TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Joe DeFrancesco, Interim Public Works Director
Libby Bretthauer, Finance Director
Gilbert Gamboa, City Engineer
Marzena Laskowska, Principal Civil Engineer
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Regarding the Proposed Five-Year Capital Improvement Program (CIP) for Fiscal Year 2026-2027 Through Fiscal Year 2030-2031 (Included in Proposed Budget) (Interim Public Works Director DeFrancesco).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 26-0048
Body
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RECOMMENDATION:
Staff recommends that the City Council:
1. Conduct a Public Hearing; and
2. Adopt Resolution No. 26-0048 approving the Five-Year Capital Improvement Program (CIP) for Fiscal Year 2026-2027 (FY 2027) through Fiscal Year 2030-2031 (FY 2031).
EXECUTIVE SUMMARY:
The City of Manhattan Beach is committed to maintaining its capital infrastructure in a well-kept and up-to-date condition. 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 accomplished by planning for and implementing a proactive Capital Improvement Program that addresses physical assets throughout the City, including, but not limited to, streets and other right-of-way (ROW) facilities, water, sewer, and storm drain infrastructure, public buildings, parks and open spaces, and community amenities.
Public Works staff has prepared the attached Five-Year CIP, which updates the annual CIP adopted last year. Overall, the proposed CIP focuses on upgrading parks and recreational facilities, continuing implementation of projects that ensure compliance with stormwater quality regulations, improving aging infrastructure for water and sewer systems with a focus on pump station facilities, continuing with citywide transportation and accessibility improvements, maximizing utilization of the City’s groundwater supply, and improving City security.
This report provides a comprehensive overview of the proposed CIP for Fiscal Years 2027 through 2031. Projects are categorized by funding source and reflect prior fiscal year appropriations, current FY 2027 appropriation request, and FY 2028 to FY 2031 funding projections. The proposed CIP includes 107 distinct projects, totaling an estimated $177.3 million in planned investments.
The Planning Commission evaluated the proposed Five-Year CIP Project List on April 22, 2026, and determined its consistency with the City’s General Plan. Similarly, the Parking and Public Improvements Commission (PPIC) also reviewed the draft CIP on April 23, 2026, and provided comments. Additionally, a presentation to the Parks and Recreation Commission on parks-related Five-Year CIP projects was provided on April 27, 2026, and comments were received.
A comprehensive overview of the proposed Five-Year CIP was presented to the City Council during public meetings held on May 5 and May 12, 2026. During the May 12, 2026, meeting, the Council directed staff to make the following revisions to the Five-Year CIP:
1. Modifications to the CIP Fund:
a. Senior and Scout Community Center Renovation Project: FY 2027 was increased from zero to $4.7 million.
b. Project at 400 Manhattan Beach Boulevard: FY 2027 was reduced from $1 million to zero.
c. Sand Dune Park Improvement Project: FY 2027 was reduced from $1.5 million to $500,000.
d. City Facility Renovations Project: Prior appropriations were reduced from $2.83 million to $825,000.
e. Begg Pool Facility Upgrades Project: Prior appropriations were reduced from $702,357 to zero.
2. Modifications to the State Pier and Lot Fund:
a. Added $80,000 in FY 2027 and FY 2028 in core expenditures to support the maintenance of the Roundhouse Aquarium.
b. Pier Improvements Project
i. FY 2029 was reduced from $350,000 to zero;
ii. FY 2030 was reduced from $325,000 to $25,000; and
iii. FY 2031 was increased from $350,000 to $400,000.
c. Upper Pier Parking Lots Railings Replacement Project
i. FY 2027 was increased from zero to $200,000;
ii. FY 2028 was increased from $200,000 to $275,000;
iii. FY 2029 was reduced from $400,000 to $375,000; and
iv. FY 2030 was reduced from $400,000 to $350,000.
FISCAL IMPLICATIONS:
The proposed Five-Year CIP includes total projected funding of $21,895,694 for FY 2027, which will be incorporated into the City’s Operating Budget for appropriation.
The complete Five-Year CIP includes 107 individual projects with a total value of $177,331,730. This total encompasses both ongoing projects and new initiatives planned for implementation over the next five years. Of the total amount, approximately $91.7 million reflects previously approved project funding, while the remaining $85.6 million represents planned expenditures for projects scheduled between FY 2027 and FY 2031.
The proposed Five-Year CIP budget is comprised of the following components:
$32.9 Million Building, Park, Facilities, Air Quality (CIP)
$45.9 Million Streets, Sidewalks, and Other Rights-of-Way Projects (ROW)
$10.2 Million Parking Lot Projects
$1.7 Million State Pier and Lot Projects
$575,000 Street Lighting & Landscape Projects
$19.7 Million Grant Funded Projects
$13.2 Million Measure W
$5.7 Million Storm Drain Infrastructure Projects
$25.1 Million Sewer Infrastructure Projects
$22.2 Million Water Infrastructure Projects
$177.3 Million Total Five-Year CIP Budget
BACKGROUND:
One of the City’s core responsibilities is to maintain high-quality facilities and physical infrastructure that meet the current and future needs of the community. This is accomplished through the planning and implementation of a Capital Improvement Program that addresses essential assets, including streets and other ROW facilities, water, sewer, and storm drain systems, public buildings, parks and open spaces, and other community amenities.
The Five-Year CIP serves as a strategic planning tool that guides the selection and implementation of near- and mid-term capital projects. It is reviewed and approved by the City Council each year as part of the annual budget process. Projects identified in the CIP are consistent with the City’s General Plan and reflect the priorities of City Council, City staff, user groups, and the broader community.
As part of this year’s review process, the Planning Commission evaluated the proposed Five-Year CIP Project List on April 22, 2026, and determined its consistency with the City’s General Plan. Similarly, the Parking and Public Improvements Commission (PPIC) reviewed the draft CIP on April 23, 2026, and provided comments. Additionally, a presentation to the Parks and Recreation Commission on April 27, 2026, covered parks-related Five-Year CIP projects, and comments were received.
Public Works staff initiates an annual review of the City’s CIP to identify necessary additions, modifications, and funding adjustments based on evolving priorities and available resources. This report provides a comprehensive overview of the proposed CIP for FY 2027 through FY 2031. Projects are grouped by funding source and reflect prior fiscal year appropriations, current FY 2027 appropriation request, and FY 2028 to FY 2031 funding projections. Pending any further revisions, the proposed CIP will be incorporated into the City’s adopted budget for the upcoming fiscal year.
DISCUSSION:
This report highlights the 107 proposed projects included in the Five-Year CIP, grouped into ten distinct funding categories. Collectively, these projects represent approximately $177.3 million in planned investments over the next five years. It is important to note that most of the funding categories have strict eligibility criteria, which generally prevent projects from being reallocated across categories unless they meet the specific requirements of the new category.
A comprehensive list of the proposed Five-Year CIP projects, including recommended funding sources and amounts, is provided in the attachment titled “Schedule of Capital Improvement Projects by Fund.” A CIP Project Summary Sheet Report, detailing capital costs, funding sources, and descriptions with justifications for all projects, is also included as an Attachment.
The following sections summarize the various categories of CIP funding and include staff recommendations:
CIP Funds $32,946,239 37 Projects
The Capital Improvement Fund is used to account for capital projects that typically are not eligible for funding from other categories listed herein. Additionally, the fund is used to supplement other categories that may not have significant funding available to cover the full scope of a project. Funding sources are derived from various General Fund revenue sources, including a portion of Transient Occupancy Taxes (TOT) and transfers. Projects include building and other facility improvements, park facility upgrades, studies and master plans, streetscape and landscaping enhancements, signage, and other right-of-way and public property improvements. Also included in the CIP Fund are allocations for the Manhattan Beach Unified School District (MBUSD). MBUSD requests an allocation of funds to continue implementing slurry and asphalt work at school facilities. This request is shown on the CIP as the School District Project with a proposed FY 2027 allocation of $250,000. Additionally, the Biennial Slurry Seal Program is listed in the CIP for a proposed FY2027 $175,000 allocation for MBUSD School and facilities within the slurry seal area being completed.
Funding sources include:
$262,139 AB 2766 Air Quality Fund: The fund is generated from revenues collected from the Assembly Bill 2766 Motor Vehicle Subvention Fund Program to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies.
$32,684,100 CIP Fund: General Fund revenues, including a dedicated portion of transient occupancy tax (TOT) revenues and transfers, support this fund.
Streets, Sidewalks, and ROW Funds $45,935,508 27 Projects
This category of projects focuses on the rehabilitation, improvement, and enhancement of the City’s streets, sidewalks, curbs, and gutters. Project types include street resurfacing, slurry seal applications, replacement of damaged sidewalks, curbs, and gutters, intersection and turn movement upgrades, lane widening for capacity improvements, pedestrian safety enhancements, and Americans with Disabilities Act (ADA) access upgrades. Funding sources are from Gas Tax, Prop C, Measure R Local Return, Measure M Local Return, and Other (Highway Safety Improvement Program HSIP, South Bay Highway Projects SBHP, Federal Transit Authority 5310, etc.).
The Local Return funding sources and their corresponding programmed revenues are as follows:
$14,585,648 Gas Tax Fund Local Return: 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.
$17,606,871 Measure M Fund Local Return: 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.
$5,567,827 Measure R Fund Local Return: This fund is 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.
$8,175,162 Proposition C Fund Local Return: 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 $10,177,176 10 Projects
This category includes projects focused on the maintenance, repair, and rehabilitation of public parking facilities owned or managed by the City. These facilities include the Metlox structure, four additional downtown parking lots, the North Manhattan Beach parking structure and streetscape, and Los Angeles County-owned beach parking lots. The funding source is revenue generated from meter fees collected at both public lots and curbside meters.
State Pier and Lot Fund $1,746,450 3 Projects
This category of projects addresses the maintenance, repair, and rehabilitation of the State-owned Pier and the upper and lower Pier parking lots. Eligible projects include replacement and/or repair of elements such as the railing system, comfort station facility, structural components, and installation of public safety devices. The funding source is revenue generated from meter fees collected at the upper and lower Pier parking lots.
Street Lighting and Landscape Fund $575,000 2 Projects
The City provides for the operations and maintenance, including repairs and replacements of street lighting and the Downtown streetscape via the Street Lighting and Landscaping Assessment District (District). The District, which was formed pursuant to the Landscaping and Lighting Act of 1972, is comprised of separate street lighting districts for the majority of the City, and the lighting and landscaping services provided for Downtown.
Grants and Other Outside Funds $19,717,066 9 Projects
This fund is designated for projects that receive either complete or partial financial support from state, federal, or local grants or from other external funding sources, including private or nonprofit organizations. Funding sources include Measure A, Measure M, Community Development Block Grants (CDBG), Community Project Funding (CPF), the California Natural Resources Agency (CRNA), and the Highway Safety Improvement Program (HSIP). It does not include grant-funded projects with expenditures before Fiscal Year 2024-2025, as those projects remain accounted for in their original funds. Grant-related funds shown are those with an executed funding agreement with the associated grant agency.
Measure W Funds $13,248,402 2 Projects
This category of projects focuses on enhancing water resilience and compliance by addressing challenges such as polluted waterways, aging, and insufficient infrastructure. Key initiatives include storm drain improvements, installation of trash capture devices, and infrastructure projects identified in the Enhanced Watershed Management Plan (EWMP), such as infiltration systems that improve water quality and support local groundwater recharge.
Measure W provides two primary funding streams to support these efforts: the Municipal Program, which allows cities to construct projects or implement strategies to capture and treat stormwater locally, and the Regional Program, which supports large-scale regional infrastructure initiatives that advance watershed health.
Storm Drain Funds $5,729,642 10 Projects
This category of projects addresses the infrastructure needs for both stormwater conveyance and National Pollution Discharge Elimination System (NPDES) compliance requirements. Projects include storm drain repairs and upgrades, capacity enhancements, trash capture devices, Enhanced Watershed Management Plan (EWMP) infrastructure needs (e.g., infiltration projects), and Storm Drain Capital Best Management Practices (BMPs).
Sewer Fund $25,069,062 8 Projects
This category of projects addresses the infrastructure needs, operation, and maintenance of the City’s sanitary sewer system, and includes sewer mainline replacements, lift station upgrades, telemetry upgrades, and required studies and master plans. The Sewer Enterprise Fund source is revenue collected through sewer fees, and assets as a percentage of water usage.
Water Fund $22,187,185 10 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 Water Enterprise Fund source is revenue collected through water rates.
COMPLETED PROJECTS OVER THE PAST YEAR:
Public Works anticipates completing the following projects in the current fiscal year ending in June 2026:
1. Interim Parking Lot 3
2. Annual Street Resurfacing Project - Cycle 2 at Marine Avenue and 14th Streets
3. Manhattan Beach Boulevard Eastbound Left-Turn Lane Extension at Aviation Boulevard
4. Citywide Security Cameras Project - Phases 1 and 2 (City PW Yard, City Hall & Police/Fire)
5. Beach Cities Green Streets Stormwater Infiltration Project
6. Dominguez Channel Total Maximum Daily Load (TMDL) Trash Treatment Project (Trash Capture Device on Aviation Blvd at Marine Ave)
PROJECT IN CONSTRUCTION IN FY 2027:
Public Works has started or expects to start construction on the following projects in FY 2027:
Parks/Facilities/Parking Lots
1. Mariposa Fitness Station Project
2. Manhattan Village Field Lighting Replacement Project
3. Marine Ave Park Soccer Field Fence Replacement Project
4. Demolition of the Pay N Play Racquetball Building
5. Police Department Flooring Replacement Project
6. Joslyn Community Center Exterior ADA Improvement Project
7. City Hall Elevator Replacement Project
8. Metlox Escalators Replacement Project
9. Annual Parking Payment Facilities Improvements Program
Streets
1. Manhattan Beach Advanced Traffic Signal (MBATS) System Project
2. Community Development Block Grant (CDBG) ADA Curb Ramp Project - Cycle 4
3. Annual Street Resurfacing Project - Cycle 3 Various Residential Streets in Area 4
4. Biennial Slurry Seal Project - Cycle 3 Various Residential Streets in Area 6
5. Citywide Concrete Repairs Project - Cycle 3 Various Locations
6. Local Highway Safety Improvement Program (HSIP) Cycle 11 Crosswalk Improvements Project
7. Aviation Boulevard and 33rd Street Sidewalk Gap Closure Project
Water/Sewer/Storm Drain
1. 28th Street Stormwater Infiltration Project
2. Voorhees Avenue Sewer Lift Station Replacement Project
3. Pacific Avenue Sewer Lift Station Conversion to Gravity Line Project
4. Santa Monica Bay Total Maximum Daily Load (TMDL) Trash Treatment Project
5. Golf Course Storm Drain Lift Station Electrical Upgrades Project
6. 2nd Street Water Booster Pump Station Replacement Project
7. Well 15 Rehabilitation and Site Improvements Project
CONCLUSION:
Staff recommends that City Council conduct a Public Hearing and adopt Resolution No. 26-0048, approving the Five-Year CIP Plan for FY 2027 through FY 2031. Appropriation of $21,895,694 for Fiscal Year 2027 will occur during the City Council’s adoption of the City’s FY 2027 Operating Budget.
PUBLIC OUTREACH:
The public has been informed of this agenda item as part of the City’s standard meeting notice practices via public bulletin boards, website calendar, and social media. The list reflects the priorities of residents and the City Council. Additionally, it reflects the October 2025 Community Opinion Survey, where the community's top 3 high or medium spending priority items were fixing potholes and street repairs at 92%, improving park maintenance at 87%, and upgrading sewer systems at 79%.
As part of this year’s review process, the Planning Commission evaluated the proposed Five-Year CIP Project List on April 22, 2026, and determined its consistency with the City’s General Plan. Similarly, the Parking and Public Improvements Commission (PPIC) reviewed the draft CIP on April 23, 2026, and provided comments. Additionally, a presentation to the Parks and Recreation Commission on parks-related Five-Year CIP projects was provided on April 27, 2026, and comments were received. The commissions reviewed a preliminary version of the Five-Year CIP, which has since been updated and is now being presented to the City Council for consideration.
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 Five-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. 26-0048
2. Schedule of Capital Improvement Projects by Fund
3. Five-Year CIP FY 2027 through FY 2031 Capital Improvement Projects Summary Sheets
4. PowerPoint Presentation