Manhattan Beach Council awards $27.8 million 28th Street stormwater contract to Zusser after questions about past labor fine

The Manhattan Beach City Council voted 3-2 on Dec. 16 to award a construction contract to Zusser Company for the 28th Street stormwater infiltration project, authorizing up to $27,839,691 including contingency. Council also approved a $1,095,755 construction management agreement with TransTech Engineers and a $521,380 design amendment to CWE for construction support.

The project is designed to capture and infiltrate polluted stormwater from the 28th Street outfall—identified by staff and consultants as a major contributor to bacteria exceedances that affect Santa Monica Bay—before it reaches the ocean. Interim Public Works Director Ted Siman and Senior Civil Engineer Eduardo (Eddie) Peck told the council that the design captures the initial, high-concentration flush of runoff and routes it into infiltration wells; staff estimated major construction would span roughly 12 to 15 months with work beginning in mid‑March.

The decision followed extended public comment and council debate focused on two competing concerns: the urgency of meeting MS4 permit requirements and preventing ongoing water-quality exceedances, and whether the lowest bidder, Zusser, had properly disclosed recent legal and administrative actions. Multiple speakers from environmental groups including Surfrider and Heal the Bay urged immediate award to avoid forfeiting Measure W regional funding and to reduce public-health risks. Opponents—including technical consultants and nearby property owners—asked the council to pause or rebid, citing engineering uncertainties and concerns about the contractor's record.

Councilmembers discussed a Department of Industrial Relations matter involving Zusser that staff said resulted in a monetary assessment related to worker misclassification. Mayor Pro Tem Franklin and other councilmembers pressed the contractor on why question 14 on the contractor statement was initially answered "none." Mishra Shodaroff, who identified himself as the owner/project manager for Zusser, said the underlying events occurred earlier and that the company provided clarifying information to staff during bid review. City staff reported they reviewed those materials and still deemed Zusser the lowest responsive and responsible bidder under California public contracting rules.

Siman and staff warned council that rejecting the bids or delaying award risked the loss of Measure W funding (the staff presentation cited a June 2026 expiration for a major portion of the grant), leaving the city to find roughly $17.5 million in alternate funding to proceed. Consultants and staff provided regulatory context: the city is subject to an MS4 permit that allows 17 exceedance days per year on the relevant metric and staff and consultants estimated the outfall has had roughly 47 exceedance days over the last 20 years; civil penalties and third‑party litigation could create heavier costs if the city falls into persistent noncompliance.

A substitute motion by Mayor Pro Tem Franklin to reject all bids and rebid the project failed 3-2. The main award resolution (Res. 25-0135) passed 3-2; related resolutions awarding the TransTech construction management contract (Res. 25-0136) and the CWE amendment (Res. 25-0137) also passed 3-2. Councilmembers who voted to award said staff's vetting satisfied the legal standard of "lowest responsive and responsible bidder" and that moving forward preserved grant funding and advanced public-health protections.

The council directed staff to finalize contract documents and proceed with notice to proceed and recommended contingencies and construction scheduling to limit impacts. Staff said it will continue outreach to neighbors in staging areas and return with documentation requested during the hearing. The city manager and city attorney were directed to keep council informed of any new material related to contractor disclosures or enforcement.

Authority and funding: staff said the project is funded primarily by Measure W regional funds plus other grants and local returns, with an estimated available fund total of about $29.6 million; the recommended awards and amendments fit within that budget envelope, according to the staff presentation.

Next steps: staff will finalize the contract and issue the first notice to proceed to allow the contractor to mobilize; construction for the 26th Street parking-lot portion is expected to start in mid‑March. Councilmembers asked staff to continue public updates and to provide documentation on labor-compliance safeguards during construction.

Quotes that illustrate the debate include environmental advocates urging action and the contractor's response to disclosure questions: "This project is critically important for both public and coastal health," said Naomi Maurice of Heal the Bay. Zusser's project manager Mishra Shodaroff told the council, "We are the owner and the project manager for this project," and acknowledged the firm had addressed the staff's follow-up during bid review.

The council vote preserves the project schedule and the city's effort to reduce pollutant loads to the bay while keeping the contractor-selection determination within the statutory procurement framework.