TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Regarding the Proposed 5-Year Capital Improvement Program for Fiscal Year 2022-2023 Through Fiscal Year 2026-2027 (Public Works Director Lee).
(Estimated Time: 15 Min.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 22-0080
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_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that City Council:
a) Conduct a Public Hearing and
b) Adopt Resolution No. 22-0080 approving the 5-Year Capital Improvement Program (CIP) for Fiscal Year (FY) 2022-2023 through FY 2026-2027.
BodyBody
EXECUTIVE SUMMARY:
The City of Manhattan Beach is committed to ensuring a well-maintained and up-to-date physical infrastructure. 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, stormwater, and sewer infrastructure, public buildings, parks and open space, and community amenities.
The report includes a comprehensive summary of 73 capital projects and studies included for final adoption in the upcoming 5-Year CIP, for a total FY 2023-2027 proposed budget of $149,763,561. The proposed 5-Year CIP focuses on assessments and investments in the City’s park system, taking major strides in ensuring compliance with stormwater quality regulations, catching up on the backlog of water and sewer infrastructure projects, and continuing with City-wide transportation improvements.
On April 27, 2022, 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 28, 2022, 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 10, 2022. No modifications or changes were made at that time. On May 17, 2022, the City Council approved a modification increasing the amount for the Senior and Scout Community Center Renovations by $1,900,000, which is now reflected in the 5-Year CIP Project List. Additionally, on May 24, 2022 the City Council removed the Joslyn Center Façade Replacement Project from the List. Prior year appropriations for the Annual Street Resurfacing Program and Sepulveda Bridge Widening Project have been adjusted in order to avoid potentially lapsing grant funding.
FISCAL IMPLICATIONS:
Funding for FY 2022-2023 of the proposed 5-Year CIP Plan projects a total of $19,143,500 and is included in the City’s Operational Budget for appropriation.
The complete 5-Year CIP includes 73 individual projects totaling $149,763,561, which is comprised of $91,079,109 in current and future years funding requests and $58,684,452 in prior year appropriations. The 5-Year CIP Plan includes the following expenditures:
$219,989 Street Lighting & Landscape Projects
$37.9 Million Streets, Sidewalks and Other Rights-of-Way Projects (ROW)
$22.6 Million Building, Park, Pedestrian and Signal Preemption Projects (CIP)
$36.8 Million Water Infrastructure Projects
$25.7 Million Stormwater Projects
$22.5 Million Wastewater Projects
$2.2 Million Parking Lot Projects
$1.8 Million State Pier and Lot Projects
$149.7 Million Total
Appropriation of funds for projects in FY 2022-2023 will occur during the Council’s adoption of the City’s FY 2022-2023 Operating Budget.
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 27, 2022, 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 28, 2022, the Parking and Public Improvements Commission (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 10, 2022. No modifications or changes were made at that time. On May 17, 2022, the City Council approved a modification increasing the amount for the Senior and Scout Community Center Renovations by $1,900,000, which is now reflected in the 5-Year CIP Project List. Additionally, on May 24, 2022 the City Council removed the Joslyn Center Façade Replacement Project from the List.
City staff was recently notified by LA Metro that $280,000 in Measure “R” funds were at risk of lapsing if not spent by June 30, 2022. Currently, projects budgeted in the Measure “R” fund are not on pace to meet this spending requirement by June 30. Therefore, expenditures totaling $280,000 for the Sepulveda Bridge project will be applied to the Measure “R” fund instead of the Proposition “C” Local Return fund. To maintain the same fund balance estimates in the Measure “R” and Proposition “C” funds, project funding allocated to the Annual Street Resurfacing Project will also be swapped in the amount of $280,000 (from Measure “R” to Proposition “C”). The funding swaps for the Sepulveda Bridge and Annual Street Resurfacing projects will occur in FY 2021-2022.
DISCUSSION:
The 73 projects listed in the proposed 5-Year CIP are provided as an attachment to this report. Note that the items shown in red font in that attachment highlight the alterations made from last year’s adopted CIP. The projects identified in the 5-Year CIP are grouped into eight categories based on their funding sources and project eligibility. The majority of the eight categories have very specific project eligibility criteria, negating the ability to move most projects from one category to another. These categories are:
1. Street Lighting & Landscape Projects
2. Streets, Sidewalks and Right-of-Way (ROW) Projects
With subcategories: Gas Tax, Proposition C, Measure R, and Measure M
3. CIP Projects (City Facilities, Buildings and Parks)
With subcategory: Construction Bond
4. Water Infrastructure Projects
5. Wastewater Infrastructure Projects
6. Stormwater Infrastructure Projects
With subcategory: Measure W
7. Parking Facilities Projects
8. State Pier and Lot Projects
Street Lighting and Landscape Fund $219,989 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 allocated to future pole maintenance and pole replacement needs in the Street Lighting and Landscape Fund.
Streets, Sidewalks and ROW Funds $37,933,503 16 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 Act (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 six individual grant-funded projects listed in these categories. The Local Return funding sources and the corresponding programmed revenues include:
$8,061,493 Streets and Highways Fund (i.e., Gas Tax), inclusive of grants from South Bay Highway Program (SBHP) / Los Angeles County Metropolitan Transportation Authority (Metro) and the Federal highway programs. 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.
$9,609,725 Proposition C Fund, inclusive of grants from 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.
$4,968,671 Measure R Fund: 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.
$15,293,614 Measure M Fund: This fund can be used for a broad array of street-and sidewalk-related projects throughout the City, as well as stormwater pollution control projects. Both local and arterial roadway projects are eligible.
CIP Funds $22,925,151 24 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, studies and master plans, landscaping enhancements, signage, City-owned refuse enclosures and other right-of-way and public property improvements.
$16,406,309 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. The CIP Fund also includes partial funding from grants and special project funds from Proposition A, the Public Art Trust Fund, the Community Development Block Grant (CDBG) program, and the Manhattan Village Mall.
$6,198,842 Construction Bond Fund: This fund was established to track the bond funds related to the Fire Station No. 2 Replacement Project, which involves demolishing and replacing the existing fire station located at Manhattan Beach Boulevard and Rowell Avenue. The project is currently in construction.
Water Fund $36,831,042 14 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. The most significant water project underway is the replacement of Peck Reservoir, which accounts for about 30% of the total funding allocated over the next five years. In response to depletion in the Water Enterprise Fund, the proposed 5-Year CIP defers all expenditures previously programmed in FY2022-2023 to future years.
Stormwater Funds $25,677,454 9 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, a wastewater master plan, and enhanced watershed management plan (EWMP) infrastructure needs (e.g., infiltration projects). The Stormwater Fund is supported by a combination of stormwater assessment fees and transfers from the General Fund.
$6,520,354 Stormwater Fund: This fund is limited to stormwater infrastructure and is supported by a combination of stormwater assessment fees, and transfers from the General Fund.
$19,157,100 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 a local return, and competitive grant funding from Measure W.
Wastewater Fund $22,505,361 9 Projects
This category of projects addresses the infrastructure needs, operation, and maintenance of the City’s wastewater system, and includes sewer main replacements, lift station refurbishments, radio telemetry, and all required studies and master plans. The projects in this category are fully funded through the Wastewater Enterprise Fund using revenues collected through sewer fees.
Over 70% of the funding allocated 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.
Parking Fund $2,239,778 3 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 $1,751,283 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 come from the meter fees collected by visitors and patrons utilizing the upper and lower Pier parking lots. Notably, staff will begin construction to replace the entire length of the Pier’s railing system in FY 2022-2023. The current rails were installed in the 1980s and are now beyond repair due to extensive corrosion from the salt air.
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 5-Year CIP reflects the City Council’s priorities as outlined its updated Work Plan and those of the community, which were provided in the December 2021 Community Opinion Survey.
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. 22-0080
2. Schedule of Capital Improvement Projects by Fund
3. Final 5-Year CIP FY 2022-2023 Through FY 2026-2027 Including Project Summary Sheets
4. PowerPoint Presentation