Pismo Beach City Council
May 5, 2026

AGENDA
Pismo Beach City Council
Tuesday, May 5, 2026
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:

This meeting is being conducted in a hybrid format with both in-person and virtual options. Ways to watch this meeting and submit public comment are provided below.

Watch and participate in person:
•Visit the Council Chamber at City Hall, 760 Mattie Road, Pismo Beach, CA 93449. •To make public comment, please submit an optional blue “speaker slip” to staff; the Mayor will ask you to approach the lectern to speak during the public comment period on your item of interest.

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

Watch online:
•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:
•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] or mailed or delivered to the City Clerk’s Office, 760 Mattie Road, Pismo Beach, CA 93449. During the Regular 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:
•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 participates in this meeting by teleconference under the provisions of Government 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 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 instances, the City 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 Erica Inderlied at [email protected] with questions.

Council Agenda 5-5-2026

Pismo Beach City Council Agenda May 5, 2026

Regular Meeting—5:30 p.m.

Council Chamber, 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. 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 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 at this time.

However, in response to a matter raised as part of this comment period, the Council may, during Item 13, City Council 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: • 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.

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

7. CITY 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) CAPSLO (Reiss)
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 5-5-2026

Pismo Beach City Council Agenda May 5, 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 April 21, 2026 Regular Joint Meeting.

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

Recommendation:

1. Approve the Summary of Payroll Register for April 19, 2026;

2. Approve the Register of Demands for April 17, 2026.

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

Recommendation:

No action recommended; for information only.

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

Recommendation:

No action recommended; for information only.

Item 9.F: Quarterly Investment Report for the Three Months of January through March 2026 – the Third Quarter of Fiscal Year (FY) 2026 (Feeser)

Recommendation:

No action recommended; for information only.

Item 9.G: Award of Contract to Water Systems Consulting, Inc. for the 2025 Urban Water Management Plan and Water Master Plan Update (Gaglione)

Recommendation:

Adopt a Resolution authorizing the City Manager to enter into a Professional Services Agreement with Water Systems Consulting, Inc. in an amount not to exceed $221,703 for the 2025 Urban Water Management Plan and Water Master Plan Update.

Council Agenda 5-5-2026

Pismo Beach City Council Agenda May 5, 2026

Item 9.H: Approval of the Routine Street Maintenance Project for Proposed Fiscal Year 2027 Road Maintenance and Rehabilitation Account Funding (SB 1); Making a Determination of Exemption under the California Environmental Quality Act (Feeser)

Recommendation:

Adopt a Resolution approving the Routine Street Maintenance project for proposed Senate Bill 1 Road Maintenance and Rehabilitation Account funding for Fiscal Year 2027 and making a Determination of Exemption under the California Environmental Quality Act.

Item 9.I: Purchase of Replacement Vehicle for Fire Department; Related Budget Adjustments (Craig)

Recommendation:

Adopt a Resolution:

1. Authorizing the purchase of one 2026 Yamaha FX Cruiser HO from PCP Motorsports in the amount of $18,308.18 and one Tilt Trailer from Southwest Trailer Sales in the amount of $6,690.77;

2. Accepting $14,000 in future grant revenues in Fiscal Year 2027 to reimburse the Motor Vehicle Replacement Fund; and

3. Appropriating related budget adjustments in Fiscal Years 2026 and 2027.

Item 9.J: Purchase of Replacement Vehicle for Public Works Department Wastewater Division (Gaglione)

Recommendation:

Adopt a Resolution authorizing the purchase of one replacement Public Works Wastewater vehicle (WW122) from Altec Industries, Inc. in an amount not to exceed $231,683.45 in Fiscal Year 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: Fire Department Semi Annual Report (Craig)

Recommendation:

Receive Fire Department briefing. No action recommended; for information only.

Council Agenda 5-5-2026

Pismo Beach City Council Agenda May 5, 2026

Item 12.B: Annual Military Equipment Report Per California Assembly Bill 481 (Smith)

Recommendation:

1. Receive the Annual Report on the City’s Military Equipment Use Policy;

2. Adopt a Resolution renewing the City’s Military Equipment Use Policy and Ordinance pursuant to Government Code §§7070–7075.

13. CITY COUNCIL 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:

Closed Session Tuesday, May 19, 2026
Regular Meeting Tuesday, May 19, 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, declare under penalty of perjury that the foregoing agenda for the May 5, 2026 meeting(s) of the Pismo Beach City Council was posted on April 30, 2026, at City

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.

Council Agenda 5-5-2026

Pismo Beach City Council Agenda May 5, 2026

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 5-5-2026

PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.A
May 5, 2026
TITLE:

Adoption of Meeting Minutes
RECOMMENDATION:

Adopt Minutes of the April 21, 2026 Regular Joint 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 April 21, 2026 Regular Joint Meeting Submitted by:

Erica Inderlied, City Clerk
City Manager Approval:

Council Agenda 5-5-2026 9.A-1
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DRAFT MINUTES
Pismo Beach City Council
Pismo Beach Public Financing Agency Board of Directors
Central Coast Blue Regional Recycled Water Authority
Board of Directors

Regular Joint 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, Pismo Beach Public Financing Agency Board of Directors, and Central Coast Blue Regional Recycled Water Authority Board of Directors met this date in a regular session with Mayor/Chair Waage presiding.

CALL TO ORDER: 5:30 p.m.

1.ROLL CALL:

Present: Absent:

City Council
Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Pismo Beach Public Financing Agency Board of Directors
Chair Ed Waage
Vice-Chair Mary Ann Reiss
Board Member Marcia Guthrie
Board Member Stacy Inman
Board Member Scott Newton
Central Coast Blue Regional Recycled Water Authority Board of Directors Chair Ed Waage (City of Pismo Beach)
Vice-Chair Mary Ann Reiss (Pismo Beach Public Financing Agency) Staff Present:

Silas Clarke, Assistant City Manager
Nadia Feeser, Administrative Services Director/Treasurer Rosemarie Gaglione, Director of Public Works
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Jorge Garcia, City Manager/General Manager/Executive Director Scot Graham, Community Development Director
Erica Inderlied, City Clerk/Authority Clerk
Gordon Jackson, Director of Tourism and Events
Dean Pucci, City Attorney/Agency Counsel/Authority Attorney Jeff Smith, Chief of Police
Dell Wells, Fire Captain

2.PLEDGE OF ALLEGIANCE
Mayor Waage led the Pledge of Allegiance.

3.ACCEPTANCE OF AGENDA
No requests to reorder the agenda.

4.PRESENTATIONS
Item 4.A: Presentation: Visit from Happy Time Preschool (Happy Time Preschool) Presented by Amy Turner, Happy Time Preschool.

Item 4.B: Proclamation: Recognizing April as Month of the Child (Early Care and Education Planning Council of San Luis Obispo County)
Presented to Shelby Walker, San Luis Obispo County Early Care and Education Planning Council.

Item 4.C: Presentation: Recognition of Outgoing Advisory Body Members (Waage)
•David Daguerre: Traffic Safety Committee
•Keryn Gold: SLOCOG Citizens Transportation Advisory Committee •Linda Grupenhagen: Special Events Committee
•Robert Horch: Parking Advisory Committee
•Tammy McCall: Special Events Committee
•Don Oberhelman: Planning Commission
•Megan Tayor: Conference and Visitors Bureau Board / LBID Advisory Board
The Council recognized the service of outgoing Special Events Committee Member Tammy McCall.

5.PUBLIC COMMENT PERIOD
Call for public comment: No comment.

Council Agenda 5-5-2026 9.A-3
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6. CITY MANAGER’S REPORT

City Manager Garcia commented on various topics, including the City’s 80th birthday on April 25, 2026.

7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT

City Attorney Pucci had nothing to report.

8. COUNCIL COMMITTEE REPORTS

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

Council Member Inman:

Pismo Beach Conference and Visitors Bureau (CVB) Board / Lodging Business Improvement District (LBID) Advisory Board.

Mayor Pro Tem Reiss:

California Joint Powers Insurance Authority (CJPIA) Executive Committee.

Mayor Waage:

Friends of Price House Board.

San Luis Obispo Council of Governments (SLOCOG) Board / Executive Committee.

San Luis Obispo County Community Fire Safe Council.

9. CONSENT CALENDAR

Call for public comment: No comment.

Action: Adopt Consent Calendar.

Motion: Reiss
Second: Waage

Vote: The motion passed on the following vote (Items 9.A through 9.F; Item 9.H):

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

Absent: 0
Abstain: 0
Recused: 0

Vote: The motion passed on the following vote (Items 9.G and 9.I):

Ayes: 2 Reiss, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0
Council Agenda 5-5-2026 9.A-4
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Item 9.A: Adoption of Meeting Minutes (Inderlied)

Recommendation:

1. Adopt Minutes of the February 3, 2026 Closed and Regular Joint Meeting.

2. Adopt Minutes of the April 7, 2026 Closed and Regular Joint Meeting.

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

Recommendation:

1. Approve the Summary of Payroll Register for April 5, 2026;

2. Approve the Register of Demands for March 27, 2026, April 3, 2026, and April 10, 2026.

Item 9.C: Quarterly Paid Parking Update (Graham)

Recommendation:

No action recommended, for information only.

Item 9.D: 2026 Sewer System Management Plan Update (Gaglione)

Recommendation:

Adopt a Resolution adopting the 2026 Sewer System Management Plan.

Legislative Record: Resolution R-2026-021 adopted.

Item 9.E: Traffic Safety Committee Recommendation for 2655 Shell Beach Road Red Curb (Gaglione)

Recommendation:

Adopt a Resolution authorizing the installation of red curb at 2655 Shell Beach Road.

Legislative Record: Resolution R-2026-022 adopted.

Item 9.F: Annual City Weed Abatement Program; Declaration of Nuisance (Craig)

Recommendation:

Adopt a Resolution declaring that grass, weeds, and rubbish on certain lots in the City of Pismo Beach constitute public nuisances and ordering said public nuisances to be abated.

Legislative Record: Resolution R-2026-023 adopted.

Council Agenda 5-5-2026 9.A-5
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Item 9.G: Central Coast Blue Regional Recycled Water Authority Real Property Transfer to the City of Pismo Beach; APNs 060-543- 016 and 060-543-007 (Feeser)

Recommendation:

Adopt a Resolution approving and granting the transfer of real property to the City of Pismo Beach and directing the Chair of the Board to execute the grant deed and all related documents necessary to transfer the property to the City of Pismo Beach.

Legislative Record: Resolution JPA-R-2026-001 adopted.

Item 9.H: Acceptance of Real Property Transfer for Central Coast Blue Regional Recycled Water Authority; APNs 060-543-016 and 060- 543-007 (Feeser)

Recommendation:

Adopt a Resolution approving and accepting the transfer of real property to the City of Pismo Beach and directing the City Manager to execute a certificate of acceptance and all related documents necessary to transfer the Central Coast Blue Regional Recycled Water Authority Facility Site to the City of Pismo Beach.

Legislative Record: Resolution R-2026-024 adopted.

Item 9.I: Budget for Fiscal Year 2027: July 1, 2026 through June 30, 2027 (Feeser)

Recommendation:

Adopt a Resolution adopting the Fiscal Year 2027 Budget for the Central Coast Blue Regional Recycled Water Authority.

Legislative Record: Resolution JPA-R-2026-002 adopted.

10. ITEMS PULLED FROM CONSENT

None.

Council Agenda 5-5-2026 9.A-6
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12. BUSINESS ITEMS

This item was reordered.

Item 12.A: Direction on Submitting a Ballot Measure to the Voters – Extending Mayoral Term from Two to Four Years (Clarke)

Recommendation:

Provide direction to staff on a possible ballot measure that would extend the length of the term of the office of Mayor from two years to four years.

Presenting staff:

Silas Clarke, Assistant City Manager
Jorge Garcia, City Manager

Supplemental material submitted into the record.

Call for public comment:

Shelly Higginbotham commented.

Action: Direct staff to return with an agenda item allowing the Council to consider adoption of a resolution directing the placement of a measure on the November 3, 2026 ballot to extend the term of the elective office of Mayor from two years to four years.

Motion: Reiss
Second: Newton

Vote: The motion passed on the following vote:

Ayes: 3 Reiss, Newton, Waage
Noes: 2 Guthrie, Inman

Absent: 0
Abstain: 0
Recused: 0

11. PUBLIC HEARINGS

Item 11.A: Levying the 2% Annual Assessment for the Pismo Beach Lodging Business Improvement District (LBID) for Fiscal Year 2027: July 1, 2026 through June 30, 2027 (Feeser)

Recommendation:

1. Open public hearing; accept protests, if any, to the proposed assessments; close public hearing;
Council Agenda 5-5-2026 9.A-7
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2. Adopt a Resolution levying a 2% annual assessment for the Pismo Beach Lodging Business Improvement District (LBID) for Fiscal Year 2027: July 1, 2026 through June 30, 2027.

Presenting staff:

Nadia Feeser, Administrative Services Director
Jorge Garcia, City Manager

Public Hearing / Call for public comment: No comment.

The public hearing was closed.

Action: Adopt a Resolution levying a 2% annual assessment for the Pismo Beach Lodging Business Improvement District (LBID) for Fiscal Year 2027:

July 1, 2026 through June 30, 2027.

Motion: Inman
Second: Guthrie

Vote: The motion passed on the following vote:

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

Absent: 0
Abstain: 0
Recused: 0

Legislative Record: Resolution R-2026-025 adopted.

12. BUSINESS ITEMS

Item 12.A: Direction on Submitting a Ballot Measure to the Voters – Extending Mayoral Term from Two to Four Years (Clarke)

This item was reordered and heard prior to Item 11.A.

13. CITY COUNCIL COMMENTS AND REQUESTS

No action.

14. ADJOURNMENT

At 6:22 p.m.

Council Agenda 5-5-2026 9.A-8
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APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Chair Erica Inderlied, Secretary

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Chair Erica Inderlied, Authority Clerk

Council Agenda 5-5-2026 9.A-9
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.B
May 5, 2026
TITLE:

Payroll Register and Register of Demands
RECOMMENDATION:

1. Approve the Summary of Payroll Register for April 19, 2026;

2. Approve the Register of Demands for April 17, 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 5-5-2026 9.B-1
Packet Page 10

FOR PERIOD ENDING 04/19/26
CHECKS DATED 04/24/26

PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 577269-577275 7
ACH 147

EARNINGS
REGULAR 447,695.50
HOLIDAY 5,923.93
OVERTIME (Includes Comp Time Payouts)19,460.96
Administration -
Building -
Conference & Visitors Bureau -
Police Department 11,470.68
Parking -
Planning 67.76
Fire -
Recreation -
Public Works 8.89
Water 1,277.49
Wastewater 6,636.14
Motor Vehicles -
Subtotal-Overtime 19,460.96$
SALARY ADJUSTMENTS 1,065.60
TRAINING / UNIFORM ALLOWANCE 8,611.65
OTHER EARNINGS 9,298.33
FEDERAL WITHHOLDING TAX 44,368.75
FICA & MEDICARE 37,909.86
STATE INCOME TAX 17,882.63
STATE DISABILITY INSURANCE 6,161.38
GARNISHMENTS 2,693.87
HEALTH 3,976.87
SUPPLEMENTAL DISABILITY 1,207.67
SECTION 125 3,277.10
PERS 43,632.76
DEFERRED COMPENSATION 15,646.38
ADDITIONAL LIFE INSURANCE 345.01
UNION DUES 2,509.17
PISMO ATHLETIC CLUB 550.00
OTHER
DIRECT DEPOSIT DEDUCTION 308,329.07
NET PAYROLL AFTER ACH DEPOSIT 3,565.45

SUMMARY PAYROLL REGISTER
Council Agenda 5-5-2026 9.B-2
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ACH/ Vendor Check
Check# Number Payee Amount Description
ACH 11224 Richards, Watson, Gershon Attorneys At Law 237.00$ Professional Legal Services - Feb 2026 ACH 12944 Leaf 91.49 Monthly PD Copier Lease Apr 2026
ACH 13455 Wex 837.03 Fuel for City Vehicles 03/07/26 - 04/06/26 137037 15252 Annette Alvarez 15.25 Processing Fee Refund - Cancelled Rec Class #11865 137038 14440 Paul Amarillas 1,592.00 Uniforms
137039 11382 Applied Technology Group, Inc.9,482.68 PSF Dispatch Radios & Monitoring 137040 12625 AT&T 9391083592 1,550.82 Internet Service - Mar 2026 137041 15251 AT&T 9391084843 1,384.34 Internet Service - Mar 2026 137042 14832 AT&T Mobility 287339470580 285.18 Internet Service - Mar 2026 137043 UB*01263 Barcelona Point, LLC 92.15 Refund Check 020031-000, 2734 BARCELONA 137044 14514 BEK Collective Inc 1,605.60 Re-design Electrical James Way Irrigation - Dec 2025 - Jan 2026 137045 15074 Jessica Benzon 532.05 M&IE/Mileage: 2026 Laserfiche Empower Conference 4/26-4/30/26 137046 15254 Chrissy Bewley 76.00 Rental Refund - SGP Event 4/11/26 Cancelled 137047 13569 Jedidiah J. Bickel 50.00 Commissioner Stipends Q1 2026 137048 UB*01262 Bruce & Teresa Botto 83.53 Refund Check 017356-000, 120 ESPARTO 137049 15231 Ellen Boyle 232.00 M&IE: 2026 Laserfiche Empower Conference 4/26-4/30/26 137050 14248 Boys and Girls Club of So. San Luis Obispo County 500.00 Deposit Refund - PBVH 3/27/26 137051 11392 Brenntag Pacific Inc.1,990.48 Sodium Bisulfite 137052 10028 Brisco Mill & Lumber Yard 9.79 Maintenance Supplies 137053 13591 Ryan Bullock 291.00 M&IE: CRWA EXPO 2026 4/27-5/1/26 137054 10074 Burdine Printing 705.18 Printing Services
137055 13852 California Diesel & RV LLC 247.50 Vehicle Maintenance 137056 14349 Callander Associates Landscape Architecture, Inc 182.45 Ventana Sports Courts - February 2026 137057 10798 Diana Carter 1,123.20 Instructor: Creative Kids Spring Theater Camp 4/6-4/10/26 #11867 137058 14649 Luis Castaneda 291.00 M&IE: CRWA EXPO 2026 4/27-5/1/26 137059 11451 Channel Islands Technology Integrators' Group 1,233.98 IT Professional Services 137060 14415 CLAD Consulting, Inc.795.00 Dinosaur Caves Camera - 3/3/26-3/10/26 137061 12156 County Of San Luis Obispo 1,490.55 Backflow Prevention Program - Jan/Feb 2026 137062 13959 County of San Luis Obispo 1,875.00 Multi-Jurisdictional Hazard Mitigation Plan 137063 14313 Culligan/Santa Maria 1,149.36 Drinking Water & Car Wash Filtration & Soft Water Tank Mar 2026 137064 12628 Dell Marketing LP 1,154.72 Computer Accessories 137065 13675 Michael Drew Devine 25.00 PRBC Meeting Stipends Q1 2026 137066 15253 Raul Diaz 1,500.00 Encroachment Permit Bond Release - 154 La Puesta Del Sol 137067 12123 Farm Supply 8.69 WWTP Lab Supplies
137068 15213 Flex Technology Group LLC 6,601.75 Office Supplies & Monthly Copier Usage Dec 2025 & Jan 2026 & Feb 2026
137069 13401 Rebecca Forcier 297.00 M&IE: CMO Meetings & 'Cuz We're Pismo 5/3-5/8/26 137070 14532 Emily France 344.00 M&IE: Laserfiche Empower 4/26-4/30/26 137071 15250 Marvin Goodwin 450.00 PSF Fire Hose Benches 137072 13083 Anne Grannis 287.46 Instructor: Back to Sewing Session 2: 2/26-4/2/26 #11859 137073 13588 Kenneth John Guge III 160.00 Instructor: Central Coast Judo 2/2-3/30/26 #11879 137074 15248 Guy Contracting Inc 10,000.00 CJPIA Deductible: Blair Field Score Booth Storm Damage Repair 137075 10376 Hinderliter, de Llamas & Associates 922.10 Audit Services 137076 11706 Shirley Horacek 608.00 Instructor: Watercolor 3/25-4/1/26 #11823 137077 14465 Ian Huff 205.00 M&IE: Laserfiche Empower 2026 4/27-4/30/26 137078 12018 Erica Inderlied 339.00 M&IE: Laserfiche Empower 2026 4/27-4/30/26 137079 12100 David Jewell 150.00 Commissioner Stipends Q1 2026 137080 12083 Daniel Johnson 291.00 M&IE: CRWA EXPO 2026 4/27-5/1/26 137081 15035 Ian Roxie Journey 50.00 Commissioner Stipends Q1 2026 137082 15003 Daniel Keen 12,500.00 Facilitation of City Manager's 2026 Performance Evaluation 137083 12096 Lee Wilson Electric Co Inc 472.50 Signal Light Repairs & Maintenance - January 2026 137084 15249 Jennifer Luongo 15.25 Processing Fee Refund - Cancelled Rec Class #11865 137085 14674 McGrath Rentcorp 4,289.34 3 Temporary Trailers 330 Main St. - Lease 3/25/26 - 4/23/26 137086 UB*01265 Tommy Mcguire (T)62.43 Refund Check 016675-000, 253 LEEWARD 137087 15017 Mid-Coast Fire Protection, Inc 1,844.71 Backflow Repairs 137088 14739 Mike's Coffee and Tea Co.128.00 Coffee
137089 10097 Miners Hardware 402.94 Maintenance Supplies 137090 14405 Mission Linen Supply 4,987.02 Uniforms/Floor Mats/Towels - Mar 2026 137091 10039 New Times 496.00 Legal Advertisement
137092 15066 Nichols Consulting Engineers, CHTD 38,831.53 2026 Roadway Maintenance Design & Slurry Seal - Feb 2026 137093 11119 Sandra Nielsen 25.00 Commissioner Stipends Q1 2026 137094 14679 Austin O'Dell III 50.00 Commissioner Stipends Q1 2026 137095 14343 ODP Business Solutions, LLC 135.00 Office Supplies 137096 12315 Pacific Gas & Electric Company 15,472.14 Electricity - Mar 2026 137097 UB*01261 Pacific Investment Realty 126.57 Refund Check 007272-001, 1851 SHELL BEACH 137098 14102 Peak WiFi LLC 739.55 Internet Service - Apr 2026 137099 12912 Pegboard 308.75 Office Supplies
137100 14740 Premier Supply, LLC 412.72 Maintenance Supplies 137101 14079 Clare Malone Prichard 150.00 Commissioner Stipends Q1 2026 137102 12335 Procare Janitorial Supply Inc 2,140.61 Janitorial Supplies 137103 10817 PRP Co Dba PRP Companies 334.10 Printing Services 137104 UB*01264 JOHN REYNOSO 199.74 Refund Check 009532-000, 731 VISTA PACIFICA 137105 14294 Richard D. Jones, A Professional Law Corporation 24,704.00 Legal Services City Attorney - Mar 2026 137106 14613 Dennis Richardson 560.00 Instructor: Tennis with Dennis 3/7-3/28/26 #11902 City of Pismo Beach
Final Disbursement List Check Date 04/17/2026

US BANK
Council Agenda 5-5-2026 9.B-3
Attachment 2
Packet Page 12

ACH/ Vendor Check
Check# Number Payee Amount Description
City of Pismo Beach
Final Disbursement List Check Date 04/17/2026

US BANK
137107 10904 Ron Rodriguez 25.00 Commissioner Stipends Q1 2026 137108 14320 Joey Salazar 291.00 M&IE: CRWA EXPO 2026 4/27-5/1/26 137109 11266 San Luis Auto Parts Inc 16.71 Vehicle Maintenance 137110 14853 Robert Silvani 1,924.00 Instructor: Shell Beach Surf Camp 4/7-4/9/26 #11869 137111 10913 Siteone Landscape Supply LLC 20.67 Maintenance Supplies 137112 14387 Jake Smith 291.00 M&IE: CRWA EXPO 2026 4/27-5/1/26 137113 14099 Jeffrey Smith 303.00 M&IE: City Leaders Summit & Apr Board of Directors 4/22-4/25/26 137114 13860 South County Chambers of Commerce 30.00 Reg: S. County Chamber Meeting 4/8/26 137115 13860 South County Chambers of Commerce 500.00 Leadership Day Sponsor May 2026 Tourism Day 137116 14795 James Summer 100.00 Commissioner Stipends Q1 2026 137117 12078 Jason Takagi 205.00 M&IE: Laserfiche Empower 2026 4/27-4/30/26 137118 11549 Tech Time Communications 225.00 Quarterly Alarm Monitoring - Station 63 - 2026 Q2 137119 12461 TJA Advertising 178,757.54 LBID Advertising and Promotion Services - Jan 2026 137120 12301 TK Elevator 617.39 Facilities Maintenance
137121 10843 Troesh Recycling Inc 48.90 Recycling
137122 14283 Josh Tyler 706.88 Photography Services
137123 10014 United States Postal Service 370.00 Postage 137124 13951 Carlos Valentin Gonzalez 541.80 Portable Restrooms - Tennis Courts 2/28/26 - 3/28/26 137125 14034 Vital Records Holdings, LLC 198.74 Document Storage Apr 2026 137126 15004 W.M. Lyles 59,913.65 Clarifiers Equipment Replacement - Retention Release 137127 14910 Brianna Whisenhunt 532.05 M&IE/Mileage: Laserfiche Empower 4/26-4/30/26 Whisenhunt 137128 12132 White Flag Pest Control Inc 745.00 Facilities Maintenance 137129 13372 Stephanie Wilson 532.78 M&IE/Mileage: Laserfiche Empower 4/26-4/30/26 S Wilson 137130 14020 Daniel Barrett Wrage 1,120.00 Instructor: Beach Volleyball Spring Break Camp 4/6-4/9/26 #11866 Total:410,829.34$
Council Agenda 5-5-2026 9.B-4
Attachment 2
Packet Page 13

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.C
Meetin Date: Ma 5, 2026
TITLE:

Monthly Investment Transaction Report of the City’s Cash and Investments for March 2026 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 March 31, 2026. 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 March 31, 2026. 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 March 31, 2026.

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 5-5-2026 9.C-1
Packet Page 14

City of Pismo Beach
Investment Name Name of Institution Type of Investment
Current
Earnings
Rate Book Value
Actual Interest
Earned March
2026
Actual Year-to-
Date Interest
Earned Ending
3/31/2026 * Data Sources
General Fund Reserves US Bank CDs/GASs/Corp
Bonds/Treasuries

3.23% avg 8,817,030 38,865$ 196,678$ 1
City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ MBSs/
Treasuries

3.45% avg 50,202,186 229,123 1,045,298 1
Total All Securities 59,019,216$ 267,988$ 1,241,976$ City Pooled Funds - B US Bank Custody 4.17%173,148$ 3,964$ 17,410$ 1 City Pooled Funds - B Local Agency Invest.

Fund (LAIF)
State Investment
Pool

3.98%10,424,301 63,051 72,028 2
City Pooled Funds - B PFM Asset Mgmt
CAMP
JPA Investment Pool 3.80%5,484,847 17,622 412,705 3 City Pooled Funds - B US Bank Checking & Sweep 3.28%14,991,705 31,808 344,537 4 City Pooled Funds - B 31,074,001$ 116,445$ 846,681$ City Pooled Funds total A + B 81,276,186$ 345,568$ 1,891,979$ Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 Pier Project 1,216$ 3$ 1,342$ 5
Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 CREB's
Project
1,009 3 1,010 5
Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2024 Public Safety
Facility
4,379,324 37,207 801,171 5
CalPERS Benefit Trust
OPEB Trust Account CalPERS Benefit Trust
Account
Various managed by
CalPERS
6,259,070$ 5,574$ 440,453$ 6
TOTAL, Cash and Investments at March 31, 2026:100,733,836$ 427,219$ 3,332,634$ TOTAL for City Managed Portfolio, Cash and Investments:90,093,217$ 384,433$ 2,088,657$ 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 5-5-2026 9.C-2
Attachment 1
Packet Page 15

CITY OF PISMO BEACH
Attachment 2: For the General Fund Reserve and City Pooled Funds A Transactions on Investments in Securities
March 31, 2026

INVESTMENT ACTIVITY

PURCHASES OR DEPOSITS
03/05/26 Purchase US Treasury 1,101,848$
03/06/26 Purchase FHLMC Multiclass Mtg 594,712
03/09/26 Purchase Abbott 474,397
03/11/26 Purchase US Treasury 408,922
03/13/26 Purchase Amazon 594,069
03/13/26 Purchase Toyota Mtr Cr Mtn 429,845
03/16/26 Purchase UBS Ag Stamford 250,000
03/18/26 Purchase Novartis Capital 249,900
Total 4,103,692$

SALES, MATURITIES, CALLS OR WITHDRAWALS
03/04/26 Sold US Treasury 554,727$
03/11/26 Sold US Treasury 39,573
03/11/26 Sold US Treasury 84,844
03/11/26 Sold US Treasury 203,198
03/12/26 Sold US Treasury 237,461
03/12/26 Sold US Treasury 555,092
03/12/26 Sold US Treasury 119,503
03/18/26 Sold US Treasury 204,275
03/25/26 Paid Down FHLMC Multiclass Mtg 431
03/25/26 Paid Down FHLMC Multiclass Mtg 76
03/25/26 Paid Down FHLMC Multiclass Mtg 20,237
03/25/26 Paid Down FHLMC Multiclass Mtg 13,325
03/25/26 Paid Down FHLMC Multiclass Mtg 10,154
03/25/26 Paid Down FHLMC Multiclass Mtg 91
03/25/26 Paid Down FHLMC Multiclass Mtg 504
03/25/26 Paid Down FNMA Gtd Remic 186
03/25/26 Paid Down FNMA Gtd Remic 739
03/25/26 Paid Down FNMA Gtd Remic 478
03/25/26 Paid Down FNMA Gtd Remic 1,424
Total 2,046,317$
ACTIVITY TOTAL 2,057,375$

INTEREST REVENUE

GENERAL FUND RESERVE INVESTMENTS
Interest Earned on Investments 38,865$

POOLED INVESTMENTS
Interest Earned on Investments 229,123$
TOTAL INTEREST EARNED 267,988$
Data Source: Monthly Download of Transactions from US Bank Council Agenda 5-5-2026 9.C-3
Attachment 2
Packet Page 16

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: 3/31/2026 Bank Account Description Bank ID Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance General Checking US Bank 9,056,405$ 13,919,002$ (7,983,703)$ -$ -$ 14,991,705$ LAIF LAIF 10,424,301 - - - - 10,424,301 PFM Asset Management LLC CAMP 5,467,225 17,622 - - - 5,484,847 Total all Bank Accounts 24,947,931$ 13,936,624$ (7,983,703)$ -$ -$ 30,900,853$ Fund Description Fund # Be innin Balance Cash Recei ts Disbursements Transfers-In Transfers-Out Endin Balance General Fund
General Fund 1001-10101 3,869,150 2,735,966 (1,797,633) - - 4,807,482 General Fund-Reserve 1001-10105 54,957 183,040 - - - 237,997 Transaction Sales Tax Fund 1002 2,821,168 1,178,284 - - - 3,999,451 Special Revenue Funds
Gas Tax Fund 2001 637,359 (104,081) - - - 533,278 LTF - Streets 2002 608,308 367 - - - 608,675 PEG Access Fund 2003 157,045 (230) - - - 156,816 Police Grant Fund 2004 211,955 2,855 - - - 214,810 Housing In Lieu Fund 2005 303,256 104 - - - 303,360 LBID Fund 2006 1,765,473 (903,501) (92,032) - - 769,940 Chapman House 2007 844 961 (1,241) - - 564 Capital Projects Funds
Capital Projects Fund 3001 (3,489,521) 9,806,905 (5,045,279) - - 1,272,105 Public Facilities Fund 3002 979 1 - - - 980 Park Development Fund 3003 306,283 18,959 - - - 325,242 Circulation Fund 3101 629,435 20,392 - - - 649,827 Development Impact Fee Fund 3102 67,213 34,495 - - - 101,708 Developer Impact Fee Fund 3103 186,424 136 - - - 186,560 Underground Utility Fund 3201 18,430 13 - - - 18,444 Council Agenda 5-5-2026 9.C-4
Attachment 3
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: 3/31/2026 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 853 1 - - - 853 Spyglass AD Fund 4102 14,196 10 - - - 14,207 Indio-El Portal AD Fund 4112 824 1 - - - 825 Visalia Street AD Fund 4113 12,767 9 - - - 12,776 Enterprise Funds
Water Enterprise/Tax Fund 6101/6102 5,588,571 321,403 (142,168) - - 5,767,806 Water Construction Fund 6103 958,536 200,697 - - - 1,159,233 Water Expansion Fund 6104 655,458 56,948 - - - 712,407 Water Central Coast Blue JPA 6105 7,457 632 - - - 8,090 Wastewater Enterprise Fund 6201 714,324 40,023 (225,137) - - 529,210 Wastewater Construction Fund 6202 2,137,343 159,613 (72,158) - - 2,224,797 Wastewater Expansion Fund 6203 648,638 39,241 - - - 687,880 Wastewater CCB JPA 6204 15,416 1,284 - - - 16,700 LTF - Transit Fund 6301 - - - - - - Pier Operations Fund 6401 2,153 4,430 (6,211) - - 371 Parking Fund 6501 2,462,121 (781,095) (27,012) - - 1,654,014 Internal Service Funds
Technology Service Fund 7101 363,225 188,643 (83,978) - - 467,890 Motor Vehicle Fund 7201 1,037,175 157,034 (45,964) - - 1,148,245 Trust & Agency Funds
SLO County TMD 8201 102,171 116,828 (101,105) - - 117,894 Control Funds
Payroll Control Fund 9301 1,791,919 1,051 73,384 - - 1,866,355 Interest Control Fund 9302 103,137 30,273 - - - 133,410 Utility Billing Control Fund 9304 182,887 7,762 - - - 190,649 M/R Control Fund 9305 - - - - - - Total all cash funds 24,947,931 13,519,455 (7,566,533) - - 30,900,853 Council Agenda 5-5-2026 9.C-5
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: 3/31/2026 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 1,236,240 (1,215,161) - - - 21,079 General Fund - CD's 1001-10404 3,625,033 - - - - 3,625,033 General Fund - Fed Agency 1001-10405 2,799,000 - - - - 2,799,000 GF Reserve Money Mkt Cash 1001-10109 260,485 (167,015) - - - 93,470 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 3,270,918 474,397 - - - 3,745,314 GF Corp Bond - Reserve 1001-10145 2,028,028 584,364 - - - 2,612,392 GF Municipal Bonds Pooled 1001-10142 - - - - - - GF Municipal Bonds Reserve 1001-10143 - - - - - - Risk Mgmt Muni Bonds Reserve 1001-10144 - - - - - - GF Treasury Note 1001-10410 7,210,420 (171,977) - - - 7,038,444 GF Treasury Bill 1001-10411 - - - - - - GF Mortgage Back Sec 1001-10412 4,654,027 (32,326) - - - 4,621,702 GF Reserve Treasury Note 1001-10413 1,263,764 (555,092) - - - 708,672 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 24,559 (22,287) - - - 2,272 Transaction Sales Tax - Pooled 1002-10141 1,526,354 250,000 - - - 1,776,354 Transaction Sales Tax - Muni Bo 1002-10142 - - - - - - Transaction Sales Tax Treasury 1002-10410 1,642,073 (237,461) - - - 1,404,613 Transaction Sales Tax Treas Bill 1002-10411 - - - - - - Transaction Sales Tax Mortg Bac 1002-10412 739,414 - - - - 739,414 Special Revenue Funds
Housing In Lieu - Mny Mkt Csh 2005-10108 1,944 154 - - - 2,098 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 6,578 (6,272) - - - 307 LBID Fund - Treasury Note 2006-10410 242,878 1,062,274 - - - 1,305,152 LBID Fund - Pooled 2006-10141 1,489,219 - - - - 1,489,219 LBID Fund Mortgage Back Sec 2006-10412 816,055 (13,325) - - - 802,730 Capital Projects Funds
Capital Proj Fund Mny Mkt Cash 3001-10108 28,258 (22,636) - - - 5,622 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 6,155 (4,053) - - - 2,102 Development Impact Fee Fund 3102-10404 245,000 - - - - 245,000 Impact Fees Federal Agencies 3102-10405 - - - - - - Council Agenda 5-5-2026 9.C-6
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:3/31/2026 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 14,057,355 (9,678,031) - - - 4,379,324 Public Fin Fiscal Agent-Pier 4002-10510 1,213 3 - - - 1,216 Public Fin Fiscal Agent-PSF 4002-10511 - - - - - - Public Fin Fiscal Agent-CREBs 4002-10515 1,007 3 - - - 1,009 Visalia Street AD Fund 4113-10108 2,374 360 - - - 2,734 Visalia Street CD's 4113-10404 100,000 - - - - 100,000 Enterprise Funds
Water Fund Money Mrkt Csh 6101-10108 242,738 (238,793) - - - 3,945 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 2,492,566 - - - - 2,492,566 Water Fund Treasury Note 6101-10410 1,584,497 (111,026) - - - 1,473,471 Water Construction Money Mkt 6103-10108 9,785 63 - - - 9,848 Wtr Constr. Fd Corp Bond-Pool 6103-10141 504,363 - - - - 504,363 Water Construction 6103-10404 - - - - - - Wtr Constr. Fd Treasury Note 6103-10410 405,188 - - - - 405,188 Water Expansion Fd Mny Mkt Ca 6104-10108 34,494 (33,277) - - - 1,217 Wtr Expansion Fund - Pooled 6104-10141 - - - - - - Water Fund Treasury Note 6104-10410 21,960 (1,697) - - - 20,263 Wastewater Fund Money Market 6201-10108 2,971 (2,835) - - - 136 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 895,392 - - - - 895,392 WWtr Fund Treasury Note 6201-10410 884,192 (268,651) - - - 615,542 WWtr Fund Mortgage Back Sec 6201-10412 - 594,712 - - - 594,712 Wastewater Fund Bank Note 6201-10414 553,085 - - - - 553,085 Wastewater Expansion Fund Mn 6203-10108 21,440 5,079 - - - 26,519 WWtr Expansion Fd Mortgage B 6203-10412 1,094,546 (1,424) - - - 1,093,123 Parking Enterprise Money Mrkt 6501-10108 21,901 (20,972) - - - 930 Parking Fund Corp Bond-Pooled 6501-10141 - 429,845 - - - 429,845 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 25,497 (24,627) - - - 870 MVR Corp Bond - Pooled 7201-10141 637,390 259,605 - - - 896,995 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 (204,275) - - - 363,156 MVR Mortgage Back Securities 7201-10412 951,759 (569) - - - 951,190 CalPers Benefit Trust
OPEB Trust Account 8101-10408 6,254,602 4,467 - - - 6,259,070 Total all Investments 79,201,438$ (9,368,455)$ -$ -$ -$ 69,832,983$ Total all Funds 104,149,369$ 4,151,001$ (7,566,533)$ -$ -$ 100,733,836$ Council Agenda 5-5-2026 9.C-7
Attachment 3
Packet Page 20

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.D
Meetin Date: Ma 05, 2026

TITLE:

Update on January 9, 2023 and January 12, 2017 Emergency Proclamations

RECOMMENDATION:

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

2. Provide direction to staff if desired.

DISCUSSION:

Chapter 2.32 of the Pismo Beach Municipal Code empowers the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by an emergency and the City Council is not in session. An emergency exists when conditions are beyond the control of the services, personnel, equipment, facilities, and existing laws of the City. The declaration is an acknowledgement of the need for additional resources and expedited procedures to deal with the emergency. The Director of Emergency Services’ declaration is subject to City Council ratification within seven days.

Currently active Emergency Declarations are those ratified by Resolution R-2023-001 on January 11, 2023, relating to winter storm damage, and by Resolution R-2017-012 on January 17, 2017, relating to winter storm damage. In accordance with Government Code Section 8630, the City Council is required to review the need for continuing the local emergency at least once every 60 days until the emergency is terminated. The following status report is provided for the Council’s information. No action is recommended, but direction may be given to staff if desired.

January 11, 2023 Proclamation: Winter Storms
The City Council declared a state of emergency on January 11, 2023, via Resolution R- 2023-0011, ratifying the Emergency Services Director’s proclamation of a local emergency in response to the January 2023 winter storms. On January 9, 2023, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Newsom for the region. On January 14, 2023 President Biden approved a major disaster declaration for the January storms, making federal disaster aid available.

The storms, which began the first week of January, took a toll on the community, causing conditions of peril to the safety of persons and property due to flooding, bluff erosion, strong winds and other storm related damages.

Summary of Current Events
The Pier Avenue Storm Drain Outfall site has been approved by the Federal Emergency Management Agency (FEMA) for a permanent repair project to replace the outfall pipe that was washed away during the storm. The City has received $620,838.75 in funding for completion of the repair project and construction documents are being finalized. Staff

1 Full URL:
https://portal.laserfiche.com/Portal/DocView.aspx?id=459337&repo=r-f36a9aa0 Council Agenda 5-5-2026 9.D-1
Packet Page 21

has also submitted a request for reimbursement of management costs that were incurred working on the disasters. The City is eligible to receive 5% of total obligations, approximately $35,000, which will be disbursed after the Pier Avenue project has been constructed. Staff anticipates advertising for construction bids in May 2026.

January 12, 2017 Proclamation: Winter Storms
The Pismo Beach City Council declared a state of emergency on January 12, 2017, via Resolution R-2017-0122, in response to the January 2017 winter storms. Shortly after the Council’s declaration, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Jerry Brown for the region. On February 14, 2017 and March 16, 2017 the President declared a major disaster for the early and late January storms, making federal disaster aid available. The storms, which began the first week of January, took a toll on the community, culminating with a Caltrans storm drain failure on Highway 101, which caused flooding of two hotels on Price Street, blockage of the City’s Franklin storm drain outfall and debris scattered along Highway 101, Price Street and sidewalk, on Franklin Drive and various private parcels on January 20, 2017.

Summary of Current Events
The Cliff/Ocean Storm Drain project’s “Advanced Construction” funding was converted to federal funds on April 8, 2026 and is now available for reimbursement. An agreement for CM services was approved in March 2026. Construction documents are being finalized and staff anticipates advertising for construction bids in May 2026.

FISCAL IMPACT:

There is no direct fiscal impact from this report.

January 2023 Winter Storms
The cost of damage from the January 2023 storms is estimated to be about $26 million.

January 2017 Winter Storms
The cost of damage from the January 2017 storms is approximately $12 million.

ATTACHMENTS:

None.

Prepared by: Erin Olsen, Senior Management Analyst
Submitted by: Erica Inderlied, City Clerk
City Manager Approval:
2 Full URL: https://portal.laserfiche.com/Portal/DocView.aspx?id=107586&repo=r-f36a9aa0 Council Agenda 5-5-2026 9.D-2
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.E
Meetin Date: Ma 5, 2026

TITLE:

Fiscal Year 2026 Third 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 nine months of the fiscal year.

The City of Pismo Beach’s financial outlook remains stable, with fund balances at sufficient levels. The General Fund’s unassigned ending balance for FY 2026 is estimated at $5.34 million, a decrease of $6.55 million compared to FY 2025. This decline is largely due to the planned use of fund balance for capital projects, including the Public Safety Facility, as well as a projected $1.28 million operating deficit and a $1.0 million discretionary payment to CalPERS to reduce the City’s unfunded pension liability. Both of these items are funded from the beginning unassigned 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 nine months of the fiscal year, the General Fund is projected to end FY 2026 with a $5.34 million unassigned fund balance.

The FY 2026 projected $5.34 million unassigned fund balance is $2.15 million less than the FY 2026 Revised Budget. This decrease is attributable to $3.47 million in fewer one- time revenues, offset by an additional $185 thousand in operating revenues and $1.13 million in net operating expenditure savings 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.

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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.

Table 2: FY 2026 General Fund, Beginning Fund Balance

A B C D = C - B
($ thousands)
FY 2025
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 35,425 33,901 34,086 185 c Operating Expenditures 29,014 36,499 35,367 (1,131) d = b - c Net Operating Surplus/(Deficit) 6,412 (2,598) (1,281) 1,316 e One-time Revenues 340 3,815 349 (3,467) f One-time/Capital Expenditures 4,077 17,470 10,595 (6,875) g =
a+d+e-f Ending Fund Balance 27,314$ 9,996$ 14,721$ 4,724$ Unassigned Fund Balance 11,892$ 7,270$ 5,120$ (2,150)$ Committed Fund Balance 15,244 - 6,875 6,875 Contribution to Reserves (1,822) 726 726 - Budget Stabilization Set-Aside 2,000 2,000 2,000 - ($ 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
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III. General Fund Reserve
The City maintains various General Fund reserves totaling $9.15 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 $8,398
Cit Buildin Reserve 500
Risk Mana ement Reserve 250
Total $9,148

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 $9.13 million, which is 25% of the total FY 2026 budgeted annual operating expenditures of $36.50 million. Currently, the General Fund Reserve is $8.40 million, of which $8.07 million is invested in various securities and $331 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 $726 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.

IV. General Fund Revenues
The FY 2026 Revised Budget includes total revenues of $37.72 million, with actual revenues anticipated to reach $34.44 million, which is $3.28 million less than budgeted.

Compared to FY 2025, the FY 2026 projected actual revenues are expected to decrease by $1.33 million, or 3.7%. This year-over-year decrease is primarily driven by fewer Other Revenues ($931 thousand), Transient Occupancy Tax (TOT) revenues ($464 thousand), and Transfers In from other funds revenues ($256 thousand). These declines are partially offset by a $606 thousand increase in permit 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 Council Agenda 5-5-2026 9.E-3
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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 $382 thousand short of the budget and $464 thousand, or 3.1%, 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. The projected decrease in TOT revenues 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 2.7% during the first seven months of the fiscal year, with an additional projected average monthly increase of 2.2% for the remainder of FY 2026 compared to FY 2025. Chart 1 further illustrates actual 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$ 14,715$ (382)$ (464)$ -3.1% 42.7% Property-Related Taxes 7,740 7,655 7,759 104 18 0.2% 22.5% Sales and Use Tax 4,096 3,974 3,944 (30) (153) -3.7% 11.5% Other Revenues 4,015 2,854 3,084 231 (931) -23.2% 9.0% Permits 1,184 1,756 1,790 34 606 51.2% 5.2% Other Taxes 1,274 1,271 1,287 16 14 1.1% 3.7% Transfers In 1,126 920 870 (50) (256) -22.7% 2.5% Departmental Revenues 357 293 299 5 (59) -16.4% 0.9% Fees, Grants, Intergovernmental 454 81 338 257 (116) -25.6% 1.0% Total Operating Revenues 35,425$ 33,901$ 34,086$ 185$ (1,339)$ -3.8% 99.0% One-time Revenues 340 3,815 349 (3,467) 9 2.5% 1.0% Total Revenues 35,766$ 37,716$ 34,435$ (3,281)$ (1,331)$ -3.7% 100.0% Council Agenda 5-5-2026 9.E-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 decreased slightly by 1.0% while average daily room rates increased marginally by 0.9% during the first seven months of the fiscal year compared to the same period last year.

Based on these trends and early indicators for March TOT, staff projects that TOT revenues will reach $14.72 million, representing a $382 thousand shortfall from the budgeted amount, and a 3.1% decrease, or $464 thousand decrease, from the previous year's TOT revenues.

 Property-related tax revenues are projected to be $104 greater than budget and $18 thousand, or 0.2%, 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.

$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
TO
T

A
m
o
u
n
t
FY 2025
FY 2026
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 Sales and Use Tax revenues are projected to be $30 thousand less than budget and $153 thousand, or 3.7%, 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 $30 thousand less than budget expectations, and fall short of the prior year’s revenues by $153 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 $3.94 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 $30 thousand less than budget and $153 thousand, or 3.7%, less than the prior year.

 Other Revenues are projected to come in $231 thousand greater than budget but $931 thousand, or 23.2%, lower than the previous year. This category includes fines and 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 $-
$100,000
$200,000
$300,000
$400,000
$500,000
Sa
l
e
s

T
a
x

A
m
o
u
n
t
FY 2025
FY 2026
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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.

 Transfers In from other funds are projected to be $50 thousand less than budget and $256 thousand, or 22.7%, less than the prior year. The year-over-year decrease is primarily due to one-time transfers recorded in FY 2025 that will not recur in FY 2026.

These include $101 thousand in impact fees transferred to the General Fund for capital projects, as well as $170 thousand from the Lodging Business Improvement District (LBID) Fund. This LBID transfer in FY 2025 included $120 thousand for a one- time purchase of Christmas decorations (compared to $41 thousand budgeted for FY 2026) and $50 thousand for beautification, which is not anticipated in FY 2026 unless a public art project is identified.

 Permits are projected to be $35 thousand greater than budget and $606 thousand, or

51.2%, greater than the prior year. This additional $606 thousand compared to 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 $53.97 million and projected actual expenditures total $45.97 million.

Total operating expenditures for the third quarter total should be about 75% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 64% of the operating budget has been spent in the first three quarters, while only 5% of the one-time capital expenditure budget has been spent in the first three 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 75% 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:
 Professional Services, which reflects that 42% was spent in the first three quarters of the year. These costs are based on the timing of work performed and are not set amounts per month. The majority of the savings includes a projected $400 thousand savings in the Cal Fire contract.
 Contract Services, which reflect that 67% of the budget was spent in the first three quarters. Staff anticipates about $333 thousand in savings for the year in contract services based on the current level of spending, mostly in garbage costs, travel and training costs, and risk management and insurance cost savings.  Debt Service, which reflects that 65% was spent in the first three 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 55% was spent in the first half of the year. Staff anticipates about $155 thousand in savings for the year in operations & maintenance based on the current level of spending for weed abatement, major repair and maintenance, and other city-wide operation and maintenance costs.  Other Financing Uses, which includes a $500 thousand general contingency budget and reflects that only 28% of the budget has been spent in the first nine months of the year. This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures.  Retiree Medical Insurance costs, which reflects that 0% of budget was spent in the first three quarters. The monthly costs are payments to Retirees, but the majority of A B C D = C/B E F = B - E
($ thousands)
Expenditure Category
FY 2025
Actuals
FY 2026
Revised
Budget
FY 2026
Third
Quarter
Actuals
Third Quarter
Actuals % of
Budget
FY 2026
Projected
Actuals
Variance
(Revised
Bdgt -
Projected
Actuals)
Proj
Actual
% of
Total
Salaries & Wages 9,606$ 10,861$ 7,618$ 70% 10,861$ -$ 23.6% Benefits 5,585 6,583 5,080 77%6,583 - 14.3% Professional Services 3,995 6,107 2,595 42%5,616 491 12.2% Contract Services 3,330 3,946 2,643 67%3,613 333 7.9% Debt Service 1,934 2,808 1,815 65%2,808 - 6.1% Operations & Maintenance 1,846 2,137 1,172 55%1,982 155 4.3% Other Expenses 1,561 1,943 1,411 73%1,841 102 4.0% Transfers Out 740 1,157 774 67%1,287 (130) 2.8% Other Financing Uses 206 610 174 28%610 - 1.3% Retiree Medical Insurance 182 279 156 0%99 180 0.2% Capital Projects 31 67 52 0%67 - 0.1% Total Operating Expenditures 29,014$ 36,499$ 23,489$ 64% 35,367$ 1,131$ 76.9% One-time Capital Costs 4,077 17,470 953 5% 10,595 6,875 23.1% Total Expenditures 33,091$ 53,969$ 24,442$ 45% 45,963$ 8,006$ 100.0% Council Agenda 5-5-2026 9.E-8
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these payments are contributions to CalPERS for the actuarially determined contribution and are paid toward the end of the fiscal year.

VI. General Fund Contingency Budgets

General Contingency
The FY 2026 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, $81 thousand of this appropriation was allocated for the following purposes as outlined in Table 6, leaving $419 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 three quarters 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)
DeAnza Trail 250th Anniversary @ Price House (10,000)
Total Appropriations (81,343)
Ending Balance as of March 31, 2026 418,657$
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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 34,434,709 45,962,592 (11,527,883) 14,720,849 6,874,740 7,119,948 1002 Transaction Sales Tax Fun 6,213,697 4,063,717 955,982 3,107,735 9,321,432 5,837,068 3,484,365 Special Revenue Funds
2001 Gas Tax Fund 415,924 462,250 142,358 319,892 735,815 150,000 585,815 2002 Local Transportation 551,287 100,912 5,910 95,002 646,288 - 646,288 2003 PEG Fund 144,882 32,699 9,123 23,576 168,458 26,790 141,668 2004 Grants-NonCapital 159,648 185,008 290,943 (105,935) 53,713 - 53,713 2005 Housing In-Lieu Fee 624,286 10,469 60,609 (50,140) 574,146 - 574,146 2006 LBID Operations 594,006 1,400,732 1,603,985 (203,253) 390,753 - 390,753 2006 LBID Improvements 2,962,756 1,400,732 116,378 1,284,354 4,247,110 - 4,247,110 2007 Chapman Estate 5,781 29,033 33,989 (4,956) 825 - 825 Capital Project Funds
3001 Capital Projects 26,384,359 33,173,404 33,173,404 - 26,384,359 26,384,359 - 3002 Public Facilities Fund 957 - - - 957 - 957 3003 Park Development Fund 319,803 26,805 33,554 (6,749) 313,055 82,193 230,862 3101 Circulation Fees 621,728 35,089 6,995 28,094 649,822 - 649,822 3102 Impact Fees 314,716 75,093 702 74,391 389,107 239 388,868 3103 Developer Impact Fee 65,179 4,465 - 4,465 69,643 - 69,643 3201 Underground Utility Fnd 18,003 441 - 441 18,444 - 18,444 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 6,471,873 6,105,770 366,103 12,747,011 12,747,011 - 6102 Water Tax (Lopez/State) 668,445 1,924,378 2,589,202 (664,824) 3,622 3,622 - 6103 Water Construction Fund 1,824,652 395,825 161,580 234,245 2,058,897 2,058,897 - 6104 Water Expansion Fund 692,250 88,067 - 88,067 780,318 780,318 - 6105 Water Central Coast Blue 3,314 6,560 6,796 (236) 3,078 3,078 - Water Enterprise Funds 15,569,570 8,886,704 8,863,348 23,356 15,592,926 15,592,926 - 6201 Wastewater Treatment 6,228,768 6,552,621 7,564,530 (1,011,910) 5,216,858 5,216,858 - 6202 Wastewater Capital Proj 2,070,776 1,533,062 1,445,576 87,487 2,158,263 2,158,263 - 6203 Wastewater Expansion 1,736,936 172,378 - 172,378 1,909,314 1,909,314 - 6204 Wastewater Central Coas 6,730 13,513 13,526 (13) 6,717 6,717 - Wastewater Enter rise Fu 10 043 210 8 271 574 9 023 63 752 057 9 291 152 9 291 15 - 6401 Pier Enterprise - 114,465 114,465 - - - - 6501 Parking Enterprise 2,349,888 3,565,326 3,129,226 436,099 2,785,987 2,785,987 - Internal Service Funds
7101 Technology Service Fund 756,938 2,462,470 2,390,719 71,751 828,689 - 828,689 7201 Motor Vehicle Fund 4,617,476 2,441,142 2,394,316 46,826 4,664,302 - 4,664,302 Council Agenda 5-5-2026 9.E-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 $956 thousand. After carrying forward $5.84 million to FY 2027, there is a $3.48 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 $ 75,960 Ventana Sports Courts 1,000,000 107,774 Routine Street Maintenance 1,000,000 - Signalize Bello/Price Canyn Rd 489,000 - Ocean Blvd Improvements 435,860 - Dino Caves/Cliff Ave Parking 400,000 143,624 Cliff/Ocean Utility Undergounding 301,263 250,000 Price/Ocean View Improvements 250,000 46,930 ADA Transition Plan Update 132,600 14,700 Downtown Sidewalk Repair 123,000 123,000 Eldwayen Park Sidewlk Re-route 120,000 120,000 Vista Del Mar Stair Foundation 100,000 - Boosinger Park Softfall 75,000 - Trash Cans at Bus Stops 60,000 44,994 Ongoing Trash pick up at 17 Bus stops 29,000 29,000 Total $ 6,793,049 $ 955,982
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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 $462 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 $586 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 $101 thousand and projected actual expenditures are $6 thousand.

Based on the projected revenues and expenditures for the current year, there is a $646 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 $33 thousand and projected expenditures of $9 thousand, the PEG Fund is expected to end the year with a $142 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 $574 thousand 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 $1.40 million. Operating expenditures are projected at $1.60 million. The fund is expected to end the year with a $391 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 $1.40 million. Expenditures include $116 thousand for various projects, including sponsorships of events, Holiday decorations, and the Butterfly Grove Trail Council Agenda 5-5-2026 9.E-12
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Signage project. The fund is expected to end the year with a $4.25 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 two more years. The beach cleaning equipment is on hold pending a Coastal Commission hearing in May for a conditional use permit. Staff is working to have the Butterfly Grove signage placed in areas where Highway 1 is not impacted.

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 $27 thousand 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 $231 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 $6.47 million and expenditures are projected to be $6.11 million.

LBID2 Improvements FY 2026 Budget
FY 2026 Projected
Actuals
Addie Street Restroom Improvements $ 1,196,835 $ 378 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 25,000 Holiday Decorations 41,000 41,000 Beautification 50,000 - Pismo Beach Information Center 50,000 - Stewardship Banner Program 20,000 - Total $ 2,667,835 $ 66,378 Council Agenda 5-5-2026 9.E-13
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The projected ending fund balance for the Water Enterprise Fund is $12.75 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 $15.59 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 $6.55 million and expenditures are projected to be $7.56 million. The estimated ending fund balance is $5.22 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 $9.29 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 supported by revenues from parking kiosks, citations, and permits. These revenues fund staffing, including a Parking Supervisor and Parking Enforcement Officer, and support implementation of the Pismo Beach Parking Management Plan. The Fund is used to improve the efficiency of existing parking operations, enhance enforcement and management, expand downtown parking availability, and build reserves for future parking infrastructure, including potential parking structures. Revenues are projected to reach $3.57 million and operating expenditures are projected to be $1.85 million. As shown in Table 10, in addition to operating expenditures, the budget includes $657 thousand for one-time projects. One planned project is the Council Agenda 5-5-2026 9.E-14
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development of a parking lot at 320 and 330 Main Street once the temporary modular Police Department facilities are removed following the transition to the new Public Safety Facility. The current budget includes $150 thousand for a temporary dirt and gravel lot.

However, based on recent discussions, staff estimates that approximately $900 thousand will be needed to fully pave and complete the lot. Staff plans to return to Council during the Mid-Cycle Budget review in August 2026 to request the additional funding. Of these projects, staff projects that $1.28 million will be spent in FY 2026. The FY 2026 projected ending fund balance is $2.79 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 150,000 900,000
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 4,855 3,864
Total 656,637$ 1,275,646$
Council Agenda 5-5-2026 9.E-15
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.F
May 5, 2026
TITLE:

Quarterly Investment Report for the Three Months of January through March 2026 –the Third 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 March 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 March 31, 2026.
•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 March 31, 2026 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 $8.82 million, earning 3.23% 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 5-5-2026 9.F-1
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should be $9.05 million, which is 25% of the FY 2026 budgeted annual operating expenditures. Currently, $8.07 million is invested in various CDs, GASs, Corp Bonds, and Treasuries earning 3.32% on average per year and $98 thousand is pending investment.
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 $50.20 million in various CDs, GASs, Corp Bonds, MBSs, and Treasuries that mature at various periods over the next five years and have a 3.45% 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 March 31, 2026, the City-Pooled Funds B are allocated or invested as described below.
•$14.99 million in U.S. Bank Checking & Sweep: This account is the City’s primary checking and sweep account, where the account earned on average 3.28%. •$10.42 million in Local Agency Investment Fund (LAIF): LAIF is a State investment pool earning 3.96% annually and is the City’s secondary savings account where the majority of cash is held for current year expenditures. •$5.48 million in PFM Asset Management California Asset Management Program (CAMP) Pool is a California Joint Powers Authority (JPA) is a State investment pool earning 3.80% annually and is the City’s main savings account where the majority of cash is held for current year expenditures.
•$173 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.

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 Council Agenda 5-5-2026 9.F-2
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receive employer contributions that prefund retiree health and other post-employment 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 March 31, 2026 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 March 31, 2026
Financial Instrument
Maximum
%
Book Value as
of 3/31/26
% of
Portfolio
Council Agenda 5-5-2026 9.F-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
Corporate
Bond, 17%
Checking
Account, 17%
Treasury
Notes, 15%
Negotiable
Certificates of
Deposit, 12%
Local Agency
Investment
Fund, 12%
US
Government
Agency
Obligations,
11%
Mortgage
Backed
Securities, 10%
PFM Asset
Mgmt CAMP,
6%Bank Note, 1%
Chart 1: Investment Portfolio as of March 31, 2026
Liquidity Amount
0 to 30 days 31,074,001$
FY 2026 5,000,000
FY 2027 9,170,363
FY 2028 12,879,779
FY 2029 14,577,837
FY 2030 8,448,647
FY 2031 8,942,590
90,093,217$
Council Agenda 5-5-2026 9.F-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 March 31, 2026, the City’s total book value of cash and investments was $100.73 million. This is $6.70 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 March 31, 2026 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
TOTAL 100,733,836$ 107,437,736$ (6,703,901)$
Council Agenda 5-5-2026 9.F-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 March 31, 2026 for CDs, GASs, Corporate Bonds, MBSs, and Treasuries was $59.02 million, which is $6 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
In the past quarter ending March 31, 2026, the City’s total interest earnings were a gain of $847 thousand, including a $713 thousand gain in the City’s managed portfolio and a $6 thousand gain in OPEB. The projected annual interest earnings for FY 2026 are $4.23 million, which is a gain of 4.20% for the year for the City’s entire portfolio and a gain of

3.30% 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.

The portfolio’s weighted average duration for General Fund Reserves and City Pooled Funds – A is 2.06 years. This duration indicates limited sensitivity to interest rate changes and supports the City’s objectives of safety and liquidity.

Table 5: Estimated Annual Investment Earnings

Total All Securities 59,019,216$ 59,024,821$ 5,605$ TOTAL 100,733,836$ 846,956$ 3,332,634$ 4,232,721$ 4.20% Total Managed Portfolio 90,093,217$ 712,754$ 2,088,657$ 2,974,191$ 3.30% Council Agenda 5-5-2026 9.F-6
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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.

The projected annual interest earnings rate for FY 2026 is 4.20% for the City’s entire portfolio. The projected annual interest earnings rate for FY 2026 is 3.30% for the City’s managed portfolio (excludes Bond funds and OPEB Trust Account). This is compared to LAIF, which is earned 3.96% as of March 31, 2026, or the 2-year U.S. Treasury Note, which earned 3.81% as of March 31, 2026. 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
City’s Annual Earnings Rate for entire Portfolio 4.20%
City’s Annual Earnings Rate for Managed Portfolio 3.30% LAIF Average Annual Earnings Rate 3.96%
2-Year U.S. Treasury Note 3.80%

Future Outlook
Economic indicators point to continued growth of the U.S. economy at a steady pace.

Employment gains have been modest in recent months, while the unemployment rate has remained relatively stable. Inflation, however, continues to run above the desired level.

The Federal Open Market Committee (FOMC) long-term objective is to promote maximum employment alongside price stability, defined as inflation averaging 2 percent over time. There remains a high degree of uncertainty in the economic outlook, including potential impacts from geopolitical developments in the Middle East. The Committee continues to monitor risks affecting both employment and inflation.

To support these objectives, the FOMC chose to keep the federal funds rate target range unchanged at 3.50% to 3.75%. Future policy decisions will be guided by incoming economic data, shifts in the outlook, and an ongoing evaluation of risks.

While rates have stabilized and shown some variability, they remain subject to change based on economic conditions and monetary policy. The City Treasurer continues to Council Agenda 5-5-2026 9.F-7
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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 5-5-2026 9.F-8
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Investment Name Name of Institution Type of Investment Current
Earnings
Rate
Book Value
as of 3/31/26
Actual Interest
Earned 3rd
Quarter Ending
3/31/26
Year-to-Date
Interest
Earned
Ending
3/31/26
* Data
Source
Estimated
Annual Interest
Earnings **
General Fund Reserves US Bank CDs/GASs/Corp
Bonds/Treasuries

3.23% avg 8,817,030 61,959$ 196,678$ 1 291,704$ City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ MBSs/
Treasuries

3.45% avg 50,202,186 377,750 1,045,298 1 1,623,266 Total All Securities 59,019,216$ 439,709$ 1,241,976$ 1,914,970$ City Pooled Funds - B US Bank Custody 4.17%173,148$ 7,062$ 17,410$ 1 24,472 City Pooled Funds - B Local Agency Invest.

Fund (LAIF)
State Investment Pool 3.96%10,424,301 63,051 72,028 2 122,469 City Pooled Funds - B PFM Asset Mgmt
CAMP
JPA Investment Pool 3.80%5,484,847 87,144 412,705 3 509,849 City Pooled Funds - B US Bank Checking & Sweep 3.28%14,991,705 115,788 344,537 4 402,431 City Pooled Funds - B 31,074,001$ 273,045$ 846,681$ 1,059,222$ City Pooled Funds total A + B 81,276,186$ 650,795$ 1,891,979$ 2,974,191$ Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2017 Pier Project 1,216$ 10$ 1,342$ 5 1,342 Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2017B CREBs 1,009 8 1,010 5 1,010
Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2024 Public Safety
Facility
4,379,324 128,610 801,171 5 821,171 Calpers Benefit Trust
OPEB Trust Account CalPERS Benefit Trust
Account
Various managed by
CalPERS
6,259,070$ 5,574$ 440,453$ 6 435,005 TOTAL, Cash and Investments at March 31, 2026:100,733,836$ 846,956$ 3,332,634$ 4,232,721$ TOTAL for City Managed Portfolio, Cash and Investments:90,093,217$ 712,754$ 2,088,657$ 2,974,191$ 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,
including Book Values & Earnings Data for Investments in Other Financial Instruments Council Agenda 5-5-2026 9.F-9
Attachment 1
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City of Pismo Beach
March 31, 2026 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
023135DD5 Amazon (56.30%)4.25% 3/13/2026 3/13/2031 Corporate Bond AA 99.263 334,464 332,516 (1,948) 1,717 02589ACE0 American Express
(59.76%)

2.90% 5/3/2022 4/27/2027 CD 0 98.959 147,000 145,479 (1,521) 301 025816ED7 American Express Co 4.73% 4/25/2025 4/25/2029 Corporate Bond A-100.632 170,000 171,074 1,074 1,030 052392BT3 Austin Telco Federal
Credit Union

3.80% 9/21/2022 9/21/2027 CD 0 99.864 245,000 244,667 (333) 448 06406RBA4 Bank New York Mellon
(32.69%)

2.05% 1/26/2022 1/26/2027 Corporate Bond A 98.359 245,000 241,152 (3,848) 210 06051GMT3 Bank of America Corp 4.62% 5/9/2025 5/9/2029 Corporate Bond A-100.435 400,000 401,740 1,740 1,044 07371BWH0 Beal Bank Plano Texas 4.70% 6/12/2024 6/6/2029 CD 0 102.216 245,000 250,429 5,429 1,072 07371DT23 Beal Bank USA Las
Vegas Nevada

4.70% 6/12/2024 6/6/2029 CD 0 102.216 245,000 250,429 5,429 1,072 05600XQL7 BMO Harris Bank
(56.73%)

4.45% 5/24/2023 5/24/2028 CD 0 101.204 139,000 140,662 1,662 694 14042TFP7 Capital One Bank
(47.76%)

2.90% 4/27/2022 4/27/2027 CD 0 98.959 117,000 115,794 (1,206) 301 14913UAY6 Caterpillar Finl Svcs 4.40% 4/24/2025 3/3/2028 Corporate Bond N/A 100.493 215,086 216,060 974 612 24951TAL9 Department of
Commerce FCU
(20.41%)

1.25% 1/7/2022 1/7/2027 CD 0 98.026 50,000 49,017 (983) 191 24951TAL9 Department of
Commerce FCU
(22.45%)

1.25% 1/7/2022 1/7/2027 CD 0 98.026 55,000 53,917 (1,083) 191 27004PCV3 Eaglemark Savings
Bank (20%)

3.25% 6/22/2022 6/22/2027 CD 0 99.224 50,000 48,620 (1,380) 357 291916AB0 Empower Federal
Credit Union (53.06%)

5.10% 9/29/2023 9/29/2028 CD 0 102.792 130,000 133,627 3,627 822 3130APB87 FHLB 1.10% 10/13/2021 10/13/2026 Agency AA+98.593 500,000 492,965 (7,035) 105 3130AQZ55 FHLB 2.50% 3/10/2022 3/10/2027 Agency AA+98.829 500,000 494,145 (5,855) 253 3130ALYC2 FHLB (19.2%)1.14% 4/29/2021 4/29/2026 Agency AA+99.796 192,000 191,608 (392) (62) 3130AMCY6 FHLB (2.5%)1.00% 5/27/2021 5/27/2026 Agency AA+99.569 50,000 49,785 (216) (34) 3130AQAU7 FHLB (24.5%)1.45% 12/29/2021 12/29/2026 Agency AA+98.288 245,000 240,806 (4,194) 182 3130AMCY6 FHLB (25.8%)1.00% 5/27/2021 5/27/2026 Agency AA+99.569 516,000 513,776 (2,224) (34) 3130ARF55 FHLB (49%)2.60% 3/30/2022 3/30/2027 Agency AA+98.895 245,000 242,293 (2,707) 273 3130ALYC2 FHLB (5.3%)1.14% 4/29/2021 4/29/2026 Agency AA+99.796 53,000 52,892 (108) (62) 3130ARF55 FHLB (51%)2.60% 3/30/2022 3/30/2027 Agency AA+98.895 255,000 252,182 (2,818) 273 32024JAM5 First Federal Credit
Union - (78.35%)

4.40% 2/17/2023 2/17/2028 CD 0 100.903 191,967 193,691 1,724 597 39573LEM6 Greenstate Credit
Union (20.4%)

5.00% 9/26/2023 9/26/2028 CD 0 102.548 50,000 51,253 1,253 819 437076CW0 Home Depot 4.90% 12/4/2025 4/15/2029 Corporate Bond A 101.897 195,482 193,604 (1,877) 1,020 40428HR95 Hsbc USA Inc 4.65% 6/3/2025 6/3/2028 Corporate Bond A-100.623 400,032 402,492 2,460 704 50625LBN2 Lafayette Federal
Credit Union

3.25% 6/15/2022 6/15/2027 CD 0 99.244 245,000 243,148 (1,852) 350 59013KPN0 Merrick Bank 1.10% 11/9/2021 11/9/2026 CD 0 98.34 245,000 240,933 (4,067) 132 66989HBG2 Novartis Capital 4.40% 3/18/2026 3/18/2031 Corporate Bond AA-99.979 249,900 249,948 48 1,722 70962LAS1 Pentagon Federal
Credit Union (20.4%)

0.90% 9/29/2021 9/29/2026 CD 0 98.537 50,000 49,249 (751) 91 69353RFZ6 PNC Bank 4.43% 10/8/2025 7/21/2028 Corporate Bond A 99.962 402,428 399,848 (2,580) 752 87164X2C9 Synchrony Bank 4.60% 9/15/2023 9/15/2028 CD 0 101.539 245,000 248,771 3,771 808 88413QDL9 Third Federal Savings
Bank

3.50% 6/28/2022 6/28/2027 CD 0 99.513 245,000 243,807 (1,193) 363 89235MLC3 Toyota Financial
Savings Bank

0.95% 7/15/2021 7/15/2026 CD 0 99.147 245,000 242,910 (2,090) 15 91282CJN2 US Treasury 4.38% 12/10/2024 11/30/2028 Treasury Note N/A 101.383 403,703 405,532 1,829 884 91282CMU2 US Treasury 4.00% 12/4/2025 3/31/2030 Treasury Note N/A 100.359 304,969 301,077 (3,892) 1,370 Total $ 8,817,030 $ 8,791,897
Council Agenda 5-5-2026 9.F-10
Attachment 2
Packet Page 47

City of Pismo Beach
March 31, 2026 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
023135DD5 Amazon (56.30%)4.25% 3/13/2026 3/13/2031 Corporate Bond AA 99.263 334,464 332,516 (1,948) 1,717 02589ACE0 American Express
(59.76%)

2.90% 5/3/2022 4/27/2027 CD 98.959 147,000 145,479 (1,521) 301 025816ED7 American Express Co 4.73% 4/25/2025 4/25/2029 Corporate Bond A-100.632 170,000 171,074 1,074 1,030 052392BT3 Austin Telco Federal
Credit Union

3.80% 9/21/2022 9/21/2027 CD 99.864 245,000 244,667 (333) 448 06406RBA4 Bank New York Mellon
(32.69%)

2.05% 1/26/2022 1/26/2027 Corporate Bond A 98.359 245,000 241,152 (3,848) 210 06051GMT3 Bank of America Corp 4.62% 5/9/2025 5/9/2029 Corporate Bond A-100.435 400,000 401,740 1,740 1,044 07371BWH0 Beal Bank Plano Texas 4.70% 6/12/2024 6/6/2029 CD 102.216 245,000 250,429 5,429 1,072 07371DT23 Beal Bank USA Las
Vegas Nevada

4.70% 6/12/2024 6/6/2029 CD 102.216 245,000 250,429 5,429 1,072 05600XQL7 BMO Harris Bank
(56.73%)

4.45% 5/24/2023 5/24/2028 CD 101.204 139,000 140,662 1,662 694 14042TFP7 Capital One Bank
(47.76%)

2.90% 4/27/2022 4/27/2027 CD 98.959 117,000 115,794 (1,206) 301 14913UAY6 Caterpillar Finl Svcs 4.40% 4/24/2025 3/3/2028 Corporate Bond N/A 100.493 215,086 216,060 974 612 24951TAL9 Department of
Commerce FCU
(20.41%)

1.25% 1/7/2022 1/7/2027 CD 98.026 50,000 49,017 (983) 191 24951TAL9 Department of
Commerce FCU
(22.45%)

1.25% 1/7/2022 1/7/2027 CD 98.026 55,000 53,917 (1,083) 191 27004PCV3 Eaglemark Savings
Bank (20%)

3.25% 6/22/2022 6/22/2027 CD 99.224 50,000 48,620 (1,380) 357 291916AB0 Empower Federal
Credit Union (53.06%)

5.10% 9/29/2023 9/29/2028 CD 102.792 130,000 133,627 3,627 822 3130APB87 FHLB 1.10% 10/13/2021 10/13/2026 Agency AA+98.593 500,000 492,965 (7,035) 105 3130AQZ55 FHLB 2.50% 3/10/2022 3/10/2027 Agency AA+98.829 500,000 494,145 (5,855) 253 3130ALYC2 FHLB (19.2%)1.14% 4/29/2021 4/29/2026 Agency AA+99.796 192,000 191,608 (392) (62) 3130AMCY6 FHLB (2.5%)1.00% 5/27/2021 5/27/2026 Agency AA+99.569 50,000 49,785 (216) (34) 3130AQAU7 FHLB (24.5%)1.45% 12/29/2021 12/29/2026 Agency AA+98.288 245,000 240,806 (4,194) 182 3130AMCY6 FHLB (25.8%)1.00% 5/27/2021 5/27/2026 Agency AA+99.569 516,000 513,776 (2,224) (34) 3130ARF55 FHLB (49%)2.60% 3/30/2022 3/30/2027 Agency AA+98.895 245,000 242,293 (2,707) 273 3130ALYC2 FHLB (5.3%)1.14% 4/29/2021 4/29/2026 Agency AA+99.796 53,000 52,892 (108) (62) 3130ARF55 FHLB (51%)2.60% 3/30/2022 3/30/2027 Agency AA+98.895 255,000 252,182 (2,818) 273 32024JAM5 First Federal Credit
Union - (78.35%)

4.40% 2/17/2023 2/17/2028 CD 100.903 191,967 193,691 1,724 597 39573LEM6 Greenstate Credit
Union (20.4%)

5.00% 9/26/2023 9/26/2028 CD 102.548 50,000 51,253 1,253 819 437076CW0 Home Depot 4.90% 12/4/2025 4/15/2029 Corporate Bond A 101.897 195,482 193,604 (1,877) 1,020 40428HR95 Hsbc USA Inc 4.65% 6/3/2025 6/3/2028 Corporate Bond A-100.623 400,032 402,492 2,460 704 50625LBN2 Lafayette Federal
Credit Union

3.25% 6/15/2022 6/15/2027 CD 99.244 245,000 243,148 (1,852) 350 59013KPN0 Merrick Bank 1.10% 11/9/2021 11/9/2026 CD 98.34 245,000 240,933 (4,067) 132 66989HBG2 Novartis Capital 4.40% 3/18/2026 3/18/2031 Corporate Bond AA-99.979 249,900 249,948 48 1,722 70962LAS1 Pentagon Federal
Credit Union (20.4%)

0.90% 9/29/2021 9/29/2026 CD 98.537 50,000 49,249 (751) 91 69353RFZ6 PNC Bank 4.43% 10/8/2025 7/21/2028 Corporate Bond A 99.962 402,428 399,848 (2,580) 752 87164X2C9 Synchrony Bank 4.60% 9/15/2023 9/15/2028 CD 101.539 245,000 248,771 3,771 808 88413QDL9 Third Federal Savings
Bank

3.50% 6/28/2022 6/28/2027 CD 99.513 245,000 243,807 (1,193) 363 89235MLC3 Toyota Financial
Savings Bank

0.95% 7/15/2021 7/15/2026 CD 99.147 245,000 242,910 (2,090) 15 91282CJN2 US Treasury 4.38% 12/10/2024 11/30/2028 Treasury Note N/A 101.383 403,703 405,532 1,829 884 91282CMU2 US Treasury 4.00% 12/4/2025 3/31/2030 Treasury Note N/A 100.359 304,969 301,077 (3,892) 1,370 Total $ 8,817,030 $ 8,791,897
Council Agenda 5-5-2026 9.F-11
Attachment 2
Packet Page 48

City of Pismo Beach
March 31, 2026 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
002824BR0 Abbott 3.70% 3/9/2026 3/9/2029 Corporate Bond A+98.811 474,397 469,352 (5,045) 983 00724PAD1 Adobe Inc (46.47%)2.30% 2/10/2026 2/1/2030 Corporate Bond A+92.445 336,297 332,934 (3,363) 1,312 00724PAD1 Adobe Inc (53.53%)2.30% 2/6/2026 2/1/2030 Corporate Bond A+92.445 387,390 383,515 (3,875) 1,312 01025RAN9 Alabama Credit Union 4.35% 2/28/2024 2/28/2028 CD 100.825 245,000 247,021 2,021 608 011852AE0 Alaska USA Federal
Credit Union

4.60% 3/8/2023 3/8/2028 CD 101.301 245,000 248,187 3,187 617 01664MAB2 All In Federal Credit
Union

4.40% 12/20/2022 12/20/2027 CD 100.833 245,000 247,041 2,041 538 01882MAB8 Alliant Credit Union 4.95% 12/30/2022 12/30/2027 CD 101.773 245,000 249,344 4,344 548 02079KBJ5 Alphabet Inc 3.70% 2/13/2026 2/15/2029 Corporate Bond AA+99.141 84,691 84,270 (422) 961 02079KBK2 Alphabet Inc 4.10% 2/17/2026 2/15/2031 Corporate Bond AA+99.305 599,718 595,830 (3,888) 1,691 02079KAW7 Alphabet Inc 4.10% 11/17/2025 11/15/2030 Corporate Bond AA+99.318 275,998 273,125 (2,874) 1,599 023135CT1 Amazon 4.10% 11/20/2025 11/20/2030 Corporate Bond AA 98.828 374,599 370,605 (3,994) 1,604 023135DD5 Amazon (43.70%)4.25% 3/13/2026 3/13/2031 Corporate Bond AA 99.263 259,605 258,099 (1,506) 1,717 02589ACE0 American Express
(40.24%)

2.90% 5/3/2022 4/27/2027 CD 98.959 99,000 97,960 (1,040) 301 025816EJ4 American Express Co 4.35% 2/4/2026 7/20/2029 Corporate Bond A-99.929 281,462 279,801 (1,660) 1,116 04636NAL7 AstraZeneca Finance
LLC

4.85% 4/16/2025 2/26/2029 Corporate Bond A+101.726 222,574 223,797 1,223 972 05253JB59 Australia New Zealand 4.62% 12/16/2024 12/16/2029 Corporate Bond AA-101.183 800,392 809,464 9,072 1,265 062119BS0 Bank Five Nine
(40.82%)

4.60% 4/14/2023 4/13/2028 CD N/A 101.371 100,000 101,380 1,380 653 062119BS0 Bank Five Nine
(59.18%)

4.60% 4/14/2023 4/13/2028 CD N/A 101.371 145,000 146,979 1,979 653 06406RBA4 Bank New York Mellon
(67.31%)

2.05% 1/26/2022 1/26/2027 Corporate Bond A 98.359 504,363 496,541 (7,822) 210 06740KQE0 Barclays Bank 3.00% 5/11/2022 5/11/2027 CD 99.037 245,000 242,641 (2,359) 315 05600XQL7 BMO Harris Bank
(43.27%)

4.45% 5/24/2023 5/24/2028 CD 101.204 106,000 107,288 1,288 694 05580AW59 BMW Bank North
America

4.60% 3/10/2023 3/10/2028 CD 101.26 245,000 248,087 3,087 619 14042TFP7 Capital One Bank
(52.24%)

2.90% 4/27/2022 4/27/2027 CD 98.959 128,000 126,656 (1,344) 301 14042RQU8 Capital One National
(20.41%)

2.90% 4/27/2022 4/27/2027 CD 98.959 50,000 49,484 (516) 301 14042RQU8 Capital One National
(79.59%)

2.90% 4/27/2022 4/27/2027 CD 98.959 195,000 192,966 (2,034) 301 12547CAX6 CIBC Bank USA
Chicago

4.45% 4/14/2023 4/14/2028 CD 101.079 245,000 247,644 2,644 654 17275RBR2 Cisco Sys Inc 4.85% 11/7/2025 2/26/2029 Corporate Bond AA-101.831 410,164 407,324 (2,840) 972 17325FBP2 Citibank 4.91% 5/29/2025 5/29/2030 Corporate Bond A+101.559 250,000 253,898 3,898 1,429 17325FBL1 Citibank 4.88% 12/11/2024 11/19/2027 Corporate Bond A+100.324 552,195 551,782 (413) 507 19058RAE1 Coastal1 Credit Union 4.15% 1/31/2024 1/31/2028 CD 100.453 245,000 246,110 1,110 580 19075JAB4 Cobalt Federal Credit
Union

3.60% 9/15/2022 9/15/2027 CD 99.593 245,000 244,003 (997) 442 194162AT0 Colgate Palmolive Co 4.20% 5/2/2025 5/1/2030 Corporate Bond A+100.081 249,868 250,203 335 1,401 20271RAV2 Commonwealth Bk
Australia N Y

4.42% 3/14/2025 3/14/2028 Corporate Bond AA-100.596 400,012 402,384 2,372 623 Council Agenda 5-5-2026 9.F-12
Attachment 3
Packet Page 49

City of Pismo Beach
March 31, 2026 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
22551KAU6 Credit Union of Texas 4.40% 12/9/2022 12/9/2027 CD 100.822 245,000 247,014 2,014 527 23204HPB8 Customers Bank 4.50% 6/14/2023 6/14/2028 CD 101.216 245,000 247,979 2,979 715 24951TAL9 Department of
Commerce FCU
(57.14%)

1.25% 1/7/2022 1/7/2027 CD 98.026 140,000 137,230 (2,770) 191 254673D94 Discover Bank 3.20% 5/19/2022 5/19/2027 CD 99.246 245,000 243,153 (1,847) 323 27004PCV3 Eaglemark Savings
Bank (80%)

3.25% 6/22/2022 6/22/2027 CD 99.224 195,000 194,479 (521) 357 532457CV8 Eli Lilly Co Sr 4.75% 3/14/2025 2/12/2030 Corporate Bond A+101.812 201,412 203,624 2,212 1,323 291916AB0 Empower Federal
Credit Union (46.94%)

5.10% 9/29/2023 9/29/2028 CD 102.792 115,000 118,214 3,214 822 30002CAT5 Everett Co-Operative 3.90% 1/23/2023 1/19/2027 CD 100.14 245,000 245,343 343 203 3130ANSB7 FHLB 1.00% 9/17/2021 9/17/2026 Agency AA+98.736 1,000,000 987,360 (12,640) 79 3130ARGQ8 FHLB 2.88% 4/14/2022 4/14/2027 Agency AA+99.063 500,000 495,315 (4,685) 288 3130AQAU7 FHLB (14%)1.45% 12/29/2021 12/29/2026 Agency AA+98.288 140,000 137,603 (2,397) 182 3130AMS37 FHLB (20%)1.00% 6/24/2021 6/24/2026 Agency AA+99.367 400,000 397,468 (2,532) (6) 3130AMCY6 FHLB (25%)1.00% 5/27/2021 5/27/2026 Agency AA+99.569 500,000 497,845 (2,155) (34) 3130AMS37 FHLB (30%)1.00% 6/24/2021 6/24/2026 Agency AA+99.367 600,000 596,202 (3,798) (6) 3130AMCY6 FHLB (46.7%)1.00% 5/27/2021 5/27/2026 Agency AA+99.569 934,000 929,974 (4,026) (34) 3130AMS37 FHLB (50%)1.00% 6/24/2021 6/24/2026 Agency AA+99.367 1,000,000 993,670 (6,330) (6) 3130ARGE5 FHLB (50%)3.00% 4/21/2022 4/21/2027 Agency AA+99.084 250,000 247,710 (2,290) 295 3130ARGE5 FHLB (50%)3.00% 4/21/2022 4/21/2027 Agency AA+99.084 250,000 247,710 (2,290) 295 3130AQAU7 FHLB (61.5%)1.45% 12/29/2021 12/29/2026 Agency AA+98.288 615,000 604,471 (10,529) 182 3130ALYC2 FHLB (75.5%)1.14% 4/29/2021 4/29/2026 Agency AA+99.796 755,000 753,460 (1,540) (62) 3137FRZ95 FHLMC Multiclass Mtg 1.23% 3/25/2025 2/25/2030 MBS N/A 95.741 449,641 459,535 9,894 1,336 3137HJSF5 FHLMC Multiclass Mtg 5.01% 2/13/2025 10/25/2029 MBS N/A 99.723 547,489 545,973 (1,517) 1,213 3137HAQ74 FHLMC Multiclass Mtg 4.74% 12/13/2024 8/25/2028 MBS N/A 101.075 554,146 555,913 1,766 787 3137HB3G7 FHLMC Multiclass Mtg 4.86% 12/13/2024 10/25/2028 MBS N/A 101.558 556,682 558,569 1,887 848 3137HHW31 FHLMC Multiclass Mtg 4.72% 1/16/2025 11/26/2029 MBS N/A 99.983 329,768 329,712 (56) 1,245 3137H74P5 FHLMC Multiclass Mtg 2.12% 4/15/2025 3/25/2029 MBS N/A 94.764 554,508 568,584 14,076 999 3137FEBQ2 FHLMC Multiclass Mtg 3.44% 4/11/2025 12/25/2027 MBS N/A 98.905 563,792 568,704 4,912 543 3137F4X72 FHLMC Multiclass Mtg 3.65% 4/8/2025 2/25/2028 MBS N/A 99.088 558,622 559,847 1,226 605 3137H9QT9 FHLMC Multiclass Mtg 4.56% 7/17/2025 1/25/2029 MBS N/A 100.516 152,102 152,512 410 940 3137HMCE8 FHLMC Multiclass Mtg 4.27% 7/22/2025 6/25/2030 MBS N/A 100.032 549,420 550,176 756 1,456 3137HNN53 FHLMC Multiclass Mtg 4.84% 10/16/2025 7/25/2030 MBS N/A 99.864 549,664 548,917 (748) 1,486 3137HNND6 FHLMC Multiclass Mtg 4.56% 11/6/2025 7/25/2030 MBS N/A 99.828 548,437 547,494 (943) 1,486 3137F9CR0 FHLMC Multiclass Mtg 0.96% 12/29/2025 8/25/2030 MBS N/A 93.321 518,116 518,033 (83) 1,517 3137HNWV6 FHLMC Multiclass Mtg 4.17% 12/5/2025 11/25/2030 MBS N/A 99.49 353,089 348,215 (4,874) 1,609 3137HBLV4 FHLMC Multiclass Mtg 4.57% 3/6/2026 12/25/2028 MBS N/A 100.868 594,712 590,078 (4,634) 909 3137HKXJ8 FHLMC Remic Series 4.41% 4/24/2025 1/25/2030 MBS N/A 100.594 189,993 191,129 1,135 1,305 32024JAM5 First Federal Credit
Union - (21.65%)

4.40% 2/17/2023 2/17/2028 CD 100.903 53,033 53,521 488 597 32110YE84 First National Bank
America

4.60% 9/21/2023 9/21/2028 CD 101.594 245,000 248,905 3,905 814 33715LED8 First Technology 3.70% 8/19/2022 8/19/2027 CD 99.739 245,000 244,361 (639) 415 3136BTGM9 FNMA Gtd Remic 3.00% 12/17/2024 7/25/2027 MBS N/A 98.835 538,976 552,018 13,042 390 3136AY2H5 FNMA Gtd Remic 2.81% 5/23/2025 11/25/2027 MBS N/A 97.983 366,264 369,336 3,072 513 3136B2HA3 FNMA Gtd Remic 3.35% 5/23/2025 7/25/2028 MBS N/A 98.524 401,526 402,597 1,072 756 3136B0YM2 FNMA Gtd Remic 3.00% 5/1/2025 1/25/2028 MBS N/A 97.977 482,603 486,641 4,038 574 38145GAP5 Goldman Sachs 4.15% 1/21/2026 1/21/2029 Corporate Bond BBB+99.383 95,000 94,414 (586) 936 39573LEM6 Greenstate Credit
Union (79.6%)

5.00% 9/26/2023 9/26/2028 CD 102.548 195,000 199,989 4,989 819 Council Agenda 5-5-2026 9.F-13
Packet Page 50

City of Pismo Beach
March 31, 2026 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
Council Agenda 5-5-2026 9.F-14
Packet Page 51

City of Pismo Beach
March 31, 2026 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
50,202,186 50,232,925
Council Agenda 5-5-2026 9.F-15
Packet Page 52

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.G
Meetin Date: Ma 5, 2026

TITLE:

Award of Contract to Water Systems Consulting, Inc. for the 2025 Urban Water Management Plan and Water Master Plan Update

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to enter into a Professional Services Agreement with Water Systems Consulting, Inc. in an amount not to exceed $221,703 for the 2025 Urban Water Management Plan and Water Master Plan Update.

DISCUSSION:

The City of Pismo Beach has a current population of approximately 7,860 people.

However, as a vacation destination, the number of people served by the water system surges dramatically in the summer and holiday seasons. The City currently serves 1.5 million gallons on an average day.

The City’s water distribution system consists of more than 50 miles of pipeline ranging from 4-inch to 16-inch diameter, eight pressure zones, six booster stations, four turnouts from the Lopez Project, and two groundwater wells. Water storage is provided by eight tanks with capacities ranging from 220,000 gallons to 1 million gallons.

As the distribution system ages and overall growth slows, the City anticipates a shift in capital expenditures from system expansion to asset renewal and replacement. However, changes in growth patterns, increasing density of development and growth of tourism are increasing potential demand on the system. To date, these potential increases in demand have not been fully realized, as the City has actively implemented and will continue to pursue water conservation measures to offset demand associated with growth.

The Urban Water Management Plan (UWMP) and Water Master Plan (WMP) will evaluate the effects of growth, densification, and conservation on the City’s water supply and distribution systems. The UWMP, which is required to be updated every five years, was most recently adopted in 2021 and provides a long-term framework for sustainable water supply and asset management. The WMP, last adopted in 2020, will be updated to ensure that system maintenance and capital improvements are prioritized and implemented efficiently, supporting effective long-range planning and budgeting.

A formal Request for Proposals was issued for professional engineering and planning services for the 2025 UWMP and WMP Update. Two proposals were received on April 16, 2026 and evaluated by a review panel. Water Systems Consulting, Inc. (WSC) was determined to be the most qualified and has been selected to perform the work.

Council Agenda 5-5-2026 9.G-1
Packet Page 53

Conclusion and Recommendation
Staff recommends the Council adopt a resolution (Attachment 1) authorizing the City Manager to enter into a Professional Services Agreement (Attachment 2) with WSC in an amount not to exceed $221,703 for the 2025 Urban Water Management Plan and Water Master Plan Update.

FISCAL IMPACT:

The fiscal impact of adopting the attached resolution is an additional cost of $221,703.

The Fiscal Year (FY) 2026 Water Enterprise Funds’ WMP professional services account budget includes $250,000 to support the project. The estimated project costs are shown in Table 1 below.

Table 1. FY 2026 Budget and Estimated Project Cost
Item Fiscal Impact
Available Pro ect Bud et $250,000
WSC Contract Cost $221,703
Bud et Surplus / Shortfall $28,297
ATTACHMENTS:

1. Resolution

2. WSC Professional Services Agreement
Prepared by:

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

Council Agenda 5-5-2026 9.G-2
Packet Page 54

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 A

PROFESSIONAL SERVICES AGREEMENT WITH WATER SYSTEMS CONSULTING, INC. IN AN AMOUNT NOT TO EXCEED $221,703 FOR THE 2025 URBAN WATER

MANAGEMENT PLAN AND WATER MASTER PLAN UPDATE
WHEREAS, the City is required to update its Urban Water Management Plan (UWMP) every five years; and
WHEREAS, the UWMP will prepare the City for a long-term strategy to renew existing assets and form an integrated component of the City’s long-term water planning documents; and
WHEREAS, the Water Master Plan (WMP) Update evaluates the water system to identify improvement projects necessary to meet current and future water system requirements; and
WHEREAS, a formal Request for Proposals was issued for professional engineering and planning services for the 2025 UWMP and WMP Update; and WHEREAS, two proposals were received and evaluated by a review panel; and WHEREAS, Water Systems Consulting, Inc. was determined to be the most qualified and has been selected to perform the work.

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 May 5, 2026, with Water Systems Consulting, Inc. in an amount not to exceed $221,703 for the 2025 Urban Water Management Plan and Water Master Plan Update
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of May 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:

Council Agenda 5-5-2026 9.G-3
Attachment 1
Packet Page 55

________________________ ________________________
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 5-5-2026 9.G-4
Attachment 1
Packet Page 56

1 of 12
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 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:
2025 Urban Water Management Plan and Water Master Plan Update 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, 2027. 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 twenty-one thousand seven hundred and three dollars ($221,703), unless otherwise first approved in writing by CITY.

Should this AGREEMENT be extended pursuant to Section II, VENDOR’s fee may be 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.

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VII. CITY REPRESENTATIVE
The Engineer 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 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 XIII. INDEMNIFICATION
A. Non-design, non-construction Professional Services:

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C. Design Professional Services:

In the event VENDOR is a "design professional," and the Scope of Services require VENDOR to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) VENDOR shall indemnify, defend and hold harmless CITY and its elected officials, officers, 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.

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CITY will withhold amounts sufficient to pay premium from VENDOR payments. In the alternative, CITY may terminate this AGREEMENT as provided in paragraph IV.

5. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an 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 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 Council Agenda 5-5-2026 9.G-8
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AGREEMENT, unless such requirement is waived in writing by CITY's Risk Manager as provided in paragraph XXV below.

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.

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.

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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 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.

CITY:

ATTEST:

Signed:

Name: Erica Inderlied
Title: City Clerk

APPROVED AS TO FORM:

Signed:

Name: Dean J. Pucci
VENDOR:

Exhibit A: Scope of Service
Exhibit B: Compensation Schedule
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Project Scope of Work
Task 1 Project Managementand Coordination
Project and schedule management will be a critical component of this effort to keep the UWMP on track and advance it to completion as efficiently as possible and complete the WMP in a timely manner. As shown in the project schedule, we anticipate completing UWMP tasks concurrently with other project activities to fast-track itsdelivery.

In addition, all project deliverables will be subjected to internal quality control by our QA/QC lead prior to submittal to the City. Our QA/QC lead is responsible for identifying technical issues as well as scope elements that have not been fully addressed.

1.1 Project Administration
x Prepare monthly progress reportssummarizing project status, budget, and schedule updatesto be submitted with each invoice. It is assumed that the project duration is 14 months.
x Provide project administration and management, including invoicing and preparation of monthly progress reports in a format that is acceptable to the City. x Update the project schedule as needed. Maintain a log of the action items and key project decisions made throughout the duration of the project.

1.2 Coordination Meetings
x Project Kickoff: Plan, organize and conduct one kickoff meeting. The purpose of the kickoff meeting will be to:
Establish roles and responsibilities
Review scope, schedule, and deliverables
Review available data and establish data needs
Review UWMP and WMP update requirements and methodology Review public outreach plan
x Monthly Progress Meetings: Plan, organize, and conduct up to 8, one-hour monthly progress meetings with the City. These meetings are assumed to be virtual. x Key Milestone Meetings: Plan, organize, and conduct workshops with the City at key project milestones, anticipated to include:
Draft Water Demand Projections Review Meeting
Draft UWMP Review Meeting
Hydraulic Model Update and Calibration Review Meeting
Draft Capital Improvement Project Review and Phasing Meeting Draft WMP Review Meeting
x Ongoing and as-needed coordination with the City related to the UWMP and WMP Deliverables:
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(1)Monthly progress reports.
(2)Detailed project schedule.
(3)Meeting agendas provided ahead of each meeting. Meeting summary provided following each meeting.

Assumptions:
(1)Project duration is 14 months.
(2)Kickoff meeting is assumed to be up to two-hours long and will be held in person at the City offices. Regular monthly progress meetings and other milestone meetings are up to one-hour long and will be held virtually.

Task 2 Data Collection and Review
Our project team developed the City’s 2020 UWMP and most recent WMP, and is deeply familiar with the City’s water system, supply portfolio, and planned projects. We will leverage this knowledge to hit the ground running on the UWMP and WMP. Attached to this proposal is a UWMP data request to support the timely completion of the UWMP.

2.1 Data Request
x Prepare a comprehensive data request needed to update the UWMP and WMP.

Update data request log as data is provided.
x Review City provided supporting documents and data.

2.2 Staff Interviews
x Conduct interviews with City operations staff to review system operations, constraints, and operational practices that will need to be considered in the UWMP, WMP, and updated hydraulic model.

Deliverables: Comprehensive data request log.

Assumptions:
(1)An initial UWMP data request is included with this proposal to support the City gathering the required data to fast track its completion. A comprehensive data request for the UWMP and WMP will be provided prior to the Kickoff Meeting. (2)WSC assumes up to four hours for in-person staff interviews.

Task 3 Demand Evaluation and Projections
We propose to update the City’s demand projections by incorporating recent water use trends and projected growth. This effort will begin with development of a baseline demand projection for use in the UWMP, hydraulic model, and WMP analyses. Recognizing the inherent uncertainty in long-term demand forecasting, our scope also includes development of alternative Council Agenda 5-5-2026 9.G-11
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demand scenarios that account for factors such as future densification, alignment with land use, changes in water use patterns driven by conservation, State water use efficiency regulations, and other uncertainties. For example, a comparison of historical demands with future urban water use objective (UWUO) targets is presented in the figure below.

3.1 Planning and Design Criteria
x In coordination with City standards and operational practices and California Waterworks Standards, WSC will update the water system evaluation criteria as needed, including:
Land use and duty factors
Peaking factorsand fire flow requirements
Minimum and maximum operating pressure
Pipeline velocity
Storage volume and production capacity criteria

3.2 Baseline Demand
x Review historic water production data, billing meter data, and existing land uses/zoning to establish land use-based demand factors, average day demand, maximum day demand, peak hour demand, and demand peaking factors.

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x Evaluate non-revenue water using available production and billing dataand AWWA water loss audits. Compare real water losses to the City’s water loss standard mandated by the State. Identify planning-level strategies to reduce system losses. x Develop updated population and demand projections through the 2050 planning horizon in five-year increments for the UWMP and buildout conditions. Demand projections will consider recent water use and conservation trends, current and projected land use based on the City’s General Plan, and State water use efficiency regulations.
x Develop spatially allocated baseline water demands for current, near term, and buildout conditions for loading in the hydraulic model using customer meter and APN data.

3.3 Demand Envelope
x Prepare up to three demand scenarios that consider the uncertainty in the demand projections, based on direction provided by the City. The demand scenarios are anticipated to apply adjustments to the baseline demand projection, and may include:
Adjustments to water demand factors considering water conservation measures and policy and/or customer behavior.
Changes to population growth, buildout densification, and/or Regional Housing Needs Allocation.
Future General Plan updates and potential changes in land use. Adjustment considering factors such as climate change or water rates.

3.4 Evaluation Criteria and Water Demand Projection Memo x WSC will provide a draft memo summarizing evaluation criteria, water demand projections and assumptions, spatial allocation loading for the hydraulic model, alternative demand projections and demand envelope, and proposed peaking factors for review.
x Develop final memo incorporating City comments.

Deliverables: Draft and Final Water Demand Projection Development Memo.

Assumptions: The City will have billing data that can be linked to a geographic location, such as parcel and land use data via APN, address, or meter coordinates.

Task 4 System Condition and Operational Assessment
We will compile condition assessment information from site visits, City staff input and institutional knowledge, previous inspection and condition assessment reports, maintenance records, and other available facility documentation. This information will be used to identify and develop near-term rehabilitation and improvement projects for the major water system facilities and annual rehabilitation and renewal budgets for the system pipelines.

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In addition, we will use the updated and calibrated hydraulic model to evaluate existing and future system operations and assess opportunities to improve overall system performance under a range of demand and operational conditions.

4.1 Condition Assessment
x Conduct site visits to the City booster pump station sites with City operational staff to evaluate site condition and configuration. Document condition of the site and pump station components and develop near-term rehabilitation projects for the booster pump stations.
x Review existing storage tank inspection reports and any other task condition data.

Develop near-term rehabilitation projects for the storage tanks. x Review well condition information and incorporate City feedback to develop a rehabilitation project for Well 5, if needed.
x Perform a desktop condition assessment of distribution pipelines considering condition information such as: staff knowledge,age, diameter, material, break history, maintenance records, and expected useful lifetimes based on literature and City experience. Identify areas with reliability concerns that should be addressed. Prepare annual budgets for system replacement and renewal.

4.2 Operational Assessment
x Evaluate the existing system pressure zone configuration and the potential to optimize pressure zone boundaries, improve system water age, and move water between pressure zones to improve system performance.
x Evaluate the pressure zone configuration under buildout conditions and future operations with planned projects (e.g. Central Coast Blue with higher groundwater production). Evaluate the potential to optimize the distribution system under future conditions.
x Identify opportunities to improve operational flexibility, reliability, and overall system performance.

Deliverables:
(1) Draft condition assessment project tables for discussion. (2) Draft operational assessment project maps and tables for discussion.

Assumptions:
(1)Booster pump station site visits can be completed in one day with the project’s Condition Assessment Lead and Project Engineer. City operational staff will facilitate site visits.
(2)Task 4.2 would occur following Task 5 and use the updated hydraulic model.

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Task 5 Hydraulic Model Development and Calibration
We propose to update the City’s existing water system model rather than develop a new model.

The City’s current hydraulic model was developed and calibrated in 2016 using the City’s GIS data and incorporates unique GIS-IDs for system elements. These identifiers allow the model to be efficiently updated using more recent GIS datasets. Updating the existing model, rather than building a new one, will reduce overall project costs while maintaining consistency with prior analyses.

While not specifically listed in the RFP, we recommend updating the model’s extended period simulation (EPS) calibration in addition to steady-state calibration using the hydrant flow test data. The EPS analysis evaluates system performance over time and allows simulation of conditions such as water age and system-wide operational impacts, providing a more comprehensive assessment of system behavior under varying demand and operational scenarios.

We also propose preparing a model development and calibration memorandum to document the model updates and calibration results.

5.1 Update Water Model
x Update the City’s existing hydraulic model using current GIS system mapping. Update the model controls and operation based on staff input collected during Task 2.2. x Load spatially allocated current, near-term, and buildout demands in the updated hydraulic model. Update model demand scenarios using updated demand projections and peaking factors.

5.2 Model Calibration
x Prepare a hydrant flow testing plan to collect data for model calibration. Refine hydrant flow locations based on City feedback and considering drought/conservation requirements. The hydrant flow testing plan will include proposed test locations, including flowing and residual hydrant, procedures, and a data collection sheet. x Calibrate the model under steady-state conditions by evaluating modeled pressures to observed pressures collected during the hydrant flow tests performed by the City.

Make adjustments to pipe roughness factors or minor lossesto achieve acceptable agreement between model results and observed test results. x Recalibrate the City’s EPS scenarios using a week of consecutive SCADA data showing tank levels, and pump, well, and turnout status, flowrates, and discharge pressure (as available). Update modeled pump, well, and turnout controls and adjust the diurnal demand pattern applied in the model to simulate tank cycling similar to observed tank cycling in the distribution system.
x Review calibration results with City staff and make refinements based on City direction as needed.

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5.3 Model Update and Calibration Memo
x Document the model update and calibration in a draft technical memorandum. x Incorporate City comments in a final technical memorandum.

Deliverables:
(1)Hydrant flow testing plan and maps.
(2)Draft and Final Model Update and Calibration Technical Memorandum. (3)Updated and calibrated hydraulic model and associated files.

Assumptions:
(1)WSC anticipates 6-8 locations for hydrant flow testing. (2)City staff will conduct the hydrant testing plan and provide measures hydrant static and residual pressure, hydrant flow data, and boundary conditions at the time of the flow test including tank levels, well and turnout operation, and booster pump station status.
(3)Acceptable model calibration tolerance is +/-5 psi from observed pressures during hydrant flow testing.
(4)While not specifically listed in the RFP, WSC scope includes EPS calibration and preparing a model development and calibration memorandum.

Task 6 Performance Evaluation and Capacity Analysis
We will update the system performance and capacity analysis using update demand projections. We anticipate capacity projects identified in the 2020 WMP that have not yet been completed may still be required and will reevaluate the need for these projects and the recommended sizing. We will also leverage the datasets developed during the 2020 WMP and the recently completed Water Storage Analysis in this task.

6.1 Model Existing Conditions
x Analyze system performance under existing conditions by simulating average day, maximum day, peak hour, and maximum day plus fire flow demand. Evaluate system pressures, pipeline velocities, and available fire flow against the updated evaluation criteria developed in Task 3.
x Identify areas of the water distribution system that do not meet the City’s criteria and develop operational and/or capital improvement projects to resolve existing deficiencies.

6.2 Model Future Conditions
x Analyze future system performance under buildout conditions by simulating average day, maximum day, peak hour, and maximum day plus fire flow demand. Evaluate pressures, velocities, and available fire flow against the evaluation criteria.

Understanding and Scope of Work
2025 Water Master Plan and Urban Water Management Plan Update City of Pismo Beach | 24
x Incorporate planned system modifications and planned infrastructure as necessary to serve future development, as directed by the City, for purposes of planning-level evaluation.
x Identify locations with future capacity constraints and performance limitations.

Develop operational and/or capital improvement projects to resolve future deficiencies.

6.3 Pumping and Storage Analysis
x Evaluate the capacity of existing water system production and pumpingfacilities against current and future demands. Identify production and pumping deficiencies and develop recommendations to improve deficiencies.
x Update the water system storage volume for the system under current and projected demands and comparethe required storageto the current storage volume. WSC will develop recommendations to improve storage deficiencies.

Deliverables:
(1)Draft capacity assessment project maps and tables for discussion.

Task 7 Capital Improvement Plan
WSC will compile recommended projects to develop a prioritized 30-year capital improvement plan (CIP) with short, medium, and long term projects identified. The CIP will address system capacity, conditions, and reliability improvements. We will develop project costs using recent local bids for similar project and include an appropriate contingency for planning level estimates.

7.1 Develop Capital Improvement Projects
x Develop a comprehensive map and list of capital projects, including project descriptions, that address capacity, risk and reliability, and condition related deficiencies under existing and projected demands.
x Establish criteria for determining the prioritization of the identified projects. Prioritize projects as short, intermediate, and long-term projects.

7.2 Prepare Cost Estimates
x Develop planning-level (AACE Class 4) unit cost figures and estimate costs for capital projectsand annual rehabilitation and renewal budgets.

Deliverables:
(1)Draft CIP map and tablewith project descriptions.
(2)Final CIP map and table with project descriptions.

Assumptions:
(1)Fee estimate assumes up to 30 CIP projects and annual renewable and rehabilitation strategies for short, intermediate, and long-term periods.

Council Agenda 5-5-2026 9.G-14
Attachment 2
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Understanding and Scope of Work
2025 Water Master Plan and Urban Water Management Plan Update City of Pismo Beach | 25
Task 8 Water Master Plan Report
WSC will prepare the Water Master Plan Report to summarize the efforts and results for the tasks described herein.

8.1 Administrative Draft Water Master Plan
x WSC will compile the information developed in the previous tasks to develop the Water Master Plan Report. The Water Master Plan findings will align with the UWMP.

8.2 Final Draft Water Master Plan
x WSC will address District comments from the Administrative Draft Report to develop a Final Draft Report.

8.3 Final Water Master Plan Report
x WSC will address City comments from Final Draft Water Master Plan to develop a Final Report.

Deliverables:
(1)Administrative Draft Report in Word and PDF format
(2)Final Draft Report in Word and PDF format
(3)Final Report in PDF format
Assumptions:
(1)The City will provide one set of consolidated comments and edits on the Administrative and Final Draft Reports.

Task 9 2025 UWMP Update
We understand the importance of preparing and submitting a comprehensive, fully compliant UWMP on an expedited schedule. Having led updates to the City’s two most recent UWMPs, and through our ongoing work with the City and the Northern Cities Management Area Technical Advisory Committee, we bring an in-depth understanding of the City’s water supply portfolio. This familiarity allows us to efficiently update the UWMP while ensuring consistency with prior planning efforts and current regulatory requirements. Also, this project team has prepared over 20 UWMPs during the 2025 cycle and will apply lessons learned to effectively and efficiently prepare the City’s 2025 UWMP.

9.1 UWMP Sections Update
x Update Plan Preparationand System Description
Describe the purpose and background of the UWMP; coordination with other agencies and public outreach efforts; and plan adoption and submittal required by the UWMP Act.

Understanding and Scope of Work
2025 Water M ast er Plan and Urban Water Management Plan Update City of Pismo Beach | 26
Describe the City’s water distribution system, service area, population and demographics, climate, government structure, and known development projects. x Update System Demands
Update historical water demands based on customer consumption and total production data from 2021 through 2025.
Document SBx7-7 water use compliance based on DWR’s requirements. Conduct a water loss audit consistent with DWR requirementsfor use in the UWMP.
Use baseline water demand projections developed in Task 3.2for use in the UWMP. Develop estimated lower income household demand per UWMP requirements.
Update and provide a narrative description of the demand management measures (DMM) implemented by the City based on any changes to DMM implementation since the 2020 UWMP and DWR requirements.
x System Supplies and Water Shortage Contingency Planning Describe water supply sources, existing and projected supply volumes, potential future water supply options, and future water supply projects. Describe reliability of the City's water supply and projection of the reliability of the water supply through 2050. The description shall include normal water year, single GU\\HDUDQGGURXJKWODVWLQJ¿YH\HDUV
Update the City’s Water Shortage Contingency Plan (WSCP) integrating components from the 2025 UWMP.

Assumptions:
(1)City will provide all required data necessary to update the UWMP. (2)System supply descriptions from the 2025 Northern Cities Management Area Annual Report will be utilized for the UWMP.
(3)The City will provide direction on supply and reliability assumptions given current Lopez Lake litigation and groundwater yield projections. WSC does not anticipate analysis of potential changes to entitlement based on evolving downstream release and storage scenarios.
(4)The WSCP will only require minor updates.

9.2 UWMP Report Update
x Prepare an Administrative Draft UWMP:
Compile work completed in Task 9.1 into the UWMP report following DWR’s 2025 Guidebook.
Compile all appendices into an electronic file in PDF format. Update DWR’s UWMP checklist with relevant sections of the UWMP Perform quality control reviews of deliverable.
Submit to the City for review.

Council Agenda 5-5-2026 9.G-15
Attachment 2
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Understanding and Scope of Work
2025 Water Master Plan and Urban Water Management Plan Update City of Pismo Beach | 27
Deliverables: One (1) electronic copy of the Administrative Draft UWMP.

Assumptions: City will provide one set of consolidated comments within two weeks of delivery of the Administrative Draft UWMP.
x Prepare a Final Draft UWMP:
Incorporate comments and direction from the City provided on the Administrative Draft. Prepare the Final Draft UWMP and compile all appendices into an electronic file.

Deliverables: One (1) electronic copy of the Final Draft UWMP.

Assumptions: City will provide one set of consolidated comments within two weeks of delivery of the Final Draft UWMP.

NOTE: To accelerate the UWMP schedule,the Final Draft UWMP step could be skipped assuming that the City does not have substantial comments on the Admin Draft UWMP. x Prepare aPublic Draft UWMP:
Incorporate comments and direction from theCity provided on the Final Draft.

Prepare the Public Draft UWMP and compile all appendices into an electronic file in PDF format.

Deliverables: One (1) electronic copy of the Final Public Draft UWMP.

Assumptions: The City will print hardcopies of the Public Draft UWMP and keep a copy in its office for public review.
x Prepare a Final UWMP
Review public comments with the City, incorporate selected comments from the Public Draft Hearing, including the public and the City Council. Insert the City Council’s UWMP and WSCP adoption resolution(s). Prepare the Final UWMP and compile all appendices into an electronic file in PDF format. Report in the standardized water use reporting form established by DWR. Prepare and submit an electronic copy of the UWMP to DWR, including any standardized forms, tables, or displays specified by DWR.

Deliverables:
(1) One (1) electronic copy of the Final UWMP to the City, County, surrounding agencies, wholesale suppliers, DWR, and the California State Library.

Assumptions: The UWMP scope assumes two draft UWMPs for internal City Review, a Public Draft UWMP, and a final UWMP consistent with the scope provided in the RFP.

Depending on the of comments the City provides on the Administrative Draft UWMP, we may be able to skip the Final Draft UWMP and develop the Public Draft UWMP to expedite the schedule.

Understanding and Scope of Work
2025 Water Master Plan and Urban Water Management Plan Update City of Pismo Beach | 28
Task 10 Public and Adoption Support
WSC will provide the City support for the UWMP public hearing and adoption and WMP adoptions, including preparation of presentation materials and presenting at the City Council.

10.1 UWMP Presentation Support
x Prepare PowerPoint presentation and materials to support the UWMP Public Hearing and Adoption.
x Attend the public hearing to present the 2025 UWMP to the City Council and answer questions. Addressing City Council and public comments is included in Task 9.2.

10.2 WMP PresentationSupport
x Prepare PowerPoint presentation and materials to support the WMP Adoption meeting.
x Attend the WMP adoption meeting to present the WMP update and findings to the City Council and answer questions.
x Incorporate any revisions based on City Council direction, as needed, in the Final WMP report.

Assumptions: One WSC staff member will attend up totwo City Council meetings:
(1)For the UWMP Public Hearing and Adoption
(2)For the WMP presentation to the City Council.

Optional Task 1 Project Summary Sheets
Optionally, we are including scope to prepare summary sheets for each of the capital projects in the Water Master Plan. These were included in the previous Water Master Plan report.

O1.1 Capital Project Summary Sheets
y Develop one-page capital project summary sheets that summarizes the existing deficiency and need for the project, detailed description of the project, summarized project cost estimate, and individual project map.

Deliverables:
(1)Draft and Final Project Summary Sheets.

Assumptions:
(1)Fee estimate assumes project summary sheets for up to 30 capital projects.

Council Agenda 5-5-2026 9.G-16
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City of Pismo Beach
2025 Urban Water Management Plan and Water Master Plan 4/1ϲ/2026
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Billing rates, $/hr $415 $370 $291 $278 $278 $278 $188 $186 1 Project Management and Coordination

1.1 Project Administration 4 14 16 34 8,528$ -$ 8,528$

1.2 Coordination Meetings 2 1 15 2 1 15 36 8,945$ -$ 8,945$ SUBTOTAL 6 0 1 29 2 1 15 16 70 17,473$ -$ 17,473$ 2 Data Collection and Review

2.1 Data Request 2 4 2 2 16 26 5,814$ -$ 5,814$

2.2 Staff Interviews 6 8 14 3,172$ -$ 3,172$ SUBTOTAL 0 0 2 10 2 2 24 0 40 8,986$ -$ 8,986$ 3 Demand Evaluation and Projections

3.1 Planning and Design Criteria 1 4 5 1,030$ -$ 1,030$

3.2 Baseline Demand 4 16 16 36 8,568$ -$ 8,568$

3.3 Demand Envelope 2 12 16 30 6,900$ -$ 6,900$

3.4 Evaluation Criteria and Water Demand Projection Memo 1 4 10 20 35 8,022$ -$ 8,022$ SUBTOTAL 0 1 0 11 0 38 56 0 106 24,520$ -$ 24,520$ 4 System Condition and Operational Assessment

4.1 Condition Assessment 16 8 32 56 12,896$ -$ 12,896$

4.2 Operational Assessment 16 32 48 10,464$ -$ 10,464$ SUBTOTAL 0 0 16 24 0 0 64 0 104 23,360$ -$ 23,360$ 5 Hydraulic Model Development and Calibration

5.1 Update Water Model 6 24 30 6,180$ -$ 6,180$

5.2 Model Calibration 12 32 44 9,352$ -$ 9,352$

5.3 Model Update and Calibration Memo 2 4 12 18 4,108$ -$ 4,108$ SUBTOTAL 0 2 0 22 0 0 68 0 92 19,640$ -$ 19,640$ 6 Performance Evaluation and Capacity Analysis

6.1 Model Existing Conditions 8 20 28 5,984$ -$ 5,984$

6.2 Model Future Conditions 8 20 28 5,984$ -$ 5,984$

6.3 Pumping and Storage Analysis 4 16 20 4,120$ -$ 4,120$ SUBTOTAL 0 0 0 20 0 0 56 0 76 16,088$ -$ 16,088$ 7 Capital Improvement Plan

7.1 Develop Capital Improvement Projects 1 8 20 29 6,354$ -$ 6,354$

7.2 Prepare Cost Estimates 2 15 45 62 13,370$ -$ 13,370$ SUBTOTAL 0 3 0 23 0 0 65 0 91 19,724$ -$ 19,724$ Task
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2025 Urban Water Management Plan and Water Master Plan
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Billing rates, $/hr $415 $370 $291 $278 $278 $278 $188 $186 Task
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8 Water Master Plan Report

8.1 Administrative Draft Water Master Plan 8 20 6 60 94 21,468$ -$ 21,468$

8.2 Final Draft Water Master Plan 4 10 40 54 11,780$ -$ 11,780$

8.3 Final Water Master Plan 1 6 20 27 5,798$ -$ 5,798$ SUBTOTAL 0 13 0 36 6 0 120 0 175 39,046$ -$ 39,046$ 9 2025 UWMP Update

9.1 UWMP Sections Update 2 8 25 50 85 19,314$ 2,772$ 22,086$

9.2 UWMP Report Update 4 10 30 60 104 23,880$ -$ 23,880$ SUBTOTAL 0 6 0 18 55 0 110 0 189 43,194$ 2,772$ 45,966$ 10 Public Adoption and Support

10.1 UWMP Presentation Support 6 8 14 3,172$ -$ 3,172$

10.2 WMP Presentation Support 4 4 8 16 3,728$ -$ 3,728$ SUBTOTAL 0 0 0 10 4 0 16 0 30 6,900$ -$ 6,900$ COLUMN TOTALS 6 25 19 203 69 41 594 16 973 218,931$ 2,772$ 221,703$ 1 OT 1 Project Summary Sheets
OT 1.1 Capital Project Summary Sheets 30 120 150 30,900$ -$ 30,900$ OPTIONAL TASKS TOTAL 0 0 0 30 0 0 120 0 150 30,900$ -$ 30,900$ Rates are subject to revision as of January 1 each year.

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 *Optional Task Not Included in Contract Scope
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Council Agenda 5-5-2026 9.G-17
Attachment 2
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PISMO BEACH CITY COUNCIL STAFF REPOR
Agenda Item #9.H
Meetin Date: Ma 5, 2026
TITLE:

Approval of the Routine Street Maintenance Project for Proposed Fiscal Year 2027 Road Maintenance and Rehabilitation Account Funding (SB 1); Making a Determination of Exemption under the California Environmental Quality Act RECOMMENDATION:

Adopt a Resolution approving the Routine Street Maintenance project for proposed Senate Bill 1 Road Maintenance and Rehabilitation Account funding for Fiscal Year 2027 and making a Determination of Exemption under the California Environmental Quality Act.

DISCUSSION:

On April 28, 2017, the Governor signed Senate Bill (SB) 1, which is known as the Road Repair and Accountability Act of 2017. SB 1 increases fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees to help address basic road maintenance, rehabilitation, and critical safety needs for state highway and local streets and roads.

Beginning November 1, 2017, the State Controller began depositing these revenues into local governments’ newly created Road Maintenance and Rehabilitation Account (RMRA).

So far, the City has received $1,263,217 of RMRA funds through fiscal year (FY) 2025, as shown in Table 1:

Table 1. RMRA Funds Received by Fiscal Year
Fiscal Year RMRA Funds Received
FY 2018 $48,324
FY 2019 150,978
FY 2020 142,698
FY 2021 150,885
FY 2022 163,247
FY 2023 179,611
FY 2024 207,687
FY 2025 219,786
Total $1,263,217
The City is projected to receive $213,155 in FY 2026 of RMRA funds. The City anticipates another $225,983 in FY 2027 per the CaliforniaCityFinance.com RMRA Estimates as of January 2026. These funds are deposited in the City’s Gas Tax Fund RMRA account to support a budgeted street maintenance project. The California Transportation Commission (CTC) requests that cities and counties submit a Council-approved project list identified for proposed RMRA funding no later than July 1, 2026 to receive these funds in FY 2027. This project list must include a description and the location of each proposed Council Agenda 5-5-2026 9.H-1
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project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.

Maintenance of Effort
The amount that each City receives is based on a portion of the average of General Fund and Transaction Sales Tax Fund costs spent on street repairs and maintenance as reported to the State Controller’s Office for FY 2010, FY 2011, and FY 2012. For the City of Pismo Beach, this amount has been calculated to be $558,874. This level of funding is the City’s Maintenance of Effort, or required annual funding, from discretionary funds for street projects. Staff has reviewed the preliminary budgets for FY 2027 and project that the City will meet this requirement. The Routine Street Maintenance project is included in the City’s FY 2026 Budget and the majority of the budget will be carried forward to be spent in FY 2027.

Proposed Project for Road Maintenance and Rehabilitation Account Funding Staff has identified the Routine Street Maintenance project as a proposed project for RMRA funding. The Routine Street Maintenance project budget includes support from the RMRA funds. This project meets the eligibility requirements as described in Streets and Highways Code Section 2030(b)(1).

The Routine Street Maintenance project (Project) is located on El Portal, Indio Drive, Hermosa Drive, Florin Street, Beachcomber Drive, Silver Shoals Drive, Ebb Tide, Spyglass Drive, Solano Drive, Seacliff Drive and roadways in the St. Andrews neighborhood, Terrace Avenue, Shoreline Drive, Dell Court, Ocean View Avenue, and Bettiga Street in Pismo Beach, California. The Project includes maintenance and rehabilitation of existing roadways, including crack filling, striping, filling potholes and performing dig-outs. Construction of the Project is expected to begin on October 1, 2026 and is projected to be completed by September 30, 2027. And finally, the Project has a useful life ranging from 20 to 50 years.

Environmental
The proposed action is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resource Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical change in the environment. Therefore, the attached resolution makes a determination of exemption under CEQA.

Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) identifying the Routine Street Maintenance project for proposed RMRA funding.

FISCAL IMPACT:

The fiscal impact of adopting the attached resolution is the receipt of an additional $225,983 of funds to help offset cost of the Routine Street Maintenance project.

Council Agenda 5-5-2026 9.H-2
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ATTACHMENTS:

1. Resolution
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:

Council Agenda 5-5-2026 9.H-3
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RESOLUTION NO. R-2026-XXX

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

CALIFORNIA APPROVING THE ROUTINE STREET MAINTENANCT PROJECT FOR PROPOSED SENATE BILL 1 ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDING FOR FISCAL YEAR 2027 AND MAKING A DETERMINATION

OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, beginning November 1, 2017, the State Controller began depositing these revenues into local governments’ newly created Road Maintenance and Rehabilitation Accounts (RMRA), including $1,263,217 from Fiscal Year (FY) 2018 through FY 2025, a projected $213,155 in FY 2026 and $225,983 in FY 2027 for the City of Pismo Beach; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management Program to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the City’s 2025 Pavement Management Program Update found that the City’s streets and roads network are currently classified in “very good” condition overall and this revenue will help us maintain the overall quality of our road system and over the next decade will maintain our streets and roads in “very good” condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.

Council Agenda 5-5-2026 9.H-4
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WHEREAS, the California Transportation Commission (CTC) requests that cities and counties submit a Council-approved project list identified for proposed RMRA funding no later than July 1, 2026 in order to receive these funds in FY 2027, and which the project list must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, staff has identified the Routine Street Maintenance project located on El Portal, Indio Drive, Hermosa Drive, Florin Street, Beachcomber Drive, Silver Shoals Drive, Ebb Tide, Spyglass Drive, Solano Drive, Seacliff Drive and roadways in the St.

Andrews neighborhood, Terrace Avenue, Shoreline Drive, Dell Court, Ocean View Avenue, and Bettiga Street in Pismo Beach, California, as a proposed project for RMRA funding and this project meets the eligibility requirements as described in Streets and Highways Code Section 2030(b)(1); and
WHEREAS, the Routine Street Maintenance project includes maintenance and rehabilitation of existing roadways, including crack filling, striping, filling potholes and performing dig-outs; and
WHEREAS, the Routine Street Maintenance project is estimated to be completed by September 30, 2027 and has a useful life ranging from 20 to 50 years; and WHEREAS, the Routine Street Maintenance project is included in the City of Pismo Beach’s is included in the City’s FY 2026 Budget and the majority of the budget will be carried forward to be spent in FY 2027; and
WHEREAS, the proposed action is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resource Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical change in the environment.

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

1.The City Council hereby approves the Routine Street Maintenance project (Project) for proposed RMRA funding for FY 2027;

2. The Project is located in the on El Portal Drive, Indio Drive, Hermosa Drive, Florin Street, Beachcomber Drive, Silver Shoals Drive, Ebb Tide Lane, Spyglass Drive, Solano Drive, Seacliff Drive, and roadways in the St. Andrews neighborhood, Terrace Avenue, Shoreline Drive, Dell Court, Ocean View Avenue, and Bettiga Street in Pismo Beach, California;

3.The Project includes maintenance and rehabilitation of existing roadways, including crack filling, striping, filling potholes and performing dig-outs;

3.Construction of the Project is expected to begin on October 1, 2026 and is projected to be completed by September 30, 2027; and

4.The Project has a useful life ranging from 20 to 50 years; Council Agenda 5-5-2026 9.H-5
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5. The City Manager, or designee, is hereby authorized to submit the project list and application to the California Transportation Commission for any and all RMRA funds that may become available to the City and execute any and all documents necessary to implement and secure any and all such RMRA funds.

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of May 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
Council Agenda 5-5-2026 9.H-6
Attachment 1
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PISMO BEACH CITY COUNCIL STAF REPORT
Agenda Item #9.I
Meetin Date: Ma 5, 2026
TITLE:

Purchase of Replacement Vehicle for Fire Department; Related Budget Adjustments
RECOMMENDATION:

Adopt a Resolution:

1. Authorizing the purchase of one 2026 Yamaha FX Cruiser HO from PCP Motorsports in the amount of $18,308.18 and one Tilt Trailer from Southwest Trailer Sales in the amount of $6,690.77;

2. Accepting $14,000 in future grant revenues in Fiscal Year 2027 to reimburse the Motor Vehicle Replacement Fund; and

3. Appropriating related budget adjustments in Fiscal Years 2026 and 2027.

DISCUSSION:

The Fiscal Year (FY) 2026 Motor Vehicle Replacement (MVR) Fund budget includes $27,000 for the replacement of the Fire Department’s Rescue Water Craft (RWC) Boat and Trailer, including additional equipment needed to place the vehicle into service. Due to harsh conditions and ocean dynamics the boat and trailer operate in, staff recommends that the current RWC, Boat 64, and trailer be replaced.

Boat 64 (representative sample shown as Figure 1 below) and the trailer used to transport the boat are essential to maintain public safety on the beach. The RWC provides a critical long-term search platform for submerged or struggling victims that are outside of the surf zone such as beach visitors that are enjoying the surf zone and are swept out to sea in rip currents and become unconscious, storm creek crossing events that result in user and vehicle being swept out to sea, and long-term searches for missing persons. The purchase of the new RWC is vital in getting the quickest transportation to victims who cannot swim to shore on their own when seconds matter.

Figure 1. Representative Boat Type
In October 2025, the City’s Lifeguard Program applied for the 2025 Off-Highway Vehicle (OHV) grant in the amount of $14,000 for the replacement of the RWC-Boat 64. The San Luis Obispo County Parks and Recreation Commission recommended that the County Council Agenda 5-5-2026 9.I-1
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Board of Supervisors approve the $14,000 2025 OHV grant, which is expected to be available July 1, 2026. The City’s Lifeguard Program has been 100% successful in obtaining grants from the Board of Supervisors as recommended by the County Parks and Recreation Commission.

The benefits of purchasing the vehicle prior to July 1, 2026 are:
The current RWC has frequent mechanical issues and is not reliable first-out response equipment.
The vehicle will be outfitted prior to the City’s peak summer season. Eligible to maintain the City’s USLA RWC certification.

Conclusion and Recommendation
Staff recommends that the Council adopt a resolution (Attachment 1) authorizing the purchase of one 2026 Yamaha FX Cruiser HO from PCP Motorsports in the amount of $18,308.18 and a Tilt Trailer from Southwest Trailer Sales in the amount of $6,690.77, accepting the future grant revenues in the amount of $14,000 in FY 2027 to partially reimburse the Motor Vehicle Replacement Fund for the purchase; and appropriating related budget adjustments in FY 2026 and FY 2027.

FISCAL IMPACT:

The fiscal impact of adopting the subject resolution is an additional expenditure of $34,998.95, offset by grant revenues of $14,000, for a net cost of $20,998.95. The FY 2026 Motor Vehicle Replacement (MVR) Fund budget includes $27,000 to replace Boat 64 (Vehicle number FDBoat64) including additional equipment needed to place the vehicle into service. As such, there is an expenditure shortfall of $7,998.95. Staff recommends that the Council appropriate an additional $8,000 in the FY 2026 MVR Fund capital outlay-automotive expenditure account to support the additional cost.

The San Luis Obispo County Parks and Recreation Commission recommended that the County Board of Supervisors approve the $14,000 2025 OHV grant, which is expected to be available in FY 2026. If approved by the Board of Supervisors, the funds will be available July 1, 2026.
Staff recommends that the Council appropriate an additional $14,000 in the FY 2027 MVR Fund state government grants account to reflect these grant revenues.

The available budget, costs, and proposed grant revenues are shown in Table 2 below.

Council Agenda 5-5-2026 9.I-2
Packet Page 77

Table 2. Fiscal Impact
Item Fiscal Impact
Budget
FY 2026 Motor Vehicle Replacement Fund RWC-Boat 64 Budget $27,000.00 Estimated Cost
2026 Yamaha FX Cruiser HO $18,308.18
Tilt Trailer 6,690.77
Equipment needed to place RWC-Boat 64 in service 10,000.00 Total Estimated Cost $34,998.95
Remaining/Shortfall $(7,998.95)
Proposed Expenditure Appropriation $8,000.00
Proposed Grant Revenues
FY 2025 OHV Grant Funds 14,000.00
Net Fiscal Impact (Grant Revenues less Expenditures over Budget) $6,000.00 ATTACHMENTS:

1. Resolution

2. PCP Motorsports Quote

3. Southwest Trailer Sales Quote
Prepared by: Michelle Pearson, Analyst I
Submitted by: Travis Craig, Division Chief
City Manager Approval:

Council Agenda 5-5-2026 9.I-3
Packet Page 78

RESOLUTION NO. R-2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE PURCHASE OF ONE 2026 YAMAHA FX CRUISER HO FROM PCP MOTORSPORTS IN THE AMOUNT OF $18,308.18 AND

ONE TILT TRAILER FROM SOUTHWEST TRAILER SALES IN THE AMOUNT OF $6,690.77; ACCEPTING $14,000 IN FUTURE GRANT REVENUES IN FY 2027 TO REIMBURSE THE MOTOR VEHICLE REPLACEMENT FUND; AND
APPROPRIATING RELATED BUDGET ADJUSTMENTS IN FISCAL YEARS 2026 AND 2027
WHEREAS, The Fiscal Year (FY) 2026 Motor Vehicle Replacement (MVR) Fund budget includes $27,000 for the replacement of the Fire Department’s Rescue Water Craft (RWC) Boat 64 and Trailer, including additional equipment needed to place the vehicle into service; and
WHEREAS, due to harsh conditions and ocean dynamics the boat and trailer operate in, staff recommends that the current RWC Boat 64 and trailer be replaced; and WHEREAS, in October 2025, the City’s Lifeguard Program applied for the 2025 Off- Highway Vehicle (OHV) grant in the amount of $14,000 for the replacement of the RWC- Boat 64; the San Luis Obispo County Parks and Recreation Commission recommended that the County Board of Supervisors approve the $14,000 2025 OHV grant, which is expected to be available July 1, 2026; and
WHEREAS, the City’s Lifeguard Program has been 100% successful in obtaining grants from the Board of Supervisors as recommended by the County Parks and Recreation Commission.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the purchase of one 2026 Yamaha FX Cruiser HO from PCP Motorsports in the amount of $18,308.18 and one Tilt Trailer from Southwest Trailer Sales in the amount of $6,690.77, in accordance with the quotations attached to staff’s report dated May 5, 2026.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby accepts $14,000 in future OHV grant revenues from the County of San Luis Obispo in FY 2027 to reimburse the Motor Vehicle Replacement Fund for the purchase of the RWC Boat 64 and trailer.

BE IT FINALLY RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $8,000 in the FY 2026 MVR Fund capital outlay-automotive expenditure account and $14,000 in the FY 2027 MVR Fund state government grants account to support these purchases.

Council Agenda 5-5-2026 9.I-4
Attachment 1
Packet Page 79

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of May 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
Council Agenda 5-5-2026 9.I-5
Attachment 1
Packet Page 80

$0.00
$0.00
$0.00
$0.00
$0.00
,
$0.00
$37.00
$300.00
$0.00
$0.00
$18,308.18
$18,308.18
$1,368.18
$0.00
$16,499.00
$16,584.00
[email protected]
NONE
$0.00
805-773-7057
YAMAHA
$0.00
$0.00
$19.00
N

NON TAX IS DELIVERY
760 MATTIE RD
2026
$85.00
PISMO BEACH, CA 93449
$0.00
$0.00
FX1900A-CB
Nate Rodgers
YAMA3075J526
X

CITY PISMO BEACH
$16,499.00
Council Agenda 5-5-2026 9.I-6
Attachment 2
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PURCHASE AGREEMENT
INVOICE #-TBD

ORDER CONFIRMATION
QUOTE (Valid 10 days from Today's Date)
2430 Main Street * Ramona, CA 92065 NEW TRAILER
Phone: (760) 788-8900 Fax: (760) 789-7056 4/8/2026 Duns No: 080368401 Cage: 7Q5Y5
Purchaser(s)/Registered Owner(s)
Company Contact or Signer
Street Address
City, ST ZIP Code
Phone
Email
Vin #Make Year Stock #ORDER TBD
Taxable Options / Accessories Price 7,480.00$
INCLUDED 1,299.00$
INCLUDED 6,181.00$
INCLUDED (75.00)$
(75.00)$ 6,106.00$
-$ 70.00$
-$ 6,176.00$
Total Options / Accessories: (75.00)$ CA Sales Tax 0.0825 509.52$ EXEMPT -$
Non-Taxable Options Price -$
-$ 0 -$
-$ 3 5.25$
-$ -$
-$ 6,690.77$
Total Non-Taxable Options:-$ -$
Purchaser acknowledges that down payment will be forfeited in the event purchaser cancels order - Initials______________ 4/8/2026 4/8/2026
Dealer or Authorized Agent Date Purchaser or Authorized Agent Date 4/8/2026
Accepted By:

Dealer is not responsible for Factory delay. Dealer cannot guarantee any delivery date.

INCLUDES ALL REBATES AND

DISCOUNTS AVAILABLE
www.southwesttrailer.com
Model
All warranties, if any, by a manufacturer or supplier other than dealer are theirs, not dealer's, and only such manufacturer or other supplier shall be liable for performance under such lf. Dealer hereby disclaims all warranties, express or
es sold by dealer, and (B) on all used vehicles which are here -not expressly warranted or guaranteed".
ord
ered hereby, and that THIS ORDER SHALL NOT BECOME
BINDING UNTIL ACCEPTED BY DEALER OR ITS AUTHORIZED REPRESENTATIVE. There are no representations, agreements, terms or conditions not contained or referred to herein. of
dealer employ legal counsel to enforce any obligation of rei
ledges that he has read the terms and conditions and has Council Agenda 5-5-2026 9.I-7
Attachment 3
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.J
Meetin Date: Ma 5, 2026
TITLE:

Purchase of Replacement Vehicle for Public Works Department Wastewater Division
RECOMMENDATION:

Adopt a Resolution authorizing the purchase of one replacement Public Works Wastewater vehicle (WW122) from Altec Industries, Inc. in an amount not to exceed $231,683.45 in Fiscal Year 2026.

DISCUSSION:

The Fiscal Year (FY) 2026 budget includes $200,000 for one new Ford 550 Super Duty Diesel, as a replacement for the current 2012 Ford 550 Super Duty Public Works wastewater vehicle, WW122.

This vehicle is used in the Public Works Utilities Division in daily operations to support the City’s wastewater collections system and Wastewater Treatment Plant and is vital to the City’s wastewater operations and emergency response. It is used to service and maintain the City’s twelve remote sewer lift stations and to remove/install heavy components such as pumps and motors. Staff utilizes the specialized crane to access and assist with the heavy work, often in elevated or difficult to reach areas. The vehicle allows staff to carry all needed tools and equipment to multiple job sites throughout the day and is stocked with all needed equipment for emergency response during power outages, pump failures and other critical equipment failures. The vehicle is also equipped with confined space safety equipment/supplies. The utility bed/crane was originally purchased in 2000 and mounted on the previous wastewater tool truck. The bed/crane was transferred to the current WW122 in 2012. The vehicle has significant amounts of corrosion and mechanical problems that limit the reliability and efficiency of the vehicle.

Staff located a Ford 550 Super Duty Diesel vehicle under the Altec Industries, Inc. (Altec) Sourcewell cooperative government purchasing agreement #110421 (Attachment 3).

The City’s Purchasing Policy authorizes cooperative purchasing agreements of this type, as the contract was competitively solicited, the vehicle meets the City’s specifications, and the pricing is approximately $45 thousand less than if the City procured this directly from the vendor. The Altec quote is provided as Attachment 2.

Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) authorizing the purchase of one replacement Public Works Department Wastewater vehicle from Altec in an amount not to exceed $231,683.45 in FY 2026.

FISCAL IMPACT:

The fiscal impact of adopting the subject resolution is $231,683.45 in the FY 2026 Motor Vehicle Replacement (MVR) Fund. The FY 2026 MVR Fund budget includes $200,000 Council Agenda 5-5-2026 9.J-1
Packet Page 83

for the replacement of the wastewater utility bed/crane vehicle No. WW122. To fully fund the estimated purchase cost, staff recommends that the Council appropriate an additional $32,000 in the FY 2026 MVR Fund capital outlay-automotive account. A summary of the current budget and estimated vehicle cost is provided in Table 1 below.

Table 1. Fiscal Impact
Item Fiscal Impact
Budget: FY 2026 MVR Fund WW122 Replacement $200,000.00
Estimated Cost: Altec Quote $231,683.45
Budget vs Estimated Cost Surplus/(Shortfall) ($31,683.45) Proposed Budget Adjustment:$32,000.00
Remaing Budget Surplus/(Shortfall) $316.55
The additional $32,000 will be funded by reallocating available balances from other wastewater vehicle replacement budgets.

ATTACHMENTS:

1. Resolution

2. Altec Quote

3. Sourcewell Cooperative Agreement
Prepared by:

Daniel Johnson, Facilities and Fleet Supervisor
Submitted by: Rosemarie R. Gaglione, PE, Director of Public Works City Manager Approval:

Council Agenda 5-5-2026 9.J-2
Packet Page 84

RESOLUTION NO. R-2026-XXX

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

CALIFORNIA AUTHORIZING THE PURCHASE OF ONE REPLACEMENT PUBLIC WORKS WASTEWATER VEHICLE (WW122) FROM ALTEC INDUSTRIES, INC. IN AN AMOUNT NOT TO EXCEED $231,638.45 IN FISCAL YEAR 2026 WHEREAS, the Fiscal Year (FY) 2026 budget includes $200,000 to replace the current 2012 Ford 550 Super Duty Public Works wastewater vehicle, WW122; and WHEREAS, this vehicle is used in the Public Works Utilities Division in daily operations for the City’s wastewater collections system and Wastewater Treatment Plant; and WHEREAS, staff located a Ford 550 Super Duty Diesel vehicle under the Altec Industries, Inc. (Altec) Sourcewell cooperative government purchasing agreement #110421; and WHEREAS, the City’s Purchasing Policy authorizes cooperative purchasing agreements of this type, as the contract was competitively solicited and the vehicle meets the City’s specifications, and the pricing is advantageous compared to a standalone City procurements.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the purchase of one replacement Public Works wastewater vehicle from Altec Industries, Inc. not to exceed the amount of $231,683.45 in FY 2026, in accordance with the quotations attached to staff’s report dated May 5, 2026.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates an additional $32,000 in the Motor Vehicle Replacement Fund capital outlay- automative account budget in FY 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 5th day of May 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 5-5-2026 9.J-3
Attachment 1
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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 5-5-2026 9.J-4
Attachment 1
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ST
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STEEL BODIES

FOR NEW EQUIPMENT SALES, CALL
800.958.2555

TO SPEAK WITH AN ALTEC REPRESENTATIVE
or visit us online at altec.com
Council Agenda 5-5-2026 9.J-5
Attachment 2
Packet Page 87

FEATURES
N E W E Q U I P M E N T S A L E S | 8 0 0 . 9 5 8 . 2 5 5 5 | S A L E S @ A LT E C . C O M | A LT E C . C O M For more complete information on Altec products and services, visit us on the web at www.altec.com . Material and specifications are subject to change without notice. Featured units in photos may include optional features. Please contact an Altec representative for all available options. Altec® and the Altec logo are registered trademarks of Altec Inc. in the United States and various other countries and may not be used without permission. © 2019 Altec Inc. All Rights Reserved. AIOSBODIESSTEELSERVICECRANE-0919-v1 •Integrated Steel Crane Support Structure
•Master Body Locking System
•Boom Support
•D-Ring Tiedowns in Cargo
•Outrigger interlocks
•Modular Track System for Hook and Shelf Installation
•3UHFRQÀJXUHG%RG\/HQJWKVRILQDQGLQORQJ
•Isolated Rear Crane Compartment

OPTIONS
• Electric Over Hydraulic Controls
• Sliding Bed Cover
• Mechanics Work Platform
• Work Lights
• Additional Paint Colors
• Drawer Kits
• Install Capabilities Including Generators, Welders,
Compressors, Idle Mitigation Systems
• Durable Non-Skid Spray in Bedliner
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PURPOSE BUILT
Council Agenda 5-5-2026 9.J-6
Attachment 2
Packet Page 88

Quote Number:

Opportunity Number:

Sourcewell Contract #:
1938475
25181542
6110421-ALT
Date:3/20/2026
REFERENCE ALTEC MODEL Sourcewell Price
Crane Service Body (Steel) with Auto Crane HC-6 Mounted On Ford F550 Su er Cab, Diesel, 4x4 $208,046
(A.)
1 2
3 4
(A1.)
1 2
3 4
5 6
7 8
9 10
SOURCEWELL OPTIONS TOTAL:$208,046
(B.)
1 UNIT $0
2 UNIT & HYDRAULIC ACC $0
3 BODY $0
4 BODY & CHASSIS ACC $0
5 ELECTRICAL $0
6 FINISHING $0
7 CHASSIS
8 OTHER Altec MY Price Adjustment -$4,383
OPEN MARKET OPTIONS TOTAL:-$4,383
SUB-TOTAL FOR UNIT/BODY/CHASSIS:$203,663.00
Deliveryto Customer:$10,656.00
CADoc/Admin/TireFees: $562.25
TOTAL FOR UNIT/BODY/CHASSIS: $231,683.45 (C.)
1 2
3 4
Altec Industries, Inc.

SOURCEWELL OPTIONS ON CONTRACT (Unit)
SOURCEWELL OPTIONS ON CONTRACT (General)
OPEN MARKET ITEMS (Customer Requested)
ADDITIONAL ITEMS (items are not included in total above) CB-S
Quoted for:City of Pismo Beach
**Pricing valid for 45 days**
NOTES
Altec Account Manager: Kyle Brunson, Mike Russell
PRICING:Altec will make everyeffort to honor this quotation, subject to thefollowingprovisions. Prices for equipment with production start dates 12 months and beyond are considered budgetarydue to potential cost inflation, market volatility, and tariff implications. These prices will be reviewed based on market conditions and confirmed closer to the productiondate. Quotes and orders with chassis model years beyond the current open order bank are estimates only. Altec's turn-keypricing is subject to change based onchassis pricing received fromthe OEM.

Chassis model year, specifications, and price willbe reviewed and confirmed when specific modelyear information becomes available fromthe OEM, and anychassis price difference, including adjustments for tariffs, willbe passed through to the customer.

PAINT COLOR:White to match chassis, unless otherwise specified WARRANTY:StandardAltec Warrantyfor Aerials and Derricks - One (1) year parts warrantyOne (1) year labor warrantyNinety(90) days TO ORDER:To order, please contact the Altec Account Manager listed above.

CHASSIS:Per Altec CommercialStandard
DELIVERY:TBDBased on availability, FOB Customer Location TERMS:Net 30 days
BEST VALUE:Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, OnlyLifetime Warrantyon StructuralComponents in Industry, Largest Service Network in Industry(Domestic and Overseas), Altec SENTRY Web/CD Based Training, Dedicated/Direct Gov't Sales Manager, In-ServiceTraining with EveryOrder.

TRADE-IN:Pleaseask your Altec Account Manager for more information Copy of Sourcewell 110421- City of Pismo Beach
Estimated taxes (8.25%): $16,802.20
Council Agenda 5-5-2026 9.J-7
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Sourcewell Contract # 110421-ALT | Amendment #1

AMENDMENT #1
TO
CONTRACT # 110421-ALT

THIS AMENDMENT is effective upon the date of the last signature below by and between Sourcewell and Altec Industries, Inc. (Supplier).

Sourcewell awarded a contract to Supplier to provide Public Utility Equipment with Related Accessories and Supplies to Sourcewell and its Participating Entities, effective January 12, 2022, through December 27, 2025 (Contract).

NOW, THEREFORE, the parties wish to amend the Contract as follows:

1. Line item 2 in “Table 1: Proposer Identity & Authorized Representative” of the Proposal is modified to add the following: “Altec Teupen and Altec Fenex.”

2. Line item 3 in “Table 1: Proposer Identity & Authorized Representative” of the Proposal is modified to add the following: “Altec Teupen and Altec Fenex.”

Except as amended by this Amendment, the Contract remains in full force and effect.

Sourcewell Altec Industries, Inc.

By: By:

Jeremy Schwartz, Chief Procurement Officer Brooklyn Russell

Date: Title:

Date:






  





 






 




 


Council Agenda 5-5-2026 9.J-26
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.A
Meetin Date: Ma 5, 2026
TITLE:

Fire Department Semi Annual Report
RECOMMENDATION:

Receive Fire Department briefing. No action recommended; for information only.

DISCUSSION:

Division Chief Travis Craig will deliver a report of Fire Department activities since the last report, which was provided in June of 2025.

FISCAL IMPACT:

This report is for informational purposes only and has no fiscal impact.

ATTACHMENTS:

1. May 2026 Fire Department Semi Annual Report
Prepared by:

Michelle Pearson, Analyst
Submitted by: Travis Craig, Division Chief
City Manager Approval:

Council Agenda 5-5-2026 12.A-1
Packet Page 109

Emergency Response

1. Emergency Response by Type

2. Year Incident Review

Lifeguard Program

1. USLA Academy-6 new recruits

2. Lead Lifeguard Academy

3. Watch Tower Program

Junior Lifeguard Program

1. Two 3-week sessions, numbers holding steady

Prevention

1. Special Events

2. Surf Events

3. Car Show

4. 4th of July

5. Weed Abatement Program

6. SB 1205 Inspections-annual has begun

Vegetation Management Program (VMP)

1. CAL FIRE Fuels Battalion Projects

a.

Lighthouse Unit 3-Fall

b.

Cave/Bluffs/Ontario Communication Site

c.

1000 Hills RX Burn-Fall

Pismo Fire Safe Council Focus Group

1. Grant cycle

2. First annual chipping event

Equipment

1. New Boat 64

2. New Cart 64

Council Agenda 5-5-2026 12.A-2
Attachment 1
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3. New Rescue-24 months to build
Grants

1. OHV

2. Cal Fire CCI Grant

3. Fire Safe Council
Council Agenda 5-5-2026 12.A-3
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PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.B
Meetin Date: Ma 5, 2026

TITLE:

Annual Military Equipment Report Per California Assembly Bill 481

RECOMMENDATION:

1. Receive the Annual Report on the City’s Military Equipment Use Policy;

2. Adopt a Resolution renewing the City’s Military Equipment Use Policy and Ordinance pursuant to Government Code §§7070–7075.

DISCUSSION:

Assembly Bill 481 (AB 481), codified at Government Code sections 7070 through 7075, requires a law enforcement agency (LEA) to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to the LEA funding, acquiring, or using military equipment as defined by the bill.

On April 5, 2022, the Council adopted Ordinance O-2022-003 (Military Equipment Use Policy Ordinance), codified as Pismo Beach Municipal Code Chapter 9.26, in accordance with the requirements of AB 481. The bill requires that staff return to the Council annually to provide a report on the City’s Military Equipment Policy and identify any necessary updates to the Policy (Attachment 2). The bill also requires staff to report any complaint(s) or concern(s) regarding the use of the equipment, results of any internal audits on the use of the equipment, the annual costs for the equipment, the quantity possessed by the agency, and the intention to purchase additional equipment in the following year.

Staff reviewed department records and determined there were no complaints or concerns regarding the use of military equipment in 2025. An internal audit (Attachment 3) was completed for calendar year 2025 documenting equipment use, annual costs, and inventory. The audit confirmed there were no violations of the City’s Military Equipment Policy.

Use of Equipment in 2025

Purposes of Deployment
The use of military equipment during the reporting period was limited. The Department’s Mobile Command Vehicle was deployed seven times. Two deployments were for command and control functions at pre-planned large-scale community events, specifically the Fourth of July celebration and the Just Cruzin’ Classic Car Show. One deployment supported the South County Regional SWAT Team by providing supplemental command and control during an operation in Paso Robles. The remaining four deployments were for community-oriented events, including Pizza on the Pier, Holiday Harmony, the Easter Eggstravaganza, and the Central Coast Chapter of Cops and Kids Field Day.

Council Agenda 5-5-2026 12.B-1
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The Department’s Unmanned Aircraft System (UAS) (drone) was deployed twice during the reporting period. One deployment supported environmental protection and fire mitigation efforts in open space areas that are difficult to access by conventional means.

The second deployment assisted in the search for a missing juvenile.

Patrol rifles, 40mm launchers, and PepperBall systems were deployed solely for training and qualification purposes. There were no other uses of military equipment during the reporting period.

Policy Compliance
All deployments were consistent with approved uses outlined in Department policy and were conducted for public safety, operational coordination, and community engagement purposes.

Cost
The total annual cost for the Department’s military equipment program for calendar year 2025 was minimal. No acquisition costs were incurred during this reporting period.

Personnel costs were limited to on-duty staff and did not result in additional staffing or overtime expenditures. Training was conducted in-house by certified instructors and did not require additional staffing or overtime. Fuel costs for the Mobile Command Vehicle were estimated by its use.

Funding for the military equipment program will continue to be provided through the Department’s existing operating budget.

Future Purchases
Staff does not intend to purchase additional military equipment in the upcoming year.

Community Outreach
The Annual Military Equipment Report was posted on the Police Department’s page of the City’s website on April 16, 2026, and will remain available for public review for as long as the equipment covered by the Policy is in use. The Department conducted a well- publicized community engagement meeting on April 24, 2026, in the City Council Chamber. The meeting was publicized in advance through the City’s website, the Department’s social media platforms, and the public notice board located outside City Hall. Members of the public were provided with an opportunity to ask questions and offer comments regarding the Department’s use of military equipment. No public comments or questions were received.

Conclusion and Recommendation
Staff recommends Council receive this report and adopt a resolution (Attachment 1) authorizing the renewal of Ordinance O-2022-003.

FISCAL IMPACT:

There is no direct fiscal impact from accepting the Annual Military Equipment Report.

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ATTACHMENTS:

1.Resolution

2.Pismo Beach Police Department Military Equipment Policy 707

3.Pismo Beach Police Department Military Use, Quantity, and Cost Audit Prepared by:

Dan Herlihy, Commander
Submitted by: Jeff Smith, Chief of Police
City Manager Approval:

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PAGE 1 OF 2
R-2026-___
RESOLUTION NO. R-2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA RENEWING THE CITY’S MILITARY EQUIPMENT USE POLICY AND ORDINANCE PURSUANT TO GOVERNMENT CODE §§7070–7075
WHEREAS, Assembly Bill 481, codified at California Government Code §7070–7075, requires law enforcement agencies to obtain approval for the use of military equipment and to annually report on such use; and
WHEREAS, the City Council on April 5, 2022 adopted a Military Equipment Use Policy by ordinance, governing the use, acquisition, and oversight of military equipment by the Pismo Beach Police Department; and
WHEREAS, pursuant to California Government Code § 7071(e)(1), the City Council must annually review the Police Department’s military equipment use and determine whether to renew the authorization for such use; and
WHEREAS, the Police Department has submitted its Annual Military Equipment Report for calendar year 2025 in accordance with California Government Code §7072; and WHEREAS, pursuant to California Government Code §7072(a), the Annual Military Equipment Report has been made publicly available on the Pismo Beach Police Department’s internet website; and
WHEREAS, pursuant to California Government Code §7072(b), the Pismo Beach Police Department held a well-publicized community engagement meeting on April 24, 2026, at which members of the public were afforded the opportunity to discuss and ask questions regarding the Annual Military Equipment Report and the Department’s funding, acquisition, and use of military equipment; and
WHEREAS, the Annual Military Equipment Report includes information regarding the use of military equipment, any complaints or concerns received, the results of internal audits, the annual costs, and the quantity of equipment possessed.

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

1. The City Council has reviewed the Police Department’s Annual Military Equipment Report for calendar year 2025.

2. Pursuant to California Government Code §7071 subdivision (e)(2), the City Council finds that each type of military equipment identified in the Military Equipment Use Policy has complied with the standards for approval set forth in subdivision (d) of that section.

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R-2026-___

3. The City Council hereby renews the Military Equipment Use Policy and Ordinance O-2022-003, codified as Pismo Beach Municipal Code Chapter 9.26, authorizing the use of military equipment by the Pismo Beach Police Department.

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of May 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

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Policy
707 Pismo Beach Police Department
Pismo Beach PD Policy Manual
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 1 Military Equipment
707.1 PURPOSE AND SCOPE
This policy establishes guidelines for the acquisition, funding, use and reporting of "military equipment", as the term is defined in Government Code section 7070. This policy is provided to fulfill the obligations set forth in Assembly Bill No. 481. These obligations include but are not limited to seeking approval on specific items deemed to be military equipment and requirements related to compliance, annual reporting, cataloging, and complaints regarding these items. 707.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
•Unmanned, remotely piloted, powered aerial or ground vehicles. •Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. •High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. •Tracked armored vehicles that provide ballistic protection to their occupants. •Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. •Weaponized aircraft, vessels, or vehicles of any kind. •Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
•Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
•Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
•Any firearm or firearm accessory that is designed to launch explosive projectiles. •Noise-flash diversionary devices and explosive breaching tools. •Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
•Area denial electroshock devices, microwave weapons, water cannons, long-range acoustic devices (LRADs), acoustic hailing devices, and sound cannons. •Kinetic energy weapons and munitions.
•Any other equipment as determined by a governing body or a state agency to require additional oversight.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 2 707.2 POLICY
It is the policy of the Pismo Beach Police Department that there are legally enforceable safeguards, including transparency, oversight, and accountability measures in place to protect the public's welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used.

Members of the Pismo Beach Police Department shall comply with the provisions of Government Code § 7071 with respect to military equipment.
707.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Pismo Beach Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
707.4 FUNDING
The Department shall seek council approval for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.

The Department has authority to apply for funding prior to obtaining council approval in the case of exigent circumstances. The Department shall obtain council approval as soon as practicable. 707.5 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 3 (a)Unmanned Aerial Systems (UAS)

1. Description, quantity, capabilities, and purchase cost of current UAS. (a) DJI Dual Enterprise Advanced

1. Cost: $5,500

2. Quantity: 1

3. Description: UAS that has color and infrared recording camera in addition to a detachable speaker and light. Approximately 30 minutes of flight time.

2. Purpose: To be used for aerial views of major crimes scenes, accident scenes, missing person searches, natural disaster management, SWAT or tactical missions, interior and exterior searches.

3. Authorized Use: Only assigned and trained UAS Pilots are authorized to operate PBPD UAS systems. All PBPD Pilots are certified by the FAA.

4. Life Span: 3-5 years.

5. Fiscal Impact: Annual maintenance and battery replacement is approximately $1500.

6. Training: All PBPD UAS operators are licensed by the Federal Aviation Administration for UAS operations. Additionally, each operator must complete the PBPD training course.

7. Legal and Procedural Rules: Use is established under FAA Regulation 14 CFR Part 107, and the PBPD UAS policy. It is the policy of the PBPD to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law. (b)Unmanned Aerial Systems (UAS)

1. Description, quantity, capabilities, and purchase cost of current UAS. (a) DJI Dual Enterprise Advanced

1. Cost: $5,500

2. Quantity: 1

3. Description: UAS that has color and infrared recording camera in addition to a detachable speaker and light. Approximately 30 minutes of flight time.

2. Purpose: To be used for aerial views of major crimes scenes, accident scenes, missing person searches, natural disaster management, SWAT or tactical missions, interior and exterior searches.

3. Authorized Use: Only assigned and trained UAS Pilots are authorized to operate PBPD UAS systems. All PBPD Pilots are certified by the FAA.

4. Life Span: 3-5 years.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 4

5. Fiscal Impact: Annual maintenance and battery replacement is approximately $1500.

6. Training: All PBPD UAS operators are licensed by the Federal Aviation Administration for UAS operations. Additionally, each operator must complete the PBPD training course.

7. Legal and Procedural Rules: Use is established under FAA Regulation 14 CFR Part 107, and the PBPD UAS policy. It is the policy of the PBPD to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law. (c)Mobile Command Vehicle

1. Description, quantity, capabilities, and purchase cost. (a) 2021 LDV Command Vehicle

1. Cost: $378,000

2. Quantity: 1

3. Description: 32-foot self-sustained gas powered mobile command vehicle with dispatch capabilities and command and control office space.

2. Purpose: To be used as a mobile command post for large incidents, crime scenes, community events, emergencies, and tactical situations.

3. Authorized Use: Only officers trained the operation of the mobile command vehicle may drive/operate the vehicle.

4. Lifespan: 30 years.

5. Fiscal Impact: Annual Maintenance of $1000.

6. Training: Drivers/Operators of the MCV shall have approved PBPD training and appropriate State of California drivers license.

7. Legal and Procedural Rules: It is the policy of the Department to use the Mobile Command Vehicle only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles. (d)40mm Launchers and Rounds

1. Description, quantity, capabilities, and purchase cost. (a) Defense Technology, 40mm single shot launcher.

1. Cost: $870

2. Quantity: 8

3. Description: Single shot launcher that fires standard 40mm less lethal ammunition.

2. Purpose: To limit escalation of conflict where employment of lethal force is prohibited or undesirable.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 5

3. Authorized Use: Situations for which the launchers may be used may include, but are not limited to:
(a) Self-destructive, dangerous, and/or combative behavior. (b) Riot/crowd control and civil unrest.
(c) Circumstances where a tactical advantage can be obtained. (d) Potentially vicious animals.
(e) Training exercised or approved demonstrations.

4. Lifespan: 15 years.

5. Fiscal Impact: Annual maintenance is estimated to be $100 annually.

6. Training: Sworn members using 40mm less lethal munitions are trained in their use by POST Certified instructors.

7. Legal and Procedural Rules: It is the policy of the PBPD to utilize the 40mm only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force
(e)Less Lethal PepperBall Launcher

1. Description, quantity, capabilities, and purchase cost (a) PepperBall Launcher

1. Cost: $1,000

2. Quantity: 2

3. Description:PepperBall, Compressed-air powered launcher designed to fire non-lethal PepperBall projectiles.
(b) PepperBall Live Projectile

1. Cost: $1.00 per round

2. Quantity:500

3. Description: Non-lethal ½ inch round projectile for direct impact or area saturation. Discharged from a PepperBall Launcher, the projectile has a velocity of 280-425 FPS. The projectile has a direct impact of 150ft and an area of saturation of 390+ft. The projectile contains 2.5% PAVA powder.
(c) PepperBall Glass Breaker Projectile

1. Cost: $2.00 per round

2. Quantity:20

3. Description: Non-lethal ½ inch round projectile for direct impact to break glass to allow the deployment of PepperBall Live Projectile.

Discharged from a PepperBall Launcher, the projectile has a velocity of 280-425 FPS and is designed to break glass.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 6

2. Purpose: To limit escalation of conflict where employment of lethal force is prohibited or undesirable

3. Authorized Use: Situations for which the launchers/bean bags may be used may include, but are not limited to:
(a) Self-destructive, dangerous, and/or combative behavior (b) Riot/crowd control and civil unrest
(c) Circumstances where a tactical advantage can be obtained (d) Potentially vicious animals
(e) Training exercised or approved demonstrations

4. Lifespan:
(a) PepperBall Launcher- 15 years.
(b) PepperBall Live Projectile- 3 years.
(c) PepperBall Glass Breaker Projectile-5 years from date of manufacture.

5. Fiscal Impact: Annual maintenance is estimated to be $100 annually

6. Training: Sworn members using 40mm less lethal munitions are trained in their use by POST Certified instructors

7. Legal and Procedural Rules: It is the policy of the PBPD to utilize the PepperBall Launcher only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force (f)Rifles

1. Description, quantity, capabilities, and purchase cost (a) Colt M-4.223/5.56mm Caliber

1. Cost: $1300

2. Quantity: 3

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(b) Colt AR-15.223/5.56mm Caliber

1. Cost: $1,500

2. Quantity: 1

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(c) Bushmaster XM-15.223/5.56mm Caliber

1. Cost: $1,000
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Pismo Beach Police Department
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Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

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2. Quantity: 16

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(d) Aero Precision AP15.223/5.56mm Caliber

1. Cost: $1,000

2. Quantity: 2

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(e) Colt LE69446CQB.223/5.56mm Caliber

1. Cost: $1,500

2. Quantity: 2

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(f) Heckler &Koch 9mm MP5 Submachine Gun

1. Cost: $1,000

2. Quantity: 2

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(g) Remington Bolt Action.308 sniper rifle

1. Cost: $5,000

2. Quantity: 1

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
(h) Heckler & Koch HK416D.223/5.56mm Caliber

1. Cost: $1,500

2. Quantity: 2

3. Description: Guns that are fired from shoulder level, having a long spiral grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.

2. Purpose: To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 8

3. Authorized Use: Use is limited to PBPD officers that are POST certified and trained in rifle use.

4. Lifespan: 20 years.

5. Fiscal Impact: Annual maintenance for the rifle is approximately $100.

6. Training: Prior to using a rifle, officers must be trained by POST instructors and must pass an annual qualification.

7. Legal and Procedural Rules: It is the policy of the PBPD to utilize rifiles only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.
(g)Distraction Devices

1. Description, quantity, capabilities, and purchase cost (a) Defense Tech Low Roll Distraction Device

1. Cost: $50

2. Quantity: 9

3. Description: Distraction device that delivers a loud "bang" and flashing light.

2. Purpose: A distraction device is commonly used when trying to distract dangerous suspects during emergency situations such as hostage calls, search warrants, and violent crimes. These devices use atmospheric over-pressure and brilliant white light to temporarily distract for a tactical advantage.

3. Authorized Use: Distraction devices are only to be used by trained operators.

These devices are commonly used in high-risk situations commonly handled by a SWAT team.

4. Lifespan: No expiration.

5. Fiscal Impact: No annual maintenance.

6. Training: Prior to use, officers must attend and pass training provided by a POST certified instructor.

7. Legal and Procedural Rules: It is the policy of the PBPD to utilize distraction devices only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. (h)Tear Gas

1. Description, quantity, capabilities, and purchase cost (a) Defense Tech Riot Control Discharge Grenade, OC

1. Cost: $35/each

2. Quantity:20

3. Description: Delivers large plumes of smoke and OC agent.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 9

2. Purpose: To limit the escalation of conflict where employment of lethal force of prohibited or undesirable.

3. Authorized Use: Only officers trained in the use of chemical agents by a POST certified trainer are authorized to deploy chemical agents.

4. Lifespan: 5 years from manufacturing date.

5. Fiscal Impact: No annual maintenance.

6. Training: Sworn members using chemical agents are to attend a POST certified training prior to use.

7. Legal and Procedural Rules: It is the policy of the PBPD to utilize tear gas only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.
(i)Less Lethal Shotgun

1. Description, quantity, capabilities, and purchase cost. (a) Remington 870 Less Lethal Shotgun.

1. Cost: $900

2. Quantity: 2

3. Description: The Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principle of De-escalation. The shotgun is distinguishable by an orange butt stock and fore grip. (b) Defense Technologies Beanbag round

1. Cost: $5

2. Quantity: 10

3. Description: A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS).

2. Purpose: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

3. Authorized Use: Situations for use of the less lethal weapon systems may include, but are not limited to:
(a) Self-destructive, dangerous and/or combative individuals. (b) Riot/crowd control and civil unrest incidents.
(c) Circumstances where a tactical advantage can be obtained. (d) Potentially vicious animals.
(e) Training exercises or approved demonstrations.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 10

4. Lifespan:
(a) Remington 870 Less Lethal Shotgun- 25 years.
(b) Defense Technologies Beanbag round- No expiration.

5. Fiscal Impact: Annual maintenance is approximately $50.00 for each shotgun.

6. Training: All officers are trained in the 12 gauge less lethal shotgun as a less lethal option by in-service training. SWAT personnel receive additional training internally when they transfer to the unit. SWAT operators who utilize these munitions have been through and successfully completed a POST approved school.

7. Legal and Procedural Rules: It is the policy of the PBPD to utilize the Less Lethal Shotguns only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. 707.6 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 707.7 COORDINATION WITH OTHER JURISDICTIONS
The Pismo Beach Police Department participates in the San Luis Obispo County Regional Special Weapons and Tactics (SWAT) team and works closely with other local, county, state, and federal Council Agenda 5-5-2026 12.B-15
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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 11 law enforcement partners. In planned or exigent circumstances, and with the approval of the Chief of Police or their designee, military equipment may be deployed by these law enforcement partners to promote the safety and security of Pismo Beach community members. These agencies will have their own "Military Equipment" policy approved by their respective governing body. While operating in the jurisdiction of the City of Pismo Beach, the respective agencies will adhere to their department policy governing the use of military equipment. The Chief of Police or their designee will provide information during the annual report on the use of military equipment within the city limits of Pismo Beach by other law enforcement partners during Pismo Beach Police Department operational incidents.
707.8 MILITARY EQUIPMENT USE CONSIDERATIONS
The military equipment acquired and authorized by the Department is:
(a) Necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
(b) Reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

Military equipment shall only be used by a Department employee only after applicable training, including any course required by the Commission on Peace Officer Standards and Training, has been completed, unless exigent circumstances arise.
707.9 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee shall submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee shall also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory.

The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(a) A summary of how the military equipment was used and the purpose of its use. (b) A summary of any complaint or concern received concerning the military equipment. (c) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (d) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

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Pismo Beach Police Department
Pismo Beach PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/04/16, All Rights Reserved.

Published with permission by Pismo Beach Police Department ***DRAFT***Military Equipment - 12 (e) The quantity possessed for each type of military equipment. 707.10 COMPLIANCE
The Operations Commander will ensure that all Department members comply with this policy. The Operations Commander will conduct an annual audit with the assistance of the Support Services Commander. The Chief of Police or designee will be notified of any policy violations and, if needed, the violation(s) will be referred to the Internal Affairs Division and handled in accordance with Policy 1019. Violations of this policy shall be subject to disciplinary action, up to and including termination of employment. All instances of non-compliance will be reported to City Council via the annual military equipment report.

Any member of the public can register a questions or concern regarding military use equipment by contacting the Pismo Beach Police Department's Operations Commander. A response to the question or concern shall be completed by the Operations Commander within 30 days.

Any member of the public can submit a complaint to any member of the Department and in any form (i.e. in person, telephone, email, etc.). Once the complaint is received, it should be routed to the Internal Affairs Division in accordance with Policy 1019 (Personnel Complaints). 707.11 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

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Less Lethal PepperBall Launcher
1 8
2 7
0 Mobile Command Vehicle
40mm Less Lethal Single Shot
Launcher 0
Fuel Estimate annual
maint $300.00
Defense Tech Beanbag Round 10 0 No cost in 2025
Pismo Beach Police Department Military Equipment
Use and Inventory Log for Calendar Year 2025
Equipment Type Quantity Number of Uses Annual Cost
Council Agenda 5-5-2026 12.B-18
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