TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Steve S. Charelian, Finance Director
Katherine Doherty, City Engineer
Libby Bretthauer, Financial Services Manager
Erika King, Senior Management Analyst
SUBJECT:Title
Presentation of the Proposed 5-Year Capital Improvement Program (CIP) for Fiscal Year 2024-2025 Through Fiscal Year 2028-2029 (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 5-Year Capital Improvement Program (CIP) for Fiscal Year 2024-2025 (FY 2025) through Fiscal Year 2028-2029 (FY 2029) and:
1. Review the proposed 5-Year CIP projects listed in the attachments; and
2. Direct staff to revise the 5-Year CIP based on any changes or modifications requested by City Council; or
3. Approve the 5-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 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.
This report includes an overview of the proposed CIP for FY 2025 through FY 2029. Projects are grouped by funding sources and include prior, current, and future funding appropriations. Lastly, the report highlights which projects have adjusted funding appropriations relative to last year’s approved budget. In all, there are 94 unique projects valued at nearly $177 million. City Council is being asked to review and approve the proposed 5-year CIP as presented, or recommend modifications to be incorporated prior to final approval in June 2024.
FISCAL IMPLICATIONS:
The proposed 5-Year CIP includes 94 individual projects totaling $176,978,801. This includes projects already underway as well as those to be initiated within the next five years. The planned expenditures are for projects approved in prior years, representing approximately $81.2 million, while the remaining $95.8 million represents projects planned for implementation in FY 2025 through FY 2029. Collectively, the proposed 5-Year CIP budget is comprised of:
$24.6 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
$7.2 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
Upon the City Council’s concurrence of the proposed CIP budget funding appropriations for FY 2025, 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 primary functions is to ensure well-maintained facilities and physical infrastructure to meet the current and future needs of the community it serves. This is achieved by planning for and implementing a Capital Improvement Program to address physical assets throughout the City, including but not limited to, streets and other rights-of-way facilities, water and sewer infrastructure, public buildings, parks and open space, and community amenities. 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 met, reviewed the proposed 5-Year CIP Project List, and determined it is consistent with the City’s General Plan. The Planning Commission reviewed a draft version of the 5-Year CIP being presented to council through this updated report.
On April 25, 2024, the Parking and Public Improvement Commission (PPIC) also reviewed the 5-Year CIP Project List. The PPIC reviewed a draft version of the 5-Year CIP being presented to council through this updated report.
Commensurate with the budget adoption cycle, Public Works staff initiates a review of the City’s 5-Year CIP and recommends additions, alterations and adjustments based on changing priorities, funding availability, and updated information. This report includes an extensive summary of the proposed CIP for FY 2025 through FY 2029. Projects are grouped by funding sources and include prior, current, and future funding appropriations. The proposed 5-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 the fiscal year(s).
DISCUSSION:
This report highlights the 94 proposed projects listed in the 5-Year CIP grouped into nine funding categories. In all, they total nearly $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.
A complete list of the proposed 5-Year CIP projects and their recommended funding sources and amounts is provided as an attachment to this report. All project line item adjustments are shown in red in the attachment. An asterisk (*) indicates the item is included in the City Council Work Plan. A CIP Project Summary Sheet Report detailing funding sources and capital costs for all projects is provided as another attachment. A list of proposed line item modifications is provided and summarized for each fund as also attached.
CIP Funds $24,649,310 30 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.
Staff Recommendation
Staff recommends that City Council approve the 30 projects programmed in this section of the 5-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 dedicated to overseeing the design of constructing and renovating City buildings, design of the aquatics center, upgrading the electrical feed to the Public Works Yard, and improvements to City parks and recreational facilities.
Grants and Other Outside Funds $7,190,000 10 Projects
This is 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), Highway Safety Improvement Program (HSIP), and the Manhattan Village Shopping Center.
Staff Recommendation
Staff recommends that City Council approve the 10 projects programmed in this section of the 5-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.
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.
Staff Recommendation
Staff recommends that City Council approve the 15 projects programmed in this section of the 5-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 $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.
Staff Recommendation
Staff recommends that City Council approve the nine projects listed in this section of the 5-Year CIP.
State Pier and Lot Fund $506,120 2 Projects
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.
Staff Recommendation
Staff recommends that City Council approve the two projects listed in this section of the 5-Year CIP.
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, 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 of storm drain fees.
Staff Recommendation
Staff recommends that City Council approve the 10 projects programmed in this section of the 5-Year CIP. The majority of staff effort in the coming year will be to complete storm drain improvements/repairs and incorporate designs of the best management practices (BMPs) such as bio-swales, infiltration galleries, etc. to mitigate localized flooding.
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).
Staff Recommendation
Staff recommends that City Council approve the annual project programmed in this section of the 5-Year CIP as proposed.
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.
Staff Recommendation
Staff recommends that City Council approve the nine projects listed in this section of the 5-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 $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.
Staff Recommendation
Staff recommends that City Council approve the 15 projects programmed in this section of the 5-Year CIP. Staff intends to make major strides in fire flow improvements over the next five years and improve infrastructure that supports the City’s ability to maximize use of local water supply and 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 2024:
1. Annual Street Resurfacing Project - Cycle 2
2. Ceramics Studio Renovations (Kiln) Project
3. Rowell Avenue Sidewalk Connection Project
4. Fire Station No. 2 Reconstruction Project
5. Marine Avenue Park Synthetic Turf Field Replacement Project
6. Manhattan Village Senior Villas ADA Pathway Project
7. Marine Avenue and Cedar Avenue Traffic Signal and Intersection Improvement Project
8. Water Infrastructure Improvements Project - Cycle 1
9. Protected Left Turn at Manhattan Beach Boulevard and Peck Avenue Project
10. Peck Reservoir Replacement Project, including improvements at Begg Field
11. Polliwog Park Lower Playground Replacement Project
12. Pier Railing Replacement Project
13. Citywide Security Cameras Project - Phases 1 and 2
14. Joslyn Center Crosswalk Improvements Project
15. Utility Underground Assessment District 4 in the Hill Section
CONCLUSION:
Individual staff recommendations for each funding category are provided throughout the staff report. Overall, staff seeks approval from City Council of the 94 projects listed in the Proposed 5-Year CIP Plan and appropriation of $32,993,000 for FY 2025.
PUBLIC OUTREACH:
Staff participated in the Annual Community Budget Meeting and various other community meetings while developing the 5-Year CIP project list. The list reflects the priorities of residents and the City Council.
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. Schedule of Capital Improvement Projects by Fund
2. Capital Improvement Projects Summary Sheets
3. Proposed Line Item Modifications by Fund
4. PowerPoint Presentation