B. Section 101.1 is modified to properly cite the code as the California Existing Building Code.
C. Section 103.1 is modified to reference the entity within the jurisdiction organization responsible for administering the construction codes.
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D. Section 104.6.1 is added to provide the building official the ability to issue a citation for a violation of the code.
E. Section 104.10 is added to establish procedures to be followed when archeological resources are discovered during construction activities.
F. Section 105.3.2 is modified to simplify management of permit applications by establishing a permit application to be valid for one year before expiration, with time extensions granted by the building official as long as a time extension is not beyond the effective date of the next edition of the California Building Standards Code.
G. Section 108.2.1 establishes the plan check fee assessment criteria found in prior code, but inadvertently missing in the new code.
H. Section 108.4 is amended to establish an investigation fee for work started without a permit.
I. Section 109.3.5 is amended to delete the exception for required inspection of lath and gypsum wallboard. Verification of proper attachment of these products is considered essential regardless of the type of assembly.
J. Section 111.4 is added to require new electric and communication service connections to be provided by underground wiring, with some exceptions allowed. This amendment is consistent with underground utility requirements in other parts of the Municipal Code and General Plan provisions.
K. Section 112.1 is modified to allow one Board of Appeals to serve as the appeals board for all codes adopted under Section 15.08.010. This combination provision will reduce the number of volunteer board members required, which is often a difficult recruiting process. This section also sets the number of Board members at five, or seven for disabled access issues.
L. Section 113.1 is amended to prohibit the use of a travel, trucking trailer, cargo container, or rail car for habitation, storage or any structural purpose. A travel trailer or recreational vehicle is prohibited from being used for residential purposes unless located in an approved campground or recreational vehicle park.
M. Section 113.4 is modified to include reference to penalties found elsewhere in the Municipal Code to aid enforcement.
N. Section 114.4 is modified to include reference to code enforcement procedures found elsewhere in the Municipal Code to aid enforcement.
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O. Section 115.1 is modified to reference the International Property Maintenance Code for procedures to order removal or repair of unsafe building conditions.
P. Section A102.1 is amended to add exceptions for those unreinforced buildings which are exempt from compliance with this chapter. These exceptions are based on the exceptions contained in State law mandating a potentially hazardous building mitigation program.
Q. Section A115 is added to establish provisions for administering the unreinforced masonry building hazard mitigation program. Appendix Section A115.1 contains the compliance deadlines and listing of building elements subject to the chapter that were updated by City Council ordinance; there are no additional changes included in this code adoption. Appendix Sections A115.2 through 115.5 provide the enforcement tools to achieve compliance. All known buildings of unreinforced masonry construction in the City of Pismo Beach that are occupied have been strengthened to the minimum standards prescribe in Appendix Chapter A1.
Section 15.08.040 Amendments; California Mechanical Code.
A. Division II of Chapter 1of the California Mechanical Code is deleted because Division II of Chapter 1of the CBC includes administrative provisions that are compatible with all adopted codes. Establishing one administrative chapter that is applicable to all codes avoids confusion and conflict between code sections.
Appendices pertaining to plan review forms, appliance start-up procedures, testing of equipment, sustainable practices, and example calculations are covered elsewhere, not adopted by the State, or inappropriate and are not adopted.
B. Division II of the CBC Chapter 1 is established for the administration of the Mechanical Code.
Section 15.08.050 Amendments; California Plumbing Code.
A. Division II of Chapter 1of the California Plumbing Code is deleted because Division II of Chapter 1of the CBC includes administrative provisions that are compatible with all adopted codes. Establishing one administrative chapter that is applicable to all codes avoids confusion and conflict between code sections.
Appendices regarding guidelines for plumbing system sizing, alternate plumbing systems, mobile home parks, firefighter breathing replenishment system, private sewage disposal systems, potable rainwater catchment systems, and sustainable practices are covered elsewhere, not adopted by the State, or inappropriate and are not adopted.
B. Division II of the CBC Chapter 1 is established for the administration of the Plumbing Code.
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C. Section 1501.3 is amended to delete the exception that waives a permit for a clothes washer gray water system.
D. Section 1503.1.1 is amended to specifically require a permit for a clothes washer gray water system.
E. Section 1503.7 is modified to require that a professional geotechnical engineer be involved in the design of a gray water system.
Section 15.08.060 Amendments; California Electrical Code.
A. Annex chapters are informative only and not adopted.
B. The Electrical Code does not contain an administrative chapter in the main body of the code. This Section establishes Chapter 1, Division II, of the CBC as such, since it is compatible with all adopted codes. Establishing one administrative chapter that is applicable to all codes avoids confusion and conflict between code sections.
C. Section 230.70(A)(1) is amended to require installation of a new electrical service to be located or equipped such that emergency personnel are not required to undertake a lengthy transit of a building to disconnect electric power.
Section 15.08.070 Amendments; International Property Maintenance Code.
A. Section 101.1 is modified to clarify applicability of the IPMC to the City of Pismo Beach.
B. Section 102.3 is modified to clarify that all work done to an existing building shall comply with all parts of the California Building Standards Code and all other related laws of the jurisdiction.
C. Section 103.1 establishes the office responsible for enforcement of the property maintenance code in the jurisdiction.
D. Section 104.1 clarifies that fees for activities performed by the code official are established under a separate action by the governing authority.
E. Section 105.5.1 is added to grant authority to the code official to issue citation for code violations.
F. Section 106.1 is deleted, and Section 106.1 is amended to refer to Appendix Chapter 113 of the CBC for the appeals board required under the IPMC.
G. Section 107.4 is amended penalties and code enforcement procedures found elsewhere in the Municipal Code to aid enforcement.
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H. Section 110.4 is amended to reference enforcement tools and penalties found elsewhere in the Municipal Code that can be applicable where there is failure to comply.
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.C
Meeting Date: October 21, 2025
TITLE:
Capital Improvement Program Semi-Annual Report
RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
The Ten-Year Capital Improvement Plan (CIP) is one of the most important planning documents for the City of Pismo Beach. This plan not only identifies immediate needs but also seeks to capture the long-term capital requirements of the City. Capital projects are typically projects that lead to the acquisition and/or, construction of new assets or the improvement or extension of the useful life of existing capital assets. Capital assets include but are not limited to land, facilities, buildings, parks, playground equipment, streets and sidewalks, bridges, water, wastewater and storm drain infrastructure, technology systems and equipment, traffic control devices and many other items that deliver public benefit for a prolonged period of time. This report will provide an update on CIP projects currently in progress.
Studies and Planning Documents
The City’s efforts to plan and prioritize construction projects also include the preparation of studies and planning documents that provide recommendations for future infrastructure improvements. Currently there are four of these plans in the process of completion: the Sewer System Management Plan, Sewer Master Plan, Drainage Master Plan Update for Shell Beach, Downtown, and the Heights and the Pavement Management Plan Update.
Sewer System Management Plan (SSMP) and Sewer Master Plan (SMP) The SSMP provides a plan and schedule to properly manage, operate, and maintain all parts of the sanitary sewer system for regulatory compliance. The current SSMP was developed in 2020 and needs to be updated to remain in regulatory compliance with the California discharge permit for sanitary sewer systems.
The SMP provides prioritized capital improvements related to the sanitary sewer system.
This document was last updated in 2000.
Staff issued a formal Request for Proposals for professional engineering and planning services to prepare an update of the SSMP and SMP and selected Wallace Group to perform the work. Wallace provided a separate cost proposal for the SSMP and SMP.
Due to a November 1, 2025 deadline for completing the SSMP portion of the work, a contract for the SSMP Update was executed under the City Manager’s authority as described in the City’s Purchasing Policy and that work is well underway. At the time of this writing it is anticipated that the contract for completing the SMP update is being presented for approval as a separate item at tonight’s Council meeting.
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Drainage Master Plan – Shell Beach, Downtown, and the Heights This project will prepare a consolidated Drainage Master Plan including an update to the 2005 Drainage Master Plan for the Downtown and Pismo Heights areas as well as incorporating the Shell Beach Village area which has not previously been included in any study. This updated plan will be used to incorporate drainage improvements into the scope of the next Paving Project, budgeted for Fiscal Year (FY) 2027. The consultant has completed the final draft of the plan and staff anticipates presenting the plan to Council along with the Pavement Management Plan discussed below as soon as that document has been finalized.
Pavement Management Plan (PMP) Update
The PMP provides a comprehensive five-year maintenance and rehabilitation strategy for the City’s approximately 38 centerline miles of pavement. The PMP was last updated in 2021 prior to the most recent Paving Project. In February 2025 after a formal RFP process, a contract with Nichols Consulting Engineers (NCE) was executed to prepare an update to the PMP.
NCE has submitted its draft PMP, which incorporates updated pavement condition data, cost tables, and analysis of different funding scenarios. The plan was developed in alignment with the City’s Capital Improvement Program funding allocations for Routine Street Maintenance over the next five years, as well as Paving and Drainage funding in FY 2027 and FY 2029. The Paving and Drainage component will focus on Shell Beach, where recommendations were coordinated with the Drainage Master Plan. Staff will circulate the draft report for review and comments prior to finalizing the document.
To keep pace with what was committed to in the budget, NCE submitted a draft recommendation of a list of streets for the FY 2026 Routine Street Maintenance Project discussed below.
Routine Street Maintenance
Regular routine maintenance to City streets will benefit all residents and visitors who utilize the City's roadways and prolong the useful life of the roadways. Routine maintenance includes crack filling, performing dig outs, filling potholes, slurry sealing, and striping. The FY 2026 budget includes $1M to complete a routine maintenance project on select residential City streets based on the PMP. Staff will be issuing a Request for Proposals for design of the project this year in order to have the designer on board to begin immediately upon finalizing the list of streets for the project. Sewer and storm drain utility work identified in the master plans or identified by City maintenance staff will be addressed prior to receiving the slurry treatment.
Completed Projects
Digester #1 Demolition
The project consisted of the demolition of the defunct Digester #1, a piece of equipment where microorganisms break down the organic matter in wastewater. The Notice of Completion was accepted by the City Council on May 20, 2025.
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2022 Paving Project
This project was the largest paving project the City has undertaken, paving approximately 33% of all City streets. The project also included curb ramp upgrades, construction of a sidewalk on Spyglass Drive under Highway 101, ADA upgrades and paving of the City Hall parking lot and the Bluffs Trail. The Notice of Completion was accepted by the City Council on August 5, 2025.
Oak Park Medical Plaza Parking Lot Repair
This project consisted of the removal and replacement of damaged asphalt and sub-base in the privately-owned parking lot located at 901 N. Oak Park that was damaged when a valve that is part of City-owned water infrastructure that runs beneath the parking lot ruptured. The Notice of Completion was accepted by the City Council on August 19, 2025.
Under Construction
Public Safety Facility
At the fire station, drywall installation and exterior stucco work are underway. At the police station, crews continue with interior electrical rough-in, HVAC ductwork, and exterior brick installation. Onsite, the ADA concrete ramps and the rear parking lot retaining wall are being formed and poured. Overall work is progressing as scheduled with building completion expected in April 2026.
Clarifiers Rehabilitation
The City awarded the project to W.M. Lyles Co. in November 2024. Extended lead times for the clarifier mechanisms pushed the start of construction to September 2025. Work on Clarifier No. 1 is now underway and expected to be completed by the end of October 2025. The contractor was able to procure the materials for Clarifier No. 2 in time to complete both this year. This will save mobilization costs and the amount of disruption to yard activities. After a one-week observation period, during which the rebuilt clarifier will grow a sufficient sludge blanket, the contractor will begin work on Clarifier No. 2 and complete the phased replacement.
Pier Avenue Stairs Removal
This project consists of removal of the damaged stairs on Ocean Boulevard at Pier Avenue. At the time of this writing, it is anticipated that contracts for construction and construction management were recommended for award under a separate staff report earlier this meeting.
Design
New Production Well
This project will replace the existing Well 23 system with a new water production well.
The well has been thoroughly examined by experts in the field. The consensus is that attempting to rehabilitate this well is not worth the significant risk of it failing completely in the process.
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Charles Street Reservoir Replacement Project
This project will replace the Charles Street Reservoir, located in Grover Beach, which is nearing the end of its useful life. Michael K. Nunley & Associates was retained for design services in December 2024. The project is partially funded with a $500,000 grant from the U.S. Department of Housing and Urban Development (HUD). The federal funding requires compliance with the National Environmental Policy Act (NEPA), and the City has enlisted the services of Rincon Consultants for this effort. The current plans are at 60% design, and the current construction cost estimate is $5.0 million. Staff is re-evaluating the plans and recommendations for a project within budget.
Ventana Sports Courts Project
The project consists of construction of new tennis and pickleball courts on Ventana Drive (Ventana Sports Courts). These include two pickleball courts, one tennis court, a parking lot, and a crosswalk connecting Chumash Park to the Ventana Courts. The plans and specifications have been completed at the 100% design level, and the project is currently awaiting issuance of Building and Planning permits. Advertisement for construction is planned for the end of October, with contract award anticipated on December 16, 2025.
Addie Street Restroom Replacement
This project will replace the current restroom at the beach end of Addie Street, adjacent to the Addie Street parking lot, with a larger restroom. Per previous direction from the City Council, staff is currently working with the prefabricated restroom company manufacturer to evaluate and design the preferred option and update the cost proposals.
Shell Beach Road Shared Use Path
The project will connect Avila Beach Drive to Spyglass Drive. The design is at the 30% level. The consultant team is updating exhibits based on input given at the September 21, 2025 City Council meeting. Staff and SLOCOG are discussing funding options.
Facilities Condition Assessment
This project includes preparation of a comprehensive facilities condition assessment of all City-owned facilities and a long-term facilities maintenance plan. The contractor has delivered final reports for each facility, and provided the City with access to software to easily view the City’s assets, their condition, and expected maintenance costs for the next 20 years. Before closing out the project, the contractor will assist the City in integrating the assessment results into the new Asset Management program.
Pier, Cypress Bridge and Pedestrian Bridge Inspections
Underwater and above-water inspection of the entire Pismo Pier as well as the Cypress Street Bridge, Dolliver Street Pedestrian Bridge, and Shore Cliff Pedestrian Bridge have been completed and the Consultant has provided findings in its reports for City staff to review.
Sunset Palisades Lift Station Rehab and Force Main Relocation The Sunset Palisades Lift Station Rehabilitation and Force Main Relocation Project will rehabilitate the aging discharge piping at the lift station to maintain safe and efficient
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operations. The project will also relocate the existing force main which currently runs behind the residential properties along Searidge Court, into the City’s right-of-way. An agreement with MNS Engineers, Inc. was approved by the Council on October 7, 2025 for design of this project.
ADA Transition Plan Update
Under Title II of the ADA, the City is required to have a current Self-Evaluation and Transition Plan. Since the current plan was completed in 2014, the City has made significant improvements to City facilities necessitating a re-evaluation of the City’s ADA compliance to ensure the Transition Plan remains current and meets the requirements of Title II of the ADA. The City contracted with Disability Access Consultants (DAC) through the California Joint Powers Insurance Authority (CJPIA) ADA Assistance Program. DAC is reviewing information provided by staff and began onsite inspections of the public right- of-way the week of October 6, 2025.
Pier Avenue Storm Drain Repair
The project will replace the storm drain outfall pipe that was washed away during a storm event in January 2023. This site was approved by FEMA for funding and a consultant has been retained to prepare construction plans and specifications.
Cliff Avenue/Ocean Boulevard Storm Drain
The project will repair the damaged storm drain outfall at the intersection of Cliff Avenue and Ocean Boulevard. The project is funded through the Federal Emergency Relief program. Advertisement of construction bids and proposals for construction management services are due on October 30, 2025.
Cliff Avenue Parking
The project will pave and stripe parking stalls at 90° angles in the dirt parking area along the south side of Cliff Avenue. Advertisement of the RFP for design services is currently underway with proposals due on October 30, 2025.
Cliff Avenue/Ocean Boulevard Utility Undergrounding
This project will underground the overhead utility lines along the bluff on Cliff Avenue and Ocean Boulevard in the vicinity of the Cliff Avenue/Ocean Boulevard Storm Drain Repair project. An application with PG&E has been submitted and PG&E engineering division is preparing the plans.
Other Projects Budgeted in FY26
Evaluate potential for sports courts lighting
Evaluate potential for Price Street and Dolliver Street Parking lot lighting Vista Del Mar Stairs Foundation Maintenance
Eldwayen Park Sidewalk Re-route
Butterfly Grove Enhanced Parking and Crosswalk
320/330 Main Street Parking Lot Design
Vizion Zero Action Plan
Toucan Terrace Sewer Pipe Relining
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Price Street/Oceanview Avenue Improvements
Urban Water Master Plan & Water Master Plan Updates
Addie Street Wet Well Improvements
Pismo Oaks Reservoir, Pacific Estates Reservoir, and Well 5 Variable Frequency Drives (VFD)
Construction Economy and Market Trends
In the past, the rate of inflation and its potential impact on the City’s ability to deliver as many projects in a given year has not been included in the CIP Update or the budget. The past five years has seen a significant increase in inflation. There are a number of inflation indices available, and two of those are the Engineering News-Record’s Construction Cost Index (CCI) and Building Cost Index (BCI), which track the cost of key construction materials and labor. From August 2024 to August 2025, the CCI and BCI increased by an average of about 2.4% and 2.7%, respectively. Over the past three years, the CCI has risen 5.6% and the BCI 8.2%, while over five years, the CCI is up 25.7% and the BCI
43.2%. The main reasons are higher labor costs and some increases in raw materials like steel, up 11%, and cement, though others, like lumber, have remained steady. Looking ahead to 2026, construction costs are expected to keep climbing at roughly 2–4% per year as the industry continues to face tight labor markets and unpredictable material prices. Actual project costs, however, may rise faster than these indices suggest, since they don’t include things like mechanical or electrical work, supply chain, contractor overhead, or regional price differences.
These changes are important to incorporate into project planning. Many project cost estimates are more than five years old, having been done as part of studies from 2020, which were based on costs from 2018 and 2019. Since June of 2018, construction costs have increased an average of 34.5% and as high as 53%. It is important that as part of budget deliberations, the City Council has realistic cost estimates with which to make decisions. If a project is going to cost significantly more than originally planned, the Council will be better able to weigh other financial decisions against increased capital outlay during budget deliberations.
Therefore, staff is proposing to change the way cost estimates are presented in future budgets and in the Ten-Year CIP. The first change would be that all projects that are or will be active within the two-year budget cycle under deliberation will have updated estimates. The accuracy will depend on how much work has been done on a project’s design. In the absence of design information, a project would be updated according to one or more of the relevant inflation indices. Inflation index adjustments would then be incorporated into all projects that are programmed for the next three to five years. Beyond five years there are many unknowns, and a future recession could result in downward adjustments. New regulations and/or construction methods could significantly alter the approach to building some of those longer-range projects.
FISCAL IMPACT:
There is no direct fiscal impact associated with this report.
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ATTACHMENTS:
None.
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie R. Gaglione, PE, Director of Public Works City Manager Approval:
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