City Council
Report
City Council Meeting: July 28, 2026
Agenda Item: 4.D
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Architecture Services Division Subject: Approval of Second Modification to Agreement #11607 SMA Builders, Inc. for Additional Construction Services for the Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project
Recommended Action
Staff recommends that City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to execute a second modification to agreement No. 11607 (CCS) in the amount of $200,000 with SMA Builders, Inc. for construction services for the Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project for the Public Works Department. This would result in a new total amount not to exceed $2,174,000, with future year funding contingent on Council budget approval.
Summary
Virginia Avenue Park is recognized as a community hub that empowers families, shapes programming, celebrates culture and tradition, and maintains the vibrant spirit of the Pico Neighborhood. The Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project (Project) has been mostly implemented at the Thelma Terry building, located in the heart of Virginia Avenue Park. The Project replaced the building’s underutilized existing preparation kitchen, office, and storage space to accommodate an all-electric shared kitchen and food storage area. Staff recommends that the City Council authorize the City Manager to execute a second modification in the amount of $200,000, with SMA Builders Inc., for a new total contract amount not to exceed $2,174,000, for construction required to obtain Los Angeles 2 of 4
County Department of Public Health approval. This proposed modification is to be funded with Community Development Block Grant (CDBG) funds.
Discussion
Virginia Avenue Park, located at 2200 Virginia Avenue, serves as a community hub that empowers families, shapes programming, celebrates culture and tradition, and maintains the vibrant spirit of the Pico Neighborhood, which is rooted in strength, resiliency, and social justice. The Thelma Terry building is used primarily for community gathering activities, community services, and programs for school-aged children. Upon completion, the Project would convert an existing City-owned facility into a fully licensed commercial kitchen that would offer kitchen rentals for local food businesses and small business incubator services to provide entrepreneurship education for its local members. The new kitchen will cultivate the Pico Neighborhood and surrounding community food entrepreneurs and support ongoing programming by providing affordable shared commercial kitchen space, mentorship, and market opportunities.
The kitchen and Thelma Terry improvements, including renewed community spaces with refreshed wall and floor finishes, new energy-efficient lighting, a new roof, access control, and a security system, have been substantially completed. The kitchen is expected to open to the public late summer to early fall 2026. Approval of this second modification in the amount of $200,000 with SMA Builders Inc. for a new total contract amount not to exceed $2,174,000. The additional work would include installation of tile behind the mop sink, replacement of the deteriorated storefront windows and doors, replacement of the deteriorated wood trellis and installation of exterior shade sails, and replacement of the deteriorated window treatments in the community room. The modification also funds improvement identified during final inspection by the Los Angeles County Department of Public Health. Additional funds for the Project were approved in the amended 2024-25 CDBG Annual Action Plan.
Environmental Review
The project is categorically exempt from CEQA pursuant to Section 15301 and Section 15302 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) 3 of 4
projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The project would renovate the existing City facility at 2200 Virginia Avenue, and therefore, it has been determined that the project would fall within the Class 1 and Class 2 categorical exemptions. Furthermore, none of the exceptions to categorical exemptions set forth in the CEQA Guidelines, Section 15300.2 of the CEQA Guidelines apply to this project.
Past Council Actions
Meeting Date Description
11/11/24 (Attachment A) Award Bid Modification for the Virginia Avenue Park Commercial Financial Impacts and Budget Actions
Staff seeks authority to approve available CDBG funds currently budgeted in the Capital Improvement Program to increase the amount of the contract with SMA Builders Inc. for the construction services for the Project.
Contract Modification Request
Funding
Source
Current
Authorized
Amount
FY 2026-27
Request
Amount
Dept/CIP Account #
Total Revised
Contract
Amount
CDBG Fund $1,654,500 $200,000
C1908490.689000 $1,854,500
General
Fund
$174,500 $0
C0104580.689000 $174,500
General
Fund
$145,000
$0
01500003.552010 $145,000
Total $1,974,000 $200,000 Total $2,174,000
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Future year funding is contingent on Council budget approval.
Prepared By: Jared Schultz, CIP Project Manager
Approved Forwarded to Council
Attachments:
A. November 11, 2024 Staff Report (Web Link)
B. SMA Builders Contract
C. Levine Act Disclosure Form
D. Oaks Initiative Form