Agenda packet — Morro Bay City Council, August 27, 2024 (part 2 of 2)

LCP Grant Program
The California Coastal Commission (CCC) has announced grant funding availability under the LCP Local Assistance Grant Program. This is rolling non-competitive grant funding available to local governments to assist with either development of or amendments of Local Coastal Programs (LCP).

According to CCC LCP Grant staff, there is no funding cap for an application. However, applications up to $500,000 may be approved at the Coastal Commission staff level, and larger amounts will require CCC approval. Funds may be used for projects that are designed to assist local governments in assessing impacts and planning for coastal resiliency, including adapting to the impacts of climate change and sea level rise.

The City was previously successful in obtaining approximately $600,000 of CCC grant funding to update the City’s General Plan/Local Coastal Program Land Use Plan (LCP) known as Plan Morro Bay which was adopted by the City Council in 2021 and certified by the Coastal Commission also in 2021.

Coastal staff has offered assistance and guidance to City staff in submitting an application that would meet the eligibility criteria related to coastal resilience and sea level rise adaptation planning. Staff discussed with Coastal Commission staff the Waterfront Master Plan update as an application.

Coastal staff confirmed this update would be an eligible project and encouraged the City to apply.

The LCP grant funding opportunity was made available to local governments as a result of the State’s Budget Act of 2021 which appropriated $31 million to the Coastal Commission to support this program. Upon submittal of an application, funding decisions are made by CCC within 30 days of application. The funding program allows grants to be stacked which means that the City could seek out additional funding sources to supplement the cost of the Waterfront Master Plan Update project.

GRANT APPLICATION
Upon execution of a grant agreement with CCC and authorization from Council, staff would work to develop an application that includes releasing a Request for Proposal (RFP) for professional planning consulting services similar to the consulting services utilized for the Plan Morro Bay update project.

CONCLUSION
The newly available grant funding program from the Coastal Commission and support by Coastal staff presents an excellent opportunity to apply for needed funding to update the 1996 Waterfront Master Plan which would not only incorporate coastal resilience and sea level rise adaptation planning but also provide an opportunity to update other portions of the WMP including waterfront design guidelines. Staff recommends the Council adopt Resolution No. 58-24 authorizing Staff to submit a grant application in the amount of $750,000 to the California Coastal Commission in support of the update for the City’s 1996 Waterfront Master Plan to be developed and adopted as a future amendment to the City’s Local Coastal Program (LCP) with a staff time in-kind match of 10% or approximately $75,000.

ATTACHMENT(S)

1. Resolution No. 58-24

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RESOLUTION NO. 58-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

APPROVING THE GRANT APPLICATION FOR THE COASTAL COMMISSION LCP LOCAL

ASSISTANCE GRANT PROGRAM

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the State’s Budget Act of 2021 provides up to $31 million to support the Coastal Commission’s LCP Local Assistance Grant Program which awards grants to local governments to support coastal resiliency and updates to Local Coastal Programs (LCPs); and WHEREAS, the California Coastal Commission, under the authority of the California Coastal Act, may provide financial assistance to support coastal planning and has approved a grant program to provide such financial assistance for LCP planning; and WHEREAS, the goal of the grant program is to develop new or updated LCPs in conformance with the California Coastal Act and to promote coastal resiliency and address the effects of climate change; and
WHEREAS, grant proposals submitted under this grant program must complete Local Coastal Program (LCP) planning work with special emphasis on coastal resiliency and addressing the effects of climate change and sea-level rise; and
WHEREAS, the City of Morro Bay, has an effectively certified LCP; and WHEREAS, the City of Morro Bay, adopted the Waterfront Master Plan in 1996 and is included in the City’s LCP; and
WHEREAS, Policy LU-8.1 of the City’s LCP states the Waterfront Master Plan should be updated with a focus on addressing issues of sea level rise and future planning for Morro Rock; and
WHEREAS, the City of Morro Bay, desires to pursue an update of the Waterfront Master Plan project that would result in the completion and submittal for certification by the California Coastal Commission of an Amendment to the LCP [in whole or in part]; and WHEREAS, the City of Morro Bay commits to and agrees to fully support a planning effort intended to amend a certified LCP pursuant to the provisions of the California Coastal Act, with full public participation and coordination with the Coastal Commission staff.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Morro Bay hereby:

1. Directs City of Morro Bay staff to submit the grant application package attached hereto as Attachment 1 to the California Coastal Commission to provide financial and planning

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assistance, under authority of the California Coastal Act, in the amount of $750,000 to fund the project more particularly described in the grant application package.

2. Authorizes the Community Development Director, of the City of Morro Bay, to execute, in the name of the City of Morro Bay, all necessary applications, contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application.

PASSED AND ADOPTED by the Morro Bay City Council, at a regular meeting held on this 27th day of August 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
_______________________________
CARLA WIXOM, Mayor
ATTEST:
_______________________________
DANA SWANSON, City Clerk

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STATE OF CALIFORNIA – CALIFORNIA NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION
455 MARKET STREET, SUITE 300
SAN FRANCISCO, CA 94105-2421
VOICE (415) 904-5200
FAX (415) 904-5400
1 CALIFORNIA COASTAL COMMISSION

LCP LOCAL ASSISTANCE GRANT PROGRAM

NON-COMPETITIVE GRANT APPLICATION FORM
The California Coastal Commission is pleased to announce the availability of rolling grant funding to support local government coastal resiliency efforts. Funding is provided by the Budget Act of 2021, which appropriates $31 million to the Coastal Commission to support its LCP Local Assistance Grant Program. The grant program is intended to provide assistance to local governments responsible for developing and amending Local Coastal Programs. Funds may be used for projects that are designed to assist local governments in assessing impacts and planning for coastal resiliency, including adapting to the impacts of climate change and sea level rise, and which contain an LCP planning component.

As part of the recently adopted grant program updates, the Coastal Commission developed a non-competitive, rolling application process that is separate from the Commission’s competitive grant rounds. This rolling application process is designed for targeted projects up to $500,000 which have a high likelihood of success over a shorter grant term, such as a single feasibility study with targeted LCP changes. The application form and additional details are provided below. More information on eligible grantees and projects, program priorities, and evaluation criteria can be found in the recently adopted LCP Grant Program Updates.

Coastal Commission staff is available to assist during the application process. Applicants are encouraged to reach out to the LCP Grant team with any questions as they develop their applications. Contact information is provided below.

Contents

1. APPLICATION FORM ...................................................................................................................... 2

2. PROJECT DESCRIPTION ................................................................................................................. 3

3. Task Descriptions and Schedule. ..................................................................................................... 5

4. Budget. ................................................................................................................................................. 9 Attachment A: Sample Resolution ........................................................................................................ 11 Attachment B: Application Checklist .................................................................................................... 13 Attachment C: Program Priorities and Evaluation Criteria ............................................................... 14

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2 1. APPLICATION FORM

APPLICANT INFORMATION
Applicant name (agency): City of Morro Bay
Address: 955 Shasta Ave, Morro Bay CA 93442
Primary Contact name: Kim Fowler Title: Planning Manager Telephone: 805-772-6577 Fax: 805-772-6568
Email: [email protected]
Federal Tax ID#: 95-230-8629
Person authorized to sign grant agreement, amendments, and Request for Funds:

Name: Airlin Singewald Title: Community Development Director Telephone: 805-772-6291 Email: [email protected]

PROJECT INFORMATION
Project Title: Waterfront Master Plan Update
LCP/LCP Segment: Morro Bay
Project Location
City/Geographic area: Morro Bay
County: San Luis Obispo
Project Timeline
Start date: 10/01/2024 End date: 9/30/2026
Signature: Date: 8/27/2024

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3 2. PROJECT DESCRIPTION
The City of Morro Bay is a small coastal community of approximately 10,700 in San Luis Obispo County located on Highway 1. The majority of the city is located in the Coastal Zone. The city has an active harbor and thriving commercial fishing industry, and its coastal amenities are a regional visitor destination. The community’s coastal resources, such as the 2,300-acre Morro Bay Estuary, also provide key habitat for a number of permanent and migratory species, including keystone and sensitive species. As the city evolves, it is critical to maintain coastal resources and be environmentally responsible while continuing to provide economic and recreation benefits.

To support the City’s waterfront area, a key economic market for the local economy, the city is seeking funding to update its 1996 Waterfront Master Plan (WMP) through funding support from the California Coastal Commission. An update to the Waterfront Master Plan is included as an integral implementation action within the City’s LCP. Policy LU-8.1 states “Update the 1996 Waterfront Master Plan with a focus on addressing issues of sea level rise and future planning for Morro Rock”.

The City’s combined General Plan/ Local Coastal Program (LCP) Coastal Land Use Plan (LUP), also known as Plan Morro Bay, was adopted by the City and certified by the Coastal Commission in 2021. The City of Morro Bay LCP consists of the City’s LUP (Plan Morro Bay), associated maps, the Waterfront Master Plan, and the City’s Local Implementation Plan (IP), which consists of portions of the Zoning Code and Zoning map. Plan Morro Bay and the IP update received funding support from the Ocean Protection Council, the California Coastal Commission (CCC), and the City’s General Fund. The comprehensive update of the Plan Morro Bay project involved extensive community and stakeholder engagement with over 80 public meetings during the period from 2015-2021. The City’s successful outreach and coordination efforts also included our close partnership with Coastal Commission staff during the grant administration for Plan Morro Bay.

The current 1996 Waterfront Master Plan (WMP) boundary area covers the waterfront area from the north at Little Morro Creek and Morro Rock to the T-Piers/ Fishermen Working Area, to Embarcadero Visitor Area, and extending south to Tidelands Park which is characterized by the natural features of the bluff, sandspit, recreation/park use and the public boat launch and ramp area. The WMP includes identification of planning areas, transportation and harbor improvements, proposals for four separate planning areas, and waterfront design guidelines which are part of the City’s Implementation Plan/Zoning Code.

With limited local financial resources, the City believes the opportunity for grant funding availability to support local government coastal resiliency efforts uniquely matches the goal of the Waterfront Master Plan update project. The goal of the Update project would be to expand the scope of the WMP to:
1) Incorporate updates to sea level rise (SLR) projections from the previous SLR technical studies performed in support of the 2021 LCP;
2) Develop a feasibility and adaption study to address Embarcadero commercial and waterfront industrial development in the Harbor which would identify triggers for implementing sea-level rise adaptation strategies, including potentially raising infrastructure along the waterfront. Existing policies in Plan Morro Bay are designed to address these issues through adaptation and mitigation, and implementation will be tailored to the areas with the highest risk. The goal of the feasibility and adaptation study would be to develop triggers that would mark the need for implementation of an action. This is consistent with Plan Morro Bay Policy LU-8.12 to develop information on effects of coastal hazards with a goal to increase funding for improvements related to vulnerabilities and impacts to infrastructure associated with changes in sea level elevation. In addition, Policy C-7.19,

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4 which states that the City shall consider the relocation of critical water and wastewater infrastructure to protect services from effects of sea level rise and coastal hazards; 3) Expand the area covered by the WMP to include both sides of the Embarcadero from Tidelands Park to the pedestrian bridge across Morro Creek, the old wastewater treatment plant property (pending discussions with the Cayucos Sanitary District), and offshore wind; and 4) Update design and development standards for the planning areas of the Waterfront Master Plan.

The final goal of the project would be to complete an updated WMP to submit for certification as an LCP amendment. The City Council’s resolution in support of this application is provided as Attachment B.

The WMP Update would seek to build upon the policies in the LCP – Plan Morro Bay by updating the WMP to incorporate policies specifically for the waterfront area, Morro Rock, extending north to Morro Creek and incorporating the “Pit” beach parking area along with the old Waste Water Treatment Plant site which would allow for implementation of identified sea level rise adaptation policies and also serve as update to previously adopted SLR policies in response to continued updated SLR projections.

The WMP update would be consistent with Plan Morro Bay which is organized around a framework for resiliency. Each element of the plan addresses different aspects of the community and identifies measurable actions to guide residents, decision-makers, businesses, and City staff toward achieving the vision. The plan includes goals and policies for increased resiliency to natural hazards and climate change effects. The plan also includes special emphasis on planning for strategies to reduce greenhouse gas emissions, sea level rise, increased drought and increased fires, and maximizes benefits to disadvantaged and low-income communities as a portion of central Morro Bay is designated as AB1550 Low Income Community status.

Previous funding received by Coastal Commission and the Ocean Protection Council allowed the City to develop the technical studies and background reports used to inform policy that includes strategies for adaptation planning. These completed background technical reports include a community baseline assessment, community vulnerability and resilience assessment, key issues and policies report, vision and value statement, as well as both an Environmentally Sensitive Habitat Area (ESHA) 2050 Sea Level Rise Scenario Report, and a H++ Update Coastal Resources & Resiliency Report based on OPC’s 2018 report detailing a new Extreme Risk Aversion scenario out to 2100.

It is this framework for resiliency that the WMP would be modeled after to ensure consistency with Plan Morro Bay. The age of the existing Waterfront Master Plan has resulted in difficulty for planning along with the waterfront. The City’s IP creates a Waterfront Master Plan overlay which recognizes the need to update this document to incorporate adapting to the impacts of climate change and sea level rise. The update of the WMP would be submitted to Coastal Commission as an IP amendment to the LCP.

The scope of the WMP update is consistent with the funding priorities of the LCP rolling grant funding announcement. The grant announcement includes funding project priorities that expressly match the City’s need with the Waterfront Master Plan update including LCP update which include: assessing impacts and planning for coastal resiliency, including adaptation to the impacts of climate change and sea level rise.

These policies are included in Plan Morro Bay and address reduction of greenhouse gas emissions, adapting to sea level rise; focused policies addressing environmental justice concerns particularly related to climate resilience and to ensure protection of coastal resources and provision of public coastal access and lowercost recreation for everyone, regardless of race, ethnicity, socio-economic status, or place of residence.

In addition, the City’s updated LCP places special emphasis on planning policies that seek to address effects of climate change, reduce and/or facilitate reduction of greenhouse gas emissions, provide co-benefits to the State of California, and maximize benefits to the AB 1550 low income community designation in north Morro Bay through new policies on coastal resilience planning and environmental justice policies. This is specifically addressed in the Environmental Justice Element with policies addressing health effects of

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5 Climate Change including vulnerable populations, public awareness, infectious disease, and emergency housing. Furthermore, the City’s LUP includes Policy LU7.8 which includes establishing updated triggers to monitoring lease sites to implement floating lateral accessways to improve design resiliency to sea level rise and evaluate existing bayside lateral access in the two-foot inundation zone.

The grant funding requested would enable the city to pursue the long overdue update of the Waterfront Master Plan by utilizing funding for an updated vulnerability assessment, sea level rise planning, economic feasibility study, and updated design guideline standards for development along the waterfront. It would also allow for the formation of a WMP Advisory Committee to be appointed by the Council consisting of community members and stakeholders to inform policy development and provide recommendations as liaisons between the community, the Planning Commission and City Council.

3. Task Descriptions and Schedule.

A. Task Descriptions:

Task 1 – Grant Administration and Project Management: The City will coordinate essential project management tasks, including project team check-ins, milestone reporting, and grant administration. This will be an ongoing task throughout the project.

Deliverables
• Quarterly progress reports and Requests for Funds submitted to CCC staff. • Quarterly check-in meetings between City and CCC staff to coordinate on grant reporting, deliverables, and WMP consistency with Coastal Act and CCC staff guidance.
• Request for proposals and contract to hire consultant(s) to prepare SLR vulnerability assessment update (Task 1), facilitate public engagement (Task 2), and prepare the WMP Update (Task 3).

Task 2 – Prepare Sea Level Rise Vulnerability Assessment Update/ Adaptation Report, and Feasibility Study. The City will utilize the latest guidance on sea level rise projections to update the previous technical studies done which include the ESHA 2050 Sea Level Rise Scenario Report and a H++ Update Coastal Resources and Resiliency Report based on OPC’s 2018 guidance. These reports will be focused on the boundary area of the updated Waterfront Master Plan. This will assist the City in implementation of LCP Goal LU-8 and specifically for consistency with Policy LU-8.7 regarding Embarcadero/Harbor Coastal Hazard Standards and requirements relating to developing a timeline to relocate underdeck utilities, decks, piers, and other immobile bayside lateral accessways raised to heights above the sea level rise inundation zone.

Deliverables:
• Draft Sea Level Rise Vulnerability Assessment Update for 6-8 week CCC staff review
• Final Sea Level Rise Vulnerability Assessment Update
• Draft Adaptation Report and Feasibility Study for 6-8 week CCC staff review • Final Adaptation Report and Feasibility Study

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6 Task 3 – Community Engagement: Similar to the approach utilized with Plan Morro Bay:

GP/LCP Update, the City will form a WMP Advisory Committee (WMPAP) consisting of community members and local stakeholders to act in an advisory capacity and provide recommendations to the Planning Commission and City Council for consideration.

Community engagement strategies would also include 2 community workshops, and online survey to solicit community and stakeholder feedback and input. The City will take proactive steps to involve underserved communities, such as the AB 1550 low-income area, in its public engagement efforts. This may include placing additional focus on low-income areas when advertising public meetings and workshop for the WMP update, providing a wide range of options for public participation, and establishing a focus group to represent the interests of underserved neighborhoods.

Deliverables
• If necessary, City Council staff report regarding formation of WMPAC • 2 community workshop agendas and meeting minutes
• Summary of community feedback from online survey
• At least 8 public meetings held of the WMPAC
• Memo summarizing the WMPAC meetings and recommendations Task 4 – Develop Waterfront Master Plan Update. This task includes developing an Administrative Draft of the Waterfront Master Plan which would include the deliverable of coordinating with Coastal staff on content of the WMP and conclusions, as well as Coastal Act compliance. The Draft WMP would also be reviewed with the WMPAC (see Task 3), the Planning Commission and City Council with the goals of seeking maximum community input.

Deliverables
• Administrative Draft WMP Update for 6-8 week CCC staff review • Draft WMP Update posted online for public review and comment • Summary of public comments and City staff responses
• Final WMP Update
Task 5 - Adoption Hearings of WMP Update – final document. This task includes finalizing the WMP Update based on technical studies completed, community engagement and input received, and producing the final document. Adoption hearings with Planning Commission and City Council will be held followed by submittal of an LCP amendment to the Coastal Commission to the Implementation Plan (IP).

Deliverables
• Planning Commission staff report with attached WMP Update • City Council staff report with attached WMP Update
• LCP Amendment submittal to CCC
B. Schedule:

Proposed Start/End Dates: 10/1/2024 – 9/30/2026
Task 1. Grant Administration & Project
Management Projected start/end dates:

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7 1.1 Project Management Projected start/end dates: 10/1/2024- 9/30/2026

1.2 Grant Reporting Projected start/end dates: 10/1/2024- 9/30/2026

1.3 RFP and consultant contract Projected start/end dates: 10/1/2024 – 12/31/2024
Outcome/Deliverables:
a. Grant Administration to oversee
project and stay on track
b. Request for Proposals
c. Executed contract with
consultant
a. Completion date 9/30/2026
b. Completion date 10/1/2024
c. Completion date 12/31/2024
Task 2. Prepare SLR Technical Feasibility
Studies / Resiliency Updates Projected start/end dates:

2.1 Develop Draft Technical Studies to
inform WMP Update
Projected start/end dates: 3/1/2025 –
5/1/2025
Review Draft with CCC staff 5/1/2025—6/30/2025

2.2 Develop Final Technical Studies to
Inform WMP Update
Projected start/end dates: 6/30/2025-
9/30/2025
Outcome/Deliverables
a. Draft SLR Assessment
b. Updated SLR Vulnerability
Assessment Completed
a. Completion date 6/30/2025
b. Completion date 9/30/2025
Task 3. Community Engagement Projected start/end dates:

3.1 Community workshops on visioning Projected start/end dates: 3/1/2025 – 4/30/2025

3.2 Community survey on preferences
(resiliency and design)
Projected start/end dates: 5/1/2025-
6/30/2025

3.3 Commence WMP Update Advisory
committee (WMPAC) of residents and
stakeholders to hold monthly public
meetings to provide recommendations
on policy and design components of the
WMP.

Projected start/end dates: 10/1/2024-
6/30/2026
Outcome/Deliverables
a. Workshop, Meeting minutes,
survey results of community
feedback received and public
meetings held of the WMPCAC.
a. Completion date 6/30/2026

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8 Task 4. Develop Waterfront Master Plan Projected start/end dates:

4.1 Develop Admin Draft of WMP
Update
Projected start/end dates: 1/1/2025 –
4/30/2025

4.2 Review Draft with CCC staff Projected start/end dates: 5/1/2025 – 5/31/2025

4.3 Produce Final Draft for public review Projected start/end dates: 1/1/2026 – 3/31/2026
Outcome/Deliverables
a. Admin Draft completed
b. Submit to CCC staff for review
c. Final Draft completed
a. Completion date 4/30/2025
b. Completion date 5/1/2025
c. Completion date 3/31/2026
Task 5. Adoption Hearings of
Waterfront Master Plan Update – final
document & LCP Amendment
Projected s tart/end dates:

5.1 Adoption Hearings with Planning
Commission and City Council
Projected start/end dates: 3/1/2026-
4/30/2026

5.2. Submit adopted WMP for LCP
Amendment.

Projected start/end dates: 5/1/2026 –
5/31/2026
Outcome/Deliverables
a. Planning Commission staff report
b. Adopted Waterfront Master Plan
c. Application for LCP Amendment
a. Completion date 4/30/2026
b. Completion date 4/30/2026
c. Completion date 5/31/2026
C. Benchmark Schedule:

ACTIVITY COMPLETION DATE
Quarterly and annual grant reports, consistent
with Coastal Commission requirements 5/31/2026
Task 2 – Updated Technical Studies 9/30/2025
Task 3 – Community Engagement 6/30/2026
Task 4 – Develop Waterfront Master Plan Update 3/31/2026 Task 5 – Adoption Hearings & LCP Amendment 9/30/2026

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9 4. Budget.

Application Budget Information
Funding Request: $ $750,000 Total Project Cost: $825,000 Jurisdiction Name CCC Grant Total Match/Other
Funds
Total (LCP Grant
Funds + Match/
Other Funds)
LABOR COSTS1
County/City Staff Labor
Task 1 – Grant Administration 0 5,000
Task 2 – Technical Study
Reports Update 0 10,000
Task 3 – Community
Engagement 0 20,000
Task 4 – Prepare Admin
Draft of WMP 0 20,000
Task 5 –Adopt Final WMP
Update document 0 20,000
Total Labor Costs 0 75,000

DIRECT COSTS
County/City Staff Project Supplies
A 0
B, etc. 0
Total 0
County/City Staff Travel In State2
Mileage 0
Hotel, etc. 0
Total 0
Consultants3/Partners
Consultant A (Primary Consultant)
Task 1 –Grant Administration 35,000
Task 2 – Technical Study
Updates 110,000
Task 3- Community
Engagement 150,000
1 Amount requested should include total for salary and benefits. 2 Travel reimbursement rates are the same as similarly situated state employees. 3 All consultants must be selected pursuant to a bidding and procurement process that complies with all applicable laws.

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10 Jurisdiction Name CCC Grant Total Match/Other
Funds
Total (LCP Grant
Funds + Match/
Other Funds)
Task 4 – Waterfront Master
Plan 250,000
Task 5 – Adoption Hearings &
LCP Amendment 45,000
Consultant B, etc (Technical Consultant).

Task 1 –Grant Administration 10,000
Task 2 – Technical Study
Updates 110,000
Task 3- Community
Engagement 15,000
Task 4 – Waterfront Master
Plan 25,000
Task 5 – Adoption Hearings &
LCP Amendment
Consultants Total 750,000
Total Direct Costs 750,000
OVERHEAD/INDIRECT COSTS4
Total County/City Staff
Overhead/Indirect Costs 75,000
TOTAL PROJECT COST 750,000 75,000 825,000

1. Supplementary Information (optional). Additional photos, maps and/or other information may be included as attachments if such materials will help illustrate or support the proposed project. This may include maps or other information identifying disadvantaged and low-income communities within the planning area; maps, photos, or other information regarding project areas identified to be significantly impacted by climate change or sea level rise; brief descriptions or links to previously completed studies or other work upon which the proposed project will build; or letters of support from relevant stakeholders.

Please note: All photos, maps, and additional information submitted is subject to the unqualified and unconditional right of the State of California to use, reproduce, publish, or display it, free of charge. All items submitted will be considered a public record upon submittal and will be treated in accordance with Public Records Act requirements. Please indicate if credit is requested for any photos and/or maps or documents. 4 Indirect costs include, for example, a pro rata share of rent, utilities, and salaries for certain positions indirectly supporting the proposed project but not directly staffing it. Amount requested for indirect costs should be capped at 10% of amount requested for “Total Labor.”

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11 Attachment A: Resolution5
WHEREAS, the Budget Act of 2021 provides up to $31 million to support the Coastal Commission’s LCP Local Assistance Grant Program which awards grants to local governments to support coastal resiliency and updates to Local Coastal Programs (LCPs); and WHEREAS, the California Coastal Commission, under the authority of the California Coastal Act, may provide financial assistance to support coastal planning and has approved a grant program to provide such financial assistance for LCP planning; and WHEREAS, the goal of the grant program is to develop new or updated LCPs in conformance with the California Coastal Act and to promote coastal resiliency and address the effects of climate change; and
WHEREAS, grant proposals submitted under this grant program must complete Local Coastal Program (LCP) planning work with special emphasis on coastal resiliency and addressing the effects of climate change and sea-level rise; and
WHEREAS, (insert name of jurisdiction), has [does not yet have] an effectively certified LCP [or LCP segment]; and
WHEREAS, the (name of jurisdiction), desires to pursue a project that would result in the completion and submittal for certification by the California Coastal Commission of an Amendment to the LCP [in whole or in part]; and
[For uncertified areas] WHEREAS, the (name of jurisdiction), desires to pursue a project that would result in the completion and submittal for certification by the California Coastal Commission of an LCP and desires to assume permit issuing authority; and WHEREAS, the (name of jurisdiction) commits to and agrees to fully support a planning effort intended to [complete or] amend a certified LCP pursuant to the provisions of the California Coastal Act, with full public participation and coordination with the Coastal Commission staff.

NOW, THEREFORE, BE IT RESOLVED, that the [name of legislative or policy body], of the [name of jurisdiction], hereby:

1. Directs [name of jurisdiction] staff to submit the grant application package attached hereto as Attachment 1 to the California Coastal Commission to provide financial and planning assistance, under authority of the California Coastal Act, in the amount of $___________ to fund the project more particularly described in the grant application package.
5 This sample is provided for informational purposes only; please contact your attorney before using this sample.

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12 2. Authorizes the (title of official), of the (name of jurisdiction), to execute, in the name of the (name of jurisdiction), all necessary applications, contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application.

PASSED AND ADOPTED by the (name of legislative or policy body), of the (name of jurisdiction), on this ____ day of _______________, 2021 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attest:
_____________________________________
Signed:
____________________________________
(name and title of official authorized to sign resolutions of the governing body)

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13 Attachment B: Application Checklist
A complete Grant Application Packet includes the following components. Please submit all documents in a single PDF file as well as a Word Document of the Project Proposal details, as noted below. It is very important to receive the PDF file and a Word document for efficiency in preparing grant agreement documents. Thank you for your attention to these important components of the application.

Signed LCP Grant Application Form (.pdf)
Project Proposal (.docx)
o Project Description, Task Descriptions, Schedule, Budget, and Supplemental Information
Signed Resolution (.pdf)
All documents combined into a single PDF file (.pdf)

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14 Attachment C: Program Priorities and Evaluation Criteria Eligible Grantees and Projects
LCP update, an LCP amendment (e.g., updates to coastal hazards policies; incorporation of new sea level rise related policies or programs), targeted LCP changes (e.g., changes to LCP policies/zoning to allow for implementation of identified sea level rise adaptation strategies or climate resiliency projects; updates to previously adopted SLR policies in response to continued planning),
Program Priorities
Evaluation Criteria
Staff will evaluate grant applications against the following selection criteria. The criteria will be considered as a whole, not weighted.

Public Benefit/Significance
The Commission will consider the extent to which the proposed project will address issues of statewide significance and maximize public benefits of the coast. These can include reducing greenhouse gases and addressing the impacts of climate change and sea level rise; preserving and enhancing coastal habitat; protecting, providing and enhancing public access; protecting priority land uses such as agriculture, coastal dependent development, or recreation; protecting and providing lower cost visitor and recreational opportunities. The Commission will consider the extent to which priority Coastal Act resources are addressed and the public benefits maximized.

Application Response:

Public Benefit/Significance: Morro Bay’s coastline especially the Waterfront and Morro Rock area is a critically important resource to the residents and businesses of Morro Bay, San Luis Obispo County, as well as the rest of California. Almost the entirety of the City resides in the coastal zone as shown on the attached map. The tasks described in the Work Program include a comprehensive update of the City’s Waterfront Master Plan which was adopted in 1996 and certified by the Coastal Commission in 1997. The City’s LCP (Plan Morro Bay), certified in 2021 was developed around a framework of resiliency. Each element of Plan Morro Bay includes a resiliency approach which identifies the element’s role in the City’s overall goal for increased resiliency to natural hazards, climate change effects, and any potential social disruption. The Waterfront Master Plan which is a component of the LCP has not been updated since its adoption in 1996. Updating the document will allow the City to update its technical studies including vulnerability assessment, sea level rise modeling based on the newest guidance and promote resiliency in the context of updated WMP policies that is void in the current 1996 document. An updated document that is incorporated as an LCP amendment to the IP/Zoning Code will enhance safe, extensive, and resilient planning for the Morro Bay waterfront and Morro Rock area. The City depends heavily on the waterfront as a regional economic driver, supporting ecotourism, recreational activities, and commercial fishing.

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15 Public benefits to the public would also include transportation and circulation enhancements. Much of Morro Bay’s transportation infrastructure and facilities are also vulnerable to the effects of sea level rise and climate change. The update of the Waterfront Master Plan would enable the City to establish a plan for when and how to modify current design and maintenance practices which will be essential to preventing infrastructure damage in the long term. Adding in multi-modal circulation improvements will allow the City to meet the needs of all users. This could also include access across Morro Creek where there is an existing bike/pedestrian bridge but does not include vehicular access.

Environmental Justice
In 2016, the Legislature passed AB 2616 giving the Coastal Commission explicit authority to consider environmental justice, defined in California Government Code Section 65040.12(e), as updated in 2020, as: “The fair treatment and meaningful engagement of people of all races, cultures, incomes, and national origins with respect to the development, adoption, implementation and enforcement of environmental laws, regulations, and policies.” Lowincome communities, indigenous communities, communities of color, and other marginalized communities often bear a disproportionate burden of pollution or other environmental harms, while suffering from a lack of environmental services, such as clean drinking water, clean air, and access to parks and open space. Addressing these types of disparities and barriers to meaningful involvement is critical for ensuring that Coastal Act goals of protecting coastal resources for all are equitably fulfilled, particularly as climate change results in evolving risks, without creating new or continuing to exacerbate existing environmental burdens in environmental justice communities. The Coastal Commission will consider the extent to which environmental justice issues are addressed when evaluating grant proposals.

Application Response:

Plan Morro Bay includes an Environmental Justice element that specifically address health effects of Climate Change for vulnerable populations, with policies on public awareness, infectious disease, and emergency housing. This element complements the City’s Climate Action Plan (CAP) by ensuring that the community has a strong base that is able to recover from the natural disasters and economic changes caused by climate change impacts. The update of the Waterfront Master Plan will ensure that protection of coastal resources and coastal access is maintained through proper planning of waterfront infrastructure.

Addressing the Effects of Climate Change
Climate change is one of the most significant policy areas to emerge since many of the LCPs have been certified. The Commission is seeking LCP updates and amendments that address the effects of climate change, including land use, housing, transportation, and habitat restoration and conservation policies that facilitate reductions in greenhouse gases and vehicle miles traveled, as well as the planning and implementation of strategies to adapt to sea level rise and other issue areas affected by climate change, such as changes in habitats and fire hazards.

Application Response:

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16 As stated previously, the City’s Plan Morro Bay (LCP) is a document that has resilience planning at its very core. Each element of the Plan includes a resiliency approach to its organization. For example, two specific elements which showcase this resiliency approach include the Conservation Element and the Public Safety Element. The Conservation Element goals and policies promote a resilient, sustainable community offering a balance of open spaces, coastal access, and quality built and natural environments both along the coastline and inland. The Conservation Element includes greenhouse gas reduction strategies, emissions reduction targets, climate action plan policies, and policy which directs the City to seek out grant funding to support implementation of greenhouse gas reduction projects for the City. The Public Safety Element minimizes community risks associated with natural and man-made hazards. This element identifies hazards that could be made more severe by the City’s location on the coast and anticipated climate change impacts. Public Safety Element goals and policies address natural hazards, coastal adaptation, and emergency response to protect residents, visitors, and wildlife from anticipated impacts and appropriately plan for the future of the Morro Bay waterfront through updated climate resiliency policies and updated design guidelines.

In addition, the Circulation Element recognizes that transportation is a significant contributor to greenhouse gas emissions and is a critical component of the city’s ability to function. The Waterfront Master Plan update project will incorporate adaptation planning strategies to adapt to climate change impacts. This will be done by identifying appropriate transportation improvements such as the planned circulation improvement identified in Plan Morro Bay which includes Embarcadero north of Beach Street.

This improvement identified providing sidewalks and a vehicular connection shifting traffic away from Beach Street for the redeveloped Morro Bay Power Plant site. Multimodal improvements can include identifying need for expanding electric trolley service access, bike pathway improvements, and potentially other roadway improvements. Planning and implementation of strategies to adapt to climate change impacts is also consistent with Land Use Policy LU-8.10 which requires that beaches be monitored for sea level rise impacts such as erosion and changes in beach widths in order to identify trigger points for various adaptation strategies.

Relative Need for LCP Update
Related to the public benefits of a proposal, the Commission will consider the relative need for an LCP update, considering the length of time since an LCP or LCP segment has been updated and the significance of the issues proposed to be updated. For example, many jurisdictions seek to assess vulnerability and develop adaptation solutions to address sea level rise, fire, or other climate change impacts to critical infrastructure, residential areas, recreational amenities and open space, or significant wetland and habitat areas. Others have identified needs to reduce vehicle miles traveled, encourage smart growth, increase climate-resilient housing supply, improve public transit, and enhance pedestrian and bicycle options, particularly to and along the coast. A proposal to complete technical studies, economic analyses, mapping, public outreach, and development of LCP policies in support of these options may be important.

Application Response:

The City’s Waterfront Master Plan was adopted in 1996 and certified by CCC in 1997 and included as a component of the 2021 LCP. Due to the age of the document, the WMP does not include policies specifically addressing sea level rise or climate adaptation planning. The WMP focus includes identification of planning areas within its boundaries, transportation and harbor improvements key

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17 improvements for four separate planning areas, and waterfront design guidelines which in 1997 were certified with an LCP amendment as part of the City’s Implementation Plan/Zoning Code.

The 2021 LCP recognized the age of the document and need to update it with Policy LU-8.1 which states the City will update the WMP with a focus on addressing issues of sea level rise and future planning for Morro Rock. With rapidly changing science as it relates to sea level rise modeling, the City proposes to update the technical studies done in support of Plan Morro Bay to ensure the latest guidance. In addition, recognizing the unique need for habitat restoration within the bay and greater estuary area, the proposal would also include incorporation of eelgrass policy development into the updated Waterfront Master Plan.

Likelihood of Success/Effectiveness
Overall, the success of the Commission’s grant program will be measured by the progress made toward development and implementation of climate resilience strategies, including through LCP certification, update, or amendment. The Commission will consider the likelihood of success of each proposal, including evaluating the practicality, feasibility, and effectiveness of a proposed work program that may lead to successful implementation. Proposals must address the need for coordination with the public and the Commission, and provide for practicable benchmarks for development and review of studies, plans, LCP policies, and other project-specific deliverables.

Applicants will be asked to describe any LCP planning work that has been initiated or is already underway at the local level and how this grant program is needed to substantially further that effort. A resolution from the applicant committing to completing an LCP Amendment submittal to the Commission will be required as part of the application.

For new LCP development, the local government should demonstrate its willingness and capacity to assume local coastal development permit processing. Relatedly, some areas of the coastal zone remain uncertified because the Commission and local government have been unable to reach agreement on the resolution of issues or the issue is particularly intractable.

The Commission will consider the likelihood that such areas and specific policy questions can be successfully addressed, leading to certification of the area.

Application Response:

The City’s recently completed a comprehensive update of its LCP Land Use Plan and Coastal Implementation Plan. The LUP was adopted by the City Council in 2021 and certified by the Coastal Commission three months later with Commissioner public comment including the LUP would be a model document for other coastal cities. Following that the City adopted a comprehensive update of its Implementation Plan in 2022 with amendments completed in December 2023. The IP is currently pending certification by the Coastal Commission. Both documents had significant community input and feedback.

Multiple forms of community engagement were utilized including community-wide workshops, online surveys, telephone surveys to reach underrepresented populations, stakeholder and focus group interviews, as well as the City Council convening of the General Plan Advisory Committee (GPAC) which was a cross-section of the community appointed to act as liaisons between the community and the Planning Commission. The City seeks to utilize the same strategy with the Waterfront Master Plan Update project. Upon adoption of the Waterfront Master Plan, the City will submit for an LCP amendment to its Implementation Plan to incorporate the WMP. The City would also be prepared and

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18 willing to assume local coastal development permit processing for those portions of the waterfront which are currently included within the CCC original retained jurisdiction.

Project Integration/Leverage/Matching Funds
The Commission will consider the relationship of the LCP work program to other planning work being undertaken by the jurisdiction. There are several statewide grant programs underway which may positively integrate with this LCP Planning Grant program. Applicants will be asked to describe any other related grant awards (such as through past Coastal Commission grant rounds, or from the Ocean Protection Council, Coastal Conservancy, Caltrans, or the Strategic Growth Council) that may support the LCP planning work. The Commission will consider the ability to integrate and leverage any additional program funds available that could help support LCP certification, update, or amendment.

The City completed a comprehensive update of its previous 1984 LCP with a new LCP adopted and certified by CCC in 2021. This update process was successful due in large part to receipt of three previous LCP planning grants; a Round 2 grant for $147,000 a Round 3 grant for $200,000, and a Round 6 grant for $65,000. In addition prior to that, the City received a $250,000 grant from the Ocean Protection Council. This funding was matched by $707,000 in City General Fund contributions as well as in-kind staff. This funding was used to provide the background technical reports listed below as well as prepare administrative and public draft documents of Plan Morro Bay.

These prior grants funded:
• Completion of the draft LCP / Plan Morro Bay (adopted 2021) • Community Vulnerability and Resiliency Assessment
• Key Issues and Policies Report
• Community Baseline Assessment
• Downtown Waterfront Strategic Plan (adopted 2018)
• Zoning Code (IP) Diagnosis Memo and Draft IP
• Circulation Element Update Technical Report
• Low Cost Visitor Serving Accommodations Technical Memo • Lateral Access Technical Memo
• Environmentally Sensitive Habitat (ESHA) Analysis: 2050 Sea Level Rise Scenario • Sea Level Rise Adaptation Strategy Report
• Coastal Resources & Resiliency, H++ Update
These documents were developed to inform policy and integrated into the City’s draft LCP / Plan Morro Bay. As stated in the proposed budget, the City’s request is for $750,000 with an additional City match of $75,000 to update the City’s 1996 Waterfront Master Plan. The City update will focus on addressing issues of sea level rise and future planning for Morro Rock. With the final budget request, it is the City’s desire to proceed with the update of the Waterfront Master Plan and not only incorporate coastal resilience and sea level rise adaptation planning but also update other portions including waterfront Design Guidelines. The City aims to proceed to adoption documents and subsequently submit for certification to the Coastal Commission within two years of grant award or by September of 2026 as noted in the project schedule.

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Staff Report
AGENDA NO: 9.c
MEETING DATE: August 27, 2024
01181.0001/1009204.1
Prepared By: CN, YK, DS______ Dept Review:_____
City Manager Review: __YK______ City Attorney Review: __CFN____ TO: Honorable Mayor and City Council DATE: August 19, 2024

FROM: Yvonne Kimball, City Manager
Chris F. Neumeyer, City Attorney
Dana Swanson, City Clerk
SUBJECT: Amend Council Policies & Procedures Section 5.5, for Elected Officials Not Running for Office, to Conduct Town Halls Under Section 5.5 During Election Season; and, 2) Authorize Section 5.5 Exception for Potential Town Hall Meetings

RECOMMENDED ACTION
Discuss and then consider approval of some/all of the following options:

1. Adoption of Resolution No. 59-24 amending the City Council Policies & Procedures, to amend Section 5.5 regarding the use of public resources during election season by elected officials not running for office, with one of following options:

Option A: affirm that Council by agendized action may consider specific exceptions to the restrictions in Section 5.5 during election season for Council Members not running that election season for re-election; or
Option B: provide that the restrictions in Section 5.5 during election season do not apply to a Council Member not running for re-election that election season; and/or

2. Provide exception(s) to Council Policies and Procedures Section 5.5 to Council Member Landrum for potential upcoming Town Hall meetings, to be determined at meeting, for possible topics including but not limited to homelessness, the downtown, harbor issues such as infrastructure needs and waterfront sustainability, and what can local government do about issues of what is in our water, air and food.

ALTERNATIVES
The Council may choose to not take any, or some, of the proposed actions.

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

BACKGROUND
The overall principles and guidelines contained in the City Council Policies & Procedures (Policies) establish procedures, roles and responsibilities that contribute to the orderly conduct of the City’s business. The Council Policies & Procedures were adopted in 2001 and have been reviewed and updated over the years. On January 9, 2024, Section 5.5 (“Use of Public Resources”) was added to the Policies to read as follows:

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01181.0001/1009204.1 2
Members shall not use public resources unavailable to the public in general, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

City Council has identified community engagement as a priority of the council. City Council recognizes that limited meeting spaces are available in the City of Morro Bay. In supporting individual council members’ effort to reach the general public for the overall interest of the City of Morro Bay, council members, Mayor included, are allowed to use city’s meeting facility free of charge for up to six times per calendar year for outreach meetings, including Town Hall, Listening sessions and like, except during the election season beginning 120 days prior to an election to fill a City office, provided those sessions require only limited staff support for facility use. The outreach events must demonstrate a reasonable connection to the city council adopted goals. Council members shall request facility usage through the City Manager.

The 120 days restriction was adopted to provide a broad and strict prohibition on use of public resources during election season. California law prohibits use of public resources for either personal or political purposes.

Under California law, using public resources for either personal or political purposes is illegal. “Public resources” include such things as: 1) Money (for example, charges made on an agency credit card or account); 2) Staff time; 3) Equipment (for example, machinery, vehicles, technology, tools, telephones, furniture and computers); and, 4) Supplies (for example, items one would otherwise purchase at office supply or hardware stores). “Use” means the use of public resources that is substantial enough to result in a gain or advantage for the user and a loss to the local agency that can be estimated as monetary value.

Public officials face both criminal and civil penalties for using public resources for personal or political benefit.

DISCUSSION
At the August 13, 2024, Council meeting, at the request of Council Member Landrum to fine tune Section 5.5, the Council directed staff to bring back an agenda item to allow for exceptions, for a Council member who is not running for reelection during that election season, to the 120 days restriction in the policy during election season.

Council could amend the policy to either:

Option A: affirm that Council by agendized action may consider specific exceptions to the restrictions in Section 5.5 during election season for Council Members not running that election season for re-election ; or,
Option B: provide that the restrictions in Section 5.5 during election season do not apply to a Council Member not running for re-election that election season.

Two alternative resolutions are attached that can amend the policy for either of the above options at the direction of the Council.

Furthermore, for expediency’s sake, Council tonight could approve, at the desire of Council

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01181.0001/1009204.1 3
Member Landrum, exception(s) to Section 5.5 of the Policy for potential upcoming town hall meetings by Council Member Landrum. Topics may be ones such as homelessness, the downtown, harbor issues such as infrastructure needs and waterfront sustainability, and what can local government do about issues of what is in our water, air and food.

CONCLUSION
Staff recommends the Council discuss and consider amending Section 5.5 of the Policy and also consider at the present meeting granting Council Member Landrum exception(s) to Section 5.5 of the Policy as outlined above and presented at the Council meeting.

ATTACHMENTS

1. Link to City Council Policies & Procedures

2. Resolution No. 59-24 adopting Option A Policy Revisions

3. Resolution No. 59-24 adopting Option B Policy Revisions

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01181.0001/1009235.1
RESOLUTION NO. 59-24 (OPTION A)

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

AMENDING THE CITY COUNCIL

POLICIES AND PROCEDURES MANUAL

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay (the “Manual”) is a combination of City Council actions, policies, references, and information regarding the City Council; and
WHEREAS, to ensure all Councilmembers are familiar with and understand the City of Morro Bay’s philosophies and policies regarding serving on the City Council, on July 23, 2001, the City Council adopted Resolution 47-01 approving an early version of the Manual; and WHEREAS, the Manual has been amended several times throughout the years; and WHEREAS, the City Council has identified community engagement as a priority of the Council; and WHEREAS, promoting community engagement by Council Members with the public concerning City Council adopted goals promotes a good government mandate of responsiveness, transparency and accountability; and
WHEREAS, the City Council recognizes that limited meeting spaces are available in the City of Morro Bay; and
WHEREAS, a limited use of public resources to promote the Council goals of community engagement is a worthy and proper endeavor for the City; and WHEREAS, the City Council recently added Section 5.5 to establish a policy for use of public resources for community engagement by elected officials, so as to promote responsive government, transparency, and accountability, while also actualizing a Council priority of community engagement; and WHEREAS, Section 5.5 provides that, in supporting individual council members’ effort to reach the general public for the overall interest of the City of Morro Bay, council members, Mayor included, are allowed to use city’s meeting facility free of charge for up to six times per calendar year for outreach meetings, including Town Hall, Listening sessions and like, provided those sessions require only limited staff support for facility use, and they demonstrate a reasonable connection to the city council adopted goals; and
WHEREAS, Section 5.5 also provides that such use of City facilities pursuant to Section 5.5 is not permitted, without exception, during the election season beginning 120 days prior to an election to fill a City office;
WHEREAS, the City Council desires to amend Section 5.5 to provide the exception that Council Members not running for re-election during said election season shall have an opportunity to use City facilities pursuant to Section 5.5; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay does hereby amend Section 5.5 of the City Council Policies and Procedures Manual as follows (added text in bold):

5.5 Use of Public Resources

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01181.0001/1009235.1
Members shall not use public resources unavailable to the public in general, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

City Council has identified community engagement as a priority of the council. City Council recognizes that limited meeting spaces are available in the City of Morro Bay. In supporting individual council members’ effort to reach the general public for the overall interest of the City of Morro Bay, council members, Mayor included, are allowed to use city’s meeting facility free of charge for up to six times per calendar year for outreach meetings, including Town Hall, Listening sessions and like, except during the election season beginning 120 days prior to an election to fill a City office, provided those sessions require only limited staff support for facility use. However, during the time period of 120 days prior to an election to fill a City office, a council member who is not running for re-election at that election shall be able to hold such outreach meetings free of charge upon approval of Council through an agendized item at a public meeting. The outreach events must demonstrate a reasonable connection to the city council adopted goals. Council members shall request facility usage through the City Manager.

PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 27th day of August 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk

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01181.0001/1009235.1
RESOLUTION NO. 59-24 (OPTION B)

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

AMENDING THE CITY COUNCIL

POLICIES AND PROCEDURES MANUAL

5.5 Use of Public Resources

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01181.0001/1009235.1
Members shall not use public resources unavailable to the public in general, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

City Council has identified community engagement as a priority of the council. City Council recognizes that limited meeting spaces are available in the City of Morro Bay. In supporting individual council members’ effort to reach the general public for the overall interest of the City of Morro Bay, council members, Mayor included, are allowed to use city’s meeting facility free of charge for up to six times per calendar year for outreach meetings, including Town Hall, Listening sessions and like, except during the election season beginning 120 days prior to an election to fill a City office, provided those sessions require only limited staff support for facility use. However, during the time period of 120 days prior to an election to fill a City office, a council member who is not running for re-election at that election shall be able to hold such outreach meetings free of charge. The outreach events must demonstrate a reasonable connection to the city council adopted goals. Council members shall request facility usage through the City Manager.

PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 27th day of August 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk

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Prepared By: _YK _______Dept Review: ______
City Manager Review: __ YK______ City Attorney Review: ______ Staff Report
TO: Honorable Mayor and City Council DATE: August 22, 2024 FROM: Yvonne Kimball, City Manager
SUBJECT: Update on Fiscal Year (FY) 2023-24 and 2024–25 City Council Goals and Action Items

RECOMMENDED ACTION
Receive a progress report on the City Council goals, goals’ statements, and action Items, acknowledge accomplishments and overall workload, and provide direction remaining goals.

ALTERNATIVES
None

FISCAL IMPACT
There is no immediate fiscal impact related to the recommendation, however, many of the action items have associated fiscal impacts, some of which will result in costs to the City and other items may bring revenue enhancements to the City.

BACKGROUND/DISCUSSION
In April 2023, the Council adopted a set of goals, goals statements and short-term action items following a deliberated process.

The Council adopted four goals for FY 2023-24 and FY 2024-25:

1. Public Infrastructure

2. Economic Vitality

3. Housing / Homelessness Response

4. Community Engagement
Each of the goals have several corresponding action items. Together there are 27 short-term goals.

As of August 2024, we have completed 14 of them and 7 are near completion. A couple of shortterm goals need clarification or further direction.

Progress on Goals which are nearly complete.

Infrastructure
 Street paving
 Development Impact fee study
AGENDA NO: 9.d
MEETING DATE: August 27, 2024

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 Public safety needs assessment (standards of cover)
 Improve streetscape
Economic Vitality
 Monitor and stay engaged in OSW
Housing and Homelessness Response
 Continue participation in county’s 5-year plan
Community Engagement
 Develop and implement outreach and communication plan Many goals have been completed as far as we can go at this point, but the overall activities likely become ongoing efforts. They are:

Economic Vitality
 Pursue grant opportunities
 Review of city owned properties [with focus on key catalyst properties], strategy to optimize use revenues [investment explore use of commercial realtor to manage commercial rental property]
 Streamline permit process for ADU and commercial development  Presentation to Council on paid parking study, and proposed pilot program.

Housing / Homelessness Response
 Housing Element Program implementation
 Review possible upzone of Seashell Estates property
 Explore achievable options at the city level including emergency warming shelters  Homeless Outreach Case Manager
 Speed up processing of ADU permits
Community Engagement
 Leverage partnerships with Chamber, Visit Morro Bay, local service clubs, etc.  Explore available communication tools
 Conduct joint Council/Advisory Board meetings periodically and consider biannual or annual advisory reports to council
 Continue Morro Bay Police Department Citizens Academy, consider other community outreach opportunities, including work sessions
 Ad Hoc Committee review of Planning Process
Some goals need further direction from the City Council. They are:

Economic Vitality
 Market Plaza development: This project has been evolving over many years. It would make sense to clarify or reaffirm the scope before additional resources, both public and private, are further spent.
 A related short-term was the review of city owned properties. The city owns real estate properties; some are occupied for long term uses, such as the library property, the Chamber/Visit Morro Bay property, and two residences occupied by city staff due to special circumstances. Key opportunity properties that are impactful would include 781 Market St.

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and surrounding properties, 231 Atascadero, 160 Atascadero, 525 Harbor. 1130 Napa has also been considered for exploration.

Housing
 Identify affordable housing incentive program: This has evolved into the discussion with the Downtown Design District.

Community Engagement
 Development Historical Preservation Ordinance using draft ordinance prepared by Historical Society as a standing point. A new ordinance requires substantial resources to develop. The Downtown Design District discussion has identified that the first achievable step is to work with the historical society to generate a list of properties of historical interest or value. Staff seeks concurrence.

When considering the progress of the 27- short-term goals, it is appropriate to acknowledge that there is a full list of existing or unfinished priorities from previous cycles that staff also has to tackle.

Examples are:
 WRF remaining tasks: IPR, decommissioning
 Regional water supply portfolio monitoring
 Grant-initiated projects including EV charging stations  BESS application processing
 Panorama project processing
 Tennis court rehab
 Pickleball court resurfacing
 Short-Term Rental related analysis
 60th anniversary celebrations
Further, key position changes in the last year also play a role in the progress of things we do. All these matters keep city staff and city council very busy.

ATTACHMENT(S)

1. FY 2023-24 & 2024-25 Goals, Goals’ Statements & Action Items

2. Progress report

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Visit us at: htps://www.morrobayca.gov/ and sign up to receive e-no�fica�ons regarding upcoming mee�ngs and other City news.

You may contact the City Council via email at [email protected] You can follow the City of Morro Bay on social media

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Goal #1: Public Infrastructure
Item # Action Items Departments Involved Lead Department CURRENT STATUS (As of August 2024) NEXT STEPS (As of August 2024) 1) Street Paving Public Works Public Works
Proposals were received from five construction management firms and Filippin Engineering has been selected to project construction management and testing services during construction. Construction Bids due 8/15/2024. Paving is expected to begin in September 2024.

Bring construction management and construction contracts to City Council on 8/27/24; prior miles stones: - with weather consideration performed small work weekly mostly in North Morro Bay. - finalized contract to enable a Contractor short-term rehab of Preston Ln. -paved PD parking lot and Lila Kieser parking 2) Complete Capital Needs Assessments Public Works, Harbor Public Works Continued effort to secure Congressonal funding; in June 2024 City consolidated the Harbor/non-Harbor budgets to focus on the Harbor revetments. Brady Engineering performed site survey work on the revetment wall June 20th through July 19th. Brady is analyizing the data collected and preparing the draft assessment report. Brady expects to submit the draft report by the end of September.

Review and provide comments to the consultant on the draft revetment wall assessment report when received. When the final assessment report is received, present a summary of the findings to Council. 3) Complete Development Impact Fee Study Admin Svcs, Public Works, Comm Dev, Harbor, Fire, Police Admin Services Preparing RFP, form staff project team. Evaluated other fees as a part of the Project Team selected DTA and work is underway. Selected Teams meetings occur every 2-4 weeks.

Draft report from (consultant) DTA will go to CFAC for review/feedback (Oct. 15th 2024). Goal is to take to Council for approval in time to implement new fees by January 1, 2025. 4) Update Council Chamber: A/V upgrades, web-based agenda management system for closed captioning and improved accessibility for visually impaired Public Works, City Clerk, IT Public Works In process of signing contract with consultant to review decision points as part of A/V upgrade. Staff will continue transition/implementation of web based agenda system (eScribe) with full implementation to be aligned with Vets Hall A/V upgrades. Staff researched other cities' systems completed exploration of space functionalities and funding option through FY 24/25 budget, came up with RFQ with help of IT and city clerk to assist scope decisions. Consultant on board Complete staff report to the City Council on decision points related the the A/V upgrade and bring to Council in October 5)
Prioritize storm recovery efforts, maximizing FEMA/insurance reimbursement opportunities; Hazard mitigation / climate resiliency (grant funding opportunities) Public Works, Admin Services, Risk Mgmt, Comm Dev Public Works The City has received $583,425.62 in insurance proceeds primarily for damage to WWTP buildings, Harbor docks and Maintenance vehicles. Invoices in the amount of $40,225.34 for damaged tools / equipment that were replaced was submitted for reimbursement on 8/12/24. FEMA Claims - 23 projects claims have been submitted to FEMA. Two claims have been rejected due to 100% of loss covered by insurance. <> Individual project milestones: Sequoia storm drain project out to bid in July 2024; council approval of contract in August.

Continue to work with FEMA to provide information as requested by FEMA reviewers. 6) Public safety needs assessment (Standards of Cover) Fire, Police Fire Met with consultant, submitted all required data and completed interviews . We are awaiting draft report from consultant.

Report is expected in a few weeks.

Goal Statements: (1) Assess and provide report on state of infrastructure including streets, sewer lines, sidewalks, storm drains and Harbor Infrastructure; (2) January 2023 storm response and future mitigation; (3) Repair, update and enhance Veterans Hall so it can continue to serve the community; (4) Striping program to improve sidewalks, crosswalks & accessible parking. 8/22/2024 Page 225 of 230 1 of 6
7) Improve streetscape with road striping, parking lines & curb painting Public Works Public Works See Street Paving goal above. Completed Local Safety plan which was funded by a grant. The plan can be utilized in a variety of street related work, including possble grants.

See street paving goal above.

Not yet initiatedUnderwayNearing CompletionComplete
8/22/2024 Page 226 of 230 2 of 6
Goal #2: Economic Vitality
Item # Action Items Departments Involved Lead Department 1) Market Plaza development opportunities Comm Dev, City Manager Comm Dev City has been in negotiations for a sale and redevelopment of the property. The property is currently being leased with an annual income of $60k a year. Updated appraisal received in March 2024; Leasor expressed interest in property. Development scope needs to be redefined.

Given new information, clear direction is needed- option - continue w. orignal scope; modify orignal scope; restart a process for a new RFP; 2) Monitor and stay engaged in offshore wind development Council Sub-Committee, City Manager, Harbor, Community Development City Manager
SLO county MOU funded study inc. local meetings; continue to engage with state, federal, and local groups, inc. Cal Poly, Port San Luis, REACH, Chamber, Fishing, etc. as well as lease holders for disucssussions. Possible legislative platform to refine city council priorities. possible appointment staff liasons w. energy focus An MOU with County may be formed by the end of 2024, regarding a grant for port feasiblity study 3)
Pursue grant opportunities, including RFP for full-service grant writer & grant administration (if succerssrful); Coleman Beach area; Climate Action Plan & Waterfront Master Plan; DBW grant funding for boat ramp replacement All Finance
Looking into development of a grant management systems given compliance difficulties with auditing requirements given $12-14 million in grants awarded in last two years. Nonetheless, Harbor Dept has applied for and obtained the following grants for use in 2023/2024: Sea Tow Life Jacket Loaner Grant (equipement, non monetary), HUD Congressional Appropriation to improve North T-Pier ( $1.5M), MBCFO Grant to repair commercial fishing docks ($100k) and fund the Washington DC trip ($8k), DBW Grant for Flare Disposal ($50k), DBW Grant for Oil/Fuel Containment Equipement ($40k), (2) SAVE Grants for vessel disposal and salvage ($15K) ($38k). In addition to these grants, the Harbor Dept was appropriated $14.5 M to dredge the Harbor inlet and back channel. The Fire Dept was recently awarded $48k for extrication tools from the Office of Traffic Safety. Two grant applications pending withFEMA -- one grant is for mobile radios and the second is a SAFER grant for 3 Firefighter positions. The Department also received the Diablo Canyon Nuclear Preparedness grantfor three handheld radios and a laptop compter for $30,827.Fire- tentatively awarded a grant from the California Office of traffic Safety for a second set of battery powered hydraulic extrication tools. Grant award up to $45,145 with no cost share.

Utilzing grants that have been awarded; continued working with Townsend as grant resources; waterfront master plan award; Fire - two grant applicaitons pending; Harbor / City Manager expect SLO County wind funding RFP in December 2023; City Manager connecting w/ state and federal lobbyists re: funding for infrastructure, community facility improvements, harbor dredging.

Goal Statements: (1) Pursue grant writing opportunities; (2) Evaluate opportunities for City-owned properties; (3) Streamline permit process for residential and commercial development. 8/22/2024 Page 227 of 230 3 of 6
4) Review of City-owned properties, strategy to optimize use or revenues. Explore use of commercial realtor to manage commercial rental property City Manager, Comm Dev, Harbor, Admin Svcs Comm Dev City is exploring opportunities with other governmental agencies (CS discussion).The Harbor Department has had negotiations and/or working on negotiations with multiple Master Lease Holders to improve annual revenue. These meetings and negotiations include: Bayfront Marina, Three Stacks and a Rock, Giovanni's, TLC enterprises, Morro Bay Paddle Sports, Associated Pacific, State Parks Marina, Libertine, Windows on the Water, Kickers, Morro Bay Fish Company, Dockside Restaurant, Van Buerden Investments, Cal Poly and MBCFO Storage. Community Development is negotiating a purchase and sale agreement for 781 Market Street property for development of a mixed use hotel project. Staff is also looking at alternative uses for the Teen Center property located on Atascadero Road. staff also met with commercial realtors and concluded that mutiple firms would be needed to perform current tasks. Harbor Dept. personnel changes. City also purchased software to help finance dept. conduct real property monitoring.

Ongoing. Real property discussions as needed. A few important sites: 781 Market St., 231 Atascadero, 1130 Napa, 525 Harbor, 160 Atascadero, etc. 5) Streamline permit processing for residential (including ADUs) and commercial development (also supports Housing goal) Comm Dev Comm Dev CDD has implemented an online portal that allows applicants to submit application electronically. Plans can also be checked electronically removing the need for paper plans. Objective Design Standards were also adopted in November 2023. The final update to the new Zoning Code significantly reduces the number of projects that are required to go to PC and Council (approved by Coastal in March) Update: the Coastal Commission approved the City's Zoning Code on March 15, 2024. 6) Presentation to Council on Paid Parking Study and proposed Pilot Program; implement, as directed. City Manager, Police Department, Comm Dev, Harbor, City Manager study was presented late 2023. Council direction no paid parking as of now but directed staff looking into paid parking at Rock to address traffic management, emergency response and maintenance needs. Staff to consult with CCC obtain Coastal approval, design process, implement paid parking at Morro Rock; Not yet initiatedUnderwayNearing CompletionComplete
8/22/2024 Page 228 of 230 4 of 6
Goal #3: Housing / Homelessness Response
Item # Action Items Departments Involved Lead Department Status (as of August 2024) Next Steps 1)
Housing Element Program Implementation (Housing by-right Policy and Objective Design Guidelines projects underway - $275K rec'd in grant funding) Comm Dev Comm Dev
The Coastal Commission approved the City's updated Zoning Code on March 15, 2024. This included objective design standards for housing development projects pursuant to State housing laws. completed as of March 15, 2024.
2)
Review possible upzone from low density to medium or height density for the Seashell Estates property located off of Teresa Drive for possible housing project Comm Dev Comm Dev Project was canceled.
3) Explore achievable options at the City level (emergency warming shelters, pallet homes, etc.) City Manager, Fire, Comm Dev, Police City Manager Warming shelters have been determined not suitable in Morro bay. during weather events, county's warming shelters are open to MB residents. Instead, city partner with 805 Street Outreach, the County public library to utilize parking lot and operate a shower program since February 2024. Reviewing recent Supreme Court decision and how it affects MBMC ordinance . ongoing effort can be on new opportunities, such as working with county's Homelessness "home key"program, and new grant for encampment cleaning up. 4) Continue participation in County's Regional Housing & Infrastructure Plan Comm Dev Comm Dev SLOCOG published the County's Regional Housing and Infrastructure Plan in August (SLO COG is lead) waiting to hear from SLOCOG, will update accordingly 5) Continue participation in the County-wide 5-year Strategic Plan to address Homelessness; Homeless Outreach Case Manager City Manager, Comm Dev, Police, Fire City Manager see item 3 ongoing effort can be on new opportunities, such as working with county's Homelessness "home key"program, and new grant for encampment cleaning up. 6) Identify affordable housing incentive program Comm Dev Comm Dev With the work of the DDD ad-hoc committee, a near term recommendation is to utilize the density bonus ordinance, which city has adopted.

The DDD Ad-hoc Subcommittee work will culminate with a public forum to be held in the fall of 2024. 7) Speed up processing of ADU permits to increase availability of affordable housing Comm Dev Comm Dev Stock ADU plans are complete and posted to the City's website: https://ca-morrobay2.civicplus.com/1056/Pre- Approved-ADU-Program The Pre-Designed ADUs are complete. CDD staff is finalizing the public brochure, checklist, and website announcements.

Not yet initiatedUnderwayNearing CompletionComplete
Goal Statements: (1) Identify low-income housing opportunities; (2) Explore achievable options for unhoused residents; (3) Speed up processing of ADU permits 8/22/2024 Page 229 of 230 5 of 6
Goal #4: Community Engagement
Item # Departments Involved Lead Department Status(as of August 2024) Next Steps 1) Leverage partnerships with Chamber, Visit Morro Bay, local service clubs and community organizations, and other event hosts All City Manager new contract w. Chamber of Commerce, CM participate in VMB board meetings and other events enhance partnerships through interactions with council and staff 2) Explore/assess available communication tools All City Clerk renewed contracts with tools, incl. survey money, pocol. the assistant to the CM to coordinate city wide communication needs, including website updates - rec (short-term goal for next cycle) 3) Conduct joint Council/advisory board meetings periodically and consider biannual or annual advisory board report to Council City Manager, Admin Svcs, Comm Dev, Public Works, Harbor, Recreation & All dept Mayor and Council Held council joint meetings with PC, PWEB, CFAC. Joint meetings between boards were also held. complete, with the joint meeting effort will continue as necessary. 4) Develop Historic Preservation Ordinance using draft ordinance prepared by Historical Society as a starting point Comm Dev Comm Dev Work has not yet started on the Historic Preservation Ordinance. Based on DDD's ad-hoc committee discussions, Staff recommends working with the Historical Society on a list of character defining buildings that can be used in CDD's review of discretionary projects to preserve locally important historic architecture. a final Downtown Design District Ad-hoc committee is scheduled for late August, followed up a public meeting. Results will be short-term actions and long term actions, which among other things could include a historic Preservation ordinance. 5)
Continue MBPD Citizens Academy; consider Community Academy and other opportunities for project / community outreach, including study sessions and workshops
All City Manager
Police hosted National Night Out and Coffee with a Cop events. Comm Dev, Fire, Rec and others attended Rotary Club meetings, Chamber of Commerce "Squeaky Wheel" events, "Listening Tour" and "Breakfast on the Bay" events. Fire- Conducted a community outreach presentation at Bayside Care Facility, Hosted Morro Bay Rotary with a presentation on Fire Department operations and updates. a citizens academy is long term goal. Hiring of the Asst to CM would enhance coordinated efforts. 6) Develop and implement outreach and communication plan using different formats to reach broad spectrum of residents All Depts. & council members City Manager, City Clerk Adopted a council policy supporting individual ccm's use of public resources for outreach events; Fire: Continued training on countywide evacuation planning processes and technology. Includes digital services for public notification. City Mgr., CDD, PW D and Chiefs met with residents and businesses, interest groups. Ongoing web content updates by all departments. Resumed the monthly CM updates newsletter.

Hire the Assistant to the CM to coordinate website update, design and publish a variety of information flyers, coordinate cross-departmental activities, draft communication plan, manage and streamline communication actions. 7) Ad hoc Committee review of Planning Process Comm Dev Comm Dev The Coastal Commission approved the City's updated Zoning Code on March 15, 2024. The zoning code update significantly streamlined the permit process for many planning case types by allowing for ministerial approval.

Accomplished in light of zoning code adoption. Recommending implementation and possible review in future if necessary.

Not yet initiatedUnderwayNearing CompletionComplete
Goal Statements: (1) Build relationships and improve the purpose of advisory bodies to attract and retain members; (2) Hold community workshops and study sessions on upcoming development; (3) Improve City website and social media presence 8/22/2024 Page 230 of 230 6 of 6

Morro Bay City CouncilAugust 27, 2024

Morro Bay City Council
August 27, 2024