PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.I
Meeting Date: August 5, 2025
TITLE:
Acceptance of Coastal Mitigation Payment in Accordance with California Coastal Commission Amended Coastal Development Permit (CDP) 3-23-0014-AS RECOMMENDATION:
Adopt a Resolution accepting a coastal mitigation fee in the amount of $548,170 in compliance with Special Condition No. 4 of California Coastal Commission Amended Coastal Development Permit No. 3-23-0014-A1 for 121 Indio Drive; and authorizing initiation of related memorandum of understanding.
DISCUSSION:
The City of Pismo Beach has received a payment of $548,170 from Mr. Gary Grossman in accordance with Special Condition 4 of Amended Coastal Development Permit (CDP) 3-23-0014-A1, issued by the California Coastal Commission. This payment is intended to mitigate shoreline impacts associated with approved armoring and development at 121 Indio Drive and is designated exclusively for public access and recreational projects within or near the Pismo Beach coastal zone.
Per the terms of the CDP, these funds must be placed in an interest-bearing account and used solely for projects such as beach access stairways, coastal pathways, park improvements, and other shoreline recreational enhancements. The City will coordinate with the California Coastal Commission’s Executive Director prior to expending any funds to ensure compliance with the CDP's intent. In addition, a Memorandum of Understanding (MOU) must be established between the City and the Coastal Commission to guide the use of these funds and confirm that any future projects are properly permitted.
Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) accepting the $548,170 payment and authorizing the City Manager or designee to place the funds in an interest-bearing account and initiate development of the required MOU with the California Coastal Commission. A follow-up staff report will be presented once the MOU is finalized and eligible projects are identified for implementation.
FISCAL IMPACT:
The fiscal impact of adopting the subject resolution is an additional $548,170 that will be placed in an interest-bearing account.
ATTACHMENTS:
1. Resolution
Submitted by: Scot Graham, Community Development Director City Manager Approval:
9.I-1Council Agenda 8-5-2025
PAGE 1 OF 2
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA ACCEPTING A COASTAL MITIGATION FEE IN THE AMOUNT OF $548,170 IN COMPLIANCE WITH SPECIAL CONDITION NO. 4 OF CALIFORNIA COASTAL COMMISSION AMENDED COASTAL DEVELOPMENT PERMIT NO. 3-23- 0014-A1 FOR 121 INDIO DRIVE; AND AUTHORIZING INITIATION OF RELATED
MEMORANDUM OF UNDERSTANDING
WHEREAS, the City of Pismo Beach has received a payment of $548,170 from Mr. Gary Grossman in accordance with Special Condition 4 of Amended Coastal Development Permit (CDP) 3-23-0014-A1, issued by the California Coastal Commission; and WHEREAS, this payment is intended to mitigate shoreline impacts associated with approved armoring and development at 121 Indio Drive and is designated exclusively for public access and recreational projects within or near the Pismo Beach coastal zone; and WHEREAS, per the terms of the CDP, these funds must be placed in an interest-bearing account and used solely for projects such as beach access stairways, coastal pathways, park improvements, and other shoreline recreational enhancements; and WHEREAS, the City will coordinate with the California Coastal Commission’s Executive Director prior to expending any funds to ensure compliance with the CDP's intent, and a Memorandum of Understanding (MOU) must be established between the City and the Coastal Commission to guide the use of these funds and confirm that any future projects are properly permitted.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby:
1. Accepts a $548,170 payment for coastal mitigation per California Coastal Commission Amended Coastal Development Permit (CDP) 3-23-0014-A1 for 121 Indio Drive;
2. Authorizes the City Manager or designee to place the funds in an interest-bearing account; and
3. Authorizes the City Manager or designee to initiate development of the required Memorandum of Understanding (MOU) with the California Coastal Commission for use of the funds.
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 5th day of August 2025, by the following vote:
AYES:
NOES:
ABSENT:
9.I-2Council Agenda 8-5-2025
Attachment 1
PAGE 2 OF 2
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
9.I-3Council Agenda 8-5-2025
Attachment 1