Central Coast Blue Award of Design
Build Contract and Amendment to
the Owner’s Advisor Contract
Agenda Item 12.B
By Rosemarie Gaglione, PE
Public Works Director
Meeting Date: October 6, 2026
Opening Comments
•Central Coast Blue is a project that is the result of years of planning and hard work by many.
•Pismo Beach has demonstrated that protecting its water future is a top priority and this Project is a continuation of our commitment to water security.
•This is not about growth or development. This is about replacing water that has vulnerabilities.
•All of the current supplies in the region depend on rainfall, and they have all become less plentiful and less reliable over time
Opening Comments
•The technology that will be used in the Project has been proven over the last 50+ years.
•The scale of this Project is the future of recycled water and part of the State’s long term water sustainability
objective.
•Small cities can do big things when there is a vision, and the support of their City Council.
Background
•On June 23, 2025, the City Council directed staff to move forward to achieve the Project that is before you today •October 15, 2025: the City Council directed staff to
proceed with Fixed Price Design-Build as the
procurement delivery model
•February 23, 2026: the City Council awarded a contract for Owner’s Advisor Services for the procurement phase
of the Project to GHD, Inc.
Background
•April 3, 2026: the City issued a Request for Statements of Qualifications for Design-Build Services.
•May 8, 2026: the following three firms submitted
Statements of Qualifications (SOQs):
•Filanc
•GSE Construction Company, Inc.
•PERC Water Corporation
Background
•June 15, 2026: the City issued a Request for Proposals (RFP) for Design-Build Services
•August 13, 2026, proposals were received from the three qualified firms
•Following a process that included intensive reviews of all materials submitted and interviews with all three firms, PERC Water Corporation was selected as the Design-Build entity for Central Coast Blue.
Owner’s Advisor Services
November 10, 2025 – formal RFQ/RFP issued
•Four proposals received by the closing date of December 23, 2025 •Interviews were held with top three firms on January 14, 2026 •GHD, Inc. selected as the most qualified.
•Negotiations successfully concluded January 22, 2026
Owner’s Advisor Services - GHD
•Ensure compliance with the Design Conditions Report and the Contract; perform design reviews for verification
•Construction submittal review
•Ensure hydrology, wells and groundwater modeling, tracer study protocol, and anti-degradation analysis are appropriate
•Maintain schedule and risk register
•Ensure compliance with grant funding requirements
•Provide regulatory support throughout Project and for first six months of operation
Design-Build Services – PERC Water Corporation
•Will design and construct a 750 AFY AWPF
•All mechanical systems (pumps, motors, filters) will all be housed in a fabricated building for sound control and protection of equipment •Public improvements will meet Grover Beach standards
•Appropriate landscaping
•The Project includes a fire road connecting Barca and Huber Streets •Will coordinate with State agencies for startup and commissioning •Will provide up to 600 hours of Operator training and support
Design-Build Services – PERC Water Corporation
•The Project must meet all criteria in the Design Criteria Report for •Equipment type and quality / longevity
•Profile of purified water
•Operation and performance of all equipment
•The Project must come in within budget and schedule
•The facility must meet all performance measures
•Must pass regulatory muster
Aerial Perspective
Ba
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Calvin Ct.
Site Layout
Site Layout
Site Layout
Interior Spaces
Interior Spaces
Timeline
2026 2027
•Design Review and Workshops (October
‘26 – May ‘27)
•Submittals and Equipment Procurement
(May ‘27 – August ‘27)
Award and Execute Contract
(October 6, 2026)
Construction
(June ‘27 – February ‘28)•Facility startup & Performance testing (June ’28 - July ‘28)
•Substantial Completion
(Sept 17, 2028)
2028
Controls Programming &
Pre-operational Field Testing
(October ‘27 – June ’28)
2029
Training and Support May ‘28 – November ‘28
Project Closeout
(November ’28)
Intensive ongoing regulatory agency coordination and reporting through 2029 and beyond
Ongoing Coordination
To ensure that the project is fully operational by 2029, staff, consultants and contractors will be working with the following agencies during project development and the Design-Build process:
•California Department of Drinking Water
•Regional Water Quality Control Board
•California Water Resources Control Board
•Caltrans
•California State Parks
•County of San Luis Obispo
•City of Grover Beach
•Railroad
•South San Luis Obispo County Sanitation District (sewer line and outfall partner)
19 Working with our Funding Partners
UP TO
$12 millionTitle XVI WIIN
Act Program
$8 millionProposition 1
Groundwater
Grant Program
Executed
Agreements
Identified
for Funding
Clean Water State
Revolving Fund/
Revenue Bond
Water Recycling
Funding Program $15 million
UP TO
$15 million
GRANTS
GRANT
LOAN
Future Items Coming Before City Council
•Future Personnel Costs
•Operations of Facility
•Contracts and Services
•Construction Management
•Inspection Services
•Well 31
Fiscal Impact
A FY 2027 Available Budget Amount
Water Enterprise Fund $343,218
Wastewater Enterprise Fund $562,399
Total FY 2027 Available Budget $905,617
B Proposed Project Costs
PERC Water Corporation – Design-Build $39,790,682
GHD - Owner's Advisor Phase 2 Amendment 1 $2,233,443
Subtotal Agreements $42,024,125
Estimated Costs: Construction Management, Plan
Check, Permitting, etc.$8,543,169
Total Project Cost $50,567,294
C = A - B Budget Surplus / (Shortfall)$(49,661,677)
Recommendations
•Adopt a Resolution authorizing the City Manager to enter into an Agreement with PERC Water Corporation in an
amount not to exceed $39,790,682 for the construction
of the Central Coast Blue Advanced Water Purification
Facility and appropriating related budget adjustments in Fiscal Year 2027.
•Adopt a Resolution authorizing the City Manager to
execute Amendment #1 to the existing Professional
Services Agreement with GHD, Inc. for Owner’s Advisor
Services in an amount not to exceed $2,233,433
Questions?