PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.B
Meeting Date: June 3, 2025
TITLE:
10-Year Capital Improvement Plan
RECOMMENDATION:
Adopt a Resolution approving the 10-Year Capital Improvement Plan for Fiscal Year 2026 through Fiscal Year 2035.
DISCUSSION:
The 10-Year Capital Improvement Plan (CIP) is an important financial planning process and document for the City of Pismo Beach. This plan identifies the City’s immediate capital needs as well as seeks to capture the long-term capital needs within the revenues available and lays out priorities making the City eligible for grant requests from the state and federal government. The plan is updated biennially along with the City’s biennial budget process and is subject to change as the City’s needs become more defined and individual projects move along in their respective planning and budgeting processes. The 10-Year CIP is consistent with the Fiscal Year (FY) 2026 and FY 2026 Adopted Budgets and the City’s General Plan and includes all the various capital projects that staff has identified through a thorough development process. As such, staff recommends that Council adopt the attached Resolution (Attachment 1) to approve the 10-Year CIP. A digital version of the 10-Year CIP is available online at pismobeach.org/10YearCIP.
Developing the 10-Year Capital Improvement Plan
The last 10-Year CIP was approved in August 2023 for FY 2024 through FY 2033. Staff has taken initiative to complete a new plan in response to the City Council’s ambitious capital project goals. As the Council and staff recognize the importance of having an updated 10-Year CIP, staff will continue to provide an updated plan every two years along with the budget.
In order to develop the 10-Year CIP (Attachment 2), staff drafted a framework and then distributed the plan for review by all departments. City staff from all departments put together lists of capital projects, their estimated cost, and an estimated funding source for each project. The objectives used to develop the CIP include:
Preserve and improve the infrastructure of Pismo Beach through capital asset construction, rehabilitation, and maintenance;
Maximize the useful life of capital investments by scheduling major renovations and modifications at the appropriate time in the life cycle of the facility; Identify and examine current and future infrastructure needs and establish priorities among projects so that available resources are used to the community’s best advantage; and
Improve financial planning by looking ahead to major expenditures to allow time to identify funding sources.
Council Agenda 6-3-2025 12.B-1
Capital projects originate from a variety of sources. Advisory Bodies and task forces typically advise the City Council or develop long-term plans that recommend certain types of improvements. In some cases, individual residents request improvements to their streets, playgrounds, or other City facilities. Neighborhood associations and business groups may also suggest projects and work with City staff on projects. Some projects are initiated by staff based on City-adopted master plans, such as the Complete Streets Master Plan or the Water Master Plan, while other projects are brought forward by staff based on knowledge of the City’s needs or other needs identified while working on another project or routine maintenance. Typically, more projects are proposed than can be completed with available resources. Therefore, the projects are often prioritized based on the City Council’s goals, direction, and vision, along with the City’s ability to fund them and staff’s ability to complete them in a timely manner.
The FY 2026 and FY 2027 lists of projects are those that are included in the FY 2026 and FY 2027 Adopted Budgets, which was adopted on June 3, 2025. Additionally, the Utilities projects for water and wastewater related projects are consistent with the five-year plan outlined in the upcoming Water and Wastewater Rate Study. FY 2028 through FY 2035 includes projects that have not been approved by the Council and are best estimates as to what types of projects can be expected in the next 10 years.
After much review and consideration, including identifying potential funding sources, ensuring consistency with the FY 2026 and FY 2027 Proposed Budgets staff completed a draft version on May 13, 2025. On May 13, 2025, the Planning Commission reviewed the draft 10-Year CIP and found it to be consistent with the City’s General Plan.
The Purpose of a 10-Year CIP
The 10-Year CIP is an important instrument for planning for funding and timing of the needs and priorities that have been approved of by the City Council. The effective use of a CIP process provides considerable advance project identification, planning, evaluation, scope definition, design, public discussion, cost estimating, and financial planning. The 10-Year CIP provides for the ability to forecast future projects for financial planning purposes, to serve as a basis for the creation of some of the City’s development impact fees, water and wastewater service charges, and to ensure the City’s infrastructure is maintained and appropriate for the community. Further, many outside funding opportunities such as grants require that a project be identified in a City Council-adopted plan to meet the application guidelines. Some projects in the 10-Year CIP may be outside of the City’s funding capacity, however including them in this document will help those projects qualify for such funding.
Summary of Capital Projects by Project Type
The City’s CIP projects listed in this report total $169 million, which are broken out into multiple project types. The three largest project types include utilities at $88 million over 10 years, including $59 million for recycled water project Central Coast Blue; streets and transportation at $53 million over 10 years, including $18.7 million of routine street maintenance, $15 million of paving and drainage projects, and $13 million for the Shell Beach Road multi-use path project at $13 million. Table 1 provides the amounts by fiscal Council Agenda 6-3-2025 12.B-2
year for each project type, followed by Chart 1 that illustrates the capital projects by project type.
Table 1: FY 2026 through FY 2035 Capital Improvement Projects By Project Type Chart 1: FY 2026 through FY 2035 Capital Improvement Projects By Project Type Type FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Total Utilities 2,645,000$ 4,900,000$ 60,114,000$ 8,779,300$ 3,511,000$ 3,862,800$ 2,352,000$ 752,000$ 752,000$ 752,000$ 88,420,100$ Streets and Transportation 1,250,000 4,700,000 19,580,000 5,030,000 2,930,000 5,030,000 2,030,000 5,030,000 2,030,000 5,030,000 52,640,000 Drainage 3,800,000 - - - 3,000,000 450,000 - - -- 7,250,000 Promenade and Beach Access 280,000 - - 5,200,000 250,000 - - 200,000 250,000 - 6,180,000 Public Facilities 450,000 1,100,000 1,200,000 515,000 1,000,000 - 100,000 -- - 4,365,000 Parks 575,000 - 405,000 140,000 100,000 895,000 1,445,000 45,000 -- 3,605,000 Technology 80,000 - 600,000 175,000 270,000 580,000 - 1,000,000 250,000 150,000 3,105,000 Parking 448,000 48,000 250,000 50,000 136,000 275,000 130,000 50,000 50,000 50,000 1,487,000 Vehicles 154,000 52,000 - - - - 587,000 -- - 793,000 Restrooms - - - - - - - 600,000 -- 600,000 Bluff Protection - - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 400,000 Studies - - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 400,000 Total Project Types 9,682,000$ 10,800,000$ 82,249,000$ 19,989,300$ 11,297,000$ 11,192,800$ 6,744,000$ 7,777,000$ 3,432,000$ 6,082,000$ 169,245,100$ Council Agenda 6-3-2025 12.B-3
Summary of Capital Projects by Funding Source
The first two fiscal years of the plan are budgeted in the FY 2026 and FY 2027 Adopted Budgets. The future fiscal years include estimated costs and potential funding sources, but are not guaranteed to be supported by those funds depending on their availability. If a funding source could not be identified, the project was listed in the General Fund.
However, this is subject to change depending on the projects that Council ultimately approves and the funds available. It should be noted that grant funds will need to be secured and do not include actual grant awards. Table 2 lists the various potential funding sources for all capital projects. This table is followed by Chart 2, which provides a summary of the funding sources of the 10-Year CIP by fiscal year, and Chart 3, which provides a summary of funding sources for all years
Table 2: FY 2026 through FY 2035 Capital Improvement Projects By Funding Source Funding Source FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Total Grants 3,364,140$ -$ 34,095,000$ -$ 900,000$ -$ -$ -$ -$ -$ 38,359,140$ Transaction Sales Tax 2,520,860 4,700,000 2,530,000 5,030,000 2,030,000 5,030,000 2,030,000 5,030,000 2,030,000 5,030,000 35,960,860 Clean Water State Revolving Loan Fund - - 35,296,000 - - - - -- - 35,296,000 General Fund 580,000 200,000 8,541,000 6,723,000 4,250,000 1,845,000 1,495,000 945,000 100,000 250,000 24,929,000 Water Enterprise Fund 165,000 4,072,000 410,000 4,269,300 1,549,000 3,760,800 1,197,000 610,000 660,000 610,000 17,303,100 Wastewater Enterprise Fund 2,480,000 880,000 342,000 3,742,000 1,962,000 182,000 1,742,000 142,000 192,000 142,000 11,806,000 Technology Services Fund 80,000 - 600,000 175,000 120,000 - - 1,000,000 150,000 - 2,125,000 LBID 2 Fund 660,000 600,000 200,000 - - - - -- - 1,460,000 Parking Enterprise Fund 178,000 348,000 50,000 50,000 136,000 275,000 130,000 50,000 50,000 50,000 1,317,000 Park Development Fund - - 185,000 - 100,000 100,000 150,000 -- - 535,000 Pier Enterprise Fund - - - - 250,000 - -- 250,000 - 500,000 Motor Vehicle Replacement Fund 54,000 - - - - - - -- - 54,000 Total All Funding Sources 10,082,000$ 10,800,000$ 82,249,000$ 19,989,300$ 11,297,000$ 11,192,800$ 6,744,000$ 7,777,000$ 3,432,000$ 6,082,000$ 169,645,100$ Council Agenda 6-3-2025 12.B-4
Chart 2: FY 2026 through FY 2035 Capital Improvement Projects by Funding Sources and Fiscal Year
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Chart 3: FY 2026 through FY 2035 Capital Improvement Projects by Funding Sources Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) approving an updated 10-Year Capital Improvement Plan for Fiscal Years 2026 through 2035.
FISCAL IMPACT:
There is no direct fiscal impact of approving the attached Resolution to approve the 10- Year CIP. The FY 2026 through FY 2027 projects are included in the FY 2026 and FY 2027 Adopted Budgets.
ATTACHMENTS:
1. Resolution
2.10-Year CIP FY 2026 – FY 2035 – Online-only attachment1 Submitted by: Rosemarie Gaglione, Public Works Director City Manager Approval:
1 Interactive digital version available at pismobeach.org/10YearCIP Archival version available in the Access Pismo Public Records Portal at https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=683321&dbid=0&repo=Laserfic he
Council Agenda 6-3-2025 12.B-6
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROVING THE 10-YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR 2026 THROUGH FISCAL YEAR 2035
WHEREAS, the 10-Year Capital Improvement Plan (CIP) is an important financial planning process and document for the City of Pismo Beach; and WHEREAS, the plan is updated biennially along with the City’s biennial budget process and is subject to change as the City’s needs become more defined and individual projects move along in their respective planning and budgeting processes; and WHEREAS, the 10-Year CIP is consistent with the Fiscal Year 2026 and FY 2027 Adopted Budgets and the City’s General Plan and includes all the various capital projects that staff has identified through a thorough development process; and WHEREAS, City staff from all departments put together lists of capital projects, their estimated cost, and an estimated funding source for each project based on certain criteria and objectives; and
WHEREAS, on May 13, 2025, the Planning Commission reviewed the draft 10-Year CIP and found it to be consistent with the City’s General Plan.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves the City of Pismo Beach 10-Year Capital Improvement Plan for Fiscal Year 2026 through Fiscal Year 2035, in substantially the form attached to staff’s report dated June 3, 2025.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 3rd day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
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Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Council Agenda 6-3-2025 12.B-8
Attachment 1