Carmel-by-the-Sea City Council
March 26, 2024

CITYOF CARMEL-BY-THE-SEA

CITY COUNCIL AGENDA
Mayor Dave Potter, Councilmembers Jeff Baron,
Alissandra Dramov, Karen Ferlito, and Bobby
Richards
Contact: 831.620.2000 www.ci.carmel.ca.us
All meetings are held in the City Council Chambers
East Side of Monte Verde Street
Between Ocean and 7th Avenues

CITY COUNCIL SPECIAL MEETING
Tuesday, March 26, 2024
4:30 PM

HYBRID MEETING ATTENDANCE OPTIONS
This meeting will be held in person and via teleconference ("hybrid"). The public is welcome to attend the meeting in person or remotely via Zoom, however, the meeting will proceed as normal even if there are technical difficulties accessing Zoom. The City will do its best to resolve any technical issues as quickly as possible. To view or listen to the meeting from home, you may also watch the live stream on the City's YouTube page at: https://www.youtube.com/@CityofCarmelbytheSea/streams. To participate in the meeting via Zoom, copy and paste the link below into your browser.
https://ci-carmel-ca-us.zoom.us/j/88269155166 Webinar ID: 882 6915 5166 Passcode:
784375 Dial in: (253) 215-8782

HOW TO OFFER PUBLIC COMMENT
The public may give public comment at this meeting in person, or using the Zoom teleconference module, provided that there is access to Zoom during the meeting. Zoom comments will be taken after the in-person comments. The public can also email comments to [email protected]. Comments must be received at least 2 hours before the meeting in order to be provided to the legislative body. Comments received after that time and up to the beginning of the meeting will be made part of the record.

PUBLIC APPEARANCES - Limited to items on the Special Meeting Agenda Under the Brown Act, public comment for matters on the agenda must relate to that agenda item. This is a warning that if a member of the public attending this meeting remotely violates the Brown Act by failing to comply with this requirement of the Brown Act, then that speaker will be muted. Each person’s comments shall be limited to 3 minutes. People are not required to provide their name but it is helpful to state their names so they may be identified in the minutes of the meeting.

CALL TO ORDER AND ROLL CALL

ORDERS OF BUSINESS
Orders of Business are agenda items that require City Council, Board or Commission discussion, debate, direction to staff, and/or action.

1. Receive a presentation from Integral Corp./Haro Kasunich & Associates/EMC Planning Group providing the findings of the Coastal Engineering Study, Phase 1

2. Second Review of the proposed Fiscal Year 2024/25 Capital Improvement Program and provide direction to staff

ADJOURNMENT
This agenda was posted at City Hall, Monte Verde Street between OceanAvenue and 7thAvenue, Harrison Memorial Library, located on the NE corner of Ocean Avenue and Lincoln Street, the Carmel-by-the-Sea Post Office, 5th Avenue between Dolores Street and San Carlos Street, and the City's webpage http://www.ci.carmel.ca.us in accordance with applicable legal requirements.

SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THEAGENDA Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this agenda, received after the posting of the agenda will be available for public review at City Hall located on Monte Verde Street between Ocean and Seventh Avenues during regular business hours.

SPECIAL NOTICES TO PUBLIC
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office at 831-620-2000 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting (28CFR 35.102-35.104 ADA Title II).

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
March 26, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Mary Bilse, Environmental Programs Manager APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Receive a presentation from Integral Corp./Haro Kasunich & Associates/EMC Planning Group providing the findings of the Coastal Engineering Study, Phase 1 RECOMMENDATION:

Receive a presentation from Integral Corp./Haro Kasunich & Associates/EMC Planning Group providing the findings of the Coastal Engineering Study, Phase 1.

BACKGROUND/SUMMARY:

At their August 2, 2022 meeting, the City Council adopted the City of Carmel-by-the-Sea’s Climate Adaptation Plan and Climate Action Plan under Resolution 2022-064. Council commented that implementation of these Plans is imperative and requested the Climate Committee to continue to oversee implementation of certain projects, including the Coastal Engineering Study.

At the November 2022 meeting, the City Council adopted Resolution 2022-094 awarding a Professional Services Agreement with EMC Planning Group, for a not-to-exceed fee of $175,000, to conduct the Coastal Engineering Study and Adaptation Planning Project. Key subconsultants for this Study are Integral Corporation and Haro Kasunich & Associates.

To develop the project’s scope of work, the Consultant team reviewed the 2001 Coastal Development Permit for Scenic Road Armoring Repairs, 2003 Shoreline Management Plan (Shonman and D’Ambrosio), 2016 Carmel Shoreline Assessment Update, 2016 Assessments of Shoreline Improvements at Carmel Beach (Easton Geology), and the City’s 2022 Climate Adaptation and Climate Action Plans.

The Coastal Engineering Study will be completed in two phases. Phase 1 consisted of five tasks and was City-funded in the Capital Improvement Plan (CIP), while Phase 2 is funded by a recently-executed California Coastal Commission reimbursement grant of $500,000. Phase 2 will include Hazard Policy review and revisions, public outreach, and adaptation pathway development. The results of Phase 2 will be presented to the City Council and various Commissions and Committees over the next two years.

At today’s City Council Special Meeting, David Revell, PH.D., Principal, and Matt Jamieson, Project Scientist, from Integral Corp will present their key findings of Task 1, Coastal Engineering Condition Evaluation, Task 2, Carmel Climate Change Vulnerability Assessment and the Shoreline and Beach Coastal
Infrastructure
Total Number In Need of Repair
High Priority
Repairs
Seawalls 11 2-4 1
Beach Access Stairs 11 9 3
Revetments 6 4 3
Change Analysis: Seasonal and Long Term, Task 3, Shoreline and Beach Erosion Modeling and Sea Level Rise, and Task 4, Coastal Hazard and Sea Level Rise Vulnerabilities to the City Council and the public.

This final presentation to the City Council will complete Phase 1 services.

Below is a brief summary of the findings of Phase 1, Tasks 1- 4:

Phase 1 – Coastal Engineering and Hazard Assessment
Task 1 – Coastal Engineering Condition Evaluation
In December 2022 through February 2023, Haro Kasunich and Associates (HKA) assessed the general condition of the coastal protection structures and stairways that were visible at Carmel Beach. HKA inventoried the length, footprint and other factors of the coastal protection structures. They determined the effectiveness of restacking rip rap revetment structures and lateral/vertical extensions of both revetments and vertical seawalls. HKA estimated the existing life of the structure until it ceases to adequately provide protection for the bluff and roadway. However, this general assessment was not intended to provide detailed engineering evaluations of each structure. These services will be performed over time as part of the separate Shoreline Infrastructure Repair Project under the Capital Improvement Program.

Severe winter storms and ocean wave runup scoured portions of the beach in early 2023, temporarily removing beach sand that covered the lower portions of some coastal protection structures, allowing them to be inspected. These structures consisted of 11 seawalls, 6 revetments, and 11 stairways. It total, HKA inspected 5,537 lineal feet of coastline, which contained 4,119 lineal feet of coastal armoring.

At the March 9, 2023 Forest and Beach Commission meeting, the Consultant team presented their findings of Task 1, Coastal Engineering Condition Evaluation. The Consultant team also presented their key findings of Task 1 to the Climate Committee on November 16, 2023.

The following table summarizes the key issues of the Condition Assessment.

The Task 1, Coastal Engineering Condition Evaluation is located on the City’s website:
https://ci.carmel.ca.us/sites/main/files/fileattachments/12176_carmel_beach_adaptation_coastal_protection_assessment_4-27-2023_rev.pdf? 1692201318. The associated Task 1 presentation is located on the City’s website:
https://ci.carmel.ca.us/sites/main/files/file-attachments/city_council_slideshow_3-9-2023.pdf?1710868888 Task 2 - Shoreline and Beach Change Analysis – Long Term and Seasonal The Consultant team presented the findings of Task 2 – Shoreline and Beach Change Analysis to the Forest and Beach Commission at their August 10, 2023 meeting. The Consultant team also presented their findings of Task 2 to the Climate Committee on November 16, 2023.

This study determined the seasonal and historical trends of shoreline position and beach sand widths using historic reports and imagery data dating back to the 1940s.

Long Term
The sand affecting Carmel Beach extends beyond the City limits north to include Pebble Beach along the 10 th golf course hole.

Overall, the long-term shoreline position and beach widths have been relatively stable. This indicates a relatively stable amount of sand in the sandy beach compartment.

On average, the beach widths were narrower south of Eighth Avenue, wider at Pebble Beach, and the widest in the dune-backed areas near the Del Mar parking lot.

Seasonal
The beach widths change seasonally, where the narrowest beach widths occur in the spring (after winter storm waves), and the widest beach widths occur in the fall (after small summer waves).

The highest range in beach widths occurs south of Eighth Avenue and near Pescadero Creek (around the offshore rock).

The beach width was most stable in the dune-backed areas near the Del Mar parking lot.

Storm Impacts and Recovery
During strong west swells (often in El Niño years), when beach erosion is highest, most of the sand is moved offshore, exposing bedrock under the sand in some areas.

The highest observed cliff erosion was between 20-40 feet and was observed following the 1982-1983 El Niño.

Recovery after large storm events occur can take a few years, and the area south of Eighth Avenue usually takes the longest.

A link to the Task 2 – Shoreline and Beach Change Analysis is located on the City’s website:
https://ci.carmel.ca.us/sites/main/files/fileattachments/carmel_climate_change_va_task2_shoreline_and_beach_change_0.pdf?1699315046. The Task 2 presentation is located on the City’s website: https://ci.carmel.ca.us/sites/main/files/fileattachments/carmel_task_2_presentation_fbcommission_08102023.pdf?1692199802 Task 3 - Shoreline and Beach Erosion Exposure Modeling with Sea Level Rise At the February 15, 2024 Climate Committee meeting, the consultant team presented their key findings of Task 3, Shoreline and Beach Erosion Modeling with Sea Level Rise and Task 4, Coastal Hazard and Sea Level Rise Vulnerabilities to the Committee and the public. On March 14, 2024, the Consultants presented Tasks 3 and 4 to the Forest and Beach Commission and the public.

The following summarizes the key issues of the Shoreline and Beach Erosion Exposure Modeling with Sea Level Rise. Consultants will present the potential effect of future beach narrowing and cliff and dune erosion hazard extents with sea level rise. The coastal erosion hazard projections include the effect of the existing City’s coastal armoring (such as revetments and sea walls) as well one that considers a future without armoring present. The differences will be useful in Phase 2 of the project when examining the implications of various adaptation strategies.

Summer Beach Width Changes (with Armoring)
It is projected that the width of Carmel Beach will narrow between 50 - 60 feet for each foot of sea level rise. Please note that the sea level rise projection years shown below are approximate estimations.

Assuming that the location of the backshore does not change, the following average summer beach conditions are projected:

By 2 feet of sea level rise (2060 – 2080), lateral access to areas south of Twelfth Avenue headland may be obstructed.

By 3 feet of sea level rise (2070 – 2100), the southern end of Carmel Beach south of Eighth Avenue is projected to be a series of pocket beaches rather than one continuous stretch of dry sand beach.

Only during highly recovered conditions will a dry sand beach remain south of Twelfth Avenue.

By 4 feet of sea level rise (2080 – 2100+), the only continuous dry sand beach remaining will be from the North Dunes sand ramps to Pescadero Canyon. In the south, only two small pockets of dry sand beaches are projected to remain around Eighth Avenue and Eleventh Avenue.

By 5 feet of sea level rise (2090 – 2100+), only one pocket of dry sand beach around the North Dunes and the Fourth Avenue stairs are likely to remain.

Coastal Cliff and Dune Erosion
For the armored erosion projection, erosion rates are dampened significantly in the near term. However, with increasing sea level rise, the effectiveness of the armoring is reduced, leading to an acceleration in blufftop erosion above the coastal armoring beyond 1 foot of sea level rise.

In the armored scenario, the following is projected:

By 1 foot of sea level rise (2045 – 2060), the areas with the greatest threat of erosion are the private oceanfront properties near Pescadero Canyon, the dune-backed shore between Fourth and Eighth Avenues, the lower cliffs between Eighth Avenue and Eleventh Avenue, and the unarmored cliffs by Twelfth Avenue.

By 2 feet of sea level rise (2060 – 2080), erosion rates accelerate as coastal armoring is more likely to be overtopped by larger waves. Areas behind seawalls have projected erosion hazard distances of 20 to 40 feet.

By 4 feet of sea level rise (2080 – 2100+), the highest erosion distance is projected around Twelfth Avenue, where a combination of factors related to local geology, wave heights, and lack of armoring yield projections of retreat up to 150 feet. Areas of the North Dunes around the Del Mar sand ramp also see higher projections of retreat of up to 90 feet, extending to the volleyball courts.

Task 4 – Coastal Hazard and Sea Level Rise Vulnerabilities The scope for Task 4 was to determine the bluff-top assets and infrastructure potentially exposed to coastal erosion under armored and unarmored conditions. The vulnerability assessment evaluated erosion hazard exposure to land use and structures, roads and parking, and other infrastructure. For succinctness, results of only the coastal armored scenario are presented below. The full suite of results for Tasks 3 and 4 are provided in the technical report provided on the City’s website: https://ci.carmel.ca.us/sites/main/files/fileattachments/carmel_climate_change_va_task3and4_draft_feb_2_2024.pdf?1710870221. The Task 3 and 4 presentation is located on the City’s website: https://ci.carmel.ca.us/sites/main/files/fileattachments/carmel_presentation_climatecommittee_feb2024_0.pptx?1710868563 Currently, all of the assets and infrastructure along the beach and bluff including 11 coastal access stairways, the Scenic Drive Pathway, and the stormwater drainage network are exposed to erosion. The public restroom adjacent to the Santa Lucia Avenue stairs is exposed to erosion and will face increased threat from coastal wave flooding in the future.

By 1 foot of sea level rise (2045 – 2060), Scenic Drive is exposed to erosion in 6 locations, largely around Twelfth Avenue and between Tenth and Eighth Avenue. A sewer force main near Martin Way may be exposed, as well as a sewer main between Ninth and Tenth Avenues, and a sewer main under the dunes between Seventh and Eighth Avenues. Waves overtopping the bluff are expected to be more likely along the southern seawall by Santa Lucia Avenue.

By 2 feet of sea level rise (2060 – 2080), nearly the entire length of Scenic Drive may be exposed to erosion, including most of the underground water and sewer infrastructure. This includes a water main between Eighth and Tenth Avenues. Waves overtopping the bluffs are expected to be more likely between Tenth and Eleventh Avenues.

Between 2 and 4 feet of sea level rise (2060 – 2100+), 45 homes along Scenic Drive and at Pescadero Canyon are projected to potentially be exposed to erosion. One additional water main under Scenic Drive south of Thirteenth Avenue may be exposed to erosion. One additional sewer force main may be exposed to erosion by Eighth Avenue. The Del Mar parking lot will also be exposed to erosion. Waves overtopping the bluffs are expected to be more likely between Ninth and Tenth Avenues.

Generally, the sea level rise impacts noted in the above report are based on making no further investments in armoring or adaptation to address the anticipated coastal damages. Clearly, inaction or delayed action may result in costly damages and emergency repairs due to the cumulative effect of sea level rise, wave action, flooding, storms, and coastal erosion. Phase 2 of the Coastal Engineering Study will include development of sea level rise adaptation strategies, in collaboration with other City departments, community stakeholders, and the California Coastal Commission, in order to make the City more resilient in the face of rising sea levels. Such efforts may prolong the useful life of Carmel Beach and the shorefront for as long as possible.

Task 5 – Policy Review
Consultants also prepared a memo summarizing Task 5 – Policy Review the City’s existing coastal hazard policies and identifying recommended updates to the Local Coastal Program to be prepared in Phase 2.

This memorandum was approved by staff.

FISCAL IMPACT:

No direct fiscal impact for this presentation. In November 2022, the City Council awarded a Professional Services Agreement to EMC/Integral/Haro Kasunich, for a not-to-exceed fee of $175,000, for Phase 1 of the Coastal Engineering Study, a Capital Improvement Project. Phase 1 was completed on budget.

PRIOR CITY COUNCIL ACTION:

At the November 2022 meeting, the City Council adopted Resolution 2022-094 awarding a Professional Services Agreement with EMC Planning Group, for a not-to-exceed fee of $175,000, to conduct the Coastal Engineering Study and Adaptation Planning Project. Key subconsultants for this Study are Integral Corporation and Haro Kasunich & Associates.

ATTACHMENTS:

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
March 26, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robert Harary, P.E, Director of Public Works APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Second Review of the proposed Fiscal Year 2024/25 Capital Improvement Program and provide direction to staff
RECOMMENDATION:

As a follow-up to the March 5th meeting's first review of the proposed Fiscal Year (FY) 2024/25 Capital Improvement Plan, staff requests that the City Council:
1) Review questions from Council and the public from the March 5th meeting, with responses (Attachment 1).
2) Review and provide direction on five (5) carry-over or new projects that were refined since March 5 th
to
reflect changes to implementation strategy or updated cost estimates. 3) Tentatively approve, or provide alternative direction to staff, for the following issues project categories:

Four (4) projects recommended to be cancelled or modified.

Fifteen (15) capital projects funded in (or prior to) FY 2023/24 that are recommended to be carried over, with remaining funds, into FY 2024/25.

Six (6) carry-over paving, drainage, and facility renovation projects requiring supplemental funding for construction.

Six (6) potential new projects funded by the Vehicle and Equipment Fund.

Thirteen (13) potential new projects funded by the Capital Improvement Fund.

BACKGROUND/SUMMARY:

At the March 5, 2024 meeting, the City Council received a presentation from the Director of Public Works regarding:

Capital improvements and key operating budget projects completed, or scheduled to be completed, in FY 2023/24.

Projects recommended to be cancelled or modified.

Capital projects funded in (or prior to) FY 2023/24 that are recommended to be carried over, with remaining funds, into FY 2024/25.

Carry-over paving, drainage, and facility renovation projects that require supplemental funding for construction.

Potential new projects funded by the Vehicle and Equipment Fund.

Potential new projects funded by the Capital Improvement Fund.

An introduction of the Updated 5-year Capital Improvement Plan (FY 2024/25 through 2028/29).

The Staff Report and Presentation slides from the March 5, 2024 meeting are enclosed as Attachment 2 and Attachment 3, respectively.

This Staff Report is a follow-up to the March 5
th meeting and focuses on the following three areas, each of which will be discussed at the March 26
th Special Council meeting. Staff requests that City Council:

A) Review questions and comments from Council and the public with responses, included in Attachment 1.

B) Review and provide direction to staff on five (5) carry-over or new projects that were refined since March 5
th
to reflect changes to implementation strategy or updated cost estimates.

C) Tentatively approve, or provide alternative direction to staff, for the following project categories:

Four (4) projects recommended to be cancelled or modified.

Fifteen (15) capital projects funded in (or prior to) FY 2023/24 that are recommended to be carried over, with remaining funds, into FY 2024/25.

Six (6) carry-over paving, drainage, and facility renovation projects requiring supplemental funding for construction.

Six (6) potential new projects funded by the Vehicle and Equipment Fund.

Thirteen (13) potential new projects funded by the Capital Improvement Fund.

For brevity, completed projects, carry-over project descriptions, and general summary of the 5-year Capital Improvement Plan will not be reviewed at this time, but information on these issues is available in the Attachments.

A) Responses to questions and comments from Council and public are included in Attachment 1.

B) Since the March 5
th first review of the CIP, the following five projects have been refined to reflect changes to strategy, updated cost estimates, or other reasons:

1. PG&E Rule 20A Project. As noted in Question 6 in Attachment 1, this project will be included in the list of carry over projects into FY 2024/25.

2. Reconstruction of the San Antonio/Ocean Intersection. This intersection was designed as part of the FY 23 Concrete Streets Project, but it can be extracted and moved up into the FY 24 Paving Project with minor modifications to the design plans, specifications, and contract documents.

As noted on March 5th, the FY 24 Paving project is proposed to be constructed in FY 25 and be combined with the four FY 22 paving bid additives that were deferred. The bid additives include paving along San Antonio Avenue, between Fourth and Ocean Avenues, and along San Antonio, between Ocean and Eighth Avenues. Thus, if this intersection is included, the FY 25 paving project would resurface the entire length of San Antonio between Fourth and Eighth Avenues.

The estimated cost to reconstruct the intersection is $254,000, and the estimated cost to incorporate the intersection into the FY 24 project is $39,000. This intersection can be funded by advancing all remaining funding from the FY 23 Concrete Streets project into the FY 24 project. The total cost of the revised, combined project would be $2.8M.

3. Lincoln/Fourth Trestle Bridge. At the March 5
th meeting, this new project was identified with a
proposed initial budget of $175,000 for design and environmental review. However, it may be premature to advance this project into design without an initial condition assessment. Staff now recommends that this project be deleted from the FY 2024/25 CIP, but requests a $40,000 allocation in the Public Works/Street Maintenance Division Operating Budget to fund a structural engineering evaluation of the bridge. Depending on the results of this evaluate, the extent of repairs, cost estimates, and need for any environmental permitting will be established. If repairs can not be completed by in-house crews, the project may be included back into the CIP in an upcoming fiscal year.

4. San Antonio Pathway Reconstruction, Second to Fourth Avenues. At the March 5 th
meeting, the construction cost estimate was projected at $275,000. Recently, Ausonio and staff met with the structural engineer who explained how the original design was substandard and proposed a new design which utilizes all 44 existing, buried concrete piers. The proposed design requires excavating at each pier, constructing a concrete pier cap, erecting a column, replacing wood lagging, installing a drainage device, restoring the Pathway, and reinstalling the grape stake fence. As a result, the revised cost estimate has increased to $550,000. Refer to Question 12 in Attachment 1.

5. Ocean Avenue Paving Project, Carpenter to Highway 1. This new project could be incorporated into the FY 2024/25 CIP as a new project entirely funding by Monterey County. While there may be no direct costs to the City, this large-scale project would require City staff and a project management consultant, to develop an interagency funding agreement with the County, manage third party development of design plans and specifications, coordinate with CalTrans, the County, and impacted residents, and perform other project implementation tasks. While this is a worthwhile project, the impact on staff resources must be considered. Alternatively, further requests could be made to the County to implement their own project in a timely manner.

C) Council will be requested to tentatively approve, or provide alternative direction to staff, for the following issues project categories:

1. The four (4) Prior Projects recommended to be cancelled or modified are:

Harrison Memorial Library Backup Generator. Include in the Library Master Plan renovation projects and cancel as a separate project.

Harrison Memorial Library Carpet Replacement. Include in the Library Master Plan renovation projects and cancel as a separate project.

North Dunes Habitat Restoration Interpretive Signage and Split Rail Fence. The split rail fence will be installed by Public Works this spring, and ongoing restoration and environmental monitoring are covered by the operating budget. However, until specific funding has been committed for upgraded interpretive signage, this project should be canceled.

Resilience Infrastructure Planning and Design. Since this project has been integrated with the Police Building Project, the remaining balance of $83,000 should be reallocated into that project account.

2. The fifteen (15) Prior Projects recommended to be carried over, with remaining funds, into FY 2024/25 are listed in the table below:

No.

Asset
Category
Project
City Funds,
Initial
Balance
External
Funds
1 Fleet
Ambulance and Equipment
(delivery late 2025)
$275,000 $50,000
2 Fleet
Fire Engine – Prepaid $880K
(delivery late 2025)
0 3 Streets
FY 23 Concrete Street Repairs:

Shovel Ready, Supplemental
Funding Needed FY 26, 27
564,000 441,000
4 Streets
FY 24 Paving Project: Shovel
Ready July, Supplemental
Funding Needed
657,000 439,000
5 Drainage
Drainage System Repairs: Shovel
Ready July, Supplemental
Funding Needed
580,000
6 Drainage
MTNP – 3 Stream Stability/Drainage
Projects Bid, Supplemental
Funding Needed
85,000 178,000
7 Environment Coastal Engineering Study, Phase 2 0 500,000 8 Environment
Shoreline Infrastructure Repairs – 2
structural stairs, cost estimating &
environmental permitting for all
shoreline repairs
350,000
50,000
FEMA
9 Facilities
- City Hall Roof Replacement
- Sunset Center Cottage Window
Repairs Both Shovel Ready,
Supplemental Funding Needed
160,000
100,000
10 Facilities Police Building Project 3,239,000
11 Facilities
Sunset Center North Lot
Electrical Panels
100,000 TBD
12 Library Library Master Plan, Phases II-IV 100,000 TBD 13 Forestry,
Parks
Scenic Pathway
Hardscape Renovations
100,000 100,000
14 Contingency
Contingency: $337K spent. Balance
of $163,000 for MTNP 3 Drainage Bid
500,000
15 Environment PG&E Rule 20A Undergrounding 0 667,000
Totals $6,810,000 $2,425,000

2. The six (6) carry-over paving, drainage, and facility renovation projects requiring supplemental funding for construction are listed in the table below:

No.

Shovel Ready Construction
Cost
Available
Funding
Additional
Funding
Carry Over Projects Needed
1 FY 22 Bid Additives:
(San Antonio, 2-8, Monte
Verde, 2–Ocean, Torres 2-4)
$835,000 $0
2A
FY 24 Paving: 4 Overlays, 21
Slurry, 5 Sidewalks
1,682,000 918,000
2B
San Antonio/Ocean
Intersection
293,000 0
FY 23 Reallocate all Funding
to FY 24/25
792,000
FY 25 Funding – No New
Project,
Typical TAMC/MOE
Allocations
TAMC 440,000 MOE
660,000
Paving Subtotals 2,810,000 2,150,000 660,000
3 Drainage System Repairs (4) 1,052,000 414,000 638,000 4 MTNP Stream Stability/
Drainage Projects
510,000 408,000 102,000
5 City Hall Roof Replacement 350,000 183,000 167,000
6 SC Cottage Window Repairs 200,000 100,000 100,000
Additional Allocation
Needed
$4,922,000 $3,255,0002 $1,667,000

4. The six (6) potential new FY 2024/25 projects funded by the Vehicle and Equipment Fund are listed in the table below:

No.

Asset
Category
Project City Funds
External
Funds
1 IT Council Chambers AV Upgrade $60,000
2 IT Core Networks
(2016 Arista Switches expire)
50,000
3 IT Network Firewalls
(2017 end of useful life)
180,000
4 Fleet Police Radios Lease, Year 4 of 6 30,000
5 Fleet Police EV Patrol Vehicle (2017) 75,000 $15,000
6 Fleet Public Works Dump Truck (1995) 150,000
Total $545,000 $15,000

5. The thirteen (13) potential new FY 2024/25 projects funded by the Capital Improvement Fund are listed in the table below:

No. Asset Project City Funds External
Category Funds
1 Drainage Junipero Bypass Drainage Project - Design $175,000 2 Streets
San Antonio Pathway Reconstruction –
PM, Construction
550,000
3 Streets
Sunset Center Retaining Walls –
PM, Construction
550,000
4 Streets
Lincoln/Fourth Trestle Bridge –
Move structural assessment to Ops Budget
0 5 Facilities
Sunset Center Portico –
PM, Design & Construction
450,000
6 Facilities
Vista Lobos: 3 EV Charging Stations and
Building Electrical Panel – Construction
400,000 60,000
7 Facilities ADA Upgrades, Year 7 20,000
8 Facilities
Norton Court Garage Security Access
System
15,000
9 Forestry/
Parks
MTNP Laiolo Bridge and Path Realignment,
Env. and Design
175,000
10 Environment
Shoreline Wall: Fourth Avenue Outfall
PM, Env. and Design
250,000
11 Library Park Branch – Windows and Dry Rot 45,000
12 Contingency CIP Contingency FY 25 400,000
13 Streets
Ocean Avenue, Carpenter to Highway 1
Monterey County Project
0 500,000
Total $3,030,000 $560,000
FISCAL IMPACT:

The preliminary amount of CIP project funding available to be carried over into FY 24/25 is approximately $5.9M. This amount will be refined during the remainder of the current FY23/24. For comparison purposes, approximately $6.8M was carried over from prior fiscal years into the FY 23/24 CIP budget.

The additional fiscal impact for FY 24/25 cannot yet be assessed until specific projects are selected or deferred by the City Council.

Carry-Over Paving, Drainage, and Facility Renovation Projects requiring Supplemental Funding: Staff recommends that the FY22 bid additives, FY24 paving project, and San Antonio/Ocean Avenue intersection, as well as two drainage projects, and two facility renovation projects, most of which have been designed, bid, and/or are “shovel ready” for bidding and construction, be funded before allocating capital funds to new projects that have not yet been started. A total amount of $1,667,000 of City funds are needed to complete these six important projects.

Potential New Projects-Vehicle & Equipment Fund: Six (6) new vehicle and equipment projects are proposed at an estimated cost of $545,000. The City recognizes a 10% reserve in the Vehicle and Equipment fund balance for replacements. For FY 24/25, the Vehicle & Equipment Fund reserve balance is estimated to be $310,000.

Potential New Projects – Capital Improvement Fund: 13 additional projects were listed above with a total estimated cost of $3,030,000. Staff recommends that this list be slimmed down to fit into the available budget.

PRIOR CITY COUNCIL ACTION:

On March 5, 2024, Council received a presentation regarding:

Capital Improvements and key operating budget projects completed, or scheduled to be completed, in FY 2023/24.

Projects recommended to be cancelled or modified.

Capital projects funded in (or prior to) FY 2023/24 that are recommended to be carried over, with remaining funds, into FY 2024/25.

Carry-over paving, drainage, and facility renovation projects requiring supplemental funding for construction.

Potential new projects funded by the Vehicle and Equipment Fund.

Potential new projects funded by the Capital Improvement Fund.

Introduction of the Updated 5-year Capital Improvement Plan (FY 2024/25 through 2028/29).

ATTACHMENTS:

Attachment 1) CIP Questions and Answers
Attachment 2) March 5, 2024, Staff Report (CIP)
Attachment 3) March 5, 2024, CIP Presentation
CIP Questions and Answers
March 26, 2024
Questions and comments from Council and public are listed below with responses to each.

1. What buildings does the City own and what is the estimated deferred maintenance costs for each?
Response:

No. Building Year
Built
Square
Feet
Condition
Assessed
(Firm/Year)
Estimated
Repairs/
Renovations
1 City Hall 1913 6,572 BV 2023 $2.1M
2 Fire Station 1937 3,375 BV 2023 $1.5M
3 Vista Lobos 1954 6,000 BV 2023 $0.6M
4 Police Station 1966 7,500 Indigo 2023 $11 - $20M
5 Public Works 1966 15,614 BV 2023 Pending PD
6 HM Library 1927 7,466 Jayson 2023 $10M LMP
7 PB Library 1971 8,310 Jayson 2023 $15M LMP
8 Flanders
Mansion 1925 5,380 2018 RFP
9 Scout House 1931 3,820 2023 RFP $1M
10 First Murphy
House 1902 760 H&A 2013
11 Forest Theater 1939+ 12,350 H&A 2013 Renov. 2015
12 Sunset Center 1925-31 45,634 H&A 2013 Renov. 2001
13 Norton Garage 1989 10,500
14-
20 7 Public
Restrooms 3,500 Proposed FY27
Totals 136,781

2. What is the estimated total carry-over amount and the new FY 2024/25 proposed amounts? What is the forecast for funding next year?
Response: The estimated total carry-over amount into FY 2024/25 is $6.81M of City Funds plus $2.43M of external funds (now including PG&E Rule 20A). The total amount of the supplemental funding for six “shovel ready” projects ($1,667,000), plus six proposed new Vehicle and Equipment Fund projects ($545,000), and the 13 proposed Capital Improvement Fund projects ($3,030,000) would be $5,242,000 of City funds plus $515,000 of external funds.

While the forecasted funds for FY 2024/25 are not yet available, Council is requested to review and defer projects that may not be urgent at this time or which Attachment 1
may exceed available funding.

3. Our roads are badly cracked. Can we add more funding to improve the streets? Response: According to our “Street Saver” Pavement Management Program, the City’s overall Pavement Condition Index (PCI) has been slowly deteriorating over the past five years as indicated in the chart below. In 2019, the PCI of 78 was the highest of any agency in Monterey County. Since then, a three-year gap in paving projects caused by the Pandemic has reduced the PCI down to 71, as was anticipated.

With the proposed $2.8M street improvement project for FY 2024/25 and ongoing annual investments (local plus external funding) of $1.1M, our pavement condition is expected to be maintained in the 70s, at least for the next five years. Increasing investment for streets must be weighed against other significant infrastructure needs such as for priority drainage, shoreline infrastructure, and City building repairs.

4. Why are we spending so much for consultants?
Response: The City relies on consultants to provide professional services for two primary reasons. First, City staff does not possess the wide range of technical expertise needed for many projects, such as in the following service areas:

Architecture, coastal engineering, electrical engineering, geotechnical engineering, hazardous materials testing, landscape architecture, mechanical engineering, structural engineering, surveying, and traffic engineering.

The other primary reason is that while staff does have the needed technical expertise, the quantity of projects requires the City to supplement staff, such as for the following service areas: Arboricultural services, Building Code plan checking, civil engineering, construction management, environmental services, historic preservation, planning services, and project management. Per state law, Attachment 1
consultants are hired on the basis of demonstrated competency, qualifications, and experience, not on lowest price. Also refer to Question 11 below.

5. Can the proposed landscaping on the Ocean Avenue median island include an irrigation connection to facilitate watering plants and flowers around the WWI Memorial Arch?
Response: Yes.

6. Why wasn’t the PG&E Rule 20A Undergrounding funds included in the CIP? Response: The Rule 20A Undergrounding Project was included in the current FY 2023/24 budget and shown in the 5-year CIP spreadsheet. However, on March 5 th, this should have been included as a carryover project with external funding.

This has been corrected.

7. Does the City have a plan to ultimately replace the new ambulance and fire engine?
Response: Public Works and Public Safety maintain a list of all vehicles and equipment in the City’s fleet. This list is updated each year as part of the CIP programming process, and projects 15 years out. The incoming ambulance and fire engine are not yet in the City’s fleet; however, once they arrive, they will be added to the list and forecasted when they are due to be replaced.

Our current Fire/Ambulance services operate with two fire engines and two ambulances. One vehicle for each serves as a back-up for the primary. When we replace a fire engine or ambulance, we are essentially replacing the back-up. The new vehicle becomes the primary, and the old one moves to the back-up role.

8. Carmel Cares suggests fundraising to donate a bobcat or tractor to Public Works to help sand movement on Carmel Beach.

Response: The City would greatly appreciate such a donation. Currently Public Works has to rent this equipment.

9. Can the City increase the transfer tax to provide additional revenue? Response: Under California law, a charter city may only enact or increase a real property transfer tax that is a general tax. Therefore, the real property transfer tax would have to be approved by a majority of the voters. Should Council wish to pursue this option, a preliminary discussion may be prudent at the March 28th Strategic Planning Workshop.

10.What is the cost estimate to fix the roadway along Ocean Avenue in the County’s jurisdiction, between Carpenter Street and Highway 1?
Attachment 1
Response: Monterey County Public Works officials have informed a local resident that the cost estimate to repair Ocean Avenue in the County’s jurisdiction would be $500,000. City staff believes that this cost estimate is overly optimistic and may not include the full cost considering traffic detours, drainage, CalTrans permitting, required ADA ramps, etc.

With Council’s direction, Staff could begin to discuss the possibility of entering into an Interagency Agreement with Monterey County such that the City would oversee a program management consultant who would in turn oversee the development of design plans, CEQA documentation, bidding, and construction of the proposed project, all at the expense of the County.

11.What are our costs for consultant project management services? What is the cost if we were to add a second project manager position in-house? Response: For the past two fiscal years, the City has retained three project management firms for the total fees to advance the following projects:
 4 Leaf, $198k: Includes Police Building Project, FY 22 Paving Project specifications, and technical support for resilience and electrical panel assessment projects.
 Ausonio, Inc., $250k: Includes City Hall retaining wall repair, Sunset Center and HML exterior painting projects, City Hall roof replacement, Cottage Windows repairs, 4 facility condition assessments, design of Sunset Center’s portico and retaining wall repairs, San Antonio pathway structural repairs, and Park Branch Library dumbwaiter.  Wallace Group, $350k: Includes Mission Trail Nature Preserve tank/pump house/well removal design, oversight of FY 23 Concrete Streets Project and the Storm Drain Master Plan Update, wayfinding signs, shoreline infrastructure repairs, and design of the FY 24 Paving Project.

This $800k investment over two years allowed the City to advance 20 capital improvement projects.

The fully-burdened cost (salary plus benefits) for a City Project Manager is roughly $190,000 (pending). A Project Manager can support an average of eight to ten projects at a time. Thus, hiring a second Project Manager on staff would ultimately reduce outside consultant fees, but continuing to retain project management consultants is still a prudent strategy until the current backlog of projects can be reduced.

12.The failed fencing along the San Antonio pathway, between Second and Fourth Avenues appear, was originally a joint project with Pebble Beach. Pebble Beach appears to have a similar problem with the fencing north of the Pebble Beach gate.

Does Pebble Beach have a plan for repairs and would they be willing to participate in funding?
Attachment 1
Response: The Pebble Beach Community Services District advised staff to reach out to representatives of the Pebble Beach Company. While the fence inside Pebble Beach appears to be similar to the fence along San Antonio Avenue, it is not yet clear if the same, or alternative foundation design, was used there. More information is forthcoming.

13.What is the total cost to implement all of the priority drainage repairs identified in the 2023 Storm Drain Master Plan (SDMP) Update?
Response: The 23 priority projects identified in the SDMP Update are estimated to cost $14.7M. Three of the six highest priority repairs will be “shovel ready” for construction pending supplemental funding of $638,000 proposed in FY 2024/25.

The design of one additional high priority project, the Junipero Bypass, is a proposed new project valued at $175,000 for FY 2024/25.

The draft 5-year CIP includes an additional $2.8M in Years 2-5 towards completion of these top six projects. The nine medium priority projects included in the SDMP Update, valued at $7.7M, would take another 7 to 10 years to complete at current funding levels.

14.Council requests a presentation about the status of the Library Master Plan.

Response: The Library Master Plan was presented to the Harrison Memorial Library Board of Trustees on March 20, 2024 and will be presented to Council at an upcoming meeting.

15.Can we dissect the San Antonio/Ocean Avenue intersection improvements included in the FY 23 Concrete Streets project into the proposed, modified project to be constructed in FY 2024/25?
Response: Yes. This is one of the proposed project changes described in Section B of the March 26, 2024 Staff Report.

Attachment 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
March 5, 2024

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robert Harary, P.E, Director of Public Works APPROVED BY: Chip Rerig, City Administrator
SUBJECT:

Receive a presentation on the proposed Fiscal Year 2024/25 Capital Improvement Program and Five-Year Capital Improvement Plan, and provide direction to staff RECOMMENDATION:

1. Receive a report regarding:

Capital improvements and key operating budget projects completed, or scheduled to be completed, in Fiscal Year (FY) 2023/24
Projects recommended to be cancelled or modified
Capital projects funded in (or prior to) FY 2023/24 that are recommended to be carried over, with remaining funds, into FY 2024/25
Potential new capital improvement projects for FY 2024/25:

Carry-over paving, drainage, and facility renovation projects requiring supplemental funding for construction
Potential new projects funded by the Vehicle and Equipment Fund Potential new projects funded by the Capital Improvement Fund Funding and staffing resource limitations to complete additional projects Introduction of the Updated 5-year Capital Improvement Plan (FY 2024/25 through 2028/29)

2. Provide guidance regarding:

Total number of FY 2024/25 projects to be funded
Funding priorities for future Capital Improvement Projects BACKGROUND/SUMMARY:

Executive Summary
This report outlines 15 capital improvement projects completed, or will be completed, in FY 2023/24, 14 operating budget projects completed in FY 2023/24, and 4 projects that are recommended to be cancelled or modified. Next, 14 current FY projects, with a remaining balance of approximately $5.9 million, are proposed to be carried over into FY 2024/25.

Attachment 2
Key messages/recommendations to highlight in this year's introduction of the FY 2024/25 CIP:
6 carry over projects (2 paving, 2 drainage, and 2 facility renovations) are designed and "shovel ready" for construction. However, they require supplemental funding of $1.7M to complete. FY 2024/25 capital funding should be programmed to construct these projects prior to planning or funding any new projects.
6 new vehicle and equipment funded projects, valued at $545,000, have been identified for consideration for FY 2024/25. Should sufficient funding be available, all of these projects should be considered as the acquisition of vehicles and equipment requires less time and resources versus multi-year infrastructure projects which requires engineering, environmental permitting, public bidding, and construction.
12 potential new capital projects, valued at $2.88M, have also been identified for FY 2024/25 capital funds. Staff recognizes all of the projects have merit; however, the total cost of the projects exceeds available funding. More importantly, even without the addition of these new projects, the City's project management resources have no additional capacity over the next year.

Setting funding availability aside, the total number of CIP Projects programmed to begin in FY 2024/25 should be limited to projects that are "shovel ready" and able to be started with the staff resources available. Therefore, only a minimal number of critical new CIP projects should be added for FY 2024/25. This approach will ensure a more manageable and achievable plan for the next year.

Capital Project Definition
While reviewing capital projects, it is helpful to have a common understanding of what constitutes a “Capital Project.” The Government Accounting Standard Board uses the term “capital assets” to include “land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, historical treasures, infrastructure, and other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.” For the City of Carmel-by-the-Sea, staff recommends that we continue to define a Capital Project, or a Capital Outlay, as an asset with any single component or piece of equipment that costs more than $10,000 and has an expected useful life exceeding ten (10) years.

Some of the projects listed below, such as reports and plans, may not fall under the true definition of a capital project. However, some reports may include recommendations for future capital projects. One example would be the Coastal Engineering Study which has identified numerous physical improvements to be made along the shoreline over the next several years. Other projects are considered one-time special projects designed to meet regulatory requirements, address public safety needs of the community, and/or enhance operational effectiveness.

Infrastructure Needs
A preliminary 5-year Capital Improvement Plan (CIP) is included in Attachment 1. This 5-year CIP framework provides information on the needs for necessary infrastructure for the upcoming fiscal year, as well as a forecast for the subsequent four years. Many of these needs have been identified through assessments and plans for City assets, including:

Attachment 2
2013 Carmel Facilities Assessments
2018 ADA Transition Plan
2018 MTNP Stream Stability Study
2020 Storm Drain Master Plan and 2023 Master Plan Update 2022 Climate Action and Climate Adaptation Plans
2023 Street Saver Pavement Management Plan/Update
2023 Electrical Panel Studies (City Hall, Fire Station, Vista Lobos) 2023 Facility Condition Assessments (City Hall, Fire Station, Public Works, Vista Lobos) 2023 Police Building Condition Assessment
2023-2024 Coastal Engineering Study, Phase I
City Council Strategic Priorities list
This CIP provides a framework for the Council to allocate funding for the most critical projects over time.

1. Projects Completed in Fiscal Year 2023/24
Fifteen (15) capital improvement projects, with a total value of approximately $2,971,000, were completed in Fiscal Year 2023/24, or are anticipated to be substantially completed by June 30, 2024, as tabulated below:

No. Project
FY 24 City
Funds
Ext. Funds
1 ADAUpgrades,Year6 $20,000
2 City Hall Retaining Wall Repair 170,000
3 Coastal Engineering Study, Phase I 233,000
4 Electrical Panel Assessments: City Hall,
Fire Station, Vista Lobos, Ocean/Junipero
Median
75,000
5 FY 22 Paving Project (Junipero, Santa Fe,
San Carlos, Camino del Monte/Junipero, San
Carlos Bike Lane, 4 Sidewalk Repairs)
878,000 $364,000
6 Harrison Memorial Library Exterior and
Partial Interior Painting, and Sunset Center
North Wing Exterior Painting
440,000
7 IT Servers 50,000
8 MTNP: Water Tank and Pump House
Removal and Well Decommissioning
121,000
9 Police Radios Lease, Year 3 30,000
10 Sunset Center Bollards (8) 20,000
11 Sunset Center Carpenter Hall Heater
Replacement
45,000
12 Sunset Center Portico Design 40,000
13 Sunset Center – Retaining Walls 40,000
Attachment 2
Repairs Design
14 Urban Forest Master Plan* (Strategic Priority)
* Outreach and Tree Ordinance Updates
continues
225,000
15 Vehicles: 2 Forestry trucks, 2 Police EVs 220,000
Total $2,607,000 $364,000
Last year, a change in strategy was implemented in which ongoing, maintenance-oriented projects were budgeted into the applicable department’s operating budget, rather than including such projects into the Capital Improvement Program, even if the budget for these maintenance-oriented projects exceeded $10,000.

As a review of this change in strategy, the following fourteen (14) additional projects, with a total value of approximately $329,000, were funded in the FY 23/24 Operating Budget and were completed, or are in anticipated to be substantially completed, by June 30, 2024:

No. Project City
Funds
External
Funds
1 Beautification - Ocean Avenue Medians
Renovation with Carmel Cares
(Strategic Priority)
$25,000 TBD
2 Fire Station Deck Resurfacing 5,000 $5,000
3 Forest Hill Park and North Dunes
Split Rail Fences
9,000
4 Forest Hill Park - Nature Play Equipment
(Leadership Carmel Legacy Project
Donation)
0 5 MTNP Eleventh Avenue Footbridge
Reconstruction, Entry Road, and Gate
8,000
6 MTNP Tree Removals (2023 stormdamaged), 36 removals, 7 safety pruning75,000 7 North Dunes Habitat Restoration, Year 8 60,000
8 Park Branch Library Dumbwaiter
Decommissioning
15,000
9 San Antonio Pedestrian Pathway Repairs
– Structural Design
25,000
10 Scenic Pathway Gardeners (Carmel
Cares)
28,000
11 Storm Water Ordinances
(Strategic Priority)
0 12
Sunset Center Fire Pump
Recirculation System
8,000
13 Trash Containers: 20 Dual Trash &
Recycling, 10 Trash Only
46,000
14 Wildfire Risk Assessment Plan
(Strategic Priority)
20,000
Attachment 2
Total $324,000 $5,000

2. Prior Projects Recommended to be Cancelled or Modified Four (4) projects are recommended to be cancelled or modified as discussed below.

Harrison Memorial Library Backup Generator: During preliminary design, this project was determined to be cost-prohibitive or too impactful to a historic building. Alternative measures should be included in the planned Library Master Plan renovation projects. Therefore, this separate project should be cancelled.

Harrison Memorial Library Carpet Replacement: Carpeting is planned to be included in the planned Library Master Plan renovation projects. Therefore, this separate project should be cancelled.

North Dunes Habitat Restoration Interpretive Signage and Split Rail Fencing ($25,000 donation): While several small donations have been received over the past two years, none have sufficient to design and install the desired, upgraded interpretive signage. Therefore, this part of the project should be deferred until specific funding has been programmed. The Split Rail Fencing portion of the project was approved by the Forest and Beach Commission in January 2024, and installation is scheduled in the Spring using Public Works/Street Maintenance funds. Furthermore, ongoing habitat restoration is ongoing and will continue to be budgeted under the Public Works/Environmental Programs operating budget.

Resilience Infrastructure Planning and Design: As recommended in the Climate Adaptation Plan, this project involves developing plans for sustainable backup power to provide continued operations of critical facilities. Preliminary review suggests focusing on the Police and Public Works facilities, and potentially include Vista Lobos, in the event of an extended power outage. While this project is still necessary, Staff recommends that this Project be modified by integrating it into the Police Building Project as originally intended along with the remaining balance of approximately $83,000, rather than advancing this into future fiscal years as a separate project.

3. Projects Funded in (or prior to) FY 2023/24 that are recommended to be carried over to FY 2024/25
The following 14 capital improvement projects, funded in, or prior to, Fiscal Year 2023/24, but not fully completed, should be carried over into FY 2024/25. The total FY 2023/24 budget for these projects was $9,761,100 and an estimated balance of $5,872,659 is proposed to be carried over into FY 2024/25. The exact amount of the carry-over will not be known until the end of the current FY.

Vehicle and Equipment Fund:

Ambulance and Equipment/AED ($325,000): A contract to build the new ambulance with equipment for $410,000 was executed last year. Delivery is anticipated in December 2025. Funding of $275,000 from the Vehicle and Equipment Fund and a $50,000 donation will need to be carried forward until the invoice is due. Staff recommends carrying the funding over into FY 2024/25, and placing the estimated $85,000 balance for the ambulance into the 5-year CIP for Fiscal Year 2025/26 (Year 2).

Fire Engine (Prepaid $880,000 in prior FY): In October 2022, Council appropriated this funding and added the fire engine into the FY 2022/23 CIP. The Pierce Manufacturer Enforcer diesel fire Attachment 2
engine has been ordered with delivery anticipated by late 2025. Although the purchase is complete, the project is being carried over until delivery of the fire engine.

Capital Improvement Fund:

Annual Paving Project, FY 2023/24 ($1,096,000): At the April 4, 2023 meeting, Council adopted a list of streets to be included in the FY 2023/24 annual paving project. The City’s Maintenance of Effort contribution of $657,329 leverages $438,570 of external funds via TAMC from Measure X, Gas Tax, SB 1, and RSTP. The project includes design and construction of asphalt pavement overlays of five roadway segments, including Upper Ocean Avenue and Santa Lucia Avenue between Dolores Street and Rio Road, removal of failed pavement sections and providing a slurry seal on up to 21 road segments predominately in residential neighborhoods, and replacing broken concrete, asphalt, and brick sidewalks with permeable pavers along five road segments in the downtown area. Status: Wallace Group submitted the 30% design for City review. Additional funding is needed for construction as discussed in Section 4A below.

Coastal Engineering Study, Phase 2 ($500,000 - Strategic Priority): In March 2024, Council is anticipated to approve Amendment No. 2 to the Professional Services Agreement with EMC Planning Group, with subconsultants Integral Corporation and Haro, Kashunich & Associates, for a not-toexceed fee of $450,000, to prepare the Coastal Engineering Study, Phase 2. Phase 2 will focus on: hazards policy review and revisions, public outreach and engagement, socio-economic analysis, adaptation strategies and pathway development, and development of the City’s Local Coastal Program Amendment. This project is fully funded under a recently-executed Local Coastal Program Grant Agreement by the California Coastal Commission. Status: Phase 1 completed in FY 2023/24. Phase 2 to begin upon execution of the Amendment.

Concrete Street Repairs (FY 2022/23, $1,005,000): In January 2023, Council awarded a $189,667 Professional Services Agreement to BKF Engineers to design this project. The project includes repairs and resurfacing of concrete intersections at Ocean/San Antonio, San Carlos/Fifth, San Carlos/Sixth, and along Ocean Avenue, between Monte Verde and San Antonio, and along San Carlos between Fifth and Sixth. An ADA ramp and bulb outs are also included at the Junipero/Seventh intersection. The total project budget includes $441,300 in external funds (i.e.

Measure X, SB-1) plus the Maintenance of Effort requirement of $563,700. During design, the project scope increased along Ocean Avenue to include the three intermittent side streets up to the sidewalks, on both sides of Ocean Avenue. In September 2023, an Amendment was approved with BKF for $49,092. Status: Engineering and design are completed and are "shelf ready". However, the cost estimate well exceeds available funding. The balance of this project funding should be carried over into FY 2024/25, and additional funding will need to be allocated prior to advertising for construction bids as discussed in Section 4A below.

CIP Contingency Fund ($500,000): During FY 2023/24, $336,831 of this fund was used as follows: Award bid for FY 2022 Paving Project $262,779, award bid for MTNP Tank and Pump House Removal and Well Decommissioning Project $42,378, $17,860 for the Urban Forest Master Plan to cover unanticipated funding shortfall from CalFire Grant, and final payment of $13,814 for the electric Street Sweeper following 3CE reimbursement. Any balance should be carried over into FY 2024/25. Status: The MTNP 3 Stream Stability/Drainage Projects is currently out for bids. It is anticipated that the remaining balance of the Contingency Funds will be exhausted to award this construction contract.

Drainage System Repairs ($580,000): The 2023 City-wide Drainage Master Plan Update identified numerous spot repairs needed for our existing underground storm drain pipes, as well as significant Attachment 2
"bottlenecks" in the drainage system. In July 2023, Neill Engineers was issued a $159,100 Amendment to their Professional Services Agreement to design the Acacia Way headwall, and storm drainage upgrades along Eleventh Avenue (Carmelo to San Antonio), along Lincoln Street, from First to Second, along Second Avenue, from Lincoln to Monte Verde, and along Santa Fe from Eighth Avenue to the MTNP outfall. Remaining funding, of approximately $414,000, should be carried over into FY 2024/25 for construction, and additional funding will be required to complete this project.

Status: Design is 90% complete. Environmental documentation is currently underway for two locations, and one easement will need to be acquired prior to bidding. With a construction cost estimate at roughly $1M, additional funding will be needed as discussed in Section 4A below.

Facility Renovation Projects ($649,000): Six facility renovations were originally programmed with this Project. As noted above, two projects will be completed by the end of FY 2023/24 - the Harrison Memorial Library and Sunset Center painting projects - and two projects are recommended to be cancelled or deferred - the HML Backup Generator and HML Carpet Replacements which are assumed to be integrated into the Library Master Plan Program. Thus, the remaining funds of approximately $283,600 should be carried over into FY 2024/25 to fund construction of the remaining two projects which are for the City Hall Roof Replacement and the Sunset Center Cottage Window Repairs. Status: The City Hall Roof contract was extracted from a larger, bundled facilities renovation project which resulted in very high bid proposals which were subsequently rejected by Council. This project is anticipated to be advertised for bids this Spring with construction scheduled for the summer.

The Cottage Window Repairs will be advertised for bids following the City Hall roof replacement.

Supplemental funding is being requested for the City Hall Roof and Cottage Window Repairs Projects as discussed below in Section 4A.

Library Master Plan, Phase II-IV ($100,000): This project complements the Library’s Strategic Plan objective to develop facility plans for the Harrison Memorial and Park Branch Library buildings.

The Harrison Memorial Library is 96 years old, and the Park Branch Library was last significantly remodeled 35 years ago. Phases II-IV will encompass community outreach, conceptual designs, and construction documents for initial renovation contracts. Renovations to the facilities are intended to ensure that both library facilities are able to continue to serve the community well into the future.

Status: A Request for Proposals is being prepared to retain an architect to design the proposed renovations. Carmel Public Library Foundation will be embarking on a significant fundraising campaign to support proposed renovations to both library buildings.

Mission Trails Nature Preserve 3 Stream Stability/Drainage Projects ($85,000): This project, which consists of the first three of eight stream restoration and erosion control measures recommended by the MTNP Stream Stability Study, is partially funded by a California State Parks Per Capita Grant in the amount of $178,000. Acquisition of three environmental permits from regulatory agencies delayed the project for one year. Remaining funding of approximately $67,000 should be carried over in Fiscal Year 2023/24 for construction. Status: This project is currently being advertised for construction bids with an estimated cost of $510,000 and a bid opening scheduled for March 19 th
. It is anticipated that the remaining CIP Contingency funds will be required to award the construction contract. Further, supplemental funding may be required as discussed in Section 4A below.

Police Building Project ($3,239,000 - Strategic Priority): In January 2023, Council formed an Ad Hoc Committee, and in June 2023, awarded a $300,000 Professional Services Agreement to Indigo Architects. In FY 2023/24, Indigo prepared a draft Condition Assessment Report and developed Police space programming needs. In January 2024, the results of these tasks were introduced to Council with preliminary recommendations for advancing the project into schematic design to consider the possibility of constructing a new Police Building at a different site, or significantly renovating the Attachment 2
Police/Public Works building at the existing site. Several public meetings were held to solicit public input. In addition, a number of urgent safety repairs were completed in the Police Building, including electrical panels, steel doors, security systems, Dispatch Room renovation, and others. The FY 2023/24 project balance of approximately $2.6M to $2.8M should be carried over into FY 2024/25 to cover remaining costs for schematic design, cost estimating, and potentially commencing design development of a selected alternative. Funding should also be earmarked to continue with 4Leaf project management services and to make necessary safety repairs in the building. As listed in Section 4C below, two repairs are proposed to be funding from this project account: replacement of a garage roll up door for $30,000, and installation of a covering over the emergency generator for $15,000. Status: Additional public outreach in progress.

Scenic Pathway Hardscape Renovations ($100,000 City, $100,000 Donations): Carmel Cares continues to improve the Scenic Pathway. City expenses to date from this fund in FY 2023/24 has been minimal and includes additional lumber and hardware for barrier rail improvements. Proposed improvements along the Pathway include: signage, irrigation repairs, pathway trim edging, decomposed granite repairs, and other hardscape improvements. Remaining funds should be carried over into FY 2024/25. Also, Council requested staff and Carmel Cares to develop a holistic game plan to cover the complete renovation of the Pathway. Status: This game plan is currently under review as it may trigger State public works contracting regulations.

Shoreline Infrastructure Repairs ($350,000): The first phase of the Coastal Engineering Study included a Shoreline Condition Assessment. The Assessment concluded that 2-4 existing seawalls need repairs, with the Fourth Avenue Outfall as the highest priority. Similarly, of the 11 beach access stairs, 9 need repairs with four stairs now closed due to damage resulting from winter storms.

Finally, of the 6 rock revetments, 4 need repairs, 3 of which are high priority. Project funding for FY 2023/24 was set at $250,000; however, at the March 4, 2024 meeting, Council is anticipated to reallocate $100,000 that was originally earmarked to launch the Coastal Engineering Study, Phase 2 into this project, because Phase 2 is fully funded by the Coastal Commission LCP Grant. In November 2023, Council awarded an Amendment to the Professional Services Agreement with Wallace Group to provide project management services for this project for a fee of $64,485. The remaining funds should be carried over into FY 2024/25. Status: A Request for Proposal required to retain a consultant with expertise in environmental permitting, coastal and structural engineering, and cost estimating has been prepared. RFP release is pending consultation with the California Coastal Commission, staff evaluation of wooded stairs that can be repaired by City crews, and City emergency permitting.

Sunset Center – North Lot Electrical Panel ($100,000): In July 2023, Council awarded a $64,560 Professional Services Agreement to Advance Design Consultants for electrical engineering services associated with three projects, including this project for a fee of $18,240.

Based on the 30% design plans and consultations with PG&E and Sunset Center, the project will be able to provide EV charging stations all along the west wall of the parking lot. A two-pronged approach is being pursued. First, the existing, deteriorated electric panel along the Eighth Avenue ADA ramp will be relocated down into the parking lot and rebuilt. This relocated panel will be for commercial service for the parking lot lights. A new PG&E transformer (to be furnished by PG&E at no cost to the City) and electrical panel will also be installed to provide power to the proposed, and future, EV charging stations at discounted energy rates. It is anticipated to 3CE will provide a reimbursement for EV charging stations, but for an amount currently unknown. Remaining funds should be carried over into FY 2024/25. Status: Proceeding to 60% design, and engaging PG&E to design the new transformer.

4. Potential Capital Improvement Projects for FY 2024/25 Attachment 2
While 16 capital improvement projects were completed, or are anticipated to be completed during FY 2023/24, there are still 14 active projects that should be carried over into FY 2024/25. Numerous new projects have been identified, a majority of which were previously included in the prior 5-Year CIP forecast, and all project are needed and worthwhile. The following is a list of the most pressing or urgent projects as identified by staff. Therefore, the list below certainly does not identify all priority projects.

The fiscal impact to the FY 2024/25 Budget for Capital Improvement Projects cannot yet be assessed until specific capital projects are tentatively selected by Council. In other words, screening the projects at the March 5th meeting, and subsequently fine-tuning the list, will allow staff to focus on the highest priority projects, prepare project descriptions, and refine cost estimates for incorporation into the final CIP and Budget for FY 2024/25.

This year, staff will be presenting the proposed projects under three different categories as follows:

Carry-Over Paving, Drainage, and Facility Renovation Projects described in Section 3 above, but which require additional funding to proceed with construction Potential New Projects funding by the Vehicle and Equipment Fund Potential New Projects funding by the Capital Improvement Fund A) Supplemental Funding for Carry-Over Paving, Drainage, and Facility Renovation Projects No. Carry Over Paving Project
Project
Construction
Cost
Available
Funding
Additional
Funding
Needed
1 FY22 Paving 4 Bid Additives:
(San Antonio, 4th–8th, Monte
Verde, 4th-Ocean, Torres, 2nd
– 4th)
$835,000 0 $835,000
2 FY23 Concrete Street
Repairs: (Ocean, Monte Verde
to San Antonio, San Carlos,
5th to 6th, and Junipero at 7th
intersections)
2,815,000 $792,000 2,023,000
3 FY24 Paving Projects:
(4 overlays, 21 slurry, 5
sidewalk repairs)
1,682,000 918,000 764,000
4 FY 25 – No new project; MOE
($660k) + TAMC Match
($440k)
0 1,100,000 0
Paving Subtotals $5,332,000 $2,810,000 $2,522,000
At the November 2023 meeting, Council awarded a contract in the amount of $1,139,566 to Monterey Peninsula Engineering for construction of the Base Bid work for the FY 22 Paving Project. It was noted in that staff report that bid prices for paving work have significantly escalated since these prior year paving projects were initially estimated. Furthermore, the Concrete Street Repair Project had a significant, but necessary, scope increase associated with Ocean Avenue structural repairs and improvements to transitions to the intermittent side streets. At that time, staff suggested that no additional paving project designs commence for approximately two fiscal years until funding can be programmed to catch up with Attachment 2
construction.

Each FY, the City is obligated to invest Maintenance of Effort funding to maintain our transportation infrastructure to qualify for Measure X, SB-1, and other external funding. For FY 2024/25, with a City MOE of $660,000 plus an estimated TAMC match of $440,000, the total available to help catch up on the above carry-over projects is $1,100,000.

Staff proposes to reformulate the remaining portion of the FY22 and full FY24 paving projects listed above, and fully fund these two projects for construction in FY 2024/25 as follows. Combine Project 1 (FY 22 Bid Additives) plus Paving Project 3 (FY 24 Paving Projects). Total cost estimate needed for construction = $2,517,000. Funding available for Project 3 ($918,000), plus new MOE and TAMC funding for FY 25 ($1,100,000), plus reallocate $499,000 of the $792,000 from Concrete Streets Project 2, for a total funding of $2,517,000. This approach will allow us to complete two major paving projects next year. However, only $293,000 will remain available for the Concrete Streets, a $2.8M project, for FY 2025/26. Unless other funding is identified to cover this shortfall, the MOE and TAMC match for FY 2025/26 and FY 2026/27 should also be earmarked to cover the cost for construction of the Concrete Streets. This funding strategy is shown in the attached 5-year CIP.

No.

Carry Over Drainage
Project
Project
Construction
Cost
Available
Funding
Additional
Funding
Needed
5 Drainage System Repairs (4):

Acacia Headwall, Eleventh
Ave, Lincoln/Second, and
Santa Fe
$1,052,000 $414,000 $638,000
6 MTNP 3 Stream Stability/
Drainage Projects
510,000 408,000 102,000
Drainage Subtotals $1,562,000 $822,000 $740,000
For the Drainage System Repairs Project 5 above, additional funding of $638,000 is requested for FY 2024/25 to proceed with construction.

For the MTNP Drainage Project 6 above will have more precise costs following the upcoming bid opening.

It is anticipated that using the available funding of $67,000 carry-over funding, plus the $178,000 Per Capita Grant (not yet received), plus the remaining balance of the CIP Contingency Fund of $163,000, we should be able to award the Base Bid of two of the three projects, and a supplemental allocation of $102,000 for FY 2024/25 should be able to cover the third project.

No.

Carry Over Facility
Renovation Project
Project
Construction
Cost
Available
Funding
Additional
Funding
Needed
7 City Hall Roof Replacement $350,000 $183,000 $167,000 8 Sunset Center Cottages
Window Repairs
200,000 100,000 100,000
Facility Renovation
Subtotals
$550,000 $283,000 $267,000
The City Hall Roof Replacement and Sunset Center Cottage Window Repairs were both included in the FY 2023/24 Facility Renovation Project, with four other projects, and which had an initial budget of $649,000.

Attachment 2
Two of the four projects are recommended to be cancelled/deferred in Section 2 - Harrison Memorial Library Carpeting Replacement and Backup Generator Project.

A construction contract in the amount of $392,150 was awarded to Color New Company in January 2024 for the Sunset Center North Wing Exterior Painting Project and the Harrison Memorial Library Exterior and Interior Painting Project. A deductive change order of $85,000 was negotiated with the contractor due to the reduction in interior painting in the library. Additional costs for this project included project management services by Ausonio, Inc., architectural services by Ten Over Studio, and hazardous materials testing and abatement monitoring by M3 Environmental. An estimated balance of $283,000 is recommended to be carried over into FY 2024/25 to cover the above Projects 7 and 8; however, a combined Supplemental allocation of $267,000 will be needed to complete these projects.

Supplemental Funding Summary
No.

Carry Over Projects
Summary
Project
Construction
Cost
Available
Funding
Additional
Funding
Needed
1-3
FY22 Bid Additives + FY24
Paving
$2,517,000 $1,417,000 $660,000
4 FY25 TAMC Match 440,000
5 Drainage System Repairs (4) 1,052,000 414,000 $638,000 6 MTNP 3 Stream Stability/
Drainage Projects
510,000 408,000 102,000
7 City Hall Roof Replacement 350,000 183,000 167,000
8 SC Cottage Window Repairs 200,000 100,000 100,000
Additional Allocation
Needed
$4,629,000 $2,962,000 $1,667,000
B) Potential New Projects: Vehicle and Equipment Fund
No. New Project Description
Estimated
Cost
Notes
1 Council Chambers AV
Upgrade
$60,000
2 Core Networks (IT) 50,000
3 Network Firewalls (IT) 180,000
4 Police EV Patrol Vehicle
(2017)
75,000
Assume $15k 3CE
Reimbursement
5 Police Radios, Year 4 of 6 30,000
6 Public Works Dump Truck
(1995)
150,000
Total $545,000
C) Potential New Projects: Capital Improvement Fund
No. New Project Description
Estimated
Cost
Services
1 ADA Upgrades, Year 7 $20,000
Attachment 2
2 CIP Contingency Fund
FY25
400,000
3 Junipero Bypass Drainage
System
175,000 Design
4 Lincoln/Fourth Trestle
Bridge
175,000
Environmental Permits and
Design
5 MTNP Laiolo Bridge and
Path Realignment
125,000
Environmental Permits
and Design
6 Norton Court Garage –
Security Access System
15,000
7 Park Branch Library – Windows & Dry Rot
Repairs
45,000
8 San Antonio Pathway
Reconstruction
275,000 PM and Construction
9 Shoreline Infrastructure
Repairs, Fourth Avenue
Outfall Reconstruction
250,000
PM, Environmental Permits
and Design
10 Sunset Center – Portico 450,000
PM, Design, and
Construction
11 Sunset Center – Retaining
Walls Repairs
550,000 PM and Construction
12 Vista Lobos – EV
Chargers Installation and
Building Electrical Panel
400,000
Final Design and
Construction, Partial 3CE
Reimbursement ($60k)
Totals $2,880,000
Resource Limitations
Please refer to the Fiscal Impact section of the report for anticipated funding available for the Vehicle and Equipment and Capital Improvement Funds for FY 2024/25. Available funding is recommended to be allocated to already designed, "shovel ready" projects that can proceed into construction with supplemental funding. As shown in Section 4A above, $1,667,000 is needed to complete these projects. Therefore, the list of projects in Sections 4B (Vehicle and Equipment Fund) and 4C (Capital Fund), should be significantly trimmed back to meet the anticipated budget, despite the fact that each project has merit.

Staffing capacity has also an ongoing concern. Since the CIP funding resumed following the Covid Pandemic, the City has relied on three outside project management consultants (4Leaf, Ausonio, Inc., and Wallace Group) to manage (currently) 10 capital projects. While they are providing excellent services, the added cost of outside project management is not sustainable in the long term and has contributed, along with inflation, material availability, and construction labor shortages, to the higher than estimated project costs. Also, the in-house project manager is working on an additional eight capital projects, as well as several large utility permits and special projects. As discussed in Section 3 above, 14 projects are proposed to be carried over into FY 2024/25. Even if no new capital projects are funded for FY 2024/25, there is still a full year of workload for our project manager and project management consultants.

5. Introduction of the Updated 5-Year Capital Improvement Plan The updated 5-year CIP Exhibit is shown in Attachment 1. Although only the first Fiscal Year (2024/2) Attachment 2
would be funded as part of the City Budget, the remaining 4 years serve as a planning tool to identify in advance anticipated future projects.

The 5-year CIP is a “snap shot” in time of anticipated needs for future infrastructure revitalization funding in the outer years. As a dynamic planning document, the CIP for Years 2-5 is subject to change as updated information becomes available. A multi-year plan also accommodates scheduling larger projects into multiple years to allow more projects to be underway concurrently, and to allocate construction funding only when those funds are needed.

Note that the needs for infrastructure renewal and facility repairs far exceed the anticipated revenue over the subsequent four years as well.

The following are key projects, by asset category and preliminary budget estimates, for Years 2-5 only:

Drainage: Includes highest priority drainage repairs and upsizing for 20-year storm events as identified in the 2023 Storm Drain Master Plan Update, bottleneck reconfigurations, and CDS reconstruction = $3.33M.

Streets: Annual paving MOE and TAMC matchfunding forYears 2 and 3 are earmarked forthe FY23 Concrete Street Repair Projects. For Years 4 and 5, traditional paving overlays, micro-surfacing treatments, slurry seals, sidewalk repairs, parking lot resurfacing, and a bicycle master plan are proposed = $3.44M City plus $1.81M external funds via TAMC.

Facilities: As a placeholder, a total allocation of $22M is included to cover final design and construction of a Police Building Project (whether a new station or renovation of the existing building) plus launching the design of the Public Works building renovations. This major project will obviously require a dedicated funding source once a project concept is approved, and these “plug in” numbers need to be adjusted as more information and scheduling becomes available.

Additional facility renovation projects include relocation and renovation of the Scout House wherein the sale of the existing parcel may offset the costs for renovation, critical repairs/code corrections to City Hall and the Fire Station, repairs to park restrooms, and facility condition assessments, painting, and railing repairs = $25.15M.

Forestry Parks, and Beach: Design and construction of the remaining 5 MTNP stream stability projects should continue during this time. Funding for construction of the MTNP Laiolo Bridge is proposed in Year 2, for a total of = $1.50M.

Fleet and Equipment: Replace aging Police, Fire, and Public Works vehicles with Electric Vehicles whenever possible. Replace broken and outdated heavy equipment, including Street’s dump truck and asphalt patch truck, Forestry’s bucket truck and water truck, Police’s speed radar trailer and animal control vehicle, and other vehicles and equipment nearing the end of their useful lives. Complete funding for the Police radios lease and the ambulance purchase = $1.48M plus $0.12M 3CE rebates.

Environmental and Climate Change: Shoreline infrastructure repairs, notably reconstruction of the Fourth Avenue outfall/wall, as well as for stairs and revetments, and climate action projects and energy upgrade initiatives = $3.85M.

I T: Equipment replacements, security upgrades, Police records management system, and GIS applications expansion = $0.58M.

Attachment 2
Library: It is difficult to estimate costs for the library as major renovations proposed under the Library Master Plan are largely subject to donor funding. As a placeholder, for Years 2-5, the 5-Year CIP plan assumes the design and construction of the first two or three renovation projects with a cost of $4M, primarily funded by private donations, but with a City matching contribution of $200,000 per year = $0.8M plus $3.2M donations. These “plug in” numbers need to be adjusted as more information and scheduling becomes available.

Years 2 - 5 Needs Summary:

The total estimated investment of City funds identified for Years 2-5 is $42.2M. This amount clearly exceeds anticipated CIP fund revenues over those four years of $5.1M plus any ending fund balance that may be available in those future years. However, without proper investment, the City's infrastructure noted will further decline into worsening conditions with more costly deferred repairs. Therefore, additional revenue sources should be considered.

6. Council Guidance
Staff is seeking Council's direction on the following issues. Note that this is just the first review and screening of potential projects. Staff will return at the April 2, 2024 meeting to refine the potential projects based on comments received on March 5th.

Acceptance of the 15 capital improvement projects completed, or anticipated to be completed, in FY 2023/24 as listed in Section 1 above
Confirmation to cancel or modify the 4 projects described in Section 2 above Confirmation to carry over 14 projects from FY 2023/24, including their remaining project funds, into FY 2024/25 as described in Section 3 above
Review potential projects for the FY 2024/25 CIP, including supplemental funding for carry over paving, drainage, and facility renovation projects, and new projects identified for funding by the Vehicle and Equipment and Capital Improvement Funds as listed in Section 4 above Review the preliminary 5-Year CIP, Attachment 1, including the preliminary list of identified projects for Years 2 - 5 as described in Section 5 above
Add, delete, or modify identified projects considering public comments and as desired by Council, and direct staff to return at the April meeting to refine the list of proposed projects for a second review Upon Council’s tentative approval in April, the CIP document will be presented to the Planning Commission in May for a General Plan consistency review as required by State law and the City’s Municipal Code.

FISCAL IMPACT:

The preliminary amount of CIP project funding available to be carried over into FY 24/25 is approximately $5.9M. This amount will be refined during the remainder of the current FY 23/24. For comparison purposes, approximately $6.8M was carried over from prior fiscal years into the FY 23/24 CIP budget.

The additional fiscal impact for FY 24/25 cannot yet be assessed until specific projects are selected by the City Council.

Attachment 2
Carry-Over Paving, Drainage, and Facility Renovation Projects requiring Additional Funding: Staff recommends that the FY22 and FY24 paving projects, two drainage projects, and two facility renovation projects, most of which have already been designed, bid, and/or are “shelf ready” for bidding, be funded before allocating capital funds to new projects that have not yet been started. As noted above a total of $1,667,000 of City funds are needed to complete these projects Potential New Projects - Vehicle & Equipment Fund: Six (6) new vehicle and equipment projects are proposed for funding at an estimated cost of $545,000. The City recognizes a 10% reserve in the Vehicle and Equipment fund balance for replacements. For FY24/25, the Vehicle & Equipment Fund reserve balance is estimated to be $310,000.

Potential New Projects - Capital Improvement Fund: Fourteen (14) additional projects were listed above with a total estimated cost of $2,955,000. Staff recommends that this list be slimmed down to fit into the available budget.

PRIOR CITY COUNCIL ACTION:

None for Fiscal Year 2024/25.

ATTACHMENTS:

Attachment 1) Preliminary 5-Year Capital Improvement Plan Attachment 2
EXTERNAL FUNDING 2/23/24 For March 5, 2024 Council Meeting Category Last Fiscal Year FY 23/24 Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 FY 2023/24 Budget Status FY 2024/25 Estimate FY 2025/26 Estimate FY 2026/27 Estimate FY 2027/28 Estimate FY 2028/29 Estimate Contingency CIP Contingency 500 Carry Over CIP Contingency 400 CIP Contingency 250 CIP Contingency 250 CIP Contingency 250 CIP Contingency 250 $1,900 $ 500 $ 400 $ 250 $ 250 $ 250 $ 250
Drainage System Repairs (4) Carry Over 580 Drainage Repairs - Supplemental 638 Junipero Bypass Construct Ph 1 750 Junipero Bypass Construct, Ph 2 1000 Drainage Repairs - Design 250 Drainage Repairs Construct 800 Drainage Junipero Bypass Pipe - Design 175 4th Ave CDS - Design 4th Ave CDS - Construction 450 75 $4,718 $ 580 $ 813 $ 750 $ 1,075 $ 700 $ 800
FY 22 Paving Overlay/Micro Surf 543 Done FY25 Paving Allocate to FY22 & FY24 660 FY26 Allocate to Concrete Streets 670 FY26 Allocate to Concrete Streets 680 FY28 Paving, Bike, S/W 690 FY29 Paving, Bike, S/W 700 Streets TAMC: SB1, X, HUTA, RSTP 335 Done TAMC: SB1, X, RSTIP, HUTA 440 TAMC: SB1, X, RSTIP, HUTA 445 TAMC: SB1, X, RSTIP, HUTA 450 TAMC: SB1, X, RSTIP, HUTA 455 TAMC: SB1, X, RSTIP, HUTA 460 SC - Retaining Walls - Design 40 Done SC Retaining Walls - Construction 550 Resurface Parking Lots Bicycle Master Plan 70 300 Resurface Parking Lots 300 FY 23 Concrete Street Repairs Carry Over 564 San Antonio Pathway - Construction 275 Pavement Survey Update 30 TAMC: SB1, X, RSTIP, HUTA Carry Over 441 Lincoln/4th trestle bridge - Design, Env 175 Lincoln.4th trestle bridge - Const 825 FY24 Paving Overlay, Slurry, S/W 657 Carry OverTAMC: SB1, X, RSTIP, HUTA 439 Carry Over $11,194 $ 3,019 $ 2,100 $ 2,240 $ 1,230 $ 1,445 $ 1,160 ADA Updates - Year 6 Done 20 ADA Updates - Year 7 20 ADA Updates - Year 8 ADA Updates - Year 9 20 ADA Updates - Y 20 ear 10 20 ADA Updates - Year 11 25 Facilities City Hall Retaining Wall Repair 170 Done Scout House Relocate-PM, Env, Des 250 Scout House Relocation 350 Scout House Renovation 500 Elect Panels (CH, FS, VL, Ocean) 75 Done Vista Lobos: EV Chargers & E Panel 4 Assess Facilities (Flanders, RRs) 85 Sell 00 Scout House Property TBD Sunset Center Ext Painting Done 3CE EV Chargers & Electrical 60 250 Fire Station Painting Flanders Structural Repairs 250 100 FS FCA: Roof, Windows, Alarms 500 Sunset Center - 8 Bollards 20 Done Norton Garage - Secure Access 15 Design Repairs - CH, FS per FCA 150 CH FCA: Fire, Doors, Lighting 400 Sunset Center Railings 225 SC - Carpenter Hall Heater 45 Done Fire Backflows to Code (3 bldgs) 150 Park Restroom Repairs 100 Sunset Center - Portico - Design 40 Done Sunset Center Portico Construction 450 Sunset Ctr Painting, Ph 2 250 Police Building Project 3,239 Carry Over PD/PW Gen Cover (PD) - Police Building Project - Design 1000 Police Building - Construction 10,000 Police Building Construction 10000 PW Building Reno - Design 1,000 Resilience Infr. Pilot Design 85 Merge w/PD
City Hall Roof Replacement Carry Over City Hall Roof - Supplemental 16 160 7 Sunset Ctr Cottage Windows Carry Over Sunet Ctr Cottage Windows - Sup 100 pl 100 Sunset Center - N Lot Electrical 100 Carry Over
$30,911 $ 4,304 $ 1,212 $ 2,005 $ 11,120 $ 11,245 $ 1,025 MTNP Tank & Well Demo 121 Done MTNP Laiolo Bridge - Env, Design 125 MTNP Lailo Bridge Construct 125 Forestry, Urban Forest Master Plan 75 Done
Parks & Beach Urban Forest MP CalFire Grant Done 150
N Dunes Split Rail + Signage Fence Done MTNP - 3 Drainage Supplement 25 al 102 MTNP Stream Projects 4-5 Design 125 MTNP - Stream 4-5 Construct 500 MTNP-Stream 6-7-Design 150 MTNP-Stream 6-7-Design 600 MTNP - Stream 3 Drainage Carry Over 85
MTNP - Stream 3 Drainage Grant 178 Carry Over -
Scenic Pathway Hardscape 100 Carry Over -Scenic Pathway Hardscape (CC) 100 Carry Over $2,561 $ 834 $ 227 $ 250 $ 500 $ 150 $ 600
Radios Lease, Year 3 30 Done Radios Lease, Year 4 30 Radios Lease, Year 5 30 Radios Lease, Year 6 30 Fleet & 2 Forestry & 2 PD Vehicles Done 220 PW Dump Truck (1995) 150 Forestry Bucket Truck (1995) 225 Facilities Truck EV (2007) 85 Streets Pickup EV (2005) 75 Streets Pickup EV (2012) 75 Equipment EV Vehicles - 3CE Grants 25 TBD Police EV Patrol (2017) 75 Fire Vehicle EV (2010) 75 Fire Inspector Vehcile EV (2012) 75 Forestry Water Truck (1994) 120 PD Detective Veh EV (2017) 75 (Vehicle & Ambulance & Equipment/AED Carry Over EV Vehicles - 3CE Grants 15 Ambu 275 lance - Balance of $410k 85 PD Admin Vehicle EV (2013) 75 Streets Patch Truck (1999) 100 PD Patrol Vehicle EV (2020) 75 Equipment Fund) Ambulance (Donation) Carry Over 50 Ambulance Heart Monitor 35 PD Animal Control Veh (2009) 75 PD Patrol Vehicle EV (2019) 75 Fire Engine (Prepaid $880k) 0 Carry Over PD Motorcycle EV (2008) 30 PD Radar Trailer (2009) 25 PD Parking Vehicle EV (2014) 45 EV Vehicles - 3CE Grants 20 EV Vehicles - 3CE Grants 30 EV Vehicles - 3CE Grants 30 EV Vehicles - 3CE Grants 35 $2,470 $ 600 $ 270 - $ $ 500 - $ $ 395 $ 445 $ 260
Coastal Engineering Study, Ph I Done 133 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Climate Action Plan Projects 50 Environmental Coastal Engineering Study, Ph 2 500 Carry Over Energy Upgrades 50 Energy Upgrades 50 Energy Upgrades 50 Energy Upgrades 50 & Climate Change Undergr. Utility Dist. (Rule 20A) 667 Carry Over Shoreline Inf Repairs, Stairs 350 Carry Over Reconst. 4th Outfall - Env, Design 250 Reconst. 4th Outfall - Const 900 Shoreline Inf Repairs - Const 1 750 Shoreline Inf Repairs - Const 2 750 Shoreline Inf Repairs - Const 3 750 Shoreline Inf Repairs - Design 2 150 Shoreline Inf Repairs - Design 3 150 $5,750 $ 1,650 $ 250 - $ $ 1,900 - $ $ 1,000 $ 850 $ 100 HML Generator - Cancel Core Networks 50 IT Network Refresh 60 IT Equipment 75 IT Equipment 80 IT Equipment 85 IT IT Servers 50 Done Network Firewalls 180 Wireless Access Point 50 GIS Upgrades 30 (Vehicle & Council Chambers AV Upgrade 60 PD Records Management 200 Equipment Fund)
$920 $ 50 $ 290 - $ $ 310 - $ $ 105 $ 80 $ 85
HML Carpet Cancel PBL - Windows, Dry Rot 45 -
Library HML Exterior + Part Interior Paint Done 140 MP Project #1 - Construction 200 MP Project #2 - Design 200 MP Project #2 - Construction 200 MP Project #3 - Design 200 Library Master Plan - Phases 2-4 100 Carry Over Library Master Plan Supplemental TBD MP Project #1 - Donations 800 MP Project #2 - Donations 800 MP Project #2 - Donations 800 MP Project #3 - Donations 800 $4,285 $ 240 $ 45 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Grand Totals $64,709 $11,777 $5,607 $9,205 $16,675 $16,165 $5,280 City Funding $56,184 $8,892 $5,092 $7,940 $15,395 $14,880 $3,985 External Funding $8,525 $2,885 $515 $1,265 $1,280 $1,285 $1,295 City of Carmel-by-the-Sea
5-Year Capital Improvement Plan
Excluding Operating Budget Projects
Attachment 1 Attachment 2
Capital Improvement Program:

Review Completed and Carry-Over Projects
and
First Review of Fiscal Year 2024/25 Projects
City Council Meeting
March 5, 2024

CITY OF CARMEL-BY-THE-SEA

CITY OF CARMEL-BY-THE-SEA
• Review CIP definition and sources of projects
• Review 15 CIP & 14 Operating Budget projects completed in FY 24 • Consider 4 projects to cancel/modify
• Review 14 carry-over projects
• Review initial CIP Projects for FY 2024/25:
o 6 shovel-ready carry over projects requiring $1.7M to construct o 6 vehicle and equipment purchases (Vehicle and Equipment Fund) o12 new CIP projects (Capital Fund)
• Introduction of Updated 5-year CIP

CITY OF CARMEL-BY-THE-SEA
FY 2024/25 CIP – Agenda
CIP Definition:
• Over $10,000
• Service life exceeding 10 years
Sources of Projects:
• ADA Transition Plan
• City Departments and Partner Organizations
• Climate Action/Adaptation Plans
• Coastal Engineering Study
• Council Strategic Priorities
• Facility Condition Assessments
• Storm Drain Master Plan, Update, and MTNP Stream Stability Study • Street Saver Pavement Program

CITY OF CARMEL-BY-THE-SEA
CIP Definition and Sources of Projects
15 Completed CIP Projects in FY 24
No. Asset
Category Project CityFunds
External
Funds
1 Streets FY22 Paving: Junipero, Santa Fe, San Carlos, Bike Route $878,000 $364,000 2 Streets Sunset Center – Retaining Walls - Design 40,000 3 Facilities ADA Upgrades, Year 6 20,000
4 Facilities City Hall Retaining Wall Repair 170,000
5 Facilities Electrical Panel Assessments (CH, FS, VL, Junipero) 75,000 6 Facilities Harrison Memorial Library Exterior Painting, Ltd Interior, and Sunset Center Exterior Painting 440,000
7 Facilities Sunset Center – 8 Bollards 20,000
8 Facilities Sunset Center Carpenter Hall Heater Replacement 45,000 9 Facilities Sunset Center Portico Concept Design 40,000

CITY OF CARMEL-BY-THE-SEA
15 Completed CIP Projects in FY 24
No. Asset Category Project City
Funds
External
Funds
10 Forestry/Parks MTNP Tank and Pump House Removal, Well Decom 121,000 11 Forestry/Parks Urban Forest Master Plan
(Outreach and Ordinances continue) 75,000
12 Fleet 2 Forestry Trucks & 2 PD Admin EV Vehicles 220,000 13 Fleet Police Radios Lease, Year 3 30,000
14 Environment Coastal Engineering Study, Phase 1 133,000 15 IT IT Servers 50,000
Totals $2,607,000 $364,000

CITY OF CARMEL-BY-THE-SEA
14 Operating Projects in FY 24
No. Asset Category Project City
Funds
External
Funds
1 Streets SanAntonio Pedestrian Pathway Repairs – Structural Design $25,000 2 Facilities Park Branch Library Dumbwaiter Decommissioning 15,000 3 Facilities Sunset Center Fire Pump Recirculation System 8,000 4 Facilities Fire Station Deck Resurfacing 5,000 $5,000 5 Forestry/Parks MTNP Tree Removals (2023 storm - 43 damaged trees), 75,000 6 Forestry/Parks Scenic Pathway Gardeners (Reimburse Carmel Cares) 28,000 7 Forestry/Parks Beautification - Ocean Ave. Medians Landscaping w/ Carmel Cares (Strategic Priority) 25,000
8 Forestry/Parks Wildfire Risk Assessment Plan (Strategic Priority) 20,000 9 Forestry/Parks Forest Hill Park and North Dunes Split Rail Fences 9,000 30,000 10 Forestry/Parks MTNP 11th Ave Footbridge, Entry Road, and Gate 8,000 11 Forestry/Parks Forest Hill Park - Nature Play Equipment (Leadership Carmel Donation) 0
12 Environment North Dunes Habitat Restoration, Year 8 60,000 13 Environment Trash Containers: 20 Dual Trash/Recycle, 10 Trash Only 46,000 14 Environment Storm Water Ordinances (Strategic Priority) 0 Totals $324,000 $35,000
4 Projects to Cancel/Modify
No. Asset
Category Project Reason Recommendation
1 Facilities HML – Backup Generator Cost Prohibitive Cancel as Separate Project.

Merge w/Master Plan
2 Facilities HML – Carpet Replacement Part of Master Plan Cancel as Separate Project.

Merge w/Master Plan
3 Facilities Resilience Infrastructure $83k Part of PD Building Project Transfer Funds to PD Project
4 Environment North Dunes – Interpretive Signs No Donor Funds Defer until Donor Funds Committed

CITY OF CARMEL-BY-THE-SEA
14 Carry-Over Projects (#1-8)
No. Asset
Category Project CityFunds
External
Funds
1 Fleet Ambulance and Equipment (delivery late 2025) $275,000 $50,000 2 Fleet Fire Engine – Prepaid $880k (delivery late 2025) 0 3 Streets FY 23 Concrete Street Repairs: Shovel Ready
Supplemental Funding Needed FY 26, 27 564,000 441,000
4 Streets FY 24 Paving Project: 60% Design, Shovel
Ready July Supplemental Funding Needed 657,000 439,000
5 Drainage Drainage System Repairs – 90% Design, Env &
ROW IP Supplemental Funding Needed 580,000
6 Drainage MTNP – 3 Stream Stability/Drainage Projects – Bidding - Supplemental Funding Needed 85,000 178,000
7 Environment Coastal Engineering Study, Phase 2 0 500,000 8 Environment
Shoreline Infrastructure Repairs – Staff to fix 5
Stairs; RFP for structural stairs, cost estimating
& environmental permitting for all repairs
350,000
14 Carry-Over Projects (#9-14)
No. Asset
Category Project CityFunds
External
Funds
9 Facilities
Facility Renovation Projects Remaining:
• City Hall Roof Replacement – Shovel Ready
• Sunset Center Cottage Window Repairs – Shovel Ready
Supplemental Funding Needed for Both
160,000
100,000
10 Facilities Police Building Project 3,239,000
11 Facilities Sunset Center North Lot Electrical Panels – 60% Design 100,000 TBD 12 Library Library Master Plan, Phases II-IV 100,000 TBD 13 Forestry,
Parks Scenic Pathway Hardscape Renovations 100,000 100,000 14 N/A
CIP Continency: $337k spent on FY Paving, MTNP
Tank/Welll, UFMP, Sweeper. Balance of $163k earmarked
for MTNP 3 Drainage Bid Award
500,000
Totals $6,810,000 $1,708,000
Comparison of Carry-Over Funding

CITY OF CARMEL-BY-THE-SEA
Total CIP Program No.

Projects
City Funds
(Balance of..)
External Funds
(Balance of…) Total
FY 22 + 23 Carry Overs 25 $6,676,000 $1,122,000 $7,798,000 FY 24 Carry Over 14 $6,810,000 $1,292,000 $8,102,000
Supplemental Funding Needs FY24/25
No. Shovel Ready
Carry Over Projects
Construction
Cost
Available
Funding
Additional
Funding
Needed
1-2 FY22 Bid Additives + FY24 Paving $2,517,000 $1,417,000 $660,000 FY 25 MOE
FY25 TAMC Match 440,000
3 Drainage System Repairs (4) 1,052,000 414,000 $638,000 4 MTNP 3 Stream Stability/
Drainage Projects 510,000 408,000 102,000
5 City Hall Roof Replacement 350,000 183,000 167,000
6 SC Cottage Window Repairs 200,000 100,000 100,000
Additional Allocation Needed $4,629,000 $2,962,000 $1,667,000

CITY OF CARMEL-BY-THE-SEA
FY 22, 23, 24 Street Projects

CITY OF CARMEL-BY-THE-SEA
FY 22 Bid Additives
FY 24 Paving
FY 23 Concrete Streets
Supplemental Funding - Streets
No. Carry Over
Street Projects
Construction
Cost
Available
Funding
Additional
Funding Needed
FY 22 Paving: (Junipero, Santa Fe, San
Carlos, Bike Route, 4 S/Ws)
Under
Construction
1 FY 22 Bid Additives: (San Antonio, 2 – 8,
MV, 2 – Ocean, Torres 2 – 4) $835,000 $0 $835,000
2 FY 24 Paving: 4 Overlays, 21 Slurry, 5
Sidewalks) 1,682,000 918,000 764,000
FY 23 Borrow Funding 0 499,000
FY 25 Funding – No New Project 0 MOE 660.000
TAMC 440,000
Total $2,517,000 $2,517,000 0
3 FY 23 Concrete Streets: (Ocean, Monte
Verde-San Antonio, San Carlos – 5-6,
Junipero/7th)
2,815,000 293,000
FY 26 & 27 Funding, No New Projects MOE 1,320,000
TAMC 880,000 322,000
6 Potential V&EF Projects FY 24/25
No. Asset
Category Project CityFunds
External
Funds
1 IT Council Chambers AV Upgrade $60,000
2 IT Core Networks
(2016 Arista Switches expire) 50,000
3 IT Network Firewalls
(2017 end of useful life) 180,000
4 Fleet Police Radios, Year 4 of 6 30,000
5 Fleet Police EV Patrol Vehicle (2017) 75,000 $15,000
6 Fleet Public Works Dump Truck (1995) 150,000
Total $545,000 $15,000

CITY OF CARMEL-BY-THE-SEA
12 Potential CIP Projects FY 24/25
No. Asset
Category Project CityFunds
External
Funds
1 Drainage Junipero Bypass Drainage Project – Design $175,000 2 Streets San Antonio Pathway Reconstruction –
PM, Construction 275,000
3 Streets Sunset Center Retaining Walls – PM, Construction 550,000 4 Streets Lincoln/Fourth Trestle Bridge – Env & Design 175,000 5 Facilities Sunset Center Portico – PM, Design & Construction 450,000 6 Facilities Vista Lobos: 3 EV Charging Stations and
Building Electrical Panel – Construction 400,000 $60,000 7 Facilities ADA Upgrades, Year 7 20,000
8 Facilities Norton Court Garage Security Access System 15,000 12 Potential Projects FY 24/25
No. Asset
Category Project CityFunds
External
Funds
9 Forestry/Parks MTNP Laiolo Bridge and Path Realignment – Env & Design 175,000
10 Environment Shoreline Wall: Fourth Ave Outfall –
PM, Env & Design 250,000
11 Library Park Branch Library – Windows and Dry Rot 45,000 12 Contingency CIP Contingency FY 25 400,000
Totals $2,880,000 $60,000

CITY OF CARMEL-BY-THE-SEA
Potential FY 25 Projects

CITY OF CARMEL-BY-THE-SEA
Dump Truck
Junipero Drainage
Bypass
Potential FY 25 Projects

CITY OF CARMEL-BY-THE-SEA
Sunset Center
Retaining wall Repairs
San Antonio
Pathway
Potential FY 25 Projects

CITY OF CARMEL-BY-THE-SEA
Sunset Center
Portico
Lincoln/Fourth
Trestle Bridge
Shoreline:

Fourth Avenue Outfall
Total Funding for FY 24

CITY OF CARMEL-BY-THE-SEA
Total CIP Program City Funds External
Funds
14 Carry Over FY 24 Projects $6,810,000 $1,708,000
FY 24 Supplemental Funding –
Shovel Ready Projects 1,667,000 440,000
6 New FY 25 Equipment/IT Projects 545,000 15,000
12 New FY 25 CIP Projects 2,880,000 60,000
32 Projects Totals $11,902,000 $2,223,000
General Comments:

1. Supplemental and Funding for 18 new FY 25 projects = $5,092,000; Should be reduced!

2. Staff completed 14 CIP Projects in FY 23 and 15 in FY 24

3. 14 Carry Over Projects is a full year of backlog
5-Year CIP: Funding Needs Years 2-5

CITY OF CARMEL-BY-THE-SEA
5 Year CIP
5-Year CIP: Funding Needs Years 2-5

CITY OF CARMEL-BY-THE-SEA
Asset Category Major Projects Estimate
Years 2 - 5
Drainage Junipero Bypass, 4th Ave. CDS, Priority Repairs $3,325,000 Street Improvements Concrete Streets, FY 28, 29 Paving 5,250,000 Facilities Police Building, Scout House Relocation, City Hall, Fire Station and Sunset Center Repairs, ADA 25,145,000
Forestry/Parks MTNP 2-4 Stream Stability Projects, Laiolo Bridge 1,500,000 Fleet Ambulance, Bucket, Water, and Patch Trucks 1,600,000 Environment Shoreline Repairs: Fourth Ave Outfall, Structural Stairs, Revetments , Climate Action Projects 3,850,000
IT Ongoing Equipment and Updates, PD Records 580,000
Library Master Plan Renovations 4,000,000
Contingency Contingencies 1,000,000
Total Needs $46,250,000
Recommendations/Council Direction

CITY OF CARMEL-BY-THE-SEA
• Accept 15 FY 24 CIP projects completed in FY 24
• Accept 14 FY 25 Operating Budget projects completed in FY 24 • Tentatively approve 4 projects to cancel/modify
• Tentatively approve 14 carry over projects from FY 24 into FY 25 • Tentatively approve Supplemental Funding for 6 of the carry over projects that are shovel-ready
• Refine initial list of 6 Equipment/IT Projects for FY 25 to meet budget • Refine initial list of 12 CIP Projects for FY 25 to meet budget • Guidance for first review of 5-year CIP
• Return in April for 2nd Review and Impacts to FY 25 Budget forecast Questions?