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Pismo Beach adopts major encroachment permit fee, clarifies counter permit charges

Pismo Beach City Council · March 17, 2026
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Summary

City council adopted a resolution establishing a major encroachment permit fee (10% engineer's estimate deposit with additional cost recovery) to ensure large projects cover inspection and review costs; staff clarified sidewalk/tree counter permits remain at the $95 counter fee with reduced charges for surface/subsurface repairs.

The Pismo Beach City Council adopted a new major encroachment permit fee and clarified existing counter permit fees to better recover city costs for large public‑right‑of‑way projects.

At a public hearing on March 17, staff explained the new structure: an initial deposit equal to 10% of an engineer's estimate for the improvement, with additional charges applied if actual staff time and consultant costs exceed that deposit. The fee is intended to recover costs for plan review, engineering analysis, inspections and interdepartmental coordination on large projects.

"These fees are cost to cover our cost to do a major project," staff (Ms. Feaser) said, describing the deposit and the follow‑on cost‑recovery process. Staff also recommended reclassifying stand‑alone sidewalk repairs and tree removals (without building permits) under the existing $95 counter permit fee; that counter category continues to include a 66% subsidy.

Representatives of utilities raised concerns about the deposit approach. John Roner, speaking for SoCalGas, asked that CPUC‑regulated utilities be exempted from the 10% deposit or that the methodology be clarified, noting franchise agreements and CPUC oversight can complicate deposit accounting. He asked for a precise definition of the engineer's estimate used to calculate the deposit.

Staff replied that the deposit mirrors established public improvement plan check practice and that the engineer's estimate would be developed in consultation with the engineering department; staff said they are open to further discussions with utilities and noted emergency repairs are not subject to the fee.

Council voted to adopt the resolution establishing the major encroachment permit fee effective May 16, 2026. Roll call showed unanimous approval.

The council did not set a separate exemption for franchise utilities at the hearing; staff said they will continue conversations with utilities to clarify calculations and application to planned versus emergency work.