PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.D
Meetin Date: Octobe 20, 2026
TITLE:
Termination of the July 28, 2026 Emergency Proclamation; Related Budget Adjustments; Update on January 9, 2023 and January 12, 2017 Emergency Proclamations
RECOMMENDATION:
1. Adopt a Resolution:
1. Terminating the local emergency confirmed by City Council on August 4, 2026, and rescinding R-2026-051; and
2. Ratifying an agreement with R. Baker, Inc. in the amount of $267,220.32; and
3. Appropriating related budget adjustments in Fiscal Year 2027;
2. Review the need for continuing currently active local emergency proclamations;
3. Provide direction to staff if desired.
DISCUSSION:
Chapter 2.32 of the Pismo Beach Municipal Code empowers the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by an emergency and the City Council is not in session. An emergency exists when conditions are beyond the control of the services, personnel, equipment, facilities, and existing laws of the City. The declaration is an acknowledgement of the need for additional resources and expedited procedures to deal with the emergency. The Director of Emergency Services’ declaration is subject to City Council ratification within seven days, in accordance with Government Code Section 8630(b).
Currently Active Emergency Declarations
Currently active Emergency Declarations are those ratified by Resolution R-2026-051 on August 4, 2026, relating to storm drain failures; Resolution R-2023-001 on January 11, 2023, relating to winter storm damage; and by Resolution R-2017-012 on January 17, 2017, relating to winter storm damage. In accordance with Government Code Section 8630, the City Council is required to review the need for continuing the local emergency at least once every 60 days until the emergency is terminated. The following status report is provided for the Council’s information. No action is recommended, but direction may be given to staff if desired.
July 28, 2026 Proclamation: Storm Drain Failures
The City Council declared a state of emergency on August 4, 2026, via Resolution R- 2026-0511, ratifying the Emergency Services Director’s Proclamation of a local emergency in response to the development of two sudden sinkholes located within City 1 Full URL: https://portal.laserfiche.com/Portal/DocView.aspx?id=796674&repo=r-f36a9aa0 Council Agenda 10-20-2026 9.D-1
roadways. Investigation of a pothole on James Way at Capanna Street revealed a sinkhole measuring approximately 12 feet by 8 feet by 6 feet deep and it was determined that this was the result of a failed corrugated metal pipe (CMP) storm drain. A second sinkhole appeared on Shell Beach Road at Encanto Avenue and inspection of the CMP beneath the area determined that the sinkhole was caused by severe deterioration of a CMP that carries storm water from the east to the west side of Shell Beach Road. The City Manager authorized staff to enter into emergency contracts with R. Baker, Inc. (R.
Baker) to make repairs to protect public safety and prevent the road from failing.
Summary of Current Events
Work on the James Way at Capanna Street and Shell Beach Road at Encanto locations has been completed and the final billings have been received from the contractor.
Restoration to the private property driveway at the Encanto location will be completed by the Sunset Palisades Homeowners Association (HOA) per a settlement agreement between the HOA and the City executed on October 7, 2026. Now that the project is complete, staff recommends the Council adopt the proposed Resolution (Attachment 1) terminating the local emergency and repealing Resolution R-2026-051, as well as ratifying an agreement (Attachment 2) with R. Baker Inc. in the amount of $267,220.32.
Additional detail about termination of the emergency is provided in the Fiscal Impact section below.
January 11, 2023 Proclamation: Winter Storms
The City Council declared a state of emergency on January 11, 2023, via Resolution R- 2023-0012, ratifying the Emergency Services Director’s proclamation of a local emergency in response to the January 2023 winter storms. On January 9, 2023, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Newsom for the region. On January 14, 2023 President Biden approved a major disaster declaration for the January storms, making federal disaster aid available.
The storms, which began the first week of January, took a toll on the community, causing conditions of peril to the safety of persons and property due to flooding, bluff erosion, strong winds and other storm related damages.
Summary of Current Events
The Pier Avenue Storm Drain Outfall site has been approved by the Federal Emergency Management Agency (FEMA) for a permanent repair project to replace the outfall pipe that was washed away during the storm. The project is currently under construction, with completion anticipated in November 2026.
January 12, 2017 Proclamation: Winter Storms
The Pismo Beach City Council declared a state of emergency on January 12, 2017, via Resolution R-2017-0123, in response to the January 2017 winter storms. Shortly after the Council’s declaration, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Jerry Brown for the region. On February 14, 2017 and March 16, 2017 the President declared a major disaster for the early and late January 2 Full URL:
https://portal.laserfiche.com/Portal/DocView.aspx?id=459337&repo=r-f36a9aa0 3 Full URL: https://portal.laserfiche.com/Portal/DocView.aspx?id=107586&repo=r-f36a9aa0 Council Agenda 10-20-2026 9.D-2
storms, making federal disaster aid available. The storms, which began the first week of January, took a toll on the community, culminating with a Caltrans storm drain failure on Highway 101, which caused flooding of two hotels on Price Street, blockage of the City’s Franklin storm drain outfall and debris scattered along Highway 101, Price Street and sidewalk, on Franklin Drive and various private parcels on January 20, 2017.
Summary of Current Events
The project is currently in construction. Due to long lead times on some materials a larger mobilization is expected in December. Construction is estimated to be completed in August 2027.
FISCAL IMPACT:
The fiscal impact of the attached resolution is $470,852.65 from the Transaction Sales Tax Fund, consisting of $420,852.65 to R. Baker, Inc. for emergency repairs related to the August 2026 Storm Drain Failures and $50,000 to the Sunset Palisades Homeowners Association.
July 2026 Storm Drain Failures
Per the City’s Purchasing Policy and Procedures, an emergency declared by an appropriate authority as described in Pismo Beach Municipal Code Chapter 2.32, Emergency Services, requires that an order be placed with the most expeditious source of equipment, goods or services, taking into account timeliness of delivery and price. In the event of an Emergency, the City Manager/Director of Emergency Services is authorized to approve without solicitation of bids purchases, leases, or other contracts for goods or services up to a value of $200,000. Emergency procurements shall be ratified as soon as practical, including ratification by City Council for emergency procurements exceeding $200,000 or the amount set by City Council after receiving the recommendation of the City Manager.
The City’s costs for the August 2026 Storm Drain Failures emergency is $470,852.65. Of this amount, one agreement with R. Baker, Inc. in the amount of $267,220.32 exceeded the $200,000 procurement threshold. The remaining two agreements are under the $200,000 threshold authorized in the Council Adopted Purchasing Policy and were subsequently approved by the City Manager. The total project costs are shown in Table 1 below.
Table 1. Fiscal Impact
Vendor Location Amount
R. Baker, Inc. James Wa $267,220.32
R. Baker, Inc. Shell Beach Road/Encanto $153,632.33
Sunset Palisades HOA Shell Beach Road/Encanto $50,000.00 Total Cost $470,852.65
Staff recommends that the Council appropriate $267,220.32 for the James Way Sinkhole Repair project and $203,632.33 for the Encanto Sinkhole Repair project in the Capital Projects Fund for Fiscal Year (FY) 2027 to cover the cost of the storm drain failures. Staff Council Agenda 10-20-2026 9.D-3
also recommends that the Council appropriate corresponding transfers from the Transaction Sales Tax Fund to the Capital Projects fund to support both projects.
January 2023 Winter Storms
The cost of damage from the January 2023 storms is estimated to be about $26 million.
January 2017 Winter Storms
The cost of damage from the January 2017 storms is approximately $12 million.
ATTACHMENTS:
1. Resolution
2. R. Baker Inc. James Way Agreement
Prepared by: Erin Olsen, Senior Management Analyst
Submitted by: Erica Kirkwood, City Clerk
City Manager Approval:
Council Agenda 10-20-2026 9.D-4
RESOLUTION NO. R-2026-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA TERMINATING THE LOCAL EMERGENCY CONFIRMED BY CITY COUNCIL ON AUGUST 4, 2026, AND RESCINDING R-2026-051; AND RATIFYING AN AGREEMENT WITH R. BAKER, INC. IN THE AMOUNT OF $267,220.32; AND APPROPRIATING RELATED BUDGET ADJUSTMENTS IN FISCAL YEAR 2027 WHEREAS, on July 28, 2026 the Emergency Services Director’s issued a proclamation of a local emergency in response to the development of two sudden sinkholes located within City roadways; and
WHEREAS, the proclamation was confirmed by the City Council on August 4, 2026 by Resolution R-2026-051,
WHEREAS, the City Manager authorized staff to enter into emergency contracts with R.
Baker, Inc. to make repairs to protect public safety and prevent the road from failing; and WHEREAS, work on the James Way at Capanna Street and Shell Beach Road at Encanto locations has been completed and the final billings have been received from the contractor; and
WHEREAS, restoration to the private property driveway at the Encanto location will be completed by the Sunset Palisades Homeowners Association per an agreement between the Sunset Palisades Homeowners Association and the City executed on October 7, 2026; and
WHEREAS, per the City’s Purchasing Policy and Procedures, an emergency declared by an appropriate authority as described in Pismo Beach Municipal Code Chapter 2.32, Emergency Services, requires that an order be placed with the most expeditious source of equipment, goods or services, taking into account timeliness of delivery and price. In the event of an Emergency, the City Manager/Director of Emergency Services is authorized to approve without solicitation of bids purchases, leases, or other contracts for goods or services up to a value of $200,000. Emergency procurements shall be ratified as soon as practical, including ratification by City Council for emergency procurements exceeding $200,000 or the amount set by City Council after receiving the recommendation of the City Manager; and
WHEREAS, the City’s costs for the August 2026 Storm Drain Failures emergency is $470,852.65; of this amount, one agreement with R. Baker, Inc. in the amount of $267,220.32 exceeded the $200,000 procurement threshold. The remaining two agreements are under the $200,000 threshold and were approved by the City Manager; and
WHEREAS, there is not sufficient budget to support these agreements.
Attachment 1
Council Agenda 10-20-2026 9.D-5
NOW, THEREFORE, BE IT RESOLVED that pursuant to Government Code Section 8630, the City Council determines that conditions warrant the termination of the local state of emergency declared under Resolution R-2026-051, and therefore, the City Council of the City of Pismo Beach hereby terminates the local emergency confirmed by the City Council on August 4, 2026.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $267,220.32 for the James Way Sinkhole Repair project and $203,632.33 for the Encanto Sinkhole Repair project in the Capital Projects Fund, and appropriates corresponding transfers from the Transaction Sales Tax Fund to the Capital Projects fund to support both projects, in Fiscal Year 2027.
BE IT FINALLY RESOLVED that Resolution R-2026-051 is hereby repealed.
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 20th day of October 2026, by the following vote:
AYES:
NOES:
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
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