Title
a. Approve a Cost Sharing Agreement between the City of Carmel-by-the-Sea and the County of Monterey for the Pavement Rehabilitation of the portion of Ocean Avenue between just west of Cabrillo Highway, California State Route 1, also known as the Pacific Coast Highway and Carpenter Street, for a term effective the execution date of the Agreement, for a total amount of $400,000 and
b. Authorize the Director of Public Works, Facilities and Parks to sign the Cost Sharing Agreement, including a County contribution of $400,000 for construction.
(California Environmental Quality Act (CEQA) action: Categorically exempt per California Code of Regulations section 15301 Existing Facilities - (c) Existing highways and streets.)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve a Cost Sharing Agreement between the City of Carmel-by-the-Sea and the County of Monterey for the Pavement Rehabilitation of the portion of Ocean Avenue between just west of Cabrillo Highway, California State Route 1, also known as the Pacific Coast Highway and Carpenter Street, for a term effective the execution date of the Agreement, for a total amount of $400,000 and
b. Authorize the Director of Public Works, Facilities and Parks to sign the Cost Sharing Agreement, including a County contribution of $400,000 for construction.
SUMMARY/DISCUSSION:
County of Monterey (County) Department of Public Works, Facilities and Parks (PWFP) staff have been working collaboratively with the City of Camel-by-the-Sea (City) on the development of the City-led proposed project to construct pavement improvements along the 1,015-foot portion of Ocean Avenue (“Pavement Rehabilitation”) that extends beyond the City limits and lies within the unincorporated County right of way. This section of Ocean Avenue is located just west of Cabrillo Highway (California State Route [SR] 1), also known as the Pacific Coast Highway. The pavement improvements within this unincorporated County area are hereinafter referred to as the “Project”.
The City proposes to construct Pavement Rehabilitation improvements, along the entire 1,015-foot portion of Ocean Avenue. Additionally, the City will provide construction inspection services for the Project. In return, the County proposes to collaborate with the City on the Project’s construction and to issue a no-fee encroachment permit allowing the City to perform work within the County’s jurisdiction for the duration of the Project.
The City is in the process of finalizing Project plans, with construction scheduled to begin later this fall. The Pavement Rehabilitation of Ocean Avenue, from the City limits to SR 1, is included in the County’s Capital Improvement Program (CIP) for fiscal years (FY) 2028-29 and 2029-30. The Project is scheduled to begin the engineering/design phase in FY 2028-29.
As part of its comprehensive infrastructure initiative, the City initiated a collaborative effort with the County to extend roadway improvements along Ocean Avenue, from the eastern City limits to Cabrillo Highway. These improvements include lowering utility irons, patch paving, conform grinding, reconstructing several Americans with Disabilities Act (ADA) ramps, placing asphalt concrete (AC) overlay, restoring AC berms and swales, reapplying pavement markings, and raising utility irons. This extension is essential to maintaining continuity in pavement quality, design standards, and long-term performance along this key regional corridor.
In June 2024, City Council adopted the CIP Budget for FY 2024-25, which allocated $2,810,000 for street repairs within the City. Construction of this work is expected to begin in Summer 2025 and continue into Fall 2025.
The purpose of the Project is to extend the service life of Ocean Avenue, a County-maintained roadway, from the City of Carmel-by-the-Sea limits to SR 1. The Project will rehabilitate the pavement using recycling methods and/or the placement of hot-mix asphalt. Upon completion, Ocean Avenue will continue to support transportation mobility for residents, businesses, and visitors throughout the County.
The Project is categorically exempt from the California Environmental Quality Act (CEQA) per California Code of Regulations section 15301 - Existing Facilities (c) Existing highways and streets, as it involves the rehabilitation and maintenance of an existing public roadway. Funding for the Project will come from Measure X, Senate Bill 1 (SB 1), and/or Transient Occupancy Tax revenues.
Ongoing maintenance will be minimal initially due to the roadway's new condition; however, as the pavement ages, routine maintenance will be performed by PWFP Maintenance staff as part of standard operations.
The recommended actions would allow for the approval of the proposed Cost Sharing Agreement (Agreement) between the County and the City (Attachment A), formally outlining the shared roles and responsibilities for this collaborative Project.
The collaborative effort between the County and the City potentially reduces the administrative costs associated with procurement, contract administration, and related tasks for this portion of work for the Project.
Staff recommends that the Board approve the proposed Agreement to define and establish the respective roles and responsibilities of the County and the City. The Agreement, with a County contribution of $400,000, will take effect upon execution and will remain in place until mutually terminated by both parties.
OTHER AGENCY INVOLVEMENT:
PWFP has collaborated with City staff in drafting and developing terms for the Agreement. The Agreement was approved by City Council on June 2, 2025. The Office of the County Counsel, including Risk Management, and the Auditor-Controller’s Office have reviewed and approved the Agreement as to form, indemnification and insurance, and fiscal provisions, respectively.
FINANCING:
The estimated cost for the Project is $400,000 and is anticipated to be funded by a combination of Measure X funds and Senate Bill 1 (SB 1) funds. Additionally, the Pavement Rehabilitation for Ocean Avenue, from the City limits to County limits, is part of the County’s CIP, for approximately $160,000 in FY 2028-29 and $660,500 in FY 2029-30. Approval of this Agreement will complete the Project in FY 2025-26 at lesser cost given that the Project would be combined with a larger City-wide project.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended actions support the Board of Supervisors’ Strategic Initiatives for Infrastructure by addressing a roadway in urgent need of reconstruction and extending its service life through resurfacing techniques. These improvements respond directly to community concerns and will provide lasting benefits to residents, County constituents, and visitors. The proposed project will enhance the durability of the pavement and ensure continued transportation mobility for the County’s residents, businesses, and visitors.
__ Economic Development
__ Administration
__ Health and Human Services
X Infrastructure
__ Public Safety
Prepared by: Jonathan Pascua, PE, Senior Civil Engineer, (831) 755-8963
Dalia Mariscal-Martinez, Management Analyst III
Reviewed by: Enrique Saavedra, PE, Chief of Public Works
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
The following attachment is on file with the Clerk of the Board:
Attachment A - Proposed Agreement
Attachment B - Location Map