Morro Bay City Council
June 24, 2025

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, June 24, 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. Morro Elementary School

5. RECOGNITION AND PRESENTATIONS

5.a Proclamation declaring July 2025 as "Parks Make Life Better Month"

5.b Proclamation recognizing the 30th Anniversary of the Morro Bay National Estuary Program

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:
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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.
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All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
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The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
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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.
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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.
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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.i as submitted.

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

1. May 27 ,2025 - Regular Council Meeting 8

2. June 10, 2025 - Special Closed Session Meeting 18

7.b Proclamations
(City Clerk)
Recommended Action
Approve as submitted.

1. Proclamation declaring July 2025 as "Parks Make Life Better Month"
20 2. Proclamation recognizing the 30th Anniversary of the Morro Bay National Estuary Program
21 7.c Approval of SB-1 Funding Project List for FY 25/26 Pavement Management Plan Project
22 (Public Works Department)
Recommended Action
Adopt Resolution No. 33-25 approving the Fiscal Year 2025/26 project list for use of Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funds.

7.d Approve Professional Services Agreement for RRM Design Group for Design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road
27 (Public Works Department)
Recommended Action
Approve and authorize the City Manager to execute a professional services agreement with RRM Design Group to provide design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road in an amount not to exceed $213,172,

which includes a 5% contingency.

7.e Authorization to Enter into a FY 2025-26 Oil Spill Response Equipment Staging Grant Funding Agreement with the Department of Fish and Wildlife (CDWF) in the Amount of $5,000.00
58 (Harbor Department)
Recommended Action
Adopt Resolution No. 34-25 authorizing the Harbor Director to enter into a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with the CDFW in the Amount Of $5,000.00.

7.f Adoption of Resolution No. 35-25 Authorizing a FY 24/25 Budget Adjustment Transferring Monies from the Transit Operating Fund to the Pavement Management Program
71 (Public Works Department)
Recommended Action
Adopt Resolution No. 35-25 authorizing a FY24/25 budget adjustment as a transfer of $400,000 from the Transit Operating Fund to the General Capital Improvement Fund for the purposes of contributing to the Pavement Management Program.

7.g Monetary donation from the Friends of the Morro Bay Fire Department 75 (Fire Department)
Recommended Action
Authorize the City Manager to execute an agreement, accepting the financial donation from the Friends of the Morro Bay Fire Department in the sum of $15,414. to be used for the purpose of completing design and construction documents for the Bonita Street Fire Station #2 Project.

7.h WRF Quarterly Report, Recycled Water Conceptual Design Report, WRF EIR Addendum #2, Recycled Water Implementation Strategy, and Contract Amendments
80 (Public Works Department)
Recommended Action
Staff recommends the City Council:

Receive and file the Fiscal Year 2025 Quarter 3 WRF Quarterly Report (Jan 1 – Mar 31);

1. Receive and file the Conceptual Design Report (CDR) for the Recycled Water Project;

2. Approve the Final Environmental Impact Report (EIR)
Addendum #2 for the Water Reclamation Facility (WRF)
Program;

3.

Approve the Updated Recycled Water Implementation Strategy Recommendations; and

4. 5. Approve and authorize the City Manager to execute:

An amendment to a professional services agreement with
Confluence Engineering Solutions (ConfluenceES) to
provide recycled water program management support
services for Fiscal Year (FY) 2025/26 for the WRF
Program in the amount of $356,772 for a not-to-exceed
agreement amount of $1,324,304, and to extend the
agreement term to June 30, 2026;

1. An amendment to a professional services agreement with GSI Water Solutions, Inc. (GSI) to provide hydrogeological support services in the amount of $397,100 for a not-toexceed agreement amount of $1,737,463, and to extend the agreement term to December 31, 2026; and

2. An amendment to a professional services agreement with Far Western Anthropological Research Group, Inc. to
provide services for archaeological investigations for the Recycled Water Project and Wastewater Treatment Plant
(WWTP) Decommissioning and Demolition in the amount
of $129,817 for a not-to-exceed agreement amount of
$1,174,550.01, and to extend the agreement term to
December 31, 2026.

3. 7.i Approval of Professional Services Agreement with Anchor QEA for the Wastewater Treatment Plant Decommissioning and Demolition Engineering Design
141
(Public Works Department)
Recommended Action
Approve and authorize the City Manager to execute a
professional services agreement in the amount of $901,000. with Anchor QEA (A-QEA) for the design services for the Wastewater Treatment Plant (WWTP) Demolition and
Decommissioning project; and

1. Authorize the City Manager to approve contract amendments, if needed, up to a 5% contingency ($45,050), for a total not-toexceed amount of $946,050.

2. 8. PUBLIC HEARING ITEMS

8.a Adoption of Resolution No. 36-25 Directing the Levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District
238

(Public Works Department)
Recommended Action
Conduct the public hearing and approve the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) by adopting Resolution No. 36-25.

8.b Adoption of Resolution No. 37-25 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District
243
(Public Works Department)
Recommended Action
Conduct the public hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District (LLMAD) by adopting Resolution No. 37-25.

9. BUSINESS ITEMS

9.a Resolutions Approving Fiscal Year (FY) 25-26 operating and Capital Budgets; FY 24-25, FY 25-26 and FY 26-27 Salary Schedules; New Job Classifications; Investment Policy; and FY 25-26 GANN Appropriations Limit
247
(Finance Department)
Recommended Action
Staff recommends the City Council:

Adopt Resolution No. 38-25 adopting the (FY) 2025-26
Operating and Capital Budgets; and

1. Adopt Resolution No. 39-25 approving Utilities Project Manager, Collections and Pretreatment Operator, and Water Resources Compliance Specialist Classifications and Job Descriptions; and

2. Adopt Resolution No. 40-25 approving the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules; and

3. Adopt Resolution No. 41-25 approving the Compensation and Benefits for the Unrepresented Management Designated
Employees for 2024-25 through 2026-27; and

4. Adopt Resolution No. 42-25 readopting the City’s Investment Policy; and

5. Adopt Resolution No. 43-25 setting the FY 2025-26 GANN Appropriations Limit at $37,744,894.

6. 9.b Short-term Rental Ordinance Implementation - Quarterly Update 330

(Community Development Department)
Recommended Action
Receive and file a quarterly update on the Community Development Department’s progress in implementing the City’s Short-term Rental Ordinance through permit annual renewal process, and resume issuance of commercially zoned STR permits, and provide staff direction as necessary.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The next Regular Meeting will be held on July 22, 2025.

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

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

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

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
May 27, 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: Interim City Attorney Robert Schultz
City Clerk Dana Swanson
Finance Director Emily Conrad
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Vitality Director Chris Munson
City Engineer Cindy Cecil
_____________________________________________________________________

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

The Mayor announced, due to the large number of speakers, general public comment would be two minutes per person and a total of 30 minutes. Public comment for other items on the agenda would also be limited to two minutes each.

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report
https://youtu.be/0Q3Cn5KGwVc?si=OcdWy7yodEjKcQlO&t=113
Interim City Attorney Schultz announced no reportable action was taken in closed session.

2 4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/0Q3Cn5KGwVc?si=EdZK7trRpMECsHDS&t=136

4.c City Manager Reports, Announcements and Presentations None

4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/0Q3Cn5KGwVc?si=GWRkAPhO05J840E_&t=1079 a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA
b. Morro Bay Power Plant (Vistra)
c. Offshore Wind Energy
d. Morro Elementary School

5. RECOGNITION AND PRESENTATIONS

5.a Hunger Awareness Day Proclamation
https://youtu.be/0Q3Cn5KGwVc?si=FEK_JRwTdfWQ0yyY&t=1157 Presented to SLO Food Bank Chief Operating Officer, Andrea Keisler.

6. PUBLIC COMMENT
https://youtu.be/0Q3Cn5KGwVc?si=-28AfhikqsvWk-6o&t=1452  Asa Selverston, Morro Bay High School student, commented in favor of a roundabout at Hwy 41/Hwy 1/Main Street.
 Doug Rogers, Morro Bay, spoke in support of the proposed roundabout.  Kiernan Cottle, Morro Bay, offered comments regarding flying the Pride Flag.
 Jeff Heller, Morro Bay, commented in support of staff recommendation for Item 9.a.
 Courtney Shepler, Morro Bay, encouraged those in attendance to create an inviting and welcoming place for all speakers.
 Lynda Merrill, Morro Bay, spoke in support of completing the environmental report discussed in Item 9.a., and expressed concern about reduced funding for food insecure residents.
 Linda Winters, Morro Bay, reported over 100 people attended this week's Monday night dinner.

3  Betty Winholtz, Morro Bay, apologized to those high school students who had taken offense to her comments regarding high school students.  Bev Shaw, Morro Bay, supported continued discussion of the roundabout.  Carol Swain, Morro Bay, shared the San Luis Coastal Unified School District President and Superintendent sent a letter strongly urging the City to go forward with the roundabout.
 Jamison Winstead, Morro Bay High School student, spoke to his experience as a pedestrian at the Hwy 41/Main Street intersection and supported a roundabout.
 Nancy Teeter, Morro Bay, expressed concern about fire danger in our city and suggested the weed abatement ordinance be amended to require vacant lots be cleared more than once a year.

End of public comment.

7. CONSENT AGENDA
https://youtu.be/0Q3Cn5KGwVc?si=x-DFS8nkw2glF3MM&t=2627 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.
 Jenn Fields, San Luis Obispo, spoke in support of the Pride Month proclamation, expressing concern the word 'transgender' was omitted in the 2nd Whereas statement.
 Willow Kawamoto, Morro Bay, was disappointed the Council voted to not raise the Pride Flag during the month of June and transgender was overlooked in the proclamation.
 Shell Voorhees, Morro Bay, was in favor of raising the Pride Flag, noting the need for equality.
 Aimee Brantley, Morro Bay, requested the Council reconsider its decision to not fly the Pride Flag during the month of June.
 Linnea Valdivia, GALA Program Manager, appreciated the Pride Month Proclamation but was disappointed by the Council's 5-0 vote to discontinue flying the Pride Flag.
 Danielle Capodieci, Los Osos, was sad to hear Morro Bay chose to no longer fly the Pride Flag.
 Mary Norman, Morro Bay, was disappointed by the City's decision to not fly the Pride Flag.

End of public comment.

4 Mayor Pro Tem Edwards pulled Item 7.b, read the Pride Month Proclamation aloud, and invited the community to attend a ceremonial raising of the Pride Flag Monday, June 2nd, at 9:00 a.m. in front of City Hall.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Approve Consent Agenda items 7.a and 7.c 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. May 13, 2025 - Special Closed Session Meeting

7.b Proclamations
Motion by Mayor Wixom
Seconded by Council Member Luffee
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
a. Proclamation declaring June 2025 as Pride Month
b. Proclamation declaring June 6, 2025 to be "Hunger Awareness Day"

7.c Presentation of Allocation of Water Equivalency Units (WEU) for Fiscal Year (FY) 2025/26
Adopt Resolution No. 29-25 to allocate 50 WEUs for residential development (30 single-family residential (SFR) and 20 multi-family residential (MFR)) and 65 for commercial development for a total of 115 WEUs for FY2025/26.

8. PUBLIC HEARING ITEMS

8.a Approving the Incurring of a Tax Exempt Obligation by the Housing Authority of the City of San Luis Obispo (HASLO) for the Purpose of Providing Financing for the Development of Morro Bay Apartments (405 Atascadero Road)
https://youtu.be/0Q3Cn5KGwVc?si=hdcieMN4RkRjiThY&t=4078

5 Introduced by Community Development Director Singewald, who turned to Jim Rendler from HASLO to present the report.

Mayor Wixom opened the public hearing and public comment for Item 8.a.  Nic De Angelis, Morro Bay, raised questions about maintenance issues and other potential impacts.

Mr. Rendler responded to questions raised during public comment.

End of public comment. The public hearing was closed.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Adopt Resolution No. 28-25 allowing the reissuance of a tax-exempt obligation by the Housing Authority of the City of San Luis Obispo (HASLO), for the purpose of providing financing for the construction of multifamily affordable rental housing located in the City (the "Project") ; provide consent to the operation by HASLO within the boundaries of the City in connection with the financing, development, and operation of the affordable rental housing, such adoption of the resolution is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 et seq.

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

8.b Ordinance No. 671, amending the Morro Bay Municipal Code Chapter

14.08.080 to adopt the California State Fire Marshal Fire Hazard Zone Map for Morro Bay
https://youtu.be/0Q3Cn5KGwVc?si=FdZDRO1soRrdXBb5&t=4625 Fire Chief McCrain presented the report and responded to Council inquiries.

Mayor Wixom opened the public hearing and public comment for Item 8.b. https://youtu.be/0Q3Cn5KGwVc?si=rj6dW28sYo7_GGmn&t=5609  Tina Metzger, Morro Bay, requested further information regarding fuel hazard removal at Cerrito Peak.
 Barry Branin, Morro Bay, hoped brush along Quintana would be cleaned up.
 Betty Winholtz, Morro Bay, inquired about the proposed Cerrito Peak fuel hazard removal and suggested the City issue a side letter to the State Fire Marshal.

6  Margaret Carman, Morro Bay, supported a letter to the State Fire Marshal requesting some flexibility.

End of public comment. The public hearing was closed.

Staff responded to issues raised during public comment.

Mayor Wixom was interested in opportunities to communicate the City's concerns to the state.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Introduce for first reading by title only, with further reading waived, Ordinance No.671, “An Ordinance of the City Council of the City of Morro Bay, California, Repealing and Replacing Chapter 14.08.080 of Title 14 (“Buildings and Construction”) of the Morro Bay Municipal Code relating to Fire Hazard Severity Zones” with adoption of the California State Fire Marshal Fire Hazard Severity Zone map for the City of Morro Bay as required by Senate Bill 63 and Government Code 51178.5; and send a letter on behalf of the City to the State expressing the City's concerns.

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

9. BUSINESS ITEMS
The Council took a brief recess at 7:14 p.m. and reconvened at 7:29 p.m. with all members present.

9.a Reconsideration of Vote on Roundabout Environmental Work and Consideration of Project Next Steps
https://youtu.be/0Q3Cn5KGwVc?si=DmJCUnmjS71xBvY_&t=6275 Public Works Director Kwolek and City Engineer Cecil presented the report and, along with Joe Erwin from Caltrans, responded to Council inquiries.

Mayor Wixom opened public comment for Item 9.a.
https://youtu.be/0Q3Cn5KGwVc?si=z4dIsrDS6-gQ6Ucf&t=9115  Wyatt Bath, Morro Bay, expressed safety concerns regarding the proposed roundabout.
 Antonella Salemi, Morro Bay, believed the roundabout would be a positive thing for our community.
 Shea Dawson, Morro Bay, spoke in support of a roundabout.

7  Eli Waldman, Los Osos, suggested a roundabout is a safer alternative for new drivers.
 Hayden Harester, Morro Bay, believed a roundabout would improve traffic flow.
 Sofia Steen, Los Osos, expressed safety and environmental concerns about the existing 4-way stop and supported the roundabout alternative.
 Peggy Mandeville, Morro Bay, urged the Council to make move forward with the roundabout.
 John Mandeville, Morro Bay, understood different kinds of information were being presented and urged the Council to apply the right kind of information to this decision.
 Jane Van Koehe, Morro Bay, supported the idea of a roundabout and believed the concerns being expressed could be resolved.  Bill Woodson, Morro Bay, commented in favor of roundabout.  Jane Heath, Morro Bay, spoke in favor of building a roundabout, adding the public comment period after the draft environmental study was complete would be the opportunity to weigh in and ensure the best project.
 Nicole Dorfman, Morro Bay, expressed safety and capacity concerns.
 Jamie Irons, Morro Bay, urged Council to move forward as quickly as possible with the environmental study.
 Tina Metzger, Morro Bay, stated a roundabout is the wrong project for Hwy 41/Main Street intersection.
 Courtney Shepler, Morro Bay, commented in favor of roundabout.  Jeanne Marie Colby, Morro Bay, opposed the roundabout, adding her concerns about pedestrian and bicycle safety.
 Colby Crotzer, Morro Bay, spoke in favor of transferring the project to SLOCOG to complete the environmental work.
 Susan Flewelling, Morro Bay, spoke in support of contributing $60,000 to complete the environmental work and urged the City to participate with SLOCOG and Caltrans as the project moves forward.
 Tim Crowley, Morro Bay, encouraged the Council to finish the project, preferring to keep it in house rather than transfer to SLOCOG.

8  Chris Robles, Morro Bay, strongly urged the Council to reconsider its previous vote and move forward with the project.
 Michelle Leicester-Cadaret, Morro Bay, opposed the roundabout, expressing concerns about pedestrian safety and the location being in a tsunami and flood area. She suggested shutting the northbound offramp would ease traffic concerns.
 Shoosh Crotzer, Morro Bay, offered her support in favor of a roundabout.
 David Betonte, Morro Bay, preferred the Council rescind its previous vote and direct staff to continue the environmental work to keep some level of control of the project.
 Betty Winholtz, Morro Bay, opposed moving forward with a roundabout.
 Cindy Betonte, Morro Bay, respectfully requested the Council direct staff to complete the environmental study or transfer the project to SLOCOG.
 Josh Waldman, Morro Bay High School Teacher, echoed comments in favor of a roundabout and encouraged the Council to move forward with the project.
 Margaret Carman, Morro Bay, urged the Council to stop the project and seek safer and cheaper alternatives.
 Linda Donnelly, Morro Bay, opposed the roundabout and advocated for the safety of students and pedestrians.
 Cal Myers, Morro Bay, urged the Council to keep its commitment to complete the Environmental Impact Study.
 Owen Schappe recommended moving forward with the
environmental work and complete plans to see if it's a feasible project.
 Nic De Angelis, Morro Bay, noted his opinion of the project had changed listing to testimony provided and urged the Council to take advantage of funding being offered by SLOCOG and Caltrans.  Shirley Frasier, Morro Bay, preferred controlled access points and expressed concern a roundabout would increase traffic speed.  Judy Setting, Morro Bay, urged the City to upgrade the current 4- way stop with crosswalks built to ADA standards.

End of public comment.

9 Mayor Wixom sought and received Council consensus to go past 9:30 p.m. to complete this item.

Council Member Landrum remained opposed to a roundabout at this intersection and believed a pedestrian bridge and flood mitigation should be included with the project.

Council Member Edwards was supportive of moving forward with the environmental impact study.

Council Member Eckles shared he had done a lot of research and watched previous meetings on this subject. After listening to constituents and staff analysis, he supported moving the process forward so the City can properly evaluate project design at the appropriate time.

Mayor Wixom agreed with some of the comments made, noting the importance of addressing safety concerns and traffic flow on the west side of Highway 1.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Reaffirm the April 22, 2025, vote to discontinue environmental work on the roundabout, and:

1. Adopt Resolution No. 30-25 to request the San Luis Obispo Council of Governments to complete the roundabout project environmental documents; and

2. Transfer development impact fee funding to the SLOCOG for finalization of the roundabout project environmental phase at a notto-exceed amount of $60,000 and authorize the City Manager to develop and execute an agreement to effectuate such transfer.

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

9.b Community Risk Assessment and Standards of Cover for the Morro Bay Fire Department
https://youtu.be/0Q3Cn5KGwVc?si=bu17d-ZoN3zxLjeA&t=14668 This item was continued to the June 10, 2025 Regular Meeting.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Mayor Wixom requested and received full support to revisit Council Policies & Procedures to address cell phones and other items.

10 Council Member Eckles asked if this was the appropriate time to address interim pedestrian safety enhancements at the Hwy 41/Hwy 1/Main Street intersection.

Staff suggested this question be raised during the Budget Study Session.

11. ADJOURNMENT
The meeting adjourned at 9:52 p.m.
/s/ Dana Swanson, City Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
June 10, 2025, 3:00 p.m.

City Hall Conference Room
595 Harbor Street, 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
Public Works Director Greg Kwolek
Harbor Vitality Director Chris Munson
Human Resources/Risk Manager Rachael Hendricks
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:00 p.m. with all members present.

2. SUMMARY OF CLOSED SESSION ITEMS

3. CLOSED SESSION PUBLIC COMMENT
Mayor Wixom opened public comment for items on the agenda.  Paul Gillen shared his requested lease terms for Bayside Landing, noting the importance this lease not be deemed in conflict with businesses Associated Pacific Contractors operates at other locations.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: Lease Sites 49/49W, 50-51/50W-51W and 52/52W, Bayside Landing, located at 431, 451, and 495 Embarcadero Road
Property Negotiator: Paul Gillen, Associated Pacific Constructors Agency Negotiators: Chris Munson, Harbor Vitality Director; Yvonne Kimball, City Manager; Rob Schultz, Interim City Attorney

2 Negotiations: Price and Terms of Payment

4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: APN 066-331-032, -033, and -034; 160 and 180 Atascadero Road and 1700 Embarcadero
Property Negotiator: Cayucos Sanitary District
Agency Negotiators: Greg Kwolek, Public Works Director; Yvonne Kimball, City Manager; Rob Schultz, Interim City Attorney
Negotiations: Price and terms of payment

4.c PUBLIC EMPLOYEE EMPLOYMENT
City Attorney pursuant to Government Code Section 54957

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session and City Manager Kimball reported the Council did not take any reportable action pursuant to the Brown Act.

6. ADJOURNMENT
The meeting adjourned at 5:23 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
DECLARING JULY 2025
AS “PARKS MAKE LIFE BETTER MONTH”

CITY COUNCIL
City of Morro Bay, California
WHEREAS, Parks and Recreation promotes physical, emotional, and mental health and wellness through organized and self-directed fitness, play, and activity; and WHEREAS, Parks and Recreation supports the economic vitality of communities by partnering with local businesses and non-profits, and offering events for resident’s engagement; and WHEREAS, Parks and Recreation creates memorable experiences through youth sports and enrichment activities, teen centers and programs, senior activity centers, adult fitness and enrichment programs, free community events, and beyond; and
WHEREAS, Parks and Recreation fosters social cohesiveness in communities by celebrating diversity, providing spaces to come together peacefully, modeling compassion, promoting social equity, connecting social networks, and ensuring all people have access to its benefits; and WHEREAS, Parks and Recreation supports human development and endless learning opportunities that foster social, intellectual, physical, and emotional growth in people of all ages and abilities; and
WHEREAS, Parks and Recreation strengthens community identity by providing facilities and services that reflect and celebrate community character, heritage, culture, history, aesthetics, and landscape; and
WHEREAS, Parks and Recreation facilitates community problem and issue resolution by providing safe spaces to come together peacefully and serving as key points of service, helping our communities heal both physically and emotionally; and
WHEREAS, Parks and Recreation sustains and stewards our natural resources by protecting habitats and open space, connecting people to nature, and promoting the ecological function of parkland; and
WHEREAS, Parks and Recreation supports safe, vibrant, attractive, progressive communities that make life better through positive alternatives offered in their recreational opportunities; and WHEREAS, Parks and Recreation remains versatile and innovative in providing vital services to communities through local, national, or global emergencies, all while adhering to guidelines set forth by governing agencies; and
WHEREAS, The California Park & Recreation Society has released a statewide public awareness campaign, “Parks Make Life Better!®” to inform citizens of the many benefits of utilizing parks, facilities, programs, and services.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Morro Bay recognize the importance of access to local parks, trails, open space, and facilities for the health, wellness, development, inspiration, and safety of all residents and declares July 2025 as “Parks Make Life Better!®” Month.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 24
th day of
June 2025

CARLA WIXOM, MAYOR
City of Morro Bay, California Page 20 of 335

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
RECOGNIZING THE 30TH ANNIVERSARY OF THE

MORRO BAY NATIONAL ESTUARY PROGRAM

CITY COUNCIL
City of Morro Bay, California
WHEREAS, because of the large number of species which rely on Morro Bay and the strong support of local leaders, in 1994, California Governor Pete Wilson signed legislation naming Morro Bay the first State Estuary; and,
WHEREAS, on July 6, 1995, the U.S. Environmental Protection Agency (U.S. EPA) announced that it had chosen the Morro Bay Watershed for inclusion in the U.S. EPA’s National Estuary Program, which was established by Congress in the 1987 amendments to the Clean Water Act; and
WHEREAS, the Clean Water Act requires each National Estuary Program to develop and implement a Comprehensive Conservation and Management Plan, defining the priority issues facing the health of the Morro Bay estuary and watershed and present action plans to effectively address those issues; and
WHEREAS, through the National Estuary Program, the U.S. EPA focuses on the resources of state, local, and federal agencies on planning coordinated conservation measures to protect these fragile, highly productive coastal ecosystems; and WHEREAS, the Morro Bay National Estuary Program works to protect and restore Morro Bay and its watershed by conducting monitoring and research to track the health of the estuary, repairing natural habitats to protect water quality and wildlife, and educating residents and visitors on how to be good stewards of the bay; and,
WHEREAS, the Morro Bay estuary is a national and state treasure, a vital ecological resource whose health affects our health and the vibrancy of our community and economy; and, WHEREAS, the Morro Bay National Estuary Program brings together the community, local governments, nonprofits, agencies, and landowners to protect and restore the Morro Bay estuary and lands that surround it.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does hereby celebrate the Morro Bay National Estuary Program for 30 years of protecting and restoring the Morro Bay Estuary.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 24
th day of
June 2025

CARLA WIXOM, MAYOR
City of Morro Bay, California

Prepared By: ___CC Dept Review: GK
City Manager Review: _YK_____ City Attorney Review: ___RWS__ Staff Report
TO: Honorable Mayor and City Council DATE: June 16, 2025 FROM: Cindy Cecil, P.E. – City Engineer
SUBJECT: Approval of SB-1 Funding Project List for FY 25/26 Pavement Management Plan Project

RECOMMENDED ACTION
Adopt Resolution No. 33-25 approving the Fiscal Year 2025/26 project list for use of Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funds.

ALTERNATIVE
The Council could choose not to approve use of Senate Bill 1 (SB-1) funding. The City may lose its ability to receive SB-1 funds from the State if projects have not been identified through a resolution passed by City Council.

FISCAL IMPACT
Funding from multiple sources, including SB-1 funds, for the Annual Pavement Management Project is included in the adopted Budget for Fiscal Year 2025/26 (FY25/26). The City anticipates approximately $276,982 in revenue from the State due to the continued implementation of SB-1 for the upcoming fiscal year. No local matching funds are required to receive this year’s SB-1 funding allocation; however, the City must keep in good standing with its commitment on MOE (Maintenance of Effort) over time to qualify for the continued receipt of SB-1 funds. In addition to SB-1 funds, the City Council may budget $1,000,000 from Measure Q&E, $1,000,000 from the General Fund, and $400,000 from the Transit Fund for the FY25/26 pavement management project as part of two separate agenda items during this same City Council meeting.

BACKGROUND/ DISCUSSION
The Road Repair and Accountability Act of 2017, SB-1, was passed by the State Legislature and signed into law by the Governor in April 2017. The purpose of the bill is to help State and local agencies address transportation funding shortfalls. SB-1 has generated revenue through increases in gas tax, vehicle registration fees, and fees on zero emission vehicles. The tax and fee rate increases were initiated on November 1, 2017, with final implementation of all the rate and fee increases completed in July 2020.

One of the major components of SB-1 is the RMRA, which is the revenue stream set aside for the maintenance and rehabilitation of roadways. SB-1 generates over $5 billion annually at full implementation for the State, $1.5 billion of which will be distributed to local agencies and counties AGENDA NO: 7.c
MEETING DATE: June 24, 2025

through the RMRA. The City of Morro Bay is projected to receive $276,982 in revenue from the RMRA for FY25/26. Revenue has remained steady for the last 2-3 years between $250,000-$300,000 of state funds dedicated to Morro Bay roadway projects.

SB-1 includes accountability and transparency provisions to enable local residents to remain aware of the projects proposed to be funded by SB-1 in their local area. As part of these provisions, it is a requirement for local agencies to adopt project lists before the start of every fiscal year. The project list must include all projects proposed to receive funding from the RMRA. The required list includes a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. Per the requirements of SB-1, the list must be approved by the City Council through resolution and sent to the California Transportation Commission (CTC) no later than July 1, 2025, to be eligible for RMRA funding for the current fiscal year.

The primary focus of the RMRA is maintenance of the existing infrastructure within the City’s rightsof-way. Other transportation funding sources, such as Measure Q and E, General Fund, Growth Mitigation, and other grant programs are available for capital expenditures through the normal budget process. Project selection is developed by the Public Works Department utilizing the City’s pavement management system, Street Saver, in coordination with recommendations from Public Works staff and engineering/pavement consultants. Streets that are heavily traveled generally will be prioritized because of the high volume of usage by the public. Critical point management, which a prioritization strategy that targets roads that are at the bottom of one category of maintenance before they fall into another more costly treatment category, is widely used by many jurisdictions and is a factor in Morro Bay’s street selection. These strategies are standard best practices for pavement management and are incorporated to utilize the limited funds on streets that will have the best possible impact on the pavement condition index (PCI) of the City’s collective road network. Additionally, when possible, the City will make efforts to distribute projects equitably geographically in the community.

For the FY 25/26 pavement management project, staff expects to bring a design consultant on board before the end of the 2025 calendar year with the final design expected in March 2026. City staff expects to advertise for construction bids in April 2026. The project will include base material dig outs, where required based on road condition, placement of a 1/2 inch to 1 inch leveling course, and 1-4 inches of overlay and sealing. Construction is expected to begin in September 2026 and be complete by December 2026.

The City’s FY 25/26 pavement project includes a $2,676,982 budget with $276,982 coming from SB1 grant funding, $1,000,000 from Measure Q&E, $1,000,000 from the General Fund, and the remainder from the Transit Fund. The target project for this fiscal year is rehabilitating some of the lowest pavement condition index (PCI) residential roads that are in poor and very poor condition in order to slow down the rapidly declining PCI citywide. The following project list is proposed for use of SB-1 funds in FY25/26 and illustrates the City has sufficient work to justify the SB-1 allocation:

Annual Pavement Management Project (FY 25/26)
Description:

This project consists of rehabilitating and restoring pavement on several residential/local streets in the City of Morro Bay. SB-1 funds will be used during the construction phase of the project.

Locations:

Various Streets throughout the City, some of which include:

Beachcomber St., Cedar Ave, Cuesta St., Dogwood Ave., Errol St., Hemlock Ave., Orcas St., Pacific St., Selby St. and Rennell St.

Project Costs (includes contingencies)
Design Consultant: $ 200,000
Construction: $2,326,982
Project management, testing: $ 150,000
Estimated Project Schedule: Start construction - 9/2026 Complete construction - 12/2026
Estimated Useful Life: 15-20 years (rehabilitation)

CONCLUSION
In order to meet the SB-1 funding requirements for FY25/26, staff will submit to the California Transportation Commission (CTC) the proposed project and adopted City Council resolution once approved. Submittal of this list to the CTC does not preclude the City from making modifications due to changes in circumstances and scope, such as budget, addition and subtraction of streets from final list, and bidding or Council priorities. The final project details will be reported to the CTC in the project completion expenditure report after the project is complete. The obligation by the City is to spend SB1 funds appropriately and to not reduce the amount of general fund expenditures due to the Maintenance of Effort requirements.

ATTACHMENT

1. Resolution No. 33-25

RESOLUTION NO. 33-25

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING THE FISCAL YEAR 2025/26 PROJECT LIST FOR SENATE BILL 1 (ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017) ROAD

MAINTENANCE AND REHABILITATION ACCOUNT FUNDING

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB-1 includes accountability and transparency provisions that will ensure the residents of Morro Bay are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Morro Bay must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB-1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Morro Bay will receive an estimated $276,982 in funding in Fiscal Year 2025/26 from the RMRA of SB-1; and
WHEREAS, this is the 9th year in which the City of Morro Bay is receiving RMRA funding which will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB-1; and WHEREAS, staff has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list, including public meetings with the City of Morro Bay’s Public Works Advisory Board, City Council’s and their review of the capital improvement program and Operating and Capital Budget; and WHEREAS, the City of Morro Bay consulted with Pavement Engineering, Inc. to develop the SB-1 project list to ensure revenues are being used on high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB-1 will help the City of Morro Bay maintain and rehabilitate approximately 1.2 centerline miles of roadway segments this fiscal year and additional street segments each year into the future, as SB-1 funds remain available; and WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “at-risk” condition, and this revenue both will help us increase the overall quality of our road system, as well as over the next decade, with additional local funds, may help bring our streets and roads into a better condition; and WHEREAS, the SB-1 project list and overall investment in our local streets and roads infrastructure, with a focus on basic maintenance and safety, and investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

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

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

2. The following is the proposed project that will be funded in-part or solely with fiscal year 2025/26 Road Maintenance and Rehabilitation Account revenues:

Annual Pavement Management Project (FY 25/26)
Description:

This project consists of rehabilitating and restoring pavement on several residential/local streets in the City of Morro Bay. SB-1 funds will be used during the construction phase of the project.

Location:

Various Streets throughout the City, some of which include:

Beachcomber St., Cedar Ave, Cuesta St., Dogwood Ave., Errol St., Hemlock Ave., Orcas St., Pacific St., Selby St. and Rennell St.

Estimated Project Costs (includes contingencies)
Design Consultant: $ 200,000
Construction: $2,326,982
Project management, testing: $ 150,000
Estimated Project Schedule: Start construction - 9/2026 Complete construction - 12/2026
Estimated Useful Life: 15-20 years (rehabilitation)

3. The City Council has approved funding more than the SB-1 allocation for the Project List in the FY 2025/26 budget, in accordance with City Council goals and priorities.

PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting held on the 24th day of June 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

CARLA WIXOM, Mayor
ATTEST:

DANA SWANSON, City Clerk

Prepared By: __CC__ Dept Review: GK
City Manager Review: __YK____ City Attorney Review: __RWS_____ Staff Report
TO: Honorable Mayor and City Council DATE: June 16, 2025 FROM: Cindy Cecil, PE, City Engineer
SUBJECT: Approve Professional Services Agreement for RRM Design Group for Design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road

RECOMMENDED ACTION
Approve and authorize the City Manager to execute a professional services agreement with RRM Design Group to provide design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road in an amount not to exceed $213,172, which includes a 5% contingency.

ALTERNATIVES
The City Council may:

1. Choose to not approve the professional service agreement with RRM Design Group; or

2. Provide other direction to staff.

FISCAL IMPACT
No new funding is requested for this agreement. Funding for design of the is Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road is included as part of the ADA Accessibility Upgrades Capital Project. Existing funding for the project is shown below. $ 90,000 – FY22/23 Adopted Budget from Measure E
$ 131,190 – CDBG Grants from FY22/23 and FY23/24
$ 490,000 – SLOCOG Grant approved FY22/23 Mid-year budget adjustment $ 142,261 – Carry over remaining funds from the Local Roadway Safety Plan (Account #915-8045) in FY24/25
$ 149,712 – Carry over remaining funds from the Sidewalk Improvement/Tree Replacement Project (Account #915-9827) in FY24/25
$1,003,163 Total project budget

BACKGROUND/DISCUSSION
The City received two grants including a county Community Development Block Grant (CDBG) and another grant from San Luis Obispo Council of Governments (SLOCOG) Community Betterments – Safe and Accessible Streets for All for the purpose of improving safe access and mobility for vulnerable populations in the City through improvements to existing infrastructure to encourage more usage of active transportation options by the public.

This project is required to meet objectives of both grant programs through:

1. ADA improvements to infrastructure for improved safe access for vulnerable users AGENDA NO: 7.d
MEETING DATE: June 24, 2025

2. Local safety and mobility improvements

3. Bicycle and pedestrian facility improvements

4. Improved connectivity to community activity centers

5. Improvements to congestion with modifications to signal infrastructure

6. Reduction in vehicle miles traveled with improved pedestrian and bicycle facilities

7. Increase active transportation which is beneficial to health of users and reduces greenhouse gases produced by motorized vehicles.

On March 26, 2025, staff released a request for proposals for design services for this project. The RFP closed on April 30, 2025, with the City receiving only one proposal from RRM Design Group.

Staff reviewed the proposal and determined it responsive and responsible. The proposed bid of $217,181 was negotiated to $203,021.

CONCLUSION
Staff recommends the City Council authorize the City Manager to execute this agreement with RRM Design Group to provide design services for the Multimodal Safety and Accessibility Intersection Improvements project at Main Street and Quintana Road in an amount not to exceed $213,172, which includes a 5% contingency.

ATTACHMENT

1. RRM Design Group Multimodal Safety and Accessibility Intersection Improvements Agreement

EXHIBIT A

EXHIBIT A

EXHIBIT A

EXHIBIT A

EXHIBIT A

EXHIBIT A

EXHIBIT A

EXHIBIT A

ROBERT CAMACHO SCOTT YOSHIDA CHRIS MAGDOSKU
KEVIN ANDERSONSUPPORT STAFF DEBBIE RUDD ADEN FERILLO SURVEY SURVEY SURVEY Central Coast Transportation Consulting Planner Supervisor of Surveying 250 $ per hour 235 $ per hour 230 $ per hour 180 $ per hour 150 $ per hour 288 $ per hour 158 $ per hour 215 $ per hour 335 $ per hour 165 $ per hour Task A: Pre-Design Services FEE TYPE A.1 Kickoff Meeting and Field Walk FF $ 3,872 0 $0 4 $940 4 $920 0 $0 0 $0 0 $0 4 $632 0 $0 0 $0 0 $0 A.2 Topographic Survey and Base Mapping FF $ 18,615 2 $500 3 $705 3 $690 0 $0 0 $0 0 $0 0 $0 8 $1,720 30 $10,050 30 $4,950 A.3 Boundary Survey FF $ 12,030 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 8 $1,720 16 $5,360 30 $4,950 A.4 Utility Coordination FF $ 24,160 0 $0 0 $0 10 $2,300 0 $0 30 $4,500 0 $0 0 $0 0 $0 40 $13,400 24 $3,960 Task A Value: 58,677 $ Task B: Preliminary Design Services FEE TYPE B.1 Draft 25% Concept Plan Options FF $ 31,010 4 $1,000 8 $1,880 16 $3,680 40 $7,200 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 B.2 Joint Public Works Advisory Board and Citizens Finance Advisory Committee Meeting FF $ 3,644 0 $0 4 $940 4 $920 0 $0 0 $0 4 $1,152 4 $632 0 $0 0 $0 0 $0 B.3 25% Conceptual Plan Refinement FF $ 5,750 2 $500 2 $470 2 $460 24 $4,320 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 B.4 (Optional): Citizens Finance Advisory Committee meeting FF $ 3,644 0 $0 4 $940 4 $920 0 $0 0 $0 4 $1,152 4 $632 0 $0 0 $0 0 $0 Task B Value: 44,048 $ Task C: Project Coordination Services FEE TYPE C.1 Project Coordination and Management FF $ 12,890 1 $250 32 $7,520 16 $3,680 8 $1,440 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Task C Value: 12,890 $ Task D: Final Design (PS&E) Services FEE TYPE D.1 75% Design Plan Package FF $ 30,270 1 $250 2 $470 20 $4,600 40 $7,200 80 $12,000 0 $0 0 $0 0 $0 0 $0 0 $0 D.2 75% Specifications and Cost Estimate FF $ 13,040 1 $250 2 $470 4 $920 50 $9,000 16 $2,400 0 $0 0 $0 0 $0 0 $0 0 $0 D.3 Hydrology and Hydraulics Report FF $ 12,880 0 $0 12 $2,820 2 $460 40 $7,200 16 $2,400 0 $0 0 $0 0 $0 0 $0 0 $0 D.4 Stormwater Control Plan and Operations/Maintenance Report FF $ 4,180 0 $0 2 $470 1 $230 16 $2,880 4 $600 0 $0 0 $0 0 $0 0 $0 0 $0 D.5 City Council Meeting and Presentation FF $ 3,644 0 $0 4 $940 4 $920 0 $0 0 $0 4 $1,152 4 $632 0 $0 0 $0 0 $0 D.6 100% Bid-Ready Design Plan Package FF $ 21,746 1 $250 1 $235 3 $690 30 $5,400 10 $1,500 15 $4,320 15 $2,370 0 $0 0 $0 0 $0 D.7 100% Bid-Ready Specifications and Cost Estimate for Construction FF $ 11,450 1 $250 8 $1,880 4 $920 40 $7,200 8 $1,200 0 $0 0 $0 0 $0 0 $0 0 $0 Task D Value: 97,210 $ $ 209,181 $ 8,000
$ 217,181
Traffic Engineering
lump sum per task $1,380 $17,250$0$0$0$0
Fee Footnotes Fixed fee tasks will be billed as the work progresses until the task is completed and the total amount stated in the contract for the task is invoiced. Reimbursable Expenses Incidental expenses incurred by RRM Design Group or any subconsultant it may hire to perform services for this project are reimbursed by the client at actual cost plus 10% to cover its overhead and administrative expenses. Adjustment to Hourly Billing Rates RRM reserves the right to adjust hourly rates on an annual basis. Subtotal without Optional Task Project Total Reimbursable Expenses
City of Morro Bay
Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road
Cost Proposal
April 30, 2025 Manager of Engineering Services Principal-in-Charge Lead Planner Project Manager Survey Field Team Civil Engineering Support Staff Project Engineer Survey Office Team $0$0 $5,750$0$0$0$0 $6,981$0$0

EXHIBIT C
City to contact Dig Alert, provide sewer, water, storm drain markouts & maps 15,000 3,000
49,517
40,404
200,021
203,021

EXHIBIT D

EXHIBIT D

Prepared By: ___LT_____ Dept Review: ___CM___
City Manager Review: __YK______ City Attorney Review: __RWS____ Staff Report
TO: Honorable Mayor and City Council DATE: June 13, 2025 FROM: Chris Munson, Harbor Director
SUBJECT: Authorization to Enter into a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with the Department of Fish and Wildlife (CDFW) in the Amount Of $5,000.00

RECOMMENDED ACTION
Adopt Resolution No. 34-25 authorizing the Harbor Director to enter into a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with the CDFW in the Amount Of $5,000.00.

ALTERNATIVES
There are no alternatives being offered.

FISCAL IMPACT
Approval of this $5,000 funding agreement will provide funding for the procurement of spill supplies to restock the Harbor Department’s emergency response trailer. No matching funds or out-of-pocket expenses are associated with receiving the equipment grant funding.

BACKGROUND
In Fiscal Year 2023/2024 City Council authorized the Harbor Department to apply and accept grant funding from the Office of Spill Prevention and Response in the amount of $40,000. The funding allowed the Harbor Department to obtain a mobile storage trailer for spill response, boom, absorbents, anchors, and personal protective equipment.

In addition to purchasing the spill equipment, the funding included staff training. The training consisted of basic safety and equipment deployment including:
 Health and safety concerns when deploying equipment on oil spills  Equipment familiarization
 Care, storage, and maintenance of the equipment
 Booming techniques
 Spill reporting and notification
 Decontamination of personnel and equipment
 A practical hands-on deployment of the equipment
 Limitations of the equipment
Since that time the trailer has been deployed to several emergency responses and has depleted a variety of vital response supplies.

AGENDA NO: 7.e
MEETING DATE: June 24, 2025

DISCUSSION
It’s now time to restock the mobile trailer to ensure the Harbor Department is mobile ready to response in the case of an oil spill or environmental emergency in the bay.

The mission of the local oil spill response equipment staging grant program is to provide funding to Native American tribal governments, counties, cities, and special districts in order to pre-position response equipment to protect their economic resources in the event of an oil spill.

The funding would provide an additional $5,000 to the Harbor’s operating budget for the FY 2025/2026.

CONCLUSION
Staff recommends the City Council adopt Resolution No. 34-25 accepting Oil Spill Response Equipment Staging Grant Funding.

ATTACHMENTS

1. Resolution No. 34-25

2. Sample Grant Funding Agreement

RESOLUTION NO. 34-25

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY OF MORRO BAY TO ENTER
INTO A FY 2025/2026 OIL SPILL RESPONSE EQUIPMENT STAGING SAN LUIS

OBISPO COUNTY FUNDING AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE (CDFW) IN THE AMOUNT OF $5,000.00

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City of Morro Bay applied for and was awarded an Office of Spill Prevention and Response equipment Funding Grant in the Amount of $40,000.00 in fiscal year 23/24; and
WHEREAS, the grant allowed the City’s Harbor Department the ability to utilize the funds to purchase a mobile storage trailer for spill response, boom, absorbents, anchors, personal protective equipment, and equipment deployment training; and WHEREAS, the City’s Harbor Department is now applying for funding to restock low inventory supplies for the mobile storage trailer for spill response with a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with CDFW; and
WHEREAS, the funding will allow the City’s Harbor Department to maintain rapid, high-level emergency response capabilities to safeguard the bay’s natural beauty and protect our community’s vital resources; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California as follows:

1. The City is hereby authorized to enter into a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with CDFW in the Amount of $5,000.00.

2. The City’s Harbor Director, or designee, is hereby authorized and designated to sign for and act as the City’s agent in all aspects of the grant contract agreement and amendments.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 24th day of June 2025 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

State of California - Natural Resources Agency GAVIN NEWSOM, Governor DEPARTMENT OF FISH AND WILDLIFE CHARLTON H. BONHAM, Director P.O. Box 944209
Sacramento, CA 94244-2090
www.wildlife.ca.gov
(Template v. 07/06/2022)

OFFICE OF SPILL PREVENTION AND RESPONSE

OIL SPILL RESPONSE EQUIPMENT STAGING, LOCATION

GRANT AGREEMENT NUMBER - QXXXXXXX
GRANTOR: State of California, acting by and through
The California Department of Fish and Wildlife
P.O. Box 944209
Sacramento, CA 94244-2090
GRANTEE: <Grantee Legal Name>
<Mailing Address>
<City, State Zip>
COVID-19 (Coronavirus) Requirements
Contractor/Grantee and its subcontractor(s), collectively referred to as “Contractor”, shall follow Federal, State, and local orders, guidelines and directives, and CDFW policies related to COVID-19. Contractor is required to practice physical distancing whenever possible and wear face covers in accordance with current California Department of Public Health guidelines.

In the event an individual working under this Contract exhibits COVID-like symptoms, Contractor agrees that individual will not work on this Contract unless he/she can work remotely or is quarantined for 14 days or has a negative test result. Contractor has the ability, subject to notification to CDFW’s Contract Manager and with CDFW’s approval to substitute that individual with a similarly qualified worker. If the Contractor becomes aware that an employee tests positive or has been exposed to someone who tests positive for COVID-19, the Contractor must immediately notify the CDFW Contract Manager, at a minimum of within 24 business hours. At that juncture, the Contractor may not proceed with CDFW-related work until receiving direction from the CDFW Contract Manager.

SECTION 1- LEGAL BASIS OF AWARD
Pursuant to Government Code 8670.8.3, the California Department of Fish and Wildlife (CDFW or Grantor) is authorized to enter into this Grant Agreement (Agreement) and to make an award to the <Grantee Legal Name> (Grantee) for the purposes set forth herein.

Grantee accepts the grant on the terms and conditions of this Agreement. Accordingly, Grantor and Grantee (Parties) hereby agree as follows:

SECTION 2 – GRANT AWARD

2.01 Grant: In accordance with the terms and conditions of this Agreement, including

QXXXXXXX

GRANTEE LEAGL NAME

Section 5.07 – General Terms and Conditions, Grantor shall provide Grantee with a maximum of $XX,XXX <Enter dollar amount of CDFW funds> (Grant Funds) to financially support and assist Grantee’s implementation of Oil Spill Response Equipment Staging, <Insert County> (Project).

2.02 Term: The term of this agreement is <Enter Term Start Date>, or upon approval, whichever is later, through <Enter Term Start Date>.

SECTION 3 – ELIGIBLE USES OF GRANT
Only Grantee expenditures that are necessary to implement the Project, comply with applicable federal and State of California law, and made in accordance with Section 6 – Project Statement and Section 9 – Budget and Payment as set forth within this Agreement are eligible for reimbursement from the Grant Funds.

SECTION 4 – GRANTEE’S REPRESENTATIONS AND WARRANTIES
Grantee represents and warrants to Grantor as follows:

4.01 Existence and Power: Grantee is an <ENTER APPROPRIATE TYPE: non-profit, governmental entity, etc.> validly existing, and in good standing under the laws of California. Grantee has full power and authority to transact the business in which it is engaged and full power, authority, and legal right to execute and deliver this Agreement and incur and perform its obligations hereunder.

4.02 Binding Obligation: This Agreement has been duly authorized, executed and delivered on behalf of Grantee and constitutes the legal, valid, and binding obligation of Grantee, enforceable in accordance with the Agreement’s terms.

SECTION 5 – GRANTEE’S AGREEMENTS

5.01 Purpose: This Agreement is entered into by the Parties for the purpose of providing financial support to Grantee to complete the Project, specifically the activities identified within Section 6 – Project Statement.

5.02 Project: Grantee shall complete activities as set forth in Section 6 – Project Statement.

5.03 Use of Project Funds: Grantee agrees that only Grantee expenditures that are necessary to implement the Project, comply with applicable federal and State of California law, and made in accordance with Section 6 – Project Statement and Section 9 – Budget and Payment as set forth within this Agreement are eligible for reimbursement from the Grant Funds. Grantee acknowledges that it may not transfer Grant Funds between or among budget line items without written approval from the CDFW Grant Manager in accordance with Section 9 – Budget and Payment.

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GRANTEE LEAGL NAME

5.04 Payment Schedule: Payments shall be made to Grantee according to the payment and report schedule identified in Section 9 – Budget and Payment.

5.05 Eligibility of Funds: In the event that the California Budget Act does not provide sufficient appropriations to allow Grantor to fund the Project at the level specified in Section 2 – Grant Award and Section 9 – Budget and Payment of this Agreement, Grantor reserves the right to modify this Agreement to reflect a reduction in available funds, as an alternative to termination.

5.06 Submission of Reports: Grantee shall comply with the format, content, and timing requirements set out in Section 8 – Reports. Failure to submit timely and accurate reports shall be considered evidence of non-compliance with this Agreement and shall permit termination of this Agreement by Grantor.

5.07 General Terms and Conditions: Public Entities General Grant Provisions (Exhibit

1.a) and Notice of Economic Sanctions (Exhibit 3) are attached hereto and made a part of this Agreement.

5.08 Amendments: This Agreement may only be amended in accordance with Section

5.07 – General Terms and Conditions. Grantee shall submit any request to amend any term of this Agreement in writing to the CDFW Grant Manager no later than 120 days prior to the end of the term of this Agreement. Grantee must include an explanation of and justification for any such request.

5.09 Acknowledgement of Credit: Grantee shall include signage, to the extent practicable, informing the public that the Project received funds through the CDFW.

Further, Grantee shall include appropriate acknowledgement of credit to the Office of Spill Prevention and Response (OSPR) Grant Program and its implementing agency, the CDFW, for Grantor’s financial support when using any data and/or information developed under this Agreement (e.g., in posters, reports, publications, presentations).

5.10 Labor Code Requirements; Prevailing Wage: State grants may be subject to California Labor Code requirements, which include prevailing wage provisions.

Certain State grants administered by the CDFW are not subject to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. For more details, please refer to California Fish and Game Code Section 1501.5 and the Department of Industrial Relations website at http://www.dir.ca.gov. The grantee shall pay prevailing wage to all persons employed in the performance of any part of the Project if required by law to do so.

5.11 California Business and Professions Code Compliance: Grantee shall be responsible for obtaining the services of an appropriately licensed professional or appropriately licensed professionals if required by the California Business and Professions Code, including but not limited to Section 6700 et seq. (Professional Engineers Act) and Section 7800 et seq. (Geologists and Geophysicists Act).

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If Grantee fails to perform in accordance with the compliance provisions of this Agreement, Grantor shall have sole discretion to delay, interrupt, or suspend the work for which the Grant Funds are supplied.

SECTION 6 – PROJECT STATEMENT

6.01 Introduction: During an oil spill, California operates within the Incident Command System (ICS), a mechanism used to bring multiple jurisdictions under one standard operating arena. The ICS is managed by the Unified Command, in most cases, is comprised of a designated official from the United States Coast Guard, the OSPR and the Responsible Party (Spiller); the three members make all decisions on how the oil spill incident operations are planned, executed, and demobilized.

Several Oil Spill Response Organizations (OSRO) are available to provide response and clean-up of oil spills throughout the State. However, in certain remote locations, the OSRO’s have difficulty or are unable to pre-stage response equipment. To address this problem, OSPR has established a grant program that will provide local government agencies with funding to purchase spill response equipment, so they can initiate a first response prior to the OSRO’s arrival.

6.02 Objectives: Grant funding will enhance the availability of oil response equipment around the state and will provide local governments an opportunity to protect their economic resources. Grantee will purchase the response equipment and provide training as identified in Equipment Specifications (Attachment I).

6.03 Project Description: Grantee’s Project Manager will be responsible for all aspects of the administration of this grant which include; procurement, training, staging and usage of the equipment.

6.04 Location: The equipment will be staged at the <Name of location>, located at <Building name, address, county>.

6.05 Materials and Equipment: See Equipment Specifications (Attachment I).

6.06 Project Implementation: Consistent with Grantee’s proposal for the Project, Grantee will complete the following tasks in accordance with Section 6.08 – Schedule of Due Dates and Deliverables:

Task 1 – Equipment Ordering

1. Place order per OSPR equipment specifications which is attached hereto as Equipment Specifications (Attachment I) and made a part of this agreement.

Task 2 – Equipment Delivery & Familiarization/Training
Coordinate delivery of equipment.

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GRANTEE LEAGL NAME

1. Ensure key response staff (actual staff and total number of staff, to be determined by Grantee) receives training/familiarization which should entail:
a. Health and safety concerns when deploying equipment on oil spills, b. Equipment familiarization,
c. Care, storage and maintenance of the equipment,
d. Usage as it pertains to the Local Geographic Response Plans and other pertinent strategies,
e. Decontamination of personnel and equipment,
f. A practical hands-on deployment of the equipment, and g. Limitations of the equipment.

2. Submit report to the CDFW Grant Manager with equipment staging location.

3. The CDFW Grant Manager will perform an inspection of the trailer and equipment.

Task 3 – Project Management and Administration

1. Furnish the necessary personnel, equipment, material and/or service(s) necessary for routine or incidental deployment of the equipment provided in this agreement.

2. Equipment may be deployed in the event of an oil spill within Grantee’s jurisdiction, for the shelf life of the equipment. Grantee will notify the CDFW Grant Manager within 15 days by phone or e-mail, when the equipment is used in conjunction with an oil spill response. Grantee also agrees to notify the CDFW Grant Manager if the equipment is relocated to a different staging location within the jurisdiction.

3. Provide the CDFW Grant Manager with equipment access such as facility/storage security access codes, keys to gate and trailer locks or designate staff to be on-site to allow the necessary access.

4. Grantee’s Project Manager will be responsible for all aspects of the administration of this grant, including procurement, invoicing, final reporting, training, staging, and usage of the equipment.

6.07 Schedule of Due Dates and Deliverables:

Task Description Deliverables Estimated
Completion Dates
1 Equipment Ordering Equipment DATE
2 Equipment Delivery and
Familiarization/Training
Training and Location
Report
DATE
3 Project Management Invoice DATE

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GRANTEE LEAGL NAME

Task Description Deliverables Estimated
Completion Dates
1 Equipment Ordering Equipment DATE
and Administration Final Report DATE
SECTION 7 – CONTACTS
The point of contact may be changed at any time by either party by providing a 10 day advance written notice to the other party. The Parties hereby designate the following points of contact during the Term of this Agreement:

CDFW Grant Manager: Grantee Project Manager:

Name: Cindy Murphy Name:

Title: Associate Governmental Program
Analyst
Title:

Address: P.O. Box 944209
Sacramento, CA 94244-2090
Address:

Phone: (916) 324-6250 Phone:

Email: [email protected] Email:

Direct all administrative inquiries to:

CDFW Grant Coordinator: Grantee Project Manager:

Name: Julia-Malia Olea Name:

Title: Contract/Grant Coordinator Title:

Address: P.O. Box 944209
Sacramento, CA 94244-2090
Address:

Phone: (916) 375-5967 Phone:

Email: [email protected] Email:

SECTION 8 – REPORTS

8.01 Final Report: No Progress Reports are required; however Grantee shall submit a Final Report by the date listed in Section 6.07– Schedule of Due Dates and Deliverables. The report shall summarize the life of the Agreement and describe the work and results pursuant to Section 6 - Project Statement. The Final Report will be submitted, electronically, to the CDFW Grant Manager upon completion of the Project tasks. The CDFW Grant Manager will provide Grantee a sample Final Report template, upon request. The Final Report will consist of one electronic version in Microsoft Word (or compatible format), upon the completion of the Project.

8.02 Document Accessibility: CDFW follows the Web accessibility standards of California Government Code Sections 7405 and 11135, and the Web Content Accessibility Guidelines (WCAG). Since all Office of Spill Prevention and

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GRANTEE LEAGL NAME

Response Oil Spill Response Equipment Staging Final Reports will be posted to CDFW’s website, grantees must ensure that the WCAG standards for adequate accessibility to people with disabilities are met for all Reports and associated submittals. Final Reports, and all associated documents, should be submitted as Word Documents for ease of editing to meet WCAG standards.

SECTION 9 – BUDGET AND PAYMENT

9.01 Budget Details and Funding Summary: Grantor will provide an amount not to exceed $<XX,XXX> as detailed below in the Line Item Budget Detail (Budget) below. Grantee or its partners will provide up to $<XX,XXX> in funds or in-kind services as cost share to complete tasks described in Section 6 - Project Statement. Actual expenditures will not be determined until the competitive process and equipment procurement has occurred. The procurement will consist of such items as a mobile storage trailer, boom, absorbents, anchors, personal protective equipment, equipment deployment training (if applicable) and all other items as outlined in Equipment Specifications (Attachment I).

Line Item Budget Detail
A. PERSONNEL SERVICES
N/A $0
Total Personnel Services $0
B. OPERATING EXPENSES: GENERAL
N/A $0
Subtotal Operating Expenses: Genera $0
C. OPERATING EXPENSES: SUBCONTRACTORS
N/A $0
Subtotal Operating Expenses: Subcontractors $0
D. OPERATING EXPENSES: EQUIPMENT
Equipment identified in Attachment I $0
Subtotal Operating Expenses: Equipment $0
E. INDIRECT COSTS
Indirect Charge Rate 0% (Applies to Sections A + B only) $0 F. GRAND TOTAL (A+B+C+D+E) $0

9.01.1 Budget Flexibility: Grantee must submit all budget line item revision requests, in writing, to the CDFW Grant Manager, prior to implementing any changes. All proposed budget changes require prior approval from the CDFW Grant Manager, regardless of budgetary impact. Informal Budget adjustments between existing line items may be permitted. Any revision to the Line Item Budget Detail must comply with Section 5.09 – Amendments. Considerations for informal Budget adjustments, if granted, must include:

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GRANTEE LEAGL NAME

1. Revisions which are consistent with the purpose, objectives, and description of the Project as detailed in Section 6 - Project Statement;

2. Revisions that do not increase or decrease the total Agreement amount;

3. Revisions that do not substitute key personnel; and

4. Line item shifts within a budget category (e.g., Field Supplies to Travel) up to $25,000 or 10% of the Agreement amount,
whichever is less.

Formal Budget adjustments will be considered by the Grantor, with prior approval from the CDFW Grant Manager. An amendment to the Agreement is required if a formal Budget adjustment is approved.

Considerations for formal amendments, if granted, include:

1. Shifting Grant Funds between budget categories (e.g., Personnel Services to Operating Expenses);

2. Increasing or decreasing the total Agreement amount;

3. Substituting key personnel; or

4. Line item shifts within a budget category (e.g. Field Supplies to Travel) that exceeds $25,000 or 10% of the Agreement amount, whichever is less.

9.02 Payment Provisions:

9.02.1 Disbursements: Grant disbursements will be made to Grantee in one lump sum payment in arrears, upon receipt of an original itemized invoice and required documentation as identified in Section 6.07 - Schedule of Due Dates and Deliverables.

Grant disbursements will be mailed to the following Grantee address:

Grantee Name:

Attention:

Address: <Mailing address provided here must match the
mailing address in the STD 204 Payee Data
Record>

9.02.2 Invoice Documentation: The invoice for payment must be accompanied by the Final Report. If there is cost share involved with the project, the final invoice must include a budget summary of cost share expenditures by fund source. The CDFW Grant Manager will provide Grantee with a sample invoice template upon request. The Final Invoice must be submitted to the CDFW Grant Manager by the date identified in Section

6.07 – Schedule of Due Dates and Deliverables. The invoice package must be sent hard copy or email to the CDFW Grant Manager, as

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GRANTEE LEAGL NAME

identified in Section 7 – Contacts.

Requirements: The invoice shall contain the following information:

1. The word “Invoice” should appear in a prominent location at the top of the page(s);

2. Printed name of Grantee on company letterhead;

3. Grantee’s business address, including P.O. Box, City, State, and Zip Code;

4. Name of the CDFW Region/Division being billed;

5. The invoice date and the time period covered; i.e., the term “from” and “to”;

6. This Agreement number and the sequential number of the invoice (i.e., Qxx75xxx-Invoice 1);

7. The invoice must be itemized using the categories and following the format of the Budget;

8. The total amount due. This should be in a prominent location in the lower right-hand portion of the last page and clearly distinguished from other figures or computations appearing on the invoice. The total amount due shall include all costs incurred by Grantee under the terms of this grant;

9. The original signature of Grantee; and

10.Grantee must provide supporting documentation for the invoice and actual receipts.

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GRANTEE LEAGL NAME

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of Grantor date set forth below the signature.

AUTHORIZED AGENT FOR GRANTEE
By:

Signature:

Printed Name: Enter Grantee Signatory Name
Title: Enter Title
Date:

CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE
By:

Signature:

Printed Name: Melinda Peacock
Title: Branch Chief, Business Operations
Date:

This agreement is exempt from DGS-OLS approval, per SCM 4.06.

Prepared By: __JB__ Dept Review: __GK____
City Manager Review: __YK______ City Attorney Review: __RWS____ Staff Report
TO: Honorable Mayor and City Council DATE: June 12, 2025 FROM: Greg Kwolek, Public Works Director
Janeen Burlingame, Management Analyst
SUBJECT: Adoption of Resolution No. 35-25 Authorizing a FY24/25 Budget Adjustment Transferring Monies from the Transit Operating Fund to the Pavement Management Program

RECOMMENDED ACTION
Adopt Resolution No. 35-25 authorizing a FY24/25 budget adjustment as a transfer of $400,000 from the Transit Operating Fund to the General Capital Improvement Fund for the purposes of contributing to the Pavement Management Program.

FISCAL IMPACT
Per Section 4 of the agreement with San Luis Obispo Regional Transit Authority (RTA), the City is to transfer all non-committed monies remaining in its Transit Fund to RTA to be used to fund the City’s local transit services. The current Transit Fund unearned revenue balance is $1,114,558 with $625,970 transferred to the RTA resulting from the approved RTA/Morro Bay Transit FY25/26 budget per Section 3 of the agreement, leaving $488,618 remaining.

Staff is proposing the Council approve a budget adjustment that would result in the transfer of $400,000 from Transit Fund unearned revenue to the Pavement Management Program. The remaining $88,618 in unreserved revenue after the budget transfer is designed to provide enough funds for FY24/25 closeout activities relating to payment of operations and capital expenditures prior to the transfer of MBT administration to RTA June 1, 2025.

Once the FY24/25 year-end closeout is completed and the disposition of assets not transferred to RTA has occurred, all remaining monies in the Transit Fund will be transferred to RTA for future operations, planning, and capital projects for Morro Bay Transit per the agreement.

DISCUSSION
At the end of each fiscal year prior to City auditor beginning work on the Transit Fund fiscal audit, an unearned revenue calculation is performed to determine if revenue received in that fiscal year is more than operating or capital expenditures. Any excess becomes part of the Transit Fund’s fund balance to be identified for use in future years either for local transit operations or capital projects. The current Transit Fund unearned revenue balance is $1,114,558.

In September 2024, Council authorized staff to take steps to consolidate Morro Bay Transit (MBT) into RTA whereby RTA would take over administration, maintenance, and operation of MBT services.

The City and RTA executed an agreement in February 2025 to achieve that consolidation. RTA began AGENDA NO: 7.f
MEETING DATE: June 24, 2025

2 administration, operations, and maintenance of MBT effective June 1, 2025.

Per Section 4 of the agreement, the City is to transfer all non-committed monies remaining in its Transit Fund to RTA to be used to fund the City transportation services. Of the current unearned revenue balance, $625,970 is to be transferred to the RTA resulting from the approved RTA MBT FY25/26 operation and capital budget per the process outlined in Section 3 of the agreement.

The unearned revenue balance had been accumulating over several years in anticipation of being needed for implementation of the State’s Innovative Clean Transit (ICT) regulations requiring public transit agencies transition to zero emission buses. With the transition of local transit service administration to RTA, the RTA will now be handling implementation of the ICT regulations for MBT.

RTA currently operates electric vehicles in its regional services. As a result, much of the work related to the planning and construction of charging infrastructure and electrical grid improvement has already been completed with the revenue balance remaining in the City’s transit fund.

The funding source of the Transit Fund unearned revenue comes from Transportation Development Act (TDA) Local Transportation Fund (LTF) monies. TDA was enacted by the State Legislature in 1971 to make funds available for transit, pedestrian way and bikeway projects, transportation planning, ridesharing, street and road improvements. Per TDA law, LTF funds must first be used to provide transit service for “unmet” needs. If no unmet transit needs exist, LTF funds can be used for streets/roads improvements or pedestrian/bikeway facilities.

The San Luis Obispo Council of Governments (SLOCOG) conducts an unmet needs hearing once a year to determine if there are any unmet transit needs that need to be provided for first before any LTF funds can be used for streets/roads improvements and/or pedestrian/bikeway facilities. SLOCOG held its FY25/26 unmet transit needs hearing in February 2025 and approved findings at its April 2025 meeting noting there were no unmet transit needs for MBT. Given this, the remaining Transit Fund fund balance is available for roadway and pedestrian/bikeway improvements. The City’s next paving project is an eligible use of these funds.

CONCLUSION
With no unmet transit needs identified during SLOCOG’s FY25/26 unmet transit needs hearing process, the City can use some of the Transit Fund unearned revenue on streets/roads improvements and/or pedestrian/bikeway facilities in conformance with TDA law. Staff recommends the City Council adopt Resolution No. 35-25 authorizing a FY24/25 budget adjustment as a transfer of $400,000 from the Transit Operating Fund to the General Capital Improvement Fund for the purposes of contributing to the Pavement Management Program.

ATTACHMENT

1. Resolution No. 35-25 authorizing FY 24-25 Budget Amendment

RESOLUTION NO. 35-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
AUTHORIZING AMENDMENT TO THE CITY’S FISCAL YEAR
2024-25 OPERATING AND CAPITAL BUDGET

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its day-to-day business activities; and
WHEREAS, the City Council adopted the Fiscal Year (FY) 2024-25 Operating and Capital Budget on June 25, 2024, by Resolution No. 47-24; and
WHEREAS, in February 2025, the City entered into an agreement to transfer administration, maintenance, and operations of City Transit Services to San Luis Obispo Regional Transit Authority (RTA), including transfer of non-committed monies; and
WHEREAS, the adopted FY 2024-25 budget did not include a transfer to Pavement Management Program from the Transit Fund; and
WHEREAS, the Transit Fund balance includes $1,114,558 in unearned revenues, $400,000 of which was intended for the Pavement Management Program; and WHEREAS, the transfer out of funds from Transit Fund to General Capital Improvement Fund would result in the Transit Fund actual expenditures to exceed adopted budget; and WHEREAS, the City Council deems it necessary to amend said budgets. ///
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, authorizes the budget adjustment of $400,000 as a transfer out of the Transit Operating Fund (301) to the General Capital Improvement Fund (915) for the purposes of contributing to the Pavement Management Program, as outlined in Table 1.

Table 1. Budget Amendment Detail
Type Account Description Increase
(Decrease)
Expense 301-7710-8540 Transfer to Capital
Improvement
Fund
$400,000
Revenue 915-9614-3860 Transfer In from
Enterprise Fund
$400,000
Expense 915-9614-6106 Contractual
Services
$400,000
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 24
th day of June 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Prepared By: ___DM_______ Dept Review: ________
City Manager Review: __YK______ City Attorney Review: ___RWS______ Staff Report
TO: Honorable Mayor and City Council DATE: June 13, 2025 FROM: Daniel McCrain, Fire Chief
SUBJECT: Monetary donation from the Friends of the Morro Bay Fire Department

RECOMMENDED ACTION
Authorize the City Manager to execute an agreement, accepting the financial donation from the Friends of the Morro Bay Fire Department in the sum of $15,414. to be used for the purpose of completing design and construction documents for the Bonita Street Fire Station #2 Project.

ALTERNATIVES
No alternatives are recommended. With this funding commitment in mind to supplement available Fire Department Development Impact Fees, the City Council directed staff to move forward with architectural design drawings for construction of a new 2-story living quarters at the Bonita Street Station,

FISCAL IMPACT
The financial donation was provided in a check for the amount of $15,414.00

BACKGROUND
The Friends of the Morro Bay Fire Department voted at their last board meeting to financially support the design of a new living quarters at the Bonita Street Fire Station location. The Friends of the Morro Bay Fire Department is a 501c3 Non-Profit organization whose mission is,

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

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

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

4. To stimulate gifts, endowments, and bequests.

In support of this mission, the Friends of the Morro Bay Fire Department has generously offered a monetary donation in the amount of $15,414.00 to the Fire Department and the community of Morro Bay. Accepting this donation and providing a release of liability for this donation will help to ensure the Friends of the Morro Bay Fire Department will be able to continue making donations of valuable and much needed money and equipment to the Morro Bay Fire Department in the years to come without assuming unnecessary liability which may preclude future donations.

ATTACHMENT(S)
AGENDA NO: 7.g
MEETING DATE: June 24, 2025

1. Friends donation acceptance agreement for Station 2 design

01181.0024/914492.1

DONATION AGREEMENT

BY THE FRIENDS OF THE MORRO BAY FIRE DEPARTMENT

TO THE CITY OF MORRO BAY
THIS AGREEMENT is made and entered into this 24th day of June, 2025, and is effective as of the 13th day of June, 2025, by and between the CITY OF MORRO BAY, a municipal corporation of the State of California (hereinafter GRANTEE and “City”), and FRIENDS OF THE MORRO BAY FIRE DEPARTMENT, a California nonprofit corporation, (hereinafter GRANTOR).

WITNESSETH
WHEREAS, GRANTEE provides emergency response for the whole community of Morro Bay; and
WHEREAS, the Morro Bay Fire Department desires to complete construction documents for the Bonia Street Fire Station living quarters renovations; and WHEREAS, the Fire Department does not have sufficient funds to complete the design documents; and
WHEREAS, GRANTOR is a not for profit community group established to help improve the Fire Services in Morro Bay; and
WHEREAS, GRANTOR desires to assist GRANTEE by donating a financial contribution in the amount of $15,414.00 for the design of Bonita Street Fire Station living quarters; and NOW, THEREFORE, THE PARTIES AGREE, as follows:

1. Subject to the terms of this Agreement, on or before June 30, 2025, GRANTOR agrees to donate to GRANTEE a financial donation in the sum of $15,414.00 for the purpose of creating design and construction documents for the Bonita Street Fire Station project.

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

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

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

B. No Third Party Beneficiary

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

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

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

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

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

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

City of Morro Bay Friends of the Morro Bay Fire Department __________________________ _________________ _________
Yvonne Kimball, City Manager Steve Knuckles, President
____ ___________________________
Elaine Giannini, Secretary
APPROVED AS TO FORM:
__________________________
Robert Schultz, Interim City Attorney
ATTEST:
__________________________
Dana Swanson, City Clerk

Prepared By: __DH/GK___________ Dept Review:_ _GK_____
City Manager Review: __YK________ City Attorney Review: ___RWS ______ Staff Report
TO: Honorable Mayor and City Council DATE: June 20, 2025 FROM: Gregory Kwolek, Public Works Director
Damaris Hanson, Utilities Division Manager
SUBJECT: WRF Quarterly Report, Recycled Water Conceptual Design Report, WRF EIR Addendum #2, Recycled Water Implementation Strategy, and Contract Amendments

RECOMMENDED ACTIONS
Staff recommends the City Council:

1. Receive and file the Fiscal Year 2025 Quarter 3 WRF Quarterly Report (Jan 1 – Mar 31);

2. Receive and file the Conceptual Design Report (CDR) for the Recycled Water Project;

3. Approve the Final Environmental Impact Report (EIR) Addendum #2 for the Water Reclamation Facility (WRF) Program;

4. Approve the Updated Recycled Water Implementation Strategy Recommendations; and

5. Approve and authorize the City Manager to execute:

1. An amendment to a professional services agreement with Confluence Engineering Solutions (ConfluenceES) to provide recycled water program management support services for Fiscal Year (FY) 2025/26 for the WRF Program in the amount of $356,772 for a not-to-exceed agreement amount of $1,324,304, and to extend the agreement term to June 30, 2026;

2. An amendment to a professional services agreement with GSI Water Solutions, Inc. (GSI) to provide hydrogeological support services in the amount of $397,100 for a notto-exceed agreement amount of $1,737,463, and to extend the agreement term to December 31, 2026; and

3. An amendment to a professional services agreement with Far Western Anthropological Research Group, Inc. to provide services for archaeological investigations for the Recycled Water Project and Wastewater Treatment Plant (WWTP) Decommissioning and Demolition in the amount of $129,817 for a not-toexceed agreement amount of $1,174,550.01, and to extend the agreement term to December 31, 2026.

WRF QUARTERLY REPORT
The purpose of the Water Reclamation Facility Program (WRF) Quarterly Report is to provide project status updates on schedule, budget, key activities, and critical path items as they relate to the WRF.

While the report is intended to focus on the Recycled Water Project, it also contains historical information regarding budget and funding for the overall WRF Program. The FY 2025 Quarter 3 WRF Quarterly Report (Attachment 1) includes information on project activities between January 1, 2025 and March 31, 2025. The quarterly report was reviewed by the Public Works Advisory Board (PWAB) at their May 21, 2025, meeting.

RECYCLED WATER CONCEPTUAL DESIGN REPORT
The Recycled Water Facilities Design Engineer, Cannon Corporation (Cannon), has prepared the AGENDA NO: 7.h
MEETING DATE: June 24, 2025

Final CDR (Attachment 2) for the Recycled Water Project. The purpose of the CDR is to identify design options for the major elements and components of the Project, evaluate alternative approaches, make technical recommendations, and document and adopt decisions made by the City Project Team in order to embark on detailed design and construction documents.

The CDR identifies and describes relevant design item considerations for the following:
• Pipeline Alignments and Sizing
• Seawater Desalination Feedwater Pipeline Rehabilitation and Reuse • Injection Well Equipping Configurations
• Backflush Alternatives Analysis
• Non-potable Water Reuse Alternatives
• Equipment Procurement Analysis
The CDR outlines the preferred design; identifies potential right-of-way issues as well as environmental impacts and requirements; provides a constructability analysis; considers operation and maintenance requirements; and estimates construction costs. The CDR, and any new data obtained from ongoing project activities, will be used as the basis for the detailed design of the Recycled Water Facilities.

The Draft CDR was brought to the Public Works Advisory Board (PWAB) at their May 21, 2025, meeting, and the PWAB provided comments on the document and a recommendation to City Council to approve the document. A summary of the comments received by individual PWAB members and the Project Team’s responses are below:

PWAB Comment: Consider using an air separator in addition to air release valves.

Project Team Response: This was researched. Addition of an air separator is determined to not be necessary. Industry standard air release valves have proven to be sufficient for all other researched existing injection wells.

PWAB Comment: Rather than butterfly valves to control flow, consider using ball valves as they have a better control range than do butterfly valves.

Project Team Response: The project team concurs. Ball valves are also more durable. The report has been revised to include ball valves. See Subsections 2.4.2, 7.2 and 11.1, and Appendix E.

PWAB Comment: PWAB member prefers the air line system rather than submersible pump and motor. PWAB member also prefers valves and other operating equipment be kept above ground for operations and maintenance perspective. PWAB member also prefers to keep it simple with as little as possible downhole.

Project Team Response: This was considered. Downhole piping, including submersible pump and motor, is recommended due to superior well screen/gravel pack cleaning. The well discharge head flange recommendation will be revised to include an additional port to allow for easy installation of a future air line if desired. See paragraph added to end of Subsection

7.3. PWAB Comment: Consider using a Kirk Key.

Project Team Response: This is not applicable due to the design including PG&E power and pigtail for mobile emergency generator.

PWAB Comment: Consider ramping the speed of the indirect potable reuse pump station up by 10% or more to get the desired pressure head needed for 5 psi at the Bella Vista high point.

Project Team Response: This is a good idea and may work, but additional verification is required. The existing pump design point is 323 gpm @ 37’ TDH (or 300 gpm @ 39’ TDH) at 1,775 RPM. For the Initial Phase, to operate the pumps for 300 gpm @ 54’ TDH would require increasing the pump speed to around 2,100 RPM. The existing 5 HP ~ 1,800 RPM motors would have to be replaced with 5 HP ~ 3,600 RPM motors. Due to the increased head, the power draw will be about 5.1 HP. This is within the 10% service factor of the motors, but the City will need to check the electrical equipment and VFD to ensure this will not overload the system. For the Final Phase, to operate the pumps for 300 gpm @ 64’ TDH would require increasing the pump speed to around 2,300 RPM. However, due to the increased head, the power draw will be about 6.2 HP. This is outside the 10% service factor of the motors and will require upsizing the existing 5 HP motors to 7.5 HP ~ 3,600 RPM motors. Again, the City will need to check the electrical equipment and VFD to ensure this will not overload the system.

Also, the frames for the pump-motor assemblies will require modifications to accommodate the larger motors. See revised item 6 in Subsection 11.1.

PWAB Comment: Plan for a surge event such as a power failure so we don’t lose prime in the pipeline or have problems with air in the line when the pump system is not operating.

Project Team Response: Both pressure sustaining valves and pressure relief valves will be incorporated into the final wellhead piping design. See Subsections 2.4.1 and 7.2.

PWAB Comment: PWAB member questioned why the CDR has been released 7 months behind schedule.

Project Team Response: The delay can be attributed to several factors. The City completed an additional 4-month injection tracer study, which was not included in the original schedule.

Additionally, Cannon spent additional time on the CDR to make it more detailed to allow the 60%, 90%, and 100% designs to be completed quicker.

PWAB Comment: Consider injection rates will be limited or even zero during wet periods due to high groundwater.

Project Team Response: Agree. This is addressed and covered in Subsection 2.2.1., no revision needed.

The Final Conceptual Design Report attached (Attachment 2) incorporates changes to the CDR based on PWAB’s comments, where applicable.

WRF EIR Addendum #2
The Morro Bay WRF Final Environmental Impact Report (EIR) Addendum #2 (Attachment 3) was prepared to incorporate the new proposed injection well locations and recycled water infrastructure identified for the phased implementation of the Recycled Water Project that the City Council directed staff to proceed with at their November 14, 2023 Joint City Council/PWAB Meeting. Figures from the original EIR and EIR Addendum #2 showing the proposed changes in recycled water infrastructure are shown below. These changes were proposed to improve the effectiveness of the recycled water program and to avoid impacts to environmental and archeological resources.

The original EIR was certified in August 2018 and Addendum #1 was completed in September 2019.

The California Environmental Quality Act (CEQA) requires the City to prepare an addendum or supplemental EIR if changes are made to the project that were not included in the previous environmental impact evaluations. The original EIR did not include all of the areas currently envisioned for the Recycled Water injection wells and branch pipelines. The additional locations for the injection wells and pipelines are not anticipated to have any new significant environmental impacts and thus an addendum is the appropriate environmental document to address these changes to the project.

Recycled Water Project Area Included in the Original EIR:

Recycled Water Project Area Included in EIR Addendum #2

Typically, EIR Addendums are not required to be publicly circulated, but the City’s State Revolving Fund (SRF) Loan for the WRF Program includes a requirement that they be publicly circulated prior to adoption. SRF does not require any specific length for the public circulation period. The City held a 27-day public review period from April 24, 2025 through May 21, 2025 at 5:00 PM. To circulate the EIR Addendum #2 for public review, the City posted the EIR addendum to the Our Water Program website, the City website, the County Clerk of San Luis Obispo, the State Clearinghouse (SCH #2016081027), and the April 24, 2025, edition of the New Times. Physical notices were posted at the City’s kiosk at City Hall, the Library, and the SLO County Clerk’s office. The schedule for EIR Addendum #2 Public Review and City Council approval consideration are outlined in the table below:

Tentative EIR Addendum #2 Circulation and Approval Consideration Schedule April 24, 2025 Draft EIR Addendum #2 released for public review April 24, 2025 - May 21, 2025 at 5 PM Public review period, the City is accepting public comments on the addendum during this period
May 8, 2025 – June 9, 2025 City to prepare responses to comments during this period June 24, 2025 The Final EIR Addendum #2 to be brought to the City Council meeting for approval consideration
July 2025 The Final EIR Addendum #2 to be transmitted to CWSRF.

File Notice of Determination (NOD).

The City received three public comments on the Draft EIR Addendum #2. Responses to these comments are included in Attachment 4. A minor edit was made to the addendum to incorporate language regarding the Southwestern pond turtle. The Draft EIR Addendum was brought to Public Works Advisory Board (PWAB) at their May 21, 2025, meeting, and questions from the PWAB were answered by staff and City consultants.

RECYCLED WATER IMPLEMENTATION STRATEGY
Based on the results of the Interim Injection Test/Tracer Study the City recently completed on Injection Well #1 and to mitigate against the risk of accelerated travel time of the injected recycled water, the Project Team is proposing a more incremental approach to for the Recycled Water Project.

During the Interim Injection Test/Tracer Study, the Project Team initially observed faster than anticipated travel times of the injected water in the groundwater basin but later observed slower travel times and ultimately was able to inject water for over four (4) months without detecting it at the City’s nearest Extraction Well (Well #15). The minimum travel time the Division of Drinking Water (DDW) allows for Indirect Potable Reuse (IPR) recycled water in the groundwater basin is two (2) months.

However, because of the initial rapid rate of travel of the injected water, the Recycled Water Program Team is recommending performing potable water injection tests/tracer studies at the additional injection well site locations.

This differs from the implementation strategy the Project Team recommended and City Council directed staff to proceed with at the November 14, 2023, Joint City Council/PWAB Meeting, which included drilling and equipping three total injection wells, connecting Lila Kaiser Park and Morro Bay High School irrigation systems to recycled water and constructing the necessary additional pipelines to convey the recycled water. That initial implementation strategy was estimated to allow the City to achieve the required utilization of 412.5 AFY of recycled water required by the City’s SRF loan agreement. However, with additional analysis of recycled water production capacity and the recommendation for removal of the non-potable recycled water connections at Lila Kaiser Park and

Morro Bay High School, included as part of the Conceptual Design Report, it is estimated that a total of four (4) injection wells may be required to meet the SRF loan requirements.

The more incremental implementation strategy would include drilling two (2) to three (3) additional injection wells (e.g. IW-3, 4, and/or 6) and performing additional potable water injection test/tracer studies (similar to the test performed on IW-1), prior to initiating construction of additional recycled water pipelines and equipping injection wells. This will provide the City with more certainty that there is sufficient travel time for these additional injection wells before investing in additional infrastructure (i.e. injection well equipping and branch pipeline construction). Due to the uncertainty regarding the capacity of the additional injection wells, the Project Team may recommend drilling/equipping two (2) additional wells and equipping at total of three (3) wells initially to see if it can achieve the 412.5 AFY recycled water utilization requirements. If it is determined that three (3) total injection wells do not provide sufficient capacity, then a fourth well could be drilled and equipped sometime within the next five (5) years and still maintain compliance with the SRF loan requirements.

This new recommended strategy would delay the implementation of the recycled water program, but the Project Team has been in touch with representatives from the funding/financing agencies for the WRF Program and is developing strategies that will still allow the City to utilize the grants and lowinterest financing, while still maintaining compliance with the funding/financing requirements.

A summary schedule for the recommended, more incremental, Recycled Water Program implementation is shown in the table below. This schedule may be impacted by the schedule/timing of the permitting and/or land use program elements listed in the Planning section below, but the Program Team is working to prevent these constraints from becoming critical path schedule items.

Summary Recycled Water Program Implementation Schedule
# Task
Actual/Anticipated
Completion Date
Injection Well 1
1 Drill Injection Well 1 January 2023
2 Perform an interim tracer study on Injection Well 1 March 2025 Planning
3 Land Use/Environmental Permitting Ongoing
4 Land Acquisition/Easements Ongoing
5 Hydrogeology/Basin Mapping and Modeling Ongoing
6 IPR/Recycled Water Permitting Ongoing
7 Final Conceptual Design Report July 2025
Injection Well 3, 4, and/or 6 and Monitoring Well Construction 8 Well Design, Drilling, and Construction Documents August 2025 9 Advertise Bid, Award Well Drilling and Construction Docs December 2025 10 Well Drilling and Construction August 2026
11 Injection Test/Tracer Study December 2026
Injection Well 1, 3, 4, and/or 6 Equipping Construction 12 Well Equipping and Design Construction/Bid Documents June 2026 13 Advertise, Bid, Award, Well Equipping Construction Docs April 2027 14 Well Equipping Construction December 2027
IPR Recycled Water Distribution Pipelines
15 IPR Branch Pipelines and Misc. Design and Construction Documents June 2026 16 Advertise Bid, Award Distribution Pipelines and Retrofits April 2027 17 Distribution Pipeline and Retrofits Construction December 2027 18 IPR Recycled Water Facilities Construction Complete December 2027 Post-Construction Activities
19 Complete DDW required tracer study March 2028
At their May 21, 2025, meeting, PWAB made a recommendation for City Council to approve moving forward with the updated implementation strategy.

AMENDMENTS TO PROFESSIONAL SERVICES AGREEMENTS

FISCAL IMPACT
The recommended amendments to three recycled water related professional services agreements do not require new budget. Funding for the implementation of the Recycled Water Project, including the recommended amendments, is included in the approved WRF Program budget for Recycled Water of $9,424,174. Currently, the City expects to cover these costs through a mixture of funding sources, including the awarded Environmental Protection Agency’s (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan, the State Water Resource Control Board’s (SWRCB), State Revolving Fund (SRF) Loan, the United States Bureau of Reclamation’s (USBR) Title XVI Grant, and the California Department of Water Resources’ (DWR) Integrated Regional Water Management (IRWM) Grant.

Additionally, the City recently executed the ~$9.3M USBR Title XVI and $1.2M IRWM grant agreements, which will reduce the need for the City to utilize remaining SRF (~$21M) and WIFIA (~$15M) in low-interest financing to fund the Recycled Water component of the WRF Program.

BACKGROUND/DISCUSSION
The Recycled Water Project is a critical component of the City’s strategy to reduce its reliance on imported State Water and develop a reliable, resilient local water supply. The Project includes advanced treatment facilities (i.e., reverse osmosis and ultraviolet disinfection with advanced oxidation) at the Water Resources Center to treat wastewater and produce advanced purified

recycled water for injection into the Morro Groundwater Basin (Morro Basin) to increase groundwater recharge, prevent seawater intrusion, improve groundwater quality and enhance the reliability and resiliency of the City’s local water supply.

To support the continued implementation of the Recycled Water Project, City Staff recommends the City Council approve the following critical path contract agreement amendments. Together, they enable, along with existing contracts, the necessary next steps to keep the Project moving forward and meeting the deadlines associated with the City’s funding/financing agreements for the WRF Program. Below is a summary of the services for each amendment and associated cost estimate.

1. ConfluenceES Recycled Water Program Management (Agreement Amendment No. 4) On August 23, 2022, the City Council approved ConfluenceES to provide Program Management support for the implementation of the Recycled Water Project for FY 2022/23. Through use of effective time management, ConfluenceES was able to extend the available budget for FY 2022/23 Program Management through the end of FY 2023/24. Since August 2022, ConfluenceES has been providing Program Management support services for the implementation of the Recycled Water Program. This agreement has been structured to be renewed annually.

These Program Management services include coordination and oversight of the multi-disciplinary team, including archeologists, biologists, environmental specialists, design engineers, permitting engineers, hydrogeologists and City Staff, needed to deliver this complex public works infrastructure program in the Coastal Zone of California. The key components of the Program Management Scope of Work are outlined below.

ConfluenceES Scope of Work Summary
Task 0 Program Management
Task 1 Program Controls
Task 2 Hydrogeologic Design Management
Task 3 Recycled Water Facilities Design Management
Task 4 Environmental & Permitting Support
Task 5 RWQCB/DDW Permitting Support
Task 6 Funding/Financing Support
During the approximately three years providing Recycled Water Project Management support, ConfluenceES has led or assisted the City in achieving a number of significant achievements, some of which are outlined below.

ConfluenceES Supported Recycled Water Program Management Achievements  Developed a Recycled Water Implementation Strategy that meets the City's near-term water supply reliability and resiliency needs; minimizes costs to City rate payers; leverages existing available grant and low-interest financing and provides potential cost recovery opportunities  Oversaw bidding, construction and performance testing for Injection Well No. 1 o Delivered project on budget even with requested additional scope from the driller o Successfully negotiated credits for services not performed and prevented PCOs for items included in driller’s scope of work
 Led the application preparation, successful award and agreement execution for $1.2M in IRWM Funding for the Recycled Water component of the WRF Program  Oversaw development of the application, successful award and agreement execution of $9.3M in USBR Title XVI Funding for the Recycled Water component of the WRF Program  Develop strategy to repurpose the abandoned Desal Feed pipeline to convey recycled water across Morro Creek, saving potentially ~$1.5M in pipeline construction costs  Identified new pipeline alignment alternatives and developed a recycled water program implementation strategy that avoids the need for a Supplemental EIR and saves the City

approximately $150k
 Identified and developed application for American Society of Civil Engineers (ASCE) local, regional and state Sustainable and Environmental Project of the Year award  Developed strategy to allow the City to operate its IPR Program without needing to run the Brackish Water Reverse Osmosis (BWRO) treatment facility, saving approximately $300K in annual operating costs (difference between BWRO and blended groundwater production costs)
 Developed a water supply model and water system operational strategy that will allow the City the potential opportunity to achieve cost recovery of up to $700K annually through the sale of excess SWP supplies
 Developed a recycled water production model to assist the City in better understanding recycled water production and staffing opportunities/constraints  Developed a strategy to combine archaeological and hydrogeologic testing to allow for predesign of the injection wells to avoid potential redesign costs after initial pilot hole drilling and to reduce overall well construction costs
 Coordinated with Coastal Commission and developed the necessary plans/documents to bring the City into compliance with the WRF Coastal Development Permit special conditions  Identified opportunities to utilize geophysics to improve the understanding groundwater basin conditions in the Recycled Water Project area
 Coordinated competitive procurement and selection of Engineering and Hydrogeological Injection Well and Extraction Well Design consultants
 Oversaw the completion of the Recycled Water Facilities Conceptual Design Report  Planned, coordinated and oversaw the Interim Injection Test/Tracer Study for Injection Well 1 and developed new implementation strategy to mitigate against risks of increased travel time for the IPR project
ConfluenceES’s proposed Scope of Work and Cost Estimate for providing FY 2025/26 Recycled Water Program Management support services is included in Attachment 5, ConfluenceES Agreement Amendment No. 4. The proposed scope of work was developed through close coordination with City Staff to provide for efficient delivery of the Recycled Water Program and the estimated fee for FY 2025/26 is $356,772. Of the $967,532 authorized in the current ConfluenceES Program Management contract, $911,423.75 has been spent through the end of May 2025, leaving a remainder of $56,108.77 in the current contract, which expires on June 30, 2025.

2. GSI Additional Professional Services for Injection Well Site Selection (Agreement Amendment No. 5)
GSI provides hydrogeological support for the WRF project. The proposed Amendment No. 5 to GSI’s agreement (Attachment 6) includes scope for the extended timeframe for the Injection Well 1 tracer study completed from November 2024 – March 2025, ASR permitting support, project meetings and management, and basin characteristic refinements based on new data. The proposed budget for these baseline tasks is $261,000. GSI has additionally proposed two optional tasks: 1) an additional interim tracer study for Phase 1 [$70,000], and 2) an antidegradation analysis to support DDW compliance [$40,000]. The total proposed budget, including the baseline tasks and optional tasks, and a recommended 10% contingency to account for potential unanticipated additional support needs is $397,100. Of the $1,351,363 authorized in the current GSI Hydrogeologic Support Services contract, $1,351,344.37 has been spent, leaving a remainder of $18.63 in the current contract.

3. Far Western Archaeological Services (Agreement Amendment No. 9) Pre-construction archaeological testing is required by the Programmatic Agreement that was developed and agreed to by Environmental Protection Agency (EPA), the State Historic Preservation Officer (SHPO), and the City for the WRF Program.

Phase 3 Investigations - Far Western completed archaeological investigations related to the injection well and recycled water conveyance pipeline locations in June of 2024. Since then, the project design engineer (Cannon) determined the Willow Camp Creek crossing alignment to be preferable from a construction cost standpoint through use of trenchless construction methods (Horizontal Directional Drilling [HDD]). The Recycled Water Project Team is recommending the City move forward with this investigation due to the significant potential cost savings associated with the much shorter pipeline alignment that this alternative provides.

The scope of work includes five borings drilled at roughly 25‐meter intervals across the proposed water pipeline alignment. If mechanical borings are not feasible due to access, hand augering may be required. Pre-field work will include one field visit to mark Underground Service Alert and a private utility locator to scan the testing area prior to fieldwork. The scope assumes testing between 25 to 45 feet below surface to account for depth of project impacts. Cores will be opened on site to determine the presence or absence of cultural materials. Findings from this investigation will be documented in a Phase 3 addendum report to be submitted to the City, the EPA, consulting tribes, and SHPO for review. Phase 3 investigations are anticipated to cost $48,411.

Phase 4 Investigations - The Morro Bay - Cayucos Wastewater Treatment Plant is located in an archaeologically sensitive area and based on discussion with EPA representatives it has been determined that pre-construction testing will be required prior to initiating decommissioning/demolition activities.

The scope of work includes ten borings drilled at roughly 25-meter intervals across the Phase 4 project area where accessible. Pre-field work will include one field visit to mark Underground Service Alert. The scope assumes testing to 5 feet below surface; however, includes an optional deep field testing to drill cores to 25 feet below surface to account for potential deeper project impacts. Cores will be opened on site, as they are drilled to determine the presence or absence of cultural materials.

Findings from this investigation will be documented in a Phase 4 (WWTP Decommissioning and Demolition) testing report to be submitted to the City, the EPA, consulting Tribes, and SHPO for review. Phase 4 investigations are anticipated to cost $69,605.

Far Western’s proposed Amendment No. 9 (see Attachment 7) is for a total of $118,016 base fee, including scope for additional archaeological investigations for Phase 3 (Recycled Water Facilities) and for Phase 4 (Old WWTP Decommissioning and Demolition). This fee reflects the reduced mobilization costs associated with completing the Phase 3 and Phase 4 investigations at same time.

The fee estimate including a recommended 10% contingency to account for potential unanticipated additional support needs is $129,817. Of the $939,046.01 currently authorized (total contract amount is $1,044,733.01, but includes optional tasks that have not been authorized) in the Far Western Archeological Support Services contract, $866,984.65 has been spent through the end of May 2025, leaving a remainder of $72,061.36 of unspent funds that are reserved for preparation of the Data Recovery Report that is required as part of the Programmatic Agreement between the EPA and SHPO for this project to mitigate the impacts to archeological resources associated with the construction of the WRF Program.

Agreement Amendments Conclusion
The agreement amendments for consultant services for consideration by the City Council are critical path items to move the IPR project forward. Together, they comprise the necessary next step to keep the Recycled Water phase of the WRF program on schedule to meet deadlines set by our funding and financing agencies. The proposed agreement amendments were brought to PWAB at their May 21, 2025, meeting. PWAB did not vote on this item or provide a recommendation. The PWAB members provided individual comments. One PWAB member proposed City Council conduct a consultant performance evaluation prior to approving these agreements. The other PWAB members preferred City Council approve these agreements without a prior performance evaluation, as a

performance evaluation would significantly delay the project schedule. PWAB had concerns about the project being behind schedule and would like to see it stay on track moving forward.  Schedule Challenges: The schedule for the recycled water design has been extended due to the Interim Injection Test/Tracer Study, geophysics investigations and siting constraint challenges for the injection wells. City Staff and the Project Team identified that performing the Interim Injection Test/Tracer Study and geophysics investigations, which was optional at this phase of the project, would provide valuable information regarding travel time of injected water in the Morro Basin that could inform the design and implementation of the project.

During the performance of the tests City Staff and the Project Team requested that the design team pause certain project activities so that they could be better informed by the results of the Interim Injection Test/Tracer Study and geophysics studies. Additionally, City Staff and the Project Team have been working diligently with Coastal Commission, Vistra, City Community Development Department, Division of Drinking Water, Regional Water Quality Control Board and other staff to identify the preferred siting locations for the injection wells that meet all of the injection capacity, seawater intrusion prevention, funding/financing program requirements, water/sewer/storm drain offset, travel time, land use, biological/archeological resource avoidance, and other constraints, for inclusion in the phased implementation of the recycled water project.
 Consultant Team Benefits: The consultant team currently supporting the implementation of the WRF program are largely locally based and have extensive knowledge of the water resource challenges affecting communities on the Central Coast. Additionally, each of the team members have experience working on the earlier phases of the WRF Program and can leverage this knowledge to provide informed, cost-effective guidance to the City on the best implementation strategy for the recycled water project. Examples of this include the Recycled Water Project Team’s ability to apply for, be awarded, and execute agreements for $10.5M in grant funding, identification of pipeline alignment and rehabilitation opportunities to save the City Millions of dollars, development of construction cost/risk mitigation strategies for the recycled water project implementation, and identification of recycled water/water system operational approaches to potentially save the City ~$1M in annual operating costs.

ATTACHMENTS

1. Fiscal Year 2025 Quarter 3 WRF Quarterly Report (Jan 1 – Mar 31)

2. Final Conceptual Design Report for Recycled Water Facilities Project – June 2025

3. Final Addendum No. 2 to the 2018 Final EIR - June 2025

4. Draft Addendum No. 2 to the 2018 Final EIR Response to Comments - June 2025

5. ConfluenceES Recycled Water Program Management Agreement Amendment No. 4

6. GSI Injection Well Exploratory Drilling Oversight Support Agreement Amendment No. 5

7. Far Western Anthropological Research Group, Inc. Agreement Amendment No. 9

MAY 16, 2025 1
City of Morro Bay
Water Reclamation Facility Program

QUARTERLY REPORT
JANUARY 1, 2025 THROUGH MARCH 31, 2025

INTRODUCTION
The Recycled Water Facilities (RWF) project is a portion of the larger Water Reclamation Facility (WRF) Program. The RWF project is anticipated to be complete by Fall 2026. This quarterly report includes updates on project status, schedule, program funding, and program budget. The current program budget is $159.84 million and $146,276,951 million has been spent to date.

RECYCLED WATER PROJECT STATUS
The RWF project is currently in the design phase and the following activities were completed during this quarter:

Recycled Water Project Status Update (January 1, 2025 – March 31, 2025) • Environmental/Permitting
o Activities completed
▪ In January 2025, the City submitted the 2024 Yearly Report for the City of Morro Bay Water Reclamation Facility Project Biological Opinion (Year 2). ▪ On March 12, 2024, the City sent the Draft NEPA Environmental Assessment (EA) to the United States Bureau of Reclamation (USBR) for their review and feedback. o Ongoing activities and upcoming timelines
▪ During this period, the City finalized the draft CEQA EIR Addendum #2. The CEQA EIR Addendum #2 is available on the City website, Our Water Program website, and the State Clearinghouse. The public review period is from April 24, 2025 – May 21, 2025.
▪ The City is waiting to receive feedback from USBR on the National Environmental Policy Act (NEPA) Environmental Assessment (EA) and is anticipating it will be circulated for public review in 2025. • Recycled Water Permitting
o Activities completed
▪ In February 2025, the City submitted the Draft Title 22 Engineering Report to the Department of Drinking Water (DDW).
▪ On March 6, 2025, the City met with DDW to provide an overview of the Draft Title 22 Engineering Report.
▪ In March 2025, the City submitted the Recycled Water Management Plan Phase 1 Progress Report, in compliance with their NPDES permit. o Ongoing activities and upcoming timelines

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY MAY 16, 2025 2
▪ The Basis of Design Report (BOD), attached to the Draft Title 22 Engineering Report, will continue to be updated as more hydrogeologic data becomes available throughout the project.
▪ City staff and the Recycled Water Program Team are continuing to prepare the Draft Report of Waste Discharge (ROWD) Application.
• Engineering Design
o Activities completed
▪ In February 2025, the project engineer provided the Recycled Water Project team an admin draft of the Draft Conceptual Design Report.
o Ongoing activities and upcoming timelines
▪ During this period, the project design engineer continued to prepare the recycled water pipeline and injection well equipping design.
▪ During this period, the project design engineer continued to investigate the abandoned desal feedline pipeline for potential reuse for the IPR pipeline. ▪ During this period, the project design engineer continued to prepare a test plan for flow and pressure testing the existing IPR conveyance pipeline. ▪ The Conceptual Design Report is anticipated to be completed in Q2 2025. • Hydrogeologic Analysis and Design
o Activities completed
▪ In January 2025, the City completed the ERT survey as part of the project’s geophysical investigations.
▪ In February 2025, the City performed a backflush test on Well 1 to help inform the backflush appurtenance design and operational strategy. ▪ On March 24, 2025, the City ended the interim tracer study which had been initiated on November 18, 2024.
o Ongoing activities and upcoming timelines
▪ The project hydrogeologist continued to evaluate which injection well locations are most favorable from a hydrogeological perspective and preparing the design of the downhole components of the injection wells.
• Funding/Financing
o Activities completed
▪ The City prepared and submitted the Water Infrastructure Finance and Innovation Act (WIFIA) Funding and Financing Quarterly Report.
▪ The City prepared and submitted the Integrated Regional Water Management (IRWM) Funding and Financing Quarterly Report.
o Ongoing activities and upcoming timelines
▪ The IRWM grant agreement has been executed by the City and is in the process of being executed by the San Luis Obispo County Flood Control and Water Conservation District.
▪ City Staff and the Recycled Water Program Team are coordinating with the funding financing agencies to provide quarterly reports, environmental documentation, and other required documentation.
▪ City staff and the Recycled Water Program Team are coordinating with the Bureau of Reclamation to modify grant agreement materials and continue preparation of the Title XVI Grant Agreement.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY MAY 16, 2025 3

RECYCLED WATER PROJECT SCHEDULE
Figure 1. Recycled Water Summary Schedule

PROGRAM BUDGET
Table 1 lists actual expenditures for each program component and the percent of the budget expended. The WRC and Conveyance Facilities components of the project were closed out in 2024.

Table 1. WRF Program Expenditures
Program
Component
Previous
Total
Expenditures
Jan-Mar 2025
Expenditures (1)
Total Expenditures
To Date
FY 24/25 Budget
(2)
Percent
Budget
Expended
RWF $2,741,319(3) $63,738 $2,805,057 $9,424,174 30%
General Project $24,445,647(3)(4) $232,275 $24,677,922 $30,968,609 80% WRC Plant $77,895,236 $0 $77,895,236 $79,123,216 98%
Conveyance $40,891,202(5) $7,534 $40,898,736 $40,324,350 101% Total $145,973,404 $303,547 $146,276,951 $159,840,349 92% (1) Jan-Mar 2025 total expenditures as tallied on the Accounts Payable Report run on April 9, 2025, including all invoices accrued through Mar 31, 2025.
(2) FY 24/25 Budget adopted by Council.
(3) A correction was made to adjust the previous expenditures to move $24,276 from the RWF to General Project for due to an error on the July-Sept 2024 PWAB Quarterly Report.
(4) $85,366 in program management invoices for Oct-Dec were added to the General Project previous expenditures category. (5) Although the Conveyance budget has been closed out, an invoice for Phase 2 archeological testing (conveyance) sample processing was received this quarter.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY MAY 16, 2025 4

PROGRAM FUNDING
Table 2. WRF Program Funding Sources
Funding Agency(1) Funding Type Total Funding Spent to Date Funding Available Notes SRF Construction
Loan Loan $66,604,638 $64,910,849 $1,693,789 Terms: 0.9%, 30 years SRF Loan Forgiveness Loan Forgiveness N/A N/A N/A $5M
SRF Construction
Loan Amendment Loan $21,172,000 $0 $21,172,000 Terms: 0.9%, 30 years WIFIA Loan $61,700,336 $46,259,157 $15,441,179 Terms: 0.83%, 35 years SRF Planning Loan Loan $10,300,000 $10,300,000 $0 Terms: 0.9%, 30 years Recycled Water
Planning Grant Grant $75,000 $75,000 $0 Costs reimbursed upon request City of Morro Bay Water/Sewer
Fund $24,731,945 $24,731,945 $0 Subject to loan reimbursement Executed Funding Sources Total $184,583,919 $146,276,951 $38,306,968 USBR - Title XVI Grant (pending) $9,310,095 $0 $9,310,095 Developing grant agreement
IRWM Grant (pending) $1,200,000 $0 $1,200,000 Agreement in execution process
Pending Funding Sources Total $10,510,095 $0 $10,510,095 Total $195,094,014 $146,276,951 $48,817,063
(1) Abbreviations: SRF – State Revolving Fund; EPA – Environmental Protection Agency; WIFIA – Water Infrastructure Finance & Innovation Act; USBR – United States Bureau of Reclamation; IRWM – Integrated Regional Water Management.

OTHER PROGRAM UPDATES
N/A
Historical information on the WRF Program and previous quarterly reports are available on the program website: https://morrobaywrf.com/.

AMENDMENT NO. 4 TO THE AGREEMENT

FOR CONSULTANT SERVICES
BETWEEN THE CITY OF MORRO BAY AND CONFLUENCE ENGINEERING SOLUTIONS, INC.

This AMENDMENT NO. 4 TO THE CONTRACT FOR CONSULTANT SERVICES (“Amendment”) is entered into on the 24th day of June 2025, by and between the CITY OF MORRO BAY, a municipal corporation (“City”), and Confluence Engineering Solutions, Inc. (“Consultant”). City and Consultant are sometimes collectively referred to as the “Parties.”

RECITALS
WHEREAS, City entered into an Agreement with Consultant, on January 3, 2022, for engineering services related to the Capital Improvements to the City’s Water Distribution and Wastewater Collection Systems (the “Project”) for a not to exceed amount of $45,000.00 (the “Agreement”); and
WHEREAS, the Parties amended the Agreement on August 23, 2022 (Amendment No. 1), to include Program Management services to assist the City with the implementation of the recycled water component of the Water Reclamation Facility Project (WRF Project) and other Water and Wastewater System Engineering Services and established a not-to-exceed amount of $627,619 for the Agreement; and
WHEREAS, the Parties amended the Agreement on May 24, 2023 (Amendment No. 2), to extend the expiration date of the Agreement to June 30, 2024, at no additional cost; and WHEREAS, the Parties amended the Agreement on June 11, 2024 (Amendment No. 3), to include Program Management services to assist the City with the implementation of the recycled water component of the WRF Project and established a non-to-exceed amount of $967,532 and extend the expiration date of the Agreement to June 30, 2025; and WHEREAS, the Agreement and the Amendment No. 1, No. 2, and No. 3 are hereinafter referred to as the “Amended Agreement;” and
WHEREAS, due to the extension of time that the City desires the Consultant to continue to provide Program Management services for the implementation of the recycled water component of the WRF Project, the term of the agreement must be extended and the compensation payable pursuant to the Amended Agreement must be increased.

NOW THEREFORE, City and Consultant mutually agree to amend the Agreement as follows:

1. The additional services to be provided by Consultant, pursuant to the Amended Agreement, as amended by this Amendment No. 4, shall include the additional Scope of Work, as set forth in Exhibit A attached hereto and incorporated herein by this reference (the "Additional Work").

2. The compensation to be paid for the Additional Work described in Exhibit A shall not exceed Three Hundred Fifty-Six Thousand Three Hundred Sixty-Eight Dollars

($356,368), as described in Exhibit A, for a total Not-to-Exceed amount of One Million Three Hundred Twenty-Three Thousand Nine Hundred Dollars ($1,323,900) for the Amended Agreement.

3. The expiration date of the Amended Agreement shall be extended from June 30, 2025 through June 30, 2026.

4. Except as expressly set forth in this Amendment, the terms and conditions of the Amended Agreement shall remain in full force and effect.

5. The effective date of this Amendment No. 4 shall be deemed to be June 24, 2025 (Effective Date).

IN WITNESS WHEREOF, the parties have caused this Amendment No. 4 to be executed by their duly authorized representatives as of the Effective Date.

CITY OF MORRO BAY CONFLUENCE ENGINEERING SOLUTIONS,
INC.

By: ___________________________ By: _____________________________ Yvonne Kimball, City Manager Daniel Heimel, President/Chief Executive Officer/Secretary
Attest: By: ___________________________
Sandra Heimel, Chief Financial Officer
______________________________
Dana Swanson, City Clerk
Approved As To Form:
__________________________
Robert Schultz, Interim City Attorney

01181.0001/813182.1 A-1

EXHIBIT A

SCOPE OF SERVICES
I. Consultant will perform services described in Consultant’s Scope of Work 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.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management
Scope of Work
Confluence Engineering Solutions, Inc. (ConfluenceES) is pleased to provide the following scope of work and fee estimate for providing program management services to support the City of Morro Bay (City) with implementation of the Recycled Water component of the Water Reclamation Facility (WRF) Program for Fiscal Year 2025/26. The assumed duration for these services is from 7/1/2025 to 6/30/2026.

Task 0 Program Management

0.1 Program Coordination
▪ Coordinate activities of the internal and external Program Team members, including managing communications, providing work direction, and preparing requested materials and deliverables.
▪ Prepare and administer contract/agreements for Recycled Water Team consultants. ▪ Provide oversight of Recycled Water Team consultant activities and deliverables. ▪ Prepare and provide monthly invoices and progress reports describing activities completed for Program Management.

It is assumed that the level of effort for Program Coordination will be approximately 2 hours per week.

0.2 Recycled Water Team Coordination Meetings
▪ Prepare for and facilitate Recycled Water Team Coordination Meetings. Recycled Water Team is anticipated to include City operations and management staff and archeological, biological, environmental, engineering, hydrogeologic and other supporting consultants.

Activities for this task are anticipated to include schedule coordination, agenda preparation, meeting facilitation, and action item documentation and follow-up.

It is assumed that Recycled Water Team Coordination Meetings will occur every two weeks, last approximately 1.5 hours, and be attended by two ConfluenceES Staff.

0.3 Program Manager/City Coordination Meetings
▪ Prepare for and participate in Program Manager/City Coordination Meetings. Activities for this task are anticipated to include schedule coordination, agenda preparation, meeting facilitation, and action item documentation and follow-up.

It is assumed that Program Manager/City Coordination Meetings will occur weekly, last approximately 1 hour, and be attended by two ConfluenceES Staff.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management

0.4 Public Meetings
▪ Prepare for and participate in Public Meetings (e.g. Public Works Advisory Board, City Council, etc.) to support completion of the Recycled Water component of the WRF Program.

Activities for this task are anticipated to include agenda and presentation preparation, meeting participation, and Governing Board direction documentation and follow-up.

It is assumed that 5 Public Meetings, requiring 8 hours of preparation, 0.5 hours travel, 2 hours attendance and 1 hour follow-up for 1 ConfluenceES Staff, will occur over the anticipated duration of this contract.

0.5 Public Outreach Support
▪ Support the City with WRF Program/Recycled Water public outreach by providing and reviewing content for press releases, website updates, City/City Council Talking Points and other outreach efforts.
▪ Support the City in responding to public comment and questions received regarding the Recycled Water component of the WRF Program.

It is assumed that the level of effort for Public Outreach Support will be approximately 4 hours per month.

Task 1 Project Controls

1.1 Budget Control
▪ Compile, monitor and report on the budget information for the Recycled Water component of the WRF Program.
▪ Develop Recycled Water budget projections for City Budgeting and other purposes.

It is assumed that the level of effort for maintaining the Recycled Water Budget will be approximately 4 hours per month.

1.2 Schedule Control
▪ Develop and maintain an updated schedule for the Recycled Water component of the WRF Program.

It is assumed that the level of effort for maintaining the Recycled Water Schedule will be approximately 3 hours per month.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management

1.3 Quarterly Reports (PWAB Reports)
▪ Prepare and distribute Quarterly Reports for the Recycled Water component of the WRF Program. Quarterly Reports are anticipated to include a projects status update (activities completed during the quarter and ongoing activities/upcoming timelines), an updated project schedule, an updated program budget summary table, and updated program funding table.

It is assumed that the level of effort for PWAB Quarterly Reports will be 72 hours.

Task 2 Hydrogeologic Design Management

2.1 Pre-Permitting Injection Test/Tracer Study No. 2
▪ Coordinate with the Recycled Water Hydrogeologist and City Staff to schedule, initiate, observe and document a Pre-Permitting Injection Test/Tracer Study at Injection Well No. 2 and/or No. 3.
▪ Perform site visits, as necessary, to observe the injection test/tracer study and coordinate activities.
▪ Review results of the injection test/tracer study and assist in incorporating findings into the Recycled Water implementation strategy.

It is assumed that the level of effort for Injection Test No. 2 Coordination will be 40 hours.

2.2 Hydrogeologic Design Coordination
▪ Coordinate and oversee the development of the well design and bidding documents for the injection and monitoring wells.

It is assumed that the level of effort for Hydrogeologic Design Coordination will be 70 hours.

2.3 Hydrogeologic Investigation and Groundwater Modeling Oversight ▪ Provide oversight and direction to the Recycled Water Hydrogeologist regarding hydrogeologic investigations and supplemental groundwater modeling to inform the design and operation of the Recycled Water Program.
▪ Develop and review scenarios for evaluation in the groundwater model, analyze scenario results and provide recommendations to City Staff and the Recycled Water Team based on groundwater modeling results.

It is assumed that the level of effort for Hydrogeologic Investigation and Groundwater Modeling Oversight will be 40 hours.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management
Task 3 Recycled Water Facilities Design Management

3.1 Recycled Water Facilities Design Coordination
▪ Coordinate and oversee the development of the design and bidding documents for the injection well equipping, recycled water pipelines, recycled water connections and recycled water fill station (Recycled Water Facilities).
▪ Provide recommendations regarding the location and layout of the Recycled Water Facilities based on results of the injection test/tracer studies, supplemental groundwater modeling, Hydrogeologic Basis of Design Report, EIR and permitting (e.g. biological and cultural) constraints, property ownership and infrastructure requirements.

It is assumed that the level of effort for Recycled Water Design Coordination will be approximately 10 hours per month.

3.2 Recycled Water Facilities Design Review
▪ Participate in review of the design of the Recycled Water Facilities, including the 60%, and 90% Design Plans, Specifications and Cost Estimates.
▪ Schedule, organize and conduct design workshops with City Staff and the Recycled Water Design Team to review and provide comments on the Recycled Water Facilities design packages.

It is assumed that the level of effort for Recycled Water Design Review will be 120 hours.

3.3 Bid Phase Support Services
▪ Oversee the distribution of plans and specifications to prospective bidders. ▪ Coordinate the development of responses to contractor and supplier questions that relate to bid documents.
▪ Support preparation for and attend the pre-bid conference and bid opening conference for the project.
▪ Review bids and coordinate development of award recommendations based on bidder qualifications and responsiveness.

It is assumed that the level of effort for Bid Phase Support Services will be 80 hours.

Task 4 Environmental & Permitting Support

4.1 Coastal Development Permit Support
▪ Support the City in preparing materials, addressing questions from Coastal Commission Staff and obtaining the necessary approvals for the construction of the Recycled Water Facilities.

It is assumed that the level of effort for Coastal Development Permit Support will be 40 hours.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management

4.2 EIR Support
▪ Support the City in evaluating and determining the level of environmental impact analysis (e.g. EIR Addendum, Supplemental EIR, etc.) required to construct the Recycled Water Facilities.
▪ Assist the City and EIR Consultant in preparing additional environmental analyses, if necessary, for the Recycled Water Facilities.

It is assumed that the level of effort for EIR Support will be 40 hours.

4.3 Environmental Permitting/Approval Support
▪ Support the City in obtaining the necessary permits/approvals from environmental regulatory agencies with jurisdiction over the Recycled Water Facilities. It is anticipated that permits/approvals may be required from the following agencies:
 Environmental Protection Agency (EPA)
 State Historic Preservation Office (SHPO)
 United States Fish and Wildlife Service (USFW)
 California Department of Fish and Wildlife (CDFW)
It is assumed that the level of effort for Environmental Permitting Support will be 50 hours.

4.4 Permitting Agency Coordination Meetings
▪ Schedule, organize and conduct meetings with Permitting Agency representatives to coordinate preparation of permit applications, application review and permit approvals.

It is assumed that 5 Permitting Agency Coordination Meetings, requiring 1 hour of preparation, 2 hours attendance and 1 hour follow-up for 2 ConfluenceES Staff, will occur over the anticipated duration of this contract.

4.5 CDP Special Condition Reports
▪ Prepare four (4) Special Condition (SC) Reports to allow for construction of the Recycled Water Facilities in compliance with the WRF Coastal Development Permit (CDP) requirements. The required SC Reports are anticipated to include:
 Revised SC-6 Recycled Water Management Plan
 SC-1 Revised Final Plans, SC-2 Construction Plan, SC-13 Other Authorizations for the Recycled Water Facilities
It is assumed that the level of effort for preparing each SC Report will be 30 hours.

Task 5 RWQCB/DDW Permitting Support

5.1 ESCP Support
▪ Support the City and Carollo Engineers in implementation of the Enhanced Source Control Program (ESCP) for the City’s collection system.

It is assumed that the level of effort for ESCP Support will be 12 hours.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management

5.2 ROWD Support
▪ Support the City and Carollo Engineers with Regional Water Quality Control Board (RWQCB) coordination and preparation and submittal of the Report of Waste Discharge (ROWD) permit application.

It is assumed that the level of effort for ROWD Support will be 40 hours.

5.3 Engineering Report Support
▪ Support the City and Carollo Engineers with Division of Drinking Water (DDW) coordination and preparation and submittal of the Engineering Report.

It is assumed that the level of effort for Engineering Report Support will be 40 hours.

5.4 RWQCB/DDW Meetings
▪ Prepare for and participate in meetings with the RWQCB and DDW in support of the ROWD and Engineering Report. Activities for this task are anticipated to include schedule coordination, agenda preparation, meeting facilitation, and action item documentation and follow-up.

It is assumed that 3 Meetings with the RWQCB/DDW, requiring 1 hour of preparation, 2 hours attendance and 1 hour follow-up for 2 ConfluenceES Staff, will occur over the anticipated duration of this contract.

Task 6 Funding & Financing Support

6.1 CWSRF Loan Support
▪ Support the City with administration of the Clean Water State Revolving Fund (CWSRF) Planning and Construction Loans with the State Water Resources Control Board Division of Financial Assistance.

It is assumed that the level of effort for CWSRF Loan Support will be 40 hours.

6.2 FY 25/26 USBR Title XVI WIIN Grant Support
▪ Support the City with administration of the agreement for the FY 25/26 USBR Title XVI WINN Program Grant.

It is assumed that the level of effort for FY 25/26 USBR Title XVI WIIN Grant Support will be 80 hours.

6.3 Prop 1 Round 2 IRWM Implementation Grant Support
▪ Support the City with administration of the agreement for the Integrated Regional Water Management (IRWM) Prop 1 Round 2 Implementation Grant.
▪ Support the City in preparing required grant administration documents, including progress reports, environmental documents, and other deliverables required under the grant agreement.

It is assumed that the level of effort for the IRWM Prop 1 Round 2 Implementation Grant Agreement will be 40 hours.

Confluence Engineering Solutions, Inc. June 2025
Recycled Water Program Management

6.4 Funding/Financing Agency Reports
▪ Prepare and distribute four (4) Funding/Financing Agency Quarterly and one (1) Annual Report for the Recycled Water component of the WRF Program. Quarterly Reports are anticipated to include a summary of completed construction and other project activities for the current quarter and a description of planned activities for the next quarter.

It is assumed that the level of effort for the Funding Agency Reports will be 20 hours per report.

6.5 Funding Opportunities Evaluation
▪ Support the City in evaluating future grant funding and financing opportunities for the WRF and IPR Programs. Activities for this task are anticipated to include funding opportunity review, grant agency outreach and coordination and development of funding pursuit recommendations.

It is assumed that the level of effort for Funding Opportunities Evaluation will be 80 hours.

Attachment:

ConfluenceES Fee Estimate - FY 25/26 Recycled Water Program Management Support Services

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

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

III. The base fee, contingency, optional tasks, and total Agreement amount are as follows:

Base Fee
The Base Fee for this agreement, not including the contingency, is Three Hundred Fifty-Six Thousand Three Hundred Sixty-Eight Dollars and No Cents ($356,368.00).

Contingency
There is no contingency included in this agreement amendment.

Optional Tasks
There are no optional tasks included in this agreement amendment.

Total Agreement Amount
The total amount for this agreement amendment shall not exceed Three Hundred Fifty-Six Thousand Three Hundred Sixty-Eight Dollars and No Cents ($356,368.00). Any additional work in excess of this amount must be approved by the City Council.

IV. Consultant shall perform the following tasks at the following rates: See the attached fee estimate on the next page.

Principal
Engineer
Senior
Hydrogeologist
Associate
Engineer
Assistant
Engineer
Engineering
Assistant
Total
Hours Labor Expenses
ConfluenceES
Total
$ 240 $ 230 $ 155 $ 145 $ 130 1%
Task/Subtask
Task 0 – Program Management

0.1 Program Coordination 52 0 52 0 0 104 $ 20,540 $ 205 $ 20,745

0.2 Recycled Water Team Coordination Meetings 65 0 65 0 0 130 $ 25,675 $ 257 $ 25,932

0.3 Program Manager/City Coordination Meetings 91 0 91 0 0 182 $ 35,945 $ 359 $ 36,304

0.4 Public Meetings 57.5 0 0 0 0 57.5 $ 13,800 $ 138 $ 13,938

0.5 Public Outreach Support 48 0 0 0 0 48 $ 11,520 $ 115 $ 11,635 Task Total 313.5 0 208 0 0 521.5 $107,480 $ 1,075 $ 108,555 Task 1 – Project Controls

1.1 Budget Control 24 0 24 0 0 48 $ 9,480 $ 95 $ 9,575

1.2 Schedule Control 12 0 24 0 0 36 $ 6,600 $ 66 $ 6,666

1.3 Quarterly Reports (PWAB Reports) 24 0 48 0 0 72 $ 13,200 $ 132 $ 13,332 Task Total 60 0 96 0 0 156 $ 29,280 $ 293 $ 29,573
Task 2 – Hydrogeologic Design Management

2.1 Pre-Permitting Injection Test/Tracer Study No. 2 10 0 20 10 0 40 $ 6,950 $ 70 $ 7,020

2.2 Hydrogeologic Design Coordination 20 0 20 0 0 40 $ 7,900 $ 79 $ 7,979

2.3 Hydrogeologic Investigation and Groundwater Modeling Oversight 20 0 10 10 0 40 $ 7,800 $ 78 $ 7,878 Task Total 50 0 50 20 0 120 $ 22,650 $ 227 $ 22,877
Task 3 – Recycled Water Facilities Design Management

3.1 Recycled Water Facilities Design Coordination 60 0 60 0 0 120 $ 23,700 $ 237 $ 23,937

3.2 Recycled Water Facilities Design Review 40 0 40 20 20 120 $ 21,300 $ 213 $ 21,513

3.3 Bid Phase Support Services 40 0 40 0 0 80 $ 15,800 $ 158 $ 15,958 Task Total 100 0 100 20 20 240 $ 45,000 $ 450 $ 45,450
Task 4 - Environmental & Permitting Support

4.1 Coastal Development Permit Support 10 0 10 10 10 40 $ 6,700 $ 67 $ 6,767

4.2 EIR Support 10 0 10 10 10 40 $ 6,700 $ 67 $ 6,767

4.3 Environmental Permitting/Approval Support 10 0 10 20 10 50 $ 8,150 $ 82 $ 8,232

4.4 Permitting Agency Coordination Meetings 20 0 0 20 0 40 $ 7,700 $ 77 $ 7,777

4.5 CDP Special Condition Reports 40 0 40 40 0 120 $ 21,600 $ 216 $ 21,816 Task 5 – RWQCB/DDW Permitting Support

5.1 ESCP Support 0 0 0 12 0 12 $ 1,740 $ 17 $ 1,757

5.2 ROWD Support 20 0 10 10 0 40 $ 7,800 $ 78 $ 7,878

5.3 Engineering Report Support 20 0 10 10 0 40 $ 7,800 $ 78 $ 7,878

5.4 RWQCB/DDW Meetings 12 0 12 0 0 24 $ 4,740 $ 47 $ 4,787 Task Total 52 0 32 32 0 116 $ 22,080 $ 221 $ 22,301
Task 6 – Funding & Financing Support

6.1 CWSRF Loan Support 20 0 20 0 0 40 $ 7,900 $ 79 $ 7,979

6.2 FY 25/26 USBR Title XVI Grant Support 20 0 20 40 0 80 $ 13,700 $ 137 $ 13,837

6.3 Prop 1 Round 2 IRWM Implementation Grant Support 20 0 20 0 0 40 $ 7,900 $ 79 $ 7,979

6.4 Funding/Financing Agency Reports 20 0 40 40 0 100 $ 16,800 $ 168 $ 16,968

6.5 Funding Opportunities Evaluation 20 0 20 20 20 80 $ 13,400 $ 134 $ 13,534 Task Total 100 0 120 100 20 340 $ 59,700 $ 597 $ 60,297 Total 806 - 716 272 70 1,864 $352,840 $ 3,528 $ 356,368 Fee Estimate
Confluence Engineering Solutions
FY 25/26 Recycled Water Program Management
ConfluenceES

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.

01181.0001/657125.1 Page 1 of 4
AMENDMENT NO. 5 TO THE

AGREEMENT FOR CONSULTANT SERVICES

AMONG THE CITY OF MORRO BAY AND
GSI WATER SOLUTIONS, INC.
______________________________________________________________________________ This Amendment No. 5 is entered on the 24th day of June 2025 by and between the CITY OF MORRO BAY, a municipal corporation (City), and GROUND WATER SOLUTIONS INC., dba GSI WATER SOLUTIONS INC., an Oregon corporation (Consultant). City and Consultant are sometimes referred to individually as “Party” and collectively “Parties.”

RECITALS
WHEREAS, City and Consultant entered into an agreement as of October 31, 2018, whereby Consultant agreed to perform Phase 1 and Phase 2 hydrogeological services to support the permitting and design of injection wells for potable reuse for the Water Reclamation Facility (Project), which was approved by the City Council for a Not to Exceed Amount of $351,000.00 (Agreement); and
WHEREAS, on November 10, 2020, the City Council reviewed and approved changes for the Project that would increase the Not to Exceed Amount set forth in the Agreement by the Not to Exceed Amount of $530,000.00 from $351,000.00 to $881,000.00 for Consultant’s satisfactory completion of Phase 3 for the Project and authorized the City Manager to sign such Amendment No. 1 (Amendment No. 1); and
WHEREAS, included in the Amendment No. 1 was an approved contingency amount of up to $220,250 or 25 percent of the amount to be paid pursuant to the Amendment No. 1 that could be authorized by the City Manager for additional services (Contingency); and WHEREAS, the City Manager previously authorized use of $52,650.00 of the Contingency budget for previously completed work outside of the original scope of services to increase the authorized budget for Consultants to Not-to-Exceed Amount of $933,650.00 and thus the sum of $167,600.00 of the Contingency was remaining; and
WHEREAS, through the course of providing the requested services in Amendment No. 1, numerous challenges (associated with permitting, well site access, coordination with other Project work and other requests from City) have been satisfactorily responded to by Consultant.

These additional, out-of-scope services from Consultant have resulted the need to again use a portion of the Contingency; and
WHEREAS, Consultant has provided a proposal for the completion of the requested services for Not-to-Exceed $147,213.00; and
WHEREAS, City Staff and WRF Subcommittee reviewed Consultant’s proposal and determined use of an additional portion of the Contingency budget is warranted due to the unforeseen project

01181.0001/657125.1 Page 2 of 4
conditions and additional services requested from Consultant and approved the Interim City Manager to approve the use of Contingency budget; and
WHEREAS, on May 8, 2023, the Interim City Manager reviewed and approved changes for the Project that would increase the Not-to-Exceed Amount set forth in the Agreement as amended to that date by a Not-to-Exceed Amount of $147,231.00 from $933,650.00 to $1,080,863.00, through use of Contingency Budget for Consultant’s satisfactory completion of Phase 3 for the Project and signed such as Amendment No. 2 (Amendment No. 2); and WHEREAS, with approval of the Amendment No. 2, $20,387.00 of the Contingency remained available; and
WHEREAS, on November 11, 2023, the City Council approved Amendment No. 3 with the Consultant to provide additional Hydrogeologic Technical Support services to support the implementation of the Recycled Water Component of the Water Reclamation Facility Program to increase the previous Not-to-Exceed Amount of One Million Eighty Thousand Eight Hundred Sixty-three Dollars and No Cents ($1,080,863.00) by Two Hundred Thirty Thousand Nine Hundred Dollars and No Cents ($230,900.00), for a new revised total Not-to-Exceed Amount of One Million Three Hundred Eleven Thousand Seven Hundred Sixty-Three Dollars and No Cents ($1,311,763.00); and
WHEREAS, on June 11 2024, the City Council approved Amendment No. 4 with the Consultant to provide services for the Phase 4 Scope of Work and to increase the previous Not-to-Exceed Amount of One Million Three Hundred Eleven Thousand Seven Hundred Sixty-Three Dollars and No Cents ($1,311,763.00) by Thirty Nine Thousand Six Hundred Dollars and No Cents ($39,600.00), for a new revised total Not-to-Exceed Amount of One Million Three Hundred Fifty-One Thousand Three Hundred Sixty-Three Dollars and No Cents ($1,351,363.00) for the Amended Agreement, as herein amended. Agreement; and
WHEREAS, the Agreement, Amendment No.1, Amendment No. 2, Amendment No. 3, and Amendment No. 4 are hereinafter collectively referred to as the “Amended Agreement;” and WHEREAS, the City requires additional Hydrogeologic Technical Support services to support the implementation of the Recycled Water Component of the Water Reclamation Facility Program; and
WHEREAS, Consultant has specific knowledge and experience to provide technical oversight needed to accomplish necessary tasks required to meet the City Council's goals for the Project.

NOW, THEREFORE, City and Consultant mutually agree to further amend the Amended Agreement as follows:

1. Unless otherwise expressly stated herein or the context requires, all terms shall have the same meaning as provided in the Agreement.

01181.0001/657125.1 Page 3 of 4

2. The revised scope of services to be provided by Consultant, pursuant to the Amended Agreement, as hereby amended, shall include the tasks included in Scope of Work, as set forth on pages 1-6 of Exhibit A hereto, which are incorporated herein by this reference and are additive to, and not a replacement of, prior work performed under the Amended Agreement.

The compensation to be paid for the Scope of Work shall be paid in accordance with the terms of the Amended Agreement on a time and material basis and shall increase the previous Not-toExceed Amount of One Million Three Hundred Fifty-One Thousand Three Hundred Sixty-Three Dollars and No Cents ($1,351,363.00) by Three Hundred Ninety-Seven Thousand One Hundred Dollars and No Cents ($397,100.00) for a new revised total Not-to-Exceed Amount of One Million Seven Hundred Forty-Eight Thousand Four Hundred Sixty-Three Dollars and No Cents ($1,748,463.00) for the Amended Agreement, as herein amended. Consultant shall not be compensated for any services rendered in connection with its performance of the Scope of Work, which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager in accordance with the Amended Agreement.

3. Except as expressly stated herein, all other terms and conditions in the Agreement shall remain in full force and effect.

4. The contract expiration date for the Amended Agreement shall be extended from December 31, 2025 through December 31, 2026.

5. The effective date of this Amendment No. 5 shall be deemed to be June 24, 2025 (Effective Date).

IN WITNESS WHEREOF, the Parties have caused this Amendment No. 5 to be executed by their duly authorized representatives.

CITY OF MORRO BAY GSI WATER SOLUTIONS, INC.
a municipal corporation
By: _____________________________ By: _____________________________ Yvonne Kimball, Susan Haupt
City Manager President
Dated: June , 2025 Dated: June , 2025
By: ___________________________
Liesl Deck
Chief Financial Officer
Dated: June __, 2025

01181.0001/657125.1 Page 4 of 4
Attest:
________________________
Dana Swanson, City Clerk
Approved As To Form:
_________________________
Robert Schultz, Interim City Attorney

01181.0001/813182.1 A-1

EXHIBIT A

SCOPE OF SERVICES
I. Consultant will perform services described in Consultant’s Scope of Work 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.

GSI Water Solutions, Inc. 800 Quintana Road, Suite 2C, Morro Bay, CA 93442 www.gsiws.com June 16, 2025
Mr. Greg Kwolek
Director of Public Works
City of Morro Bay
[email protected]
RE: Proposal for Amendment to GSI Phase 4 Professional Services for IPR Project Development Dear Mr. Kwolek:

GSI Water Solutions, Inc. (GSI), has prepared this proposal to the City of Morro Bay (City) to amend the Scope of Work to include additional technical analyses that have been identified as important elements for the City’s planned indirect potable reuse (IPR) program.

As you know, GSI has been involved in numerous aspects of the City’s efforts to implement the IPR program, and understands the technical, institutional, and regulatory challenges that need to be addressed to make this program a success. GSI personnel have been supporting the City on this effort since 2015, and we bring a wealth of institutional understanding and experience to the program.

Our last scope was scheduled to be completed by June 2024. Additional work has been conducted since then in response to City staff requests and continues to be recommended by City staff and staff extension. We recommend conducting the additional tasks requested by City staff and identified in this amended scope of work based upon our understanding of the anticipated needs of the IPR program. We believe this effort will provide the level of accuracy and technical documentation that is needed for the successful permitting and implementation of this project.

We look forward to continuing our partnership with you, and to support the City’s goal of diversifying their water supply portfolio and reducing reliance on variably available imported water from the State Water Project. Thank you for your consideration of our proposal.

Sincerely,
GSI Water Solutions

Tim Thompson, PG, CHG Dave O’Rourke, PG, PE
Principal Water Resources Consultant Principal Hydrogeologist

PROPOSAL: AMENDMENT TO GSI PHASE 4 PROFESSIONAL SERVICES FOR IPR PROJECT DEVELOPMENT GSI Water Solutions, Inc. 2
Summary of Work Conducted to Date
As part of the City of Morro Bay’s plan to augment its water supply with recycled water, GSI has conducted a series of evaluations to determine the feasibility of injecting and subsequently recovering highly-treated recycled water.

GSI has prepared several technical documents in the past few years, which build upon work done in prior years:

1. GSI has designed, permitted, installed and tested the initial injection well (IW-1).

2. GSI has conducted detailed groundwater modeling, including a range of scenarios to support well site selection, Regional Board permitting considerations and project operational analyses.

3. GSI has supported the Carollo Engineers and the City in discussions and planning with the Regional Board to guide the development of a Groundwater Replenishment and Reuse Permit (GRRP), including completion of the four consecutive quarterly groundwater sampling events as required prior to issuance of the permit.

4. GSI conducted geochemical modeling as required by the Regional Board to evaluate the potential of geochemical reactions that could occur as a result of the proposed IPR activities.

5. More recently, GSI prepared the Basis of Design Report for Groundwater Injection, Monitoring and Extraction (BOD Report), which involved a robust review of historical hydrogeologic data from projects dating back to the 1990s, detailed injection well design, installation and testing, groundwater modeling of project scenarios, summary of water quality considerations, recommendations for monitoring well locations, and regular coordination with Recycled Water Team members.

6. GSI has provided ongoing support to the City regarding evaluation and cost estimates of future City production wells, technical support for grant applications, maintenance of continuous hydrogeologic data collection, and response to any other ancillary requests arising during the operation and maintenance of the City’s groundwater production facilities.

7. In the most recent scope of work, approved in late 2023, GSI was authorized to continue to provide support services for the following elements: injection well site selection, injection well testing (including an added-tracer test), modifications to the groundwater flow model, updates to the BOD Report, permitting support and regular participation in Recycled Water Team meetings. The work on these tasks was anticipated to occur from late-2023 through June of 2024.

As documented in GSI’s BOD Report, the proposed IPR program is technically feasible and permittable. The results of the BOD Report and associated hydrogeologic work conducted to date, including the extensive field exploration and groundwater modeling, provide adequate support for recommending the following tasks be conducted to continue with the permitting and implementation elements of the IPR program.

PROPOSAL: AMENDMENT TO GSI PHASE 4 PROFESSIONAL SERVICES FOR IPR PROJECT DEVELOPMENT GSI Water Solutions, Inc. 3
Phase 4 Amended Scope of Work Items
This Amended Phase 4 scope of work provides descriptions of the additional scope items that have been requested by City staff, which include the following tasks. All other tasks from the 2023 scope are either on-going with sufficient budget to complete or have been completed.

1. City staff decided to increase the duration of the injection and tracer test from 30 days to approximately 125 days to allow for the added tracer to reach either the pumping well (City Well #15) or the nearby monitoring well. This tracer study involves the introduction of a dye compound that can be traced at very low concentrations (parts per trillion) to evaluate the travel speed of water being injected at IW-1 while continuous pumping is occurring at City well MB-15. After initial results were obtained from the tracer field sampling, sampling frequency was increased from once per week to every other day at the recommendation of the analytical lab and city staff. Conducting and evaluating these test results is a key determination in confirming the travel time of the injected water needed to achieve compliance with the permitting rules. The test was completed on March 24 and follow-on work includes preparation of a detailed TM summarizing the test operations, results and implications for project permitting.

2. Refine groundwater basin characterization using combination of results of recent geophysical studies and lithological data from the many wells and borings in the basin. This effort will provide more accurate depths of the permeable sediments in the basin which are critical to understand to optimize IPR operations. Additionally, better clarity on the existence of paleo-channels formed during past geologic periods will support groundwater model accuracy and understanding of groundwater flow characteristics and velocities associated with proposed injection wells. Results will be summarized in a brief TM and used to update the groundwater model.

3. Additional groundwater modeling work has been identified as valuable to planning for future injection well sites and project permitting. New data from geophysical surveys conducted in 2025 and from well condition assessment work will be used to refine the groundwater model and improve its accuracy.

Following groundwater model revisions, up to 4 additional scenarios will be conducted to evaluate anticipated travel time from proposed injection wells to the City wellfield near Highway 1.

4. The Regional Board issued the revised aquifer storage and recovery (ASR) permit, which stipulates that quarterly and annual compliance monitoring reporting will be conducted. The permit requires four quarterly reports: Q4 2024 through Q3 2025, plus Annual Reports for calendar years 2024 and 2025.

Preparation of these reports was not included in the previous GSI scope of work because that scope was only for the first half of 2024.

5. As directed by City staff, GSI will continue to attend Recycled Water Team meetings and conduct Project Management through June 2026. The original budget for this task was only planned to cover work through June of 2024.

Phase 4 Amended Scope of Work: Optional Tasks

1. Plan for and conduct tracer test at second injection well following installation. Work will include preparation of a tracer test workplan (similar to previous tracer test workplan at IW-1), set up of test, oversight of test (up to 4 months duration) and preparation of summary memo following termination of test.

2. Prepare detailed anti-degradation analysis in collaboration with Carollo if DDW requires this analysis.

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

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

III. The base fee, contingency, optional tasks, and total Agreement amount are as follows:

Base Fee
The Base Fee for this agreement, not including the contingency, is Two Hundred Sixty-One Thousand Dollars and No Cents ($261,000.00).

Contingency
The City Manager may approve additional work not to exceed ten percent (10%) of the Base Fee included in Exhibit C of Two Hundred Sixty-One Thousand Dollars and No Cents ($261,000.00).

In no event shall the sum of the authorized contingency exceed an amount of Twenty-Six Thousand One Hundred Dollars and No Cents ($26,100.00).

Optional Tasks
Included in the Fee Estimate are two (2) optional tasks, which are described below. (1) Optional Task 1 – Additional Tracer Testing
For the scope of work for this optional task, see Exhibit A. If the City Manager determines to approve this optional task, this task shall be satisfactorily completed for the Not-toExceed cost of Seventy Thousand Dollars and No Cents ($70,000.00). (2) Optional Task 2 – Anti-Degradation Analysis
For the scope of work for this optional task, see Exhibit A. If the City Manager determines to approve this optional task, this task shall be satisfactorily completed for the Not-toExceed cost of Forty Thousand Dollars and No Cents ($40,000.00).

If the City Manager determines to approve any or all of the optional tasks described in Exhibit C, those tasks shall be satisfactorily completed for the Not-to-Exceed cost of One Hundred Ten Thousand Dollars and No Cents ($110,000.00).

Total Agreement Amount
The total amount for this agreement amendment, including the contingency and optional tasks, shall not exceed Three Hundred Ninety-Seven Thousand One Hundred Dollars and No Cents ($397,100.00). Any additional work in excess of this amount must be approved by the City Council.

IV. Consultant shall perform the following tasks at the following rates: See the attached fee estimate on the next page.

PROPOSAL: AMENDMENT TO GSI PHASE 4 PROFESSIONAL SERVICES FOR IPR PROJECT DEVELOPMENT GSI Water Solutions, Inc. 4
Budget
The following tables present budgets for both the required and optional tasks associated with this Phase 4 Amended Scope of Work. We propose to conduct this work on a time-and-materials basis in accordance with the attached GSI 2025 Fee Schedule. We will not exceed this budget without prior approval.

Phase 4 Scope
Item Status Original Budget
Exceedence
of Budget as
of 05/31/25
Additional
Hours
Needed
Budget
Amendment
Request

1.1: Select
Locations for 2
Additional
Injection Wells
Complete $12,225 $0 0 No

1.2: Additional
Injection Testing
at IW-1
Scope expansion from
1-month test to 4-month
test with increased sampling
frequency.

Testing completed.

Technical Memo to be
completed.
$38,470 $86,000 144 Yes. $112,500.

1.3: Conduct
Additional
Modeling
Scenarios
Initial Modeling scenarios as
are complete. Additional
scenarios needed using
updated groundwater basin
data
$41,350 0 163 Yes. $45,000

1.4: Refinements
to BOD Report Complete $40,710 $0 0 No

2.1: Prepare Title
22 Engineering
Report Sections
Complete pending
regulatory review. $25,140 $0 0 No

2.2: ROWD Report
Sections Ongoing $36,600 $0 0 No

2.3: ASR Permit
and Reporting
through June
2024
Not completed to date due
to schedule extension from
June 2024 and
corresponding Annual
Report requirements.
$17,180 $0 202 Yes. $34,300.

3.1: Meetings and
Project
Management
Extended from July 2024
through June 2026 $19,225 $15,336 138 Yes. $54,700.

5.1 (New Task)
Basin
Characterization
Refinements
Refine Groundwater Basin
Characteristics based on
new geophysical results and
existing well data
$0 $0 80 Yes. $15,000
Original Phase 4 Budget $270,500
Total Budget Amendment Request $261,500
Revised Phase 4 Budget $532,000

PROPOSAL: AMENDMENT TO GSI PHASE 4 PROFESSIONAL SERVICES FOR IPR PROJECT DEVELOPMENT GSI Water Solutions, Inc. 5
OPTIONAL Phase
4 Scope Item Status Original Budget
Exceedence
of Budget as
of 05/31/25
Additional
Hours
Needed

OPTIONAL
Budget
Amendment
Request
Option #1: Tracer
Test at IW-2
Tracer Test to be conducted
if warranted/required at
second injection well.
$0 0 366 $70,000
Option #2: AntiDegradation
Analysis
Analysis to be conducted if
warranted/required to
comply with DDW.
$0 0 206 $40,000

2025 GSI Fee Schedule
Labor Category Hourly Rate
Technical Professionals
Principal $275 – $360
Supervising $220 – $310
Managing $175 – $230
Consulting $155 – $195
Project $140 – $175
Staff $125 – $160
Other Services
GIS/Graphics/Database $130 – $185
Editor/Documents $130 – $155
Administration $95 – $125
The hourly rate for trial preparation and expert witness testimony is 1.5 times the standard billing rate shown above.

Expenses
• Mileage: IRS authorized rate/mile plus 10 percent markup • Direct expenses and outside services: Cost plus 10 percent markup • Enterprise GIS: $100 per month for the duration of use *Hourly rates are subject to annual increases on the contract anniversary date.

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.

01181.0001/743363.1 Page 1 of 4

CITY OF MORRO BAY
AMENDMENT NO. 9 TO THE AGREEMENT

FOR CONSULTANT SERVICES

BETWEEN THE CITY OF MORRO BAY AND
FAR WESTERN ANTHROPOLOGICAL RESEARCH GROUP, INC.

This Amendment No. 9 is entered on the 24th day of June 2025 by and between the City of Morro Bay, a municipal corporation (“City”) and Far Western Anthropological Research Group, Inc., a California corporation (“Consultant”). City and Consultant are sometimes referred to individually as “Party” and collectively “Parties.”

RECITALS
WHEREAS, City and Consultant entered into an agreement as of January 1, 2019, for consulting services related to the Water Reclamation Facility (the “Project") for a not to exceed amount of $124,644.01 (the “Agreement”); and
WHERAS, the Parties amended the Agreement as of December 1, 2019, to expand the tasks to be provided by Consultant and to increase the compensation payable in the amount of $5,469,00 (Amendment No. 1), increasing the total compensation payable pursuant to the Agreement to $130,113.01;
WHEREAS, the Parties amended the Agreement as of February 1, 2020, to expand the tasks to be provided by the Consultant and to increase the compensation payable in the amount of $130,809 (Amendment No. 2), increasing the total compensation payable pursuant to the Agreement to $260,922.01;
WHEREAS, the Parties amended the Agreement as of July 13, 2020, to expand the tasks to be provided by the Consultant and to increase the compensation payable in the amount of $21,092 (Amendment No. 3), increasing the total compensation payable pursuant to the Agreement to $282,014.01;
WHEREAS, the Parties amended the Agreement as of January 21, 2021, to extend the contract expiration date of the Consultant Contract from December 21, 2021 to June 30, 2022 as a noncompensable Contract Amendment (Amendment No. 4); and WHEREAS, the Parties amended the Agreement as of January 25, 2021, to expand the tasks to be provided by the Consultant and to increase the compensation payable in the amount of $115,065 (Amendment No. 5), increasing the total compensation payable pursuant to the Agreement $397,079.01; and
WHEREAS, the Parties amended the Agreement as of October 12, 2021, to expand the tasks to be provided by the Consultant and to increase the compensation payable in the amount of

01181.0001/743363.1 Page 2 of 4
$316,262.00 (Amendment No. 6), with and additional $146,824 in optional tasks increasing the total compensation pursuant to the Agreement to $860,165.01; WHEREAS, the Parties amended the Agreement as of June 14, 2022, to extend the contract expiration date of the Consultant Contract from June 30, 2022 through December 31, 2025 as a non-compensable Contract Amendment (Amendment No. 7); and WHEREAS, the Parties amended the Agreement as of January 17, 2024, to expand the tasks to be provided by the Consultant and to increase the compensation payable in the amount of $184,568.00 establish a new Not-To-Exceed amount of $1,044,733.01 for the entire Agreement (Amendment No. 8); and
WHEREAS, the Agreement and Amendment No. 1, No. 2, No. 3, No. 4, No. 5, No. 6, No. 7, and No. 8 are hereinafter referred to as the “Amended Agreement”; and WHEREAS, the City requires additional archaeological testing support services to support the implementation of the Recycled Water Component of the Water Reclamation Facility Program; and
WHEREAS, Consultant has specific knowledge and experience to provide technical oversight needed to accomplish necessary tasks required to meet the City Council's goals for the Project; and
NOW THEREFORE, City and Consultant mutually agree to amend the Amended Agreement as follows:

1. Unless otherwise expressly stated herein or the context requires, all terms shall have the same meaning as provided in the Agreement.

2. The revised scope of services to be provided by Consultant, pursuant to the Amended Agreement, as hereby amended, shall include the Scope of Work for Phase 3 (Recycled Water Facilities) and Phase 4 (Old Wastewater Treatment Plant Decommissioning and Demolition), as set forth on pages 1-10 of Exhibit A, which are incorporated herein by this reference.

The Not to Exceed amount is increased from the previous amount of One Million Forty-Four Thousand Seven Hundred Thirty-Three Dollars and One Cent ($1,044,733.01) by One Hundred Twenty-Nine Thousand Eight Hundred Seventeen Dollars and No Cents ($129,817.00), for a new revised total Not to Exceed of One Million One Hundred Seventy-Four Thousand Five Hundred Fifty Dollars and One Cent ($1,174,550.01) for the Amended Agreement as herein amended.

3. Except as expressly stated herein, all terms and conditions in the Amended Agreement shall remain in full force and effect.

4. The contract expiration date for the Amended Agreement shall be extended from December 31, 2025 through December 31, 2026.

01181.0001/743363.1 Page 3 of 4

5. The effective date of this Amendment No. 9 shall be deemed to be June 24, 2025 (Effective Date).

01181.0001/743363.1 Page 4 of 4
IN WITNESS WHEREOF, the parties will be deemed to have caused this Amendment No. 9 to be executed by their duly authorized representatives as of the Effective Date.

CITY OF MORRO BAY FAR WESTERN ANTHROPOLOGICAL
RESEARCH GROUP, INC.
(2 signatures required)
By: _____________________________ By: _____________________________ Yvonne Kimball ___________________,
City Manager Its _________________
Attest:
_________________________________ By: _____________________________ Dana Swanson, City Clerk _____________________,
Its _________________
Approved As To Form:
_________________________________
Robert Schultz, Interim City Attorney

01181.0001/813182.1 A-1

EXHIBIT A

SCOPE OF SERVICES
I. Consultant will perform services described in Consultant’s Scope of Work 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.

May 12, 2025
Daniel Heimel
Principal Engineer
Confluence Engineering Solutions
2122 9th Street, Suite 200
Los Osos, CA  93402
Re: Morro Bay Water Reclamation Facility Project, Additional Construction Phase 3 Testing, Willow Camp Creek IPR Alignment, Morro Bay, San Luis Obispo County, California.

Dear Dan:

Per your request, the following serves as a scope of work and cost estimate for additional archaeological presence/absence testing for Construction Phase 3 (IPR alignment with segment 5A). This IPR alignment is in an archaeologically sensitive area and requires testing in accordance with the Programmatic Agreement along the City, Environmental Protection Agency (EPA), and the State Historic Preservation Officer (SHPO). If the results of testing are positive and the identified archaeological site cannot be avoided, additional investigations will be conducted that are not covered under this scope.

In June 2024, Far Western completed archaeological testing for potential injection well locations and recycled water pipeline alignments. The City is now considering another alternative recycled water pipeline through the Vistra Property, just south of archaeological site CA‐SLO‐16.

Padre Associates Inc. conducted testing on the Vistra property in 2023 adjacent to the proposed alignment, which resulted in extending the boundary of SLO‐16 to the south close to IPR segment 5A.

The scope of work assumes five borings will be drilled at roughly 25‐meter intervals across the proposed water pipeline alignment. If mechanical borings are not feasible due to access, hand augering may be required. Prefield work will include one field visit to mark Underground Service Alert and a private utility locator to scan the testing area prior to fieldwork. The scope assumes testing between 25 to 45 feet below surface to account for depth of project impacts. Cores will be opened on site to determine the presence or absence of cultural materials. Findings from this investigation will be documented in a Phase 3 addendum report to be submitted to the City, the EPA, consulting tribes, and SHPO for review.

The enclosed cost estimate details labor and direct costs necessary to complete this testing.

This work assumes concurrent field effort with the testing for Phase 4 of the project; if work is not concurrent a budget modification will be required for standalone efforts. Additionally, the level of effort for identification will need to be approved by the EPA prior to initiating this investigation. The costs of additional investigations and any necessary construction monitoring are not included here.

Water Reclamation Facility Project, Construction Phase 3 2 Far Western Additional Archaeological Presence/Absence Testing
Morro Bay, San Luis Obispo County, California
If you have any questions, please contact me at [email protected] or 530‐756‐3941. Thank you for your consideration.

Best Regards,
Philip Kaijankoski
Principal
Enclosures: Cost Estimate

May 12, 2025
Daniel Heimel
Principal Engineer
Confluence Engineering Solutions
2122 9th Street, Suite 200
Los Osos, CA 93402
Re: Morro Bay Water Reclamation Facility Project, Construction Phase 4 Archaeological Presence/Absence Testing, Morro Bay, San Luis Obispo County, California.

Dear Dan:

Per your request, the following serves as a scope of work and cost estimate for archaeological presence/absence testing for Construction Phase 4 (Decommissioning of the Existing Wastewater Treatment Plant). The Existing Wastewater Treatment Plant (EWTP) is in an archaeologically sensitive area and will require preconstruction testing in accordance with the Programmatic Agreement among the City of Morro Bay (City), Environmental Protection Agency (EPA), and the State Historic Preservation Officer (SHPO). If the results of the testing are positive and the identified archaeological site cannot be avoided, additional investigations will be necessary that are not covered under this scope.

Decommissioning of the EWTP includes demolishing and removing virtually all the above ground structures, removal of subsurface structures and piping 1.2 to 1.5 meters below ground surface, and removal of 12 sludge drying beds located on the southern end of the site.

Additionally, all existing pavements, concrete slabs, and landscaping rock will be removed.

Following this all excavations will be backfilled, compacted, and graded to restore the site to a safe and level configuration roughly matching the surrounding areas.

This scope of work assumes ten borings will be drilled at roughly 25-meter intervals across the Phase 4 project area where accessible. Prefield work will include one field visit to mark Underground Service Alert. The scope assumes testing to 5 feet below surface; however, per your request we have included an optional deep field testing to drill cores to 25 feet below surface to account for potential deeper project impacts. Cores will be opened on site, as they are drilled to determine the presence or absence of cultural materials. Findings from this investigation will be documented in a Phase 4 testing report to be submitted to the City, the EPA, consulting Tribes, and SHPO for review.

The enclosed cost estimate details labor and direct costs necessary to complete this testing, This work assumes concurrent field effort with the additional Phase 3 testing at Willow Camp Creek; if work is not concurrent a budget modification will be required for standalone efforts.

The costs of additional investigations and any necessary construction monitoring are not included here.

Water Reclamation Facility Project, Construction Phase 3 2 Far Western Additional Archaeological Presence/Absence Testing
Morro Bay, San Luis Obispo County, California
If you have any questions, please contact me at [email protected] or 530-756-3941. Thank you for your consideration.

Best Regards,
Philip Kaijankoski
Principal
Enclosures: Cost Estimate

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

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

III. The base fee, contingency, optional tasks, and total Agreement amount are as follows:

Base Fee
The Base Fee for this agreement (both Phase 3 and Phase 4), not including the contingency, is One Hundred Eighteen Thousand Sixteen Dollars and No Cents ($118,016.00). The Base Fee for Phase 3 individually is Forty-Eight Thousand Four Hundred Eleven Dollars and No Cents ($48,411.00).

The Base Fee for Phase 4 individually is Sixty-Nine Thousand Six Hundred Five Dollars and No Cents ($69,605.00).

Contingency
The City Manager may approve additional work not to exceed ten percent (10%) of the Base Fee included in Exhibit C of One Hundred Eighteen Thousand Sixteen Dollars and No Cents ($118,016). In no event shall the sum of the authorized contingency exceed an amount of Eleven Thousand Eight Hundred One Dollars and No Cents ($11,801.00).

Optional Tasks
There are no optional tasks included in this agreement amendment.

Total Agreement Amount
The total amount for this agreement amendment, including the contingency, shall not exceed One Hundred Twenty-Nine Thousand Eight Hundred Seventeen Dollars and No Cents ($129,817.00).

Any additional work in excess of this amount must be approved by the City Council.

IV. Consultant shall perform the following tasks at the following rates: See the attached fee estimate on the next page.

COST ESTIMATE SUMMARY
Project Title: Morro Bay WRF Client Name: City of Morro BayTask: Additional Phase 3 Injection Well Testing Contact: Daniel Heimel

TASK LABOR HOURS LABOR COST TRAVEL EXPENSES OTHER DIRECT COSTS SUBCONSULTANTS SUBTOTAL Fiscal Year 24‐25 (Lump Sum) (Lump Sum) (Lump Sum)
MANAGEMENT 16 1,731 $            ‐ $                           ‐ $                                 ‐ $ $ 1,731 PREFIELD 51 6,378 $            ‐ $                           ‐ $                                 ‐ $ $ 6,378 FIELD 56 7,843 $ $ 1,590 $ 16,471 $ 737 $ 26,641
LABORATORY 32 3,554 $            ‐ $ $                                ‐ 385 $ $ 3,939 DELIVERABLE 82 9,722 $            ‐ $                           ‐ $                                 ‐ $ $ 9,722 GRAND TOTAL $ 48,411

Contract Name: Standard 150/15 Client Name: City of Morro Bay Contract No.: 150_15 Contact: Daniel HeimelFiscal/Rate Year: 24‐25 Rates Valid for Period: 10/01/2024‐09/30/2025Date: May 12, 2025 Services under this Contract Subject to Prevailing Wage: No YR1 Staffing Restrictions: None
Project Name Morro Bay WRF
Additional Phase 3 Injection Well Testing
* A Cost of Living adjustment of up to four percent or the annual average of the Consumer Price Index (whichever is higher) will be applied annually; not inclusive of merit increases.

Regular Employees MANAGEMENT PREFIELD FIELD LABORATORY DELIVERABLE Name REG/OT Rate Hrs Hrs Hrs Hrs Hrs Hrs Amount
Kaijankoski, Phil REG $195.50 2 10 20 2 12 46 8,993 $Caywood, Emily REG $109.25 4 16 20 4 40 84 9,177 $Johnson, Melissa REG $140.88 2 ‐‐ ‐ ‐ 2 282 $ Camacho Servin, Bianca REG $77.63 8 4 ‐‐ ‐ 12 932 $
Phillip, Ryan REG $109.25 ‐ 8 16 ‐‐ 24 2,622 $
Hill, Amanda REG $96.66 ‐ ‐‐ ‐ ‐ ‐ ‐ $
Townsend, Valarie REG $96.60 ‐ 4 ‐‐ ‐ 4 386 $
Tanner, Ashley REG $103.50 ‐ 3 ‐‐ ‐ 3 311 $
DeArmond, Shannon REG $195.50 ‐ 2 ‐‐ 2 4 782 $
Kary, Jessica REG $81.94 ‐ ‐‐ 8 ‐ 8 656 $
Harold, Laura REG $138.00 ‐ ‐‐ 2 ‐ 2 276 $
Bradeen, Jill REG $100.63 ‐ 4 ‐‐ 8 12 1,208 $
Kramm, Jacqueline REG $98.15 ‐ ‐‐ ‐ 8 8 785 $
Pardee, Michael REG $121.15 ‐ ‐‐ ‐ 2 2 242 $
Eubanks, Jill REG $109.25 ‐ ‐‐ 8 ‐ 8 874 $
Armstrong‐Ingram, Angela REG $115.00 ‐ ‐‐ 8 ‐ 8 920 $
Davis, Kathy REG $115.00 ‐ ‐‐ ‐ 2 2 230 $
Louie, Aileen REG $69.00 ‐ ‐‐ ‐ 8 8 552 $
TOTAL LABOR $1,731 $6,378 $7,843 $3,554 $9,722
Travel Expenses County MANAGEMENT PREFIELD FIELD LABORATORY DELIVERABLE Total Unit Cost Travel Unit Unit Rate Qty Qty Qty Qty QtyPer Diem (Motel) GSA Rate ‐‐ CA: San Luis Obisp Night $203.00 ‐‐ 5 ‐‐ Meals/Incidentals GSA Rate ‐‐ CA: San Luis Obisp Day $86.00 ‐‐ 5 ‐‐ SUBTOTAL TRAVEL EXPENSES $0 $0 $1,445 $0 $0
FEE ON TRAVEL EXPENSES 10% $0 $0 $145 $0 $0
TOTAL TRAVEL EXPENSES $0 $0 $1,590 $0 $0
$ 1,445
$ 1,590
$ 430
Total
Title
Production DirectorProduction SpecialistGIS AnalystLab DirectorPrincipalSenior ArchaeologistProduction/Design SpecialistSenior ArchaeologistSenior Lab Scientist Lab Assistant
$ 29,227
Logistics CoordinatorLab DirectorOperations SupervisorPrincipalSenior ArchaeologistProject and Proposal DirectorAsst. Project ManagerStaff Archaeologist $ 1,015
$ 145
(530) 756‐3941 Davis  (415) 413‐1450 Sausalito
(775) 847‐0223 Carson City  (702) 982‐3691 Henderson Page 135 of 335 Contract Name: Standard 150/15 Client Name: City of Morro Bay Contract No.: 150_15 Contact: Daniel HeimelFiscal/Rate Year: 24‐25 Rates Valid for Period: 10/01/2024‐09/30/2025Date: May 12, 2025 Services under this Contract Subject to Prevailing Wage: No YR1 Staffing Restrictions: None
Project Name Morro Bay WRF
Additional Phase 3 Injection Well Testing
Other Direct Costs 0 MANAGEMENT PREFIELD FIELD LABORATORY DELIVERABLE Total Unit Cost ODCs Unit Unit Rate Qty Qty Qty Qty Qty
Sample $350.00 ‐ ‐‐ 1 ‐
ODCs (Unit Costs) Subtotal $0 $0 $0 $350 $0
At Cost ODCs $ $ $ $ $Coring Rig At Cost ‐ $0 $0 $10,270 $0 $0 County Drilling Permit At Cost ‐ $0 $0 $2,400 $0 $0Private Utility Locator At Cost ‐ $0 $0 $2,304 $0 $0 ODCs (At Cost) Subtotal $0 $0 $14,974 $0 $0
SUBTOTAL OTHER DIRECT COSTS $0 $0 $14,974 $350 $0
FEE ON DIRECT COSTS 10% $0 $0 $1,497 $35 $0
TOTAL OTHER DIRECT COSTS $0 $0 $16,471 $385 $0
Subconsultants 0 MANAGEMENT PREFIELD FIELD LABORATORY DELIVERABLE Total Tribal Representative Unit Rate Qty Qty Qty Qty Qty
Native American (L1) $75.00 ‐‐ 8 ‐‐
Mileage $0.700 ‐‐ 100 ‐‐
Tribal Representative Subtotal $0 $0 $670 $0 $0
SUBTOTAL SUBCONSULTANTS $0 $0 $670 $0 $0
FEE ON SUBCONSULTANTS 10% $0 $0 $67 $0 $0
TOTAL SUBCONSULTANTS $0 $0 $737 $0 $0
GRAND TOTAL $1,731 $6,378 $26,641 $3,939 $9,722
$ 2,400$ 10,270
Radiocarbon $ 350
$ 48,411
$ 70
$ 737
$ 670
$ 67
$ 670
$ 16,856
$ 1,532
$ 350
$ 15,324
$ 2,304$ 14,974
$ 600
(530) 756‐3941 Davis  (415) 413‐1450 Sausalito
(775) 847‐0223 Carson City  (702) 982‐3691 Henderson Page 136 of 335

COST ESTIMATE SUMMARY
Project Title: Morro Bay WRF Client Name: City of Morro BayTask: Construction Phase 4 Testing Contact: Daniel Heimel

TASK LABOR HOURS LABOR COST TRAVEL EXPENSES OTHER DIRECT COSTS SUBCONSULTANTS SUBTOTAL Fiscal Year 24‐25 (Lump Sum) (Lump Sum) (Lump Sum)
MANAGEMENT 16 1,731 $            ‐ $                           ‐ $                                 ‐ $ $ 1,731 PREFIELD 51 6,378 $            ‐ $ $                             ‐ 2,534 $ $ 8,912 SHALLOW FIELD 56 7,843 $ $ 2,958 $ 13,937 $ 1,397 $ 26,135 LABORATORY 40 4,327 $            ‐ $ $                                ‐ 770 $ $ 5,097 DELIVERABLE 90 10,517 $          ‐ $                           ‐ $                                 ‐ $ $ 10,517 OPTIONAL DEEP FIELD 48 6,624 $ $ 1,272 $ 7,920 $ 1,397 $ 17,213 GRAND TOTAL $ 69,605

Contract Name: Standard 150/15 Client Name: City of Morro Bay Contract No.: 150_15 Contact: Daniel HeimelFiscal/Rate Year: 24‐25 Rates Valid for Period: 10/01/2024‐09/30/2025 Date: May 2, 2025 Services under this Contract Subject to Prevailing Wage: No YR1 Staffing Restrictions: None
Project Name Morro Bay WRF
Construction Phase 4 Testing
* A Cost of Living adjustment of up to four percent or the annual average of the Consumer Price Index (whichever is higher) will be applied annually; not inclusive of merit increases.

Regular Employees

MANAGEMENT PREFIELD SHALLOW FIELD LABORATORY DELIVERABLE OPTIONAL DEEP FIELD Name REG/OT Rate Hrs Hrs Hrs Hrs Hrs Hrs Hrs Amount
Kaijankoski, Phil REG $195.50 2 10 20 2 12 16 62 12,121 $Caywood, Emily REG $109.25 4 16 20 4 40 16 100 10,925 $Johnson, Melissa REG $140.88 2 ‐‐ ‐ ‐ ‐ 2 282 $ Camacho Servin, Bianca REG $77.63 8 4 ‐‐ ‐ ‐ 12 932 $
Phillip, Ryan REG $109.25 ‐ 8 16 ‐‐ 16 40 4,370 $
Hill, Amanda REG $96.66 ‐ ‐‐ 8 ‐‐ 8 773 $
Townsend, Valarie REG $96.60 ‐ 4 ‐‐ ‐ ‐ 4 386 $
Tanner, Ashley REG $103.50 ‐ 3 ‐‐ ‐ ‐ 3 311 $
DeArmond, Shannon REG $195.50 ‐ 2 ‐‐ 2 ‐ 4 782 $
Kary, Jessica REG $81.94 ‐ ‐‐ 8 ‐‐ 8 656 $
Harold, Laura REG $138.00 ‐ ‐‐ 2 ‐‐ 2 276 $
Bradeen, Jill REG $100.63 ‐ 4 ‐‐ 12 ‐ 16 1,610 $
Kramm, Jacqueline REG $98.15 ‐ ‐‐ ‐ 12 ‐ 12 1,178 $
Pardee, Michael REG $121.15 ‐ ‐‐ ‐ 2 ‐ 2 242 $Eubanks, Jill REG $109.25 ‐ ‐‐ 8 ‐‐ 8 874 $ Armstrong‐Ingram, Angela REG $115.00 ‐ ‐‐ 8 ‐‐ 8 920 $
Davis, Kathy REG $115.00 ‐ ‐‐ ‐ 2 ‐ 2 230 $
Louie, Aileen REG $69.00 ‐ ‐‐ ‐ 8 ‐ 8 552 $
TOTAL LABOR $1,731 $6,378 $7,843 $4,327 $10,517 $6,624
Travel Expenses County
MANAGEMENT PREFIELD SHALLOW FIELD LABORATORY DELIVERABLE OPTIONAL DEEP FIELD Total Unit Cost Travel Unit Unit Rate Qty Qty Qty Qty Qty QtyPer Diem (Motel) GSA Rate ‐‐ CA: San Luis Obisp Night $203.00 ‐‐ 5 ‐‐ 4 Meals/Incidentals GSA Rate ‐‐ CA: San Luis Obisp Day $86.00 ‐‐ 5 ‐‐ 4 Vehicle Rental (Day) Day $172.00 ‐ ‐‐ ‐ ‐ ‐Vehicle Rental (Week) Week $622.00 ‐‐ 2 ‐ ‐‐SUBTOTAL TRAVEL EXPENSES $0 $0 $2,689 $0 $0 $1,156FEE ON TRAVEL EXPENSES 10% $0 $0 $269 $0 $0 $116 TOTAL TRAVEL EXPENSES $0 $0 $2,958 $0 $0 $1,272
$ 3,845
$ 4,230
$ ‐
$ 774$ 1,244
Total
Title
Production SpecialistGIS AnalystLab DirectorLab AssistantPrincipalProduction/Design SpecialistSenior ArchaeologistSenior ArchaeologistLab DirectorProduction Director $ 37,419
Logistics CoordinatorSenior Lab ScientistOperations SupervisorPrincipalSenior ArchaeologistProject and Proposal DirectorAsst. Project ManagerStaff Archaeologist $ 1,827
$ 385
(530) 756‐3941 Davis  (415) 413‐1450 Sausalito
(775) 847‐0223 Carson City  (702) 982‐3691 Henderson Page 138 of 335 Contract Name: Standard 150/15 Client Name: City of Morro Bay Contract No.: 150_15 Contact: Daniel HeimelFiscal/Rate Year: 24‐25 Rates Valid for Period: 10/01/2024‐09/30/2025 Date: May 2, 2025 Services under this Contract Subject to Prevailing Wage: No YR1 Staffing Restrictions: None
Project Name Morro Bay WRF
Construction Phase 4 Testing
Other Direct Costs 0

MANAGEMENT PREFIELD SHALLOW FIELD LABORATORY DELIVERABLE OPTIONAL DEEP FIELD Total
Unit Cost ODCs Unit Unit Rate Qty Qty Qty Qty Qty Qty
Sample $350.00 ‐ ‐‐ 2 ‐‐
ODCs (Unit Costs) Subtotal $0 $0 $0 $700 $0 $0
At Cost ODCs $ $ $ $ $ $
Coring Rig At Cost ‐ $0 $0 $10,270 $0 $0 $7,200
County Drilling Permit At Cost ‐ $0 $0 $2,400 $0 $0 $0Private Utility Locator At Cost ‐ $0 $2,304 $0 $0 $0 $0 ODCs (At Cost) Subtotal $0 $2,304 $12,670 $0 $0 $7,200
SUBTOTAL OTHER DIRECT COSTS $0 $2,304 $12,670 $700 $0 $7,200 FEE ON DIRECT COSTS 10% $0 $230 $1,267 $70 $0 $720
TOTAL OTHER DIRECT COSTS $0 $2,534 $13,937 $770 $0 $7,920 Subconsultants 0

MANAGEMENT PREFIELD SHALLOW FIELD LABORATORY DELIVERABLE OPTIONAL DEEP FIELD Total
Tribal Representative Unit Rate Qty Qty Qty Qty Qty Qty Native American (L1) $75.00 ‐‐ 16 ‐‐ 16
Mileage $0.700 ‐‐ 100 ‐‐ 100
Tribal Representative Subtotal $0 $0 $1,270 $0 $0 $1,270 SUBTOTAL SUBCONSULTANTS $0 $0 $1,270 $0 $0 $1,270
FEE ON SUBCONSULTANTS 10% $0 $0 $127 $0 $0 $127
TOTAL SUBCONSULTANTS $0 $0 $1,397 $0 $0 $1,397
GRAND TOTAL $1,731 $8,912 $26,135 $5,097 $10,517 $17,213 $ 2,400$ 17,470
Radiocarbon $ 700
$ 69,605
$ 140
$ 2,794
$ 2,540$ 254
$ 2,540
$ 25,161
$ 2,287
$ 700
$ 22,874
$ 2,304$ 22,174$ 2,400
(530) 756‐3941 Davis  (415) 413‐1450 Sausalito
(775) 847‐0223 Carson City  (702) 982‐3691 Henderson Page 139 of 335 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.

Prepared By: AD Dept Review: GK
City Manager Review: _YK__ City Attorney RRWS__
Staff Report
TO: Honorable Mayor and City Council DATE: June 12, 2025 FROM: Austin Della, PE – Senior Civil Engineer
SUBJECT: Approval of Professional Services Agreement with Anchor QEA for the Wastewater Treatment Plant Decommissioning and Demolition Engineering Design

RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute a professional services agreement in the amount of $901,000. with Anchor QEA (A-QEA) for the design services for the Wastewater Treatment Plant (WWTP) Demolition and Decommissioning project; and

2. Authorize the City Manager to approve contract amendments, if needed, up to a 5% contingency ($45,050), for a total not-to-exceed amount of $946,050.

ALTERNATIVES

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

2. City Council may provide other direction to staff.

FISCAL IMPACT
No new funding is requested for this contract. The recommended agreement with A-QEA for the Design of the WWTP Demolition and Decommissioning will cost the City $946,050.00. This cost is covered in the WWTP Demolition and Decommissioning project budget of $5,110,500 from FY22-23 through FY24-25 Budget Adoptions. Funding for this project was budgeted in the Sewer Fund.

Additional project funding is being requested in the FY 25-26 budget as shown below.

Fiscal Year Amount Fund
FY 22-23 $135,000 Sewer
FY 22-23 $22,500 Enterprise Transfer
FY 23-24 $135,000 Sewer
FY 24-25 $4,818,000 Sewer
FY 25-26 $4,097,000* Sewer
Total $9,207,500
*Current budget request

BACKGROUND/ DISCUSSION
The City operated the WWTP in accordance with the Joint Powers Agreement (JPA) with Cayucos AGENDA NO: 7.i
MEETING DATE: June 24, 2025

Sanitary District (CSD) to treat both the City’s and CSD’s wastewater from City incorporation in 1964 to 2023. Due to the age of the WWTP, vulnerability to flooding, tsunami inundation and sea-level rise, inability to meet core Clean Water Act (CWA) water quality standards, and the possibility of potential fines/penalties for failure to meet the Central Coast Regional Water Quality Control Board’s mandate for CWA compliance by 2023, the City and CSD initiated their own separate wastewater treatment facilities to replace the WWTP.

The City’s Water Reclamation Facility program’s Coastal Development Permit (CDP) from the California Coast Commission includes a special condition to decommission and demolish the WWTP.

The Demolition and Decommissioning project requires a thorough removal of all plant components (e.g., building, fences, storage tanks, etc.), with potential exception of those specified in the Wastewater Treatment Plant Removal and Restoration Plan Special Condition No. 7 (Maintenance Building, Administration Building, Chlorine Building, and Collection Shed), and the site restored to a safe and level condition, comparable to the surrounding areas.

Due to several factors, the project activities are expected to come with environmental risks. The City’s Coastal Development Permit (CDP) requires thorough removal of all plant components, which includes the potential for deep excavations and dewatering activities. Several structures extend below the groundwater table, and dewatering in such proximity to the coastline raises significant concerns about impacts to the local groundwater basin, including the potential intrusion of seawater. Because of these concerns, the City is currently in discussions with the California Coastal Commission regarding a modified removal approach that would limit excavation to components within five feet of the existing ground surface. In addition, there is a high likelihood of encountering hazardous materials during demolition, including lead-based paint, asbestos-containing materials, and potentially mercury.

These materials must be identified, removed, and disposed of in accordance with all applicable regulations to ensure the safety of workers, nearby residents, and the surrounding environment.

Staff issued an RFP for design services for the Decommissioning and Demolition project in January 2025. A staff panel reviewed a total of two responsive and responsible proposals. After conducting reviews and interviews of both proposals, City staff found that A-QEA was the most qualified for the work. Staff negotiated cost reductions as well as additional scope for option soils testing. The professional services agreement including the revised scope can be found in Attachment 1.

The design phase is expected to begin by July 2025 and last 10 months. The final design report and recommendations are expected to be presented in May of 2026, after which the City will go to bid for the decommissioning and demolition work.

CONCLUSION
Staff recommends the City Council approve and authorize the City Manager to execute a contract in the amount of $901,000. with AQEA for Design of the Demolition and Decommissioning of the WWTP, and further authorize the City Manager to approve contract amendments, if needed, up to a 5% contingency ($45,050), for a total not-to-exceed amount of $946,050.

ATTACHMENTS

1. A-QEA Professional Services Agreement

01181.0001/813182.1 D-1

AGREEMENT FOR SERVICES

BETWEEN CITY OF MORRO BAY AND
ANCHOR QEA, INC.

THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into this 27 day of June, 2025 by and between CITY OF MORRO BAY, a California municipal corporation (“City”) and ANCHOR QEA, INC, a Washington 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 NINE HUNDRED FORTY-SIX THOUSAND AND FIFTY Dollars ($946,050.00) (“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

01181.0001/813182.1 D-3
project meetings 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 June 27, 2027.

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

01181.0001/813182.1 D-4
such delay is justified. City’s determination shall be final and conclusive upon the Parties to this 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 Margaret Carrillo-Sheridan, P.E.,(315) 414-2049, [email protected], 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 Austin Della, P.E., Senior Engineer, (805) 772-6266 (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,

01181.0001/813182.1 D-5
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 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.

01181.0001/813182.1 D-6
(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 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

01181.0001/813182.1 D-7
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.

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.

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(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 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

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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 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.

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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.

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

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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 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

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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 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

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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 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.

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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 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:

Anchor, QEA, Inc, a Washington Corporation
By:

Po-Sun Chen
Chief Executive Officer
By:

Diana Reynolds
Secretary
1201 3rd Avenue, Suite 2600
Seattle, WA 98101
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.

March 2025, Revised June 17, 2025

ANCHOR QEA
Proposal: Wastewater Treatment Plant
Decommissioning and Demolition Design and
Engineering Services During Construction
Professional Services
City of Morro Bay

March 6, 2025
9700 Research Drive
Irvine, California 92618
949.347.2780
City of Morro Bay
ATTN: Austin Della, Senior Civil Engineer
595 Harbor Street
Morro Bay, California 93442
Re: Proposal for Wastewater Treatment Plant Decommissioning and Demolition Design and Engineering Services During Construction
Dear Mr. Della,
Anchor QEA is pleased to provide our proposal to the City of Morro Bay for the decommissioning and demolition design of the City’s former wastewater treatment plant. To best serve the City’s decommissioning and demolition needs, our project team includes Cannon Engineering (Cannon), Yeh and Associates, Inc., Health Science Associates (HSA), Ground Penetrating Radar Systems (GPRS), and Eurofins Calscience. Our combined team is uniquely qualified to support the City in planning and executing a complex decommissioning and demolition program and offers the following benefits to the City:

Unmatched Demolition Planning and Design Experience. Anchor QEA team personnel have characterized, decommissioned, and/or demolished more than 20 million square feet of industrial, utility, residential, and commercial space for municipal, industrial, and utility clients throughout the United States.

We recently completed the demolition of an out-of-service water treatment facility in Anacortes, Washington, with similarly aged equipment and structures. Our focus is on supporting our clients in the safe and cost-effective execution of complex demolition projects in various settings. We have a proven track record of writing demolition specification packages that limit contractor change orders, are protective of the surrounding community, and facilitate site reuse.

Strategic Project Planning and Implementation. Safe execution of a demolition program starts with understanding the existing conditions and crafting an investigation strategy and demolition design that achieves the City’s project goals. We recognize that original building construction materials can impact the overall decommissioning and demolition approach and associated costs. Our investigation has been planned to identify regulated equipment and materials requiring removal/abatement prior to demolition.

Our building materials sampling strategy is designed to provide the data necessary to maximize the volume of recyclable demolition debris and meet or exceed the City’s and California Green Building Code’s requirements while also managing long-term risks in consideration of anticipated site reuse and potential long-term liability to the City.

Based on our review of the RFP documents and the site visit, we understand that existing conditions at the wastewater treatment plant include the potential for stored energy (including pressurized gases) within certain structures and equipment, due to a flood event that occurred at the time of the plant’s shutdown in 2023. Our project team has the existing site knowledge and multidisciplined experience to identify areas with potential stored energy or other potentially hazardous conditions that may require specialized planning and design to drive the safe execution of facility decommissioning and demolition and prevent potential environmental releases to the underlying soils or surrounding community.

March 6, 2025

Another critical element will be the potential requirement for removal of deep foundations (more than 5-feet below grade), which can be energy-intensive, require shoring and result in noise and vibration impacts to surrounding neighbors. Our team has successfully negotiated leaving deep foundations in the ground through thoughtful and persuasive analysis of the potential risks and sustainability concerns. If the City must remove deep foundations our team includes Yeh and Associates, Inc. to provide the geotechnical engineering necessary for safe removals.

Best Team Approach. Understanding the City’s needs and local challenges, we have brought together a multidisciplined team to address the range of potential challenges that may arise over the lifespan of this project. Anchor QEA’s project manager, Jerzy Cebula, has 27 years of experience leading decommissioning, and demolition projects throughout California, including serving as the demolition program manager for complex projects including a former space propulsion facility in San Jose. Our local engineering partner Cannon brings extensive knowledge of the facility along with a history of more than 25 years providing engineering services to the City of Morro Bay. Our permitting team has extensive experience supporting our clients with negotiations and permitting with the California Coastal Commission. Our asbestos surveyor (HSA) brings decades of experience throughout California and has been a trusted partner to Anchor QEA on other demolition design projects.

Consideration of Community Concerns. The proximity of the former wastewater treatment plant to sensitive areas, including residential and vacation properties as well as the local high school, adds another complexity to the demolition program. The Anchor QEA team has successfully designed and led the implementation of similar programs in residential settings, including heavily contaminated industrial buildings situated in residential urban centers as well as adjacent to Native American territories. We structure our demolition design and contractor bid specifications to incorporate requirements for dust and odor controls while driving safe and cost-effective decommissioning and demolition execution in compliance with applicable regulations and consideration of the residential settings. We have also implemented robust environmental monitoring programs to provide documentation and reassurance that demolition activities are not adversely impacting adjacent properties and communities.

Informed Cost Estimating. Our team’s demolition and local experience allows us to develop accurate cost estimates that draw from a wide range of sources (including relevant and completed decommissioning and demolition projects), rather than published generic cost indices, which cannot reflect the complexity of this project and current market conditions in the contracting community.

We look forward to collaborating with you and the City’s team to execute a successful project together.

Please contact me by phone at 315-414-2049 or via email at [email protected] to discuss any aspect of our proposal. As indicated on our cost proposal list of assumptions, our proposal is valid for 90 days from the date of this proposal. Thank you again for your consideration.

Sincerely,
Margaret Carrillo-Sheridan, PE
Principal-in-Charge

Table of Contents

TITLE PAGE
B. Firm Description 1
C. Project Team Description 7
D. Qualifications and References 13
E. Project Understanding and Technical Approach 21
F. Scope of Work 25
G. Project Schedule/Work Plan 41
H. Cost Proposal 42
I. Exceptions 42
Appendix A: Key Staff Resumes
Appendix B: Acknowledgement to Addendum No. 1
Appendix C: Exceptions to Agreement for Consultant Services

WWTP Decommissioning and Demolition Design and Engineering | 1 B. FIRM DESCRIPTION
Anchor QEA is a nationally recognized engineering and environmental consulting firm that specializes in site and pre-demolition assessment; environmental review and permitting; decommissioning, decontamination and demolition (D3) design; and construction management. With 27 offices in 15 states, including three in California—Irvine, Long Beach, and San Francisco—our technical diversity allows us to address multidisciplinary issues leading to cost-efficient, environmentally sensitive, feasible solutions that meet our clients’ and stakeholders’ needs. Our staff include a mixture of civil, structural, and environmental engineers; environmental planners; geologists; biologists; construction managers; and safety professionals. We apply a best team approach and build our teams based on the client and project needs. We work collaboratively with clients and teaming partners and have earned a strong reputation for our proactive approach to projects, technical expertise, quality of work, regulatory coordination, and commitment to meeting schedules and budgets. To this end, we have supplemented our team with local firms Cannon and Yeh and Associates, Inc. (Yeh), to deliver a comprehensive project team that can address both the decommissioning and demolition elements of the design as well as the post-demolition elements.

History, Ownership, Organizational Structure
History
Anchor Environmental, LLC, was established in late 1997 in Washington State, providing innovative and strategic environmental consulting and engineering work for complex projects along the West Coast.

Quantitative Environmental Analysis, LLC (QEA), was founded in 1998 in the New York-New Jersey area and quickly became known for its aquatic science and water resources work. In 2009, Anchor Environmental merged with QEA to form Anchor QEA. Headquartered in Seattle, the firm has grown to nearly 600 employees across 27 offices, and we continue to expand and specialize in a variety of services in environmental science, engineering, planning, industrial facility closure, construction management, and restoration. Anchor QEA’s D3 practice area was initiated in 2015, and since then, Anchor QEA has supported pre-demolition planning, design, and/or demolition implementation at industrial, municipal and utility-owned sites throughout the United Statesincluding five projects in California.

Ownership
Anchor QEA is a privately held corporation, which enables us to support our vision of being environmental innovators in the 4Rs of remediation, restoration, resilience, and revitalization.

Organizational Structure
Anchor QEA is functionally organized in a regional structure (Northeast, Southeast, Northwest, and Southwest) with practice areas (Engineering, Environmental Sciences, and Planning and Restoration) and follows a client-focused business model. Our business model recognizes a single point of revenue for the entire company, meaning there are no regional or office-based silos limiting the City’s access to our staff.

Quantified Expertise
Anchor QEA’s D3 team has
performed assessments, analyses,
remedial designs, and remedial
actions on more than 20 million
square feetof manufacturing
and commercial buildings.

More than 90% of our business
comes from repeat clients.

Since 2015, Anchor QEA has
provided D3 services on more than
25 projects nationwide,
including 5 in California.

WWTP Decommissioning and Demolition Design and Engineering | 2 This unique business model provides personnel to projects based on a best team approach, and the City will receive services from staff who have the necessary experience and qualifications to perform the work (rather than staff who need billable hours or are located within a particular region or office). The best team approach is also reflected in our choice of teaming partners.

Our technical teams are supported by our Technology & Innovation and Corporate Services teams. The company operations are overseen by our C-Suite, which consists of a Chief Executive Officer, Chief Operations Officer, Chief Administrative Officer, Chief Finance Officer, and Chief Strategy Officer. A Board of Directors directs and supervises the success of the firm.

Our Commitment to Health and Safety
Safety is an Anchor QEA core value. We believe that personal responsibility for health and safety is taken, not given. Following the principles of behavior-based health and safety, and with a strong commitment from our management, each employee is expected to take responsibility for safety and preparedness in the office and the field through personal initiative, communication, and teamwork. Using the principles of our Corporate Quality Assurance Program, our dedicated health and safety team pursues continuous improvement through our Near Miss and Lessons Learned Program and the application of other health and safety performance enhancement tools.

Anchor QEA D3 Qualifications
Anchor QEA’s D3 services team provides strategic consulting services for out-of-service and/or underused buildings and structures (assets).

D3 activities can involve a variety of technical,
environmental, regulatory, public perception, safety
and security, and economic challenges. Our
nationally recognized experts address these
challengesregularly. We work with our clients to
develop site-specific decommissioning processes
that mitigate potential risks and provide best-value
solutions through maximizing asset reuse and
minimizing disposal costs.

Building Inspections and Property Condition
Assessment
We recognize that the original materials used in
building construction (such as asbestos and other
regulated materials) and historical facility
operations can significantly impact
decommissioning and demolition design and
associated costs. Our knowledge of historical
building construction materials, methods, and a
variety of manufacturing and utility operations enables us to develop sampling programs that target Terminal Logistic Facility for Foss Offshore Wind
Anchor QEA served as the program manager for the transformation of an out-of-service power generating station into the base of operations and terminal logistics facility for Foss Offshore Wind.

Prior to the redevelopment, the site included a fuel oil storage terminal and a power-generating facility that required hazardous materials abatement and demolition.

WWTP Decommissioning and Demolition Design and Engineering | 3 potential environmental impacts to protect potential long-term liability, reduce costs and maximize beneficial use of demolition debris and scrap materials.

Decommissioning, Decontamination, and Demolition Planning and Design Anchor QEA's D3 team brings a combined experience of more than 250 years of professional services, providing an array of decommissioning planning and design services covering more than 20 million square feet (sf) of building space. Working with clients and stakeholders, our team has successfully designed and completed several D3 projects including demolition of heavily contaminated historical manufacturing facilities in residential neighborhoods, former power generation facilities, and municipal water treatment works.

Anchor QEA’s expertise in sequencing demolition
activities and waste management minimizes
disruptions to the surrounding communities while
maintaining site safety. Additionally, we develop
detailed demolition plans, incorporating dust control
measures, decontamination procedures, waste and
recyclable materials management plans, transportation
plans, and site restoration strategies to facilitate future site redevelopment or repurposing. With a focus on
risk mitigation, cost efficiency, and environmental
stewardship, our involvement promotes execution of
projects with precision and regulatory compliance. We
work closely with clients and regulatory agencies to
minimize waste, maximize recycling, and develop D3
programs that are protective of the surrounding
community.

Data Management
Anchor QEA’s Data Solutions Group provides end-toend expertise to support the full scope of clients’ needs. Our approach reflects our drive to develop innovative, efficient solutions to data management challenges. Our D3-related data management services include the following:

Data Management and Decision Support Systems: Use of real-time data collection, integrated with physical sample data and mapping features, allows Anchor QEA to use an adaptive characterization approach that can reduce site investigation time and costs by more than 50%.

Data Collection Applications: Web-based dashboards and data portals are custom designed based on client and project needs. An example of a data collection and application program is presented on the following page.

Building Demolition in Residential Setting
Anchor QEA performed the initial site investigation, led the demolition design and contractor procurement, served as the construction manager,and provided environmental monitoring for a demolition of a former manufacturing facility in a residential area.

WWTP Decommissioning and Demolition Design and Engineering | 4 Engineering Services During Construction
We bring extensive expertise in Engineering Services During Construction (ESDC), promoting execution of projects efficiently, safely, and in full compliance with design specifications and regulatory requirements. Our team includes licensed professional engineers, construction managers, and field inspectors with deep experience in demolition and construction oversight, QA, contract administration, and regulatory coordination.

Anchor QEA’s ability to proactively identify and resolve field issues minimizes project delays and cost overruns, while our expertise in schedule management, materials
testing, and environmental compliance monitoring
ensures successful project delivery. Data management
services that are integrated into the construction phase of the work include the following:

Environmental Monitoring: Real-time environmental
monitoring systems are integrated into our air
monitoring programs, providing real-time data to the
construction management team and allowing for
modification of demolition methods or activities before there is a fence line excursion or air monitoring standard exceedance.

Cost Tracking: We track against the project schedule and work completed to identify potential project delays as
well as check on project progress vs. contractor invoicing.

Data Management:Tracking Project Progress by Spend vs. Budget Real-Time Air Monitoring During Construction
Anchor QEA ‘s Alex Bleichner setting up one of the community air monitoring stations along the perimeter of an active demolition site.

WWTP Decommissioning and Demolition Design and Engineering | 5 Subconsultant Qualifications
Cannon Associates
Portion of Work to Be Subcontracted: Site Civil, Land Surveying, and Mechanical and Electrical Engineering
Cannon has provided full-service engineering design, construction management, inspection, and surveying services for 48 years. Their staff are experts in potable water, recycled water, and sanitary sewer systems and have a long history of teaming on water projects that have enabled them to fine-tune their collaboration and coordination to deliver successful projects. Cannon has worked with the City for more than 25 years and brings engineering knowledge of the former WWTP.

Yeh and Associates, Inc.

Portion of Work to Be Subcontracted: Geotechnical Engineering Yeh is a full-service geotechnical firm first established in Denver in 1999.

Yeh providesspecialized expertise in engineering geology and geotechnical services for infrastructure and public works projects. The firm opened its Grover Beach office in 2015 and recruited a team of senior professionals with a strong background in public works projects. These staff have been working on public works projects in the City, San Luis Obispo County, and throughout California for up to 30 years. The firm employs a total of about 160 professionals with vast experience in the fields of geotechnical engineering, geology, highway geology, engineering geology, and construction management. Yeh brings site-specific knowledge of the WWTP, and their staff have previously prepared geotechnical reportsfor the original WWTP site (under a prior firm) as well as for the new conveyance pipelines and pump stations (including Pump Station A) and the City’s Recycled Water Facility.

Health Science Associates
Portion of Work to Be Subcontracted: Asbestos Surveying HSA is a full-service industrial hygiene and environmental consulting firm with a long-standing reputation for providing occupational health and safety and environmental solutions in California. Founded in 1970, the firm provides asbestos and lead-based paint (LBP) survey and consulting services, traditional industrial hygiene evaluations and investigations, indoor air quality evaluations and investigations, and microbiological (i.e., bacteria and fungi) investigations and evaluations. They also specialize in monitoring and administration of asbestos abatement, LBP removal, and other environmental removal projects.

GPRS
Portion of Work to Be Subcontracted: Underground Utility Location GPRS was founded in 2001 and is a leading provider of non-invasive geophysical solutions, specializing in ground-penetrating radar (GPR) technology. With more than 20 years of experience, their staff are trained in subsurface investigation methodology and equipped with advanced underground utility detection systems, which help locate and map underground facilities in a safe, non-intrusive manner. They regularly assist utility companies, such as Los Angeles Water and Edison, in identifying underground systems. GPRS has previously assisted the City with crucial subsurface surveys for infrastructure development and safety Team Approach
No one company has all the best
experts, on every relevant topic,
in the location of the project.

By focusing on project and client
needs rather than bolstering our
in-house capabilities, our team
compriseslocal partners who
bring specialized, site-specific
knowledge.

The insight provided by these firms
enhances our collective expertise
through diverse perspectives,
complementary skill sets, and a
collaborative problem-solving
approach that fosters innovative,
well-informed solutions.