The 26th Street Lot Now Hinges on a Hearing at City Hall

"At this time there is a disagreement between the prime contractor and the subcontractor." Public Works Director Ramzi Awwad, as the October 6 meeting agenda lists him, said that to the Manhattan Beach City Council on October 6, 2026, according to the city's recording of the meeting. It's the clearest explanation so far for why the fenced-off 26th Street parking lot above Bruce's Beach has looked so quiet this fall.

Awwad said the prime contractor wants to replace its subcontractor, and the subcontractor objects. Under California law the city has to hold a hearing to settle it. Until that happens, the North End's biggest beach lot is waiting on a contract question that gets decided at City Hall. The drill rigs set the pace only after that.

The timing matters because of what the project is for. It exists to clean up the beach at 28th Street after rain, and the rainy season is starting with the work stalled.

What Is Going Into the Ground

The 28th Street Stormwater Infiltration Project changes what happens to the first, dirtiest runoff from a storm. Today, stormwater from more than 1,500 acres drains into the 28th Street storm drain and flows straight into Santa Monica Bay. The city says over 99% of that water comes from inside Manhattan Beach.

When the system is finished, it will divert up to 0.8 inches of rainfall out of that pipe and run it through several stages:

• An underground pump station beneath the street
• A vortex pretreatment unit that spins trash and sediment into a pit, which city crews clean out about twice a year
• Drywells about 30 feet deep, where the treated water soaks into the ground instead of flowing onto the sand

Once it's done, the only visible signs are supposed to be access lids and the occasional maintenance truck. The city also lists improvements to the 26th Street Parking Facility as one of the project's goals.

The city estimates the project at about $27 million and says grants are the main funding source. It was awarded up to $17.6 million from the county's Measure W Safe, Clean Water Program, $8.5 million from the state's Proposition 1 Storm Water Fund and $4.9 million from Proposition 68. Four firms bid, from $26.8 million to $39.6 million. Zusser Company Inc. won with a bid of $26.83 million, 3% above the city's estimate.

A Summer of Stops and Starts

Drilling was supposed to start in May. The city's own update archive shows a slower summer than that.

The August 5 notice is still the newest construction update on the project page. Its headline still refers to the upper lot closing July 13, but the notice itself says the whole lot closes beginning August 10.

The city's planning numbers give a sense of scale. Construction is expected to take about 18 months, done in phases. Manhattan Avenue between 26th and 27th Streets is expected to stay closed for roughly 6 to 9 months, and the parking facility for 12 to 15. Final close-out is listed for Summer 2027.

What the Hearing Decides

At the October 6 meeting, Awwad said the prime contractor "has not abandoned the project" and remains contractually responsible for finishing on time. He also said the city has cut back its on-site staff, construction management and inspection consultants "to control costs while there are reduced activities on site."

A councilmember asked about timing. Awwad said the city was "looking to find a date in the next couple of weeks" for the hearing. He said the finish date in the contract has not changed, and that a late start means the contractor "has to accelerate to catch up," barring unknown site conditions.

Awwad didn't name the statute. The process he described matches California Public Contract Code section 4107. That law says a prime contractor can't replace a subcontractor listed in its bid without the public agency's consent, and only on specific grounds. If the listed subcontractor objects in writing, the agency has to give at least five working days' written notice before holding a hearing. In practice, the hearing decides whether the city agrees to let Zusser bring in a different subcontractor.

Neighbors at the meeting described uncovered dirt, backfill and rock at the site. They asked what happens if heavy rain arrives, and one warned that drilling could stretch into the wet season. These were residents' statements during public comment. The city has not made a finding on them. The City Manager said the city would give the council another update, with answers to residents' questions, before the end of the year.

The October 20 council agenda, dated October 14, listed no item on the project.

Why Rain Is the Whole Point

The pause hits in the one season this project is designed for. The best evidence is in Heal the Bay's 2025–2026 Beach Report Card, published May 20, 2026. Here is the 28th Street drain next to the two other Manhattan Beach sites that got a wet-weather grade:

In dry weather, 28th Street grades as well as its neighbors. The F only shows up after rain, and it isn't new. In the 2024–2025 report, the same drain got an A+ for summer dry, an A for winter dry and an F for wet weather. That F after rain is the specific problem the drywells under the 26th Street lot are meant to fix.

Until the system is running, the county's standing guidance applies. LA County Public Health recommends avoiding contact with ocean water for three days after significant rain, especially near storm drains, creeks and rivers that are flowing. It says bacteria levels may stay elevated for up to three days, depending on how hard it rained and how much runoff there was. The season has already started. The county lifted its most recent rain advisory for all Los Angeles County beaches on October 15, 2026.

Parking Around Bruce's Beach in the Meantime

With the lot out of service, the city has set up three parking measures for the area bounded by Marine Avenue, Ocean Drive, 33rd Street and Highland Avenue. Marine and Highland themselves are excluded.

1. Street sweeping enforcement is suspended. This has been in effect since July 6, 2026, so more curb space is open on sweeping days. The signs are still posted.
2. Overnight permits work at Grandview School. Holders of the orange Bruce's Beach Resident Overnight Parking permit can park in marked spaces in the Grandview School upper lot from 6 p.m. to 7 a.m. every day.
3. A resident-priority street permit program is running. It lets residents park past the posted one-hour limit between 7 a.m. and 7 p.m. No permit is needed at night or in front of your own driveway. Permits are sold at the City Hall cashier, and enforcement began September 1, 2026.

Construction is allowed Monday through Friday from 7:30 a.m. to 6 p.m., with no work on weekends or holidays. In June, the city also made Ocean Drive between 26th and 27th Streets one-way northbound during the project.

The busiest North End date on the holiday calendar falls while the lot is still closed. The North Manhattan Beach Holiday Stroll runs along Highland Avenue on Sunday, December 6, 2026, from 4 to 8 p.m.

The next real change will come from the hearing. If the city approves a new subcontractor, the drill rigs can return. If it doesn't, Zusser still has to finish with the subcontractor it listed. Either way, the 12-to-15-month closure estimate is the only timeline the city has published. The project hotline is (310) 802-5014, and the city sends updates by email through the project page.

This post is general information about a public project and the rules around it. It isn't legal advice, so please check anything that affects your own property with the right professional.

At Accardo Real Estate Associates, we follow North End projects like this one because they change how a street works day to day, sometimes for a year or more. If you live near Bruce's Beach and want to talk through what the construction schedule means for your block, request a complimentary market consultation and we'll go over it with you.