Proposed Five-Year
Capital Improvement Program
2022-2027
Redondo Beach City Council- June 14, 2022
FY 2021-22 CIP Highlights
Citywide Slurry Seal Project, Phase 2
City Council Chamber Improvements
Electric Vehicle Charging Stations
Morrell House Roof Replacement
Traffic Calming Projects
Sanitary Sewer Rehabilitation
Pier Restroom
Five-Year History
14 18
14 18
26 10
13 11 17
13 7
27 0
5 10
15 20
25 30
35 40
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-
22*
Projected
FY 2022-23
Projects by Fiscal Year
Projects in Design Completed Projects
$3.8
$5.1
$9.5
$13.3 $13.5
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
(millions)
Expenditures by Fiscal Year
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22*d FY 2022-23 Total Projects 62 69 68 82 112 122
Projects in Design 14 18 14 18 26 10
Projects in Construction N/A N/A N/A N/A 10 17
Completed Projects 13 11 17 13 7 27
Expenditures (millions) 3.8 5.1 9.5 13.3 13.5 N/A
*Staffing down 20%
Note: Staffing Levels for CIP is
approximately 6 FTE
CIP Projects per Fiscal Year
Estimated FY 2021-22 CIP
Carryover Funding
(as of 5-12-22)
Sewer Projects $ 8,143,921
Drainage Projects $ 1,590,230
Park Projects $ 3,299,605
General Improvement Projects $ 495,890
Street Projects $ 27,908,859
Public Facility Projects $ 6,640,724
Waterfront Projects $ 9,020,110
CARRYOVER GRAND TOTAL: $ 57,099,340
FY22-23 CIP Recommended Funding
Sewer Projects $ 4,786,340
Drainage Projects $ 1,383,000
Street Projects $ 6,184,809
Park Projects $ 530,000
Public Facility Projects $ 1,928,116
General Improvement $ 100,000
Waterfront Projects $ 18,775,380
TOTAL $ 33,687,645
FY 2022-23 CIP Summary
$57.1M Carryover Total for 112 Projects
$33.7M Recommended Appropriation
Total
$3.4M for 10 recommended projects
new to CIP
$30.3M for 37 existing CIP projects
$90.8M Total CIP Budget
122 Total Projects
112 existing projects
10 new recommended projects
Number of Projects per Category for FY
22-23
Sewer Projects
Drainage Projects
Park Projects
Street Projects
Waterfront Projects
Public Facility Projects
General Improvement Projects
FY 2022-23 CIP Project Highlights
Portofino Way Sewer Pump Station
Yacht Club Way Sewer Pump Station
Fulton Playfield Infiltration Project
Pier Parking Structure Critical Repairs
Pier Parking Structure Security
International Boardwalk Surface Repair
Dominguez Park Play Equipment
Torrance Blvd. Resurfacing
Traffic Calming Improvements
Pier Parking Structures
2021/22 Condition Assessment
City Council Presentation
June 14, 2022
Background
City owns 3 parking structures (PS) near the Pier
1 - North Pier PS
Built in early 1960s
2 - South Pier PS
Built in 1973
3 - Plaza PS
Built in 1981
Background
Walker Consultants performed the following Assessments of the PS for the City
• 2011 - Condition Assessment of all PS
• 2012 - Structural Analysis of North Pier PS
(Insufficient data on the occupied retail space due to limited access) • 2015 – Update of 2011 Condition Assessment
• 2021 – Condition Assessment of all PS & Structural
Analysis of North Pier PS
(Sufficient data through material testing in the vacant retail space) Pier Parking Structure
CIP FY 2022-23 Staff Recommendation
• Recommended Improvements
• North Pier PS Seismic Retrofit- $1.82M
• Waterproofing/Repairs (all PS)- $2.65M
• Subtotal - $4.47M
• Estimated Carryover Funding - $110,000
• Recommended Additional Funding FY 2022-23- $4.35M
Key elements of the project
Site Assessment
Identify Deficiencies and Prioritize Repairs
Prepare Cost Estimates
Develop Immediate, Short-, and Long-Term Asset
Management Plans
North Pier Seismic Evaluation
SOUTH PIER DEFICIENCIES
• Fair condition
• Concrete deterioration and delamination
• Spalling in floors, columns, beams, and soffits.
• Corrosion of embedded steel in concrete.
• Exposed and rusted slab mild steel reinforcement at
numerous locations.
• Waterproofing system deficiencies.
• Village Level wearing slab deterioration.
SOUTH PIER DEFICIENCIES
Concrete delamination, Village level (SH1-167) Exposed rebar on floor, Village level (SH1-180) Exposed rebar on floor, Pier level (SH2-8) Typical spalled and cracked pavers, Village level
(SH1-190)
NORTH PIER DEFICIENCIES
• Fair condition
• Concrete deterioration and delamination
• Spalling in floors, columns, beams, walls and soffits. • Corrosion of embedded steel in concrete.
• Exposed and rusted slab mild steel reinforcement.
• Waterproofing system deficiencies.
• Structural deficiencies in lateral load resisting system to withstand a code level seismic event
NORTH PIER DEFICIENCIES
Soffit slab deterioration and spall with
exposed reinforcement, Village Level (SH3-98) Concrete beam spall, Pier Level (SH3-201) Corroded beam ledge, Pier Level (SH3-136) Exposed rebar on wall, Basement Level (SH3-308)
PLAZA PARKING STRUCTURE
DEFICIENCIES
• Good condition
• Concrete floor deterioration and delamination.
• Concrete wall spalling with exposed rebars.
• Post-tensioned beam tendon damage.
• Waterproofing system deficiencies
PLAZA PARKING STRUCTURE
DEFICIENCIES
Soffit slab deterioration and spalls with
exposed reinforcement, Pier level (BA1-326) Cracks underside of concrete slabs, Pier level (BA1-319) Damaged beam P/T rebar, Basin level (SH2-174)
NORTH PIER SEISMIC
EVALUATION
Tier 1 Screening
Sizes of Beams, Columns, Slabs and Walls
Spacing and Size of Rebar
Structural Condition of Members
Identify potential seismic deficiencies
Tier 2 Evaluation
Material Testing
Concrete chemical testing
Concrete Strength
Linear Static and Dynamic Analysis
Identify seismic deficiencies with high degree of certainty Propose conceptual retrofit scheme and probable cost
Northridge Earthquake
North Pier Seismic Analysis
North Pier Seismic Retrofit
Basement Level
Deterioration Curve of Parking
Structures
Deterioration Curve of Parking
Structures
South Pier Chloride
Content –Pier Level
The chloride content
results indicate that the
original structural slab
contains high amounts of
chloride and therefore is
under accelerated
deterioration conditions.
North Pier Chloride
Content –Pier Level
The chloride content
results indicate that the
original structural slab
contains high amounts of
chloride and therefore is
under accelerated
deterioration conditions.
Recommended Seismic, Structural & Waterproofing
Repairs
Location
Budget Forecast -
5 yr Option
Budget Forecast -
10 Yr Option
FY 22-23
Recommendation
North Pier PS
Seismic Upgrade $ 1,820,000 $ 1,820,000 $ 1,820,000
North Pier PS $ 1,536,500 $ 2,272,500 $ 558,000
South Pier PS $ 14,299,500 $ 16,970,000 $ 1,967,000
Plaza PS $ 851,000 $ 858,500 $ 128,000
Total $ 18,507,000 $ 21,921,000 $ 4,473,000
*Based on Year 1 of 5-year Budget Forecast
North Pier PS and South Pier PS
Estimated Replacement Cost:
Total Area (SF)
$/SF of New
Construction +
Demo + 5% Inflation
Estimated Total
Replacement Cost
600,000 $ 109 $ 65,200,000
Municipal Bonding Options
City Council Presentation
June 14, 2022
Market overview
The current state of the municipal bond market has been and remains volatile given various economic and political events/circumstances
Inflation – generally driven by events such as the war in Ukraine, supply chain issues, a strong labor market, escalating commodity prices, and a generally hot U.S. economy – has caused a fairly steep and rapid increase in interest rates this year In response to stronger than anticipated economic growth, the Federal Reserve raised its Fed Funds benchmark target rate 25bps on March 16 followed by an uncharacteristic 50 bps raise on May 4; likely to increase rates at least two more times, if not more, this year
Notwithstanding the sudden increase in overall interest rates, tax-exempt bond rates remain in an historically low range
Kosmont Transactions Services | Proprietary Do Not Duplicate |1 Historical rates
The following graphs illustrate historical trends in the tax-exempt municipal bond market Kosmont Transactions Services | Proprietary Do Not Duplicate | 2 Market outlook
The rapid rise in interest rates has been followed by a recent pullback, indicating that there may have been an overcorrection
Municipal bond issuance volume remains strong (although less than in 2021 year to date)
The Bloomberg Interest Rate Forecast shows an expectation for rates to continue to rise, but modestly over the next 6 months
High inflation coupled with FOMC moves to increase rates to cool the economy have led to recession anxiety, which would likely result in lower overall interest rates
Kosmont Transactions Services | Proprietary Do Not Duplicate | 3 Potential financing approaches
KTS has been surveying the marketplace and believes that while the extreme low rates we saw in 2021 are no longer the norm, rates remain in an historically low trading range
The ability for the City to finance certain of its capital needs remains a viable option within the City’s budget constraints
Current estimates for funding capacity are as follows:
Kosmont Transactions Services | Proprietary Do Not Duplicate | 4 Annual Budget Payment: $1.5 Million $2.0 Million
Current Market Rates $26,665,000 $35,615,000
+50bps $25,083,000 $33,521,000
-50bps $28,386,000 $37,904,000
GENERAL NEXT STEPS TO
PROCEED
Work with City stakeholders to determine project(s) scope and bond issue size (1 – 2 months)
Staff
Budget and Finance Commission
City Council
If authorized, transact bond issue (approximately 3 months) Assemble financing team, prepare legal documents, apply for bond rating Market, sell and deliver bonds
Expend tax exempt bond proceeds within three (3) years of issuance Kosmont Transactions Services | Proprietary Do Not Duplicate | 5 Recommendation
Reconvene the Public Hearing and take testimony; and
Receive and File Budget Response Reports; and
Receive and File the 2021 Condition Assessment
Reports for the North Pier Parking Structure and the
South Pier and Plaza Parking Structures; and
Continue the Public Hearing to June 21, 2022