Council approves two‑year CIP and SB1 project list; staff highlights $28M in five‑year investments

The Pacific Grove City Council on May 7 approved a two‑year Capital Improvement Plan (CIP) covering fiscal years 2025–26 and 2026–27 and adopted the Senate Bill 1 project list required for state transportation funding.

Public Works and administrative staff presented a five‑year retrospective showing 80 completed projects between FY2019–20 and FY2023–24, including transportation, stormwater and sewer improvements, major facility repairs, and the Point Pinos Coastal Trail. Staff reported nearly $28 million invested across the five‑year span and more than $10 million in grant and donation support leveraged to complete projects.

Highlights presented to council included: installation of capture and diversion infrastructure for stormwater protection near the shoreline; more than 11,500 linear feet (about 2.2 miles) of sewer pipe rehabilitation funded with sewer‑enterprise funds; replacement of multiple HVAC systems and roofing across city facilities; a $2.7 million interior renovation of the library; and the Point Pinos Coastal Trail completion, a multiyear $2.8 million project largely grant‑funded.

For the coming two‑year CIP, staff proposed a compact list of 16 projects totaling about $13.3 million, funded predominantly from non‑general funds (enterprise and special revenue) and community donations. The city’s allocation from SB1 for FY2025–26 is approximately $390,000 and staff proposed applying it to the street‑rehabilitation project that addresses severely deteriorated roadway segments.

Councilmember comments emphasized prioritizing public‑safety measures and reducing deferred maintenance: members noted sewer repairs and the Esplanade parking/sidewalk safety improvements as priorities. Several members asked staff to return with multiyear programming that sequences unfunded projects and shows options for grant targeting and potential funding strategies.

The council adopted the two‑year CIP and the SB1 project list in a 7–0 vote.

Why it matters: The CIP directs capital spending on roads, stormwater and sewer systems, parks, and city facilities, and it is the basis for applying for and matching outside grant funds. The two‑year plan aligns with the city’s new two‑year budget cycle and aims to present a longer view of priorities and funding needs.

Implementation: The adopted list includes maintenance of effort commitments that keep Pacific Grove eligible for Measure X and SB1 funds. Staff said they will return before fiscal year 2026–27 with updates and to present a five‑year funding plan for currently unfunded high‑priority projects.

Ending

Councilmembers praised staff for a data‑driven presentation and for leveraging grants and donations; the council’s unanimous vote sends the two‑year CIP into the budget adoption process.