Central Coast Blue Owner’s Advisor
and Management Support Contracts
Agenda Item 12.B
By Rosemarie Gaglione, PE
Public Works Director
Meeting Date: February 3, 2026
Background
At the October 15, 2025 joint meeting of the Pismo Beach City Council, Pismo Beach Financing Agency Board of
Directors and Central Coast Blue Regional Recycled Water Authority Board of Directors, staff received direction on the two items before you today:
•Proceed with Fixed Price Design Build
•Take the necessary actions to procure an Owner’s Advisor, and •Complete the Communication Plan for the project
Owner’s Advisor Services
November 10, 2025 – formal RFP/RFQ issued
•Four proposals received by the closing date of December 23, 2025 •Interviews were held with top three firms on January 14, 2026 •GHD, Inc. selected as the most qualified.
•Negotiations successfully concluded January 22, 2026
Owner’s Advisor Services
•Lead the development of the bridging documents, design-build RFQ/P and rating criteria, and assist with selection of design build firm •Ensure alignment with project goals and risk management best practices
•Maintain schedule and risk register
•Ensure compliance with grant funding requirements
•Under a future contract, will remain with the project through commissioning and close-out
Management Support Services
On August 5, 2025, the City Council authorized the City Manager to enter into a Professional Services Agreement with Water Systems Consulting, Inc. (WSC)
•Scope of the agreement was to develop a community engagement plan and move forward with the project delivery plan; this work has been completed
Management Support Services
WSC provided a proposal to continue with project management support services
•Scope of the proposed agreement includes:
•Internal project management support
•Funding and financing support
•Implementation of the Community Engagement Plan
•Permitting coordination
•As-needed technical support for staff
Budget Adjustments
Currently Available Budget:
•Water Enterprise Fund $118,462
•Wastewater Enterprise Fund $106,005
Proposed Contract Costs:
•Water Enterprise Fund: $315,480
•Wastewater Enterprise Fund: $640,520
Shortfall: $456,000
Additional Funding:
•Water Enterprise Fund: $315,480
•Wastewater Enterprise Fund: $640,520
Total Requested Budget Adjustments: $956,000
Timeline
2026 2027
•Develop Procurement Strategy and
Evaluation Criteria (February-March)
•Develop RFP and Contract Documents
(April- June)
SummerSummerSummer
SummerSpring
•Release RFP for Design Build Entity
(June)
•Selection and Negotiation (August-
September)
Fall
Award and Execute Contract
(October 20, 2026)
•AWPF and
Injection Well
Design (December
2026-August 2027)
•Construction (August 2027-
August 2028)
•Influent and Return Outfall
Lines Construction
•Injection Well Construction
(September 2027-November
2027)
•Start up, Commissioning and
Testing (November 2028-January
2029)
2028
SummerWinter Fall/WinterFall
Central Coast Blue must be operational by the end of 2029.
9 Working with our Funding Partners
UP TO
$16.5 millionTitle XVI WIIN
Act Program
$8 millionProposition 1
Groundwater
Grant Program
Executed
Agreements
Identified
for Funding
Clean Water State
Revolving Fund
Water Recycling
Funding Program $15 million
UP TO
$28.4 million
GRANTS
GRANT
LOAN
Ongoing Coordination
To ensure that the project is fully operational before 2030, staff and consultants will be working with the following agencies during project development:
•California Department of Drinking Water
•Regional Water Quality Control Board
•California Water Resources Control Board
•Caltrans
•State Parks
•County of San Luis Obispo
•City of Grover Beach
•Railroad
•South County Sanitation District (sewer line)
Recommendation
Adopt a resolution authorizing the City Manager to enter into Professional Services Agreements related to Central Coast Blue with:
1. GHD, Inc. in an amount not to exceed $461,438 for
Owner’s Advisor Services; and
2.WSC in an amount not to exceed $218,515 for
Management Support Services related to Central
Coast Blue; and
Appropriating related budget adjustments in Fiscal Year 2026.
Questions?