CITY COUNCIL MEETING DATE: 08/18/2026
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider a Notice of Completion for the Sidewalk Management Program Construction Contract.
RECOMMENDED COUNCIL ACTION:
(1) Accept the construction contract with FS Contractors, Inc. for the Sidewalk Management Program as complete;
(2) Authorize the City Clerk to file a Notice of Completion 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 Director of Public Works to release the 5% construction retention payment to FS Contractors, Inc., 35 days after recordation of the Notice of Completion by the Los Angeles County Registrar-Recorder’s Office, contingent upon no claims being filed on the project, and the contractor posting an acceptable warranty bond with the City.
FISCAL IMPACT: The total project cost for the past two fiscal years (FY 2024-25 and FY 2025-26) was $336,393, which is $538,606 under budget. The primary causes of the underspend are due to the construction contractor’s bid of $172,366 being significantly lower than the Engineer’s cost estimate of approximately $300,000, as well as the program falling behind schedule due to resource constraints to complete the project and delays with the design consultant completing the construction documents from the prior fiscal year.
The unspent amounts will be returned to fund balance and available for future use. This is an annual program and funding for the next phase is already included in the FY 2026-27 Adopted Budget for $370,000 (CDBG Fund and TDA Bike/Pedestrian Fund). VR
Amount Budgeted: $875,000 (FY 2024-25 & FY 2025-26)
Additional Appropriation: NA
Account Number(s): 310-400-8861-8XXX $470,000 (CDBG – Sidewalk Mgmt. Program – Various) 330-400-8861-8XXX $97,000 (CIP Fund-Sidewalk Mgmt. Program – Various) 340-400-8861-8XXX $308,000
(TDA – Sidewalk Mgmt. Program – Various) VR
1 CITYOF RANCHO PALOS VERDES
ORIGINATED BY: Diego Ascencio, Assistant Engineer
REVIEWED BY: Dave Copp, PE, Interim Public Works Director APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Notice of Completion (page A-1)
B. Staff Report Awarding Construction Contract (page B-1) BACKGROUND:
The Sidewalk Management Program (the Program) is intended to assess and prioritize the rehabilitation of the City’s inventory of sidewalk infrastructure. Detailed Citywide condition assessments are scheduled on a 3-year cycle and inform the priority of repairs based on approved funding. The scope of rehabilitation work generally includes grinding, repairing, and replacing damaged sections of sidewalk to maintain pedestrian access in the public right-of-way.
A construction contract for the Program was awarded by the City Council on March 17, 2026 in the amount of $172,366 to FS Contractors, Inc. (FS Contractors) to address the highest priority sections of sidewalk identified via the above-described condition assessments (Attachment B).
A total of 61 sidewalk sections (out of 93 sections originally identified for rehabilitation in FY 2024-25 and FY 2025-26) were rehabilitated as part of the construction contract in June 2026 in accordance with the plans and specifications. The list of rehabilitated sidewalk sections are provided as part of the Notice of Completion (Attachment A). The remaining
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.
[continued on the next page]
2 Figure 1: Sidewalk Mangagement Program (27137 Fon du Lac Rd.) Before Construction (left) and after contstruction (right)
Figure 2: Sidewalk Mangagement Program (1903 Avenida Feliciano) Before Construction (left) and after construction (right)
DISCUSSION:
The filing of the Notice of Completion allows the City to close out its contract with FS Contractors and release the associated 5% construction retention within a reasonable timeframe relative to the date all construction contract work was completed and the City took beneficial use of the completed work. A financial summary of the project is shown in Table 1 on the next page.
The FY2024-25 Budget originally allocated $700,000 to the Program for the design and construction of the first phase of priority sections of sidewalk. Due to resource constraints and delays in the consultant completing the construction plans, unspent funds were reallocated to FY 2025-26 and the initially planned scope of the consultant’s design work for the first phase was reduced so that the program could begin constructing the highest priority sidewalk repairs before the end of FY 2025-26. Additionally, the construction Contractor’s bid of $172,366 for constructing the first phase of sidewalk repairs was 3 significantly lower than the Engineer’s cost estimate of $300,000. The above-described impacts resulted in a cumulative significant underspend for the Program in FY 2025-26.
Table 1: Sidewalk Management Program Financial Summary
ADDITIONAL INFORMATION:
The City Council’s adopted budget for FY 2026-27 includes funding for the next phase of the Sidewalk Management Program (CIP Project No. 8861). As such, Staff continue to progress the rehabilitation of the remaining priority sections of sidewalk that could not be rehabilitated in prior fiscal years.
CONCLUSION:
The construction contractor, FS Contractors, has completed all work in accordance with the plans, specifications, and construction contract. Therefore, Staff recommend accepting the project as complete and filing a Notice of Completion 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 recommendations, the following alternative actions are available for the City Council’s consideration:
1. Direct Staff not to file the Notice of Completion for Sidewalk Management Program.
2. Take other action, as deemed appropriate.
8861 - Sidewalk Management Program
Fund Budget Notes
330 75,000.00 CIP Fund
340 150,000.00 Bicycle & Pedestrian Access Fund
FY25-26 Original Budget 310 470,000.00 CDBG Fund
FY25-26 Original Budget 330 22,000.00 CIP Fund
FY25-26 Original Budget 340 158,000.00 Bicycle & Pedestrian Access Fund Revised Budget 875,000.00
Fund Project Budget
Project-to-Date
Actuals
as of 08-07-2026
Project-to-Date
Committed
as of 08-07-2026
Project
Remaining
Balance
8001 Professional/Technical Services 310 96,000.00 19,097.55 - 76,902.45 8001 Professional/Technical Services 330 25,000.00 22,698.30 - 2,301.70 8005 Engineering Design Services 330 50,000.00 49,233.56 766.44 8005 Engineering Design Services 340 35,000.00 35,000.00 - - 8006 Professional/Technical Services 340 50,000.00 38,151.31 11,848.69 - Invs totaling $9,001.50 received to be paid 8/18/2026. One FY26-27 invoice pending.
8802 Other Improvements 310 374,000.00 135,364.06 - 238,635.94 8802 Other Improvements 340 223,000.00 25,000.00 - 198,000.00 8802 Contingency 330 22,000.00 - - 22,000.00
Project Total $ 875,000.00 $ 324,544.78 11,848.69 538,606.53 Project Budget Summary
FY24-25 Revised Budget
Project Costs Summary
FY24-25 Original Budget
Description
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.
Executed at Rancho Palos Verdes , California on (Date)
By:
Title: Teresa Takaoka, City Clerk A-1
#5318 Birchfield Ave.
#26317 Silverspur Rd.
#5323 Manitowac Dr.
#5919 Birchmont Dr.
#5557 Shoreview Rd.
#26945 Springcreek Rd.
#27022 Springcreek Rd.
#1 Via La Cima
#5644 Ravenspur Dr.
#26840 Shorewood Rd.
#26619 Shorewod Rd.
#26705 Fond Du Lac Rd.
#27137 Fond Du Lac Rd.
#7363 Via Lorado
#30540 Rue De La Pierre
#3672 Cliffsite Dr.
#28715 Goya Dr.
#28641 Mt Rushmore Rd.
#26303 Barkstone Drive
#5539 Bayridge Road
#26729 Hyte Road
#26748 Hyte Road
#26716 Hyte Road
#26704 Hyte Road
#5919 Birchmont Drive
#26706 Grayslake Road
#2009 Trudie Drive
#29002 S. Highmore Avenue
#2148 Dorado Drive
#2005 W Toscanini Dr.
#2004 W Toscanini Drive
#2153 W. Rockinghorse Road
#6 Sail View Avenue
#72 Sea Breeze Ave.
#24 Misty Acres Rd.
#28655 Crestridge Road
#28667 Crestridge Road
#27637 Avenida Del Mesa
#26441 Basswood Avenue
#5433 Whitefox Drive
A-2
#5445 Eau Claire Dr
#27028 Shorewood Rd.
#27018 Shorewood Rd.
#27003 Indian Peak Rd.
#5711 Ravenspur Drive
#27145 Freeport Road
#27146 Woodbrook Road
#27719 Hawthorne Blvd.
#27727 Hawthorne Blvd.
#27116 Grayslake Road
#28315 Lunada Ridge Drive
#9 Va Costa Verde
#6432 Seabryn Drive
#28810 Lomo Drive
#26772 Menominee Place
#5037 Silver Arrow Drive
#27128 Fond Du Lac Road
#5221 Silver Arrow Drive
#6971 Grovespring Drive
#1837 Avenida Feliciano
#1829 Macarthur Street
A-3
CITY COUNCIL MEETING DATE: 03/17/2026
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider awarding a Public Works Agreement to FS Contractors, Inc. for the Sidewalk Management Program for Fiscal Year 2025-26 and extending the professional services agreement Watearth, Inc. for engineering support during construction.
RECOMMENDED COUNCIL ACTION:
(1) Award a Public Works Agreement (PWA) for the Sidewalk Management Program to FS Contractors, Inc. in the amount of $172,366 with a contingency of 10%, or $17,237, for a total amount of up to $189,603;
(2) Approve Amendment No. 1 to the Professional Services Agreement (PSA) with Watearth, Inc. to extend the agreement term through June 30, 2026, with no change to the not-to-exceed amount for sidewalk engineering and related services during construction; and
(3) Authorize the Mayor and City Clerk to execute the above PWA and PSA amendment, in forms approved by the City Attorney.
FISCAL IMPACT: The recommendations will result in a fiscal impact of up to $189,603, which is included in the approved Fiscal Year (FY) 2025-26 Capital Improvement Program budget funded by CDBG Fund, which is a grant fund. VR
Amount Budgeted: $875,000
Additional Appropriation: N/A
Account Number(s): 310-400-8861-8XXX $470,000
(CDBG – Sidewalk Mgmt. Program – Vairous)
330-400-8861-8XXX $97,000
(CIP Fund-Sidewalk Mgmt. Program – Various)
340-400-8861-8XXX $308,000 VR
(TDA – Sidewalk Mgmt. Program – Various)
ORIGINATED BY: Diego Ascencio, Assistant Engineer
REVIEWED BY: Ramzi Awwad, Public Works Director
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. PWA with FS Contractors for the Sidewalk Management Program (page A-1) B-1
CITYOF RANCHO PALOS VERDES
4 -
B. Amendment No.1 to the PSA with Watearth, Inc. (forthcoming as late correspondence)
C. Existing PSA with Watearth, Inc. (page C-1)
D. Plans, Specifications, and Construction Documents for the Sidewalk Management Program (page D-1)
E. CIP Sheet for the Sidewalk Management Program (page E-1) BACKGROUND:
This Sidewalk Management Program (Program) was approved as part of the City’s Capital Improvement Program (CIP) budget for FY 2025-26 (Attachment E). The Program is intended to assess and prioritize the rehabilitation of the City’s inventory of sidewalk infrastructure. Detailed Citywide condition assessments are scheduled on a 3-year cycle and inform the priority of repairs based on limited funding. The scope of rehabilitation work generally includes grinding, repairing, and replacing damaged sections of sidewalk to maintain pedestrian access in the public right-of-way.
On September 28, 2024, the City entered into a PSA with Watearth, Inc. (Watearth) under the City Manager’s contracting authority to prepare a detailed report identifying the highest priority locations from the initial condition assessment report, constrained to available funding. Of the 97 locations originally identified in the initial condition assessment report, 67 locations were identified as the highest priority that could be funded and were included for rehabilitation through the Program for FY 2025-26. The report also informs the basis of design for preparing construction documents to rehabilitate prioritized sections of sidewalk.
A new PSA was awarded to Watearth on February 4, 2025 to provide the engineering, design, and construction documents for rehabilitating these high priority sections of sidewalk (Attachment C).
DISCUSSION:
Public Works Agreement Award
On December 15, 2025, the City issued a Notice Inviting Bids on the PlanetBids platform, to rehabilitate the above-described high priority sidewalk sections. Six bids were received by the deadline of January 30, 2026, as shown in Table 1 below.
Table 1: Sidewalk Management Program Bid Results
Bidder Bid Amount
FS Contractors, Inc. $172,366
Gentry General Engineering Inc. $244,966
Pavement Rehab Company $308,880
Estate Design and Construction $354,800
Shiraz Construction $388,888
Environmental Construction, Inc. $485,832
B-2
The lowest apparent responsible and responsive bidder was FS Contractors, Inc. with a bid in the amount of $172,366. Staff evaluated the bid and found FS Contractors, Inc., to be a qualified firm. Table 2 shows a budget summary of the project.
Table 2: Sidewalk Management Program Project Budget Summary Based on the above, the City Council is being asked to consider awarding a PWA to FS Contractors, Inc., in the amount of $172,366, with a contingency of 10%, or $17,237, for a total amount of up to $189,603 to construct the improvements for the Sidewalk Management Program for FY 2025-26.
Staff expect construction to be completed in June 2026, barring unforeseen circumstances.
Provisions are included in the construction documents to minimize disturbance to residents, traffic, parking, public facilities access and private property access. No street closures or detours are expected to be required during construction.
Amendment No. 1 to Agreement with Watearth
The PSA for Watearth included preparation of engineered plans and specifications (Attachment C) for soliciting construction bids as well as providing engineering support during construction. However, the PSA is now expired as the preparation of engineered plans and solicitation of construction bids took longer than anticipated. It is best practice to retain the engineer-of-record to provide engineering support during the construction phase of a capital project to ensure that the design intent for the project is correctly implemented in accordance with the plans and specifications, provide a single point of responsibility for technical decision making, and facilitate efficient problem solving should changed conditions or other technical issues arise. Therefore, Staff recommend approving Amendment No. 1 to the PSA with Watearth, extending the term through June 2026 to align the with the anticipated construction schedule (Attachment B). 8861 - ROW Improvements - Sidewalk Management Program
Project Budget Summary Fund Budget Notes
330 75,000.00
340 150,000.00
Revised Budget FY25-26 310 470,000.00
Revised Budget FY25-26 330 22,000.00
Revised Budget FY25-26 340 158,000.00
875,000.00
Project Cost Summary Fund Budget
Actuals
(as of 03-03-2026)
Committed
(as of 03-03-2026)
Remaining
Balance
8001 Professional/Technical 310 25,000.00 - - 25,000.00 8802 Other Improvements 310 445,000.00 - - 445,000.00
8001 Professional/Technical 330 25,000.00 22,698.30 - 2,301.70 8005 Engineeing Design 330 50,000.00 44,231.06 5,068.94 - $700 unencumbered returned to Fund Balance 8802 Other Improvements 330 22,000.00 - - 22,000.00
8005 Engineering Design 340 35,000.00 35,000.00 - -
8006 Inspection 340 50,000.00 - - 50,000.00
8802 Other Improvements 340 223,000.00 - - 223,000.00
Project Total 875,000.00 $ $ 101,929.36 $ 767,301.70 5,068.94 $ Revised Budget FY24-25
Revised Budget FY24-25
Budget Total
B-3
CONCLUSION:
Staff recommend the City Council award a public works agreement to FS Contractors, Inc., in the amount of $172,366, with a contingency of 10%, or $17,237, for a total amount of up to $189,603 to construct the improvements for the Sidewalk Management Program for Fiscal Year 2025-26.
Additionally, and based on the need to align the schedule of the engineering and support services agreement with Watearth during construction, Staff recommend that the City Council approve Amendment No. 1 to the PSA with Watearth, extending the term.
ALTERNATIVES:
In addition to Staff recommendation, the following alternative actions are available for the City Council’s consideration:
1. Do not award the public works agreement and direct Staff to re-solicit construction bids.
2. Do not approve the amendment to the PSA with Watearth, which would not provide for engineering support by the engineer-of-record during construction.
3. Take other action, as deemed appropriate.
B-4