PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.G
Meeting Date: September 16, 2025
TITLE:
Contract Amendment #1 with ENGEO Incorporated for the Cliff Avenue and Ocean Boulevard Storm Drain Repair Project
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with ENGEO Incorporated for design of the Cliff Avenue and Ocean Boulevard Storm Drain Repair project in the amount of $56,500 and appropriating related budget adjustments in Fiscal Year 2026.
DISCUSSION:
On May 2, 2023, the City Council awarded a contract to ENGEO Incorporated (ENGEO) for professional engineering services for the Cliff Avenue and Ocean Boulevard (Cliff/Ocean) Storm Drain Repair project. The project was originally included as one of five components of the Ocean Boulevard Improvements Project; however, due to extensive environmental and right-of-way requirements, it was separated from the other portions of that project.
During the design process, several permitting issues arose requiring additional work to complete the design. The original outfall structure encroached on the beach, which raised permitting concerns with the California Coastal Commission. To avoid potential issues, the plans were modified so that the outfall now terminates at the bluff face. This adjustment removed the need for a Coastal Development Permit while maintaining the project’s stormwater and bluff stabilization objectives.
The City’s plan check process also generated additional comments requiring revisions to the design. These included updates to reflect the latest building code cycle, verification of geotechnical and coastal hazard analyses, and revisions to structural details. ENGEO is working to complete the final design of the Cliff/Ocean Storm Drain Repair Project and staff anticipate advertising for construction bids in the coming weeks.
ENGEO has provided a proposal to address the required design modifications. The proposed Amendment #1 (Attachment 2) includes budget for one additional round of plan check to address remaining comments, and it also provides for bid support services including responses to Requests for Information and preparation of addenda.
Conclusion and Recommendation
Staff recommends the Council adopt a resolution (Attachment 1) authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with ENGEO Incorporated for design of the Cliff Ave. and Ocean Blvd. Storm Drain Repair project in the amount of $56,500 and appropriating related budget adjustments in Fiscal Year 2026.
Council Agenda 9-16-2025 9.G-1
FISCAL IMPACT:
The fiscal impact of adopting the attached resolution is an additional $56,500. There is $48,833 in the FY 2026 Capital Projects Fund Cliff Ave and Ocean Blvd Storm Drain Repair project account to support the proposed Amendment #1, as illustrated in Table 1.
Table 1: Cliff Ave and Ocean Blvd Storm Drain Repair Project Description FY 2026 Amount
Project Budget $48,833
Project Cost 56,500
Budget Shortfall $(7,667)
Staff recommends that the Council appropriate an additional $7,667 in professional services account expenditures and the full $56,500 in Federal Highway Administration grant revenues in this project for FY 2026.
Federal Grant
This project is federally funded through the Federal Emergency Relief (ER) program with the Federal Highway Administration (FHWA) and Caltrans Local Assistance (Caltrans LA). To date the City has been granted a total of $393,453 in ER funding for professional engineering services for the Cliff/Ocean project of which 88.53% (or $348,324) would be reimbursed by FHWA/Caltrans LA and 11.47% (or $45,129) would be supported by City match. Staff is working with Caltrans LA to request additional funding to cover all costs associated with the design phase of the project, including the proposed Amendment #1.
ATTACHMENTS:
1. Resolution
2. ENGEO Amendment #1
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie Gaglione, PE, Director of Public Works City Manager Approval:
Council Agenda 9-16-2025 9.G-2
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1
TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH ENGEO
INCORPORATED FOR DESIGN OF THE CLIFF AVENUE AND OCEAN
BOULEVARD STORM DRAIN REPAIR PROJECT IN THE AMOUNT OF $56,500 AND APPROPRIATING RELATED BUDGET ADJUSTMENTS IN FISCAL YEAR 2026 WHEREAS, on May 2, 2023 the City Council awarded a contract to ENGEO Incorporated (ENGEO) for professional engineering services for the Cliff Avene and Ocean Boulevard (Cliff/Ocean) Storm Drain Repair project; and
WHEREAS, the project was originally included as one of five components of the Ocean Boulevard Improvements Project; however, due to extensive environmental and right of way requirements it was separated into a stand-alone project; and WHEREAS, during the design process, several permitting issues arose requiring additional work to complete the design; and
WHEREAS, ENGEO has provided a proposal to address the required design modifications; and
WHEREAS, there is sufficient budget to cover the proposed Amendment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 to the existing Professional Services Agreement with ENGEO Incorporated for design of the Cliff Ave. and Ocean Blvd. Storm Drain Repair project in the amount of $56,500, in substantially the form attached to staff’s report dated September 16, 2025.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $56,500 of Federal Highway Administration grant revenues and $7,667 of professional services expenditures in the Capital Projects Fund Cliff Ave and Ocean Blvd Storm Drain Repair project in Fiscal Year 2026.
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 16th day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 9-16-2025 9.G-3
Attachment 1
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
Council Agenda 9-16-2025 9.G-4
Attachment 1
AMENDMENT # 1
to the
JULY 25, 2023 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND ENGEO INCORPORATED
Pursuant to the July 25, 2023 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and ENGEO Incorporated, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1. Additional services shall be performed as set forth in the proposal dated August 22, 2025, which is attached hereto and by this reference made a part hereof.
2. Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of fifty-six thousand five hundred dollars ($56,500), without prior written approval of the City.
3. The revised fee under the July 25, 2023 contract, plus this addendum, is two hundred sixteen thousand five hundred dollars ($216,500).
4. The term end date of the agreement is hereby revised to June 30, 2026.
5. All other provisions of the subject agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Rosemarie R. Gaglione, PE
Title: Director of Public Works
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: Dean J. Pucci
Title: City Attorney
VENDOR:
ENGEO Incorporated
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope/Cost Propo sal
Council Agenda 9-16-2025 9.G-5
Attachment 2
GEOTECHNICAL
ENVIRONMENTAL
WATER RESOURCES
CONSTRUCTION SERVICES
COASTAL/MARINE GEOTECHNICS
2646 Santa Maria Way y Suite 107 y Santa Maria, CA 93455 y (805) 888-1110 y [email protected] www.engeo.com
Project No.
T3051.000.000
July 17, 2025
Revised August 22, 2025
Mr. Daniel Contreras
City of Pismo Beach
760 Mattie Road
Pismo Beach, CA 93449
Subject: Ocean Boulevard Improvement Project Component B – Cliff Ave & Ocean Blvd Storm Drain Repair
City of Pismo Beach Vendor Agreement date Jule 25, 2023 City of Pismo Beach Permit No.: P24-00073
Pismo Beach, California
ESTIMATE OF ADDITIONAL DESIGN FEES
REQUEST FOR ADDENDUM TO VENDOR AGREEMENT
FOR PROFESSIONAL SERVICES
Dear Mr. Contreras:
Per your request, ENGEO has prepared the attached estimate of additional requested design fees associated with the Component B storm drain repair measures located on the seaward side of the intersection at Ocean Boulevard and Cliff Avenue near the southwestern end of Dinosaur Caves Park (Latitude 35.152506°, Longitude -120.667655°) in Pismo Beach, California.
ADDITIONAL SCOPE OF SERVICES
You have requested we provide the following additional scope of services.
x Revisions to the plans based on comments from the Public Works Department and reconfiguration of the seawall and storm drain outfall. x Review and respond to review comments by the Building and Planning Department. Doing so will require additional geotechnical and structural engineering analyses for code updates and a revision of the plans.
x Attend on-site pre-bid site walk.
x Respond to Requests for Information (RFIs) during project bidding. x Preparation of addenda as needed.
ESTIMATE OF ANTICIPATED ADDITIONAL FEES
We are requesting an increase in budget of $56,500, with the various subconsultant’s fees broken down in the attached table.
Council Agenda 9-16-2025 9.G-6
Attachment 2
City of Pismo Beach T3051.000.000
Ocean Boulevard Improvement Project Component B – July 17, 2025 Cliff Ave & Ocean Blvd Storm Drain Repair Revised August 2, 2025 ESTIMATE OF ADDITIONAL DESIGN FEES - REQUEST FOR ADDENDUM TO Page 2
VENDOR AGREEMENT FOR PROFESSIONAL SERVICES
VENDOR AGREEMENT FOR PROFESSIONAL SERVICES AGREEMENT
If the above scope of services and fee are acceptable, please issue an addendum to our Vendor Agreement for Professional Services as our authorization to proceed. Our services are unable to commence without prior receipt of an executed agreement.
We look forward to working with you to complete the design for this challenging and difficult project. Please contact us if you have any questions or require additional information.
Sincerely,
ENGEO Incorporated
Randy Hildebrant, PE, GE Josef J. Tootle, PE, GE
Associate Principal
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Attachment: Estimate of Additional Design Fees
Council Agenda 9-16-2025 9.G-7
Attachment 2
Item
No.ADDITIONAL DESIGN SERVICES Estimated Cost
Sea Cave Design Adjustment Component B - Ocean Blvd & Cliff Ave Project 1 Rincon - Cultural Resources $ - 2 TerraCosta/ENGEO - Civil and Geotechnical Design & Coordination $ 40,000 3 MBS Land Surveying $ -
4 Insight Structural Engineering - Structural $ 16,500 5 Blue Lake Civil - Pile Cap Walkway $ - Estimated Additional Fees:56,500$
Notes:Construction Management & Inspection Services bid under separate contract.
Not including separate ESDC (Engineering Services During Construction). 8/22/2025
Estimate of Additional Design Fees For
Ocean Blvd Improvement Project
and Cliff Ave/Ocean Blvd Bluff & Storm Drain Repair
City of Pismo Beach
T3051.000.000
August 22, 2025
Council Agenda 9-16-2025 9.G-8
Attachment 2