PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.G
Meetin Date: u ust 18, 2026
TITLE:
Amendment #1 with Wallace Group for the Shell Beach Shared Use Path Extension Project
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the Agreement with Wallace Group for the Shell Beach Shared Use Path Extension Project to incorporate additional scope under the existing contract cost.
DISCUSSION:
The Shell Beach Road Shared Use Path (SBSUP) Extension project includes Phase 2 (from Avila Beach Drive to Spyglass Drive) and Phase 3 (Spyglass Drive to Terrace Avenue). On November 19, 2024, the City Council adopted Resolution R-2024-063, awarding a contract to Wallace Group (Wallace) in the amount of $926,857 for engineering design services for Phase 2 of the project. Design Phase 2 is funded through a combination of Trade Corridor Enhancement Program (TCEP) and Surface Transportation Block Grant Program funds totaling $1,008,000.
Construction of the project was intended to be funded as part of the overall $65 million TCEP funding for Caltrans’ Five Cities Multimodal Transportation Network Enhancement Project, which also includes the US 101 southbound managed lane project and a park and ride lot on Price Street south of Mattie Road. However, the construction cost came in higher than expected, leaving a shortfall of funding for the SBSUP. The City and The San Luis Obispo Council of Governments (SLOCOG) worked together to reduce the scope of the Phase 2 project to fit the programmed TCEP construction budget. A scope change request was submitted to the California Transportation Commission (CTC). On June 9, 2026 the City was notified that the CTC did not approve the scope change request, and the TCEP construction funding lapsed.
Staff has been working with SLOCOG to find an alternative funding strategy for construction. Staff plans to pause work on Phase 2 and beginning preliminary design of Phase 3 in order to prepare a combined Phase 2 and Phase 3 project to submit for a future Active Transportation Program (ATP) grant application. Currently there is $288,967 in Surface Transportation Block Grant Program funds remaining from the Phase 2 design budget. SLOCOG has confirmed that these funds can be applied to the design of Phase
3.Wallace’s existing Phase 2 design contract has $224,119 remaining of the original contract budget and has provided a proposal for a scope amendment to begin survey and right of way boundary work on Phase 3. This additional scope will be completed under the current contract cost and no additional budget is requested at this time.
Staff anticipates additional funding will be available through SLOCOG this fall and will return to Council to seek approval for a contract amendment to complete design of Phase 3 and appropriate additional grant funds at that time.
Council Agenda 8-18-2026 9.G-1
Conclusion and Recommendation
Staff recommends that the Council adopt a resolution (Attachment 1) authorizing the City Manager to execute Amendment #1 (Attachment 2) to the agreement with Wallace Group for the Shell Beach Shared Use Path Extension Project to incorporate additional scope under the existing contract cost.
FISCAL IMPACT:
There is no fiscal impact associated with this report, as the recommended Amendment does not incorporate any additional cost.
ATTACHMENTS:
1. Resolution
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie R. Gaglione, PE, Director of Public Works City Manager Approval:
Council Agenda 8-18-2026 9.G-2
RESOLUTION NO. R-2026-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1
TO THE AGREEMENT WITH WALLACE GROUP FOR THE SHELL BEACH SHARED
USE PATH EXTENSION PROJECT TO INCORPORATE ADDITIONAL SCOPE
UNDER THE EXISTING CONTRACT COST
WHEREAS, the Shell Beach Road Shared Use Path (SBSUP) Extension project includes Phase 2 (from Avila Beach Drive to Spyglass Drive) and Phase 3 (Spyglass Drive to Terrace Avenue); and
WHEREAS, on November 19, 2024, the City Council adopted R-2024-063, awarding a contract to Wallace Group (Wallace) in the amount of $926,857 for engineering design services for Phase 2 of the project; and
WHEREAS, due to a funding shortfall staff has been working with the San Luis Obispo Council of Governments (SLOCOG) to find an alternative funding strategy for construction; and
WHEREAS, staff plans to pause work on Phase 2 and beginning preliminary design of Phase 3 in order to prepare a combined Phase 2 and Phase 3 project to submit for a future Active Transportation Program grant application; and WHEREAS, Wallace has provided a proposal for a scope amendment to begin survey work on Phase 3 under the current contract cost and no additional budget is requested at this time.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 in substantially the form attached to staff’s report dated August 18, 2026 with Wallace Group for the Shell Beach Shared Use Path Extension Project to incorporate additional scope under the existing contract cost.
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 18th day of August 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 8-18-2026 9.G-3
Attachment 1
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Kirkwood, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Kirkwood, City Clerk
Council Agenda 8-18-2026 9.G-4
Attachment 1
AMENDMENT #1
to the
DECEMBER 2, 2024 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND WALLACE GROUP
Pursuant to the December 2, 2024 Agreement for Professional Engineering Design Services for the Shell Beach Road Shared Use Path Phase 2 Project between the City of Pismo Beach, hereinafter referred to as “City,” and Wallace Group, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.Additional services shall be performed as set forth in the proposal dated August 10, 2026, which is attached hereto and by this reference made a part hereof.
2.Timing of the additional services shall be as set forth in the referenced proposal. No additional compensation shall be provided for the additional services, without prior written approval of the City.
3.The term end date of the agreement is hereby revised to June 30, 2027.
4.All other provisions of the subject agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Rosemarie R. Gaglione, PE
Title: Director of Public Works
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: Dean J. Pucci
Title: City Attorney
VENDOR:
Wallace Group
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope Proposal
Council Agenda 8-18-2026 9.G-5
Attachment 2
August 10, 2026
Eric Eldridge
City of Pismo Beach
760 Mattie Road, Pismo Beach, CA 93449
Subject: Shell Beach Road Shared Use Path (SBRSUP) –Contract Amendment #1 Dear Eric,
Wallace Group and our partners are pleased and grateful for the opportunity to continue to support the City and regional partners with the Shell Beach Road Shared Use Path (SBRSUP) project.We respectfully present this request for approval of additional services based on our discussions.This request is a rescoping to apply remaining budget from last billing to Data Collection and Base Mapping services with supporting budget applied toProject Management and meetings. On a concurrent path San Luis Obispo Council of Governments (SLOCOG) is seeking to provide additional programmed support for an extension of the path design to the south, for Caltrans interface as the path is expected to need state right of way, and grant funding for final design and construction.
PROJECT UNDERSTANDING
The intent of this contract amendment is to pause further significant development of final designand other activities in Segment 2 and redirect remaining funds to pursue an extended project limits with overall scope of the project to include both Segment2 (Spyglass Drive to Avila Beach Drive) and 3(Terrace Avenue to SpyglassDrive). The effort described herein focuses primarily on survey work for the segment described below:
x Segment 2 (Spyglass Drive to Avila Beach Drive): Survey in this area will be augmented to overlap into state right-of-way in both segments 2A and 2B where it is anticipated that improvements will need to encroachinto those areas. x Segment 3 (Terrace Avenue to Spyglass Drive): Wallace Group will complete topographic and boundary survey for this added segment. The design of this segment is expected to include extension of the current trail on the east side of Shell Beach Rd to just south of the intersection at Spyglass Dr. To accommodate the expected widening of the existing corridor for a trail, encroachment into State right of way is expected.
Additionally, the design is to include sidewalkgap closures at various points along the westside of Shell Beach Road.
The following revised scope of services includes work required to pausethe prior final design scope, continue thesupport for City/SLOCOG/Caltrans interactions, and to complete survey of Segment 3.
Council Agenda 8-18-2026 9.G-6
Attachment 2
0012-0090 Shell Beach Road Shared Use Path -CA #1
City of Pismo Beach
August 10, 2026
SCOPE OF SERVICES
Task 1: Project Management, Meetings
This task includes Project Management and Meetings up to $25,000.
Task 1.1 Project Management
This task consists of project management and coordination throughout the duration of the project, including preparing monthly invoiceswith written project updates, and budget tracking. This task will also cover miscellaneous needs for project close out of the prior scope and continued support for City/SLOCOG/Caltrans Interactions.
Task 1.2 Meetings
The Wallace Group Project Manager will meet with the City Project Manager on a monthly basis to maintain communication and provide progress updates. Wallace Group will coordinate and attend review meetings expected for coordination with the County of San Luis Obispo and/or Caltrans staff. We assume that these meetings will be virtual and will be attended by the Wallace Group Project Manager and other key team members as Wallace Group deems appropriate. Wewill prepare an agenda for each meeting and follow up with relevant notes and action item listings.
Deliverables:
x Status reports and invoicing
x Schedule and updates
x Meeting agendas and notes
Task 2: Data Collection and Base Mapping
Task 2.1 Record Drawings Research
Wallace Group will add to our current records of the corridor, review, and incorporate record drawings, as-built improvement plans, and maps covering the extended project area. Wallace Group has a substantial library of record drawings for this corridor from our experience on the preliminary design. We anticipate supplementing these files using a Caltrans information request to obtain additional record drawings along US 101 and Shell Beach Drive from Spyglass Drive to Terrace Avenue. Utility atlas maps will also be obtained and incorporated as discussed in Task 2.3.1. Once the topographic drawing is completed, the record drawings, atlas maps, and as-builts will be used to reflect known elements onto the base map. This is an important step to reflect approximate utility locations and sizes, as well as to pick up background information.
Although no formal deliverable is anticipated to separately result from this task, we will save copies of this information as future reference for the base file and project plans as appropriate.
Council Agenda 8-18-2026 9.G-7
Attachment 2
0012-0090 Shell Beach Road Shared Use Path -CA #1
City of Pismo Beach
August 10, 2026
Task 2.2 Topographic and Boundary Survey
Task 2.2.1 Topographic Survey
The survey mapping will be constrained horizontally to the California Coordinate System of 1983 (CCS83), Zone 5 projection and vertically to the North American Vertical Datum of 1988 (NAVD88) and will be completed at a mapping scale of 1” = 20’ feet with one foot contour interval digital terrain model surface.
Survey control stations will be set near the edges of the project mapping limits so that they are likely preserved and available for construction survey staking control through construction along the route of the proposed improvements.
Wallace Group will again team with Aerotech Aerial Mapping to provide the additional aerial mapping and a digital terrain model for the project area within the approximate limits shown in blue in Figure 1. The aerial imagery will be used to provide planimetric features, such as edges of pavements, hardscape, brush and drip lines, signs, utility poles, and other items typical to standard practice. The compiled mapping will be completed at a mapping scale of 1” = 20’ with a one-foot contour interval.
Council Agenda 8-18-2026 9.G-8
Attachment 2
0012-0090 Shell Beach Road Shared Use Path -CA #1
City of Pismo Beach
August 10, 2026
The aerial mapping will be augmented by limited field survey to locate significant features not visible by aerial mapping techniques. Such visible features may includeedges of pavements, curb, gutter, sidewalk, driveways, walls, fences, street signs, road striping, utility poles and structures, overhead utility lines, manholes, inlets, subsurface drainage system flow lines, culvert diameters, utility markings, fire hydrants, buildings, brush and vegetation lines, and other items typical to standard practice. In this area we will also measure the invert elevation of storm and sewer structures and show the approximate size, material, and direction of flow of the pipes entering and existing these structures. Trees greater than four inches in diameter measured at four feet above ground and within the red mapping limits shall be located with their trunk size and drip lines depicted.
We will also collect measurements at the approximate conform locations described below:
1. Pavement conforms for the proposed path along the northeasterly side of Shell Beach Roadin Segment 3.
2. The proposed sidewalk location, highlighted magenta in Figure 1.
3. Two ADA conform locations, highlighted green in Figure 1.
4. Pavement conforms along the northeasterly side of Shell Beach Road for the road realignment in Segment 2A.
5. Pavement conforms along the eastern side of Shell Beach Road for the block wall and drainage improvements in Segment 2B.
For currently expected pavement conform measurements we will collect cross sections at an approximate 25 feet intervals along the northeasterly side of the mapping area, this includes one pavement measurement approximately five (5) feet from theedge of pavement,one at the edge of pavement, and additional existing ground measurements beyondthe cross- section locations that may have the ground obscured in the aerial mapping.
The conform measurements for the proposed sidewalk location will consist of collecting cross section measurements at approximate 25 feet intervals. These conform cross sections will include a pavement measurement at approximately five (5) feet fromthe edge of pavement and conform data beyond the pavement to the face of adjacent buildings or to fencing or walls.
The ADA conform locations will be mapped at a level of elevation detail and accuracy for the purpose of ADA design and will include approximately 100 to 150 linear feet of road length, with a cross-section spacing interval of every 10 feet. Each cross section will include measurements from five (5) feet behind the edge of sidewalk, assuming no obstructions exist such as buildings or fences to 10 feet into the roadway. The survey base map within this area will be prepared at a scale of 1" = 10' with a one-foot contour interval.
Council Agenda 8-18-2026 9.G-9
Attachment 2
0012-0090 Shell Beach Road Shared Use Path -CA #1
City of Pismo Beach
August 10, 2026
In addition to the pavement conform measurements in Segments 2A and 2B, tree locations will be located in the Caltrans encroachment areas.
In the area shown in red in Figure 1we expect to supplement the aerial mapping due to vegetative canopy obscuring the ground elevation. Where the existing ground elevation cannot be determined by aerial mapping techniques, we will collect cross section measurements at approximate 50 feet intervals within these highlighted red areas, including within the State right of way. We are assuming a Caltrans Encroachment permitfor surveying purposes will be required, and we have included this processing in our budget. We are also assuming that Caltrans will require traffic control and the shutting down of the shoulder for the work in these areas. Wallace Group will coordinate with a traffic control vendor to provide appropriate safety signage. For budge ng purposes, we have es mated that two (2) days of traffic control by the vendor will be sufficient.
For budgeting purposes, we have included five (5) -10 hours field survey days to complete the mapping work along with associated office time and have assumed that if outreach to propertyowners is desired it will be completed by the City of Pismo Beach.
Wallace Group will plot road construction alignments for Shell Beach Road. For US 101, the Caltrans right of way maps will be used for the alignment control, and for the City of Pismo Beach roads we will base the alignmentsoff provided record maps and document information, or the team will create best fit alignments. The road alignment will be compiled in a single Civil 3d, 2024 or newer,drawing file, and be part of our survey base map and deliverables.
Task 2.2.2 Right of Way and Easement Mapping
We expect to locate sufficient monuments to determine the right of way for the area shaded blue in Figure 1. The lines will be established based on a review of both Caltrans Right of way maps and available County of San Luis Obispo record maps. We will map easements shown on said maps or documents provided by the client. We anticipate locating sufficient monuments to extend the record right of way as shown shaded in blue in Figure 1. For budgeting purposes, we have assumed that the Citywill be providing the preliminary title report(s) for the adjacent properties where easement plotting is necessary and that up to 10 easements will be plotted.
For budgeting purposes, we have assumed that monument material discrepancies discovered during this task will be addressed as part of the record of survey map deliverable in Task 2.2.3.
If Task 2.2.3 is not completed and a record of survey or corner record is required per Sections 8762 and 8771.6 of the California Business and Professions Code this will be a City responsibility to fund that effort as it is currently not anticipated or included. If required, this will be discussedwith the City staff and Wallace Group will provide initial estimate of additional cost. Wallace Group survey staffwill diligently pursue this effort on a time and material basis andwill provide monthly updates.
Council Agenda 8-18-2026 9.G-10
Attachment 2
0012-0090 Shell Beach Road Shared Use Path -CA #1
City of Pismo Beach
August 10, 2026
Task 2.2.3 Property Transfer Support
This project is envisioned to encroach into State right of way at multiple locations. Wallace Group will prepare right of way transfer exhibits for these areas to define the location of the existing right of way or access control line, proposed improvements, and the proposed revised right of way limits for coordination with Caltrans. This task includes time to coordinate with Caltrans (up to two virtual meetings) to refine the property transfer process described in Task
2.2.4. We will also work with the City and Caltrans to assess if the property needs to be transferred or if the improvements can be accommodated in State right of way through an Encroachment Policy Exception (EPE) and Maintenance Agreement or other such vehicle.
Wallace Group has also assisted the City with legal descriptions and exhibits for two properties the City is facilitatingrights to along this corridor as part of other typical aspects of the property development or reconciliation of existing facilities. This ought to be a minimal effort to finalize as the City review comments are expected to be minimal in nature, and no changes to the previously defined areas will be needed.
ADDITIONAL SERVICES
Wallace Group can provide additional services not explicitly contained in this scope but desired by the City, directly or through sub-consultants, as additional services upon request with authorization of necessary additional budget.
TO BE PROVIDED BY THE CLIENT
x If a new DIR # is to be assigned the City will provide the DIR Project Number for this project. This is required to be in compliance with State of California Prevailing Wage laws.
x Preliminary title reports for all frontage properties to allow ROW delineation according to those records where deemed necessary by Wallace Group
ITEMS NOT INCLUDED IN SCOPE OF SERVICES
Services or deliverables not specifically named and included in the scope of work are explicitly excluded.
PROJECT FEES
Wallace Group will perform the services outlined above in accordance with the prior terms of the initial agreement. This is a no additional cost scope amendment that assumes all prior scope tasks are satisfied based onthe current stage of completion and the listed new tasks are assumed to be covered under the remaining previously approved budget.
Council Agenda 8-18-2026 9.G-11
Attachment 2
0012-0090 Shell Beach Road Shared Use Path -CA #1
City of Pismo Beach
August 10, 2026
At your request, additional services to the Scope of Services will be performed by Wallace Group following the signature of our Contract Amendment or the initiation of a new contract.
TERMS AND CONDITIONS
For clarity of terms and expectations our team will perform these services per the terms denoted in the original agreement dated December 2, 2024. If this proposal meets with your approval, please provide written authorization to our office, which will serve as our notice-to- proceed. We want to thank you for this opportunity to present this proposal. If you would like to discuss this proposal in greater detail, please feel free to contact me.
Sincerely,
WALLACE GROUP, a California Corporation
Jorge Aguilar, PE C48704
Principal
612 Clarion Court
San Luis Obispo
California 93401
T 805 544-4011
www.wallacegroup.us
THIS PROPOSAL IS VALID FOR 60 DAYS FROM THE DATE OF THIS DOCUMENT.
Council Agenda 8-18-2026 9.G-12
Attachment 2