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 Regarding the Proposed 5-Year Capital Improvement Program (CIP) and Consideration of a Resolution for Fiscal Year 2023-2024 Through Fiscal Year 2027-2028 (Public Works Director Lee).
(Estimated Time: 10 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 23-0066
Limit
_________________________________________________________
Recommended Action
RECOMMENDATION:ody
Staff recommends that City Council: a) conduct a Public Hearing; b) adopt Resolution No. 23-0066 approving the 5-Year Capital Improvement Program (CIP) for Fiscal Year 2023-2024 (FY 2024) through Fiscal Year 2027-2028 (FY 2028).
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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 84 capital projects and studies included for final adoption in the upcoming 5-Year CIP, for a total FY 2024 - 2028 proposed budget of $160,442,946. The proposed 5-Year CIP focuses on improving the City’s security network, continuing implementation of projects that ensure compliance with stormwater 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.
On April 26, 2023, 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 27, 2023, 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 2, May 9, and May 16, 2023. No modifications or changes were made at that time.
FISCAL IMPLICATIONS:
Funding for FY 2024 of the proposed 5-Year CIP Plan projects a total of $49,187,811 and is included in the City’s Operational Budget for appropriation.
The complete 5-Year CIP includes 84 individual projects totaling $160,442,946, which is comprised of $111,097,811 in current and future years funding requests and $49,345,135 in prior year appropriations. The 5-Year CIP Plan includes the following expenditures:
$20.8 Million Building, Park, Pedestrian and Signal Preemption Projects (CIP)
$43.6 Million Streets, Sidewalks and Other Rights-of-Way Projects (ROW)
$2.5 Million Parking Lot Projects
$2.2 Million State Pier and Lot Projects
$37.5 Million Stormwater Projects
$464,988 Street Lighting & Landscape Projects
$25.1 Million Wastewater Projects
$28.1 Million Water Projects
$160.4 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 26, 2023, 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 27, 2023, 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 2, May 9, and May 16, 2023. No modifications or changes were made at that time.
DISCUSSION:
The 84 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. CIP Projects (City Facilities, Buildings and Parks)
With subcategory: AB 2677 Air Quality, Construction Bond
2. Streets, Sidewalks and Right-of-Way (ROW) Projects
With subcategories: Gas Tax, Proposition C, Measure R, Measure M
3. Parking Facilities Projects
4. State Pier and Lot Projects
5. Stormwater Projects
With subcategory: Measure W
6. Street Lighting & Landscape Projects
7. Water Projects
8. Wastewater Projects
CIP Funds $20,839,500 29 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.
$275,000 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.
$19,991,025 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 the Public Art Trust Fund, and Community Development Block Grant (CDBG) Program.
$573,475 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.
Streets, Sidewalks and ROW Funds $43,633,635 19 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 nine individual grant-funded projects listed in these categories. The Local Return funding sources and the corresponding programmed revenues include:
$10,830,535 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.
$19,459,415 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 stormwater pollution control projects. Both local and arterial roadway projects are eligible.
$4,641,365 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.
$8,702,320 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 $2,474,778 2 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 $2,241,496 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, staff has issued Notice to Proceed with construction to replace the entire length of the Pier’s railing system. The current rails were installed in the 1980s and are now beyond repair due to extensive corrosion from the salt air.
Stormwater Funds $37,534,922 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, and Enhanced Watershed Management Plan (EWMP) infrastructure needs (e.g., infiltration projects).
$29,184,539 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.
$8,350,383 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.
Street Lighting and Landscape Fund $464,988 1 Project
This category addresses the repair and replacement of the City’s streetlights. In 2019, the City purchased 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.
Wastewater Fund $25,117,980 8 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, 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 ageing 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 $28,135,647 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.
RECOMMENDATION:
Staff recommends that City Council conduct a Public Hearing and adopt Resolution No. 23-0066, approving the 5-Year CIP Plan for FY 2024 through FY 2028. Appropriation of funds for projects in FY 2024 will occur during the Council’s adoption of the City’s FY 2024 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. 23-0066
2. Schedule of Capital Improvement Projects by Fund
3. Final 5-Year CIP Fiscal Years 2024 - 2028 Including Project Summary Sheets
4. Fiscal Year 2024 Proposed Work Plan
5. Projects with No Progress Anticipated in Fiscal Year 2024
6. PowerPoint Presentation