TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Erick Lee, Public Works Director
Libby Bretthauer, Acting Finance Director
Gilbert Gamboa, Acting City Engineer
Erika King, Senior Management Analyst
SUBJECT:Title
Presentation of the Proposed Five-Year Capital Improvement Program (CIP) for Fiscal Year 2025-2026 through Fiscal Year 2029-2030 (Public Works Director Lee).
(Estimated Time: 30 Mins.)
A) DISCUSS AND PROVIDE DIRECTION
B) APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council receive a presentation on the proposed Five-Year Capital Improvement Program (CIP) for Fiscal Year 2025-2026 (FY 2026) through Fiscal Year 2029-2030 (FY 2030) and:
1. Review the proposed Five-Year CIP projects listed in the attachments; and
2. Direct staff to revise the Five-Year CIP based on any changes or modifications requested by City Council; or
3. Approve the Five-Year CIP projects list as presented.
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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 Five-Year CIP, which updates the annual CIP adopted last year. Overall, the proposed CIP focuses on improving City security, continuing implementation of projects that ensure compliance with storm drain quality regulations, upgrades to parks and recreational facilities, improving infrastructure that supports maximizing utilization of the City’s groundwater supply, and continuing with citywide transportation improvements.
The proposed Five-Year CIP is ultimately presented to and reviewed by City Council and, pending any changes, becomes part of the adopted plan and operating budget for FY 2026.
This report provides a comprehensive overview of the proposed CIP for Fiscal Years 2026 through 2030. Projects are categorized by funding source and reflect prior, current, and projected appropriations. The report also identifies adjustments in funding levels compared to the previous year’s adopted budget. The proposed CIP includes 109 distinct projects, totaling an estimated $188.7 million in planned investments. Staff is requesting that City Council review and approve the proposed Five-Year CIP as presented, or suggest modifications to be incorporated before final adoption in June 2025.
FISCAL IMPLICATIONS:
The proposed Five-Year CIP includes 109 individual projects with a total value of $188,692,064. This total encompasses both ongoing projects and new initiatives planned for implementation over the next five years. Of the total amount, approximately $93.3 million reflects previously approved project funding, while the remaining $95.4 million represents planned expenditures for projects scheduled between FY 2026 and FY 2030.
The proposed Five-Year CIP budget is comprised of the following components:
$27.7 Million Building, Park, Facilities, Air Quality (CIP)
$51.5 Million Streets, Sidewalks, and Other Rights-of-Way Projects (ROW)
$8.7 Million Parking Lot Projects
$6.9 Million Grant Funded Projects
$30 Million Sewer Infrastructure Projects
$24.1 Million Water Infrastructure Projects
$325,000 State Pier and Lot Projects
$7.4 Million Storm Drain Infrastructure Projects
$31.7 Million Measure W
$375,000 Street Lighting & Landscape Projects
Upon the City Council’s concurrence of the proposed CIP budget funding appropriations for FY 2026, the funding appropriation can occur as part of City Council’s adoption of the City’s Operational Budget in June.
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, which addresses essential assets such as streets and rights-of-way, water and sewer 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 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 23, 2025, and determined its consistency with the City’s General Plan. Similarly, the Parking and Public Improvements Commission (PPIC) reviewed the draft CIP on April 24, 2025, and provided comments. Both commissions reviewed a preliminary version of the Five-Year CIP, which has since been updated and is now being presented to City Council for consideration.
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 Fiscal Years 2026 through 2030. Projects are grouped by funding source and reflect prior, current, and anticipated appropriations. 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 109 proposed projects included in the Five-Year Capital Improvement Program (CIP), grouped into ten distinct funding categories. Collectively, these projects represent approximately $188.7 million in planned investments over the next five years. It is important to note that most of the ten 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 Attachment titled “Schedule of Capital Improvement Projects by Fund.” All project line-item adjustments are shown in red for reference. Items marked with an asterisk (*) are included in the City Council Work Plan. A CIP Project Summary Sheet Report, detailing capital costs and funding sources for all projects, is also included as an Attachment. Another Attachment to this report provides a summary of proposed line-item modifications organized by fund.
The following sections summarize the various categories of CIP funding and includes staff recommendations:
CIP Funds $27,685,443 38 Projects
This category of projects addresses all of the projects that do not typically qualify for funding from the nine other groups listed herein. Projects include building and other facility improvements, park facility upgrades, signage, other right-of-way and public property improvements, and the acquisition of 400 Manhattan Beach Boulevard.
$191,214 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.
$27,494,229 CIP Fund: This fund is generated from a combination of dedicated General Fund revenues, including transient occupancy tax (TOT),.
Staff Recommendation
Staff recommends that City Council approve the 38 projects programmed in this section of the Five-Year CIP as proposed. Many of the projects identified have already started, and the remaining projects will be prioritized according to grant funding deadlines, as well as City Council and departmental priorities. Notably, the majority of staff effort in the coming year will be dedicated to overseeing the design and renovations of City building facilities, improvements to City parks and recreational facilities, Voter Center ADA improvements, and conceptual development of the property at 400 Manhattan Beach Boulevard.
Streets, Sidewalks, and ROW Funds $51,489,823 28 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.
Projects in the Streets, Sidewalks, and Rights-of-Way category are supported by four Local Return funding sources, which are typically combined within a given fiscal year to fund one or two larger roadway projects. In addition to the locally funded efforts, there are 12 individual grant-funded projects included in this category.
The Local Return funding sources and their corresponding programmed revenues are as follows:
$11,154,432 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.
$22,747,709 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.
$4,929,250 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.
$12,658,432 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.
Staff Recommendation
Staff recommends that City Council approve the 28 projects programmed in this section of the Five-Year CIP as proposed. The annual and biennial projects listed (i.e., concrete repairs, resurfacing, slurry) will be implemented based on roadway priorities established in the triennial Pavement Management Program report and in conformance with the City’s biennial slurry seal cycle.
Parking Fund $8,730,000 7 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, three additional downtown parking structures, the North Manhattan Beach parking structure and streetscape, and several Los Angeles County-owned beach parking lots. Project funding is primarily supported by revenue generated from parking meter fees collected at both public lots and curbside meters.
Staff Recommendation
Staff recommends that City Council approve the seven projects listed in this section of the Five-Year CIP as proposed.
State Pier and Lot Fund $325,000 1 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 comes from the meter fees collected by visitors and patrons utilizing the upper and lower Pier parking lots.
Staff Recommendation
Staff recommends that City Council approve the project listed in this section of the Five-Year CIP as proposed.
Grants and Other Outside Funds $6,870,500 10 Projects
This is a 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). It does not include grant funded projects that had expenditures prior to Fiscal Year 2024-2025, as those projects remain accounted for in their original funds.
Staff Recommendation
Staff recommends that City Council approve the 10 projects programmed in this section of the Five-Year CIP as proposed. Some of the projects identified have already started, and the remaining projects will be prioritized according to grant funding deadlines, as well as City Council and departmental priorities.
Storm Drain Funds $7,371,611 11 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, Enhanced Watershed Management Plan (EWMP) infrastructure needs (e.g., infiltration projects), and Storm Drain Capital Best Management Practices (BMPs).
Staff Recommendation
Staff recommends that City Council approve the 11 projects programmed in this section of the Five-Year CIP. The majority of staff effort in the coming year will be to complete the storm drain improvements/repairs and incorporate designs of the best management practices (BMPs) to mitigate localized flooding.
Measure W Funds $31,739,101 5 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.
Staff Recommendation
Staff recommends that City Council approve the five projects included in this section of the Five-Year Capital Improvement Program (CIP). In the upcoming year, staff efforts will primarily focus on completing storm drain improvements and advancing stormwater infiltration projects.
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). Transitioning from utility-owned poles to customer-owned poles was projected to save the City nearly $90,000 annually. A portion of this annual savings has been appropriated to future pole maintenance and pole replacement needs in the Street Lighting and Landscape Fund.
Staff Recommendation
Staff recommends that City Council approve the annual project programmed in this section of the Five-Year CIP as proposed.
Sewer Fund $29,976,856 9 Projects
This category of projects addresses the infrastructure needs, operation, and maintenance of the City’s sewer system, and includes sewer mainline replacements, lift station refurbishments, and 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.
Staff Recommendation
Staff recommends that City Council approve the nine projects listed in this section of the Five-Year CIP. Staff prioritizes sewer infrastructure repairs and replacements based on the age and condition of the pipes, useful life of operational equipment, and problematic areas of the system as outlined in the Sewer Master Plan.
Water Fund $24,128,730 13 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.
Staff Recommendation
Staff recommends that City Council approve the 13 projects programmed in this section of the Five-Year CIP. Staff intends to continue the focus on water infrastructure improvements over the next five years, and improve infrastructure that supports the City’s ability to maximize the use of local water supply to reduce dependency on imported water.
COMPLETED PROJECTS OVER THE PAST YEAR:
Public Works anticipates completing the following projects in the current fiscal year ending in June 2025:
1. Annual Street Resurfacing Project - Cycle 2 Marine Avenue and 14th Street
2. CDBG Cycle 3 ADA Ramps
3. Ceramics Studio Renovations (Kiln) Project
4. Citywide Concrete Repairs Project - Cycle 2
5. Citywide Security Cameras Project - Phase 1 and 2
6. Interim Parking Lot 3
7. Joslyn Community Center Crosswalk Improvements Project
8. Manhattan Village Senior Villas ADA Pathway Project
9. Peck Reservoir Replacement Project - Groundwater Treatment Plant and State Division of Drinking Water Permit Amendment
10. Polliwog Park NFC Fitness Station
11. Pier Railing Replacement Project
12. Triennial Pavement Management System
13. Water Infrastructure Improvements Project - Cycle 2
14. Wayfinding Program- Phase I Downtown Business District
CONCLUSION:
Individual staff recommendations for each funding category are outlined throughout this report. Overall, staff is seeking City Council approval of the 109 projects included in the Proposed Five-Year CIP Plan, along with the appropriation of $28,475,337 for Fiscal Year 2026.
PUBLIC OUTREACH:
Staff participated in the Annual Community Budget Meeting and various other community meetings while developing the Five-Year CIP project list. The list reflects the priorities of residents and City Council.
As part of this year’s review process, the Planning Commission evaluated the proposed Five-Year CIP Project List on April 23, 2025, and determined its consistency with the City’s General Plan. Similarly, the Parking and Public Improvements Commission (PPIC) reviewed the draft CIP on April 24, 2025, and provided comments. Both commissions reviewed a preliminary version of the Five-Year CIP, which has since been updated and is now being presented to 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. Schedule of Capital Improvement Projects by Fund
2. Capital Improvement Projects Summary Sheets
3. Proposed Line Item Modifications by Fund
4. PowerPoint Presentation