Morro Bay City Council
December 10, 2024

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, December 10, 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
None

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

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.f as submitted.

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

1. November 12, 2024 - Regular Council Meeting 6

2. November 12, 2024 - Special Closed Session Meeting 13

7.b Fiscal Year (FY) 2023-24 Status Report on Receipt and Use of Development Impact Fees (Annual Report and Five-Year Findings re Unexpended Funds)
14 (Administrative Services Department)
Recommended Action
Adopt Resolution No. 73-24 accepting the Fiscal Year (FY) 2023-24 status report on receipt and use of Development Impact Fees.

7.c Authorization for Attendance at the C-MANC Annual Washington, D.C., "Washington Week" Meetings
26 (City Manager)
Recommended Action
Authorize a three-person delegation to attend the California Marine Affairs and Navigation Conference (C-MANC) 2025 “Washington Week” meetings in Washington, D.C. slated for February 10 – 14, 2025, and to represent the City’s interests in the nation’s capital. It is anticipated the Mayor, City Manager and Harbor Vitality Director will attend the Conference; however, staff recommends the Council authorize Council Member Landrum, as the liaison to the Harbor Advisory Board, as an alternate to be the third representative should one of the others be unable to attend.

7.d Acceptance of Two Hazard Mitigation Grants: 1) Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility Building Grant - DR4683-AP01233; and 2) Advanced Assistance - Storm Drain Assistance Grant - DR4683-AP01231
28 (Public Works Department)
Recommended Action
Adopt Resolution No. 74-24 and Resolution No. 75-24, accepting the award of the following grants:

Floodproof Reverse Osmosis Water Treatment Facility Grant totaling $306,197.32 for studying and identifying the most effective mitigation project to protect the City’s reverse osmosis water treatment facility from floodwaters,

1. Storm Drain Assessment Grant totaling $1,075,944.20 for evaluating storm drain issues and conducting a watershed management plan to mitigate flooding risks in select areas of Morro Bay, and

2. Approve and sign Cal OES Form 130, which allows the
approved Authorized Agent(s) to execute for and on behalf of the City of Morro Bay.

3. 7.e League of California Cities 2024 Annual Conference - Attendance Report
58 (City Manager)
Recommended Action
Receive and file.

7.f Consider Resolution No. 76-24 Approving Designation of City's Agents in Applying for Reimbursement from the Cal OES and FEMA for possible future disaster related expenses and authorizing City's agents to take all necessary actions for reimbursements
61 (Public Works Department)
Recommended Action
Adopt Resolution No. 76-24 approving the Designation of Applicant’s Agent Resolution and authorizing the City Manager, or designee, to take all necessary actions to apply to California Governor’s Office of Emergency Services (Cal OES) and Federal Emergency Management Agency (FEMA) for reimbursement of eligible City costs resulting from possible future disaster events.

8. PUBLIC HEARING ITEMS
None

9. BUSINESS ITEMS

9.a Appointment of Mayor Pro Tempore; Appointment of Representatives on Discretionary Boards; approval of Council Liaison Assignments and various Council Sub-Committees for 2025
68 (Mayor/City Clerk)
Recommended Action
Appoint Council Member Cyndee Edwards as Mayor Pro Tempore; appoint representatives to serve on the various County or Regional Discretionary Boards; and approve Council Liaison Assignments and Council Sub-Committees for calendar year 2025 as shown on the

attached appointment list.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The next Regular Meeting will be held on January 14, 2025.

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.

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
November 12, 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 Cyndee Edwards
Council Member Jennifer Ford
Staff Present: City Manager Yvonne Kimball
City Attorney Chris Neumeyer
City Clerk Dana Swanson
Finance Director Emily Conrad
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
Utilities Division Manager Damaris Hanson
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:32 p.m. with all members present.

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report
City Attorney Neumeyer announced no reportable action was taken in closed session.

4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/oon9Ss1pdLc?si=In6tbSj3XquDes0L&t=84

4.c City Manager Reports, Announcements and Presentations https://youtu.be/oon9Ss1pdLc?si=ccjWfLeTcUuelPIB&t=498

2 4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/oon9Ss1pdLc?si=rotRxL75yHE-LnLt&t=792
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/oon9Ss1pdLc?si=Ig5VwvNKLSIad18v&t=855

5.a Morro Bay Police Explorer Post 43 Recognition

6. PUBLIC COMMENT
https://youtu.be/oon9Ss1pdLc?si=IwL_2SXBjlzo9625&t=1261  Linda Winters, Morro Bay, announced recent and upcoming community events.
 Larry McNally, Morro Bay, expressed concern about potential fires related to battery energy storage projects.
 Kiernan Cottle, Morro Bay, offered comments.
 Garry Johnson, Morro Bay, thanked Morro Bay citizens for passing Measure A-24.
 Joe Yukich, Morro Bay, commended Morro Bay Police Department for their work and voiced concerns about the proposed Panorama project.  Dina Lundquist, Morro Bay Chamber of Commerce, announced upcoming events and thanked the community and business leaders for attending Shop, Sip and Stroll.
 Bill Martony, Morro Bay, suggested alternative locations for the proposed Vistra Plant.
 Betty Winholtz, Morro Bay, expressed concern and frustration regarding the City's tree trimming practices.
 Nattalia Merzoyan, Morro Bay, shared her appreciation for the current Council, congratulated the newly elected members, and offered information from a REACT Alliance event.

3  Betsy Gaudette-Cross, Morro Bay, requested improvements to the bike path near Cloisters and expressed concern regarding the proposed development at 3300 Panorama.
 Michelle Leicester-Cadaret, Morro Bay, commented on potential flooding and traffic impacts related to the proposed development at 3300 Panorama.
 An unnamed resident, opposed the battery storage project and suggested other methods of repairing sidewalks while preserving trees.

End of public comment.

7. CONSENT AGENDA
https://youtu.be/oon9Ss1pdLc?si=n_bRO4On9us2sgPZ&t=3433 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; seeing none, the public comment was closed.

Council Member Edwards pulled Item 7.d.

Motion by Council Member Edwards
Seconded by Council Member Ford
Approve Items 7.a through 7.c. as submitted.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford
CARRIED (5 to 0)

7.a Approval of Minutes
Approve as submitted.
a. October 22, 2024 - Regular Council Meeting

7.b Approval of Fiscal Year 2023-24 Year-End Budget Amendments 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

4 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
https://youtu.be/oon9Ss1pdLc?si=h36rgzJzv-KdW2Q8&t=3490 The Mayor and Council Members recognized Morro Bay Beautiful volunteers for their decades of service to the community.

Motion by Mayor Wixom
Seconded by Council Member Landrum
Accept the monetary donation from Morro Bay Beautiful and authorize the City Manager to execute the Donation Agreement.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford CARRIED (5 to 0)

8. PUBLIC HEARING ITEMS

8.a Review and Adopt Draft Funding Recommendations for the 2025 Community Development Block Grant (CDBG) Program
https://youtu.be/oon9Ss1pdLc?si=9_uKvSR41xFFg3xF&t=3646 Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 8.a.
https://youtu.be/oon9Ss1pdLc?si=5_T0IbXf3Mlv_LU-&t=4592  Betty Winholtz, Morro Bay, expressed interest in leaving the consortium and was concerned funds were being used for sidewalk repairs rather than helping the homeless. She also restated her concerns about removal of major vegetation.
 Mandy Davis agreed with the previous speaker and urged the City to repair sidewalks without harming or destroying trees.  Nattalia Merzoyan, Morro Bay, commented on the importance of planting trees correctly to force the roots down below the problem zone.
 Michelle Leicester-Cadaret, Morro Bay, urged the City to allocate funds for homeless services rather than public works projects.

End of public comment.

5 Motion by Council Member Ford
Seconded by Council Member Landrum
Approve the 2025 draft funding recommendations for the two applications received under Resolution No. 71-24.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford CARRIED (5 to 0)

9. BUSINESS ITEMS
The Council took a brief recess at 7:19 p.m. and reconvened at 7:28 p.m. with all members present.

9.a Discussion and Direction regarding Agreement for City Attorney Services
https://youtu.be/oon9Ss1pdLc?si=tL4cVwFdLA3lE-dc&t=6487 Fire Chief McCrain, who was Acting City Manager at the time the issue arose, presented the item.

Mayor Wixom opened public comment for Item 9.a.
https://youtu.be/oon9Ss1pdLc?si=Ews-LDzf4H-LXxrA&t=6775  Martin Koczanowicz, Aleshire & Wynder, LLP, provided a brief resume and committed to seamlessly provide services should the Council vote to remain with the firm.
 Jeff Heller, Morro Bay, urged the Council to retain Mr. Neumeyer's service with the new firm for at at least six months to a year, then explore other alternatives if that's the desire of Council.  Betty Winholtz, Morro Bay, suggested the Council stay with Aleshire & Wynder for 4-6 weeks, leaving the decision to the new Council.
 Nicole Dorfman, Morro Bay, supported maintaining the current firm until new council is seated.
 Judy Setting, Morro Bay, agreed this decision should be made by the new council.

End of public comment.

Mr. Neumeyer offered comments, apologized for the short notice, and shared he would be privileged and honored to continue serving Morro Bay.

6 Motion by Mayor Wixom
Seconded by Council Member Landrum
Keep the current contract with Aleshire & Wynder for City Attorney Services and request a new City Attorney and Assistant Attorney from Aleshire & Wynder to start November 14th in two days because that is how much notice we have.

The motion was seconded for discussion.

Motion by Council Member Ford
Seconded by Council Member Edwards
A substitute motion was made to approve the agreement with Burke Williams and Sorenson for a City Attorney Services and appoint current City Attorney Chris Neumeyer as City Attorney and terminate agreement with Aleshire & Wynder for City Attorney services with the exception of closure on ongoing items to be specified.

Pursuant to Robert's Rules of Order, the Council addressed and voted on the Substitute Motion first. The Substitute Motion carried 3-2, therefore no vote was taken on the primary motion.

Ayes (3): Council Member Barton, Council Member Edwards, and Council Member Ford
Noes (2): Mayor Wixom, and Council Member Landrum
CARRIED (3 to 2)

9.b Discussion on Potential Battery Energy Storage Systems (BESS) Urgency Ordinance
Council Member Ford declared a conflict on this item. (Due to a perceived conflict as her employer has worked on battery energy legislation in the past.)
https://youtu.be/oon9Ss1pdLc?si=XahPoR22kVgavOak&t=9789 Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 9.b.
https://youtu.be/oon9Ss1pdLc?si=7RQVW26NMfLmPPXI&t=11068  Betty Winholtz, Morro Bay, urged the Council to adopt an urgency ordinance to prevent new BESS applications from being submitted.

End of public comment.

7 Motion by Council Member Landrum
Seconded by Mayor Wixom
Direct staff to draft an urgency ordinance for battery energy storage systems and prepare findings satisfying requirements of the Government Code that there's an immediate threat to health, safety and wellfare, and return to a future Council meeting.

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

9.c General Plan Annual Progress Report for Reporting Year 2023 https://youtu.be/oon9Ss1pdLc?si=YEZCBFt-olKRNrNU&t=11479 Council Member Ford returned to the dais.

Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 9.c.; seeing none, the public comment period was closed.

No formal action was taken by the City Council.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
None.

11. ADJOURNMENT
The meeting adjourned at 9:04 p.m.
/s/ Dana Swanson, City Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
November 12, 2024, 3:30 p.m.

City Hall Conference Room
595 Harbor Street, Morro Bay, CA 93442
Members Present: Mayor Carla Wixom
Council Member Zara Landrum
Council Member Laurel Barton
Council Member Cyndee Edwards
Council Member Jennifer Ford
Staff Present: City Manager Yvonne Kimball
City Attorney Chris Neumeyer
Community Development Director Airlin Singewald
Fire Chief Dan McCrain
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom established a quorum and called the meeting to order at 3:30 p.m.

2. SUMMARY OF CLOSED SESSION ITEMS

3. CLOSED SESSION PUBLIC COMMENT
Mayor Wixom opened public comment for items on the agenda; seeing none, the public comment period was closed.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Potential initiation of litigation pursuant to Government Code Section 54956.9(d)(4): (two potential cases)

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. The Council did not take any reportable action in accordance with the Brown Act.

6. ADJOURNMENT
The meeting adjourned at 4:33 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

Prepared By: ____EC______ Dept Review: ____EC__
City Manager Review: ___YK___ City Attorney Review: __LNL___ AGENDA NO: 7.b
MEETING DATE: December 10, 2024
Staff Report
TO: Honorable Mayor and City Council DATE: November 20, 2024 FROM: City Manager Yvonne Kimball
Emily Conrad, Finance Director
SUBJECT: Fiscal Year (FY) 2023-24 Status Report on Receipt and Use of Development Impact Fees (Annual Report and Five-Year Findings re Unexpended Funds)

RECOMMENDED ACTION
Adopt Resolution No. 73-24 accepting the Fiscal Year (FY) 2023-24 status report on receipt and use of Development Impact Fees.

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

BACKGROUND/DISCUSSION
To ensure that mitigation fees associated with development are spent in a timely manner and on projects for which they were being collected, the State Legislature passed a bill known as AB 1600 (the Mitigation Fee Act). This bill applies to developer fees which were increased or imposed on or after January 1, 1989.

The Mitigation Fee Act (California Government Code, Section 66000 et seq.) requires local agencies that impose Development Impact Fees to present an annual, consolidated report showing the receipt and use of those fees. The Annual Status Report (Attachment 1) must be available for review by the Council within 180 days after the close of the fiscal year represented.

The AB 1600 report is required to be accessible to the public for viewing at least 15 days prior to the public meeting. In accordance with this legal requirement, the report for FY 2023-24 (July 1, 2023 to June 30, 2024) was posted to the City’s website November 22, 2024.

The City collects the following Development Impact Fees that are subject to the AB 1600 reporting requirements:
 Government Impact Fees (Fund 900)
o General Government (Administration)
o Police
o Fire
o Traffic (Streets)
o Storm Drain
o Parks
 Affordable Housing In-Lieu Fees (Fund 941)
 Water Impact Fees (Fund 921)
 Sewer Impact Fees (Fund 922)
 Miscellaneous Impact Fees (Fund 515)
o Highway 41/Main Impact
o Traffic Impact
o Sewer Master Plan Impact

o Flood Hazard Plan Impact
o Calvary Baptist Drain Impact
Separate balances exist for each of these fees either as individual accounts or separate funds.

As required by AB 1600, as of June 30, 2024, all accounts or funds with unspent balances have been credited interest revenue at the City’s current interest rate earned on its total investment portfolio.

AB 1600 requires that a status report be prepared annually which must include a brief description of the fee and the fund into which the fee was deposited; the associated fund’s beginning and ending balances for the fiscal year; the total amount of the fees collected and interest earned; each public improvement on which impact fees were expended and amount of the expenditure on each improvement; and other information about the public improvement projects or interfund loans, if applicable.

In addition to annual report information, Government Code section 66001, subdivision (d) of the Mitigation Fee Act mandates the requirement that beginning with the fifth fiscal year following deposit of development fees into a designated account, and each fifth fiscal year thereafter, the City must make specified findings regarding any portion of the fees that remain unexpended.

The information is presented in the attached FY 2023-24 Annual Status Report on Receipt and Use of Development Impact Fees and resolution of specified findings.

CONCLUSION
Staff recommends Council adopt Resolution No. 73-24 and accept the FY 2023-24 Annual Status Report on Receipt and Use of Development Impact Fees as required under the Mitigation Fee Act (AB 1600).

ATTACHMENT(S):

1. Annual Status Report on Receipt and Use of Development Impact Fees for FY 2023-24

2. Resolution No. 73-24 making findings for unexpended Development Impact Fees and accepting the FY 2023-24 Annual Status Report on Receipt and Use of Development Impact Fees

1 CITY OF MORRO BAY

ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES JUNE 30, 2024
Government Impact Fees
Government Impact Fees are collected to ensure that new development pays the cost of infrastructure expansion required to meet the needs of that new development, effectively transferring the cost burden of growth from the existing rate and taxpayers.

The collected fees are held in fund 900, Government Impact Fees Fund. They can be used for capital projects for new facilities, vehicles, and rehabilitation and/or renovation of existing facilities, so long as the rehabilitation or renovation is needed to serve the new development that has paid the fee.

Potential future projects are provided below. These are potential projects and may or may not be approved in the City’s current budget. Any expenditure from these funds would require advance Council authorization and approval.

Beginning Fund Cash Balance FY 2023-24 (07/01/2023) 1,753,623 Bal Fees Interest Fees Remaining
7/1/2023 Collected Earned Used Balance
Administration Fees $ 678,201 $ 40,455 $ 8,693 $ - $ 727,350 Police Fees $ 56,610 $ 13,443 $ 2,889 $ 47,000 $ 25,942 Fire Fees $ 92,563 $ 14,767 $ 3,173 $ 80,000 $ 30,504
Street Fees $ 655,962 $ 64,453 $ 13,850 $ 597,950 $ 136,315 Storm Drain Fees $ - $ 44,371 $ 9,535 $ - $ 53,906
Parks Fees $ 270,286 $ 60,367 $ 12,972 $ 292,300 $ 51,325 $ 1,753,623 $ 237,856 $ 51,111 $ 1,017,250 $ 1,025,341
Uses of Funds
Interfund Transfer to Local Roadway Safety Plan $ 47,000 Interfund Transfer to Bonita Fire Station Remodel $ 80,000 Interfund Transfer to Hwy 1/Hwy 41 Main Intersection $ 597,950 Interfund Transfer to Coleman Park Project $ 292,300
Total Use of Funds $ 1,017,250
Total Ending Balance FY 2023-24 (06/30/2024) $ 1,025,341

2 Government Impact Fees Potential Future Projects
Fund 900
Potential Future Projects Total Funds Available
Administration Fees
City Administration Facility improvements TBD
Development Impact Fee Nexus Study $ 60,000
Veteran's Hall Building Improvements $ 500,000
Total Potential Admin Projects $ 560,000 $ 718,656
Police Fees
Police Department Facility Improvements TBD
Total Potential Police Projects $ - $ 23,054
Fire Fees
Bonita Fire Station Remodel TBD
Total Potential Fire Projects $ - $ 27,330
Street Fees
Local Road Safety Plan Implementation and $ 200,000
Safety Improvement
SR1/SR41/Main Street Intersection Improvements $ 2,100,000 Total Potential Street Projects $ 2,300,000 $ 122,465
Storm Drain Fees
Storm Drain Improvements $ 80,000
Total Potential Storm Drain Projects $ 80,000 $ 44,371
Parks Fees
Coleman Park Project $ 1,400,000
Total Potential Parks Projects $ 1,400,000 $ 38,353
Total Potential Future Projects $ 4,340,000 $ 974,229

3 Affordable Housing In-Lieu Fees
Affordable Housing In-Lieu Fees are collected from residential development projects when the construction of affordable housing units is impractical. The required in-lieu fee is to be paid to the City prior to the issuance of a building permit (where square footage is added) or a final tract map. The Affordable Housing In-Lieu Fee is $0.45 per square foot. The collected fees are held in the 941 fund and used solely for the affordable housing program activities, such as the Housing Element development and implementation, or transfer to another public agency for providing affordable housing in the City.

Sewer Impact Fees
Pursuant to Government Code, revenues derived from the City’s impact fees can only be used for the purpose for which the charges are collected. Wastewater impact fees recover costs for buying in to existing facilities and assets. As such, this share of each fee represents a reimbursement to the City’s existing customer base for previously funded facilities and may potentially be used for any purpose.

However, the City’s practice is conservative and uses these fees to exclusively fund capital improvements.

The collected fees are held in the 922 fund and are used solely for wastewater capital improvements.

Beginning Fund Cash Balance FY 2023-24 (07/01/2023) $ 147,192 Sources of Funds
Bal Fees Fees Remaining
7/1/2023 Collected Used Balance
$ 147,192 $ 11,479 $ - $ 162,146
Uses of Funds
No Funds Used in FY 2023-24 $ -
Total Use of Funds $ -
Total Ending Balance FY 2023-24 (06/30/2024) $ 162,146
Potential Future Projects
Local Housing Agency or affordable housing/homelessness project $ 55,000 Total Potential Projects $ 55,000
Beginning Fund Cash Balance FY 2023-24 (07/01/2023) $0.00 Sources of Funds
Bal Fees Fees Remaining
7/1/2023 Collected Used Balance
$ - $ 34,358 $ 34,358 $ -
Uses of Funds
Interfund Transfer to WRF Capital Project $ 34,358
Total Use of Funds $ 34,358
Total Ending Balance FY 2023-24 (06/30/2024) $0.00
Potential Future Projects
Beachcomber Sewer Improvements $ 6,200,000
Total Potential Projects $ 6,200,000

4 Water Impact Fees
Pursuant to Government Code, revenues derived from the City’s impact fees can only be used for the purpose for which the charges are collected. Water impact fees are designed to recover the cost of existing water system facilities and assets as well as the cost of system upgrades and expansion needed to serve the City. The collected fees are held in the 921 fund and are restricted to be used solely for water system facilities, assets and system upgrades and expansion.

Trust & Agency Fund Impact Fee Revenues
The city has historically used the Trust & Agency fund (fund 515) to hold funds with restricted purposes.

Three impact fees remain in the Trust & Agency fund: traffic impact, sewer master plan impact, and flood hazard plan impact. In addition, previous years balances exist for the Highway 41/Main Impact, Storm Drain Impact and Calvary Baptist Drain Impact. These funds are restricted to use of related projects and improvements.

Beginning Fund Cash Balance FY 2023-24 (07/01/2023) $0.00 Sources of Funds
Bal Fees Fees Remaining
7/1/2023 Collected Used Balance
$ - $ 34,231 $ 34,231 $ -
Uses of Funds
Interfund Transfer to WRF Capital Project $ 34,231
Total Use of Funds $ 34,231
Total Ending Balance FY 2023-24 (06/30/2024) $0.00
Potential Future Projects
Nutmeg Tank and other Pressure Zone Improvements $1,800,000 Morro Basin Wellfield Improvements $1,250,000
Total Potential Projects $3,050,000
Beginning Fund Cash Balance FY 2023-24 (07/01/2023) $442,131 Sources of Funds
Bal Fees Fees Remaining
7/1/2023 Collected Used Balance
Highway41/Main (2600) $ 228,050 $ - $ 228,050 $ -
Traffic Impact/All Sources (2607) $ 49,973 $ - $ - $ 49,973 Storm Drain (2613) $ 14,374 $ - $ - $ 14,374
Calvary Baptist Drain Impact ( 2616) $ 314 $ - $ - $ 314 Sewer Master Plan (2622) $ 146,073 $ - $ 95,000 $ 51,073 Flood Hazard Plan ( 2740) $ 3,348 $ - $ - $ 3,348
$ 442,131 $ - $ 323,050 $ 119,082
Uses Of Funds
Interfund Transfer to Hwy 41/Main/1 Capital Project $228,050 Interfund Transfer to One Water Plan Capital Project $95,000 Total Use of Funds $323,050
Total Ending Balance FY 2023-24 (06/30/2024) $119,082

5 Potential future projects using impact fee balances in the Trust and Agency Fund (515) are provided below.

These are potential projects and may or may not be approved in the City’s current budget. Any expenditures from these funds would require advance Council authorization and approval.

Potential Future Projects Funds Available
Traffic Impact/All Sources $ 49,973
Pavement Improvement Project $ 5,000,000
Potential Future Projects $ 5,000,000 $ 49,973
Storm Drain Impact $ 14,374
Storm Drain Improvements Citywide $ 1,000,000
Potential Future Projects $ 1,000,000 $ 14,374
Calvary Baptist Drain Impact $ 314
Local Road Safety Plan Plan Impementation and Safety Improvements $ 367,000 Potential Future Projects $ 367,000 $ 314
Sewer Master Plan Impact
One Water Plan Update $ 190,000 $ 51,073
Potential Future Projects $ 190,000 $ 51,073
Flood Hazard Plan Impact $ 3,348
Storm Drain Improvements Citywide $ 1,000,000
Potential Future Projects $ 1,000,000 $ 3,348
Total Potential Future Projects & Available Funds $ 7,557,000 $ 119,082

RESOLUTION NO. 73-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

MAKING FINDINGS FOR UNEXPENDED DEVELOPMENT FEES
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 66000

AND REVIEWING AND ACCEPTING ANNUAL DEVELOPMENT FEE

DISCLOSURE INFORMATION

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Mitigation Fee Act, Government Code Section 66000 et seq., authorizes the City to impose, collect, and expend mitigation fees to offset the impacts of development within the City; and
WHEREAS, among the procedural requirements mandated by the Mitigation Fee Act is a requirement that beginning with the fifth fiscal year following deposit of development fees into a designated account, and each fifth fiscal year thereafter, the City make specified findings regarding any portion of the fees that remain unexpended; and WHEREAS, the City has deposited all development impact fees that it has received in a separate non-commingled capital facilities fund established for such a purpose, pursuant to Government Code Sections 66006(a) and (b); and WHEREAS, a portion of the fees currently deposited in the City’s Development Impact Funds for: General Government (Administration), Traffic (Streets), Parks, Highway 41/Main Street, Traffic Impact, Storm Drain, Calvary Baptist Drain, Sewer Master Plan, and Flood Hazard Plan were collected over five years ago, and therefore the City wishes to make the findings required by Government Code Section 66001(d); and WHEREAS, the City also wishes to memorialize that it has made public certain information, pursuant to the annual information disclosure requirements of Government Code Section 66006(b), including but not limited to the amount of the fee, the beginning and ending balance of the fee account or fund, and the interest earned thereon, available to the public at least fifteen (15) days before the City Council considers this matter. The information required by Government Code Sections 66001 and 66006 is set forth in the FY 2023-24 AB1600 Annual and Five-Year Report: City of Morro Bay (“Development Impact Fee Report”) considered concurrently herewith; and
WHEREAS, on November 22, 2024, the information in the above-referenced recital was made available to the public as required by Government Code Section 66006(b); and WHEREAS, on December 10, 2024, the above-referenced recitals were presented to City Council at a duly noticed, regularly scheduled public meeting.

NOW, THEREFORE, the City Council of the City of Morro Bay hereby finds, determines, and resolves as follows:

2 Section 1. The recitals set forth above are true and correct and are incorporated herein by reference.

Section 2. The City Council has considered the full record before it, which may include but is not limited to the staff report, the Development Impact Fee Report, testimony by staff and the public, and other materials and evidence submitted or provided.

Section 3. The City Council finds that the General Government (Administration) Development Impact Fee Fund currently contains $411,083.49. in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:

A. Additional funds are needed to renovate city Administration facilities and the Veteran’s Memorial Hall.

B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because expanded City facilities are required to accommodate the additional service needs associated with the properties that paid these fees.

C. The estimated total cost of expanded administrative facilities such as City Hall will be updated in the forthcoming capital needs assessment. The City’s funding sources will include unexpended Development Impact Fees of $411,083.49, future fees, and other available capital funding sources.

D. The unexpended fees were deposited in the Administration Development Impact Fees Fund, which is the appropriate fund to finance administrative facilities. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2026.

Section 4. The City Council finds that the Traffic Development Impact Fee Fund currently contains $49,972.98 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:

A. Additional funds are needed to design and implement traffic improvements to mitigate impacts of new development.

B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements will mitigate impacts of development of the properties that paid these fees.

C. The estimated total cost of traffic improvements will be updated in the forthcoming capital needs assessment. The City’s funding sources will include unexpended Development Impact Fees of $49,972.98, future fees, and other available capital funding sources.

D. The unexpended fees were deposited in the Traffic Development Impact Fees Fund, which is the appropriate fund to finance these traffic improvements. All future fees will also be deposited into this fund. The approximate date by which the above

3 Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2026.

Section 5. The City Council finds that the Storm Drain Development Impact Fee Fund currently contains $4,208.00 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:

A. Additional funds are needed to design and improve the City’s storm drain facilities to accommodate new development.

B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the storm drain improvements will mitigate impacts of development from the properties that paid these fees.

C. The estimated total cost of storm drain improvements will be updated in the forthcoming capital needs assessment. The City’s funding sources will include unexpended Development Impact Fees of $4,208.00, future fees, and other available capital funding sources.

D. The unexpended fees were deposited in the Storm Drain Development Impact Fees Fund, which is the appropriate fund to finance these storm drain improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2026.

Section 6. The City Council finds that the Calvary Baptist Drain Development Impact Fee Fund currently contains $314.36 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:

A. Additional funds are needed to design and improve the storm drain adjacent to Calvary Baptist.

B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements to the storm drain will help mitigate the impact from development of the properties that paid these fees.

C. The estimated total cost of this storm drain improvement will be updated in the forthcoming capital needs assessment. The City’s funding sources will include unexpended Development Impact Fees of $314.36, future fees, and other available capital funding sources.

D. The unexpended fees were deposited in the Calvary Baptist Storm Drain Development Impact Fees Fund, which is the appropriate fund to finance this storm drain improvement. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2026.

4 Section 7. The City Council finds that the Sewer Master Plan Development Impact Fee Fund currently contains $51,072.58 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:

A. Additional funds are needed to update the City’s Sewer Master Plan.

B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the Sewer Master Plan will positively impact the properties that paid these fees.

C. The estimated total cost of Sewer Master Plan will be updated in the forthcoming update to the One Water Plan and any required follow up. The City’s funding sources will include unexpended Development Impact Fees of $51,072.58, future fees, and contributions from the Sewer Operating Fund.

D. The unexpended fees were deposited in the Sewer Master Plan Development Impact Fees Fund, which is the appropriate fund to finance the Sewer Master Plan development. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2026.

Section 8. The City Council finds that the Flood Hazard Development Impact Fee Fund currently contains $2,391.00 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows:

A. Additional funds are needed to improve flood hazard areas in the city.

B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements to the flood hazard areas will help mitigate impacts from development of the properties that paid these fees.

C. The estimated total cost of improvements to the flood areas will be updated in the forthcoming capital needs assessment. The City’s funding sources will include unexpended Development Impact Fees of $2,391.00, future fees, and other available capital funding sources.

D. The unexpended fees were deposited in the Flood Hazard Development Impact Fees Fund, which is the appropriate fund to finance the improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2026.
//
//
//

5 Section 10. In accordance with Government Code Section 66006(b), the City Council has reviewed and accepted the annual disclosure information made available to the public regarding City mitigation fees, which was presented to the City Council and also placed on file with the City Clerk.

PASSED, APPROVED AND ADOPTED this 10
th day of December 2024.

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

CARLA WIXOM, Mayor
ATTEST:

DANA SWANSON, City Clerk

Prepared By: ___DS_____ Dept Review: _____
City Manager Review: __YK_____ City Attorney Review: ______ Staff Report
TO: Honorable Mayor and City Council DATE: November 27, 2024 FROM: Yvonne Kimball, City Manager
SUBJECT: Authorization for Attendance at the C-MANC Annual Washington, D.C., “Washington Week” Meetings

RECOMMENDED ACTION
Authorize a three-person delegation to attend the California Marine Affairs and Navigation Conference (C-MANC) 2025 “Washington Week” meetings in Washington, D.C. slated for February 10 – 14, 2025, and to represent the City’s interests in the nation’s capital. It is anticipated the Mayor, City Manager and Harbor Vitality Director will attend the Conference; however, staff recommends the Council authorize Council Member Landrum, as the liaison to the Harbor Advisory Board, as an alternate to be the third representative should one of the others be unable to attend.

ALTERNATIVES
Do not approve authorization for the “Washington Week” C-MANC delegation.

FISCAL IMPACT
The total hard costs for airfare, hotel, and monetary contribution to the Golden State Reception for the “Washington Week” meetings are estimated at $8,000 - $10,000 for three persons, not including approximately $2,000 in staff time in preparatory meeting attendance, grant preparation, and travel/meeting logistics. The Harbor Department has been approved for a grant of $8,000 from the Central Coast Joint Cable Fisheries Liaison Committee for this trip. Expenses above $8,000 will be assumed by the Harbor Fund.

BACKGROUND/DISCUSSION
C-MANC annually hosts Washington Week meetings, where representatives of California Ports and Harbors have the opportunity to remind Congress and various other agencies of the importance of dredging projects, commercial fishing, ocean and coastal management and other coastal-related issues in California. The City of Morro Bay is a long-standing member of C-MANC, and for over 25 years has sent representatives to the “Washington Week” meetings.

From an Army Corps of Engineers (Corps) priority standpoint, Morro Bay is considered a small or “subsistence” harbor. Because of our relative isolation, however, “harbor of safe refuge” status, United States Coast Guard presence and periodically dangerous harbor entrance, Morro Bay’s rank in priority for funding is elevated above a “subsistence” harbor, and we have been successful in having our dredging needs met continuously.

AGENDA NO: 7.c
MEETING DATE: December 10, 2024

The City could not afford to dredge our harbor without the Corps, as annually the Corps spends $2.5- $3 Million to dredge our entrance. The City and Harbor Department were successful in obtaining $14.5 Million to dredge the entire Harbor channel past the boat ramp during the 2023 trip to Washington D.C.

In 2024 the City cemented $16 million dredging funding through interactions with Congressman Carbajal’s office The annual dredging will continue in 2025. Continued dredging of ours and others’ Federally authorized harbor entrance and channels remains a top priority of C-MANC, and our work with the Corps and our Washington D.C. visits remain a vital component to secure the necessary funding that will ensure our harbor remains not only safe for passage, but fully navigable from a commerce and operational standpoint.

In addition to the dredging funding, the City has begun the process of seeking funding from the Corps for revetment repairs. Advocacy for our commercial fishing industry and its many facets also remain a very high priority during Washington Week, and in recent years visits with the Bureau of Ocean Energy Management (BOEM) regarding the recent leases for offshore wind energy power generation projects on the Central Coast. In previous years, the City team also met with our Senators, Congressmembers, U.S. Environmental Protection Agency (EPA), Department of Housing and Urban Development, Department of Transportation and other agencies to discuss important issues at Morro Bay.

CONCLUSION
It is critically important for the California C-MANC delegation to maintain its many relationships in Washington and a seat at the D.C. table, in addition to bringing a unified voice to D.C. of the importance of all of California’s ports and harbors, large and small, to the national economy and security.

Staff is therefore recommending approval of City Council authorization to send a delegation of threepersons to C-MANC’s “Washington Week” proceedings.

ATTACHMENT
None

Prepared By: ___AD/CC Dept Review: _DH__
City Manager Review: _YK_______ City Attorney Review: __LNL___ Staff Report
TO: Honorable Mayor and City Council DATE: Nov. 25, 2024 FROM: Cindy Cecil, City Engineer
SUBJECT: Acceptance of Two Hazard Mitigation Grants: 1) Advanced Assistance – Floodproof Reverse Osmosis Water Treatment Facility Building Grant - DR4683- AP01233; and 2) Advanced Assistance – Storm Drain Assessment Grant - DR4683-AP01231

RECOMMENDED ACTION
Adopt Resolution No. 74-24 and Resolution No. 75-24, accepting the award of the following grants:

1. Floodproof Reverse Osmosis Water Treatment Facility Grant totaling $306,197.32 for studying and identifying the most effective mitigation project to protect the City’s reverse osmosis water treatment facility from floodwaters,

2. Storm Drain Assessment Grant totaling $1,075,944.20 for evaluating storm drain issues and conducting a watershed management plan to mitigate flooding risks in select areas of Morro Bay, and

3. Approve and sign Cal OES Form 130, which allows the approved Authorized Agent(s) to execute for and on behalf of the City of Morro Bay.

FISCAL IMPACT
Floodproof RO Facility Grant:
 Total project cost: $382,780
 Federal share: $287,085 (75% - federally funded)
 Non-federal share: $95,695 (25% - City funded*)
 Subrecipient Management Costs: $19,112.32 (100% federally funded) Storm Drain Assessment Grant:
 Total project cost: $1,345,200
 Federal share: $1,008,900 (75% - federally funded)
 Non-federal share: $336,300 (25% - City funded*)
 Subrecipient Management Costs: $67,044.20 (100% federally funded) *The budget for Fiscal Year (FY) 2024-25 was adopted before the grant funding award was received. As a result, the City’s share of $336,300 plus $95,695, totaling $431,995, is currently unfunded. If the grant award is approved, staff will request funding for the City’s share during the budget development cycles for FY 2025-26 and FY 2026-27. The non-federal share of $95,695 to floodproof the RO facility is anticipated to come from the Water Capital Improvement Fund and the $336,300 is anticipated to come from the General Fund Capital Improvement Fund, either as AGENDA NO: 7.d
MEETING DATE: December 10, 2024

a request for new funding or a reallocation from an existing, funded project.

BACKGROUND
The City of Morro Bay applied for funding under FEMA’s Hazard Mitigation Grant Program (HMGP) through the California Governor’s Office of Emergency Services (Cal OES) for two separate projects:

1. Floodproof RO Facility: This project seeks to enhance the resilience of the City's Reverse Osmosis Water Treatment Facility against flood risks caused by heavy rain events and storm surges. FEMA approved $287,085 for this project on October 25, 2024.

2. Storm Drain Assessment: This initiative focuses on conducting a hydrologic and hydraulic analysis to address flooding in the Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road areas. FEMA approved $1,075,944.20 for this project on October 15, 2024.

Both projects align with the City’s commitment to improving infrastructure resilience and addressing vulnerabilities related to climate change and extreme weather events.

DISCUSSION
Following the January and February storms and flooding of 2023, the City of Morro Bay applied for funding through the FEMA and Cal OES Hazard Mitigation Grant Program to address vulnerabilities in its critical infrastructure.

1. Floodproof RO Facility Project
This project involves floodproofing the City’s Reverse Osmosis Water Treatment Facility, a critical component of the municipal water system. Although the facility itself was not directly impacted during the 2023 storms, the associated Morro Basin well field was inundated, leading to equipment damage.

Key project activities:
 Conducting hydrologic and hydraulic analyses
 Developing and evaluating alternatives
 Preliminary engineering and design work
 Comprehensive benefit-cost analysis
The project timeline spans 36 months, concluding in October 2027.

2. Storm Drain Assessment Project
This project aims to mitigate flooding risks in key areas of the city by identifying effective stormwater solutions.

Key project activities:
 Hydrologic and hydraulic analysis of the Morro Creek Watershed  Development of a watershed management plan
 Alternatives analysis
 Preliminary engineering and design work
The project timeline spans 36 months, concluding by October 2027.

The proposed Grants will not cover construction costs for the implementation of the solutions found in this study/preliminary engineering phase of the project. The City will need to seek additional HMGP funding for the Construction phase of the proposed projects.

CONCLUSION
Staff recommends Council adopt Resolution No. 74-24 and Resolution No. 75-24, formally accepting the grant awards for these critical infrastructure resilience projects; and approve and sign Cal OES Form 130 that allows the approved Authorized Agents to execute for and on behalf of the City of Morro Bay.

ATTACHMENTS

1. Letter from FEMA for Floodproof RO Facility Grant

2. Letter from FEMA for Storm Drain Assessment Grant

3. Resolution No. 74-24

4. Resolution No. 75-24

5. Form OES-FPD-130 Designation of Applicant’s Agent Resolution for Non-State Agencies

U.S. Department of Homeland Security
FEMA Region 9
1111 Broadway, Suite 1200
Oakland, CA 94607
www.fema.gov
October , 2024
Robyn Fennig
Assistant Director, Hazard Mitigation
3650 Schriever Avenue
Mather, California 95655
Reference: Application Approval, HMGP DR-4683-1233-081R City of Morro Bay
Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility Building
FIPS Code: 079-49376, Supplement 55
Dear Robyn Fennig:

We approve and issue Hazard Mitigation Grant Program (HMGP) funds for the City of Morro Bay, DR-4683-1233-081R, Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility Building Flood Prevention.

The total project cost is $382,780.00 As shown in the enclosed Obligation Report - Supplement 55, we are obligating $287,085.00 for the 75 percent Federal share; the 25 percent non-Federal share is $95,695.00. We are obligating $19,112.32 for the 100% Federal share Subrecipient Management Costs. These funds are available in SmartLink for immediate and eligible disbursements. The following is a summary of the approved funding:

Funding Type: Federal Share: Non-Federal Share: Total Project Cost:

Supplement 55 $287,085.00 $95,695.00 $382,780.00
Management Costs $ 19,112.32 $ 0.00 $ 19,112.32
This HMGP project approval and obligation of funds are subject to the following conditions:

1. Scope of Work (SOW) The City of Morro Bay will identify the most effective mitigation heavy rain events. The project will include conducting a hydrologic and hydraulic (H&H) analysis of the watershed and existing storm drain system, performing alternatives analysis, and a benefit cost analysis. The project will also include preliminary design and engineering plans for the preferred alternative as well as environmental reviews and permitting. No

RECEIVED
OCT 7 2024

FINANCIAL PROCESSING UNIT
----------
079-49362 (AB)

Robyn Fennig
October , 2024

ground disturbing or structural activities are proposed as part of this Advance Assistance project, and none are permitted without prior notice to FEMA.

Project Completion Date The work schedule included with the project application indicates that the project will take 36 months to complete; therefore, the project completion date is October , 2027. Any work completed after this date will not be eligible for federal funding, and federal funds may be de-obligated for work completed outside the completion date when there is no approved time extension.

Project Closeout Within 120 days , all
project funds must be liquidated and final closeout documentation for the project must be submitted to FEMA. Please note the project must comply with Code of Federal Regulations Title 2, Part 200 reporting requirements at the time of closeout.

Record of Environmental Consideration (REC) This project has been determined to be Categorically Excluded from the need to prepare either an Environmental Impact Statement or Environmental Assessment in accordance with FEMA Instruction 108-1-1 and FEMA Directive 108-1-1 as authorized by DHS Instruction Manual 023-01-001-01, Revision 1.

Categorical Exclusion(s) A4 and A7 (concerning data analysis, surveys, and data collection of a minimally intrusive nature) has been applied. Particular attention should be given to the project conditions before and during project implementation. Failure to comply with these conditions may jeopardize federal assistance including funding. Please reference the enclosed REC for further information.

Standard Conditions This project approval is subject to the enclosed Standard Mitigation Grant Program (HMGP) Conditions, amended August 2018. Please note that federal funds may be de-obligated for work that does not comply with these conditions.

If you have any questions please contact Andrea Harvey, Senior Grants Management Specialist, by email at [email protected], or phone (202) 430-4878.

Sincerely,
Kathryn Lipiecki
Director, Mitigation Division
FEMA Region 9
Enclosures (3):

Obligation Report Supplement 55
Record of Environmental Considerations (REC)
Standard Mitigation Grant (HMGP) Conditions

Robyn Fennig
October , 2024

cc:

Services
Emergency Services
of Emergency Services
Emergency Services
Robert McCord, Chief, Hazard Mitigation Assistance Branch, FEMA Region 9

Obligation

HAZARD MITIGATION GRANT PROGRAM
FEDERAL EMERGENCY MANAGEMENT AGENCY HMGP-OB-01
State Recipient
Disaster
No
Supplemental
No
Action
No
State
Application ID
Amendment
No
FEMA
Project No
4683 - 0 1233 1 55 CA Statewide
Project Title : PCM: Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility
Subrecipient: Morro Bay
Subrecipient FIPS Code: 079-49376
81 R
10:55 AM
10/3/2024
FY
Subrecipient Management Project Amount Cost Amount Total Obligation IFMIS Date IFMIS Status $287,085.00 $19,112.32 $306,197.32 10/03/2024 Accept 2025 Comments
Comment: 4683-1233-81-PCM-Advanced Assistance-Floodproof Reverse Osmosis Water Treatment-$287,085.00 and Sub Recipient Managem Costs-$19,112.32
Date: 10/02/2024 User Id: SSCOTT39

STEVEN SCOTT

JARED PERI
Authorization
Preparer Name:

HMO Authorization Name:

Preparation Date: 10/02/2024
HMO Authorization Date: 10/03/2024
Total Amount
Previously Allocated
Total Amount
Previously Obligated
Total Amount
Pending Obligation
Total Amount Available
for New Obligation
$0.00 $0.00 $287,085.00 $287,085.00

1 Standard Mitigation Grant Program (HMGP) Conditions
FEMA Region IX, August, 2018
The following list applies to Recipients and Subrecipients accepting HMGP funds from the Federal Emergency Management Agency (FEMA) of the Department of Homeland Security (DHS):

1. Applicable Federal, State, and Local Laws and Regulations. The Recipient/Subrecipient must comply with all applicable Federal, State, and Local laws and regulations, regardless of whether they are on this list or other project documents. DHS financial assistance Recipients and Subrecipients are required to follow the provisions of the State HMGP Administrative Plan, applicable Hazard Mitigation Assistance Uniform Guidance, and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards located in Title 2 of the Code of Federal Regulations (CFR) Part 200, adopted by DHS in 2 CFR 3002.

2. Financial Management Systems. The Recipient and Subrecipient must maintain financial management systems to account for and track funds, as referenced in 2 CFR 200.302.

3. Match or Cost Share. Non-federal match or cost share must comply with 2 CFR 200.306, the scope of work (SOW), and any agreements among the Subrecipient, the Recipient, and FEMA.

4. Budget Changes. Unanticipated adjustments are permitted within the approved total cost. However, if costs exceed the federal share, the Subrecipient must notify the Governor’s Authorized Representative (GAR) of overruns before implementation. The GAR shall submit a written request for approval to FEMA Region IX. The subaward must continue to meet HMGP requirements, including cost effectiveness and cost share. Refer to 2 CFR 200.308 for additional information.

5. Real Property and Land. The acquisition, use, and disposition must comply with 2 CFR 200.311.

6. Equipment. The acquisition, use, and disposition must comply with 2 CFR 200.313.

7. Supplies. Upon project completion, FEMA must be compensated for unused supplies, exceeding $5,000 (fair market value), and not needed for other federal programs. Refer to 2 CFR 200.314.

8. Procurement. Procurement procedures must be in conformance with 2 CFR 200.318-320.

9. Monitoring and Reporting Program Performance. The Recipient and Subrecipient must submit quarterly progress reports, as referenced in the 2 CFR 200.328 and State HMGP Administrative Plan.

10. Records Retention. In accordance with 2 CFR 200.333, financial/ programmatic records related to expenditures must be maintained at least 3 years after the date of Recipient’s final expenditure report.

11. Enforcement and Termination. If the Recipient or Subrecipient fails to comply with the award or subaward terms, whether stated in a Federal statute or regulation, the State HMGP Administrative Plan, subpplication, a notice of award, an assurance, or elsewhere, FEMA may take one or more of the actions outlined in 2 CFR 200.338, including termination or partial termination of the award or subaward outlined in 2 CFR 200.339.

12. Allowable Costs. Funds are to be used for allowable costs in compliance with 2 CFR 200.403, the approved SOW, and any agreements among the Subrecipient, Recipient, and FEMA.

2 13. Non-Federal Audit. The Recipient and Subrecipient are responsible for obtaining audits in accordance with the Single Audit Act of 1984, in compliance with 2 CFR 200.501.

14. Debarred and Suspended Parties. Recipients and Subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, and 2 CFR 180. These regulations restrict federal financial assistance awards, subawards, and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in the federal assistance programs or activities.

15. Equipment Rates. Rates claimed for use of Subrecipient-owned equipment in excess of the FEMAapproved rates must be approved under State guidelines issued by the State Comptroller's Office or must be certified by the Recipient to include only those costs attributable to equipment usage less any fixed overhead and/or profit.

16. Duplication of Funding between Public Assistance (PA) and HMGP. Funding for PA Section 406 and HMGP Section 404 are permitted on the same facility/location, but the activities identified under each program must be distinct with separately accounted funds. At closeout, FEMA may adjust the funding to ensure the Subrecipient was reimbursed for eligible work from only one funding source.

17. Historic Properties and Cultural Resources. In compliance with 2 CFR 800, if a potential historic property or cultural resource is discovered during construction, the Subrecipient must cease work in the area and take all reasonable measures to avoid or minimize harm to the discovered property/resource. During construction, the Subrecipient will monitor ground disturbance activity, and if any potential archeological resources are discovered, will immediately cease work in that area, and notify the Recipient and FEMA. Construction in the area may resume with FEMA’s written approval after FEMA’s consultation, if applicable, with the State Historic Preservation Officer (SHPO).

18. NEPA and Changes to the Scope of Work (SOW). To comply with the National Environmental Policy Act (NEPA), and other Laws and Executive Orders, any change to the approved SOW shall be re-evaluated before implementation. Construction associated with a SOW change, prior to FEMA approval, may be ineligible for funding. Acceptance of federal funding requires environmental permits and clearances in compliance with all appropriate federal, state and local laws, and failure to comply may jeopardize funding.

Within their authority, the Recipient and Subrecipient must use of all practicable means, consistent with other essential policies, to create and maintain productive harmony for people and nature, and fulfill the social, economic, and other needs of present and future generations of Americans.

F.O. Project #
Subrecipient
Check here if this project is receiving Prepare CA Match funding Hazard Mitigation Grant Programs
The Subaward POP end-date for the above referenced project Date of FEMA Award Letter
Number of months requested by subrecipient (1-48)
FEMA Award Letter include Subaward POP end-date
Current overall Grant POP end-date
Does the full-term POP fit within the current overall Grant POP? Non-Disaster Grant Programs
The Subaward POP end-date for the above referenced project Date of FEMA Award Letter
Number of months requested by subrecipient (1-48)
FEMA Award Letter include Subaward POP end-date
Current overall Grant POP end-date
Does the full-term POP fit within the current overall grant POP? Non-Disaster Financial Data
Proposed Federal Share % Proposed Non-Federal Share %
Total Project Costs
Subrecipient Management Costs
Grand Total
HM Financial Specialist will initiate a Time Extension request for a new overall Grant POP enddate that will accommodate the full-term of the subaward. Once the time extension is approved by FEMA, the HM Grant Specialist will initiate internal approvals of the individual subaward.

POP Determination

RESOLUTION NO. 74-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY OF MORRO BAY TO ENTER
INTO A GRANT AGREEMENT WITH THE CALIFORNIA GOVERNOR’S OFFICE OF

EMERGENCY SERVICES FOR THE ADVANCE ASSISTANCE- CITY OF MORRO

FLOODPROOF REVERSE OSMOSIS WATER TREATMENT FACILITY BUILDING (HMGP DR-4683-1233-081R) IN THE AMOUNT OF $306,197.32

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City of Morro Bay (City) applied for the Cal OES Hazard Mitigation Grant Program (HMGP) Grant for the total project cost of $382,780.00; and WHEREAS, Federal Emergency Management Agency awarded the City the funding grant in the amount of $306,197.32, which will allow the City to identify the most effective mitigation project to protect the City’s reverse osmosis treatment facility from floodwaters in heavy rain events.

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

1. The City is hereby authorized to enter into a Grant Agreement with Cal OES for Project HMGP DR-4683-1233-081R in the amount of $306,197.32 for identifying the most effective mitigation project to protect the City’s reverse osmosis treatment facility from floodwaters in heavy rain events.

2. The City Manager, Public Works Director or City Engineer, are hereby authorized to both act as the City’s agent in regard to all aspects of the grant contract agreement as well as to execute necessary documents related to the grant agreement on behalf of the City.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10
th day of December 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

RESOLUTION NO. 75-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY OF MORRO BAY TO ENTER
INTO A GRANT AGREEMENT WITH THE CALIFORNIA GOVERNOR’S OFFICE OF

EMERGENCY SERVICES FOR THE ADVANCE ASSISTANCE- CITY OF MORRO BAY STORM DRAIN ASSESSMENT (HMGP DR-4683-1231-079R) IN THE AMOUNT OF $1,075,944.20

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City of Morro Bay (City) applied for the Cal OES Hazard Mitigation Grant Program (HMGP) Grant for the total project cost of $1,345,200.00; and WHEREAS, Federal Emergency Management Agency awarded the City the funding grant in the amount of $1,075,944.20, which will allow the City to identify the most effective mitigation project to reduce flooding in the Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road areas of Morro Bay; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California as follows:

1. The City is hereby authorized to enter into a Grant Agreement with Cal OES for Project HMGP DR-4683-1231-079R in the amount of $1,075,944.20 for identifying the most effective mitigation project to reduce flooding in the Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road areas of Morro Bay.

2. The City Manager, Public Works Director or City Engineer, are hereby authorized to both act as the City’s agent in regard to all aspects of the grant contract agreement as well as to execute necessary documents related to the grant agreement on behalf of the City.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10
th day of December 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public entity established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under - Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12 That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
Rev. 10-2022 Page 1 of 4 OES-FPD-130 079-49362 City Council City of Morro Bay City of Morro Bay City of Morro Bay City Manager Public Works Director City Engineer

Please check the appropriate box below
This is a universal resolution and is effective for all open and future disasters/grants declared up to three (3) years following the date of approval.

This is a disaster/grant specific resolution and is effective for only disaster/grant number(s):

Passed and approved this __day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 2 of 4 OES-FPD-130 City Council City of Morro Bay City of Morro Bay ✔ 10 December 24 Dana Swanson City Clerk City Clerk 10th December 24

Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted resolution is older than three (3) years from the last date of approval, is invalid, or has not been submitted.

When completing the Cal OES Form 130, Applicants should fill in the blanks on pages 1 and 2. The blanks are to be filled in as follows:

Resolution Section:

Governing Body: This is the group responsible for appointing and approving the Authorized Agents.

Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.

Name of Applicant: The public entity established under the laws of the State of California.

Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.

Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services regarding grants for which they have applied.

There are two ways of completing this section:

1. Titles Only: The titles of the Authorized Agents should be entered here, not their names. This allows the document to remain valid if an Authorized Agent leaves the position and is replaced by another individual. If “Titles Only” is the chosen method, this document must be accompanied by either a cover letter naming the Authorized Agents by name and title, or the Cal OES AA Names document. The supporting document can be completed by any authorized person within the Agency (e.g., administrative assistant, the Authorized Agent, secretary to the Director). It does not require the Governing Body’s signature.

2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document, or their title changes.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 OES-FPD-130 Page 3 of 4

Checking Universal or Disaster-Specific Box: A Universal resolution is effective for all past disasters and for those declared up to three (3) years following the date of approval. Upon expiration it is no longer effective for new disasters, but it remains in effect for disasters declared prior to expiration. It remains effective until the disaster goes through closeout unless it is superseded by a newer resolution.

Governing Body Representative: These are the names and titles of the approving Board Members.

Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents. A minimum of three (3) approving board members must be listed. If less than three are present, meeting minutes must be attached in order to verify a quorum was met.

Certification Section:

Name and Title: This is the individual in attendance who recorded the creation and approval of this resolution.

Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member. If a person holds two positions (such as City Manager and Secretary to the Board) and the City Manager is to be listed as an Authorized Agent, then that person could sign the document as Secretary to the Board (not City Manager) to eliminate “Self-Certification.”

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 4 of 4 OES-FPD-130

Prepared By: YK Dept Review:___
City Manager Review: __YK______ City Attorney Review: __ Staff Report
TO: Honorable Mayor and City Council DATE: December 2, 2024 FROM: Yvonne Kimball, City Manager
SUBJECT: League of California Cities 2024 Annual Conference – Attendance Report

RECOMMENDED ACTION
Receive and file.

ALTERNATIVE(S)
None

BACKGROUND/DISCUSSION
I attended the League of California Cities Annual Conference and Expo in Long Beach October 16-18. Over 2,000 attendees and 200 exhibitors participated. The conference offered more than 50 educational programs and opportunities to converse with colleagues from other areas of the state, as well as new products and services from a variety of vendors.

Economic development, revenue enhancement tools, housing, homelessness, and good governance were the areas of focus of the conference, which coincides with our Council’s goals.

Here are some highlights.

The general opening session focused on real time and in-person communication. The speaker pointed out that emails only convey 30 percent of a message. She showed a study suggesting that when people are conversing in real time, their brain waves are in sync. She shared some tips for active listening while avoiding the urge to control conversation by offering solutions. For example, she suggested saying, “it must have been tough,” and “what do you think might help?” The other useful suggestion was to avoid “getting into the weeds” when aiming to be a good listener.

I also attended a session on “Show me the money. Evaluating and explaining city financial situations.” This presentation was led by a council member and the city manager from St. Helena.

I found Morro Bay and St. Helena have a lot in common. We are both small communities, blessed with beautiful scenery, providing full services with significant reliance on tourism revenues and city properties which can be used for economic development. Our citizens are educated and have high expectations of city services. St. Helena’s council members are united on some issues, including a tax measure. I also appreciated how the city council supported the staff’s ability to AGENDA NO: 7.e
MEETING DATE: December 10, 2024

2 communicate their value to the community. This helped to build trust between citizens and staff.

I’ve scheduled follow-up sessions with the St. Helena City Manager to learn more of his experience of facilitating trusting relationships.

Day 2 encompassed sessions on tools for economic development and grants. Grants are available for climate resilience related programs. A suggestion was a climate resilient district as a special taxing district. I want to evaluate this further. Many cities have special taxing districts to help generate revenue for specific strategic purposes. Due to interest rates, climate change, wildfires, changes from the pandemic and so on, the economic development landscape is uncertain. Investors are very cautious and expect concessions from local government. Many cities provided valued zoning property to attract developers. To effectively partner with developers/investors, cities need to know what questions to ask. This was also reflected in a legal session focused on drafting development agreements. A few larger cities shared their economic development programs including special taxing district, business attraction, organizing grand openings, workforce development, tourism and experience.

During Day 2’s legal session, attorneys shared that effective enforcement of development agreement terms can be difficult. They suggest a fine based penalty (which was suggested during our own discussions).

There were presentations on housing, land use laws and practices. The Builders Remedy presentation was interesting. Since Morro Bay’s housing element has been certified, this may not impact us. For this exemption to work, projects still need to meet CEQA and other qualifications. But this indicates that the state has imposed many exemptions and density by multiplying incentives to local governments to help builders “green light” dense housing projects.

Townhouses are currently the most popular build type.

The conference included homelessness presentations. I attended one where three cities in southern California shared their unique experiences. Santa Monica has their prosecution attorney lead their homeless program. They brought the court to encampment. Redondo Beach and Torrance gained grants for transitional tiny homes. Homeless Individuals are required to go through self-reliance programs before they are granted a home. The cities all have outreach programs to connect individuals with services that cities can’t provide. With the recent court decision of Grants Pass v. Oregon, cities practices do not change. The decision helped to give cities an enforcement tool. But outreach and connecting homeless individuals to services remain effective. I thought of Morro Bay Chief Watkins as she said the same thing! At the exhibit hall, I was intrigued by the solar street light demonstrations. It made me think about them as a possible solution to the Embarcadero at night. I learned not all artificial turf is bad for animals as technology and techniques have evolved, there are good products available. I also found the portable and decorative short fences for outdoor dining usages interesting. I connected with CA Community Choice Action at the exhibit hall. We will work with them next year when Morro Bay serves on Central Coast Community Energy (3CE) board.

As the City’s voting delegate, I voted “Yes” to the league’s proposed resolution and it passed by a majority vote. The resolution requested that the state impose the same restrictions applied to cities to the state legislature. Each of the league member cities has a voting delegate. I believe there are over 300 cities and more than 200 voting delegates attended the meeting.

Additionally, in networking with other cities, I heard council members’ experience with the election.

Although each experience is different and some face challenges, their devotion to public services

3 is admirable. I have always enjoyed learning how council members across the state and nation do their best to serve the communities they love.

ATTACHMENT(S)
None

Prepared By: __CJC___ Dept Review:

City Manager Review: YK City Attorney Review: LNL
Staff Report
TO: Honorable Mayor and City Council DATE: December 3, 2024 FROM: Cindy Cecil, City Engineer
SUBJECT: Consider Resolution No. 76-24 Approving Designation of City’s Agents in Applying for Reimbursement from the Cal OES and FEMA for possible future disaster related expenses and authorizing City’s agents to take all necessary actions for reimbursements

RECOMMENDED ACTION
Adopt Resolution No. 76-24 approving the Designation of Applicant’s Agent Resolution and authorizing the City Manager, or designee, to take all necessary actions to apply to California Governor’s Office of Emergency Services (Cal OES) and Federal Emergency Management Agency (FEMA) for reimbursement of eligible City costs resulting from possible future disaster events.

ALTERNATIVES
None recommended.

FISCAL IMPACT
No immediate fiscal impact. Approval and submission of the Resolution is part of the process of submitting a Cal OES and FEMA Request for Public Assistance through the State of California, which could result in the City being reimbursed for certain costs resulting from possible future disaster events.

BACKGROUND
In order to apply for FEMA Public Assistance, the City must (among other requirements) submit a “Request for Public Assistance” (RPA) to Cal OES. As part of the RPA, the City must submit a Designation of Applicant’s Agents Resolution. This Resolution designates City personnel who are authorized to submit the RPA to Cal OES on behalf of the City – specifically, the City Manager, the Public Works Director, and the City Engineer.

DISCUSSION
The Resolution designates the City Manager, the Public Works Director, and the City Engineer as authorized City representatives for purposes of submitting the RPA to Cal OES and FEMA. The City Council is being asked to approve this Resolution as a necessary element of the City’s application for Public Assistance from Cal OES and FEMA.

Further actions will be required to complete the RPA, and additional reimbursement may also be AGENDA NO: 7.f
MEETING DATE: December 10, 2024

available from other federal, state, and county sources. Therefore, this Resolution also authorizes the City Manager, the Public Works Director, and the City Engineer, to take all necessary actions and execute all necessary documents to apply for reimbursement of eligible City costs resulting from possible future disaster events, from the federal government, California government, and San Luis Obispo County, and any agency or department thereof.

CONCLUSION
The City Council is asked to approve the Designation of Applicant’s Agents Resolution as part of the City Request for Public Assistance from Cal OES and FEMA, and to authorize the City Manager, the Public Works Director, and the City Engineer to take any other necessary action to apply for reimbursement for City costs resulting from possible future disaster events.

ATTACHMENTS

1. Resolution No. 76-24

2. Applicant Agent Designation Cal OES form 130.

RESOLUTION NO. 76-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
AUTHORIZING APPROVAL OF DESIGNATION OF APPLICANT’S AGENT RESOLUTION

FOR SUBMISSION TO CAL OES

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, FEMA Public Assistance is distributed to California cities through the California Governor’s Office of Emergency Services (Cal OES); and WHEREAS, in order to apply for FEMA Public Assistance, the City must submit a “Request for Public Assistance” (RPA) to Cal OES. As part of the RPA, the City must submit a Designation of Applicant’s Agents Resolution. This Resolution designates City employees who are authorized to submit the RPA to Cal OES on behalf of the City; and WHEREAS, additional actions must be taken to complete the RPA; and WHEREAS, additional reimbursement for future disaster related costs may be available from other federal agencies, the State of California, or San Luis Obispo County.

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

SECTION 1. The above recitals are true and correct and incorporated herein by reference.

SECTION 2. The Designation of Applicant’s Agent Resolution for Non-State Agencies, attached as Exhibit A, is adopted.

SECTION 3. The City Manager, Public Works Director and City Engineer, are authorized to take all necessary actions and execute all necessary documents to apply for reimbursement of eligible City costs resulting from future disasters, from the federal government, California government, and San Luis County, and any agency or department thereof.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on this 10th day of December, 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

CARLA WIXOM, Mayor
ATTEST:

DANA SWANSON, City Clerk

DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public entity established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under - Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12 That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
Rev. 10-2022 Page 1 of 4 OES-FPD-130 079-49362 City Council City of Morro Bay City of Morro Bay City of Morro Bay City Manager Public Works Director City Engineer

Please check the appropriate box below
This is a universal resolution and is effective for all open and future disasters/grants declared up to three (3) years following the date of approval.

This is a disaster/grant specific resolution and is effective for only disaster/grant number(s):

Passed and approved this __day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 2 of 4 OES-FPD-130 City Council City of Morro Bay City of Morro Bay ✔ 10 December 24 Dana Swanson City Clerk City Clerk 10 December 24

Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted resolution is older than three (3) years from the last date of approval, is invalid, or has not been submitted.

When completing the Cal OES Form 130, Applicants should fill in the blanks on pages 1 and 2. The blanks are to be filled in as follows:

Resolution Section:

Governing Body: This is the group responsible for appointing and approving the Authorized Agents.

Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.

Name of Applicant: The public entity established under the laws of the State of California.

Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.

Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services regarding grants for which they have applied.

There are two ways of completing this section:

1. Titles Only: The titles of the Authorized Agents should be entered here, not their names. This allows the document to remain valid if an Authorized Agent leaves the position and is replaced by another individual. If “Titles Only” is the chosen method, this document must be accompanied by either a cover letter naming the Authorized Agents by name and title, or the Cal OES AA Names document. The supporting document can be completed by any authorized person within the Agency (e.g., administrative assistant, the Authorized Agent, secretary to the Director). It does not require the Governing Body’s signature.

2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document, or their title changes.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 OES-FPD-130 Page 3 of 4

Checking Universal or Disaster-Specific Box: A Universal resolution is effective for all past disasters and for those declared up to three (3) years following the date of approval. Upon expiration it is no longer effective for new disasters, but it remains in effect for disasters declared prior to expiration. It remains effective until the disaster goes through closeout unless it is superseded by a newer resolution.

Governing Body Representative: These are the names and titles of the approving Board Members.

Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents. A minimum of three (3) approving board members must be listed. If less than three are present, meeting minutes must be attached in order to verify a quorum was met.

Certification Section:

Name and Title: This is the individual in attendance who recorded the creation and approval of this resolution.

Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member. If a person holds two positions (such as City Manager and Secretary to the Board) and the City Manager is to be listed as an Authorized Agent, then that person could sign the document as Secretary to the Board (not City Manager) to eliminate “Self-Certification.”

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 4 of 4 OES-FPD-130

Prepared By: ___DS___ Dept Review:___________
City Manager Review: __YK____ City Attorney Review: __CFN_____

Council Report
TO: City Council DATE: November 26, 2024
FROM: Carla Wixom, Mayor
Dana Swanson, City Clerk
SUBJECT: Appointment of Mayor Pro Tempore; Appointment of Representatives on Discretionary Boards; approval of Council Liaison Assignments and various Council Sub-Committees for 2025

RECOMMENDED ACTION
Appoint Council Member Cyndee Edwards as Mayor Pro Tempore; appoint representatives to serve on the various County or Regional Discretionary Boards; and approve Council Liaison Assignments and Council Sub-Committees for calendar year 2025 as shown on the attached appointment list.

DISCUSSION
Mayor Pro Tempore
The City Council Policies and Procedures Section 3.2 (Appointment of Mayor Pro Tempore) states:
“The appointment of the Mayor Pro Tempore shall be for a one-year term and shall be made at the first meeting in January. For appointment as Mayor Pro Tempore, a Council Member must be on the Council at least one year. Of those who have been on the Council for at least one year, the Council Member who has not yet held the position shall be appointed Mayor Pro Tempore. If there are two Council Members who have not yet held the position, then the Council Member receiving the highest number of votes in the most recent election shall be appointed Mayor Pro Tempore. If all have held the position, then the Council Member who has held it the least number of times shall be appointed Mayor Pro Tempore. If all Council Members have held it for the same number of years, then the Council Member for whom it has been the longest period of time since holding the position shall be appointed Mayor Pro Tempore.”
Based on the above policy, Council Member Edwards shall be appointed as Mayor Pro Tempore for calendar year 2025.

AGENDA NO: 9.a
MEETING DATE: December 10, 2024

Representatives to serve on County or Regional Discretionary Boards The City Council Policies and Procedures Section 6.1 (“County or Regional Representation”) states:
“Annually the Mayor shall make appointments to a variety of County and/or regional committees and boards. One Member of the Council shall serve as a voting representative and one member shall serve as alternate. To the best of their ability, Voting Delegates shall reflect the majority view of the Council as a whole, rather than their own personal opinions.”
Consistent with Council Policies and Procedures Section 6.1, the Mayor may seek input from City Council regarding appointments to County and/or Regional Boards, but ultimately, the Mayor is responsible for the appointment of these positions.

Proposed changes to this year’s list are appointments to the Central Coast Community Energy (3CE) Policy Board and the 3CE Operations Board. The Cities of Morro Bay and San Luis Obispo both became members of 3CE in 2018 with shared joint governance seats on the Policy Board, Operations Board and Community Advisory Board. While the MOU entered into by both cities specifies a two-year rotation, the City of Morro Bay agreed to forgo the seats in 2021, allowing the City of San Luis Obispo to continue holding all governance seats for the past six years. The City is grateful to the City of San Luis Obispo’s leadership in retaining the governing structure and its support for Morro Bay’s opportunity to rotate in January 2025.

Additional changes include the removal of Legislative Delegates which are selected in early fall based on attendance at the League of California Cities Annual Conference, and liaison assignments to We Are the Care Initiative and Estero Bay Alliance of Care (“EBAC”) which aren’t currently active.

Council Liaison Assignments
The City Council Policies and Procedures Section 6.2.1 (“Council Liaison Assignments”) states:
“The City Council shall assign a Council liaison to each of the following advisory bodies: Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, the Citizens Finance Advisory Committee, and the Planning Commission. Council liaisons will also be appointed to the special purpose advisory bodies.

The purpose of the liaison assignment is to facilitate communication between the City Council and the advisory body. The liaison also helps to increase the Council’s familiarity with the membership, programs and issues of the advisory body. In fulfilling their liaison assignment, members should either attend advisory body meetings or watch the meeting broadcasts and present information regarding advisory body meetings to the Council during Council announcements.

Council Members are not participating members of the advisory body, but are there rather to create a linkage between the City Council and the advisory body. In interacting with advisory bodies, Council Members are to reflect the views of the Council as a body. Being an advisory body liaison bestows no special right with respect to advisory body business.”

Pursuant to Council Policies and Procedures Section 6.2.1, the City Council shall assign Council Liaisons to the Advisory Bodies. Attached for Council review and approval is a list of the proposed Council Liaison assignments for 2025.

Council Sub-Committees
The City Council Policies and Procedures Section 3.13 (“Council Sub-Committees”) states:
“From time to time it may be desirable for the City Council to appoint a subcommittee of the whole to address a particular issue. That is especially the case if the issue requires additional work or research. Per the Brown Act, subcommittees must consist of less than a quorum of the body and serve for a limited purpose and time. Therefore, the City Council sub-committees may consist of two members. Sub-committees shall report back to the full Council for discussion before any formal action can be taken on the pertinent issue. Establishing a subcommittee requires the body to define the purpose, parameters, and duration of the sub-committee. The City Clerk will keep the list of sub-committees and defined description as a record with Council liaison assignments for review annually.”
Attached for Council review and approval is a list of the proposed Council Sub-Committees to establish for calendar year 2025 and proposed Council Sub-Committee assignments for calendar year 2025.

ATTACHMENT

1. Proposed City Council Discretionary Appointments, Liaison Assignments and Council Sub-Committees for 2025.

CITY COUNCIL DISCRETIONARY APPOINTMENTS (2025)
INTEGRATED WASTE MANAGEMENT AUTHORITY (meets the 2nd Wednesday of every month; 1:30pm; Board of Supervisors Chambers, SLO Government Center)
Cyndee Edwards Member
Bill Luffee Alternate
COUNTY WATER RESOURCES ADVISORY COMMITTEE (meets the 1st Wednesday of the month; 1:30- 3:30pm; City County Library Room, 995 Palm, SLO)
Zara Landrum Member
Cyndee Edwards Alternate

SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY (SLORTA) & SAN LUIS OBISPO AREA COORDINATING COUNCIL (SLOCOG) (RTA meets the 1st Wednesday of odd-numbered months; 8:30am; Board of Supervisors Chambers, SLO County Government Center) (COG meets the 1st Wednesday of month in January, February, April, June, August, October & December; 9:00am; Board of Supervisors Chambers, SLO County Government Center. Occasionally, SLOCOG will hold an off-month meeting immediately following a regularly scheduled RTA meeting.) Carla Wixom Member
Jeff Eckles Alternate
AIR POLLUTION CONTROL DISTRICT (meets the 4th Wednesday of every other odd numbered month; 9:00am; Board of Supervisors Chambers, SLO County Government Center) Jeff Eckles Member
Cyndee Edwards Alternate
COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC. (meets the 3rd Thursday of every month; 5pm; CAPSLO Board Room, 1030 Southwood, SLO). Morro Bay rotated off the Board in 2014, Los Osos CSD is the current coastal city representative.

NATIONAL ESTUARY PROGRAM (Executive Committee meets quarterly; 3rd Wednesday of the month in February, May, August and November; 4-6pm)
Zara Landrum Member
Bill Luffee Alternate
CITY SELECTION COMMITTEE (SLO County Committee meets semiannually, or as needed, in order to appoint city representatives to boards, commissions and agencies as provided by law. Mayor serves as the City’s representative and, when unable to attend, shall designate another member of the legislative body to attend and vote in the mayor’s place)
Carla Wixom (Mayor) Member
Cyndee Edwards (Mayor Pro Tem) Alternate

SAN LUIS OBISPO COUNTY HOUSING TRUST FUND
City Manager or designee (Comm. Dev.) Member
HOMELESS SERVICES OVERSIGHT COUNCIL (meets the 3rd Wednesday of odd numbered months; 1- 3pm; Family Care Network Conference Room, 1255 Kendall Road. SLO) Bill Luffee Member
Cyndee Edwards Alternate
REACH CENTRAL COAST ECONOMIC DEVELOPMENT ROUNDTABLE (meets twice annually) Jeff Eckles Member

CITY COUNCIL DISCRETIONARY APPOINTMENTS (2025)
CALIFORNIA JPIA (“CJPIA”) ANNUAL BOARD OF DIRECTORS MEETING (held annually the 3rd Wednesday in July)
Carla Wixom, Mayor Voting Delegate
Rachael Hendricks, Human Resources Mgr 1
st Alternate
Yvonne Kimball, City Manager 2
nd Alternate
CENTRAL COAST COMMUNITY ENERGY POLICY BOARD (meets quarterly in March, June, September and December at a date, time and location established by resolution in September of each year) Carla Wixom Member
Zara Landrum Alternate
CENTRAL COAST COMMUNITY ENERGY OPERATIONS BOARD (meets monthly on the 2nd Wednesday, except in March, June, July and December, at dates and times established by resolution in September of each year)
Yvonne Kimball, City Manager Member
Whitney McDonald, San Luis Obispo City Manager Alternate CITY COUNCIL LIAISON ASSIGNMENTS (2024)
PLANNING COMMISSION (meets 1
st and 3rd Tuesday of every month; 6:00pm; Vets Hall)
Jeff Eckles Liaison
HARBOR ADVISORY BOARD (meets the 1st Thursday of the month, except January, July, and November; 5:30pm; Vets Hall)
Zara Landrum Liaison
RECREATION AND PARKS COMMISSION (meets the 3rd Thursday of the month in odd-numbered months; 6:00pm; Vets Hall)
Bill Luffee Liaison
PUBLIC WORKS ADVISORY BOARD (meets the 3rd Wednesday of the month except July, November and December; 5:30pm; Vets Hall)
Carla Wixom Liaison
SAN LUIS OBISPO COUNTY TOURISM MARKETING DISTRICT ADVISORY COMMITTEE (meets semiannually on the first Thursday of May and December at Embassy Suites, 333 Madonna Rd., SLO) Carla Wixom Liaison
CITIZENS OVERSIGHT / FINANCE COMMITTEE (meets the 3rd Tuesday of the month in January, February, May, August and October; 3:00pm; Vets Hall)
Cyndee Edwards Liaison
CITY COUNCIL SUB-COMMITTEES (2024)

WATER RECLAMATION FACILITY / JPA SUB-COMMITTEE
Carla Wixom Member
Zara Landrum Member

MORRO BAY POWER PLANT
Jeff Eckles Member
Cyndee Edwards Member

OFFSHORE WIND ENERGY
Carla Wixom Member
Zara Landrum Member