) award a construction contract to Stacy & Witbeck, Inc., as the lowest responsive and responsible bidder, in the amount of $14,459,640 for the Washington Boulevard Stormwater and Urban Runoff Diversion Project, PR001 and Median Improvements, PS020; (3) authorize to the Public Works Director/City Engineer to approve an additive bid item to the contract in an amount not-to-exceed $2,332,000, subject to grant funding becoming available; (4) authorize the Public Works Director to approve change orders to the contract in an amount not-to-exceed $2,518,746 to cover contingency costs; and (5) approve an amendment to the existing professional services agreement with Michael Baker International for Construction Management & Inspection Services in an amount not-to-exceed $400,000; (6) approval of a related budget amendment appropriating $2,000,000 from Clean Water/Clean Beach (Fund 434) Fund Balance to PR001 (four-fifths vote required); and (7) approval of a related budget amendment appropriating $2,490,000 Costco Wholesale Corporation Cost Share to PR001 (four-fifths vote required).
BACKGROUND/DISCUSSION
On December 28, 2012, the Los Angeles County Municipal Separate Storm Sewer System Permit (MS4 Permit) became effective in accordance with the Clean Water Act. The Los Angeles MS4 Permit covers unincorporated areas of Los Angeles County, the Los Angeles County Flood Control District, and 84 cities within Los Angeles County, including the City of Culver City. In order to comply with the MS4 Permit, the City Council approved the development and implementation of an Enhanced Watershed Management Program (EWMP). The EWMP reviews the watershed as a whole and proposes Best Management Practices (BMPs) and signature projects for responsible jurisdictions to complete.
The majority of the City drains to the Ballona Creek watershed, but a small portion of the City drains to the Marina Del Rey watershed. The proposed Washington Blvd Stormwater Project was identified as one of 23 regional projects in the Marina Del Rey EWMP. When implemented, this project will treat all Culver City-generated dry weather run-off and the Permit-required wet weather run-off volumes that would have discharged to Marina Del Rey Harbor making Culver City in full compliance with the NPDES Permit within the Marina Del Rey watershed.
The project will capture stormwater and urban runoff from approximately 42 acres of drainage area in the vicinity of Washington and Lincoln Boulevards (including Costco). This drainage area is primarily commercial and residential. The project will capture and treat the 85th percentile, 24-hour storm event using ultraviolet (UV) filtration under Glencoe Avenue north of Washington Boulevard. The filtered water will be returned to the storm drain. Additionally, eight medians will be constructed along Washington Boulevard between Beethoven Street and Glencoe Avenue as part of the project. The design includes piping and storage to irrigate the proposed Washington Boulevard median project.
The project is an innovative public-private partnership with Costco as it addresses discharges from the City within the Marina del Rey Watershed, and the runoff from the redevelopment and expansion of Costco’s parking lot. Local agencies are often constrained by limited space for stormwater project construction in the public right-of-way, and there are difficulties for private entities such as Costco to build and maintain stormwater treatment facilities to comply with Low Impact Development (LID) regulations. By contributing $2,490,000 toward this project, Costco complies with the LID requirements. This successful public-private partnership is being monitored by the Regional Water Quality Control Board and other agencies as a unique example of stormwater compliance collaboration. On October 10, 2016, City Council approved a Memorandum of Understanding with Costco to contribute funding toward the project. The MOU and the associated amendment is provided as Attachment 3. This funding will be appropriated to the project PR001 as part of this action. Approval of the budget amendment requires a four-fifths vote.
Public Outreach
On November 8, 2018 and April 30, 2019, community outreach meetings for Washington Boulevard Stormwater Diversion Project were held at Coeur d’Alene Avenue Elementary School Auditorium. Based on feedback from these meetings, the project was redesigned to lessen impacts, and a final public meeting was held virtually on April 8, 2021 to present the final design, where additional changes were requested by local businesses. Invitations to the public meeting were distributed to the immediate Culver City and City of Los Angeles businesses, residences, and local schools via letter and email subscribers through our City’s GovDelivery system, and Social Media outlets (Nextdoor, Twitter, and Facebook). An additional public meeting was conducted on September 12, 2024 to re-introduce the project.
CEQA
Pursuant to the California Environmental Quality Act (CEQA) guidelines, an Initial Study (IS) prepared for the project determined that the project will not have a significant adverse impact on the environment with mitigation incorporated and that a Mitigated Negative Declaration (MND) finding is appropriate. On June 22, 2020, the Notice of Intent (NOI) to Adopt a Mitigated Negative Declaration was published through County of Los Angeles Recorder’s Office in Norwalk, and Culver City News and provided 30-day public review and comments on the IS/MND document were accepted up to July 21, 2020. City Council adopted a resolution approving an Amended Mitigated Negative Declaration on August 10, 2020.
Since the 2020 Initial Study, the project has been scoped down considerably from its original project area and the treatment method has changed from a sewer diversion to a filtration of stormwater. An addendum to the Initial Study was produced which affirmed that the project does not have a significant adverse impact on the environment with mitigation incorporated and that a Mitigated Negative Declaration (MND) finding was appropriate.
Bidding History
This project was conceptualized in 2016 and initial designs completed in 2018. Design was updated based on input from residents and businesses in the adjacent corridors in several permutations between 2017 and 2023. In August 2023, the project was advertised for construction bids with a lowest bidder of $19,729,934. As the lowest bid was beyond the project budget by several million dollars, staff sought additional funding and value-engineered the project to lower the cost, even within an inflationary construction environment. Staff was successful is securing an additional $4,000,000 for the project through the County’s Safe Clean Water program. To reduce costs associated with large excavations, a new design less reliant on storage was completed using UV treatment, which treats stormwater instantaneously and does not require storage. This new design significantly reduces impacts to construction traffic on Washington Boulevard.
In anticipation of advertising the construction project, staff advertised a Request for Proposals (RFP) for construction management and inspection services and awarded a contract to Michael Baker International for $667,689 on December 10, 2021 when the original design was being completed. Staff requests an amendment in the amount of $400,000 to Michael Baker International’s contract to reflect increases in labor rates since that time.
The notice inviting bids was posted on PlanetBids on April 28, 2025 as Bid #2616. On June 5, 2025, eight bids were received by the City’s Purchasing Division. A summary of the bids received is below:
Contractor Bid Amount
Stacy & Witbeck Inc. $14,459,640
Zusser Company Inc. $15,949,626
Mladen Buntich Construction Co. Inc. $17,665,007
Toro Enterprises, Inc. $18,529,307
Clarke Contracting Company $18,894,633
Caliagua Inc. $19,540,028
Blois Construction LLC $21,902,641
Reyes Construction Inc. $22,275,216
Staff reviewed the bid documents and determined Stacy & Witbeck, Inc. submitted the lowest responsive bid. Staff reviewed the bid proposal and found the bid documents responsive and complete. The company’s bond, contractor’s license, and worker’s compensation insurance were reviewed and determined to meet City requirements. Stacy & Witbeck, Inc. is a well-established full-service contractor and has completed many similar projects in cities throughout southern California with satisfactory performance.
As part of the bid, bidders were requested to include an additive bid item for enhanced restoration of Washington Boulevard. The total bid price for this work is $2,332,000. When factoring in the additive bid, Stacy & Witbeck, Inc. remains the lowest responsive bidder.
In April 2025, the Central Santa Monica Bay Watershed Area Steering Committee of Los Angeles County’s Safe Clean Water Program selected the City for a $4,000,000 Regional Safe Clean Water Funds grant for this project. The grant award needs to be approved by the County Board of Supervisors before a transfer agreement can be executed for the grant funds. Since the City does not anticipate receiving the grant award and executing the agreement for the $4,000,000 in Regional Safe Clean Water Funds until January 2026, it is recommended that the base bid be awarded at this time.
Staff will return to Council to approve the transfer agreement and appropriate the grant funds after it is approved by the County. Staff recommends that the City Council authorize the Public Works Director to amend the construction agreement to include the additive bid items associated with the concrete pavement work pending the availability of grant funds.
Construction is scheduled to begin in Fall 2025 and is expected to be substantially completed by the Summer 2026. The construction material testing service provider will be selected from the City Council’s approved on-call list.
FISCAL ANALYSIS
The total funding required for the construct phase of the project consists of the construction contract base bid in the amount of $14,459,640 and a contingency of $2,518,746 for a total of $16,978,386, as well as $400,000 for the proposed amendment to the City’s construction management agreement with Michael Baker International. The total for the construction base bid, contingency and additional construction management is $17,378,386.
The Adopted Budget for Fiscal Year 2025-2026 includes $13,430,981 for the construction phase of the project in CIP Account No. PR001 (Marina del Rey Harbor Watershed - Washington Boulevard Stormwater & Urban Runoff) and PS020 (W. Wash Median/Stormwater Project - Median Improvements) which can be found in the CIP section of the budget book.
To fund the difference, staff recommends that the City Council approve two related budget amendments to incorporate funding from the Clean Water/Clean Beach (Fund 434) Fund Balance and the contribution from Costco.
Staff recommends that the City Council approve a budget amendment to appropriate $2,000,000 from the Clean Water/Clean Beach (Fund 434) Fund Balance to PR001. The Clean Water/Clean Beach (Fund 434) Fund Balance is currently estimated to be approximately $2.8 million at the end of Fiscal Year 2025-2026. Staff recommends that the City Council approve a budget amendment in the amount of $2,490,000 to PR001 to reflect Costco’s contribution to the project.
Approval of the budget amendments require a four-fifths vote.
If the City receives Safe Clean Water grant funding, the City can transfer funds back to the Clean Water/Clean Beach (Fund 434) Fund Balance for use on other eligible projects.
The Adopted Budget for Fiscal Year 2025-2026 includes funds for the project in the CIP projects listed below:
Existing Funding:
PR001 (Washington Boulevard Stormwater & Urban Runoff) $ 11,741,236
PS020 (Median Improvements) $ 1,689,745
Existing Funding Total $13,430,981
Proposed Budget Amendments:
Costco Contribution ($40,000 earmarked for design) $ 2,490,000
Clean Water/Clean Beach Fund Balance Transfer $ 2,000,000
Proposed Funding Amendments Total $ 4,490,000
The total funding for the project from the City’s existing funding and the proposed budget amendments is $17,920,981.
ATTACHMENTS
1. 2025-07-14-CC-ATT-Initial Study and Amended Mitigated Negative Declaration
2. 2025-07-14-CC-ATT-Addendum to the Amended Mitigated Negative Declaration
3. 2025-07-14-CC-ATT-Memorandum of Understanding (MOU) with Costco Wholesale Corporation
MOTION
That the City Council:
1. Approve an Addendum, finding that the modified Washington Boulevard, Stormwater and Urban Runoff Project (PR001) does not have a significant adverse impact on the environment with mitigation incorporated and that a Mitigated Negative Declaration (MND) was appropriate;
2. Award the construction contract to Stacy & Witbeck, Inc., as the lowest responsive and responsible bidder, in the amount of $14,459,640 for the Washington Boulevard Stormwater and Urban Runoff Project, PR001 and Median Improvements, PS-020;
3. Authorize the Public Works Director to approve an amendment to the contract to include an additive bid item in an amount not -to-exceed $2,332,000, subject to the availability of grant funding;
4. Authorize the Public Works Director to approve change orders to the contract in an amount not -to-exceed $2,518,746 to cover contingency;
5. Approve an amendment to the existing professional services agreement with Michael Baker International for construction management and inspection services for the Washington Boulevard Stormwater and Urban Runoff Project, PR-001 and Median Improvements, PS-020 in an amount not-to-exceed $400,000;
6. Approval of a Related Budget Amendment Appropriating $2,000,000 from Clean Water/Clean Beach (Fund 434) Fund Balance to PR001 (requires four-fifths vote);
7. Approval of a Related Budget Amendment Appropriating $2,490,000 Costco Wholesale Corporation Cost Share to PR001 (requires four-fifths vote);
8. Authorize the City Attorney to review/prepare the necessary documents; and
9. Authorize the City Manager to execute such documents on behalf of the City.