Pismo Beach City Council
October 6, 2026

PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.B
Meetin Date: October 6, 2026

TITLE:

Award of Design-Build Contract and Amendment #1 to the Owner’s Advisor Contract for the Central Coast Blue Project

RECOMMENDATION:

1. 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;

2. 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 for the Central Coast Blue Project in an amount not to exceed $2,233,433.

DISCUSSION:

At the October 15, 2025, Joint Meeting of the Pismo Beach City Council, Pismo Beach Financing Agency Board of Directors, and Central Coast Blue Regional Recycled Water Authority Board of Directors, staff received direction to proceed with fixed-price Design- Build as the procurement delivery model for the design and construction of the Central Coast Blue Project (Project) and to procure an Owner’s Advisor.

Design-Build Team Procurement
On April 3, 2026, the City issued a Request for Statements of Qualifications for Design- Build Services for the Central Coast Blue Project. On May 8, 2026, the following three firms submitted Statement of Qualifications (SOQs):

 Filanc
 GSE Construction Company, Inc.
 PERC Water Corporation

After a thorough vetting process, all three firms were deemed qualified to participate further.

On June 15, 2026, the City issued a Request for Proposals (RFP) for Design-Build Services for the Central Coast Blue Advanced Water Purification Facility (AWPF). The RFP was by invitation to the three firms who had submitted qualifying SOQs.

On August 13, 2026, the City received proposals from the three qualified firms. All three firms submitted quality proposals, but after an evaluation process that included a two- hour interview with each firm, PERC Water Corporation (PERC) was determined to have submitted the best overall proposal.

Council Agenda 10-6-2026 12.B-1

While there was a slight price difference between the two lowest-cost Design-Build teams (~3.7%), both proposals were within the City's budget. Consistent with the fixed-price Design-Build delivery model and the complexity of the Project, the evaluation process appropriately prioritized qualifications, technical merit, risk reduction, and delivery confidence, while fully accounting for price through the established scoring methodology.

The intent has been to build a 500 acre-foot-per-year (AFY) AWPF that is expandable to 750 AFY at a future date. Given that the Design-Build team will already be at the site, staff asked them to provide an estimate for accelerating the plan and installing the necessary equipment at the plant as well as a stub out for future needs, should they be required.

There were two options considered. Option A would have PERC proceed with the current 500 AFY plant and the City could revisit the expansion at a later date. Staff asked PERC for an estimate to remobilize two years after the plant is constructed; that estimate is roughly $6 million.

Option B would have PERC execute the expansion to 750 AFY during this project; the proposed cost is $3,500,804. The ability to perform the expansion now, at a much lower cost than in the future will allow the City to keep the cost of water lower than performing it under a new contract two or more years after this project is completed. Staff is recommending that the City proceed with Option B, which has been included in the contract cost. PERC’s Fixed-Price Design-Build price is $39,790,682 for Option B.

Owner’s Advisor Services
On November 20, 2025, the City issued a formal Request for Qualifications/Proposals to acquire the services of a qualified firm to serve as the Owner’s Advisor for the Project.

On February 3, 2026, the Pismo Beach City Council approved the award of a contract for Owner’s Advisor Services to GHD, Inc. (GHD) in an amount not to exceed $461,438.

As the project Owner Advisor, GHD led the development of the Design Criteria Report (DCR) and compiled all supporting documentation, Design-Build RFQ/P and rating criteria, while ensuring alignment with project goals and risk management best practices.

GHD maintained a detailed risk register for the project, led efficient and effective team meetings and evaluated and responded to numerous Requests for Information throughout the procurement process. GHD has effectively performed as the Owner’s Advisor throughout this process.

While the process of selecting an Owner’s Advisor included the entire project, the current contract was awarded for the procurement process only. Staff recommends the amendment of the GHD contract for the next phase.

On September 22, 2026, GHD submitted a proposal for continued Owner’s Advisor Services through completion of the Project. The proposed Amendment #1 (Attachment 4) in the amount of $2,233,443 will cover the actual Design-Build process through to Council Agenda 10-6-2026 12.B-2

completion. This amendment also includes the expansion to 750 AFY and the transfer of the Well 31 project to PERC.

Future Contracts
Well 31
The award of the Design-Build contract and amendment to the Owner’s Advisor contract are necessary to begin the work immediately. Staff will be returning with an additional contract with PERC for the completion of the new extraction well, Well 31.

The City commenced with the design of Well 31 earlier this year because the condition of Well 23 is tenuous, and staff could not be sure of the outcome of the Project procurement process. Had this not been the case, the design and construction of Well 31 would have been included in the Project. Now that a reasonable price has been secured for the Project, staff has re-evaluated the risk of continuing the design-bid-build path vs. combining Well 31 with the Project.

The risk of the current approach is that once the Well 31 project goes out to bid, the risk of either not receiving any bids or receiving bids that are too high to proceed are concerns.

Additionally, once the project goes into construction, delays or other complications could further delay commissioning of the well. The larger risk is that the Project could potentially be operational before the new Well 31 is prepared to begin extracting water from the aquifer. This is not a risk that is worth taking.

The City has a separate budget for the design and construction of Well 31, and incorporating this work into the current Project is not anticipated to result in additional cost. Knowing that this would be a possibility, an Addendum was issued during the RFP solicitation process to ensure all proposers were aware of the potential additional scope.

PERC will provide a cost proposal once data from the test well currently in progress has been obtained.

Construction Management
When the Project moves into the construction phase in the spring of 2027, a Construction Management (CM) team will become necessary. A Design-Build contract is somewhat different than a design-bid-build contract in that there will not be constructability reviews.

It will be the responsibility of the Design-Build team to design a Project that can be constructed within their budget and meet all of the performance criteria in the contract.

CM will still be important; we will have off-site work in roadways, and tunneling beneath 4th Street, Highway 1 and the Railroad to connect to the outfall. On-site there will need to be record of materials and soils testing, ensuring that all materials meet specifications and Buy America Build America requirements, as well as ensuring labor compliance and other federal regulations. The CM will also enforce safety compliance and traffic control/impacts. It is estimated that the cost of CM will be approximately 5% of the Design- Build contract or $1,989,534.

Council Agenda 10-6-2026 12.B-3

Building Permit Plan Check
While the building site is located in Grover Beach, as a municipal corporation that owns property in another jurisdiction, the City may perform its own building permit inspections and issue a building permit. The City of Grover Beach is agreeable to the City taking this approach. The contract to perform building permit plan check is anticipated to be under $30,000.

Plan Check and Inspections to be Performed by Others
The City of Grover Beach will perform plan check and inspection of public improvements such as sidewalk, road work in its rights-of-way, as well as connections to their sewers and waterlines. Grover Beach will also approve traffic control and stormwater plans. The County of San Luis Obispo, Caltrans, and Union Pacific Railroad would review any plans related to work in their respective rights-of-way. Any work in the Railroad right-of-way will require a full-time flagger with per diem and travel expenses. Additionally, Five Cities Fire Authority will review for conformance with fire codes. The cost estimate for all agencies is $100,000.

Future Personnel Costs
Central Coast Blue will be an addition to the City’s operations and will require additional staff to operate legally and safely. Based on careful analysis and the experience of other agencies consulted, it is anticipated that three new Operators will be required once the AWPF is fully operational. When the plant is fully online, the half-time administrative position at the Wastewater Treatment Plant may need to be converted to a full-time position. The following additional staff with Advanced Water Treatment Operator (AWTO) certifications will be required:
One Chief Plant Operator with an AWTO 5 certificate
Two Operators with AWTO 3 certificates
Rather than seeking to hire AWTO certified Operators from the outside, the City intends to first provide existing Operators with the opportunity to certify. The City’s Utilities Manager will obtain their AWTO 3 and will then have three years to obtain their AWTO 5, according to recent conversations with the state. Current Operators who possess a Grade 3 Wastewater or Grade 3 Water Treatment certificate qualify to take the AWTO 3. Even so, if three of the City’s existing staff move into the new AWTO positions, those positions would need to be backfilled for Water and Wastewater.

These will be new positions with differing job duties, and requiring additional certification and will require staff to complete a separate classification and compensation study to incorporate them into the City’s Salary Schedule. Staff will return to the Council at a future date after Human Resources has conducted a classification study and the appropriate conversations with the labor union are completed.

Council Agenda 10-6-2026 12.B-4

Conclusion and Recommendation
Staff recommends that the Council adopt a resolution (Attachment 1) authorizing the City Manager to enter into an Agreement with PERC for Design-Build services in an amount not to exceed $39,790,682 and appropriating related budget adjustments in Fiscal Year 2027. Staff also recommends that the Council adopt a resolution (Attachment 2) authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with GHD for Owner’s Advisor services in an amount not to exceed $2,233,443.

FISCAL IMPACT:

The fiscal impact of adopting the subject resolutions is additional expenditures of $42,024,125 for Central Coast Blue, including $13,867,961 in the Water Enterprise Funds and $28,156,164 in the Wastewater Enterprise Funds in Fiscal Year (FY) 2027. The City’s FY 2027 Central Coast Blue budgeted expenditures are $489,179 across both the Water and Wastewater Enterprise Funds.

The City anticipates another estimated $8,543,169 to support construction management, plan check, legal, permitting, funding and financing support, outreach, procurement, and other costs. The total of the proposed agreements plus these estimated additional costs is $50,567,294. The net expenditure budget shortfall comparing the current budget with the proposed project costs is $49,661,677. The ongoing costs for the project include debt service costs, annual operating and maintenance costs, and replacement costs, which are not included in this report. Table 1 illustrates the FY 2027 expenditure budget, proposed project costs, and resulting budget shortfall.

Table 1: Fiscal Impact of Proposed Agreements and Central Coast Blue Projected Costs
A FY 2027 Available Bud et Amount
Water Enterprise Fund $343,218
Wastewater Enterprise Fund $562,399
Total FY 2027 Available Bud et $905,617
B Proposed Pro ect Costs
PERC Water Corporation Desi n-Build $39,790,682
GHD - Owner's Advisor Phase 2 Amendment 1 $2,233,443
Subtotal A reements 42,02 ,125
Estimated Costs: Construction Management,
Plan Check, Permitting, etc. $8,543,169
Total Pro ect Cost $50,567,294
C = A - B Bud et Surplus / Shortfall $49,661,677
Proposed Budget Adjustments
In order to update the City’s budget to reflect some of these costs, staff recommends appropriating the current shortfall of $49,661,677 of expenditures, including $16,388,353 Council Agenda 10-6-2026 12.B-5

in the Water Construction Fund and $33,273,324 in the Wastewater Capital Projects Fund, including appropriating related transfers between funds, in FY 2027.

ATTACHMENTS:

1. Resolution - PERC

2. Resolution - GHD

3. PERC Water Corporation Agreement (Online Only Attachment12)

4. GHD Amendment #1 to Vendor Agreement
Submitted by: Rosemarie Gaglione, PE, Director of Public Works City Manager Approval:

Council Agenda 10-6-2026 12.B-6
1 Full URL (Part 1): https://portal.laserfiche.com/Portal/DocView.aspx?id=805739&repo=r-f36a9aa0 2 Full URL (Part 2): https://portal.laserfiche.com/Portal/DocView.aspx?id=805741&repo=r-f36a9aa0

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 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
WHEREAS, the City desires to design and construct Central Coast Blue, an Advanced Water Purification Facility to create a new, high quality, and reliable water supply for the City of Pismo Beach, even in times of water shortage or drought; and WHEREAS, the City undertook a two-step process, consisting of a Request for Statements of Qualifications and Request for Proposals process, to find the most qualified construction and design team; and
WHEREAS, three proposals were submitted to the City by qualified design-build teams; and
WHEREAS, PERC Water Corporation (PERC) was determined to have submitted the best overall proposal providing the best overall value to the City; and WHEREAS, the cost of the project will be supported by grants and low-interest financing.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into an Agreement, in substantially the form attached to staff’s report dated October 6, 2026, 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.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates the following expenditures in Fiscal Year 2027, including appropriating related transfers between funds:

Fund Account Amount ($)
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 6th day of October 2026, by the following vote:

AYES:

NOES:

Council Agenda 10-6-2026 12.B-7
Attachment 1

ABSENT:

ABSTAIN:

RECUSED:

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 10-6-2026 12.B-8
Attachment 1

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 EXISTING PROFESSIONAL SERVICES AGREEMENT WITH GHD, INC.

FOR OWNER’S ADVISOR SERVICES FOR THE CENTRAL COAST BLUE PROJECT IN AN AMOUNT NOT TO EXCEED $2,233,433
WHEREAS, the City desires to design and construct Central Coast Blue, an Advanced Water Purification Facility to create a new, high quality, and reliable water supply for the City of Pismo Beach, even in times of water shortage or drought; and WHEREAS, on February 3, 2026, the City Council approved a Professional Services Agreement with GHD, Inc. for Owner’s Advisor services; and WHEREAS, as the project Owner’s Advisor, GHD led the development of the Design Criteria Report and compiled all supporting documentation, design-build RFQ/P and rating criteria, while ensuring alignment with project goals and risk management best practices; and
WHEREAS, the RFP process of selecting an Owner’s Advisor included the entire project, but the current contract was awarded for the procurement process only; and WHEREAS, GHD has submitted a proposal for continued Owner’s Advisor Services through completion of the Project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 to the existing Professional Services Agreement, in substantially the form attached to staff’s report dated October 6, 2026, with GHD, Inc. in an amount not to exceed $2,233,433 for Owner’s Advisor Services.

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 6th day of October 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Council Agenda 10-6-2026 12.B-9
Attachment 2

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 10-6-2026 12.B-10
Attachment 2

AMENDMENT # 1
to the
FEBRUARY 6, 2026 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND GHD, INC.

Pursuant to the February 6, 2026 Agreement between the City of Pismo Beach, hereinafter referred to as “City,” and GHD, Inc., 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 September 22, 2026, which is attached hereto and by this reference made a part hereof.

2.Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of two million two hundred thirty-three thousand four hundred forty-three dollars ($2,233,443), without prior written approval of the City.

3.The revised fee under the February 6, 2026 contract, plus this addendum, is two million six hundred ninety-four thousand eight hundred eight-one dollars ($2,694,881).

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 Kirkwood
Title: City Clerk
APPROVED AS TO FORM:

Signed:

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

GHD, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(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/Cost Proposal
Council Agenda 10-6-2026 12.B-11
Attachment 4

320 Goddard #200
Irvine, CA 92618
Your ref:

Our ref: 12686474
22September 2026
Rosemarie Gaglione, PE
Director of Public Works
City of Pismo Beach
Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project
Ms. Gaglione,
The City of Pismo Beach (City) has requested that GHD provide this proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor Services for the Central Coast Blue Advanced Water Purification Facility (AWPF) Design Build Project. GHD has completed the Phase 1 (Procurement) Scope of Work, which focused on refining key technical elements and developing a procurement package for the fixed price Design Build project delivery.

Phase 2 (Design/Construction/Commissioning) will focus on supporting successful project delivery through design, permitting, construction, startup, and commissioning. As the City's Owner's Advisor, GHD will provide project management, technical review, regulatory support, funding assistance, hydrogeologic expertise, and operational readiness services throughout implementation.

This proposal includes services to support City’s project director for GHD and subconsultant Montgomery and Associates.

The proposed amount for Phase 2 (Design/Construction/Commissioning) services is $2,233,443.

Detailed herein is recommended additional services, estimated fee impacts, and associated tasks for the Phase 2 (Design/Construction/Commissioning) scope.

Regards,
Kevin Daniels
Kevin Daniels, PhD, PEProject
Mark Donovan, PE
Project Director
949-585-5251
Council Agenda 10-6-2026 12.B-12
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 1

Proposed Scope of Work
GHD will serve as the City's Owner's Advisor, reporting directly to the City’s project director throughout the delivery of the Advanced Water Purification Facility project. GHD will be providing technical, regulatory, commercial, funding, and project management support from contract execution through startup and initial operations. The purpose of these services is to help the City’s project director protect the City’s contractual interests, maintain regulatory and funding compliance, manage project risks, and support successful delivery of a reliable, operable, and permit-compliant facility. The Design-Build project is anticipated to span approximately 24 months, and GHD has added an additional 6 months of project and operational support, during which GHD will provide the services described below.

1. Task 1 Project Management
GHD will serve as the owner's representative throughout project delivery, coordination, and oversight to support successful execution of the Design-Build contract. This task focuses on maintaining alignment among the City, Design-Builder, Construction Manager, regulators, funding agencies, and other project stakeholders.

Project management services will include the following activities:
•Owner’s representative services — Serve as the City’s project directors’ primary technical advisor and coordinate City decisions, technical reviews, regulatory activities, funding requirements, and interfaces with the Design-Builder and Construction Manager. •General project management — Provide ongoing project management, internal coordination, progress monitoring, issue resolution, and management reporting. The current allowance of two days per week should be treated as a baseline rather than a cap during intensive design, permitting, testing, and acceptance periods.
•Project kick-off and alignment — Facilitate an Owner/Design-Builder/Construction Manager kickoff to confirm responsibilities, deliverables, communication pathways, decision authority, review procedures, and critical project outcomes.
•Project management plan — Develop and maintain the Owner’s project management plan covering governance, decision authority, communication, document control, schedule, budget, risk, permitting, funding, stakeholder coordination, and escalation procedures. •Weekly progress meetings — Attend weekly progress meetings; review agenda and supporting information beforehand; document Owner decisions, risks, action items, and unresolved technical or commercial issues.
•Assist with Board and council support — Prepare staff-report technical content, executive summaries, presentations, decision memoranda, and talking points for City Council, governing boards, and partner agencies.

2. Contract Requirements Management
GHD will help ensure that all contractual obligations, proposal commitments, and procurement requirements are fully understood, tracked, and implemented throughout the project. This task is intended to protect the City's contractual position, maintain fixed-price accountability, and support informed decision-making regarding changes and contract interpretations. Contract administration and compliance oversight services will include the following activities:
•Contract requirements matrix — Translate the Design-Build Agreement, General Conditions, RFP, Design Criteria Report, proposal commitments, addenda, funding conditions, permits, and environmental commitments into a traceable compliance matrix.

Council Agenda 10-6-2026 12.B-13
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 2

•Proposal commitment register — Identify every Design-Builder commitment, qualification, assumption, exclusion, allowance, proposed refinement, and “future evaluation” item in the proposal and track disposition through final design and construction. •Basis-of-price verification — Establish the accepted technical and commercial basis of the fixed price, including capacities, treatment criteria, equipment configuration, redundancy, expansion provisions, well scope, pipelines, buildings, testing, and training. •Fixed-price protection — Evaluate whether proposed clarifications, design development, equipment selections, or revised approaches are already included in the fixed-price obligations before treating them as changes.
•Contract interpretation support — Provide technical interpretation of contract requirements and coordinate with City legal counsel on formal contractual positions, notices, disputes, or entitlement questions.
•Design deviation management — Review deviations from the Design Criteria Report, RFP, proposal basis, permits, or accepted design criteria; document technical, regulatory, lifecycle, schedule, and cost implications.
•Change request evaluation — Independently evaluate technical merit, scope entitlement, cost, schedule effect, funding eligibility, and downstream consequences of Design-Builder change requests. •Owner-requested changes — Develop technical scope, performance requirements, sketches, independent cost basis, schedule impacts, and negotiation support for City-requested changes.

3. Funding Support
GHD will assist the City’s project director in maximizing available funding resources while maintaining compliance with grant, loan, and reimbursement requirements. Funding management activities will focus on strategic cost allocation, documentation, reimbursement optimization, and long-term funding tracking throughout project delivery. Funding management and reimbursement support services will include the following activities:
•Develop One Master Matrix Before Reimbursement Begins
–Project task / work package
–Invoice cost category
–Eligible funding bucket
–Preferred reimbursement source
–Backup funding source
•Develop Special Eligibility Matrix — Recommended Reimbursement Hierarchy (to use restricted grant funding first, apply match strategically, preserve flexible loan capacity, and maintain backup funding assignments for each cost)
–Start with grant-only eligible costs Use grant funds first where a cost clearly fits a narrow grant bucket.
–Apply match strategically Use eligible non-federal or loan-funded costs to satisfy match requirements where allowed.
–Preserve flexible loan capacity Avoid using loan dollars for costs that could be reimbursed by grants.
–Use backup funding assignments Every cost should have a primary and secondary funding path.
–Track remaining balance by bucket. The project should know not only total funding remaining, but remaining funding by eligible category.

Council Agenda 10-6-2026 12.B-14
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 3

•Prepare grant deliverables – Prepare Prop 1 grant deliverables Performance Assessment and Evaluation Plan (PAEP), Monitoring Plan (MP), and Quality Assurance Project Plan (QAPP) for groundwater monitoring. Prepare first year of semi-annual and annual reports required for grant. •Invoice Coding Strategy — Invoices should be structured for reimbursement from the outset, with task-level detail, eligible cost coding, backup documentation, and review before submittal. •Funding Optimization Strategy — Funding optimization requires active allocation, not default proportional splits, so costs are assigned first to the most specific eligible grant source before using loan funds.
–Do not allocate proportionally by default: A simple percentage split may leave grant dollars unused.
–Allocate based on eligibility first: Match each cost to the source where it is most specifically eligible.
–Use grants before loan dollars: Preserve loan flexibility for costs that are not grant eligible. –Revisit the matrix monthly: Actual invoices, change orders, and remaining balances will shift the best allocation strategy.
–Coordinate funding and delivery schedule: Early work packages may need to be sequenced to meet grant deadlines or preserve reimbursement eligibility. –Funding lead review
–Monthly matrix update
–Change order funding review
–Documentation checklist
–Grant/loan compliance log

4. Project Controls and Risk Management
GHD will provide independent oversight of project schedule performance and key project risks to help keep the project on track and support timely decision-making. This effort includes schedule review, milestone forecasting, and proactive identification and management of technical, regulatory, commercial, and funding risks. Project controls and risk management services will include the following activities:
•Baseline schedule review — Review the Design-Builder’s baseline schedule for logic, calendars, durations, constraints, long-lead procurement, regulator dependencies, funding milestones, float, early work, commissioning, and acceptance.
•Monthly schedule review — Review monthly updates, critical and near-critical paths, out-of-sequence work, slippage, recovery actions, forecast dates, and impacts to funding and permits. •Independent milestone forecasting — Maintain an independent forecast for major design, permitting, funding, well, construction, startup, acceptance, and completion milestones. •Schedule recovery review — Evaluate recovery schedules, resequencing, overtime, added resources, concurrent design/construction risk, and impacts to quality or regulatory compliance. •Owner’s risk register — Maintain an Owner-controlled risk register covering technical, regulatory, hydrogeologic, funding, schedule, commercial, permitting, property, utility, operational, environmental, and stakeholder risks.

5. Design Reviews
GHD will perform a multi-discipline design review of all plans and specs. Disciplines include Treatment Process/Mechanical, Electrical, Site Civil/Stormwater, Conveyance Pipelines, Instrumentation and Controls, Building Mechanical and Architectural, and Operations (Note: Well design reviews are captured in Task 7).

Design review services will include the following activities:

Council Agenda 10-6-2026 12.B-15
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 4

•Design management plan review — Review the Design-Builder’s design management, discipline coordination, BIM, quality, calculation, document-control, and design-release procedures. •Design criteria validation — Confirm applicable flows, water-quality envelope, treatment objectives, pathogen log-reduction requirements, finished-water criteria, availability, redundancy, expansion requirements, design life, codes, and Owner preferences. •BODR- Perform multidisciplinary review of the Basis of Design Report, including confirmation that the design remains consistent with the fixed-price basis and regulatory strategy. •30% design review — Review design development, discipline coordination, equipment selections, hydraulics, controls, operability, maintainability, construction interfaces, permits, cost implications, and resolution of prior comments.
•60% design review — Review design development, discipline coordination, equipment selections, hydraulics, controls, operability, maintainability, construction interfaces, permits, cost implications, and resolution of prior comments.
•90% design review — Review near-final drawings, specifications, calculations, procurement packages, control narratives, testing requirements, and regulatory deliverables. •Final/IFC review — Confirm previous comments are resolved, documents are internally coordinated, permits and agency conditions are incorporated, and the final package is suitable for construction.

6. Construction Submittal and RFI Review
GHD will provide technical support during construction by reviewing critical submittals and RFIs that may affect performance, regulatory compliance, funding eligibility, or Owner requirements. This review process provides an additional layer of Owner protection for high-impact decisions and equipment selections.

Construction phase technical review services will include the following activities:
•Critical submittal review — Review selected critical and performance-sensitive submittals independently from routine Construction Manager processing, focusing on process equipment, wells, membranes, UV/AOP, electrical gear, controls, chemical systems, tanks, and specialty materials. •RFI technical support — Review RFIs with potential impacts to performance, permitting, funding, design intent, lifecycle cost, Owner requirements, or fixed-price scope.

7. Hydrogeology, Wells, and Groundwater Modeling
GHD/Montgomery and Associates will provide specialized hydrogeologic, groundwater modeling, and well- related support necessary for successful implementation and regulatory approval of the potable reuse project.

Services include technical review, regulatory support, adjudication-related coordination, monitoring, and operational groundwater activities through the first year of operation. Hydrogeology, groundwater, and well support services will include the following activities:
• Design Reviews for Injection, Monitoring and Production Wells — Perform design reviews of submitted plans, technical specifications, and construction documentation for the injection well, monitoring wells, and production well (Downhole only, equipment reviews are captured I Task 5). • Review of the Groundwater Section of Title 22 Engineering Report — Review sections related to hydrogeologic conditions, wells, calculation of response retention time, underground retention time. and groundwater monitoring. Review documentation of groundwater models used to support sections.

Support discussions with regulators.
• Review Anti-degradation Analysis Revisions — Review revisions and support discussions with regulators.
• Review Tracer Study Protocol — Review protocol and support discussions with regulators. • Review Background Monitoring — Review plan and results of background groundwater monitoring.

Council Agenda 10-6-2026 12.B-16
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 5

• Tracer Study Implementation — Implement tracer study after start of operation based on approved protocol (prepared by DB team); cost estimate subject to change per final protocol. Prepare required reports for submittal to regulators.

8. Regulatory Support
GHD will assist the City’s project director in navigating the complex regulatory approval process associated with potable reuse, groundwater recharge, and related discharge permits. Regulatory support will focus on maintaining alignment between project delivery, permitting requirements, and agency expectations throughout design, construction, and startup. Regulatory coordination and permitting support services will include the following activities:
x DDW strategy and coordination — Participate in regulatory meetings; review agendas, presentations, technical memoranda, responses, commitments, and decisions related to potable reuse approval.
•Title 22 Engineering Report review— Review outlines, draft sections, calculations, supporting data, pathogen-control strategy, monitoring, alarm and diversion logic, hydrogeology, and final report before submittal.
•Operations Optimization Plan review — Review the initial and updated OOP, including critical control points, operating limits, monitoring, response procedures, reporting, optimization, and operator responsibilities.
•RWQCB permitting support — Review permit applications, waste-discharge requirements, injection requirements, monitoring and reporting provisions, concentrate and process-waste discharge requirements, and responses to comments.
•Ocean discharge coordination — Review the regulatory and technical basis for discharging concentrate, backwash, startup water, off-specification water, and other waste streams through the existing ocean outfall, and coordinate with existing consultant(s) who provides NPDES support for this ocean outfall
•Regulatory testing plans review— Review UV/AOP challenge testing, chlorine contactor tracer testing, membrane integrity testing, water-quality validation, well testing, and other regulator-required protocols and reports.

9. Startup, Commissioning and Testing Support
GHD will support the City’s project director through startup, commissioning, performance testing, and acceptance of the completed facility to verify compliance with contract requirements and regulatory obligations. Activities will provide independent technical oversight and support successful transition from construction to operations. Startup, commissioning, testing, and acceptance support services will include the following activities:
x Owner’s commissioning plan — Develop an Owner-side commissioning and acceptance plan defining roles, prerequisites, witness points, documentation, decision authority, acceptance criteria, and regulatory interfaces.
•Commissioning plan review — Review the Design-Builder’s startup and commissioning plan for sequencing, temporary systems, feed-water availability, waste disposal, staffing, safety, test water, chemical supply, sampling, laboratories, and issue resolution. •Startup readiness reviews — Participate in DB team formal readiness reviews before energization, water introduction, membrane loading, chemical introduction, integrated operation, performance testing, and acceptance testing.
•Factory Acceptance Test review and witnessing — Review FAT procedures and witness selected tests for critical process, electrical, instrumentation, and control equipment.

Council Agenda 10-6-2026 12.B-17
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 6

•Functional testing review — Review and witness selected functional tests of individual systems, sequences, permissives, interlocks, alarms, fail-safe actions, and operator interfaces. •Integrated systems testing — Review and witness selected integrated operation across treatment, waste, utilities, electrical, standby power, controls, communications, wells, pipelines, and off- specification diversion.
•Performance test protocol — Review test duration, capacity, availability, feed-water conditions, water- quality requirements, recovery, energy, chemical consumption, sampling, allowable interruptions, calculations, and failure provisions.
•Performance test witnessing — Provide technical observation, independent data review, daily status assessment, issue tracking, and recommendation regarding successful completion. •Regulatory test support — Coordinate Owner review and witnessing of UV/AOP spike testing, chlorine contactor testing, regulator inspections, and other required demonstrations. •Acceptance test review — Confirm prerequisites for the 30-day acceptance test and independently evaluate continuous operation, compliance, reliability, water quality, injection performance, and outstanding deficiencies. The DB team proposal distinguishes component, functional, performance, and 30-day acceptance testing. Provides 40 hours of onsite support during first week of 30-day acceptance test.
•Performance guarantee verification — Independently confirm compliance with contractual guarantees and document any shortfalls, retesting requirements, corrective work, credits, or other remedies.
•Substantial completion recommendation — Advise the City’s project director whether contractual, technical, regulatory, testing, training, documentation, safety, occupancy, and operational prerequisites for substantial completion have been achieved.
•Final acceptance recommendation — Confirm final testing, permits, punch-list closure, record documents, spares, warranties, training, payments, claims, and closeout conditions before final acceptance.

10. Operations Readiness and Training Support
GHD will help prepare City project director, operational systems, and support programs for efficient, safe, and compliant operation of the new facility. The goal is to ensure personnel, procedures, documentation, training, and support resources are in place before startup and throughout the initial operating period.

Operations readiness and training support services will include the following activities:
•Operations readiness plan — Develop a plan covering staffing, certifications, recruitment, operator involvement, SOPs, O&M documentation, maintenance systems, laboratory capability, chemicals, spares, tools, safety, and regulatory reporting.
•Staffing and certification strategy — Evaluate operator staffing levels, shifts, on-call coverage, certification requirements, recruitment timing, and interim contract-operations support. •Operator design reviews — Facilitate structured operator reviews of equipment access, maintainability, controls, sampling, chemical handling, laboratory needs, storage, safety, and day-to- day workflow.
•O&M manual review — Review completeness, consistency, system descriptions, operating limits, startup/shutdown, maintenance, troubleshooting, safety, controls, spare parts, vendor data, and regulatory requirements.
•SOP review — Review normal, startup, shutdown, emergency, off-specification, chemical delivery, membrane cleaning, well operation, sampling, calibration, and reporting procedures. •Training plan review — Review curriculum, audience, instructors, learning objectives, schedule, prerequisites, hands-on activities, recordings, materials, assessments, and make-up sessions. •Training participation and evaluation — Attend selected training sessions, track attendance, identify gaps, evaluate operator readiness, and recommend supplemental instruction.

Council Agenda 10-6-2026 12.B-18
Attachment 4

12686474 | Proposal for Phase 2 (Design/Construction/Commissioning) Owner’s Advisor for Central Coast Blue AWPF Design Build Project 7

•Laboratory readiness — Review laboratory equipment, methods, sampling locations, QA/QC, outside- lab contracts, staffing, data management, reporting, and regulatory requirements. •Safety program readiness — Review chemical safety, confined spaces, lockout/tagout, electrical safety, noise exposure, respiratory protection, emergency response, spill response, and operator training.
•Post-startup technical support oversight — Coordinate and monitor the Design-Builder’s post- startup process optimization, certified-operator support, troubleshooting, regulatory assistance, and OOP updates. The proposal provides continued support during the first six months after substantial completion.

11. Asset Management
GHD has included an allowance of 80 hours of Asset Management technical support. As the project progresses, we propose to further evaluate the needs of the City and put forth additional recommendations for scope and fee.

12. Phase 1 (Procurement) Additional Support
This task covers additional Phase 1 (Procurement) support through Phase 2 (Design/Construction/Commissioning) contract award.

13. Fee
GHD’s proposed fee for this Phase 2 (Design/Construction/Commissioning) Services is $2,233,443.

A detailed Fee Table is attached.

Council Agenda 10-6-2026 12.B-19
Attachment 4

Pismo Beach Central Coast Blue - Design Build AWPF Owner Advisor Services 12686474
Description Steve Wait Mark Donovan Kevin Daniels Paul Hermann Rebecca Crow Hector Ruiz Mark Waer Various Ulyssis Robin
Allie Syiem
+ Other Joshua Nathan
Total Hours Labor Total
Montgomery & Total
Travel Costs
Total Estimated
Client Laison
Project Project Strategic Funding Asset Water Junior and Raw Water Building Process
Mech. +
Specialist
Cost
Estimating
and Fire Operations & Admin
$350 $405 $350 $405 $350 $405 $350 $284 $360 $293 $350 $350 $335 $350 $320 $350 $350 $350 $375 $210 Task1 Project Management 50 120 785 120 60 0 0 140 4 4 4 4 4 4 12 4 4 4 4 50 1377 $478,402 $0 $0 $0 $30,000 $30,000 $508,402 Subtask 1.1 General Project Management - including items in scope letter 40 100 625 100 40 0 0 80 0 0 0 0 0 0 0 0 0 0 0 40 1025 $358,870 $0 $0 $0 $30,000 $30,000 $388,870 Subtask 1.2 Weekly Progress Meetings - 24 month duration 10 20 160 20 20 0 0 60 4 4 4 4 4 4 12 4 4 4 4 10 352 $119,532 $0 $0 $0 $0 $0 $119,532 Task2 Contract Requirements Management 10 10 80 10 10 0 0 40 0 0 0 0 24 0 0 0 0 0 0 0 184 $62,500 $0 $0 $0 $0 $0 $62,500 Subtask 2.1 Contract and Requirements Management - per items in scope letter 10 10 80 10 10 0 0 40 0 0 0 0 24 0 0 0 0 0 0 0 184 $62,500 $0 $0 $0 $0 $0 $62,500 Task3 Funding Support 0 0 48 0 200 0 0 20 0 0 0 0 0 0 0 0 0 0 0 0 268 $92,480 $0 $0 $0 $0 $0 $92,480 Subtask 3.1 USBR Grant Support 0 0 8 0 40 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 48 $16,800 $0 $0 $0 $0 $0 $16,800 Subtask 3.2 Prop 1 GW Grant Management Support 0 0 8 0 40 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 48 $16,800 $0 $0 $0 $0 $0 $16,800 Subtask 3.3 SWRCB SRF and Recycled Water Funding Support 0 0 8 0 40 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 48 $16,800 $0 $0 $0 $0 $0 $16,800 Subtask 3.4 General Funding tracking and compliance support 0 0 24 0 80 0 0 20 0 0 0 0 0 0 0 0 0 0 0 0 124 $42,080 $0 $0 $0 $0 $0 $42,080 Task4 Project Controls and Risk Management 0 0 100 0 0 0 0 24 0 0 0 0 40 0 0 0 0 0 0 0 164 $55,216 $0 $0 $0 $0 $0 $55,216 Subtask 4.1 Project Controls and Risk Management - per items in scope letter 0 0 100 0 0 0 0 24 0 0 0 0 40 0 0 0 0 0 0 0 164 $55,216 $0 $0 $0 $0 $0 $55,216 Task5 Design Reviews 0 76 240 0 0 0 40 312 72 72 42 128 0 32 40 32 54 38 52 0 1230 $410,804 $0 $0 $0 $0 $0 $410,804 Subtask 5.1 Basis of Design Report / Preliminary Design Review 0 8 40 0 0 0 4 32 4 4 2 8 0 2 4 2 4 4 4 0 122 $40,820 $0 $0 $0 $0 $0 $40,820 Subtask 5.2 30% Design Review 0 16 60 0 0 0 8 64 12 12 8 24 0 8 8 8 14 8 12 0 262 $87,852 $0 $0 $0 $0 $0 $87,852 Subtask 5.3 60% Design Review 0 24 60 0 0 0 12 120 24 24 12 40 0 10 12 8 16 12 16 0 390 $128,812 $0 $0 $0 $0 $0 $128,812 Subtask 5.4 90% Design Review 0 24 40 0 0 0 8 64 24 24 12 40 0 8 12 10 12 10 12 0 300 $100,908 $0 $0 $0 $0 $0 $100,908 Subtask 5.5 IFC Design Review 0 4 40 0 0 0 8 32 8 8 8 16 0 4 4 4 8 4 8 0 156 $52,412 $0 $0 $0 $0 $0 $52,412 Task6 Construction Submittal & RFI Review 0 36 160 24 0 0 36 40 16 16 16 52 16 16 40 16 44 12 44 0 584 $203,968 $2,400 $240 $2,640 $0 $0 $206,608 Subtask 6.1 Critical Submittal Review 0 8 40 0 0 0 20 0 0 0 0 24 0 0 16 0 16 0 20 0 144 $50,860 $0 $0 $0 $0 $0 $50,860 Subtask 6.2 Critical RFI Review 0 4 40 0 0 0 8 0 0 0 0 12 0 0 8 0 12 0 12 0 96 $33,880 $2,400 $240 $2,640 $0 $0 $36,520 Subtask 6.3 General Construction Phase Technical Support 0 24 80 24 0 0 8 40 16 16 16 16 16 16 16 16 16 12 12 0 344 $119,228 $0 $0 $0 $0 $0 $119,228 Task7 Hydrogeology, Wells, and Groundwater Modeling 0 0 48 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 48 $16,800 $329,750 $32,975 $362,725 $0 $0 $379,525 Subtask 7.1 Injection, Monitoring, and Production Well Design Reviews 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 $2,800 $90,240 $9,024 $99,264 $0 $0 $102,064 Subtask 7.2 Groundwater Section of Title 22 Engineering Report Review 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 $2,800 $38,320 $3,832 $42,152 $0 $0 $44,952 Subtask 7.3 Tracer Study Protocol 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 $2,800 $78,280 $7,828 $86,108 $0 $0 $88,908 Subtask 7.4 Background Monitoring 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 $2,800 $34,620 $3,462 $38,082 $0 $0 $40,882 Subtask 7.5 Anti-degradation Analysis Revisions 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 $2,800 $25,060 $2,506 $27,566 $0 $0 $30,366 Subtask 7.6 Tracer Study Implementation 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 $2,800 $63,230 $6,323 $69,553 $0 $0 $72,353 Task8 Regulatory Support 4 26 108 0 0 0 16 48 0 0 0 0 0 0 28 0 0 0 0 0 230 $77,922 0 0 $0 $0 $0 $77,922 Subtask 8.1 General Regulatory Support 4 10 60 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 74 $26,450 $0 $0 $0 $0 $0 $26,450 Subtask 8.2 DDW Title 22 Engineerign Report Review 0 8 24 0 0 0 8 24 0 0 0 0 0 0 12 0 0 0 0 0 76 $25,096 $0 $0 $0 $0 $0 $25,096 Subtask 8.3 DDW Operations Optimization Plan Review 0 8 24 0 0 0 8 24 0 0 0 0 0 0 16 0 0 0 0 0 80 $26,376 $0 $0 $0 $0 $0 $26,376 Task9 Start-up & Commissioning Support 8 20 200 8 0 0 0 104 0 0 0 0 0 0 200 0 0 0 0 0 540 $177,676 0 0 $0 0 $0 $177,676 Subtask 9.1 Start-up & Commissioning Support - including items in scope letter 0 4 80 0 0 0 0 0 0 0 0 0 0 0 120 0 0 0 0 0 204 $68,020 $0 $0 $0 $0 $0 $68,020 Subtask 9.2 Performance Test Support and Evaluation 0 8 40 0 0 0 0 24 0 0 0 0 0 0 40 0 0 0 0 0 112 $36,856 $0 $0 $0 $0 $0 $36,856 Subtask 9.3 Acceptance Test Support and Evaluation 8 8 80 8 0 0 0 80 0 0 0 0 0 0 40 0 0 0 0 0 224 $72,800 $0 $0 $0 $0 $0 $72,800 Task10 Operations Readiness and Training Support 0 4 16 0 0 0 0 0 0 0 0 0 0 0 60 0 0 0 0 0 80 26420 0 0 $0 0 $0 $26,420 Subtask 10.1 Operations Readiness and Training Support 0 4 16 0 0 0 0 0 0 0 0 0 0 0 60 0 0 0 0 0 80 $26,420 $0 $0 $0 $0 $0 $26,420 Task11 Asset Management Support 0 0 0 0 0 40 0 40 0 0 0 0 0 0 0 0 0 0 0 0 80 $27,560 0 0 $0 0 $0 $27,560 Subtask 11.1 Asset Management Support 0 0 0 0 0 40 0 40 0 0 0 0 0 0 0 0 0 0 0 0 80 $27,560 $0 $0 $0 $0 $0 $27,560 Task12 Well 31 - Potential Future Scope 0 4 40 4 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 128 $39,960 $50,000 5000 $55,000 0 $0 $94,960 Subtask 12.1 Well 31 - Potential Future Scope 0 4 40 4 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 128 $39,960 $50,000 $5,000 $55,000 $0 $0 $94,960 Task13 750 AFY Evaluation - Optional 0 4 24 4 0 0 0 20 0 0 0 0 0 0 0 0 0 0 0 0 52 $17,320 0 0 $0 0 $0 $17,320 Subtask 13.1 Optional Task - Additional Effort Associated with 750 AFY Expansion 0 4 24 4 0 0 0 20 0 0 0 0 0 0 0 0 0 0 0 0 52 $17,320 $0 $0 $0 $0 $0 $17,320 Task14 Phase 1 Additional Support 60 26 50 60 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 276 96050 0 0 $0 0 $0 $96,050 Subtask 14.1 Phase 1 Additional Support 60 26 50 60 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 276 $96,050 $0 $0 $0 $0 $0 $96,050 Total Labor Hours 132 326 1,899 230 270 40 92 948 92 92 62 184 84 52 380 52 102 54 100 50 5241 $1,783,078 $382,150 $38,215 $420,365 $30,000 $30,000 $2,233,443 x Estimated Project Total $46,200 $132,030 $664,650 $93,150 $94,500 $16,200 $32,200 $269,232 $33,120 $26,956 $21,700 $64,400 $28,140 $18,200 $121,600 $18,200 $35,700 $18,900 $37,500 $10,500 5241 $1,783,078 $382,150 $38,215 $420,365 $30,000 $30,000 $2,233,443 GHD reserves the right to move budget between Tasks
Council Agenda 10-6-2026 12.B-20
Attachment 4