TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Erika King, Senior Management Analyst
SUBJECT:Title
Conduct a Public Hearing Regarding the Proposed 5-Year Capital Improvement Program (CIP) and Consideration of a Resolution for Fiscal Year 2024-2025 Through Fiscal Year 2028-2029 (Public Works Director Lee).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 24-0066
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RECOMMENDATION:
Staff recommends that City Council: a) conduct a Public Hearing; b) adopt Resolution No. 24-0066 approving the 5-Year Capital Improvement Program (CIP) for Fiscal Year 2024-2025 (FY 2025) through Fiscal Year 2028-2029 (FY 2029).
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EXECUTIVE SUMMARY:
The City of Manhattan Beach is committed to ensuring physical infrastructure is well-maintained and up to date. A core mission of the City is to ensure that its facilities and infrastructure meet the current and future needs of the community it serves. This is achieved by planning for and implementing a robust Capital Improvement Program, one that addresses physical assets throughout the City, including but not limited to streets and other right-of-way facilities, water and sewer infrastructure, public buildings, parks and open space, and community amenities.
Public Works staff has prepared the attached 5-Year CIP, which updates the annual CIP adopted last year. Overall, the proposed 5-Year CIP focuses on improving City security, continuing implementation of projects that ensure compliance with storm drain quality regulations, upgrading parks and recreational facilities, improving infrastructure that supports maximizing utilization of the City’s groundwater supply, and continuing with citywide transportation improvements.
On April 24, 2024, the Planning Commission reviewed and determined that the draft 5-Year CIP Project List is in conformance with the City’s General Plan. On April 25, 2024, the Parking and Public Improvements Commission (PPIC) also reviewed the Project List and did not recommend any modifications. The draft 5-Year CIP was presented to and reviewed by City Council on May 14 and May 21, 2024.
One modification was requested by City Council on May 21, 2024 to include funding for sidewalk improvements on the south side of 33rd Street west of Sepulveda Boulevard as a result of the Oak Avenue / Manhattan Village Shopping Center Neighborhood Traffic Management Study. These improvements will be constructed in Fiscal Year 2024-2025 as part of the next cycle of Annual Concrete Repairs in the Gas Tax Fund. Therefore, no changes to the Project List were required to incorporate this project.
Although the Sepulveda/Oak Neighborhood Traffic Calming Project was included in the Grants and Other Funds category within the Proposed FY 2025 through 2029 5-Year CIP when it was presented to the City Council in May 2024, the project will stay within the CIP Fund as currently shown since this project is anticipated to be completed in the next year.
Additionally, staff identified a discrepancy in projected grant revenues related to the Intersection Improvements Project (Cycle 11 HSIP) in the amount of $10,000. This amount has been corrected and reduces the total 5-Year CIP funding from $176,978,801 to $176,968,801. No other changes to this proposed plan have been made since the City Council conducted its review during the May 2024 meetings.
FISCAL IMPLICATIONS:
Funding for FY 2025 of the proposed 5-Year CIP Plan projects a total of $32,943,000 and is included in the City’s Operational Budget for appropriation.
The complete 5-Year CIP includes 94 individual projects totaling $176,968,801, which is comprised of $95,715,000 in current and future year funding requests and $81,253,801 in prior year appropriations. The 5-Year CIP Plan includes the following expenditures:
$24.7 Million Building, Park, Facilities, Air Quality (CIP)
$48.3 Million Streets, Sidewalks and Other Rights-of-Way Projects (ROW)
$6.5 Million Parking Lot Projects
$7.1 Million Grant Funded Projects
$26.2 Million Sewer Projects
$27.3 Million Water Infrastructure Projects
$506,120 State Pier and Lot Projects
$36 Million Storm Drain Projects
$375,000 Street Lighting & Landscape Projects
$177.0 Million Total
BACKGROUND:
The 5-Year CIP is the City’s planning tool that guides the selection and implementation of near and mid-term capital improvement projects. It is presented to and approved by City Council annually as part of the budget adoption process. Projects listed in the CIP are aligned with the City’s General Plan elements and include the priorities of City Council, staff, user groups, and the community at large.
On April 24, 2024, the Planning Commission reviewed and determined that the draft 5-Year CIP Project List is in conformance with the City’s General Plan. On April 25, 2024, the PPIC also review the Project List and did not recommend any modifications. The draft 5-Year CIP was presented to and reviewed by City Council on May 14 and May 21, 2024.
One modification was made by City Council on May 21, 2024 to include one additional project. City Council approved traffic calming measures related to the Oak Avenue / Manhattan Village Shopping Center Neighborhood Traffic Management Study recommended by the Community Development Department. The study recommends new sidewalk, curb, and gutters on the south side of 33rd Street west of Sepulveda Boulevard. Staff recommends that funding for this new project come from the funds allocated in the Sepulveda/Oak Neighborhood Traffic Calming Project and the next cycle of the Annual Citywide Concrete Repair Program. These funds are currently included in the proposed 5-Year CIP and therefore no changes to the Project List were required to incorporate this project.
Although the Sepulveda/Oak Neighborhood Traffic Calming Project was included in the Grants and Other Funds category within the Proposed FY 2025 through 2029 5-Year CIP when it was presented to the City Council in May 2024, the project will stay within the CIP Fund as currently shown since this project is anticipated to be completed in the next year.
Additionally, staff identified a discrepancy in projected grant revenues related to the Intersection Improvements Project (Cycle 11 HSIP) in the amount of $10,000. This amount has been corrected and reduces the total 5-Year CIP funding from $176,978,801 to $176,968,801. No other changes to this proposed plan have been made since the City Council conducted its review during the May 2024 meetings.
DISCUSSION:
This report highlights the 94 proposed projects listed in the 5-Year CIP grouped into nine funding categories. In all, they total $177 million programmed for implementation over the next five years. It is worth noting that the majority of the nine categories listed above have very specific project eligibility criteria, negating the ability to move most projects from one category to another unless they also meet that specific eligibility criteria. These categories are:
1. CIP Projects (City Facilities, Buildings and Parks)
With subcategory: AB 2677 Air Quality
2. Grants and Other Outside Funds
3. Streets, Sidewalks and Right-of-Way (ROW) Projects
With subcategories: Gas Tax, Proposition C, Measure R, Measure M
4. Parking Facilities Projects
5. State Pier and Lot Projects
6. Stormwater Projects
With subcategory: Measure W
7. Street Lighting & Landscape Projects
8. Water Projects
9. Wastewater Projects
CIP Funds $24,699,310 31 Projects
This category of projects addresses all of the projects that do not typically qualify for funding from the seven other groups listed herein. Projects include building and other facility improvements, park facility upgrades, landscaping enhancements, signage, City-owned refuse enclosures and other right-of-way and public property improvements.
$225,000 AB 2766 Air Quality Fund: The fund is generated from revenues collected from Assembly Bill 2766 Motor Vehicle Subvention Fund Program to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies.
$24,424,310 CIP Fund: This fund is generated from a combination of dedicated General Fund revenues, including transient occupancy tax (TOT), parking citations, and parking meter revenues.
Grants and Other Outside Funds $7,130,000 9 Projects
This in a new fund for projects that are either fully or partially funded by state, federal, or local grant funding, or funding from another outside funding source such as a private or non-profit organization. Funding sources include Measure A, Measure M, Community Development Block Grants (CDBG), Community Project Funding (CPF), and Highway Safety Improvement Program (HSIP).
Streets, Sidewalks and ROW Funds $48,291,041 15 Projects
This category of projects primarily addresses the rehabilitation, improvement and/or enhancement needs of streets, sidewalks, curbs, and gutters. Project types include street resurfacing, slurry seal applications, replacement of damaged curbs, gutters and sidewalks, intersection and turn movement improvements, capacity enhancements such as lane widening, pedestrian safety projects, and Americans with Disabilities (ADA) access improvements. There are four Local Return funding sources that support the projects listed in the Streets, Sidewalks and ROW category, and they are commonly combined in any given fiscal year to implement one or two larger roadway projects. In addition, there are seven individual grant-funded projects listed in these categories. The Local Return funding sources and the corresponding programmed revenues include:
$11,961,591 Gas Tax Fund: This fund can be used for a broad array of street- and sidewalk-related projects. Both local and arterial roadway projects are eligible. This Fund also includes the voter-affirmed Senate Bill 1 tax on gasoline.
$23,086,993 Measure M Fund, inclusive of grants from Metro: This fund can be used for a broad array of street-and sidewalk-related projects throughout the City, as well as storm drain pollution control projects. Both local and arterial roadway projects are eligible.
$5,840,887 Measure R Fund, inclusive of grants from the U.S. Department of Transportation Section 5310 and Community Project Funding (CPF): This fund can be used for a broad array of street-and sidewalk-related projects throughout the City. Both local and arterial roadway projects are eligible.
$7,401,570 Proposition C Fund, inclusive of grants from South Bay Highway Program (SBHP) and Metro: This fund is limited to arterial and collector transportation corridors and can be used for street rehabilitation, maintenance and access improvements on these corridors.
Parking Fund $6,476,448 9 Projects
This category of projects addresses the maintenance, repair, and rehabilitation of City-owned and managed public parking lots and their surrounding landscaped areas, including Metlox and three other downtown parking structures, the North Manhattan Beach parking structure and streetscape, and several beach parking lots owned by Los Angeles County. Funding for projects in this category is generated by meter fees collected at parking lots and curbside parking meters.
State Pier and Lot Fund $506,120 2 Project
This category of projects addresses the maintenance, repair and rehabilitation of State-owned upper and lower Pier parking lots as well as the Manhattan Beach Pier itself. Eligible projects include replacement and/or repair of the railing system, lighting, restrooms and deck, and installation of public safety devices. Funding for projects in this category come from the meter fees collected by visitors and patrons utilizing the upper and lower Pier parking lots. Notably, construction to replace the entire length of the Pier’s railing system is underway. The existing rails were installed in the 1980s and are now beyond repair due to extensive corrosion from the salt air.
Storm Drain Funds $36,005,005 10 Projects
This category of projects addresses the infrastructure needs for both storm drain conveyance and national pollution discharge elimination system (NPDES) compliance requirements. Projects include storm drain repairs and upgrades, capacity enhancements, trash capture devices, and Enhanced Watershed Management Plan (EWMP) infrastructure needs (e.g., infiltration projects), Storm Drain Capital Best Management Practices (BMPs), and a new CCTV evaluation of the storm drain system.
$28,889,832 Measure W Fund: This fund can be used to increase local water supply, improve water quality, and protect public health. The Measure W Fund includes local returns and competitive grant funding from Measure W, and State Prop 1, Prop 68, Integrated Regional Water Management (IRWM) grants.
$7,115,172 Storm Drain Fund: This fund is limited to storm drain infrastructure and is supported by a combination of storm drain assessment fees and transfers from the General Fund.
Street Lighting and Landscape Fund $375,000 1 Project
This category addresses the repair and replacement of the City’s streetlights. In 2019, the City purchased 825 streetlights from Southern California Edison (SCE).
Sewer Fund $26,224,355 9 Projects
This category of projects addresses the infrastructure needs, operation, and maintenance of the City’s sewer system, and includes sewer main replacements, lift station refurbishments, and all required studies and master plans. The projects in this category are fully funded through the Sewer Enterprise Fund using revenues collected through sewer fees.
The majority of the funding appropriated in this category is for addressing aging lift stations. Lift stations are the backbone of an otherwise gravity flow system, and their proper care is paramount to the safe and effective operation of the entire wastewater system.
Water Fund $27,261,523 15 Projects
This category of projects addresses the infrastructure needs, operations and maintenance of the City’s water system and includes water main and valve replacements, pump station refurbishments, reservoir maintenance and/or replacement, well pumping and treatment activities, meter upgrades and automation, and all studies and master plans. The projects in this category are fully funded through the Water Enterprise Fund using revenues collected through fixed and variable water rates.
CONCLUSION:
Staff recommends that City Council conduct a Public Hearing and adopt Resolution No. 24-0066, approving the 5-Year CIP Plan for FY 2025 through FY 2029. Appropriation of funds for projects in FY 2025 will occur during the City Council’s adoption of the City’s FY 2025 Operating Budget.
PUBLIC OUTREACH:
Staff participated in the Annual Community Budget Meeting, various other community meetings, and presented the 5-Year CIP Project List at public Planning Commission, PPIC, and City Council meetings. The Plan reflects the priorities outlined in the City Council Work Plan.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that adoption of the 5-Year CIP is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 24-0066
2. Schedule of Capital Improvement Projects by Fund
3. Final 5-Year CIP FY 2025 Through FY 2029 Including Project Summary Sheets
4. PowerPoint Presentation