Progress Payment #9 & #10 in the amount of $1,920,699.58 due to Klassic Engineering & Construction, Inc of Orange, CA for Hawthorne Housing Rehabilitation of City-Owned Properties 2023 (Project #23-09).
 

Staff recommends that the City Council approve this Progress Payment #9 and #10 and all recommend Change Orders to Klassic Engineering & Construction Inc of Orange, CA.

This project includes providing all services, labor, materials, permits, insurance, tools and equipment needed, in accordance with the specifications to successfully and safely complete the interior renovations to all units at six (6) City of Hawthorne-owned buildings located at 11605 Gale Ave, 12720–12726 Grevillea Ave, 11529 Gale Ave, 11537 Gale Ave and 12529 Truro Ave, Hawthorne, CA 90250. The work to be done includes but is not limited to: removal of all carpet and installing vinyl flooring, removal and replacement of all water heaters, wall heaters, heating vents, new windows/window screens, interior and entry doors, garage doors upgrade, restroom remodels, electrical, mechanical and plumbing upgrades, painting, patch work, etc. 

As of August 26th, 2025, Klassic Engineering & Construction (KEC) has completed ~70% of the project's scope of work. KEC has continued remodeling 3 units: 1 unit at 11529 Gale Ave and 2 units at 11537. Klassic engineering has completed the trash enclosure and the laundry rooms 11605 and 11529. Remodeling consists of but not limited to: removing/replacing carpet with vinyl flooring, removing/replacing the kitchen cabinet, sink, range and stove, installing new light fixtures throughout the units, patching and stucco walls, removing/replacing windows and all doors. Work also consists of removing/replacing the bathtub, toilet, faucet, flooring and new tile for the bathtub. The fireplace and chimney were removed at 11529 Gale Ave from unit A, which includes new insulation, stucco, drywall, siding, exterior patching and paint. Repairs at 12529 Truro Ave has commenced and the scope of work includes, but is not limited to: repair of handrails, doorbells, exterior plaster, new exterior paint, drains, iron gate, new entry doors/screens/frames, new windows, side entry door, general drywall, AC systems, etc.
 

Implementing this rehabilitation project on city-owned properties contributes to our economic strategic plan in several ways. For example, by stimulating the local economy.  Housing rehabilitation projects require hiring contractors, suppliers, and laborers, which injects money into the local economy and creates job opportunities. This project will also increase the property value. By having well-maintained properties with functional, aesthetically pleasing, and modern amenities, the properties tend to have higher market value. By investing in these housing rehabilitations, the city can improve the condition of its properties and attract more potential tenants. City-owned properties with well-maintained units and structures contribute to the overall livability and attractiveness of the community. This can help attract businesses, residents, and investors, boosting economic growth and revitalizing neighborhoods. Visually appealing and structurally sound housing can create a positive impression of the city's commitment to infrastructure maintenance and development. 

In addition, by addressing housing unit issues promptly, the City can avoid more extensive structure repairs, which can be significantly costlier. This proactive approach to maintenance helps save public funds and ensures efficient use of resources. By investing in housing rehabilitation on city-owned properties, we contribute to our economic strategic plan by fostering economic activity, increasing property values, saving costs, and attracting investment.  
 

None. Funds for this progress payment in the amount of $1,920,699.58 will be funded through the allocated and approved Home Funds, CPF, and ARPA.

72 hours posted notice pursuant to the Ralph M. Brown Act