1.    Receive a report regarding:

• Capital improvements projects completed or scheduled for completion in Fiscal Year (FY) 2024/25

•  Projects recommended for cancellation

• Capital projects funded in (or prior to) FY 2024/25 that are recommended to be carried over, into FY 2025/26: Conglomerate Paving, Police/Public Works Building Project, Ambulance, Design for Shoreline Infrastructure Repair, Coastal Engineering, and Library Master Plan.

• Potential new capital improvement projects for FY 2025/26:
  • 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 2025/26 through 2029/30)

2.    Provide guidance regarding:

• Total number of FY 2025/26 projects to be funded

•  Funding priorities for future Capital Improvement Projects

Executive Summary

This report outlines 25 capital improvement projects completed or anticipated to be completed in FY 2024/25, as well as one project (Scout House Relocation) recommended for cancellation. Additionally, six ongoing FY 2024/25 projects, with a remaining balance of approximately $2,110,000, are proposed to be carried over into FY 2025/26 (this amount does not include the budget for the Police/Public Works Building).

Key messages/recommendations to highlight in the introduction of the FY 2025/26 CIP:

•  Six carry-over projects (Conglomerate Paving, Police/Public Works Building, Ambulance, Shoreline Infrastructure Repairs Design, Coastal Engineering, and Library Master Plan Administration) require supplemental funding of $2,110,000 to complete (this amount does not include the budget for the Police/Public Works Building).

• Eight new vehicle and equipment funded projects, valued at $530,000, are identified for consideration in FY 2025/26. If sufficient funding is available, all of these projects should be prioritized, as acquiring vehicles and equipment typically requires less time and resources compared to multi-year infrastructure projects, which involve engineering, environmental permitting, public bidding, and construction.

• 27 potential new capital projects, valued at $9,800,000, have also been identified for FY 2025/26. While staff recognizes the merit of all these projects, the total cost exceeds the available funding.

Capital Project Definition

To ensure clarity when reviewing capital projects, it’s useful to have a shared understanding of what constitutes a “Capital Project.” The Governmental Accounting Standards Board (GASB) defines capital assets as “land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, historical treasures, infrastructure, and other tangible or intangible assets used in operations with useful lives extending beyond a single reporting period.”

For the City of Carmel-by-the-Sea, staff recommends defining a Capital Project (or Capital Outlay) as an asset with a single component or piece of equipment that costs more than $10,000 and has an expected useful life of more than 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, these reports may include recommendations for future capital projects. For example, the Coastal Engineering Study has identified numerous physical improvements along the shoreline to be made over the next several years. Additionally, some projects are one-time special initiatives designed to meet regulatory requirements, address community public safety needs, and enhance operational effectiveness.

Infrastructure Needs

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

• 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 2024/25

Twenty-Five capital improvement projects, with a total value of approximately $11,614,000, were completed or are anticipated to be substantially completed by June 30, 2025. These projects are listed below:

Ongoing, maintenance-oriented projects have been included in the applicable department’s operating budget rather than the Capital Improvement Program, even if the budget for these maintenance projects exceeds $10,000.

2.    Prior Projects Recommended for Cancellation

 One project is recommended for cancellation:

•  Scout House Relocation

3.    Projects Funded in (or prior to) FY 2024/25 that are recommended to be carried over to FY 2025/26

The following six capital improvement projects, funded in or prior to Fiscal Year 2024/25 but not fully completed, are recommended to be carried over into FY 2025/26. The total budget for these projects in FY 2024/25 was $7,709.000, and an estimated balance of $2,110,000 is proposed to be carried over into FY 2025/26 (this amount does not include the budget for the Police/Public Works Building). The exact carry-over amount will not be known until the end of the current fiscal year.

Carry-Over Capital Improvement Projects

4.    Introduction of the Updated 5-Year Capital Improvement Plan

The updated 5-year CIP Exhibit is provided in Attachment 1. While only the first fiscal year (2025/26) will be funded as part of the City Budget, the remaining four years serve as a planning tool to identify anticipated future projects. Below is a brief overview of the potential new vehicle and equipment fund projects:

Potential New Vehicle and Equipment Fund Projects:

•  Radios Lease, Year 5 ($30,000): The City of Carmel initiated a lease for twenty-two (22) police radios in FY 2021/2022 to replace outdated hand-held radios. These radios are being leased/purchased at a cost of $30,000 per year over six (6) years, funded by the Vehicle and Equipment Fund. FY 2025/26 is the fifth year of this lease.

•  Public Works Compact Track Loader ($125,000): The purchase of a compact track loader will significantly improve the City’s beach maintenance operations. Currently, the lack of a dedicated equipment ramp for beach access makes transporting machinery onto the beach difficult and inefficient. This purchase will enhance our ability to perform essential tasks such as sand redistribution and erosion control on the Del Mar and Volleyball Dunes. These areas are crucial for both recreational use and ecological health, and proactive maintenance is vital for their preservation. The compact track loader will provide the necessary mobility and power to navigate the sandy terrain effectively. We are requesting the inclusion of a flail mower and a street broom as attachments to further broaden the machine's utility. The flail mower will assist in vegetation management throughout the City, and the street broom will be used for debris removal and maintaining cleanliness in the Del Mar parking lot. This proactive approach will save time and resources by preventing more significant issues from developing.
  
  
•  Public Works EV Trucks (2) ($150,000): The Public Works Department plans to replace a 2000 Dodge Dakota and a 2013 Ford F-150 by acquiring two Electric Vehicle (EV) trucks. These EV trucks will be used across all divisions of the Public Works Department. Given the department's heavy reliance on its fleet of trucks for routine maintenance, repairs, equipment transportation, and emergency response, the transition to EV trucks will reduce the City’s carbon footprint and lower fuel and maintenance expenses. Additionally, acquiring these EV trucks aligns with the State's mandate for increasing EV adoption in municipal fleets. By proactively transitioning to electric vehicles, the City demonstrates its commitment to environmental sustainability and compliance with state regulations. This initiative will position the City of Carmel as a leader in adopting clean energy solutions and contribute to a healthier environment for our community.
  
  
•  Fire Vehicle EV ($75,000): The Fire Department plans to replace a 2010 fire vehicle by acquiring an EV vehicle.
  
  
•  Ambulance Heart Monitor ($35,000): This project involves the purchase new monitors to improve emergency medical care by enabling real-time cardiac assessment during transport, ensuring faster, more effective treatment for patients with heart-related conditions.
  
  
•  Police Motorcycle EV ($30,000): The Police Department plans to replace a 2008 motorcycle with an EV police motorcycle.

Potential New Capital Improvement Fund Projects:

The City is evaluating a series of potential Capital Improvement Fund projects aimed at addressing key infrastructure and facility needs. These projects are designed to improve the functionality, safety, and sustainability of city assets, while also supporting long-term growth and enhancing public services.

•  Junipero Bypass Pipe - Design ($175,000): The design improvements aim to address capacity issues along Junipero and Ocean, including the installation of a parallel 30-inch pipe on Junipero Street between Fifth and Seventh Avenues and a parallel 24-inch pipe near Fifth Avenue and Torres Street. These upgrades will enhance flow and reduce hydraulic grade line (HGL) peaks. Coordination with the Mission Street Bypass and Fifth Avenue projects may also be considered during the design phase.

•  Resurface Parking Lots (CL, SC) ($300,000): The allocated funding will be used for the required asphalt pavement maintenance at the Children's Library and the Sunset Center Main Lot. This work will address necessary repairs and improvements to maintain the safety and functionality of the parking lots. The funding will cover resurfacing, patching, and other asphalt-related maintenance tasks.

•  Sidewalks ($500,000): Funding will be used for sidewalk repairs in areas that pose trip hazards, ensuring safer pedestrian access throughout the city. This will involve identifying and repairing damaged or uneven sections of sidewalk to prevent accidents and improve walkability. The repairs will focus on high-traffic areas and locations with the most significant safety concerns.

•  ADA Updates – Year 8 ($20,000): A $20,000 budget has been allocated for ADA upgrades within the city, aimed at improving accessibility for individuals with disabilities. The funds will be used to address areas in need of compliance, enhancing public spaces and facilities to ensure they meet ADA standards. Specific upgrade areas will be determined based on the city's infrastructure needs.

•  Sunset Center Retaining Walls - Construction ($400,000): Funding will be used for the construction of one structural retaining wall in the Sunset Center North Lot located on the north side adjacent to Eighth Avenue, which poses a hazard to the public. This wall has already been designed in the current year's CIP and requires funding for construction.

•  Fire Station Upgrades ($140,000): Funding to be used for upgrades to the Fire Station to accommodate a newly purchased fire truck. These upgrades will include modifications to the station’s bays, ensuring they are large enough to house the new equipment safely and efficiently.

•  Design Repairs – CH, FS per Facilities Conditions Assessment ($150,000): Funding to be used for repairs to City facilities as recommended in the Facilities Conditions Assessment prepared by Bureau Veritas. These repairs are necessary to address maintenance issues, ensuring the safety, functionality, and efficiency of city buildings. The improvements will help prevent further deterioration and reduce long-term repair costs.

•  Fire Backflows to Code (3 Buildings) ($200,000): Funding to be used for fire backflow improvements at three locations: City Hall, HML Library, and Park Branch Library, to bring them into compliance with current code requirements. These upgrades are essential to ensure the safety and effectiveness of the fire suppression systems at each facility. The improvements will address existing deficiencies and help meet regulatory standards.

•  Sunset Center Painting, Phase 2 ($250,000): Funding will be used for Phase 2 of painting the Sunset Center. This phase will complete the painting of areas not addressed in the previously completed work, enhancing the facility's appearance and protecting surfaces from wear and damage.

•  Police/Public Works Building Project (TBD): Project to be determined.

•  Picadilly Restroom Expansion Design ($70,000): Funding will be allocated for the design of an expansion to the Picadilly restroom, one of the City’s most heavily used facilities. During peak summer months, the line for this single-toilet restroom often extends to the sidewalk, highlighting the need for increased capacity.

•  Sunset Center Yoga Center Reroof ($100,000): Funding will be used for the roof replacement at the Sunset Center Yoga Center, which is over 30 years old and requires frequent maintenance. The new roof will address ongoing issues and provide long-term durability. This replacement will ensure the facility remains safe and protected from weather-related damage.

•  Park Branch Library Window Repairs ($50,000): Funding will be used for window repairs at Park Branch Library, which includes replacing 18 deteriorated double-pane windows. These windows have lost their insulation, resulting in a persistent steamy appearance, and the wood trim is also deteriorating. Once replaced, the windows will be restored, and the trim will undergo necessary painting.

•  Sunset Center Elevator Power Unit ($120,000): Funding will be used for the replacement of the Sunset Center's power unit, including the hydraulic valves. The existing system has reached the end of its useful life and requires an upgrade to ensure continued reliable operation.

•  City Hall Exterior Shingles ($70,000): Funding will be used for the repair and restoration of wood shingles on the exterior walls of City Hall, as they need maintenance and some may require replacement. This work will address areas of wear and deterioration, helping to preserve the building’s exterior. The project will ensure the structure remains protected and visually appealing.

•  MTNP Stream Projects 5-6 Design ($125,000): Funding will be used for Projects 5-6 as identified in the stream stability survey performed by Dudek. These projects include addressing bank erosion along Serra Trail and replacing a bridge over the tributary channel, as well as implementing bio-remediation measures. These efforts aim to improve stream stability, enhance environmental health, and ensure the safety of the affected areas.

•  Reconstruction of the Fourth Avenue Outfall – Construction ($900,000): Funding will be used for construction work to replace the outfall structure at 4th Avenue, which is showing significant structural deficiencies and is in a high level of disrepair. The existing structure is at risk of further deterioration, impacting the surrounding area. Design work for the replacement is being initiated in the current fiscal year, with construction aimed at restoring the outfall’s functionality, preventing further erosion, and ensuring the long-term stability of the area.

•  Sand Ramp at Eighth Avenue ($250,000): Funding will be used for the reconstruction of the access sand ramp near Eighth Avenue, which has been repeatedly damaged by winter storms and the impacts of sea level rise. The ramp no longer exists in its current location due to extensive damage. Design work for the new ramp will begin in the current fiscal year, with reconstruction aimed at ensuring safe and reliable access while addressing future environmental challenges.

•  Shoreline Repairs Stairs – Construction ($500,000): Construction ($500,000): Funding will be used for construction work to reconstruct stairs damaged by winter storms and the effects of sea level rise. The stairs located north of 10th Avenue and on Twelfth Avenue have sustained deterioration and damage from these storms. Design work for the reconstruction will begin in the current fiscal year, with the goal of restoring safe access while addressing future environmental conditions.
  
  
•  IT Network Refresh ($60,000) – Funding will be used to upgrade and modernize the City’s existing network infrastructure to enhance performance, reliability, and security. The City would replace outdated hardware, implement faster and more scalable solutions, and seamless connectivity for all departments and services. The project will focus on improving cybersecurity measures.

•  Wireless Access Point ($50,000) – Funding will be used to purchase and install new Wireless Access Points (WAPs) throughout city facilities to enhance wireless connectivity and ensure reliable, high-speed internet access for employees and city operations. The project will upgrade outdated or insufficient wireless infrastructure, providing better coverage, faster speeds, and improved security across public buildings and departments. These upgrades will also support the growing demand for mobile devices.

•  Library Master Plan Administration ($50,000) – Funding will be used to oversee and administer the interior renovations of the Harrison Memorial Library. This project will be a private-public partnership between the Carmel Public Library Foundation and the City of Carmel-by-the-Sea. The library requires essential upgrades to meet modern standards, including improvements to plumbing, electrical systems, and ADA compliance.
  
  
•  CIP Contingency Fund ($500,000): The CIP Contingency Fund, set at 5% of the total budget for current year (CY) projects, is reserved to cover unforeseen costs during the execution of capital projects. It addresses unexpected expenses such as material cost increases, design changes, or unforeseen site conditions. This fund ensures financial flexibility, preventing project delays or scope reductions and helping to keep projects on track and within budget.

 5. Council Guidance

Staff is seeking direction from the Council on the following issues. Please note that this is the first review and screening of potential projects. Staff will return at a future meeting to refine the list of potential projects based on feedback received on March 24, 2025.

•  Acceptance of the capital improvement projects completed or anticipated to be completed in FY 2024/25, as listed in Section 1 above.

•  Confirmation to cancel the one project described in Section 2 above.

• Confirmation to carry over six projects from FY 2024/25, including their remaining project funds, into FY 2025/26, as described in Section 3 above.

• Review potential projects for the FY 2025/26 CIP in 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.

• Add, delete, or modify identified projects based on public comments and Council’s input. Direct staff to return at a future meeting to refine the list of proposed projects for a second review.

Upon Council’s tentative approval, the CIP document will be presented to the Planning Commission for a General consistency review, as required by State law and the City’s Municipal Code.

The preliminary amount of CIP project funding available to be carried over into FY 25/26 is approximately $2,110,000. This amount will be refined during the remainder of the current FY 24/25.

Six carry-over capital improvement projects are recommended to be carried over into FY 2025/26, with an estimated remaining budget of $2,110,000.

Potential New Projects – Vehicle and Equipment Fund: 6 new vehicle and equipment projects are proposed at an estimated cost of $530,000.