PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: March 5, 2024
TITLE:
Capital Improvement Program Semi-Annual Report
RECOMMENDATION:
No action required; for information only.
DISCUSSION:
The City's Engineering Division consists of five full-time staff members: the Director of Public Works/City Engineer, Engineering Manager, Senior Engineer/Engineer, Capital Projects Manager and Senior Management Analyst. Currently there is one vacancy in the division leaving only the Director of Public Works/City Engineer, Engineering Manager, Capital Projects Manager, and Senior Management Analyst to handle all of the division’s business.
The City Council met on February 3, 2023, to establish new goals to guide capital improvements, investments, and initiatives for the City for the next two years. Additionally, due to the duration of certain projects, some projects that staff is working on reflect direction from the City Council’s previous goals. The Council’s current goals are:
Maintain a Focus on Public Safety
Water Supply, Conservation and Central Coast Blue
Community Character, Beautification and Quality of Life for Residents Traffic, Circulation, and Parking
Housing and Homelessness
Under Construction
Council Goal - Community Character, Beautification and Quality of Life for Residents Palisades and Chumash Park Improvements
This project involved the purchase and installation of new play equipment at both Palisades Park and Chumash Park along with related site improvements. Play equipment has been installed at both parks and a ribbon cutting is being scheduled.
Council Goal - Traffic, Circulation, and Parking
FY23/24 Paving Project
A contract was awarded to Cal Portland Construction in April 2022. Construction commenced in May 2022 and is ongoing. The project is estimated to be complete in the fall of 2024.
Work in Progress
Concrete work on upper Wadsworth Avenue
Council Agenda 3-5-2024 12.A-1
Vista Del Mar and Boeker Avenues
Completed Work Since Last CIP Update
Striping of neighborhoods off of James Way and Ventana Drive Striping of Mattie Road
Upcoming Work*
Paving of the City Hall Parking Lot
Price Street
* Given availability of materials, staffing, and weather permitting Council Goal - Community Character, Beautification and Quality of Life for Residents James Way Beautification
A contract was awarded to JJ Fisher Construction on September 5, 2023 and construction began in November 2023.
Other Projects
Wastewater Treatment Plant Improvements Project
The project includes:
Rehabilitation of the existing:
o Belt Filter Press – Completed
o Dissolved Air Flotation Tank – Completed
o Clarifiers – Bid Summer 2024
o Digester #2 – Completed
Cleaning of the oxidation ditches – Spring 2024
Demolition of Digester #1 – Bid spring 2024
Construction of a new 60-foot by 60-foot steel building – Pending demolition of digester #1
Repaving of the corporation yard lot after completion of construction of the various improvements – Pending completion of Public Safety Facility Chapman Estate ADA Restroom Remodel and Addition
A contract was awarded to Jack Handley Construction in January 2023. Construction commenced in May 2023 and is substantially complete pending final punch list items and project close out documents.
Council Agenda 3-5-2024 12.A-2
Police/Parking Annex Building
A contract was awarded to Pre-Con Industries in October 2023. Construction began in November 2023 and is ongoing. The project is estimated to be completed in Fall 2024.
Emergency Services Temporary Relocation
Staff and consultant team finishing improvements temporarily relocate Police and Fire services to various locations in the community. Staff anticipates the relocation of these services to begin in the middle of March.
Design
Council Goal – Water Supply, Conservation and Central Coast Blue
Central Coast Blue
Financing
The City was awarded an $8,000,000 Round 3 Prop 1 Groundwater Grant Program (GWGP) implementation grant in August 2023. The grant will partially fund construction of the distributed infrastructure components of the Central Coast Blue project including purified water pipelines, injection wells, and monitoring wells. The City submitted a letter of interest to the United States Environmental Protection Agency (USEPA) in December 2022 for low interest financing through the Water Infrastructure Finance and Innovation Act (WIFIA) Program. WIFIA was identified as an alternative to State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (CWSRF) Loan financing due to the increased availability of funding and shorter loan processing period. The City, along with its project partners Arroyo Grande and Grover Beach, were invited to submit full WIFIA loan applications in February 2023. Full loan applications were submitted in August 2023 and each partner is seeking a credit rating with S&P Global Ratings (previously Standard and Poor’s). The loan closing is tentatively scheduled for February 2024. The construction of the project is currently scheduled to be bid summer of 2024, with construction beginning fall 2024.
The City applied for a Title XVI planning grant from the United States Bureau of Reclamation and was notified in February 2019 of an award of $796,094 to fund program management, permitting, and final design. The City then applied for a Title XVI implementation grant and was notified in August 2021 of an award of $1,700,000. Then on March 15, 2022, the City submitted another Title XVI implementation grant request and was notified in August 2022 of an additional award bringing total funding from the program to $14,124,000. The City applied in December 2023 for the remainder of funding available to the project from this program. The project is eligible to receive up to 25% of total project costs, or approximately an additional $11 million.
San Luis Obispo County submitted a State Integrated Regional Water Management (IRWM) Grant Program, Prop 1 Round 2 Implementation Grant request in early 2023 that included multiple projects from around the County. The Council Agenda 3-5-2024 12.A-3
City submitted a request and was awarded $1 million of the $3.7 million that is available for the San Luis Obispo County region in this final round of funding. The County is currently finalizing the grant agreement with the State Department of Water Resources and agreements with the individual grant recipients, including the City, are anticipated by April 2024.
The Central Coast Blue Regional Recycled Water Authority (JPA) submitted an application to the SWRCB for CWSRF financing for construction of the project in December 2022. The project was placed on the Fundable List for the draft FY 2023/24 CWSRF Intended Use Plan and recommended for $15 million in grant funding through the Water Recycling Funding Program (WRFP). While the project partners currently plan on pursuing financing through WIFIA, the project will remain eligible for WRFP grant funding. The WRFP grant agreement is anticipated to take 12 months to negotiate once the award has been finalized.
Technical
Final design and permitting efforts are ongoing to advance the project to the point where it is ready for construction. Accomplishments since the last semi-annual report include the following:
o Design of the advanced water purification facility has progressed to 60%. o An EIR Addendum was circulated for public comment in June 2023 an adopted by City Council in September 2023.
o Applications for pipeline crossings of Union Pacific Railroad (UPRR) right- of-way have been submitted to UPRR for review and approval.
Governance
A second joint meeting of the three City Councils and the JPA Board of Directors was held on June 5, 2023. A project update was provided and a study session was held to discuss methods to advance local worker participation on the Central Coast Blue project.
The project Management Team – comprised of the JPA General Manager, consultant staff, and the City Managers, Public Works Directors, and Administrative Services Directors from each partner agency – continue to meet monthly to discuss key project issues and provide guidance and oversight for the project team.
Council Agenda 3-5-2024 12.A-4
New Production Well
This project will construct a new production well, which will add redundancy to the system and eventually replace Well 5, which has been rebuilt twice in the last twenty years and is not expected to be rebuilt again in the future. A design contract was awarded in February 2023. Construction of this project was anticipated to occur with Central Coast Blue, however staff has determined that it would be more prudent to advance the timeline of this project.
Council Goal – Maintain a Focus on Public Safety
Public Safety Facility
The City Council has awarded a contract to the design-build team for its services to design and construct a new police station and renovations and additions to the existing police and fire station facility, and related site work at 1000 Bello Street. Staff and the consultant team are continuing to develop the design-build construction documents for the project.
Staff anticipates construction will commence in May 2024.
Council Goal - Community Character and Quality of Life for Residents
Ventana Tennis Courts Project
The project consists of construction of new tennis and pickleball courts on Ventana Drive (Ventana Courts). These courts will consist of two pickleball courts, one tennis court, and a parking lot. The City Council has directed staff to place this project on hold.
Price Historical Park Event Green
This project is on hold pending staffing. This project will create an event green area per the Park’s Master Plan.
Hinds/Oceanview Pedestrian Path
This project will construct a sidewalk between Price Canyon Road/Hinds Street to Ocean View Avenue adjacent to Highway 101. Design documents are currently being prepared.
Addie Street Restroom Replacement
This project will replace the current restroom with a larger restroom that incorporates a lifeguard office. The design consultant is working on finalizing the design and will complete plans, specifications and estimate package to get the project bid ready. The project was presented to the PRBC and will be presented to the Planning Commission at a date still to be determined.
Council Goal – Community Character and Quality of Life for Residents
Bello Street and Price Canyon Road Signal
The project will construct a signal at the intersection of Bello Street and Price Canyon Road. The design consultant is moving forward with the design and preparing project plans and specifications.
Council Agenda 3-5-2024 12.A-5
Bello Bridge Trail Continuation
This project will extend the existing trail under the new Bello Street Bridge. Construction is anticipated to take place in spring 2024. Staff is soliciting quotes from contractors.
Other Projects
Pier Avenue Stairs Closure
An Engineering consultant has been contracted to prepare plans and specifications for removal of the stairs.
Bello Street/Wadsworth Avenue Waterline
This project will abandon a 6-inch pipeline through Judkins Middle School and install an 8-inch pipeline from the Bello Booster Pump Station to Bello Street and along Bello Street from Main Street to Wadsworth Avenue. A contract was awarded in January 2024 to prepare plans and specifications.
Toucan Terrace Sewer Trestle Rehabilitation
Staff advertised the project for construction bids in April 2023, however no bids were received. Based on the Public Contract Code, staff began seeking to negotiate directly with contractors in order to secure a construction contract. An informal bid was issued and two bids were received on February 23, 2024. A construction contract will be presented to the Council for award at the March 19, 2024 meeting.
Shell Beach Parking Lot
This project includes adding a parking lot on Shell Beach Road to the north of the Shell Beach Road tennis courts and pickleball courts. The current Zoning Code limits the parking lot to 5,000 square feet.
Cliff Avenue/Ocean Boulevard Strom Drain Repair
The project will repair the damaged storm drain outfall at the intersection of Cliff Avenue and Ocean Boulevard. The project is funded through the Federal Emergency Relief program and is currently in the Right of Way (RW) phase. A subsurface easement has been obtained from the adjacent private property owner and staff is working with PG&E for utility pole relocation. Staff has also submitted a time extension request and is waiting for Caltrans approval of that request.
Charles Street Reservoir Replacement project
On hold pending staffing. This project will replace the Charles Street Reservoir, which has reached the end of its useful life.
Bello Street Reservoir Roof Replacement Project
On hold pending staffing. This project will replace the floating roof on the Bello Street Reservoir, which has reached the end of its useful life, with a wooden roof suspended over the reservoir that will last longer than a floating roof and require less maintenance over its useful life.
Council Agenda 3-5-2024 12.A-6
FISCAL IMPACT:
There is no direct fiscal impact associated with this report.
ATTACHMENTS:
None.
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:
Council Agenda 3-5-2024 12.A-7