Pismo Beach City Council
February 3, 2026

AGENDA
Pismo Beach City Council
Pismo Beach Public Financing Agency Board of Directors
Central Coast Blue Regional Recycled Water Authority
Board of Directors
Tuesday, February 3, 2026
Time Meeting Type Physical Location Virtual Viewing Option 4:30 p.m. Closed Session City Hall None
5:30 p.m. Regular Meeting 1 2 Council Chamber, City Hall https://us02web.zoom.us/j/84823715585 1 Live virtual viewing is offered via Zoom.
2 Broadcast meeting also available for viewing on cable Channel 20 and online at pismobeach.org/agenda.

0. MEETING INSTRUCTIONS:

These meetings are being conducted in a hybrid format with both in-person and virtual options. Ways to watch these meetings and submit public comment are provided below.

Watch and participate in person:
• Regular Joint Meeting: Visit the Council Chamber at Pismo Beach City Hall, 760 Mattie Road, Pismo Beach, CA 93449. • To make Regular Meeting public comment, please submit an optional blue “speaker slip” to staff; the Mayor/Chair will ask you to approach the lectern to speak during the public comment period on your item of interest. • To make Closed Session public comment, please be present in the Council Chamber when the Closed Session is publicly convened; the Mayor will call for public comment prior to commencing the closed proceedings.

Watch via Zoom:
• Regular Joint Meeting only: Click this link on any computer or mobile device:
https://us02web.zoom.us/j/84823715585 . This URL may also be typed into a web browser.

Listen via telephone:
• Regular Joint Meeting only: Call 1-669-900-6833 to join by telephone audio only. Enter Meeting ID 848 2371 5585 when prompted.

Watch online:
• Regular Joint Meeting only: Visit www.pismobeach.org/agenda and scroll to “Upcoming Events.” When the live broadcast begins, an “In Progress” link will appear; click this link to watch the livestream. A recording of the meeting will be available on demand shortly after the meeting ends.

Watch on Channel 20:
• Regular Joint Meeting only: Tune to local cable channel 20 in Pismo Beach; the meeting will be broadcast live. Meetings are also replayed at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day the following week.

Submit written comment prior to, or during, the meeting:
• In advance of the meeting, written comments may be emailed to [email protected] and/or [email protected] or mailed or delivered to the Pismo Beach City Clerk’s Office, 760 Mattie Road, Pismo Beach, CA 93449. During the meeting no later than the start of the comment period for your item of interest, written comment may be hand-delivered to staff in the Council Chamber. Emails and other written comment submitted after the start of the meeting may not be fully considered prior to any action taken on the item.

Submit voicemail comment:
• Regular Joint Meeting and Closed Session: Call 805-773-7005 and leave a voicemail before the meeting. Voicemails submitted after the start of the meeting may not be fully considered prior to any action taken on the item. This automated voicemail line will not be answered or monitored for other purposes.

Please note:
• In the event a Council Member/Board Member participates in this meeting by teleconference under the provisions of Govt Code Section 54953(f), public comment will be accepted via Zoom, including by telephone audio, as required by law. However, the timing of a request by a Council Member/Board Member to participate remotely may not allow sufficient time to post an agenda containing information on how the public may participate via Zoom or telephone. In such cases, the City Clerk/Authority Clerk or another staff member will orally provide such information at the meeting. • Meetings may begin a few minutes after the scheduled start time. • Meetings will be recorded, except closed sessions; these recordings are public record. • Phone numbers of call-in attendees may be visible to other meeting attendees, or in meeting recordings. • Phone numbers of voicemail commenters may be visible in the public record along with transcripts.

Please contact City Clerk/Secretary/Authority Clerk Erica Inderlied at [email protected] with questions.

Council Agenda 2-3-2026

Pismo Beach City Council Agenda February 3, 2026

Special Closed Session—4:30 p.m.

City Hall, 760 Mattie Road, Pismo Beach, CA 93449
CALL TO ORDER: Mayor Waage

1. ROLL CALL:

Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, Newton

2. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) – Council Chamber Item 2.A: Conference with Real Property Negotiators (Government Code §54956.8)

Properties: APN 060-546-001 and APN 060-546-020
Agency Negotiator: Jorge E. Garcia
Negotiating Parties: Camino Media Office Park, LLC
Under Negotiation: Price and Terms of Payment

Item 2.B: Conference with Legal Counsel – Existing Litigation (Paragraph (1) of subdivision (d) of Government Code §54956.9) Name of Case: Harmony Brown v. City of Pismo Beach, Jeff Smith, et al.

San Luis Obispo County Superior Court Case No. 25CV-0497

Item 2.C: Conference with Legal Counsel – Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code §54956.9: One potential case

3. PUBLIC COMMENT PERIOD – Council Chamber
At this time, members of the public may comment on any item appearing on the agenda.

Please adhere to the following procedures when addressing the Council: • Please limit your comments to 3 minutes or less. • Unduly disruptive behavior will not be permitted.

Documents submitted to the Council become public record unless otherwise exempt from disclosure.

4. CLOSED SESSION – Closed Meeting Room
The City Council will convene in Closed Session to discuss the items listed under Item 2 above. In accordance with the Brown Act, public access is not permitted for this portion of the meeting.

5. CLOSED SESSION REPORT – Council Chamber

If a regular meeting immediately follows this Closed Session, the Closed Session Report will be made during the regular meeting.

6. ADJOURNMENT

Regular Joint Meeting Tuesday, February 3, 2026

Council Agenda 2-3-2026

Pismo Beach City Council Agenda February 3, 2026

Regular Joint Meeting—5:30 p.m.

Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449 CALL TO ORDER: Mayor/Chair Waage

1. ROLL CALL:

Pismo Beach City Council:

Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, Newton
Pismo Beach Public Financing Agency Board of Directors:

Chair: Waage
Vice-Chair: Reiss
Board Members: Guthrie, Inman, Newton
Central Coast Blue Regional Recycled Water Authority Board of Directors:

Chair: Waage (City of Pismo Beach)
Vice-Chair: Reiss (Pismo Beach Public Financing Agency)

2. PLEDGE OF ALLEGIANCE

3. ACCEPTANCE OF AGENDA

4. PRESENTATIONS
None.

5. PUBLIC COMMENT PERIOD
At this time, members of the public may comment on any item NOT appearing on the agenda. For items appearing on the agenda, including the Consent Calendar, the public will be invited to make comments during Council/Board consideration of the item. In accordance with state law, matters raised as part of this comment period cannot be discussed or acted upon by the City Council or Board at this time. However, in response to a matter raised as part of this comment period, the Council/Board may, during Item 13, Council/Board Comments and Requests, direct staff to assist a speaker, or schedule the matter for consideration on a future agenda.

Please adhere to the following procedures when addressing the Council/Board:
• Please limit your comments to 3 minutes or less.
• Unduly disruptive behavior will not be permitted.

Documents submitted to the Council/Board become public record unless otherwise exempt from disclosure.

6. CITY MANAGER/GENERAL MANAGER’S REPORT - No action to be taken

7. CITY ATTORNEY/AUTHORITY ATTORNEY’S REPORT / CLOSED SESSION REPORT - No action to be taken

8. COUNCIL COMMITTEE REPORTS

1. Air Pollution Control District, SLO County (Newton/Reiss)

2. California Joint Powers Insurance Authority (Reiss/Inman) Central Coast Blue Regional Recycled Water Authority
(Waage/Guthrie)
Chapman Estate Foundation (Liaison) (Reiss)
Coastal Cities Group, League of CA Cities (Waage)
Conference and Visitors Bureau / LBID Board (Liaison) (Inman) Friends of Price House Liaison (Waage)
Hazard Mitigation & Fire Safety (Inman/Waage)

Mobile Home Rent Stabilization Subcommittee (Inman/Waage) Regional Transit Authority, SLO (Waage/Reiss)
Shell Beach Improvement Group Liaison (Inman/Reiss)
SLOCOG (Waage/Reiss)
South County Chambers Gov’t Affairs (Guthrie/Inman)
Visit SLO CAL Advisory Committee (Inman)
Water Resources Advisory Committee, SLO (Guthrie/Inman) Zone 3 Water Advisory Committee, SLO (Guthrie/Inman)
(Govt Code Section 53232.3)
Council Agenda 2-3-2026

Pismo Beach City Council Agenda February 3, 2026

9. CONSENT CALENDAR
All Consent Calendar items will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.

Item 9.A: Adoption of Meeting Minutes (Inderlied)

Recommendation:

Adopt Minutes of the January 20, 2026 Regular Meeting.

Item 9.B: Payroll Register and Register of Demands (Feeser)

Recommendation:

1. Approve the Summary of Payroll Register for January 11, 2026;

2. Approve the Register of Demands for December 26, 2025, January 2, 2026, and January 9, 2026.

Item 9.C: Monthly Investment Transaction Report of the City’s Cash and Investments for December 2025 of Fiscal Year 2026 (Feeser)

Recommendation:

No action recommended; for information only.

Item 9.D: Fiscal Year 2026 Second Quarter Financial Status Report (Feeser)

Recommendation:

No action recommended; for information only.

Item 9.E: Quarterly Investment Report for the Three Months of October through December 2025 – the Second Quarter of Fiscal Year (FY) 2026 (Feeser)

Recommendation:

No action recommended; for information only.

Item 9.F: Notice of Completion for the Pier Avenue Stair Removal Project (Gaglione)

Recommendation:

1. Accept the Pier Avenue Stair Removal Project as complete;

2. Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the project.

Item 9.G: Adoption (Second Reading) of an Ordinance Amending the Municipal Code Relating to Business Licensing (Inderlied)

Recommendation:

Adopt an Ordinance amending Chapter 5.04: Business Licenses Generally, of the City of Pismo Beach Municipal Code.

Council Agenda 2-3-2026

Pismo Beach City Council Agenda February 3, 2026

10. ITEMS PULLED FROM CONSENT CALENDAR

11. PUBLIC HEARINGS - No earlier than 6:00 p.m.

None.

12. BUSINESS ITEMS - May be reordered and heard prior to Public Hearings

Item 12.A: Progress Report on Fiscal Year 2026 & 2027 City Council Goals (Garcia)

Recommendation:

Receive a progress report on the City Council’s Fiscal Year 2026 & 2027 Goals. No action recommended.

Item 12.B: Central Coast Blue Owner’s Advisor and Management Support Contracts (Gaglione)

Recommendation:

Pismo Beach City Council:

Adopt a Resolution authorizing the City Manager to enter into Professional Services Agreements related to Central Coast Blue with:

1. GHD, Inc. in the amount not to exceed $461,438 for Owner’s Advisor services; and

2. Water Systems Consulting, Inc. in an amount not to exceed $218,515 for Management Support Services; and
Appropriating related budget adjustments in Fiscal Year 2026.

Item 12.C: Declaration of City-Owned Property as Surplus Land and Implementation of Procedures Under the State of California Surplus Land Act and Making a Finding of Exemption under the California Environmental Quality Act (Graham)

Recommendation:

Adopt a Resolution declaring that real properties owned by the City located at APN’s 010-302-030 and 010-302-031 are surplus land and not necessary for the City’s use pursuant to Government Code Section 54221, authorizing the City Manager to comply with the procedures under the surplus land act, and finding that such declaration and authorization is exempt from environment review under the California Environmental Quality Act.

13. COUNCIL/BOARD COMMENTS AND REQUESTS - No action to be taken

14. ADJOURNMENT

To the following meeting(s). Special and Closed Session times may be subject to change, as noticed. Meetings will be held in a hybrid in-person / virtual format unless otherwise noted:

Special Meeting 10:00 a.m. Friday, February 6, 2026 2131 Price St., Pacific Banquet Room, Pismo Beach
5:30 p.m. Council Chamber, City Hall
Council Agenda 2-3-2026

Pismo Beach City Council Agenda February 3, 2026

Regular Council meetings will adjourn by 11:00 p.m. unless four-fifths of the Council votes to continue past that time. If the meeting is adjourned at 11:00 p.m., any remaining agenda items will be continued to the next regular meeting (R-97-04).

AFFIDAVIT OF POSTING
I, Erica Inderlied, City Clerk for the City of Pismo Beach/Secretary for the Pismo Beach Public Financing Agency/Authority Clerk for the Central Coast Blue Regional Recycled Water Authority, declare under penalty of perjury that the foregoing agenda for the February 3, 2026 meeting(s) of the Pismo Beach City Council, Pismo Beach Public Financing Agency Board of Directors, and Central Coast Blue Regional Recycled Water Authority Board of Directors was posted on January 29, 2026, at Pismo Beach City Hall, located at 760 Mattie Meeting Schedule: The City Council of Pismo Beach regularly meets on the first and third Tuesdays of each month at 5:30 p.m., unless otherwise noticed. Closed and Special sessions will be duly noticed as needed.

Council Agendas: Agendas for Regular Meetings are available for public review on the City’s website at pismobeach.org/agenda and upon request from the City Clerk’s Office, typically by 4:00 p.m. on the Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed Sessions and other Special meetings are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.

Related Materials: All materials submitted to the Council relating to items on this agenda are open for public inspection unless otherwise exempt by law. Staff reports and attachments published as part of this agenda packet, as well as copies of correspondence received relating to these agenda items and materials distributed at the meeting, may be obtained 1) in the consolidated online Agenda Center at pismobeach.org/agenda, 2) in the Access Pismo public records portal at pismobeach.org/accesspismo, 3) by request from the City Clerk at [email protected], or 4) in person at the City Clerk's Office, City Hall, 760 Mattie Road, Pismo Beach, Mon–-Fri 8:00 a.m.–-5:00 p.m. Please call (805) 773-7003 with any questions.

Broadcasting: Regular (televised) City Council meetings are available for viewing 24/7 at pismobeach.org/agenda, broadcast live on Channel 20, and re-broadcast during the week following the meeting on Channel 20 at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day.

Use of Equipment: Please contact the City Clerk’s Office if requesting to use the chamber equipment during public comment or as part of a scheduled presentation, 24 hours prior to the meeting at (805) 773-7003.

Notice Regarding Americans with Disabilities Act
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need agenda documents provided in an alternative format, please contact the City Clerk’s Office at 773-7003 as soon as possible prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-

35.104 ADA Title II).

Council Agenda 2-3-2026

PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.A
February 3, 2026
TITLE:

Adoption of Meeting Minutes
RECOMMENDATION:

Adopt Minutes of the January 20, 2026 Regular Meeting.

DISCUSSION:

Attached for the Council’s consideration are the draft minutes of the subject meetings for review and adoption.

FISCAL IMPACT:

There is no fiscal impact associated with the preparation or adoption of meeting minutes.

ATTACHMENTS:

1.Draft Minutes of the January 20, 2026 Regular Meeting Submitted by:

Erica Inderlied, City Clerk
City Manager Approval:

Council Agenda 2-3-2026 9.A-1
Packet Page 1

DRAFT MINUTES
Pismo Beach City Council
Tuesday, January 20, 2026

Regular Meeting—5:30 p.m.

Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449

The City Council of the City of Pismo Beach met this date in a regular session with Mayor Waage presiding.

CALL TO ORDER: 5:30 p.m.

1. ROLL CALL:

Present: Absent:

Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman (via teleconference)
Council Member Scott Newton

Staff Present:

Nadia Feeser, Administrative Services Director
Rosemarie Gaglione, Director of Public Works
Jorge Garcia, City Manager
Scot Graham, Community Development Director
Erica Inderlied, City Clerk
Gordon Jackson, Director of Tourism and Events
Paul Lee, Battalion Chief
Dean Pucci, City Attorney
Jeff Smith, Chief of Police
Other staff present as noted below

2. PLEDGE OF ALLEGIANCE

Mayor Waage led the Pledge of Allegiance.

3. ACCEPTANCE OF AGENDA

No requests to reorder the agenda.

Council Agenda 2-3-2026 9.A-2
Attachment 1
Packet Page 2

4. PRESENTATIONS

Item 4.A: Proclamation: Recognizing January 2026 as National Mentoring Month (San Luis Obispo County Big Brothers Big Sisters)

Presented to Alexios Sideris, Big Brothers Big Sisters volunteer.

Item 4.B: Presentation: Introduction of New Employees

Administrative Services Director Feeser introduced Aidan Lui, new Information Technology Intern.

Public Works Director Gaglione introduced Ellen Boyle, new Senior Administrative Assistant; Luke Gaalswyk, new Wastewater Operator.

Tourism and Events Director Jackson introduced Thomas (Jeff) Edwards, new Part-Time Tourism & Events Host; Gene Franco, new Part-Time Tourism & Events Host; Jaylen Holford, new Part-Time Recreation Services Coordinator; Julia Krikorian, new Part-Time Tourism & Events Host; acknowledged Lori Palmieri, new Part-Time Tourism & Events Host.

Police Chief Smith introduced Edward Cabandong, Jr., new Police Officer; Sarah Leggio, new Police Officer; Gavin Martinez, new Police Officer; Jessica Valencia, new Part-Time Police Records Technician.

5. PUBLIC COMMENT PERIOD

Call for public comment: No comment.

Gary Mork commented; commended Public Works Operations Manager Mark Wilson and Maintenance Workers Rocky Allen and Logan Knight.

6. CITY MANAGER’S REPORT

City Manager Garcia commented on various topics.

7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT

City Attorney Pucci had nothing to report.

Council Agenda 2-3-2026 9.A-3
Attachment 1
Packet Page 3

8. COUNCIL COMMITTEE REPORTS

The Council reported on recent and upcoming meetings of various external bodies:

Council Member Guthrie:

San Luis Obispo County Zone 3 Water Committee.

Council Member Newton:

San Luis Obispo County Integrated Waste Management Authority (IWMA) Board.

Mayor Waage:

San Luis Obispo County Community Fire Safe Council.

9. CONSENT CALENDAR

Call for public comment: No comment.

Action: Adopt Consent Calendar (Items 9.A through 9.I).

Motion: Newton
Second: Guthrie

Vote: The motion passed on the following vote:

Ayes: 5 Newton, Guthrie, Inman, Reiss, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

Item 9.A: Adoption of Meeting Minutes (Inderlied)

Recommendation:

Adopt Minutes of the December 16, 2025 Regular Meeting.

Item 9.B: Payroll Register and Register of Demands (Feeser)

Recommendation:

1. Approve the Summary of Payroll Register for December 14, 2025, and December 28, 2025;

2. Approve the Register of Demands for November 28, 2025, December 5, 2025, December 12, 2025, and December 19,
2025.

Council Agenda 2-3-2026 9.A-4
Attachment 1
Packet Page 4

Item 9.C: Monthly Investment Transaction Report of the City’s Cash and Investments for November 2025 of Fiscal Year 2026 (Feeser) Recommendation:

No action recommended; for information only.

Item 9.D: Annual Review and Approval of Investment Policy (Feeser) Recommendation:

Approve the City of Pismo Beach Investment Policy.

Item 9.E: Annual Pavement Cut Moratorium Update (Gaglione) Recommendation:

No action recommended; for information only.

Item 9.F: Update on January 9, 2023 and January 12, 2017 Emergency Proclamations (Inderlied)
Recommendation:

1.Review the need for continuing currently active local emergency proclamations;

2.Provide direction to staff if desired.

Item 9.G: Quarterly Paid Parking Update (Feeser)
Recommendation:

No action recommended, for information only
Item 9.H: Agreement with Garing, Taylor & Associates, Inc. for Design of the Cliff Avenue Parking Project (Gaglione)
Recommendation:

Adopt a Resolution authorizing the City Manager to enter into a Professional Services Agreement with Garing, Taylor & Associates, Inc. in an amount not to exceed $143,624 for design services for the Cliff Avenue Parking Project.

Legislative Record: Resolution R-2026-001 adopted.

Item 9.I: Grant Agreement with the Ocean Protection Council for Funding to Assist with the Safety Element and Parks and Recreation Element Update and Award of Agreements to GHD, Inc. and Lisa Wise Consulting Inc. for Related Services; Related Budget Adjustments (Graham)
Council Agenda 2-3-2026 9.A-5
Attachment 1
Packet Page 5

Recommendation:

1. Adopt a Resolution approving the application for and/or execution of grant funds from the Ocean Protection Council under the Safe Drinking Water, Water Quality And Supply, Flood Control, River And Coastal Protection Bond Act of 2006 (Proposition 84), Prop 68, Environmental License Plate Funds, Once-Through Cooling, Greenhouse Gas Reduction Fund, or General Funds;

2. Adopt a Resolution authorizing the City Manager to:

1. Execute an Agreement with GHD, Inc. in the amount of $705,365 for Fiscal Years 2026 and 2027 for preparation of a Sea Level Rise Vulnerability Assessment and Adaptation
Study; and

2. Execute an Agreement with Lisa Wise Consulting, Inc. in the amount of $275,196 for Fiscal Years 2026 and 2027 for
preparation of a Sea Level Rise Vulnerability Assessment, Adaptation Study, Economic Analysis and General Plan Local Coastal Plan and Zoning Code update; and

Appropriating related budget adjustments in Fiscal Year 2026.

Legislative Record: Resolution R-2026-002 adopted.

Legislative Record: Resolution R-2026-003 adopted.

10. ITEMS PULLED FROM CONSENT

None.

11. PUBLIC HEARINGS

None.

12. BUSINESS ITEMS

Item 12.A: 2026 State Legislative Agenda (Garcia)

Recommendation:

Approve the 2026 State Legislative Agenda.

Presenting staff:

Jorge Garcia, City Manager

Guest presenters:

Spencer Street, Townsend Public Affairs
Ryan McCarthy, Townsend Public Affairs
Council Agenda 2-3-2026 9.A-6
Attachment 1
Packet Page 6

Supplemental material submitted into the record.

Call for public comment:

Don Day commented.

Action: Approve the 2026 State Legislative Agenda, with the following revision:

Add an “oppose” position for ballot measures that will have the effect of reducing the City’s revenue or revenue potential.

Motion: Reiss
Second: Guthrie

Vote: The motion passed on the following vote:

Ayes: 5 Reiss, Guthrie, Inman, Newton, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

Item 12.B: Introduction (First Reading) of an Ordinance Amending Municipal Code Relating to Business Licensing (Garcia)

Recommendation:

Introduce an Ordinance amending Chapter 5.04: Business Licenses Generally, of the City of Pismo Beach Municipal Code.

Presenting staff:

Nadia Feeser, Administrative Services Director
Jorge Garcia, City Manager

Supplemental material submitted into the record.

Call for public comment:

Don Day commented.

Action: Introduce an Ordinance amending Chapter 5.04: Business Licenses Generally, of the City of Pismo Beach Municipal Code.

Motion: Newton
Second: Reiss

Council Agenda 2-3-2026 9.A-7
Attachment 1
Packet Page 7

Vote: The motion passed on the following vote:

Ayes: 5 Newton, Reiss, Guthrie, Inman, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

Legislative Record: Ordinance O-2026-XXX adopted.

Item 12.C: Public Safety Facility Update; Contract Amendments with Vanir Construction Management, Earth Systems Pacific, and CLAD Consulting; Agreement with EyeP Solutions for Services Related to the Project (Gaglione)

Recommendation:

Adopt a Resolution:

1. Authorizing the City Manager to execute the following contract amendments related to the Public Safety Facility:

1. Contract Amendment #3 with Vanir Construction Management, Inc. in an amount not to exceed $171,980 for additional Construction in Management Services; and

2. Contract Amendment #1 with Earth Systems Pacific in an amount not to exceed $56,288.75 for additional Special
Inspection and Materials Testing Services; and

3. Contract Amendment #1 with CLAD Consulting, Inc. in an amount not to exceed $16,400 for additional Project
Management, Coordination and Inspection Services; and

2. Ratifying the Vendor Agreement with EyeP Solutions, Inc. in the amount of $132,138.52 for purchase of four consoles for the dispatch center.

Presenting staff:

Eric Eldridge, City Engineer
Jorge Garcia, City Manager

Supplemental material submitted into the record.

Call for public comment:

Don Day commented.

Council Agenda 2-3-2026 9.A-8
Attachment 1
Packet Page 8

Action: Adopt a Resolution:

1. Authorizing the City Manager to execute the following contract amendments related to the Public Safety Facility:

3. Contract Amendment #3 with Vanir Construction Management, Inc. in an amount not to exceed $171,980 for additional Construction in Management Services; and

4. Contract Amendment #1 with Earth Systems Pacific in an amount not to exceed $56,288.75 for additional Special
Inspection and Materials Testing Services; and

3. Contract Amendment #1 with CLAD Consulting, Inc. in an amount not to exceed $16,400 for additional Project
Management, Coordination and Inspection Services; and

2. Ratifying the Vendor Agreement with EyeP Solutions, Inc. in the amount of $132,138.52 for purchase of four consoles for the dispatch center.

Motion: Newton
Second: Reiss

Vote: The motion passed on the following vote:

Ayes: 5 Newton, Reiss, Guthrie, Inman, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

Legislative Record: Resolution R-2026-004 adopted.

13. CITY COUNCIL COMMENTS AND REQUESTS

No action.

14. ADJOURNMENT

At 6:53 p.m.

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk

Council Agenda 2-3-2026 9.A-9
Attachment 1
Packet Page 9

PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.B
February 3, 2026
TITLE:

Payroll Register and Register of Demands
RECOMMENDATION:

1. Approve the Summary of Payroll Register for January 11, 2026;

2. Approve the Register of Demands for December 26, 2025, January 2, 2026, and January 9, 2026.

DISCUSSION:

Attached are the Summary of Payroll Register(s) and Register(s) of Demands (Check Registers) noted above, provided for Council approval.

FISCAL IMPACT:

As demonstrated in the attached payroll and check registers.

ATTACHMENTS:

1.Payroll Summary

2. Registers of Demands
Submitted by:

Nadia Feeser, Administrative Services Director/City Treasurer City Manager Approval:

Council Agenda 2-3-2026 9.B-1
Packet Page 10

FOR PERIOD ENDING 01/11/26
CHECKS DATED 01/16/26

PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 577252-277254 3
ACH 136

EARNINGS
REGULAR 436,619.37
HOLIDAY 6,119.62
OVERTIME (Includes Comp Time Payouts)13,518.60
Administration
Building
Conference & Visitors Bureau
Police Department 9,466.74
Parking
Planning
Fire
Recreation
Public Works 566.58
Water 1,139.31
Wastewater 2,345.97
Motor Vehicles
Subtotal-Overtime 13,518.60$

SALARY ADJUSTMENTS -
TRAINING / UNIFORM ALLOWANCE 1,963.75
OTHER EARNINGS 12,435.78
FEDERAL WITHHOLDING TAX 42,829.55
FICA & MEDICARE 36,712.96
STATE INCOME TAX 17,322.62
STATE DISABILITY INSURANCE 5,942.81
GARNISHMENTS 2,339.67
HEALTH 4,034.13
SUPPLEMENTAL DISABILITY 1,207.67
SECTION 125 3,277.10
PERS 43,076.45
DEFERRED COMPENSATION 14,706.74
ADDITIONAL LIFE INSURANCE 345.01
UNION DUES 2,608.93
PISMO ATHLETIC CLUB 555.00
OTHER
DIRECT DEPOSIT DEDUCTION 294,284.72
NET PAYROLL AFTER ACH DEPOSIT 1,413.76

SUMMARY PAYROLL REGISTER
Attachment 1
Council Agenda 2-3-2026 9.B-2
Packet Page 11

ACH/ Vendor Check
Check# Number Payee Amount Description
ACH 10371 Visit SLO County 159,493.69$ TMD Payments Oct 2025 ACH 11208 SEIU Local 620 AFL/CIO 888.09 SEIU Dues PD 01/02/26 ACH 11305 Public Employees Retirement System 86,838.14 PERS Retirement EE & ER PD 01/02/26 & 2026 Replacement Benefit Contribution
ACH 12017 Vantagepoint Transfer Agents 503.21 Retiree Healthcare Trust MGMT PD 01/02/26 ACH 12260 dba: Mission Square ICMA Retirement Trust - 457 33,549.86 ICMA 457 Deferred Comp EE & ER PD 01/02/26 ACH 12708 dba: Mission Square ICMA Retirement Trust-Roth IRA
795.00 ICMA Roth IRA PD 01/02/26
ACH 14257 Igoe Administrative Services 5,835.36 IGOE FSA and DDS Reimbursement - Dec 2025 135968 11882 Alexander's Contract Services Inc 4,170.87 Water Meter Reading Services Dec 2025 135969 13569 Jedidiah J. Bickel 25.00 CVB Board Meeting Stipends Q4 2025 135970 13603 Francine Bracamonte 174.00 Plaques
135971 11392 Brenntag Pacific Inc.2,159.64 Sodium Bisulfite 135972 14402 Carol A. Burner 966.67 900 Bello Lease - Jan 2026 135973 14855 California's Best Janitorial 21,170.16 Janitorial Services- November 2025 135974 11451 Channel Islands Technology Integrators' Group 38,673.75 Microsoft O365- Phone- MDM & Storage Licenses & Monthly Backup Subscriptions/ IT Services - Nov 2025 & Monthly Infrastructure Mgmt & Help Desk - Dec 2025 & Rapid Fire Tools 2026
135975 14202 Crisp Imaging 305.18 Large Format Paper
135976 12628 Dell Marketing LP 18,006.55 Console servers and Desktops 135977 13675 Michael Drew Devine 25.00 PRBC Meeting Stipends Q4 2025 135978 15196 Curtis Dunne 1,000.00 Deposit Refund - PBVH 12/7/25 135979 12541 Engel & Gray Inc 7,060.07 Composting Biosolids Nov 2025 135980 14325 Engeo Incorporated 2,900.52 Ocean Boulevard/Cliff Avenue Storm Drain - Nov 2025 135981 14741 Epic Entertainment, Inc.1,585.00 Holiday Party DJ & Photobooth Balance 135982 15197 John Fairweather 322.00 Deposit Refund - DCP 10/26/25 135983 14206 Filippin Engineering, Inc.1,272.00 Pier Ave Stair Removal CM - Nov 2025 135984 13276 InfoSend, Inc.1,284.98 Processing-Printing-Mailing Utility Bills Nov 2025 135985 14660 Interwest Consulting Group 21,460.00 Plan Inspection - Public Safety Facility - Nov 2025 135986 12100 David Jewell 150.00 Planning Commission Meeting Stipends Q4 2025 135987 15035 Ian Roxie Journey 100.00 Planning Commission Meeting Stipends Q4 2025 135988 10175 Life-Assist, Inc.923.77 Medical Supplies
135989 14401 Barbara L. Maraist 966.66 900 Bello Lease - Jan 2026 135990 14739 Mike's Coffee and Tea Co.57.01 Coffee
135991 10097 Miners Hardware 438.11 Maintenance Supplies 135992 11119 Sandra Nielsen 25.00 PRBC Meeting Stipends Q4 2025 135993 14343 ODP Business Solutions, LLC 52.54 Office Supplies 135994 10728 Oilfield Environmental & Compliance, Inc.3,268.00 Lab Analysis November 2025 135995 14523 Pacific Publishers, LLC 2,261.00 2026 Tidebook 135996 15195 Celia Perez-Leon Hubbard 177.40 Deposit Refund: MDP 10/31/25 135997 14403 Betty J. Pratt 966.67 900 Bello Lease - Jan 2026 135998 14079 Clare Malone Prichard 150.00 Planning Commission Meeting Stipends Q4 2025 135999 14613 Dennis Richardson 460.00 Instructor: Tennis with Dennis 11/1-11/29/25 #11788 136000 10904 Ron Rodriguez 25.00 PRBC Meeting Stipends Q4 2025 136001 14738 SCA OF CA, LLC 13,662.62 Street Sweeping Services - Nov 2025 136002 15181 Shore Microsystems Inc.39,175.50 PSF Network Redundancy Equipment 136003 15198 Jeffrey Smith 500.00 Deposit Refund - PBVH 12/12/25 136004 11722 SP Maintenance Services Inc 5,157.67 Parking Lot & Street Sweeping Services- November 2025 136005 14757 Quincy Storm 1,508.75 Design Services
136006 14795 James Summer 150.00 Planning Commission Meeting Stipends Q4 2025 136007 12630 SWCA Environmental Consultants 1,422.50 Public Safety Center Archaeological Monitoring - Oct & Nov 2025 136008 13530 TCA Tools Inc 429.75 Maintenance Supplies
136009 11271 Templeton Uniforms 106.27 Uniforms
136010 13442 Thorn Run Partners 5,500.00 Federal Lobbying Services - Dec 2025 136011 UB*01236 STEPHEN PATRICK & TODD LEMAY (T)3.00 Refund Check 017385-000, 1310 COSTA BRAVA 136012 12860 Townsend Public Affairs 5,000.00 State Lobbying Services - Dec 2025 136013 12620 Uline 409.13 Safety Supplies
136014 12982 Ultrex Business Products 2,870.19 Monthly Copier Usage Nov 2025 136015 14980 Agnes Wallace 500.00 Deposit Refund - PBVH 12/6/25 136016 15199 Walton Family Industries 1,500.00 Encroachment Permit Bond Release 136017 12527 Water Systems Consulting Inc 1,355.40 NCMA Staff Extension Services - November 2025 Total:499,736.68$
City of Pismo Beach
Final Disbursement List Check Date 12/26/2025

US BANK
Attachment 2
Council Agenda 2-3-2026 9.B-3
Packet Page 12

ACH/ Vendor Check
Check# Number Payee Amount Description
ACH 10002 Internal Revenue Service 119,562.42$ Federal Income Tax PD 01/02/26 ACH 12305 Franchise Tax Board 24,412.44 State Income Tax & SDI PD 01/02/26 136018 11382 Applied Technology Group, Inc.27,773.84 PSF Antennas 136019 12118 Best Best & Krieger LLP 19,991.50 Professional Legal Services - Nov 2025 136020 11392 Brenntag Pacific Inc.2,002.75 Sodium Bisulfite 136021 13139 Brough Construction 17,259.27 Emergency Storm Drain Repair 136022 14414 California State Disbursement Unit 415.38 Tax Withholding Order PD 01/02/26 136023 14771 California State Disbursement Unit 16.15 Tax Withholding Order PD 01/02/26 136024 14995 California State Disbursement Unit 325.38 Tax Withholding Order PD 01/02/26 136025 15107 Carmel & Naccasha LLP 456.00 Professional Legal Services - Nov 2025 136026 12506 CCGC, Inc Attn: AR 12,143.10 Public Safety Facility Special Inspections - Nov 2025 136027 12224 Delta Dental Of California 7,452.42 Dental Premiums Jan 2026 136028 11469 Eikhof Design Group Inc 5,674.85 Stormwater Inspection - Oct & Nov 2025 & Development Review & Addie Restroom - Nov 2025
136029 13586 Famcon Pipe & Supply Inc.3,133.84 Distribution Maintenance 136030 13450 Franchise Tax Board-Tax Withholding 485.09 Tax Withholding Order PD 01/02/26 136031 13846 Franchise Tax Board-Tax Withholding-2 50.00 Tax Withholding Order PD 01/02/26 136032 14231 Franchise Tax Board-Tax Withholding-4 150.00 Tax Withholding Order PD 01/02/26 136033 12952 GSI Water Solutions Inc 1,782.24 NCMA 2025 Annual Report - November 2025 136034 14926 Jason Addison Smith Consulting Services Inc 30,100.64 Plan Review - Nov 2025 136035 15021 Wendy Lawton 1,150.00 Tax Withholding Order PD 01/02/26 136036 13964 MNS Engineers, Inc.32,523.00 Sunset Palisades LS Design - Nov 2025 136037 15186 Mosaic Public Partners LLC 8,100.00 Executive Recruitment Services 136038 14878 Nevada State Treasurer 2.00 Tax Withholding Order Fee PD 01/02/26 136039 12022 Pismo Beach Police Officer's Association 1,776.00 POA Dues PD 01/02/26 136040 13201 Rincon Consultants, Inc.3,352.10 CEQA/NEPA for Central Coast Blue Nov 2025 136041 14877 SCaDU 230.76 Tax Withholding Order PD 01/02/26 136042 UB*01237 NICKOLAS & LILY SILVA (T)33.87 Refund Check 018738-000, 450 SOLAR #C 136043 13951 Carlos Valentin Gonzalez 541.80 Portables Restrooms- Tennis Courts 11/08/2025-12/06/2025 136044 13073 VSP- Vision Service Plan (CA)1,750.17 VSP Vision Coverage Jan 2026 Total:322,647.01$
City of Pismo Beach
Final Disbursement List Check Date 01/02/2026

US BANK
Attachment 2
Council Agenda 2-3-2026 9.B-4
Packet Page 13

ACH/ Vendor Check
Check# Number Payee Amount Description
136045 14760 AHA Shoes, Inc 296.87$ Safety Boots FY26 136046 12275 Airgas West Inc 1,027.11 Medical Supplies - Dec 2025 & Equipment Maintenance 136047 11382 Applied Technology Group, Inc.587.93 Vehicle Maintenance 136048 14514 BEK Collective Inc 1,290.00 Re-design Electrical - James Way Irrigation - Sep - Nov 2025 136049 14119 Boone Printing & Graphics, Inc.123.30 Business Cards 136050 11740 CDW Government, Inc.3,384.22 PSF Rack Mounted Battery Backup & Power Equipment 136051 15201 Kashia Cha 250.00 Deposit Refund - DCP Amphitheater 12/27/25 136052 11451 Channel Islands Technology Integrators' Group 71,303.34 PSF Networking Equipment & Wireless Access Points & IT Professional Services
136053 10281 City of Arroyo Grande 5,992.46 Activity Guide Printing & Postage - Winter-Spring 2026 136054 14415 CLAD Consulting, Inc.5,757.50 On-Call Construction Inspection Services - Oct 2025 & James Way & Vista Pacifica Security Camera CM
136055 12516 County of San Luis Obispo Health Agency 38,509.50 Animal Shelter Services Fee Q1 & Q2 FY25/26 136056 14202 Crisp Imaging 361.45 Printing Services
136057 14733 Deep Blue Integration 1,095.00 Quarterly Fire Alarm Monitoring- Corp Yard 1/1/26-3/31/26 & Annual Fire Alarm Test & Inspection 2026
136058 12320 Dept Of Forestry and Fire Protection 771,073.07 Schedule A-1st Quarter Actual FY 25/26 7/1/25-09/30/25 136059 11222 Drive Customs 5,189.76 Vehicle Maintenance 136060 14325 Engeo Incorporated 6,043.95 Ocean Boulevard/Cliff Avenue Storm Drain - Oct 2025 136061 12123 Farm Supply 489.24 Park Supplies
136062 14308 Fire Apparatus Solutions 675.57 Vehicle Maintenance 136063 13401 Rebecca Forcier 452.00 M&IE: CMO Meetings & City Hall Work 1/11-1/16/26 136064 10149 Heacock Trailers & Truck 35.89 Vehicle Maintenance 136065 15202 Jeanette Homan 456.65 Planning Permit & Fees & Planning Mailing Service Refund 136066 12255 Iron Mountain Information Mgmt, Inc 295.63 Shredding Services City Hall - 11/25/2025 - 12/19/2025 136067 15090 Kellie Avila Construction Services, Inc 3,910.00 Traffic Control - James Way & Vista Pacifica 12/8/25 136068 11833 Keylock Security Specialists 213.69 Facilities Maintenance 136069 13361 Marborg Industries Santa Barbara 3,473.40 Portable Restrooms 136070 14042 Merjan Enterprises, Inc.17,772.76 Camera Equipment & Installation & SSA for AMAG Symmetry 136071 15203 Jazzlyn Miller 1.00 Refund Claimed Property-Evidence 136072 10097 Miners Hardware 1,304.38 Maintenance Supplies 136073 10039 New Times 679.00 Legal Advertising
136074 13975 Scott Newton 1,344.99 CY 2025 Health Ins. Premium Refund 136075 13279 Pacific Central Coast Health Centers 115.00 Pre-employment Health Screening 136076 12315 Pacific Gas & Electric Company 12,702.06 Electricity - Dec 2025 136077 14102 Peak WiFi LLC 1,014.55 Internet Service - Jan 2026 & Equipment Maintenance 136078 14740 Premier Supply, LLC 1,843.86 Parks Maintenance 136079 12335 Procare Janitorial Supply Inc 4,032.72 Janitorial Supplies 136080 14120 Quincon, Inc.24,201.84 Bello Bridge Habitat Mitigation - July - Sept 2025 136081 14755 Terri Recchia Bledsoe 150.00 Professional Services 136082 13061 RecWest Outdoor Products, Inc.44,994.05 Trash Receptacles - City Bus Stops 136083 13201 Rincon Consultants, Inc.5,942.00 PEIR Report GP/LCP - Jul - Nov 2025 136084 14794 Ruff Ruff Pet Products Inc 4,231.39 Dog Waste Bags 136085 11266 San Luis Auto Parts Inc 98.23 Vehicle Maintenance 136086 14048 Sheila Sanford 687.50 Cookies for Holiday Harmony Cookie Decorating 136087 11168 Sherwin-Williams 827.64 Maintenance Supplies 136088 13913 Silvas Oil Co., Inc 5,833.95 Diesel & Unleaded Fuel Delivery 12/17/25 136089 10533 SLO County Sheriff Department 750.00 Annual Range Fee FY 2025/26 136090 15200 Denise Stevens 722.00 Refund Deposit DCP 1/3/26 136091 11323 Streator Pipe & Supply 547.70 Maintenance Supplies 136092 12321 The Gas Company 2,033.82 Gas Service 11/14/25 - 12/18/25 136093 14821 Traffic Management Products Inc 227.37 Signs 136094 12041 United Rentals Northwest, Inc 111.28 Safety Equipment 136095 13392 Urban Planning Concepts 8,815.00 GP/LCP Services - Nov 2025 136096 10507 V & V Manufacturing 517.06 Badges
136097 13678 Wallace Group 3,346.10 2025 SSMP Audit and 2026 SSMP Update - Nov 2025 136098 15116 Wanger Jones Helsley PC 3,441.00 Professional Legal Services - Dec 2025 136099 13617 Debra Warden 430.65 2025 Employee Recognition Plaques 136100 12132 White Flag Pest Control Inc 305.00 Pest Control 136101 13377 Willdan Financial Services 1,025.00 Accounting & Analyst Support Services - Oct 2025 136102 13326 Williams Cleaning Systems LLC 429.11 Equipment Maintenance Total:1,072,765.54$
City of Pismo Beach
Final Disbursement List Check Date 01/09/2026

US BANK
Attachment 2
Council Agenda 2-3-2026 9.B-5
Packet Page 14

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.C
Meetin Date: Februar 3, 2026
TITLE:

Monthly Investment Transaction Report of the City’s Cash and Investments for December 2025 of Fiscal Year 2026
RECOMMENDATION:

No action recommended; for information only.

DISCUSSION:

This report updates the City Council on the City of Pismo Beach’s monthly transactions of the City’s investment portfolio for the month ending December 31, 2025. California Government Code Section 53607 states that if the authority of the legislative body to invest or reinvest funds for the City is delegated to the City Treasurer, the City Treasurer shall make a monthly report of those transactions to the legislative body. Pursuant to Government Code Section 6505.5, this information is being provided here to the Pismo Beach Public Financing Authority, the Pismo Beach Public Financing Agency, and the Central Coast Blue Regional Recycled Water Authority, through the members of the City Council who sit on those boards.

The attached report includes all transactions of the City’s investments managed by the City, including funds invested in various securities and the City’s pooled funds invested in various financial instruments.
Attachment 1 provides a summary of the City’s cash, investments, and monthly interest earnings based on book value as of December 31, 2025. Attachment 2 provides details on the investment transactions for the General Fund Reserve and City Pooled Funds A (for deferred capital projects), including: purchases or deposits; sales, maturities, calls or withdrawals; and interest earnings. Attachment 3 provides details of the monthly transactions by fund for City Pooled Funds B (for current year expenditures) for the month ending December 31, 2025.

FISCAL IMPACT:

No fiscal impact from the report itself—information only.

ATTACHMENTS:

1. Summary Table for ALL Funds, including Book Values and Earnings Data for Investments in Other Financial Instruments

2. For the General Fund Reserve and City Pooled Funds A—Transactions on Investments in Securities

3. For City Pooled Funds B—Summary of monthly transactions by fund Prepared by: Vanessa Garris, Finance Manager
Submitted by: Nadia Feeser, Administrative Service Director / City Treasurer City Manager Approval:

Council Agenda 2-3-2026 9.C-1
Packet Page 15

City of Pismo Beach
Investment Name Name of Institution Type of Investment
Current
Earnings
Rate Book Value
Actual Interest
Earned
December 2025
Actual Year-to-
Date Interest
Earned Ending
12/31/25 * Data Sources
General Fund
Reserves
US Bank CDs/GASs/Corp
Bonds/Treasuries

3.12% avg 9,462,481 48,360$ 134,719$ 1 City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ MBSs/
Treasuries

3.30% avg 45,977,465 107,807 667,549 1 Total All Securities 55,439,946$ 156,167$ 802,268$ City Pooled Funds - B US Bank Custody 4.17%208,400$ 3,234$ 10,348$ 1 City Pooled Funds - B Local Agency Invest.

Fund (LAIF)
State Investment
Pool

4.20%419,862 4,439 8,976 2 City Pooled Funds - B PFM Asset Mgmt
CAMP
JPA Investment Pool 3.95%15,397,703 51,429 325,561 3 City Pooled Funds - B US Bank Checking & Sweep 3.41%14,290,734 42,503 228,749 4 City Pooled Funds - B 30,316,699$ 101,605$ 573,635$ City Pooled Funds total A + B 76,294,163$ 209,412$ 1,241,184$ Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 Pier Project 1,206$ 872$ 1,332$ 5 Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 CREB's
Project
1,001 725 1,002 5 Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2024 Public Safety
Facility
15,424,283 101,018 672,561 5
CalPERS Benefit Trust
OPEB Trust Account CalPERS Benefit
Trust Account
Various managed
by CalPERS
6,254,602$ 106,053$ 434,880$ 6 TOTAL, Cash and Investments at December 31, 2025:107,437,736$ 466,441$ 2,485,678$ TOTAL for City Managed Portfolio, Cash and Investments:85,756,644$ 257,772$ 1,375,903$ Notes:
* Data Sources for Book Values and Actual Interest Earned:
1 = Monthly investment statement from US Bank
2 = Monthly statement from Local Agency Investment Fund 3 = Monthly statement from PFM Asset Management LLC
4 = Monthly reconciled bank statement from US Bank
5 = Monthly statement from Wilmington Trust
6 = Monthly statement from CalPERS Benefit Trust Account Attachment 1: Summary Table for All Funds,
including Book Values and Earnings Data for Investments in Other Financial Instruments Council Agenda 2-3-2026 9.C-2
Attachment 1
Packet Page 16

CITY OF PISMO BEACH
Attachment 2: For the General Fund Reserve and City Pooled Funds A Transactions on Investments in Securities
December 31, 2025

INVESTMENT ACTIVITY

PURCHASES OR DEPOSITS
12/04/25 Purchase Home Depot 195,482$
12/04/25 Purchase US Treasury 304,969
12/05/25 Purchase FHLMC Multiclass Mtg 353,089
12/10/25 Purchase National Rural Utils Coop Fin 199,812 12/16/25 Purchase US Treasury 698,525
12/29/25 Purchase FHLMC Multiclass Mtg 545,284
Total 2,297,161$

SALES, MATURITIES, CALLS OR WITHDRAWALS
12/26/25 Paid Down FHLMC Multiclass Mtg 754$
12/26/25 Paid Down FHLMC Multiclass Mtg 58
12/26/25 Paid Down FHLMC Multiclass Mtg 325
12/26/25 Paid Down FHLMC Multiclass Mtg 69
12/26/25 Paid Down FHLMC Multiclass Mtg 388
12/26/25 Paid Down FHLMC Multiclass Mtg 11,783
12/26/25 Paid Down FNMA Gtd Remic 216
12/26/25 Paid Down FNMA Gtd Remic 1,797
12/26/25 Paid Down FNMA Gtd Remic 654
12/26/25 Sold State Street Corp 105,000
12/24/25 Sold US Treasury 518,719
Total 639,764$
ACTIVITY TOTAL 1,657,397$

INTEREST REVENUE

GENERAL FUND RESERVE INVESTMENTS
Interest Earned on Investments 48,360$

POOLED INVESTMENTS
Interest Earned on Investments 107,807$
TOTAL INTEREST EARNED 156,167$
Data Source: Monthly Download of Transactions from US Bank Council Agenda 2-3-2026 9.C-3
Attachment 2
Packet Page 17

City of Pismo Beach
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund Bank Account Proof of Cash for the month ending: 12/31/2025 Bank Account Description Bank ID Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance General Checking US Bank 14,100,870$ 7,230,720$ (7,040,856)$ -$ -$ 14,290,734$ LAIF LAIF 419,862 - - - - 419,862
PFM Asset Management LLC CAMP 15,346,274 51,429 - - - 15,397,703 Total all Bank Accounts 29,867,006$ 7,282,149$ (7,040,856)$ -$ -$ 30,108,298$ Fund Description Fund # Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance General Fund
General Fund 1001-10101 5,150,812 1,108,339 (1,750,891) - - 4,508,259 General Fund-Reserve 1001-10105 8,655 45,989 - - - 54,644 Transaction Sales Tax Fund 1002 2,802,412 399,084 - - - 3,201,496 Special Revenue Funds
Gas Tax Fund 2001 507,173 54,844 - - - 562,017
LTF - Streets 2002 599,803 1,054 - - - 600,857
PEG Access Fund 2003 150,782 (60) - - - 150,722
Police Grant Fund 2004 122,191 (2,431) - - - 119,760 Housing In Lieu Fund 2005 350,234 542 (50,000) - - 300,776 LBID Fund 2006 2,525,984 (116,247) (3,349) - - 2,406,388 Chapman House 2007 47 3,761 (2,177) - - 1,630 Capital Projects Funds
Capital Projects Fund 3001 636,993 3,303,247 (3,358,343) - - 581,897 Public Facilities Fund 3002 969 2 - - - 971
Park Development Fund 3003 304,767 26 - - - 304,793 Circulation Fund 3101 622,979 1,170 - - - 624,149 Development Impact Fee Fund 3102 66,755 48 - - - 66,803 Developer Impact Fee Fund 3103 184,510 347 - - - 184,857 Underground Utility Fund 3201 18,241 34 - - - 18,275 Council Agenda 2-3-2026 9.C-4
Attachment 3
Packet Page 18

City of Pismo Beach
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund Bank Account Proof of Cash for the month ending: 12/31/2025 Fund Description Fund # Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance Debt Service Funds
Public Finance Authority Fund 4001 - - - - - - Public Finance Authority Fund 4002 - - - - - - Freeway Foothills AD Fund 4101 844 2 - - - 846 Spyglass AD Fund 4102 14,050 26 - - - 14,077
Indio-El Portal AD Fund 4112 816 2 - - - 817
Visalia Street AD Fund 4113 12,636 24 - - - 12,659 Enterprise Funds
Water Enterprise/Tax Fund 6101/6102 4,806,028 963,285 (1,204,828) - - 4,564,485 Water Construction Fund 6103 948,708 1,786 - - - 950,494 Water Expansion Fund 6104 250,771 400,472 - - - 651,243 Water Central Coast Blue JPA 6105 5,676 605 - - - 6,281 Wastewater Enterprise Fund 6201 1,100,970 630,236 (241,396) - - 1,489,810 Wastewater Construction Fund 6202 2,140,914 54,515 (50,484) - - 2,144,946 Wastewater Expansion Fund 6203 641,976 1,209 - - - 643,185 Wastewater CCB JPA 6204 11,613 1,228 - - - 12,841 LTF - Transit Fund 6301 - - - - - -
Pier Operations Fund 6401 1,625 1,974 (3,460) - - 139 Parking Fund 6501 2,258,797 (93,270) (31,058) - - 2,134,469 Internal Service Funds
Technology Service Fund 7101 204,321 181,045 (91,040) - - 294,327 Motor Vehicle Fund 7201 1,363,120 171,855 (48,361) - - 1,486,615 Trust & Agency Funds
SLO County TMD 8201 175,767 128,000 (162,749) - - 141,018 Control Funds
Payroll Control Fund 9301 1,561,831 956 (49,715) - - 1,513,072 Interest Control Fund 9302 140,423 42,427 - - - 182,849 Utility Billing Control Fund 9304 172,811 3,018 - - - 175,829 M/R Control Fund 9305 - - - - - -
Total all cash funds 29,867,006 7,289,143 (7,047,850) - - 30,108,298 Council Agenda 2-3-2026 9.C-5
Attachment 3
Packet Page 19

City of Pismo Beach
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund Bank Account Proof of Cash for the month ending:12/31/2025 Fund Description Fund # Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance

INVESTMENTS
General Fund
General Fund Money Mrkt Csh 1001-10108 0 34,230 - - - 34,230 General Fund - CD's 1001-10404 3,625,033 - - - - 3,625,033 General Fund - Fed Agency 1001-10405 3,299,000 - - - - 3,299,000 GF Reserve Money Mkt Cash 1001-10109 540,169 (497,273) - - - 42,896 GF Reserve - CD's 1001-10403 2,537,967 - - - - 2,537,967 GF Reserve - Fed Agency 1001-10402 2,208,000 - - - - 2,208,000 GF Reserve - Building 1001-10406 202,000 - - - - 202,000 GF Reserve - Building - Federal 1001-10146 298,000 - - - - 298,000 GF Reserve - Risk Mgmt - CD's 1001-10407 200,000 - - - - 200,000 GF Reserve - Risk Mgmt - Fed A 1001-10140 50,000 - - - - 50,000 GF Corp Bond - Pooled 1001-10141 3,550,464 - - - - 3,550,464 GF Corp Bond - Reserve 1001-10145 2,507,269 195,482 - - - 2,702,751 GF Municipal Bonds Pooled 1001-10142 - - - - - - GF Municipal Bonds Reserve 1001-10143 - - - - - - Risk Mgmt Muni Bonds Reserve 1001-10144 - - - - - - GF Treasury Note 1001-10410 5,957,124 (518,719) - - - 5,438,405 GF Treasury Bill 1001-10411 - - - - - - GF Mortgage Back Sec 1001-10412 4,161,220 542,888 - - - 4,704,109 GF Reserve Treasury Note 1001-10413 958,795 304,969 - - - 1,263,764 GF CREB's Fiscal Agent 1001-10515 (0) - - - - (0) GF - Transaction Sales Tax CD's 1002-10404 245,000 - - - - 245,000 GF - Transaction Sales Tax Fed 1002-10405 500,000 - - - - 500,000 GF - Transaction Sales Tax Mny 1002-10108 56,043 (56,043) - - - 0 Transaction Sales Tax - Pooled 1002-10141 910,372 94,812 - - - 1,005,184 Transaction Sales Tax - Muni Bo 1002-10142 - - - - - - Transaction Sales Tax Treasury 1002-10410 1,231,445 - - - - 1,231,445 Transaction Sales Tax Treas Bill 1002-10411 - 698,525 - - - 698,525 Transaction Sales Tax Mortg Bac 1002-10412 739,414 - - - - 739,414 Special Revenue Funds
Housing In Lieu - Mny Mkt Csh 2005-10108 456 1,176 - - - 1,631 Housing In Lieu Fund 2005-10404 140,000 - - - - 140,000 Housing In-Lieu Fed Agencies 2005-10405 140,000 - - - - 140,000 Housing In-Lieu Treasury Note 2005-10410 - - - - - - LBID Fund Money Market Cash 2006-10108 62,946 (62,946) - - - (0) LBID Fund - Treasury Note 2006-10410 242,878 - - - - 242,878 LBID Fund - Pooled 2006-10141 889,501 - - - - 889,501 LBID Fund Mortgage Back Sec 2006-10412 496,982 341,306 - - - 838,288 Capital Projects Funds
Capital Proj Fund Mny Mkt Cash 3001-10108 21,348 2,345 - - - 23,693 Capital Projects Fund - Pooled 3001-10141 403,640 - - - - 403,640 Capital Projects Fund - Fed Age 3001-10405 1,000,000 - - - - 1,000,000 Capital Proj Fd Mortgage Back S 3001-10412 556,682 - - - - 556,682 Park Develop. Fund Mny Mkt 3003-10108 - - - - - - Park Development Fund 3003-10404 - - - - - - Park Develop Federal Agencies 3003-10405 - - - - - - Circulation Fees Mny Mkt 3101-10108 - - - - - - Circulation Fees 3101-10404 - - - - - - Develop. Impact Fee Mny Mkt 3102-10108 3,069 1,012 - - - 4,081 Development Impact Fee Fund 3102-10404 245,000 - - - - 245,000 Impact Fees Federal Agencies 3102-10405 - - - - - - Council Agenda 2-3-2026 9.C-6
Attachment 3
Packet Page 20

City of Pismo Beach
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund Bank Account Proof of Cash for the month ending: 12/31/2025 Fund Description Fund # Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance

INVESTMENTS
Debt Service Funds
Capital Proj Fund - Fiscal Agent 3001-10511 18,239,038 (2,814,755) - - - 15,424,283 Public Fin Fiscal Agent-Pier 4002-10510 293,390 (292,184) - - - 1,206 Public Fin Fiscal Agent-PSF 4002-10511 1,498,532 (1,498,532) - - - - Public Fin Fiscal Agent-CREBs 4002-10515 243,754 (242,753) - - - 1,001 Visalia Street AD Fund 4113-10108 1,203 384 - - - 1,587 Visalia Street CD's 4113-10404 100,000 - - - - 100,000 Enterprise Funds
Water Fund Money Mrkt Csh 6101-10108 292,013 (291,273) - - - 740 Water Fund CD's 6101-10404 735,000 - - - - 735,000 Wtr Fund Federal Agencies 6101-10405 1,155,000 - - - - 1,155,000 Wtr Fund Corp Bond - Pooled 6101-10141 3,128,111 - - - - 3,128,111 Water Fund Treasury Note 6101-10410 1,158,597 - - - - 1,158,597 Water Construction Money Mkt 6103-10108 8,146 54 - - - 8,200 Wtr Constr. Fd Corp Bond-Pool 6103-10141 897,391 - - - - 897,391 Water Construction 6103-10404 - - - - - - Water Expansion Fd Mny Mkt Ca 6104-10108 434,398 (399,905) - - - 34,493 Wtr Expansion Fund - Pooled 6104-10141 - - - - - - Water Fund Treasury Note 6104-10410 21,960 - - - - 21,960 Wastewater Fund Money Market 6201-10108 227,807 (227,305) - - - 502 Wastewater Fund CD's 6201-10404 490,000 - - - - 490,000 Wastewater Fund Fed Agencies 6201-10405 1,100,000 - - - - 1,100,000 WWtr Fund Corp Bond - Pooled 6201-10141 1,652,830 - - - - 1,652,830 WWtr Fund Treasury Note 6201-10410 657,724 - - - - 657,724 Wastewater Expansion Fund Mn 6203-10108 10,730 3,594 - - - 14,324 WWtr Expansion Fd Mortgage B 6203-10412 1,094,546 - - - - 1,094,546 Parking Enterprise Money Mrkt 6501-10108 13,605 3,756 - - - 17,362 Parking Fund Corp Bond-Pooled 6501-10141 - - - - - - Parking Enterprise 6501-10404 980,000 - - - - 980,000 Parking Fund Federal Agencies 6501-10405 - - - - - - Parking Fund Treasury Note 6501-10410 - - - - - - Internal Service Funds
MVR Fund Money Mrkt Csh 7201-10108 10,455 14,206 - - - 24,661 MVR Fund CD's 7201-10404 1,526,000 - - - - 1,526,000 MVR Fund Federal Agencies 7201-10405 250,000 - - - - 250,000 MVR Fund Treasury Note 7201-10410 567,432 - - - - 567,432 MVR Mortgage Back Securities 7201-10412 972,173 (1,866) - - - 970,308 CalPers Benefit Trust
OPEB Trust Account 8101-10408 6,149,643 104,960 - - - 6,254,602 Total all Investments 81,889,293$ (4,559,856)$ -$ -$ -$ 77,329,437$ Total all Funds 111,756,299$ 2,729,286$ (7,047,850)$ -$ -$ 107,437,736$ Council Agenda 2-3-2026 9.C-7
Attachment 3
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.D
Meetin Date: Februar 3, 2026
TITLE:

Fiscal Year 2026 Second Quarter Financial Status Report RECOMMENDATION:

No action recommended; for information only.

EXECUTIVE SUMMARY:

This report updates the City Council on the status of Fiscal Year (FY) 2025-26 ending on June 30, 2026, or FY 2026, financial status based on actual revenues and expenditures during the first six months of the fiscal year.

The City of Pismo Beach’s financial outlook remains stable, with fund balances projected to be sufficient. The General Fund’s unassigned ending balance for FY 2026 is estimated at $7.36 million, which represents a decrease of $4.40 million compared to FY 2025. This reduction is largely driven by spending down fund balance for capital projects, including the Public Safety Facility, and a projected net operating deficit of $2.30 million that will draw from the beginning unassigned fund balance.

For most of the City’s other funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2027 Adopted Budget beginning fund balances. In all the other funds, there are sufficient fund balances and projected revenues to cover projected expenditures.

The following sections provide details of the General Fund financial picture, followed by a summary and highlights of the City’s other funds.

I. General Fund Budget Summary
In summary, based on early projections from the first six months of the fiscal year, the General Fund is projected to end FY 2026 with a $7.36 million unassigned fund balance.

The FY 2026 projected $7.36 million unassigned fund balance is $1.82 million less than the FY 2026 Revised Budget. This decrease is attributable to $1.81 million in fewer one- time revenues and $9 thousand fewer projected operating revenues compared to the Revised Budget.

The unassigned fund balance is used to support operations and pay for future one-time investments included in the FY 2026 budget and in the 10-year Capital Improvement Plan.

In addition to the General Fund unassigned fund balance, the General Fund includes the Budget Stabilization Reserve set-aside of $2.00 million.

Table 1 is a summary of the FY 2025 actuals and the FY 2026 General Fund revised budget, projected actuals, and a variance comparing the budget to projected actuals.

Council Agenda 2-3-2026 9.D-1
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Table 1: FY 2026 General Fund Budget Summary

II. General Fund Beginning Fund Balance
The General Fund beginning fund balance is comprised of two different components:

 The unassigned fund balance, which are funds that are not committed for any specific purpose and could be used for various one-time projects, and  The committed or carryforward fund balance, which are funds that are committed for a specific budgeted use.

As illustrated in Table 2, the FY 2026 Adopted Budget General Fund beginning fund balance was projected to be $10.67 million. Based on changes during FY 2025 and carrying forward fund balance to cover previously budgeted but not-yet-spent expenditures, the fund balance is revised to $26.25 million. This includes $11.00 million of unassigned fund balance and $15.24 million of carryforward fund balances.

A B C D = C - B
($ thousands)
FY 2025
Preliminary
Actuals
FY 2026
Revised
Budget
FY 2026 Year
End
Projected
Actuals
Variance
(Actuals-
Budget)
Unassigned Fund Balance 9,619$ 11,005$ 11,005$ -$ Committed Fund Balance 15,020 15,244 15,244 - a Beginning Fund Balance 24,639 26,249 26,249 - b Operating Revenues 35,295 33,901 33,892 (9) c Operating Expenditures 28,014 36,190 36,190 - d = b - c Net Operating Surplus/(Deficit) 7,281 (2,289) (2,298) (9) e One-time Revenues 340 3,065 1,254 (1,812) f One-time/Capital Expenditures 5,077 15,603 12,164 (3,439) g =
a+d+e-f Ending Fund Balance 27,183$ 11,422$ 13,041$ 1,619$ Unassigned Fund Balance 11,761$ 9,185$ 7,364$ (1,820)$ Committed Fund Balance 15,244 - 3,439 3,439 Contribution to Reserves (1,822) 238 238 - Budget Stabilization Set-Aside 2,000 2,000 2,000 - Council Agenda 2-3-2026 9.D-2
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Table 2: FY 2026 General Fund, Beginning Fund Balance

III. General Fund Reserve
The City maintains various General Fund reserves totaling $9.46 million for emergency operations, building depreciation, and risk management. These reserves are crucial in order to avoid disrupting the City’s operations following unanticipated events. The reserves are shown in Table 3, followed by a summary of each reserve.

Table 3: General Fund Reserves

Reserve Amount $ thousands
General Fund 25% Reserve $8,712
Cit Buildin Reserve 500
Risk Mana ement Reserve 250
Total $9,462

General Fund 25% Reserve
The City has adopted a fiscal policy to fund a General Fund Reserve of 25% of General Fund budgeted annual operating expenditures for FY 2026. The General Fund reserve should be equal to $9.05 million, which is 25% of the total FY 2026 budgeted annual operating expenditures of $36.19 million. Currently, the General Fund Reserve is $8.81 million, of which $8.71 million is invested in various securities and $98 thousand is pending investment. This reserve allows the City to maintain its operations for a few months in the event that an emergency or disaster impacts the City’s finances, and can also be used for emerging opportunities. The City Treasurer will be investing an additional $238 thousand during FY 2026 to fully fund the General Fund Reserve.

City Building Reserve
The City Council created a City Building Reserve of $500 thousand, for the maintenance and upkeep of City facilities and buildings, particularly if funds are not available. This amount is equal to five years of annual depreciation on City-owned buildings.

Risk Management Reserve
The City Council established a Risk Management Reserve, contributing $50 thousand each year to the budget for unanticipated risk management costs. This reserve has a balance of $250 thousand, which is the maximum contribution level.

($ thousands)
Adopted
Budget
Budget
Revisions Actuals
Unassigned Fund Balance 10,674$ 331$ 11,005$
Capital Funds Carryforward 14,506 14,506
Purchase Orders Carryforward 637 637
Prepayment Carryforward 101 101
Total Fund Balance 10,674$ 15,575$ 26,249$
$15,244
Carryforward
Council Agenda 2-3-2026 9.D-3
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IV. General Fund Revenues
The FY 2026 Revised Budget includes total revenues of $36.97 million, with actual revenues anticipated to reach $35.15 million, which is $1.82 million less than budgeted.

Compared to FY 2025, the FY 2026 projected actual revenues are expected to decrease by $489 thousand, or 1.4%. This year-over-year decrease is primarily driven by fewer Other Revenues ($828 thousand), Transient Occupancy Tax (TOT) revenues ($457 thousand), and Fees, Grants, and Intergovernmental revenues ($297 thousand). These declines are partially offset by a $914 thousand increase in one-time revenues. Table 4 provides a summary of the General Fund revenue budget alongside the projected actual revenues for FY 2026. This is followed by a detailed review of the top three revenue sources for FY 2026, as well as a discussion on significant variances between FY 2026 projected revenues and FY 2025 actual figures.

Table 4: FY 2026 General Fund Revenue Budget and Projected Actuals

 Transient Occupancy Tax (TOT) revenues are projected to fall $374 thousand short of the budget and $457 thousand, or 3.0%, below the previous year’s revenues. TOT revenues are collected from an 11% tax on rent charged by lodging businesses for stays of 30 consecutive days or less is primarily due to several hotels undergoing renovations that are either fully or partially closed, as well as the impact of rainy weather on travel in November 2025. To date, TOT revenues are down an average of

3.1% during the first five months of the fiscal year, with an additional projected decline of 1.6% for the remainder of FY 2026 compared to FY 2025. Chart 1 further illustrates FY 2026 TOT revenues collected in comparison to FY 2025.

A B C D = C - B E = C - A F = C/A-1
($ thousands)
Revenue Category
FY 2025
Actuals
FY 2026
Revised
Budget
FY 2026
Projected
Actuals
Variance
(Projected
Actuals -
Revised
Bdgt)
Variance
(FY26 Proj
Act - FY25
Actuals)
%
Variance
(FY26 Proj
Act v FY25
Actuals)
Proj
Actual
% of
Total
Transient Occupancy Tax 15,180$ 15,097$ 14,723$ (374)$ (457)$ -3.0% 41.9% Property-Related Taxes 7,740 7,655 7,770 115 30 0.4% 22.1% Sales and Use Tax 3,966 3,974 3,844 (130) (122) -3.1% 10.9% Other Revenues 4,015 2,854 3,187 334 (828) -20.6% 9.1% Permits 1,184 1,756 1,720 (35) 537 45.3% 4.9% Other Taxes 1,274 1,271 1,278 6 4 0.3% 3.6% Transfers In 1,126 920 920 - (206) -18.3% 2.6% Departmental Revenues 357 293 293 - (64) -17.9% 0.8% Fees, Grants, Intergovernmental 454 81 157 76 (297) -65.5% 0.4% Total Operating Revenues 35,295$ 33,901$ 33,892$ (9)$ (1,403)$ -4.0% 96.4% One-time Revenues 340 3,065 1,254 (1,812) 914 268.6% 3.6% Total Revenues 35,635$ 36,966$ 35,146$ (1,820)$ (489)$ -1.4% 100.0% Council Agenda 2-3-2026 9.D-4
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Chart 1. TOT Revenues FY 2026 compared to FY 2025

According to data from Smith Travel Research Inc., which provides competitive benchmarking for the hotel industry, and excluding hotels closed for renovations, occupancy rates declined slightly while average daily room rates increased marginally during the first five months of the fiscal year compared to the same period last year.

Specifically, occupancy decreased by 1.3%, partially offset by a 0.1% increase in average daily room rate in the first five months of FY 2026 compared to FY 2025.

Based on these trends, staff projects that TOT revenues will reach $14.72 million, representing a $374 thousand shortfall from the budgeted amount, and a 3.0% decrease, or $457 thousand decrease, from the previous year's TOT revenues.

 Property-related tax revenues are projected to be $115 greater than budget and $30 thousand, or 0.4%, greater than previous year’s property-related tax revenues. There are two sources of property-related tax revenues:
o Property Tax Assessed Value revenues: equivalent to 1% of assessed values. o Property Tax In-Lieu of Vehicle License Fees: 1% tax on the market value of a registered vehicle.

Assessed value cannot increase by more than 2.0% per year per Section 2 of Article XIIIA of the California Constitution. The property tax projected actuals are based on San Luis Obispo County Auditor-Controller’s office certified assessed values for the current year.

0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
TO
T

A
m
o
u
n
t
Transient Occupancy Tax (TOT), 11% of gross lodging rents FY 2026
FY 2025
Council Agenda 2-3-2026 9.D-5
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 Sales and Use Tax revenues are projected to be $130 thousand less than budget and $122 thousand, or 3.1%, less than the prior year. Sales and use tax revenues are made up of two sources:
o Bradley-Burns uniform sales and use tax, which is a 1.0% tax on taxable sales within the City.
o Public safety tax, which is a 0.5% tax on taxable sales for specified public safety purposes.

Based on actual sales tax receipts to date, the Bradley-Burns Uniform Sales and Use Tax is projected to be $130 thousand less than budget expectations, and fall short of the prior year’s revenues by $122 thousand. Using data from the City’s sales tax consultant and actual revenues collected so far, City staff estimates that Bradley- Burns sales and use tax revenues will total $3.72 million. Chart 2 illustrates sales tax revenues received in FY 2025 and FY 2026 by the month in which the sales tax was collected.

Chart 2. Bradley Burns Sales Tax Revenues FY 2026 compared to FY 2025

The public safety sales tax revenues are budgeted at $123 thousand in FY 2026 and are anticipated to be equal to budget. This FY 2026 projected amount is $911 greater than the FY 2025 public safety sales tax revenues.

In summary, sales and use tax revenues are projected to be $130 thousand less than budget and $122 thousand, or 3.1%, less than the prior year.

 Other Revenues are projected to come in $334 thousand greater than budget but $828 thousand, or 20.6%, lower than the previous year. This category includes fines and $-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Sa
l
e
s

T
a
x

A
m
o
u
n
t
Sales Tax 1.0% of taxable sales
FY 2025
FY 2026
Council Agenda 2-3-2026 9.D-6
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forfeitures, interest earnings, rents and leases, various service fees, and other miscellaneous revenue sources. The year-over-year decrease is primarily attributable to several one-time items recorded in FY 2025 that will not recur in FY 2026, including a $411 thousand legal settlement and a $515 thousand investment valuation gain reflecting the difference between original cost and fair market value. In addition, interest earnings are projected to decline by $97 thousand due to lower interest rates.

These decreases are partially offset by a projected $268 thousand increase in charges to other funds.

 Fees, Grants, and Intergovernmental Revenues are projected to be $76 thousand greater budget and $297 thousand, or 65.5%, less than the prior year. This is largely due to the City of Pismo Beach drawing down $180 thousand from the City’s Other Post Employment Benefit account as it is currently over funded in FY 2025 and currently not budgeted to draw down that amount in FY 2026; receiving $75 thousand for a FEMA reimbursement for Fire services in FY 2025 but not expected in FY 2026; and receiving $42 thousand more in SB 90 unfunded mandate reimbursements from the State in FY 2025 compared to the FY 2026 budget.

 Permits are projected to be $35 thousand less than budget and $537 thousand, or

45.3%, greater than the prior year. This additional $537 thousand compared to the FY 2025 anticipates the projected one-time developments, including Shell Beach Road at Beachcomber, the Gateway project on Price Street, and other commercial and multi-family developments.

V. General Fund Expenditures
The FY 2026 Revised Budget expenditures total $51.79 million and projected actual expenditures total $48.35 million.

Total operating expenditures for the second quarter total should be about 50% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 44% of the operating budget has been spent in the first two quarters, while only

25.2% of the one-time capital expenditure budget has been spent in the first two quarters.

These one-time costs are dependent on the timing of construction of these projects. Table 5 provides details of actuals as a percentage of budget by expenditure category, followed by explanations of the large variances from the 50% mark.

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Table 5. FY 2026 General Fund Expenditure Budget and Projected Actuals

Some operating costs that do not reflect consistent monthly spending include:
 Benefits, which includes retirement, health, and other benefits for employees. In order to take advantage of a 3% savings in CalPERS pension costs, the City prepaid the full year of its projected normal CalPERS pension costs. As such, the Benefits expenditure category reflects that 58% of the budget was spent in the first two quarters.
 Professional Services, which reflects that 13% was spent in the first half of the year.

These costs are based on the timing of work performed and are not set amounts per month.
 Debt Service, which reflects that 65% was spent in the first two quarters. Debt service payments are due in December and June each year and do not follow a consistent monthly draw.
 Operations & Maintenance, which reflects that 35% was spent in the first half of the year. Staff will continue to monitor this category to determine if there may be savings.  Other Financing Uses, which includes a $500 thousand general contingency budget and reflects that only 26% of the budget has been spent in the first half of the year.

This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures.  Retiree Medical Insurance costs, which reflects that 0% of budget was spent in the first two quarters. The monthly costs are payments to Retirees, but the majority of these payments are contributions to CalPERS for the actuarially determined contribution and are paid toward the end of the fiscal year.

A B C D = C/B E
($ thousands)
Expenditure Category
FY 2025
Actuals
FY 2026
Revised
Budget
FY 2026
Second
Quarter
Actuals
Second
Quarter
Actuals % of
Budget
FY 2026
Projected
Actuals
Proj
Actual
% of
Total
Salaries & Wages 9,606$ 10,861$ 4,926$ 45% 10,861$ 22.5% Benefits 4,585 6,583 3,805 58%6,583 13.6% Professional Services 3,995 5,740 729 13%5,740 11.9% Contract Services 3,330 3,946 2,029 51%3,946 8.2% Debt Service 1,934 2,808 1,815 65%2,808 5.8% Operations & Maintenance 1,846 2,127 738 35%2,127 4.4% Other Expenses 1,561 2,001 934 47%2,001 4.1% Transfers Out 740 1,157 494 43%1,157 2.4% Other Financing Uses 206 620 162 26%620 1.3% Retiree Medical Insurance 182 279 106 0%279 0.6% Capital Projects 31 67 50 0%67 0.1% Total Operating Expenditures 28,014$ 36,190$ 15,787$ 44% 36,190$ 74.8% One-time Capital Costs 5,077 15,603 438 3% 12,164 25.2% Total Expenditures 33,091$ 51,793$ 16,225$ 31% 48,354$ 100.0% Council Agenda 2-3-2026 9.D-8
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VI. General Fund Contingency Budgets

General Contingency
The FY 2025 Adopted Budget included $500 thousand in the General Fund general contingency account that may be used for various one-time items that come up during the year. Of this amount, $71 thousand of this appropriation was allocated for the following purposes as outlined in Table 6, leaving $429 thousand remaining.

Table 6. FY 2026 General Fund Contingency Budget

Council Contingency
The FY 2026 Adopted Budget also includes a $5 thousand City Council contingency appropriation that may be used for various one-time items that come up during the year.

None of this contingency has been allocated in the first quarter of FY 2026.

VII. Next Level Budget
The FY 2026 Adopted Budget included $200 thousand in the General Fund non- department contract services account that may be used for various “next-level” contract services. This amount was transferred to support various Public Works Facilities Division contract services.

Beginning Balance July 1, 2025 500,000$
Appropriations
Happy Time Preschool donation (20,000)$
Pier Avenue Stairs (51,343)
Total Appropriations (71,343)
Ending Balance as of December 31, 2025 428,657$
Council Agenda 2-3-2026 9.D-9
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VIII. Other Funds
Table 7 reflects fund balance, projected revenue, and projected expenditure activity in the City’s other funds. For most funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2027 Adopted Budget beginning fund balances.

Table 7. Other Funds

A B C D = B - C E = A + D F G = E - F
Fund
Type Fund Fund Title
Beginning
Fund Balance
Projected
Actual
Revenue
Projected Actual
Expenditure Net Rev - Exp
Projected
Ending Fund
Balance Carryforward
Unrestricted
Fund Balance
General Operating Funds
1001 General Fund 26,248,733 35,146,093 48,353,617 (13,207,524) 13,041,209 3,439,217 9,364,485 1002 Transaction Sales Tax Fun 6,213,697 4,063,717 2,120,260 1,943,457 8,157,154 4,571,526 3,585,628 Special Revenue Funds
2001 Gas Tax Fund 415,924 449,834 142,358 307,476 723,400 150,000 573,400 2002 Local Transportation 551,287 95,369 5,910 89,459 640,745 - 640,745 2003 PEG Fund 144,882 39,162 9,123 30,039 174,922 26,790 148,131 2004 Grants-NonCapital 159,648 152,122 290,943 (138,821) 20,827 - 20,827 2005 Housing In-Lieu Fee 624,286 7,221 88,179 (80,958) 543,328 - 543,328 2006 LBID Operations 594,006 1,376,150 1,628,181 (252,031) 341,975 - 341,975 2006 LBID Improvements 2,962,756 1,376,150 241,000 1,135,150 4,097,906 - 4,097,906 2007 Chapman Estate 5,781 37,825 34,801 3,024 8,805 - 8,805 Capital Project Funds
3001 Capital Projects 26,384,359 37,055,809 37,055,809 - 26,384,359 26,384,359 - 3002 Public Facilities Fund 957 - - - 957 - 957 3003 Park Development Fund 319,803 4,712 33,554 (28,842) 290,962 82,193 208,769 3101 Circulation Fees 621,728 9,402 6,995 2,408 624,135 - 624,135 3102 Impact Fees 314,716 7,880 468 7,412 322,128 473 321,655 3103 Developer Impact Fee 65,179 2,762 - 2,762 67,940 - 67,940 3201 Underground Utility Fnd 18,003 273 - 273 18,276 - 18,276 Debt Service Funds
4001 PFA Debt Service - - - - - - -
4002 PF Agency Debt 900 3,089,818 3,089,818 - 900 - 900 4101 Reass 92-1 Fwy Fthlls 833 - - - 833 - 833 4102 Spyglass 92-4 13,867 - - - 13,867 - 13,867 Enterprise Funds
6101 Water Enterprise 12,380,908 7,367,537 7,400,162 (32,625) 12,348,283 12,348,283 - 6102 Water Tax (Lopez/State) 668,445 2,825,143 2,689,202 135,941 804,386 804,386 - 6103 Water Construction Fund 1,824,652 82,302 82,302 - 1,824,652 1,824,652 - 6104 Water Expansion Fund 692,250 25,086 - 25,086 717,336 717,336 - 6105 Water Central Coast Blue 3,314 7,814 6,600 1,214 4,528 4,528 - Water Enterprise Funds 15,569,570 10,307,882 10,178,265 129,616 15,699,186 15,699,186 - 6201 Wastewater Treatment 6,228,768 6,085,266 9,671,322 (3,586,056) 2,642,712 2,642,712 - 6202 Wastewater Capital Proj 2,070,776 3,824,679 4,243,373 (418,694) 1,652,082 1,652,082 - 6203 Wastewater Expansion 1,736,936 61,970 - 61,970 1,798,906 1,798,906 - 6204 Wastewater Central Coas 6,730 16,059 13,400 2,659 9,389 9,389 - Wastewater Enter rise Fu 10 043 210 9 987 974 13 928 095 3 940 121 6 103 089 6 103 08 - 6401 Pier Enterprise - 114,465 114,465 - - - - 6501 Parking Enterprise 2,349,888 3,642,114 2,295,434 1,346,680 3,696,567 3,696,567 - Internal Service Funds
7101 Technology Service Fund 756,938 2,716,578 2,716,578 - 756,938 - 756,938 7201 Motor Vehicle Fund 4,617,476 2,441,142 2,394,965 46,177 4,663,653 - 4,663,653 Council Agenda 2-3-2026 9.D-10
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Highlights of Other Funds
Transaction Sales Tax Fund (1002)
The Transaction Sales Tax Fund includes a 1.00% transaction sales and use tax that became effective April 1, 2025. This is the third local measure for a transaction sales and use tax, approved by the voters as part of Measure F-24 at the November 2024 election.

Measure F-24 includes a 12-year sunset clause and will expire on March 31, 2037. Prior to this local measure, the first local measure for a 0.50% transaction sales and use tax was effective October 1, 2008, that included a six-and-one-half-year sunset clause and expired on March 31, 2015. On November 4, 2014, the voters approved another Measure, Measure I, the 0.50% transaction sales and use tax to be effective April 1, 2015 and was set to sunset on March 31, 2026. The tax proceeds are used exclusively for infrastructure projects.

This fund started the year with a $6.21 million beginning fund balance (after including carryforward fund balances). Projected actual revenues are $4.06 million. Projected actual expenditures are $2.12 million. After carrying forward $4.57 million to FY 2027, there is a $3.59 million projected ending fund balance in this fund. Table 8 lists the budgeted projects and projected actuals in this fund for FY 2026.

Table 8: Transaction Sales Tax Fund FY 2026 Budgeted Projects and Projected Actuals
Gas Tax Fund (2001)
The Gas Tax Fund is a Special Revenue Fund whose revenues include State gas tax funds based on the State’s apportionment formula. These funds are used for City street light costs, City traffic signal maintenance costs, and street repairs and/or capital Projects FY 2026 Budget
FY 2026 Projected
Actuals
FY 2025 Paving Project $ 2,277,326 $ 50,000 Ventana Sports Courts 1,000,000 500,000
Routine Street Maintenance 1,000,000 1,000,000 Signalize Bello/Price Canyn Rd 489,000 -
Ocean Blvd Improvements 435,860 -
Dino Caves/Cliff Ave Parking 400,000 -
Price/Ocean View Improvements 250,000 25,000
Cliff/Ocean Utility Undergrnd 200,000 200,000
ADA Transition Plan Update 132,600 13,260
Downtown Sidewalk Repair 123,000 123,000
Vista Del Mar Stair Foundation 100,000 -
Eldwayen Park Sidewlk Re-route 120,000 120,000
Boosinger Park Softfall 75,000 -
Trash Cans at Bus Stops 60,000 60,000
Ongoing Trash pick up at 17 Bus stops 29,000 29,000 Total $ 6,691,786 $ 2,120,260
Council Agenda 2-3-2026 9.D-11
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improvements. This fund started the year with a $416 thousand beginning fund balance (after including carryforward fund balances). Projected actual revenues are $450 thousand and projected actual expenditures are $142 thousand for the streets and overhead costs. Based on the projected revenues and expenditures for the current year, after accounting for a $150 thousand carryforward of the Signalize Bello/Price Canyon Road project, there is a $573 thousand projected ending fund balance in this fund.

Local Transportation Fund (2002)
The Local Transportation Fund is a Special Revenue Fund whose funds are used for construction and maintenance of streets, bluff protection, and beach access. Revenues for this fund consist of State Transportation Development Act funds, which remain after funds are allocated for regional transit, local transit, and Ride-on services. Projected actual revenues are $95 thousand and projected actual expenditures are $6 thousand.

Based on the projected revenues and expenditures for the current year, there is a $641 thousand projected ending fund balance for this fund.

Public Education Government Fund (2003)
The Public, Educational, and Governmental (PEG) Access Fee Fund includes revenues from a PEG Access Fee collected from cable television providers (i.e. Charter Communications) with franchise operations within city limits. Expenditures include capital costs related to governmental cable broadcasting and equipment. Based on projected revenues of $39 thousand and projected expenditures of $9 thousand, the PEG Fund is expected to end the year with a $148 thousand fund balance.

Housing In-Lieu Fund (2005)
The Housing In-Lieu Fund is a Special Revenue Fund with revenues from a development impact fee paid to the City as an alternative to the production of affordable housing (housing in-lieu fee). These funds are used for the acquisition, construction, or rehabilitation of affordable housing. The fund is projected to have $543 thousand of funds available by the end of the year for this purpose.

Lodging Business Improvement District Fund (2006) Operations The Pismo Beach Lodging Business Improvement District (LBID) Fund for operations reflects a 1% assessment on transient rents at transient lodging providers as revenues and budgeted expenditures to promote Pismo Beach lodging businesses. The LBID Fund started the year with a $594 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.38 million. Operating expenditures are projected at $1.63 million. The fund is expected to end the year with a $341 thousand unrestricted fund balance.

LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment for physical improvements, in particular the Pier Plaza project. The LBID Fund started the year with a $2.96 million beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.38 million. Expenditures include $241 thousand for various projects, including sponsorships of events, Holiday decorations, Butterfly Grove Trail Signage, Council Agenda 2-3-2026 9.D-12
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Sports Courts Lighting, Beach Cleaner, and other projects. The fund is expected to end the year with a $4.10 million unrestricted fund balance. This amount, plus FY 2026 projected assessment revenues are anticipated to support future visitor-serving physical improvements. Table 9 lists the various visitor-serving projects supported by this fund.

Table 9: LBID2 Fund FY 2026 Budgeted Projects

There are several delays associated with the various projects identified for LBID Fund for improvements. This includes the Addie Street Restroom improvements project that is on hold pending various approvals required by the State. The Butterfly Grove crosswalk and Butterfly Grove Trail signage is on hold pending CalTrans relinquishment of Highway 1, which could be one or 2 more years. The beach cleaning equipment is on hold pending further approval by the State. Staff is working to have the Butterfly Grove signage placed in areas where Highway 1 is not impacted, which also includes working with State Parks.

Park Development Fund (3003)
The Park Development Fund is a Capital Project Fund with Quimby Act (park development in-lieu) fees and Impact Fees as funding sources to support construction costs of new parks and park lands, and the enhancement of existing parks to serve new development. The fund started the year with $320 thousand and is projected to receive $8 in impact fee and permit revenues. Projected actual expenditures total $34 thousand.

After accounting for carryforward budgets to next fiscal year, the fund is expected to end the year with a $209 thousand ending fund balance.

Water Enterprise Fund (6101)
The Water Enterprise Fund is an Enterprise Fund consisting of revenues from water billings and expenditures for: contract meter reading; direct water services and supplies; on-going inspection, repair, and maintenance of the City’s wells, tanks, booster stations, hydro-pneumatic system, and water distribution system components; water conservation efforts; and ensuring that a safe, drinkable supply of water is provided to Pismo Beach.

Water revenues are projected to be $7.37 million and expenditures are projected to be $7.40 million.

LBID2 Improvements FY 2026 Budget
Addie Street Restroom Improvements $ 1,196,835 Butterfly Grove Prkng Crosswlk 600,000 Downtown Strategic Plan Update 500,000 Beach Cleaning Equipment 100,000 Sports Courts Lighting 60,000 Butterfly Grove Trail Signage 50,000 Holiday Decorations 41,000
Beautification 50,000
Pismo Beach Information Center 50,000 Stewardship Banner Program 20,000 Total $ 2,667,835
Council Agenda 2-3-2026 9.D-13
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The projected ending fund balance for the Water Enterprise Fund is $12.35 million, which is allocated for future water system capital costs, including the Central Coast Blue project.

Note that the Water Enterprise Fund also includes the Water Tax, Water Construction, Water Expansion, and the Central Coast Blue Regional Recycled Water Authority Water Funds and the ending fund balance across all these funds is $15.67 million.

There is litigation over Lopez Lake/Lopez Dam, which centers on a lawsuit filed in August 2024 by several environmental groups alleging that San Luis Obispo County has operated the dam in violation of the Endangered Species Act—in particular by not releasing sufficient flows to support spawning of endangered coastal steelhead in Arroyo Grande Creek. As a result of this litigation, the County has passed on the majority of these costs to the participants in the Flood Control Zone 3, including Pismo Beach. As a result, there is an unknown amount of litigation costs that will be impacting the City’s Water Enterprise Funds and that amount is currently unknown pending the outcome of the legal fees.

Wastewater Treatment Fund (6201)
The Wastewater Treatment Fund is an Enterprise Fund consisting of revenues from wastewater billings and expenditures for direct services and supplies; operation and maintenance of the City’s wastewater treatment plant and the wastewater collection facilities including pumps and pipelines; and ensuring the City’s treatment and collection system operations meet City, federal, and state laws and requirements. Wastewater revenues are projected to be $6.09 million and expenditures are projected to be $9.67 million. The estimated ending fund balance is $2.64 million which is already allocated for other wastewater capital projects. Note that the Wastewater Treatment Funds also include the Wastewater Capital Fund, the Wastewater Expansion Fund, and the Central Coast Blue Regional Recycled Water Authority Wastewater Fund. The total combined ending fund balance across all these funds is $6.10 million.

Pier Enterprise Fund (6401)
The Pier Enterprise Fund includes revenues from a concession lease on the Pier and expenditures for repair and maintenance of the Pier, Promenade, and nearby facilities.

Projected revenues are $114 thousand, from revenues from the Pier Airstream and a transfer from the General Fund. Projected expenditures include $114 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $0 ending fund balance.

Parking Enterprise Fund (6501)
The Parking Enterprise Fund is an Enterprise Fund consisting of revenues from parking kiosks, parking citations, and parking permits to support a Parking Supervisor and Parking Enforcement Officer, implement the goals of the Pismo Beach Parking Management Plan, to administer existing parking more efficiently, provide more downtown parking, improve enforcement and parking management, and provide funds for future parking structures.

Revenues are projected to reach $3.64 million and operating expenditures are projected to be $1.77 million. As shown in Table 10, in addition to operating expenditures, the budget includes $653 thousand for one-time projects. Of these projects, staff projects that Council Agenda 2-3-2026 9.D-14
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$522 thousand will be spent in FY 2026. The FY 2026 projected ending fund balance is $3.70 million.

Table 10: Parking Enterprise Fund FY 2026 Budgeted Projects and Projected Actuals Motor Vehicle Replacement Fund (7201)
The Motor Vehicle Replacement (MVR) Fund is an Internal Service Fund that funds the City’s motor vehicle operations and maintenance and motor vehicle replacements for various City departments. These costs are funded by accumulated fund balance, transfers from other funds, and motor vehicle rental charges to other funds. The MVR Fund started the year with a $4.62 million beginning fund balance. The FY 2026 projected ending fund balance is $4.66 million, which are accumulated funds necessary to fund future replacements.

Conclusion and Recommendation
Staff recommends that Council receive this report as information only.

FISCAL IMPACT:

There is no fiscal impact from receiving this report as it is information only.

ATTACHMENTS:

None
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:

Projects
FY 2026
Budget
FY 2025 Projected
Actuals
Public Safety Facility 300,000$ 300,000$
320/330 Main St Parking Lot 150,000 150,000
Price/Dolliver Parking Lot Lighting 130,000 -
Addie St Parking & Access Impr 55,817 55,817
Parking Kiosk Machines 11,965 11,965
Radio System Reliability Upgrade 4,000 4,000 Other projects 1,546 552
Total 653,328$ 522,334$
Council Agenda 2-3-2026 9.D-15
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.E
Meetin Date: Februar 3, 2026

TITLE:

Quarterly Investment Report for the Three Months of October through December 2025 – the Second Quarter of Fiscal Year (FY) 2026
RECOMMENDATION:

No action recommended; for information only.

EXECUTIVE SUMMARY:

This report updates City Council on the City’s investment portfolio as of the quarter ending on December 31, 2026. This report complies with regulations set forth in California State Government Code Section 53646 in which the City Treasurer is required to submit to the legislative body (City Council) a quarterly report containing various information on the City’s investments. Pursuant to Government Code Section 6505.5, this information is being provided here to the Pismo Beach Public Financing Authority, the Pismo Beach Public Financing Agency, and the Central Coast Blue Regional Recycled Water Authority, through the members of the City Council who sit on those boards.

The report includes all investments managed by the City, including funds invested in various securities, the City’s pooled funds invested in various financial instruments, and funds held in reserve with fiscal agents.
Table A (Attachment 1) provides a summary of the City’s cash, investments, and earnings based on book value as of December 31, 2025.
Tables B and C (Attachments 2 and 3) provides details on the investment type, issuer, maturity date, book value, market value, and interest rates as of December 31, 2025 for the General Fund Reserve and City Pooled Funds A, respectively.

All of the City’s investments and the City’s allocation of funds in the various financial instruments comply with State Government Code Sections 53610—53686 and with the City’s Investment Policy’s primary objective to safeguard the principal. Additionally, the City of Pismo Beach’s invested funds as described in this report comply with the City’s Investment Policy and meet the City’s pooled expenditure requirements for the next six months.

Description of Cash and Investment Accounts
Negotiable Certificates of Deposit (CDs), US Government Agency Securities (GASs), Corporate Bonds (Corp Bonds), US Treasury Notes (Treasuries), and Mortgage-Backed Securities (MBSs)
General Fund Reserves: The City has three reserves invested in various financial instruments that mature at various periods over the next five years. The total amount invested for these three reserves is $9.46 million, earning 3.12% on average of interest during Fiscal Year (FY) 2026. Specifics of each reserve are provided below:
o General Fund Reserve: The City adopted a Fiscal Policy that maintains a General Fund Reserve of 25% of budgeted annual operating expenditures. This Reserve Council Agenda 2-3-2026 9.E-1
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should be $9.05 million, which is 25% of the FY 2026 budgeted annual operating expenditures. Currently, $8.71 million is invested in various CDs, GASs, Corp Bonds, and Treasuries earning 3.19% on average per year. o City Building Reserve: The City Council created a City Building Reserve of $500 thousand for the maintenance and upkeep of City facilities and buildings. Currently, this Reserve is invested in various CDs and GASs earning on average 2.38% per year during FY 2026.
o Risk Management Reserve: The City Council established a Risk Management Reserve, contributing $50 thousand each year to a maximum of $250 thousand.

Currently, this Reserve is $250 thousand, which is invested in CDs and GASs earning 2.28% on average per year.
City-Pooled Funds A (for deferred capital projects): Based on the City’s 10-year capital plan and the cash flow needs for the next five years, the City has invested $45.98 million in various CDs, GASs, Corp Bonds, MBSs, and Treasuries that mature at various periods over the next five years and have a 3.30% average interest rate during FY 2026.

Other Financial Instruments
City-Pooled Funds B (for current year expenditures): The City follows the practice of pooling cash for all funds in financial instruments. Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average quarterly cash balance. As of December 31, 2025, the City-Pooled Funds B are allocated or invested as described below.
$15.40 million in PFM Asset Management California Asset Management Program (CAMP) Pool is a California Joint Powers Authority (JPA) is a State investment pool earning 3.95% annually and is the City’s main savings account where the majority of cash is held for current year expenditures.
$14.29 million in U.S. Bank Checking & Sweep: This account is the City’s primary checking and sweep account, where the account earned on average 3.41%. $208 thousand in the U.S. Bank Custodian: This is where interest from various investments is deposited and also where matured securities are temporarily deposited earning 4.17% annually.
$420 thousand in Local Agency Investment Fund (LAIF): LAIF is a State investment pool earning 4.20% annually and is the City’s secondary savings account where the majority of cash is held for current year expenditures.

OPEB Trust Account
The Governmental Accounting Standards Board (GASB) requires public-sector entities to account for the promise to provide other post-employment benefits (OPEB) over the working life of the employee rather than on a pay-as-you-go basis. The City has an actuarial study performed every two years to determine how much to set aside each year to partially or completely fund the City’s future obligations for retiree health costs.

The City’s Other Post-Employment Benefits (OPEB) Trust Account is held with the California Employers’ Retiree Benefit Trust (CERBT) Fund. This trust was established to receive employer contributions that prefund retiree health and other post-employment Council Agenda 2-3-2026 9.E-2
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benefit (OPEB) costs for retirees and their beneficiaries. The CERBT Fund helps the City finance future obligations primarily through investment earnings generated by CalPERS, which are projected to average approximately 6.75% annually, though actual returns fluctuate quarterly.

Until FY 2024, the City’s OPEB Trust Account carried an unfunded liability, and the City made annual contributions equal to the Actuarially Determined Contribution (ADC) to reduce that liability. By the end of FY 2024, the Trust became overfunded, allowing the City to be reimbursed for its FY 2025 retiree health costs, with an additional reimbursement anticipated for FY 2026. Consequently, no new contributions will be made to the Trust in FY 2026. Maintaining an OPEB Trust allows the City to treat these contributions as an asset to offset future retiree health costs, rather than carrying them as a long-term liability on the City’s balance sheet.

Portfolio Allocation
Per California Government Code 53600 et seq., and the City's Investment Policy, the City may invest up to a maximum percentage of the entire portfolio of funds in authorized financial instruments. Table 1 and Chart 1 show a summary of the authorized financial instruments, the maximum percentage limits, the book value as of December 31, 2025 of the City’s funds, and the percentage of the total City’s pooled funds that are invested in each financial instrument.

Table 1: Investment Portfolio as of December 31, 2025
Financial Instrument
Maximum
%
Book Value as
of 12/31/25
% of
Portfolio
PFM Asset Mgmt CAMP 100% 15,397,703$ 18%
Checking Account 100% 14,499,134 17%
Corporate Bond 30% 14,229,871 17%
Treasury Notes 100% 11,280,729 13%
Negotiable Certificates of Deposit 30% 11,026,000 13% US Government Agency Obligations 50% 10,000,000 12% Mortgage Backed Securities 20% 8,903,346 10%
Local Agency Investment Fund 100% 419,862 0% 85,756,644$ 100%
Bond funds: Wilmington Trust 15,426,490$
OPEB Trust Account 6,254,602
Total Book Value 107,437,736$
Council Agenda 2-3-2026 9.E-3
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Portfolio Liquidity
The portion of the City’s portfolio that is managed by the City Treasurer (all accounts except the Bond Funds and OPEB Trust Account) is sufficiently liquid to meet the City’s expenditure requirements for the next 6 months. The majority of funds are invested in LAIF, which has a liquidity of one day. Table 2 and Chart 2 illustrate the liquidity of the City’s managed portfolio.

Table 2: Liquidity of the City’s Managed Portfolio
PFM Asset
Mgmt CAMP,
18%
Checking
Account, 17%
Corporate
Bond, 17%
Treasury
Notes, 13%
Negotiable
Certificates of
Deposit, 13%
US Government
Agency
Obligations, 12%
Mortgage Backed
Securities, 10%
Local Agency
Investment
Fund, 0%
Chart 1: Investment Portfolio as of December 31, 2025
Liquidity Amount
0 to 30 days 30,316,699$
FY 2026 6,698,525
FY 2027 9,358,988
FY 2028 12,765,969
FY 2029 13,040,378
FY 2030 7,126,985
FY 2031 6,449,101
85,756,644$
Council Agenda 2-3-2026 9.E-4
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Investment Value
Book Value: The book value represents the initial outlay for an investment and is the amount carried on a balance sheet. In the past quarter ending December 31, 2025, the City’s total book value of cash and investments was $107.44 million. This is $6.62 million less than the last quarter’s ending balance, largely due to spending down bond proceeds for the 2024 Public Safety Facility Lease Revenue Bonds. In general, there are a number of factors that impact changes in cash and investment balances from quarter to quarter.

These changes may include receiving periodic payments (e.g., property taxes are received in December and April), large payments on debt service or capital projects, seasonal revenues and expenditures, and other factors affecting cash flow. Table 3 illustrates the book value as of the quarter ending December 31, 2025 compared to the previous quarter.

Table 3: Book Value Comparison
0 10,000 20,000 30,000 40,000
0 to 30 days
FY 2026
FY 2027
FY 2028
FY 2029
FY 2030
FY 2031
Portfolio Amount ($ thousands)
Li
q
u
i
d
i
t
y

P
e
r
i
o
d
Chart 2: Liquidity of the City’s Managed Portfolio
Investment Name Type of Investment
Book Value as
of 12/31/25
Book Value as of
9/30/25 Variance
General Fund Reserve CDs/GASs/Corp
Bonds/Treasuries
9,462,481$ 9,064,232$ 398,249$
City Pooled Funds - A CDs/GASs/ Corp
Bonds/ MBSs/
45,977,465 44,698,158 1,279,307
City Pooled Funds - B 30,316,699$ 29,561,950$ 754,748 Bond funds Blackrock Federal Fund 15,426,490 24,579,298 (9,152,808) OPEB Trust Account Benefit Trust Account 6,254,602 6,149,643 104,960 TOTAL 107,437,736$ 114,053,280$ (6,615,544)$
Council Agenda 2-3-2026 9.E-5
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Market Value: The market value represents the current price at which a security can be traded and is the value of an investment comparing the various aspects of the security to other factors in the market such as interest rates. The market value as of December 31, 2025 for CDs, GASs, Corporate Bonds, MBSs, and Treasuries was $55.79 million, which is $347 thousand greater than the book value, as illustrated in Table 4. The City expects to hold onto the majority of its investments to maturity and would receive the book value of its investment.

Table 4: Book Value to Market Value Comparison
Investment Earnings and Performance
The City’s Investment Policy outlines the objectives of the City’s investments, in priority order, as:
Safety of principal to ensure the preservation of,
Liquidity to enable the City to all operating requirements which might be reasonably anticipated; and
Return on investments commensurate with the City’s investment risk constraints identified in the Investment Policy and the cash flow characteristics of the portfolio All three objectives have been met and interest earnings are described below.

Interest Earnings: In the past quarter ending December 31, 2025, the City’s total interest earnings were a gain of $1.15 million, including a $738 thousand gain in the City’s managed portfolio and a $106 thousand gain in OPEB. The projected annual interest earnings for FY 2026 are $3.86 million, which is a gain of 3.59% for the year for the City’s entire portfolio and a gain of 3.09% for the City’s managed portfolio, as illustrated in Table

5. Note that as the City’s cash and investments change, the interest earnings change correspondingly.

Investment Name Type of Investment
Book Value as of
12/31/25
Market Value as
of 12/31/25 Variance
General Fund Reserve CDs/GASs/Corp
Bonds/Treasuries
9,462,481$ 9,466,138$ 3,656$
City Pooled Funds - A CDs/GASs/ Corp
Bonds/ MBSs/
Treasuries
45,977,465 46,320,899 343,434
Total All Securities 55,439,946$ 55,787,036$ 347,091$ Council Agenda 2-3-2026 9.E-6
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Table 5: Estimated Annual Investment Earnings
Performance:

The projected annual interest earnings rate for FY 2026 is 3.59% for the City’s entire portfolio. The projected annual interest earnings rate for FY 2026 is 3.09% for the City’s managed portfolio (excludes Bond funds and OPEB Trust Account). This is compared to LAIF, which is earned 4.20% as of December 31, 2025, or the 1-year U.S. Treasury Note, which earned 3.47% as of December 31, 2025. The following Table 6 lists the various performance measures regarding the various annual earnings rate for the City’s entire portfolio, the City’s managed portfolio, and the two benchmarks of LAIF and the 1-year U.S. Treasury Note.

Table 6: City Portfolio Investment Earnings Compared to Performance Measures Performance Measure Earnings
Rate
City’s Annual Earnings Rate for entire Portfolio 3.59%
City’s Annual Earnings Rate for Managed Portfolio 3.09% LAIF Average Annual Earnings Rate 4.20%
1-Year U.S. Treasury Note 3.48%
Future Outlook
The U.S. economy remains resilient but the recent government shutdown has obscured some of the data. Inflation is likely higher than published due to data collection gaps and technical adjustments. Unemployment rates trends higher with net new job creation nearing zero while labor supply is decreasing. There is strong consumer and business spending, along with steadier trade dynamics, which support growth.

The Federal Open Market Committee (FOMC) lowered the target recently lowered the target range for the federal funds rate to 3.50% to 3.75%. The FOMC remains committed to its dual mandate of promoting maximum employment and maintaining stable inflation Investment Name Type of Investment
Book Value as
of 12/31/25
Actual
Interest
Earned 2nd
Quarter
YTD Annual
Interest
Earnings
Estimated
Annual
Interest
Earnings
Estimated
Annual
Interest
Earnings Rate
General Fund Reserves CDs/GASs/Corp
Bonds/Treasuries
9,462,481$ 91,958$ 134,719$ 356,139$ 3.76% City Pooled Funds - A CDs/GASs/ Corp
Bonds/ MBSs/
Treasuries
45,977,465 347,491 667,549 1,425,888 3.10%
City Pooled Funds - B Various 30,316,699 299,036 573,635 863,899 2.85% Bond funds Wilmington Trust 15,426,490 307,312 674,896 674,896 4.37% OPEB Trust Account* Benefit Trust
Account
6,254,602 106,053 434,880 540,933 8.65%
TOTAL 107,437,736$ 1,151,849$ 2,485,678$ 3,861,755$ 3.59% Total Managed Portfolio 85,756,644$ 738,484$ 1,375,903$ 2,645,926$ 3.09% Council Agenda 2-3-2026 9.E-7
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at an average of two percent over the long run. The FOMC continues to monitor risks to both objectives and adjust its policy stance accordingly. Future policy actions will be determined by evolving economic conditions and the implications of new data for overall economic stability.

Market interest rates remain higher than the average yield on the City’s investment portfolio, and rates continue to decline. The City Treasurer continues to invest across the 1 to 5-year securities and diversify the City’s portfolio across various sectors. This approach is designed to lock in currently favorable rates, supporting continued strength in interest earnings.

FISCAL IMPACT:

No fiscal impact from the report itself—information only.

ATTACHMENTS:

1. Table A: Summary Table for ALL Funds, including Book Values and Earnings Data for Investments in Other Financial Instruments

2. Table B: For the General Fund Reserve—Basic Data on Investments in Securities

3. Table C: For City Pooled Funds A—Basic Data on Investments in Securities Submitted by: Nadia Feeser, Administrative Services Director/City Treasurer City Manager Approval:

Council Agenda 2-3-2026 9.E-8
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Investment Name Name of Institution Type of Investment Current
Earnings
Rate
Book Value
as of 12/31/25
Actual Interest
Earned 2nd
Quarter Ending
12/31/25
Year-to-Date
Interest
Earned
Ending
12/31/25
* Data
Source
Estimated
Annual Interest
Earnings **
General Fund Reserves US Bank CDs/GASs/Corp
Bonds/Treasuries

3.12% avg 9,462,481 91,958$ 134,719$ 1 356,139$ City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ MBSs/
Treasuries

3.30% avg 45,977,465 347,491 667,549 1 1,425,888 Total All Securities 55,439,946$ 439,449$ 802,268$ 1,782,027$ City Pooled Funds - B US Bank Custody 4.17%208,400$ 5,100$ 10,348$ 1 15,448 City Pooled Funds - B Local Agency Invest.

Fund (LAIF)
State Investment Pool 4.20%419,862 4,439 8,976 2 14,362 City Pooled Funds - B PFM Asset Mgmt
CAMP
JPA Investment Pool 3.95% 15,397,703 158,076 325,561 3 468,090 City Pooled Funds - B US Bank Checking & Sweep 3.41% 14,290,734 131,420 228,749 4 365,999 City Pooled Funds - B 30,316,699$ 299,036$ 573,635$ 863,899$ City Pooled Funds total A + B 76,294,163$ 646,527$ 1,241,184$ 2,645,926$ Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2017 Pier Project 1,206$ 1,209$ 1,332$ 5 1,332 Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2017B CREBs 1,001 1,001 1,002 5 1,002 Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2024 Public Safety
Facility
15,424,283 305,102 672,561 5 672,561
Calpers Benefit Trust
OPEB Trust Account CalPERS Benefit Trust
Account
Various managed by
CalPERS
6,254,602$ 106,053$ 434,880$ 6 540,933 TOTAL, Cash and Investments at December 31, 2025:107,437,736$ 1,151,849$ 2,485,678$ 3,861,755$ TOTAL for City Managed Portfolio, Cash and Investments:85,756,644$ 738,484$ 1,375,903$ 2,645,926$ Notes:
* Data Sources for Book Values and Actual Interest Earned:
1 = Monthly investment statement from US Bank
2 = Monthly statement from Local Agency Investment Fund 3 = Monthly statement from PFM Asset Management LLC
4 = Monthly reconciled bank statement from US Bank
5 = Monthly statement from Wilmington Trust
6 = Monthly statement from CalPERS Benefit Trust Account ** Estimated Annual Interest Earnings for the current Fiscal Year (FY) 2026:

1. Estimated Earnings on Investments are based on scheduled Interest Payments during FY 2026

2. Estimated Earnings on Other Financial Instruments are based on anticipated average account balances (Book Values) and interest rates during FY 2026.

City of Pismo Beach
Table A: Summary Table for All Funds,
includin Book Values & Earnin s Data for Investments in Other Financial Instruments Council Agenda 2-3-2026 9.E-9
Attachment 1
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City of Pismo Beach
December 31, 2025 QUARTERLY INVESTMENT REPORT
Table B: For the General Fund Reserves - Basic Data on Investments in Securities:

Government Agency Securities, Bank Certificates of Deposit, Corporate Bonds, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value Gain/ Loss Days to Stated Maturity
02589ACE0 American Express 2.90% 5/3/2022 4/27/2027 CD 99.06 147,000 145,628 (1,372) 301 025816ED7 American Express Co 4.73% 4/25/2025 4/25/2029 Corporate Bond A- 101.534 170,000 172,608 2,608 1,030 052392BT3 Austin Telco Federal
Credit Union

3.80% 9/21/2022 9/21/2027 CD 100.212 245,000 245,519 519 448 06406RBA4 Bank New York
Mellon (32.69%)

2.05% 1/26/2022 1/26/2027 Corporate Bond A 98.148 245,000 240,634 (4,366) 210 06051GMT3 Bank of America Corp 4.62% 5/9/2025 5/9/2029 Corporate Bond A- 101.327 400,000 405,308 5,308 1,044 07371BWH0 Beal Bank Plano 4.70% 6/12/2024 6/6/2029 CD 102.863 245,000 252,014 7,014 1,072 07371DT23 Beal Bank USA Las
Vegas Nevada

4.70% 6/12/2024 6/6/2029 CD 102.863 245,000 252,014 7,014 1,072 05600XQL7 BMO Harris Bank 4.45% 5/24/2023 5/24/2028 CD 101.734 139,000 141,399 2,399 694 14042TFP7 Capital One Bank 2.90% 4/27/2022 4/27/2027 CD 99.06 117,000 115,912 (1,088) 301 14913UAY6 Caterpillar Finl Svcs 4.40% 4/24/2025 3/3/2028 Corporate Bond N/A 101.081 215,086 217,324 2,238 612 231021AY2 Cummins Inc 4.25% 5/9/2025 5/9/2028 Corporate Bond A 100.779 24,983 25,195 212 679 24951TAL9 Department of
Commerce FCU

1.25% 1/7/2022 1/7/2027 CD 97.665 50,000 48,837 (1,163) 191 24951TAL9 Department of
Commerce FCU

1.25% 1/7/2022 1/7/2027 CD 97.665 55,000 53,718 (1,282) 191 27004PCV3 Eaglemark Savings
Bank (20%)

3.25% 6/22/2022 6/22/2027 CD 99.429 50,000 48,720 (1,280) 357 291916AB0 Empower Federal
Credit Union (53.06%)

5.10% 9/29/2023 9/29/2028 CD 103.479 130,000 134,520 4,520 822 3130APB87 FHLB 1.10% 10/13/2021 10/13/2026 Agency AA+ 98.085 500,000 490,425 (9,575) 105 3130AQZ55 FHLB 2.50% 3/10/2022 3/10/2027 Agency AA+ 98.765 500,000 493,825 (6,175) 253 3130ALYC2 FHLB (19.2%)1.14% 4/29/2021 4/29/2026 Agency AA+ 99.166 192,000 190,399 (1,601) (62) 3130AMCY6 FHLB (2.5%)1.00% 5/27/2021 5/27/2026 Agency AA+ 98.912 50,000 49,456 (544)(34) 3130AQAU7 FHLB (24.5%)1.45% 12/29/2021 12/29/2026 Agency AA+ 97.951 245,000 239,980 (5,020) 182 3130AMCY6 FHLB (25.8%)1.00% 5/27/2021 5/27/2026 Agency AA+ 98.912 516,000 510,386 (5,614) (34) 3130ARF55 FHLB (49%)2.60% 3/30/2022 3/30/2027 Agency AA+ 98.832 245,000 242,138 (2,862) 273 3130ALYC2 FHLB (5.3%)1.14% 4/29/2021 4/29/2026 Agency AA+ 99.166 53,000 52,558 (442)(62) 3130ARF55 FHLB (51%)2.60% 3/30/2022 3/30/2027 Agency AA+ 98.832 255,000 252,022 (2,978) 273 32024JAM5 First Federal Credit
Union - (78.35%)

4.40% 2/17/2023 2/17/2028 CD 101.398 191,967 194,641 2,674 597 39573LEM6 Greenstate Credit
Union (20.4%)

5.00% 9/26/2023 9/26/2028 CD 103.211 50,000 51,585 1,585 819 437076CW0 Home Depot 4.90% 12/4/2025 4/15/2029 Corporate Bond A 102.884 195,482 195,480 (2) 1,020 40428HR95 Hsbc USA Inc 4.65% 6/3/2025 6/3/2028 Corporate Bond A- 101.506 400,032 406,024 5,992 704 46632FRU1 JP Morgan Chase 0.70% 1/22/2021 1/22/2026 Corporate Bond AA- 99.75 500,000 498,750 (1,250) (159) 50625LBN2 Lafayette Federal
Credit Union

3.25% 6/15/2022 6/15/2027 CD 99.445 245,000 243,640 (1,360) 350 59013KPN0 Merrick Bank 1.10% 11/9/2021 11/9/2026 CD 97.908 245,000 239,875 (5,125) 132 70962LAS1 Pentagon Federal
Credit Union (20.4%)

0.90% 9/29/2021 9/29/2026 CD 98.032 50,000 48,996 (1,004) 91 69353RFZ6 PNC Bank 4.43% 10/8/2025 7/21/2028 Corporate Bond A 100.669 402,428 402,676 248 752 87164X2C9 Synchrony Bank 4.60% 9/15/2023 9/15/2028 CD 102.132 245,000 250,223 5,223 808 88413QDL9 Third Federal Savings 3.50% 6/28/2022 6/28/2027 CD 99.78 245,000 244,461 (539)363 89235MLC3 Toyota Financial
Savings Bank

0.95% 7/15/2021 7/15/2026 CD 98.57 245,000 241,497 (3,504) 15 91282CJN2 US Treasury 4.38% 12/10/2024 11/30/2028 Treasury Note N/A 102.27 958,795 971,565 12,770 884 91282CMU2 US Treasury 4.00% 12/4/2025 3/31/2030 Treasury Note N/A 101.273 304,969 303,819 (1,150) 1,370 931142FN8 Walmart Inc 4.35% 4/28/2025 4/28/2030 Corporate Bond AA 101.578 149,741 152,367 2,627 1,398 Total $ 9,462,481 $ 9,466,138
Council Agenda 2-3-2026 9.E-10
Attachment 2
Packet Page 46

City of Pismo Beach
December 31, 2025 QUARTERLY INVESTMENT REPORT
Table C: For City Pooled Funds A - Basic Data on Investments in Securities:

Government Agency Securities, Bank Certificates of Deposit, Corporate Bonds, Mortgage-Backed Securities, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/ Loss Days to
Stated
Maturity
00440KAB9 Accenture Capital 4.05% 12/11/2024 10/4/2029 Corporate Bond AA- 100.362 393,028 401,448 8,420 1,192 01025RAN9 Alabama Credit Union 4.35% 2/28/2024 2/28/2028 CD 101.309 245,000 248,207 3,207 608 011852AE0 Alaska USA Federal
Credit Union

4.60% 3/8/2023 3/8/2028 CD 101.845 245,000 249,520 4,520 617 01664MAB2 All In Federal Credit 4.40% 12/20/2022 12/20/2027 CD 101.324 245,000 248,244 3,244 538 01882MAB8 Alliant Credit Union 4.95% 12/30/2022 12/30/2027 CD 102.393 245,000 250,863 5,863 548 02079KAV9 Alphabet Inc 3.88% 11/6/2025 11/25/2028 Corporate Bond AA+ 100.488 555,586 557,708 2,122 879 02079KAW7 Alphabet Inc 4.10% 11/17/2025 11/15/2030 Corporate Bond AA+ 100.307 275,998 275,844 (154) 1,599 023135CT1 Amazon 4.10% 11/20/2025 11/20/2030 Corporate Bond AA 100.109 374,599 375,409 810 1,604 02589ACE0 American Express 2.90% 5/3/2022 4/27/2027 CD 99.06 99,000 98,060 (940) 301 04636NAL7 AstraZeneca Finance 4.85% 4/16/2025 2/26/2029 Corporate Bond A+ 102.672 222,574 225,878 3,304 972 05253JB59 Australia New Zealand 4.62% 12/16/2024 12/16/2029 Corporate Bond AA- 102.126 800,392 817,008 16,616 1,265 062119BS0 Bank Five Nine 4.60% 4/14/2023 4/13/2028 CD N/A 101.918 100,000 101,927 1,927 653 062119BS0 Bank Five Nine 4.60% 4/14/2023 4/13/2028 CD N/A 101.918 145,000 147,772 2,772 653 06406RBA4 Bank New York
Mellon (67.31%)

2.05% 1/26/2022 1/26/2027 Corporate Bond A 98.148 504,363 495,476 (8,887) 210 06740KQE0 Barclays Bank 3.00% 5/11/2022 5/11/2027 CD 99.167 245,000 242,959 (2,041) 315 05600XQL7 BMO Harris Bank 4.45% 5/24/2023 5/24/2028 CD 101.734 106,000 107,850 1,850 694 05580AW59 BMW Bank North 4.60% 3/10/2023 3/10/2028 CD 101.828 245,000 249,479 4,479 619 14042TFP7 Capital One Bank 2.90% 4/27/2022 4/27/2027 CD 99.06 128,000 126,785 (1,215) 301 14042RQU8 Capital One National
(20.41%)

2.90% 4/27/2022 4/27/2027 CD 99.06 50,000 49,534 (466) 301 14042RQU8 Capital One National
(79.59%)

2.90% 4/27/2022 4/27/2027 CD 99.06 195,000 193,163 (1,837) 301 14913UBD1 Caterpillar Financial 3.95% 11/14/2025 11/14/2028 Corporate Bond A 100.235 549,709 551,293 1,584 868 166756BB1 Chevron USA Inc Sr 4.48% 3/14/2025 2/26/2028 Corporate Bond AA- 101.555 401,036 406,220 5,184 606 12547CAX6 CIBC Bank USA 4.45% 4/14/2023 4/14/2028 CD 101.584 245,000 248,881 3,881 654 17275RBX9 Cisco Sys Inc 4.75% 3/14/2025 2/24/2030 Corporate Bond AA- 102.8 201,122 205,600 4,478 1,335 17275RBR2 Cisco Sys Inc 4.85% 11/7/2025 2/26/2029 Corporate Bond AA- 102.641 410,164 410,564 400 972 17275RBW1 Cisco Sys Inc 4.55% 3/14/2025 2/24/2028 Corporate Bond AA- 101.625 200,788 203,250 2,462 604 17325FBP2 Citibank 4.91% 5/29/2025 5/29/2030 Corporate Bond A+ 102.871 250,000 257,178 7,178 1,429 17325FBL1 Citibank 4.88% 12/11/2024 11/19/2027 Corporate Bond A+ 100.72 552,195 553,960 1,766 507 19058RAE1 Coastal1 Credit Union 4.15% 1/31/2024 1/31/2028 CD 100.887 245,000 247,173 2,173 580 19075JAB4 Cobalt Federal Credit 3.60% 9/15/2022 9/15/2027 CD 99.893 245,000 244,738 (262) 442 194162AT0 Colgate Palmolive Co 4.20% 5/2/2025 5/1/2030 Corporate Bond A+ 100.682 249,868 251,705 1,838 1,401 20271RAV2 Commonwealth Bk
Australia N Y

4.42% 3/14/2025 3/14/2028 Corporate Bond AA- 101.232 400,012 404,928 4,916 623 22551KAU6 Credit Union of Texas 4.40% 12/9/2022 12/9/2027 CD 101.314 245,000 248,219 3,219 527 23204HPB8 Customers Bank 4.50% 6/14/2023 6/14/2028 CD 101.751 245,000 249,290 4,290 715 24951TAL9 Department of
Commerce FCU

1.25% 1/7/2022 1/7/2027 CD 97.665 140,000 136,724 (3,276) 191 254673D94 Discover Bank 3.20% 5/19/2022 5/19/2027 CD 99.427 245,000 243,596 (1,404) 323 27004PCV3 Eaglemark Savings
Bank (80%)

3.25% 6/22/2022 6/22/2027 CD 99.429 195,000 194,881 (119) 357 532457CV8 Eli Lilly Co Sr 4.75% 3/14/2025 2/12/2030 Corporate Bond A+ 102.828 201,412 205,656 4,244 1,323 291916AB0 Empower Federal
Credit Union (46.94%)

5.10% 9/29/2023 9/29/2028 CD 103.479 115,000 119,004 4,004 822 30002CAT5 Everett Co-Operative 3.90% 1/23/2023 1/19/2027 CD 100.425 245,000 246,041 1,041 203 Council Agenda 2-3-2026 9.E-11
Attachment 3
Packet Page 47

City of Pismo Beach
December 31, 2025 QUARTERLY INVESTMENT REPORT
Table C: For City Pooled Funds A - Basic Data on Investments in Securities:

Government Agency Securities, Bank Certificates of Deposit, Corporate Bonds, Mortgage-Backed Securities, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/ Loss Days to
Stated
Maturity
3130ALD76 FHLB 0.70% 2/25/2021 2/25/2026 Agency AA+ 99.564 500,000 497,820 (2,180) (125) 3130ARGQ8 FHLB 2.88% 4/14/2022 4/14/2027 Agency AA+ 99.091 500,000 495,455 (4,545) 288 3130ANSB7 FHLB 1.00% 9/17/2021 9/17/2026 Agency AA+ 98.176 1,000,000 981,760 (18,240) 79 3130AQAU7 FHLB (14%)1.45% 12/29/2021 12/29/2026 Agency AA+ 97.951 140,000 137,131 (2,869) 182 3130AMS37 FHLB (20%)1.00% 6/24/2021 6/24/2026 Agency AA+ 98.778 400,000 395,112 (4,888) (6) 3130AMCY6 FHLB (25%)1.00% 5/27/2021 5/27/2026 Agency AA+ 98.912 500,000 494,560 (5,440) (34) 3130AMS37 FHLB (30%)1.00% 6/24/2021 6/24/2026 Agency AA+ 98.778 600,000 592,668 (7,332) (6) 3130AMCY6 FHLB (46.7%)1.00% 5/27/2021 5/27/2026 Agency AA+ 98.912 934,000 923,838 (10,162) (34) 3130AMS37 FHLB (50%)1.00% 6/24/2021 6/24/2026 Agency AA+ 98.778 1,000,000 987,780 (12,220) (6) 3130ARGE5 FHLB (50%)3.00% 4/21/2022 4/21/2027 Agency AA+ 99.313 250,000 248,283 (1,718) 295 3130ARGE5 FHLB (50%)3.00% 4/21/2022 4/21/2027 Agency AA+ 99.313 250,000 248,283 (1,718) 295 3130AQAU7 FHLB (61.5%)1.45% 12/29/2021 12/29/2026 Agency AA+ 97.951 615,000 602,399 (12,601) 182 3130ALYC2 FHLB (75.5%)1.14% 4/29/2021 4/29/2026 Agency AA+ 99.166 755,000 748,703 (6,297) (62) 3137HJSF5 FHLMC Multiclass 5.01% 2/13/2025 10/25/2029 MBS N/A 99.82 548,474 547,486 (987) 1,213 3137HHW31 FHLMC Multiclass 4.72% 1/16/2025 11/26/2029 MBS N/A 100.106 329,942 330,292 350 1,245 3137H74P5 FHLMC Multiclass 2.12% 4/15/2025 3/25/2029 MBS N/A 95.14 554,508 570,840 16,332 999 3137FEBQ2 FHLMC Multiclass 3.44% 4/11/2025 12/25/2027 MBS N/A 99.258 563,792 570,734 6,942 543 3137F4X72 FHLMC Multiclass 3.65% 4/8/2025 2/25/2028 MBS N/A 99.613 558,622 562,813 4,192 605 3137H9QT9 FHLMC Multiclass 4.56% 7/17/2025 1/25/2029 MBS N/A 100.886 173,532 174,640 1,108 940 3137HNND6 FHLMC Multiclass 4.56% 11/6/2025 7/25/2030 MBS N/A 99.96 549,612 549,392 (220) 1,486 3137F9CR0 FHLMC Multiclass 0.96% 12/29/2025 8/25/2030 MBS N/A 93.494 545,284 546,208 923 1,517 3137HMCE8 FHLMC Multiclass 4.27% 7/22/2025 6/25/2030 MBS N/A 100.758 549,420 554,169 4,749 1,456 3137FRZ95 FHLMC Multiclass 1.23% 3/25/2025 2/25/2030 MBS N/A 95.778 485,199 496,067 10,868 1,336 3137HNWV6 FHLMC Multiclass 4.17% 12/5/2025 11/25/2030 MBS N/A 100.253 353,089 350,886 (2,203) 1,609 3137HB3G7 FHLMC Multiclass 4.86% 12/13/2024 10/25/2028 MBS N/A 102.39 556,682 563,145 6,463 848 3137HAQ74 FHLMC Multiclass 4.74% 12/13/2024 8/25/2028 MBS N/A 102.079 554,146 561,435 7,288 787 3137HNN53 FHLMC Multiclass 4.84% 10/16/2025 7/25/2030 MBS N/A 100 549,873 549,873 - 1,486 3137HKXJ8 FHLMC Remic Series 4.41% 4/24/2025 1/25/2030 MBS N/A 101.529 189,993 192,905 2,912 1,305 32024JAM5 First Federal Credit
Union - (21.65%)

4.40% 2/17/2023 2/17/2028 CD 101.398 53,033 53,784 751 597 32110YE84 First National Bank 4.60% 9/21/2023 9/21/2028 CD 102.165 245,000 250,304 5,304 814 33715LED8 First Technology 3.70% 8/19/2022 8/19/2027 CD 99.996 245,000 244,990 (10) 415 3136AY2H5 FNMA Gtd Remic 2.81% 5/23/2025 11/25/2027 MBS N/A 98.288 395,764 400,326 4,562 513 3136B0YM2 FNMA Gtd Remic 3.00% 5/1/2025 1/25/2028 MBS N/A 98.233 484,579 489,910 5,331 574 3136BTGM9 FNMA Gtd Remic 3.00% 12/17/2024 7/25/2027 MBS N/A 98.842 540,400 553,515 13,115 390 3136B2HA3 FNMA Gtd Remic 3.35% 5/23/2025 7/25/2028 MBS N/A 99.194 420,435 424,424 3,989 756 39573LEM6 Greenstate Credit
Union (79.6%)

5.00% 9/26/2023 9/26/2028 CD 103.211 195,000 201,282 6,282 819 427866BL1 Hershey Co 4.75% 3/14/2025 2/24/2030 Corporate Bond A 102.709 200,578 205,418 4,840 1,335 472207AE9 Jeanne D Arc Federal
Credit Union

3.80% 9/30/2022 9/30/2027 CD 100.21 245,000 245,515 515 457 24422EYE3 John Deere Capital
Corporation

4.55% 6/5/2025 6/5/2030 Corporate Bond A 101.673 184,902 188,095 3,193 1,436 478160DJ0 Johnson Johnson 4.70% 3/14/2025 3/1/2030 Corporate Bond AAA 103.045 303,042 309,135 6,093 1,340 482480AG5 Kla Tencor Corp 4.10% 11/14/2025 3/15/2029 Corporate Bond A- 100.227 555,372 556,260 888 989 Council Agenda 2-3-2026 9.E-12
Attachment 3
Packet Page 48

City of Pismo Beach
December 31, 2025 QUARTERLY INVESTMENT REPORT
Table C: For City Pooled Funds A - Basic Data on Investments in Securities:

Government Agency Securities, Bank Certificates of Deposit, Corporate Bonds, Mortgage-Backed Securities, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/ Loss Days to
Stated
Maturity
57636QBF0 Mastercard 4.55% 3/14/2025 3/15/2028 Corporate Bond A+ 101.665 200,576 203,330 2,754 624 58404DSM4 Medallion Bank Utah 4.40% 6/16/2023 6/16/2028 CD 101.545 245,000 248,785 3,785 717 58933YAX3 Merck & Co Inc 3.40% 11/24/2025 3/7/2029 Corporate Bond A+ 98.407 314,429 314,902 474 981 30303MAB8 Meta Platforms 4.20% 11/17/2025 11/15/2030 Corporate Bond AA- 100.211 275,932 275,580 (352) 1,599 60425SKB4 Minnwest Bank 4.25% 5/1/2023 5/3/2027 CD 100.812 245,000 246,989 1,989 307 61690UJ68 Morgan Stanley Bank 3.25% 5/19/2022 5/19/2027 CD N/A 99.485 245,000 243,738 (1,262) 323 61768ET29 Morgan Stanley
Private Bank National

4.35% 3/6/2024 3/6/2029 CD 101.649 245,000 249,040 4,040 980 61776NZU0 Morgan Stanley
Private Bank National

4.20% 11/19/2025 11/17/2028 Corporate Bond A+ 100.312 330,000 331,030 1,030 871 63743HGC0 National Rural Utils 4.30% 12/10/2025 12/10/2030 Corporate Bond N/A 100.229 199,812 200,458 646 1,624 665859AY0 Northern Trust Corp 4.15% 11/19/2025 11/19/2030 Corporate Bond A+ 100.108 549,396 550,594 1,198 1,603 66989HAY4 Novartis Capital 4.10% 11/5/2025 11/5/2030 Corporate Bond AA- 99.893 493,515 494,470 955 1,589 67054NBC6 Numerica Credit Union 4.95% 11/4/2022 11/4/2027 CD 102.245 245,000 250,500 5,500 492 69371RU20 Paccar Financial Corp 4.00% 11/7/2025 11/7/2028 Corporate Bond A+ 100.468 119,933 120,562 629 861 70962LAS1 Pentagon Federal
Credit Union (79.6%)

0.90% 9/29/2021 9/29/2026 CD 98.032 195,000 191,182 (3,818) 91 713448GB8 PepsiCo Inc 4.60% 3/14/2025 2/7/2028 Corporate Bond A+ 102.281 200,070 204,562 4,492 587 79772FAG1 San Francisco
Federal Credit Union

4.35% 2/3/2023 2/3/2028 CD 101.279 245,000 248,134 3,134 583 822905AN5 Shell Fin US Inc 4.13% 11/6/2025 11/6/2030 Corporate Bond A+ 99.987 558,188 559,927 1,739 1,590 856285K91 State Bank India 2.00% 3/23/2022 3/23/2027 CD 98.079 245,000 240,294 (4,706) 266 857449AE2 State Street Bank 4.78% 12/11/2024 11/23/2029 Corporate Bond AA- 102.929 403,640 411,716 8,076 1,242 89236TNJ0 Toyota Mtr CR Corp 4.80% 5/15/2025 5/15/2030 Corporate Bond A+ 102.607 94,892 97,477 2,585 1,415 91282CCZ2 US Treasury 0.88% 12/12/2024 9/30/2026 Treasury Note N/A 98.027 188,625 196,054 7,429 92 91282CHX2 US Treasury 4.38% 12/11/2024 8/31/2028 Treasury Note N/A 102.113 1,613,750 1,633,808 20,058 793 91282CAL5 US Treasury 0.38% 12/11/2024 9/30/2027 Treasury Note N/A 94.785 563,721 592,406 28,686 457 912828Z94 US Treasury 1.50% 4/3/2025 2/15/2030 Treasury Note N/A 91.852 715,656 734,816 19,160 1,326 91282CLG4 US Treasury 3.75% 5/15/2025 8/15/2027 Treasury Note N/A 100.414 198,734 200,828 2,094 411 91282CKG5 US Treasury 4.13% 8/27/2025 3/31/2029 Treasury Note N/A 101.656 1,091,839 1,092,802 963 1,005 91282CHZ7 US Treasury 4.63% 11/6/2025 9/30/2030 Treasury Note N/A 103.914 1,066,080 1,065,119 (962) 1,553 91282CFC0 US Treasury 2.63% 12/12/2024 7/31/2029 Treasury Note N/A 96.711 281,602 290,133 8,531 1,127 9128283F5 US Treasury 2.25% 12/12/2024 11/15/2027 Treasury Note N/A 97.781 949,844 977,810 27,966 503 91282CHJ3 US Treasury 3.75% 8/5/2025 6/30/2030 Treasury Note N/A 100.238 39,573 40,095 522 1,461 91282CMN8 US Treasury 4.25% 10/29/2025 2/15/2028 Treasury Note N/A 101.527 203,305 203,054 (251) 595 91282CEE7 US Treasury 2.38% 12/11/2024 3/31/2029 Treasury Note N/A 96.344 931,016 963,440 32,424 1,005 91282CHW4 US Treasury 4.13% 10/6/2025 8/31/2030 Treasury Note N/A 101.758 657,724 656,339 (1,385) 1,523 91282CAD3 US Treasury 0.38% 12/12/2024 7/31/2027 Treasury Note N/A 95.258 567,432 595,363 27,931 396 912797SE8 US Treasury 0.00% 12/16/2025 1/6/2026 Treasury Note N/A 99.962 698,525 699,734 1,209 (175) 91282CHF1 US Treasury (2%) 3.75% 7/1/2025 5/31/2030 Treasury Note N/A 100.246 21,960 5,012 (16,947) 1,431 91282CHF1 US Treasury (98%) 3.75% 7/1/2025 5/31/2030 Treasury Note N/A 100.246 227,581 245,603 18,021 1,431 917352AH9 Utah Community
Credit Union

4.50% 6/7/2023 6/7/2028 CD 103.067 245,000 252,514 7,514 708 92891CCP5 Vystar Credit Union 4.45% 9/30/2022 9/30/2027 CD 101.308 245,000 248,205 3,205 457 98138MCC2 Workers Federal 5.25% 11/15/2023 11/15/2028 CD 104.011 245,000 254,827 9,827 869 45,977,465 46,320,899
Council Agenda 2-3-2026 9.E-13
Attachment 3
Packet Page 49

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.F
Meetin Date: Februar 3, 2026
FFTITLE:

Notice of Completion for the Pier Avenue Stair Removal Project RECOMMENDATION:

1. Accept the Pier Avenue Stair Removal Project as complete;

2. Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the project.

DISCUSSION:

On October 21, 2025 the City Council awarded a contract to Granite Construction Company (Granite) for the Pier Avenue Stair Removal Project. The project removed the damaged beach access stairway at the south end of Pier Avenue. All stair components were demolished, with existing concrete caissons remaining in place.

Conclusion and Recommendation
Granite has completed the contracted services, and the Pier Avenue Stair Removal Project has been completed in accordance with the plans, specifications and contract documents. Staff recommends that the City Council accept the project as complete and authorize the Notice of Completion (Attachment 1) to be recorded at the County Clerk’s office.

FISCAL IMPACT:

There is no direct fiscal impact associated with this report.

ATTACHMENTS:

1. Notice of Completion
Prepared by:

Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie Gaglione, PE, Director of Public Works City Manager Approval:

Council Agenda 2-3-2026 9.F-1
Packet Page 50

RECORDING REQUESTED BY:

WHEN RECORDED, RETURN TO:

CITY CLERK

CITY OF PISMO BEACH
760 MATTIE ROAD
PISMO BEACH, CA 93449

NO TRANSFERORS
This document is recorded for the benefit of the City of Pismo Beach, a Municipal Corporation, and is exempt from fee per Government Code Section 27383.

NOTICE OF COMPLETION AND ACCEPTANCE

FOR PIER AVENUE STAIR REMOVAL PROJECT
NOTICE IS HEREBY GIVEN by the City of Pismo Beach in the County of San Luis Obispo, State of California, as follows:

1.That on the 3rd of February 2026, the project hereunder described was considered completed and accepted by the City Council of the City of Pismo Beach.

2.That the description of said project is the removal and demolition of stairs, for the City of Pismo Beach.

3.That the name of the political subdivision controlling said project, and the owner of the land upon which the project was constructed, is the City of Pismo Beach, in the County of San Luis Obispo, State of California, whose address is 760 Mattie Road, Pismo Beach, CA 93449.

4.That the name of the owner/contractor on said project is Granite Construction Company, 5335 Debbie Lane, Santa Maria, CA 93111.

5.The name of the Surety on the project is Travelers Casualty and Surety Company of America, 1 Tower Square, Hartford, CT 06183.

I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Date:

Jorge E. Garcia, City Manager
Attest:

Erica Inderlied, City Clerk
Council Agenda 2-3-2026 9.F-2
Attachment 1
Packet Page 51

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.G
Meeting Date: February 3, 2026
TITLE:

Adoption (Second Reading) of an Ordinance Amending the Municipal Code Relating to Business Licensing
RECOMMENDATION:

Adopt an Ordinance amending Chapter 5.04: Business Licenses Generally, of the City of Pismo Beach Municipal Code.

DISCUSSION:

On January 20, 2026, the City Council introduced an ordinance that will amend PBMC Chapter 5.04 Business Licenses to update outdated provisions, improve administrative clarity, align the ordinance with current business practices, and modernize the City’s processes for business licensing, reporting, and compliance. The subject ordinance (Attachment 1) was introduced without modification, and it is now being returned for adoption.

The staff report for the January 20, 2026 agenda item, which includes background and analysis, is provided as Attachment 2.

Conclusion and Recommendation
Staff recommends that the City Council adopt an ordinance (Attachment 1) that will amend PBMC Chapter 5.04 to update outdated provisions, improve administrative clarity, align the ordinance with current business practices, and modernize the City’s processes for business licensing, reporting, and compliance. If the Council acts to adopt the ordinance as recommended, it will become effective by statute 30 days thereafter.

FISCAL IMPACT:

There is no immediate fiscal impact of introducing this ordinance as there are no changes to the business license rates.

ATTACHMENTS:

1. Ordinance as introduced

2. January 20, 2026 staff report (without ordinance attachment) Submitted by: Erica Inderlied, City Clerk
City Manager Approval:

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ORDINANCE NO. O-2026-XXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 5.04: BUSINESS LICENSES GENERALLY, OF

THE CITY OF PISMO BEACH MUNICIPAL CODE
WHEREAS, the City of Pismo Beach requires that every person who conducts business in the City obtain a business license from the City; and WHEREAS, the general requirements and procedures for obtaining and renewing a business license are set forth in Chapter 5.04 of the Municipal Code; and WHEREAS, the City Council desires to improve compliance by business owners with the requirements of Chapter 5.04 of the Municipal Code; and WHEREAS, the City currently uses a contractor to perform many administrative functions associated with business licenses; and
WHEREAS, the City may continue to use a contractor for some of these functions; and WHEREAS, the City Council desires to amend Chapter 5.04 of the Municipal Code to clarify and limit the functions that may be performed by a contractor; to provide more clear enforcement and appeals procedures; and to make miscellaneous improvements to Chapter 5.04.

NOW, THEREFORE, the City Council of the City of Pismo Beach does ordain as follows:

SECTION 1.

The foregoing recitals are adopted as findings of fact in support of this ordinance.

SECTION 2.

Chapter 5.04 of the Pismo Beach Municipal Code is hereby revised to read in its entirety as follows:

Chapter 5.04 BUSINESS LICENSES GENERALLY

5.04.010 Definitions.

As used in this chapter the following words shall have the following respective meanings:
“Administrator” means the city’s administrative services director.

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“Applicant” means a person who has submitted an application or statement pursuant to this chapter.

“Business” means professions, trades and occupations and all and every kind of calling carried on for profit or livelihood.

“City” means the City of Pismo Beach.

“Fixed place of business” means the premises in the city occupied for the particular purpose of conducting the business, and regularly kept open for the purpose with a person in attendance for the purpose of attending to such business.

“Gross receipts” shall be the total amount of the sale price of all sales and the total amount charged or received from the performance of any act, service or employment of whatever nature it may be, for which a charge is made or credit allowed, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares or merchandise. Included in “gross receipts” shall be all receipts, cash, credits, and property of any kind or nature, except as hereinafter excluded, and any amount for which credit is allowed by the seller to the purchaser.

A. No deduction shall be made from gross receipts on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest paid or payable, or losses or other expenses whatsoever.

B. Excluded from “gross receipts” shall be:

1. Cash discounts allowed and taken on sales.

2. The value of property accepted as part of the purchase price and which property will later be sold, any tax which is measured by the sales price or the gross receipts from the sale or which is a stated sum per unit of such property sold whether included in or added to the purchase price so long as it is collected from the consumer or purchaser upon the sale.

3. Any amount refunded either in cash or by credit upon rescission of a sale or a contract of sale.

4. All sales of alcoholic beverages and all other receipts or income which are subject to excise or occupation taxes by the State Department of Alcoholic Beverage Control.

C. “Gross Receipts” are calculated separately for each person who does business in the city and is not otherwise exempt from the tax, even if two such persons do business at the same location. For example, if the operator Attachment 1
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of a commercial rental calculates its gross receipts separately from each of its tenants and such operator calculates its gross receipts based on the charges it makes (to tenants or others) or the revenues it receives (from tenants or others).

“Jobbing business” means every business conducted solely for the purpose of selling goods, wares, or merchandise in job lots to wholesale merchants for resale at wholesale to the trade by said wholesale merchants.

“Licensee” means a person who has been issued a license pursuant to this chapter.

“Licensing year” means a period that begins on October 1 of a calendar year and ends on September 30 of the following calendar year.

“Location owner” means the owner or manager of each licensed business which allows the operation by the public of any mechanical amusement device.

“Manufacturer” means one engaged in making materials raw or partly finished, into wares suitable for use.

“Mechanical amusement device” means any table, board, machine, device, or apparatus fitted for use by the public, the operation of which is permitted, controlled, allowed, or made possible by the deposit or insertion of any coin, plate, disc, slug, or key into any slot, crevice, or opening, or by the payment of any fee, and which operates as a game, contest, or amusement, or which may be used as such and does not vend any article or merchandise or any coin, check, or token.

“Operator” means any person engaged in the business of renting out or placing mechanical amusement devices in various locations within the city.

“Person” means all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, I, business or common law trusts, societies, and individuals, transacting and carrying on any business in the city.

“Retail business” means every business, not herein otherwise defined, conducted for the purpose of selling, or offering to sell any goods, wares or merchandise.

“Vehicle” means and includes every device in, upon, or by which any person or property is or may be transported or drawn upon a public street or highway, except devices moved by human power or used exclusively upon stationary rails or track.

“Wholesale business” means every business conducted solely for the purpose of selling goods, wares, or merchandise in wholesale lots.

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5.04.020 License—Required.

No person, unless exempt, shall engage in business in the city without having obtained a license from the administrator pursuant to this chapter, and no license shall be issued unless the person applying for the license has paid any amount required by the chapter and complied with all other requirements of this chapter.

Where a person engages in business at a fixed location in the city, the license must be displayed in a conspicuous place at that location.

5.04.030 Branch establishments.

A separate license must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location, and each license shall authorize the licensee to transact and carry on only the business licensed thereby at the location and in the manner designated in such license; provided that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments. Where a business consists of managing commercial property, only one license is required for all such managed properties, provided that the licensee informs the administrator of all locations that are so managed.

5.04.040 License—Debt to city.

The amount of any license imposed by this chapter shall be deemed a debt to the city, and any person carrying on any business mentioned in this chapter without having a license from said city so to do, shall be liable to any action in the name of the city in any court of competent jurisdiction, for the amount of license by this chapter imposed on such business, together with all penalties then due thereon in any such action, and the sum of thirty-five dollars ($35) which, if judgment be recovered, shall be applied as attorney fees for said plaintiff and included and assessed as recoverable costs in said action.

5.04.050 Administrator—Duties.

A. It shall be the duty of the administrator to prepare and issue a license under this chapter for every person who has met the requirements for issuance of a license pursuant to section 5.04.020 and each license shall state the licensing year covered thereby, the name of the person to whom issued, the business licensed and the location or place where such business is to be carried on.

B. No license granted or issued under the provisions of this chapter shall be in any manner transferred or assigned, or authorize any person other than is therein mentioned or named to do business.

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C. The administrator shall make a charge in an amount set by City Council resolution for each duplicate license issued to replace any license issued under the provisions of this chapter which has been lost or destroyed.

5.04.060 Payment.

A. All licenses shall be paid in advance in the legal currency of the United States in the manner established by the administrator.

B. Any person carrying on, either as principal or agent, any business in the city not specifically set forth in this chapter shall pay the amount of license described and provided for the business nearest corresponding to the nature of the business sought to be licensed.

C. The annual payment required by this chapter shall be due and payable to the city on the first day of October of each licensing year except that for the initial licensing year for which a license is required, the payment shall be due and payable on the first day in which the licensee conducts business in the city.

5.04.070 Applications.

A. Any person desiring the issuance of a license must fully complete the application form provided by the administrator for such purpose. The administrator may require that the application form be completed on a website. Such application shall request all information reasonably needed by the administrator for purposes of administering this chapter.

B. Any person applying for a license must certify, under penalty of perjury, that the contents of their application are true and correct.

C. The administrator shall compute the proper amount of the license in reliance on the information included in the application.

D. In no case shall any mistake made by the administrator in stating the amount of the license prevent or prejudice the collection by the city of what shall be actually due from anyone carrying on a business subject to a license under this chapter.

5.04.080 Written statement—First license.

A. When a person makes application for the first license to be issued for a newly established business, in all cases where the amount due to the city is based upon gross receipts, such person shall include on their application an estimate of the amount of gross receipts for the current licensing year.

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used in determining the amount to be paid by the applicant. Such person shall thereupon pay the required license tax in advance, computed in accordance with the information contained in such application.

B. When a person makes application for the first license to be issued for a newly established business, in all cases where the amount due to the city is graduated according to some sliding scale other than gross receipts, such person shall include on their application such information regarding the business characteristic measured by the scale as of the time of filing such application. Such person shall thereupon pay the required license tax in advance, computed in accordance with the information contained in such statement.

C. The administrator may, following the end of the initial licensing year, require that the licensee furnish the administrator with a statement made under penalty of perjury, upon a form furnished by the administrator, stating the actual gross receipts received by the business during that initial licensing year. If such a statement is required by the administrator, then the administrator shall recalculate the amount due for that initial licensing year and the licensee shall pay the revised amount (less a credit for the amount previously paid for the licensing year based on the original application). The administrator shall not issue to any such person another license for the same or any other business until such licensee has made the payment, if any, required by this subsection (C).

D. No amount due under this chapter shall be prorated to reflect that the license will be effective for less than twelve (12) months. However, expect where the amount is calculated based on gross receipts, any person applying for a license on or after April 1 of the initial licensing year shall pay an amount that is one-half (1/2) the annual amount provided in this chapter.

5.04.090 Written statement—Renewal.

In all cases where the amount of license tax to be paid is based upon gross receipts or is graduated according to some other sliding scale, the applicant for a renewal of a license shall submit to the administrator for the administrator’s guidance in ascertaining the amount of the license tax to be paid by the applicant a written statement upon a form to be provided by the administrator, certified under the penalty of perjury setting forth such information concerning the applicant's business during the preceding licensing year as may be required by the administrator to enable the administrator to ascertain the amount of license tax to be paid by said applicant pursuant to the provisions of this chapter, and such statement shall be used as the basis for determining the amount of license tax to be paid by the applicant for the renewal period. Where the amount to be paid is calculated based on gross receipts, the applicant may choose to report their gross receipts during the preceding calendar year rather than their gross receipts for the Attachment 1
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preceding licensing year. Once an applicant has made this election, that applicant must continue to use this calendar-year reporting for all subsequent licensing years.

5.04.100 Statements not conclusive.

A. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable under this chapter.

B. The administrator is authorized to require, either before issuing a license or for up to three (3) years following the issuance of a license, that a licensee make available to the administrator such specific financial records as the administrator reasonably finds are necessary for the administrator to properly determine the amount that is due or to verify statements made by such business on any application or renewal application or in any other communications by the business to the administrator.

C. The information furnished or secured pursuant to this section, or Sections

5.04.080 and 5.04.090, shall be confidential. Any unwarranted disclosure or use of such information by any officer or employee of the city may constitute a misdemeanor and such officer or employee may be subject to the penalty provisions of Chapter 1.20.

D. It is a violation of this code for any person to intentionally make a material misstatement in any statement made to the administrator under penalty of perjury pursuant to this chapter.

5.04.110 Additional permit required for business on city property.

A. The possession of a business license shall not authorize any person to operate any business on or within city sidewalks, streets, parking lots, piers, beaches, or any other property under the jurisdiction or control of the city unless and until the person also holds a then valid permit, lease, or other written authorization from the city to operate the business on the property.

5.04.120 Failure to file statement or correct statement.

A. If any person fails to file any required application within the time prescribed, or if after demand therefor made by the administrator, that person fails to file a corrected statement, or if the administrator determines that information included on an application or statement was incorrect, the administrator may determine the amount of due from such person by means of such information as the administrator may be able to obtain.

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B. In case such a determination is made, the administrator shall mail or deliver (by electronic or physical means) a notice of their determination to such person at theirs last known address, or, if no mailing address is known to the city, by mailing such notice to the address at which the business requiring a license is conducted.

5.04.130 Appeal.

A. Any person aggrieved by (i) a written refusal of the administrator to issue a license (or a renewal of a license) to that person or (ii) any written revocation of a license may appeal such written refusal or revocation. Such appeal must be made, and hearing proceedings shall be conducted to the greatest extent possible, in accordance with the provisions of Chapter 1.24 of this Code. Appeal pursuant to this subsection (A) shall not be available where the only reason for the administrator’s refusal to issue the license is that person requesting issuance of the license has failed to pay an amount calculated by the administrator.

B. Any person who believes that the administrator has incorrectly calculated the amount due to the city may appeal the administrator’s determination.

Such appeal must be made, and hearing proceedings shall be conducted to the greatest extent possible, in accordance with the provisions of Chapter

1.24 of this Code. Appeals pursuant to this subsection (B) shall (i) request a re-determination of the amount due; (ii) state the reason why the amount due is believed to be incorrect and (iii) set forth a calculation of the amount believed to be due. The hearing officer, as defined in Chapter 1.24, may issue a re-determination based on the information provided in the request for re-determination and information in possession of the city.

5.04.140 Administration.

A. The administrator may delegate any of their authority under this chapter to:
(i) any subordinate employee of the administrator; (ii) any contractor engaged by the city for the purpose of administering one or more aspects of this chapter; or (iii) any other employee of the city, with the permission of that employee's department head.

B. Notwithstanding a delegation made in subsection (A) of this section, if any bill or written determination under this division includes a return address or payment address that is not located in the city or indicates that the bill or determination has been made by an entity other than the city, the person receiving the bill may request, in writing, that the administrator review such bill or written determination. Such request must be filed with the administrator within thirty (30) days of the mailing or delivering (by electronic or physical means) such determination or the first such bill showing the amount due to the city. If the administrator has not responded to a request Attachment 1
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for administrator review within thirty (30) days of that request being filed with the administrator, the administrator will be deemed, as of the thirty-first (31st) day following the filing of the request to have determined that the bill or determination of the contractor is correct. Where a request is authorized to be made pursuant to this subsection (B), no appeal pursuant to section

5.04.130 may be made unless authorized by this subsection (B). Any determination made by the administrator in response to a request pursuant to this subsection (B) shall be appealable as set forth in section 5.04.130 based on the date such determination was mailed or delivered (by electronic or physical means) to the taxpayer or, if no determination was made was made, based on the date on which the determination was deemed pursuant to the preceding sentence, to have been made.

C. The administrator is authorized to issue such administrative guidance relating to the provisions of this chapter as they deem necessary. Only guidance that specifically states that it is issued pursuant to this subsection (C) shall be deemed to have been issued pursuant to this subsection (C) and all current guidance issued pursuant to this subsection (C) shall be disseminated on the website of the administrator. Administrative guidance issued pursuant to this subsection (C) represents the City’s interpretation of this chapter, and shall be binding upon any person who has been delegated authority pursuant to subsection (A) of this chapter. The administrator may not delegate the authority to issue administrative interpretations.

5.04.150 Interaction with criminal law.

The issuance of a license pursuant to this chapter does not authorize the conduct of a business in any manner that is contrary to the provisions of this code; nor does any fine, penalty, criminal punishment, or other legal consequence of such illegal conduct excuse the payment of any amount due under this chapter or any penalty required by section 5.04.160.

5.04.160 Penalties for failure to pay tax when due.

For failure to pay a license tax when due, the administrator shall add a penalty of five percent (5%) of said license tax on the fifteenth (15th) day of each month thereafter, providing that the amount of such penalty to be added shall in no event exceed fifty percent (50%) of the amount of the license tax due.

5.04.170 Rate based on gross receipts.

Except as provided elsewhere in this chapter, every person who engages in business within the city shall pay an annual business tax based upon gross receipts in accordance with the following schedule:

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Gross Receipt Bracket ($) Fee Amount ($)
0–25,000 20.00
25,001–50,000 30.00
50,001–75,000 40.00
75,001–100,000 50.00
100,001–125,000 60.00
125,001–150,000 65.00
150,001–175,000 70.00
175,001–200,000 75.00
200,001–225,000 80.00
225,001–250,000 85.00
250,001–275,000 90.00
275,001–300,000 95.00
300,001–750,000 additional or portion thereof over
750,001 and up $50,000 additional or portion thereof

5.04.180 Residential rental unit operation.

A. For the purpose of this section, a “rental unit” means a residential unit having facilities for permanent residential needs of the family within such residence unit. The number of units shall be based on the total number of units in all buildings operated by the licensee within the city; provided, however, that a unit actually occupied by the licensee or by the licensee’s agent or employee as manager of the apartment house shall not be counted as a unit for purposes of this provision.

B. Every person carrying on the business of keeping, operating or managing three or more rental units available for rental in the city shall pay an annual license fee as follows:

Units Annual License Fee ($)

5.04.190 Contractors.

A. Every person transacting and carrying on the business of contracting shall pay an annual license fee for the particular type thereof as follows:

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Contractor Type Per Job Fee ($)
General contractor 35.00 10.00
Electric or plumbing
contractor 30.00 10.00

25.00 10.00
grading, street,
paving, house-moving,
trenching, or

40.00 15.00

B. If any person, transacting the businesses enumerated in this section, also carries on a retail, wholesale or jobbing business, or any other business, they shall obtain a license and pay the amount specified for such other business, in addition to the amount specified in this section.

C. Any contractor who does not maintain a fixed place of business within the city shall be required to obtain a license and pay the tax specified in this section, with respect to any contract performed by the contractor within the city.

5.04.200 Tax—Flat amount.

Every person carrying on the businesses enumerated in this section shall pay an annual license tax as follows:

Business Annual Fee ($)

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House cleaning 20.00
House moving or wrecking 50.00
Instructor, private 10.00
Janitorial service 20.00
Parking and storage (lots or garages) 10.00
Pawnbroker 100.00
Pest control (no fixed place of
business) 25.00

50.00 20.00

5.04.210 Trucking.

Every person carrying on the business of operating any truck, trailer or other vehicle for the transportation of baggage, freight, household goods, merchandise, or materials for hire, which may or may not operate over a defined route within the city, or between any points, one terminus of which is within the city, shall pay for each vehicle an annual license tax of twenty (20) dollars per vehicle.

A. For purposes of this section, a tractor-semitrailer combination shall be classified as one vehicle.

B. Each trailer, not accompanied by a truck-trailer shall pay an annual license fee of three (3) dollars.

C. Every vehicle licensed under this section shall have conspicuously displayed thereon the license furnished by the collector.

D. No fee under this section shall be required for the operation of any motor vehicle or equipment along the streets of this city if such operation is merely occasional and incidental to a business conducted elsewhere; provided, however, that no operation shall be deemed merely occasional if trips or hauls are made beginning or ending at points within this city upon an average more than once a week in any quarter, and a business shall be deemed to be conducted within this city if an office or agency is maintained here or if transportation business is solicited here.

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5.04.220 License tax per vehicle.

A. Every person with a fixed place of business in this city and carrying on the business hereinafter enumerated, shall pay an annual license tax per vehicle kept or stored on the business premises as follows:

Business Annual Fee ($)

25.00 B. Businesses in the categories enumerated in subsection A which merely operate a rental service by obtaining vehicles from rental agencies out of the city as orders are received, and who do not store vehicles on the business premises any longer than necessary for the return of the vehicles to the rental agencies, shall pay only the annual fee for one vehicle.

C. Every person not having a fixed place of business in the city who makes retail deliveries of goods, wares, or merchandise house to house over routes to regular customers, shall pay an annual license tax of thirty-five (35) dollars for the first vehicle and fifteen (15) dollars for each additional vehicle.

D. Every person not having a fixed place of business in the city who makes wholesale deliveries of goods, wares, merchandise, or services to businesses or professions located within the city shall pay an annual license tax of thirty-five (35) dollars for the first vehicle and fifteen (15) dollars for each additional vehicle. This subsection shall include, but not be limited to linen and towel supply, uniform, and overall supplies, petroleum products, ready-mix concrete, repair service, and towing service.

E. The number of vehicles used in computing the amount of license tax payable under this chapter shall be determined by the average number of vehicles regularly used in the conduct of such business in the city on any one day.

F. No fee under this section shall be required if the vehicle is operated merely occasionally or incidentally to a business conducted elsewhere.

G. Any licensee to whom a license has been issued, which license is determined by the number of vehicles used by said licensee in the conduct of the licensee’s business in this city, shall prominently display within such vehicle a sticker, device, sign, or license facsimile used by the city for identifying such business.

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5.04.230 Bowling alleys and pool rooms.

Every person carrying on the business of a public bowling alley, pool or billiard room, shall pay an annual license tax per table or alley of six (6) dollars.

5.04.240 Mechanical amusement device—Occupational license fee.

Every operator of mechanical amusement devices shall pay an occupational license fee to the city in the sum of one hundred (100) dollars per year.

5.04.250 Mechanical amusement device—Location license fee.

In addition to the occupational license fee required by Section 5.04.240, each operator shall pay a location license fee in the sum of five (5) dollars per year for each mechanical amusement device rented out or placed by such operator in the city.

5.04.260 Mechanical amusement device—Location owner.

A location owner shall be exempt from the payment of the full occupational license fee required of an operator. Every location owner shall pay a license fee for each mechanical amusement device owned, used, and operated by the owner, in the sum of five (5) dollars per year.

5.04.270 Mechanical amusement device—Posting license.

The license issued for each mechanical amusement device shall be conspicuously posted or attached to such mechanical amusement device. The location owner shall be responsible for the posting, or attachment, at all times of a current business license for each mechanical amusement device open to the public at the owner’s place of business.

5.04.280 Illegal to place or use unlicensed amusement device.

It is unlawful for any person to place or install any unlicensed amusement device on or within any business premises or location.

5.04.290 Illegal to permit the placement or use of unlicensed amusement device.

It shall be unlawful for any location owner, or any other person in control of any business premises, to permit or allow the placement, or the use by the public, with or without a fee or charge, of any amusement device on said premises unless said device is properly licensed for such placement or use.

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5.04.300 Amusement hall—Mechanical amusement devices.

Every business location with three or more mechanical amusement devices licensed under the provisions of Sections 5.04.250 and 5.04.260, or either of them, shall be deemed to be an amusement hall, and shall be required to obtain a separate business license therefor. Such licenses shall specify the number of mechanical amusement devices then authorized at that location. The amusement hall licenses shall not exempt or excuse any business at said location from licensing requirements and payment of license fees for any sales, service or other business activities required to be separately licensed under other provisions of this code.

5.04.310 Adult supervision required on premises.

It is unlawful for any amusement hall to be open to the public unless there is then on the premises in the general area where the mechanical amusement devices are located an approved adult person with the duty to supervise and control the conduct of those members of the public in said area. An approved person shall mean a person previously approved by the chief of police in writing as being of good moral character; the chief shall give special consideration to previous criminal convictions involving drugs or moral turpitude. Such written approval shall be displayed whenever requested by a police officer. The chief of police is authorized to develop forms and procedures necessary to assure adequate background information before approving any such person.

5.04.320 Mechanical amusement device—Nuisance—Impoundment.

A. Any mechanical amusement device operated or maintained to be operated in violation of any law of the state, or in violation of any of the provisions of this chapter shall be deemed to be a public nuisance, and any such mechanical amusement device so operated or maintained to be operated shall be impounded by any peace officer, and all peace officers of the city are charged with the duty of impounding the same.

If any such mechanical amusement device so impounded is one which may be legally operated under the provisions of this chapter and is seized for the failure of the owner or operator to secure the proper license, such mechanical amusement device shall not be released until a license for such mechanical amusement device has been obtained and the fee therefor paid, together with a penalty of twenty (20) dollars.

If any court of competent jurisdiction determines that any mechanical amusement device or the use or operation thereof violates or has violated any law of the state or any ordinance of the city, such mechanical amusement device shall be confiscated, and shall be dealt with as provided by the judgment or order of the court.

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B. In addition to any and all remedies provided by law, including subsection (A), and completely separate therefrom, the chief of police, or the chief’s designated agents, may disconnect, lock, or otherwise disable any amusement device found in any business open to the public without a then current license authorizing its placement and use at the location of said business. The police department shall develop or procure an effective method of locking or disabling any such unauthorized amusement device.

All costs of such locking or disabling shall become a charge or lien against the amusement device, and shall be paid in full prior to the licensing of said device, or prior to removal of said device from said commercial location.

Any owner of the amusement device, and any person owning or operating the business where any such device is located, may appeal to the city council any action by the police department disconnecting, locking, or disabling an allegedly unauthorized amusement device; provided, however, that such device shall not be used pending a decision by the city council.

5.04.330 Slot machine or gambling device unlawful.

This chapter shall not be construed to permit the licensing of any slot machine or gambling device declared illegal by the Penal Code of the state; nor shall any license issued under the terms of this chapter permit the operation, possession, or use of any slot machine or gambling device declared illegal by the Penal Code of the state.

5.04.340 License applications for amusement devices and card games.

All applications for any occupational mechanical amusement device license required by this chapter shall be made in writing and upon such form as may be prescribed by the council. No such license as is referred to in this chapter shall be issued except upon order of the city council. The city council may limit the number of such licenses issued to such number as in its judgment shall be for the best interests of the public peace, safety, and welfare.

5.04.350 Advertising signs or billboards.

Every person, firm, association, or corporation engaged in the erection or maintenance of any advertising signs or billboards within the city shall pay an annual fee of eight (8) dollars for each single-face sign, sixteen (16) dollars for each double-face sign, twenty-four (24) dollars for each triple- or more face sign; provided, that any person erecting or maintaining a sign advertising the person’s own business, which said sign is not located on the premises being advertised, shall pay an annual fee for such sign of five (5) dollars per sign.

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5.04.360 Helicopters.

Every person, firm, association or corporation conducting or maintaining a helicopter business within the city shall pay an annual fee of twenty-five (25) dollars for each helicopter being used in the operation of said business; provided, however, that before any license shall be issued for the operation of such a business, a permit therefor must be first obtained from the council; and provided, further, that any person seeking a license for the operation of such business or the securing of such a permit shall meet the following requirements:

A. The applicant therefor shall file with the administrator a written application setting forth the number of helicopters to be operated therein, the name and address of the applicant and a statement that the applicant is a citizen of the United States.

B. Said applicant shall, upon being granted a license or permit as provided in this section, deposit with the administrator a bond with some sufficient surety, in the amount of one thousand (1,000) dollars, which bond shall be to the city and shall be conditioned that the applicant thereof will observe all of the ordinances of the city and the laws of the state.

C. Before any such license or permit shall be issued, the applicant therefor shall satisfy the council that the applicant is protected by public liability and property damage insurance in amounts respectively of not less than three hundred thousand (300,000) dollars and fifty thousand (50,000) dollars on each helicopter; and, provided further, that no such license shall continue to run, be effective, or remain in force in the event that said insurance is cancelled or has lapsed or for any other reason becomes ineffective.

D. Every person, firm, association, or corporation conducting or maintaining a business of operating or flying a helicopter or similar device for airborne flight for hire, taking off or landing within the city, shall be subject to the provisions contained in this section.

E. Each landing field, airport, or heliport or helistop used by such person, firm, association, or corporation in the conduct of said business constitutes a “branch establishment” as described in Section 5.04.030, and shall require a separate license as set forth in that section.

F. Except in an emergency, no helicopter or similar device shall be landed at any place other than an airport, aircraft landing field, heliport, or helistop as designated in the license, or licenses issued to the applicant hereunder.

G. No dispensing, storage, or transfer apparatus for flammable or explosive liquids shall be located on any airport, aircraft landing field, heliport, or helistop unless they are in conformance with the applicable provisions of Attachment 1
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the Health and Safety Code of the state, any ordinances of the county, any statutes of the state, or any rules and regulations of federal agencies having jurisdiction over airports, aircraft landing fields, heliports, or helistops.

H. Any helicopter or similar device operated or flown within the city limits must be equipped with a muffler or muffling device so as to prevent any loud, unusual, or annoying noise and must be flown or operated on diversified patterns over the least densely populated areas of the city as far as is practicable.

I. Except as otherwise provided in this section, every person, firm, association, or corporation conducting or maintaining a business of operating or flying a helicopter or similar device for airborne flight for hire shall be subject to the provisions, rules, and regulations contained in this chapter.

5.04.370 Art shows.

The following license fees are required when conducting an art show:

A. Twenty (20) dollars for the art show;

B. Ten (10) dollars per exhibitor for the maximum number of exhibitors at any one show during the year.

5.04.380 Circuses and carnivals.

A. Every person carrying on the business of conducting a menagerie or dog or pony show shall pay a license fee of fifty (50) dollars per day; a circus shall pay a license fee of one hundred (100) dollars per day for one ring, one hundred twenty-five (125) dollars per day for two rings, and one hundred fifty (150) dollars per day for three rings or more, and for each and every sideshow or aftershow in connection therewith, the license fee shall be twenty-five (25) dollars per day, and for each concession in connection therewith the license fee shall be ten (10) dollars per day.

B. Every person, carrying on the business of conducting acrobatic or theatrical exhibitions under canvas, shall pay a license fee of fifty (50) dollars per day.

C. Every person conducting or managing a circus procession or parade, and not having a license for conducting, managing or carrying on a circus within the city limits, shall pay a license fee of twenty-five (25) dollars for each such procession or parade.

D. Every person engaged in the business of conducting a fair, street carnival, or exhibition in the city, shall pay a license fee of two hundred fifty (250) Attachment 1
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dollars for each and every day or portion thereof during which such fair, street carnival, or exhibition is conducted.

E. Every person carrying on a ferris wheel, scenic railway, merry-go-round, swing, kiddie car, airplane, or similar amusement device or amusement ride, shall pay a license fee for each such device as follows:

1. If located in any public park or grounds in the city, fifteen (15) dollars per year;

2. If not located in any public park or grounds in the city, five (5) dollars per day or fifteen (15) dollars per year.

5.04.390 Junk collector.

Every person carrying on the business of a junk collector without a fixed place of business shall pay a license tax of five (5) dollars per day or fifty (50) dollars per year.

5.04.400 Advertising by posting.

Every person carrying on the business of advertising by posting, sticking, tacking, affixing, or painting bills or signs to or upon fences, buildings or other structures, except billboards or advertising signboards, shall pay a license tax of five (5) dollars per day. However, said posting shall not be allowed upon any utility poles.

Before a license is issued under this section, the applicant must first obtain a permit from the building inspector of the city.

5.04.410 Transient photographers.

A. Every person carrying on the business of a photographer, who has no fixed place of business in the city, shall pay an annual license fee of sixty (60) dollars.

B. Every person engaged in the business of soliciting or canvassing or taking orders for the taking or making of photographs or views, whether the photographer has or has not a fixed place of business in the city, shall pay a license fee of ten (10) dollars per day for each such canvasser or solicitor; provided, however, that no license shall be required for any person engaged in soliciting such orders when the same are subject to interstate commerce laws or regulations.

C. Before a license is issued under this section, the applicant must obtain a permit from the police department if required to do so.

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5.04.420 Wrestling or boxing.

Every person carrying on the business of conducting wrestling or boxing exhibitions, shall pay a license fee of twenty (20) dollars per exhibition or one hundred dollars per year.

5.04.430 Museums.

Every person carrying on the business of conducting a museum to which a fixed admission fee is charged, shall pay an annual license fee of one hundred (100) dollars per year; museums without a fixed admission fee shall pay an annual license fee of ten (10) dollars per year, except that no license shall be required for any museum conducted by the state or any political subdivision or by any school or church.

5.04.440 Motion picture theaters.

Every person carrying on the business of operating a motion picture theater shall pay an annual license tax as follows:

A. Indoor theater:

1. For a theater having one (1) to seven hundred (700) seats, inclusive:
sixty (60) dollars;

2. For a theater having seven hundred one (701) to one thousand two hundred (1,200) seats, inclusive: one hundred forty (140) dollars;

3. For a theater having one thousand two hundred one (1,201) to one thousand five hundred (1,500) seats, inclusive: one hundred fifty (150) dollars;

4. For a theater having more than one thousand five hundred (1,500) seats, three (300) hundred dollars.

B. Outdoor theater:

1. For a theater having one (1) to five hundred (500) car stalls, inclusive:
ninety (90) dollars;

2. For a theater having five hundred one (501) to seven hundred fifty (750) car stalls, inclusive: one hundred twenty (120) dollars;

3. For a theater having seven hundred fifty-one (751) to one thousand (1,000) car stalls, inclusive: one hundred fifty (150) dollars;

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4. For a theater having over one thousand (1,000) car stalls, one hundred eighty (180) dollars.

5.04.450 Auctioneers.

A. Every person carrying on the business of an auctioneer shall pay a license fee of one hundred (100) dollars for each auction and an additional fifty (50) dollars for each day any such auction is conducted in excess of three (3) days.

B. This section shall not apply to an auctioneer conducting an auction room or store in the city.

5.04.460 Fire, wreck, or bankrupt sale.

A. Every person conducting a fire, wreck, or bankrupt sale shall pay a license fee of one hundred (100) dollars for each such sale, and an additional fifty (50) dollars for each day any such sale is conducted in excess of three (3) days.

B. For the purpose of this chapter, a “fire or wreck sale” means and includes the sale of goods, wares, or merchandise, salvaged from a fire, wreck, or other calamity, or a sale of goods, wares, or merchandise advertised as a fire or wreck sale.

C. For the purpose of this chapter, a “bankrupt sale” shall also include a sale for the benefit of creditors, either directly or indirectly, or a sale advertised as a bankrupt sale or sale for the benefit of creditors.

D. No license shall be required under the provisions of this section for the sale of merchandise salvaged from any fire, wreck, or other calamity occurring within the city.

5.04.470 Sellers of home-grown products.

Every farmer or horticulturist carrying on the business of selling at wholesale or retail produce grown or raised wholly by the farmer or their immediate family shall pay a license fee of one (1) dollar per year. This provision shall not apply to nurseries or other commercial establishments which buy produce for resale as well as selling their own produce.

5.04.480 Charitable organizations.

The provisions of this chapter shall not be deemed or construed to require the payment of a license fee to conduct, manage, or carry on any business, occupation, or activity from any institution or organization which is conducted, Attachment 1
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managed, or carried on wholly for the benefit of charitable purposes or from which profit is not derived, either directly or indirectly, by any individual, firm or corporation; nor shall any license fee be required for the conducting of any entertainment, concert, exhibition or lecture on scientific, historical, literary, religious or moral subjects within the city, whenever the receipts of any such entertainment, concert, exhibition, or lecture are to be appropriated to any church or school or to any religious or benevolent purpose; nor shall any license fee be required for the conducting of any entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization, or association whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objects for which such organization or association was formed and from which profit is not derived, either directly or indirectly, by any individual, firm or corporation; provided, however, that nothing in this section shall be deemed to exempt any such organization or association from complying with the provisions of any ordinance of the city requiring a permit from the council or any commission or officer to conduct, manage, or carry on any profession, trade, calling or occupation.

5.04.490 Disabled persons.

Any person who is unable to obtain a livelihood by manual labor, due to physical disability, may, at the discretion of the administrator obtain a license to hawk or peddle any goods, wares, or merchandise without payment of any license tax or fee, by applying to the administrator and producing a certificate from a local physician showing the applicant to be physically disabled.

5.04.500 Garage sales.

No license shall be required for a person to sell from the person’s own residence, for a period of not to exceed four (4) days in any calendar year, household furniture, furnishings, appliances, and goods belonging to the occupant of the residence and not acquired for the purpose of sale. Such sales shall be referred to as “garage sales.” Any sale taking place for more than four (4) days, whether consecutive or not, during any calendar year, or otherwise not strictly complying with the provisions of this section, shall be deemed to constitute the conduct of a business as defined in Section 5.04.010, and shall be conducted in compliance with all applicable provisions of this chapter and of the city zoning laws.

5.04.510 Closing hours for recreational-type businesses.

A. Except as provided in this section, none of the following business licenses under this chapter shall operate or be open to the public for any purpose at any time between the hours of 2:00 a.m. and 6:00 a.m. of any one day:

1. Shooting gallery;
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2. Theaters, not motion pictures;

3. Gymnasium;

4. Physical culture;

5. Skating rink;

6. Archery range;

7. Dancing;

8. Public hall;

9. Golf driving range;

10. Swimming pool;

11. Bowling alleys and pool rooms;

12. Amusement halls;

13. Circuses and carnivals;

14. Wrestling or boxing;

15. Museums;

16. Motion picture theaters.

B. The city council may grant special temporary permits exempting a business from the limitation set forth in subsection (A) for bona fide marathon, public benefit or similar special events, upon such terms and conditions as the council deems necessary or appropriate for the protection of the public health, safety, and welfare.

SECTION 3.

Nothing in this ordinance is intended to increase the amount of any payment owed by a licensee to the City pursuant to Chapter 5.04 above the amount that would have been due under existing provisions of the Municipal Code. All provisions of this ordinance relating to the calculation of amounts due are intended to be declaratory of existing law.

In the event any provision has been inadvertently drafted in a manner that would require an increased payment under the terms of this ordinance, it is the intent of the City Council that the amount due be the same amount as if calculated under existing law.

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SECTION 4.

Under the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15061 (b) (3), this ordinance is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, such as the adoption of the regulations contained herein, the activity is not subject to CEQA.

SECTION 5.

This ordinance shall not be interpreted in any manner to conflict with controlling provisions of state or federal law, including, without limitation, the Constitution of the State of California. If any section, subsection, or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. If this ordinance, or any section, subsection or clause of this ordinance shall be deemed unconstitutional or invalid as applied to a particular appeal, the validity of this ordinance and its sections, subsections, and clauses in regard to other contracts shall not be affected.

SECTION 6.

This ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.

SECTION 7.

The City Clerk shall certify to the passage and adoption of this Ordinance, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted.

Before the expiration of fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause the same to be posted in three public places within the City of Pismo Beach, to wit: 1) City Hall, 760 Mattie Road, Pismo Beach, 2) U.S. Post Office, Shell Beach Road, Pismo Beach, 3) U.S. Post Office, Crest Drive, Pismo Beach.

INTRODUCED at a regular meeting of the City Council held this 20th day of January, 2026, on motion of Council Member Newton, seconded by Mayor Pro Tem Reiss, and on the following roll call vote, to wit:

AYES: 5 Newton, Reiss, Guthrie, Inman, Waage
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
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Approved: Attest:

________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk

ADOPTED at a regular meeting of the City Council held this th day of , 2026, on motion of Council Member , seconded by Council Member , and on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:

________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk

APPROVED AS TO FORM:

______________________________
Dean J. Pucci, City Attorney

CERTIFICATION OF ORDINANCE POSTING
Government Code §40806

STATE OF CALIFORNIA }
} ss.

COUNTY OF SAN LUIS OBISPO }

I, Erica Inderlied, the City Clerk of the City of Pismo Beach, California, hereby certify in accordance with California Government Code Section 40806 that the foregoing document is a true and correct copy of Ordinance No. O-2026-XXX, titled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 5.04:

BUSINESS LICENSES GENERALLY, OF THE CITY OF PISMO BEACH MUNICIPAL CODE, and that I caused the same to be duly posted in three public places within the City within fifteen (15) days of adoption thereof, pursuant to the requirements of California Government Code Section 36933.

Dated this ____th day of ______________, 2026. Witness my hand and official seal.

____________________________
Erica Inderlied, City Clerk
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.B
Meetin Date: Januar 20, 2026

TITLE:

Introduction (First Reading) of an Ordinance Amending Municipal Code Relating to Business Licensing

RECOMMENDATION:

Introduce an Ordinance amending Chapter 5.04: Business Licenses Generally, of the City of Pismo Beach Municipal Code.

DISCUSSION:

On September 16, 2025, the City Council discussed the history and purpose of business licenses, the City’s current audit and enforcement of business licenses consistent with statewide practices, and the gross receipts-based taxation as a fair and standard method across California cities, reflecting the scale of business activity and aligning the impact of businesses with the services they receive.

As a result of that discussion and concerns raised by various commercial property building owners, staff has reviewed the current Pismo Beach Municipal Code Chapter

5.04 Business Licenses and recommends making several changes to the Code to update outdated provisions, improve administrative clarity, align the ordinance with current business practices, and modernize the City’s processes for business licensing, reporting, and compliance. On December 10, 2025, staff held a meeting for the commercial property owners to share the draft ordinance with the proposed changes and addressed any questions or concerns.

History of Business Licenses
The City adopted its first business license ordinance (Ordinance O-001) on May 20, 1946, establishing a system of license requirements and fees. Over the following decades, amendments were made to include new rates and business types. The most significant update occurred on March 9, 1987, when the City Council adopted Ordinance O-1987- 10, creating the current gross receipts–based payment structure codified in Chapter 5.04 of the Municipal Code. Since that time, only minor updates have been made. The Municipal Code specifies flat rates for certain types of businesses that are specifically listed in the Code as having flat rates. Similarly, the Municipal Code specifies a per-unit rate for residential rentals. However, for businesses that are not specifically subject to a flat or per-unit rate, the rate is based on the gross receipts of the business.

Purposes of Business Licenses
Business licenses provide numerous purposes to benefit the City, business owners, consumers, and the community at large, including:
x Provide regulatory oversight, ensuring compliance with zoning, building, fire, and health/safety codes.
x Supply accurate information for public safety and emergency response, enabling first responders to know what businesses are operating and where.

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January 20, 2026 Introduction Staff Report
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x Offer consumer protection, assuring the public that businesses meet minimum City standards and providing accountability for fraudulent or unsafe practices. x Promote equity among businesses, ensuring that all businesses, including home- based and rental property businesses, contribute fairly to services they use. x Facilitate community engagement, providing the City with up-to-date contact information for outreach regarding policy changes, emergencies, or economic development.

Revenues from business licenses support the City’s General Fund, which provides essential services including police and fire protection, street and sidewalk maintenance, public facilities, and restrooms.

Proposed Changes to Business License Ordinance Chapter 5.04 The following lists the proposed changes to Pismo Beach Municipal Code Section 5.04, which provides a more clear, enforceable, and more modern business license framework for the City. These updates improve administrative efficiency, reduce confusion for applicants, and establish fair and consistent standards for all businesses operating within the City.

Modernized Definitions and Terminology
x Updated and reorganized definitions to improve clarity and consistency (e.g., “Administrator,” “Applicant,” “Licensee,” “Licensing Year,” “Gross Receipts”). x Added definitions to reflect current business types and practices. x Clarified the meaning of “Gross Receipts” and added examples/exclusions to ensure accurate reporting to more thoroughly define what is included and excluded from “gross receipts.”
o Added clarification that gross receipts must be calculated separately for each person conducting business, even when operating from the same location. o Provided a specific example addressing commercial rental operations and tenant revenues.
x Updated section 5.04.180 to clarify Rental unit operations are “Residential” rental unit operations.

Evaluated and updated enforcement and police powers provisions:
x Removed references to police officers making arrests for the violation of any provisions in this chapter and the entire section 5.04.140 Duty of police officers x Expanded Administrative Authority and Compliance Tools, strengthening the Administrator's authority to:
o Request supporting financial records for up to three years after license issuance.
o Delegate administrative functions to staff or contractors. o Issue administrative guidance that is binding on delegated agents. o Added new provisions outlining how businesses may request Administrator review when a third-party contractor issues a determination. x Updated Appeal Procedures, by modernizing and clarifying the appeal framework:

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o Added a clear distinction between appeals related to non-payment vs. administrative decisions.
o Established a specific procedure for appealing disputes over calculated tax amounts to the City Manager.
o Provided timelines, documentation requirements, and the finality of determinations.

Updated, modernized, and eliminate unnecessary language:
x Removed outdated language and corrected inconsistencies. x Updated terminology to reflect current City structure and administrative processes. x Streamlined Application & Renewal Requirements, including revising application requirements to allow online submission, clarifying first-year licensing procedures, including how estimates of gross receipts are provided and validated.

Clean up codification and section numbering and references x Reorganized several sections for better flow and clarity, and eliminated language no longer relevant to modern business operations or City administrative practices. x Updated section numbers and references
Alternatives
The City Council may introduce the ordinance as proposed, modify the ordinance and introduce it as amended, or take no action, in which case the existing ordinance would remain in effect.

Conclusion and Recommendation
Staff recommends that the City Council introduce an ordinance (Attachment 1) implementing changes to various provisions of Pismo Beach Municipal Code Chapter

5.04 Business Licenses Generally. If the Council acts to introduce the Ordinance as recommended, it will be returned for adoption at the next available meeting and will become effective by statute 30 days thereafter.

FISCAL IMPACT:

There is no immediate fiscal impact of introducing this ordinance as there are no changes to the business license rates.

ATTACHMENTS:

1. Ordinance
Prepared by:

Nadia Feeser, Administrative Services Director
Dean Pucci, City Attorney
Submitted by: Jorge E. Garcia, City Manager
City Manager Approval:

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January 20, 2026 Introduction Staff Report
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.A
Meetin Date: Februar 3, 2026

TITLE:

Progress Report on Fiscal Year 2026 & 2027 City Council Goals

RECOMMENDATION:

Receive a progress report on the City Council’s Fiscal Year 2026 & 2027 Goals. No action recommended.

DISCUSSION:

The City of Pismo Beach utilizes a thorough and thoughtful planning process to establish the City’s focus and priorities. This process manifests every two years, when the City Council meets to determine goals for the following two-year period and beyond. The goals established by the City Council then drive the priorities outlined in the City budget and provide direction to staff for work plans for the corresponding period. During the goal- setting process for this budget cycle, six goals were established. Staff has made progress in each of the areas and status reports describing this progress have been given during Capital Improvement Program updates.

Staff has prepared a comprehensive report for the City Council regarding the progress made toward accomplishing the City’s goals during the first year of this two-year budget period. This also provides an opportunity for the public to learn of the City’s progress and share input with the City Council on any of the goals prior to new goals being established/reestablished. The City Council will review its current goals at a special workshop on February 6, 2026.

Major City Goals
The City Council has set six goals for the City for the time period of Fiscal Years 2026 & 2027.

Goal #1: Quality of Life

Goal statement:

Build on community strengths to protect and enhance the city’s quality of life.

Priorities for the next two years:
 Invest in neighborhoods
 Implement community beautification and cleanliness strategies  Complete Addie Street Bathroom expansion
 Complete new Ventana sports courts
 Expand use of existing facilities by considering evening use  Invest in coastal access and bluff repair
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Goal #2: Streets and Infrastructure

Goal statement:

Enhance, beautify, and maintain the City’s streets and infrastructure to ensure safety, accessibility, and long-term sustainability.

Priorities for the next two years:
 Invest in road, sidewalk, and park improvements
 Update the Pavement Management Plan
 Create a pavement maintenance strategy
 Complete a City facility condition assessment and address deferred maintenance

Goal #3: Public Safety

Goal statement:

Prioritize the safety and well-being of the community.

Priorities for the next two years:
 Complete Public Safety Facility
 Reduce wildfire risk and promote fire hardening for the community  Create a lifeguard facility in the downtown
 Focus on retention of Police personnel
 Support technology investments that enhance public safety

Goal #4: Water Resources

Goal statement:

Ensure the sustainability of the City’s existing water supply and storage, identifying new sources, promoting conservation, and engaging the community.

Priorities for the next two years:
 Implement Central Coast Blue
 Pursue outside funding
 Complete construction of Charles Street Reservoir and plan for replacement of one groundwater production well
 Evaluate additional water supplies
 Enhance water conservation measures and rebate programs  Conduct public outreach and education

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Goal #5: Parking and Circulation

Goal statement:

Enhance parking infrastructure, expand inventory, and improve traffic circulation.

Priorities for the next two years:
 Update the Downtown Study
 Continue to work on downtown parking solutions, including acquiring additional parking assets, and adopt strategies outlined in the Parking /Management Plan  Incorporate parking modifications in the General Plan  Complete and implement the Bicycle and Pedestrian Master Plan  Complete the acquisition of Dolliver Street from the state and make circulation improvements in accordance with the General Plan Circulation Element

Goal #6: Development and Housing Access

Goal statement:

Foster sustainable community development while supporting efforts to address housing needs and homelessness.

Priorities for the next two years:
 Complete updates to the Local Coastal Plan, General Plan, and Zoning Code  Identify affordable housing and workforce housing opportunities  Implement measures to streamline the development process  Support and participate in regional efforts in a collaborative manner  Invest in housing and homelessness assistance where feasible

While each of the goals is large and complex, staff is pleased to report that substantial progress has been made in many areas. This report will break down each goal in detail, outlining the major accomplishments as well as other administrative accomplishments.

Review of Major City Goals

Goal #1: Quality of Life
Priority: Invest in neighborhoods
 Completed Drainage Master Plan for Shell Beach and Heights to address longstanding drainage issues.
 Reseeded Memory Park to restore parking open space and repair irrigation system.

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 Installed new signs at all City parks consistent with City standards and added high- visibility, City-branded address signs to each park site.

Priority: Implement community beautification and cleanliness strategies  Implemented a new sidewalk pressure washing schedule to better fit the needs of the downtown.
 Added seventeen trash cans around the City to help residents and visitors properly dispose of trash, as well as five additional trash cans and a four-yard bin at the Main Street beach access ramp.
 Added two part-time Maintenance Workers to assist with pressure washing and general sanitation.
 Installed grant-funded water bottle filling stations to try to reduce the number of plastic bottles that end up in the trash.
 Completed an environmental study to facilitate the operation of beach cleaning equipment, including potential effects on coastal resources and habitat. Working through State Parks and Coastal Commission permitting process.  Purchased and installed additional lighted holiday decorations and successfully deployed previously purchased decorations throughout the community to enhance the seasonal atmosphere city-wide.
 Improvements are being made to relocate the friendship swing at Dinosaur Caves Park.
 Installed electrical infrastructure to provide power for the Dinosaur Caves sign, supporting holiday decorations, enhanced visibility, and future lighting capabilities.  Purchased and installed Pismo Beach stewardship banners on the Pier and Price Street.

Priority: Complete Addie Street Bathroom expansion
 A revised design based on Council direction has been provided by the manufacturer. Staff is now coordinating with California State Parks regarding the layout.

Priority: Complete new Ventana sports courts
 The City Council awarded a contract to The J.F. Will Company, Inc. for the construction of the Ventana Sports Courts. The groundbreaking ceremony is scheduled for March 2026.

Priority: Expand use of existing facilities by considering evening use  Lighting will be installed as part of the Ventana Sports Courts project to facilitate evening use of the new courts.

Priority: Invest in coastal access and bluff repair
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to secure an additional $6 million in grant funding to facilitate the completion of the project.
 The GIS Analyst is a licensed drone pilot and obtained drone footage of the bluffs after storms to help Engineering assess what potential damage.  Completed the removal of the Pier Avenue stairs.
 Completed the resurfacing of the Shell Beach Sports Courts.  Established a Storm Damage reserve account, adding $50,000 annually to support future storm damage.
 Created a Junior Lifeguard scholarship program to provide financial assistance for Pismo Beach residents.

Goal #2: Streets and Infrastructure
Priority: Invest in road, sidewalk, and park improvements  Removed trip hazards in the downtown by saw-cutting lifts and filling cracks in the sidewalks
 Conducted structural inspections of Cypress Street Bridge, pedestrian bridges, and the Pier.
 Replaced a culvert and sidewalk section on Ventana Drive near James Way.  Replaced storm inlet grates at the Naomi Avenue cul-de-sac and at Seacliff Drive and Baker Avenue.
 Updated landscaping at Highway 1 and Cypress Street.

Priority: Update the Pavement Management Plan
 The Pavement Management Plan Update has been completed and design is underway on the construction plans for the Phase 1 project. Design of the Phase 2 project will follow in the coming months.

Priority: Create a pavement maintenance strategy
 The Pavement Management Plan includes a strategy for maintaining City streets.

The budget now includes $1.7M for slurry seal annual maintenance.

Priority: Complete a City facility condition assessment and address deferred maintenance
 The Facility Condition Assessment has been completed. Reports are in for all facilities, and staff is awaiting the final report with combined recommendations.  The Asset Management Program is underway, including the addition of City utility and infrastructure assets. Phones and tablets will be procured for staff to use in the field with the application.
 The design team has submitted its geotechnical report for the Sunsets Palisades Lift Station Rehabilitation and Relocation of Force Main in Searidge project and completed the Phase I archaeological study. The technical memorandum is Council Agenda 2-3-2026 12.A-5
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expected this week and 30% design will proceed following City review and comments.
 Bid specifications are currently being developed for the Toucan Terrace Pipe relining project, and SmartCover has been contracted to install a flow meter to collect flow data in support of the bypass plan.
 Pismo Oaks, Pacific Estates, and well #5 VFD (variable frequency drives) installation RFP rough draft has been completed.
 The City’s disability access consultant has completed the majority of right-of-way survey for the ADA transition plan and will be proceeding with the review of all City buildings and facilities in mid-February. A 60-day public input period has been initiated and links to the public survey have been posted on the City’s website and social media. The consultant is also working on the programmatic evaluation of policies, procedures and practices. Following completion of the citywide survey and the public input period, Phase 1 of the evaluation and self-assessment will conclude and then Phase 2, which includes development of the implementation plan, will begin.
 Existing ADA Plan data is maintained in the DacTrak software, and the license was renewed with the current CJPIA contract for the transition plan update. Once the self-evaluation is complete all the data will be updated in the software to complete the new transition plan.
 Completed retrofit of two clarifiers.
 Completed demolition of the old digester.
 Completed the Five Cities Lift Station Rebuild.
 Replaced automatic transfer switch at the Vista del Mar Lift Station.

Goal #3: Public Safety
Priority: Complete Public Safety Facility
 Completion is estimated for April 2026 for both the Police Station and Fire Station.

Priority: Reduce wildfire risk and promote fire hardening for the community  Created Pismo Beach-specific Wildland Fire Preparedness booklets. Booklets were mailed to the entire community and are available at City Hall.

Priority: Create a lifeguard facility in the downtown
 A revised design based on Council direction has been provided by the manufacturer. Staff is now coordinating with California State Parks regarding the layout.

Priority: Focus on retention of Police personnel
 In 2025, no officers left the department for another agency. Two officers graduated from the academy, and one lateral officer was hired.

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 Completed a staff team-building workshop focused on communication and mentorship. Workshop also focused on preparing future leadership within the department.
 Continued investment in the department’s peer support and officer wellness program, with increased utilization by staff.

Priority: Support technology investments that enhance public safety  Implemented Motorola Command Central Aware, allowing staff to livestream in- car video and body-worn camera feeds.
 Completed the implementation of e-Citation software for patrol operations.  Purchased Taser 10 devices to replace outdated less-lethal equipment.  Completed a CAD-to-CAD agreement with Central Square, allowing dispatch CAD access to allied agencies during emergencies.
 Built and deployed four new Ford F-150 patrol vehicles to replace aging fleet vehicles.
 Completed upgrades to multiple public safety cameras throughout the city.  Purchased a Stokes litter wheel for Fire cliff rescues.  Purchased a truck for the Community Services Technician to support patrol operations, enforcement of City municipal codes, traffic control, transporting large or numerous property items, and assisting with minor infractions and misdemeanor calls for service.

Goal #4: Water Resources
Priority: Implement Central Coast Blue
 Clean Water State Revolving Fund loan is in progress, with an agreement expected by March 30, 2026. Financial review completed has been completed, technical and environmental review is almost complete, and legal review is underway.
 State Water Resources Control Board Groundwater Implementation Grant Award of $8 million has been fully executed.
 Federal Title XVI Reclamation Wastewater and Groundwater Grant is drawing down funds for reimbursement. Continued progress is being made on updating environmental impacts with the Federal Bureau of Reclamation.  The review panel has selected an Owner’s Advisor for the Design Build of Central Coast Blue; award of the agreement is being brought to the Council as part of this meeting agenda.

Priority: Pursue outside funding
 Staff continues to look for and apply for grants for the water system CIP.

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Priority: Complete construction of Charles Street Reservoir and plan for replacement of one groundwater production well
 The cost estimate for a concrete tank came in too high at the 60% plan submittal.

The consultant performed an analysis of the tank size needed now that Central Coast Blue is no longer a three-party project. Project will be redesigned in the form of a smaller tank made of steel.

Priority: Evaluate additional water supplies
 Evaluated Wells 9 and 10 for emergency use, but the treatment required would be cost-prohibitive for the amount of water produced.
 Identified where Grover Beach and Pismo Beach systems are close together; exploring an emergency connection to the Grover Beach system in the event of an emergency.

Priority: Enhance water conservation measures and rebate programs  Continued promotion water conservation programs.
 Four requests for turf conversion were processed; two are complete and two are still in process.

Priority: Conduct public outreach and education
 Presented updates and conducted workshops with City Council and Central Coast Blue Board of Directors meetings.
 Published Clam Chronicle articles on Maintaining a Municipal Water System, and the Lopez Lake Litigation and its impacts on this valuable water source.  The City Manager made daily and sometimes twice daily Facebook video postings informing residents and visitors about the Lopez Lake water line contamination and the City’s response.
 Developed a Public Outreach Plan for Central Coast Blue.  Conducted numerous public meetings with residents of Grover Beach for the Central Coast Blue project site.
 Attended one Grover Beach City Council Meeting.

Goal #5: Parking and Circulation
Priority: Update the Downtown Study
 Prepared a spreadsheet that identifies action items that are contained in the Downtown Strategic Plan, Bike and Pedestrian Master Plan, Parking Management Plan, and Circulation Element. The spreadsheet includes a brief description of each action item followed by the item’s status (complete, not complete, in progress). The spreadsheet will be presented to City Council at an upcoming Council meeting to assist in developing scope/direction for a possible future update to the Downtown Strategic Plan.

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Priority: Continue to work on downtown parking solutions, including acquiring additional parking assets, and adopt strategies outlined in the Parking /Management Plan  Ordered new parking kiosks for Price Street Paid Parking area to improve overall experience and options for businesses and visitors.
 Expanded Resident Parking Program to include parking on Price Street.  Created engagement videos on the paid parking program, and targeted marketing to tourism communities to increase awareness and utilization of the mobile app.

Priority: Incorporate parking modifications in the General Plan  Edits have been incorporated into the draft General Plan Circulation Element to make it consistent with new draft policies in the draft zoning code that reduce parking requirements for some uses in the downtown, create parking maximums, create of a policy that allows uses within existing buildings in the downtown to change without triggering additional parking, and increase the amount of In-Lieu fees that can be paid from 30% of required spaces to 100% (excluding transient lodging and residential uses).

Priority: Complete and implement the Bicycle and Pedestrian Master Plan  The Vision Zero Plan will need to be completed first so that the results can be incorporated into the Bicycle and Pedestrian Master Plan. Staff will start the RFQ/P so that consultant selection will begin July 2026.

Priority: Complete the acquisition of Dolliver Street from the state and make circulation improvements in accordance with the General Plan Circulation Element  This process has had numerous steps and each has to go back through Caltrans’ Legal or Headquarters. Some draft documents were too dated and had to be refreshed. The majority of the work has been completed and staff anticipates that the relinquishment may be considered at the June California Transportation Committee meeting.
 Traffic signal handovers will occur during one late night-to-early morning effort. It is recommended that the City purchase new controllers and program them rather than attempt to reprogram the old controllers with a thumb drive. The process of swapping out controllers is more reliable and efficient than trying to reprogram the old ones.
 Dinosaur Caves/Cliff Avenue Parking project is underway; a contract was awarded for design of the project at the January 20, 2026 Council meeting.  Parking kiosks for Price Street will be purchased this fiscal year, moving the existing meters to replace outdated meters on Hinds Avenue and Cypress Street.

Goal #6: Development and Housing Access
Priority: Complete updates to the Local Coastal Plan, General Plan, and Zoning Code  A Public Draft of the updated General Plan/Local Coastal Plan that reflects removal of the Safety Element draft and miscellaneous legislative updates has been released and is currently under review by the Planning Commission, which met on December 9, 2025 and January 13, 2026 to review and provide comments on the Council Agenda 2-3-2026 12.A-9
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proposed changes. Over the last year, staff has met with Coastal Commission staff on the document edits and Coastal staff has indicated support for the planned changes. The Draft Environmental Impact Report (EIR) has also been recirculated to the State Clearinghouse for a 60-day public review and comment period, which closes February 11, 2026. The comment period was extended from the required 45-day period to 60 days to allow extra time for public comment due to the winter holidays. Staff anticipates Planning Commission review of the General Plan and EIR to be complete in March 2026, at which time the General Plan/LCP and EIR will be brought forward to City Council for adoption.
 The Zoning Code update which will update and combine the City’s 1983 and 1998 Zoning Codes is in progress and tentatively scheduled for review by Planning Commission in March 2026.
 The City received two grant awards from the Coastal Commission and the Ocean Protection Council totaling $1,650,000, which will fund updates to the City’s Safety Element, Parks, Recreation, and Access Element, and corresponding Zoning Code Update. This separate General Plan/LCP update will commence approximately spring to summer 2026.

Priority: Identify affordable housing and workforce housing opportunities  Two private affordable housing projects proposed as mixed-use condominium developments under State Density Bonus law are currently in process. The first project is the Gateway project located at Price, Dolliver, and Bay Streets which has received planning approval and is currently in process of submitting for building permit application. The second project, located at 1717 Shell Beach Road, which proposes commercial space with 8 residential condominium units and is pending planning permit approval.
 Two private affordable housing projects proposed as mixed-use condominium developments under State Density Bonus law are currently in process. The first project is the Gateway project located at Price, Dolliver, and Bay Streets which has received planning approval and is currently in process of submitting for building permit application. The second project is located at 1717 Shell Beach Road which proposes commercial with 8 residential condominium units.

Priority: Implement measures to streamline the development process  Developed an online permit portal which allows the public to apply for and submit building or planning permits, request an inspection, or submit a code compliance complaint, and provides a convenient link to the external business license website.

The portal is available at www.pismobeach.org/permitportal and is intended to streamline the process and create a more efficient and transparent permitting process. Other measures to streamline development include updates to the Community Development Department’s websites providing updated planning and building resources and guidelines on topics such as the 2025 Building Code Update, ADU Preapproved Plan program, housing resources, and vacation rental/short-term rental permit requirements. Mapping updates have also been made by the City’s GIS contractor which included completing over 600 parcel and Council Agenda 2-3-2026 12.A-10
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ownership updates to provide accurate information in the City’s permit tracking software.
 Implemented SolarApp+, improving efficiency, reducing review times, and supporting timely permit issuance for solar energy systems while maintaining applicable safety and code compliance standards.

Priority: Support and participate in regional efforts in a collaborative manner  Staff regularly coordinate regional efforts with other agencies. This includes monthly meeting participation with the Housing Action Team (HAT) which includes all cities, the County, and the San Luis Obispo Council of Governments (SLOCOG) to coordinate housing efforts, discuss legislative updates, and share best practices with past discussion topics such as ADUs, SB9/urban lot splits, regional housing needs allocation (RHNA) from the state, density bonus law, transportation, air quality impacts, grant opportunities, and agency updates.  Staff also represents the City as a board member of the San Luis Obispo County Housing Trust Fund Commission which works to increase the supply of affordable housing countywide.
 Staff actively participates in local Central Coast International Code Council (CCICC) meetings, which are held monthly. In addition, the Building Division’s Permit Technician currently serves as the Treasurer on the Board for the upcoming year.

Priority: Invest in housing and homelessness assistance where feasible  The City participates in the Urban County Consortium which receives annual Community Development Block Grant funding to assist with housing and homelessness projects. The funding program provides annual grant funding to Five Cities Homeless Coalition (5CHC) and Community Action Partnership of SLO (CAPSLO) to fund home repairs and rehousing assistance for income eligible individuals. The City has also made donations to community organizations to provide assistance that includes 40 Prado Center, Shower the People of SLO, and SLO County Housing Trust Fund among others.
 Staff represents the City as a board member of the San Luis Obispo Housing Trust Fund Commission which provides funding to multiple affordable housing, and transitional housing projects countywide.

Other Accomplishments
In addition to making substantial progress on the City Council’s goals, staff has made noteworthy progress in other areas including:
 Developed of a Project Initiation Document for Capital Projects in Click-Up.  Developed and approved an On-Call list of engineering firms.  Hired a GIS Analyst, who has created multiple maps that and other resources to assist a variety of departments, including an interactive CIP map, parks with amenities and reservations, water mains and services, sewer lines, valves, lift Council Agenda 2-3-2026 12.A-11
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stations, pump stations, street trees, and more. The Analyst has also created numerous digital checklists and forms for Utilities and Facilities. Through participation on the State Water Project Subcontractor Subcommittee, assisted in the writing of a new policy for transfers of State Water. This will benefit Pismo Beach, as well as the County and other non-subcontractor agencies. Work on the implementation plan is ongoing.
Staff participates in activities related to the Regional Water Management Group and the Water Resources Advisory Committee and the NCMA technical and confidential groups.
Staff participates in the Zone 3 Technical Advisory Committee. The City’s GIS contractor has also made numerous mapping updates to assist Community Development and Public Works including land use and zoning map updates, and developing a GIS map service for the city which upon completion could be used by both staff and the public to allow users to view real-time information and query property and permit information and other metrics. A contractor performed a Street Tree Inventory and all tree information such as location, type, size and health was uploaded into a GIS application along with a photo.
Sewer Management Plan and the Sewer Master Plan Updates are in process. Staff has been working collaboratively on an evaluation of the Public Art Program ordinance in an effort to refine ordinance requirements and applicability. An updated draft would be brought forth to a future Council meeting for consideration of potential Ordinance changes.
Title 15 (Buildings and Construction) of the Pismo Beach Municipal Code has been updated to adopt and incorporate by reference the 2025 California Building Standards Code (CCR Title 24, Parts 1–12) along with local amendments, as part of the City’s regular triennial code update cycle.
The City’s FY 2025 Annual Comprehensive Financial Reports (ACFR) was submitted the report to the Government Finance Officers Association (GFOA) for the Excellence in Financial Reporting Award. The City received this award for the FY 2024 ACFR, making it the 22nd consecutive year the City has received this prestigious award.
Implemented Government Accounting Standards Board pronouncements no. 103 in the FY 2025 ACFR.
Maintained a strong financial position during FY 2025, including surplus funding of the City’s Other Post-Employment Benefits (OPEB) account. The City Council adopted a balanced, two-year budget fully funding reserves for the period July 1, 2025 to June 30, 2027, and the budget document received the GFOA Distinguished Budget Presentation Award, the highest recognition in governmental budgeting.

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Published the FY 2026 and FY 2027 Budget in Brief, a summary document of the City’s budget, City Goals, and key information about the City. The City Council approved the FY 2026 to FY 2035 10-Year Capital Improvement Program, identifying both immediate and long-term capital needs and serving as a biennially updated planning tool as projects advance through planning, budgeting, and construction.
Continued to implement the City’s Technology Master Plan, which outlines the City’s technology needs from FY 2023 through FY 2028.
Deployed various solutions to assist with cyber security attacks to provide a clear forensic trail to determine the cause of an event and alert City staff of an incident.

This solution is watched by human cybersecurity experts to determine what events are genuine threats to help with the appropriate and timely response. Deployed the latest generation of firewall technology with the latest cybersecurity features is essential to the protection of the City’s networks. The new firewalls also increase staff efficiency by reducing the time it takes to audit all the firewall rules from a couple days to 1–2 hours.
Delivered staff training on Microsoft Teams, SharePoint, and Outlook to enhance internal communication and operational efficiency and provided Cybersecurity training to all City staff.

Conclusion and Recommendation
Staff recommends that the City Council receive a presentation on the City Council Goals for FY 2026 & 2027 and provide input if desired.

FISCAL IMPACT:

There is no fiscal impact associated with receiving this report as information only. Any fiscal impacts associated with the implementation of City Goals will be analyzed at the time actionable items are brought to the Council for consideration.

ATTACHMENTS:

None.

Submitted by:

Executive Team
City Manager Approval:

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PISMO BEACH CITY COUNCIL / PISMO BEACH PUBLIC

FINANCING AGENCY BOARD OF DIRECTORS /

CENTRAL COAST BLUE REGIONAL RECYCLED WATER

AUTHORITY BOARD OF DIRECTORS

STAFF REPORT
Agenda Item #12.B
Meetin Date: Februar 3, 2026
TITLE:

Central Coast Blue Owner’s Advisor and Management Support Contracts RECOMMENDATION:

Pismo Beach City Council:

Adopt a Resolution authorizing the City Manager to enter into Professional Services Agreements related to Central Coast Blue with:

1. GHD, Inc. in the amount not to exceed $461,438 for Owner’s Advisor services; and

2. Water Systems Consulting, Inc. in an amount not to exceed $218,515 for Management Support Services; and
Appropriating related budget adjustments in Fiscal Year 2026.

DISCUSSION:

At the October 15, 2025 Joint meeting of the Pismo Beach City Council, Pismo Beach Financing Agency Board of Directors, and Central Coast Blue Regional Recycled Water Authority Board of Directors, staff received direction to proceed with fixed-price design- build as the procurement delivery model for the design and construction of the Central Coast Blue Project and to procure an Owner’s Advisor. At that meeting, staff also received direction to complete the communication plan for the project and begin implementation.

Owner’s Advisor Services
On November 20, 2025, staff issued a formal Request for Qualifications / Proposals to acquire the services of a qualified firm to serve as the Owner’s Advisor for Central Coast Blue. The Owner’s Advisor will lead the development of the design-build RFQ/P and rating criteria, ensuring alignment with project goals and risk management best practices. On December 23, 2025, four proposals were received and evaluated by a review panel.

Interviews were held with three firms on January 14, 2026. GHD, Inc. was determined to be the most qualified and has been selected to perform the work.

Management Support Services
On August 5, 2025 the City Council authorized a Professional Services Agreement with Water Systems Consulting, Inc. (WSC) to move forward with a project delivery plan and the development of a community engagement plan. That work has been completed and WSC has provided a proposal to continue with these project management support services. The scope of work includes internal project management support, funding and financing support, implementation of the community engagement plan, permitting coordination, and as-needed technical support for staff.

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Conclusion and Recommendation
Staff recommends that the Council adopt a resolution (Attachment 1) authorizing the City Manager to enter into Professional Services Agreements with GHD, Inc. in an amount not to exceed $461,438 for Owner’s Advisor Services and with WSC in an amount not to exceed $218,515 for Management Support Services related to Central Coast Blue, and appropriating related budget adjustments in Fiscal Year 2026.

FISCAL IMPACT:

The fiscal impact of adopting the subject resolution is an additional $956,000 for Central Coast Blue, including $315,480 in the Water Enterprise Fund and $640,520 in the Wastewater Enterprise Fund in Fiscal Year (FY) 2026.

The Water and Wastewater Enterprise Funds’ total FY 2026 available budget for professional services is $224,467. The proposed professional services agreements for GHD for Owner’s Advisor services in the amount of $461,438 and WSC for Management Support Services in the amount of $218,515 total $679,953. Comparing the FY 2026 available budget to the proposed agreements, there is a $455,486 budget shortfall across both funds. Table 1 illustrates the FY 2026 available budget, proposed project cost, and budget shortfall.

Table 1: Fiscal Impact of Proposed Agreements
A FY 2026 Available Bud et Amount
Water Enterprise Fund $ 118,462
Wastewater Enterprise Fund 106,005
Total FY 2026 Available Bud et $ 224,467 B Proposed Pro ect Cost
WSC Project delivery and community
en a ement plan $ 218,515
GHD Owner's Adviso 461,438
Total Pro ect Cost $ 679,953
C = A -
B Bud et Surplus / Shortfall $ 455,486
In order to address this shortfall, staff recommends that the Council appropriate $456,000, of which 33%, or $150,480, would be added to the Water Enterprise Fund and 67%, or $305,520, would be added to the Wastewater Enterprise Fund, both in the professional services account for the Central Coast Blue project.

In addition, since the project has an aggressive timeline to ensure compliance with financing and grant agreements, staff recommends that the Council appropriate an additional $500,000, of which 33%, or $165,000, would be added to the Water Enterprise Council Agenda 2-3-2026 12.B-2
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Fund and 67%, or $335,000 would be added to the Wastewater Enterprise Fund, both in the professional services account for the Central Coast Blue project.

The total of both these adjustments ($456,000 for the agreements plus $500,000 for additional project funds) is an additional $956,000, including 33%, or $315,480, in the Water Enterprise Fund and 67%, or $640,520, in the Wastewater Enterprise Fund, both in the professional services account for the Central Coast Blue project. The City’s most recent water and wastewater rate study and resulting rates can support this additional cost. Table 2 illustrates the additional proposed budget adjustments.

Table 2: Proposed Additional Budget Adjustments Proposed Agreements D Bud et Ad ustments for Shortfall
Water Enterprise Fund $ 150,480
Wastewater Enterprise Fund 305,520
Subtotal Bud et Ad ustments $ 45 ,000
E
Additional Budget Adjustments for CCB
Pro ect
Water Enterprise Fund $ 165,000
Wastewater Enterprise Fund 335,000
Subtotal Bud et Ad ustments $ 500,000
F
Budget Adjustments for Shortfall + CCB
Pro ect
Water Enterprise Fund $ 315,480
Wastewater Enterprise Fund 640,520
Subtotal Bud et Ad ustments $ 956,000
ATTACHMENTS:

1. Resolution

2. GHD Vendor Agreement

3. WSC Vendor Agreement
Prepared by:

Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie Gaglione, PE, Director of Public Works City Manager Approval:

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RESOLUTION NO. R-2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,

CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO

PROFESSIONAL SERVICES AGREEMENTS RELATED TO CENTRAL COAST BLUE WITH GHD, INC. IN THE AMOUNT NOT TO EXCEED $461,438 FOR OWNER’S ADVISOR SERVICES AND WATER SYSTEMS CONSULTING, INC. IN AN AMOUNT NOT TO EXCEED $218,515 FOR MANAGEMENT SUPPORT SERVICES, AND APPROPRIATING RELATED BUDGET ADJUSTMENTS IN FISCAL YEAR 2026 WHEREAS, on October 15, 2025 the City Council directed staff to proceed with fixed- price design-build as the procurement delivery model for the design and construction of the Central Coast Blue Project and to procure an Owner’s Advisor, as well as to complete the communication plan for the project and begin implementation; and WHEREAS, on November 20, 2025, staff issued a formal Request for Proposals to acquire the services of a qualified firm to serve as the Owner’s Advisor for Central Coast Blue; and
WHEREAS, four proposals were received and interviews were held with three firms on January 14, 2026; and
WHEREAS, GHD, Inc. (GHD) was determined to be the most qualified and has been selected to perform the work; and
WHEREAS, Water Systems Consulting, Inc. (WSC) has completed development of a project delivery plan and a community engagement plan; and WHEREAS, WSC has provided a proposal to continue with these project management support services including project management support, funding and financing support, implementation of the community engagement plan, permitting coordination, and as- needed technical support.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into a Professional Services Agreement, in substantially the form attached to staff’s report dated February 3, 2026, with GHD, Inc. in an amount not to exceed $461,438 for Owner’s Advisor Services for Central Coast Blue.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into a Professional Services Agreement, in substantially the form attached to staff’s report dated February 3, 2026, with Water Systems Consulting, Inc. in an amount not to exceed $218,515 for Management Support Services related to Central Coast Blue.

Attachment 1
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BE IT FINALLY RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $956,000, including 33%, or $315,480, in the Water Enterprise Fund and 67%, or $640,520, in the Wastewater Enterprise Fund, both in the professional services account for the Central Coast Blue 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 3rd day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

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
Attachment 1
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Vendor Agreement (Rev. 3/2024)

CITY OF PISMO BEACH

VENDOR AGREEMENT FOR PROFESSIONAL SERVICES
This Vendor Agreement for Professional Services (“AGREEMENT”) is made and entered into as of the date the AGREEMENT is fully executed by all parties (the “Effective Date”), by and between the City of Pismo Beach, a municipal corporation (“CITY”), and GHD, Inc. (“VENDOR”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

RECITALS:

CITY wishes to retain the services of an experienced and qualified VENDOR to provide the following services:

Owner’s Advisor for Design Build – Central Coast Blue
VENDOR represents and warrants that it is qualified to perform those services.

AGREEMENT:

I. SERVICES TO BE PERFORMED BY VENDOR
VENDOR will provide the services listed in the Scope of Services attached hereto as Exhibit A.

VENDOR warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner. Extra work beyond that described in the Scope of Services is not authorized without the express written approval of CITY. VENDOR shall request and receive written approval prior to performing any extra work. Any work beyond that reflected in the approved Scope of Services shall not be compensated by CITY unless prior written approval was provided under this paragraph. To the extent that Exhibit A is a proposal from VENDOR, such proposal is incorporated only for the description of the Scope of Services and no other terms and conditions from any such proposal shall apply to this AGREEMENT unless specifically agreed to by CITY in writing.

II. TERM
Unless earlier terminated in accordance with Section IV below, or unless the Scope of Services are substantially completed, the AGREEMENT will continue in full force and effect from the Effective Date through June 30, 2029. Upon mutual written agreement, the term of this AGREEMENT can be extended annually under the same terms for an additional one (1) year period, or longer as the parties agree in writing.

III. COMPENSATION
A. VENDOR’s Fee
For services rendered pursuant to this AGREEMENT, VENDOR will be paid in accordance with the Compensation Schedule attached hereto as Exhibit B. However, in no event will the total amount of money paid VENDOR, for services initially contemplated by this AGREEMENT and associated expenses, exceed the sum of four hundred sixty-one thousand four hundred thirty-eight dollars ($461,438), unless otherwise first approved in writing by CITY.

Should this AGREEMENT be extended pursuant to Section II, VENDOR’s fee may be adjusted upon the written agreement of the parties, in the form of an amendment to this AGREEMENT.

IV. TERMINATION OF AGREEMENT
A. CITY may at any time, for any reason, with or without cause, suspend or terminate this AGREEMENT, or any portion hereof, by serving upon VENDOR at least ten (10) days' prior written notice. Upon receipt of said notice, VENDOR shall immediately cease all work under this AGREEMENT, unless the notice provides otherwise. If CITY suspends or terminates a portion of this AGREEMENT, such suspension or termination shall not make void or invalidate the remainder of this AGREEMENT.

B. In the event this AGREEMENT is terminated pursuant to this Section, CITY shall pay to VENDOR the actual value of the work performed up to the time of termination, provided that the work performed is of value to CITY. Upon termination of the AGREEMENT pursuant to this Section, VENDOR will submit an invoice to CITY pursuant to Section III.

V. FORCE MAJEURE
If any party fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes, "acts of God," inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental control, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party’s performance shall be excused for a period equal to the period of such cause for failure to perform.

VI. RETENTION OF FUNDS
VENDOR authorizes CITY to deduct from any amount payable to VENDOR (whether or not arising out of this AGREEMENT) any amounts the payment of which may be in dispute or that are necessary to compensate CITY for any losses, costs, liabilities, or damages suffered by CITY, and all amounts for which CITY may be liable to third parties, by reason of VENDOR’s acts or omissions in performing or failing to perform VENDOR’s obligations under this AGREEMENT. In the event that any claim is made by a third party, the amount or validity of which is disputed by VENDOR, or any indebtedness exists that appears to be the basis for a claim of lien, CITY may withhold from any payment due, without liability for interest because of the withholding, an amount sufficient to cover the claim. The failure of CITY to exercise the right to deduct or to withhold will not, however, affect the obligations of VENDOR to insure, indemnify, and protect CITY as elsewhere provided in this AGREEMENT.

VII. CITY REPRESENTATIVE
The Director of Public Works is designated as the “City Representative,” authorized to act in its behalf with respect to the work and services specified in this AGREEMENT and to make all decisions in connection with this AGREEMENT. Whenever approval, directions, or other actions are required by Attachment 2
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CITY under this AGREEMENT, those actions will be taken by CITY Representative, unless otherwise stated. CITY’s City Manager has the right to designate another CITY Representative at any time, by providing notice to VENDOR.

VIII. VENDOR REPRESENTATIVE(S)
The person(s) employed by VENDOR whose name(s) are set forth immediately following the signatures of the parties executing this AGREEMENT are designated as being the representative(s) of VENDOR authorized to act on its behalf with respect to the work specified in this AGREEMENT and make all decisions in connection with this AGREEMENT.

IX. INDEPENDENT CONTRACTOR
VENDOR is, and at all times will remain as to CITY, a wholly independent contractor. Neither CITY nor any of its elected officials, officers, employees or agents will have control over the conduct of VENDOR or any of VENDOR’s employees, except as otherwise set forth in this AGREEMENT and then only as to the results to be accomplished and not the method by which VENDOR provides the Scope of Services. VENDOR may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of CITY.

X. BUSINESS LICENSE
VENDOR must obtain a CITY business license prior to the start of work under this AGREEMENT, unless VENDOR is qualified for an exemption.

XI. OTHER LICENSES AND PERMITS
VENDOR warrants that it has all professional, contracting and other permits and licenses required to undertake the work contemplated by this AGREEMENT.

XII. VENDOR’S ACCOUNTING RECORDS; OTHER PROJECT RECORDS A. VENDOR shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by CITY that relate to the performance of services under this AGREEMENT. VENDOR shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services.

B. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. VENDOR shall provide free access to the representatives of CITY or its designees at reasonable times to such books and records; shall give CITY the right to examine and audit said books and records; shall permit CITY to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this AGREEMENT. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension of this AGREEMENT, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this AGREEMENT shall become the sole property of CITY and may be used, reused, or otherwise disposed of by CITY without the permission of VENDOR. With respect to computer files, VENDOR shall make available to CITY, at VENDOR's office and upon reasonable written request by CITY, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or XIII. INDEMNIFICATION
A. Non-design, non-construction Professional Services:

Attachment 2
Council Agenda 2-3-2026 12.B-7
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employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of VENDOR, except to the extent caused by the sole negligence, active negligence or willful misconduct of CITY. Negligence, recklessness or willful misconduct of any subcontractor employed by VENDOR shall be conclusively deemed to be the negligence, recklessness or willful misconduct of VENDOR unless adequately corrected by VENDOR. In the event CITY Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from VENDOR’s performance of this AGREEMENT, VENDOR shall provide a defense to CITY Indemnitees or at CITY’s option, reimburse CITY Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to VENDOR under this paragraph exceed VENDOR’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, VENDOR shall meet and confer with other parties regarding unpaid defense costs.

D. Payment by CITY is not a condition precedent to enforcement of the indemnities in paragraph A, B, or C. In the event of any dispute between VENDOR and CITY, as to whether liability arises from the active negligence, sole negligence or willful misconduct of CITY or its officers, employees, or agents, VENDOR will be obligated to pay for CITY’s defense until such time as a final judgment has been entered adjudicating CITY as having been actively negligent, solely negligent or as having engaged in willful misconduct. Except as otherwise required by Civil Code Section 2782.8, VENDOR will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. The provisions of this Section 13 shall survive completion of VENDOR’s services or the termination of this AGREEMENT.

XIV. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES

No elected official, officer, employee, or agent of CITY will be personally liable to VENDOR, in the event of any default or breach by CITY or for any amount that may become due to VENDOR.

XV. INSURANCE

A. Without limiting VENDOR’s indemnification of CITY, and prior to commencement of the Scope of Services, VENDOR shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form that is satisfactory to CITY.

1. General liability insurance. VENDOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

2. Automobile liability insurance. If VENDOR owns vehicles used in performing the Scope of Services in any manner, VENDOR shall maintain automobile insurance at least as broad as Insurance Services Office (ISO) form CA 00 01 covering bodily injury and property damage for all activities of VENDOR arising out of or in connection with any work to be performed under this AGREEMENT, including coverage for any owned, Attachment 2
Council Agenda 2-3-2026 12.B-8
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assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by CITY’s Risk Manager.

6. Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officials, agents, officers, employees, and volunteers or shall specifically allow VENDOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. VENDOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

7. Enforcement of contract provisions (non-estoppel). VENDOR acknowledges and agrees that any actual or alleged failure on the part of CITY to inform VENDOR of non- compliance with any requirement imposes no additional obligations on CITY nor does it waive any rights hereunder.

8. Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If VENDOR maintains higher limits than the minimums shown above, CITY requires and shall be entitled to coverage for the higher limits maintained by VENDOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

9. Notice of cancellation. VENDOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. In the event VENDOR’s policy of insurance cannot be endorsed to provide this notice of cancellation, VENDOR shall provide CITY notice of such cancellation, in writing, not later than 24 hours following the effective time of such cancellation.

10. Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Each such insurance policy shall contain language substantially similar to the following clause:
"The City of Pismo Beach, its elected and appointed officials, officers, employees, and agents are named as additional insureds as respects operations of the named insured performed under contract with the City of Pismo Beach." CITY need not be named as an additional insured on professional liability insurance policies.

11. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing by CITY’s Risk Manager or City Attorney.

XVI. SUBCONTRACTORS

Before VENDOR retains or hires a subcontractor to provide any work, labor, or services relative to this AGREEMENT, VENDOR must:

A. Present the name and identifying information of the subcontractor that will provide any work, labor, or services to CITY;

B. Present to CITY the form of subcontract that will be used with the subcontractor for CITY’s approval, which approval will not be unreasonably withheld. Such subcontract agreement must include an indemnity agreement that is generally in accord with the indemnity obligations contained in paragraph XII of this AGREEMENT and must specifically name CITY as an indemnified party; and

C. Secure from the subcontractor evidence of insurance coverage that meets with this AGREEMENT including naming CITY as an additional insured as required by this AGREEMENT, unless such requirement is waived in writing by CITY's Risk Manager as provided in paragraph XXV below.

Attachment 2
Council Agenda 2-3-2026 12.B-9
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XVII. CONFLICT OF INTEREST

No officer or employee of CITY may have any financial interest, direct or indirect, in this AGREEMENT, nor may any officer or employee participate in any decision relating to the AGREEMENT that affects the officer or employee’s financial interest or the financial interest of any corporation, partnership, or association in which the officer or employee is directly or indirectly interested, in violation of any law, rule or regulation.

No person may offer, give, or agree to give any officer or employee or former officer or employee, nor may any officer or employee solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.

XVIII. NOTICE

All notices, requests, demands, or other communications under this AGREEMENT will be in writing.

Notice will be sufficiently given for all purposes as follows:

A. Personal delivery. When personally delivered to the recipient; notice is effective on delivery.

B. First Class mail. When mailed first class to the last address of the recipient known to the party giving notice; notice is effective three mail delivery days after deposit in a United States Postal Service office or mailbox.

C. Certified mail. When mailed certified mail, return receipt requested; notice is effective on receipt, if delivery is confirmed by a return receipt.

D. Overnight delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender’s account; notice is effective on delivery, if delivery is confirmed by the delivery service.

E. Facsimile transmission. When sent by fax to the last fax number of the recipient known to the party giving notice; notice is effective on receipt. Any notice given by fax will be deemed received on the next business day if it is received after 5:00 p.m. (recipient’s time) or on a non- business day.

Addresses for purpose of giving notice are as set forth immediately following the signatures of the parties executing this AGREEMENT.

F. Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified, will be deemed effective as of the first date the notice was refused, unclaimed or deemed undeliverable by the postal authorities, messenger or overnight delivery service.

G. Either party may change its address or fax number by giving the other party notice of the change in any manner permitted by this AGREEMENT. Any change in address or fax number that is not provided to the other party will not void delivery of any notice under this AGREEMENT, and delivery to the last known address or fax number shall be deemed sufficient for notice under this AGREEMENT.

XIX. PROHIBITION AGAINST ASSIGNMENT AND SUBCONTRACTING

This AGREEMENT and all exhibits are binding on the heirs, successors, and assigns of the parties.

The AGREEMENT may not be assigned or subcontracted by either CITY or VENDOR without the prior written consent of the other.

XX. INTERPRETATION

The terms of this AGREEMENT shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this AGREEMENT or any other rule of construction that might otherwise apply.

XXI. SEVERABILITY

If any part of this AGREEMENT is found to be in conflict with applicable laws, that part will be inoperative, null and void insofar as it is in conflict with any applicable laws, but the remainder of the AGREEMENT will remain in full force and effect.

XXII. TIME OF ESSENCE

Time is of the essence in the performance of this AGREEMENT.

XXIII. GOVERNING LAW; JURISDICTION

This AGREEMENT will be administered and interpreted under the laws of the State of California.

Jurisdiction of and venue for any litigation arising from the AGREEMENT will be in the Superior Court of the San Luis Obispo County, or in the United States District Court for the Central District of California.

XXIV. COMPLIANCE WITH STATUTES AND REGULATIONS

VENDOR will be knowledgeable of and will comply with all applicable federal, state, county and city statutes, rules, regulations, ordinances and orders. VENDOR and its subcontractor(s) shall not discriminate against any person in the performance of this AGREEMENT on the basis of race, religion, national origin, color, age, sex, sexual orientation, AIDS, HIV status, disability, or any other basis protected by state or federal law, and shall comply with applicable federal and state equal employment opportunity laws, ordinances, rules and regulations.

XXV. WAIVER OF BREACH

No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default will impair the right or remedy or be construed as a waiver. A party’s consent or approval of any act by the other party requiring the party’s consent or approval will not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and will not be a waiver of any other default concerning the same or any other provision of this AGREEMENT.

XXVI. ATTORNEY’S FEES

Except as provided for in paragraph XV, in any dispute, litigation, arbitration, or other proceeding by which one party either seeks to enforce its rights under this AGREEMENT (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this AGREEMENT, the prevailing party Attachment 2
Council Agenda 2-3-2026 12.B-10
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will be awarded reasonable attorney’s fees, together with any costs and expenses, to resolve the dispute and to enforce any judgment, including post judgment attorney’s fees costs and expenses and any attorneys’ fees or costs incurred on appeal of any judgment.

XXVII. EXHIBITS
All exhibits identified in this AGREEMENT are incorporated into the AGREEMENT by this reference.

In the event of any conflict between the terms of this AGREEMENT and the terms of an exhibit, the terms of this AGREEMENT shall control. Notwithstanding the foregoing sentence, the provisions of Section XIII of this AGREEMENT shall not be altered, amended, limited or otherwise affected in any manner by any language included in an exhibit to this AGREEMENT, even if such exhibit purports to affect the provisions of Section XIII.

XXVIII. VENDOR’S AUTHORITY TO EXECUTE
The persons executing this AGREEMENT on behalf of the VENDOR warrant that:

A. the VENDOR is duly organized and existing under the appropriate State laws; B. they are duly authorized to execute this AGREEMENT on behalf of the VENDOR; C. by so executing this AGREEMENT, the VENDOR is formally bound to the provisions of this AGREEMENT; and
D. entering into this AGREEMENT does not violate any provision of any other AGREEMENT to which the VENDOR is bound.

XXIX. INTEGRATION; AMENDMENT
This AGREEMENT represents the entire understanding of CITY and VENDOR as to those matters contained in it. No prior oral or written understanding will be of any force or effect with respect to the terms of this AGREEMENT. The AGREEMENT may not be modified or altered except in writing signed by both parties.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year last written below.

Signatures begin on next page.
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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: ________________________________
Address for giving notice (See Section XVIII):
760 Mattie Road, Pismo Beach, CA 93449
ATTEST:

Signed:

Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:

Signed:

Name: Dean J. Pucci
Title: City Attorney
VENDOR:

GHD, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice (See Section XVIII):
______________________________________
______________________________________
Email address for official communications:
______________________________________
Vendor Representative (See Section VIII):

Name/Title: ____________________________
Attachments:

Exhibit A: Scope of Service
Exhibit B: Compensation Schedule
Attachment 2
Council Agenda 2-3-2026 12.B-11
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Attachment 2
Council Agenda 2-3-2026 12.B-12
Packet Page 105

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Attachment 2
Council Agenda 2-3-2026 12.B-13
Packet Page 106

Fee Proposal
City of Pismo Beach OA Services Central Coast Blue
We have assumed the project will utilize an Industry Standard Design Build Contract, and will not develop a new custom contract GHD reserves the right to move budget and hours between Tasks GHD rates are valid until October 31, 2026
We have assumed the tasks 1-7 will be completed by October 31, 2026, and a new Fee Proposal will be developed for future work Description
Principal in
Charge
Project
Manager
Deputy Project
Manager
Technical
Advisor Procurement
Strategic
Planning
Funding
Coordination
Risk
Mitigation
Project
Controls
Wastewater
Process SME MF SME RO SME
UV-AOP
SME
Start up and
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Project
Engineer
Staff
Engineer
Project
Admin
Support
Comm/
Graphics
F
u
n
d
i Total Hours Labor Total
Montgomery &
Associates Subs Markup Total Subcontractors
Travel
Expenses
Total
Disbursements
Estimated
Project Total
Mark
Donovan Steve Wait Kevin Daniels
David
Lindow
Greg
Watanabe
Paul
Hermann
Rebecca
Crow
Gordon
Varney
Allie
Syiem
Coenraad
Pretorius
Kelley Lang-
Haider
Abhay
Hanamsagar
Orren
Schneider
Mike
Pankratz Various Various Various Yossif Yip
V
a
r
i
$395 $340 $340 $375 $395 $395 $325 $325 $300 $355 $325 $350 $365 $295 $275 $220 $185 $203 Task1 Project Management 8 40 40 0 0 0 0 0 12 0 0 0 0 0 12 27 15 0 154 $45,975 $2,500 $250 $2,750 $10,000 $10,000 $58,725 Subtask 1.2 General PM Coordination/Scheduling/Invoicing/Etc.0 20 20 0 0 0 0 0 12 0 0 0 0 0 0 15 15 0 82 $23,275 $2,500 $250 $2,750 $10,000 $10,000 $36,025 Subtask 1.3 Kickoff Meeting and Regular Meetings 8 20 20 0 0 0 0 0 0 0 0 0 0 0 12 12 0 0 72 $22,700 $0 $0 $0 $0 $0 $22,700 Task2 Procurement Management 30 54 46 8 28 68 16 16 0 8 8 8 8 8 116 96 0 0 518 $163,710 $7,500 $750 $8,250 $0 $0 $171,960 Subtask 2.2 Initial OA/City Integration 4 20 20 0 0 4 0 0 0 0 0 0 0 0 16 16 0 0 80 $24,680 $0 $0 $0 $0 $0 $24,680 Subtask 2.3 Develop procurement strategy and evaluation criteria 2 2 2 4 2 12 0 0 0 0 0 0 0 0 20 0 0 0 44 $14,680 $0 $0 $0 $0 $0 $14,680 Subtask 2.4 Draft RFP, Design Criteria Requirements and Contract Documents 16 16 8 4 12 40 0 8 0 8 8 8 8 8 40 40 0 0 224 $72,440 $7,500 $750 $8,250 $0 $0 $80,690 Subtask 2.5 Support RFP Response and Selection and Award Process 8 16 16 0 14 12 16 8 0 0 0 0 0 0 40 40 0 0 170 $51,910 $0 $0 $0 $0 $0 $51,910 Task3 Strategic Planning 6 8 6 0 0 20 0 0 0 0 0 0 0 0 8 12 0 0 60 $19,870 $7,500 $750 $8,250 $0 $0 $28,120 Subtask 3.2 Procurement Phase Strategic Planning 6 8 6 0 0 20 0 0 0 0 0 0 0 0 8 12 0 0 60 $19,870 $7,500 $750 $8,250 $0 $0 $28,120 Task4 Added: Management Support 10 78 164 0 0 0 5 0 0 0 0 0 0 0 0 0 8 17 282 $92,786 $0 $0 $0 $0 $0 $92,786 Subtask 4.1 Project Management 4 12 16 0 0 0 0 0 0 0 0 0 0 0 0 0 8 8 48 $14,204 $0 $0 $0 $0 $0 $14,204 Subtask 4.2 City Coordination 3 16 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 42 $14,034 $0 $0 $0 $0 $0 $14,034 Subtask 4.3 City Council Update 3 8 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 29 $9,203 $0 $0 $0 $0 $0 $9,203 Subtask 4.4 Consultant Coordination 0 20 48 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 68 $23,120 $0 $0 $0 $0 $0 $23,120 Subtask 4.5 Scheduling Management 0 6 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22 $7,480 $0 $0 $0 $0 $0 $7,480 Subtask 4.6 Risk Management 0 8 20 0 0 0 5 0 0 0 0 0 0 0 0 0 0 0 33 $11,145 $0 $0 $0 $0 $0 $11,145 Subtask 4.7 Budget Management 0 8 32 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 40 $13,600 $0 $0 $0 $0 $0 $13,600 Task5 Added: Funding and Financing Support 0 0 0 0 0 0 120 0 0 0 0 0 0 0 0 0 0 20 180 $48,300 $31,270 $3,127 $34,397 $0 $0 $82,697 Subtask 5.1 Groundwater Grant Administration 0 0 0 0 0 0 80 0 0 0 0 0 0 0 0 0 0 20 140 $35,300 $31,270 $3,127 $34,397 $0 $0 $69,697 Subtask 5.2 Title XVI Grant Application 0 0 0 0 0 0 18 0 0 0 0 0 0 0 0 0 0 0 18 $5,850 $0 $0 $0 $0 $0 $5,850 Subtask 5.3 CWSRF Loan Agreement Support 0 0 0 0 0 0 22 0 0 0 0 0 0 0 0 0 0 0 22 $7,150 $0 $0 $0 $0 $0 $7,150 Task6 Added: Technical Support 0 0 20 0 0 0 0 0 20 0 0 0 0 0 0 0 0 0 40 $12,800 $0 $0 $0 $0 $0 $12,800 Subtask 6.1 As-Needed Technical Support 0 0 20 0 0 0 0 0 20 0 0 0 0 0 0 0 0 0 40 $12,800 $0 $0 $0 $0 $0 $12,800 Task7 Expression of Interest Works 6 6 6 0 0 20 0 0 0 0 0 0 0 0 0 0 0 0 38 $14,350 $0 $0 $0 $0 $0 $14,350 Subtask 7.1 Development of document 1 1 1 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 11 $4,235 $0 $0 $0 $0 $0 $4,235 Subtask 7.2 Site visit with potential DBE's 4 4 4 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 16 $5,880 $0 $0 $0 $0 $0 $5,880 Subtask 7.3 Summary Report of Submitters 1 1 1 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 11 $4,235 $0 $0 $0 $0 $0 $4,235 Total Labor Hours 60 186 282 8 28 108 141 16 32 8 8 8 8 8 136 135 23 37 1272 $397,791 $48,770 $4,877 $53,647 $10,000 $10,000 $461,438 x Estimated Project Total $23,700 $63,240 $95,880 $3,000 $11,060 $42,660 $45,825 $5,200 $9,600 $2,840 $2,600 $2,800 $2,920 $2,360 $37,400 $29,700 $4,255 $7,511 1272 $397,791 $48,770 $4,877 $53,647 $10,000 $10,000 $461,438 Exhibit B Attachment 2
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CITY OF PISMO BEACH

VENDOR AGREEMENT FOR PROFESSIONAL SERVICES
This Vendor Agreement for Professional Services (“AGREEMENT”) is made and entered into as of the date the AGREEMENT is fully executed by all parties (the “Effective Date”), by and between the City of Pismo Beach, a municipal corporation (“CITY”), and Water Systems Consulting, Inc. (“VENDOR”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

RECITALS:

CITY wishes to retain the services of an experienced and qualified VENDOR to provide the following services:

Central Coast Blue Management Support Services
VENDOR represents and warrants that it is qualified to perform those services.

AGREEMENT:

I. SERVICES TO BE PERFORMED BY VENDOR
VENDOR will provide the services listed in the Scope of Services attached hereto as Exhibit A.

VENDOR warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner. Extra work beyond that described in the Scope of Services is not authorized without the express written approval of CITY. VENDOR shall request and receive written approval prior to performing any extra work. Any work beyond that reflected in the approved Scope of Services shall not be compensated by CITY unless prior written approval was provided under this paragraph. To the extent that Exhibit A is a proposal from VENDOR, such proposal is incorporated only for the description of the Scope of Services and no other terms and conditions from any such proposal shall apply to this AGREEMENT unless specifically agreed to by CITY in writing.

II. TERM
Unless earlier terminated in accordance with Section IV below, or unless the Scope of Services are substantially completed, the AGREEMENT will continue in full force and effect from the Effective Date through December 31, 2026. Upon mutual written agreement, the term of this AGREEMENT can be extended annually under the same terms for an additional one (1) year period, or longer as the parties agree in writing.

III. COMPENSATION
A. VENDOR’s Fee
For services rendered pursuant to this AGREEMENT, VENDOR will be paid in accordance with the Compensation Schedule attached hereto as Exhibit B. However, in no event will the total amount of money paid VENDOR, for services initially contemplated by this AGREEMENT and associated expenses, exceed the sum of two hundred eighteen thousand five hundred fifteen dollars ($218,515), unless otherwise first approved in writing by CITY. Should this AGREEMENT be extended pursuant to Section II, VENDOR’s fee may be adjusted upon the written agreement of the parties, in the form of an amendment to this AGREEMENT.

IV. TERMINATION OF AGREEMENT
A. CITY may at any time, for any reason, with or without cause, suspend or terminate this AGREEMENT, or any portion hereof, by serving upon VENDOR at least ten (10) days' prior written notice. Upon receipt of said notice, VENDOR shall immediately cease all work under this AGREEMENT, unless the notice provides otherwise. If CITY suspends or terminates a portion of this AGREEMENT, such suspension or termination shall not make void or invalidate the remainder of this AGREEMENT.

B. In the event this AGREEMENT is terminated pursuant to this Section, CITY shall pay to VENDOR the actual value of the work performed up to the time of termination, provided that the work performed is of value to CITY. Upon termination of the AGREEMENT pursuant to this Section, VENDOR will submit an invoice to CITY pursuant to Section III.

V. FORCE MAJEURE
If any party fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes, "acts of God," inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental control, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party’s performance shall be excused for a period equal to the period of such cause for failure to perform.

VI. RETENTION OF FUNDS
VENDOR authorizes CITY to deduct from any amount payable to VENDOR (whether or not arising out of this AGREEMENT) any amounts the payment of which may be in dispute or that are necessary to compensate CITY for any losses, costs, liabilities, or damages suffered by CITY, and all amounts for which CITY may be liable to third parties, by reason of VENDOR’s acts or omissions in performing or failing to perform VENDOR’s obligations under this AGREEMENT. In the event that any claim is made by a third party, the amount or validity of which is disputed by VENDOR, or any indebtedness exists that appears to be the basis for a claim of lien, CITY may withhold from any payment due, without liability for interest because of the withholding, an amount sufficient to cover the claim. The failure of CITY to exercise the right to deduct or to withhold will not, however, affect the obligations of VENDOR to insure, indemnify, and protect CITY as elsewhere provided in this AGREEMENT.

VII. CITY REPRESENTATIVE
The Director of Public Works is designated as the “City Representative,” authorized to act in its behalf with respect to the work and services specified in this AGREEMENT and to make all decisions in connection with this AGREEMENT. Whenever approval, directions, or other actions are required by Attachment 3
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CITY under this AGREEMENT, those actions will be taken by CITY Representative, unless otherwise stated. CITY’s City Manager has the right to designate another CITY Representative at any time, by providing notice to VENDOR.

VIII. VENDOR REPRESENTATIVE(S)
The person(s) employed by VENDOR whose name(s) are set forth immediately following the signatures of the parties executing this AGREEMENT are designated as being the representative(s) of VENDOR authorized to act on its behalf with respect to the work specified in this AGREEMENT and make all decisions in connection with this AGREEMENT.

IX. INDEPENDENT CONTRACTOR
VENDOR is, and at all times will remain as to CITY, a wholly independent contractor. Neither CITY nor any of its elected officials, officers, employees or agents will have control over the conduct of VENDOR or any of VENDOR’s employees, except as otherwise set forth in this AGREEMENT and then only as to the results to be accomplished and not the method by which VENDOR provides the Scope of Services. VENDOR may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of CITY.

X. BUSINESS LICENSE
VENDOR must obtain a CITY business license prior to the start of work under this AGREEMENT, unless VENDOR is qualified for an exemption.

XI. OTHER LICENSES AND PERMITS
VENDOR warrants that it has all professional, contracting and other permits and licenses required to undertake the work contemplated by this AGREEMENT.

XII. VENDOR’S ACCOUNTING RECORDS; OTHER PROJECT RECORDS A. VENDOR shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by CITY that relate to the performance of services under this AGREEMENT. VENDOR shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services.

B. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. VENDOR shall provide free access to the representatives of CITY or its designees at reasonable times to such books and records; shall give CITY the right to examine and audit said books and records; shall permit CITY to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this AGREEMENT. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension of this AGREEMENT, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this AGREEMENT shall become the sole property of CITY and may be used, reused, or otherwise disposed of by CITY without the permission of VENDOR. With respect to computer files, VENDOR shall make available to CITY, at VENDOR's office and upon reasonable written request by CITY, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or XIII. INDEMNIFICATION
A. Non-design, non-construction Professional Services:

Attachment 3
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employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of VENDOR, except to the extent caused by the sole negligence, active negligence or willful misconduct of CITY. Negligence, recklessness or willful misconduct of any subcontractor employed by VENDOR shall be conclusively deemed to be the negligence, recklessness or willful misconduct of VENDOR unless adequately corrected by VENDOR. In the event CITY Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from VENDOR’s performance of this AGREEMENT, VENDOR shall provide a defense to CITY Indemnitees or at CITY’s option, reimburse CITY Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to VENDOR under this paragraph exceed VENDOR’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, VENDOR shall meet and confer with other parties regarding unpaid defense costs.

D. Payment by CITY is not a condition precedent to enforcement of the indemnities in paragraph A, B, or C. In the event of any dispute between VENDOR and CITY, as to whether liability arises from the active negligence, sole negligence or willful misconduct of CITY or its officers, employees, or agents, VENDOR will be obligated to pay for CITY’s defense until such time as a final judgment has been entered adjudicating CITY as having been actively negligent, solely negligent or as having engaged in willful misconduct. Except as otherwise required by Civil Code Section 2782.8, VENDOR will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. The provisions of this Section 13 shall survive completion of VENDOR’s services or the termination of this AGREEMENT.

XIV. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES
No elected official, officer, employee, or agent of CITY will be personally liable to VENDOR, in the event of any default or breach by CITY or for any amount that may become due to VENDOR.

XV. INSURANCE
A. Without limiting VENDOR’s indemnification of CITY, and prior to commencement of the Scope of Services, VENDOR shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form that is satisfactory to CITY.

1. General liability insurance. VENDOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

2. Automobile liability insurance. If VENDOR owns vehicles used in performing the Scope of Services in any manner, VENDOR shall maintain automobile insurance at least as broad as Insurance Services Office (ISO) form CA 00 01 covering bodily injury and property damage for all activities of VENDOR arising out of or in connection with any work to be performed under this AGREEMENT, including coverage for any owned, Attachment 3
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assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by CITY’s Risk Manager.

6. Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officials, agents, officers, employees, and volunteers or shall specifically allow VENDOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. VENDOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

7. Enforcement of contract provisions (non-estoppel). VENDOR acknowledges and agrees that any actual or alleged failure on the part of CITY to inform VENDOR of non- compliance with any requirement imposes no additional obligations on CITY nor does it waive any rights hereunder.

8. Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If VENDOR maintains higher limits than the minimums shown above, CITY requires and shall be entitled to coverage for the higher limits maintained by VENDOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

9. Notice of cancellation. VENDOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. In the event VENDOR’s policy of insurance cannot be endorsed to provide this notice of cancellation, VENDOR shall provide CITY notice of such cancellation, in writing, not later than 24 hours following the effective time of such cancellation.

10. Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Each such insurance policy shall contain language substantially similar to the following clause:
"The City of Pismo Beach, its elected and appointed officials, officers, employees, and agents are named as additional insureds as respects operations of the named insured performed under contract with the City of Pismo Beach." CITY need not be named as an additional insured on professional liability insurance policies.

11. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing by CITY’s Risk Manager or City Attorney.

XVI. SUBCONTRACTORS
Before VENDOR retains or hires a subcontractor to provide any work, labor, or services relative to this AGREEMENT, VENDOR must:

A. Present the name and identifying information of the subcontractor that will provide any work, labor, or services to CITY;
B. Present to CITY the form of subcontract that will be used with the subcontractor for CITY’s approval, which approval will not be unreasonably withheld. Such subcontract agreement must include an indemnity agreement that is generally in accord with the indemnity obligations contained in paragraph XII of this AGREEMENT and must specifically name CITY as an indemnified party; and
C. Secure from the subcontractor evidence of insurance coverage that meets with this AGREEMENT including naming CITY as an additional insured as required by this AGREEMENT, unless such requirement is waived in writing by CITY's Risk Manager as provided in paragraph XXV below.

Attachment 3
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XVII. CONFLICT OF INTEREST
No officer or employee of CITY may have any financial interest, direct or indirect, in this AGREEMENT, nor may any officer or employee participate in any decision relating to the AGREEMENT that affects the officer or employee’s financial interest or the financial interest of any corporation, partnership, or association in which the officer or employee is directly or indirectly interested, in violation of any law, rule or regulation.

No person may offer, give, or agree to give any officer or employee or former officer or employee, nor may any officer or employee solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.

XVIII. NOTICE
All notices, requests, demands, or other communications under this AGREEMENT will be in writing.

Notice will be sufficiently given for all purposes as follows:

A. Personal delivery. When personally delivered to the recipient; notice is effective on delivery.

B. First Class mail. When mailed first class to the last address of the recipient known to the party giving notice; notice is effective three mail delivery days after deposit in a United States Postal Service office or mailbox.

C. Certified mail. When mailed certified mail, return receipt requested; notice is effective on receipt, if delivery is confirmed by a return receipt.

D. Overnight delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender’s account; notice is effective on delivery, if delivery is confirmed by the delivery service.

E. Facsimile transmission. When sent by fax to the last fax number of the recipient known to the party giving notice; notice is effective on receipt. Any notice given by fax will be deemed received on the next business day if it is received after 5:00 p.m. (recipient’s time) or on a non- business day.

Addresses for purpose of giving notice are as set forth immediately following the signatures of the parties executing this AGREEMENT.

F. Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified, will be deemed effective as of the first date the notice was refused, unclaimed or deemed undeliverable by the postal authorities, messenger or overnight delivery service.

G. Either party may change its address or fax number by giving the other party notice of the change in any manner permitted by this AGREEMENT. Any change in address or fax number that is not provided to the other party will not void delivery of any notice under this AGREEMENT, and delivery to the last known address or fax number shall be deemed sufficient for notice under this AGREEMENT.

XIX. PROHIBITION AGAINST ASSIGNMENT AND SUBCONTRACTING
This AGREEMENT and all exhibits are binding on the heirs, successors, and assigns of the parties.

The AGREEMENT may not be assigned or subcontracted by either CITY or VENDOR without the prior written consent of the other.

XX. INTERPRETATION
The terms of this AGREEMENT shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this AGREEMENT or any other rule of construction that might otherwise apply.

XXI. SEVERABILITY
If any part of this AGREEMENT is found to be in conflict with applicable laws, that part will be inoperative, null and void insofar as it is in conflict with any applicable laws, but the remainder of the AGREEMENT will remain in full force and effect.

XXII. TIME OF ESSENCE
Time is of the essence in the performance of this AGREEMENT.

XXIII. GOVERNING LAW; JURISDICTION
This AGREEMENT will be administered and interpreted under the laws of the State of California.

Jurisdiction of and venue for any litigation arising from the AGREEMENT will be in the Superior Court of the San Luis Obispo County, or in the United States District Court for the Central District of California.

XXIV. COMPLIANCE WITH STATUTES AND REGULATIONS
VENDOR will be knowledgeable of and will comply with all applicable federal, state, county and city statutes, rules, regulations, ordinances and orders. VENDOR and its subcontractor(s) shall not discriminate against any person in the performance of this AGREEMENT on the basis of race, religion, national origin, color, age, sex, sexual orientation, AIDS, HIV status, disability, or any other basis protected by state or federal law, and shall comply with applicable federal and state equal employment opportunity laws, ordinances, rules and regulations.

XXV. WAIVER OF BREACH
No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default will impair the right or remedy or be construed as a waiver. A party’s consent or approval of any act by the other party requiring the party’s consent or approval will not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and will not be a waiver of any other default concerning the same or any other provision of this AGREEMENT.

XXVI. ATTORNEY’S FEES
Except as provided for in paragraph XV, in any dispute, litigation, arbitration, or other proceeding by which one party either seeks to enforce its rights under this AGREEMENT (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this AGREEMENT, the prevailing party Attachment 3
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will be awarded reasonable attorney’s fees, together with any costs and expenses, to resolve the dispute and to enforce any judgment, including post judgment attorney’s fees costs and expenses and any attorneys’ fees or costs incurred on appeal of any judgment.

XXVII. EXHIBITS
All exhibits identified in this AGREEMENT are incorporated into the AGREEMENT by this reference.

In the event of any conflict between the terms of this AGREEMENT and the terms of an exhibit, the terms of this AGREEMENT shall control. Notwithstanding the foregoing sentence, the provisions of Section XIII of this AGREEMENT shall not be altered, amended, limited or otherwise affected in any manner by any language included in an exhibit to this AGREEMENT, even if such exhibit purports to affect the provisions of Section XIII.

XXVIII. VENDOR’S AUTHORITY TO EXECUTE
The persons executing this AGREEMENT on behalf of the VENDOR warrant that:

A. the VENDOR is duly organized and existing under the appropriate State laws; B. they are duly authorized to execute this AGREEMENT on behalf of the VENDOR; C. by so executing this AGREEMENT, the VENDOR is formally bound to the provisions of this AGREEMENT; and
D. entering into this AGREEMENT does not violate any provision of any other AGREEMENT to which the VENDOR is bound.

XXIX. INTEGRATION; AMENDMENT
This AGREEMENT represents the entire understanding of CITY and VENDOR as to those matters contained in it. No prior oral or written understanding will be of any force or effect with respect to the terms of this AGREEMENT. The AGREEMENT may not be modified or altered except in writing signed by both parties.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year last written below.

Signatures begin on next page.
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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: ________________________________
Address for giving notice (See Section XVIII):
760 Mattie Road, Pismo Beach, CA 93449
ATTEST:

Signed:

Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:

Signed:

Name: Dean J. Pucci
Title: City Attorney
VENDOR:

Water Systems Consulting, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice (See Section XVIII):
______________________________________
______________________________________
Email address for official communications:
______________________________________
Vendor Representative (See Section VIII):

Name/Title: ____________________________
Attachments:

Exhibit A: Scope of Service
Exhibit B: Compensation Schedule
Attachment 3
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Attachment 3
Council Agenda 2-3-2026 12.B-23
Packet Page 116

City of Pismo Beach
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Jeff Szytel Justin Pickard Michael
Steele Sierra Orr Cynthia Kahn Erica Franklin Emily Lee Kay Merrill Billing rates, $/hr $415 $366 $267 $275 $160 $160 $140 $186 1 Management Support

1.1 Project Management 4 9 17 4 7 41 11,895$ 11,895$

1.2 City Coordination 2 12 18 3 35 10,853$ 10,853$

1.3 City Council Update 1 7 11 5 4 28 7,929$ 7,929$

1.4 Consultant Coordination 32 62 94 28,266$ 28,266$

1.5 Budget Management 8 22 30 8,802$ 8,802$
SUBTOTAL 7 68 130 12 0 4 0 7 228 67,745$ 67,745$

2.1 Groundwater Grant Administration 20 60 80 23,340$ 23,340$

2.2 Title XVI Grant Administration 6 18 24 7,002$ 7,002$

2.3 CWSRF Loan Agreement Support 12 22 34 10,266$ 10,266$ SUBTOTAL 0 38 100 0 0 0 0 0 138 40,608$ 40,608$

3.1 Stakeholder Outreach 10 40 46 8 8 112 24,420$ 24,420$

3.2 Media Relations 5 28 34 6 8 81 17,050$ 17,050$

3.3 Content Creation 10 22 42 82 4 16 176 37,084$ 37,084$ SUBTOTAL 0 25 22 110 162 18 32 0 369 78,554$ 78,554$

4.1 SLO County 2 8 10 2,868$ 2,868$

4.2 Grover Beach 6 12 18 5,400$ 5,400$
SUBTOTAL 0 8 20 0 0 0 0 0 28 8,268$ 8,268$

5.1 As-Needed Technical Support 20 60 80 23,340$ 23,340$ SUBTOTAL 0 20 60 0 0 0 0 0 80 23,340$ 23,340$
COLUMN TOTALS 7 159 332 122 162 22 32 7 843 218,515$ 218,515$ Mileage will be reimbursed at the prevailing federal milage reimbursement rate in effect at the time of travel 10% mark-up on direct expenses; 5% mark-up for sub-contracted services Task No. Task Description
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Exhibit B Attachment 3
Council Agenda 2-3-2026 12.B-24
Packet Page 117

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.C
Meetin Date: Februar 3, 2026

TITLE:

Declaration of City-Owned Property as Surplus Land and Implementation of Procedures Under the State of California Surplus Land Act and Making a Finding of Exemption under the California Environmental Quality Act RECOMMENDATION:

Adopt a Resolution declaring that real properties owned by the City located at APN’s 010-302-030 and 010-302-031 are surplus land and not necessary for the City’s use pursuant to Government Code Section 54221, authorizing the City Manager to comply with the procedures under the surplus land act, and finding that such declaration and authorization is exempt from environment review under the California Environmental Quality Act.

DISCUSSION:

Assembly Bill 1486 (AB 1486, 2019) provides that land shall be declared either “surplus land” or “exempt surplus land” before a local agency may take any action to sell or lease land that the agency owns. AB 1486 further added provision prohibiting local agencies from negotiating any disposition of the property prior to compliance with the procedural requirements of the California Surplus Land Act.

The City currently owns property known as the Chapman Estate at 1243 Ocean Boulevard, Pismo Beach, which is approximately 1.55 acres and is made up of two parcels, APN 010-302-030 and APN 010-302-031. In August 2024, the City Council received an assessment of the Chapman Estate’s physical condition, operational and maintenance activities, and financial summaries. The City Council determined that operating and maintaining the Chapman Estate was not financially prudent nor was it reasonable to continue to operate and maintain. As such, the City Council directed staff to take the necessary steps needed to dispose of the property. To sell or lease the Chapman Estate, the City must now comply with the Surplus Land Act as amended by AB 1486.

On August 19, 2025, the City Council adopted Resolution R-2025-061 declaring the subject property exempt surplus land due to use restrictions applying to the property from the Distribution Agreement Dated December 30, 2013, limiting use of the property to recreational and general public use purposes only. The California Department of Housing and Community Development (HCD) subsequently rejected the City’s finding that the property qualified as exempt surplus land and directed the City to move forward with the regular Surplus Land Act process.

Procedure
As noted above, the amended Surplus Land Act, Government Code Sections 54220 et seq., requires the City to first declare this property to be surplus land and offer such surplus land to various entities, subject to Government Code Section 54227(b), first Council Agenda 2-3-2026 12.C-1
Packet Page 118

priority shall be given to entities that agree to continue use of the property for park, open space or recreation purposes with second priority given to entities that agree to use the property for housing where at least twenty-five percent of the units will be affordable to lower income households, pursuant to Government Code Section 54222.5 before it can privately negotiate any disposition and dispose of the land. This action is consistent with the Distribution Agreement (Attachment 2), which transferred the property to the City.

Therefore, pursuant to the amended Surplus Land Act, City staff must send a written Notice of Availability (NOA) of the City-owned properties by email or certified mail to HCD and all parties identified on the HCD’s expressions of interest list.

If one of the entities/agencies receiving the NOA desires to purchase or lease the property, it must notify the City of its interest to do so in writing within 60 days of receiving the City’s notice, and the City must negotiate in good faith with the entity/agency responding for at least a period of 90 days. If no one replies within 60 days of issuance of NOA, the City may dispose of the property subject to Government Code Section 54223.

If the City disposes of the property to an entity that uses the property for ten or more residential units, the City shall record a covenant or restriction against the property prior to any land use entitlement that requires not less than fifteen percent of any residential units be affordable units.

If the City receives a single reply to the NOA, it must enter negotiations with that entity. If multiple notices of interest are received, the Surplus Land Act establishes priorities. In the event no agreement is reached between the City and any interested entity/agency after the 90-day good faith negotiation period, the land may then be disposed of subject to the same recorded covenant restriction noted above.

Environmental
Staff has determined that the designation of this property as surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under the California Environmental Quality Act pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by CEQA Guidelines Section 15378.

Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) declaring that real properties owned by the City located at APNs 010-302-030 and 010-302-031 are surplus land and not necessary for the City’s use pursuant to Government Code Section 54221, authorizing the City Manager to comply with the procedures under the Surplus Land Act, and finding that such declaration and authorization is exempt from environmental review under the California Environmental Quality Act.

FISCAL IMPACT:

There is no direct financial impact associated with declaring the Chapman Estate surplus property. However, depending on the number of responses to the NOA, City staff may need to spend multiple hours negotiating with multiple entities. Subsequent actions, Council Agenda 2-3-2026 12.C-2
Packet Page 119

should the City find an interested party, will have a financial impact and will be evaluated as part of those actions.

ATTACHMENTS:

1. Resolution

2. Chapman Estate Distribution Agreement
Submitted by: Scot Graham, Community Development Director City Manager Approval:

Council Agenda 2-3-2026 12.C-3
Packet Page 120

RESOLUTION NO. R-2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,

CALIFORNIA DECLARING THAT REAL PROPERTIES OWNED BY THE CITY LOCATED AT APNs 010-302-030 AND 010-302-031 ARE SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE PURSUANT TO GOVERNMENT CODE SECTION 54221, AUTHORIZING THE CITY MANAGER TO COMPLY WITH THE

PROCEDURES UNDER THE SURPLUS LAND ACT, AND FINDING THAT SUCH

DECLARATION AND AUTHORIZATION IS EXEMPT FROM ENVIRONMENT REVIEW

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Pismo Beach ("City") is owner in fee simple of certain restricted real property located at APNs 010-302-030 and 010-302-031, commonly known as the Chapman Estate and depicted in Exhibit A ("Property"); and WHEREAS, when the City owns surplus land in fee simple and such land is no longer necessary for the City use, then under the Surplus Properties Land Act, Government Code Sections 54220–54233 ("Act") the City must either declare the land surplus land or exempt surplus land; and
WHEREAS, the City Council desires to declare the property non-exempt surplus land and not necessary for City use; and
WHEREAS, the City received title to this Property through a disposition agreement with a restriction that the owner shall use the land for recreational and general public use purposes only; and
WHEREAS, pursuant to the Surplus Land Act, staff will send a written notice of availability of the property by electronic mail or by certified mail to all of the entities identified in Government Code section 54222; and
WHEREAS, subject to Government Code section 54227(b), priority shall be given to an entity that agrees to continue to use the Property for park or recreation purposes; if one of the entities desires to purchase or lease the property after having received notice, it must indicate its interest to do so in writing within 60 days of receiving the notice, and the City and the entity responding to the notice may negotiate price and terms for the disposition of the Property; and
WHEREAS, pursuant to Government Code 54223, if the City does not agree to price and terms with an entity to which notice and an opportunity to purchase or lease are given and disposes of the Property to an entity that uses the Property for ten or more residential units, the City shall record a covenant or restriction against the Property prior to approval of any land use entitlements that requires that not less than fifteen (15) percent of any residential units be Affordable Units; and
Council Agenda 2-3-2026 12.C-4
Attachment 1
Packet Page 121

WHEREAS, the Act requires that, before City Council disposes of surplus land or engages in negotiations to dispose of surplus land, the City must support such a determination with written findings and shall provide a copy of the written determination to the California Department of Housing and Community Development (HCD) at least 30 days prior to disposition.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:

1. The previous recitals are true and correct and a substantive part of this resolution.

2. The City Council hereby finds and declares the property described in Exhibit A and consists of as non-exempt surplus land and is not currently necessary for City use. The subject property is commonly known as the Chapman Estate, located at 1243 Ocean Boulevard, Pismo Beach, California, and consists of Assessor’s Parcel Numbers 010-302-030 and 010-302-031.

3. The City Council directs the City Clerk or designee to send this resolution by electronic mail to the California Department of Housing and Community Development (“HCD”) in compliance with HCD's Surplus Land Act Guideline and to send a Notice of Availability (NOA) by electronic mail or by certified mail to all of the entities identified in Government Code section 54222

4. The City has reviewed this resolution with respect to applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA"). City staff has determined that the designation of this property as non- exempt surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 15378. Adoption of this resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

5. The City Council authorizes the City Manager and other City officers and staff, jointly and severally, to do all things which they deem necessary or proper to effectuate the purposes of this resolution and ratifies and confirms any such actions previously taken. Such actions include negotiating in good faith in accordance with the requirements of the Act with any of the Designated Entities that submit a written notice of interest to purchase or lease the Properties in compliance with the Act.

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 February 2026, by the following vote:

Council Agenda 2-3-2026 12.C-5
Attachment 1
Packet Page 122

AYES:

NOES:

ABSENT:

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
Council Agenda 2-3-2026 12.C-6
Attachment 1
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Council Agenda 2-3-2026 12.C-7
Attachment 1
Packet Page 124

Council Agenda 2-3-2026 12.C-8
Attachment 2
Packet Page 125

Council Agenda 2-3-2026 12.C-9
Attachment 2
Packet Page 126

Council Agenda 2-3-2026 12.C-10
Attachment 2
Packet Page 127

Council Agenda 2-3-2026 12.C-11
Attachment 2
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Council Agenda 2-3-2026 12.C-12
Attachment 2
Packet Page 129

Council Agenda 2-3-2026 12.C-13
Attachment 2
Packet Page 130