CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 9
Placement: Consent
Meeting Date: July 27, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Erin Wiggin, CIP Manager
SUBJECT: Resolution to Execute Agreements for a Sustainable Transportation Planning Grant for a South 4th Street Complete Streets Plan
RECOMMENDATION
Adopt a Resolution to authorize the City Manager to execute agreements for a Sustainable Transportation Planning Grant in the amount of $359,432 from the California Department of Transportation for the South 4th Street Complete Streets Plan.
BACKGROUND
South 4th Street south of Highland Way has been closed indefinitely since October 2023 given the deteriorating condition of the street. Prior to 2023, this section of street has been closed every winter due to severe storm damage and maintenance issues. Properly repairing this street section requires a complex redesign to address the challenges with flooding and debris with an estimated repair cost of approximately $3.5 million just to address the drainage and existing pavement repair.
The total cost of a complete street project along South 4th Street has been estimated at approximately $9 million. Given the significant costs for this section of street, and the competing needs for pavement repairs for other streets in the city that are more actively used, staff determined that the best course of action was to create a complete streets project and pursue grant funding for this work on South 4th Street.
In November 2025, staff submitted an application for a Sustainable Transportation Planning Grant to the California Department of Transportation (Caltrans) for a study and preparation of a project plan to make the necessary improvements to South 4th Street and to connect South 4th Street with a bike path from Highway 1 in Oceano to the bike lane at South 4th Street and Farroll Avenue, creating a multimodal connection between the two communities. The County of San Luis Obispo submitted a support letter for this application given the connection to Oceano.
The proposed project for planning would analyze solutions to improve a portion of the roadway that has been closed to the public indefinitely due to frequent flooding and felled trees, including a drainage analysis, constraints analysis, potential permitting challenges and geotechnical considerations. The study would also look at alignments for multimodal access along the corridor to improve pedestrian and bike travel. Additionally, the study would review existing documents, surveys and mapping and will include public outreach and engagement with stakeholders.
On May 26, 2026, Caltrans issued a Conditional Award Letter to the City indicating the City had been awarded the grant in the amount of $359,432. The award indicated a required City funding Staff Report: South 4th Street Sustainable Transportation Planning Grant Page 2 July 27, 2026
match of $46,568, which is proposed to be funded through Transportation Development Impact Fees. Adoption of the attached resolution would authorize the City Manager, or designee, to execute the necessary agreements and/or amendments to accept the grant and begin the process to develop the plan which must be completed by June 2029. This planning effort does not obligate City funds for any future construction of the proposed project and staff would return to Council with grant opportunities or other funding mechanisms in the future, if a project becomes feasible.
This work would be done in addition to the scheduled Measure K-14 projects for local streets along with the North 4th Street project scheduled for 2027.
FISCAL IMPACT
Adoption of the resolution will allow the City Manager, or designee, to execute agreements necessary to accept a grant of $359,432 to conduct the study. The grant will require the City to provide matching funds of $46,568, which are proposed to be funded with Transportation Development Impact Fees. Acceptance of the grant does not obligate the City to provide funding for any future project.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a resolution to authorize the City Manager to execute agreements for a Sustainable Transportation Planning Grant from the California Department of Transportation for the South 4th Street Complete Streets Plan; or
2. Do not adopt the resolution and provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Resolution
2. Conditional Award Letter
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 ☒ Street Improvements and Maintenance
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF
TRANSPORTATION FOR THE SOUTH FOURTH STREET COMPLETE
STREETS PLAN
WHEREAS, the City of Grover Beach is eligible to receive Federal and/or State funding for certain transportation planning related plans through the California Department of Transportation; and
WHEREAS, a Restricted Grant Agreement is needed to be executed with the California Department of Transportation on or before such funds can be reimbursed through the Transportation Planning Grant Program; and
WHEREAS, the City Council wishes to delegate authorization to execute these agreements and any amendments thereto;
NOW, THERFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby authorize the City Manager, or designee, to execute all Restricted Grant Agreements and any amendments thereto with the California Department of Transportation.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 27th day of July 2026.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
“Improving lives and communities through transportation.”
DIVISION OF TRANSPORTATION PLANNING
P.O. BOX 942873, MS–32 SACRAMENTO, CA 94273–0001
(916) 261-3326 | TTY 711
www.dot.ca.gov
May 29, 2026te
SENT VIA E-MAIL
On behalf of the California Department of Transportation (Caltrans), Division of Transportation Planning, we are pleased to congratulate you on your Sustainable Transportation Planning Grant award.
Sustainable Transportation Planning Grant Program
Grant Award
Fiscal Year
Grant
Category
Grant Fund
Source
Project Title
Grantee/Agency
Executive Director
Grantee/Agency
Contact
Sub-Recipient(s)
Caltrans District
Contact(s)
Caltrans District
Contact(s) E-mail
Grant Award Local Match
(Cash)
Local Match
(In-Kind)
Total
Local Match
%
Local Match
Total
Project Cost
Conditions of Award Due to Caltrans Grant Expiration Date Final Invoice Due * The final contractually agreed upon Local Match and Fund Source are located on the Grant Application Cover Sheet and Cost & Schedule. Any change in Local Match that increases/decreases the Total Project Cost must be approved by Caltrans and may require a Formal Amendment. Each invoice must include the contractual/agreed upon local match % - any deviation to this amount requires an approved Tapered Local Match prior to invoice submittal. Any change to the Local Match Fund Source requires prior Caltrans approval and an Administrative Amendment. 2026-27 Sustainable Communities Competitive SHA South 4th Street Complete Streets Plan City of Grover Beach Matthew Bronson Erin Wiggin Bailey Barton, Veronica Lezama [email protected], [email protected] $359,432 $46,568 N/A $46,568 11.47% $406,000 July 10, 2026 June 30, 2029 August 29, 2029 Attachment 2
Caltrans Sustainable Transportation Planning Grant Program Grant Award
“Improving lives and communities through transportation.” Next Steps
1. The Caltrans District Grant Manager will schedule a Conditional Award Meeting with your agency soon.
The attached specific and general conditions and project revisions necessary to accept grant funding will be discussed at this meeting.
2. The required conditions must be submitted to the Caltrans District Grant Manager no later than the date listed in the table above.
Failure to satisfy these conditions will result in the forfeiture of grant funds.
3. The Caltrans District Grant Manager will review and approve all items required to fulfill the attached specific and general conditions.
4. Once the required conditions are met and the agreement is executed, the Caltrans District Grant Manager will:
Send a Notice to Proceed letter (for MPO/RTPAs, this will happen after the OWP/OWPA formal amendment is approved). Grant work cannot begin until the Notice to Proceed letter is received by your agency. Coordinate and schedule a grant kick-off meeting with your agency.
If you have questions concerning your Conditional Grant Award, please reach out to your Caltrans District contact listed in the table above.
Sincerely,
ERIN THOMPSON
Chief, Office of Regional and Community Planning
Attachments:
Specific and General Conditions
Sustainable Transportation Planning Grant Program
Grant Award Specific and General Conditions
Specific Conditions
If Specific Conditions have been identified for this grant, they will be listed below. Please make all necessary revisions to the Grant Application Cover Sheet, Scope of Work (SOW), and/or the Cost & Schedule, and complete the right column to indicate where the specific conditions were addressed.
Specific Conditions
Conditions Addressed
List Document,
Section & Page(s)
2. SOW Task A: Remove DBE Reporting as this task is State funded.
5. SOW Task 3: Engagement shall include tabling at 5CHC to do targeted engagement to one of the most underserved communities identified within the application.
6. SOW Task 3: Engagement shall include targeted engagement to the individuals who utilize the 5CHC as described in the project’s justification section of the application.
9. SOW Task 5: Draft and Final plan shall contain an estimated cost for the associated improvements.
7. SOW Task 3: Engagement strategy shall include door-to-door for all parcels located on the corridor.
1. SOW Task A: Update task narrative to include description of kickoff meeting with Caltrans, quarterly invoicing, and quarterly reporting.
4. SOW Task 1: Existing conditions shall include the data collection for potential future land use development sites as mentioned in the application, this shall be illustrated and documented in the corridor plan.
3. SOW Task B: Include Procurement Procedures (if applicable), RFP, Copy of Bids Received, Consultant Contract, Amendments to Consultant Contract, if any, and Consultant Kick-off Meeting Notes in the task narrative and deliverables.
8. SOW Task 3: Include the number of outreach efforts throughout the project. Quantify tasks/deliverables.
Specific Conditions
Conditions Addressed
List Document,
Section & Page(s)
13. Identify the authorized signer(s) and email address(s) for the grant agreement that will be routed via Adobe Acrobat Sign.
10. C&S: Revise schedule to reflect a timeline of September 2026 through June 2029.
11. C&S Task A: Revise Task A budget (grant award and local match combined) as it exceeds the maximum of 5% of the grant award.
12. C&S Task 3: Consider expanding engagement further across project timeline.
General Conditions
Please review the General Conditions below and complete them, as necessary. Most of these items are outlined in the Grant Application Guide, Ch. 5 and Appendix B. • Board Resolution – A current (less than one year old) Local Board Resolution, signed by the governing board that includes the grant project title and job title of the person authorized to enter into a contract with Caltrans, is required to be submitted to Caltrans by August 14, 2026.
• Government Entity Taxpayer ID Form is now required in place of the previously required STD-204. It is required by Caltrans Accounting to ensure payments are sent to the correct recipient and address.
• Scope of Work (SOW) and Cost & Schedule (Refer to Grant Application Guide, Appendix B Checklists) These are frequently missed requirements:
o Project Management stand-alone tasks, staff and/or consultant coordination are not allowed. Project Management activities must be charged to the tasks in which they are accrued.
o Include tasks for a kick-off meeting with Caltrans, invoicing, quarterly reporting, and Board adoption or acceptance.
o Ensure the deliverable for the consultant procurement task includes: Request for Proposal (RFP), executed consultant contract, and a copy of your agency’s procurement procedures.
o The earliest project start date is September 14, 2026, with an end date of June 30, 2029.
The Cost & Schedule will need to be updated to reflect a start date of September 2026 with at least one task extending to the grant expiration in June 2029. o Indirect Costs - For Local Government Agencies requesting to bill for indirect costs:
Indirect costs must be identified in the SOW and Cost & Schedule, and the indirect cost rate included at the bottom of the Cost & Schedule.
• Grant Application Cover Sheet and Cost & Schedule
o Ensure the grant award, local match, and total project costs are consistent with the amounts listed in the award letter.
• Grant Application Cover Sheet - Must identify the specific source of cash and in-kind local match funds; and must identify the agency providing the local match. o If your agency is using staff time as a cash match, the application cover sheet must identify the source of local match funds for staff time (e.g., General Fund). o Direct grantee staff time is not an allowable in-kind match and must be identified as cash match.
• Third Party In-Kind Valuation Plan, if applicable - Third-party in-kind contributions consist of goods and services donated from outside the grantee’s agency (e.g., printing, facilities, interpreters, equipment, advertising, staff time, and other goods or services). If utilizing thirdparty in-kind contributions to satisfy the local match requirement:
o Ensure in-kind contribution information is identified on the Grant Application Cover Sheet and Cost & Schedule.
o To clarify, sub-recipient staff time, if reimbursed, is considered cash match. If subrecipient staff time is donated, it would be considered in-kind. o Submit a Third-Party In-kind Valuation Plan. The district can provide a copy of the valuation plan checklist and template.
• Ensure Consistency - All changes made to the Grant Application Cover Sheet, SOW, and Cost & Schedule are made consistently in all documents.
Grant Administrative Requirements
Refer to the Grant Application Guide, Ch. 5, and the Restricted Grant Agreement boilerplate for a detailed overview of the Grant Administrative Requirements that must be adhered to over the life of the project. In summary:
• Third Party Contracts - Competitive consultant procurement, i.e., Request for Proposals (RFP) is required for all grant projects.
o If a consultant has already been hired to complete the SOW activities, ensure the process to procure the consultant was a competitive process (documentation must be provided to Caltrans); the grant work must have been part of the original RFP. o If using an on-call consultant list, the process for establishing the list must be competitive and less than five years old (documentation must be provided to Caltrans). • Quarterly Reporting – Quarterly Progress Reports (a narrative of completed project activities) are submitted on a quarterly basis.
• Invoicing and Financial Requirements –
o Maintain a proper accounting system (MS Excel is unacceptable). o Request for Reimbursements/invoices (RFRs) must be submitted at least quarterly, but no more than monthly.
One-time, lump sum invoices are not allowed.
If requesting reimbursement of indirect costs, a copy of the ICAP/ICRP acceptance letter must be submitted with the first invoice.
Local match commitments must be satisfied with every RFR/invoice, including any local match amount above the minimum amount. If you are unable to meet this commitment, coordinate with your district Contract Manager. All work must be completed by June 30, 2029.
Final RFR/invoice and the final product are due no later than August 29, 2029. The final RFR/invoice will not be processed without the final product. o An Indirect Cost Allocation Plan/Indirect Cost Rate Proposal (ICAP/ICRP) must be submitted each year to the Inspector General Independent Office of Audits and Investigations for approval. Instructions for submitting an ICAP/ICRP are available at the following webpage: https://ig.dot.ca.gov/resources
• Grant Amendments - Proposed changes to the Grant Application Cover Sheet, SOW, and Cost & Schedule (e.g., local match amount, fund source, movement of funds) will require an Amendment and Caltrans approval. Please contact Caltrans for guidance on this process.