Agenda packet, regular meeting — Morro Bay City Council, November 12, 2024

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, November 12, 2024, 5:30 p.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Public Participation
Public participation is offered in the following ways:
• Community members may attend the meeting in person at the Morro Bay Veterans Hall.

Alternatively, members of the public may watch the meeting and speak during general Public Comment or on a specific agenda item by logging into the Zoom webinar using the information provided below. Please use the "raise hand" feature to indicate your desire to provide public comment.
•
Zoom webinar link:
https://us02web.zoom.us/j/82722747698?pwd=aWZpTzcwTHlRTk9xaTlmWVNWRWFU QT09
•
• Password: 135692
Or Telephone Attendee: 1 (408) 638-0968 or 1 (669) 900-6833 or 1 (346) 248-7799; Webinar ID: 827 2274 7698; Password: 135692: Press *9 to raise hand for public comment.
•
• Meetings are also broadcast on cable Channel 20 and streamed on the City's website.

Community Members are encouraged to submit agenda correspondence via email to the City Council at [email protected] prior to the meeting. Agenda correspondence received by 10:00 a.m. on the meeting day will be posted on the City website. •
Pages

1. ESTABLISH QUORUM AND CALL TO ORDER

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report

4.b Mayor and Councilmembers' Reports, Announcements and Presentations

4.c City Manager Reports, Announcements and Presentations

4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities

1. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA

2. Morro Bay Power Plant (Vistra)

3. Offshore Wind Energy

4. Downtown Design District

5. RECOGNITION AND PRESENTATIONS

5.a Morro Bay Police Explorer Post 43 Recognition

6. PUBLIC COMMENT
Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council at this time.

Public comment is an opportunity for members of the public to provide input to the governing body. To increase the effectiveness of the Public Comment Period, the City respectfully requests the following guidelines and expectations be followed:
•
Those desiring to speak are asked to complete a speaker slip, which are located at the entrance, and submit it to the City Clerk. However, speaker slips are not required to provide public comment. •
When recognized by the Mayor, please come forward to the podium to speak. Though not required, it is helpful if you state your name, city of residence and whether you represent a business or group. Unless otherwise established by the Mayor, comments are to be limited to three minutes.
•
All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
•
The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
•
Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
•
Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting.
•
Your participation in City Council meetings is welcome and your courtesy will be appreciated.
•
The Council in turn agrees to abide by its best practices of civility and civil discourse according to Resolution No. 07-19.
•

7. CONSENT AGENDA

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Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.

Recommended Action
Approve Items 7.a through 7.d. as submitted.

7.a Approval of Minutes
(City Clerk)
Recommended Action
Approve as submitted.

1. October 22, 2024 - Regular Council Meeting 6

7.b Approval of Fiscal Year 2023-24 Year-End Budget Amendments 11 (Administrative Services Department)
Recommended Action
Receive the Fiscal Year (FY) 2023-24 Year-End Budget Review contained herein and adopt Resolution No. 70-24 approving FY 2023-24 Year-End Budget Adjustments.

7.c Equipment donation from the Friends of the Morro Bay Fire Department 24 (Fire Department)
Recommended Action
Accept the donated equipment from the Friends of the Morro Bay Fire Department and authorize the City Manager to execute the Donation Agreement.

7.d Monetary donation from Morro Bay Beautiful 29
(Public Works Department)
Recommended Action
Accept the monetary donation from Morro Bay Beautiful and authorize the City Manager to execute the Donation Agreement.

8. PUBLIC HEARING ITEMS

8.a Review and Adopt Draft Funding Recommendations for the 2025 Community Development Block Grant (CDBG) Program
33 (Community Development Department)
Recommended Action
Conduct a public hearing to review and adopt Resolution No. 71-24 approving draft funding recommendations for the 2025 Community Development Block Grant (CDBG) funds and forward recommendations to the San Luis Obispo (SLO) County Board of Supervisors for inclusion with the other draft funding requests from the Urban County Consortium.

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The funding recommendation is for the two applications received: from 5 Cities Homeless Coalition (5CHC) and City of Morro Bay Public Works Department for a total estimated funding allocation of $58,914.

Additionally, staff recommends the City Council authorize the City Manager to make pro rata adjustments to the allocation based on the final funding amount from SLO County based on the approval of the Federal budget and HUD’s final grant amount to the County.

9. BUSINESS ITEMS

9.a Discussion and Direction regarding Agreement for City Attorney Services
70 (City Manager)
Recommended Action
City Council review the following options and provide direction to staff for city attorney services:

Keep current agreement with Aleshire & Wynder LLP (A&W) for city attorney services and request a new city attorney and assistant city attorney from A&W to start November 14, 2024; or

1. Approve agreement with Burke, Williams and Sorensen for city attorney services and appoint current City Attorney Chris F.

Neumeyer as City Attorney; terminate agreement with Aleshire & Wynder for city attorney services with the exception of closure of ongoing items to be specified by City; or

2. 3. Provide alternate direction.

9.b Discussion on Potential Battery Energy Storage Systems (BESS) Urgency Ordinance
119
(Community Development Department)
Recommended Action
Receive and file a staff report on a potential Battery Energy Storage Systems (BESS) project urgency ordinance and provide staff direction, as necessary.

9.c General Plan Annual Progress Report for Reporting Year 2023 124 (Community Development Department)
Recommended Action
Review and accept the General Plan Annual Progress Report.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The next Regular Meeting will be held on December 10, 2024.

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This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall, 595 Harbor Street, Morro Bay, CA 93442 for any revisions or call the Clerk's office at (805) 772-6205 for further information.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection upon request by calling the City Clerk's office at (805) 772-6205.

In compliance with the Americans Disability Act, if you need special assistance to participate in a City meeting, please contact the Clerk's office 24 hours prior to the meeting to insure reasonable arrangements can be made to provide accessibility to the meeting.

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1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
October 22, 2024, 5:30 p.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Zara Landrum
Council Member Laurel Barton
Council Member Jennifer Ford
Members Absent: Council Member Cyndee Edwards
Staff Present: City Attorney Chris Neumeyer
Acting City Manager/Public Works Director Greg Kwolek
City Clerk Dana Swanson
Finance Director Emily Conrad
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:31 p.m. with all but Council Member Edwards present.

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report
Mayor Wixom announced no closed session meeting was held.

4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/GrOeH0BTJ0Y?si=fF3YO6TPrxouLBYg&t=107

4.c City Manager Reports, Announcements and Presentations https://youtu.be/GrOeH0BTJ0Y?si=MWu73aAtXEkhxOhz&t=628

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2 4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/GrOeH0BTJ0Y?si=MQKz8sx_SASTTTFx&t=826
a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA
b. Morro Bay Power Plant (Vistra)
c. Offshore Wind Energy
d. Downtown Design District

5. RECOGNITION AND PRESENTATIONS
https://youtu.be/GrOeH0BTJ0Y?si=V9GTkfdjF8fNBg1k&t=1772

5.a Morro Bay Chamber of Commerce Quarterly Update
Presented by Dina Lundquist, CEO.

5.b National Apprenticeship Week Proclamation
Presented to Dawn Boulanger, Workforce Development Board Director, and Mark Simonin, IBEW Local 639.

6. PUBLIC COMMENT
https://youtu.be/GrOeH0BTJ0Y?si=0cScbv6jVuelomCQ&t=2327  Linda Winters, Morro Bay, expressed her appreciation for waterfront businesses that have improved their properties and a desire to see continued infrastructure improvements.
 Garry Johnson, Morro Bay, provided a summation of what he had learned about lithium ion batteries and urged residents to vote yes on Measure A-24.  David Yohe, Morro Bay, offered comments and shared his appreciation for the city.
 Jane Von Koehe, Morro Bay, requested the tennis courts at Monte Young Park be resurfaced.
 Steve Paige, Morro Bay, commented on the proposed BESS project.  An unnamed person offered comments.

End of public comment.

7. CONSENT AGENDA
https://youtu.be/GrOeH0BTJ0Y?si=FyD8xfFh8CsgRW1h&t=3517

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3 Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.

Mayor Wixom opened public comment for items on the Consent Agenda.  Betty Winholtz, Morro Bay, spoke regarding Item 7.d., expressing her desire to keep transit services in-house or consider issuing an RFP.

End of public comment.

At the Mayor's request, staff responded to questions raised during public comment.

Motion by Council Member Ford
Seconded by Council Member Landrum
Approve Items 7.a. through 7.e. as submitted.

Ayes (4): Mayor Wixom, Council Member Landrum, Council Member Barton, and Council Member Ford
Absent (1): Council Member Edwards
CARRIED (4 to 0)

7.a Approval of Minutes
Approve as submitted.
a. September 24, 2024 - Regular Council Meeting
b. October 8, 2024 - Regular Council Meeting

7.b Approval of Proclamations
a. Proclamation recognizing National Apprenticeship Week as November 17-23, 2024

7.c Approval of Amendment No. 2, extending the License Agreement with PG&E for use of Morro Bay Community Center Parking Lot for Public Safety Power Shutoff events through March 28, 2027 Authorize the City Manager and Fire Chief to amend the License Agreement with Pacific Gas and Electric (PG&E) for the use of the Morro Bay Community Center parking lot to establish an Outdoor Community Resource Center (CRC) in the event of a Public Safety Power Shut-off (PSPS) events through March 28, 2027.

7.d Adoption of Resolution No. 68-24 Approving Amendment No. 6 to the Morro Bay Transit and Trolley Operations and Management Agreement with MV Transportation, Inc.

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4 Adopt Resolution No. 68-24 approving Amendment No. 6 to the Morro Bay Transit and Trolley Operations and Management Agreement with MV Transportation, Inc., (MV).

7.e Fourth Quarter Investment Report (Period Ending June 30, 2024) for Fiscal Year (FY) 2023-24
Receive the attached Fourth Quarter Investment Report (period ending June 30, 2024) for FY 2023-24.

8. PUBLIC HEARING ITEMS
None

9. BUSINESS ITEMS

9.a Consideration of Amending the Advisory Board Handbook & By-Laws to reduce the Public Works Advisory Board and Harbor Advisory Board Membership to Five Members
https://youtu.be/GrOeH0BTJ0Y?si=lqIKWHWhEl-qjn-V&t=3708 Mayor Wixom invited Clerk Swanson to briefly present the item and respond to Council inquiries.

Mayor Wixom opened public comment for Item 9.a.
https://youtu.be/GrOeH0BTJ0Y?si=zDLOQnklBN0tLMkj&t=4473  Cal Myers, Morro Bay resident and Harbor Advisory Board Chair, was indifferent as to the proposed change in membership and questioned whether recruitment was the bigger concern.
 Betty Winholtz, Morro Bay, supported the item and suggested returning to a more creative ground up process would encourage advisory body participation.
 Judy Setting, Morro Bay, supported reducing the committees to five members and shared her appreciation for staff.

End of public comment.

Motion by Mayor Wixom
Seconded by Council Member Ford
Adoption of Resolution No. 69-24 amending the Advisory Board By-Laws regarding Appointment and Qualifications of Members for the Harbor Advisory Board and Public Works Advisory Board.

Ayes (4): Mayor Wixom, Council Member Landrum, Council Member Barton, and Council Member Ford
Absent (1): Council Member Edwards

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5 CARRIED (4 to 0)

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
None.

11. ADJOURNMENT
The meeting adjourned at 6:58 p.m.
/s/ Dana Swanson, City Clerk

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Prepared By: ___EC, MG___ Dept Review: __EC____
Acting City Manager Review: ___DM_____ City Attorney Review: _LNL_ Staff Report
TO: Honorable Mayor and City Council DATE: October 21, 2024 FROM: Emily Conrad, Finance Director
Melissa Green, Administrative Programs Manager
SUBJECT: Approval of Fiscal Year 2023-24 Year-End Budget Amendments

RECOMMENDED ACTION
Receive the Fiscal Year (FY) 2023-24 Year-End Budget Review contained herein and adopt Resolution No. 70-24 approving FY 2023-24 Year-End Budget Adjustments.

DISCUSSION/FISCAL IMPACT
Preliminary Year-End Position
While year-end close and audit preparation are currently underway and year-end numbers are not yet final, preliminary numbers indicate a positive end to FY 2023-24 (July 1, 2023-June 30, 2024) with citywide revenues exceeding expenditures. The large variance in FY 2023-24 budgeted v. actual expenditures is due to unspent capital project funding. The FY 2023-24 over-budget revenue source is primarily interest earnings, which exceeded budget estimates by more than 300%. Over the course of the year, staff replaced matured instruments and invested an additional $1.2 million in certificates of deposits and U.S. Treasury Bills, Notes, and Bonds which contributed to increased overall earnings. A discussion of the City’s investment earnings for FY 2023-24 can be found in the Fourth Quarter Investment Report presented to Council at the October 22nd regular meeting.

AGENDA NO: 7.b
MEETING DATE: November 12, 2024
Figure 1 – Citywide Budgeted and Historical Revenues v. Expenditures

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Governmental Fund Trends
The City's governmental funds are comprised of the General Fund Group, Internal Service Funds, and Special Revenue Funds1. The City’s primary revenue sources, sales & use tax and transient occupancy tax (TOT), make up over one-third of the City’s governmental fund revenues, a larger share than the more stable property tax revenue source.

Sales & use tax and TOT recovered to and exceeded pre-pandemic levels in FY 2021-22, experiencing rapid growth during the pandemic recovery period. In recent years, this growth has normalized with FY 2023-24 seeing lower receipts than the prior year.

1. For a more information regarding funds included in these groups, please refer to the Fund Structure & Descriptions section of the FY 2023-24 Operating & Capital Budget (page 24).

Figure 2 - Governmental Funds Budgeted and Historical Revenues/Expenditures Figure 3 - Sales & Use Tax (left) and TOT (right), Governmental Funds, 2018-2025

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Meanwhile, expenditures have kept pace with post-pandemic revenue recovery, trending upward from FY 2021-22 and generally leveling off in FY 2023-24. Expenditures during this same period were also boosted by the passage of Measure E in 2020, increasing the City’s sales & use tax from 0.5% to 1.5%.

As was highlighted in the FY 2024-25 budget development process, the contrast of a downward trend in revenue and an upward trend in expenditures is concerning. While staff has made every effort to keep expenditures flat in FY 2024-25, persistent inflation continues to drive up the cost of goods and services. Staff will continue to closely monitor the City’s financial outlook.

Enterprise Fund Trends
The City’s enterprise funds include Transit, Water, Sewer, and Harbor. Enterprise funds are self-sustaining with user fees (i.e., water and sewer rates) and charges (i.e., harbor leases) being the primary revenue source. Recurring revenue sources in the Water and Sewer funds were stable in FY 2023-24, while Harbor revenues increased slightly in response to additional rent from sales (“percent rent”) and new fees, in addition to high interest earnings. The Sewer Fund also recognized $5 million of revenue from the State Revolving Fund program for the grant component of the Water Reclamation Facility project.

Overall, enterprise fund revenues came in above budget in FY 2023-24 while expenditures came in below budget. The red arrow on Figure 5 has been added to illustrate the stable trendline of recurring revenues and expenditure after accounting for the impacts of the Water Reclamation Facility project during the FY 2021-2023 period.

Figure 4 - Budgeted Expenditures, Governmental Funds, 2018-2025

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Summary
With the approval of the budget amendments recommended herein, the City will have ended the fiscal year as follows:

Fund # Fund Name
% of Revenue
Budget Received
% of Expenditure
Budget Spent
001 General Fund 104 97
003 Sales & Use Tax Measure Q & E 99 94
311 Water Operating Fund 109 82
321 Sewer Operating Fund* 167 94
331 Harbor Operating Fund 112 100
*The Sewer Operating Fund recognized the one-time $5 million State Revolving Fund program grant component of the Water Reclamation Facility project. Recurring revenues were 101% of budget.

Staff will continue closely monitoring the City’s fiscal situation and update City Council. A more comprehensive view of the City’s finances will be provided to City Council and the community with the Annual Comprehensive Financial Report (ACFR) in the coming months.

Year-End Budget Amendments
A few budget variances have been identified as staff prepares year-end entries to close out the FY 2023-24 books. Staff recommends that the City Council adopt Resolution No. 70-24 authorizing staff to proceed with FY 2023-24 year-end budget adjustments. With the approval of staff’s recommendation, the year-end close-out process can continue in preparation for the auditor’s final fieldwork and audit completion. The proposed year-end budget adjustments are generally minor, truing-up revenues and expenditures to actual expenses, and are summarized below.  Transit Fund (301) – Recognize programmed use of deferred revenue to fund the Replacement Trolley capital project in Fund 920.
 North Point Assessment District Fund (565) – Increase expenditure budget to reflect actual expenditures in excess of assessment revenue collected.  Cloisters Assessment District Fund (570) – Increase expenditure budget to reflect actual expenditures in excess of assessment revenue collected.

Figure 5 - Budgeted and Historical Revenues V. Expenditures, Enterprise Funds, 2018-2025

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 Triangle Lot Boat Storage Yard (925) – Increase expenditure budget to reflect actual labor costs which exceeded budgetary estimates.

Capital Improvement Budget Carry Forward
At the time of budget adoption each year, Council considers the approval of the carry forward of unexpended budget for ongoing multi-year capital projects. Consistent with that approval, staff carried forward $32.9 million in unexpended FY 2023-24 capital improvement budget into FY 2024- 25 for expenditure. The breakdown of that total is as follows:

Fund
Project
Number Description
Carry Forward
Amount ($)
915 – Capital Projects 8028 City Park Play Equipment 250,000 915 – Capital Projects 8032 Active Transportation Plan/Corridor Studies 80,000 915 – Capital Projects 8033 Storm/Flood Repair-Facilities/Equipment 295,250 915 – Capital Projects 8034 Storm/Flood Repair-Pavement 741,334 915 – Capital Projects 8045 Local Roadway Safety Plan 202,414 915 – Capital Projects 8141 Waterways & Storm Systems Management Plan 250,000 915 – Capital Projects 8206 Bonita Fire Station Remodel 38,467 915 – Capital Projects 8229 Highway 1/Highway 41/Main Intersection 2,014,792 915 – Capital Projects 8240 Citywide Capital & Facilities Plan 200,000 915 – Capital Projects 8424 Coleman Park Project 610,300 915 – Capital Projects 8500 ADA Accessibility Upgrades 670,500 915 – Capital Projects 9508 Veterans Building Improvements 335,462 915 – Capital Projects 9614 Pavement Management Program 3,167,544 915 – Capital Projects 9641 Annual Storm Drain Replacements 79,094 915 – Capital Projects 9827 Sidewalk Impvmts & Street Tree Replacement 150,000 915 – Capital Projects 9906 Trash Enclosures 60,000
915 – Capital Projects 9942 New EV Charging Station 68,122 915 – Capital Projects 9950 Sequoia Ct Emergency Storm Drain Repair 497,524 920 – Transit CIP 8481 Transit Comprehensive Operational Analysis 60,000 920 – Transit CIP 9917 MBT-Replacement Vehicle-Bus 130,000 920 – Transit CIP 9924 Automated Fare Coll System 74,000 921 – Water CIP 8033 Storm/Flood Repair - Facilities and Equipment 250,000 922 – Water CIP 8036 Morro Basin Wellfield Rehab 500,000 923 – Water CIP 9639 OneWater Plan (Water) 125,000
924 – Water CIP 9905 Water Capital Vehicle Replacement 303,750 921 – Water CIP 9927 Reskin Desal Plant Building 200,000 921 – Water CIP 9932 OneWater Nutmeg Pressure Zone 1,341,406 921 – Water CIP 9944 Reskin & Coat Six Storage Tanks 428,122 921 – Water CIP 9945 RO Building Tank & Piping 300,000
921 – Water CIP 9946 RO Membrane Replacement 80,000

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921 – Water CIP 9951 Corp Yard R/O Building Roof Repairs 200,000 921 – Water CIP 9953 Brackish Water RO Building Improvements 372,995 922 – Sewer CIP 8033 Storm/Flood Repair - Facilities and Equipment 250,000 922 – Sewer CIP 8227 LS 1 Force Main Replacement 365,943 922 – Sewer CIP 8249 Beachcomber Backyard Sewer Impvmts/Design 95,660 922 – Sewer CIP 8312 WWTP Relocation & Treatment Alternatives 9,890,240 922 – Sewer CIP 8501 WWTP Decommissioning 280,331
922 – Sewer CIP 8550 Outfall Inspection, Assessment, Cleaning 600,000 922 – Sewer CIP 8560 Manhole Rehabilitation Project 157,147 922 – Sewer CIP 9639 OneWater Plan (Sewer) 125,000
922 – Sewer CIP 9919 Sewer Capital Vehicle Replacement 243,032 922 – Sewer CIP 9928 OneWater WW Collection Main/Atascadero 4,296,638 922 – Sewer CIP 9929 OneWater WW Collection LS1/Beachcomber 1,877,148 923 – Harbor CIP 8140 Boat Launch Ramp & Float Replacement Plan 65,475 923 – Harbor CIP 8240 Citywide Capital & Facilities Plan 143,113 923 – Harbor CIP 9930 North T Pier Renovations 5,534
923 – Harbor CIP 9941 Security Improvements - Harbor Building 40,000 923 – Harbor CIP 9960 Storm Recovery - Dock Repairs 412,670 Total Carry Forward into FY 2024-2025 32,924,007

CONCLUSION
Staff recommends that the City Council receive the information in the year-end budget review and adopt Resolution No. 70-24 approving Fiscal Year 2023-24 Year-End Budget adjustments, allowing staff to continue preparing for the annual year-end audit and closing FY 2023-24 financial records.

ATTACHMENTS

1. Updated Major Fund Forecasts (FY 2024 Budget v. Estimated v. Actual)

2. Resolution No. 70-24 Approving Fiscal Year 2023-24 Year-End Budget Adjustments

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FY 2024
Budget
FY 2024
Estimated
FY 2024
Actual
Beginning Fund Balance 7,581,000 9,639,131 9,639,131
Revenue
Property Tax 5,232,900 5,415,366 5,572,306
Sales Tax 2,690,000 2,724,544 2,777,093
Transient Occupancy Tax 4,400,000 4,395,032 4,473,923
Other Revenue 5,248,054 5,653,737 6,117,160
Transfers In 2,023,602 2,071,552 2,060,218
TOTAL REVENUE 19,594,556 20,260,231 21,000,700
Expense
Personnel 12,195,007 11,878,446 11,563,409
Operational costs 9,838,684 9,383,426 9,382,977
Ongoing costs for long-term liabilities (PERS) 2,356,323 2,495,020 2,180,432 Other Operations & Maintenance 5,094,262 4,990,765 5,704,566 Transfers Out (Ongoing) 725,851 725,851 779,450
Debt Service Payments 35,190 35,190 35,189
TOTAL EXPENSE 18,050,310 17,630,252 18,082,614
Net Surplus (Shortfall)-Operating 1,544,246 2,629,979 2,918,086 Capital 1,106,865 1,106,865 1,106,865
Annual Pavement Management Program - - -
Storm and Flooding Damages -
Facilities and Equipment 300,000 300,000 300,000
Veteran's Hall Building Improvements
185,027 185,027 185,027
Storm and Flooding Damages -
Pavement and Pavement Repairs 400,000 400,000 400,000
Lila Keiser Parking Lot Rehabilitation and ADA Upgrades 80,000 80,000 80,000
Annual Storm Drain Replacement and Major Maintenance
Project - - -
Waterways and Storm Systems Management Plan 141,838 141,838 141,838 Net Surplus (Shortfall)-including Capital 437,381 1,523,114 1,811,221 Contribution to 115 Trust * 887,000 1,098,190 887,000
Transfers Out (One-Time)
General Fund Emergency Reserve Fund (GFER) 3,292,000 3,292,000 3,292,000 Vehicle Replacement Fund 107,000 107,000 107,000
Compensable Leave Fund 21,500 21,500 21,500
Ending Total Fund Balance 3,710,881 6,643,554 7,142,852 Less Non-Spendable Fund Balance 3,163,000 3,163,000 3,163,000 Ending Available Fund Balance 547,881 3,480,554 3,979,852 Measure E Fund Operating Expenses
(excluding transfers) 3,448,713 3,110,335 3,083,373
General Fund Emergency Reserve Fund
(GFER) Balance 7,160,082 7,160,082 7,160,082
Total Fund Balance as % of Total Operating Expenses
(General Fund + GFER) /
(General Fund + Q&E Operating) 35.9% 51.3% 52.6%
Minimum Reserve Levels * MET MET MET
General Fund Emergency Reserve Policy: 33% operating
expenses. Includes Measure E fund operating expenses. 7,094,678 6,844,394 6,984,776 AVAILABLE FUND BALANCE (EXCESS OF MINIMUM RESERVES) * 613,285 3,796,243 4,155,158 GENERAL FUND (001)
FY 2024 Actual figures are unaudited.

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FY 2024
Budget
FY 2024
Estimated
FY 2024
Actual
FY 2025
Budget
Starting Fund Balance 1,251,233 1,325,072 1,325,072 323,655 Revenue
Tax Revenue 4,550,000 4,365,918 4,509,073 4,313,735
Other Revenue - 10,000 - -
Transfers In - - - -
TOTAL REVENUE 4,550,000 4,375,918 4,509,073 4,313,735
Expense
Personnel 2,454,606 2,177,086 2,211,885 2,611,695
Operational Costs 2,036,666 1,801,706 1,829,746 2,143,570 Ongoing costs for long-term liabilities (PERS) 417,940 375,381 382,139 468,126 Other Operations & Maintenance 901,872 841,014 707,254 660,093 Transfers Out (operating) 92,234 92,234 164,234 -
Debt Service Payments - - - -
TOTAL EXPENSE 3,448,712 3,110,335 3,083,373 3,271,789
Net Surplus (Shortfall)-Operating 1,101,288 1,265,583 1,425,700 1,041,946 Capital 2,267,000 2,267,000 2,267,000 430,000
Morro Bay Bridge Inspection & Assessment
- - 80,000
Active Transportation Plan / Active Corridor
Studies 67,000 67,000 67,000 -
Local Road Safety Plan (LRSP) Implementation
and Safety Improvements 150,000 150,000 150,000 -
Trash and Recycling Can Replacements 60,000 60,000 60,000 - Sidewalk Improvements and Street Tree
Replacements Project 150,000 150,000 150,000 -
Annual Pavement Management Program 1,840,000 1,840,000 1,840,000 350,000 Net Surplus (Shortfall) including Capital (1,165,712) (1,001,417) (841,300) 611,946 ENDING FUND BALANCE 85,521 323,655 483,772 935,601
MEASURE E FUND (003)
FY 2024 Actual figures are unaudited.

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FY 2024 FY 2024 FY 2024
Budget Estimated Actual
Starting Fund Balance (Working Capital) 11,807,246 11,807,246 11,807,246 Revenue
Rate Payer Revenue 7,604,000 7,195,632 7,398,978
Other Revenue 172,837 74,550 1,016,479
Transfers In 0 0 24,086
TOTAL REVENUE 7,776,837 7,270,182 8,439,544
Expense
Personnel 1,185,046 1,075,725 1,174,656
Operational Costs 973,607 873,358 966,684
Ongoing costs for long-term liabilities (PERS) 211,439 202,367 207,971 Other Operations & Maintenance 3,659,662 2,568,106 3,247,670 Transfers Out (Ongoing) 461,211 461,211 461,211
Debt Service Payments 0 0 0
TOTAL EXPENSE 5,305,919 4,105,042 6,058,192
Net Surplus (Shortfall)-Operating 2,470,919 3,165,140 2,381,352 Capital 3,977,470 3,977,470 2,726,240
Morro Basin Wellfield Rehabilitation 500,000 500,000 500,000 Storm and Flooding Damages - Facilities and Equipment 250,000 250,000 250,000 Brackish Water Reverse Osmosis Building Improvements 400,000 400,000 400,000 Capital Vehicles and Equipment Replacement - Water 121,000 121,000 121,000 Replacement Vehicle - Utility Truck - Water 65,000 65,000 65,000 Nutmeg Tank and related Pressure Zone Improvements 497,489 497,489 497,489 OneWater Plan Update 95,000 95,000 95,000
WRF - Water Reclamation Facility Project 2,048,981 2,048,981 797,751 Net Surplus (Shortfall) including Capital (1,506,552) (812,330) (344,888) Contribution to 115 Trust 70,000 70,000 70,000
Ending Fund Balance Before Reserves 10,230,695 10,924,916 11,392,358 Fund Balance % of Total Operating Expenses 414% 345% 478% Minimum Reserve Levels MET MET MET
Debt Coverage Ratio of 1.2 or greater N/A N/A N/A
Operating: 25% Annual Operating Expenses (PY Budget) 1,295,740 1,326,480 1,326,480 Rate Stabilization: 5% of prior year's rates 361,695 380,200 380,200 Vehicle Replacement: 20% of original value of Water fleet 50,885 50,886 50,886 1,708,320 1,757,566 1,757,566
Unreserved/Available Fund Balance 8,522,375 9,167,351 9,634,792 WATER OPERATING FUND (311)
FY 2024 Actual figures are unaudited.

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FY 2024 FY 2024 FY 2024
SEWER OPERATING FUND (321) Budget Estimated Actual
Starting Fund Balance (Working Capital) 23,832,493 23,832,493 23,832,493 Revenue
Rate Payer Revenue 9,460,000 8,614,799 9,518,584
Other Revenue 293,604 681,178 6,758,961
Transfers In 0 0 30,476
TOTAL REVENUE 9,753,604 9,295,978 16,308,020
Expense (Operating)
Personnel 1,746,554 1,496,188 1,525,833
Operational Costs 1,415,146 1,180,645 1,228,194
Ongoing costs for long-term liabilities (PERS) 331,408 315,543 297,639 Other Operations & Maintenance 2,403,232 1,638,478 1,751,370 Transfers Out (Ongoing) 446,833 446,833 446,833
Debt Service Payments 0 0 0
TOTAL EXPENSE 4,596,619 3,581,500 3,724,036
Net Surplus (Shortfall) - Operating 5,156,985 5,714,478 12,583,984 Capital 9,764,468 9,764,468 9,766,854
Storm and Flooding Damages -
Facilities and Equipment 250,000 250,000 250,000
Manhole Rehabilitation Project 250,000 250,000 250,000
Outfall Inspection, Condition Assessment
and Cleaning 600,000 600,000 600,000
150,000 150,000 150,000
Capital Vehicles and Equipment Replacement
- Sewer 107,000 107,000 107,000
Beachcomber Drive Area Backyard
Sewer Improvements - Design 100,000 100,000 100,000
Wastewater Treatment Plant Decomissioning 135,000 135,000 135,000 Main Street and Atascadero
Sewer Main Replacements 3,391,512 3,391,512 3,391,512
WRF - Water Reclamation Facility Project 4,780,956 4,780,956 4,783,342 Net Surplus (Shortfall) including Capital (4,607,483) (4,049,990) 2,817,130 Contribution to 115 Trust 104,000 104,000 104,000
Ending Fund Balance Before Reserves 19,121,010 19,678,503 26,545,623 Fund Balance % of Total Operating Expenses 416% 549% 713% Minimum Reserve Levels MET MET MET
Debt Coverage Ratio of 1.2 or greater N/A N/A N/A
868,677 868,677 828,487
Rate Stabilization: 5% of prior year's rates 473,000 473,000 469,469 99,891 99,891 99,891
1,441,567 1,441,567 1,397,847
Unreserved/Available Fund Balance 17,679,443 18,236,936 25,147,776 Beachcomber Drive Sewer Main Replacement
Operating: 25% PY Operating Expenses
Vehicle Replacement Reserve: 20% of fleet value
FY 2024 Actual figures are unaudited.

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FY 2024 FY 2024 FY 2024
Budget Estimated Actual
Starting Fund Balance (Working Capital) 1,353,849 1,353,849 1,353,849 Revenue
Harbor Leases 1,875,000 2,061,916 2,109,989
Boat Charges 411,610 416,739 483,499
Other Charges for Service 74,200 64,208 63,106
Other Revenue 155,000 675,110 83,800
Transfers In - - 53,599
TOTAL REVENUE 2,515,810 3,217,972 2,793,994
Expense
Personnel 1,266,302 1,295,817 1,324,816
Operational Costs 988,562 1,052,295 1,078,830
Ongoing costs for long-term liabilities (PERS) 277,740 243,522 245,986 Other Operations & Maintenance 664,474 509,476 650,085
Transfers Out (Ongoing) 397,152 400,477 397,152
Debt Service Payments - - -
TOTAL EXPENSE 2,327,928 2,205,770 2,372,054
Net Surplus (Shortfall) - Operating 187,882 1,012,203 421,940 Capital Expenditures 280,000 280,000 280,665
Storm Recovery - Dock Repairs 200,000 200,000 200,000
Harbor Vehicle Replacement 40,000 40,000 40,000
Capital Facilities Planning
Beach Street Slips
Boat Launch Ramp & Float Repair
North T-Pier Repairs 40,000 40,000 40,000
Net Surplus (Shortfall) including Capital (92,118) 732,203 141,275 Contribution to 115 Trust 68,000 68,000 68,000
Ending Fund Balance Before Reserves 1,193,731 2,018,052 1,427,124 Fund Balance - % of Total Operating Expenses 51% 91% 60% Minimum Reserve Levels MET MET MET
15% Annual Operating Expenses
(Prior Yr Adopted Budget) 329,378 349,189 349,189
Unreserved/Available Fund Balance 864,353 1,668,863 1,077,935 HARBOR OPERATING FUND (331)
FY 2024 Actual figures are unaudited.

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RESOLUTION NO. 70-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING FISCAL YEAR 2023-24 YEAR-END BUDGET ADJUSTMENTS

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City staff is preparing year-end accounting entries to close out the City’s Fiscal Year 2023-24 financial records; and
WHEREAS, in preparing year-end accounting entries staff have identified budget adjustments needed to ensure that the City ends the year consistent with Council’s fiscal direction; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,

1. The operating budgets of the City are amended by the additional revenues and expenditures, as shown on the attached Exhibit A, to finalize Fiscal Year 2023-24 accounting records.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12th day of November 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

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Fund Department Account Budget Year-End
Amendment
Amended
Budget
Transit Fund Interfund
Transactions
Transfer to Capital
Improvement Fund
$20,000 $27,021 $47,021
North Point
Assessment
North Point Park Disposal $4,109 $166 $4,275
Cloisters Park
Maintenance
Assessment District
Cloisters Park Contractual Services $250 $1,022 $1,272
Triangle Lot – Boat
Storage Yard
Undistributed/
Non-Departmental
Labor Costs Applied $10,000 $1,700 $11,700
Exhibit A - Fiscal Year 2023-24 Year-End Amendments

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Prepared By: __DM________ Dept Review: ___DM_____
Acting City Manager Review: DM__ City Attorney Review: _LNL_ Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2024 FROM: Daniel McCrain, Fire Chief
SUBJECT: Equipment donation from the Friends of the Morro Bay Fire Department

RECOMMENDED ACTION
Accept the donated equipment from the Friends of the Morro Bay Fire Department and authorize the City Manager to execute the Donation Agreement.

ALTERNATIVES
None, donation offer complies with the City’s Donation Policy as established by Resolution No. 61-

19. FISCAL IMPACT
The value of donated equipment totals $11,263.50. This total is for a Rogue Fitness Monster Rack and associated accessories.

BACKGROUND
The Morro Bay Fire Department received a donated Rogue Fitness Monster Rack workout that was purchased by the Friends of the Morro Bay Fire Department in August 2024. This exercise equipment will be installed in the workout area of the Morro Bay Fire Department for use by Fire Department staff. This equipment was received by the Morro Bay Fire Department on October 30, 2024.

The Friends of the Moro Bay Fire Department Board made a request for a release of liability for the donated equipment. The Friends of the Morro Bay Fire Department is a 501(c)(3) Non-Profit organization whose mission is:

1. To establish and maintain an association of persons interested in public safety;

2. To focus public attention on fire safety, services, facilities and needs;

3. To support and cooperate with the Morro Bay Fire Department to enhance safety, services, and facilities for the community;

4. To stimulate gifts, endowments, and bequests.

In support of this mission, the Friends of the Morro Bay Fire Department has generously donated these valuable pieces of equipment to the Fire Department and the community of Morro Bay.

AGENDA NO: 7.c
MEETING DATE: November 12, 2024

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Providing a release of liability for these donated items will help to ensure the Friends of the Morro Bay Fire Department will be able to continue making donations of valuable and much needed equipment to the Morro Bay Fire Department in the years to come without assuming unnecessary liability which may preclude future donations. This action is also consistent with the City’s Donation Policy established by Resolution 61-19 which requires City Council approval to accept donations exceeding $5,000.

ATTACHMENT(S)

1. Donation Agreement

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DONATION AGREEMENT

BY THE FRIENDS OF THE MORRO BAY FIRE DEPARTMENT

TO THE CITY OF MORRO BAY
THIS AGREEMENT is made and entered into this 12th day of November, 2024, and is effective as of the 12th day of November, 2024 (“Agreement”), by and between the CITY OF MORRO BAY, a municipal corporation of the State of California (hereinafter GRANTEE and “City”), and FRIENDS OF THE MORRO BAY FIRE DEPARTMENT, a California nonprofit corporation, (hereinafter GRANTOR).

WITNESSETH
WHEREAS, GRANTEE provides emergency response for the whole community of Morro Bay; and
WHEREAS, the Rogue Fitness Monster Rack Exercise Equipment is intended to support Firefighter health and wellness; and
WHEREAS, the Fire Department has not had sufficient funds to purchase this exercise equipment; and
WHEREAS, GRANTOR is a not-for-profit community group established to help improve the Fire Services in Morro Bay; and
WHEREAS, GRANTOR desires to assist GRANTEE by purchasing and donating the rogue Fitness Monster Rack.

NOW, THEREFORE, THE PARTIES AGREE, as follows:

1. Subject to the terms of this Agreement, on or before November 12, 2024, GRANTOR agrees to donate to GRANTEE a Rogue Fitness “Monster Rack” exercise equipment for use by the Fire Department and the City, with consideration to GRANTOR that GRANTEE’S use of the exercise equipment furthers GRANTOR’S established goal of improving Firefighter health and wellness in Morro Bay.

2. GRANTOR agrees that the Rogue Fitness Monster Rack donated shall be the sole and separate property of City.

4. Neither GRANTOR nor GRANTEE may assign any rights or obligations created by this Agreement to any other person without the prior written approval of the other party.

5. The terms and conditions of this Agreement can only be amended in writing approved and signed by GRANTOR and GRANTEE.

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Page 2 of 3 ends

6. MISCELLANEOUS PROVISIONS
A. The Caption
The captions of the various sections, paragraphs, and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of the interpretation.

B. No Third Party Beneficiary
This Agreement shall not be construed or deemed to be an Agreement for the benefit of any third party or parties, and no third party shall have any claim or right of action hereunder for any cause whatsoever.

C. Severability Clause
In case any one or more of the provisions contained herein shall, for any reason, be held invalid, illegal, or unenforceable in any respect, it shall not affect the validity of the other provisions which shall remain in full force and effect.

D. No Pledging of GRANTEE'S Credit
Under no circumstances shall GRANTOR have the authority or power to pledge the credit of GRANTEE or incur any obligation in the name of GRANTEE.

E. Venue
This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Luis Obispo, State of California, or any other appropriate court in such county, and GRANTOR covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Luis Obispo, State of California.

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Page 3 of 3 ends

F. Non-liability of GRANTOR Officers and Employees
No officer or employee of GRANTOR shall be personally liable to the GRANTEE, or any successor in interest, in the event of any default or breach by GRANTOR or for any amount which may become due to GRANTOR or to its successor, or for breach of any obligation of the terms of this Agreement.

G. Non-liability of GRANTEE Officers and Employees
No officer or employee of GRANTEE shall be personally liable to GRANTOR, or any successor in interest, in the event of any default or breach by GRANTEE or for any amount which may become due to GRANTOR or to its successor, or for breach of any obligation of the terms of this Agreement H. Interpretation
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first herein above set forth.

City of Morro Bay Friends of the Morro Bay Fire Department __________________________ _________________ _________
Yvonne Kimball, City Manager Mike Pond, President
_____________________________
Elaine Giannini, Secretary
APPROVED AS TO FORM:
__________________________
Chris F. Neumeyer, City Attorney
ATTEST:
__________________________
Dana Swanson, City Clerk

Page 28 of 148 ends

Prepared By: __CM________ Dept Review: ___DH_____
Acting City Manager Review: __DM City Attorney Review: __LNL_ Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2024 FROM: Damaris Hanson, Acting Public Works Director
Carlos Mendoza Maintenance Division Manager
SUBJECT: Monetary donation from Morro Bay Beautiful

RECOMMENDED ACTION
Accept the monetary donation from Morro Bay Beautiful and authorize the City Manager to execute the Donation Agreement.

ALTERNATIVES
Reject donation from Morro Bay Beautiful.

FISCAL IMPACT
The monetary donation from Morro Bay Beautiful amounts to $10,000.

BACKGROUND
Morro Bay Beautiful is no longer an active entity within the community. In order to facilitate the closure of the non-profit organization, Karen Aguilar, President of Morro Bay Beautiful, is proposing a donation of $10,000 to the City. The purpose of this donation is to aid the City in procuring replacement parts for the artistic trash cans. Any remaining funds will be allocated towards the acquisition of replacement trash cans. Morro Bay Beautiful acknowledges that the refurbishment of the artistic trash cans will be contingent upon the City Staff's assessment of the cans' salvageable condition and the availability of replacement parts. It should be noted that this donation does not impose an obligation on the City to procure any specific style of trash can or to engage a new vendor (the cans are serviced by the City’s franchised hauler).

Morro Bay Beautiful is a 501(c)(3) Non-Profit organization whose mission is,

1. To identify, research and promote non-political projects that contribute to and /or preserve the beauty of Morro Bay.

2. To preserve the beauty of Morro Bay by eliminating clutter and trash

This action is also consistent with the City’s Donation Policy established by Resolution 61-19 which requires City Council approval to accept donations exceeding $5,000.

ATTACHMENT(S)

1. Donation Agreement
AGENDA NO: 7.d
MEETING DATE: November 12, 2024

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01181.0024/914492.1

DONATION AGREEMENT

BY MORRO BAY BEAUTIFUL

TO THE CITY OF MORRO BAY
THIS AGREEMENT is made and entered into this 12th day of November, 2024, and is effective as of the 12th day of November, 2024 (“Agreement”), by and between the CITY OF MORRO BAY, a municipal corporation of the State of California (hereinafter GRANTEE and “City”), and MORRO BAY BEAUTIFUL, a California nonprofit corporation, (hereinafter GRANTOR).

WITNESSETH
WHEREAS, GRANTEE provides trash and recycle containers for public use; and WHEREAS, the GRANTEE’s Public Works Department is in the process of acquiring new trash/recycle containers for downtown and Embarcadero; and WHEREAS, GRANTOR is a not-for-profit community group whose mission is to preserve the beauty of Morro Bay by eliminating clutter and trash; and WHEREAS, GRANTOR desires to assist GRANTEE by providing a monetary donation of $10,000.

NOW, THEREFORE, THE PARTIES AGREE, as follows:

1. Subject to the terms of this Agreement, on or before November 12, 2024, GRANTOR agrees to donate to GRANTEE $10,000 for use by the Public Works Department and the City, for the purpose of repairing art trash containers and purchasing new trash and recycle containers.

Repairs to the art containers will be based on GRANTEE’s determination that the containers are still in usable condition and the availability of parts.

2. Neither GRANTOR nor GRANTEE may assign any rights or obligations created by this Agreement to any other person without the prior written approval of the other party.

5. The terms and conditions of this Agreement can only be amended in writing approved and signed by GRANTOR and GRANTEE.

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01181.0024/914492.1 Page 2 of 3
B. No Third Party Beneficiary
This Agreement shall not be construed or deemed to be an Agreement for the benefit of any third party or parties, and no third party shall have any claim or right of action hereunder for any cause whatsoever.

D. No Pledging of GRANTEE'S Credit
Under no circumstances shall GRANTOR have the authority or power to pledge the credit of GRANTEE or incur any obligation in the name of GRANTEE.

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01181.0024/914492.1 Page 3 of 3
F. Non-liability of GRANTOR Officers and Employees
No officer or employee of GRANTOR shall be personally liable to the GRANTEE, or any successor in interest, in the event of any default or breach by GRANTOR or for any amount which may become due to GRANTOR or to its successor, or for breach of any obligation of the terms of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first herein above set forth.

City of Morro Bay Morro Bay Beautiful
__________________________ _________________ _________
Yvonne Kimball, City Manager Karen Aguilar, President
_________________________________
Cindy Sutter, Secretary
APPROVED AS TO FORM:
__________________________
Chris F. Neumeyer, City Attorney
ATTEST:
__________________________
Dana Swanson, City Clerk

Page 32 of 148 ends

Prepared By: EV____ Dept Review: __AS____
Acting City Manager Review: _DM_ City Attorney Review: LNL__________ Staff Report
TO: Honorable Mayor and City Council DATE: November 1, 2024 FROM: Erik Valentine, Assistant Planner
SUBJECT: Review and Adopt Draft Funding Recommendations for the 2025 Community Development Block Grant (CDBG) Program

RECOMMENDED ACTION
Conduct a public hearing to review and adopt Resolution No. 71-24 approving draft funding recommendations for the 2025 Community Development Block Grant (CDBG) funds and forward recommendations to the San Luis Obispo (SLO) County Board of Supervisors for inclusion with the other draft funding requests from the Urban County Consortium. The funding recommendation is for the two applications received: from 5 Cities Homeless Coalition (5CHC) and City of Morro Bay Public Works Department for a total estimated funding allocation of $58,914. Additionally, staff recommends the City Council authorize the City Manager to make pro rata adjustments to the allocation based on the final funding amount from SLO County based on the approval of the Federal budget and HUD’s final grant amount to the County.

ALTERNATIVES
Council could choose to fund 5CHC above the requested amount ($3,000) to a maximum of $8,837 to match the 15 percent maximum federal expenditure for public services activities with a corresponding reduction in the funding to the Public Works Department’s application for the ADA Sidewalk Repair/Replacement Project.

FISCAL IMPACT
While the County performs many of the administrative responsibilities for the CDBG program, the City also experiences a fiscal impact for CDBG grant administration. This includes (and is not limited to) applying to the County for funding, budgeting revenue and expenditures, coordinating with County staff, executing subrecipient agreements, and submitting required reports to the County. The City may use up to $4,123.98 of its estimated 2025 CDBG allocation for grant administration. To receive administration funds, the City is required to submit a separate application, execute a separate agreement, and perform separate reporting. To avoid this additional administrative burden, staff recommends allocating this $4,123.98 to the recommended sidewalk repair project instead of administration. The Community Development Department will absorb the administrative expense of the CDBG program within its existing budget.

SUMMARY
Since 2011, the City of Morro Bay has been a member of the Urban County Consortium, which is a consortium of participating local jurisdictions that includes San Luis Obispo County and the AGENDA NO: 8.a
MEETING DATE: November 12, 2024

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cities of Paso Robles, Atascadero, San Luis Obispo, Pismo Beach, and Arroyo Grande for the purpose of receiving and allocating Federal CDBG funds. The 2025 CDBG award process began earlier this fall with the release of the Notice of Funding Availability on September 3, 2024 (Online Link #1 below). Community needs assessment workshops were held in September and October 2024 to learn more about the program and identify community needs and help establish funding priorities. This included a meeting at the Morro Bay Community Center on September 17, 2024.

Applications were due by October 6, 2024. The City received two applications for this funding cycle (see below for more details).

Total Morro Bay funding is anticipated to be approximately $58,914 for the 2025 program year with an estimated total allocation countywide of $1,668,952. Final funding amounts are subject to change and will be released by the Department of Housing and Urban Development (HUD) in early 2025.

BACKGROUND
The CDBG program is a funding source providing communities with resources to address a wide range of unique community development needs. (Online Link #2 below). The program provides funding for infrastructure, services, economic development, homelessness prevention, and affordable housing development (land acquisition only) benefiting low- and moderate-income individuals.

CDBG funds are available for community development activities, which meet at least one of the three national objectives:

1. A benefit to low- and moderate-income persons;

2. Aid in the prevention or elimination of blight;

3. Address urgent needs that pose a serious and immediate threat to the health or welfare of the community.

In order for a program to qualify under the low- and moderate-income objective, at least 51% of the persons benefiting from the project or program must earn no more than 80% of the area median income. Additionally, at least 70% of the CDBG funds must be spent toward that objective.

The following criteria should also be used to guide the selection of CDBG programs:

1. The proposal is consistent with the national objectives and eligibility criteria of the HUD CDBG program;

2. The proposal is consistent with the Urban County Consolidated Plan;

3. The proposal is consistent with the General Plan and other City codes/ordinances;

4. The proposal will achieve multiple community development objectives;

5. The proposal can be implemented in a timely manner, without significant environmental, policy, procedural, legal, or fiscal obstacles to overcome; and

6. The project is not financially feasible without CDBG funding.

DISCUSSION
The two applications received by the City for the 2025 funding cycle are included by category in the following table along with a description of the application request and staff recommendation.

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Federal Funding Category / Applications
Received
Amount
Requested
Amount
Recommended
Public Services – Limited to 15% of 2025
Allocation (or a maximum of $8,837)

1. Project Name: Homeless Prevention –
Countywide Services
Applicant: 5 Cities Homeless Coalition (5CHC)
$3,000 CDBG
funding request
to Morro Bay
(Total request is
$61,270
combined to all
jurisdictions
countywide)
$3,000
Public Facilities

2. Project Name: ADA Sidewalk
Repair/Replacement Project
Applicant: Public Works Department, City of
Morro Bay
$42,418 $42,418*
Total Funds Requested $45,418
Total Funds Recommended $45,418
(Does not include
Administration
funding totals that
can be allocated
towards the ADA
project)
Estimated Total 2025 Funding Available $58,914
*The sum of the two recommendations does not equal the total anticipated allocated funding. This is because the County receives a portion of the City’s allocation for administration. Per HUD standards, administration costs are limited to 20% of the 2025 allocation. Of this 20%, the County receives 65%, or $7,658.82. City staff recommends that Morro Bay administration funds be put towards the ADA project. 5CHC Project Description: 5CHC seeks to continue its highly successful Homeless Prevention program to help families at-risk of homelessness remain in their home, with an anticipated 165 households receiving assistance. 5CHC’s track record has demonstrated that less than 2% of those served in the prior 24 months have fallen into homelessness after receiving assistance.

The County’s Homeless Services Program Manager, Marge Castle, described the 5CHC program as follows:

They provide homeless prevention services in all jurisdictions within the County. They spend an average of $3,000 per household assisted in direct financial assistance to keep people in their home or to quickly rehouse them if needed. They pool together CDBG and other funding sources to help achieve this goal. They anticipate assisting 165 households in 2025. They request allocations from each city to achieve the goal. There isn’t a requirement that a certain amount of fund be spent in a certain jurisdiction. The more people who can remain housed, the better it is for everyone.

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Public Works Project Description: The City has hundreds of City-owned street trees along roadway frontage throughout the City. Many of the street trees that are mature were planted many years ago and are causing destruction to sidewalks, curb and gutter, asphalt roadway, and other public infrastructure. The damage to City infrastructure is an unfunded liability to the City from a maintenance and safety perspective. In addition, these areas where uplift of sidewalk has occurred cause areas to be out of compliance with the Americans with Disabilities Act (ADA).

This project would be to correct some areas where street trees have caused damage and remove the tree and replace with a more appropriate street tree with an underground growing zone so that the roots do minimal damage to the infrastructure. The project would also include the replacement of sidewalks, curb and gutter, curb ramps, and portions of roadway that have been affected by street trees. In some cases, the project would involve filling sidewalk gaps that affect accessibility. The proposed improvements will include sidewalk deficiencies in the Morro Bay downtown area, including sections of Morro Bay Boulevard, Harbor Street, Main Street, Monterey Avenue, and Napa Avenue.

Federal Regulations and Funding Criteria:

Federal HUD regulations apply limits to each category of funding, as described below. As part of the CDBG process, Council must adopt a draft recommendation for the 2024 grant year that meets the funding criteria while adhering to the category limits. Upon approval, the draft funding recommendations will be forwarded to the County for publishing along with recommendations from all jurisdictions. The public notice starts a 30-day review and comment period during which a second public workshop will be held to allow questions from applicants after which the draft allocations, plus any workshop comments, will be forward to City Council for final approval at a duly noticed public hearing anticipated to be approximately February 2025. After that meeting, the final funding recommendations would then be forwarded to the County Board of Supervisors in order to adopt the 2025 Action Plan consistent with the 2025-2029 Consolidated Plan, which is the five-year strategic planning document that established funding goals for HUD funding.

The following is a brief explanation of the funding categories and applications received within each:

Public Services – Public services activity applications are defined as those activities that include, but are not limited to, employment services, crime prevention, childcare, health services, substance abuse services, fair housing counseling, and recreational services. Federal regulations limit no more than 15% of an allocation to be awarded to Public Services activities. For Morro Bay, the maximum award would be $8,837.

Only one application was received under this category, which was from the 5 Cities Homeless Coalition (5CHC) (Attachment 2). The Rapid Re-housing and Homeless Prevention Program helps clients secure and maintain stable housing, provides case management, and seeks to resolve barriers to obtaining and maintaining housing for residents of SLO County. The goal of the program is to assist participants to secure long-term stable housing that they can afford to retain, and to be in a better position to address other challenges such as employment or substance abuse. In addition, assistance is provided to those in imminent threat of homelessness.

The City’s Cooperation Agreement with the County (executed on September 6, 2023, between the County of San Luis Obispo and the City of Morro Bay) requires any funding of public services activities to be a minimum amount of $8,000 or more based on HUD direction not to award CDBG fund requests that cost more to administer than the award itself. Cities can recommend awards

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of less than $8,000 if the applicant has applied to multiple jurisdictions and the cumulative total of their CDBG award is a minimum of $8,000. 5CHC has applied to all jurisdictions in the County for this funding year for a total of $61,270. Based on the high priority ranking of homelessness prevention in the County Action Plan, it is anticipated that the minimum 15% funding Countywide will be met, and therefore would allow the City to recommend funding 5CHC’s request. The City could also choose to award more than the $3,000 requested, with an eligible award up to $8,837 based on the anticipated total allocation and County and Federal guidelines. Staff is recommending this project for funding because homelessness prevention and services to address homelessness are a high priority item under the County’s Consolidated Plan.

Public Facilities – Public Facilities are defined as activities relating to real property, including the acquisition, construction, rehabilitation, or installation of public improvements. These activities can be carried out by a grantee, sub-recipient, or other nonprofit.

The City’s Public Works Department submitted a public facilities application in the amount of $42,418 that would provide for the repair or replacement of sidewalk infrastructure in the Downtown area that have been damaged or upheaved by growing tree roots. Such repairs and/or replacements would bring sidewalks into compliance with ADA standards and serve all residents and visitors to Morro Bay, especially the elderly or persons with disabilities. The application request stemmed from internal conversations between the Community Development and Public Works Departments based on needs identified at the staff level. Public Works’ application identifies leveraged funds from the Department’s expenditures outlined in the FY24-25 Municipal Budget, under the Street Maintenance line item, if necessary.

Administration – The 20% cap on percentage from this category is estimated at $11,782.80, with $4,123.98 (or 35%) available to Morro Bay for this cycle. Sixty-five percent of this allocation ($7,658.82) is reserved for the County’s grant administration costs, which is required under the Urban County Consortium Cooperation Agreement. The City did not submit an application for Administration funds this program cycle, so that the $4,123.98 could be allocated to the ADA Sidewalk Repair/Replacement Project. This avoids the need for a separate agreement and reporting for administrative fund.

CONCLUSION
The total estimated 2025 allocation for Morro Bay, as released by the County, is $58,914. The 5CHC’s application for Public Services funding is for $3,000. This is less than the required minimum of $8,000, but can be recommended based on an anticipated cumulative award by other jurisdictions in the Urban County Consortium. The Public Works Department’s application is recommended for funding to provide for needed improvements to ADA infrastructure throughout the Downtown area that have been impacted by the growth of tree roots. This application is for $42,418, or the remainder of the City’s final allocation after the County’s administration costs are determined and 5CHC’s application for Public Services funding is considered. This total is likely to change in a minor way when the County announces the final funding amount received from HUD, sometime in early 2025.

Staff is recommending that Council approve the 2025 Draft Funding Recommendations for the two applications received (Attachments 2 and 3).

ATTACHMENTS

1. Resolution No. 71-24

2. 5 Cities Homeless Coalition Application for Public Services Funding

3. City of Morro Bay Public Works Department Application for Public Facilities Funding

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ONLINE LINKS

1. County of San Luis Obispo CDBG Notice of Funding Availability for 2025 https://www.slocounty.ca.gov/getmedia/47c85d3d-6f22-4a78-a844-3c4c6bf2d6b5/2025- action-plan-nofa_final_8-29-24

2. Community Development Block Grant (CDBG) Fact Sheet
About the Community Development Block Grant (CDBG) Program (hudexchange.info)

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RESOLUTION NO. 71-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT
PROJECTS FOR YEAR 2025

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, via a Cooperation Agreement with County of San Luis Obispo (hereafter referred to as “County”), a political subdivision of the State of California, executed by the City of Morro Bay (hereafter referred to as “City”) a California municipal corporation, on September 6, 2023, the City agreed to become a participant for a period of three years with the County and other cities therein as an “Urban County” under the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, under the Cooperation Agreement executed on September 6, 2023, between the County of San Luis Obispo and the City of Morro Bay, the City retains the authority to determine which projects are to be funded with its allotment of CDBG Program funds; and
WHEREAS, the CDBG Program promotes the public health, safety and welfare by providing grant funds to be used by the City and County to improve housing opportunities for low- and moderate- income households, to encourage economic reinvestment, to improve community facilities and public services, and to provide other housing-related facilities, or services; and
WHEREAS, the City expects to receive $58,914 in CDBG funds in 2025; and WHEREAS, in 2024, the County published a “Notice of Funding Availability” for projects to be funded under the 2023 CDBG Programs, which provided proposals were to be submitted by October 6, 2024; and WHEREAS, at a duly noticed public hearing on November 12, 2024, the City Council gave approval for draft funding recommendations to be forwarded to the County Board of Supervisors for 2025 CDBG projects.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California:

1. City will timely submit final funding recommendations for the current CDBG funding cycle to the Board of Supervisors for the County of San Luis Obispo consistent with the programs and allocations listed in Exhibit “A,” attached hereto and incorporated herein by this reference, to be funded with the City’s allocation of CDBG Program funds.

2. City Manager is authorized for the current CDBG funding cycle to make pro rata adjustments to the allocation based on the final funding amount from San Luis Obispo County based on the approval of the federal budget and HUD’s final grant amount to San Luis Obispo County PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting thereof held on the 12
th day of November 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk Page 39 of 148
RESOLUTION NO. 71-24
EXHIBIT “A”

DRAFT FUNDING RECOMMENDATIONS

TO FORWARD TO THE

COUNTY BOARD OF SUPERVISORS
Federal Funding Category / Applications
Received
Amount
Requested
Amount
Recommended
Public Services – Limited to 15% of 2025
Allocation (or a maximum of $8,837)

1. Project Name: Homeless Prevention –
Countywide Services
Applicant: 5 Cities Homeless Coalition
(5CHC)
$3,000 CDBG
funding request
to Morro Bay
(Total request is
$61,270
combined to all
jurisdictions
countywide)
$3,000
Public Facilities

2. Project Name: ADA Sidewalk
Repair/Replacement Project
Applicant: Public Works Department, City of
Morro Bay
$42,418 $42,418
Total Funds Requested $45,418
Total Funds Recommended $45,418
(Does not include
Administration
funding totals that
can be allocated
towards the ADA
project)
Estimated Total 2025 Funding Available $58,914

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Overview
Completed by [email protected] on 10/3/2024 3:55 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
Overview
Please provide the following information.

County of San Luis
Obispo
Public Service Grants
Program
Department of Social Services
Adult and Homeless Services Branch
PO Box 8119
San Luis Obispo, CA 93403-8119
[email protected]
For each Public Services (including Minor Home Repair) funding source, an overview is available that includes program description, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting in the County of San Luis Obispo Notice of Funding Availability, 2025 Action Plan:
 Section II.C for Community Development Block Grant (CDBG) Overview  Section II.D for Emergency Solutions Grant (ESG) Overview  Section II.E for HOME-TBRA Investment Partnerships Program (HOME) Overview  Section II.F for Permanent Local Housing Allocation (PLHA) Overview  Section II.H for General Fund Support (GFS) Overview

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A. Applicant Information
Completed by [email protected] on 10/6/2024 1:16 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
A. Applicant Information
Please provide the following information.

PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
5Cities Homeless Coalition
A.2. Type of Organization
Non-Profit
A.2.b. Please upload the following documentation:
 Attachment A - Proof of Active SAM.gov Registration *Required **No files uploaded
A.3. UEI Number: For more information, visit SAM.GOV
KR8JGGKBKEP9
A.4. Address
100 S 4TH ST GROVER BEACH, CA 93433
A.5. Is the organization faith based?
No
A.6. Date of Incorporation
03/03/2009
A.6.a. Please upload the following documentation:
 Attachment B – Incorporation Documents *Required
**No files uploaded
 Attachment C – Organization Mission Statement *Required **No files uploaded
A.7. Required Acknowledgement of Insurance Requirements. Has your organization read and understood the insurance requirements listed in “Example Exhibit D – General Conditions” in the Library? Yes
A.8. Annual Operating Budget

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$7,360,000.00
A.9. Number of Paid Staff
52 A.10. Number of Volunteers
200

CONTACT INFORMATION
A.11. Contact Person Name

JANNA NICHOLS
A.12. Contact Person Title
Executive Director
A.13. Phone Number
(180) 547-1740
A.14. Email
[email protected]

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B. Applicant Capacity
Completed by [email protected] on 10/6/2024 1:20 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
B. Applicant Capacity
Please provide the following information.

B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources.

Currently 5CHC is contracted through 44 local, federal and state grants to provide nearly $7 million in services. Through multiple grant monitoring activities to review 5CHC program and expenditure compliance for all local, state and federal grants, 5CHC has consistently received high praise for program quality and outcomes; reporting; compliance; and timeliness; and has never received a significant finding in an audit. Through CARES Act CV funds, 5CHC expended more than $5 Million in services and facility development since 2021, including subcontracting with multiple other providers and ensuring their compliance. 5CHC is timely in providing required reports and its billing process, meeting all required expenditure deadlines. 5CHC's outcomes consistently exceed agreed upon program metrics.

B.2. Describe how the organization participates in HMIS, Coordinated Entry, and the San Luis Obispo County Continuum of Care.
5CHC has participated in HMIS since 2014 and has staff dedicated to this fulfill this activity in addition to program staff.

In the past year more than 5 of the Coalition’s staff have worked with the County to assess and invest in a new HMIS system, including the on-going HSOC Data Workgroup. 5CHC Executive Director is a member of the HMIS Project Steering Committee. The agency’s Executive Director is currently an active member of HSOC, the Continuum of Care oversite body. 5CHC staff regularly participate in all standing committees and work groups. 5CHC is an engaged HSOC member, far exceeding the meeting attendance threshold of the HSOC bylaws, for both committee and full HSOC meetings. Historically 5CHC’s Executive Director volunteered to serve as chair of both the Data/Finance and Service Coordination committees, and volunteered on the steering committee for the County's Homeless Services Strategic Plan.

Beginning in 2019 5CHC joined with CAPSLO to participate in Coordinated Entry as a key intake partner. Annually 5CHC has far exceeded the number of CE's completed per contract requirements. 5CHC staff are among the most active members of the HSOC Coordinated Entry Advisory Committee, and the various workgroups addressing Coordinated Entry reform efforts. 5Cities Homeless Coalition has been a regional lead in every Point in Time Count conducted in the county since 2013, helping to both plan for the count as well as ensure effective regional volunteer recruitment and implementation. In each count, 5CHC has dedicated 10 or more staff members to assist in the count. Recently 5Cities Homeless Coalition, working with the CoC, has re-initiated a Transitional-Age Youth Advisory Board. The Youth Board held its inaugural meeting, under 5CHC’s leadership, in September. The group is working to define it’s role, processes for YAB participation and membership, work plan topics and calendar, with the intent of presenting some recommendations to HSOC in the Spring of 2025.

B.3. Briefly describe your organization’s auditing requirements, including those for the proposed project.

As outlined in 2 CFR § 200.500 and 24 CFR § 5.801
5CHC complies with all applicable federal laws, statutes, and regulations including the uniform financial reporting standards (24 CFR § 5.801) and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). 5CHC annually engages multiple monitoring reviews for various government contracts. 5CHC has never received a significant finding in any monitoring review. 5CHC also contracts for an independent audit annually. For the past two years, since 2021-22 (due to increased federally sourced income) 5CHC has contracted for a

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more rigorous “Single Audit”. 5CHC's Single Audit for 2022-23 is attached; as in the prior year, there were no significant findings by the auditor. 5CHC has engaged a local accounting firm, Glenn-Burdette, to undertake an audit for our most recent fiscal year 2023-24. This audit is expected to be completed by February 2025.

B.3.a. Please upload the following documentation:
 Attachment D - Most Recent Audit *Required
**No files uploaded
B.4. Describe the organization’s experience delivering related programs/projects.

Through three interim housing navigation centers and one drop-in access service center, 5Cities Homeless Coalition (5CHC) assists people experiencing homelessness and those at risk of homelessness to obtain and retain housing by offering a spectrum of wrap-around supportive services including coordinated entry and diversion (including funding for immediate needs and relocation); street outreach; emergency shelter and interim housing; and housing stabilization services to obtain or retain housing (including application fees, deposit, rent, past rent, utility assistance and case management). 5Cities Homeless Coalition began offering services in 2012, initially at a single office location. Since that time, 5CHC has expanded with a multi-service access center and three navigation centers. 5CHC’s programs have expanded in partnership with our community to include a comprehensive array of services to meet the needs of the continuum. 5CHC has built its program looking at best practices from multiple providers; including a special focus of hiring those with lived experience as homeless and/or incarcerated. 5CHC endeavors to build trust, develop a sense of community, and respect. We serve as a client advocate, reducing barriers to services, follow evidence based-models of care, motivational interviewing. See 5CHC's year-end service report (2023-24), and examples of recently submitted program reports (by funding source) in the supplemental documents.

B.5. How will you document and maintain income status or presumed benefit status of each beneficiary in compliance with regulations?
5CHC has several methods for verifying income. Initial steps include self-certification of income by the client during intake assessment. This is followed by documentation collection, in which clients provide proof of income (e.g. employment pay stubs, Cash-Aid report, child support, SSA Benefits award letter, etc.). If a client is working a cash-only job, we allow them to submit an employment verification form signed by their employer with appropriate contact information. Once documents are collected, case managers complete the Income Calculation sheet which calculates gross income for the household; calculations are then approved by the program supervisor. Annual gross income is used to determine AMI level based on household size. 5CHC understands documentation collection may be a barrier to some households and assists in whatever ways possible to obtain necessary documentation. Those verified to be currently homeless with no income documentation are presumed to be low-income. Re-determination for program eligibility occurs every 3 months for homelessness prevention clients and annualLY for rapid re-housing clients.

B.6. Briefly describe your agency’s record keeping system with relevance to the proposed project.

In keeping with our policies and procedures for this program, all client files are compiled and maintained according to a detailed program activity checklist, utilizing standard forms for all services. Included in this are reference notes for any required periodic updates or re-certifications. All applicable information is entered in HMIS at program entry, exit, and as appropriate for the project. 5CHC has staff dedicated to reviewing all client files regularly for accuracy and completeness. All payment requests include a detail of the client info, activity, funding source, and purpose. These requests for financial assistance become part of the client file and are cross referenced for appropriate documentation in the invoicing process. 5CHC also maintains a client walk-in and call log at our Access Center, noting the purpose of the call/visit. This is updated daily and is maintained by 5CHC’s Coordinated Entry, Resource and Referral Specialists. Data from this log is often used to cross-referenceprior contact with an individual who was not previously entered into a

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project in HMIS by 5CHC. All files are maintained electronically on 5CHC’s secure server, which is securely backed up daily off-site.

B.7. Identify all budgeted funds for project related costs. Include leveraged funding to exhibit financial sustainability of the project beyond the grant term if awarded.

It should be noted that the sustainability of this program is wholly determined by funding levels. As the majority of fund are spent on direct financial assistance, averaging approximately $3,000 per household, the success of the program and its future sustainability, are dependent on funding support for which there are limited sources. Sources: CDBG, HOME, and CalAIM (HHIP 3). Additionally in-kind matching funds will be provided through case management services by Consortium members. The impact of CalAIM’s soon to roll-out “Transitional Rent” Community Support is not yet clear, as eligibility and guidelines are yet to be finalized.

B.8. Does your organization comply with the Generally Accepted Accounting Principles? As outlined in 2 CFR § 200
Yes
Required Acknowledgement for Federal Grants or Contracts B.9. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as Example Exhibit D-General Conditions and Example Exhibit E- Special Conditions? Yes

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C. Proposed Project & Project
Details
Completed by [email protected] on 10/6/2024 1:48 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
C. Proposed Project & Project Details
Please provide the following information.

C.1. Name of Proposed Project
Homeless Prevention – Countywide Services
C.2. Project/Program Address
100 S 4TH ST GROVER BEACH, CA 93433
C.3. Areas Served-Select all that apply
 City of Arroyo Grande
 City of Atascadero
 City of Grover Beach
 City of Morro Bay
 City of Paso Robles
 City of Pismo Beach
 City of San Luis Obispo
 Unincorporated Community
Name of Unincorporated Community:

All eligible communities in San Luis Obispo County.
 Countywide
C.4. Provide a brief narrative of the proposed project, including projected outcomes:
5CHC seeks to continue its highly successful Homeless Prevention program to help families at-risk of homeless remain in their home, with an anticipated 165 households receiving assistance. 5CHC's track record has demonstrated that less than 2% of those served in the prior 24 months have fallen into homelessness after receiving assistance.  Attachment E – If applicable, attach most recent annual performance report **No files uploaded
C.5. What is the level of need for this activity within SLO County? Please include data to support your answer.

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It is abundantly documented that stable housing, health and self-sufficiency are the keys to addressing the challenges of homelessness. 5CHC is a community leader in providing these services to residents of San Luis Obispo County who are experiencing homelessness or who are at-risk; however, we are seeing an alarming spike in requests for assistance. According to a 2022 data analysis by Porch, an online home improvement and home-buying advice website, the San Luis Obispo area is the now second least affordable small metro area in the entire United States. It is estimated that, just since the on-set of COVID, that area rental rates have increased more than 30%. The high cost of housing here in San Luis Obispo County is approximately 53% higher than the national average, according to Zillow with the median rental rate having increased $400 One of the six policy recommendations made in the UCSF study, California Statewide Study of People Experiencing Homelessness, is to “expand targeted homelessness prevention (e.g., financial support, legal assistance) at service settings (e.g., social service agencies, healthcare settings, domestic violence services, community organizations) for both leaseholders and non-lease holders. Expand prevention and transition services at institutional exits (jails, prisons). Expand and strengthen eviction protections.” More than 80% of participants in this study, who were experiencing homelessness, believed receiving a one-time payment of $5,000- $10,000 would have prevented their homelessness. Those experiencing homelessness who lack rental history, have poor credit, lower income, or criminal history are especially challenged in the current housing market. 5CHC has utilized landlord incentives in prior projects and it has proved to be a vital component to secure housing for this population. 5CHC has assisted 77 individuals re-gain housing, who would not have otherwise been able to secure housing, with the landlord incentive program. Beyond assisting with rental assistance to prevent eviction, 5CHC also puts considerable resources towards utility assistance, car repairs, food assistance, etc. that are often symptomatic of growing financial instability. Without early intervention these issues can easily compound and lead to increased housing instability and risk of homelessness. For the current year these requests have skyrockets, as several utility assistance programs were cut (both federally and by the State). In fiscal year 2023-24, 5CHC invested more than $500,000 in direct financial assistance, plus case management services, to help 479 residents (206 households) throughout San Luis Obispo County to keep their home and not fall into homelessness (see 5CHC’s year-end report fy 23-24). The average investment per household is less than $2,800. In tracking the outcomes of this program, less than 2% of those served in the last 24 months have fallen into homelessness. 5CHC attempted to include multiple hyperlinks in this response to provide requested data. These hyperlinks are available upon request.

C.5.a. Please upload the following documentation:
 Attachment F – Timeline: Attach a timeline for key steps of project implementation. *Required **No files uploaded
C.6. Is this effort new, continuing, or expanding? Please describe.

While this is a continuing program, 5CHC is seeking increased support. For the current fiscal year (24-25) funding for homeless prevention services was reduced by more than $200,000. This equates to approximately a reduction in 5CHC’s ability to assist approximately 75 families.

C.7. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027).

The proposed project is directly aligned with Line of Effort 2 and Line of Effort 3 in the plan. Line of Effort 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts. In particular this program addresses Line of Effort 2.D. which calls for preventing “homelessness through expanded diversion efforts (also known as housing problem solving or family reunification) and homeless prevention capacity.” In order to stem the flow of those falling into homelessness in our county, and reach the County’s goal of reducing homelessness by 50%, additional resources are necessary to ensure fewer people enter the homeless services system. Homeless

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prevention is one of the most cost-effective strategies to reduce the incidence of homelessness in a community.

According to the 2023 study by Notre Dame University’s Wilson Sheehan Lab for Economic Opportunities (LEO), in addition to helping individuals and families maintain their housing, the LEO study suggests this community-wide prevention program is cost-effective and yields benefits to the broader community. Researchers estimated that the Homelessness Prevention System produces $2.47 in estimated benefits for every $1 dollar spent on emergency financial assistance. 5CHC attempted to include multiple hyperlinks in this response to provide requested data. These hyperlinks are available upon request.

C.8. Select all population(s) expected to be served through this project:
 Adults with children
 Adults without children
 Elderly/Senior
 Parenting Youth
 Persons Experiencing Chronic Homelessness
 Persons At Risk of Homelessness
 Veterans
 Domestic Violence Survivors
 Persons with Disabilities
 Unaccompanied Youth (under 25 years of age)
 Individuals with Co-occurring Disorders (Substance Use and Mental Health)  Low – Moderate Income Persons or Households
C.9. How does your program/service complement and collaborate with existing efforts in the County? Describe how the program/project will increase capacity of services/housing for persons experiencing homelessness and at-risk persons in the County.
5CHC Homeless Services program is integrated in the local Continuum of Care (CoC), focusing on collaboration and strategic action. Homeless Prevention strategies are one of the initial efforts provided, throughout the compendium of services. 5CHC receives referrals from agencies across the service continuum, not solely those who provide Coordinated Entry assessments. In an effort to build core competencies of service providers within the CoC, 5CHC collaborates with area partners on evidence-based trainings (Mental Health First Aid, Trauma-Informed Care, Motivational Interviewing, etc.) 5CHC also has a program of providing staff trainings monthly with other service professionals and partner agencies. 5CHC seeks to streamline services through collaborative work with service providers throughout the County. By coordinating efforts and providing consistent services throughout the County, 5CHC ensures the ability to maximize resources and prevent duplication of services and benefits.

C.10. Describe any consultation with local jurisdictions to gain support for the project. Describe any support you have from local jurisdictions.

Please see the attached letters of support from South County cites of Grover Beach, Pismo Beach and Grover Beach.

While 5CHC works most closely with these jurisdictions, 5CHC homeless prevention efforts have been provided

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county-wide, as demonstrated in the table below. 2023-24 Homeless Prevention Assistance Per Jurisdiction Arroyo Grande Households: 33 Total: $134,173 % of Dollars Spent in this Jurisdiction: 26% Pismo Beach Households: 8 Total:
$20,920 % of Dollars Spent in this Jurisdiction: 4% SLO Households: 23 Total: $83,169 % of Dollars Spent in this Jurisdiction: 16% Morro Bay Households: 5 Total: $22,423 % of Dollars Spent in this Jurisdiction: 4% Atascadero Households: 10 Total: $30,292 % of Dollars Spent in this Jurisdiction: 6% Paso Robles Households: 38 Total $144,665 % of Dollars Spent in this Jurisdiction: 28% County Households: 18 Total: $75,500 % of Dollars Spent in this Jurisdiction:
15%
 Attachment G – Letters of Support: Please attach any letters of support or commitment from local governments or community partners.
**No files uploaded
C.11. Describe how you will ensure that the proposed project is accessible to communities of color which are disproportionately impacted by homelessness, particularly Black, Latinx, Asian, Pacific Islander, and Native and Indigenous communities. If you have previously received a grant to serve any of the affected communities, please provide a brief description of those grant activities and the outcomes you achieved. 5CHC has a policy of promoting inclusiveness and diversity to enrich its programmatic effectiveness, which is reflected in the composition and language skills of our staff. 5CHC has received multiple awards through UnDocuSupport, and worked extensively on the 2020 Census to survey hard-to-reach populations. 5CHC is a member of the Diversity Coalition San Luis Obispo County. 5CHC maintains strong partnerships with other members of the UndocuSupport Coalition and fosters relationships with new and emerging efforts to serve the immigrant population, such as Immigrant Hope – Arroyo Grande.

C.13. Indicate the predicted, unduplicated performance outcome listed below:

Population Number of Individuals
Served
Number of Households
Served
Number of unsheltered persons to become sheltered
Number of people experiencing homelessness to be
entering permanent housing
Number of people experiencing Chronic Homelessness
served
Number of persons At-Risk of Homelessness served 426 165 Number of Unaccompanied Youth served
Number of Youth At-Risk of Homelessness served
Number of persons in families with children served
Total 426 165

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D. Funding & Eligible Activities
Completed by [email protected] on 10/6/2024 2:07 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
D. Funding & Eligible Activities
Please provide the following information.

D.1. Total Funding Requested
$881,049.00
D.1.a. Please upload the following documentation:
 Attachment H – Budget , Leveraged-Funds, and Budget Narrative: Attach a Budget and Budget Narrative for the project for which you are applying. The budget narrative should include FTEs to be provided. Please include the value of any matching funding. *Required
**No files uploaded
D.2. Are you requesting HOME-TBRA funds?
Yes
D.2.a. Amount of HOME-TBRA funds requested:
$769,779.00
D.2.b. Estimated number of unduplicated persons to benefit from HOME-TBRA funds:
372
D.2.c. Estimated number of unduplicated households to benefit from HOME-TBRA funds:
144
D.2.d. Provide proposed funding amounts and approximate number of households to be served:

Funding Type Amount Approximate Households Served
Rental Subsidy $0.00 371
Utility Deposit Subsidy $0.00
Security Deposit Subsidy $0.00
Total $0.00 371
D.2.e. Please describe your organization’s client application, intake, and preliminary assessment process. 5CHC is a member of the Coordinated Entry collaborative, a system utilized by Homeless Service Providers throughout the County that provides a standardized intake assessment and referrals to ensure a more consistent and streamlined experience for those seeking services. During this initial intake, clients complete a comprehensive needs assessment, identify barriers to employment or housing, and develop an immediate action plan. Additionally, this assessment provides an opportunity to identify what services or resources a client is already connected to in an effort to reduce duplication of services. Clients are screened for homeless status (homeless certification forms) and income eligibility.

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D.2.f. Describe your organizational collaboration with other local organizations to assist TBRA income eligible households.
5CHC engages with a broad spectrum of community partners to provide housing assistance, working extensively with the more than 20 member organizations of the Supportive Housing Consortium. In particular 5CHC partners with ECHO and CAPSLO, as part of the coordinated entry system. Additionally, 5CHC has built an even more extensive referral network with the Legal Assistance Foundation, and Family Resource Centers throughout the County, and Familiy Care Network. 5CHC has become the hub for Rapid Re-housing and Homeless Prevention services, serving clients from San Miguel to Cambria to Nipomo with the help of our partners. This referral network has allowed us to maximize our resources, coordinate efforts, and prevent duplication of services and benefits.

D.2.g. HOME-TBRA Matching Funds
Funding Source Amount
In-Kind Case Management - Supportive Housing Consortium Estimate $38.57/hour (including fringe) X 500 Hours
$192,445.00
Total $192,445.00
Please upload the following documentation:
 Attachment I – Match Certification Letter: 25% match required for HOME TBRA *Required **No files uploaded
 Attachment J – HOME-TBRA Policies and Procedures
**No files uploaded
D.3. Are you requesting CDBG funds?
Yes
D.3.a. Amount of CDBG funds requested:
$9.00
D.3.b. Please indicate the amount you are requesting for each jurisdiction:

Jurisdiction Amount
Arroyo Grande $9,600.00
Atascadero $3,600.00
Morro Bay $3,000.00
Paso Robles $17,150.00
Pismo Beach $5,000.00
San Luis Obispo $9,920.00
County $13,000.00
Total $61,270.00
D.3.c. Estimated number of unduplicated persons to benefit from CDBG funds:
30 D.3.d. Estimated number of unduplicated households to benefit from CDBG funds:
11

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D.3.e. Please select the national objective that best applies to the proposed project.

Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives.

Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.

Limited Clientele
D.3.f. Identify all eligible activities that apply to the proposed project:
 Public Services -General
 Operating Costs of Homeless/AIDS Patients Programs
 Senior Services
 Handicapped Services
 Legal Services
 Youth Services
 Transportation Services
 Substance Abuse Services
 Services for Battered and Abused Spouses
 Crime Awareness or Neighborhood Cleanups
 Fair Housing Activities
 Tenant/Landlord/Housing Counseling
 Child Care Services
 Health Services
 Services for Abused and Neglected Children
 Mental Health Services
 Job Training and Job Placement Services
 Subsistence Payments, Homeless Assistance, Rental Housing Subsidies or Security Deposits  Assistance to microenterprises (technical assistance, business support services, and other similar services to owners of microenterprises or persons developing microenterprises)  Minor Home Repair
D.3.g. Explain how the proposed project meets the selected National Objective:

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Assistance will be provided to benefit a clientele who are generally presumed by HUD to be principally L/M income persons - those who are homeless. This population is among those who are currently presumed by HUD to be made up principally of L/M income persons: Reference: §570.208(a)(2)(i)(A) Additionally, as some assistance will be provided to those of imminent threat of homelessness, 5CHC's program additionally requires information on family size and income so that it is evident that at least 51% of the clientele are persons whose family income does not exceed the L/M income limit. Reference: §570.208(a)(2)(i)(B) and (C) D.3.h. Will the services offered by your organization increase or expand as a result of CDBG assistance? Yes
Explain how your services will increase or expand as a result of CDBG assistance:

D.3.i. Describe how the project will directly benefit the populations identified.

Funding will be used to provide short-term rental assistance, coupled with supportive services, to enable low-income families to remain in their home and not fall into homelessness. 5CHC has documented that less than 2% of those served in the last 24 months in this program have fallen into homelessness.

D.4. Are you requesting PLHA funds?
No
D.5. Are you requesting ESG funds?
No
D.6. Are you requesting General Fund Support funds?
No

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E. Required Documents
Completed by [email protected] on 10/6/2024 2:08 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
E. Required Documents
Please provide the following information.

Documentation
 Attachment L – Supplemental Documentation
**No files uploaded

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Submit
Completed by [email protected] on 10/6/2024 2:08 PM Case Id: 30246
Name: 5Cities Homeless Coalition - 2025
Address: 100 S 4TH ST, GROVER BEACH, CA 93433
Submit
Please provide the following information.
 The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding.The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the Commission.
 I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
 I further certify that the information provided in this Funding Application is correct, accurate, and complete.

In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.

Authorized Representative Signature
Janna Nichols
Electronically signed by [email protected] on 10/6/2024 2:08 PM Authorized Representative Title
Executive Director

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Overview
Completed by [email protected] on 9/23/2024 2:40 PM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
Overview
Please provide the following information.

County of San Luis
Obispo
Public Facilities and
Infrastructure
Program
Department of Social Services
Adult and Homeless Services Branch
PO Box 8119
San Luis Obispo, CA 93403-8119
[email protected]
Please review the Notice of Funding Availability (NOFA) and Application Guidelines before submitting your application. All applications must meet the eligibility criteria and requirements set forth in the NOFA. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach.

Public Facilities and Improvements- CDBG funds may be used by the grantee or other public or private nonprofit entities for the acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of architectural barriers to accessibility), emergency shelters, transitional housing, or installation of public improvements or facilities (except for buildings for the general conduct of government).

Reference: § 570.201(c). Subject to site visit during application review.

Eligible types of facilities and improvements include:
• Infrastructure improvements (construction or installation) including, but not limited to streets, curbs, water and sewer lines;
• Neighborhood facilities including, but not limited to public schools, libraries, recreational facilities, parks, playgrounds; and
• Facilities for persons with special needs such as facilities for the homeless or domestic violence shelters, nursing homes, or group homes for the disabled.

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A. Applicant Information
Completed by [email protected] on 9/23/2024 2:43 PM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
A. Applicant Information
Please provide the following information.

PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
City of Morro Bay
A.2. Type of Organization
Government Entity
A.3. UEI Number: For more information, visit SAM.GOV
KAFQZMM3MRA5
Please upload the following documentation:
 Attachment A - Proof of Active SAM.gov Registration *Required EntityInformation_20240716-021836.pdf
A.4. Address
595 Harbor Street
Morro Bay, CA 934421907
A.5. Is the organization faith based?
No

CONTACT INFORMATION
A.11. Contact Person Name
Erik Valentine
A.12. Contact Person Title
Assistant Planner
A.13. Phone Number
(805) 772-6211
A.14. Email
[email protected]

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B. Applicant Capacity
Completed by [email protected] on 10/4/2024 9:20 AM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
B. Applicant Capacity
Please provide the following information.

B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources.

The City of Morro Bay has participated in the Urban County Consortium since 2011, consistently receiving and managing CDBG funds each year. Prior projects have included pedestrian accessibility/sidewalk projects and funding assistance to local nonprofit organizations for homeless services. Recently, the City received LEAP Grant funding in 2020 for an update to the Housing Element, a project that spanned from January 2020 through May 2023. The project overcame several challenges on its way to completion, perhaps most notably in the form of the global pandemic. The City has also recently received LEAP funding to develop a pre-designed accessory dwelling unit initiative, a project that is currently ongoing. In addition, the City anticipates grant funding through the California Coastal Commission to perform an update to its 1996 Waterfront Masterplan. The grant application has been submitted and will be heard at the October 10th Coastal Commission hearing.

B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and has completed. Regardless of funding source.
- Active Transportation / Active Corridor Studies (In-progress) - ADA Accessibility Upgrades at Quintana and Main Streets Intersection (In-progress) - Annual Pavement Management Program (Arterial Digout Project) FY 21/22 (In-progress) - Annual Pavement Management Program (Surface Seal Project) FY 22/23 (In-progress) - Annual Pavement Management Program FY 23/24 (In-progress) - Annual Storm Drain Replacement and Major Maintenance Project (In-progress) - Beach Street Slips (North & South) (In-progress) - Boat Launch Ramp & Float Replacement Plan (In-progress) - Bonita Fire Station Remodel (In-progress) - Brackish Water Reverse Osmosis Building Improvements (In-progress) - City Park (and other parks) Play Equipment (In-progress) - Citywide Capital and Facilities Planning - Facilities Condition and Needs Assessment (FCNA) (In-progress) - Citywide Speed Survey (In-progress) - Coleman Park Restroom Renovation and Park Improvements (In-progress) - Corp Yard R/O Building Roof Repairs (In-progress) - Electric Vehicle Charging Stations - Del Mar Park (In-progress) - Electric Vehicle Charging Stations - Embarcadero (In-progress) - Emergency Storm Drain Repair - Sequoia Court (In-progress) - Emergency Storm Drain Repair - Juniper / Elena (In-progress) - Harbor Building Security Improvements (In progress) - Harbor Capital Needs Assessment (In progress) - Harbor Vessels/Equipment (In-progress) - Lift Station No. 1 Force Main Replacement (In-progress) - Lila Kaiser Parking Lot Rehabilitation and ADA Upgrades (In-progress) - Local Roadway Safety Plan (LRSP) (In-progress) - LRSP Implementation and Safety Improvements (In-progress) - Morro Basin Wellfield Rehabilitation (In-progress) - North T-Pier Renovations (In-progress) - Nutmeg Tank and related Pressure Zone Improvements (In-progress) - OneWater Plan Update (In-progress) - Outfall Inspection, Condition Assessment and Cleaning (In-progress) - Repave Police Annex Parking Lot (In-progress) - Reskin Reverse Osmosis Treatment Building (In-progress) - RO Building Tank & Piping Modification (In-progress) - RO Membrane Replacement (In-progress) - Sequoia Ct Emergency Storm Drain Repair (In-progress) - Sidewalk Improvements and Street Tree Replacements Project (In-progress) - SR1/SR41/Main St Intersection Improvements (In-progress) - Storm and Flooding Damages - Facilities and Equipment (In-progress) - Storm and Flooding Damages - Pavement and Pavement Repairs (In-progress) - Storm Recovery - Dock Repairs (In-progress) - Tidelands Boat Launching Facility and Float Replacement (In-progress) - Trash and Recycling Can Replacements (In-progress) - Utility Hole (Manhole) Rehabilitation Project (In-progress) - Veteran's Hall Building Improvements (In-progress) - Wastewater Collections System

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Improvements – Main Street and Atascadero Road (In-progress) - Wastewater Collections System Improvements – Backyard Sewer Main Improvements (In-progress) - Wastewater Collections System Improvements – Beachcomber Main Replacement (In-progress) - Wastewater Treatment Plant Decommissioning (In-progress) - Water Tank Rehabilitation (In-progress) - Waterways and Storm Systems Management Plan (In-progress) - WRF Project (In-progress) B.3. Briefly describe your organization’s auditing requirements, including those for the proposed project.

As outlined in 2 CFR § 200.500 and 24 CFR § 5.801
The City requires an annual audit of all funds according to the standards applicable to financial audits contained in "Government Auditing Standards" issued by the Comptroller General of the United States.

B.3.a. Please upload the following documentation:
 Attachment E – Most Recent Financial Audit *Required
**No files uploaded
B.4. Describe project staffs’ experience with Section 3.

N/A
B.5. Briefly describe your agency’s record keeping system with relevance to the proposed project.

The City maintains complete records of all projects, permits, and transactions. Digital files are maintained in each instance, with paper files being kept for an appropriate amount of time if they are created. Files include financial tracking spreadsheets, complete staff reports, project photos, invoices, pay stubs, and other relevant communications like staff presentations, public correspondence, and more.

B.6. Do you have any funds remaining from prior Fiscal Year allocations? If so, please list the project you received funding for, the fiscal year(s) you received the funding, and the remaining amount(s) for each fiscal year(s).

The City of Morro Bay has $131,190.30 in funds remaining allocated to the Quintana Road ADA Improvement Project, which includes funds from the 2024 CDBG cycle as well as from prior year funds and reallocations. The City will also have $3,758 in 2024 Administration funds that will become available when new agreements are signed.

B.7. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? The City plans to fund the operation and maintenance costs associate with this project through the Annual Pavement Management Program outlined in the FY2024-25 Operating and Capital Budget, which has been adopted by the City Council and is currently in effect.

B.8. Does your organization comply with the Generally Accepted Accounting Principles? As outlined in 2 CFR § 200
Yes
B.9. Required Acknowledgement for Federal Grants or Contracts.

Does your organization certify that, if awarded funds, it will comply with the requirements as shown as "Example D-General Conditions" and "Example Exhibit E-Special Conditions" in the library? Yes

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C. Proposed Project & Project
Details
Completed by [email protected] on 10/4/2024 9:58 AM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
C. Proposed Project & Project Details
Please provide the following information.

C.1. Name of Proposed Project
ADA Sidewalk Repair/Replacement Project
C.2. Project/Program Address
595 Harbor Street
Morro Bay, CA 93442
C.3. Accessor's Parcel Number.

Additional information available on the County Website.

No APNs for City-owned right of way.

C.4. Areas Served-Select all that apply
 City of Arroyo Grande
 City of Atascadero
 City of Morro Bay
 City of Paso Robles
 City of Pismo Beach
 City of San Luis Obispo
 Unincorporated Community
C.5. Please select which eligible category applies to the project:

Neighborhood Improvement Projects – Curb and sidewalk replacement, major storm water management improvements, street reconstruction, or water main and sewer main replacement.

C.6. Number of Proposed Units Created or Rehabilitated:
0 C.7. Describe the proposed project in detail. What activities are to be undertaken? The City has hundreds of City-owned street trees along roadway frontage throughout the city. Many of the street trees that are mature were planted many years ago are causing destruction to sidewalks, curb and gutter, asphalt roadway, and other public infrastructure. The damage to city infrastructure is an unfunded liability to the City from a maintenance

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and safety perspective. In addition, these areas where uplift of sidewalk has occurred cause areas to be out of compliance with the Americans with Disabilities Act (ADA). This project would be to correct some areas where street trees have caused damage and remove the tree and replace with a more appropriate street tree with an underground growing zone so that the roots do minimal damage to the infrastructure. The project would also include the replacement of sidewalks, curb and gutter, curb ramps, and portions of roadway that have been affected by street trees.

In some cases, the project would involve filling sidewalk gaps that affect accessibility. The proposed improvements will include sidewalk deficiencies in the Morro Bay downtown area, including sections of Morro Bay Boulevard, Harbor Street, Main Street, Monterey Avenue, and Napa Avenue.

C.7.a. Please upload the following documents:
 Attachment I – Maps, Photos, Drawings, Plans *Required **No files uploaded
C.8. Provide a timeline for key steps of project implementation here or attach a timeline for project implementation as Attachment B.
 Attachment G – Timeline: Attach a timeline for key steps of project implementation. **No files uploaded
C.9. Will residential or commercial occupants be displaced by the project? No
C.13. What is the current zoning of the project site?
All locations of the proposed project will occur in City-owned right of way, and are not zoned.

C.14. Is the project site zoned correctly for the proposed activity? Yes
C.15. Have necessary Land Use Permits and/or Have necessary Land Use Permits and/or Construction Building Permits have been issued? have been issued?
No
C.15a. What is their current expiration date(s)?
N/A
C.15b. Indicate when the permit(s) will be applied for or issued:

The appropriate permit(s) will be applied for and issued when specific plans and drawings have been made for each segment of sidewalk to be repaired or replaced.

C.16. Is the project required to pay a prevailing wage:

Yes
C.17. Explain how Section 3 benchmarks will be met.

N/A
C.18. Explain how your project will be marketed towards MBE/WBE.

The proposed project will bring improvements and repairs to existing ADA infrastructure within the City's streetscape,

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and bring additional areas into compliance with ADA regulations as well. These will service the entire population of Morro Bay, including all residents, business owners, and tourists alike. These improvements benefit all, and help to create a better Morro Bay that is more accessible to everyone.

C.19. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness.

The project does not tie in directly with any of the six (6) Lines of Effort in the San Luis Obispo Countywide Plan to Address Homelessness, but perhaps aligns adjacently to Line of Effort 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts. Seniors make up a significant proportion of the City of Morro Bay's population, and ADA improvements are a critical project to improve their accessibility around the community, facilitating their ability to age in place. Senior residents are a community that experiences a heightened risk of housing complications, as a majority of the community are on fixed incomes, experience accessibility issues, and are faced with a limited housing stock. Ensuring that their neighborhood accommodates accessibility is a vital element in making sure they have safe and reliable housing.

C.20. Select all population(s) expected to be served through this project:
 Low-/moderate-income households
 Multifamily
 Age Restricted (including seniors)
 Persons Experiencing Homelessness
 Persons Experiencing Chronic Homelessness
 Persons with Disabilities
 Veterans
 Domestic Violence Survivors
 Unaccompanied Youth (under 25 years of age)
C.21. Does the proposed project complement and collaborate with existing efforts in the county? Yes
C.21a. If yes, please the name partner agencies and how they will participate:

The City's proposed ADA sidewalk repair/replacement project complements existing efforts by the County's Department of Public Works outlined in their Pavement Management Report and Five-Year Capital Improvement Plan.

C.22. Describe any consultation with local jurisdictions to gain support for the project. Describe any support you have from local jurisdictions.

The proposed project will take place entirely within the City limits of the City of Morro Bay, and other local jurisdictions have not been consulted.

C.22a. Please upload the following documents:

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 Attachment K – Letters of Support
**No files uploaded
C.23. How will you collect demographic data on the beneficiaries of the proposed project? Demographic data on the beneficiaries of the proposed project will be collected using available census and population data. More detailed surveying can be done through consultant services if necessary.

C.24. Describe how you will ensure that the proposed project is accessible to communities of color which are disproportionately impacted by homelessness, particularly Black, Latinx, Asian, Pacific Islander, and Native and Indigenous communities. If you have previously received a grant to serve any of the affected communities, please provide a brief description of those grant activities and the outcomes you achieved.

The proposed project will serve every member of Morro Bay's unique and diverse community. Additional ADA compliant sidewalks and streetscapes make the City an increasingly accessible community for all, promoting the intergenerational interactions that build strong relationships amongst neighbors, patrons of local businesses, and tourists.

C.25. Has your organization previously received a grant to serve any of the affected communities? No
C.26. Has an environmental review been completed, CEQA? No – CEQA review not complete
C.27. Has NEPA environmental review been completed?
No – NEPA review not complete
C.28. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? N/A
C.28a. If yes, please upload the following documentation:
 Attachment L – Archeological/Historical Survey, Phase I or II **No files uploaded
C.29. Has a Phase I or Phase II environmental assessment been conducted for the property? N/A
C.29a. If yes, please upload the following documentation:
 Attachment M – Environmental Assessment, Phase I or II **No files uploaded
C.30. List and describe any known hazards-e.g., asbestos, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable.

N/A
C.31. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site?
N/A

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C.32. Are the building(s)/structure(s) located on a historic site or within a local historic district? N/A
C.33. Is the project located within a 100-year flood plain? N/A
C.34. Will demolition or excavation be required?
No
C.35. Are there any existing buildings on the project property that were constructed prior to 1978? No
C.36. Describe how the project will meet ADA and Section 504 standards for accessibility by the disabled. Describe the methods, funding, and timetable to be utilized to address the problems.

The project will meet ADA standards by bringing selected sidewalks into compliance with all accessible design standards.

Section 504 standards do not apply.

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D. Funding & Eligible Activities
Completed by [email protected] on 10/3/2024 3:48 PM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
D. Funding & Eligible Activities
Please provide the following information.

D.1. Total Project Funding (include all sources and uses of funding) $42,418.00
D.1.a. Please upload the following documentation:
 Attachment N – Sources and Uses *Required
**No files uploaded
 Attachment O – Commitment Letters for Funds
**No files uploaded
D.2. Amount of CDBG funds requested:
$42,418.00
D.3. Estimated number of unduplicated persons to benefit from CDBG funds:
10,589
D.4. Estimated number of unduplicated persons in Low – Moderate Income, 80% or less of the County Median Income, will benefit from CDBG funds:
3,680
D.5. Please select the national objective that best applies to the proposed project.

Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" in The Library for more information regarding CDBG national objectives.

Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.

Area Benefit

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E. Required Documents
Completed by [email protected] on 10/4/2024 9:59 AM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
E. Required Documents
Please provide the following information.

Documentation
 Attachment N - Sources and Uses: This should include a summary of where the capital used to fund a development will come from (the sources) and what this capital will be used for (the uses). *Required **No files uploaded
 Attachment H – Timeline: Attach a timeline for key steps of project implementation. **No files uploaded
 Attachment I – Any Maps, Photos, Drawings, Plans
**No files uploaded
 Attachment E – Most Recent Financial Audit *Required
**No files uploaded
 Attachment A - Proof of Active SAM.gov Registration *Required EntityInformation_20240716-021836.pdf
 Attachment B – Organizational Chart *Required
**No files uploaded
 Attachment C – Incorporation Documents *Required
**No files uploaded
 Attachment D – General Liability Insurance *Required
**No files uploaded
 Attachment L – Archeological/Historical Survey, Phase I or II **No files uploaded

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 Attachment M – Environmental Assessment, Phase I or II **No files uploaded
 Attachment P – Pro Forma (20-year)
**No files uploaded
 Attachment F – Appraisal of Property
**No files uploaded
 Attachment G – Relocation Plan
**No files uploaded
 Attachment O – Commitment Letters for Funds
**No files uploaded
 Attachment R – Supplemental Information
**No files uploaded
 Attachment K – Letters of Support: Please attach any letters of support or commitment from local governments or community partners.
**No files uploaded
 Attachment Q – Relocation Plan
**No files uploaded

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Submit
Completed by [email protected] on 10/4/2024 1:26 PM Case Id: 30244
Name: City of Morro Bay - 2025
Address: 595 Harbor Street, Morro Bay, CA 93442
Submit
Please provide the following information.
 The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding.The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the Commission.
 I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
 I further certify that the information provided in this Funding Application is correct, accurate, and complete.

Authorized Representative Signature
Erik Valentine
Electronically signed by [email protected] on 10/4/2024 1:26 PM Authorized Representativd Title
Assistant Planner

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Prepared By: ___DM_______ Dept Review: ______________
Acting City Manager Review: __DM____
Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2024 FROM: Dan McCrain, Acting City Manager
Yvonne Kimball, City Manager
SUBJECT: Discussion and Direction regarding Agreement for City Attorney Services

RECOMMENDED ACTION
City Council review the following options and provide direction to staff for city attorney services:

1. Keep current agreement with Aleshire & Wynder LLP (A&W) for city attorney services and request a new city attorney and assistant city attorney from A&W to start November 14, 2024; or

2. Approve agreement with Burke, Williams and Sorensen for city attorney services and appoint current City Attorney Chris F. Neumeyer as City Attorney; terminate agreement with Aleshire & Wynder for city attorney services with the exception of closure of ongoing items to be specified by City; or

3. Provide alternate direction.

FISCAL IMPACT
The proposed agreement with BWS has the same rates and the same material terms as the current agreement with A&W. Entering into a contract for legal services with BWS, with Mr. Neumeyer as the City Attorney and Lona Laymon as Assistant City Attorney, is anticipated to have no fiscal impact.

Should the City remain with A&W, it is anticipated there would be a temporary increased cost as newly assigned attorneys come up to speed on City matters.

BACKGROUND
Aleshire & Wynder has provided city attorney services to the City of Morro Bay since March 2014.

Chris F. Neumeyer, a partner at A&W, has been the appointed City Attorney since 2019. The City Attorney gave notice to A&W on November 4, 2024 that he accepted an offer from law firm Burke, Williams & Sorensen (BWS) to start with BWS as a partner on November 14, 2024. On the same day, the City Attorney provided written notice to the City Council (Attachment 1). State Bar Rules prevented the City Attorney from providing such notice to clients until he provided his current law firm with a notice of resignation. (Cal. State Bar Standing Committee on Prof. Responsibility and Conduct Formal Opinion No. 2020-201, page 6, “Departing Lawyer should not tell client she is leaving until she tells her Law Firm”.)
The City’s current contract with A&W, along with Amendments 1 – 8 are provided as Attachment 2 AGENDA NO: 9.a
MEETING DATE: November 12, 2024

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for reference.

DISCUSSION
The City Attorney is departing his current law firm for employment at a new firm. The Assistant City Attorney, Lona Laymon, is also moving over to BWS as a partner. Furthermore, legal specialist Christy Lopez (who currently services many of the City’s legal needs, including harbor issues, code enforcement, and law enforcement) will also be leaving to join BWS as a partner.

The City has partnered with A&W for City Attorney Services since March 2014 and has retained the services of Chris F. Neumeyer, a partner of Aleshire & Wynder LLP, as the City Attorney since 2019.

A&W is currently under contract with the city and is committed to providing continued legal representation to the City.

The new law firm that City Attorney Chris F. Neumeyer will be employed by as of November 14, 2024, Burke, Williams & Sorensen offers an agreement to the City with the same legal rates that the City presently pays for legal services, and with essentially the same terms in all material respects as the current agreement with A&W (with the exception of not providing bond services to avoid potential conflicts of interest, and BWS may provide to City a 30-day notice, rather than 60-day notice, for withdrawal of representation).

Consistent with the City’s current contract with A&W, the proposed agreement with BWS (Attachment 3) provides that the law firm and the City Attorney are “at-will” and can be discharged with or without notice so, whether the City chooses to stay with A&W or chooses to retain Mr.

Neumeyer as City Attorney by entering into a contract with BWS, the Council retains the option to cancel the contract services with or without notice at any time. Given the new Council will be seated in December, this provides flexibility to consider issuing a Request for Proposals (RFP) for legal services in 2025.

Burke, Williams & Sorensen employs over 170 attorneys servicing about 145 California cities as general or special counsel. They offer essentially every legal specialty, including general municipal law, civil litigation, real estate project development, land use and planning, labor and employment, environmental compliance, public finance and public contracting. BWS has ten offices throughout California, from San Francisco to San Diego, including offices in Camarillo and San Jose. For nearly 100 years, Burke, Williams & Sorensen attorneys have advised and represented public agency clients throughout California, earning stellar reputations for providing legal counsel across the full scope of municipal law. See attachment for more about law firm Burke, Williams and Sorensen. A firm overview is provided as Attachment 4.

CONCLUSION
Staff recommends the Council discuss and provide direction to staff to either:

1. Continue the agreement for City Attorney services with Aleshire & Wynder and request appointment of a new City Attorney and Assistant City Attorney; or

2. Direct staff to approve the agreement with Burke, Williams and Sorensen for City Attorney services with the continuity of Chris F. Neumeyer as the appointed City Attorney, and terminate the agreement with Aleshire & Wynder with the exception of closure of ongoing items to be specified by City; or

3. Provide alternative direction.

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ATTACHMENTS

1. Letter from City Attorney to City Council (November 4, 2024)

2. 2014 Agreement and Amendments 1 – 8 between the City and Aleshire & Wynder

3. (proposed) Agreement with Burke, Williams and Sorensen, LLP

4. Burke, Williams and Sorensen, LLP Firm Overview (2024)

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Los Angeles – Inland Empire – Marin County – Oakland – Orange County – Palm Desert – San Diego – San Francisco – Silicon Valley – Ventura County

AGREEMENT FOR LEGAL SERVICES

BETWEEN

CITY OF MORRO BAY AND BURKE, WILLIAMS & SORENSEN, LLP
This AGREEMENT FOR LEGAL SERVICES (the "Agreement") is effective as of the 14th day of November, 2024 by and between the law firm of BURKE, WILLIAMS & SORENSEN, LLP, a California limited liability partnership ("BWS"), and the CITY OF MORRO BAY, a municipal corporation ("City"). The term "City" shall also include all boards, commissions, financing authorities, and other bodies of City.

1. APPOINTMENT
City Council hereby reaffirms the appointment of, and appoints, Chris F. Neumeyer as the city attorney, and hires BWS as its city attorney, to render such legal services as are customarily rendered by such officials and as further specified herein, including attending meetings of the City Council, including joint meetings with other public entities, and other boards and bodies of City, and its affiliated agencies, as directed by City.

Notwithstanding the foregoing appointment, the designated city attorney, agency counsel, and any assistant city attorney or assistant agency counsel, may be established from time to time or modified by resolution of the City Council. BWS represents that it employs, or will employ at its own expense, all personnel required for the satisfactory performance of any and all tasks and services set forth herein. BWS shall not replace the designated city attorney (or any successors to such person) without the City Council's prior approval, except from time to time necessary due to illness or vacation scheduling.

Approval of any such temporary substitute, or of any assistant city attorney shall be obtained from the City Manager. The City Attorney may appoint various deputies as city attorney deems appropriate, without the need for amendment hereof.

2. SCOPE OF WORK AND DUTIES
A. BWS shall perform any and all work necessary for the provision of city attorney services to City, including without limitation of the following:
(i) Attendance at City Council meetings, including any joint meeting of City and the Cayucos Sanitary District Wastewater Treatment Plant (under Joint Powers Agreement), unless excused by the City Manager or his/her designee, and Planning Commission and other board and commission meetings on request of the City Manager

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or his/her designee; provided, that the parties understand attendance at the joint meeting and Planning Commission meeting will at some point be attended by the assigned Deputy City Attorney; and
(ii) Provide legal advice, written legal opinions, and consultation on all matters affecting City to the City Council, City Manager, boards, commissions, committees, officers, and employees of City and as requested by the City Council, the City Manager, or his/her designee, in accordance with such policies and procedures. as may be established by City from time to time; and
(iii) Be available for telephone consultation with City staff, as needed on legal matters which are within their area of operation; and
(iv) Prepare or review necessary legal documents such as: ordinances, and resolutions; all agreements of any nature; all real property instruments of any nature including purchase agreements and escrows, leases, covenants, deeds, easements and licenses; public works construction documents including bid specifications, contracts, bonds, insurance, liens and related documents; memorandum of understanding; franchise agreements; and all similar documents; and
(v) Represent and advise City on pending and potential litigation; notwithstanding the foregoing, it is expressly understood that BWS shall not be responsible for any pending litigation matter(s) handled by attorneys previously or otherwise employed by the City until all files have been transferred to BWS and BWS has specifically appeared in the matter(s) as attorneys of record on behalf of City; and (vi) Hold weekly or other office hours at City Hall at a time agreed to with City Manager; and
(vii) Represent the City in front of any state or local legislative, administrative or regulatory entity or agency, as directed by the City Manager or City Council; provided, that such representation would be considered special services; and (viii) Monitor pending and current legislation and case law as appropriate; and (ix) Supervise outside legal services, if any.

B. BWS, as a full-service law firm, is prepared to, and will, provide representation to City in all of its legal affairs, including, but not limited to, municipal law, land use, environmental, toxics, water, tort defense, personnel, labor representation, code

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enforcement, criminal prosecution, economic development, housing, cable television, finance, franchising, contracts, enterprise and other matters, except where conflicts exist or where the City Council may otherwise direct. The city attorney shall represent City in all of the foregoing legal matters, and in initiating and defending all litigation unless otherwise directed by the City Council,
C. The city attorney will keep City informed as to the progress and status of all pending matters in accordance with such procedures as the City may establish from time to time. The city attorney is expected to manage, control and oversee the delivery of legal services in a competent, professional, and cost-effective manner. All legal services shall be properly supervised and all personnel shall be qualified to handle the work assigned.

If outside special counsel is retained, unless otherwise directed by the City Council, such special counsel shall be supervised by the city attorney.

D. All legal services shall be coordinated under the direction of the City Manager. Notwithstanding any other provision contained herein, any legal services can only be authorized by the City Council or City Manager. Nothing in this Agreement shall be construed in any manner as limiting the ultimate and absolute discretion of the City Council, at any time, to assign or reassign legal matters of City from or to BWS.

3. CITY DUTIES
City agrees to provide such information, assistance, cooperation, and access to books, records, and other information, as is necessary for BWS to effectively render its professional services under this Agreement. To the extent City desires services to be rendered on site, City, at City's expense, will make available sufficient office space, furniture, telephones, computers, facsimile machines, and secretarial support, as approved by the City Manager, as may be necessary therefor. City further agrees to abide by this Agreement, and to timely pay BWS’s bills for fees, costs, and expenses. In addition, City understands that the fee structure herein represents a blending of rates, with certain services offered at discounted rates, on the assumption that, due to the volume of work, other services will be rendered at higher rates. Therefore, insofar as possible and unless BWS lacks the experience, capability or resources, it is the intent of the parties hereto that all matters of City requiring the rendition of legal services shall be performed by BWS, except as otherwise specifically provided or reserved below or specifically directed by City Council. BWS shall not provide insurance defense legal services, as long as City is a member of a joint powers insurance authority or similar entity which provides claims management and insurance defense, unless BWS is a contracted

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entity of such joint insurance authority, and use of BWS will not cost City more than use of a local firm providing similar services (i.e., no travel time for local court appearances).

However, nothing in this Section, or any other part of this Agreement, shall be construed in any manner as limiting the ultimate and absolute discretion of the City Council, at any time, to assign or reassign legal matters of City from or to BWS. The City specifically reserves the right to select bond counsel of its own choosing or any specialty counsel, if it deems such selection in the best interests of City.

4. PERSONNEL
Assignments may be modified as provided in Section 1 above and except as so provided, BWS will exercise its discretion to utilize whichever attorney(s) (and staff) it determines to be best suited to its rendition of legal services under this Agreement, consistent with the competent and efficient rendering of legal services, and with a view toward rendering such services in an economically efficient manner.

5. COMPENSATION
BWS’s fees will be charged on an hourly basis for all time actually expended. The compensation schedules are set forth in Exhibits "A" and "B" attached hereto and incorporated herein by this reference. Blended rates are computed based upon the hours of service irrespective of the rate of the attorney. Blended rates are also shown for legal assistants, who shall be used only for matters outside the capabilities of the City's in house Legal Assistant/Deputy City Clerk, as reasonably determined by the City Attorney, after consultation with the City Manager. BWS shall use City's in house Legal Assistant/Deputy City Clerk to the maximum extent feasible to limit City's legal expenses.

In addition to providing legal assistant services and other duties, the Legal Assistant/Deputy City Clerk shall continue to be assigned to prepare Closed Session Agendas, handle Public Records Act requests and coordinate insurance, Risk Management, claims against the City, Worker's Compensation claims, and Code Enforcement, all under the direction of the City Attorney.

In general, the arrangement is that there is a base amount of hours which are significantly discounted and referred to as the general retainer hours. This includes general services, attending public meetings, preparing ordinances and resolutions, giving general advice to City departments and similar services. A higher blended rate is charged after the retainer hours are exceeded. Special services, including a broad range of categories (litigation, labor negotiations and disciplinary hearing, redevelopment, housing, toxics, refuse, cable and enterprise (except water wastewater and harbor)),

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which would otherwise be likely to be contracted out as special services at higher rates, are billed at a higher blended rate. The specific terms are set forth below in the exhibits.

After reviewing fees in light of increases in expertise as well as other appropriate factors, BWS may request increases in fees, effective as of the beginning of each calendar year. However, such increases would be effective only upon the approval of the City Council.

6. DELETED

7. COSTS AND OTHER CHARGES
BWS may incur various costs and expenses in rendering the legal services required by this Agreement which, if customary and necessary for the performance of legal services hereunder, shall be reimbursable by City. These costs and expenses are described in more detail in Exhibit "B." City agrees to reimburse BWS for these costs and expenses in addition to the hourly fees for legal services. Reimbursable costs shall not include any overhead or administrative charge by BWS or BWS’s cost of equipment or supplies except as provided herein.

BWS may determine it necessary or appropriate to use one or more outside investigators, consultants, or experts in rendering the legal services required (particularly if a matter goes into litigation). City will be responsible for paying such fees and charges.

BWS will not, however, retain the services of any outside investigators, consultants, or experts without the prior agreement of City. BWS will select any investigators, consultants, or experts to be hired only after consultation with City.

The cost and expenses referred to herein include certain travel expenses; transportation, meals, and lodging; when incurred on behalf of the client. Generally, except in connection with litigation (travel costs to court and for discovery are chargeable), these will only be charged when outside of the area, and only with the prior agreement of City.

Finally, periodically, when on-site, BWS personnel may be required to make local and long-distance telephone calls, or make photocopies, or incur other expenses on behalf of the City as well as other clients. BWS will not be charged for such expenses and, in exchange, will not charge the City for calls made from our office or other locations to the City.

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8. STATEMENTS AND PAYMENT
BWS shall render to City a statement for fees, costs, and expenses incurred on a periodic basis (generally monthly). Such statement(s) shall indicate the basis of the fees, including the hours worked, the hourly rate(s), and a brief description of the work performed. Separate billing categories can be established to track costs associated with City funding categories or to track project costs, or such other basis as the City may direct.

Reimbursable costs shalt be separately itemized.

Payments shall be made by City within thirty (30) days of receipt of the statement, except for those specific items on an invoice which are contested or questioned and are returned by City with a written explanation of the question or contest, within thirty (30) days of receipt of the invoice. Payments made more than thirty (30) days after the due date shall draw interest at the legal rate.

9. PROHIBITION AGAINST SUBCONTRACTING OR ASSIGNMENT
The experience, knowledge, capability and reputation of BWS, its partners, associates, and employees, was a substantial inducement for City to enter into this Agreement. Therefore, BWS shall not contract with any other person or entity to perform, in whole or in part, the legal services required under this Agreement without the written approval of City. In addition, neither this Agreement, nor any interest herein, may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily, or by operation of law, whether for the benefit of creditors, or otherwise, without the prior written approval of City. Adding attorneys to BWS, changes in the partnership, name changes and similar changes shall not be deemed a transfer or assignment requiring approval of City or amendment hereof.

10. INDEPENDENT CONTRACTOR
BWS shall perform all legal services required under this Agreement as an independent contractor of City, and shall remain, at all times as to City, a wholly independent contractor with only such obligations as are required under this Agreement.

Neither City, nor any of its employees, shall have any control over the manner, mode, or means by which BWS, its agents or employees, render the legal services required under this Agreement, except as otherwise set forth. City shall have no voice in the selection, discharge, supervision or control of BWS employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service.

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11. INSURANCE
BWS shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement, including any extension thereof, the following policies of insurance:
(a) Comprehensive General Liability Insurance. A policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than a combined single limit of One Million Dollars ($1,000,000.00), Two Million Dollars ($2,000,000.00) aggregate, and One Million Dollars ($1,000,000.00) products and completed operations.
(b) Workers' Compensation Insurance. A policy of Workers' compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both BWS and City against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Contractor in the course of carrying out the work or services contemplated in this Agreement. (c) Automobile Insurance. A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than a combined single limit liability of One Million Dollars ($1,000,000.00). Said policy shall include coverage for owner, non-owner, leased and hired cars.
(d) Errors and Omissions Insurance. A policy of professional liability issuance written on a claims made basis in an amount not less than Three Million Dollars ($3,000,000.00).

The City shall be a Certificate Holder for all of the above named insurance policies.

Except for the policy of professional liability insurance, all of the above policies of insurance shall be primary insurance and shall name City, its officers, employers and agents as additionally insured. Except for the policy of professional liability insurance, the insurer shall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. Except for the policy of professional liability insurance, all of said policies of insurance shall provide that said insurance may not be amended or canceled without providing thirty (30) days prior written notice by registered mail to the City. In the event any of said policies of insurance are

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cancelled, the attorney shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the City. Failure to do so is cause for termination.

12. INDEMNIFICATION
A. BWS agrees to indemnify City, its elected and appointed officials, officers, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of BWS, its agents, employees, subcontractors, or invitees, provided for herein or arising from the acts or omissions of BWS hereunder, or arising from BWS's performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the negligence or willful misconduct of City, its officers, agents or employees.

B. City acknowledges that BWS is being appointed as city attorney pursuant to the authority of Government Code Section 36505, and has the authority of that office.

Accordingly, the City is responsible pursuant to Government Code Section 825 for providing a defense for the city attorney for actions within the scope of its engagement hereunder. Therefore, City agrees to undertake its statutory duty and indemnify BWS, its officers and employees against and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs penalties, obligations, errors, omissions or liabilities (herein "claims or liabilities") that may be asserted or claims by any person, firm or entity arising out of or in connection with the work, operations or activities of BWS within the course and scope of its employment hereunder, but nothing herein shall require City to indemnify BWS for liability arising from its own negligence or misconduct. In connection herewith:
(i) City will promptly provide a defense and pay any judgment rendered against the City, its officers, agency or employees for any such claims or liabilities arising out of or in connection with such work, operations or activities of City hereunder;
(ii) In the event BWS, its officers or employees is made a party to any action or proceeding filed or prosecuted against City for such damages or other claims solely arising out of or in connection with the work operation or activities of City hereunder, City agrees to jointly defend BWS, its officers or employees;

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provided, that if a court determines a conflict of interest exists that would preclude such joint representation, then City may provide for a defense under a reservation of rights with conflict counsel that is mutually acceptable to City and BWS.

13. NOTICES
Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified, or by delivery of same into the custody of the United States Postal Service, or its lawful successor; postage prepaid and addressed as follows:

CITY: CITY OF MORRO BAY
595 Harbor Street
Morro Bay, CA 93442
(805) 772-6200
Attention: City Manager
ATTORNEY: BURKE, WILLIAMS & SORENSEN, LLP
18300 Von Karman Avenue, Suite 650
Irvine, CA 92612
(949) 863-3363 (office)
Attention: Chris F. Neumeyer
Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notice given by deposit with the United States Postal Service shall be deemed to have been given two consecutive business days following the deposit of the same in the custody of said Postal Service. Either party hereto may, from time to time, by written notice to the other, designate a different address or person which shall be substituted for that specified above.

14. NON-DISCRIMINATION
In connection with the execution of this Agreement, BWS shall not discriminate against any employee or applicant for employment because of race, religion, marital status, color, sex, handicap, sexual persuasion, or national origin. BWS shall take affirmative action to ensure that applicants are employed, and that employees are treated

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fairly during their employment, without regard to their race, religion, color, sex, marital status, handicap, sexual persuasion, or national origin. Such actions shall include, but not be limited to the following: employment, promotion, demotion, transfer, duties assignment; recruitment or recruitment advertising; layoff of termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

15. TERM, DISHARGE AND WITHDRAWAL
This Agreement shall continue in effect, subject to modification of fees as provided in Section 5, until terminated by either party hereto. City may discharge BWS at any time.

The city attorney shall have no right to hearing or notice, and may be discharged with or without notice. BWS may withdraw from City's representation at any time, to the extent permitted by law, and the Rules of Professional Conduct, upon at least thirty (30) days notice to City.

In the event of such discharge or withdrawal, City will pay BWS professional fees and costs, in accordance with this Agreement, for all work done (and costs incurred) through the date of cessation of legal representation. City agrees to execute, upon request, a stipulation in such form as to permit BWS to withdraw as City's attorneys of record in any legal action then pending. BWS shall deliver all documents and records of City to City, or to counsel designated by City, and assist to the fullest extent possible in the orderly transition of all pending matters to City's new counsel.

16. CONFLICTS
BWS has no present or contemplated employment which is adverse to the City.

BWS agrees that it shall not represent clients in matters either litigation or non-litigation against the City. However, BWS may have past and present clients or may have future clients, which, from time to time, may have interests adverse to City, and BWS reserves the right to represent such clients in matters not connected with its representation of the City.

If a potential conflict of interest arises in BWS's representation of two clients, if such conflict is only speculative or minor, BWS shall seek waivers from each client with regards to such representation. However, if real conflicts exist, BWS would withdraw from representing either client in the matter, and assist them in obtaining outside special counsel.

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17. INTERPRETATION OF AGREEMENT AND FORUM
This Agreement shall be construed and interpreted both as to validity and performance of the parties in accordance with the laws of the State of California. This Agreement is entered into and is to be performed in the County of San Luis Obispo. In the event of any dispute hereunder, the venue shall be the Superior Court, San Luis Obispo County, or such other county, closest in proximity to San Luis Obispo County, to which that Superior Court may change the venue of such dispute.

18. INTEGRATED AGREEMENT; AMENDMENT
This Agreement contains all of the agreement of the parties and cannot be amended or modified except by written agreement. No prior oral or written understanding shall be of any force or effect with respect to those matters covered in this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.

19. ANNUAL EVALUATION
In March of each year during the term of this Agreement, the City Attorney shall meet with the City Council for an evaluation of BWS’s performance under this Agreement.

Such evaluation shall be scheduled by the City Attorney, in coordination with the City Manager, as a closed session.

20. CORPORATE AUTHORITY
The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that in so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement.
[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

Dated: CITY OF MORRO BAY
By:

Carla Wixom, Mayor
Dated:

BURKE, WILLIAMS & SORENSEN, LLP
By:

John Welsh, Managing Partner

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EXHIBIT "A"

FEE ARRANGEMENT
(1) The payment for up to 50 hours of general legal service (Monthly Hour Limit) shall be billed at the rate of Two Hundred Nineteen Dollars ($219) per hour. General services are everything other than special services, insurance defense, private party reimbursement and public financing, and include up to 3 hours of reimbursement for travel to City from respective BWS office, as well as travel from City returning to respective BWS office, at the request of the City for legal services, unless otherwise provided for, and notwithstanding any provision to the contrary.
(2) General legal services over the Monthly Hour Limit will be billed at the rate of Two Hundred Forty-two Dollars ($242) per hour.
(3) Special legal services shall include litigation matters, public finance, disciplinary actions or hearings, labor negotiations, economic development, housing, cable television, toxics, refuse, franchising, enterprise activities (not including water, wastewater and harbor) and any major contract negotiation involving more than 10 hours (with City Manager approval). Except for insurance defense, code enforcement, and public finance, all such matters shall be billed at the rate of Two Hundred Ninety-four Dollars ($294). (4) Insurance defense litigation and code enforcement will be billed at a reduced rate of Two Hundred and One Dollars ($201) per hour.
(5) Where City's legal costs are recovered through a private party, such as a developer, the hourly rate will be Three Hundred Twenty-Two Dollars ($322) per hour. (6) In addition to the foregoing, the Firm would be reimbursed for out-of-pocket expenses as described in the attached Exhibit B.
(7) The blended rate for legal assistants (Paralegal/Law clerks), irrespective of matter, shall be One Hundred Sixty-seven ($167) per hour, and for document clerks shall be Ninety-two Dollars ($92) per hour.

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EXHIBIT "B"

STATEMENT OF BILLING PRACTICES
The Firm's fees are charged on an hourly basis for all time actually expended and are generally billed monthly with payment due within thirty (30) days after the date of the bill. However, where contract rates are established, they prevail over design rates. The current hourly design rate for the attorneys and staff working on this matter will be set forth in the billing statement. Annually, you will be provided with the prevailing hourly design rates for the attorneys who will spend the predominate amount of time on this matter. It should be understood that hourly rates are reviewed, and when appropriate, adjusted to reflect increases in seniority and experience as well as inflationary factors.

These increases are generally made on an annual basis effective at the beginning of each calendar year.

The Firm will incur various costs and expenses in performing legal services. These costs and expenses are separately billed to the client and include fees fixed by law or assessed by public agencies, litigation costs including deposition, reporter fees, and transcript fees, long distance telephone calls, messenger and other delivery fees, postage, photocopying and other reproduction costs, staff overtime when necessitated and authorized by the client, and computer-assisted research fees when authorized by the client, all based on the actual and reasonable cost (mileage, reproduction and other costs are periodically adjusted in accordance with the Firm's actual costs).

Travel costs including mileage (current IRS rate), parking, airfare, lodging, meals, and incidentals are charged in connection with administrative or judicial proceedings, or when traveling outside of Los Angeles County. Travel time may also be charged in connection with such proceedings. In addition, the client will be responsible for paying the fees of consultants and other outside experts who are retained after consultation with the client.

It is understood that Firm will generally not charge for mileage or travel time between our office and City facilities, nor for telephone calls made to the City or to San Luis Obispo County. In exchange, Firm shall not be charged for calls made or received at the City, whether local or long-distance, or for copying charges since copying onsite will reduce the charge to the client. Firm shall not charge for meals and per diem incurred in connection with attendance at Council meetings or office hours, Overnight accommodations (hotel) may be charged only if the overnight is (i) in order to enable Firm to perform services for City the following day in Sari Luis Obispo County and approved

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by City Manager in advance or (ii) the length of the Council meeting extends beyond 11:00 p.m. The monthly billing statements for fees and costs shall indicate the basis of the fees, including a detailed and auditable breakdown of the hours worked, the billable rates charged and description of the work performed. All bills are expected to be paid within thirty (30) days of the date of the billing statement. In the event any statement remains unpaid for more than thirty (30) days after the date of the statement; interest thereon at the rate of ten percent (10%) per annum shall be due and payable thereafter on the unpaid balance.

Registration fees for attorneys attending conferences and seminars are paid by the Firm and are never charged to the City (unless expressly requested by the City).

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Burke, Williams & Sorensen, LLP
Firm Overview
For nearly one hundred years, Burke, Williams & Sorensen, LLP has served the public agencies and private business entities of California. Today, with over one hundred seventy attorneys and ten offices throughout California, we are fully prepared to meet your legal needs.

Burke originated as a law firm in 1927, founded by two brothers, Louis H. Burke and Martin J. Burke, and Thomas P. White. From its inception, the firm specialized in corporate law and business litigation. In 1938, the firm also embarked on what was at the time a unique specialty - the representation of public entities. Always striving for excellence in its attorneys, two of the firm’s founding partners, Louis H. Burke and Thomas P. White, went on to serve as California Supreme Court Justices.

Throughout its growth over the years, and into the new millennium, Burke has retained its roots in real estate and business law and litigation, and as one of the preeminent firms in the fields of public law, education law, and labor and employment law.

Our clients value not only our expertise and efficiency, but also our integrity and responsiveness. In each of our eight primary practice groups, our only focus is to serve our clients so that they may receive the very best possible result.

At Burke, Williams & Sorensen, LLP, we provide our broad base of clients with superior, cost-efficient legal services tailored to the particular demands of working and doing business in the nation’s most dynamic region: California.

In all our work, and in all our areas of legal expertise, our growth and strength have derived from a commitment to serve our clients while following sound business practices in an environment that celebrates diversity and fosters professional development.

Our reputation, however, is based on more than just our flexible, task-oriented approach to providing high-quality legal services rooted in our attorneys’ expertise, skills, and performance. Our clients also value us for our honesty, reliability, accessibility, efficiency, and prompt responsiveness, all qualities that form a foundation for the most important factor of all when you choose legal representation: Trust.

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Burke assists our clients with complex, multi-disciplinary issues and responds to our clients’ needs in markets across the state and nationally. Clients benefit from our depth and breadth of experience in key
industry sectors, including public law, retail, education, insurance and health care.

Construction Law
Burke is home to a nationally-recognized construction
law and litigation practice, representing public and
private clients in all facets of the construction process.

We have handled cases involving virtually every type
of public or private construction project, including
power plants, highways, hospitals, schools, jails, parking facilities, libraries, hotels, shopping malls, sports
facilities, wastewater facilities, pipelines, and many
more.

Education Law
Our Education Law Practice Group provides
comprehensive representation to public school
districts, community college districts, private schools, private vocational schools, and private colleges.

In serving these educational institutions, we are
committed to helping them fulfill their respective
missions by providing strong advocacy and sound legal
advice.

Environmental, Land Use, and Natural Resources
Burke’s Environmental Group is uniquely positioned
to address clients’ projects, whether large or
small, on every phase – from idea, to planning, to
implementation, to successful conclusion. Whether you
are faced with an environmental, planning, land use,
NEPA, CEQA, water, contract, or funding issue, we can
assist you in effectively and efficiently achieving your goal.

Insurance Coverage and Litigation
Burke has a nationally renowned insurance coverage,
litigation, and appellate practice in first and third-party insurance matters. Burke’s litigators specialize in
advising clients and litigating cases from start to finish in the areas of bad faith and punitive damages; life, health, disability, and accidental death and dismemberment
insurance; long-term care and hospital indemnity
insurance; ERISA pension and welfare benefit plans;
property, casualty, and liability insurance; professional E&O insurance; health insurance; environmental
coverage; complex litigation; class actions; and FINRA
and financial services.

Labor and Employment Law
Our Labor and Employment Law practice group is
dedicated to helping California employers solve their
labor and employment issues in a strategic, creative,
and cost-effective manner.

At home in the courtroom, at the bargaining table,
and providing day-to-day preventive counseling and
training, we provide expert advice and litigation skills Litigation
Burke maintains a full-service litigation practice,
covering over a dozen specialized areas of the law.

Burke has handled cases in a broad spectrum of
subject areas, including: contract disputes and
general commercial litigation, public law litigation, real estate, commercial tenancies, labor and employment,
construction, environmental and land use, insurance,
constitutional law, securities, bankruptcy, financial
services, business torts, personal injury and products
liability, intellectual property, and professional
malpractice.

Public Law
Our public law practice began in 1938 when founding
partner Louis H. Burke was appointed as City Attorney
of the City of Montebello. Today, our public law practice delivers a full range of services and represents the
spectrum of public and quasi-public entities including
municipalities, special districts, counties, joint powers authorities, and departments of the State, as well
as special purpose entities such as redevelopment
agencies, economic development corporations, and
affordable housing non-profits.

Real Estate and Business Law
Recognizing that real estate issues often require local resources and expertise in many other areas of the
law, Burke builds cross-disciplinary teams according to clients’ needs. The team works effectively and efficiently across jurisdictions and practice areas drawing
upon expertise in specialty areas such as banking
and financial services, food and grocery services,
technology, and research and development.

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AGENDA NO: 9.b
MEETING DATE: November 12, 2024
Prepared By: AS____ Dept Review: __AS____
Acting City Manager Review: DM City Attorney Review:
__LNL____
Staff Report
TO: Honorable Mayor and City Council DATE: November 4, 2024 FROM: Airlin Singewald, Community Development Director
SUBJECT: Discussion on Potential Battery Energy Storage Systems (BESS) Urgency Ordinance

RECOMMENDED ACTION
Receive and file a staff report on a potential Battery Energy Storage Systems (BESS) project urgency ordinance and provide staff direction, as necessary.

ALTERNATIVES
There are no alternatives to the recommended action.

FISCAL IMPACT
Significant City staff time, including City Attorney involvement, would be required to prepare a BESS urgency ordinance and follow-up permanent ordinance. If the City Council directs staff to prepare an urgency ordinance, staff would return at a future Council meeting with an estimated budget, scope, timeline, and re-prioritization of workload to complete this work effort. An urgency ordinance would further require a set of findings of urgency that need to be made and supported by factual data.

DISCUSSION
Summary
On August 27, 2024, the City Council directed staff to agendize a future discussion regarding a potential BESS urgency ordinance.

Battery energy storage is a rapidly growing technology that presents unique land use planning issues for local jurisdictions. The State currently has 10,000 MW of battery storage capacity and a goal of 52,000 MW by 2024 for grid reliability. As more BESS projects move forward, more jurisdictions are developing local zoning regulations to prohibit or restrict the development of BESS projects. Like most jurisdictions, the City of Morro Bay’s zoning code does not contain a land use classification or any specific use standards (e.g., setbacks, etc.) for BESS projects.

An urgency ordinance would provide a temporary pause on the processing of new BESS projects to give the City time (up to 2 years) to develop a permanent BESS ordinance to protect public health and safety. As such, an urgency ordinance is not a separate work effort, but the

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predecessor to the development of a permanent ordinance. A permanent ordinance can take two forms. One is a permanent prohibition on future BESS projects. This is not recommended as it would effectively force BESS developers to use the AB205 opt-in certification program, bypassing local control and limiting the City’s influence on the outcome of the project and its community benefit. The second option is a permanent ordinance that allows for a BESS subject to a conditional use permit, locational restrictions, and development standards to address public safety and other community concerns; however, it should be noted, that even this second option does not prevent a future BESS application from bypassing local controls entirely through the State via the AB205 opt-in certification program.

The primary governing statute for urgency ordinances can be found at Government Code § 65858, which generally requires a “supermajority” vote (i.e., 4/5ths) of the Council and requires certain findings:
(c) The legislative body shall not adopt or extend any interim ordinance pursuant to this section unless the ordinance contains legislative findings that there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in that threat to public health, safety, or welfare.

If the Council directs staff to return with an urgency ordinance, the Council will also need to give staff direction on a framework for a permanent ordinance.

Applicability of Current Zoning Code to a BESS Project
The City’s zoning code does not currently contain a land use classification or any specific permit requirements or use standards for development of a BESS. In cases where a specific land use is not defined, the zoning code authorizes the Community Development Director to assign the land use to a classification that is “substantially similar in character.” The zoning code further states that “Land uses not listed…or not found to be substantially similar” to classified uses are prohibited.

Thus, if the City receives a future BESS application, the Community Development Director would need to determine if it’s substantially similar in character to a listed use or prohibited citywide. The Director’s decision on this would be appealable to the Planning Commission.

The use classification in the zoning code most similar to a BESS is “Public Works and Utilities,” defined as follows:

Generating plants, electric substations, solid waste collection, including transfer stations and materials recovery facilities, solid waste treatment and disposal, water or wastewater treatment plants, corporation yards, equipment service centers, and similar facilities that primarily provide maintenance and repair services, storage facilities for vehicles and equipment, their associated offices, and similar facilities of public agencies or public utilities.

The zoning code allows for “Public Works and Utilities” in residential, commercial, and industrial zoning districts. A conditional use permit is needed for Public Works and Utilities in the visitor serving commercial and all residential zoning districts. However, this use classification does not contain any specific use standards that are relevant to the development of a BESS project.

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If the City determines that a BESS is not substantially similar in character to a listed use classification, an applicant could still request a zoning code / LCP amendment to allow for a BESS on any site in the city. This would require approval from the City Council and Coastal Commission.

How did the City review the Vistra application without a BESS use classification or ordinance? The use classification was not part of the discussion on the Vistra BESS project because it already required a master plan and local coastal plan (LCP) amendment due to its location on the powerplant property. The master plan and LCP amendment would have assigned a BESS as an allowed use on the project site.

Potential Urgency Ordinance
The purpose of an urgency ordinance is to allow a city or county to take swift action to temporarily prohibit a certain land use when necessary to protect public health, safety, and welfare. An urgency ordinance is typically used as a stop gap while an agency develops permanent regulations for a new land use.

Section 65858 of the California Government Code sets forth the circumstances under which a city may adopt an urgency ordinance. This section states in part:

Without following the procedure otherwise required prior to the adoption of a zoning code, the legislative body of a county, city, including a charter city, or city and county, to protect the public safety, health, and welfare, may adopt as an urgency measure an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time. That urgency measure shall require a four-fifths vote of the legislative body for adoption.

An ordinance adopted pursuant to Section 65858 is effective for a period of 45 days from the date of adoption. With proper notice, the City Council may, by four-fifths vote, extend the interim ordinance for 22 months and 15 days after notice is similarly provided prior to the hearing at which the extension is enacted. An interim zoning ordinance must contain legislative findings “that there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in that threat to public health, safety, or welfare.”
Permanent BESS Ordinance
As described above, an urgency ordinance is a temporary stop gap to protect the public from an immediate threat, while a city prepares a permanent ordinance to protect the public. If the Council directs staff to prepare an urgency ordinance, the Council will need to also provide direction on a permanent ordinance. The two main options with pros and cons for each include:

1. A permanent prohibition on BESS projects. This option provides the community with a guarantee that a future BESS application will not be processed by the City. However, it does not prevent a future BESS application from being developed near or adjacent to the city-limits or approved in the city-limits by the State through the AB205 opt-in certification

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program. Effectively, this option would force BESS projects to bypass local zoning; reduces the City’s influence over future BESS applications; and closes the door to potential BESS applications that are potentially sited and designed to minimize community impacts while providing economic and fiscal benefits to residents.

2. A permanent BESS ordinance. This option would create an ordinance that allows for BESS projects in the city-limits subject to standards such as:
a. Requiring Conditional Use Permit approval for all BESS projects. b. Identifying the zoning districts and/or other restrictions (e.g., an overlay) to regulate where future BESS applications can be located.
c. Establishing a minimum setback requirement from residential and other sensitive land uses.
d. Identifying certain safety standards, such as requiring enclosures. e. Identifying application content requirements – e.g., offsite consequences analysis, fiscal/economic studies, etc.

This option sets clear expectations for the community and BESS applicants regarding the City’s standards for the location and design of future BESS projects. The City could still require additional information and/or more restrictive measures through the discretionary permit and environmental review process on a case-by-case basis. This option would provide BESS projects a local path for approval, set clear guidelines to protect public safety, and ensure the City has a seat at the table to negotiate for community benefits.

However, it should be noted, that even this second option does not prevent a future BESS application from bypassing local controls entirely through the State via the AB205 opt-in certification program.

CONCLUSION
The purpose of this item is to inform the City Council and public about the process for adopting a BESS urgency ordinance, per Council direction on August 27, 2024.

The City’s zoning code does not contain a use classification or specific use standards for the development of a BESS.

State law allows a city or county to adopt an urgency ordinance to swiftly enact a temporary pause on a problematic land use, posing an immediate threat to health and safety, while the agency studies the effects of such land use.

An urgency ordinance will be effective for 45 days, unless extended with a four-fifths vote of the Council at a properly noticed hearing, for a maximum of 22 months and 15 days (2 years total).

The purpose of the urgency ordinance extension would be to allow staff to prepare a permanent ordinance to address the problematic land use and bring it through the usual ordinance process, including public outreach and noticed hearings before the Planning Commission, City Council, and Coastal Commission.

If the Council directs staff to return with an urgency ordinance, staff recommends the Council also provide direction on the framework for a permanent ordinance. Staff will also return with an estimated budget, scope, timeline, and re-prioritization of workload to complete this work effort.

ATTACHMENT(S)

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None

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Prepared By: ___KF____ Dept Review: ___AS__
Acting City Manager Review: __DM___ City Attorney Review: LNL Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2024 FROM: Airlin Singewald, Community Development Director
Kim Fowler, Planning Manager
SUBJECT: General Plan Annual Progress Report for Reporting Year 2023

RECOMMENDED ACTION
Review and accept the General Plan Annual Progress Report.

ALTERNATIVES
None

FISCAL IMPACT
None

SUMMARY
All jurisdictions within the State of California are required to provide the Governor’s Office of Planning and Research (OPR) an Annual Progress Report (APR) on its General Plan documenting implementation over the previous years’ 12-month reporting period. This staff report provides that documentation.

BACKGROUND:

The City Council adopted a comprehensive update to its General Plan on May 26, 2021 which combined the General Plan (GP) and Local Coastal Program Coastal Land Use Plan (LCP) into a combined document also known as Plan Morro Bay. The City’s GP/LCP is available online at https://www.morrobayca.gov/DocumentCenter/View/15424/Plan-Morro-Bay-GP-LCP-Final State law requires that a City’s General Plan have the following eight required Elements: Land Use, Circulation, Housing, Conservation, Open Space, Noise, Public Safety, and Environmental Justice, The City’s General Plan includes each of these eight Elements along with the following additional Elements: Community Design and Economic Development.

OPR provides annual updates and guidance to cities on the maintenance, required updates, and report of General Plans thereof. As a general law city, Morro Bay is required to provide an annual report to its legislative body on the status of our General Plan and its implementation under Government Code Section 65400. The annual report is intended to be a summary of activities for all elements that were implemented, reporting on planning activities undertaken.

DISCUSSION
The APR is organized into two sections: The first section covers the legal requirements of the APR and status of each of the General Plan Elements and any proposed General Plan amendments. The AGENDA NO: 9.c
MEETING DATE: November 12, 2024

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2 second section of the APR covers a summary of 2023 activity. Section 2 also includes the General Plan Implementation Table with a column identifying status of each Implementation Action. The Implementation Action items are part of Chapter 5 of the General Plan’s Implementation Strategy.

The implementation strategy provides a framework to coordinate citywide efforts to execute the policies identified throughout the plan and provides a structure for monitoring, maintain, and updating the document. For the reporting year 2023, the implementation table in this report includes the status and progress to date.

CONCLUSION
OPR requires that cities present the APR to the local legislative body for review and acceptance.

Staff recommends the City Council review and accept the APR for filing. Upon review of this item, the APR will be forwarded to OPR.

ATTACHMENT(S)

1. General Plan Annual Progress Report including Exhibit 1 General Plan Implementation Table Status and Exhibit 2 List of Major Development Applications for 2023.

ONLINE LINKS

1. Morro Bay General Plan/ Local Coastal Program Coastal Land Use Plan (LCP)

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General Plan Annual Progress Report - 2023 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year 1 SECTION 1 - INTRODUCTION
The General Plan Annual Progress Report (GP APR) is a report to the legislative body and public regarding the implementation of the General Plan. This report is a summary of activities for all elements that were implemented. The City of Morro Bay as a general law city is required to provide an annual report to the City Council on the status of its General Plan and its implementation under Government Code Section 65400.

A. PURPOSE OF THE GENERAL PLAN ANNUAL PROGRESS REPORT
Scope and Content
Reporting Period Type: Calendar year report
Reporting Period: January 1, 2023 – December 31, 2023
Date of Presentation/Acceptance: November 12, 2024
B. PURPOSE OF THE GENERAL PLAN
The General Plan is a city’s long-term blueprint for future development and for meeting our community’s long-term vision for the future. Pursuant to State law, the General Plan must accommodate the required amount of projected population growth the State of California estimates for each city.

C. STATUS OF ADOPTED GENERAL PLAN AND STATUS OF

AMENDMENTS
State law allows the General Plan (GP) to be amended four times annually. This allows the General Plan to remain a current document responsive to the community’s needs.

The City of Morro Bay completed a comprehensive update to its entire General Plan which was adopted by City Council on May 25, 2021. As a combined General Plan/Local Coastal Plan, it was subsequently certified by the California Coastal Commission on August 12, 2021. The below table include the GP update history organized by each General Plan Element.

Element Name: Date of Last
Update:

Description

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City of Morro Bay
2 Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year Land Use 2021 The Land Use Element regulates how land
in the City will be used in a way that
maximizes public safety and social well-being, protects coastal resources, and benefits the local economy.

Community
Design
2021 – New
Optional
Element
The Community Design Element addresses
the components of Morro Bay’s unique
style that will be preserved and enhanced
through this LCP as the City changes over
time. This element focuses primarily on
building design, landscaping, scale, and
style.

Economic
Development
2021 – New
Optional
Element
This Element lays the groundwork for
improving and sustaining economic health
through 2040 through long-range policies
focused on supporting existing and new
local- and visitor-serving retail uses and
attracting and retaining jobs in the city.

The element may be implemented from
time to time by shorter-range 5- to 10-year
economic development strategies that
seek to accomplish portions of the long-term economic vision.

Circulation 2021 This element includes a description of the existing transportation network, parking
facilities in the coastal zone, the
transportation network diagram, and
multimodal transportation infrastructure.

It also covers key transportation issues in
Morro Bay and the goals and policies
which will guide efforts by the City,
developers, and officials to improve travel
mobility and efficiency in Morro Bay.

Noise 2021 The Noise Element is intended to serve as
Morro Bay’s general guide in public and
private development matters related to
outdoor noise. The purpose of this
element is to identify noise problems in the
community, protect sensitive noise
environments important to the

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General Plan Annual Progress Report - 2023 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year 3 community, establish a land use pattern
that minimizes the community’s exposure
to excessive noise, and identify noise
reduction strategies to address existing
and foreseeable noise problems.

Housing 2021 The balance between the city’s residents,
workforce, and economic growth is an
outcome of the Housing Element through
a long range plan that provides direction
towards creating greater access to housing
for people with low and moderate incomes
to fulfill that General Plan vision.

The Housing Element Annual Report
was submitted to the State Department
of Housing & Community Development
(HCD) on March 28, 2024. Report linked
here.

Conservation 2021 Conservation Element goals and policies seek to reconcile conflicts between
community resource demands and
conservation needs. The element also
discusses the community benefits derived
from these resources, such as healthy food
and clean water, climate change
mitigation, and recreation.

Open Space 2021 The Open Space Element establishes goals and policies to protect and conserve Morro
Bay’s open space resources and addresses
opportunities to expand the open space
system by assessing park and trail facilities,
coastal facilities, and recreation programs.

Public Safety 2021 – New
Optional
Element
This element places a specific focus on
climate change-related hazards and
policies that will prepare the City to
address the changes that are likely to come
from coastal hazards, including sea level
rise, and for future emergency situations,
but also includes information on other

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City of Morro Bay
4 Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year potential environmental hazards and
emergency response procedures.

Environmental
Justice
2021 – New
Optional
Element
The Environmental Justice Element
addresses the social aspects of community
design. It anticipates the ways in which the
built environment affects the overall
wellbeing of residents and visitors and
allows needs to be met easily and
affordably. A person’s social, physical, and
mental well-being are inexorably linked,
and this element touches on all three
aspects and includes policies to improve
the conditions that influence them.

D. PROPOSED GENERAL PLAN AMENDMENTS
No amendments to the General Plan were proposed or approved in 2023.

SECTION 2 – SUMMARY OF 2023 ACTIVITY
A. IMPLEMENTATION ACTIVITY SUMMARY
See attached table (General Plan Implementation Table – Exhibit 1) B. LOCAL LEGISLATIVE PRIORITIES IN 2023
Annually, the City Council completes a goal-setting process to determine major city goals in response to community input and public comment. In 2023, the major City goals were:

Public Infrastructure

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 and accessible parking.

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General Plan Annual Progress Report - 2023 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year 5 Economic Vitality

1. Pursue grant writing opportunities.

2. Evaluate opportunities for City-owned properties.

3. Streamline permit process for residential and commercial development.

Housing Homelessness Response

1. Identify low-income housing opportunities.

2. Explore achievable options for unhoused residents.

3. Speed up processing of ADU permits to increase availability of affordable housing.

Community Engagement

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.

C. MASTER PLAN CREATION AND/OR UPDATES
In 2022 the City of Morro Bay started development of a Master Plan for the Morro Bay Power Plant Site. This continued into 2023. The Master Plan project for the property located at 1290 Embarcadero was a result of General Plan/LUP Policy LU-5.4 which requires creation of a master plan for the redevelopment of the former Vistra power plant site and surrounding area. Vistra has an open application for a coastal development permit and conditional use permit to development a 600-MW battery

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City of Morro Bay
6 Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year energy storage system project which triggered the requirement for creation of the Master Plan as specified in the policy below. The city has held one community meeting for the Master Plan, and a community survey has been released to solicit feedback on attributes of the future Master Plan.

D. MAJOR DEVELOPMENT APPLICATIONS PROCESSED
See attached table (Exhibit 2) which includes all projects reviewed or open by Planning Commission in 2023.

E. INTERAGENCY/ INTERGOVERNMENTAL COORDINATION

EFFORTS
The City of Morro Bay participates on intergovernmental coordination efforts with the County of San Luis Obispo. This includes the County’s Air Pollution Control District (APCD), Integrated Waste Management Authority (IWMA), County Planning, County Public Works, County Sheriff, and other agencies. Initiatives include greenhouse gas reduction measures, education on solid waste recycling, affordable housing and homelessness response measures, mutual aid agreements for emergency response, and participation in the Broadband & Digital Roundtable.

F. IMPLEMENTATION OF MITIGATION MEASURES FROM

GENERAL PLAN FINAL ENVIRONMENTAL IMPACT REPORT
The Mitigation Monitoring and Reporting Program from the General Plan Final Environmental Impact Report outlines the various mitigation measures, action required, monitoring frequency, and responsible agency or party. Mitigation measures are implemented according to each of the identified impacts.

G. DEPARTMENT GOALS, OBJECTIVES, ACTIVITIES, AND

RESPONSIBILITIES AS RELATED TO LAND USE PLANNING
The goal for the Community Development Department is to provide the community with direction and guidance to achieve the goals and objectives set forth in the General Plan and Local Coastal Plan.

The main objective for the department is to create and facilitate an effective partnership with the residents and businesses in the community by providing an open and transparent planning process with an emphasis on citizen involvement and

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General Plan Annual Progress Report - 2023 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year 7 participation that results in a fair, objective, predictable, and accountable planning process.

The Planning Commission is a five member voting body appointed by the City Council.

The adopted plans and City documents used by the Planning Commission in considering permit application and policy development is here. The function of the Planning Commission is to:
o Develop a general plan and recommend its adoption by the City Council o Maintain the general plan after its adoption by the City Council o Develop specific plans as may be necessary to implement the general plan o Periodically review the capital improvement program of the city for recommendations to the City Council
H. CUSTOMER SERVICE IMPROVEMENTS AND METHODS
The City of Morro Bay has implemented an Electronic Plan Review (EPR) program for applicants to submit both building and planning permit plans online and streamline the application process, reduce paper waste, reduce expense, and reduce the inconvenience of printing and shipping multiple copies of construction plans.

Electronic plan review also allows for concurrent review by staff which reduces plan review times and creates a consolidated corrections list that can be used to track and respond to comments.

Office hours were also extended; the city is now open Mondays through Thursdays 8:00 AM – 4:00 PM instead of previously closing at 1:00 PM.

I. GRANT ADMINISTRATION
The City did not receive state or federal grants to assist with General Plan implementation.

J. TECHNOLOGY REVIEW INCLUDING WEBSITE UPDATES
The City has continued to provide regular updates via the City website including refinements to the Community Development Department page. These include:

1. Creation of a new Climate Action Plan website at
www.morrobayca.gov/climateaction which includes public information update and resources available to the public.

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City of Morro Bay
8 Plan Morro Bay
General Plan Annual Progress Report – 2023 Reporting Year

2. Maintenance of the Department’s Current Planning Projects page which includes public information updates on high profile projects of interest at www.morrobayca.gov/currentplanningprojects.

3. Announcement of Citywide projects and initiatives through use of the Hot Topics alert feature on the main City website at www.morrobayca.gov.

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Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

LU-2 Goal LU-1 Land Use
Establish zoning districts and development standards to correspond with land use designations and character areas.

Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

LU-3 Goal LU-1 Land Use
Modify zoning and development standards to allow and
facilitate tiny houses, co-housing, live/work housing, and intergenerational housing.

Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

LU-4 Goal LU-1 Land Use
Designate base zones during the Zoning Code update for the Beach Street Specific Plan area which protect the existing unique mix of land uses.

Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

LU-5 Goal LU-1 Land Use
Continue to implement the North Main Street Specific Plan through the actions in this plan and the actions in the specific plan.

Process Community Development General Fund Concurrent
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

LU-6 Goal LU-3 Land Use
When the city's population reaches 11,700, reopen public discussions about the Measure F 12,200-person limit and undertake a process to either affirm, amend, or repeal Measure F. At that time, consider exempting affordable housing projects from established population limits.

Process City Council General Fund As Needed -
LU-7 Goal LU-4 Land Use
As part of the Zoning Code update, maintain land use and zoning that protects visitor-serving and coastal dependent uses, including commercial fishing.

Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

LU-8 Goal LU-4 Land Use
Clarify the meaning of “clearly incidental” in the Zoning Code and provide additional certainty and consistency in the development review process for properties in the Measure D zone/Commercial/Recreational Fishing land use designation.

Zoning Code Update Community Development General Fund Once - LU-9 Goal LU-4 Land Use
Update the Fishing Community Sustainability Plan every five years.

Process Harbor General Fund; Grants Periodic -
LU-10 Goal LU-4 Land Use Zoning Code Update Community Development General Fund Modify zoning and development standards to allow interim uses in areas designated for coastal-dependent uses until the existing owners have an approved coastal-dependent
development. The City considers this type of interim temporary use exempt from coastal development permits. Interim uses shall be limited to projects which a) have relocatable structures, b) are compatible with the character of surrounding areas, c) preserve established viewsheds, and d) are limited to the following uses: • Visitor
access, paths, lookout points
• Recreational vehicle parking
• Automobile parking
• Picnic areas
• Community gardens
• Campgrounds
• Restrooms and service facilities
• Playgrounds
• Temporary boat storage
• Temporary boat repair area
• Ancillary uses for the above
• Other uses serving visitors or commercial fishing which do not require permanent structures
Concurrent -

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 LU-12 Goal LU-6 Land Use
Perform a survey of all hotels and motels in the city every two years. The survey should include documentation of the number of accommodations (for 2-4 person occupancy) and their
average costs. Upon completing the survey, use the established City threshold to determine what proportion of hotels and motels can be considered low cost visitor-serving
accommodations. This process will be completed between
January and April to capture realistic peak-season prices. Notice that the survey will be completed and the threshold and proportion information will be updated based on the survey will be given three months in advance of conducting the survey.

Notice will be given to all accommodations owners and any applicants who have submitted applications for hotels or motels in the last year. Once the survey is updated it will be sent to this group as well.

Process Community Development General Fund; TOT Periodic - LU-13 Goal LU-6 Land Use
New mid-price hotel and motel projects that are developed on state-owned tidelands and do not have lower-cost
accommodation options shall incorporate non-overnight
facilities and amenities, either within or as a component of the development, which will be generally available for passive public use. Such amenities may include public plazas and spaces, restaurants, retail units/shops, gardens, viewing areas, free Wi-Fi access, bike parking facilities, or other day-use features that may be used by the public at no or relatively low cost. The quality and quantity of amenities shall be considered in the Coastal Development Permit review process. This standard does not prohibit a new hotel or motel project from charging a user fee or resort fee for active amenities, such as pool and spa access, recreation activities and equipment, or organized group activities on the property.

Development Standards Community Development Development Fees As Needed - LU-14 Goal LU-6 Land Use
Use fee revenues from new developments with the potential to directly displace existing lower- and mid-price accommodations to provide as-needed rehabilitation grants to Low-Cost Visitor-Serving Accommodations (LCVSAs) to ensure the LCVSAs stay on the market at an affordable price point.

Program Community Development Development Fees As Needed - LU-11 Goal LU-4 Land Use
Track needs of the commercial fishing industry annually through the Harbor Advisory Board as the community faces climate and economic changes.

Process Harbor General Fund
LU-10 Goal LU-4 Land Use Zoning Code Update Community Development General Fund access, paths, lookout points
• Recreational vehicle parking
• Automobile parking
• Picnic areas
• Community gardens
• Campgrounds
• Restrooms and service facilities
• Playgrounds
• Temporary boat storage
• Temporary boat repair area
• Ancillary uses for the above
• Other uses serving visitors or commercial fishing which do not require permanent structures
Annually -
Concurrent -

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 LU-15 Goal LU-6 Land Use
Require any new hotel or motel development that does not include lower-cost overnight accommodations (and that is not directly displacing lower-cost lodgings) to provide mitigation as a condition of approval of a Coastal Development Permit.

Mitigation actions shall include a mitigation payment to provide funding for the establishment of lower-cost overnight visitor accommodations elsewhere in the city, including granting the state “rights-of-way” to expand or using fees for linear coastal park improvements.

Program Community Development Development Fees As Needed Ongoing. This is a project requirement reviewed for applicability on all new projects.

LU-16 Goal LU-6 Land Use
Require that hotel or motel development projects in Morro Bay provide units at a lower-cost rate approved by the Coastal Commission if they directly displace either (a) existing lower-cost accommodations or (b) accommodations above the lower-cost threshold that include additional amenities or higher capacity.

Program Community Development Development Fees As Needed Ongoing. This is a project requirement on all new projects.

LU-17 Goal LU-6 Land Use
Require new hotel and motel projects that do not have lower-cost accommodation options to incorporate non-overnight facilities and amenities, either within or as a component of the development, which will be generally available for passive public use. Such amenities may include public plazas and spaces, restaurants, retail units, gardens, viewing areas, free Wi-Fi, bike parking facilities, or other day-use features that may be used by the public at no or relatively low cost. The quality and quantity of amenities shall be considered in the Coastal Development Permit review process. This standard does not prohibit a new hotel or motel project from charging a user fee or resort fee for active amenities, such as pool and spa access, recreation activities and equipment, or organized group activities on the property.

Program Community Development Development Fees As Needed Ongoing. This is a project requirement on all new projects.

LU-18 Goal LU-7 Land Use
Continue to implement lateral access wayfinding and open access through enforcement of City design standards and sign regulations.

Code Enforcement Community Development
General Fund;
Development Fees
Ongoing In Progress
LU-19 Goal LU-7 Land Use
Name and brand the entire lateral accessway through the lateral access focus area and beyond (as applicable) as the Morro Bay Harborwalk. This should be reflected in all wayfinding and signage and city materials.

Program
Harbor; Community
Development
General Fund Ongoing Ongoing. This is a project requirement on all new projects.

LU-20 Goal LU-8 Land Use Update the Waterfront Master Plan. Process Community Development General Fund Periodic Staff is researching grant funding opportunities.

LU-21 Goal LU-8 Land Use
Monitor and repair existing seawalls and revetments along the Embarcadero.

Physical Improvement Public Works
General Fund;
development fees
As Needed City is preparing an RFP to conduct a survey of waterfront infrastructure including revetments
CD-1 Goal CD-1 Community Design
Develop design standards as part of the Zoning Code update tailored to each character area (as appropriate) and include regulations on building design, landscaping, amenities, and facilities.

Zoning Code Update
Community
Development; Public
Works
General Fund Once
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 CD-2 Goal CD-1 Community Design
Develop citywide design guidelines with a focus on certain character areas. The guidelines for each character area should be sensitive to the design objectives and unique characteristics of each area. Those character areas include Downtown, the Embarcadero, North Morro Bay, Cloisters, North Embarcadero, and Highway 1 Commercial. Considerations for the guidelines will include allowing sufficient flexibility, use types generally allowed, building size and massing, and allowing for eclectic design features. Design standards should address senior housing that is accessible to public transit, health and community facilities, and services.

Process Community Development General Fund Once
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

CD-3 Goal CD-1 Community Design
Develop design guidelines for North Morro Bay that encourage building or expanding commercial centers to serve the
neighborhood at identified locations in the area. Another objective is to make North Main Street more pedestrian friendly and aesthetically pleasing.

Process Community Development General Fund Once
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

CD-4 Goal CD-1 Community Design
In mixed-use areas, lateral accessways shall be provided according to the location of historically used portions of the site and projected future use by residents, and shall include provision of continuous lateral access across the site. Access easements may be located in view corridors.

Development Standards Community Development Development Fees As Needed Ongoing. This is a project requirement on all new projects.

CD-5 Goal CD-1 Community Design
Design guidelines for the Embarcadero character area should be crafted to maintain and improve lease site buildings and structures for visitors and waterfront commercial uses and to protect against sea level rise, create consistent wayfinding and signage, improve circulation for bicycles, pedestrians, and vehicles, and develop opportunity sites.

Process Community Development General Fund Concurrent
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

CD-6 Goal CD-1 Community Design
Design guidelines for the Downtown character area should include connecting Downtown with the waterfront through new buildings and activities, developing opportunity sites, maintaining and improving the pedestrian experience, and increasing office and residential opportunities on second stories.

Process Community Development General Fund Concurrent
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

CD-7 Goal CD-1 Community Design
Amend the Zoning Code to allow for features such as vegetative roofs, edible landscaping, gardening, and the keeping of specified small animals in appropriate residential and
commercial zones.

Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

CD-8 Goal CD-2 Community Design
Update the City's building code to meet Tier 2 of the Green Building Code and incorporate resilient and sustainable building design standards such as passive heating and cooling,
redundant water and waste systems, energy production and storage, and disaster-resilient building materials. Review the code periodically to ensure it incorporates emerging materials, technology, and best practices.

Municipal Code Update Fire General Fund Periodic
Completed, 2022 California Building Code adopted, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

Page 137 of 148 ends

General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 ED-1 Goal ED-1
Economic
Development
Determine the types of buildings and spaces needed in Morro Bay to support economic growth. Identify the appropriate height and sizes of nonresidential buildings, along with any design considerations necessary for desired economic growth.

Zoning Code Update Community Development General Fund Concurrent - ED-2 Goal ED-1
Economic
Development
Regularly review City policies and practices to ensure they allow new businesses to be easily established and enable existing businesses to easily grow, avoiding unnecessarily restrictive or financially burdensome regulations.

Process City Manager General Fund Periodic -
ED-3 Goal ED-1
Economic
Development
Maximize energy from renewable resources, and work to
improve the affordability of energy and telecommunication resources.

Program City Manager General Fund; Grants Ongoing City is a member of Central Coast Community Energy ED-4 Goal ED-1
Economic
Development
Explore opportunities to establish Community Financing
Districts and additional Business Improvement Districts.

Program City Manager
General Fund; District
Proceeds
Ongoing
City contracted with the Morro Bay Chamber of Commerce to conduct outreach and to provide information on the formation of a downtown BID. Project is complete and next steps are up to the downtown business owners.

ED-5 Goal ED-1
Economic
Development
Adopt, and ensure City staff is trained on, proper customer service techniques and practices when working with community members on permits, applications, and other processes.

Process Community Development General Fund Ongoing In progress ED-6 Goal ED-1
Economic
Development
Review, and modify as needed, the development process to improve and streamline the review process, ensure proper communication between departments and the applicant, and provide support for businesses and homeowners.

Process Community Development General Fund Periodic In progress ED-7 Goal ED-1
Economic
Development
Carry out implementation of the Economic Development
Strategic Plan.

Process City Manager General Fund Ongoing In progress
ED-8 Goal ED-2
Economic
Development
Be knowledgeable and present in local events, activities, and marketing with local businesses, recreation providers, and organizations to provide support and promotion, and to
facilitate good relationships with the community.

Program City Manager General Fund Ongoing In progress
ED-9 Goal ED-2
Economic
Development
Strengthen partnerships with Cal Poly, Cuesta College, the Economic Vitality Corporation, the County of San Luis Obispo, REACH Central Coast, Visit SLO CAL, Morro Bay Chamber of Commerce, and the cities in the county to work together on regional tourism and marketing that highlights Morro Bay as a tourist destination and business-friendly location.

Program City Manager General Fund; TOT Ongoing In progress ED-10 Goal ED-2
Economic
Development
Identify commercial areas in need of rejuvenation and work with property owners to identify funding sources and revitalization strategies to improve the appearance, sustainability, and longevity of buildings and amenities.

Program City Manager General Fund Ongoing -
ED-11 Goal ED-3
Economic
Development
Ensure that zoning and design standards along the
Embarcadero, in downtown, along Main Street, and in other locations allow for new nonresidential development. Consider allowances for retail/residential and retail/office mixed-use buildings.

Process Community Development General Fund Concurrent In progress ED-12 Goal ED-3
Economic
Development
Prioritize the location of businesses that will bring needed and diverse services, livable wages, and employment generation.

Program City Manager General Fund Ongoing -

Page 138 of 148 ends

General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 ED-13 Goal ED-4
Economic
Development
Partner with Cal Poly, Cuesta College, and the Workforce Development Board, as well as other key agencies and
organizations, to bring workforce programs, projects, and needed workers to Morro Bay.

Program City Manager General Fund Ongoing -
ED-14 Goal ED-4
Economic
Development
Provide incentives such as reduced development fees,
expedited processing, or other benefits for businesses that will pay a living wage to employees.

Zoning Code Update Community Development General Fund Ongoing - CIR-1 Goal CIR-1 Circulation
Review the Morro Bay Bicycle and Pedestrian Master Plan annually to identify opportunities for implementation and ensure consistency with existing local and regional plans.

Process Community Development General Fund Ongoing -
CIR-2 Goal CIR-1 Circulation
Identify future funding and ways to remove permitting barriers to install fiber optic Internet or other similar communications infrastructure that will support the increase of smart
transportation technology and connected vehicles.

Physical Improvement Public Works General Fund; Grants Once - CIR-3 Goal CIR-1 Circulation
Prioritize projects in the CIP that improve local and regional connectivity and mobility by increasing access and connecting to existing systems, including transit, sidewalks, bike lanes, and roadways.

Process Public Works General Fund; Grants Ongoing -
CIR-4 Goal CIR-1 Circulation
Update the City’s development impact fee program to provide funding for future circulation improvements including
pedestrian, bicycle, and public transit facilities and amenities.

Also, consider other local financing options such as an Enhanced Infrastructure Financing District (EIFD).

Process Community Development General Fund Periodic -
CIR-5 Goal CIR-1 Circulation
Include the San Luis Obispo Bicycle Club, Bike SLO County, SLO Nexus, and other bicycling groups as key stakeholders in planning and transportation system projects to identify concerns and opportunities in the active transportation system.

Process Community Development General Fund Ongoing -
CIR-6 Goal CIR-1 Circulation
Designate a representative to attend locally relevant meetings held by San Luis Obispo Regional Transit Authority, Caltrans, and other regional agencies to represent the interests of Morro Bay.

Process Community Development General Fund Ongoing -
CIR-7 Goal CIR-1 Circulation
Work with business owners to streamline and integrate goods movement throughout Morro Bay in a way that improves
loading, unloading, and transportation processes, while minimizing health, safety, and nuisance impacts.

Program Community Development General Fund Ongoing -
CIR-8 Goal CIR-1 Circulation
Consider updating the Morro Bay Municipal Code Title 10 (Vehicles and Traffic) to incorporate recent best practices, local needs, and make consistent with Plan Morro Bay.

Municipal Code Update Community Development General Fund Once - CIR-9 Goal CIR-1 Circulation
Seek funding from sources such as Safe Routes to School and Complete Streets programs to improve sidewalk conditions and streetscapes, particularly in the downtown area.

Physical Improvement Community Development Grants Ongoing - CIR-10 Goal CIR-1 Circulation
Pursue grant funding to prepare a Complete Streets Plan to integrate with updates to the Morro Bay Bicycle & Pedestrian Master Plan.

Process Community Development Grants Ongoing -

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 CIR-11 Goal CIR-2 Circulation
Develop standards for bicycle, pedestrian, and trail
improvements and amenities in new development and
redevelopment projects. Include requirements for adequate, safe, and accessible bicycle parking, drinking fountains, public restrooms, benches, landscaping, and lighting. Require new development and redevelopment projects to be pedestrian and bicycle-friendly, and to provide adequate connections to the existing and proposed bicycle and pedestrian network.

Process Community Development General Fund Once -
CIR-12 Goal CIR-2 Circulation
Update design guidelines and standards for bicycle and
pedestrian facilities and amenities that meet local, state, and federal standards. Include a uniform citywide signage plan and comply with all Americans with Disabilities Act (ADA)
requirements.

Process Community Development General Fund Once -
CIR-13 Goal CIR-2 Circulation
Design and install comprehensive wayfinding signage in key locations of the city that address all modes of travel including transit, trucks, bicycles, and cars. Excessive signs and other visually intrusive landscape features shall be avoided.

Program Community Development General Fund As Needed Comprehensive wayfinding signage program installed citywide at end of 2022.

CIR-14 Goal CIR-2 Circulation
Update the Morro Bay Zoning Code to allow for compact
development and supporting active transportation amenities in key areas of the city. Standards to implement this policy could include bike parking requirements, pedestrian access
requirements, and circulation requirements for commercial uses.

Zoning Code Update Community Development General Fund Concurrent - CIR-15 Goal CIR-3 Circulation
Formally adopt level of service (LOS) and VMT as the standard for monitoring impacts to the complete transportation system, including standards for acceptable thresholds and mitigations.

Development Standards Community Development General Fund Concurrent - CIR-16 Goal CIR-3 Circulation
Monitor ongoing progress toward VMT and the transportation-related goals of the Morro Bay Climate Action Plan, and update guidelines for transportation impact analysis to maintain acceptable progress.

Process Community Development General Fund Ongoing -
CIR-17 Goal CIR-4 Circulation
Revise the Morro Bay Zoning Code to eliminate minimum
parking requirements where appropriate in new or significantly renovated developments, and establish maximum parking
standards.

Zoning Code Update Community Development General Fund Concurrent CIR-18 Goal CIR-4 Circulation
Periodically conduct a citywide parking study to analyze the city’s existing parking infrastructure in order to effectively address and manage current and future parking needs.

Program
Community
Development; Public
Works
General Fund; User Fees Periodic -
NOI-1 Goal NOI-1 Noise
Use the noise and land use compatibility matrix (Table NOI-3) and Future Noise Contour Map (Figure NOI-3) as criteria to determine acceptability of a land use, including the
improvement/construction of streets and highways. Do not permit new noise-sensitive uses – including residential development, schools, hospitals, churches, meeting halls, auditoriums, music halls, theaters, libraries, transient lodging (i.e., motels and hotels), playground/parks, and offices – where noise levels are “normally unacceptable” or higher, if alternative locations are available for the uses in the city.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 NOI-2 Goal NOI-1 Noise
Mitigate noise created by new proposed stationary noise sources, or by existing stationary noise sources which undergo modifications that may increase noise levels, so as not to exceed the noise level standards of Table NOI-5 on lands designated for noise-sensitive land use.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.

NOI-3 Goal NOI-1 Noise
Ensure that interior noise levels in new residential construction do not exceed 45 dBA Ldn, in accordance with the State of California’s Noise Insulation Standards. For nonresidential construction, the acceptable interior noise levels should not exceed the interior noise levels in Table NOI-4.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.

NOI-4 Goal NOI-1 Noise
Continue to enforce Title 25 insulation standards, including the interior noise level standards of 45 dBA Ldn in all habitable rooms for dwelling units.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.

NOI-5 Goal NOI-1 Noise Development Standards Community Development Development Fees Require acoustical studies for all discretionary development proposals that are likely to be exposed to existing or projected future noise levels that exceed the “normally acceptable” community noise exposure standard (Table NOI-3); and for projects that are likely to generate noise in excess of the community noise exposure standard (Table NOI-3); or as
determined by the Community Development Director. For
discretionary projects, acoustical analysis will be required at the time the application is accepted for processing. For
development not subject to discretionary approval and/or environmental review, the requirements for an acoustical analysis shall be implemented prior to the issuance of a building permit. An acoustical analysis
prepared pursuant to the Noise Element shall:

A. Be the financial responsibility of the applicant.

B. Be prepared by a qualified person experienced in the fields of environmental noise assessment and architectural acoustics.

C. Include representative noise level measurements with sufficient sampling periods and locations to adequately describe local conditions. Where actual field measurements cannot be conducted, all sources of information used for calculation purposes shall be fully described. When the use being studied is commercial or industrial use, all noise sources related to the service and maintenance of the facility shall be considered, including but not limited to parking lot and landscape
maintenance, refuse collection, truck loading/unloading activities, amplified sound, outdoor sales and activities, and all other noise sources associated with operation, maintenance, and service.

D. Estimate existing and projected (20 years) noise levels in terms of the descriptors used in Tables NOI-4 and NOI-5, and compare those levels to adopted policies of the Noise Element.

Projected future noise levels shall take into account noise from planned streets, highways, and road connections.

E. Recommend appropriate mitigation to meet or exceed the policies and standards of the Noise Element, giving preference to site planning and design strategies over mitigation measures which require the construction of noise barriers or structural modifications to buildings which contain noise-sensitive land As Needed This is a requirement that is reviewed on all new projects.

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 NOI-6 Goal NOI-1 Noise
Require the incorporation of mitigation measures for projects that could expose noise-sensitive land uses to excessive noise levels to reduce such impacts. Table NOI-3 specifies the maximum noise levels that are normally acceptable,
conditionally acceptable, and unacceptable for new
development.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.

NOI-8 Goal NOI-1 Noise
Prepare a Noise Guidelines Manual based on the Acoustical Design Manual to ensure consistency with General Plan
standards and policies and contemporary practices.

Process
Community
Development; Public
Works
General Fund Once -
NOI-9 Goal NOI-1 Noise
Develop and employ procedures to ensure that noise mitigation measures required pursuant to an acoustical analysis are implemented in the development review and building permit processes.

Program Community Development General Fund Once -
Development Fees As Needed
NOI-5 Goal NOI-1 Noise Development Standards Community Development Development Fees environmental review, the requirements for an acoustical analysis shall be implemented prior to the issuance of a building permit. An acoustical analysis
prepared pursuant to the Noise Element shall:

A. Be the financial responsibility of the applicant.

B. Be prepared by a qualified person experienced in the fields of environmental noise assessment and architectural acoustics.

D. Estimate existing and projected (20 years) noise levels in terms of the descriptors used in Tables NOI-4 and NOI-5, and compare those levels to adopted policies of the Noise Element.

Projected future noise levels shall take into account noise from planned streets, highways, and road connections.

F. Estimate noise exposure after the prescribed mitigation measures have been implemented.

G. Describe a post-project assessment program which could be used to evaluate the effectiveness of the proposed mitigation measures.

When mitigation is required to satisfy the adopted policies and programs the following priorities for mitigation shall be observed where feasible:

First: Setback/open space separation
Second: Site layout/orientation/shielding of noise-sensitive uses with non-noise-sensitive uses
Third: Construction of earthen berms
Fourth: Structural measures, including acoustical treatment of buildings and noise barriers constructed of concrete, wood, or materials other than earth
This is a requirement that is reviewed on all new projects.

As Needed This is a requirement that is reviewed on all new projects.

NOI-7 Goal NOI-1 Noise Development Standards Community Development

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 NOI-10 Goal NOI-2 Noise
New development of noise-sensitive land uses shall not be permitted in areas exposed to existing or future levels of noise from transportation noise sources which exceed 60 dBA Ldn or CNEL (70 Ldn/CNEL for playgrounds and neighborhood parks) unless the project design includes effective mitigation measures to reduce noise in outdoor activity areas and interior spaces to or below the levels specified for the given land use in Table NOI-4.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.

NOI-11 Goal NOI-2 Noise
Noise created by new transportation sources, including roadway improvement projects, shall be mitigated so as not to exceed the levels specified in Table NOI-4, within the outdoor activity and interior spaces of existing noise-sensitive land uses.

Zoning Code Update Community Development General Fund Concurrent This is a requirement that is reviewed on all new projects.

NOI-12 Goal NOI-2 Noise
Routes for use by heavy trucks will be located away from noise-sensitive land uses when feasible. Municipal Code Update Public Works General Fund Once - NOI-13 Goal NOI-2 Noise
Encourage Caltrans and the County Engineer to incorporate noise reduction methods, including innovative noise reduction strategies, in the design of new and modified roads and highways. Sound walls should not be placed where they will block views in areas of scenic interest.

Process Public Works General Fund Ongoing -
NOI-14 Goal NOI-2 Noise
Seek funding for and implement alternative transportation improvements in an effort to reduce traffic-related noise in Morro Bay.

Program Public Works General Fund; Grants Periodic -
C-1 Goal C-2 Conservation
Become a Certified Local Government (CLG) by developing a historic preservation ordinance, establishing a historic preservation committee, and maintaining a system to regularly update cultural resources.

Process Community Development General Fund; Grants Once - C-2 Goal C-2 Conservation
Conduct inventories of historic and cultural resources in Morro Bay. Update these inventories as needed to ensure up-to-date information.

Process Community Development General Fund; Grants Periodic - C-3 Goal C-2 Conservation
Establish a local register that mimics requirements of the California Register of Historic Resources and the National Register of Historic Places, but focuses on locally important historic themes, such as Morro Bay’s legacy as a fishing village.

Program Community Development General Fund; Grants Ongoing - C-4 Goal C-2 Conservation
Identify historical themes and develop a historic context statement that is used to identify significant historical themes within a community that are often represented in the built environment, such as houses and infrastructure.

Process Community Development General Fund; Grants Once - C-5 Goal C-2 Yes Ongoing This is a requirement that is reviewed on all new projects.

Require all discretionary proposals within the cultural resources overlay to consider the potential to disturb cultural resources. If preliminary reconnaissance suggests that cultural resources may exist, a Phase I cultural resources study shall be performed by a qualified professional meeting the Secretary of the Interior’s (SOI) Professional Qualification Standard (PQS) for archaeology and/or architectural history, as appropriate (NPS 1983). A Phase I cultural
resources study shall include a pedestrian survey of the project site and sufficient background research and field sampling to determine whether subsurface prehistoric or historic remains may be present. Archival research should include a records search at the Central Coast Information Center (CCIC) and a Sacred Lands File (SLF) search with the Native American Heritage Commission (NAHC). Where identified or potential Conservation Process Community Development User Fees

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 C-6 Goal C-4 Conservation
Establish greenhouse gas emissions thresholds of significance and standardize potential mitigation measures for both
discretionary and ministerial actions.

Process Community Development General Fund Once -
C-7 Goal C-4 Conservation
Update the City’s Climate Action Plan for consistency with SB 32 and SB 1383..

Process Community Development General Fund Once -
C-8 Goal C-4 Conservation
Regularly communicate with County, state, and federal
departments and agencies, medical providers, and
organizations regarding available grant funding, such as for active transportation and healthy communities, that can aid the City in reaching its emissions targets. Work with local homeowners, businesses, and organizations to take advantage of these grants.

Process Community Development Grants Ongoing -
C-9 Goal C-5 Conservation
Develop, and update regularly, a database of low-cost and free programs for energy efficiency and weatherization for low-income homeowners, and create a process for reaching out to such residents when opportunities are available.

Program Community Development General Fund; Grants Ongoing In progress. This information is included on a new page of the City website at www.morrobayca.gov/climateaction
C-10 Goal C-6 Conservation
Participate in regional energy efficiency financing programs, such as low-interest revolving loans, the California
Comprehensive Residential Building Retrofit Program, California First, and Property Assessed Clean Energy (PACE), that enable property owners to obtain low-interest financing for energy improvements.

Program Community Development General Fund; Grants Ongoing - C-11 Goal C-7 Conservation
Study the economic and environmental feasibility of obtaining water from additional sources, including brackish water reverse osmosis at the water treatment plant and rainwater harvesting and management. If a method is deemed feasible, develop a plan to incorporate it into the City's water management plan.

Process Public Works General Fund; User Fees Periodic - C-12 Goal C-7 Conservation
Identify and regulate point sources of pollution to protect riparian and marine areas.

Process Public Works General Fund; Grants Ongoing -
C-13 Goal C-7 Conservation
Continue to promote and enforce water conservation efforts in Morro Bay through methods such as tiering of water pricing, water usage restrictions, and incentives or requirements for water-efficient building, landscaping, and street design.

Program Public Works General Fund; User Fees Ongoing Completed and ongoing C-5 Goal C-2 Yes Ongoing This is a requirement that is reviewed on all new projects.

Require all discretionary proposals within the cultural resources overlay to consider the potential to disturb cultural resources. If preliminary reconnaissance suggests that cultural resources may exist, a Phase I cultural resources study shall be performed by a qualified professional meeting the Secretary of the Interior’s (SOI) Professional Qualification Standard (PQS) for archaeology and/or architectural history, as appropriate (NPS 1983). A Phase I cultural
resources study shall include a pedestrian survey of the project site and sufficient background research and field sampling to determine whether subsurface prehistoric or historic remains may be present. Archival research should include a records search at the Central Coast Information Center (CCIC) and a Sacred Lands File (SLF) search with the Native American Heritage Commission (NAHC). Where identified or potential resources are of Native American origin, the appropriate Native American tribe(s) will participate with the qualified professional.

The technical report documenting the study shall include recommendations to avoid or, if avoidance is not feasible, reduce impacts to cultural resources.

Conservation Process Community Development User Fees

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 C-14 Goal C-8 Conservation
Continue to update Chapter 14.75 (Mandatory Construction and Demolition Debris Recycling Program) of the Morro Bay Municipal Code as higher diversion rates become feasible, necessary, or required.

Municipal Code Update Community Development General Fund As Needed City has implemented SB 1383.

C-15 Goal C-8 Conservation
Work with local and state agencies and organizations such as CalRecycle and the San Luis Obispo Integrated Waste
Management Authority to support the food waste curbside collection program and provide low-cost composting starter kits to residents interested in beginning a home composting bin.

Program Public Works Grants Ongoing City has implemented SB 1383.

C-16 Goal C-8 Conservation
Designate a Zero Waste champion from City staff to work with CalRecycle, San Luis Obispo Integrated Waste Management Authority, local private waste management companies,
residents, business owners, and multifamily housing landlords to teach and promote the zero waste goal and methods of attainment that are mutually beneficial.

Program Public Works General Fund Once
Public Works Department has dedicated staff that partners with IWMA to implement SB 1383.

C-17 Goal C-8 Conservation
Require that all multifamily and commercial facilities provide an adequate number of attractive and convenient waste diversion receptacles, as well as clear and convenient instructions regarding recyclable and compostable materials.

Municipal Code Update Public Works General Fund As Needed - C-18 Goal C-8 Conservation
Create and adopt a Zero Waste Action Plan to reach 100% waste diversion.

Process Public Works General Fund; Grants Once -
C-19 Goal C-9 Conservation
Conduct a view analysis to further delineate protected views identified in this section and implement Zoning Code criteria identifying scenic viewpoints to be protected, and development review procedures for designing future projects to protect scenic viewpoints.

Zoning Code Update Community Development General Fund Concurrent - C-20 Goal C-9 Conservation
Amend Section 17.48.190 (Protection of visual resources and compatible design) of the Zoning Code to incorporate the viewpoints and scenic views described in Figures C-7 and C-8 of the General Plan and impose specific visual standards for projects that could potentially impact those viewpoints and views.

Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

C-21 Goal C-9 Conservation
Review and update the Municipal Code, including sign
standards, building requirements, and visual resources, to ensure standards remain consistent with updated design
standards and the existing environment.

Municipal Code Update Community Development General Fund As Needed Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, pending Coastal Commission approval in 2024.

C-22 Goal C-9 Conservation
Establish an in-lieu fee program to fund infrastructure and utility undergrounding efforts. Program Community Development General Fund; Grants Once - C-23 Goal C-9 Conservation
Consider establishing a tree bank near Del Mar Park or another suitable location to sequester carbon and mitigate for impacts from the loss of trees in other areas of the city. The tree banking program would have guidelines and regulations established for how the mitigation could be utilized and for growing and maintaining the trees.

Program Community Development User Fees Ongoing -
OS-1 Goal OS-1 Open Space
Partner with the school district, community groups, and neighboring communities to identify and apply for grant opportunities to maintain, enhance, and expand park and recreational opportunities.

Process Recreation Services Grants Periodic -

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 OS-2 Goal OS-1 Open Space
Work with local businesses, organizations, and landowners to install temporary public uses on vacant lots, particularly in the downtown and Embarcadero areas. Such uses could include parklets, community gardens or markets, or other temporary recreational facilities.

Program Recreation Services General Fund; Grants Ongoing - OS-3 Goal OS-1 Open Space
Implement an incentive program for local waterfront businesses and leaseholders to encourage regular maintenance and
upgrades of infrastructure at nearby trails or parks.

Program
Community
Development, Harbor
General Fund Once -
OS-4 Goal OS-2 Open Space
Identify opportunities in existing and future parks and open space to include multigenerational recreational facilities and gathering spaces, and seek funding opportunities to install and upgrade such facilities.

Program Recreation Services Grants Ongoing -
OS-5 Goal OS-2 Open Space
Complete a community recreational needs assessment that includes an evaluation of programs and events, access to parks and recreational uses, ability of residents of all ages and abilities to fully utilize these facilities, and ongoing maintenance needs.

Use the assessment to determine budget allocation, program offerings, and needed projects and equipment, and consider incorporating into a Parks Master Plan.

Process Recreation Services General Fund; Grants Periodic - OS-6 Goal OS-2 Open Space
Review park needs annually to determine community needs in relation to the allocation of available resources. Process Recreation Services General Fund Periodic - OS-7 Goal OS-3 Open Space
Partner with local organizations, schools, and regional agencies to collectively pursue funding opportunities, including grants and private sponsorships, to improve and maintain recreational areas and facilities in Morro Bay, and coordinate programming and amenities to maximize public access.

Process Recreation Services Grants Periodic -
OS-8 Goal OS-3 Open Space
Create a sponsorship program for parks and community
programs that details the levels of sponsorship that a business or organization can provide, and any benefits or incentives the sponsor can receive in return. Allow for flexibility in the sponsorship program to accommodate the individual needs of the City and sponsor.

Program Recreation Services
General Fund;
Sponsorships
Once -
OS-9 Goal OS-3 Open Space
Identify coastal access points and citywide trails and incorporate them into the City’s GIS data and maps. Program Community Development General Fund Once - OS-10 Goal OS-6 Open Space
Develop park design guidelines that implement design
techniques to decrease flood risk through floodwalls, foreshore structures or improvements, sea gates, and surge barriers.

Process Recreation Services General Fund; Grants Once - OS-11 Goal OS-6 Open Space
Formally identify park structures and features that will require protection from or adaptation to sea level rise and changing climatic events, and seek funding to implement the identified adaptation strategies.

Process Recreation Services General Fund; Grants Periodic - OS-12 Goal OS-7 Open Space
When approving development in areas near agricultural areas, consider potential long-term impacts and require mitigation as part of development approval.

Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed for applicability on all new projects.

PS-1 Goal PS-2 Public Safety
Inventory unreinforced brick masonry, soft-story, and other seismically vulnerable private buildings. Identify potential funding sources to assist with seismic retrofits.

Process Community Development General Fund; Grants
Once and
Periodic
-

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General Plan Implementation Table - 2023 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2023 PS-2 Goal PS-4 Public Safety
Create a multifaceted emergency communications plan that details multiple methods of warning and communication
systems, emergency response, and evacuation assistance. This could include identification of "resiliency hubs." Such a plan should include social media, traditional news outlets, available apps, and "Amber Alert" style SMS messaging to residents, and identify the persons responsible for each role in the emergency communications plan. The plan should include coordination with the County and other regional emergency response
agencies.

Process Police General Fund; Grants Ongoing -
PS-3 Goal PS-4 Public Safety
Develop and pursue a list of City building improvements that would be resilient and habitable during a prolonged power or heating outage.

Process Community Development General Fund; Grants Once Periodic - EJ-1 Goal EJ-1
Environmental
Justice
Annually, meet with San Luis Obispo County Public Health and other potential partners to work to provide enrichment
programs for families and children, including after-school programs.

Program Recreation Services General Fund; Grants Periodic - EJ-2 Goal EJ-1
Environmental
Justice
Offer community equity training and diversity training to City staff either through the City or in partnership with other agencies or groups in the region. If possible, make the training available to government staff throughout the region and to the broader community.

Program City Council General Fund Ongoing -
EJ-3 Goal EJ-2
Environmental
Justice
Work with community organizations and local and regional agencies to develop brochures, web content, and other
materials to promote public awareness of health and social services available in the area.

Program Community Development General Fund; Grants Ongoing - EJ-4 Goal EJ-3
Environmental
Justice
Work with medical providers, transit agencies, private transit providers, and community representatives to develop an access plan that can provide service to major medical facilities in the region. Include recommendations for locating future medical facilities close to public transit.

Process Recreation Services General Fund Once -
EJ-5 Goal EJ-3
Environmental
Justice
Promote local food sourcing through procurement preferences and policies at local government facilities, schools, businesses, and institutions. Continue to promote marketing and
distribution initiatives that connect local agriculture to new markets such as retailers, restaurants, schools, food banks, and other businesses.

Program Community Development General Fund; Grants Periodic - EJ-6 Goals EJ-4
Environmental
Justice
Update the Morro Bay Community Vulnerability and Resilience Assessment every 10 years to include updated modeling and projections. This will allow the City to identify current priorities for vulnerable assets, populations, and environmental features.

Process Community Development General Fund; Grants Periodic -

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Permit Number Type Description Description Location Status Initiated Date CDP21-025/CUP21-07 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) 2631 sf mixed use lodging plus security unit 1175 SCOTT ST ISSUED 2021-06-28 08:18 AM CDP21-014/CUP21-10 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) 3202 BEACHCOMBER DR ISSUED 2021-07-15 09:11 AM CDP21-024/CUP21-11 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) 3230 BEACHCOMBER DR ISSUED 2021-07-15 09:14 AM CDP21-035/CUP21-12 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) 101 FIG ST ISSUED 2021-08-09 12:18 PM CDP21-039/CUP21-13 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) 545 SHASTA AVE ISSUED 2021-09-16 06:54 AM CDP22-004/CUP22-06 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) Live/work mixed use project. 5 residential units & 2 commerical units
1140 ALLESANDRO ST ISSUED 2022-01-20 05:43 AM
CDP22-039/CUP22-10 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) New 9460 sf second story addition to existing 6450 sf single story hotel, a kitchen and complimentary dining area for hotel guest use.
1050 Morro Ave ISSUED 2022-11-17 10:17 AM
CDP22-041/CUP22-12 Coastal Development Permit (CDP) / Conditional Use Permit (CUP) New 2,368 sf one story SFR and a 2 car garage located in the Cloisters
2285 Emerald Circle ISSUED 2022-12-05 09:52 AM
CUP23-06 Conditional Use Permit (CUP) New 2-story SFR, 4,941 sf of living area, 1493 attached basement level garage, and 1156 sf of covered patio area 646 Sequoia St ISSUED 2023-03-27 09:26 AM
CDP23-008 / CUP23-08 Conditional Use Permit (CUP) New 2,491sf SFR with 559sf garage and 192sf studio on vacant lot.
2772 Indigo Circle ISSUED 2023-04-17 08:13 AM
MAJ21-006 Major Modification Zoning change from C2 to C1 1260 MAIN ST ISSUED 2021-10-04 10:47 AM MAJ22-001 Major Modification Proposed modifications to existing AT&T rooftop cell site. 590 MORRO AVE ISSUED 2022-11-22 02:29 AM MAJ22-002 Major Modification Dutchman Harborwalk 701 EMBARCADERO RD ISSUED 2022-12-16 01:29 AM MAJ23-002 Major Modification New 5 room hotel/motel 2900 ALDER AVE ISSUED 2023-05-18 12:08 PM CDP22-023 Coastal Development Permit (Regular CDP) Demolition of severly damaged existing structure built in 1971; construction of new 3335 sf SFR, with 665 sf 2-car garage.
3009 BEACHCOMBER DR ISSUED 2022-07-19 08:30 AM

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Morro Bay City CouncilNovember 12, 2024

Morro Bay City Council
November 12, 2024