Pacific Grove lays out five‑year CIP, finds $11.7 million unfunded gap over next five years

Pacific Grove Deputy City Manager Joyce Halaby presented a data‑driven draft five‑year Capital Improvement Plan to the City Council on Nov. 5, explaining that the plan combines recently collected pavement and facilities condition data with older sewer system planning to quantify near‑term needs.

“First of all, in our work plan this year, one of the items we've identified is to create a five year CIP,” Halaby said, and she framed the session as informational: the presentation was a study session with no decisions requested that night.

The city identified roughly $37.0 million in infrastructure needs for assessed categories over the next five years and about $18.1 million in the subsequent five years, producing a ten‑year identified total near $55.7 million. Comparing those identified needs to available funding, staff estimated an unfunded need of approximately $11.7 million over five years and $20.7 million over ten years for the systems that already have assessments.

Halaby stressed that the totals reflect only assessed systems and do not include assets still lacking baseline surveys, such as sidewalks, nor the estimated cost to perform missing studies (staff cited about $1.3 million in study costs needed to close data gaps). She also reiterated a common sequencing rule: the city typically addresses sewer or other underground work before repaving a street.

Pavement findings: the pavement management program covers 65 centerline miles, with a network pavement condition index (PCI) of 55 (a “fair” average). The program recommends a target network average PCI of 70 within ten years. Staff said reaching a PCI of 70 would require an estimated $12 million in pavement treatments over the next five years and $24 million over ten years; those figures exclude embedded underground sewer or stormwater work and ADA/sidewalk elements commonly paired with street projects. Identified pavement funding sources named in the presentation include Measure X (local sales tax), Senate Bill 1 (state gas‑tax funding), and the city’s general‑fund maintenance‑of‑effort allocation. Under conservative funding assumptions staff estimated an unfunded pavement gap of about $3.6 million over five years and $7.0 million over ten years.

Facilities findings: facility condition assessments completed in 2024 and 2025 now cover most city‑owned buildings. Staff reported that assessed facility needs total about $7.5 million over five fiscal years and $14.0 million over ten years; because the city lacks a dedicated facilities funding source, most of those needs are currently unfunded. Staff excluded Chautauqua Hall’s $900,000 program from unmet need because the Friends of Chautauqua Hall have pledged community donations to cover that project.

Funding and next steps: Halaby told the council the CIP is a living document that will evolve as staff complete additional studies and refine cost and funding assumptions. She said staff will return Nov. 19 with a general‑fund update; other funding solutions beyond the general fund will be necessary to close the gaps. Councilmembers discussed pursuing grants and matching funds, tourism‑related revenues (including paid parking), and prioritizing preventive maintenance to avoid higher long‑term rehabilitation costs.

Public comment: three residents spoke in chambers and one online. Resident Andy Kubica thanked staff but criticized past delays and asked for greater efficiency and faster execution. Longtime resident Vince Tuminello urged fiscal caution and opposed new taxes. An online commenter described the report as “thoroughly sobering” and urged restraint for taxpayers.

Procedural action: Council approved the special study session agenda at the start of the meeting by voice vote (motion by Emilia; second by Rao; passed unanimously). The council later adjourned the public meeting and convened a closed session for a public‑employee appointment (city attorney). The council did not take other formal actions related to CIP during the study session.

Why this matters: staff said the CIP gives the city a data‑driven roadmap to prioritize work, coordinate underground and surface projects, and seek outside funding. The presentation highlights immediate investment needs for pavement and facilities while identifying study and funding gaps that will raise total needs as more assets are assessed.