PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: October 6, 2026
TITLE:
Capital Improvement Program Semi-Annual Report
RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
The Ten-Year Capital Improvement Plan (CIP) is one of the most important planning documents for the City of Pismo Beach. This plan not only identifies immediate needs but also seeks to capture the long-term capital requirements of the City. Capital projects are typically projects that lead to the acquisition and/or construction of new assets or the improvement or extension of the useful life of existing capital assets. Capital assets include but are not limited to land, facilities, buildings, parks, playground equipment, streets and sidewalks, bridges, water, wastewater and storm drain infrastructure, technology systems and equipment, traffic control devices, and many other items that deliver public benefit for a prolonged period of time. This report will provide an update on CIP projects currently in progress.
Completed Projects
Cliff Avenue/Ocean Boulevard Utility Undergrounding
The project included undergrounding of the overhead utility lines along the bluff on Cliff Avenue and Ocean Boulevard in the vicinity of the Cliff Avenue/Ocean Boulevard Storm Drain Repair project. A Notice of Completion was approved by the City Council on September 15, 2026.
Dinosaur Caves Playground Expansion
The project expanded the footprint of the play area and installed the friendship swing in a new location. Construction was completed and the final playground inspection was completed in August 2026.
Public Safety Facility
At both the police and the fire station, the final electrical and long lead items, cabinets, and lockers are being installed. Remaining contract items and commissioning of building mechanical and HVAC systems is ongoing. Overall, the buildings warranty work is progressing, and building move in, emergency dispatch call center, and decommissioning of the old temporary facilities is progressing as scheduled with final contract notice of completion expected in December 2026.
Storm Drain Sink Hole Repairs
James Way and Capanna Street: Repair and restoration of a damaged 36-inch corrugated metal storm drain crossing James Way.
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Encanto Avenue and Shell Beach Road. Repair and restoration of a damaged 24- inch corrugated metal storm drain crossing Shell Beach Road.
Studies and Planning Documents
The City’s efforts to plan and prioritize construction projects also include the preparation of studies and planning documents that provide recommendations for future infrastructure improvements. Currently there are six of these plans that are ongoing and in the process of completion: the Sewer Master Plan, Urban Water Management Plan, Water Master Plan, Facilities Condition Assessment, Vision Zero Action Plan and ADA Transition Plan.
The Sewer System Management Plan has been completed in compliance with the City’s regulatory permit.
Sewer Master Plan (SMP)
The SMP provides a prioritized list of capital improvements related to the sanitary sewer system. This document was last updated in 2000. The consultant is currently working on the population projections and flow evaluations and compiling the data from recently completed collection system evaluations. Using the data projections and the evaluations the Consultant will identify capital improvement projects necessary to meet current and future wastewater system requirements.
Sewer System Management Plan (SSMP)
The SSMP provides a plan and schedule to properly manage, operate, and maintain all parts of the sanitary sewer system for regulatory compliance. The 2026 SSMP update evaluates the effects of growth, densification, and conservation on the City’s sewer collection system and identifies long-term strategies to renew existing assets, long term planning and capital improvement recommendations. The 2026 SSMP was adopted by City Council on April 21, 2026.
Urban Water Management Plan (UWMP) and Water Master Plan (WMP) The UWMP provides long-term water resources planning and demonstrates water supply reliability under normal as well as drought conditions. The current UWMP was developed in 2020 and is required to be updated following the California Department of Water Resources guidance to remain in compliance with California Water Code requirements.
The WMP evaluates the water system to identify capital improvement projects necessary to meet current and future water system requirements. The plan was last updated in 2020.
The consultant is currently in the process of collecting data for both plans to develop a list of importance for future water-related capital improvement projects.
Facilities Condition Assessment
This project included preparation of a comprehensive facilities condition assessment of all City-owned facilities and a long-term facilities maintenance plan. The consultant has delivered final reports for each facility and provided the City with access to software to easily view the City’s assets, their condition, and expected maintenance costs for the next 20 years. The consultant-provided data has been uploaded to our Asset Management Council Agenda 10-6-2026 12.A-2
Program. Staff will bring the final report to the Council at a future meeting as part of the next budget development process.
ADA Transition Plan Update
Under Title II of the ADA, the City is required to have a current Self-Evaluation and Transition Plan. The City contracted with Disability Access Consultants (DAC) through the California Joint Powers Insurance Authority (CJPIA) ADA Assistance Program to complete a comprehensive update of the 2014 Self-Evaluation and Transition Plan. DAC has completed its inspections of public rights-of-way, parks, and facilities and the data has be entered into the DACTrak software. Staff is currently entering estimated planned completion dates into the software for all records and anticipate all projected dates will be entered in the next six months. DAC is also working on the programmatic evaluation of policies, procedures, and practices. The initial draft was provided to staff for review in late September.
Vision Zero Action Plan
Staff secured a grant through the Federal Highway Administration (FHWA)’s Safe Streets and Roads for All program to complete a Vision Zero Action Plan. The plan will identify and prioritize projects that will eliminate or reduce roadway fatalities and serious injuries.
Staff anticipates releasing an RFP in November 2026, with consultant selection in January 2027.
Citywide Engineering & Traffic Study (Speed Survey)
The City routinely prepares Speed Surveys to justify posted speed limits and enable the Police Department to enforce these limits using electronic devices. California Vehicle Code (CVC) Section 40802 requires Speed Surveys to be updated every 7 to 14 years.
This project will update the City’s Speed Surveys, which was last approved in 2020.
Contract documents with a traffic engineering consultant are currently being prepared.
Title VI Plan Update
Title VI of the Civil Rights Act of 1964 provides that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. A consultant has been retained to perform an evaluation of and update to the City’s plan to ensure compliance with all federal requirements. It is anticipated the update will be completed by February 2027.
Under Construction
Ventana Sports Courts
Located on Ventana Drive (Ventana Sports Courts) the project consists of construction of one new tennis and two new pickleball courts, a parking lot and a crosswalk connecting Chumash Park to the Ventana Courts. The project is progressing with recent activity including paving of the courts on September 23, 2026.
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2026 Routine Street Maintenance
Regular routine maintenance of City streets benefits all residents and visitors who utilize the City's roadways and prolongs the useful life of the roadways. This project includes crack filling, performing dig-outs, filling potholes, ADA improvements, slurry sealing and striping. A construction contract was awarded and the Notice to Proceed was issued for work to begin on August 24, 2026. The contractor has completed digouts, crack sealing and ADA improvements at various locations. At the time of the writing of this report, slurry sealing is scheduled to begin the week of September 28, 2026. Project completion is anticipated for late October 2026.
Cliff Avenue/Ocean Boulevard Storm Drain
The project will repair the damaged storm drain outfall at the intersection of Cliff Avenue and Ocean Boulevard. The project is funded through the Federal Emergency Relief program. A construction contract was awarded and the Notice to Proceed was issued for work to begin on September 21, 2026.
Pier Avenue Storm Drain Repair
The project will replace the storm drain outfall pipe that was washed away during a storm event in January 2023. The project is funded through the Federal Emergency Management Agency (FEMA). A construction contract has been awarded and at the time of the writing of this report, work is anticipated to begin on October 5, 2026.
Eldwayen Park Sidewalk Re-route
The project will remove the existing sidewalk within the park and install a new decomposed granite path away from the edge of the bluff. A construction contract has been awarded and at the time of the writing of this report a preconstruction meeting is being scheduled. Construction is anticipated to begin in October.
Price Street/Ocean View Avenue Improvements
This project will provide increased pedestrian and cyclist safety at the intersection of Price Street and Ocean View Avenue. A construction contract has been awarded and at the time of the writing of this report a preconstruction meeting is being scheduled.
Construction is anticipated to begin in October.
Dolliver Street and Main Street Parking Lot Lighting
A three-month solar-powered parking lot streetlight demonstration pilot program has been completed, testing two different lighting systems. Both systems performed well and a purchase order has been issued for the preferred light that was installed during the pilot, as well as for additional lights to be installed in the Dolliver Street and Main Street parking lots. The lights are expected to be delivered in mid-October and a contractor will complete the installation following delivery. Installing solar-powered streetlights eliminates the high upfront costs of trenching and utility grid connection while providing immediate illumination.
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Huston Street – Well 31 Test Well
This project will construct a test well at the site of the future Well 31, currently in design.
A construction contract for the test well has been awarded and the Notice to Proceed was issued for work to begin on August 31, 2026. The drilling and pumping tests for Well 31 are anticipated to be completed by the end of November 2026.
Design
Sunset Palisades Lift Station Rehab and Force Main Relocation The Sunset Palisades Lift Station Rehabilitation and Force Main Relocation Project will rehabilitate the aging discharge piping at the lift station to maintain safe and efficient operations. The project will also relocate the existing force main which currently runs behind the residential properties along Searidge Court, into the City’s right-of-way. The project has been advertised for construction bids and a Request for Proposals for Construction Management, Inspection and Administration Services has also been advertised. Bids and proposals are due on October 15, 2026. The current estimated cost of construction is $1,540,000.
Addie Street Restroom Replacement
This project will replace the current restroom at the beach end of Addie Street, adjacent to the Addie Street parking lot, with a larger restroom. An alternative location at the end of Park Avenue is being investigated. Preliminary cost estimates for purchase of the restroom building at this location are in the $750,000 range and additional costs for surrounding site improvements are still being developed.
320/330 Main Street Parking Lot Design
The property at 320 and 330 Main Street, which was used as the location for the temporary Police Department during construction of the Public Safety Facility, is now vacant. The property will be converted into a parking lot connected to the existing parking lot at 321 Pomeroy Ave. A design contract has been executed and the consultant is working on 30% design plans. The current construction cost estimate is $950,000.
Huston Street - Well 31 - Production Well
This project will replace the existing Well 23 with a new water production well (Well 31) in a new location. Well 31 will be located on a parcel at the corner of Huston Street and Farroll Road in Grover Beach. The well is currently in design, along with the design of a pipeline extension within Farroll Road. Test well results are required prior to finalizing the design. The test well project is underway.
Bello Reservoir Roof & Liner
This project will replace the existing Bello Reservoir roof and liner, both of which are past their useful life and in need of replacement. The project has been advertised for construction bids and a Request for Proposals for Construction Management, Inspection and Administration Services has also been advertised. Bids and proposals are due on October 29, 2026. The estimated cost for replacement of both the roof and liner is $740,000.
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Charles Street Reservoir Replacement Project
This project will replace the Charles Street Reservoir, located in Grover Beach, which is nearing the end of its useful life. The project is partially funded with a $500,000 grant from the U.S. Department of Housing and Urban Development (HUD). The current plans are at 95% design. Construction is anticipated to begin the second quarter of 2027 following completion of the Bello Reservoir and Roof Liner Project. The current construction cost estimate is $3.5 million.
2027 Drainage Improvements
This project includes drainage improvements intended to improve groundwater conditions along Placentia Ave and Boeker Ave in Shell Beach based on recommendations in the City’s Drainage Master Plan Update. Drainage improvements will include surface concrete and flowline improvements, drain inlets, longitudinal perforated or slotted underdrains, and new solid wall trunkline storm drains. Following the drainage improvements, the roadway will be repaired with a mill & overlay. A design contract is being presented for Council approval under a separate report at tonight’s meeting.
2027 Roadway Maintenance Project
This project consists of roadway maintenance improvements based on recommendations from the City’s Pavement Management Plan including crack fill, localized dig outs, slurry seal, overlay and mill & overlays. The improvements also include concrete and flowline improvements with ADA improvements incorporated where required based on field conditions. A design contract is being presented for Council approval under a separate report at tonight’s meeting.
Shell Beach Road Shared Use Path – Phase 2 and Phase 3
The “Phase 2” project will connect Avila Beach Drive to Spyglass Drive with a multimodal path. The “Phase 3” project will connect Spyglass Drive to Terrace Drive with a multimodal path. Phase 2 design is funded through a combination of Trade Corridor Enhancement Program (TCEP) and Surface Transportation Block Grant Program funds. The Phase 2 design had progressed to the 95% level, but due to a construction funding shortfall, the consultant has paused construction level design work on Phase 2. Working with SLOCOG and the City, the consultant is now completing preliminary survey and right of way work for future 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. 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.
Cliff Avenue Parking
The project will pave and stripe parking stalls at 90° angles in the currently unpaved right- of-way along the south side of Cliff Avenue. Design is in progress and currently at the 90% level. Construction is anticipated to begin the Fall 2028 following completion of the adjacent Cliff Avenue/Ocean Boulevard Storm Drain. The current construction estimate is $1,255,900. Once the final plans and estimate have been completed, staff will return to Council to discuss funding options.
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James Way Irrigation Controllers
This project will install electrical service to the irrigation controllers installed with the James Way Beautification project. The consultant has prepared 60% design plans. The current construction estimate is $152,916.00, not inclusive of PG&E engineering/design/construction or any other soft costs.
Toucan Terrace Sewer Pipe Replacement
This project includes replacement of 510 linear feet of sewer pipe at the Toucan Terrace sewer trestle. The existing sewer trestle pipeline has exceeded its service life and needs to be replaced. The trestle bridge support system also requires seismic upgrades. Draft plans and bid specifications are currently being developed for the Toucan Terrace Pipe Replacement project. The current estimated cost of construction is $307,000 and it is anticipated the project will be advertised for bids in the first quarter of 2027.
Bello/Wadsworth Paving and ADA Improvements
This project includes sections of grind and overlay on Bello Street, Wadsworth Avenue, Pismo Avenue and Hollister Avenue, as well as curb ramp and cross gutter improvements in the vicinity of the Public Safety Facility. The design consultant has prepared 90% plans and it is estimated construction will take place in Summer 2027. The current construction cost estimate is $450,000.
Butterfly Grove Enhanced Parking and Crosswalk
This purpose of the project is to improve parking and pedestrian crossing on Highway 1 at the Butterfly Grove. Staff and the consultant have been evaluating options and working on alternatives with State Parks and the Butterfly Grove Management. Construction would take place once the Highway 1 relinquishment has been finalized.
Vista Del Mar Stairs Foundation Repair
This project will repair the foundation of the existing Vista Del Mar beach access stairs. A consultant has prepared draft plans, and staff is proceeding with the Planning permit process. The current estimated cost of construction is $550,000 and it is anticipated the project will be advertised for bids in the first quarter of 2027.
Other Budgeted Projects on Deck in Fiscal Year 2027
Downtown Sidewalk Replacement
Battery Backup for City Owned Traffic Signals
Price Street Market Lighting Study
Ball Field Lighting Evaluation
Pismo Oaks booster station, Pacific Estates booster station, and Well 5 Variable Frequency Drives (VFD)
Addie Street Force Main
Boosinger Park Softfall Replacement
Highway 1 Traffic Signal Upgrades
Highway 1 Sidewalk Extension
Stratford and Wadsworth Sewer Lining
Oxidation Reduction
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Pier Promenade Transformation
Pismo Oaks Lift Station Rehabilitation
James Way Beautification Feasibility Report for Canyon Side Project Management and Tracking
The City’s robust CIP program requires staff to manage and track a large number of projects concurrently. To help ensure that projects stay on schedule and within budget, the Engineering Division utilizes Virtual Project Manager (VPM), a project management software program that allows staff to track and manage projects from initiation through construction. VPM provides a centralized system for managing key project components, including budget, pay applications, schedules, daily logs, submittals, requests for information (RFIs), change orders and punch list items. VPM also provides a chart view of the City’s CIP projects, allowing staff to view project schedules and key milestones across projects and identify potential scheduling conflicts or delays. The current chart view is provided as Attachment 1.
Conclusion and Recommendation
No action is recommended; for information only.
FISCAL IMPACT:
There is no direct fiscal impact associated with this report.
ATTACHMENTS:
1. VPM Project Chart
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie Gaglione, PE, Director of Public Works City Manager Approval:
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