CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
Placement: Business
Meeting Date: December 8, 2025
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director SUBJECT: Central Coast Blue Advanced Water Purification Facility Update
RECOMMENDATION
Receive an update on the Central Coast Blue Water Purification Facility project under development by the City of Pismo Beach.
BACKGROUND
The purpose of this report is to provide an update on the City of Pismo Beach (Pismo Beach) Advanced Water Purification Facility (AWPF), commonly referred to as Central Coast Blue (CCB).
The CCB project is being developed and funded by Pismo Beach to advance the city’s long-term water supply reliability and sustainability objectives. Although the City of Grover Beach (City) is no longer a project partner, the proposed facility and related infrastructure is primarily located within city limits given property ownership by Pismo Beach and the location of the site relative to the Santa Maria Groundwater Basin and the sewer outfall line. This property location necessitates coordination between the two municipalities to ensure that the proposed development aligns with local planning, zoning, and environmental requirements.
Below is further information about the project which Pismo Beach will share in a presentation to the Council:
Project Information
Property Owner: City of Pismo Beach
APN(s): 060-543-007; 060-543-016
Gross Site Area: Approx. 95,329 square feet
General Plan Designation: Industrial, Low Density
Residential (1-5 units/acre)
Zoning: Industrial (I), Low Density Residential (R1)
Surrounding Zones and Uses:
North: Industrial (I)
South: Low Density Residential (R1) and Coastal
Low Density Residential (CR1)
West: Coastal Industrial (CI)
East: Industrial and Low Density Residential (R1)
Staff Report: Central Coast Blue Project Status Update Page 2 December 8, 2025
Project Description
The City of Pismo Beach is developing an AWPF or potable reuse project called Central Coast Blue located within the city limits of Grover Beach on property owned by Pismo Beach. The project would create a reliable water source by taking treated effluent otherwise being discharged into the ocean and purifying it to drinking water standards. The treated effluent will be directed to the CCB facility and will undergo the standardized purification process consisting of ultra-filtration, micro-filtration and reverse osmosis, followed by ultraviolet and advanced oxidation processes for advanced disinfection. Following treatment, the purified water will be injected into an onsite injection well into the Northern Cities Management Area of the Santa Maria Groundwater Basin (aquifer). This process will protect the aquifer against seawater intrusion and replenish the community’s water supply. The CCB facility will produce a minimum of 350 acre-feet and up to a maximum of 600 acre-feet of purified water from the aquifer each year.
The project also includes installation of two pipelines connected the CCB facility to the existing Pismo Beach Wastewater Treatment Plan outfall pipeline. One approximately 1,000 linear-feet (LF) pipeline to convey secondary effluent from the outfall to the facility, and one approximately 1,000 LF pipeline to convey reverse osmosis concentrate from the facility back to the existing outfall. The State will require two offsite monitoring wells to be installed for testing and monitoring purposes. An extraction well will be constructed at a future location to be determined.
California Coastal Act and Local Coastal Program
The California Coastal Act (Coastal Act) provides the regulatory framework for the protection and management of California’s coastline. The Coastal Act requires all cities and counties within the coastal zone to develop and implement a Local Coastal Program (LCP) to ensure that coastal development protects coastal resources, public access, and environmentally sensitive areas. A portion of Grover Beach lies within the coastal zone and is therefore subject to the Coastal Act.
The City’s certified LCP requires that any development within the coastal zone obtain a Coastal Development Permit (CDP). Projects located outside the coastal zone do not require a CDP and are not subject to the policies or regulations of the LCP.
While a small portion of the property in the City’s coastal zone, the CCB facility itself is located outside the City’s coastal zone and therefore does not trigger a requirement for a CDP issued by the City. Other components of the project located outside of the city limits may fall within the coastal zone of a separate jurisdiction and would require a CDP from that jurisdiction outside of the City’s review authority. Staff would note that the Council on January 23, 2023 adopted a Resolution requesting consolidation of the CDP process for the project under the jurisdiction of the California Coastal Commission. This request was related to the previous version of the CCB project which was larger in scope with the facility located within the City’s coastal zone. With the revised project scope, the facility is not located within the City’s coastal zone and thus the City’s CDP requirement is not applicable as noted above. The Coastal Commission retains the CDP jurisdiction for this project through the Commission’s standard review, public hearing, and permitting process.
General Plan
All proposed development projects shall be consistent with the City’s adopted General Plan, which includes elements such as the Land Use Element (LUE), Safety Element (SE), and Noise Element (NE). The project site is designated as Industrial in the LUE which is defined as follows:
The Industrial designation allows for planned industrial parks, warehouses, retail uses when accessory to a warehouse or industrial use, light manufacturing and assembly, and similar and Staff Report: Central Coast Blue Project Status Update Page 3 December 8, 2025
compatible uses. In addition, the Industrial designation accommodates smaller service businesses such as contractor’s yards and car storage. This designation also allows for automobile service and repair shops, wholesalers and commercial uses related to building and mechanical material sales and supply.
The following General Plan policies and programs are applicable to the proposed project:
Land Use Element
LU-11.3 Location of Industrial Development. New industrial development shall be located generally south of Farroll Road, east of Highway One and west of 13th Street and in the 4th Street corridor south of Rockaway along the railroad tracks. The area north of West Grand shall be limited to clean industrial uses where operations are conducted exclusively within the building.
Lodging and mixed-use shall be allowed in the CIC Zone to allow for potential visitor serving uses.
LU-11.4 Clean Industries. The City shall promote the development of clean or green industries that use sustainable production practices and identify and promote the use of alternative and clean technologies and do not pose health risks associated with water and air pollution or potential leaks or spills.
LU-11.6 Compatibility of new industrial development. Where new industrial development abuts a residential zone, the project shall comply with Development Code development standards to create a buffer between the uses. Storage and loading areas and outdoor activities should be located on the interior of the site and screened from public view.
Safety Element
S-7.5 Resilient Water Supply. Pursue regional solutions with public and private partners to diversify the city’s water supply through utilizing alternative sources, including recycled water.
Implementation Measure S-7.5.1. Continue the City’s partnership with the Cities of Pismo Beach and Arroyo Grande in permitting, constructing, and operating the Central Coast Blue advanced water treatment facility.
Implementation Measure S-7.5.2. Support the on-going risk of saltwater intrusion into the Santa Maria Groundwater Basin including the four active wells used by the City of Grover Beach.
Noise Element
Policy 4.3.6 Stationary Noise Sources. No new stationary noise sources shall be allowed if they increase the noise on lands designated for noise-sensitive uses to a level that exceeds the standards of Table 3. This policy does not apply to noise levels associated with agricultural uses.
Pismo Beach will design and develop the proposed facility in coordination with the City to ensure consistency with the above-referenced General Plan policies. This approach will allow the project to the extent feasible, maintain compatibility with surrounding uses, and address potential noise and safety considerations. Although the City is no longer a direct partner in the current phase of the CCB project, future participation is possible such as contracting for potential water supply.
Because the General Plan is a long-range planning framework, the goals and implementation measures related to regional water resiliency, particularly those referencing the CCB project and multi-agency partnerships, continue to apply and guide the City’s coordinated efforts. This ensures the City remains aligned with regional solutions for water supply reliability, water quality, and maintains the flexibility to engage as a partner in future program phases.
Staff Report: Central Coast Blue Project Status Update Page 4 December 8, 2025
Industrial Design Guidelines
The project site is located within the City’s Industrial (I) zone. The City adopted the Industrial Design Guidelines to establish clear expectations for the visual quality, functionality, and compatibility of new development and reuse within the “I” zone. The guidelines are intended to guide applicants in designing high quality industrial development projects. They provide qualitative design criteria that should be incorporated into industrial development projects.
The Industrial Design Guidelines supplement the adopted General Plan and the City’s Development Code by offering options, solutions, and techniques to achieve the goal of excellence in design. These are not performance goals, nor zoning regulations or development standards. These guidelines do not supersede regulations in the Development Code. These development guidelines are not intended to be rigid in their application, but instead encourage diverse design opportunities, while maintaining design character and quality.
The CCB project will be designed consistent with these guidelines in coordination with City staff.
While the facility is a specialized public utility use, its site and building design will incorporate required architectural treatments and materials, clear and functional access and circulation, and appropriate placement and screening of equipment and service areas. Landscaping and screening will be integrated to ensure compatibility with surrounding development.
Development Code
The City’s Development Code identifies specific development standards and requirements for development projects (Grover Beach Municipal Code Article IX). The project site is zoned Industrial (I) and Development Code Section 2.40.020 states the purpose of the zone as follows:
The Industrial Zone applies to areas of the City appropriate for light, medium and heavy manufacturing and assembly, industrial parks, warehouses, commercial cannabis uses, and similar and compatible uses. The area is also appropriate for smaller service businesses such as contractor’s yards, vehicle repair and storage, and material sales and supplies. Live-work may be appropriate when compatible with surrounding uses.
The proposed project involves an industrial use/facility, which is explicitly contemplated within the range of uses envisioned for this zone. The project is consistent with the character of surrounding industrial uses, avoiding conflicts with adjacent non-industrial uses to the north and west. To ensure compatibility and avoid land use conflicts with residential uses to the east and south, the project site plan will be designed with facility orientation and placement in mind, buffering and screening including landscaping and/or walls along the property boundaries. The City’s Development Code outlines setback, screening, and performance standards in the Industrial Zone.
In coordination with Pismo Beach, the City will ensure these standards are implemented so that the project does not adversely affect nearby residences.
Building Code
The design and construction of the CCB facility will be subject to State-mandated buildings standards, including the California Building Standards Code and other applicable State safety regulations. The City and Pismo Beach will coordinate closely throughout project design and construction to ensure compliance with fire and life-safety requirements, appropriate grading and drainage practices, and necessary utility, access, and traffic control measures.
Staff Report: Central Coast Blue Project Status Update Page 5 December 8, 2025
Environmental Review
Under the California Environmental Quality Act (CEQA), a public agency must evaluate and disclose the potential environmental impacts of a development project. CEQA ensures transparency and mitigation of significant impacts. A city that undertakes a development project on property it owns or controls within another city’s boundaries may serve as the “Lead Agency” under the CEQA because Lead Agency status is based on who is carrying out the project, not where the project is located. CEQA defines the Lead Agency as the public agency with the principal responsibility for approving or carrying out the project (Pub. Res. Code §21067). The host city, where the project is physically located, will still participate through the CEQA process and serve as the “Responsible Agency”. A Responsible Agency must rely on the Lead Agency’s environmental document for its own necessary approvals, as applicable.
Pismo Beach, acting as Lead Agency, previously adopted and certified the Final Environmental Impact Report (EIR) in 2021, and prepared and adopted an EIR Addendum in 2023 for a larger, more intensive project concept. The currently refined project is substantially smaller in scope and falls entirely within the environmental impacts previously evaluated and mitigated in the Final EIR and Addendum. All components of the revised project are consistent with, or less impactful than the facility and infrastructure evaluated in the EIR and Addendum. All previously adopted mitigation measures remain applicable and continue to address the projects potential impacts. No substantial changes to the project or to the circumstances under which it is undertaken have occurred that would require major revisions to the previously certified environmental documents.
Because the refined project is within the scope of the analysis previously conducted, the conclusions of the 2021 Final EIR and 2023 Addendum remain valid. Therefore, preparation of a subsequent EIR, supplemental EIR, or additional addendum is not required.
Review Authority
Lastly, staff would note that the proposed CCB project qualifies as a municipal water treatment facility and is considered a “critical public service”. As such, the project is exempt from local, including City, building and zoning ordinances under Government Code Section 53091(d)-(e).
The project must still be designed and constructed in conformance with State building standards, State safety codes, and all required environmental and engineering regulations. Even though the City may not issue permits, both cities will collaborate on matters relating to design, screening, noise, fire access, grading, utilities, traffic, and overall safety, to ensure the project is designed and built responsibly. Pismo Beach has also committed to working with adjacent property owners and residents to address and resolve potential project impacts.
Next Steps
As Pismo Beach pursues a design-build approach for development of the facility, City staff will coordinate closely with Pismo Beach on community engagement and outreach, project design, and construction. The Council may wish to direct staff to work with Pismo Beach on scheduling periodic project updates for the Council to receive information and provide input to Pismo Beach as the project moves forward.
Staff Report: Central Coast Blue Project Status Update Page 6 December 8, 2025
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement
FISCAL IMPACT
There are no funding impacts to this staff report.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive and file a report on the Central Coast Blue Water Purification Project.
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.