PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.B
Meeting Date: August 19, 2025
TITLE:
Pier Airstream Trailer Concession Discussion
RECOMMENDATION:
Provide direction to staff regarding the use of an airstream trailer for concessions on the Pier.
BACKGROUND:
On March 20, 2018, the City Council approved the concept of the Pier Plaza / Parking Lot Upgrade project, which included the use of airstream trailers, to be located on the first diamond of the Pier, to function as a Visitor Information Kiosk (VIK), bait shack, and concession stand. On October 16, 2018, the City Council authorized the City Manager to negotiate and purchase used airstream trailers to be used for the project.
In August 2019, the City undertook a competitive bid process for a food vendor to operate concessions out of one of the airstream trailers. The selection committee selected Rib Line by Brian, LLC (Rib Line), and the City Council awarded the license agreement on September 3, 2019. Rib Line began work in November 2020 under a three-year agreement with two one-year options for renewal. The current agreement expires in October 2025.
In July 2025, in anticipation of the upcoming contract term end, staff published a Request for Proposals seeking proposals for operation of the airstream trailer that serves as a restaurant, and four proposals were received.
Discussion
On August 5, 2025, the City Council directed staff to pause the selection process and return at a future meeting with a discussion item regarding the restaurant concession on the first diamond of the Pier. Staff has prepared an overview of the land use designation that established the concession use at this location, and a financial summary of the revenues and expenditures associated with the restaurant concession.
Land Use History
In 2003, City Council adopted Resolution R-03-50, making a number of General Plan amendments, including the designation of the Pier as open space (OS). This action was ratified by the California Coastal Commission in September 2003. Staff has determined that, at some point between 2003 and 2006, the General Plan designation for the Pier was changed from OS to resort commercial (RC) for the first diamond of the Pier on certain documents, which change was ultimately incorporated into the General Plan/Local Coastal Program (GP/LCP) document. Since that time, staff’s research has resulted in the conclusion that the change from OS to RC was not formally accomplished by legislative action. As such, if the City Council desires to continue commercial uses on the Pier, a General Plan amendment and zoning (land use) change will be required.
Council Agenda 8-19-2025 12.B-1
Financial History:
A summary of revenues and expenditures associated with the restaurant airstream trailer are shown below.
Revenues:
The current agreement for the restaurant airstream trailer includes a base license fee of $2,431, subject to an annual CPI adjustment, plus 2% of gross sales revenue, paid by the licensee to the City. Over the almost five-year term, total revenue collected from the licensee for both the base license fee and the 2% of gross sales revenue amounts to $217,376 through August 2025. Including forecasted revenue through October 2025, the revenue total is $225,737, as shown in Table 1.
Table 1. Revenue Collected
2021 2022 2023 2024
2025
Forecast
through
October
Total
Revenue $47,230 $47,546 $44,478 $43,723 $42,760 $225,737 Expenditures:
The restaurant airstream trailer cost $151,458, which includes the initial purchase price, conversion, and improvements. Utility costs incurred over the license agreement term to date are as follows: PG&E: $23,421, SoCalGas: $23,395, Internet: $3,168, and Security:
$2,289. All utility expenses are fully reimbursed by the licensee.
In addition, ongoing operational costs for maintenance and repairs specific to the restaurant trailer over the past five years total $21,445, of which $12,170 is related to exterior polishing.
Overall, revenue from the base license fee and the 2% of gross sales revenue has fully covered the initial investment in the restaurant trailer over the past five years.
Alternatives (if Desired)
Staff has prepared three potential scenarios for the City Council’s discussion:
1. Continue with the RFP process and select a vendor for the airstream concessions.
This use would then be incorporated into the LCP/General Plan Amendment process.
2. Cancel the RFP process and take no further action until a later date. The existing license agreement would be terminated at the end of the current period.
3. Cancel the RFP process, do not pursue a third-party vendor, and remove the airstream trailer from the Pier.
Council Agenda 8-19-2025 12.B-2
Conclusion and Recommendation
Provide direction to staff the use of an airstream trailer for concessions on the Pier.
FISCAL IMPACT:
There is no fiscal impact associated with this discussion. However, depending on the City Council’s direction to staff, there will likely be expenditures or revenue impacts, which staff can analyze further at the request of City Council.
Submitted by: Scot Graham, Community Development Director City Manager Approval:
Jorge Garcia, City Manager
Council Agenda 8-19-2025 12.B-3