Morro Bay City Council
February 11, 2025

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, February 11, 2025, 5:30 p.m.

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

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

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

1. ESTABLISH QUORUM AND CALL TO ORDER

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report

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

4.c City Manager Reports, Announcements and Presentations

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

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

2. Morro Bay Power Plant (Vistra)

3. Offshore Wind Energy

4. Downtown Design District

5. RECOGNITION AND PRESENTATIONS

5.a Morro Bay Chamber of Commerce Quarterly Update 6

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 consent agenda items 7.a through 7.g as submitted.

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

1. January 28, 2025 - Regular Council Meeting 14

2. January 28, 2025 - Special Council Meeting 22

7.b Review and Adopt Final Funding Recommendations for the 2025 Community Development Block Grant (CDBG) Program
24 (Community Development Department)
Recommended Action
Adopt Resolution No. 06-25 approving final recommendations for the City’s share of 2025 Community Development Block Grant (CDBG) funds to 5 Cities Homeless Coalition ($3,000) for homelessness prevention services and the City of Morro Bay Public Works Department for ADA sidewalk repairs ($48,255) and forward recommendations to the San Luis Obispo County Board of Supervisors. Additionally, staff recommends the City Council authorize the City Manager to make pro rata adjustments to the allocation based on the final funding amount from HUD’s final grant amount to the County. The recommended action is consistent with action taken by the Council on November 12, 2024, and will formalize and affirm the draft recommendations approved on that date.

7.c Receive and File Fiscal Year 2024 Quarter 4 WRF Quarterly Report 33 (Public Works Department)
Recommended Action
Review and file the Fiscal Year 2024 4th Quarter WRF Quarterly Report.

7.d Approval of Agreement with Bill Gaines Audio, Inc., for Design and Installation Services for the Vets Hall Audio Visual Upgrades Project 101
(Public Works Department)
Recommended Action
Authorize the City Manager to execute an agreement in the not-toexceed amount of $293,100.00 with Bill Gaines Audio, Inc., (BGA) to perform design and installation services for the Vets Hall Audio Visual Upgrades Project (Attachment 1), approved to form by the City

Attorney’s Office.

7.e Authorize FY 2024/25 Community Grant Funds Awarded to Morro Bay Maritime Museum to be used for a Revised Project
128
(City Manager)
Recommended Action
Review request received from the Morro Bay Maritime Museum and, pursuant to the City’s Community Grant Policy adopted by Resolution No. 73-19, authorize the Morro Bay Maritime Museum to direct the $5,000 Grant Award previously approved by City Council for paving the Kid’s Cove area, rather than the original stated purpose of building a walkway.

7.f First and Second Quarter Investment Reports (periods ending September 30, 2024 and December 31, 2024) for Fiscal Year (FY) 2024-25
133
(Administrative Services Department)
Recommended Action
Receive the attached First Quarter and Second Quarter Investment Reports (periods ending September 30, 2024 and December 31, 2024) for FY 2024-25.

7.g Receive and file letter of support for Assembly Bill 303 (Addis) 139 (City Manager)
Recommended Action
Receive and file letter of support for proposed legislation Assembly Bill (AB) 303, the Battery Energy Safety and Accountability Act (Addis).

8. PUBLIC HEARING ITEMS
None

9. BUSINESS ITEMS

9.a Introduce an Ordinance Amending Title 7 (Animals) of the Morro Bay Municipal Code
147
(Police Department)
Recommended Action
Introduce by title only with further reading waived, Ordinance No. 669 entitled, “An Ordinance of the City Council of the City of Morro Bay, California, amending Title 7 (Animals) of the Morro Bay Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals, and finding the action not subject to CEQA.”

9.b Presentation and Discussion of the Fiscal Year (FY) 2023-24 Annual Comprehensive Financial Report
208

(Administrative Services Department)
Recommended Action
Receive the presentation and provide feedback on the FY 2023-24 Annual Comprehensive Financial Report (ACFR) for the period of July 1, 2023 through June 30, 2024 (Attachment 1), and

1. Receive FY 2023-24 Annual Street Report (Attachment 2), FY 2023-24 Transit Operator Financial Transactions Report
(Attachment 3), and FY 2024-25 Prop 172 Maintenance of
Effort Certification (Attachment 4).

2. 10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The next Regular Meeting will be held on February 25, 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.

2 /6 /2 0 2 5
1 Championing Local Business, Driving Community Success Economic Development Quarterly Update
February 2025
Morro Bay Chamber of
Commerce
• Board of Directors
11 members • Staff

2.5 Employees
• Governmental Affairs Committee
15 members • Ambassador Committee
7 members • 298 Members
Approx 2,800 Jobs
1 2

2 /6 /2 0 2 5
2 Cherise Hansson
Chairperson
HarborWalk
Inn/Under the Sea
Gallery
Ray Riordan
Chair Ambassadors
Committee
Individual Member
Anna Patel Treasurer Beach Bungalow Inn & Suites Bob Fowler Government Affairs Committee Co-Chair MMBS LLC. Ryan Blevins
Secretary
Individual Member
Paul Bosclair
Chair, MBC
Foundation
The Siren
Morro Bay
Chamber of Commerce
Board Members
Loren Leidinger Co Chair Ambassadors Committee CAPSLO
Jim Duffy
Ten Over Studios
Denise Lowe
South Bay Women’s
Network
Lexy Jacobs
Vice-Chairperson
Morro Bay Boat
Rentals
Sherry Paul
Morro Bay Bird
Festival
Morro Bay
Chamber of
Commerce
Team
Dina Lundquist
CEO
Lynsey Hansen
Membership
Director
Jody Hollier
Marketing
Coordinator
Morro Bay Chamber of Commerce:

Partnership: Networking opportunities with other local
businesses. Forming strategic partnerships that drive
growth and success.

Advocacy: Representing the interests of local businesses at various levels of government. Ensuring that your voice is heard on critical issues.

Resources: Access to resources, training, and events.

Enhancing your business operations with expert support.

Morro Bay Chamber Foundation:

Education: Focused on educational initiatives and
providing scholarships to deserving individuals to help them achieve their academic and career goals.

Community Enrichment: Supporting programs that
enhance the quality of life in Morro Bay. Educational
outreach and development programs for community
betterment.

Two great
Organizations
bringing together
community,
business and
education
3 4

2 /6 /2 0 2 5
3 Facebook 6,900+ followers
Instagram 3,300+ followers
Communication
Website
Pageviews 16k, Users: 5.7k
Chamber Newsletter
Distribution 1325 contacts
Tuesday-Chamber events and Information
Thursday- Member events and Information
On Your Behalf (new)
Bi Monthly
Includes CEO insights, GAC update, City
news, and Spotlight business.

Estero Bay News
Monthly
Chamber updates
Coming Soon:

The Rock Radio Station
quarterly
“Chamber Chat”
YouTube
Video Updates
monthly
CEO sharing what’s happening
at the Chamber
Showcasing
our
Members
and the Chamber
5 6

2 /6 /2 0 2 5
4 Morro Bay Chamber of Commerce supporting Economic Development Networking Opportunities:
- Connect with Local Businesses: The Chamber of Commerce provides a platform for small business owners to meet and collaborate with other local entrepreneurs, fostering relationships that can lead to partnerships, referrals, and increased business opportunities.

Advocacy:
- Representation: The Chamber serves as a voice for local businesses, advocating for their interests at the municipal levels. This representation helps ensure that the needs and concerns of small businesses are addressed in policy decisions. - Influence on Local Policies: By joining the Chamber, business owners can participate in discussions that shape the economic landscape of their community, ensuring that small businesses have a seat at the table.

Resources and Support:
- Access to Information: Members receive valuable resources, including market research, economic data, and best practices tailored for small businesses, helping them make informed decisions. - Credibility and Visibility:
- Enhanced Reputation: Being a Chamber member adds credibility to a business, signaling to customers that the owner is committed to the local community and adheres to high standards of professionalism and ethics.
- Marketing Opportunities: Members can take advantage of promotional opportunities through the Chamber’s website, social media, and events, increasing visibility among potential customers.

Community Engagement:
- Support Local Initiatives: Joining the Chamber allows business owners to be part of community-focused initiatives and events, enhancing their brand visibility while contributing to the overall well-being of the local area.

Morro Bay Business Data
INDUSTRY # of Business SALES EMPLOYEES
Retail: Hobby, Media, General Merchandise 82 $118,160,000 806 Retail: Home, Food, Automobiles, Personal Care 44 $81,388,000 326 Accommodation and Food Services 112 $66,908,000 1100
Health Care and Social Services 117 $39,352,000 567
Professional, Scientific, and Technical Services 64 $25,286,000 194 Real Estate and Rentals 56 $24,545,000 218
Banking, Finance and Insurance 25 $22,350,000 105
Construction 38 $19,268,000 158
Arts, Sports, Entertainment, and Recreation 32 $15,482,000 320 Other Services - Repair, Personal Care, Laundry, Religious, etc. 99 $15,074,000 332 38 $14,839,000 121
Administrative and Support and Waste Management and Remediation Services
7 8

2 /6 /2 0 2 5
5 Business Attraction and Retention
Key Performance Indicators Source
(KPI)
Item Deliverables
www.loopnet.com
www.reachcentralcoast.org
Updated database that is used as a
business attraction tool to provide
site selection for new or expanding
businesses.

Updated monthly of listed vacancies,
address, zoning and square footage.

Business Attraction Inventory of
city vacancies that are zoned for
business purposes.

Survey questions are being
finalized with the city. Review of
city licenses to deploy the survey
to maximum active business
within Morro Bay.

Adequate response level to the
survey. Survey results analyzed
for business retention purposes.

Provide a data-informed report of
growing businesses and their
needs, declining or retiring
businesses, and sustaining
businesses.

Survey questions to be compiled
with input from the City and
Chamber to determine which
businesses have plans to grow
locally or downsize, relocate or
close. This survey would also
include information on key supply
chain businesses and employment
data.

Business Retention Conduct an
annual survey of Morro Bay
business license holders' health,
online, through direct mail, and
by phone samples.

REACH, Practitioners Network,
Michael Foote
Cal Poly Local Economic Development Council
Karen H. Tillman
Workforce Development Board
Dawn Boulanger
SLOCAL Careers
Stacy Church
Visit Morro Bay
Michael Wambolt
Local and Regional Partners
Mission Community Services Corporation
Dyana Stokes
SBDC
Morro Bay High School
Scott Schalde
New California Coalition
Chambers for Innovation and Clean Energy
Morro Bay City Council Meetings
9 10

2 /6 /2 0 2 5
6 Morro Bay Chamber Events
MA
Y
Holiday Shop Sip in Stroll
November 8 & 22
Breakfast on the Bay
November
October
Breakfast on the Bay
Mixer
Movie Night
Breakfast on the Bay January
Currently the Chamber
hosts 20 events
each year.
11 12

2 /6 /2 0 2 5
7 Possibilities
MA
Y
Christmas on the Bay
Elf on a Shelf and Candy Cane Lane Holiday themes
December
New Business
License
City provides a warm hand off to
the Chamber to new business
license holders by providing our
“Business Success Packet”
October Boo on the Bay
Elf on the shelf “Embarcadero ,
Candy Cane Lane Downtown District.

Christmas on the Bay
Boo on the Bay
13 14

2 /6 /2 0 2 5
8 Thank You!
[email protected]
15

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
January 28, 2025, 5:30 p.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: City Manager Yvonne Kimball
Interim City Attorney Robert Schultz
City Clerk Dana Swanson
Finance Director Emily Conrad
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Fire Chief Dan McCrain
Harbor Vitality Director Chris Munson
Police Commander Tony Mosqueda
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:30 p.m. with all members present.

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report
https://youtu.be/OPtubNCcBQg?si=B5DVPWwv0JQ9vru9&t=89
Mayor Wixom announced no closed session meeting was held.

4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/OPtubNCcBQg?si=RiWHGbK1ixaDjrfQ&t=106

4.c City Manager Reports, Announcements and Presentations https://youtu.be/OPtubNCcBQg?si=bXbPGS5K2kaRZVsE&t=897

2 4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/OPtubNCcBQg?si=n9Qku-6iltTld2oe&t=971
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

6. PUBLIC COMMENT
https://youtu.be/OPtubNCcBQg?si=C8d6bw_SCZ_P78Hu&t=1145  Nicole Dorfman, on behalf of REACT Alliance, inquired about community outreach opportunities for the Mott McDonald Study and announced an event to be held Wednesday, February 5, at the Benedict Center on Quintana. Visit reactalliance.org for more information.  Ed Griggs, Morro Bay, requested information regarding traffic cameras recently installed in north Morro Bay.
 Karen Aguilar, Morro Bay resident and representative of the State of New California, expressed concern regarding battery energy storage facilities and encouraged the Council to stop the proposed Vistra project.  Jen Ford, Senior District Representative for Assemblymember Addis, commented on the Vistra fire in Moss Landing and need for transparency, an independent investigation, and accountability. Visit a30.asmdc.org to learn more about proposed legislation AB 303.
 Garry Johnson, Morro Bay, commented on battery energy storage systems.
 Richard Cunningham, Morro Bay, opposed a battery energy storage system in Morro Bay.
 Aaroh Ochs, Morro Bay, thanked Assemblymember Addis for opposing the proposed BESS project in Morro Bay and urged residents to write to our legislators in support of AB 303.
 Kiernan Cottle, Morro Bay, offered comments.
 Tina Metzger, Morro Bay, urged the Council to approve Items 7.b.and 8.b.

3  Gene Doughty, Morro Bay, shared the waterfront is one of the most regulated and costly locations to build and urged the City to do all it can to support leaseholders who take on that financial risk.
 Judy Setting, Morro Bay, hoped the City would consider adopting a drone ordinance and extended her thanks to Assemblymember Addis for proposing AB 303, noting she hoped the safety buffer would be more than 3,200 ft.

End of public comment.

7. CONSENT AGENDA
https://youtu.be/OPtubNCcBQg?si=7X8-TLhmVkYcsU-0&t=3133 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.
 Betty Winholtz, Morro Bay, spoke in favor of Item 7.b.  Semu Torres commented in favor of Item 7.b.

End of public comment.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Approve consent agenda items 7.a through 7.b as submitted.

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

7.a Approval of Minutes
Approve as submitted.
a. January 14, 2025 - Regular Council Meeting
b. January 14, 2025 - Special Closed Session Meeting

7.b Authorization to send a letter to San Luis Coastal Unified School District regarding the Morro Elementary School site
Approve authorization to send the attached letter to the San Luis Coastal Unified School District (“District”) requesting the District not take any action to sell or dispose of the Morro Elementary School site for 120 days to allow the community to create a financial plan to purchase the property.

8. PUBLIC HEARING ITEMS

4 8.a Uphold an appeal by Paul Gillen and reverse the Planning Commission's denial of Conditional Use Permit CUP24-04, and approve a revised project for the demolition of existing structures and redevelopment of Lease Sites at 431, 451, and 495 Embarcadero Rd
https://youtu.be/OPtubNCcBQg?si=kC_peeaZ5bPcZPpl&t=3418 Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened the public hearing.
https://youtu.be/OPtubNCcBQg?si=hYe1d60CgyzrlHj6&t=5115  Paul Gillen, Associated Pacific, commented on the revised proposed project, offering details and adjustments that had been made in response to Planning Commission comments, along with his intended highest and best use for the site. He shared the estimated revenues the project would provide to both the Harbor and General Funds and respectfully asked the Council support the revised project.

Mayor opened public comment.
 Joe Ingraffia, Morro Bay, commented as a resident suggesting it did not set a good precedent to have a project denied by the Planning Commission be significantly modified then taken directly to the City Council. He urged the Council to deny the appeal and return the project to the Planning Commission.
 Ron Reisner, Morro Bay, commented in favor of the proposed project.
 Bob Fowler, on behalf of the Embarcadero Master Leaseholders, spoke in support of the project.
 Homer Alexander, Morro Bay, commented on the potential increased revenues this project would bring to support City operations.
 Betty Winholtz, Morro Bay, expressed concern regarding off-site parking, questioned the need for a pocket park, and whether office space was allowed on the Embarcadero.
 Debbie Highfill, Morro Bay, agreed offsite parking was a concern and did not feel a pocket park and restrooms provided adequate public benefit.

5  Sean Green, Morro Bay, offered comments regarding the project review and appeal process and raised safety concerns regarding heavy commercial pier infrastructure paired with vehicular traffic.  Nattalia Merzoyan, Morro Bay, concurred with others regarding parking issues and was concerned building height would negatively affect the business across the street. She urged Council to not approve the project.
 The owner of 456 Embarcadero Inn requested the Council limit the development to single story so it would not block the view from his hotel.

The Council invited the applicant to respond to additional Council questions.

End of public comment.

The public hearing was closed.

Mayor Wixom and each of the Council Members disclosed ex parte communications with the applicant and offered comments on the project.

Following discussion, there was consensus to add a condition requiring a public access safety plan for the commercial wharf area.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Adopt Resolution No. 04-25 to uphold the Applicant’s appeal, accept the Applicant’s Revised Project (January 2025), and reverse the Planning Commission’s denial of CUP24-04, based on the findings and conditions contained therein with the following added condition as read into the record by Director Singewald:
"At the time of application for a building permit, the Applicant shall submit a public access safety plan for the commercial wharf area. The public access safety plan shall identify measures to maximize public accessibility of the commercial wharf and adjacent harbor walk, consistent with LCP coastal access requirements and applicable safety regulations. This will include painting a loading area in a visible location and only allowing for temporary closures for the minimum time necessary for safety reasons." Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)

6 8.b Request to consider an Urgency Ordinance Prohibiting the Application, Acceptance, Approval, Commencement, Establishment, Operation, Relocation, or Expansion of Grid-Scale Battery Energy Storage Systems (BESS) within the city limits
The Council took a brief recess at 8:05 p.m. and reconvened at 8:20 with all members present.
https://youtu.be/OPtubNCcBQg?si=oZSBcAp8TFU32TIb&t=10183 Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 8.b.
https://youtu.be/OPtubNCcBQg?si=H_LTbHhr24RW_t2H&t=10667  Rachel Wilson, Cayucos, spoke in support of a moratorium on new BESS projects.
 Nicole Dorfman, Morro Bay, expressed strong support for the urgency ordinance and thanked the Council for its efforts to protect the community.
 Nattalia Merzoyan, Morro Bay, agreed with previous speakers.  Betty Winholtz, Morro Bay, spoke in support of the urgency ordinance.
 Judy Setting, Morro Bay, appreciated the proposed ordinance and hoped for a permanent ban to BESS projects.

End of public comment.

Motion by Mayor Wixom
Seconded by Council Member Landrum

1. Adopt by number and title only, with further reading waived, Urgency Ordinance No. 668, entitled “An Urgency Ordinance of the City Council of the City of Morro Bay, California, Imposing a Prohibition on the Application Acceptance, Approval,
Commencement, Establishment, Operation, Relocation or
Expansion of Grid-Scale Battery Energy Storage Systems within the City Limits during the Pendency of the City’s Review and Adoption of Regulations of Such Uses; and Finding the Action to be Exempt from CEQA,” prohibiting applications for grid-scale Battery Energy Storage Systems facilities within Morro Bay city-limits for an initial period of 45 days; and

2. Direct staff to return to Council at the regularly scheduled February 25, 2025 Council meeting with an Ordinance extending the BESS urgency ordinance to January 28, 2027.

7 Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)

9. BUSINESS ITEMS

9.a Update on Fiscal Year (FY) 2023-24 and 2024-25 City Council Goals and Action Items
https://youtu.be/OPtubNCcBQg?si=t0vp3KIRobaW4OE9&t=12101 City Manager Kimball presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 9.a.
https://youtu.be/OPtubNCcBQg?si=F9I-6YnALT32EMXs&t=14585  Dina Lundquist, Morro Bay Chamber of Commerce, looked forward to the FY 25-27 Goals discussion, noting it was imperative that our city government is fiscally sound and working in a way that will benefit our community and businesses.
 Betty Winholtz, Morro Bay, requested the City consider a safe parking program during the Goals discussion.

End of public comment.

Following discussion, there was Council consensus to pause on preparing an RFQ for the Market Plaza properties until further consideration during the Goals process.

Receive a progress report on the City Council goals and action items and provide direction on remaining items.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/OPtubNCcBQg?si=hZrQsDv-ueYeG1D1&t=14875 None

11. ADJOURNMENT
The meeting adjourned at 9:40 p.m.
/s/ Dana Swanson, City Clerk

8

1 MINUTES - MORRO BAY CITY COUNCIL

SPECIAL MEETING OF CITY COUNCIL
January 28, 2025, 3:30 p.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: City Manager Yvonne Kimball
Interim City Attorney Robert Schultz
City Clerk Dana Swanson
Public Works Director Greg Kwolek
Harbor Vitality Director Chris Munson
Police Commander Tony Mosqueda
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:30 p.m. with all members present.

2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
Mayor Wixom opened public comment for items on the agenda; seeing none, the public comment period was closed.

3. SPECIAL MEETING AGENDA ITEM(S)

3.a Presentation and Adoption of the City of Morro Bay's 2025-2026 Legislative Advocacy Platform
https://youtu.be/nklwZDFtXsw?si=il2PTg7Xl1R0Db9y&t=29
City Manager Kimball introduced the item and invited the City's state lobbyist, Spencer Street of Townsend Public Affairs, to present the Draft Legislative Plan and respond to Council inquiries.

The City's federal lobbyist, Mike Miller of The Ferguson Group, introduced himself and commented on the Draft Legislative Plan.

James Worthley, SLOCOG, presented an initiative to seek special legislation that would provide an exemption to the current two percent sales tax cap rate.

2 Following discussion, there was Council consensus to direct the following changes to the Draft Legislative Platform:
 Administrative Services, Item 6, clarify this relates to public employee employment rights.
 Incorporate the City's support for policies that promote investment in small business support and job growth.

Motion by Council Member Eckles
Seconded by Council Member Edwards
Adopt Resolution No. 05-25 approving the 2025-2026 City of Morro Bay Legislative Platform with amendments and edits as discussed.

Ayes (4): Mayor Wixom, Council Member Edwards, Council Member Eckles, and Council Member Luffee
Noes (1): Council Member Landrum
CARRIED (4 to 1)

4. ADJOURN
The meeting adjourned at 4:22 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

AGENDA NO: 7.b
MEETING DATE: February 11, 2025
Prepared By: EV____ Dept Review:
__AMS___
City Manager Review: ________ City Attorney Review:
__RWS_
Staff Report
TO: Honorable Mayor and City Council DATE: February 3, 2025 FROM: Airlin Singewald, Community Development Director
SUBJECT: Review and Adopt Final Funding Recommendations for the 2025 Community Development Block Grant (CDBG) Program

RECOMMENDED ACTION
Adopt Resolution No. 06-25 approving final recommendations for the City’s share of 2025 Community Development Block Grant (CDBG) funds to 5 Cities Homeless Coalition ($3,000) for homelessness prevention services and the City of Morro Bay Public Works Department for ADA sidewalk repairs ($48,255) and forward recommendations to the San Luis Obispo County Board of Supervisors. Additionally, staff recommends the City Council authorize the City Manager to make pro rata adjustments to the allocation based on the final funding amount from HUD’s final grant amount to the County. The recommended action is consistent with action taken by the Council on November 12, 2024, and will formalize and affirm the draft recommendations approved on that date.

ALTERNATIVES
The City Council could fund the 5 Cities Homeless Coalition above the requested application amount to a maximum of $8,837 to match the 15 percent maximum federal expenditure for the public services activities with a corresponding reduction in funding to the Public Works Department’s application for the ADA sidewalk repairs.

FISCAL IMPACT
While the County performs many of the administrative responsibilities for the CDBG program, the City also experiences a fiscal impact for CDBG grant administration. This includes (and is not limited to) applying to the County for funding, budgeting revenue and expenditures, coordinating with County staff, executing subrecipient agreements, and submitting required reports to the County. The City had the option to submit a separate application in October 2024 to use a small portion of its CDBG allocation ($4,123.98) to cover administration costs. In addition to the separate application, in order to receive administration funds the City is required to execute a separate agreement and perform separate reporting. To avoid this additional administrative burden, staff recommended during the November 12, 2024, City Council meeting for the draft CDBG funding recommendations to forgo this process and allocate the funds towards the Public Works ADA Sidewalk Repair/Replacement Project. This recommendation was approved.

SUMMARY
The purpose of this item is to finalize the City Council’s November 12, 2024 draft CDBG funding recommendations. Since the Council approved its draft CDBG funding recommendations, the City has not received public comments that would alter these funding recommendations. As such, staff recommends the Council make these recommendations final and forward them to the County Board of Supervisors for inclusion in the 2025 CDBG Action Plan.

BACKGROUND
On November 12, 2024, the City Council held a public hearing to review and adopt Council Resolution No. 71-24, which included draft CDBG funding recommendations to be forwarded to the County Board of Supervisors for inclusion into the 2025 Action Plan. As noted on the table below, the funding recommendations included funding for the 5 Cities Homeless Coalition’s Homeless Prevention Program and the Public Works Department’s ADA Sidewalk Repair/Replacement Project for a total funding allocation of $48,255. Total Morro Bay funding is anticipated to be approximately $58,914 for the 2025 program year, which is an amount consistent with prior years’ funding allocations. Funding amounts are subject to change and will likely be released by the Department of Housing and Urban Development (HUD) in April 2025. The next step in the process, per HUD requirements, requires jurisdictions to make final funding recommendations to the County as part of the annual Action Plan adoption.

DISCUSSION
The recommended projects for the 2025 CDBG Program Year are included in the table below, with more information on the following page.

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

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

2. Project Name: ADA Sidewalk
Repair/Replacement Project
Applicant: Public Works Department, City of
Morro Bay
$48,255 $48,255
Total Funds Requested $51,255*
Total Funds Recommended $51,255
Estimated Total 2025 Funding Available $58,914
*The sum of the two recommendations does not equal the total anticipated allocated funding. This is because the County receives a portion of the City’s allocation for administration. Per HUD standards, administration costs are limited to 20% of the 2025 allocation. Of this 20%, the County receives 65%, or $7,658.82. Because the County does a large majority of the administration for CDBG projects, City staff recommends that Morro Bay administration funds be put towards the ADA project.

5CHC Project Description: 5CHC seeks to continue its highly successful Homeless Prevention program to help families at-risk of homelessness remain in their home, with an anticipated 165 households receiving assistance. 5CHC’s track record has demonstrated that less than 2% of those served in the prior 24 months have fallen into homelessness after receiving assistance.

Public Works Project Description: The City has hundreds of City-owned Street trees along roadway frontage throughout the city. Many of the street trees that are mature were planted many years ago and are causing destruction to sidewalks, curb and gutter, asphalt roadway, and other public infrastructure. The damage to city infrastructure is an unfunded liability to the City from a maintenance and safety perspective. In addition, these areas where uplift of sidewalk has occurred cause areas to be out of compliance with the Americans with Disabilities Act (ADA). This project would be to correct some areas where street trees have caused damage and remove the tree and replace with a more appropriate street tree with an underground growing zone so that the roots do minimal damage to the infrastructure. The project would also include the replacement of sidewalks, curb and gutter, curb ramps, and portions of roadway that have been affected by street trees. In some cases, the project would involve filling sidewalk gaps that affect accessibility.

The proposed improvements will include sidewalk deficiencies in the Morro Bay downtown area, including sections of Morro Bay Boulevard, Harbor Street, Main Street, Monterey Avenue, and Napa Avenue.

As stated in the November 12, 2024 Council staff report (link below), the approved draft funding recommendations were forwarded to the County along with recommendations from all participating jurisdictions. Funding recommendations for Public Services funding, including the request by the 5 Cities Homeless Coalition, were reviewed and approved by the Homeless Services Oversight Council (HSOC) on January 15, 2025.

All other categories of funding recommendations will be published by the County on March 6, 2025, which will include the full 2025 Action Plan. Publication will then allow for a 30-day public comment period, followed by the Board of Supervisors holding a public hearing on April 8, 2025 to take public comment, accept each city’s final recommendation, and adopt the 2025 Action Plan.

The funding applications received are limited by federal regulations in how much funding they can receive. The 5CHC application is considered a public service activity, which is limited to no more than 15% of a jurisdiction’s total allocation. Based on this year’s anticipated funding, that 15% cap equates to a maximum amount available of $8,837. The application from the Public Works Department is to provide for the repair or replacement of sidewalk infrastructure in the Downtown area that has been damaged or upheaved by growing tree roots. This is considered a public facilities application, which has no specific federal percentage limitation on funding. The Public Works Department is seeking additional funding to close the funding gap for the project, which will enhance ADA accessibility in downtown Morro Bay for seniors, persons with disabilities, and the community at large.

Upon City Council review of CDBG funding requests, the funding recommendations will be forwarded to the County Board of Supervisors to adopt the 2025 Action Plan at a public hearing on April 8, 2025. The County will then send the 2025 Action Plan to HUD for approval by May 15, 2025.

CONCLUSION
Staff is recommending the Council approve the 2025 Final Funding Recommendation for the requests from the 5 Cities Homeless Coalition and the City’s Public Works Department by adopting Resolution No. 06-25. This is consistent with the draft funding recommendations approved by the City Council on November 12, 2024.

ATTACHMENTS

1. Resolution No. 06-25

2. Council Resolution 71-24, adopted November 12, 2024

ONLINE LINKS

1. November 12, 2024, Council Staff Report and Funding Applications, Agenda Item 8-A (begins on page 33)

RESOLUTION NO. 06-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT
PROJECTS FOR YEAR 2025

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, via a Cooperation Agreement with County of San Luis Obispo (hereafter referred to as “County”), a political subdivision of the State of California, executed by the City of Morro Bay (hereafter referred to as “City”) a municipal corporation, on September 6, 2023, the City agreed to become a participant for a period of three years with the County and other cities therein as an “Urban County” under the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, under the Cooperation Agreement, the City retains the authority to determine which projects are to be funded with its allotment of Community Development Block Grant (CDBG) Program funds; and WHEREAS, theCDBG Program promotes the public health, safety and welfare by providing grant funds to be used by the City and County to improve housing opportunities for low- and moderate- income households, to encourage economic reinvestment, to improve community facilities and public services, and to provide other housing-related facilities, or services; and
WHEREAS, the City expects to receive $58,914 in CDBG funds in 2025; and WHEREAS, in 2024, the County published a “Notice of Funding Availability” for projects to be funded under the 2025 CDBG Program, which required proposals to be submitted by October 6, 2024; and WHEREAS, the City received two applications for CDBG funding, one from 5 Cities Homeless Coalition (5CHC) for $3,000 to administer countywide homelessness prevention services and one from the City of Morro Bay Public Works Department for $48,255 for ADA sidewalk repairs and replacement; and WHEREAS, on November 12, 2025, the City Council held a duly noticed public hearing and adopted Resolution 71-24, which forwarded draft CDBG funding recommendations, in the amounts requested by 5CHC and the Public Works Department for the identified projects, to the San Luis Obispo County Board of Supervisors; and WHEREAS, on March 6,2025, the San Luis Obispo County (“County”) Department of Social Services will publish draft funding recommendations for the San Luis Obispo Urban County’s estimated 2025 CDBG funding allocation, including the City of Morro Bay’s final funding recommendations for its share of CDBG funds; and WHEREAS, the County did not receive any public comments regarding the City’s draft CDBG funding recommendations when the Board of Supervisors reviewed draft funding recommendations for its 2025 Housing Programs, which include CDBG; and
WHEREAS, the County’s CDBG funding recommendations are based on the County’s best estimate of HUD’s 2025 CDBG funding allocation (based on past funding trends) and are subject to pro-rata adjustments when the County receives a notification of its HUD allocation in or around May 2025; and WHEREAS, at a regularly scheduled meeting on February 11, 2025, the City Council gave approval for final funding recommendations to be forwarded to the County Board of Supervisors for 2025 CDBG projects. ///
///
///
///
///

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

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

2. City Manager is authorized for the current CDBG funding cycle to make pro rata adjustments to the allocation based on the final funding amount from San Luis Obispo County based on the approval of the federal budget and HUD’s final grant amount to San Luis Obispo County.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 11th day of February 2025 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

RESOLUTION NO. 06-25
EXHIBIT “A”

FINAL FUNDING RECOMMENDATIONS

TO FORWARD TO THE

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

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

2. Project Name: ADA Sidewalk
Repair/Replacement Project
Applicant: Public Works Department, City of
Morro Bay
$48,255 $48,255
Total Funds Requested $51,255
Total Funds Recommended $51,255
Estimated Total 2025 Funding Available $58,914

Prepared By: ___AC_____ Dept Review: __GK____
City Manager Review: ___ _____ City Attorney Review: __RWS ____ Staff Report
TO: Honorable Mayor and City Council DATE: January 30, 2025 FROM: Greg Kwolek, Public Works Director
Damaris Hanson, Utilities Division Manager
SUBJECT: Receive and File Fiscal Year 2024 Quarter 4 WRF Quarterly Report

RECOMMENDED ACTION
Review and file the Fiscal Year 2024 4
th Quarter WRF Quarterly Report.

FISCAL IMPACT
None.

DISCUSSION
The purpose of the WRF Quarterly report is to provide status updates on schedule, budget, contract management, cashflow, key activities, and critical path items as they relate to the WRF program.

The attached Quarterly report, which describes project budget, timelines, activities, and highlights, is different from prior reports in that it covers a full fiscal year rather than one quarter. This was done first because major construction activities associated with the project had already concluded, but also to save on costs associated with preparing the report. The report does not cover activities occurring after June 30, 2024.

The FY24 Q4 WRF Quarterly Report covers the period from July 1, 2023, to June 30, 2024, and the major highlights from this period include the following:
 FBV completed all construction punch list items.
 Construction Contract of the WRC reached final completion in January 2024.  Anvil completed all construction punch list items.
 At City’s request, the SRF program sent City a letter clarifying minimum requirements of the Recycled Water Program, which were determined to be injection of 412.5 acre feet per year of advanced purified water within five years of program completion.  Construction contract for the Conveyance Facilities reached final completion in March 2024.  All phases (Phases I through IV) of the ultraviolet (UV) disinfection challenge testing at the WRC were completed.
 The City successfully negotiated the contract terms and conditions of an Amendment to the State Revolving Fund Construction Loan Amendment including an additional $21 million dollars of low‐interest financing available for the project (amendment execution anticipated by August).
 The City advertised a contract for engineering design services for the design of the recycled AGENDA NO: 7.c
MEETING DATE: February 11, 2025

water facilities component of the program.
 Confluence Engineering Solutions (Confluence) is the Program Manager for the recycled water facilities component of the WRF Program. Carollo Engineers (Carollo) will continue to lead the permitting effort of the recycled water facilities.  GSI Water Solutions (GSI) completed the Revised Draft Basis of Design Report (BOD) for the Indirect Potable Reuse (IPR) recycled water injection and extraction program based on the Cleath‐Harris Geologists (CHG) Peer Review.
 On June 11, 2024 the City Council selected the Cannon Corporation out of San Luis Obispo for engineering design services for the injection wells and recycled water pipelines, and approved contract amendments for Program Management, Permitting Support, and Hydrogeologic Support Services.
 Between June 12 and June 21, 2024, City staff and the Recycled Water Program Team oversaw the completion of archeological and hydrogeologic coring/testing at the proposed injection well locations and archeological testing along the proposed pipeline alignments.

The Public Works Advisory Board review this quarterly report on October 16, 2024. The delay in bringing the report to the City Council was due to the Director of Public Works leave of absence.

This is the final formal WRF Quarterly Report in its current format. Subsequent reports covering activities of the Recycled Water project and will not be prepared by Carollo. Staff intends future reports to be in a simpler format to include:
 Financial summaries
 Project activities
 Accomplishments/Challenges
The report will be shared quarterly or biannually with the Public Works Advisory Board and the City Council.

ATTACHMENT(S)

1. Fiscal Year 2024 Quarter 4 Quarterly Report

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY City of Morro Bay
Water Reclamation Facility Program
QUARTERLY REPORT –
ENDING June 30, 2024
FY 2023-2024
July 1, 2023 through June 30, 2024

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | i
pw://Carollo/Documents/Client/CA/Morro Bay/11100A60/Deliverables/Program Update Reports/Q1_24_25_PWAB/WRF_PWAB Quarterly Report FY2324.docx Contents
Executive Summary 1
ES.1 Progress during FY 23/24 1
ES.2 Budget Status 1
ES.3 Key Accomplishments in FY 23/24. 1
ES.4 Challenges and Upcoming Activities 2
Section 1 - Program Management Summary 3

1.1 Purpose of the Quarterly Progress Report 3

1.2 Program Budget 3

1.3 Cashflow Projections and Actual Expenditures 4

1.4 Program Funding 5

1.5 Program Schedule Overview 5
Section 2 - WRC Project 9

2.1 Construction Progress Summary 9

2.2 Project Photographs 10

2.3 Contract Amendment Summary 10

2.4 Project Schedule 10
Section 3 - Conveyance Facilities Project 12

3.1 Construction Progress Summary 12

3.2 Project Photographs 13

3.3 Change Order Summary 13

3.4 Project Schedule 13
Section 4 - Recycled Water Facilities Project 15

4.1 Project Progress Summary 15

4.1.1 Q1 Pre-Construction Project Progress – July 1, 2023 through September 30, 2023 15

4.1.2 Q2 Pre-Construction Project Progress – October 1, 2023 through December 31, 2023 15

4.1.3 Q3 Pre-Construction Project Progress – January 1, 2024 through March 31, 2024 16

4.1.4 Q4 Pre-Construction Project Progress – April 1, 2024 through June 30, 2024 17

4.2 Project Schedule 19

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | ii
Appendices
Appendix A ABBREVIATIONS
Appendix B FISCAL YEAR EXPENDITURES BY BUDGET CODE
Appendix C WRF PROGRAM FUNDING REQUESTS AND REIMBURSEMENTS STATUS SUMMARY Appendix D PROGRAM MILESTONES
Appendix E FBV AMENDMENT DETAILS
Appendix F ANVIL AMENDMENT DETAILS
Tables
Table 1 WRF Program Budget 3
Table 2 Project Component Contract History 3
Table 3 WRF Program Expenditures 5
Table 4 WRF Program Funding Sources 5
Table 5 WRC Project Contract Amendment Summary 10
Table 6 Conveyance Facilities Contract Amendment Summary 13 Figures
Figure 1 Program Cash Actual and Forecasted Expenditures 7 Figure 2 Program-Wide Summary Schedule 8
Figure 3 WRC Project Component Schedule 11
Figure 4 Conveyance Facilities Project Component Schedule 14 Figure 5 RWF Project Component Schedule 20

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | 1

EXECUTIVE SUMMARY
“Our Water” is the City of Morro Bay’s (City) program to plan and build water and wastewater infrastructure for a sustainable future for the environment, our economy, and the community. The key project elements include the following:
• On-site tertiary treatment facility with a capacity of approximately 1 million gallons per day. The Water Resource Center (WRC) is located at Highway 1 and South Bay Boulevard and construction was completed in early 2024.
• On-site full advanced treatment facilities capable of meeting the State Division of Drinking Water (DDW) requirements for potable reuse via groundwater augmentation. • Off-site raw wastewater conveyance facilities including pipelines and two pump stations to convey raw wastewater, tertiary-treated wastewater, and reverse osmosis concentrate (brine) between the former wastewater treatment plant (WWTP) site and the WRC. • Off-site indirect potable reuse facilities including pipelines and injection wells necessary for groundwater augmentation in the Morro groundwater basin (Recycled Water Facilities [RWF]).

The entire program is separated into four different phases. Phase 1 includes the WRC construction, Phase 2 includes the off-site pipelines and lift stations construction, Phase 3 includes the recycled water injection wells and supporting infrastructure, and Phase 4 includes the decommissioning of the City’s former WWTP.

Phases 1 and 2 are complete. Phase 3 is currently in design and Phase 4 is still in the planning phase. The anticipated completion date of the entire program is fall 2026. This report summarizes key accomplishments and challenges from the four quarters (Q1 to Q4) of the 2023-2024 fiscal year (FY). It includes information and data on the overall program budget and the status of the individual program components.

ES.1 Progress during FY 23/24
The WRC and Conveyance Facilities have both reached final completion and are fully operational. The close out of the Filanc Black & Veatch (FBV) construction contract for the WRC was approved by City Council on April 9, 2024. The close out of the Anvil Builders construction contract for the Conveyance Facilities Project was approved by City Council on April 9, 2024, as well. The RWF is 22 percent complete and is anticipated to be complete by Fall 2026. Major accomplishments are summarized below.

ES.2 Budget Status
The current program budget is $159.84 million and $145.19 million has been spent to date.

ES.3 Key Accomplishments in FY 23/24.
• FBV completed all of the construction punch list items. • Construction Contract of the WRC reached final completion in January 2024. • Anvil completed all of the construction punch list items. • Construction contract for the Conveyance Facilities reached final completion in March 2024. • All phases (Phases I through IV) of the ultraviolet (UV) disinfection challenge testing at the WRC were completed.
• The City successfully negotiated the contract terms and conditions of an Amendment to the State Revolving Fund Construction Loan Amendment including an additional $21 million dollars of lowinterest financing available for the project (amendment execution anticipated by August 2024).

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER ͮͬͮͰ | ͮ
 The City advertised a contract for engineering design services for the design of the recycled water facilities component of the program.
 Confluence Engineering Solutions (Confluence) is the Program Manager for the recycled water facilities component of the Water Reclamation Facility (WRF) Program. Carollo Engineers (Carollo) will continue to lead the permitting effort of the recycled water facilities.  GSI Water Solutions (GSI) completed the Revised Draft Basis of Design Report (BOD) for the Indirect Potable Reuse (IPR) recycled water injection and extraction program based on the Cleath‐Harris Geologists (CHG) Peer Review.
 On June ͭͭ, ͮͬͮͰ, the City Council selected the Cannon Corporation out of San Luis Obispo for engineering design services for the injection wells and recycled water pipelines, and approved contract amendments for Program Management, Permitting Support, and Hydrogeologic Support Services.
 Between June ͭͮ, ͮͬͮͰ, and June ͮͭ, ͮͬͮͰ, City staff and the Recycled Water Program Team oversaw the completion of archeological and hydrogeologic coring/testing at the proposed injection well locations and archeological testing along the proposed pipeline alignments.

ES.4 Challenges and Upcoming Activities
The program team continues to progress recycled water facilities planning, design and permitting activities.

The program manager, Confluence, continues to develop the Phase ͭ RWF Implementation Strategy using findings from the Water Supply Evaluation Model, BODR, and IPR Pipeline Alignment Alternatives Analysis.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | 3
Section 1

PROGRAM MANAGEMENT SUMMARY

1.1 Purpose of the Quarterly Progress Report
The WRF program quarterly progress report describes current budget status, funding agency reimbursements, planning, design and construction activities, and project component schedules. The following sections and tables reflect the change and status of the program budget, contract values, expenditures to date, and schedule. This quarterly report specifically outlines the program metrics for FY 23/24 from July 1, 2023, to June 30, 2024. Abbreviations used throughout this quarterly progress report are found in Appendix A.

1.2 Program Budget
Table 1 shows the current program budget.

Table 1 WRF Program Budget
Program
Component Baseline(1) FY 21/22 FY 22/23 (2) FY 23/24 (3) Current %
Change From
Baseline
WRC Plant $62,414,000 $77,687,023 $79,643,216 $79,123,216 27% Conveyance
Facilities $21,087,000 $37,982,000 $39,774,724 $40,324,350 91% RWF $8,593,000 $6,668,000 $9,424,174 $9,424,174 10%
General
Project $24,403,000 $15,445,000 $30,998,235 $30,968,609 27% Construction
Contingency $9,444,000 $6,892,854 Note 2 Note 2 N/A
Total $125,941,000 $144,674,877 $159,840,349 $159,840,349 27% Notes:
(1) Baseline budget established Q4 of FY 2017/2018.
(2) The FY 22/23 budget adopted by City Council on June 28, 2022, was $159,840,349. As of FY 22/23, the construction and overall program contingency is budgeted within each Program Component.
(3) The FY 23/24 budget adopted by City Council on June 13, 2023 was $159,840,349 and allocated as shown.

Table 2 shows the initial and current contract values by project component.

Table 2 Project Component Contract History
Project Component Contractor Initial Contract
Value
Current Contract
Value
%
Change
WRC Plant $67,234,512 $79,000,000 17%
Design/Build FBV (Overland) $67,234,512 $79,000,000 17% Conveyance Facilities $33,315,112 $42,350,755 27%
Design WWE $1,360,565 $2,615,113 92%(4)

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | 4
Project Component Contractor Initial Contract
Value
Current Contract
Value
%
Change
Construction Anvil Builders $31,493,675 $37,264,606 18% Permitting Cogstone, Far Western,
KMA $460,872 $2,471,036 436%(4)
RWF $2,313,326 $3,456,714 49%
Planning and Modeling GSI, Cleath Harris $443,650 $1,391,363 214%(4) Pilot Injection Well Construction ABC Liovin, Pacific
Coast Well Drilling $356,585 $365,260 2%
Environmental Permitting Rincon, Far Western,
KMA $267,830 $454,830 70%(4)
Injection Wells Design GSI, Cannon, WWE $1,245,261 $1,245,261 0% Injection Wells Construction To Be Determined -- -- --
General Project $920,619 $14,991,033 1528%
Program and Construction
Management – WRC, Conveyance Carollo(1) $293,000 $13,508,401 4510%(4) Program Management – RWF ConfluenceES(2) $627,619 $967,532 54%(4) City Contracts Note 3 Note 3 $515,100 --
Total $103,783,569 $139,798,502 --
Notes:

Abbreviations: WWE – Water Works Engineers; KMA – Kevin Merk Associates; GSI – GSI Water Solutions. (1) Carollo’s program management costs for the WRC and Conveyance Facilities include permitting, public outreach, funding support, and construction oversight/management.
(2) ConfluenceES’s program management costs for RWF include funding & financing, and oversight of hydrogeologic evaluation, environmental & permitting, and design.
(3) Initial City Contract values for previous and/or inactive consultants (such as Michael K. Nunley and Associates, Black & Veatch, Environmental Science Associates, and Kestrel) are unknown. Current contract values are shown only for FY 23/24 active consultants including Bartle Wells Associates, Cannon, and James S. Phillips Automation. (4) These percent changes between initial contract value to current contract values represent a significant increase in contract scope tasks through project progression. For Conveyance Design, the WWE design scope expanded to include engineering services during construction. For Conveyance Permitting, the additional cultural permitting and cultural monitoring needs of the project expanded the contracts for Cogstone and Far Western as the project started with the initial permitting efforts and eventually included day to day field work, archeological investigations, and oversight during construction. For RWF Planning and Modeling, GSI’s original contract included scope for groundwater modeling and a pilot injection test. GSI’s contract amendments include additional scope and budget for the Basis of Design Report, the Quarterly Monitoring Plan for the Groundwater Replenishment Reuse Project Permit, permitting support, water quality evaluations, evaluation of initial injection well locations, and hydrogeologic support services during sonic boring. Cleath-Harris Geologists’ original contract was scoped for hydrogeologic peer evaluation, and the budget was not amended/increased. For RWF Environmental Permitting, additional work included coordination of the environmental requirements to expand the Area of Potential Effect to include injection wells in areas beyond the original area of impact outlined in the Environmental Impact Report. For General Project, Program and Construction Management of the WRC and Conveyance, Carollo’s initial scope began with peer reviewing the original program technical team’s performance metrics and the WRC design-build contract, and expanded into program management and construction management as described in Note 1 above. For General Project, Program Management of the RWF, the ConfluenceES scope started with Program Management for FY 22/23 and expanded to include Program Management for FY 23/24.

1.3 Cashflow Projections and Actual Expenditures
Figure 1 shows cashflow projections and actual expenditures through the current period.

Table 3 lists actual expenditures for each program component and the percent of the budget expended.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | 5
Table 3 WRF Program Expenditures
Program
Component
Previous
Total
Expenditures
FY 23/24
Expenditures (1)
Total Expenditures
To Date
FY 23/24
Budget (2)
Percent
Budget
Expended
WRC Plant $75,070,065 $2,825,171 $77,895,236 $79,123,216 98% Conveyance
Facilities $39,855,190 $1,036,012 $40,891,202 $40,324,350 101% RWF $1,433,276 $639,019 $2,072,295 $9,424,174 22%
General Project $23,214,862 $1,118,859 $24,333,721 $30,968,609 79% Total $139,573,393 $5,619,061 $145,192,454 $159,840,349 91% Notes:
(1) Q1 through Q4 FY 23/24 total expenditures as tallied on the Accounts Payable Report run on August 6, 2024, including all FY invoices accrued through June 30, 2024. See Appendix B Note 2 for additional details. (2) The FY 23/24 budget adopted by City Council.

1.4 Program Funding
Table 4 lists WRF program funding sources.

Table 4 WRF Program Funding Sources
Funding Agency Funding Type Amount Financed Initiation Date Terms SWRCB – CWSRF
Construction Loan
Low Interest
Loan $66,604,638 7/1/2021 0.9%, 30 years(1)
SWRCB – CWSRF
Construction Loan
Amendment
Low Interest
Loan $21,172,000 Anticipated in August 2024 0.9%, 30 years(1) EPA – WIFIA Low Interest
Loan $61,700,336 3/9/2020 0.83%, 35 years(1)
SWRCB – CWSRF
Planning Loan
Low Interest
Loan $10,300,000 12/11/2015 0.9%, 30 years(1)
Recycled Water
Planning Grant Grant $75,000 9/10/2015 Costs reimbursed upon request Total $159,851,974
Notes:

Abbreviations: CWSRF – Clean Water State Revolving Fund; EPA – Environmental Protection Agency; WIFIA – Water Infrastructure Finance and Innovation Act.
(1) The total financed amount from these four sources is anticipated to be $159,776,974. By incorporating approximately $40 million of recycled water components into the project (from Phases 1, 2, and 3), the City received a lower interest rate on the loans, which is anticipated to save the City approximately $41 million over the life of the loans using a comparison standard bonded interest rate of

4.7 percent.

Appendix C provides detailed information on funding reimbursements.

1.5 Program Schedule Overview
In June 2018, the City received a Time Schedule Order (TSO) from the Regional Water Quality Control Board that required the City to achieve full operation of the new WRC by February 2023. The key milestones included in the TSO are included in Appendix D, and the overall program schedule is shown in Figure 2. The current construction progress percent complete to date per contract spent is 100 percent for the WRC and 100 percent for Conveyance Facilities. Figure 3, Figure 4, and Figure 5 show the current progress schedules

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with respect to major milestones. The RWF currently is at a project progress of 22 percent which represents the completion of the test injection well, Basis of Design Report and initial development of the injection well and recycled water pipeline design.

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Figure 1 Program Cash Actual and Forecasted Expenditures

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Figure 2 Program-Wide Summary Schedule
Task Name % Complete J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Time Schedule Order
WIFIA Loan Secured
SRF Loan Secured
Water Resources Center 100.0%
Engineering Design
Construction NTP
Construction Progress
Seed Plant
E&IC Loop Checks
Substantial Completion
Final Completion
Conveyance Facilities 100.0%
Engineering Design
Public Bid Period
Award Construction Contract
Construction NTP
Construction Progress: Critical Path Utility Bridge
Pump Station Start-up
Substantial Completion
Final Completion
Recycled Water Facilitites
Injection Well Feasibility
Injection Well Siting
Crtical Path: Pilot Injection Test
Basis of Design Report
Engineering Design
Bidding & Construction NTP
Construction
Start-up and Commissioning
Substantial Completion
Title 22 Engineering Report
Final Completion
Tracer Study
Project milestone approved
Projected Schedule Extension
Approved baseline schedule
Critical path item
Projected Critical path item
2025
Critical Path: Wastewater Commissioning
2026
Morro Bay WRF Program
Program Wide Schedule Summary
Updated: FY23-24
2019 2020 2021 2022 2023 2024
Amendment Request
Amendment Approved
RWF Bid
Final Completion Deadline
RWF Bid
Pillot Injection Well Install
March 22, 2022 One Bid Recieved Dec 9, 20221 No Bids Recieved SRF Requirements Delay

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Section 2

WRC PROJECT

2.1 Construction Progress Summary
Major accomplishments during this period are summarized below.

General and Administrative
• The City has completed the TSO milestone requirement of full operation of wastewater treatment facilities in compliance with the State National Pollutant Discharge Elimination System (NPDES) permit and other regulatory requirements.
• Contractor has completed the construction close out punchlist. The WRC received final completion in January 2024.
• Contractor/subcontractors complied with Davis-Bacon Act requirements throughout the construction of the entire WRC project. All labor compliance materials have been provided to the City for any public information requests.
• FBV, Carollo, and the City completed Phases I through IV of the UV-Challenge Test. • The Final contract cost for the WRC was $79,000,000. FBV’s final contract amendment was approved by City Council on April 9, 2024.

Headworks
• Completed and in service.

Biological Nutrient Removal/Membrane Bioreactor Treatment • Completed and in service.

Reverse Osmosis/UV Advanced Oxidation Process (AOP)
• Completed and in service.

Purified Water Facilities
• Completed.

Residuals/Sludge Processing
• Completed and in service.

Electrical and Controls
• Completed and in service.

Chemical Storage and Feed
• Completed and in service.

Operations Building
• Building is completed and occupied by City staff.

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Maintenance Building
• Building is completed and occupied by City staff.

City Yard Facilities
• Buildings are completed and occupied by City staff.

2.2 Project Photographs
There are no construction photographs to include since the plant construction is complete and operational.

2.3 Contract Amendment Summary
Table 5 contains a summary of the contract amendments for the WRC project component. Each amendment included multiple change orders to address changes in scope from the original proposal. A detailed summary of each amendment is provided in Appendix E.

Table 5 WRC Project Contract Amendment Summary
Amendment No. Council Approval Date Amount
1 May 2019 $1,636,060
2 March 2020 $63,937
3 May 2020 $5,992,218
4 November 2020 $835,097
5 March 2021 $(195,946)
6 September 2021 $1,132,117
7 June 2022 $0
Revised 7 August 2022 $359,885
8 November 2022 $957,418
9 May 2023 $409,028
10 April 2024 $575,674
Total $11,765,488

2.4 Project Schedule
Figure 3 shows the WRC construction and start-up schedule.

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Figure 3 WRC Project Component Schedule
Task Name % Complete J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Water Resources Center 100.0%
Engineering Design
Construction NTP
Construction Progress
Seed Plant
E&IC Loop Checks
Substantial Completion
Final Completion
Project milestone approved
Projected Schedule Extension
Approved baseline schedule
Critical path item
Projected Critical path item
Critical Path: Wastewater Commissioning
Morro Bay WRF Program
WRC Project Component Schedule Summary
Updated: FY23/24
2019 2020 2021 2022 2023 2024

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Section 3

CONVEYANCE FACILITIES PROJECT

3.1 Construction Progress Summary
Major accomplishments during this period are summarized below.

General and Administrative
• The City has completed the TSO milestone requirement of full operation of the wastewater treatment facilities in compliance with the State NPDES permit and other regulatory requirements. • Contractor has resolved all punch list items and was responsive to warranty items. • Contractor/subcontractors complied with Davis-Bacon Act requirements throughout the duration of construction. All labor compliance materials have been provided to the City for any public information requests.
• Anvil Builders, Water Works Engineers (design engineer for the Conveyance Facilities), Carollo and the City coordinated on the effluence discharge line (brine line) capacity issues extensively. As of May 2024, City Staff and Water Works were coordinating a means of testing the effluent discharge capacity.
• The Final contract cost for the Conveyance Facilities was $37,264,606. Anvil’s final contract amendment was approved by City Council on April 9, 2024, for $880,000. - $200,000 of retainage continues to be held by the City for any improvements needed to address the capacity of the effluent discharge line.

Sanitary Sewer Pump Stations
Pump Station A
• Pump Station facility is completed and in service.

Pump Station B
• Pump Station facility is completed and in service.

Existing Lift Station 2
• Pump Station connection is completed and in service.

Existing Lift Station 3
• Connection to existing Lift Station 3 was completed.

Pipelines
Segment 1 – Atascadero Road (Existing City Wastewater Treatment Plant to Bike Path) • Pipelines and other facilities in this segment are completed and in service.

Segment 2 – Bike Path (Atascadero Road to Morro Creek Foot Bridge) • Pipelines and other facilities in this segment are completed and in service.

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Segment 3 – Bike Path (Morro Creek Foot Bridge to Main Street) • Pipelines and other facilities in this segment are completed and in service.

Segment 4 – Main Street (Bike Path to Quintana Road)
• Pipelines and other facilities in this segment are completed and in service.

Segment 5 – Quintana Road (Main Street to Morro Bay Boulevard) • Pipelines and other facilities in this segment are completed and in service.

Segment 6 – Quintana Road (Morro Bay Boulevard to La Loma Avenue) • Pipelines and other facilities in this segment are completed and in service.

Segment 7 – Quintana Road (La Loma Avenue to South Bay Boulevard) • Pipelines and other facilities in this segment are completed and in service.

Segment 8 – South Bay Boulevard (Quintana Road to New Morro Bay WRC) • Pipelines and other facilities in this segment are completed and in service.

Segment 9 – Vistra Property (Bike Path to Existing Lift Station 2) • Pipelines and other facilities in this segment are completed and in service.

3.2 Project Photographs
There are no construction photographs to include since the Conveyance Facilities construction is complete and operational.

3.3 Change Order Summary
Table 6 contains a summary of the contract amendments for the Conveyance Facilities project component.

Each amendment included multiple change orders to address changes in scope from the original proposal. A detailed summary of each amendment is provided in Appendix F.

Table 6 Conveyance Facilities Contract Amendment Summary Amendment No. Council Approval Date Amount
1 October 2021 $674,485
2 January 2022 $587,502
3 March 2022 $241,317
4 June 2022 $(54,065)
5 August 2022 $1,253,667
6 November 2022 $646,763
7 February 2023 $124,970
8 May 2023 $1,416,292
9 April 2024 $880,000
Total $5,770,931

3.4 Project Schedule
Figure 4 shows the Conveyance Facilities construction and start-up schedule.

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Figure 4 Conveyance Facilities Project Component Schedule Task Name % Complete J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Conveyance Facilities 100.0%
Engineering Design
Public Bid Period
Award Construction Contract
Construction NTP
Construction Progress: Critical Path Utility Bridge
Pump Station Start-up
Substantial Completion
Final Completion
Project milestone approved
Projected Schedule Extension
Approved baseline schedule
Critical path item
Projected Critical path item
Morro Bay WRF Program
Conveyance Project Component Schedule Summary
Updated: FY23/24
2019 2020 2021 2022 2023 2024

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Section 4

RECYCLED WATER FACILITIES PROJECT

4.1 Project Progress Summary
The RWF project of the WRF program is currently in the design phase. The City recently completed archeological and hydrogeological testing for potential injection and is beginning design of the recycled water injection wells and pipelines. The following activities were completed during previous quarters.

4.1.1 Q1 Pre-Construction Project Progress – July 1, 2023 through September 30, 2023 • GSI Water Solutions (GSI) completed the Revised Draft Basis of Design Report (BOD) for the Indirect Potable Reuse (IPR) recycled water injection and extraction program based on the Cleath-Harris Geologists (CHG) Peer Review
• The WRF Program Team completed the Ultraviolet/Advanced Oxidation Process (UV/AOP) and began preparing the report for the DDW review and approval consideration. • Water Works Engineers completed an IPR pipeline alignment alternatives analysis to inform the WRF Program Team on options for conveying advanced purified water to the injection well locations identified in the BOD.
• Rincon Consultants provided input on the environmental review requirements for the IPR pipeline alignment alternatives.
• Carollo Engineers continued preparation of the Report of Wastewater Discharge (ROWD) Application for the IPR Program.
• Confluence Engineering Solutions (ConfluenceES) continued evaluation of the City’s water supply portfolio through use of the Water Supply Evaluation Model to evaluate near-term and build-out IPR recycled water requirements for providing the City with a reliable/resilient water supply portfolio. • ConfluenceES developed the Phase 1 Recycled Water Program Implementation Strategy, incorporating findings from the Water Supply Evaluation Model, BOD and IPR Pipeline Alignment Alternatives Analysis.

There were no construction progress or project photographs taken during this reporting period.

4.1.2 Q2 Pre-Construction Project Progress – October 1, 2023 through December 31, 2023 • Carollo Engineers continued preparation of the ROWD Application and Engineers Report for the IPR Program.
• City Staff and the Recycled Water Program Team participated in a meeting with the DDW to review the results of the UV/AOP Challenge Test.
• City Staff and the Recycled Water Program Team participated in a tour of the Orange County Water District’s Groundwater Replenishment System treatment facility and injection wellfield. • City Staff and the Recycled Water Program Team coordinated with the project archeologist and biologist to develop recommendations for modifying the Area of Potential Effect for the WRF Program.
• City Staff and the Recycled Water Program Team prepared Requests for Proposals (RFPs) for the procurement of engineering and hydrogeologic design services for the injection wells and recycled water pipelines.

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• City Staff and the Recycled Water Program Team coordinated with the WRF Program Funding/Financing Agencies regarding the Recycled Water Program schedule and other requirements.
• On October 18, 2023, the Phase 1 Recycled Water Program Implementation Strategy and the Recycled Water Program Implementation Consultant Contracts were presented to the Public Works Advisory Board (PWAB).
• On November 14, 2023, the Phase 1 Recycled Water Program Implementation Strategy and the Recycled Water Program Implementation Consultant Contracts was presented to a Joint City Council and PWAB Meeting. The City Council approved moving forward with the implementation of Phase 1 of the Recycled Water Program and approval of the Recycled Water Program Implementation Consultant Contracts, conditional on drafting a letter to the CWSRF representatives requesting formal documentation of the minimum recycled water program implementation requirements.
• City Staff and the WRF Subcommittee developed and submitted the letter requesting formal documentation of the minimum recycled water program implementation requirements to the CWSRF representatives.

There were no construction progress or project photographs taken during this reporting period.

4.1.3 Q3 Pre-Construction Project Progress – January 1, 2024 through March 31, 2024 • On January 25, 2024 the City and the Recycled Water Program Team submitted the remaining requested documents required to begin development of the Bureau of Reclamation (Reclamation) Title XVI Grant Agreement.
- During Q3, the City and the Recycled Water Program Team coordinated with Reclamation to modify submitted materials and begin preparation of the Title XVI Grant Agreement. • On January 26, 2024 City Staff and the Recycled Water Program Team participated in a tour of the Pure Water Monterey treatment facility and injection wellfield. • On February 27, 2024 the City received a response to the letter submitted to the CWSRF representatives requesting formal documentation of the minimum recycled water program implementation requirements.
- The response letter indicated that to meet the Recycled Water Program implementation requirements of the CWSRF loan, the City must deliver 412.5 acre-feet per year (AFY) of recycled water to existing users within five years of completion of construction, currently scheduled for September 2026.
- On March 12, 2024 City Staff and the Recycled Water Program Team presented the response letter from the SWRCB regarding the request for formal documentation of the minimum recycled water program implementation requirements to City Council. - On March 15, 2024 City Staff and the Recycled Water Program Team released the RFP for the procurement of engineering design services for the injection wells and recycled water pipelines. - During Q3, City Staff and the Recycled Water Program Team continued preparation of the RFP for the procurement of hydrogeologic design services for the injection wells and recycled water pipelines.
• On February 29, 2024 City Staff and the Recycled Water Program Team held a Risk Assessment Workshop to identify and develop mitigation strategies for potential risks to the implementation of the Recycled Water Program.
• On March 18, 2024, City Staff and the Recycled Water Program Team submitted a letter to the EPA requesting to expand the Area of Potential Effect (APE) for the EPA’s Programmatic Agreement with the State Historic Preservation Officer (SHPO) for Phase 3 of the WRF Project.

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 During Qͯ, City Staff and the Recycled Water Program Team continued preparation of the Report of Wastewater Discharge (ROWD) Application and Engineers Report for the Indirect Potable Reuse (IPR) Recycled Water Program.
 On March ʹ, ͮͬͮͰ, City Staff and the Recycled Water Program Team met with representatives from the Regional Water Quality Control Board and the DDW to provide a status update on and ask questions regarding the ROWD Application and Engineers Report.

There were no construction progress or project photographs taken during this reporting period.

4.1.4 Q4 Pre-Construction Project Progress – April 1, 2024 through June 30, 2024  On April ͮ͵, ͮͬͮͰ, City staff and the Recycled Water Program Team toured the Goleta Water District’s Injection Well Facilities.
 On May Ͳ, ͮͬͮͰ, City staff and the Recycled Water Program Team released a request for proposals (RFP) for the procurement of hydrogeologic support services for injection well design and construction support:
- On May ͭͰ, ͮͬͮͰ, City staff and the Recycled Water Program Team held a pre‐proposal meeting for the hydrogeologic support services for injection well design and construction support RFP.  On April ͭͭ, ͮͬͮͰ, City staff and the Recycled Water Program team coordinated with the United States Environmental Protection Agency (USEPA) to request a five‐year extension of the Programmatic Agreement between the USEPA and the SHPO.
 On May ͭ, ͮͬͮͰ, City staff and the Recycled Water Program Team received notification from the USEPA that the requested expansion of the Area of Potential Effect for the Programmatic Agreement was approved by the SHPO for Phase ͯ of the WRF Project.  On May ͮͯ, ͮͬͮͰ, the City submitted a Nitrate Blending Operations, Maintenance, and Monitoring Plan (OMMP) and Drinking Water System permit amendment application to the DDW for approval consideration. The Nitrate Blending OMMP and Drinking Water System permit amendment are needed to allow for the completion of the interim tracer study test:
- On June ͭʹ, ͮͬͮͰ, the City received notification from DDW that the Nitrate Blending OMMP and Drinking Water System permit amendment were approved.  On June ͭͭ, ͮͬͮͰ, the City Council selected the Cannon Corporation for engineering design services for the injection wells and recycled water pipelines and approved contract amendments for Program Management, Permitting Support, and Hydrogeologic Support Services.  Between June ͭͮ, ͮͬͮͰ and June ͮͭ, ͮͬͮͰ, City staff and the Recycled Water Program Team oversaw the completion of archeological and hydrogeologic coring/testing at the proposed injection well locations and archeological testing along the proposed pipeline alignments.  On June ͭʹ, ͮͬͮͰ, the updated intermediate tracer test plan was completed and submitted to the Central Coast RWQCB as part of the renewal of the City’s Pilot Aquifer Storage and Recovery Permit.
 During Qͮ, City staff and the Recycled Water Program Team coordinated with the Bureau of Reclamation to modify grant agreement materials and continue preparation of the Title XVI Grant Agreement.
 During Qͮ, City staff and the Recycled Water Program Team continued preparation of the Report of Waste Discharge Application and Engineers Report for the Recycled Water Program permitting.

Please see the photographs taken during the archeological/hydrogeological testing for the injection well locations and pipeline alignments.

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Well Site Coring – Sonic Boring #8 (SB #8) Well Site after Coring and Filling (SB #7) Well Site Cores (Deep Sonic Cores) Well Site Cores (Deep Sonic Cores) Pipeline Alignment Cores (Shallow Cores) Pipeline Alignment Cores (Shallow Cores)

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4.2 Project Schedule
The “SRF Requirements Delay” refers to a project delay associated with the City Council request to obtain a letter confirming the minimum recycled water implementation requirements from the SWRCB. On November 14, 2023, the Phase 1 Recycled Water Program Implementation Strategy and the Recycled Water Program Implementation Consultant Contracts item was presented at a Joint City Council and PWAB Meeting. The City Council approved moving forward with the implementation of Phase 1 of the Recycled Water Program and approval of the Recycled Water Program Implementation Consultant Contracts, conditional on drafting a letter to the CWSRF representatives requesting formal documentation of the minimum recycled water program implementation requirements. This letter was sent by City staff on November 27, 2023. On February 27, 2024, the City received a response to the letter submitted to the CWSRF representatives indicating that to meet the Recycled Water Program implementation requirements of the CWSRF loan, the City must deliver 412.5 AFY of recycled water to existing users within five years of completion of construction, currently scheduled for September 2026. During the intervening time, City Staff could not proceed with releasing the Request for Proposals for the Recycled Water Facilities Design and Engineering Support During Construction Services.

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Figure 5 RWF Project Component Schedule
Task Name % Complete J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Recycled Water Facilities
Injection Well Feasibility
Injection Well Siting
Crtical Path: Pilot Injection Test
Basis of Design Report
Engineering Design
Bidding & Construction NTP
Construction
Start-up and Commissioning
Substantial Completion
Title 22 Engineering Report
Final Completion
Tracer Study
Projected Project Milestone
Project milestone approved
Projected Schedule Extension
Approved baseline schedule
Critical path item
Projected Critical path item
2025 2026
Morro Bay WRF Project
Recycled Watre Facilities Summary
Updated: FY 23/24 Q4
2019 2020 2021 2022 2023 2024
RWF Bid
Pillot Injection Well Install
March 22, 2022 One Bid Recieved Dec 9, 2021 No Bids Recieved SRF Requirements Delay

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024
Appendix A

ABBREVIATIONS

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | A-1
Appendix A

ABBREVIATIONS
AFY acre-feet per year
Anvil Anvil Builders
AOP advanced oxidation process
BODR Basis of Design Report
Carollo Carollo Engineers, Inc.

CHG Cleath-Harris Geologists
City City of Morro Bay
ConfluenceES Confluence Engineering Solutions
CWSRF Clean Water State Revolving Fund
DDW California State Water Resources Control Board, Division of Drinking Water DWR Department of Water Resources
EPA Environmental Protection Agency
FBV Filanc Black & Veatch
FY fiscal year
GSI GSI Water Solutions, Inc.

IPR indirect potable reuse
KMA Kevin Merk Associates
NPDES National Pollutant Discharge Elimination System
Q4 fourth quarter
RFP Request for Proposal
RWF Recycled Water Facilities
SWRCB State Water Resources Control Board
TSO Time Schedule Order
UV ultraviolet
WIFIA Water Infrastructure Finance and Innovation Act
WRC Water Resource Center
WRF Water Reclamation Facility
WWTP wastewater treatment plant

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Appendix B

FISCAL YEAR EXPENDITURES BY BUDGET CODE

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Appendix B

FISCAL YEAR EXPENDITURES BY BUDGET CODE
City
Budget
Code
Fund Name Total FY 23/24
Expenditures Vendor Name Project Component
4910 Employer Paid Benefits
4911 Pension Normal Cost
4999 Labor Costs Applied
Total Personnel Services (Above)(3) $41,866.90 City of Morro Bay General Project 6105 Consulting Services $4,335.00 Bartle Wells General Project 6161 Licenses and Permits $13,904.00 State Water Resources Control Board General Project
6162 Mandated Fees,
Inspections $12,200.00 U.S. EPA General Project
7116 Legal Services – General $146,231.20 Aleshire and Wynder General Project Total Services (Above) $176,670.20 Various General Project 6104 Engineering Services $10,140.00 Frisch Engineering Conveyance 6104 Engineering Services $603,220.61
BSK Analytical,
Confluence, Pace
Analytical, GSI, Water
Works, Rincon, CleathHarris, SWRCB, Kevin
Merk, Cannon, Far
Western
RWF
6196 Program Management &
DB Procurement $900,322.08 Carollo Engineers General Project 7105 Planning & Permitting $67,121.28 Far Western, Cogstone Conveyance 7105 Planning & Permitting $20,396.12 Far Western, Cogstone RWF 7106
Design Phase – Injection
Wells & Recycled Water
Pipeline
$3,808.27 Far Western RWF
7114 RWF Design, ESDC,
Permitting $74,942.07 Water Works Engineers Conveyance
7114 RWF Design, ESDC,
Permitting $15,402.18 Water Works Engineers, Cannon RWF Total Project Soft Costs $1,695,352.61 Various Conveyance, RWF, General Project

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City
Budget
Code
Fund Name Total FY 23/24
Expenditures Vendor Name Project Component
5116 Wastewater Collection
System Supplies $15,125.97 Aerzen WRC
5119 Miscellaneous Operating
Supplies $6,216.72 HD Supply WRC
6106 Contractual Services $40,629.34 Cannon WRC
6106 Contractual Services $880,000.00 Anvil Builders Conveyance 7107 WRC – On-Site Imprv –
Build $2,763,199.36 Filanc Black and Veatch (Overland) WRC Total Construction Costs $3,705,171.39 Various WRC, Conveyance Total Fiscal Year 2023-2024
Expenditures $5,619,061.10
Notes:
(1) City Budget Codes are from the latest Accounts Payable Report run on August 6, 2024. (2) Total quarterly expenditures shown only include invoices paid in or accrued back to this fiscal year and are derived from a cash basis of accounting using the Accounts Payable reports provided by the City. Total expenditures shown may differ from City fiscal year-end budget performance reports that are based on a modified accrual basis of accounting, which reallocates current quarter expenditures for services rendered in prior fiscal year back to the prior fiscal year. (3) Personnel Services represent costs accrued to the project and potentially reimbursable (depending on the funding source) for City staff labor hours and related pension and benefits.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024
Appendix C

WRF PROGRAM FUNDING REQUESTS AND

REIMBURSEMENTS STATUS SUMMARY

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Appendix C

WRF PROGRAM FUNDING REQUESTS AND

REIMBURSEMENTS STATUS SUMMARY
Agency Description No. Date
Submitted
Requested
Amount Approved Amount Received
SWRCB CWSRF Planning Loan 1 12/18/2022 $289,595 $217,441 Yes SWRCB CWSRF Planning Loan 2 11/19/2022 $6,431,295 $5,312,748 Yes SWRCB CWSRF Planning Loan 3 10/20/2022 $3,910,211 $2,415,669 Yes SWRCB CWSRF Planning Loan 4 10/21/2022 $930,385 $484,617 Yes SWRCB CWSRF Planning Loan 5 4/22/2022 $0 (see 5A) Not Applicable Not Applicable SWRCB CWSRF Planning Loan 5A 9/26/2022 $0 Not Applicable Not Applicable SWRCB CWSRF Planning Loan 5B 11/22/2022 $1,982,581 $1,869,525 Yes CWSRF Planning Loan Subtotal $13,544,067 $10,300,000
SWRCB CWSRF Construction Loan 1 9/21/2022 $11,185,433 $11,185,433 Yes SWRCB CWSRF Construction Loan 2 11/21/2022 $10,886,581 $10,886,581 Yes SWRCB CWSRF Construction Loan 3 12/21/2022 $5,463,514 $5,463,514 Yes SWRCB CWSRF Construction Loan 4 2/22/2022 $5,943,019 $5,943,019 Yes SWRCB CWSRF Construction Loan 5 3/22/2022 $6,095,373 $6,095,373 Yes SWRCB CWSRF Construction Loan 6 5/22/2022 $3,237,138 $3,237,138 Yes SWRCB CWSRF Construction Loan 7 6/22/2022 $2,145,403 $2,145,403 Yes SWRCB CWSRF Construction Loan 8 7/22/2022 $4,245,018 $4,245,018 Yes SWRCB CWSRF Construction Loan 9 8/22/2022 $3,896,973 $3,896,973 Yes SWRCB CWSRF Construction Loan 10 9/30/2022 $2,360,768 $2,360,768 Yes SWRCB CWSRF Construction Loan 11 12/5/2022 $2,744,578 $2,744,578 Yes SWRCB CWSRF Construction Loan 12 2/2/2023 $1,791,012 $1,791,012 Yes SWRCB CWSRF Construction Loan 13 3/28/2023 $1,572,840 $1,572,840 Yes SWRCB CWSRF Construction Loan 14 7/7/2023 $4,170,989 $3,343,199 Yes CWSRF Construction Loan Subtotal $65,738,638 $64,910,849 EPA WIFIA Loan 1 5/20/2022 $1,100,944 $1,100,944 Yes
EPA WIFIA Loan 2 6/20/2022 $61,014 $50,486 Yes
EPA WIFIA Loan 3 7/20/2022 $3,489,409 $3,489,409 Yes
EPA WIFIA Loan 4 7/20/2022 $2,461,121 $2,461,121 Yes
EPA WIFIA Loan 5 8/20/2022 $142,863 $142,863 Yes
EPA WIFIA Loan 6 10/20/2022 $1,635,106 $1,635,106 Yes
EPA WIFIA Loan 7 12/20/2022 $3,008,572 $3,008,572 Yes
EPA WIFIA Loan 8 12/20/2022 $3,671,499 $3,671,499 Yes
EPA WIFIA Loan 9 1/21/2022 $5,553,851 $5,553,851 Yes
EPA WIFIA Loan 10 3/21/2022 $2,440,399 $2,440,399 Yes

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | C-2
Agency Description No. Date
Submitted
Requested
Amount Approved Amount Received
EPA WIFIA Loan 11 4/21/2022 $1,621,783 $1,621,783 Yes
EPA WIFIA Loan 12 5/21/2022 $2,988,342 $2,988,342 Yes
EPA WIFIA Loan 13 6/21/2022 $3,544,987 $3,544,987 Yes
EPA WIFIA Loan 14 7/21/2022 $2,692,977 $2,692,977 Yes
EPA WIFIA Loan 15 8/21/2022 $1,328,552 $1,328,552 Yes
EPA WIFIA Loan 16 9/21/2022 $488,601 $488,601 Yes
EPA WIFIA Loan 17 10/21/2022 $321,117 $321,117 Yes
EPA WIFIA Loan 18 11/21/2022 $346,279 $346,279 Yes
EPA WIFIA Loan 19 12/21/2022 $1,005,341 $1,005,341 Yes
EPA WIFIA Loan 20 1/22/2022 $337,646 $337,646 Yes
EPA WIFIA Loan 21 3/22/2022 $956,562 $956,562 Yes
EPA WIFIA Loan 22 4/22/2022 $395,308 $395,338 Yes
EPA WIFIA Loan 23 5/22/2022 $1,315,288 $1,315,288 Yes
EPA WIFIA Loan 24 6/30/2022 $155,599 $155,599 Yes
EPA WIFIA Loan 25 7/28/2022 $169,286 $169,286 Yes
EPA WIFIA Loan 26 8/22/2022 $723,244 $723,244 Yes
EPA WIFIA Loan 27 9/30/2022 $653,121 $653,121 Yes
EPA WIFIA Loan 28 10/26/2022 $968,147 $968,147 Yes
EPA WIFIA Loan 29 12/20/2022 $433,862 $433,862 Yes
EPA WIFIA Loan 30 2/1/2023 $262,959 $262,959 Yes
EPA WIFIA Loan 31 4/25/2023 $721,433 $721,433 Yes
EPA WIFIA Loan 32 6/28/2023 $609,260 $609,260 Yes
EPA WIFIA Loan 33 8/30/2023 $665,181 $665,181 Yes
WIFIA Loan Subtotal $46,269,655 $46,259,157
Total $125,552,360 $121,470,006
Notes:
(1) Requested reimbursement total amount to-date is less than the total funding amount of $159,851,974 available from executed agreements as shown in Table 4 due to available funding budget that is not yet utilized. Additional reimbursement for past expenditures may be pursued pending further decisions by the City. Future expenditures are not yet eligible for reimbursement in shown funding programs, since Phase 3 and Phase 4 construction has not yet begun.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024
Appendix D

PROGRAM MILESTONES

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | D-1
Appendix D

PROGRAM MILESTONES
Milestone Planned Completion Date
General Project
Compliance with the TSO 2/23/2023
WIFIA Loan Secured 3/9/2020
SRF Loan Secured 7/31/2021
WRC
Begin Design 11/5/2018
Construction Notice to Proceed 3/20/2020
Plant Seeding 10/4/2022
Substantial Completion 1/15/2023
Final Completion 3/14/2024
Conveyance Facilities
Deliver 100 Percent Design 6/15/2020
Bid Advertisement 6/16/2020
Award Construction Contract 11/10/2020
Construction Notice to Proceed 12/14/2020
Substantial Completion 4/28/2023
Final Completion 3/26/2024
RWF
Select Preferred Injection Area 6/17/2020
Pilot Injection Well – Complete 10/1/2022
Basis of Design of Report – Complete 1/31/2023
Engineering Design – Begin 3/15/2024
Construction Notice to Proceed 9/3/2025
Substantial Completion 7/1/2026
Final Completion 9/30/2026

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024
Appendix E

FBV AMENDMENT DETAILS

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-1
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
1 New Sodium
Hypochlorite Feed for
Plant Water
78,576 0 1
Add a sodium hypochlorite (disinfection) chem feed pump, add sodium hypochlorite double contained piping from the Chemical Facility to the Recycled Water pumps. Additional electrical and controls for the new sodium hypochlorite pump. The added pump is needed for redundancy.
2 Change Architecture
of Operations
Building
(21,623) 0 1 The City requested to change the Operations Building exterior architecture back to a basic style, to delete the clerestory but to include cupolas and solatubes. The City requested the change to reduce project costs. 4 Headworks Odor
Control 18,422 0 1
Adding foul air ducting from the Fine Screens and SAFE Diversion Box to the Headworks Odor Control Biofilter. Cost also includes adding a cover to the SAFE Diversion Box. The ducting and cover were adding to reduce foul air emissions.
5 Remove Canopy and
Monorail at MBR (185,434) 0 1
The MBR tank was originally design with a canopy cover and monorail/crane hoist. The monorail and crane hoist were originally included to move MBR cassettes in and out of the tank for cleaning and maintenance. The City requested the change to reduce project costs. In the future the City will use a crane or boom truck to remove MBR cassettes when necessary.
9 Consolidate Chemical
Facilities 218,978 0 1
The original design provided chemical feed pumps and storage tanks at various locations where needed on site. The City requested to centralize all chemical storage tanks and feed equipment to one facility. Work includes a larger Chemical Facility structure, and additional chemical ductbanks and double containment piping. 10 Modify Chemical
Piping (15,856) 0 1 Revise underground chemical piping, to change double containment carrier piping from rigid pipe to flexible ducting. The City accepted this change to reduce project costs. 15 Remove Solids
Dumpster Lid 14,543 0 1
At the Solids Handling Area, delete the Solids Dumpster Lid and delete the Hypalon Splash Guards. Add a canopy / awning structure over the dumpster area by extending the Solids handling Area canopy. The City prefers the open-air solids dumpster while providing the canopy to protect dewatered solids from rain and atmospheric moisture. 16 Modify Outfall Pump
Station 367,632 0 3
Increase the guaranteed pump station capacity to 8.14 MGD. Change the original design of 3 medium sized VFD controlled pumps, to a modified configuration using 2 smaller pumps and 2 larger pumps, all with VFDs. Also add and modify pump station manifold piping and valving as necessary. The City requested the change to ensure adequate future flow capacity and maximize pumping efficiency.
17 Add SAFE
Equalization Tank 504,116 0 1
Add SAFE Settle Tank (water bearing concrete structure) upstream of the SAFE system. The SAFE Settle Tank is added to the Sludge Holding Tank concrete structure. The new SAFE Settle Tank will either overflow to the SAFE System, or be pumped back to the SAFE Diversion Box using Solids Handling Pumps. Various segments of SAFE System diversion piping are upsized as required.
18 Instrumentation and
Control Changes 75,266 0 1
The City prepared and issued a SCADA Master Plan for the WRF program. In January 2019, City staff and the DB team met and agreed on multiple technical items to coordinate between the City's SCADA Master Plan requirements and the DB Agreement scope. The PCO #18 proposal document includes a 6 page table of the multiple hardware and software changes.
19 Reduce Size of the
Product Water Tank (129,681) 0 3
The original DB Agreement included a 500,000 gallon bolted steel glass lined Product Water Tank. The City requested to decrease volume of Tank to 200,000 gallons. This was done to save project costs while also maintaining a suitable Product Water storage capacity on site.
21 Revise Maintenance
Building Layout and
Size
516,583 0 1
The Maintenance Building footprint is expanded from 50'x70' to 60'x90' and a second vehicle sized roll-up door is added. The change order also includes revised site grading and eliminating a step in the building foundation slab, such that the new layout providing a larger, single level, vehicle accessible, shop area. 22 Influent Piping and
Metering 411,766 0 1
The original design included a single 18" influent raw sewage pipeline from Teresa Rd to the new Headworks and an 18" influent flow meter at the Headworks. The City requested to change the design to parallel 16" and 12" HDPE influent pipelines, each pipeline with a separate flow meter at the Headworks. The City requested the change to add redundancy to the influent piping system.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-2
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
23 Outdoor-Rated
Blowers (BNR) (58,210) 0 1
Replace the specified Turbo Blowers with Outdoor Rated Dry Screw Positive Displacement Blowers. The change order includes various revisions to blower controls, valving, and Aeration Air piping. The change was made to reduce project costs while still providing a suitable capacity of Aeration Air for the biological facility process. 24 Remove Bypass of
Coarse Screens (37,137) 0 1 Delete the Coarse Screens bypass line, including both above grade and below grade 16" piping, valving, and fittings at the Headworks. The City requested the change to reduce project costs, as the bypass line was deemed not necessary. 26 SAFE Diversion Box
Additions 58,304 0 1
Add a removable FRP cover over the SAFE Diversion Box. The new cover includes multiple FRP panel sections that are removable by hand and structurally rated to support foot traffic. The change also adds an access ladder and handrail to the top of the Diversion Box. The changes were requested by the City to improve access to the Diversion Box. 28 Size Dewatering as a
Building in the Future 30,983 0 1
Expand the Solids Handling Area concrete foundation slab and canopy to 36'x45'. The change also includes reconfiguring the dewatering belt press, pumps, piping, etc. This change will allow walls to be added around the equipment in the future. The City requested this change in case excessive foul air is emitted in the future and odor control measure become necessary.
30 Match Blowers at
SHT, BNR, and MBR
System
17,426 0 4
There are 3 set of air blowers on the project: 2 each for MBR Air Scour, 3 each for BNR Aeration, and 2 each for Sludge Holding Tank mixing. The 2 each MBR Air Scour Blowers are Aerzen Blowers. The City requested that the 3 each BNR Aeration Blowers and 2 each Sludge Holding Tank Blowers also be supplied by Aerzen. The City requested this change for uniformity of equipment providers.
31 Coarse Screens and
Grit Basins Stairs 52,870 0 1
The original design included various metal ladders to access the Headworks Coarse Screen and Grit Tank platform skids. This change deletes the ladders and adds 2 each 4 ft tall stair sets to the Course Screens and adds 2 each 8 ft tall stair sets to the Grit Tank area. This change also extends the Headworks foundation slab as required to provide foundations and landings for the added stairs.
32 Sulfuric Acid System 315,652 0 3
The City requested to add Sulfuric Acid feed pumps and a storage tank at the Chemical Facility. This change includes increasing the size of the Chemical Facility structure, adding double containment piping to both the RO Feed Tanks and the RO/UV Building, and adding all necessary electrical and controls. The City deemed that Sulfuric Acid addition is necessary for pH control/neutralization.
37 PLC/SCADA Software
Uniformity 201,577 0 3
This PCO includes the cost to change PLC hardware and SCADA software from the standard offerings of the MBR, RO, and Headworks manufacturers to the City requested Allen Bradley and Wonderware products. This PCO applies to only those three equipment items and a separate PCO will be generated if a similar change is required for future procurements. The City requested this uniformity.
38 IPR Product Water
Tank Bypass (26,087) 0 1
Delete the Product Water Tank bypass line, including both above grade and below grade 8" piping, valving, and fittings at the Product Water Area. The City requested the change to reduce project costs, as the bypass line was deemed not necessary.
39 NTP Delay 1,220,532 0 3
This PCO includes extended general conditions costs due to the delay in receiving construction NTP from April 29, 2019 to March 20, 2020. The amount for the period April 29, 2019 to October 23, 2019 was in dispute and a reduction is provided to reflect the results of a negotiation.
40 Headworks Valve
Automation 249,946 0 3
The change adds motor operated valving and controls to the Headworks treatment trains. This allows for automated shifting of flows from one treatment train to the other, as may be needed due to equipment malfunction or other alarm conditions, especially during periods when no operators are on site. The change includes adding 8 each motor operated valves, plus electrical and controls.
41 Perimeter Barbed
Wire Fence 79,935 8 3
City requested that FBV install a 5-strand barbed wire fence around the entire 27-arcre project/property boundary, and along the Temporary Construction Easement (TCE) on the eastern boundary of site. The eastern boundary TCE fence will be relocated to the actual project/property boundary at project completion. 42 UV/AOP System
Modifications (33,481) 0 3
The City requested to delete the Standby UV Reactor from the scope of work to reduce project costs. The change includes FBV added costs for: UV system investigation, technical memoranda, development of alternatives, and resulting design revisions for associated mechanical, electrical, and controls.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-3
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
44 Tank Access
Improvements 210,327 0 3
This Change adds staircases to replace ladders throughout the site for improved access to treatment process basins.

The change adds stairs, catwalks, and handrails at the BNR tanks, adds stair and landings at the SHT, add stairs and a grating platform at the MBR tank, and adds stairs, catwalk, and handrails at the SAFE system. 45 Maint. Building
Ceiling and Auto RollUp Door21,009 0 3 The City requested to add a motor actuator on one of the 14’X14’ roll-up door at the Maintenance Building. This change includes the required added electrical and controls. 46 Curbed Washdown
Areas 76,250 0 3
This change adds containment curbs, sloped slabs, floor drains, and drainage piping to sewer for various wastewater washdown areas. The change adds curbed washdown areas for the MBR cassette maintenance area, the solids/sludge dewatering area, and the Headworks Coarse Screen and Grit Tank area. The City requested the curbed washdown areas to better contain sewage spills.
47 Changes to Building
Furnishings and
Equipment
85,194 0 3
This Change adds office furnishings and appliances for the Operations and Maintenance Buildings, including desks, chairs, tables, shelves, cabinets, control room console, flat-screen monitors, kitchen and laboratory appliances, lockers, and maintenance building storage racks. The items were discussed and requested by the City during design meetings with the DB team Architect.
50 Water/Sewer Supply
Shed Revisions 13,142 0 3
The original design includes a Water and Collections Storage Shed, with two equal sized rooms each with an exterior double-wide pedestrian door. This change deletes the double doors and adds 10 ft wide roll-up doors and single pedestrian doors for each room.
52 Analyzer Relocation
and Enclosures 76,555 0 3
Relocate analyzers at Outfall/IPR Pump Station to indoors at the RO/UV Building, including adding 120' of sample piping between the sample point and building. Relocate analyzers at Dechlorination Facility to indoors at the Water/Collections Storage Shed, including adding 70' of sample piping between the sample point and building, and adding 70' of drainage piping to sewer.
55 Notice of Dispute –
PG&E Temporary
Power
13,163 0 3 This PCO addresses the cost paid to PG&E for temporary power service. It has been a disputed item and negotiation has led to an agreement to split the cost 50/50.
56 Impacts of Water
Quality Changes 282,420 0 3
In September 2019, the City provided updated influent Water Quality data to use as the basis of design. Multiple parameters were significantly different than listed in the DB Agreement. The revised Water Quality data impacted the RO equipment design. The added costs are for H2O Innovations (RO manufacturer) as well as for electrical and control changes by Electricraft.
57 Soil Lateral Earth
Pressure 116,329 0 3
This change adds foundation sub-drains around below grade water bearing concrete structures as recommended by FBV and the Geotechnical Engineer. This change adds Miradrain Panels and 4" PVC drain piping around the perimeter of the BNR basin and Sludge Holding Tanks, to relieve lateral soil pressure on the concrete structures. 58 Permanent Exclusion
Fencing 855,991 0 3
As required by environmental regulatory agencies, a concrete barrier wall for wildlife exclusion is added along the entire Eastern boundary of the site from Teresa Rd to the northern most tip of the site. The concrete barrier wall shall extend 24 inches above grade and 36 inches below grade, and include a nominal 6-inch top lip to serve as a climbing barrier.
59 Increased Escalation
Costs 1,232,677 0 3 This PCO includes escalation costs due to the delay in receiving construction NTP from October 23, 2019 to March 20, 2020. 61 Potential Change
Order (PCO) Design
Impacts
158,172 0 3
This PCO is in response to FBV's claim for engineering redesign costs from changes requested by the City but subsequently reversed due to the cost being too high or otherwise excessive. The PCO also addresses FBV's claim for inefficiencies resulting from "changes in direction throughout the design development process". 62 Conduit Alternative
Design (268,400) 0 3
This change removed the original DB Agreement, Exhibit B, requirement to use PVC coated galvanized rigid steel conduit systems in all exterior and/or process areas on site. FBV proposed to use galvanized rigid steel conduit systems (without PVC coating) in all project locations as a value engineering suggestion. The City accepted the proposal in an attempt to reduce project costs.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-4
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
64 Reduce Performance
Period (35,450) 0 3
The DB Agreement requires 6-months of FBV support during the Performance Test Period. The City requested to delete this requirement as not necessary. Note FBV remains responsible for the 12-month warranty against equipment and/or system malfunctions. The credit amount is taken directly from FBV's original bid proposal document.
65 Davis Bacon Wage
Increases 63,937 0 2 The Contract amount is increased to compensate for the required implementation of CA Wage Determination dated 10/5/2018. FBV's original bid proposal document was based on CA Wage Determination dated 1/5/18 66 Caltrans Intersection
Improvements (21,893) 0 3 Delete scope of work to extend intersection at Teresa Road and South Bay Blvd for the new WRF Access Road. Adjust centerline of the WRF Access Road to be offset from the centerline of South Bay Blvd. 67 BNR System
Modifications 742,405 0 3
This change was requested by City to increase Aeration Air systems as required for full nitrification in the biological process. The costs include upsizing 3 each aeration blowers, stainless steel aeration piping, air meters, air valves, and adding aeration diffusers in the BNR basins. The change also adds Ammonium Sulfate pumps, tank, piping, and increases the size of the Chemical Facility.
68 SAFE Equalization
Settle Tank Drain
Piping
62,215 0 3
This change is requested by the City to provide a new pipeline to drain the SAFE Settle Tank. This pipeline will tie in to the existing dewatering feed pumps and will allow draining the tank back to the SAFE Diversion Box. The work includes adding 80 lf of 6" piping and adding 2 each 6" manual valves. 69 Third Party Testing
and Inspection 100,000 0 3
The responsibility for 3rd party testing and inspection costs were in dispute for several months prior to construction. In April 2020 the City and FBV agreed that the cost of these services would be split 50/50 between the parties, up to a cap of $200K. The agreement included the provision that if additional services are required above $200K, it would be paid by the City.
71 CDFW Restrictions
(Direct Costs &
Inefficiencies)
254,443 0 4
The construction NTP on 3-20-2020 included restrictions from working in the designated spoils disposal area on site.

The restrictions by CDFW were due to an erosional feature and were not resolved until 7-14-2020. As a result of the restrictions, FBV was required to stockpile spoils outside the disposal area, and then haul and grade the material a second time after the restrictions was lifted.
72 Owner Trailer Utility
Hook Ups 19,593 0 4
This change provides utility connections to the Owner/Carollo field office trailer at the WRF. The work includes grading the trailer site, installing a temporary potable water connection, connecting temporary electrical, and providing electrical power through the project duration. The work also includes installing a temporary USPS jobsite mailbox.
73 Main Gates in
Perimeter Fence 27,031 0 4
This change was requested by the City to add 2 pedestrian gates in the WRF perimeter fence, one north of the Operations Building and one at the northern most tip of site. Along with the pedestrian gate north of the Operation Building, also provide a 4' wide set of concrete stairs and a 4 ' wide sidewalk between paved areas. 74 Parking Canopy
Electrical Receptacles 42,346 0 4
This change adds 7 outdoor rated duplex 120VAC electrical outlets on canopy poles around the Vehicle/Equipment Storage Canopy, and the WRF Parking Canopy. The work includes a new 480V circuit from the RO Building Electrical Room, a new 5KVA transformer, and all required underground and exposed power conduits, junction boxes, and outlet receptacles.
75 Security Windows at
Admin Building 11,079 0 4 This change was requested by the City to add a security window in the lobby of the new Operations Building to separate City staff from members of the public in the lobby (similar to City Hall). 76 Additional Sodium
Bisulfite Pump 58,243 0 4
This change was requested by the City to provide a redundant (second) Sodium Bisulfite feed pump at the Chemical Facility, including all associated mechanical work, piping, electrical and controls. This change also provides heated tote blankets for the Sodium Bisulfite storage totes to control temperature during cold weather. An electrical outlet is also added for the heated tote blankets.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-5
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
77 Covid-19 Impacts 125,000 0 6
The DB Agreement stipulates that an "epidemic" or "quarantine restriction" is a compensable Force Majeure event.

FBV originally submitted costs in the amount of $152K for COVID-19 impacts based on added janitorial service, added COVID protective supplies, added Safety Officer time, added costs to send infected workers home for quarantine, and loss of efficiency (1 hr. per worker per day from 3/20/20 to 6/1/20 and 10 min. per worker per day from 6/1/20 to 3/20/21. The City was able to negotiate this cost down to $125K based on a reduction of the assumed inefficiencies and was able to gain FBV agreement that this costs is considered final (i.e., that any future infections would be based on individuals deciding not to be vaccinated rather than Force Majeure). 78 Soil Slip Differing Site
Conditions 280,013 0 4
On May 5, 2020 an unidentified ancient landslide was discovered when mass grading the cut slope above the Operations Building. This is a differing subsurface condition per Section 3.10.2 of the Agreement. The costs represent the additional effort associated with remediating the landslide. 79 Water/Sewer Shed
Revisions (Ref. PCO
50)
10,847 0 4 This item is a continuation of PCO 50. FBV claims that their previous quote did not include all costs associated. 82 PLC/SCADA
Uniformity Complete
(Ref. PCO 37)
108,887 0 4
This PCO includes the cost to change PLC hardware and SCADA software from the standard offerings of the Belt Press and Cloth Disk Filter (SAFE) manufacturers to the City requested Allen Bradley and Wonderware products. This PCO applies to only those equipment items. PCO #37 was similarly for other equipment manufacturers on the project. 84 Alternate Red Legged
Frog Barrier (Ref.

PCO 58)
(468,768) 0 5
Environmental agencies overseeing the project have allowed an alternate wildlife barrier along the Eastern boundary of site. The PCO 58 concrete barrier is only required from Teresa Rd to the facility gate (400'). The remaining 1700' of exclusionary barrier shall be 2 mm thick HDPE attached to 6' chain link fencing, 24" above grade, 36" below grade, with a rigid 4" FRP top lip climbing barrier.
86 Pothole Existing
Water Valve in Teresa
Road
5,189 0 4 The City requested that FBV pothole an existing City water line and shut off on Teresa Road. On the next day, the City requested FBV pothole the 8" branch line service to the WRF property. The work was on T&M. 87 Modify Conduit
Design Scope (Ref.

PCO 62)
272,822 0 5
This change provides PVC coated electrical conduit systems (conduits, boxes, accessories) for all wastewater and product water processing and washdown areas, including outdoor process areas and indoors at the RO/UV Building.

PVC coated Galvanized Rigid Steel (GRS) conduits provide superior corrosion protection. This PCO essentially reverses previous PCO #62.
88 Dead-Front Control
Panels 37,774 0 6
City staff requested that all control panels be dead-front type, wherein no controls are exposed, and that a solid front door is furnished (i.e. keyed or with padlock hasp). FBV has submitted costs in the amount of $37K and the City is in agreement. This change is being implemented on the following system control panels: Kusters (Headworks), Suez (MBR), Aerzen (Blowers), Gierlich-Mitchell (Sanitary Lift Station), Charter Machine (Dewatering), and other minor panels as required.
90 24Vdc Digital Output
Circuits 25,689 0 6
City staff requested that all control digital output circuits be 24vDC to match the 24vDC input signals as required by the DB Agreement. The City requested this to prevent potential signal interference. FBV had planned to use 120vAC digital outputs as the DB Agreement only stipulated the 24vDC signals on inputs (not outputs). This could potentially cause signal interferences and various control system disruptions. This item was disputed by the City as matching input and output signals is a design standard for some design firms (including Carollo). As part of negotiations the City elected to accept the proposed costs which include additional relays and power supply units in various Motor Control Centers (power distribution panels) for the 24Vdc PLC digital circuits being added. 91 Equipment Color
(Tnemec 32GR Light
Gray)
12,500 0 6
City staff requested that a standard color be established for all manufactured equipment, piping, etc., including for all field applied coatings. This is being implemented so that plant staff only need to maintain supply of one coating color, to simplify coating spot repairs during normal maintenance. The selected color is Tnemec 32R Light Gray or equal.

FBV coordinated and made requests to each equipment supplier to change their standard or typical factory color to the Tnemec Light Gray or equal. Some supplier had costs impacts for the equipment color change.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-6
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
92 West Cut-Slope Soil
Slip Reactivation
(2021)
825,300 0 6
On January 28, 2021, the previous cut-slope landslide area reactivated during a major storm. The DB team has performed extensive site investigation, and develop preliminary remediation drawings, and submitted total costs in the amount of $825,300 to address the known conditions. The remediation scope of work includes: removal and stockpiling of approximately 17,000 cy of loose material to the mapped slip plane, benching into competent native subgrade material, installing a subdrain system at each bench with drainage to surface, placement and compaction of $17,000+ cy of engineered fill, surface contours to enhance precipitation run-off, concrete v-ditches to divert run-off from the areas, and the installation of two inclinometer for future monitoring by the City (monitoring not included). 93 NEMA 4X Electrical
Enclosures 40,000 0 6
The City is requiring that all exterior electrical enclosures be NEMA 4X type. FBV submitted costs in the amount of $97K to provide the NEMA 4X enclosures. The City does not agree with the contractual merits of this cost request. The City's contention is that the DB Agreement calls for all exterior and exposed electrical and control enclosures are to be NEMA 4X rated. FBV has argued that their intention, and the approved IFC design documents indicate reasonable alternatives to NEMA 4X. The City and FBV have agreed to the settlement amount noted herein and all applicable panels will be NEMA 4X rated.
94 Security System
Revisions 25,659 0 6
The City requested the following improvements to the facility security system: add one exterior security camera to enhance coverage of the facility grounds (6 other cameras already in design), add door detectors and motion sensors at the RO Bldg, Storage Shed, Electrical Bldg (detectors and sensors at Ops Bldg and Maint Bldg are already in design). FBV submitted costs in the amount of $25K and the City is agreeable to the proposed amount. 96 January 2021 Storm
Event (1-26 thru 1-29) 40,195 7 6
FBV has submitted costs in the amount of $40K for actual expenditures associated with the January 2021 major storm (8"+ of precipitation in 48 hours). The work included: actual labor, equipment, and materials to prepare for the storm, maintain the site during the storm while work was otherwise shutdown, and significant post storm efforts to clean and repair storm drain facilities, repair damaged embankments, and repair other erosional damage. The DB Agreement stipulates that "storms" are compensable Force Majeure events. As part of the settlement, City and FBV agree to amend the DB Agreement in that only non-compensable time extensions will be requested by FBV, and/or granted by the City, for any future weather related delay or impact. 97 Hydroseeding Soil &
Coverage 25,932 0 8 FBV is reimbursed for additional expenditures related to providing hydroseeding and associated SWPPP and temporary irrigation for the soil slip area. 98 Materials Testing &
Inspection (3rd Party) 143,120 0 7
Filanc-Black&Veath (FBV) is reimbursed for costs associated with 3rd party materials testing and special inspections.

Under previous Amendment #3, FBV and the City agreed "... All 3rd party testing and inspection shall be provided by FBV up to $200,000. Anything in excess of $200,000 shall be borne by the City". This change amount is based on actual applicable testing and inspection costs above $200,000. 100
Add Thin-Client
Licenses and Work
Station
17,229 0 7
FBV is reimbursed and compensated for extra work associated with additional Control System elements as follows: (1) Add a thin client workstation in the Maintenance Building, including thin client machine with keyboard and mouse, currently there is just a 42” monitor; and (2) Add two additional Wonderware Supervisory Client License w/ Historian Client and one (1) Dell Wyse 570 Thin Client w/ Windows Server. 101
COVID-19 Related
Material Cost
Escalation
48,744 0 7
FBV is reimbursed for extra costs associated with COVID-19 material cost escalations from EDI (air diffusers), Jensen Precast (vaults and manholes), Miltimore Tile (bathroom tile), Pacific Acoustics (ceiling tiles) and S&M Fire (fire protection systems). FBV is requesting this material cost escalation reimbursement beyond normal yearly inflation statistics based on terms included in Design-Build Agreement between the City and FBV. 102
City Requested
SCADA Screen
Revisions
60,000 0 7
FBV is reimbursed for extra work associated with the following City requested SCADA screen upgrades: City and FBV screen development subcontractor shall meet to agree on upgrades to the control screen features, then screen development subcontractor shall implement City preferences including screen readability, graphics use, color use, layout of equipment, use of navigational features, etc. This change item also includes costs for similar modifications to control screens provided by equipment vendors to match the new standard, and costs for two additional empty SCADA server racks in Operations Building for the City's future use.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-7
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
103
SRF Reimbursement
Request
Requirements
119,319 0 8
FBV is reimbursed for additional expenditures to assist the City with monthly billing information required for SRF funding, i.e. preparing a separate SRF formatted billing along with cost breakdown as per designated SRF categories, and provide all invoices. This task is performed on a monthly basis with FBV's payment application. Also includes costs to prepare an SRF formatted reconciliation breakdown for Pay Applications 1 to 31. 104
CMMS Software
Scope and
Implementation
71,567 0 9 Additional software and implementation included by NEXGEN beyond contract software requirements and to meet Exhibit B as redefined by the City.
105
WRF Monument
Entry Sign
Modifications
23,738 0 7 Entrance sign changes per Submittal 447.2.
106
Add Wash Rack
Grease and Sand
Interceptor
35,287 0 8
FBV is reimbursed for additional expenditures to provide and install a grease and sand interceptor facility at the WRF Wash Rack (vehicle wash bay) as requested by City staff to match normal developer requirements. This includes an additional underground multiple chamber vault and underground piping modifications. 107 Vactor Unloading
Facility Revisions 38,880 0 8
FBV is reimbursed for additional expenditures to provide and install vactor unloading station modifications requested by City staff, including procure and install two (2) 10' section of concrete k-rail with stainless steel brackets, fabrication and installation of stainless steel sluice gate within vactor trench drain, and installation of concrete weir wall in the downstream sewer manhole.
108
Defer SEED PLANT
Milestone and
Commission
750,000 187 8
FBV is reimbursed for additional expenditures related to deferring the planned seed plant activity from early July 2022 to early October 2022 (3 months) including, revising sequencing and coordination expenses, deferred maintenance period expenses through October 4, 2022, commissioning inefficiencies and remobilization expenses, extended overhead and added site expenses through October 4, 2022, increased cost for Builders Risk insurance, and allowed mark-ups and fees.
109
Procurement of
Teletruck for City
Staff
74,562 0 7
FBV is reimbursed for the procurement of a JCB Teletruck from Central California Power for City staff use after the project. Details of the purchase are encompassed in the quote dated 2/7/22 from Central California Power (JBC Dealer) to the City of Morro Bay (Stock Order/Serial No:3405218 – Model 30G4x4 CON). 110 Chem Facility Fencing
Revisions 24,767 0 7
FBV is reimbursed for extra work associated with modifying the chain link fencing enclosure at Chemical Facility as per the City's direction. The changes entails widening 6 each double swing gates that had already been installed at each chemical bay. The work required removal of existing fence posts, fencing, and anchors, patching of concrete, reinstallation of gate posts, and procurement, delivery, and installation of new wider gate panels (12 total). 113 Modify H2O SCADA
Screen for RO System 13,264 0 7
FBV is reimbursed for extra work associated with the following City requested SCADA screen upgrades: City and RO System supplier (H2O Innovations) agreed on upgrades to the screens, and H2O Innovations provided additional RO System SCADA screen re-work so that color use and terminologies match the other project SCADA screens. 114 RO/UV Building
Insulation (Disputed) 32,025 0 7
FBV was directed on 3/3/22 to provide wall and ceiling insulation at Building 16, Storage Shed and Building 50, RO/UV Facility. The City's directive was based upon an ICC Inspection Report dated 10/22/21, from a Certified Deputy Inspector for Code compliance, stating "the R.O. Building has heating, but no insulation at this time, but per Title 24 should be insulated." FBV considered this outside the original GMP scope and submitted original costs of approximately $109K on 5/2/22. On 7/28/22, FBV notified the City that the materials had been purchased and submitted a cost of $32,025 for insulation materials. Because the City and FBV disagree on whether the installation is included in the GMP, the City has agreed to take possession of the insulation materials until the installation cost matter has been resolved. Materials are currently stored on site. 117
Water Main
Connection on Teresa
Road
37,503 0 7
FBV is reimbursed for extra work associated with providing and additional length of 18" water line piping, fittings, and gate valve for the new WRF City Water service connection. FBV had originally assumed their connection would be near the edge of pavement on Teresa Road. The final installation includes additional trenching, piping, fittings, and a valve extended to a connection point in the center of Teresa Road. This change also includes installing temporary piping and appurtenances to obtain construction water for the project site until the final connection is completed.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-8
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
118 Fine Screen LOTO
Capability (Disputed) 26,905 0 7
FBV is reimbursed for work associated with changes to the fine screens control panel and power feed that will facilitate safe and proper Lockout/Tagout procedures as follows: (1) Relocate flow meter transmitter 180 degrees from current position adjacent to fine screens vendor LCP to make room for new enclosures/equipment. (2) Remove fine screens and conveyor starters, circuit breakers, load monitors, and control wiring. (3) Relocate starters, circuit breakers, load monitors, and control wiring to new individual enclosures for each fine screen and conveyor. (4) Install one 480V main fused disconnect switch for local shutdown of existing 480V circuit. (5) Install one 480V fused disconnect on each new starter enclosure for individual load shutdown. Three individual 480V circuits will tap off of existing 480V circuit per NEC tap rule. (6) Install new 120V circuit from electrical building electrical panel, through local plant control panel, and terminate in vendor LCP for new control power. (7) Remove vendor control power transformer and re-wire door switch. (8) Install galvanized anchor based stand and kickers to support new enclosures. (9) Modify vendor LCP shroud to install conduits for extending new 480V power conductors and 120V control wiring. (10). Energize and test.
119 Credit for Chemicals
Supplied by City (141,972) 0 7 The City is credited back and reimbursed for process facility chemicals to be purchased and supplied by the City rather than FBV as was otherwise required by the Design Build Agreement. 120 Seed Sludge
Maintenance Period 133,784 9
The claim includes staff time and site overhead expenses (reasonable for 7 day delay period), plus costs to truck sewage from WWTP to WRC, and other expenses. It was City/Carollo decision to defer the WRC commissioning until 10/10/22, and Carollo/City agreed on October 6 that this change was compensable. 121
Credit for Alternate
Frog Barrier (Alum.

Top Lip)
(12,000) 0 8
The City is reimbursed for the cost reduction to provide install an aluminum anti-climbing lip at the top of the HDPE frog barrier rather than FRP, which will provide a longer lifespan (over 30 years compared to the 10 to 20 year estimate for FRP).
125
Total Chlorine
Analyzer at Dechlor
Facility
46,146 0 9
The cost proposal includes an Electricraft/TSI invoice and FBV field labor/equipment costs to install systems including new sample line. Cost appear reasonable based on cursory review. City staff have disputed this item citing permit requirements for CHL monitoring at Dechlor. FBV design engineer has disagreed. 128 Granite Material
Escalation 63,432 0 9 FBV has received a claim letter from Granite Construction in the amount of $55,966 for material and labor price escalation. The claim includes the Granite claim amount plus normal FBV mark-ups. 132.2 Add’l Paving at WRC
Entrance 53,929 0 9
In a previous amendment FBV provided a $16K credit for deleted paving that Anvil would complete including a 4" thick zone & 1.5" overlay zone. FBV portion of paving was found to be defective so the paving scope (and $16K) is being returned to FBV. Remaining costs are disputed (included in FBV scope). 133 Rancher Gate 2,825 0 9 The work was requested by City/ConfluenceES. Costs appear to be reasonable and are tentatively recommended. 134 UV Sample Line and
UVT Analyzer 37,345 0 9 The added work was required by State DDW, and assumed to have been directed by the City. Costs appear to be reasonable and are tentatively recommended. 122 Delay #2 (Beyond
Seed Sludge Maint.

Period)
575,674
0 10 Initial seed sludge biology was significantly weakened due in part to a lack of sufficient food and development of unfavorable water quality conditions. On October 11, 2023, there was a slug of poor-quality raw wastewater from the City’s existing plant that overwhelmed and killed the biology at the WRC requiring a re-seeding of the plan. 123 Delay #3 (DDW Issues
– UVAOP Challenge
Test) 0 10
The Department of Drinking Water (DDW) required additional testing in two phases for the UV system of the WRC.

This testing was outside of the initial permit requirements and required extensive testing, reporting, meetings, and analysis from FBV. The claim for this extended period of work is the delay caused to FBV to remain on site while still performing the additional UV/AOP challenge testing per DDW requirements. 131 SWPPP and Storm
Clean up Costs 0 10
The 2022-2023 rainy season proved to be an above average rainfall event for the City of Morro Bay. This PCO covers the additional compensation for the additional storm measures, SWPPP replacement and post storm cleanup related to the unforeseen rain impacts.
138 V-Ditch Failures,
Repairs, Redesign 0 10 On January 9, 2023, the City experienced a significant rainfall and runoff event that caused significant erosion and structural damage to the newly constructed V-ditch drainage system at the WRC. FBV made design improvements to

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024 | E-9
No. Item Approved
Amount ($)
Cal
Days
Amendment
No. Description
prevent any back channeling erosion of the V-ditch foundation and to improve the soil and structure interface of the drainage feature. FBV re-hydroseeded the hillside as well as installed a temporary irrigation system to ensure that the hydroseed established. It should be noted that the V-ditches have currently not had any issue during the rainy season this year.
139 SRF Billing
Administration Effort 0 10 The SRF construction loan required a complete change to FBV’s monthly billing for the project. This required a significant effort from FBV’s project administration staff to collate all the task codes to the respective SRF line item.

TOTAL $11,765,488 202

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY FINAL | SEPTEMBER 2024
Appendix F

ANVIL AMENDMENT DETAILS

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Gary Silveira
See following page(s) for Descriptions and Reasons for Change 1 REG 40 Days
2 CR1 0 Days
3 CR1 0 Days
4 CR1 0 Days
7 DSC 0 Days
12 REG 0 Days
40 Days
40 Days

ACCEPTED APPROVED ACCEPTED
Anvil Builders Inc. Carollo Engineers Inc City of Morro Bay Contractor (Company Name) Construction Manager Owner
(Authorized Signature) (Date) Authorized Signature (Date) Authorized Signature (Date) Gary Silveira - Project Manager Paul Amico - Project Manager Scott Collins - City Manager (Print Name and Title) (Print Name and Title) (Print Name and Title)

By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order.

When signed by the Owner and Construction Manager and received by Contractor, this document becomes effective IMMEDIATELY, and the Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 2/22/2022
Extension Days s (Calendar)
NEW FINAL COMPLETION 4/3/2022
Previous Change Orders
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ -
$ 31,493,675.00
$ 674,485.00
$ 32,168,160.00
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00
Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the above-mentioned project.

October 12, 2021
Reason
For Change DESCRIPTION

NET CHANGE ORDER ADJUSTMENT
$ 443,000.00
$ 23,498.00
$ 13,477.00
$ 6,436.00
$ 131,096.00
$ 56,978.00
$ 674,485.00
Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:

Add 2 Each 10-in Valves and 10-in Tee
PS-B MAS-Relay Pump Protection Module per DC-01
PS-A & PS-B Conduit Changes per DC-02
Extend Waterline Relocation from Sta 71+00 to Sta 77+43 CA-SLO-2232H Work Interruptions from Stat 147 to Sta 150 Contract Time
(Calendar Days) PCO #
SHPO Delay (35 days no dig moratorium)
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 001
Amount

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: October 12, 2021
1 SHPO Delay
Project NTP was issued on 12-14-20. Based on a notification from SHPO, a stop work order was issued by the City on 2-16- 21 restricting Anvil from conducting any ground-disturbing activities. Upon resolution of SHPO concerns, Anvil was allowed to begin most project ground-disturbing activities on 3-15-21 (35 calendar days later). This issue arose from the Section 3 Consultation between EPA and SHPO required as part of the City’s WIFIA loan. The process included submittal of a Monitoring Plan to EPA that SHPO needed to approve before any ground‐disturbing activities could begin. The Monitoring Plan was submitted to EPA on 10-3-2020, and EPA sent the document to SHPO in early November 2020. SHPO has a statutory requirement to provide a response within 30 days. EPA received SHPO comments in February 2021, past the 30 day limit. Under the regulations, EPA and the City could have moved forward since the statutory 30 day requirement was not met. However, EPA was not willing to do so. Consequently, the City was not approved by SHPO to move forward with any ground disturbing activities until 3-15-2021. Anvil subsequently filed a delay claim and time impact analysis resulting in this change order.

REG
2 Add 2 Each 10-in
Valves and 10-in
Tee
Anvil exposed the existing Waterline near Sta 121+30 as required to relocate the line per Contract. The existing piping configuration was discovered to be different from what was shown on the as-built drawings. After a review, City staff concluded that a new 10" Valve and 10" Tee fitting were needed to replace the existing piping configuration. This change will increase the reliability and operability of the water distribution system.

CR1
3 PS-B MAS Pump
Relay Module per
DC-01
The electrical Design Engineer issued Clarification No. 1 on 3-12-2021, indicating that the Pump Station B Pumps have been provided with a different pump protection system than shown in the design. The conduit and wire changes are required to incorporate the pump protection module. As a result conduit/wiring revisions were necessary at PS-B on Drawings 20-E-02, 03, 04, 05, 08 & and 20-I-01.

CR1
4 PS-A & PS-B
Conduit Changes
per DC-02
The electrical Design Engineer issued Clarification No. 2 on 4-19-2021, indicating that isolation of AC and DC signals is desired to prevent potential signal interferences. The following revisions will isolate the AC signals from the DC signals. As a result conduit/wiring revisions were necessary at PS-A on Drawings 10-E-3, 10-E-6, and 10-E-7, and at PS-B on Drawings 20-E-4, 20-E-5, 20-E-8, and 20-E-9.

CR1
7 Extend 12" RO
Waterline
Relocation
The original Contract includes relocating an existing 12" Waterline on Quintana between Sta 77+43 and Sta 82+05, due to the waterline being in conflict with the main Joint trench. Anvil’s trenching crew on Quintana encountered the waterline entering the main Joint Trench alignment at Sta 73+50. After additional potholing, the City decided to extend the water line relocation back to Sta 71+00 (adding approximately 643 LF of waterline relocation).

DSC
12 CA-SLO-2232H
Work
Interruptions
Trenching operations on Quintana Rd near South Bay Blvd (Sta 147 to Sta 150) was significantly impacted by two known archaeological sites (CA-SLO-2232/H and CA-SLO-1183), one of which contains recently discovered human burials. This area needed to have excavations treated differently in that direct loading of trucks was not allowed without first confirming the soil was negative for resources or remains. These instruction were provided and enforced by State mandated archeological and tribal monitors assigned to the project.

REG
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 001

REASON FOR CHANGE CODES
CR1: City requested (required)
CR2: City requested (Optional)
E&O: Design Error or Omission
ABI: Anvil request / claim item
DSC: Differing Site Conditions
REG: Regulatory Agency Item

PCO # DESCRIPTION OF CHANGE Reason
For Change TILE

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Matt Scholfield
See following page(s) for Descriptions and Reasons for Change 9 ABI 0 Days
22 DCS 0 Days
23 DSC 0 Days
27 ABI 0 Days
28 REG 0 Days
34 DSC 0 Days
0 Days
0 Days

ACCEPTED APPROVED
Anvil Builders Inc. Carollo Engineers Inc / MEG Inc.

Contractor (Company Name) Construction Manager
(Authorized Signature) (Date) Authorized Signature (Date) Matt Scholfield Steve Mimiaga - Construction Mngr.
(Print Name and Title) (Print Name and Title)
Change Order to Date $ 1,261,987.00

Contract Time
(Calendar Days) PCO #
SoCal Gas Delays and Disruptions
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00
Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the above-mentioned project.

NET CHANGE ORDER ADJUSTMENT
$ 84,276.00
$ 587,502.00
$ 32,755,662.00
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 002
Amount
6-Inch Waterline Relocation at Pump Station A
Miscellaneous Unforeseen Utility Work
MTBM Delays and Disruptions - Claim Resolution
SLO County APCD Generator Mandates – Procurements
Bike Path Jack & Bore Concrete Debris Obstruction
January 11, 2022
Reason
For Change DESCRIPTION
$ 43,017.00
$ 20,147.00
$ 27,198.00
$ 111,161.00
$ 301,703.00
Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:

By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order.

When signed by the Construction Manager, and upon execution of source document Amendment by City Council, this document becomes effective IMMEDIATELY, and Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 4/3/2022
Extension Days (Calendar)
NEW FINAL COMPLETION 4/3/2022
Previous Change Orders
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ 674,485.00
$ 32,168,160.00
$ 587,502.00

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: January 11, 2022
9 SoCal Gas
Delays and
Disruptions
The project's joint trench, containing multiple pipelines, parallels an existing 16" diameter SoCal Gas high pressure gas main for nearly the entire alignment along Quintana Road. SoCal Gas requires a representative to be on site during all digging activities as well as other work activities occurring within 10 ft of the high pressure gas main (i.e. that could potentially damage or otherwise impact the main). There have been several occurrences where the SoCal Gas representative did not show up for scheduled assignments, which prevented Anvil from performing contract work and/or progressing the joint trench. In these cases Anvil's entire crew was forced to literally stand-by and wait for the SoCal Gas representative to arrive. The City/Carollo have spent considerable time and effort to coordinate between Anvil and SoCal Gas to improve communication and cooperation, but nevertheless, Anvil was negatively impacted on the following days: 5/3/21 for 2 hours, 5/17/21 for 2.5 hours, 5/18/21 for 3 hours, 6/3/21 for 2 hours, 6/17/21 for 2.5 hours for 2 different crews, 8/10/21 for 4 hours.

ABI
22 6" Waterline
Relocation at
Pump Sta. A
New Pump Station A is located on City property at the City’s existing corporation yard on Atascadero Road. As part of the site preparation and demolition work at Pump Station A, an unknown 6” Waterline was discovered and needed to be relocated to construct the pump station. The extra work included potholing and locating the unknown utility, trenching and installation of new by-pass piping, pressure testing and disinfection of the relocated waterline, backfill and other site work.

DSC
23 Miscellaneous
Unforeseen
Utility Work
During the project work to date, the below noted miscellaneous unforeseen minor utility work was required for contract work to proceed. The following items are acknowledged as unforeseen conditions and as such warrant reimbursement of verified extra costs: (1) potholing unmarked utility at Pump Station A on 5/3/21, (2) emergency work to recover trench caving due to adjacent utilities from Sta 71+75 to Sta 71+85 on 6/13/21, (3) excavating around unmarked 4" (asbestos) Waterline at Sta 146+00 on 7/8/21, (4) Anvil crew standby time during potholing of incorrectly marked telephone conduit on 8/5/21, (5) unknown and unmarked Sanitary Sewer crossing at Sta 88+50, line was struck and repaired on 8/6/21, (6) potholing unknown and unmarked Sanitary Sewer lines on 8/9/21, and (7) unknown and unmarked Sanitary Sewer crossing at Sta 90+50, line was struck and repaired on 8/23/21.

DSC
27 MTBM Delays
and Disruptions
Claim
Resolution
Anvil and their Microtunnel Boring Machine (MTBM) subcontractor, Vadnais Trenchless Services (Vadnais) encountered several unknown utilities, potential obstructions, and differing soil conditions along the MTBM alignment below the Morro Bay Roundabout, including complete equipment stoppages at approximately Sta 98+50 and Sta 98+65. Anvil's subcontractor (Vadnais) claimed delay and equipment standby time for these equipment stoppages that lasted over 8 weeks. During the 8 weeks of work stoppage, Anvil excavated and shored two separate 23 ft deep emergency recovery shafts to clear the apparent obstructions from in front of the MTBM cutting head. However, no actual obstruction was found, located, or confirmed during the recovery shaft excavations. Subsequently, the MTBM casing pipe installation was completed without further incidents. Anvil and Vadnais provided notifications of potential costs under PCO #14 and PCO #27 in excessive $500,000 for the Vadnais equipment downtime, Vadnais loss of crew efficiencies, and for the cost of the two recovery shafts by Anvil. The City initially denied the claim for stoppages at Sta 98+50 and Sta 98+65, as no obstruction was found. The City does not dispute the other costs related to unknown utilities noted herein. After several meetings between the City, Carollo, Anvil, and Vadnais, a claim settlement was reached in the amount of $111,161, wherein all other costs and impacts associated with both PCO #14 and PCO #27, are waived or otherwise agreed upon for the final lump sum amount noted herein.

ABI
28 SLO County
APCD
Emergency
Generator
Mandates –
Procurements
On 9/24/21, the City received a Notice of Incomplete Applications from SLO County Air Pollution Control District (APCD), pursuant to the Pump Station A emergency generator and the Pump Station B emergency generator. It is City staff understanding that both generators were in compliance with APCD requirements at the time of Bid Opening in 2020. However, in late 2020, APCD rules were revised causing the two generators to now need retrofitted emissions reduction components to attain APCD compliance and approval. APCD is now also requiring Health Risk Assessments (HRAs) for both pump station sites which Carollo is undertaking via specialty subconsultant. This change order encompasses the below noted initial known costs for emissions reduction components, however it is acknowledged that there will be a subsequent change order for additional structural, mechanical, electrical, and sitework revisions necessary to implement the changes. This change order includes costs for the following assumed necessary procurement items: At Pump Station A add a Diesel Particulate Filter (DPF); and at Pump Station B add the DPF, plus Selective Catalytic Reduction (SCR) and Diesel Oxidation Catalysts (DOC) technologies.

REG
34 Bike Path
Jack & Bore
Concrete Debris
Obstruction
On 11/11/21, about 3 pm, Anvil and their jack & bore subcontractor (Pacific Boring) encountered a concrete obstruction in the path of the 60" casing pipe. Anvil and Pacific Boring were immediately instructed to suspend the jack & bore mechanical operation and hand excavate to investigate and confirm the size and extent of the concrete obstruction. For the following 6 consecutive days (including Saturday 11/13/21 and Sunday 11/14/21), Anvil and Pacific Boring worked 8 to 10 hour shifts to hand excavate and jack hammer out the concrete obstruction, while simultaneously advancing the casing pipe about 20 ft using the hydraulic jacking equipment. On 11/18/21, the obstruction was cleared and Pacific Boring resumed normal jack & bore operations, finishing the casing installation the same day. Note that the obstruction appears to be an old Caltrans culvert structure from the original CA Route 1 highway. Also note that the jack & bore work through jurisdictional wetlands needed to proceed without delay, working through the weekend, in order to meet a California Department of Fish and Wildlife (CDFW) mandate for the tunnel to be completed by 11/19/21.

DSC
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 002

REASON FOR CHANGE CODES
CR1: City requested (required)
CR2: City requested (Optional)
E&O: Design Error or Omission
ABI: Anvil request / claim item
DSC: Differing Site Conditions
REG: Regulatory Agency Item

PCO DESCRIPTION OF CHANGE
Reason
For
Change
TILE

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Chris Fassari
See following page(s) for Descriptions and Reasons for Change 8 CR2 0 Days

9.2 ABI 0 Days

13.1 REG 153 Days
16 DSC 0 Days
20 CR2 0 Days
32 ABI 0 Days
39 DSC 0 Days
153 Days
153 Days

ACCEPTED APPROVED
Anvil Builders Inc. Carollo Engineers Inc / MEG Inc.

Contractor (Company Name) Construction Manager
(Authorized Signature) (Date) Authorized Signature (Date) Chris Fassari Steve Mimiaga - Construction Mngr.
(Print Name and Title) (Print Name and Title)
Reroute Joint Trench below State Waterline at 121+75 $ 144,616.00 CA-SLO-16 Work Revisions (Time Extension) $ -
Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:

By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order.

When signed by the Construction Manager, and upon execution of source document Amendment by City Council, this document becomes effective IMMEDIATELY, and Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 4/3/2022
Extension Days (Calendar)
NEW FINAL COMPLETION 9/3/2022
Previous Change Orders
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ 1,261,987.00
$ 32,755,662.00
$ 241,317.00
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 003
Amount
SoCal Gas Delays and Disruptions (Part 2)
Pothole Utilities for WRF Pilot Injection Well Layout
Broken Waterline at Quintana Road and Kings Avenue
Cultural Monitor Extra Work at MTBM Launch Pit
March 22, 2022
Reason
For Change DESCRIPTION
$ 9,196.00
$ 20,750.00
$ 15,291.00
$ 6,198.00
Change Order to Date $ 1,503,304.00

Contract Time
(Calendar Days) PCO #
Additional Project Signage Costs
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00
Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the above-mentioned project.

NET CHANGE ORDER ADJUSTMENT
$ 45,266.00
$ 241,317.00
$ 32,996,979.00

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: March 22, 2022
8 Additional
Project Signage
Costs
The original contract included a $5,000 allowance for additional signage not shown on the plans or required by the specifications. Anvil has exhausted this original budget responding to signage requests from City staff to date. This change order item provides reimbursement of Anvil costs to date to provide additional signage, including custom signs, above the $5,000 allowance as directed by the City. These additional signs are deemed necessary for public safety, public information, enhanced traffic flow, and/or to enhance access to businesses open during construction.

CR2

9.2 SoCal Gas
Delays and
Disruptions
(Part 2)
The project's joint trench, containing multiple pipelines, parallels an existing 16" diameter SoCal Gas high pressure gas main for nearly the entire alignment along Quintana Road. SoCal Gas requires a representative to be on site during all digging activities as well as other work activities occurring within 10 ft of the high pressure gas main (i.e. that could potentially damage or otherwise impact the main). There have been several occurrences where the SoCal Gas representative did not show up for scheduled assignments, which prevented Anvil from performing contract work and/or progressing the joint trench. In these cases Anvil's entire crew was forced to literally stand-by and wait for the SoCal Gas representative to arrive. The City/Carollo have spent considerable time and effort to coordinate between Anvil and SoCal Gas to improve communication and cooperation, but nevertheless, Anvil was negatively impacted on the following days: 8/25/21 for 2 hours, 8/26/21 for 3.5 hours, 9/16/21 for 1.5 hours, 10/7/21 for 2 hours. This is the second change order to reimburse Anvil for SoCal Gas monitor disruptions, the previous change order amount was $43,017.00.

ABI

13.1 CA-SLO-16
Work Revisions
(Time
Extension)
Anvil is provided a 153 day non-compensable time extension due to impacts caused by SHPO mandated work restriction at the Morro Creek Utility Bridge, based on the following analysis and terms: Per Anvil’s approved Baseline Schedule, the Utility Bridge was to start Feb 1, 2021 with 23 days of float. Per Anvil’s Feb 2022 Update, the Utility Bridge was actually started Feb 24, 2022, now with 153 days of negative float (delay). It is acknowledged that SHPO restrictions prevented Anvil from starting any work at the Utility Bridge prior to Feb 24, 2022. It is acknowledged that the on-going (thru March 2022) archeologist supervised work on site, required by SHPO, continues to impact Anvil’s schedule. Direct cost impacts resulting from these circumstances are being tracked separately from this analysis. Anvil is provided the 153 calendar day non-compensable time extension at this time based on the applicable Critical Path Schedule Update negative float duration discuss herein above. Anvil has submitted a Time Impact Analysis requesting 201 calendar days. Anvil and the City agree to allow Anvil to seek additional time extensions if warranted in the future when the full extent of this on-going impact is known. The current Contract completion date is 4/3/2022 (through Amendment No. 3). With 153 calendar days added, the new Contract Completion Date will be Sept 3, 2022. The City currently views the SHPO restrictions at Utility Bridge as concurrent with other Anvil caused delays (i.e. the Pump Station A Electrical Building currently has 164 days of negative float). As such the City considers this delay as noncompensable at this time (no extended overhead merit). Similar to above, Anvil and the City agree to allow Anvil the opportunity to present substantiating documentation of extended overhead merit in the future when the full extent of this on-going impact is known.

REG
16 Reroute Joint
Trench below
State Waterline
at 121+75
Prior to starting the Joint Trench excavation near Sta 121+75, an existing 10" State Waterline was marked incorrectly in the field by the pipeline operator. Anvil excavated (potholed) the pipeline at the location marked in the field to verify its position. The State Waterline was not found at the marked location. The pipeline operator re-marked the line again in the field, this time where shown on the Contract Drawings at Sta 121+75. A pipeline was located at this location and the pipeline operators confirmed the line as the correct pipe in the field. Anvil then began excavating the 8-ft wide by 10-ft deep Joint Trench through the area. While excavating the Joint Trench, Anvil discovered another existing pipeline running adjacent to and below the pipe previously identified as the State Waterline shown on the plans. The pipeline operator subsequently confirmed that the adjacent lower pipe was actually the State Waterline to be protected in place. This caused Anvil to have to move back, re-excavate, and deepen the Joint Trench excavation from 10 ft to approximately 14 ft deep. This would allow the Joint Trench pipelines to pass below the lower pipe with required DDW clearances. In doing so, Anvil was also required to provide additional trench shoring measures and trench dewatering for the deeper trench; then Anvil encountered additional difficulties and inefficiencies installing the Joint Trench pipelines in the deeper trench, with additional groundwater, with increased soil instabilities, and additional shoring to work around, etc. Anvil was subsequently required to also provide additional Controlled Low Strength Material (CLSM) backfill and then additional select fill compaction as well. Anvil’s pipe installation operation was significantly impacted over the period from 8/4/21 to 8/16/21.

DSC
20 Pothole Utilities
for WRF Pilot
Injection Well
Layout
Anvil provided additional potholing and utility locating at the request of the City, near Anvil’s stockpile and staging area on Vistra property (along Bike Path). This additional potholing and utility locating was required to determine the best location and layout for the future Pilot Injection Well to be installed under a separate City contract, as part of the Recycled Water facilities associated with the Morro Bay "Our Water" program. At the City’s direction, Anvil contacted Underground Service Alert (USA), had the area underground utilities marked by utility owners, potholed several critical utilities, backfilled and restored the area, and provided resulting survey data to the City.

CR2
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 003

PCO DESCRIPTION OF CHANGE
Reason
For
Change
TILE

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: March 22, 2022
32 Broken
Waterline at
Quintana Road
and Kings
Avenue
On Saturday, 10/29/21, City of Morro Bay staff observed a waterline leak where the waterline crosses the Anvil trench in the intersection of Quintana Road at Kings Avenue. The City subsequently confirmed that a 6” Water line, made of Transite (AC) pipe, had deflected and come apart just beyond Anvil’s trench line. Anvil had been working in this intersection the previous week and there was strong indication that Anvil activities caused the line brake. Anvil indicated their position that they have no reason to assume they caused the water line break. The City has no reason to believe that the rupture would have occurred if not for Anvil trenching across and backfilling around the existing pipe. After additional discussion and negotiation it was agreed that the City would pay a portion of the Anvil crew expenses for repairs. The settlement amount is less than half of Anvil actual costs. Note that City staff also incurred costs for various activities including temporary repairs made when the leak was first discovered.

ABI
39 Cultural
Monitor Extra
Work at MTBM
Launch Pit
Trenching operations just north of the Microtunnel launch pit on Quintana Road near the Morro Bay Blvd Roundabout (Sta 94 to Sta 95) was significantly impacted by a known archaeological site. Anvil work was significantly impacted by instructions provided and enforced by State mandated archeological and tribal monitors assigned to the project. During trenching in the subject area, all excavated spoils were treated differently in that direct loading of trucks was not allowed without first confirming the soil was negative for resources or remains, by hand investigations performed by the archeological and tribal monitors. Anvil’s trenching and shoring operation was significantly impacted over the period from 10/21/21 to 11/8/21.

DSC

REASON FOR CHANGE CODES
CR1: City requested (required)
CR2: City requested (Optional)
E&O: Design Error or Omission
ABI: Anvil request / claim item
DSC: Differing Site Conditions
REG: Regulatory Agency Item

City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 003

PCO TILE DESCRIPTION OF CHANGE
Reason
For
Change

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Chris Fassari
See following page(s) for Descriptions and Reasons for Change 11 DSC 0 Days
19 CR2 0 Days

28.1 REG 0 Days
33 CR2 0 Days
41 DSC 0 Days
42 DSC 0 Days
49 DSC 0 Days
0 Days
0 Days

ACCEPTED APPROVED
Anvil Builders Inc. Carollo Engineers Inc / MEG Inc.

Contractor (Company Name) Construction Manager
(Authorized Signature) (Date) Authorized Signature (Date) Chris Fassari Steve Mimiaga - Construction Mngr.
(Print Name and Title) (Print Name and Title)
By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order (EXCEPT AS NOTED IN ITEM 13.1 HEREIN
WHEREIN DELAY IMPACTS ARE ON-GOING).

When signed by the Construction Manager, and upon execution of source document Amendment by City Council, this document becomes effective IMMEDIATELY, and Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 9/3/2022
Extension Days (Calendar)
NEW FINAL COMPLETION 9/3/2022
Previous Change Orders
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ 1,503,304.00
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 004
Amount
Remove City's Existing Desalination Iron Media Tank
Unknown Cementitious Subgrade at South Bay Blvd
Unknown Conduits at South Bay Bvd and Quintana Road
Vistra/PG&E Easements Unknown Extra Work Items
June 14, 2022
Reason
For Change DESCRIPTION
$ 103,893.00
$ 54,189.00
Paving Repairs Near Todd's Garage $ 6,895.00
Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:
$ 26,600.00
$ 7,788.00
Change Order to Date $ 1,449,239.00

Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the above-mentioned project. $ 32,942,914.00
$ 32,996,979.00
$ (54,065.00)
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00

NET CHANGE ORDER ADJUSTMENT
$ 48,273.00
$ (54,065.00)
SLO County APCD Generator Mandates (Rescind) $ (301,703.00) Contract Time
(Calendar Days) PCO #
Reroute IPR and Water Line Below Sta. 144 Culvert

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: June 14, 2022
11 Reroute IPR and
Water Line Below
Sta. 144 Culvert
The original design called for the IPR and Waterline relocation in this area to be placed above the existing stormwater culvert. After the trench was excavated, it was discovered that there was insufficient soil cover over the existing culvert to allow the IPR and Waterline to be installed over the top per Drawings. Consequently, these pipelines needed to be routed under the culvert, which increased the depth of excavations from 2 ft to 8 ft at Sta 143+99, thereby also increasing requirements for trench shoring, excavated spoils, backfill and compaction, , and potential groundwater management, between Sta 142+95 and Sta 144+95. Reference RFI #52.

DSC
19 Remove City's
Existing
Desalination Iron
Media Tank
The City requested a quote from Anvil to remove and dispose of the existing Desalination Iron Media Tank (horizontal pressure filter) located east of Pump Station A, along Atascadero Rd. Anvils quote includes removal of the tank, tank supports, and air vacs atop the tank. Bid includes the removal of a max. of 20 CY of concrete inside the tank. Bid is based on the steel tank weighing a maximum of 55,000 lbs (once concrete is removed). Anvil will remove and replace the existing chain link with barbed wire fence; 50 LF max. Removal of adjacent piping and appurtenances (air-vacs, anchor bolts, etc.) is not included in this work.

CR2

28.1 SLO County APCD
Generator
Mandates
(Rescind)
On 9/24/21, the City received a Notice of Incomplete Applications from SLO County Air Pollution Control District (APCD), pursuant to the Pump Station A emergency generator and the Pump Station B emergency generator. The City subsequently completed and submitted Health Risk Assessments (HRAs) at each Pump Station, as was required by APCD as part of their Notice of Incomplete Applications. After submission of the HRAs, APCD reversed its initial determination and accepted both generators without modifications. As such, the City and Anvil agree to rescind the associated previous change order for added (assumed) emissions control devices included in Amendment No. 2. Reference PCO #28.

REG
33 Paving Repairs
Near Todd's
Garage
The City requested that Anvil repair existing failing pavement in the City right-of-way adjacent to Anvil's Joint Trench excavation. It was determined that the damaged asphalt was not the fault of Anvil operations but rather the on-going inclement weather and existing deteriorated pavement conditions. This occurred near Todd’s Garage at 972 Quintana Rd, Morro Bay. The area was re-paved 12/10/2021.

CR2
41 Unknown
Cementitious
Subgrade at South
Bay Blvd
During Joint Trench and IPR excavation work on South Bay Blvd, the Contractor encountered cement-treated aggregate base-rock material below the existing pavement. This cementitious base material required additional effort and expenses in mechanical removal work and subsequent offsite disposal (material was not re-useable as backfill). This extra work warrants reimbursement of verified extra costs including documented labor, equipment, and other expenses on 2/1/2022, 2/3/2022, 2/4/2022, 2/5/2022, 2/10/2022, 2/11/2022, and 2/14/2022.

DSC
42 Unknown
Conduits at South
Bay Bvd and
Quintana
During Joint Trench excavation work near the South Bay Blvd and Quintana Road intersection, the Contractor encountered and damaged unknown existing conduits which required additional effort and expenses to hand-dig around and repair. This extra work warrants reimbursement of verified extra costs including documented labor, equipment, and other expenses on 1/25/2022. The conduits were not shown on the plans or claimed by any known utility owner.

DSC
49 Vistra/PG&E
Easements
Unknown Extra
Work Items
During the project work within PG&E/Vistra easements to date, the below noted miscellaneous unforeseen minor utility work was required for contract work to proceed. The following items are acknowledged as unforeseen conditions and as such warrant reimbursement of verified extra costs: (1) Excavate "test percolation ponds" at City request along Bike Path on 2/16/2022, (2) Unknown utilities encountered from Sta 53+00 to Sta 54+00 which impacted production on 2/16/2022, (3) Installation of exclusionary fencing along LS-2 as required by SHPO on 2/23/2022, (4) Potholing LS-2 alignment for unknown utilities not shown on plans but marked by utility companies on 3/7/2022, (5) Unforeseen concrete slab not shown on plans along LS-2 alignment impacting production on 3/22/2022, (6) Excavate around utilities not marked on plans along LS-2 alignment, 8 utilities total, between 3/17/2022 and 3/31/2022, (7) Sawcut, remove, and stockpile unknown concrete slab at Sta 21+00 of LS-2 alignment on 3/30/2022, and (8) Excavate and install 4" pipe and fittings to re-route existing Vistra waterline above LS-2 force main pipe on 4/6/2022.

DSC
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 004

PCO DESCRIPTION OF CHANGE
Reason
For
Change
TILE

REASON FOR CHANGE CODES
CR1: City requested (required)
CR2: City requested (Optional)
E&O: Design Error or Omission
ABI: Anvil request / claim item
DSC: Differing Site Conditions
REG: Regulatory Agency Item

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Chris Fassari
See following page(s) for Descriptions and Reasons for Change 13 REG 60 Days
17 CR2 0 Days
25 DSC 0 Days
50 DSC 0 Days
52 CR1 0 Days
61 DSC 0 Days
60 Days
60 Days

ACCEPTED APPROVED
Anvil Builders Inc. Carollo Engineers Inc / MEG Inc.

Contractor (Company Name) Construction Manager
(Authorized Signature) (Date) Authorized Signature (Date) Chris Fassari Steve Mimiaga - Construction Mngr.
(Print Name and Title) (Print Name and Title)
Construction Cost Escalation Increases from Vendors $ 292,000.00 Contract Time
(Calendar Days) PCO #
Utility Bridge Abutment Changes
$ 134,403.00
Change Order to Date $ 2,702,906.00

Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the above-mentioned project. $ 34,196,581.00
$ 32,942,914.00
$ 1,253,667.00
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00
NET CHANGE ORDER ADJUSTMENT $ 1,253,667.00
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 005
Amount
Add Tracer Wire, Ground Rods, Terminal Stations
High Level Switch Alarm Termination at Utility Bridge
City Sales Tax Increase During Project
August 23, 2022
Reason
For Change DESCRIPTION
$ 500,000.00
$ 108,521.00
DSC at South Bay & Teresa (Utilities & Bedrock) $ 210,000.00 Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:
$ 8,743.00
By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order (EXCEPT AS NOTED IN ITEM 13.1 HEREIN
WHEREIN DELAY IMPACTS ARE ON-GOING).

When signed by the Construction Manager, and upon execution of source document Amendment by City Council, this document becomes effective IMMEDIATELY, and Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 9/3/2022
Extension Days (Calendar)
NEW FINAL COMPLETION 11/2/2022
Previous Change Orders
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ 1,449,239.00
g
8/23/2022

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: August 23, 2022
13 Utility Bridge
Abutment Changes
Anvil is reimbursed and compensated for extra work associated with SHPO mandated work revisions including: (1) revising trenching and finish grade requirements between Atascadero Road and the North Bridge Abutment, (2) revised slide rail shoring at both Bridge Abutment excavations, (3) mandated dewatering systems regardless of groundwater level/status, (3) and Archeologist supervised excavations with severely impacted excavation operations throughout the entire CA-SLO-16 zone. Anvil is provided a 60 day non-compensable time extension through 11/2/2022. Anvil and the City agree to allow Anvil to present substantiating documentation of associated extended overhead impacts for incorporation in a future Amendment.

REG
17 Add Tracer Wire,
Ground Rods,
Terminal Stations
Anvil is reimbursed and compensated for extra work associated with adding Tracer Wire on all project pipelines that are not located in a Joint Trench. This includes: 7 segments of IPR line, 2 segments of BR line, and 4 segments of Relocated Waterlines.

Anvil shall provide Tracer Wire starting and/or ending terminals (Tracer Wire Test Stations per Std Det 2060 and Ground Rods per Std Det 16410). Anvil shall also provide Tracer Wire Test Stations at approximately 500’ intervals throughout all associated tracer wire systems.

CR2
25 Construction Cost
Escalation Increases
from Vendors
Anvil is reimbursed and compensated for construction cost escalation increases from specific vendors resulting from the unprecedented COVID-19 caused inflation. The reimbursement is based on several specific vendors including: Aegion for special HDPE fusing, P&F Distributors for piping materials, Big Wakoo for fencing, Pacific Steel Group for rebar, R&B for construction materials, David Crye for trucking, JB Dewar for diesel fuel, and SC Fuels for diesel fuel. The compensation amount represents a 50/50 settlement split with Anvil.

DSC
50 DSC at South Bay &
Teresa (Utilities &
Bedrock)
Anvil is reimbursed and compensated for extra work associated with differing site conditions (DSC) encountered while installing project pipelines through the intersection of South Bay Blvd and Teresa Road including significant impacts for unknown bedrock over about 100-ft of trenching. This change item also includes impacts for utility conflicts encountered including for AT&T, SoCal Gas, State Water, City Water, and City Sewer. This change item also includes costs to remove and replace segments of existing City Sewer pipe and City Water pipe that were in poor condition and failing due to the adjacent bedrock excavation operations.

DSC
52 High Level Switch
Alarm Termination
at Utility Bridge
Anvil is reimbursed and compensated for extra work associated with eliminating the PLC at the Utility Bridge. The PLC only operated a flood sensor. The flood sensor will now be connected to the PLC at Pump Station A via added twisted shielded pair (control wire) running in one of the innerducts in the 4” FO conduit. The purchased PLC, solar panel, and other related equipment will be provided to the City as spare parts.

CR1
61 City Sales Tax
Increase During
Project
Anvil is reimbursed and compensated for extra costs associated with the City raising local Sales Tax by 1% effective 4/1/2021, essentially just after Anvil started working on the project. This settlement amount is calculated to reflect 1% of all goods and materials purchased within the City and delivered to the site.

DSC

REASON FOR CHANGE CODES
CR1: City requested (required)
CR2: City requested (Optional)
E&O: Design Error or Omission
ABI: Anvil request / claim item
DSC: Differing Site Conditions
REG: Regulatory Agency Item
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 005

PCO DESCRIPTION OF CHANGE
Reason
For
Change
TILE

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Chris Fassari
See following page(s) for Descriptions and Reasons for Change

30.1 Days

33.1.1 Days
47 Days

52.2 Days
56 Fiber Optic Design Revisions and Upgrades Days
64 Existing Lift Station 3 Connection and Utility Conflicts Days 65 Relocate New Diversion Manhole and Replace Existing Manhole Days 67 Waterline Replacement Conflicts near Mortuary Days
69 Tie-in HDPE Lines at WRC Days
71 Reroute Sewage Back to the Old Plant on 10/11 Days
73 Guide Rail Modifications at Wet Wells Days

82.2 Additional Flatwork Concrete (Quantity Overruns) Days 83 Existing Waterline Replacement at Pump Station A Days 84 Disputed Caltrans R/W Restoration Costs Days
86 Transport FPVC Pipe to WRC Site Days

89.1 Fencing Modifications Days
90 PS-A & PS-B VFD Auto-Reset due to Power Voltage Drops Days 94 Standby Excavator at Morro Creek for Rain Event Days 96 Raise F.O. Box at FBV Paving Error Days
98 Days
0 Days
0 Days

ACCEPTED APPROVED
Anvil Builders Inc. Carollo Engineers Inc / MEG Inc.

Contractor (Company Name) Construction Manager
(Authorized Signature) (Date) Authorized Signature (Date) Chris Fassari Steve Mimiaga - Construction Mngr.
(Print Name and Title) (Print Name and Title)
$ 8,402.00
$ 5,029.00
$ 1,770.00
$ 33,980.00
$ 12,392.00
$ 62,920.00
$ 117,664.00
$ 10,885.00
$ 18,705.00
$ 59,642.00
$ 32,756.00
$ 134,605.00
$ 71,000.00
$ 296,404.00
$ 86,171.00
Credit for Deleting 36-inch Storm Drain relocation $ (207,000.00) Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the abovementioned project. $ 36,384,606.00
$ 34,968,314.00
$ 1,416,292.00
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00
$ 1,416,292.00
Reason
For Change DESCRIPTION
$ 5,635.00
Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:
$ 99,587.00
$ 28,627.00
Paving Limit Revisions $ 537,118.00
Contract Time
(Calendar Days) PCO #
City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 008
Amount
Bike Path Joint Trench and Waterline Re-Design
Steel Casings on the Morro Creek Pipe Bridge
High Level Switch Alarm Termination at Utility Bridge
By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order (EXCEPT AS NOTED IN ITEM 13.1 HEREIN WHEREIN DELAY IMPACTS ARE ON-GOING).

When signed by the Construction Manager, and upon execution of source document Amendment by City Council, this document becomes effective IMMEDIATELY, and Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 12/1/2022
Extension Days (Calendar)
NEW FINAL COMPLETION 12/1/2022
Previous Change Orders
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ 3,474,639.00
Change Order to Date $ 4,890,931.00

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date:
30 Bike Path Joint
Trench and
Waterline ReDesigns
At the City's request and direction, Anvil subcontracted with Firma Consultants to undertake several landscaping design tasks associated with restoring landscaping along the City's Bike Path from Morro Creek to Camp Willow Creek. These task included preparing a 50% design plan to revegetate the area, add possible decomposed granite path, add bench areas, add rural fencing, add irrigation systems, and other possible improvements.

33.1.1 Paving Limit
Restrictions
This item includes paving quantities paid under Bid Items 61, 62, and 63 in excess of the quantities included in the original contract documents. It also includes grinding existing pavement and placing new pavement on the north side of Quintana between Las Tunas and La Loma, digging out and replacing saturated subgrade at Quintana and Kings Ave, and paving the LS-2 force main alignment in the City's easement on the Vistra property. 47 Steel Casing on
Morro Creek Pipe
Bridge
The Design Engineer inadvertently specified a casing size too small to fit the carrier pipe joint restraints, to address the situation Anvil was directed to delete the Brine Line D.I.P. carrier pipe and accommodate flow in the field coated steel casing pipe, and the FM1 and FM2 carrier pipes were downsized to fit in the casing. This resulted in Anvil reduced costs for deleted and downsized carrier pipes, and increased costs for added necessary fittings at each bridge abutment. Carollo has rejected costs and consider cost items to be offsetting due to the reduced cost for carrier pipes and Anvil's initial error in failing to factory coat the interior of casing pipes.

52.2 High Level Switch
Alarm Termination
at Utility Bridge
Change initiated by City to change from solar powered telemetry to direct PLC wiring to PS-A. The costs under PCO 52 (previously approved) and PCO 52.1 (current item) appear to be reasonable. The original PLC and solar power equipment have been provided to the City.
56 Fiber Optic Design
Revisions and
Upgrades
The City's SCADA integrator JSP Automation recommended the City implement multiple fiber option network revisions and upgrades beyond what was included in the original contract, and the City agreed with the recommendations. The changes encompassed multiple equipment components and communication protocols at essentially all locations on the project, including the WRC, Pump Station A, Pump Station B, existing Lift Stations, and at the City's point of connection with City existing network. 64 Existing Lift Station 3
Connection and
Utility Conflicts
Several existing utility conflicts were identified after Anvil potholed existing utilities near the existing Lift Station 3 (LS-3) to confirm the utility locations shown on the drawings. These conflicts were due to inaccurate record drawing information or the discovery of unmapped utilities and resulted in the need for the original LS-3 connection design to be modified to route the connections over existing pipes, causing hydraulic high points in the parallel branch connection lines. These high points required the addition of extra pipe fittings, two sewer-rated combination air/vacuum release (CAV) valves, and a vault to house the added CAVs. Approximately $50K in standby equipment was removed from Anvil's original request. 65 Relocate New
Diversion Manhole
and Replace Existing
Manhole
Several existing utility conflicts were identified after Anvil potholed existing utilities at the location of the Pump Station A diversion manhole to confirm the utility locations shown on the drawings. These conflicts included existing electrical and communications conduits and were due to inaccurate record drawing information or the discovery of unmapped utilities. An existing adjacent manhole that was designed to remain in place was also discovered to be in substandard and failing condition. Consequently, the City and designer concluded it would be beneficial to relocate the new diversion manhole to the location of the existing failing manhole and replace it. Constructing the new diversion manhole in this location was valuable for the long-term even though it complicated construction and included constructing a cast-in-place concrete manhole base rather than utilizing the pre-cast base specified in the original design, because it allowed the City to replace a failing manhole on a critical sewer line. Approximately $41K was removed from Anvil's original request.

City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 008

PCO DESCRIPTION OF CHANGE
Reason
For
Change
TILE

67 Waterline
Replacement
Conflicts near
Mortuary
Several existing utility conflicts and a buried concrete wing wall were identified after Anvil potholed existing utilities near 1401 Quintana Road to confirm the utility locations shown on the drawings. These conflicts included a communications conduit and the wing wall associated with the State-owned arched culvert at Station 144+00 and were due to inaccurate record drawing information or the discovery of unmapped utilities. Anvil needed to excavate carefully around these conflicts and re-route the new 10" waterline replacement in this area to avoid the existing conflicts. The majority of extra costs are associated with potholing and discovering the limits of the buried unknown wing wall. 69 Tie-in HDPE Lines at
WRC
Anvil's contract included making the pipeline and fiber optic connections between the Conveyance Facilities and WRC projects near the WRC entrance on Theresa Dr. While Anvil was attempting to connect pipelines, small quantities of test water continued to flow from the WRC on-site piping, and making the connections requires the pipelines to be completely dry. It took several days for FBV to identify and close valves and stop the nuisance water from flowing into the connections, and Anvil incurred additional costs for the delay and to deal with the water before it was stopped. 71 Reroute Sewage
Back to the Old
Plant on November
11, 2022
During WRC startup, FBV determined that the new WRC treatment process was at risk for failure and wastewater flow needed to be routed back to the City's existing WWTP so the treatment biology could be re-seeded and wastewater flow introduced at a slower rate. Consequently, Anvil needed to reinstall the plug in the diversion manhole near Pump Station A and reestablish the sewer bypass at that location. This item includes the costs for standby equipment rental, trench shoring rental, crash barriers, fencing, and road plates, and it also includes labor and materials for plugging the diversion manhole and reinstating the bypass. 73 Guide Rail
Modifications at
Wet Wells
The Design Engineer issued Design Clarification No. 32 to modify submersible pump guide rails at both Pump Station A and Pump Station B wet wells. Due to space constraints in the pump station wet wells, the 3 submersible pumps needed to be re-positioned in each wet well, and the pump guide rails no longer aligned with the edge of the hatch opening above (as designed).

Consequently, it was necessary to re-design and modify the guide rail top mounting bracket using off-set knee bracing and other added structural supports. This item includes labor and materials to implement the design change.

82.2 Additional Flatworks
Concrete
The Contract Drawings specifically indicate the removal and replacement of existing concrete flatwork (sidewalks, curb, gutters, etc.) in multiple locations adjacent to the new work associated with the project. Additional areas of adjacent concrete was identified during punchlist development to have been impacted by Anvil's work, but wasn't specifically identified in the contract drawings. There are also quantities included in this PCO for sidewalks adjacent to prior-approved changes in contract work that required repair or replacement due to changes in the scope of work. 83 Existing Waterline
Replacement at
Pump Station A
The construction of Pump Station A required an extensive shoring and groundwater dewatering system. The large, shored area was directly adjacent to an existing 6" transite City water main. During the project, the City was concerned that the shoring and dewatering operation would undermine and impact the existing water line, so the City added isolation valves on each side of the shoring, and closed those valves to isolate the segment of water main for over a year. Recently the City re-pressurized the line and found it to be leaking in several locations. Anvil has been directed to replace about 210' of waterline at their expense including various fittings and appurtenances, and Anvil has disputed that they are responsible for this water main replacement. 84 Disputed Caltrans
Right-of-Way
Restoration Costs
Anvil issued Request for Information (RFI) #305 regarding Caltrans requested/directed restoration work that Anvil believes is beyond the Contract scope. These items include (1) additional 2’ wide strip of aggregate shoulder backing along the Atascadero Road S/B on-ramp; (2) additional fiber roll erosion control for the slope along the Atascadero Road S/B on-ramp; and (3) additional compost sock or fiber roll be added to the bottom (toe) of the slope along the Atascadero Road S/B on-ramp. 86 Transport FPVC to
WRC Site
The City directed Anvil to transport unused FPVC pipe to be stored at the WRC site for futher use. The contract did not specifically require this and Anvil incurred labor and fuel costs to transport and unload the pipe at the new WRC.

89.1 Fencing
Modifications
This item includes Anvil labor, equipment, and material cost to replace existing fencing that was necessary to be removed to complete project work, but not specifically identified on the contract drawings. It is paid under a contract bid item and is for additional quantity beyond what was included in the bid.

90 PS-A and PS-B VFD
Auto-Reset due to
Power Voltage
Drops
After commissioning both PS-A and PS-B, PG&E power voltage drops during inclement weather caused several pump motor VFD faults. After attempting to adjust VFD settings, the City directed Anvil to add a remote auto-resets for the VFDs, including adding programming by the City's SCADA integrator and the required field wiring so City operations staff do not have to physically respond to the faults as shutdown emergencies.
94 Standby Excavator
at Morro Creek for
Rain Event
Not related to the project work, and as an emergency standby during a forecasted major storm event on March 9 and 10, the City requested Anvil to provide a Cat 315 excavator and operator on standby to clear debris from under the Main St bridge should it be determined that the debris could cause or contribute to flooding in this area. This item includes equipment mobilization and demobilization costs, daily standby costs, and equipment and labor cost. 96 Raise Fiber Optic
Box at FBV Paving
Error
This work includes demolishing existing asphalt concrete around a newly installed fiber optic box and raising the fiber optic box lid to the appropriate grade. The asphalt was removed due in part to FBV laying asphalt at the incorrect grade at the WRC entrance.

Work also included pouring a concrete collar around the fiber optic box. 98 Credit for Deleting
36-inch Storm Drain
relocation
Bid Item 44 calls for the relocation of a 36-inch storm drain property to the northeast of the roundabout. Currently at the location of Anvil's field office. This work was removed from Anvi's contract at the direction of the City.

REASON FOR CHANGE CODES
CR1: City requested (required)
CR2: City requested (Optional)
E&O: Design Error or Omission
ABI: Anvil request / claim item
DSC: Differing Site Conditions
REG: Regulatory Agency Item

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: Project Manager: Chris Fassari
See following page(s) for Descriptions and Reasons for Change

33.1.1 $ 441,351.00 0 Days
60 $ 326,793.00 0 Days
74 $ 48,620.00 0 Days
81 $ 39,226.00 0 Days
87 $ 4,201.00 0 Days
91 $ 19,809.00 0 Days
$ 0 Days 880,000.00
0 Days

ACCEPTED APPROVED
Anvil Builders Inc. Carollo Engineers Inc / MEG Inc.

Contractor (Company Name) Construction Manager
(Authorized Signature) (Date) Authorized Signature (Date) Chris Fassari Steve Mimiaga - Construction Mngr.
(Print Name and Title) (Print Name and Title)

NET CHANGE ORDER ADJUSTMENT
Additional Grading in Maintenance yard at PS-A
$ 37,264,606.00
$ 36,384,606.00
$ 880,000.00
ORIGINAL CONTRACT AMOUNT $ 31,493,675.00

City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 009
DESCRIPTION Amount
Paving Limit Revisions
June 27th, 2023
Upon mutual acceptance and execution of this document by the City of Morro Bay (City) and Anvil Builders, Inc. (Contractor), Contractor is hereby directed to make the following changes for the consideration set forth below:

Contract Time
(Calendar Days) PCO #
Anvil Acceleration & Extended Overhead Claim
Temporary Flood Alarm at Utility Bridge North Abutment
Additional Striping Costs for Thermoplastic Striping
Acceptance of this Change Order constitutes an agreement between the City and Contractor, and the work is to be performed subject to the same terms and conditions as are contained in the Agreement with Contractor and for work on the above-mentioned project.

Relocating Temp Fence on Bike Path
By signature of this Change Order, the Contractor acknowledges that the adjustments to the Contract Cost and Time contained in the Change Order are in full satisfaction and accord and so waives any right to claim any further cost and time impacts at any time during and after completion of the Contract for the changes encompassed by this Change Order (EXCEPT AS NOTED IN ITEM 13.1 HEREIN WHEREIN DELAY
IMPACTS ARE ON-GOING).

When signed by the Construction Manager, and upon execution of source document Amendment by City Council, this document becomes effective IMMEDIATELY, and Contractor shall proceed with the change(s) described above.

CURRENT FINAL COMPLETION DATE 12/1/2022
Extension Days (Calendar)
NEW FINAL COMPLETION 12/1/2022
Previous Change Orders (1-8)
Previous Contract Amount
Adjustments by this Change Order
New Contract Amount
$ 4,890,931.00
Change Order to Date $ 5,770,931.00
Exhibit C

Project: WRF Lift Stations and OffSite Pipelines Project Contractor: Anvil Builders, Inc.

Date: June 27, 2023

33.1.1 Paving Limit
Revisions
This item includes paving quantities paid under the original contract bid items in excess of the quantities included in the original contract documents.
60 Anvil Acceleration &
Extended Overhead
Claim
On 5/11/22, the City requested that Anvil immediately implement a recovery schedule in order to meet the City's Time Schedule Order deadline for achieving full operation of WRF and Conveyance wastewater facilities. Anvil developed and implemented their Recovery Schedule to achieve the milestones. This was accomplished through re-sequencing, providing additional manpower, and working overtime to accelerate activities.
74 Temporary Flood
Alarm at Utility
Bridge North
Abutment
The Morro Creek Utility Bridge was designed to include a sewage leak detection system powered by a photovoltaic solar panel.

The City simplified the arrangement to delete the solar panel and direct-wire the alarm to the Pump Station A main control panel that is approximately 2000' from the utility bridge. Anvil needed to install a temporary diesel generator-powered flood alarm to meet the October 2022 project commissioning effort because the materials and equipment were impacted by supply chain disruptions and would not be available to meet the deadline. 81 Additional Striping
Costs for
Thermoplastic
Striping
Anvil issued Request for Information (RFI) #302 to request clarification on the City's requirements for lane and pavement striping material. The City responded to the RFI and required that Anvil provide thermoplastic lane striping for turn arrows, bike lane symbols, and other markings (speed limit, stop, limit lines, cross walks, etc.), pursuant to 2010 Caltrans specifications. The remainder of lane striping will be 2-coat paint. Anvil requested reimbursement for thermoplastic striping with the justification that it was not specifically required by Contract Drawings or Specifications. The City disputed that claim and the amount included is a 50/50 split, which Anvil has agreed to.
87 Relocating Temp
Fence on Bike Path
This PCO covers the level of effort for Anvil to completely adjust their entire temporary fence location due to work being performed by PG&E.
91 Additional Grading
in Maintenance yard
at PS-A
The contract drawings indicate a specific area limit for removal of existing pavement around PS-A including removal of existing pavement in the City Corp Yard Driveway. The contract drawings do not indicate any pavement restoration or re-grading in the City Corp Yard Driveway. Grading and paving in other adjacent areas is called out on the drawings. Anvil was required to add Class 2 Aggregate Base and grading of the driveway to match grades with the new sidewalk and new Corp Yard gate.

City of Morro Bay
Water Reclamation Facility
Lift Stations and Offsite Pipelines Project
CHANGE ORDER 009

PCO TILE DESCRIPTION OF CHANGE
Exhibi

Prepared By: GK Dept Review: GK
City Manager Review: ___ City Attorney Review: _RWS__
Staff Report
TO: Honorable Mayor and City Council DATE: February 3, 2025 FROM: Greg Kwolek, Public Works Director
SUBJECT: Approval of Agreement with Bill Gaines Audio, Inc., for Design and Installation Services for the Vets Hall Audio Visual Upgrades Project

RECOMMENDED ACTION
Authorize the City Manager to execute an agreement in the not-to-exceed amount of $293,100.00 with Bill Gaines Audio, Inc., (BGA) to perform design and installation services for the Vets Hall Audio Visual Upgrades Project (Attachment 1), approved to form by the City Attorney’s Office.

ALTERNATIVES

1. City Council may direct staff to not approve the proposed contract or suggest modifications to the scope of work.

2. City Council may provide other direction to staff.

FISCAL IMPACT
The Vet’s Hall Building, Audio, and Visual Improvements project is currently funded at approximately $519,091.02 through prior City Council funding allocations. Costs are expected to remain within the allocated budget. No new budget is requested. The total available project budget is made up of the following funding sources:

Funding
Source
Available
Project Budget
PEG $227,439.48
General Fund $291,651.54
Total: $519,091.02
Beyond audio and visual upgrades, further building improvements such as heating system, security, and ADA improvements for the Vets Hall Building will also be funded from this project budget.

BACKGROUND/ DISCUSSION
During the 2023-2025 City Council Goals process, the City Council identified Vets Hall audio visual upgrades as a priority under the Public Infrastructure goal. To complete this work, the City seeks to hire a qualified, professional consultant to prepare design alternatives, implement the City Council’s selected design alternative, and train City staff on the new audio visual system’s use. The City released a Request for Proposal (RFP) on Friday, December 13, 2024, to procure these services.

The City received one responsive and responsible proposal from BGA. The City received no other proposals by the January 22, 2025, due date.

AGENDA NO: 7.d
MEETING DATE: February 11 2025

Should the City Council award this professional services agreement, BGA will invoice the City on a time and materials basis. This means BGA will only be able to bill the City for actual costs related to the project. It is noteworthy to mention, the not-to-exceed amount of $293,100.00 reflects procurement of the highest cost option that will be presented to the City Council. If the City Council ultimately selects a less expensive implementation option, the cost to the City will be less than this amount.

The highlights of the scope of the contract for audio and visual upgrades are as follows:

1. Project Planning

2. Audio and Visual Designs (3), City Council Approval

3. Equipment Procurement, Installation, Programming

4. Staff Training and Support
The full scope is included within the attached agreement.

The City is scheduled to bring to the City Council three design alternatives for Vets Hall audio visual upgrades developed by BGA with estimated costs for each alternative by the City Council meeting scheduled for Tuesday, April 22 ,2025. Once the City Council chooses a design alternative, BGA will immediately begin steps to implement the selected alternative.

ATTACHMENT(S)

1. Professional Services Contract with Scope of Services

01181.0001/813182.1 D-1

AGREEMENT FOR SERVICES

BETWEEN CITY OF MORRO BAY AND
BILL GAINES AUDIO, INC.

THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into this 11th day of February, 2025 by and between CITY OF MORRO BAY, a California municipal corporation (“City”) and Bill Gaines Audio, Inc., a California corporation (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; b) all materials used for services will be both of good quality as well as fit for the purpose intended; and, c) Consultant shall follow the highest professional standards and practices in performing the services required hereunder.

1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.

1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered.

City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Additional Services and Compensation. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes to the work by altering, adding to

01181.0001/813182.1 D-2
or deducting from said work. No such extra work may be undertaken unless a written order, consistent with both Section 9.4 as well as Morro Bay Municipal Code (“MBMC”) section

3.08.060 (and as amended), is first given by City to Consultant, incorporating therein any adjustment in the Contract Sum for the actual costs of the extra work and/or the time to perform this Agreement, which said adjustments are subject to the written approval of Consultant. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other consultants.

1.6 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.

1.7 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.

1.8 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.

1.9 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Two Hundred Ninety-Three Thousand One Hundred Dollars ($293,100.00) (“Contract Sum”), unless additional compensation is approved pursuant to Section 1.5. Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. The Contract Sum shall include the attendance of Consultant at all project meetings

01181.0001/813182.1 D-3
reasonably deemed necessary by City. Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this Agreement. Except as provided in Sections 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty-five (45) days, from the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City): 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation; and 4) line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

3.2 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, which shall be no later than December 31, 2025.

3.3 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference.

3.4 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon the Parties to this

01181.0001/813182.1 D-4
Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representative of Consultant. The representative of Consultant is Conor Vache, who is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.

4.2 Contract Officer for City. The Contract Officer for City is Gregory Kwolek (or such person as may be designated by the City Manager). The Contract Officer shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.

4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the City Manager or by their delegate as provided for in writing.

4.4 Independent Contractor. Neither City, nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant, or its officers, employees, agents or subcontractors, perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.

No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer

01181.0001/813182.1 D-5
contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.

4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other entity to perform in whole or in part services required hereunder without express written approval of City, and neither this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts below, issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by City, which shall cover all elected and appointed officers, employees and agents of City. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant ninety (90) days advance written notice of such change.

If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant’s compensation.
(a) Commercial General Liability Insurance. A policy of commercial general liability insurance, with coverage at least as broad as Insurance Services Office (“ISO”) form CG 00 01, written on a per occurrence basis for bodily injury, personal injury and property damage. Defense costs must be paid in addition to limits. Coverage for an additional insured shall not be limited to its vicarious liability. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Limits shall be no less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate.
(b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Consultant in the course of carrying out the work or services contemplated in this Agreement.
(c) Automobile Liability. A policy of comprehensive automobile liability insurance, at least as broad as ISO form CA 00 01, written on a per occurrence basis covering bodily injury and property damage in an amount not less than $1,000,000 combined single limit

01181.0001/813182.1 D-6
for each accident. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Professional Liability. Professional liability insurance appropriate to Consultant’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of City submit written evidence of this continuous coverage. Limits shall be no less than $1,000,000 per claim and no less than $1,000,000 general aggregate. (e) Cyber Liability. Cyber liability insurance appropriate to Consultant’s profession and the services hereunder, written on a per occurrence basis, with limits not less than $1,000,000 per occurrence/loss, and $2,000,000 in the aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations undertaken by Consultant pursuant to this Agreement and shall include, but not be limited to, claims involving: infringement of intellectual property; copyright; trademark; invasion of privacy violations; data breach; electronic information theft, loss, damage, destruction, alteration or misuse; release of private information; extortion; and, network security. The policy shall provide coverage for breach response costs, regulatory fines and penalties, and credit monitoring expenses, with limits sufficient to respond to these obligations.
(f) Excess Liability Insurance. Excess liability insurance may be used to satisfy the obligations herein. If excess liability insurance is used then the policy shall meet all the requirements herein and be at least as broad as the primary coverages set forth herein. Such policy shall: 1) include a drop down feature requiring the policy to respond if primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; 2) be payable on behalf of wording as opposed to reimbursement; 3) have concurrency of effective dates with primary policies; 4) “follow form” to the underlying primary policies; and, 5) provide insureds, under primary policies required herein, shall be insureds under the excess liability policy. (g) Subcontractors. In the event Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, Consultant shall either: 1) include each subcontractor as insureds under its policies of insurance required herein; or, 2) Consultant shall furnish to City all documentation, required in Article 5 for Consultant, for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.

5.2 General Insurance Requirements.
(a) Proof of Insurance, Enforcement and Notice. No work or services under this Agreement shall commence until both Consultant has provided City with insurance certificates, endorsement forms and appropriate insurance binders evidencing the above insurance coverages, as well as said documentation is approved by City. City reserves the right to inspect complete, certified copies of, and endorsements to, all required insurance policies, at any time.

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Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City. In the event any insurance policy required under this Agreement is cancelled or amended (and the insurance policy is not replaced pursuant to subsection (b) below), or does not comply with Article 5, then: 1) City has the right but not the duty to obtain insurance required herein and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments; or, 2) City, notwithstanding any other provisions of this Agreement, may immediately terminate this Agreement. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required insurance policies. (b) Cancellation/Amendment. All of herein required policies of insurance shall provide the insurance may not be amended or cancelled by insurer or any Party hereto without providing thirty (30) calendar days prior written notice (with exception of ten (10) calendar days prior written notice for nonpayment) to City. In the event any of said policies of insurance are amended or cancelled, Consultant shall, five (5) business days prior to the cancellation date, submit new evidence of insurance in conformance with this Agreement to City. (c) Additional Insureds. The commercial general liability policy provided for in Section 5.1(a) and the automobile liability policy provided for in Section 5.1(c) both shall name City and its elected and appointed officers, employees and agents (“City Parties”) as additional insureds and such coverage shall contain no special limitations on the scope of protection afforded to City and City Parties. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability, and policies of insurance shall not contain any cross-liability exclusions. (d) Primary, Subrogation, Contribution and Coverage. All of the above policies of insurance shall be primary insurance. The insurers for above policies, Consultant and any subcontractors are all deemed hereof to waive all rights of subrogation and contribution they may have against City or City Parties, and their respective insurers, and all insurance policies required herein shall be endorsed to waive such rights. Any insurance maintained by City or City Parties will apply in excess of, and not contribute with, Consultant’s insurance. If Consultant maintains broader coverage and/or higher limits than the minimum amounts provided herein, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City and City Parties. None of the coverages required herein will be in compliance with this Agreement if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. Requirements of specific coverage features or limits contained herein are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
(e) Limitations, Self- Insured Retention and Deductibles. Consultant agrees that requirements of Article 5 shall not be construed as limiting in any way the extent to which

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Consultant may be held responsible for the payment of damages to any persons or property resulting from Consultant’s activities or the activities of any person or persons for which Consultant is otherwise responsible nor shall it limit Consultant’s indemnification liabilities as provided in Section 5.3. All insurance policies must specify that where the primary insured does not satisfy any self-insured retention, any additional insured may satisfy the self-insured retention.

Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City and City Parties, or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, attorney’s fees, defense expenses and claims.

5.3 Indemnification.
(a) General Obligations. Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (each an “Indemnitor” and collectively, “Indemnitors”), or arising from Indemnitors’ reckless or willful misconduct, or arising from Indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: 1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.
(b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall survive termination of this Agreement.

Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5.3(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct

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of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct.

Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. (c) Professional Liability. When the law establishes a professional standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section 5.3, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services under this Agreement.

ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION

6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible. City shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“documents and materials”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership, use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of such documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.

6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant.

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Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from City. Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena.

If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. As concerning, regarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant, however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

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

District Court, venue shall lie exclusively in the Central District of California, in the County of San Luis Obispo, State of California.

7.2 Suspension, or Termination, Prior to Expiration of Term. This Section shall govern any termination of this Agreement except as specifically provided in Section 7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder, unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2.2, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such as may be approved by City, except as provided in Section 7.5. In event of termination, or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.

7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is

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in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively ten (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices, without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe, City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other remedy to which City may be entitled at law, in equity or under this Agreement. Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City therefor.

7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement of this Agreement imposes no additional obligations on

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City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. Attorneys’ fees shall include attorneys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION

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

8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict.

No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any

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State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of City addressed to City Clerk at City of Morro Bay, 595 Harbor Street, Morro Bay, CA 93442, and in the case of Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement, headings used, or any other rule of construction which might otherwise apply.

9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement.

It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and (consistent with, as amended, Chapter 3.08 of the MBMC) by City.

9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid

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provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.

9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
[SIGNATURES ON FOLLOWING PAGE]

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

CITY:

CITY OF MORRO BAY, a California municipal
corporation
Yvonne Kimball
City Manager
ATTEST:

Dana Swanson, City Clerk
APPROVED AS TO FORM:

Robert Schultz, Interim City Attorney
CONSULTANT:

Bill Gaines Audio, a California Corporation
By:

Bill Gaines
Owner/CEO
By:

Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.)

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS,

ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

01181.0001/813182.1 A-1

EXHIBIT A

SCOPE OF SERVICES
I. Consultant will perform services described in Consultant’s Proposal attached hereto.

II. All work product is subject to review and acceptance by City, and must be revised by Consultant without additional charge to City until found satisfactory and accepted by City.

Bill Gaines Audio Inc.
840-A Capitolio Way San Luis Obispo, CA 93401
(805) 545-8366 | www.billgainesaudio.com
CA # 1024473
-Previous consultation work done with the City of Morro Bay, as well as the “Qualifications and References” section of this RFP demonstrate BGA’s ability to provide the services in a timely manner.

Proposed Scope of Work
Task 1 Project Planning Phase
• 1.1 Kickoff Meeting
o Prepare for and participate in an in-person Project Kickoff Meeting with the Project Team, which includes City Staff and other Project supporting consultants.
• 1.2 Project Team Meetings
o Prepare for and participate in (up to weekly) Project Team Meetings with the Project Team, which includes City Staff and other Project supporting consultants.
• 1.3 Documentation
o Prepare documentation and research to support the Planning Phase and to
o Make sure all client needs/wants are communicated.

Task 2 Design and Approval Phase
• 2.1. Design Requirements
o Design and fully price out three A/V system scenarios ▪ A fully automated A/V system capable of being operated without a technician
▪ A semi-automated A/V system capable of being operated with one technician which has an optional but limited automated system. ▪ An upgraded manual system requiring two or more technicians to operate
o Designs will include the following considerations:
▪ Microphone coverage for all seated local positions, as well as wireless microphones for roaming/audience participation ▪ Incorporation of existing in room speakers into new system ▪ Audio mixing equipment and software with adequate I/O. Shall include digital output for broadcast audio
▪ Video recording system that includes adequate static and PTZ cameras to fully record City Council and other public meetings.

Bill Gaines Audio Inc.
840-A Capitolio Way San Luis Obispo, CA 93401
(805) 545-8366 | www.billgainesaudio.com
CA # 1024473
▪ Video mixing hardware and software
▪ Camera control hardware
▪ Automation
▪ System automation and integration hardware and software ▪ Computer system capable of streaming to existing internet connection
▪ System for recording meetings as necessary. Both network and physical recording to be included.
o The system shall have a user interface that is accessible from the Council Chamber for staff to control during use of the system. This may be on a tablet/iPad or other similar device.
o Designs shall allow for successful local operation and broadcast (via Zoom, or other digital streaming platform) of audio and visual inputs (both local and remote) during public meetings held by the City. o Designs shall include recommendations for purchase of new Council Chamber dais, staff seating, and control room furniture. These items are to be procured by the City.
o Designs shall be developed in cooperation with City staff and shall include one site visit with City staff, with an additional optional site visit o Designs shall be based on current building conditions at the Morro Bay Vets Hall
• 2.2 Documentation
o Prepare documentation to adequately convey system design and installation requirements for both City Staff and City Council • 2.3. City Council Approval
o Assist in preparation of staff report to City Council outlining the three design scenarios with estimated build out costs for each scenario o Assist, in person, in the presentation of the staff report to the City Council.

Task 3 Procurement and Installation Phase
• 3.1. Procurement
o Procure all necessary equipment, hardware, software, components and other peripherals for a fully built out A/V system for the MB Vets Hall as selected and approved by the City Council.
o Provide all necessary tools and equipment required to execute the installation according to approved plans in a safe and timely manner. • 3.2. Documentation
o Prepare Shop Drawings for City Approval prior to commencing work.

Bill Gaines Audio Inc.
840-A Capitolio Way San Luis Obispo, CA 93401
(805) 545-8366 | www.billgainesaudio.com
CA # 1024473
o Prepare As Built drawings at completion of work
o Prepare custom Maintenance and Operations manual for system. • 3.3. Installation
o Install all new equipment in scope of work
o Configure and setup the system to the satisfaction of the City to ensure camera angles, microphone locations, and settings are optimized for the City’s purposes.
o Provide to the City any removed hardware and/or equipment • 3.4 Programming/Integration
o Configure and program all equipment to ensure operation that meets or exceeds design requirements.
o Configure user interface(s) to support level of control required by the selected design.
▪ Test and validate system performance
Task 4: Training and Support
• 4.1 Training
o Support city staff with adequate initial training for everyone expected to use system.
o Provide continuing training as necessary for 1 year from date of install • 4.2 Support/Service
o Provide comprehensive system maintenance and operations manual o Provide complimentary system service at (6) months and (1) year ▪ Includes system cleaning, and confirmation of system operation ▪ 1 hour of programming changes as requested
o Provide complimentary service with maximum 48 hour response time for 1 year for all system problems or issues
▪ Opportunity for extended service contracts available
In general, the City will be responsible for the following items:
• Providing copies of available plans, reports, and existing documentation on file in the Public Works Department for the Consultant’s reference. • Designating a City staff person as the primary point of contact for the project. • Complete/Contract all necessary construction tasks of trades other than Low Voltage Installation to support AV process

01181.0001/813182.1 B-1

EXHIBIT B

SPECIAL REQUIREMENTS
(Superseding Agreement Boilerplate)
Not Applicable

01181.0001/813182.1 C-1

EXHIBIT C

SCHEDULE OF COMPENSATION
I. Consultant will be compensated for Services provided under this Agreement in accordance with description in Consultant’s Proposal attached hereto.

II. City will compensate Consultant for the Services performed upon submission of a valid invoice, as described in Section 2.2.

III. The total compensation for the Services shall not exceed the Contract Sum, as provided in Section 2.1 of this Agreement.

Task Subtask Overhead Equipment Costs
Total "Not to
Exceed" Amount
Hours Rate Hours Rate Hours Rate Hours Rate Hours Rate Hours Rate Project Planning Project Team Meetings 16 $ 175.00 $ 2,800.00 Documetation 2 $ 150.00 $ 300.00
Design and Approval Design Reqirements 20 $ 125.00 60 $ 175.00 $ 13,000.00 Documentation 20 $ 150.00 $ 3,000.00
City Council Approval 20 $ 175.00 $ 3,500.00
Procurement and Install Procurement $ 185,000.00 $ 185,000.00 Documentation 4 $ 125.00 20 $ 150.00 $ 3,500.00
Installation 40 $ 175.00 80 $ 175.00 200 $ 150.00 $ 51,000.00 Programming/Integration 20 $ 175.00 120 $ 150.00 $ 21,500.00 Training/Support Training 4 $ 175.00 $ 700.00
Support/Service 4 $ 125.00 16 $ 175.00 $ 3,300.00
Admin Prevaling Wage Support $ 2,500.00 24 $ 125.00 $ 5,500.00 Total "Not To Exceed" for Project: $ 293,100.00
Office
Administration CAD Designer Project Manager Lead Installer Installer Programmer

01181.0001/813182.1 D-1

EXHIBIT D

SCHEDULE OF PERFORMANCE
I. Consultant shall perform all services and deliver all work products timely in accordance with the schedule described in Consultant’s Proposal attached hereto.

Bill Gaines Audio Inc.
840-A Capitolio Way San Luis Obispo, CA 93401
(805) 545-8366 | www.billgainesaudio.com
CA # 1024473
Project Schedule/Work Plan

Bill Gaines Audio Inc.
840-A Capitolio Way San Luis Obispo, CA 93401
(805) 545-8366 | www.billgainesaudio.com
CA # 1024473

Prepared By: __DS______ Dept Review: ______
City Manager Review: ________ City Attorney Review: _____ Staff Report
TO: Honorable Mayor and City Council DATE: February 5, 2025 FROM: Yvonne Kimball, City Manager
SUBJECT: Authorize FY 2024/25 Community Grant Funds Awarded to Morro Bay Maritime Museum to be used for a Revised Project

RECOMMENDED ACTION
Review request received from the Morro Bay Maritime Museum and, pursuant to the City’s Community Grant Policy adopted by Resolution No. 73-19, authorize the Morro Bay Maritime Museum to direct the $5,000 Grant Award previously approved by City Council for paving the Kid’s Cove area, rather than the original stated purpose of building a walkway.

ALTERNATIVES
The City Council may choose to withdraw the Community Grant Funds.

FISCAL IMPACT
There is no fiscal impact related to this action.

BACKGROUND/DISCUSSION
The City Council annually allocates grant funds to various community groups and organizations in accordance with the City’s adopted Community Grant Policy (link provided as Attachment 3). At its October 8, 2024 meeting, the City Council adopted Resolution No. 67-24 approving Community Grant Funding for FY 2024/25, including $5,000 to the Morro Bay Maritime Museum (“Museum”).

As noted in the attached letter from Museum Board Member Ron Reisner, the project submitted in the grant application was to build a walkway through the Museum’s lease extension area. However, since making that application, the Museum has turned its focus to establishing an expanded children’s program and, in aid of that, intends to have pavers installed on the grounds area in the Museum’s children’s Kid’s Cove experience area. Those grounds are currently dirt and gravel, which is not user friendly in inclement weather. The contracted cost of the paver work in the children’s area is approximately $8,000, and the Museum would be pleased if the grant funds awarded by the City could be applied to that work.

Based on the Community Grant Policy and Grant Agreement copied below, any change in the use of awarded funds must be approved by City Council.

Grant Agreement, Section IX Terms and Amendments, reads:
“Amendments to the terms and conditions of this agreement shall be requested in writing by the party AGENDA NO: 7.e
MEETING DATE: February 11, 2025

desiring such revision, and any such adjustment to this Agreement shall be determined and effective only upon the mutual Agreement in writing of the parties hereto unless Amendments are made by the CITY as corrective actions under the Community Grant Policy, attached hereto as Exhibit B and incorporated herein by reference, in which case they will be adopted as ordered.

Community Grant Policy (Exhibit B), reads:
“City moneys shall be used only for the purpose and programs(s) duly authorized and in accordance with the approved budget. Any deviation from the approved program proposal may be made only with the City’s prior written approval which requires Council authority. If moneys are used outside the approved program proposal without prior written approval from the City, funds must be returned immediately to the City.”

CONCLUSION
Pursuant to the City’s Community Grant Policy adopted by Resolution No. 73-19, authorize the Morro Bay Maritime Museum to direct the $5,000 Grant Award for paving the Kid’s Cove area, rather than the original stated purpose of building a walkway.

ATTACHMENTS

1. Morro Maritime Museum February 3, 2025 Request

2. Resolution No. 67-24

3. Link to Resolution No. 67-19 approving the Community Grant Policy

Date: February 3, 2025
To: Morro Bay City Council
From: Morro Bay Maritime Museum
Subject: 2025 City of Morro Bay Community Grant
During the 2024/2025 Community Grant cycle, the Morro Bay Maritime Museum received a $5,000 grant. The purpose as stated in the grant agreement is as follows:
“The site map approved by the City in conjunction with the 2023 lease site expansion included a north/south walkway along the east side of the expansion area. Prior to placing additional exhibits in this area, it is now necessary to build the walkway. Toward that end, the Museum has obtained a $18,000.00 proposal from IGL Pavers of Morro Bay to build an approximately 180’ by 5’ walkway of pavers extending northward from the northwest corner of the AVALON exhibit.”
Per the grant agreement’s Section IX Terms and Amendments, the Museum hereby requests a revision of the grant’s purpose. Since making application for the grant to be applied to the walkway, the Museum Board has identified a higher priority project in terms of calendar time.

The overall project involves developing a series of free educational events for children at the Museum for the 2025 summer vacation period. The focused area at the Museum for this program is the portion of Museum grounds known as Kid’s Cove, which is approximately 350 square feet, and has been a dirt and scattered gravel surface.

The Museum requests applying the $5,000 2024/2025 grant funds to the installation of pavers over the Kid’s Cove area, to eliminate the dirt and gravel surface, and mitigate trip/fall risks.

The Museum has received a $8,024.36 proposal from local IGL Pavers to create a full paver surface in the Kid’s Cove area. If Council approves the revised grant purpose, the Museum has the funds on hand to make up the difference between the grant and IGL’s proposal.

Should there be questions, please let me know.

Ron Reisner, Museum Board Member

Prepared By: MS____ Dept Review: _EC____
City Manager Review: ________ City Attorney Review:
___
Staff Report
TO: Honorable Mayor and Councilmembers DATE: February 11, 2025 FROM: Emily Conrad, Finance Director
Megan Schotborgh, Accounting Manager
SUBJECT: First and Second Quarter Investment Reports (periods ending September 30, 2024 and December 31, 2024) for Fiscal Year (FY) 2024-25

RECOMMENDED ACTION
Receive the attached First Quarter and Second Quarter Investment Reports (periods ending September 30, 2024 and December 31, 2024) for FY 2024-25.

FISCAL IMPACT
There is no fiscal impact associated with this recommendation.

DISCUSSION
The First Quarter Investment Report for FY 2024-25 is summarized below:
(1) The face value of investments
(2) The amount in which investments could be sold
(3) WAM is the Weighted Average Maturity, the average time a security will mature The City’s investments earned a total of $982,955 in interest this quarter. Interest rates continued the upward trend during this period. Mechanics Bank increased by 10 basis points to 4.8% and LAIF increased by 16 basis points to 4.71%.

There were two transactions during this period: a Certificate of Deposit (CD) matured at a Par Value of $249,000 and interest rate at 3.40%, and the CD was replaced with another at a Par AGENDA NO: 7.f
MEETING DATE: February 11, 2025
Cash and Pooled Investment Portfolio at September 30, 2024 Institution Par Value¹ Market
Value² WAM³
Mechanics Bank (interest earning) 27,041,498 27,041,498 0 LAIF 38,393,136 38,472,268 0
Zions Bank 12,942,000 13,089,028 216
Subtotal Pooled Investment Portfolio 78,376,634 78,602,794 Mechanics Bank (operating/non-interest earning) 4,039,286 4,039,286 0 TOTAL IN TREASURY 82,415,920 82,642,080

Value of $247,000 and interest rate at 4.15% to maintain a similar investment level. This quarter, the City’s portfolio is performing slightly under LAIF, with a difference of 0.282%.

The Second Quarter Investment Report for FY 2024-25 is summarized below:
(1) The face value of investments
(2) The amount in which investments could be sold
(3) WAM is the Weighted Average Maturity, the average time a security will mature The City’s investments earned a year-to-date total of $1,720,876 interest by the close of this quarter. Interest rates began to decline during this period, however, earnings increased due to increasing funds in the Money Market account and in the number of investments. Earnings at this reporting date outperformed prior year by over $900,000 at the same date. Mechanics Bank decreased by 13 basis points to 4.67% and LAIF decreased by 9 basis points to 4.62%. With the slight decrease in interest rates, higher earnings are a result of higher cash balances and staff efforts to pursue improved investment options consistent with Council’s Investment Policy and State law.

Our portfolio is performing slightly under LAIF, with a difference of 0.261%. With one Treasury Bill maturing this quarter, staff will explore investment options. Staff will monitor interest rates closely to maximize earnings. As reported in previous investment reports, many small cities utilize investment advisors with extensive expertise in municipal investments to ensure ongoing maximization of interest revenues within the confines of State law and local investment policies.

Staff will begin to evaluate whether investment advisor services would be financially beneficial to the City and increase interest earnings to a greater degree for a limited cost.

CONCLUSION
Staff recommends that the City Council receive the First Quarter and Second Quarter Investment Reports (periods ending September 30, 2024 and December 31, 2024) for Fiscal Year 2024-25.

ATTACHMENTS

1. First Quarter Investment Report for FY 2024-25 (period ending September 30, 2024)

2. Second Quarter Investment Report for FY 2024-25 (period ending December 31, 2024) Cash and Pooled Investment Portfolio at December 31, 2024 Institution Par Value¹ Market
Value² WAM³
Mechanics Bank (interest earning) 30,299,531 30,299,531 0 LAIF 38,848,438 38,833,753 0
Zions Bank 11,942,000 11,902,849 137
Subtotal Pooled Investment Portfolio 81,089,969 81,036,133 Mechanics Bank (operating/non-interest earning) 4,036,597 4,036,597 0 TOTAL IN TREASURY 85,126,566 85,072,730

LIQUID INSTRUMENTS

INVESTMENT

OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET VALUE INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME (Incl. Acc Inc.) RATE DATE MATURITY LAIF LOCAL AGENCY INVESTMENT FUND 38,393,136 38,393,136 38,472,268 455,302 38,927,570 4.710% DAILY 1

POOLED MONEY INVESTMENT ACCOUNT
38,393,136 38,393,136 38,472,268 455,302 38,927,570
MM MECHANICS BANK - MONEY MARKET 23,403,572 23,403,572 23,403,572 - 23,403,572 4.800% DAILY 1 SWEEP MECHANICS BANK - SWEEP 3,637,926 3,637,926 3,637,926 - 3,637,926 0.010% DAILY 1 MONEY MARKET ACCOUNT 27,041,498 27,041,498 27,041,498 - 27,041,498 SUBTOTAL LIQUID INSTRUMENTS: 65,434,634 65,434,634 65,513,766 455,302 65,969,068

NON-LIQUID INSTRUMENTS

INVESTMENT

OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET VALUE INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME (Incl. Acc Inc.) RATE DATE MATURITY 33715LFH8 ZIONS BANK - First Technology FCU 248,000 248,000 249,159 137 249,296 5.050% 5/27/2025 732 53052LAT6 ZIONS BANK - Liberty FCU Evansville 248,000 248,000 249,102 985 250,088 5.000% 5/27/2025 734 795451BQ5 ZIONS BANK - Sallie Mae 245,000 245,000 243,406 1,963 245,369 3.400% 7/7/2025 1,097 20825WAZ3 ZIONS BANK - Connexus Cred. Union 249,000 249,000 247,528 - 247,528 3.400% 8/15/2025 1,096 27002YFE1 ZIONS BANK - Eaglebank - Bethesda 249,000 249,000 247,305 270 247,575 3.300% 8/18/2025 1,096 30960QAV9 ZIONS BANK- Farmers Insurance Group 249,000 249,000 251,238 126 251,363 4.600% 1/26/2026 731 90352RDA0 ZIONS BANK - US Alliance FCU Rye NY 249,000 249,000 252,380 128 252,509 4.700% 5/26/2026 1,096 39573LEC8 ZIONS BANK - Greenstate Credit Unions 248,000 248,000 252,205 966 253,171 4.900% 6/1/2026 1,097 254673Q33 ZIONS BANK - Discover Bank Greenwood 245,000 245,000 242,853 1,004 243,856 3.350% 8/17/2026 1,462 22282XAF7 ZIONS BANK- Covantage Cr Un Antigo WI 247,000 247,000 248,504 1,067 249,571 4.150% 8/24/2026 731 130162AX8 ZIONS BANK- California Cr Un Glendale 243,000 243,000 249,017 1,122 250,139 5.150% 8/28/2026 1,096 444425AC6 ZIONS BANK- Hughes Fed Cr Un Tuscon Az 248,000 248,000 254,165 35 254,200 5.150% 8/31/2026 1,098 065427BG0 ZIONS BANK- Bank Utah Ogden Utah 244,000 244,000 245,494 1,809 247,303 4.100% 1/26/2027 1,096 856285G21 ZIONS BANK - State Bank of India NY 250,000 250,000 238,452 623 239,075 1.750% 2/9/2027 1,826 25844MBN7 ZIONS BANK- Dort Finl Cr Un Grand Blanc 246,000 246,000 252,698 3,042 255,739 5.000% 2/26/2027 1,278 41138NAB4 ZIONS BANK- Hapo Comnty Cr Un Richland 248,000 248,000 254,789 985 255,774 5.000% 2/26/2027 1,275 02589ABQ4 ZIONS BANK - American Express Natl 247,000 247,000 236,698 284 236,983 2.000% 3/9/2027 1,826 14042TFJ1 ZIONS BANK - Capital One 246,000 246,000 239,459 3,094 242,552 2.700% 4/13/2027 1,833 19058RAE1 ZIONS BANK- Coastal1 Cr Un Pawtucket RI 249,000 249,000 252,385 - 252,385 4.150% 1/31/2028 1,461 05580A4P6 ZIONS BANK- BMW Bk North Amer Utah 244,000 244,000 256,288 4,419 260,707 4.900% 11/17/2028 1,827

CERTIFICATES OF DEPOSIT
4,942,000 4,942,000 4,963,126 22,058 4,985,183
3133EP5S0 ZIONS BANK- Federal Farm Cr Bks 3,000,000 2,988,009 3,062,941 3,561 3,066,502 4.250% 3/20/2028 1,460 3133EP3B9 ZIONS BANK - Federal Farm Cr Bks 2,000,000 1,989,780 2,040,864 10,831 2,051,695 4.125% 2/13/2029 1,811

FEDERAL FARM CREDIT
5,000,000 4,977,789 5,103,806 14,392 5,118,198
91282CFQ9 ZIONS BANK US Treasury Notes 1,000,000 996,718 999,518 18,190 1,017,708 4.375% 10/31/2024 731 91282CKA8 ZIONS BANK- US Treasury Note 2,000,000 1,984,850 2,022,578 10,313 2,032,891 4.125% 2/15/2027 1,082

TREASURY NOTE
3,000,000 2,981,568 3,022,096 28,502 3,050,598
SUBTOTAL NON-LIQUID INSTRUMENTS: 12,942,000 12,901,357 13,089,028 64,952 13,153,980 78,376,634 78,335,991 78,602,794 520,254 79,123,048
9/30/2024 9/30/2024
520,254 462,702 83.531% 4.428% 216

CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE

WEIGHTED

AVERAGE

DAYS TO

MATURITY

QUARTERLY

ACCRUED

INTEREST AS
OF
9/30/2024
YTD

RECORDED

INTEREST AS
OF
TOTAL OF LIQUID AND NON-LIQUID INSTRUMENTS:

WEIGHTED

AVERAGE RATE

OF EARNINGS
% OF LIQUID

PORTFOLIO

HOLDINGS

CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE
9/30/2024

QUARTERLY PERFORMANCE COMPARISON - PORTFOLIO VS LAIF
6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Portfolio - weighted average rate of earnings 3.367% 3.521% 3.724% 4.074% 4.270% 4.428% LAIF - quarterly earnings rate 3.150% 3.590% 4.000% 4.300% 4.550% 4.710% Portfolio over -(under) LAIF 0.22% -0.07% -0.28% -0.23% -0.280% -0.282%

PUBLIC AGENCY RETIREMENT SERVICES (PARS) - LEGALLY RESTRICTED INVESTMENTS EXCLUDED FROM WEIGHTED PORTFOLIO PARS OPEB Public Agency Retirement Services 2,643,389 1.500% DAILY 1 PARS Pension
Trust Public Agency Retirement Services 3,051,133 1.430% DAILY 1 5,694,522

CHANGES FROM PRIOR QUARTERLY REPORT

MATURED INSTRUMENTS PAR PURCHASE INTEREST MATURITY

CERTIFICATES OF DEPOSIT VALUE PRICE RATE DATE
052392BM8 ZIONS BANK - Austin Telco Fed. Cred. Unio 249,000 249,000 3.40% 8/12/2024

NEW INSTRUMENTS PAR PURCHASE INTEREST MATURITY

CERTIFICATES OF DEPOSIT VALUE PRICE RATE DATE
22282XAF7 ZIONS BANK- Covantage Cr Un Antigo WI 247,000 247,000 4.15% 8/24/2026 Portfolio holdings as of the quarter ended Sept 30, 2024, are in compliance with the current Investment Policy. With 83.531% of the portfolio held in liquid instruments, allowing the City to meet cash flow needs for at least six months, in compliance with the investment policy approved by the City Council in Sept 2024. The investment policy will be updated annually as required by state law.

LIQUID INSTRUMENTS

INVESTMENT

OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET W/ INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME ACCRUED INC. RATE DATE MATURITY LAIF LOCAL AGENCY INVESTMENT FUND 38,848,438 38,848,438 38,833,753 451,818 39,285,571 4.62% DAILY 1 POOLED MONEY INVESTMENT ACCOUNT:
38,848,438 38,848,438 38,833,753 451,818 39,285,571
MM MECHANICS BANK - MONEY MARKET 25,686,383 25,686,383 25,686,383 - 25,686,383 4.67% DAILY 1 SWEEP MECHANICS BANK - SWEEP 4,613,148 4,613,148 4,613,148 - 4,613,148 0.01% DAILY 1 MONEY MARKET ACCOUNT: 30,299,531 30,299,531 30,299,531 - SUBTOTAL LIQUID INSTRUMENTS: 69,147,969 69,147,969 69,133,284 451,818 39,285,571

NON-LIQUID INSTRUMENTS

INVESTMENT

OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET W/ INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME ACCRUED INC. RATE DATE MATURITY 33715LFH8 ZIONS BANK - First Technology FCU 248,000 248,000 248,800 172 248,972 5.05% 5/27/2025 147 53052LAT6 ZIONS BANK - Liberty FCU Evansville 248,000 248,000 248,774 1,019 249,793 5.00% 5/27/2025 147 795451BQ5 ZIONS BANK - Sallie Mae 245,000 245,000 243,974 4,062 248,036 3.40% 7/7/2025 188 20825WAZ3 ZIONS BANK - Connexus Cred. Union 249,000 249,000 247,865 - 247,865 3.40% 8/15/2025 227 27002YFE1 ZIONS BANK - Eaglebank - Bethesda 249,000 249,000 247,660 293 247,952 3.30% 8/18/2025 230 30960QAV9 ZIONS BANK- Farmers Insurance Group 249,000 249,000 250,244 157 250,401 4.60% 1/26/2026 391 90352RDA0 ZIONS BANK - US Alliance FCU Rye NY 249,000 249,000 251,086 160 251,247 4.70% 5/26/2026 511 39573LEC8 ZIONS BANK - Greenstate Credit Unions 248,000 248,000 250,786 999 251,785 4.90% 6/1/2026 517 254673Q33 ZIONS BANK - Discover Bank Greenwood 245,000 245,000 242,230 3,056 245,286 3.35% 8/17/2026 594 22282XAF7 ZIONS BANK- Covantage Cr Un Antigo WI 247,000 247,000 247,386 1,067 248,453 4.15% 8/24/2026 601 130162AX8 ZIONS BANK- California Cr Un Glendale 243,000 243,000 247,314 4,251 251,564 5.15% 8/28/2026 605 444425AC6 ZIONS BANK- Hughes Fed Cr Un Tuscon Az 248,000 248,000 252,403 70 252,473 5.15% 8/31/2026 608 065427BG0 ZIONS BANK- Bank Utah Ogden Utah 244,000 244,000 244,305 4,330 248,636 4.10% 1/26/2027 756 856285G21 ZIONS BANK - State Bank of India NY 250,000 250,000 238,612 1,726 240,338 1.75% 2/9/2027 770 25844MBN7 ZIONS BANK- Dort Finl Cr Un Grand Blanc 246,000 246,000 250,941 3,042 253,983 5.00% 2/26/2027 787 41138NAB4 ZIONS BANK- Hapo Comnty Cr Un Richland 248,000 248,000 252,977 1,019 253,996 5.00% 2/26/2027 787 02589ABQ4 ZIONS BANK - American Express Natl 247,000 247,000 236,672 1,529 238,202 2.00% 3/9/2027 798 14042TFJ1 ZIONS BANK - Capital One 246,000 246,000 238,985 1,438 240,423 2.70% 4/13/2027 833 19058RAE1 ZIONS BANK- Coastal1 Cr Un Pawtucket RI 249,000 249,000 250,082 - 250,082 4.15% 1/31/2028 1,126 05580A4P6 ZIONS BANK- BMW Bk North Amer Utah 244,000 244,000 251,777 1,453 253,230 4.90% 11/17/2028 1,417

CERTIFICATES OF DEPOSIT
4,942,000 4,942,000 4,942,874 29,843 4,972,717
3133EP5S0 ZIONS BANK - Federal Farm Cr Bks 3,000,000 2,988,009 2,988,208 35,615 3,023,823 4.250% 3/20/2028 1,175 3133EP3B9 ZIONS BANK - Federal Farm Cr Bks 2,000,000 1,989,780 1,977,392 31,571 2,008,963 4.125% 2/13/2029 1,505

FEDERAL FARM CREDIT
5,000,000 4,977,789 4,965,600 67,186 5,032,786
91282CKA8 ZIONS BANK- US Treasury Note 2,000,000 1,984,850 1,994,375 30,938 2,025,313 4.125% 2/15/2027 776 U.S. TREASURY NOTES & BONDS
2,000,000 1,984,850 1,994,375 30,938 2,025,313
SUBTOTAL NON-LIQUID INSTRUMENTS: 11,942,000 11,904,639 11,902,849 127,966 12,030,815 81,089,969 81,052,608 81,036,133 579,784 51,316,386
12/31/2024 12/31/2024
579,784 1,720,876 85.312% 4.303% 137

QUARTERLY

ACCRUED

INTEREST AS
OF

CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE

WEIGHTE
D

AVERAGE

DAYS TO

MATURITY

WEIGHTED

AVERAGE

RATE OF

EARNINGS
12/31/2024
YTD

RECORDED

INTEREST AS
OF
% OF LIQUID

PORTFOLIO

HOLDINGS
TOTAL LIQUID AND NON-LIQUID INVESTMENTS: