Morro Bay City Council
August 26, 2025

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, August 26, 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. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report

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

3.c City Manager Reports, Announcements and Presentations

3.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

4. RECOGNITION AND PRESENTATIONS

4.a Central Coast Community Energy Annual Presentation

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

Public comment is an opportunity for members of the public to provide input to the governing body. To increase the effectiveness of the Public Comment Period, the City respectfully requests the following guidelines and expectations be followed:
•
Those desiring to speak are asked to complete a speaker slip, which are located at the entrance, and submit it to the City Clerk. However, speaker slips are not required to provide public comment. •
When recognized by the Mayor, please come forward to the podium to speak. Though not required, it is helpful if you state your name, city of residence and whether you represent a business or group. Unless otherwise established by the Mayor, comments are to be limited to three minutes.
•
All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
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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.
•
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.
•

6. 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 6a through 6c as submitted.

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

1. August 12, 2025 - Regular Council Meeting 5

2. August 12, 2025 - Special Closed Session Meeting 12

3. August 13, 2025 - Special Closed Session Meeting 14

6.b Fiscal Year 2025 Quarter 4 Water Reclamation Facility Program Quarterly Report
16 (Public Works Department)
Recommended Action
Receive and file the Fiscal Year (FY) 2025 Quarter 4 Report for the Water Reclamation Facility (WRF) Program.

6.c Approve Cooperative Agreement Between City of Morro Bay and County of San Luis Obispo for County's Use of Right-of-Way on Three Parcels Owned by the City for Morro Bay to Cayucos Connector Trail 23 (Public Works Department)
Recommended Action
Approve and authorize the City Manager to execute the Cooperative Agreement between the City of Morro Bay and County of San Luis Obispo, as presented.

7. PUBLIC HEARING ITEMS
None

8. BUSINESS ITEMS

8.a Approve Professional Services Agreement for RRM Design Group for Design Services for Phase 1 of Coleman Park Improvement Project 66 (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 Phase 1 of the Coleman Park Improvements project in an amount not-to-exceed $182,365, which includes an estimated cost of $156,765 for the base tasks and an estimated cost of $25,600 for optional tasks.

8.b Approve Letter to California Air Resources Board (CARB) Requesting Delayed Commercial Harbor Craft Regulations
101
(Harbor Department)
Recommended Action
Approve letter to CARB requesting Delayed Commercial Harbor Craft Regulations.

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

10. ADJOURNMENT
The next Regular Meeting will be held on September 9, 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
August 12, 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 Manager Andrea Lueker
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
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:35 p.m. with all members present.

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report
https://youtu.be/zm5TDozeRuY?si=TPceDEKp_8_Q86WF&t=1577 Interim City Attorney Schultz announced the Council met in closed session prior to this meeting and discussed Real Property Negotiations.

The two properties discussed were the lease for Morro Dunes RV Park and the potential purchase of the Morro Elementary School site As for the Morro Dunes RV Park lease, no action was taken that required reporting under the Brown Act.

2 As for the potential purchase of the Morro Elementary School site, the Council unanimously gave direction to make an offer for purchase of 30% of the property under the Naylor Act and to continue negotiations with the School District for purchase of the entire property. It is important for the public to understand that any purchase of the property, whether partially or in its entirety, would have to be approved by Council at a public hearing in open session.

3.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/zm5TDozeRuY?si=hYxSU9Bx_JszInd6&t=124

3.c City Manager Reports, Announcements and Presentations https://youtu.be/zm5TDozeRuY?si=KLSos4Ih9Hsl5Zh5&t=568

3.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/zm5TDozeRuY?si=e7polt1BJ_7AuUKd&t=1518 a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA
b. Morro Bay Power Plant (Vistra)
c. Offshore Wind Energy
d. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS
None

5. PUBLIC COMMENT
https://youtu.be/zm5TDozeRuY?si=c9Lodhyn1xd97ryF&t=1638  Joe Silano, Morro Bay, commented on the need for Harbor maintenance and dredging and questioned the proposed fee increases.  Linda Winters, Morro Bay, shared her appreciation for staff efforts and events and provided a Monday Night Dinner update.
 Kiernan Cottle, Morro Bay, offered comments.
 Margaret Carman, Morro Bay, brought attention to an item on an upcoming Board of Supervisors' agenda, approving a contract amendment with Mott MacDonald related to offshore wind studies, and encouraged residents to join REACT Alliance in its efforts to educate the public regarding effects of offshore wind.

3  Nicole Dorfman, Morro Bay, asked for any information the City could share regarding the Mott MacDonald study, scope expansion, or work completed to date. She appreciated the Council's vote to pursue Morro Elementary and commented on SLOCOG's contract with GHD related to the roundabout project.

End of public comment.

Mayor Wixom and staff responded to questions raised during public comment.

6. CONSENT AGENDA
https://youtu.be/zm5TDozeRuY?si=XaG0G1hPz8V9Jk0x&t=2520 Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.

Mayor Wixom opened public comment for the Consent Agenda; seeing none, the public comment period was closed.

Mayor Wixom pulled Item 6.b.

Motion by Council Member Luffee
Seconded by Council Member Landrum
Approve Consent Agenda Items 6a through 6e, as submitted, less Item 6b.

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

6.a Approval of Minutes
Approve as submitted.
a. June 17, 2025 - Special Closed Session Meeting
b. July 22, 2025 - Special Closed Session Meeting
c. July 22, 2025 - Regular Council Meeting

6.b Acceptance of Equipment Donation from SYTIS
https://youtu.be/zm5TDozeRuY?si=II4T9B126pO3ixfW&t=2576 Fire Chief McCrain responded to Council inquiries.

Motion by Mayor Wixom
Seconded by Council Member Luffee
Accept the donated equipment from SYTIS and authorize the City Manager to execute the Donation Agreement.

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

6.c Receive and File the Required Annual Military Equipment Use Report per CA Assembly Bill No. 481
Receive and file of the required Annual Military Equipment Use Report per Assembly Bill No. 481.

6.d Approval of Revised Compensation Range for the City Manager Amend the compensation range for the City Manager by adopting:

1. Resolution No. 45-25 Approving Updated Compensation Range, and

2. Resolution No. 46-25 Approving Updated FY 2025-26 and FY 2026-27 Pay Schedules.

6.e Determination of Public Convenience or Necessity for ABC License - 1215 Embarcadero Road, Suite D, Grassy Bar Oyster Company Make the Determination of Public Convenience or Necessity to approve the request to allow sales of alcohol with use of a Type 20 – Off-Sale Beer and Wine license for Grassy Bar Oyster Company at 1215 Embarcadero Road, Suite D; and direct staff to provide the applicant with a letter of support.

7. PUBLIC HEARING ITEMS

7.a Public Hearing and Adoption of Resolution No. 47-25 Updating and Establishing Various User and Regulatory Fees
https://youtu.be/zm5TDozeRuY?si=4UcIuVJgYDFf2ydx&t=2881 Finance Director Conrad introduced Terry Madsen from Clearsource Financial Consulting, who presented the report and responded to Council inquiries.

Mayor Wixom opened the public hearing and public comment for Item 7.a. https://youtu.be/zm5TDozeRuY?si=NZ8jkNLAXiz8dlAr&t=6191  Betty Winholtz, Morro Bay, urged the Council to establish a low appeal fee that is consistent for all types of appeals and not feel obligated to reach 100% cost recovery all at once. She suggested a small percentage-based increase across the board and avoid any large increases, particularly in Planning and Building. She also questioned whether it was necessary to charge a fee for certain permit types.

5  Onan Champi, Morro Bay, agreed the state should not encumber people to require permits and asked when the new fee increases would take effect.
 Judy Setting, Morro Bay, urged the Council to keep fees low for residents.

End of public comment.

Mayor Wixom closed the public hearing.

Mr. Madsen and staff responded to Council inquiries. Following comments and discussion, to allow time to fully evaluate the report, along with changes requested by Council, a motion was made to continue the item to a date certain, September 23, 2025.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Council directed that the item be continued to the September 23, 2025 Regular City Council meeting to allow staff sufficient time to review the modifications submitted by Council and return the item for further discussion.

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

8. BUSINESS ITEMS

8.a Adoption of Resolution No. 48-25 Appointing Brian Stack as City Attorney and Approving a City Attorney Employment Agreement Between the City of Morro Bay and Brian Stack
https://youtu.be/zm5TDozeRuY?si=9Nyqnf3e58Bl74ya&t=7896 Interim City Manager Lueker presented the report and welcomed Mr.

Stack to introduce himself.

Mayor Wixom opened public comment on Item 8.a; seeing none, the public comment period was closed.

Motion by Mayor Wixom
Seconded by Council Member Luffee
Adopt Resolution No. 48-25 appointing Brian Stack as the City Attorney of the City of Morro Bay and approve an employment agreement between the City of Morro Bay and Brian Stack.

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

8.b Chorro Creek Floodplain Resilience Project Coordination with Coastal San Luis Resource Conservation District
The Council took a brief recess at 7:54 p.m. and reconvened at 8:04 p.m. with all members present.
https://youtu.be/zm5TDozeRuY?si=uBitfZ9Y42nku5oG&t=8319 Public Works Director Kwolek presented the report.

Mayor Wixom opened public comment for Item 8.b.
https://youtu.be/zm5TDozeRuY?si=iJwCHqM1mmjK_AuT&t=9648  Betty Winholtz, Morro Bay, believed this property was put under the RCD in order to capture run off and silt to protect the bay, and questioned whether that was correct.

End of public comment.

Scott Smith, Stillwater Sciences, and Hallie Richard, Executive Director of CSLRCD, responded to Council inquiries.

Motion by Mayor Wixom
Seconded by Council Member Luffee
Direct Staff to coordinate with Coastal San Luis Resource Conservation District on the potential Chorro Creek Floodplain Resilience Project. Any formal agreements regarding the City’s commitment to participation in this project would be brought to City Council for their approval consideration before any decisions were made impacting the City’s property.

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

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/zm5TDozeRuY?si=DzK_FZtzato_hkzN&t=10215 Council Member Edwards requested and received support for review of the City's Event Policy. Ms. Lueker explained it is currently in draft form and, once finalized, will go to the Recreation & Parks Commission then City Council.

10. ADJOURNMENT

7 The meeting adjourned at 8:26 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
August 12, 2025, 3:30 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: Interim City Manager Andrea Lueker
Interim City Attorney Robert Schultz
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Finance Director Emily Conrad
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:30 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.  Kathy Claasen, Morro Dunes RV Park, requested Council consideration of an extension to the current lease agreement.
 Monica King, Judy Setting, Nicole Dorfman, Janice Peters, Linda Donnelly and Kelly Ulrich commented in support of purchasing Morro Elementary.  Homer Alexander opposed pursuing the purchase of Morro Elementary.

End of public comment.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: APN 066-280-045 and 066-044-011, 1130/1330 Napa Ave., Morro Elementary

2 Property Negotiators: San Luis Coastal Unified School District Agency Negotiators: Airlin Singewald, Community Development Director; Andrea Lueker, Interim City Manager; Robert Schultz, Interim City Attorney
Negotiations: Price and Terms of Payment

4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: 1700 Embarcadero, Morro Dunes RV Park
Property Negotiators: Kathy Claasen, Morro Dunes Trailer Park & Campgrounds, Inc.

Agency Negotiators: Greg Kwolek, Public Works Director; Andrea Lueker, Interim City Manager; Robert Schultz, Interim City Attorney Negotiations: Price and Terms of Payment

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. Interim City Attorney Schultz reported the Council met in closed session and discussed Real Property Negotiations.

The two properties discussed were the lease for Morro Dunes RV Park and the potential purchase of the Morro Elementary School site.

As for the Morro Dunes RV Park lease, no action was taken that required reporting under the Brown Act.

As for the potential purchase of the Morro Elementary School site, the Council unanimously gave direction to make an offer for the purchase of 30% of the property under the Naylor Act and to continue negotiations with the School District for purchase of the entire property. It is important for the public to understand that any purchase of the property, whether partially or in its entirety, would have to be approved by Council at a public hearing in open session.

6. ADJOURNMENT
The meeting adjourned at 5:15 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
August 13, 2025, 8:00 a.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: Interim City Manager Andrea Lueker
Interim City Attorney Robert Schultz
Human Resources/Risk Manager Rachael Hendricks
Executive Recruiter Roberta Greathouse, Peckham &
McKenney
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 8:00 a.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; seeing none, public comment was closed.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a PUBLIC EMPLOYEE EMPLOYMENT
City Manager pursuant to Government Code Section 54957

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

6. ADJOURNMENT
The meeting adjourned at 8:58 a.m.

Respectfully submitted,

2 /s/ Dana Swanson, City Clerk

Prepared By: ___GK Dept Review: __ GK _
City Manager Review: __AL______ City Attorney Review: __BS ____ Staff Report
TO: Honorable Mayor and City Council DATE: August 19, 2025 FROM: Greg Kwolek – Public Works Director
SUBJECT: Fiscal Year 2025 Quarter 4 Water Reclamation Facility Program Quarterly Report

RECOMMENDED ACTION
Receive and file the Fiscal Year (FY) 2025 Quarter 4 Report for the Water Reclamation Facility (WRF) Program.

DISCUSSION
The purpose of the WRF Program Quarterly report is to provide project status updates on schedule, budget, key activities, and critical path items as they relate to the WRF program. The Recycled Water Facilities (RWF) project is a portion of the larger WRF Program. The RWF project is anticipated to be completed by Fall 2026. The FY 2025 Quarter 4 Report includes information on project activities between April 1, 2025, and June 30, 2025.

At their meeting on Wednesday, August 21, 2025, the Public Works Advisory Board reviewed the FY 2025 Quarter 4 WRF Quarterly Report as a receive and file item. The PWAB asked questions related to project scope, schedule, and cost, and these questions were answered by the project team.

ATTACHMENT

1. FY 2025 Quarter 4 WRF Program Quarterly Report
AGENDA NO: 6.b
MEETING DATE: August 26, 2025

JULY 31, 2025 1
City of Morro Bay
Water Reclamation Facility Program

QUARTERLY REPORT
APRIL 1, 2025 THROUGH JUNE 30, 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 $146.49 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 (April 1, 2025 – June 30, 2025) • Environmental/Permitting
o Activities completed
▪ On April 24, 2025 the Draft Environmental Impacts Report (EIR) Addendum #2 was released for public comment. The document was posted the Our Water Program website, the City website, the County Clerk of San Luis Obispo, the State Clearinghouse (SCH #2016081027), and the April 24th 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.
▪ On May 21, 2025, the public comment period for the Draft EIR Addendum #2 closed.
▪ On May 21, 2025, City Staff brought a Recycled Water Program Update to the Public Works Advisory Board (PWAB), the Draft EIR Addendum #2 and consultant contract amendment for archaeological surveying. ▪ In May 2025, the Project Biologist completed an additional survey of the Morro Creek Lagoon to determine the presence or absence of southwestern pond turtle in the study area. The City’s biologist has confirmed the presence of one southwestern pond turtle and is coordinating with the EPA on an amendment request for the EPA’s section 7 consultation with USFWS. ▪ On June 24, 2025, City Council approved several Recycled Water Project items including the EIR Addendum #2. The NOD was filed with the County Clerk and the State Clearinghouse on June 27, 2025.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY JULY 31, 2025 2
o Ongoing activities and upcoming timelines
▪ 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
▪ On April 23, 2025 the City met with Coastal Commission to discuss a potential project replacement on the Agricultural Mitigation Plan (CDP Permit Special Condition 5) and injection well siting.
▪ On May 12, 2025 the City met with DDW to discuss backflow prevention regulations and potential modifications to the City’s Advanced Water Treatment Facility.
o Ongoing activities and upcoming timelines
▪ 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.
▪ During this quarter, City staff and the Recycled Water Program Team continued to coordinate with DDW on their review of the Engineering Report. • Engineering Design
o Activities completed
▪ On April 10 and April 16, 2025 the City pressure tested the existing portion of the Indirect Potable Reuse (IPR) pipeline and the abandoned desal pipeline respectively, to verify their capability for conveying Advanced Purified Recycled Water.
▪ On May 16, 2025 the City released the Draft Conceptual Design Report (CDR). ▪ On May 21, 2025, City Staff brought a Recycled Water Program Update to the Public Works Advisory Board (PWAB) which included the Draft Conceptual Design Report and an updated Recycled Water Implementation Strategy Recommendation.
▪ On June 24, 2025, City Council approved several Recycled Water Project items including consultant contracts for program management services and additional archeological services for Phase 3 pipeline investigations, and the new Recycled Water Implementation Strategy, where one or two wells will be drilled/injection tested at a time to ensure travel time requirements are met. 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. • Hydrogeologic Analysis and Design
o Activities completed
▪ On April 9, 2025, the City conducted a backflush test on IW 1 to compare pump vs. airlift backflush methods.
▪ On May 21, 2025, City Staff brought a Recycled Water Program Update to the Public Works Advisory Board (PWAB), which included a consultant contract amendments for hydrogeologic services.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY JULY 31, 2025 3
▪ On June 24, 2025, City Council approved several Recycled Water Project items including a consultant contract for additional hydrogeological services. ▪ During this quarter, the project hydrogeologists continued to update the groundwater model and the Basis of Design Report to incorporate the new data collected from the Extraction Well Capacity testing (June 2025), geophysical surveys (late 2024-early 2025), and archeological/hydrogeological investigative borings (June 2024).
o Ongoing activities and upcoming timelines
▪ During this period, 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.
▪ The City has received the executed Title XVI Grant Agreement from the Bureau of Reclamation.
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.
▪ The City is preparing to submit for reimbursements for eligible costs utilizing the Title XVI grant.

JULY 31, 2025 4

RECYCLED WATER PROJECT SCHEDULE
Figure 1. Recycled Water Summary Schedule

JULY 31, 2025 5

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
April-June 2025
Expenditures (1)
Total Expenditures
To Date
FY 24/25 Budget
(2)
Percent
Budget
Expended
RWF $2,805,057 $147,539 $2,952,596 $9,424,174 31%
General Project $24,677,922 $63,563 $24,741,485 $30,968,609 80% WRC Plant $77,895,236 $0 $77,895,236 $79,123,216 98%
Conveyance $40,898,736 $11,679(3) $40,910,415 $40,324,350 101% Total $146,276,951 $222,781 $146,499,732 $159,840,349 92% (1) April-June 2025 total expenditures as tallied on the Accounts Payable Report run on July 8, 2025, including all invoices accrued through June 30, 2025.
(2) FY 24/25 Budget adopted by Council.
(3) Although the Conveyance budget has been closed out, an invoice for Phase 2 archeological testing (conveyance) sample processing was received this quarter

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
USBR - Title XVI Grant $9,310,095 $0 $9,310,095
Recently Executed
Agreement
City of Morro Bay Water/Sewer
Fund $24,954,726 $24,954,726 $0
Subject to loan
reimbursement
Executed Funding Sources Total $194,116,795 $146,499,732 $47,617,063 IRWM Grant
(pending) $1,200,000 $0 $1,200,000
Agreement in
execution process
All Sources Total $195,316,795 $146,499,732 $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.

QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY JULY 31, 2025 6

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

Prepared By: ___GK Dept Review: __ GK _
City Manager Review: __ AL______ City Attorney Review: __ BS____ Staff Report
TO: Honorable Mayor and City Council DATE: August 19, 2025 FROM: Greg Kwolek – Public Works Director
SUBJECT: Approve Cooperative Agreement Between City of Morro Bay and County of San Luis Obispo for County’s Use of Right-of-way on Three Parcels Owned by the City for the Morro Bay to Cayucos Connector Trail

RECOMMENDED ACTION
Approve and authorize the City Manager to execute the Cooperative Agreement between the City of Morro Bay and County of San Luis Obispo, as presented.

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

BACKGROUND/DISCUSSION
The Morro Bay to Cayucos Connector Trail (Connector Trail) is a proposed County of San Luis Obispo (County) multi-use trail project that will connect the City of Morro Bay to the community of Cayucos along the beach adjacent to Highway 1. Three parcels along this 1.25-mile trail alignment are owned by the City of Morro Bay, The Accessor Parcel Numbers are as follows:
 APN 065-022-011, the North Point Natural Area;
 APN 065-082-020, the North Point Natural Area’s parking lot; and  APN 073-075-016, the lot on the north side of Toro Creek.

Exhibits showing the proposed Connector Trail along City properties are included at the end of the attached Cooperative Agreement.

On April 19, 2023, City and County staff presented information to the Morro Bay Public Works Advisory Board on a potential consolidated coastal development permit through the California Coastal Commission (CCC) to advance the project. On April 25, 2023, City Council also heard information about the project and approved a consolidated coastal development permit. At that meeting, the City Council expressed concerns that the project would include road markings and signage along City streets and privately-owned Toro Lane, which would then need to be maintained by the City. In response, the County has withdrawn these improvements along City streets and Toro Lane from the project scope. On June 13, 2024, the CCC approved the project’s coastal development permit.

This Cooperative Agreement (Attachment 1) defines the County’s responsibilities to construct, maintain, and repair the Connector Trail within the trail right-of-way on the City owned parcels, and allows the public to use the trail on the City-owned parcels. This agreement is necessary for the County to proceed with the right-of-way phase of the pre-construction process of the project. The AGENDA NO: 6.c
MEETING DATE: August 26, 2025

County Board of Supervisors approved the agreement at their meeting on August 19, 2025. At the time of publication of this staff report, the County had not yet routed the Cooperative Agreement for signatures, and as a result Attachment 1 does not yet include County execution.

County staff recently received and are reviewing 90% plans for the Connector Trail project. City and County staff are working towards a presentation in October of the 90% plans to the Morro Bay Public Works Advisory Board for further input on the project.

Approval of the Cooperative Agreement satisfies a condition of the City’s grant agreement with the California State Coastal Conservancy (Attachment 2), which granted the City $150,000 for the City’s acquisition for the property commonly referred to as “dog beach”. The grant agreement, which took effect on May 1, 2020, states in Section 2.f:

USE OF THE PROPERTY FOR THE CALIFORNIA COASTAL TRAIL. On request of the Conservancy, Grantee shall permit alignment, designation or development of a segment of the California Coastal Trail (the “Trail”) on the Real Property, including the placement and maintenance of related signage, and, through an instrument acceptable to the Executive Officer of the Conservancy, shall permanently dedicate the necessary portion of the Real Property for use as a segment of the Trail, as aligned.

For this reason, the California State Coastal Conservancy has approved of and is a signatory to the Cooperative Agreement for the Connector Trail.

ATTACHMENTS

1. Cooperative agreement, license agreement, and agreement affecting real property between the County of San Luis Obispo and the City of Morro Bay

2. California State Coastal Conservancy Grant Agreement for Dog Beach

RECORDING REQUESTED BY:

County of San Luis Obispo
WHEN RECORDED MAIL TO:

Director of Public Works
County of San Luis Obispo
976 Osos Street, Room 206
San Luis Obispo, CA 93408
(Space Above This Line for Recorder’s Use Only)
[Exempt from recording fee per Gov. Code § 6103]

COOPERATIVE AGREEMENT, LICENSE AGREEMENT, AND AGREEMENT AFFECTING REAL

PROPERTY
between
the COUNTY OF SAN LUIS OBISPO
and
the CITY OF MORRO BAY
I. PARTIES AND DATE.

This Cooperative Agreement, License Agreement, and Agreement Affecting Real Property ("Agreement") is entered into as of this day of , 2024
by and between the COUNTY OF SAN LUIS OBISPO (“County”) and the CITY OF MORRO BAY (“City”). The County and City are sometimes hereinafter individually referred to as "Party," and hereinafter collectively referred to as the "Parties”.

II. RECITALS.

1. For more than 20 years, the Parties have worked cooperatively to develop the Morro Bay to Cayucos Connector Pathway (“Project”). The Project consists of the construction of a multi-use pathway (“Pathway”) extending from the North Point Natural Area in the City of Morro Bay to Norma Rose Park in the community of Cayucos and will complete an important segment in the non-motorized transportation network along Highway 1.

2. The County, with the City’s support, applied for, and received, a $7.4 million Active Transportation Grant (“Grant”) from the State of California to fund construction of the Project.

3. Prior to the commencement of the active construction phase, the COUNTY must secure all necessary right-of-way for the completion of the Project.

4. The proposed right-of-way for the Project includes portions of the following parcels owned by the City of Morro Bay: APN 073-075-016, 065-022-011, and 065-082-020 (collectively, “Project ROW”). Project ROW is more specifically described and depicted in Exhibits A-C, attached hereto and incorporated into this Agreement by this reference.

5. The Parties desire to ensure that the County has sufficient authority to construct and maintain the Project as specified in this Agreement.

6. This Agreement defines the roles and responsibilities of the Parties related to the Project and sets for the provisions for the construction and maintenance of the Pathway.

III. TERMS.

1. Responsibilities of the County.

A. Construction of the Project. The County shall, at its sole cost and expense, construct the Project in a location and in a manner substantially consistent with the Project design plans, the Coastal Development Permit (“CDP”), and all permits. The County shall be responsible for obtaining permits necessary to construct the Pathway on Project ROW.

B. Maintenance and Repair. The County shall, at its sole cost and expense, maintain and repair the portion of the Pathway located in the Project ROW. It is understood and acknowledged that the CDP for the Project includes limitations on the type and extent of maintenance and repair that may take place on the Pathway. The County shall not be required to perform any maintenance or repair work inconsistent with the terms of the CDP.

2. Responsibilities of the City.

A. Grant of Licenses. At no cost to the County, the City shall grant the County the following licenses:
i. Construction of Project. For the duration of the Project, the City shall grant the County a license for all purposes necessary or convenient to the construction of the Project, including, but not limited to, the right to survey, install, construct, reconstruct, enlarge, lay, alter, remove, replace, and repair the Pathway as well as stockpile equipment, vehicles, and materials for the purpose of facilitating construction of the Project in the Project ROW.
ii. Maintenance and Repair. The City shall grant the County an irrevocable license for all purposes necessary or convenient to repair and maintain the Pathway located in the Project ROW.

B. Public Access to the Pathway. Upon completion of the Project, the City shall make the Pathway open to the public.

3. Modification of Project ROW. It is understood and acknowledged by the Parties hereto, that although Project ROW is described and depicted in Exhibit A-C, adjustments to the Project ROW may be required. Mutually agreeable adjustments to the Project ROW may be made by an amendment to this Agreement. Any amendment making said adjustments shall be recorded.

4. Title VI Compliance. The Parties to this Agreement shall, pursuant to Section 21.7(a) of Title 49, Code of Federal Regulations, comply with all elements of Title VI of the Civil Rights Act of 1964. This requirement under Title VI and the Code of Federal Regulations is to complete the USDOT-Non-discrimination Assurance requirement compliance with Title VI of the Civil Rights Act of 1964, 49 C.F.R. Part 21 and 28 C.F.R.

Section 50.3. No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subject to discrimination under any program or activity that is the subject of this Agreement.

5. Approval by the Coastal Conservancy. The Parties acknowledge that this Agreement shall be subject to the prior written approval of the California State Coastal Conservancy and the Project ROW shall remain subject to all applicable provisions of the Irrevocable Offer to Dedicate Title in Fee and Declaration of Restrictive Covenants, recorded on October 13, 2021, in the County of San Luis Obispo as Document No. 2021068867.

6. Termination by Mutual Consent. This Agreement may be terminated by the mutual written consent of the Parties. Any termination of this Agreement by mutual written consent shall be recorded.

7. Termination for Non-Appropriation. The Parties acknowledge and understand that the construction of the Project is predicated upon the County’s receipt and continued eligibility for the Grant as well as additional Project funding appropriated by the County Board of Supervisors. If the Grant or other Project funding is not appropriated or otherwise becomes unavailable prior to the commencement of construction, the County may elect to terminate this Agreement by giving written notice of the termination to the City. In such an event, the County shall have no further obligations or liability under this Agreement.

8. Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.

9. Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:

COUNTY OF SAN LUIS OBISPO: CITY OF MORRO BAY:

Director of Public Works Director of Public Works
Department of Public Works 595 Harbor St.
976 Osos Street, Room 206 Morro Bay, CA 93442
San Luis Obispo, CA 93408

10. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. The Director of Public Works, or designee, of each Party is authorized to execute supplements, modifications, or amendments to this Agreement.

11. Assignment or Transfer of Agreement. The Parties may not transfer or assign this Agreement without the express written consent of the other Party, which shall not be unreasonably withheld.

12. Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation.

13. No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

14. Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

15. Indemnification. The County shall defend, indemnify, and hold harmless the City, its City Council, officers, directors, agents, employees, and volunteers from and against all demands, claims, actions, liabilities, losses, damages, and costs, arising out of or resulting from the County’s construction, maintenance, and repair of the Pathway located within the Project ROW, caused in whole or in part by the negligent or intentional acts or omissions of the County’s officers, directors, agents, employees, contractors, or subcontractors, except where caused by the sole negligence or willful misconduct of the City.

16. Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of San Luis Obispo, California.

17. Effective Date. The effective date of the Agreement is the date the last party signs the Agreement.

18. Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrument.

19. Entire Agreement. This Agreement constitutes the entire understanding of the Parties and supersedes any prior understandings, whether oral or written, regarding the subject matter of this agreement.

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

COUNTY OF SAN LUIS OBISPO CITY OF MORRO BAY
By: ___________________________________________
(Signature)
__________________________________________
(Print Name)
___________________________________________
DATE
ATTEST:

MATTHEW P. PONTES
Ex-Officio Clerk of the Board of Supervisors
___________________________________________
Deputy Clerk
By: ___________________________________________
(Signature)
__________________________________________
(Print Name)
___________________________________________
DATE
ATTEST:
___________________________________________
Dana Swanson, City Clerk

APPROVED AS TO FORM
County Counsel
By: ___________________________________________

CHIEF DEPUTY COUNTY COUNSEL
___________________________________________
DATE

APPROVED AS TO FORM
City Attorney
By: ___________________________________________

CITY ATTORNEY
___________________________________________
DATE
June 30, 2025

ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________________ )
On _________________________ before me, ________________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________ (Seal)

ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________________ )
On _________________________ before me, ________________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________ (Seal)

This Agreement is hereby approved by the California State Coastal Conservancy.

By:
(Signature)
________________________________________________
(Print Name)
Dated:

Tim Duff
7/1/2025

CERTIFICATE OF ACCEPTANCE
This is to certify that the COUNTY OF SAN LUIS OBISPO, grantee herein, hereby accepts for public purposes the real property, or interest therein, described in the foregoing Cooperative Agreement, License Agreement, and Agreement Affecting Real Property between the County of San Luis Obispo and the City of Morro Bay, and consents to the recordation thereof.

In Witness Whereof, I have hereunto set my hand this ___ day of __________________, 20___.

County of San Luis Obispo
Chairperson of the Board of Supervisors
County of San Luis Obispo
ATTEST:

MATTHEW P. PONTES
Ex-Officio Clerk of the Board of Supervisors
_________________________________
Deputy Clerk
APPROVED AS TO FORM AND LEGAL EFFECT:

JON ANSOLABEHERE
County Counsel
By: ____________________________ Dated: _____________________, 20___ Deputy County Counsel
June 30 25

STATE OF CALIFORNIA

STANDARD AGREEMENT
Std.2 (Grant - Rev 01/18)
THIS AGREEMENT, made and entered into this day of ____ , _2020_______ in the State of California, by and between State of California, through its duly elected or appointed, qualified and acting , hereafter called the Conservancy, and
, hereafter called the Grantee.

The Grantee, for and in consideration of the covenants, conditions, agreements, and stipulations of the Conservancy hereinafter expressed, does hereby agree as follows:

SCOPE OF AGREEMENT
Pursuant to Chapter 9 of Division 21 of the California Public Resources Code, the State Coastal Conservancy (“Conservancy”) hereby grants to City of Morro Bay (“Grantee”) a sum not to exceed $150,000 (one hundred fifty thousand dollars), subject to this Agreement (“Grant Funds”). Grantee shall use the Grant Funds to acquire that certain real property commonly known as “Dog Beach” located in the County of, San Luis Obispo State of California (APN Nos. 073-075-016, and a portion of APN 065-022-008), and depicted on Exhibit 1 attached hereto and incorporated by reference (“Real Property”).
(Continued on the following pages)
The provisions on the following pages constitute a part of this agreement.

IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written.

STATE OF CALIFORNIA GRANTEE
AGENCY GRANTEE (If other than an individual, state whether a corporation, partnership, etc.) State Coastal Conservancy City of Morro Bay
BY (Authorized Signature) BY (Authorized Signature)
 

PRINTED NAME AND TITLE OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Samuel Schuchat, Executive Officer John Headding, Mayor

ADDRESS & PHONE NUMBER ADDRESS & PHONE NUMBER
1515 Clay Street, 10th Floor
Oakland, CA 94612
Phone: (510) 286-1015
595 Harbor Street
Morro Bay, CA 93442
Phone: (805) 772-6200

AMOUNT ENCUMBERED BY THIS

DOCUMENT
$150,000.00

PROGRAM/CATEGORY (CODE AND TITLE)
Other Capital Outlay
FUND TITLE/PROP NO.

Habitat Coastal Fund/ Prop 1 I certify that this
agreement is exempt
from Department of
General Services’
approval.

Erlinda Corpuz
Procurement and
Contracts Manager

PRIOR AMOUNT ENCUMBERED

FOR THIS AGREEMENT

FUND ITEM CHAPTER STATUTE FISCAL YEAR
$-0- 3760-801-0262 = $100,000.00
3760-101-6083(B5862) = $50,000.00
25 29/18
2014
2018
14/15
18/19

TOTAL AMOUNT ENCUMBERED

TO DATE

PROJECT NAME
$150,000.00 Torro Creek Ranch Acquisition
I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above.

SIGNATURE OF ACCOUNTING OFFICER DATE


GRANTEE ACCOUNTING PROJECT MANAGER CONTROLLER STATE AGENCY AGREEMENT NUMBER AM. NO.
19-131

TAXPAYERS FEDERAL EMPLOYER
IDENTIFICATION NO.
95-2308629

TITLE OF OFFICER ACTING FOR STATE AGENCY
Executive Officer State Coastal Conservancy

GRANTEE'S NAME
City of Morro Bay
5/1/2020
1st May

City of Morro Bay
Grant Agreement No. 19-131

City of Morro Bay
Grant Agreement No. 19-131

The Real Property is being acquired for purposes of open space, protection of open space, wildlife habitat, water quality and water supply and to provide public access consistent with these purposes (collectively, the “Acquisition Purposes”).

Grantee shall provide any funds beyond the Grant Funds which are required to complete the acquisition of the Real Property.

CONDITIONS PRECEDENT TO ACQUISITION AND DISBURSEMENT
Grantee shall not acquire the Real Property and the Conservancy shall not be obligated to disburse the Grant Funds under this Agreement until the following conditions precedent have been satisfied or waived in writing:

A. The City Council of Grantee has adopted a resolution designating positions whose incumbents are authorized to negotiate and execute this agreement and amendments to it on behalf of Grantee.

B. The Executive Officer of the Conservancy (“Executive Officer”) has reviewed and approved in writing:

1. All title and acquisition documents pertaining to acquisition of the Real Property including, without limitation, an appraisal, a preliminary title report, agreement for purchase and sale, escrow instructions, environmental documentation or hazardous materials assessment, baseline conditions report, monitoring and reporting plan, and intended instruments of conveyance.

2. A plan for the installation of signs on the Real Property and acknowledgment of Conservancy support as provided in the “SIGNS AND ACKNOWLEDGMENT” section, below.

3. A signed and acknowledged Irrevocable Offer to Dedicate Title in Fee and Declaration of Restrictive Covenants, deed restriction, or other instrument, approved by the Executive Officer, that serves to permanently dedicate the property for the Acquisition Purposes.

This instrument shall be recorded concurrently with the instrument conveying title to the Real Property to Grantee.

4. A Baseline Report (as defined below) adequately documenting the physical and environmental condition of the Real Property as of the date of acquisition.

C. The purchase price for the Real Property may not exceed fair market value as established by the approved appraisal.

D. Evidence that sufficient funds are available to complete the acquisition.

City of Morro Bay
Grant Agreement No. 19-131

COSTS AND DISBURSEMENTS
When the Conservancy determines that all “CONDITIONS PRECEDENT TO ACQUISITION AND DISBURSEMENT” have been fully met, the Conservancy shall disburse Grant Funds to pay the following amounts for the acquisition of the Real Property as follows:

The purchase price, plus closing costs consisting of escrow, recording and title insurance fees, to the extent not included in the purchase price, shall be disbursed directly into an escrow account established for the acquisition.

Grantee shall request disbursement for the acquisition by sending a letter to the Conservancy which letter shall include all of the following (“Request Letter”):
(i) The name and address of Grantee,
(ii) The identification number of this Agreement,
(iii) The date,
(iv) The amount to be disbursed, and a description of the items for which disbursement is requested;
(v) The name, address and telephone number of the title company or escrow holder and the escrow account number to which the funds will be disbursed; and (vi) The letter shall be signed by an authorized representative of Grantee.

Failure to send the Request Letter will relieve the Conservancy of its obligation to disburse the Grant Funds.

TERMS OF AGREEMENT
This Agreement shall take effect when executed by both parties and received in the offices of the Conservancy together with a copy of the City Council resolution described in “CONDITIONS PRECEDENT TO ACQUISITION AND DISBURSEMENT” section of this Agreement. An authorized representative of Grantee shall sign the first page of the originals of this agreement in ink.

The term of this Agreement shall run from its effective date through June 30, 2040 (“Termination Date”).

City of Morro Bay
Grant Agreement No. 19-131

COMPLETION DATE
Grantee shall complete acquisition of the Real Property no later than September 30, 2020 (“Completion Date”).

Prior to the Completion Date, either party may terminate this Agreement for any reason by providing the other party with seven (7) days notice in writing (“Termination Notice”).

If the Conservancy terminates prior to the Completion Date, Grantee shall take all reasonable measures to prevent further costs to the Conservancy. The Conservancy shall be responsible for any reasonable and non-cancelable obligations incurred by Grantee in the performance of this Agreement prior to the effective date of Termination Notice, but only up to the unpaid balance of funding authorized in this Agreement.

AUTHORIZATION
The signature of the Executive Officer on the first page of this Agreement certifies that at its December 6, 2018 meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit 2. This Agreement is executed under that authorization and the authority delegated to the Executive Officer on September 21, 2001.

City of Morro Bay
Grant Agreement No. 19-131

STANDARD PROVISIONS

ESSENTIAL PROVISIONS OF OFFER TO DEDICATE TITLE IN FEE AND

DECLARATION OF RESTRICTIVE COVENANTS
The Irrevocable Offer to Dedicate Title in Fee by which Grantee permanently dedicates the Real Property for public or conservation purposes shall include the following essential provisions:

1. Grantee will irrevocably offers to dedicate fee title to the Real Property to the State of California, acting through the Conservancy and agrees to the covenants and restrictions on the use, encumbrance and transfer or conveyance of the Real Property (collectively “Offer”), as follows, in consideration of the Conservancy’s Grant to Grantee for the acquisition of the Real Property and the preservation of the public’s interest in the Real Property. a. TERMS OF ACCEPTANCE. The Offer made by Grantee may be accepted only if the Conservancy finds that the existence of Grantee has terminated or that termination of the existence of Grantee is imminent; or that Grantee or its successor in interest in the Real Property has violated one or more of the Restrictions (as defined below) set forth in the Offer and Declaration with respect to the Real Property, or any portion of it or interest in it.

In addition, the Conservancy may accept the Offer when the Real Property is under threat of condemnation or condemnation proceedings have been initiated. Condemnation means a permanent taking through the exercise of any government power (by legal proceedings or otherwise) by any party having the right of eminent domain (“Condemnor”); or through a voluntary sale or transfer by Grantee to any Condemnor, either under threat of exercise of eminent domain by a Condemnor or while legal proceedings for eminent domain are pending. If the Conservancy or its designee (“Accepting Party”) accepts the Offer due to threat of condemnation or initiation of condemnation proceedings and receives proceeds following condemnation, the Accepting Party shall distribute a proportionate share to Grantee. If an Accepting Party accepts the offer due to threat or initiation of condemnation, and condemnation does not occur, then the Accepting Party shall convey the Real Property to Grantee, unless the Accepting Party and Grantee otherwise agree in writing.
b. PROCESS FOR ACCEPTANCE. Upon a finding by the Conservancy, following written notice and a reasonable opportunity to cure, that any of the restrictive covenants set forth in the Offer has been violated; or that the existence of Grantee has terminated for any reason prior to a transfer of the Real Property in compliance with the Offer; or that the Real Property is under threat of condemnation or condemnation proceedings have been initiated; the Conservancy, or another public agency or a nonprofit organization

City of Morro Bay
Grant Agreement No. 19-131

designated by the Conservancy and which has agreed to accept the obligations of Grantee, may accept the offer made by Grantee in accordance with law, by recording in the Official Records of San Luis Obispo County a Certificate of Acceptance substantially in the form of Exhibit B, attached to the Offer.
c. RECORDATION OF ACCEPTANCE. The Offer is irrevocable and coupled with an interest, and upon recordation of a Certificate of Acceptance, the Offer shall have the effect of a grant of the Real Property to the State of California or other accepting entity designated by the Conservancy having executed a substantially similar acceptance as provided in the Offer.

2. DECLARATION OF RESTRICTIVE COVENANTS. Grantee declares and covenants that the Real Property shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, sold and improved subject to the following covenants and restrictions (“Restrictions”):
a. USE OF THE REAL PROPERTY. The Real Property shall be used solely for the purposes of open space, protection of open space, wildlife habitat, water quality and water supply and to provide public access consistent with these purposes (collectively, the “Acquisition Purposes”). No use of the Real Property inconsistent with the Acquisition Purposes is permitted. No development, as defined in California Public Resources Code Section 30106, shall be undertaken on the Real Property except that development for and in furtherance of the Acquisition Purposes or for prudent and reasonable management and stewardship of the Property (such as development necessary to address hazards or avoid of injury, or other similar activities).

The Real Property shall be used, managed, operated and maintained as provided in this Grant Agreement and consistent with the Bond Act and the Acquisition Purposes. b. USE OF THE REAL PROPERTY AS SECURITY FOR DEBT. The Real Property shall not be used as security for any debt without the written approval of the Executive Officer of the Conservancy.
c. TRANSFER OF THE REAL PROPERTY. Any transfer of the Real Property, or portion of or interest in it, is subject to the prior written approval of the Executive Officer of the Conservancy. The transferee, including any party accepting title to the Real Property pursuant to paragraph 1, above, shall be subject to all provisions of the Offer, including, without limitation, the Restrictions. If the Conservancy deems necessary, prior to the approval of any transfer of the Real Property, the transferee and the Conservancy shall enter into a new agreement sufficient to protect the interest of the people of California. d. MITIGATION. The Real Property shall not be used for mitigation (in other words, to compensate for adverse changes to the environment outside the boundaries of the Real

City of Morro Bay
Grant Agreement No. 19-131

Property) without the written permission of the Executive Officer. In providing permission, the Executive Officer may require that funds generated in connection with any authorized or allowable mitigation on the Real Property will be promptly remitted to the Conservancy.
e. CONDEMNATION. If the Real Property is under threat of condemnation or has been condemned, as defined above, Grantee shall promptly notify the Conservancy in writing, shall assert any applicable presumption regarding the use of the Real Property for the Acquisition Purposes as the highest and best use under Public Resources Code §5542.5(a), Code of Civil Procedure §1240.680 or any successor, subsequent or other legislation, and shall use its best efforts to obtain the maximum compensation possible.

Upon receiving condemnation proceeds, Grantee shall promptly pay to the Conservancy a percentage of the condemnation proceeds, after deducting reasonable costs in defending the condemnation, equivalent to the respective percentage of the total acquisition cost originally contributed by the Conservancy.
f. USE OF THE PROPERTY FOR THE CALIFORNIA COASTAL TRAIL. On request of the Conservancy, Grantee shall permit alignment, designation or development of a segment of the California Coastal Trail (the “Trail”) on the Real Property, including the placement and maintenance of related signage, and, through an instrument acceptable to the Executive Officer of the Conservancy, shall permanently dedicate the necessary portion of the Real Property for use as a segment of the Trail, as aligned.

3. BASELINE DOCUMENTATION AND MANAGEMENT PLAN. The parties acknowledge the need to document the natural and other physical attributes of the Real Property in an inventory of such attributes in a Baseline Documentation Report and Site Map (“Baseline Report”) and the need to develop and implement a Management (“Management Plan”) for the Real Property.
a. The Baseline Report was prepared by the grantee’s partner, the Land Conservancy of San Luis Obispo County, and is approved by Grantee and Conservancy as reflecting the baseline natural resource conditions of the property. Grantee and Conservancy each have retained a copy of the Baseline Report. The parties agree that the Baseline Report contains an accurate representation of the conservation values of the Real Property at the time that the Offer is recorded, and is intended to serve as an objective, though nonexclusive, information baseline for monitoring compliance with the terms of the Offer.

The foregoing notwithstanding, if a dispute arises with respect to the nature and extent of the physical or biological condition of the Real Property, the parties shall not be foreclosed from utilizing any and all other relevant documents, surveys, or other evidence or information to assist in the resolution of the dispute. b. The Grantee shall develop a Management Plan within three (3) years of the date of

City of Morro Bay
Grant Agreement No. 19-131

acquisition of the Real Property. The Management Plan shall identify the resource management and public access goals and shall serve as a guide to adaptively manage the property, utilizing best management practices to achieve the Acquisition Purposes. All management activities on the Real Property shall be conducted in a manner that is consistent with the Acquisition Purposes and shall ensure that public use does not materially impair or interfere with the natural and scenic resources identified in the Baseline Report. The Management Plan and any future updates or amendments will be subject to review and approval by Conservancy and will be approved by the Conservancy if consistent with the Acquisition Purposes.

4. BENEFIT AND BURDEN. The Offer shall run with and burden the Real Property. All obligations, terms, conditions, and Restrictions imposed by the Offer shall be deemed covenants and Restrictions running with the land and shall be effective limitations on the use of the Real Property from the date of recordation of this document, and shall bind Grantee and all its successors and assigns. The Offer shall benefit the State of California.

5. MONITORING AND INSPECTION OF THE PROPERTY
Grantee shall comply with the Conservancy’s requests for information regarding Grantee’s compliance with the restrictive covenants and essential terms of the Offer (“Monitoring Information”). The Conservancy has the discretion to determine when and what Monitoring Information to request. Unless directed otherwise by the Conservancy, Grantee shall, in the manner specified by the Conservancy, return written responses to the Conservancy within sixty (60) days of grantee’s receipt of a request for Monitoring Information. Grantee shall inspect the Real Property regularly and take other actions as necessary to ensure that Monitoring Information is accurate.

6. REMEDIES NOT EXCLUSIVE. The remedies set forth in the Offer are in addition to, and are not intended to displace, any other remedy available to the Conservancy by common law or any applicable local, state or federal law.

7. IRREVOCABLE OFFER
The Offer will be irrevocable.

SIGNS AND ACKNOWLEDGMENT
Prior to acquiring the Real Property Grantee shall submit a plan to the Executive Officer for the installation of signs on the Real Property and acknowledgment of Conservancy support. Except as the Executive Officer agrees otherwise, the plan shall commit Grantee to mention the Conservancy’s support in its project-related press releases, contacts with the media, and social media postings, and on its website.

City of Morro Bay
Grant Agreement No. 19-131

Grantee shall install and maintain one or more signs visible from the nearest public roadway identifying the Real Property, acknowledging Conservancy assistance and displaying the Conservancy’s logo. The Conservancy shall provide to Grantee specifications for the signs. The signs shall also acknowledge funding from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1) by using the official logo prepared by the California Natural Resources Agency, which the Conservancy has available in various file formats. Grantee may incorporate the required information into other signs as approved by the Executive Officer.

In special circumstances, where the placement of signs or the general specifications are inappropriate, the Executive Officer may approve alternative, more appropriate methods for acknowledging the sources of funding.

USE, MONITORING, MANAGEMENT, OPERATION AND MAINTENANCE
Grantee shall use, monitor, manage, operate and maintain the Real Property in a manner consistent with the Acquisition Purposes. Grantee assumes all monitoring, management, operation and maintenance costs associated with the Real Property including the cost of ordinary repairs and replacements of a recurring nature, and costs of enforcement of regulations. The Conservancy shall not be liable for any costs of monitoring, management, operation or maintenance. Grantee shall refrain from developing or otherwise using any other property it owns or controls near the Real Property in a manner that interferes with or inconveniences the use, monitoring, management, operation or maintenance of the Real Property or detracts from the Acquisition Purposes.

MITIGATION
Without the written permission of the Executive Officer, Grantee shall not use or allow the use of any portion of the Real Property for mitigation (in other words, to compensate for adverse changes to the environment elsewhere). In providing permission, the Executive Officer may require that all funds generated in connection with any authorized or allowable mitigation on the Real Property shall be remitted promptly to the Conservancy. As used in this section, mitigation includes, but is not limited to, any use of the property in connection with the sale, trade, transfer or other transaction involving carbon sequestration credit or carbon mitigation.

INDEMNIFICATION AND HOLD HARMLESS
Grantee shall be responsible for, indemnify and hold harmless the Conservancy, its officers, agents and employees from any and all liabilities, claims, demands, damages or costs, including, without limitation litigation costs and attorney’s fees resulting from, growing out of, or in any way connected with or incident to this Agreement, except for active negligence or willful misconduct of the Conservancy, its officers, agents or employees The duty of Grantee to

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Grant Agreement No. 19-131

indemnify and hold harmless includes the duty to defend as provided in Civil Code Section 2778.

This Agreement supersedes any right Grantee may have as a public entity to indemnity and contribution as provided in Gov. Code Sections 895 et seq.

Grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the State, its officers, agents or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this Agreement.

AUDITS/ACCOUNTING/RECORDS
Grantee shall maintain financial accounts, documents, and records (collectively, “Required Records”) relating to this Agreement, in accordance with the guidelines of “Generally Accepted Accounting Principles” published by the American Institute of Certified Public Accountants to the extent applicable to governmental agencies such as cities. The Required Records include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, and disbursement of all funds related to the acquisition, use, management, operation and maintenance of the Real Property.

The Conservancy or its agents may review, obtain, and copy all Required Records. Grantee shall provide the Conservancy or its agents with any relevant information requested and shall permit the Conservancy or its agents access to Grantee’s city hall premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this Agreement and any applicable laws and regulations.

Grantee shall retain the records related to the acquisition for three (3) years following the date of final disbursement for the acquisition by the Conservancy. All other records shall be retained by Grantee for three (3) years following the later of final payment and the final year to which the records pertain. The records shall be subject to examination and audit by the Conservancy and the Bureau of State Audits during the retention periods.

If Grantee retains any contractors to accomplish any of the work of this Agreement, Grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors.

The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this Agreement.

COMPUTER SOFTWARE
Grantee certifies that it has instituted and will employ systems and controls appropriate to ensure

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that, in the performance of this Agreement, state funds will not be used for the acquisition, operation or maintenance of computer software in violation of copyright laws.

NONDISCRIMINATION CLAUSE
During the performance of this Agreement, Grantee and its contractors shall not deny the Agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Grantee shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Grantee and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the Conservancy to implement such article. Grantee shall permit access by representatives of the Department of Fair Employment and Housing and the Conservancy upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the Conservancy shall require to ascertain compliance with this clause. Grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this Agreement.

AMERICANS WITH DISABILITIES ACT
By signing this Agreement, Grantee certifies that it is in compliance with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

PREVAILING WAGE
Work done under this Agreement may be subject to the prevailing wage and other related

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requirements of the California Labor Code, Division 2, Part 7, Chapter 1, sections 1720-1861. If required by law to do so, Grantee shall pay prevailing wage to all persons employed in the performance of any part of the project and otherwise comply with all associated requirements and obligations.

Grantee is responsible for determining whether the project is subject to prevailing wage laws, and for complying with all labor laws applicable to the project. Grantee may also review the Conservancy publication, Information on Current Status of Prevailing Wage Laws for State Coastal Conservancy Grantees (May 2018), available from the Conservancy on request; provided, that this publication is for Grantee’s informational purposes only, and shall not be construed as legal advice to Grantee on whether r’s project is subject to prevailing wage laws .

UNION ORGANIZING
By signing this Agreement, Grantee hereby acknowledges the applicability of Government Code Sections 16645 through 16649 to this Agreement and certifies that no state funds disbursed by this Agreement will be used to assist, promote or deter union organizing. If Grantee makes expenditures to assist, promote or deter union organizing, grantee agrees to maintain records sufficient to show that no state funds, including the funds provided under this Agreement, have been used for these purposes, and shall provide these records to the Attorney General upon request.

DRUG-FREE WORKPLACE
Grantee’s signature on this Agreement constitutes the certification required by Government Code Section 8355 (Drug Free Workplace Act of 1990), which requires that all state grantees provide a drug-free workplace by doing all of the following:
(1) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the person’s or organization’s workplace and specifying actions that will be taken against employees for violations of the prohibition.
(2) Establishing a drug-free awareness program to inform employees about all of the following:
a. The dangers of drug abuse in the workplace.
b. The person’s or organization’s policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance programs. d. The penalties that may be imposed upon employees for drug abuse violations. (3) Requiring that each employee engaged in the performance of the grant be given a copy of the drug-free workplace statement and that, as a condition of employment on the grant, the employee agrees to abide by the terms of the statement.

City of Morro Bay
Grant Agreement No. 19-131

INDEPENDENT CAPACITY
Grantee, and the agents and employees of Grantee, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of the State of California.

ASSIGNMENT
Grantee may not assign this Agreement in whole or in part without the written consent of the Executive Officer of the Conservancy

TIMELINESS
Time is of the essence in this agreement.

EXECUTIVE OFFICER’S DESIGNEE
The Executive Officer shall designate a Conservancy project manager who shall have authority to act on behalf of the Executive Officer with respect to this Agreement. The Executive Officer shall notify Grantee of the designation in writing.

AMENDMENT
No change in this Agreement shall be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this Agreement shall be binding on either party.

LOCUS
This Agreement is deemed to be entered into in the County of San Luis Obispo.

SURVIVAL
The “USE, MONITORING, MANAGEMENT, OPERATION, AND MAINTENANCE,” “CONSERVANCY INSPECTION AND MONITORING,” and ”INDEMNIFICATION AND HOLD HARMLESS” sections, above, shall survive the termination of this Agreement.

(LOT 6NW)
Exhibit 1

APN 065-022-008 (portion)
and 073-075-
016 (all)

APN 065-022-008 (portion)

COASTAL CONSERVANCY
Staff Recommendation
December 6, 2018

TORO CREEK RANCH ACQUISITION
Project No. 18-031-01
Project Manager: Timothy Duff
RECOMMENDED ACTION: Authorization to disburse up to $1,000,000 to the Trust for Public Land to acquire the 283 acre Toro Creek Ranch located between Morro Bay and Cayucos, San Luis Obispo County.

LOCATION: Chevron Estero Marine Terminal, between Morro Bay and Cayucos in unincorporated San Luis Obispo County.

PROGRAM CATEGORY: Public Access

EXHIBITS
Exhibit 1: Location and Site Maps
Exhibit 2: Photos
Exhibit 3: Project Letters
RESOLUTION AND FINDINGS:

Staff recommends that the State Coastal Conservancy adopt the following resolution pursuant to Sections 31220 and 31400 et seq. of the Public Resources Code:
“The State Coastal Conservancy hereby authorizes the disbursement of an amount not to exceed one million dollars ($1,000,000) to the Trust for Public Land, for the acquisition of the approximately 283-acre Toro Creek Ranch property, , (consisting of San Luis Obispo County Assessor Parcel Nos. 073-092-052, 073-092-053, 073-075-016, 073-075-011, and a portion of 065-022-008) to protect open space, wildlife habitat, water quality and water supply and to provide public access consistent with these purposes, subject to the following conditions:

1. Prior to the disbursement of funds for the acquisition, the grantee shall submit for the review and approval of the Executive Officer of the Conservancy (Executive Officer):
a. All relevant acquisition documents for the acquisition including, without limitation, the appraisal, purchase and sale agreement, deed, escrow instructions, environmental or hazardous materials assessment, and title report;
b. A baseline conditions report;
Exhibit 2

TORO CREEK RANCH ACQUISITION

c. A monitoring and reporting plan; and
d. Evidence that sufficient funds are available to complete the acquisition.

2. The grantee shall pay no more than fair market value for the property, as established in an appraisal approved by the Executive Officer.

3. The property acquired under this authorization shall be managed and operated for open space, wildlife habitat, water quality and water supply, and to provide public access consistent with these purposes. The property shall be permanently dedicated to those purposes by an appropriate instrument approved by the Executive Officer.

4. Conservancy funding shall be acknowledged by erecting and maintaining a sign on the property or in a nearby publicly-viewable area, the design and location of which are to be approved by the Executive Officer.”
Staff further recommends that the Conservancy adopt the following findings:
“Based on the accompanying staff report and attached exhibits, the State Coastal Conservancy hereby finds that:

1. The proposed authorization is consistent with Chapters 5.5 and of Division 21 of the Public Resources Code, regarding Integrated Coastal and Marine Resources Protection and a System of Public Accessways, respectively.

2. The proposed project is consistent with the current Conservancy Project Selection Criteria and Guidelines.

3. The Trust for Public Land is a nonprofit organization existing under section 501(c)(3) of the U.S. Internal Revenue Code, and has purposes consistent with Division 21 of the Public Resources Code.”
PROJECT SUMMARY:

Staff recommends disbursement of up to $1,000,000 to the Trust for Public Land (TPL) for the acquisition of the 283-acre Toro Creek Ranch property located in San Luis Obispo County. (See Exhibit 1). The purpose of the acquisition is to expand public access and protect open space, wildlife habitat, and water quality and supply, as described more fully below. The proposed acquisition, comprised of three lots located on both sides of Highway One, includes 16 acres of oceanfront land west of Highway 1 that extends along a half mile sandy beach and bluffs, and nearly one mile of Toro Creek, a steelhead-bearing stream (Exhibit 1).

Since the late 1920’s the Standard Oil/Chevron Estero Marine Terminal stored and loaded crude oil from the Central Valley to large ocean tankers that would anchor offshore between Cayucos and the City of Morro Bay. The 3,000-acre Chevron Marine Terminal ceased operations in 1999 and Chevron began the process of retiring the facilities. Over the past several years, Chevron has successfully subdivided their land holdings and sold off several parcels, including 540 acres to private individuals. Another two properties encompassing roughly 400 acres are currently in escrow, and several other parcels are listed for sale. These sales demonstrate a strong demand for estate ranch properties particularly in close proximity to the Pacific Ocean and illustrate the need for urgent action to protect remaining portions of the Property.

TORO CREEK RANCH ACQUISITION

For the proposed project, TPL would acquire a total of 283 acres, including approximately one mile along the north bank of Toro Creek and most of the ocean-front parcels. The acquisition will protect roughly 267 acres of coastal grasslands, riparian and other habitats from conversion to more intensive residential and/or agricultural land uses such as vineyards or orchards. This in turn will protect Toro Creek from the impacts of increased water diversions and erosion and will serve to protect instream water quality and supply for the South-Central California Coast Steelhead and other threatened and endangered species known to occur on the property. The project will also protect public access to the beach/bluff areas, and facilitate completion of a planned segment of the California Coastal Trail between Morro Bay and Cayucos. In addition, the acquisition will help maintain a scenic corridor between the City of Morro Bay and town of Cayucos, as identified in the local coastal plan. (See Consistency with Local Coastal Program Policies section, below and Exhibit 3).

Under the proposed project, TPL will acquire Lot 1 (~258 acres) from Chevron, and Lots 6N (9 acres) and 7N (17 acres) from the Cayucos Sanitary District (CSD) after the District acquires the land from Chevron for their planned wastewater treatment plant (Exhibit 1, page 4). The CSD will sell the underlying fee to TPL and retain utility easements over these lots to accommodate their operations, including the use of existing pipes and outfalls to discharge excess treated water from their plant. The CSD has recently purchased other lots from Chevron to serve as the site for their new wastewater plant. Lot 1 is suitable for estate-residential home sites that would capitalize on the same stunning panoramic ocean views to be protected by the proposed acquisition. Additionally, agricultural uses would be permissible in several meadows and open areas on the property. These factors underline the urgency of the proposed acquisition.

Following acquisition, TPL will transfer most of Lot 1 to the County of San Luis Obispo (County) and the rest to the City of Morro Bay. The County will also take ownership of lots 6N and 7N. The inland portion of Lot 1 includes a single-family residence that is currently leased on a month-to-month basis. Following the transfer of the property the County intends to lease the home and direct the revenue towards their costs to own and manage the property. The City of Morro Bay has agreed to take ownership and maintain a portion of Lot 1 seaward of Highway One, including a stretch of beach historically accessible to visitors with dogs that the City has committed to own and operate as a dog-friendly park (Exhibit 1).

Site Description: Toro Creek Ranch is located on both sides of Highway One adjacent to Estero Bay and the Pacific Ocean between Morro Bay and Cayucos in unincorporated San Luis Obispo County (Exhibit 1). To the northwest is a residential area of southern Cayucos. To the northeast, the Cayucos Land Conservancy owns 30-acres of undeveloped land used for hiking, mountain biking, and open space. The Whale Rock Reservoir pump station and a Cal Fire station also border the northern edge of the property, and on the eastern boundary, Cayucos Sanitary District owns additional land. The southern end of the property shares a border with private agricultural / grazing land and the former Chevron Estero Marine terminal facilities. Toro Creek extends for nearly a mile along the property’s southern edge while the western property boundary borders the Pacific Ocean. The South-Central California Coast Steelhead is known to occur in Toro Creek, and other threatened and endangered species on the property include California redlegged frog, tidewater goby and western snowy plover.

Lot 1 is comprised of approximately 245 acres east of the highway and 12 acres west of Highway One, including beach areas adjacent to the mean high tideland. (See Exhibit 1). Most of the inland portion of Lot 1 features gentle to steeper hillsides used for cattle grazing with

TORO CREEK RANCH ACQUISITION

elevations ranging from 30 feet to 700 feet above sea level. The inland side of Lot 1 includes a small, 990 square-foot single-family residence and limited outbuildings with access from Toro Creek Road that has been leased to a family for several decades. A gravity-fed water storage tank is located above the home that is fed by a horizontal well for residential and livestock use. Lot 6N is comprised of a total of 9 acres located on both sides of Highway 1 and includes a lift station and pipes that extend to the ocean, formerly used as part of Chevron’s operations, and currently being repurposed for use by the CSD. Lot 7N totals 17 acres located east of Highway One.

Grantee Qualifications: TPL has a long history of working with the Conservancy and local partners on land conservation in the Morro Bay area and continues to have the staff capacity and resources to complete the proposed acquisition successfully, as well as a potential future phase of acquisitions from Chevron. TPL staff has demonstrated the expertise required to pull together such a complex set of proposed land transactions, including recruiting several local agencies to commit to own and manage various pieces of the larger property complex. They have also raised significant state and local funding needed to complete the acquisition.

Project History: TPL contacted Conservancy staff in late 2017 to discuss the project and the potential for funding under Proposition One. Staff confirmed the project would be a viable candidate for funding and in June of 2018 TPL submitted a grant application. In August 2018, Conservancy staff agreed to recommend funding the project and for the past several months staff has assisted TPL with various aspects of the project.

PROJECT FINANCING
Coastal Conservancy $1,000,000
Natural Resources Agency (EEMP)* $1,000,000
Wildlife Conservation Board* $1,500,000
State Department of Fish and Wildlife (Prop 1)* $1,000,000 County of San Luis Obispo* $500,000
Project Total $5,000,000
*Awards Pending
The anticipated source of Conservancy funds for this project is an appropriation from the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1, Water Code section 79700 et seq.). Proposition 1 funds appropriated to the Conservancy may be used “for multibenefit water quality, water supply, and watershed protection and restoration projects for the watersheds of the state” (Section 79731). Section 79732 identifies specific purposes of Chapter 6, which include: protecting and restoring coastal watersheds, including, but not limited to bays, marine estuaries, and nearshore ecosystems; and assisting in the recovery of endangered, threatened or migratory species by improving watershed health, instream flows, fish passage and coastal or inland wetland restoration. Because the proposed project consists of acquisition of

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land interests to protect and restore a coastal watershed and improve the health of the Toro Creek watershed and Estero Bay, it is an appropriate use of Proposition 1 funds.

As required by Proposition 1, the proposed project provides multiple benefits. The acquisition will serve to protect biodiversity and habitat, ocean and coastal ecosystems and resources, and water. The risk to these diverse natural resources will be addressed by restricting development within a coastal watershed, maintaining wildlife and stream habitat in a major wildlife corridor, and protecting water quality through development restrictions.

In accordance with Section 79707(b), which requires agencies to prioritize “projects that leverage private, federal, or local funding or produce the greatest public benefit,” this project is expected to leverage local funding.

The project was selected through a competitive grant in June 2015 (“Prop 1 Guidelines”). (See Section 79706(a)). The proposed project meets each of the evaluation criteria in the Prop 1 Guidelines as described in further detail in this “Pro process under the Conservancy’s Proposition 1 Grant Program Guidelines adopted ject Financing” section, the “Project Summary” section and in the “Consistency with Conservancy’s Project Selection Criteria & Guidelines” section of this report.

The grantee is applying to Natural Resources Agency, Wildlife Conservation Board, and State Department of Fish and Wildlife for $3 million in match funds from various grant programs including the Environmental Enhancement and Mitigation Grant Program and Proposition 1. The grantee is also raising funds from the County of San Luis Obispo and possibly private sources.

The grantee will be providing in-kind staff services to manage the transaction with an estimated value of $50,000.

CONSISTENCY WITH CONSERVANCY’S ENABLING LEGISLATION:

The proposed project will be undertaken pursuant to with Chapter 5.5 (Integrated Coastal and Marine Resources Protection) and Chapter 9 (Public Access) of Division 21 of the Public Resources Code.

Within Chapter 9, section 31400 states that the Conservancy shall have a principal role in the implementation of a system of public accessways to and along the state’s coastline. Consistent with this section, acquisition of the Toro Creek property will facilitate planning for the future development of public access to and along the state’s coastline.

Section 31400.1 allows the Conservancy to award grants to nonprofit organizations for acquisition and development of lands for public access purposes to and along the coast. The proposed grant is consistent with this section because the acquisition of the Toro Creek property would enable development of public access to and along the coast.

Section 31400.2 allows the Conservancy to provide up to the total cost of an acquisition and the initial development of public accessways by a nonprofit organization. Consistent with this section, Conservancy staff has considered a number of factors in determining the amount of funding for the proposed project. The proposed level of funding was evaluated relative to the total amount of funding available to the Conservancy for coastal public accessway projects, and the fiscal resources of the applicants. The proposed grant is consistent with this section because

TORO CREEK RANCH ACQUISITION

a significant match to Conservancy funds would be provided by other state agencies and San Luis Obispo County. The amount of proposed Conservancy funding is appropriate relative to the total amount of funding available to the Conservancy for coastal public accessway projects.

Conservancy participation in the proposed project is also consistent with Chapter 5.5, Integrated Coastal and Marine Resources Protection (Section 31220) of the Public Resources Code. Section 31220(b) authorizes the Conservancy to undertake a project or award grants for coastal watershed projects that meet one or more criteria of that section. Consistent with Section 31220(b)(2), the proposed project will protect fish and wildlife habitat within coastal watersheds, including endangered species habitat in Toro Creek by protecting land adjacent to the anadromous fish-bearing creek from development or harmful agricultural practices. The land use restrictions will also protect other marine-related species such as tidewater goby and western snowy plover.

Consistent with Section 31220(a), staff has consulted with Central Coast Regional Water Quality Control Board in the development of the project to ensure consistency with Chapter 3 (commencing with Section 30915) of Division 20.4 of the Public Resources Code, the purpose of which is to restore water quality and environment of coastal waters, estuaries, bays, and nearshore waters.

Likewise, consistent with Section 31220(c), staff has consulted with the State Water Resources Control Board on project selection and confirmed that the acquisition project is consistent with local watershed management plans and water quality control plans adopted by the State Water Resources Control Board and Regional Water Quality Control Boards (see the “Consistency with Local Watershed Management Plan/State Water Quality Control Plan” section below). The project also includes a monitoring and evaluation component.

CONSISTENCY WITH CONSERVANCY’S 2018-2022 STRATEGIC PLAN GOAL(S) & OBJECTIVE(S):

Consistent with Goal 1, Objective E of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will secure real property to facilitate the development of the California Coastal Trail.

Consistent with Goal 2, Objective G of the Conservancy’s 2018-2022 Strategic Plan, the proposed project entails acquiring land to allow for development of new coastal accessways.

Consistent with Goal 5, Objective A of the Conservancy’s 2018-2022 Strategic Plan, the proposed project will protect 283 acres of a significant coastal and watershed resource property.

CONSISTENCY WITH CONSERVANCY’S
PROJECT SELECTION CRITERIA & GUIDELINES:

The proposed project is consistent with the Conservancy’s Project Selection Criteria and Guidelines, last updated on October 2, 2014, in the following respects:

Required Criteria

1. Promotion of the Conservancy’s statutory programs and purposes: See the “Consistency with Conservancy’s Enabling Legislation” section above.

TORO CREEK RANCH ACQUISITION

2. Consistency with purposes of the funding source: See the “Project Financing” section above.

3. Promotion and implementation of state plans and policies: By acquiring the subject property, the project serves to promote and implement several state plans including:
• California Water Action Plan (2014). California Natural Resources Agency, the California Environmental Protection Agency, and the California Department of Food and Agriculture developed this Water Action Plan to meet three broad objectives:
more reliable water supplies, the restoration of species and habitat, and a more resilient, sustainably managed water resources system. By protecting a one-mile stretch of Toro Creek, this project will advance the following goal: Goal #4, which identifies restoration of coastal watersheds as a priority action in order to protect and restore important ecosystems, including the South-Central California Coast Steelhead. • California @ 50 Million: The Environmental Goals and Policy Report (Governor’s Office of Planning and Research, 2013 Draft). Key Action #3 of the “Preserve and Steward State Lands and Natural Resources” calls for building resilience in natural systems and specifically calls out the need for well-maintained watersheds and floodplains. This project will advance two of the Goals for California’s Future: 2) preserve and steward the state’s lands and natural resources, and 3) build sustainable regions that support healthy, livable communities.
• CA Climate Adaptation Strategy/Safeguarding California: Reducing Climate Risk Plan (CA Natural Resources Agency, July 2014). The plan identifies “Actions Needed to Safeguard Biodiversity and Habitats” including #1: Improve habitat connectivity and protect climate refugia. This acquisition will preserve a portion of a significant regional wildlife corridor at the intersection of two Essential Connectivity Areas (ECAs) which converge in the southern portion of the Adelaida wildlife corridor. These ECAs are the San Geronimo – Los Padres National Forest Corridor, which extends north through Big Sur, and the La Panza Range – San Geronimo Corridor, which extends south to Cuyama Valley. The Toro Creek property supports both local and migratory species that traverse these ECAs. This role will become increasingly important as species migrate due to climate change.

4. Support of the public: The project has broad support of the public, local community groups, public agencies, and elected officials as demonstrated by the letters attached as Exhibit 3.

5. Location: The project is located both inside and outside the Coastal Zone with roughly three quarters of the property in the Coastal Zone. Toro Creek extends for a mile through the property from the mouth of the creek to the upper reaches of the watershed outside of the Coastal Zone. The project will thus serve to protect resources located both in and out of the Coastal Zone, including habitat for the South-Central California Coast Steelhead that is known to occur in Toro Creek.

6. Need: Conservancy funds are needed to match other funds. If not provided there is a high likelihood that the project will not be completed.

7. Greater-than-local interest: The proposed project will protect water resources in a coastal watershed that drains to the ocean, benefit federally-listed threatened and endangered

TORO CREEK RANCH ACQUISITION

species, including the South-Central California Coast Steelhead, California red-legged frog, tidewater goby and western snowy plover, and protect public views from Highways One.

8. Sea level rise vulnerability: The land to be acquired features elevation ranges from the mean high tide to approximately 700 feet above sea level. The project does not include any proposed new development. Highway One bisects the property at an elevation of approximately 40 feet and it will be the responsibility of the State Department of Transportation (Caltrans) to address any future threats to the highway from sea level rise.

Additional Criteria

9. Leverage: See the “Project Financing” section above.

10. Urgency: Chevron has recently sold a number of parcels they own at their former terminal site and several others are currently listed for sale. It is urgent to acquire the Toro Ranch parcels before they are sold for future residential development.

11. Cooperation: The project entails the cooperation of several local agencies and land trusts.

CONSISTENCY WITH LOCAL COASTAL PROGRAM POLICIES:

Consistent with the San Luis Obispo County Local Coastal Plan for the project area (Estero Area Plan, certified by the Coastal Commission in 1988 and updated in 2009), Chapter 4, Land Use Policies and Programs, Rural Land Use Policy 10 states, “Protect open space and sensitive resources on the coastal terrace to the south of Cayucos,” Policy 12 regarding the Chevron Estero Marine Terminal Pursue calls for “improved coastal access and amenities such as a bicycle and pedestrian path connection between Cayucos and the city of Morro Bay,” and Policy 13 states that Intensive development of this area is not intended, and its open space character needs to be preserved. Finally, Morro Bay Fringe Land Use Policy 1 states, “Prevent urban development outside the Morro Bay city limits, and direct future growth onto developable, non-prime lands within the city. The proposed acquisition is consistent with each of these local coastal program policies.

CEQA COMPLIANCE:

The project consists of the purchase of land in order to preserve fish and wildlife habitat and provide access to public lands where the purpose of the acquisition is to preserve the land in its natural condition. Such purchases are exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines, Class 13 (Acquisition of Lands for Wildlife Conservation Purposes). 14 Cal. Code Regs. § 15313. The project also involves the purchase of land in order to preserve open space and wildlife resources. Such purchases are exempt from CEQA under State CEQA Guidelines, Class 25 (Transfers of Ownership in Land to Preserve Existing Natural Conditions and Historical Resources), 14 Cal. Code Regs. § 15325.

Upon Conservancy approval, staff will file a Notice of Exemption.

Prepared By: __GK__ Dept Review: GK
City Manager Review: __AL____ City Attorney Review: ___BS ____
Staff Report
TO: Honorable Mayor and City Council DATE: August 21, 2025 FROM: Greg Kwolek, Public Works Director
SUBJECT: Approve Professional Services Agreement for RRM Design Group for Design Services for Phase 1 of Coleman Park Improvements Project

RECOMMENDED ACTION
Approve and authorize the City Manager to execute a professional services agreement with RRM Design Group to provide design services for Phase 1 of the Coleman Park Improvements project in an amount not-to-exceed $182,365, which includes an estimated cost of $156,765 for the base tasks and an estimated cost of $25,600 for optional tasks.

ALTERNATIVES
The City Council may:

1. Choose not to 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 Phase 1 of Coleman Park Improvements is already included in the project’s capital budget as described below:
$ 31,500 – Deferred Maintenance Fund
$ 40,000 – Castle Winds Community Development
$ 69,500 – Park Fee Fund / 1975 Quimby Act
$ 177,952 – Proposition 68 Per Capita Program Grant
$ 600,000 – Rural Recreation & Tourism Grant
$ 918,952 Total project budget

BACKGROUND/DISCUSSION
In fall of 2021, City staff performed community outreach in the form of on-site community meetings to understand the interests and desires of the community for the Coleman Park area. Based on the input received, the City applied for and received a $600,000 Rural Recreation & Tourism Grant from the California State Parks Department (State Parks). This grant included scope to build a number of park amenities including construction of a public restroom, ADA parking, connecting pathways, playground and exercise equipment, a plaza, and cultural installations. Since then, significant increases in costs to construct as well as relatively high inflation on goods and services have rendered some of the amenities originally envisioned for the project infeasible from a budgetary standpoint. State Parks has indicated that several grantees are in a similar position and that State Parks has allowed these grantees to descope items from the grant. Staff plans to pursue this process as well, starting with a presentation to the Morro Bay Recreation and Parks Commission, which will review park amenities originally proposed and considered which can be descoped by State Parks. The Commission’s AGENDA NO: 8.a
MEETING DATE: August 26, 2025

recommendations will be a critical step in facilitating the request through State Parks to descope amenities currently included in the grant.

Coincidentally, the Coleman Park area falls within the purview of the now activated Waterfront Master Plan process. The Waterfront Master Plan will review the Coleman Park area and provide further feedback and concept plans that will help the City develop amenity concepts for the park. The timing of the potential descoping of park amenities dovetails with the Waterfront Master Plan process as it will produce new concepts for the park that can be built as a future phase of the project.

Given the immediate demand for the replacement of the Coleman Park restroom, staff proposes to proceed with Phase 1 of the project that will include design and construction of a restroom, ADA parking, and pathways to connect the parking and restroom to the Harborwalk and bike path. The design services agreement (Attachment 1) includes design, permitting support, and engineering services during construction for Phase 1. The scope of the contract is tailored to allow for the completion of construction of these improvements before Memorial Day in 2026.

ATTACHMENT

1. RRM Design Group Phase 1 Coleman Park Improvements Agreement

01181.0001/813182.1 1

AGREEMENT FOR SERVICES

BETWEEN CITY OF MORRO BAY AND

RRM DESIGN GROUP
THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into this 27th day of August, 2025 by and between CITY OF MORRO BAY, a California municipal corporation (“City”) and RRM DESIGN GROUP, a California corporation (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents: 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 generally acceptable 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. 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

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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 therefore. 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: 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 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.

1.8 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 five percent (5%) contingency and reimbursement for actual expenses, shall not exceed ONE HUNDRED EIGHTY-TWO THOUSAND, THREE HUNDRED SIXTY-FIVE Dollars ($182,365.00) (“Contract Sum”), unless additional compensation is approved pursuant to Section

1.5. Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. The Contract Sum shall include the attendance of Consultant at all project meetings 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

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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 August 31, 2026.

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

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

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

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

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

01181.0001/813182.1 5
ARTICLE 5. INSURANCE AND INDEMNIFICATION

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

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

01181.0001/813182.1 6
per claim and no less than $1,000,000 general aggregate. (e) 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. (f) Subcontractors. In the event Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, Consultant shall either: 1) include each subcontractor as insureds under its policies of insurance required herein; or, 2) Consultant shall furnish to City all documentation, required in Article 5 for Consultant, for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.

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

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

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ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability, and policies of insurance shall not contain any cross-liability exclusions. (d) Primary, Subrogation, Contribution and Coverage. All of the above policies of insurance shall be primary insurance. The insurers for above policies, Consultant and any subcontractors are all deemed hereof to waive all rights of subrogation and contribution they may have against City or City Parties, and their respective insurers, and all insurance policies required herein shall be endorsed to waive such rights. Any insurance maintained by City or City Parties will apply in excess of, and not contribute with, Consultant’s insurance. If Consultant maintains broader coverage and/or higher limits than the minimum amounts provided herein, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City and City Parties. None of the coverages required herein will be in compliance with this Agreement if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. Requirements of specific coverage features or limits contained herein are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
(e) Limitations, Self- Insured Retention and Deductibles. Consultant agrees that requirements of Article 5 shall not be construed as limiting in any way the extent to which 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 each of them harmless from 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

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Indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement.
(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 negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct 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.

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

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

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.

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

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

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

01181.0001/813182.1 11
remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement of this Agreement imposes no additional obligations on 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.

7.6 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.

7.7 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.

7.8 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

01181.0001/813182.1 12
such a conflict of interest exists upon sending Consultant written notice describing the conflict.

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

01181.0001/813182.1 13

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]

01181.0001/813182.1 14
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
Greg Kwolek
Acting City Manager
ATTEST:

Dana Swanson, City Clerk
APPROVED AS TO FORM:

Brian Stack, City Attorney
CONSULTANT:

RRM Design Group, a California Corporation
By:

Robert Camacho
Senior Vice President
[email protected]
By:

Debbie Rudd
Secretary, Treasurer
[email protected]
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.

Coleman Park
Design and Engineering
Services
Exhibit “A” Scope of Services
I. Project Summary
Coleman Park is a vital public space located along Morro Bay’s scenic coastal corridor, adjacent to the popular Morro Bay Harborwalk. This vital infrastructure links the Embarcadero’s commercial district with Morro Rock, making the park a key destination for both locals and tourists. Recognizing its strategic location and potential to enhance waterfront recreation, Coleman Park has prioritized replacement of the public restroom and playground, and inclusion of ADA compliant parking and paths of travel to the replacement elements. Construction completion goal is mid-May, 2026.

To achieve this aggressive schedule, the preliminary design process will be accelerated to develop one site plan showing the locations of the restroom, playground, two accessible parking spaces, and accessible paths of travel with input from the Recreation and Park Commission (RPC) early in October 2025. From the approved preliminary plan, the restroom, playground, accessible parking, and path of travel (Phase 1) will be developed into an independent bid set to go to construction in time to open to the public prior to the start of the tourist season toward the end of May 2026.

Since this work is considered deferred maintenance of existing park elements, consultation with the Planning staff confirmed this project is exempt from a Conditional Use Permit (CUP). Further, the park has been granted Categorical Exemption (CE) under CEQA. A Coastal Development Permit (CDP) may still be required.

For the remainder of Coleman Park’s development (Phase 2), the Waterfront Master Plan Action Committee (WMPAC) will develop a comprehensive master plan with community input. Following adoption of the Waterfront Master, implementation for the remainder of the park (Phase 3) may advance supported with future design and construction grants.

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

II. Scope of Services Task Outline
Task A: Pre-Design Services
Subtask A.01: Kickoff Meeting/Site Walk
Subtask A.02: Topographic Survey/Base Mapping
Task B: Preliminary Design Services (30% Plans)
Subtask B.01: Draft Schematic Plan
Subtask B.02: RPC Meeting – Draft Schematic Plan Review Subtask B.03: Final Schematic Plan
Task C: Final Design Services (PS&E)
Subtask C.01: Stormwater Control Plan
Subtask C.02: 90% Draft Construction Documents
Subtask C.03: 100% Draft Construction Documents
Subtask C.04: Bid-Ready Construction Documents
Subtask C.05: Bidding Support
Task D: Construction Support Services
Subtask D.01: Construction Support
Subtask D.02: Construction Observation
Subtask D.03: Record Drawings
Task E: Project Coordination Services
Subtask E.01: Project Coordination & Management
Subtask E.02: Project Development Team/External Stakeholder Meetings Subtask E.03: QA/QC Review
Task F: Optional Services
Subtask F.01: Visual Simulations
Subtask F.02: Coastal Development Permit

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

III. Detailed Scope of Services
Task A: Pre-Design Services
Subtask A.01: Kickoff Meeting/Site Walk
RRM will conduct a kickoff meeting attended by the City’s project management team, key Parks and Recreation staff, and key RRM team members will attend this meeting. Principally, this meeting will provide an opportunity to discuss and confirm the key park program elements as presented in the RFP and required by the grant.

Following the kickoff meeting, RRM and the project team will be available to walk the project site with City staff to discuss the project further and review it in greater detail. The site walk will provide an opportunity to inspect and photo log the existing facilities, including the restrooms, playground, parking, and walkways.

Deliverables:
• Prepare for and conduct one (1) kickoff meeting and one (1) site walk • Meeting notes
Subtask A.02: Topographic Survey/Base Mapping
RRM will perform a topographic survey of the park in the areas planned for the restroom, playground, two accessible parking spaces, and accessible paths of travel. Work will include detailing surface evidence of site structures, play equipment, aboveground utilities, drainage structures, critical tie in points, and other above ground pertinent information within the project limits. Tree diameters over 4 inches will be collected as well if applicable. The collected data will be incorporated into the digital base map for use in the design process. If the City has a Title Report available, easement information will be placed in the base map if retraceable from record documents referenced therein. If boundary monumentation is available, it will be collected, and a boundary compiled from record documents will be placed on the base map. This proposal does not include a full boundary survey of the project site.

Deliverables:
• Digital AutoCAD file of existing topographic data
Task B: Preliminary Design Services (30% Plans)
Subtask B.01: Draft Schematic Plan
RRM will develop a draft schematic plan prepared at a level for presentation to the City’s Recreation and Parks Committee. The draft schematic plan will illustrate the park’s replacement design and layout aspects as follows:

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

Recreation Design
RRM’s will develop an overall site plan focusing on the recreational hardscape features to illustrate the layout, character, and function of the playground, restroom, and parking lot improvements as well as the path to connect the elements.

Restroom Building
RRM will work with City staff to coordinate a preferred prefabricated restroom vendor for the space. The design of the restrooms will be developed to a schematic level. We will work with the vendor to develop floor plan layouts, elevations and materials boards.

Utility Coordination
RRM will coordinate the utilities required for the restroom building at the park. Sewer, domestic water and storm drain utilities will be schematically designed to confirm our restroom location is feasible for construction. Our electrical engineer will coordinate power requirements for the restroom.

Construction Cost Projection
Based on the draft schematic package, RRM’s construction cost estimator, OCMI, will prepare a construction cost projection for the site elements. The cost projection will be commensurate with a Class 3 estimate as defined by the Association for the Advancement of Cost Engineering (AACE).

To help illustrate the draft schematic plan and convey the design intent, RRM will prepare a colored and labeled plan view for use in meetings and media posts.

Deliverables:
• One (1) park schematic plan layout
• Up to two (2) restroom bldg. floor plans and elevations coordinated and provided by vendor • One (1) construction cost projection
Subtask B.02: RPC Meeting – Draft Schematic Plan Review RRM will work with City staff to prepare for and present the draft schematic plan to the Recreation and Parks Commission. The goal is to gain feedback and direction for moving the design towards a final schematic level. RRM will develop a power point, and/or other presentation support media/graphics as determined appropriate by the City/RRM team.

Deliverables:
• Attend one (1) RPC meeting
• Support media/graphics
Subtask B.03: Final Schematic Plan
Based on the results of the RPC meeting and consultation with City staff, RRM will then update the draft schematic plan to the final schematic plan level for processing the CDP. RRM’s team will “polish” the

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

design elements detailed in the draft schematic plan package to create the final rendered plan view graphics package, fully illustrating the overall park’s renovation.

Deliverables:
• One (1) color rendered and annotated schematic plan
• Manufacturer’s restroom plans
Task C: Final Design Services (PS&E)
Subtask C.01: Stormwater Control Plan
The recently adopted stormwater control requirements will be triggered as a requirement of the site improvements. This task will include the preparation of a stormwater control plan intended to conform to the Regional Water Quality Control Board (RWQCB), and the City's Stormwater Management Plan requirements. It will identify retention and runoff performance criteria and low-impact design features to be incorporated into the site. This task will include the calculation of the new impervious area and storage volumes for stormwater retention and peak runoff treatment. RRM will prepare an operation and maintenance manual that will specify inspection and maintenance intervals for all permanent BMP proposed in the Stormwater Control Plan and Site Improvement Plans. The reports will illustrate how stormwater runoff from the parks will be conveyed and controlled and include Watershed Area Maps that show the upstream and downstream flow patterns. The project improvements will incorporate reasonable infrastructure to accommodate the existing drainage patterns and project constraints.

Deliverables:
• One (1) Draft Stormwater Control Plan submitted with the 90% Draft Construction Documents Package
• One (1) Final Stormwater Control Plan submitted with the 100% Draft Construction Documents Package
Subtask C.02: 90% Draft Construction Documents
RRM’s team will prepare 90% Construction Documents that address plan check comments generated from the City’s review of the 30% Final Schematic Plan submittal and comments received during the Coastal Development Permit process. Prior to submitting to the City, comments generated from RRM’s QA/QC review team will be incorporated into the 90% construction document package. The 90% Construction Documents will be submitted to the City’s Project Manager for distribution and plan-check.

Deliverables:
• One (1) PDF file 90% Draft Construction Document package • One (1) construction cost opinion
• 30% response to comments memo

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

Subtask C.03: 100% Draft Construction Documents
RRM’s team will prepare 100% Construction Documents that address plan check comments generated from the City’s review of the 90% Construction Document submittal. The 100% Construction Documents will be submitted to the City’s Project Manager for distribution and backcheck.

Deliverables:
• One (1) PDF file 100% Construction Document package
• 90% response to comments memo
Subtask C.04: Bid-Ready Construction Documents
RRM’s team will prepare the Bid-Ready Construction Documents to address any backcheck comments generated from the City’s review of the 100% Construction Document submittal. Once the final revisions are complete, one (1) signed reproducible Bid-Ready set of Construction Documents will be submitted to the City’s Project Manager for final City/agency signatures and bidding.

Deliverables:
• One (1) signed reproducible Bid-Ready Construction Document package Subtask C.05: Bidding Support
RRM will assist the City during the bidding phase of the project. RRM will attend one (1) pre-bid conference job walk, respond to Requests for Clarifications (RFC) as determined by the City to be reasonable or necessary for the bidding process. Bidder questions will be received and sorted by the City, with applicable questions forwarded in writing to RRM’s team for response back to the City in writing.

Deliverables:
• Prepare for and attend one (1) pre-bid conference job walk • Plan clarification response documents
Task D: Construction Support Services
Subtask D.02: Construction Support
RRM’s team will support the City during the anticipated 90-calendar day (3-month) construction period construction process. RRM will attend one pre-construction conference and review and respond to Requests for Information (RFI), Change Orders (CO), submittals, and contractor-supplied shop drawings and rough grading survey. Under this task, RRM will also prepare and issue Supplemental Instructions as necessary to clarify technical details and prepare preliminary and final punch lists. RRM will also coordinate with City staff as necessary.

Deliverables:
• Prepare for and attend one (1) pre-construction conference

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

• RFI, CO, submittal reviews, shop drawings responses, supplemental instructions, and general record-keeping documents
Subtask D.03: Construction Observation
RRM’s Project Manager will prepare for and attend up to four (4) field observation meetings throughout the anticipated 90-calendar day (3 month) construction period to observe construction progress.

These site visits and observations are not intended to be an exhaustive check or a detailed inspection of the Contractor’s work, but rather are to allow RRM to become generally familiar with the work in progress and to determine, in general, if the work is proceeding in accordance with the contract documents. RRM’s design team shall not supervise, direct, or have control over the Contractor’s work, nor have any responsibility for the construction means, methods, techniques, sequences, or procedures selected by the Contractor, nor for the Contractor’s safety precautions or programs in connection with the work. These rights and responsibilities are solely those of the Contractor in accordance with the contract documents.

Furthermore, the Contractor shall be responsible for notifying RRM in a timely manner to schedule these field observation meetings. RRM’s team shall not be responsible for any acts or omissions of the Contractor, Subcontractor, any entity performing any portion of the work, or any agents or employees of any of them.

RRM does not guarantee the performance of the contractor and shall not be responsible for the Contractor’s failure to perform work in accordance with the contract documents or any applicable laws, codes, rules, or regulations. Due to the indeterminate nature of the construction observation requests, this task includes budget for meeting quantity stated above. If more construction observation requests are received, they are to be authorized by the City as additional work.

Deliverables:
• Prepare for and attend quantity of construction observation meetings listed above • Field notes and photo documentation
Subtask D.04: Record Drawings
Upon completion of construction work, RRM will compile and deliver to the City a reproducible set of record drawings based upon the marked-up record drawings, addenda, change orders, and other data furnished by the Contractor. These record drawings will show significant changes made during construction. Because these record drawings are based on unverified information provided by the other parties, which RRM shall assume will be reliable, RRM cannot and does not warrant their accuracy.

Deliverables:
• One (1) reproducible set of record drawings
Task E: Project Coordination Services
Subtask E.01: Project Coordination and Management
RRM’s project manager will coordinate with City and design staff, utility companies, resource agencies, subconsultants, and other agencies as necessary on an on-going basis throughout the project’s lifecycle. This task also includes project schedule creation and maintenance as tasks are completed, document review,

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

and day-to-day project coordination efforts including general correspondence and telephone conferencing as required to support City staff during the Project’s development.

Deliverables:
• Memos, meeting minutes, project schedule maintenance and general correspondence for document control, compiled in electronic file form
• Project schedule creation and maintenance
Subtask E.02: Project Development Team (PDT)/ External Stakeholder Meetings RRM’s project manager, and appropriate team member(s) as the subject matter dictates, will prepare for and attend up to five (5) virtual PDT meetings with the Client team, and one (1) virtual external stakeholder meeting through the Construction Document development phases. These meetings will provide an opportunity to collectively review, discuss, and clarify any design issues so that work may proceed in an efficient manner, and to plan the community meetings.

Deliverables:
• Prepare for and facilitate up to five (5) virtual PDT meetings • Prepare for and facilitate up to one (1) external stakeholder meeting • Prepare and distribute meeting notes
Subtask E.03: QA/QC Review
At the 90%, and 100% construction document milestones, RRM will conduct an internal QA/QC review.

RRM assigns an in-house QA/QC manager who is not a part of the design team. Using RRM’s QA/QC checklist, a QA/QC team that is not part of the design team will review the project to ensure disciplines are fully coordinated, key information is included, references point to the correct location, and specifications tied into the drawings. This review, and corrective measures, will occur prior to each package (90% & 100%) being submitted to the City.

Deliverables:
• QA/QC review comments incorporated into the 90% Draft Construction Document package • QA/QC review comments incorporated into the 100% Draft Construction Document package Task F: Optional Services
Subtask F.01: Visual Simulations
RRM will provide a visual simulation of Coleman Park illustrating a graphical representation of the project pre-construction and post-construction from three (3) separate vantage points determined by the City/RRM team. Tentatively, the vantage points are from Coleman Drive looking northeast, from Embarcadero looking south toward the bay, and from Embarcadero looking west toward Morro Rock.

Photographs of the existing conditions of the site at each vantage point will be merged with a 3-dimensional computer model created from the AutoCAD design file developed by the project team. Once merged with

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

the model, the photographs of the pre-construction conditions will be rendered to create photorealistic views of the proposed restroom, parking, and playground. The modeled elements will be illustrated with photorealistic textures based upon typical construction materials.

Deliverables:
• One (1) draft and one (1) final submittal of three (3) visual simulations Subtask F.02: Coastal Development Permit Processing
The project is located within the Coastal Zone, which requires a Coastal Development Permit (CDP). RRM’s team will assist the City in obtaining a CDP for the project which includes the following services:
• Coastal Development Permit Application Package
Following approval of the Final Schematic Plan, RRM will prepare the CDP application and provide required data, supporting documents and drawings as applicable for the Project. The completed application package will be submitted to the City’s Project Manager for distribution to Coastal Commission staff.
• Coastal Commission Meeting for CDP Approval
RRM will attend the Coastal Commission meeting to answer any technical questions raised by Commissioners. This scope assumes Coastal Commission staff will prepare the staff report and present the project to the Commission, and RRM will present supplemental project information as requested by Coastal Commission staff.

Deliverables:
• Prepare the Coastal Development Permit application package • Attend one (1) Coastal Commission meeting for CDP approval.

IV. Assumptions
• This project is a deferred maintenance project and does not require a CUP • One (1) application package will be submitted for the CDP • The City is responsible to pre-procure the prefabricated restroom structure to ensure installation within the construction window.
• The new restroom will be a prefabricated structure with customized cladding and architectural details. • Existing electrical infrastructure is adequately sized to accommodate the revised design loads. No changes to the existing electrical system (panels, transformers, main distribution) are required. • Existing water pressure is adequate.
• EV charging station design is not required.

V. Client Responsibilities
• City will provide access to all areas for the site assessment visit. This includes access to mechanical and electrical equipment.

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

• One contact person who will serve as the City’s representative and will consolidate all Agency review comments for each submittal milestone into one (1) list of official comments to which RRM can respond • Meeting location and facilities
• City staff will prepare and file the Notice of Exemption under CEQA. • Bid and contract “boilerplate” documents, such as invitations, instructions, general and special conditions, contract forms, insurance forms, etc.
• Document distribution for technical reviews, bidding, and construction • City will provide title reports for the park property to create a record boundary map • The new restroom will be a prefabricated structure with customized cladding and architectural details.

VI. Limitations of Scope and Exclusions
Please note that the tasks to be performed by the RRM team are limited to those outlined above. This scope of services excludes the following:
• Conditional Use Permit Processing
• Independent verification of accuracy of City-provided information • LEED documentation and design
• CEQA compliance services (IS, NOE, ND,MND, or EIR)
• NEPA compliance services
• Cultural Resource Assessment
• Biological Resource Assessment
• Arborist Report
• Electric Vehicle charging stations
• Site and Pathway Lighting
• Structural design services
• Off-site utility analysis
• Caltrans technical studies
• Payment of fees (e.g., permit, processing, noticing, etc.) • SWPPP preparation (Prepared by contractor)
• CUP permit application amendment(s)
• CDP permit application amendment(s)
• Geotechnical Engineering
• Planting and irrigation design
• Design of specialized foundation/structural systems other than conventional slab on grade and spread footings
• Easement/dedication/annexation exhibits
Any additional services that RRM Design Group is asked to perform over and above the tasks described above will be subject to a subsequent contract amendment.

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

VII. CONSTRUCTION DOCUMENT PACKAGE CONTENTS
Title and Reference Sheets
RRM’s team will prepare title sheets, as necessary, to convey pertinent general project information.

These sheets may include the project name, location, approval blocks, agency contact information, USA alert, basis of survey statement, list of abbreviations, and bid alternate instructions.

Demolition Plans
RRM’s team will prepare demolition plans, at an appropriate scale, for structures and elements requiring removal to implement the park’s design. The plans will locate, identify, and describe the removal items and provide instructions for the safe disposal of the demolished work. Additionally, the plans will indicate items to salvage or stockpile such as topsoil for later use in the planting area construction.

Erosion Control Plan
RRM’s team will prepare Erosion Control Plans for the site depicting proposed construction BMP in conformance with the State Construction General Permit. The plans will include plan views with locations of proposed BMP, and details of the BMP.

Construction Keynote Plans
RRM’s team will prepare construction keynote plans, at an appropriate scale, for the approved design.

The plans will present the overall park design layout with a keynoting system that identifies construction items, references to appropriate details, and drawing series directions.

Site Construction Details
As a companion to the construction plans, we will prepare details for the construction items illustrated on the site construction plans. The details will specify materials, dimensions, colors, and finishes.

Horizontal Control Plans
RRM will prepare horizontal control plans, at an appropriate scale, for the approved design. The plans will establish all horizontal control for the Project. The plans will also establish construction layout control points and establish a coordinate system for locating all site elements.

Grading and Drainage Plans
RRM’s team will prepare grading and drainage plans, at an appropriate scale, for the approved design based on the topographic survey. The plans will build on the boundary and topographic information and will show all vertical control of the project elements, contour grading, spot elevations, and cut and fill estimates within the project site. The plans will detail drainage facilities within the park development area with supporting calculations performed for the sizing of new on-site pipes and inlets as outlined in the above task.

Site Utilities
RRM will prepare plan construction documents for domestic water service, fire water and sanitary sewer, storm drains (e.g., “wet” utilities) contained within the property, and connection to the main infrastructure as applicable. Water, sewer, and storm drain plans will include vertical and horizontal

Coleman Park Design and Engineering Services
Exhibit “A” Scope of Services

design information. RRM assumes adequate service and capacity for the wet utilities. Electrical and gas are not included in this plan sheet (see site electrical below).

Pre-Fabricated Restroom Plans and Details
RRM will include manufacturer’s generic floor plans, elevations and details available for bidding and permitting purposes. These drawings will provide general material selection, colors, roof type and include a general footprint layout.

Once the vendor has entered a contract with the City/Contractor for purchase, RRM will coordinate fully detailed plan, elevation and detailed plans for inclusion in the overall construction document package.

Depending on timing for this event, these detailed plans may become available only during construction as part of a contractor’s deferred submittal.

Site Electrical Plans and Details
RRM’s subconsultant, P2S, will prepare site electrical plans using documented electrical equipment and services, develop electrical distribution system and prepare electrical single-line diagrams. The plans will include electrical connections to the restroom building.

Electric and gas utility trench locations will be shown schematically based on coordination with a specialty sub-consultant and/or utility service provider. The plans shall be subject to final utility company handout drawings (prepared by others as deferred submittals). We assume adequate service for this project is available directly adjacent to the project frontage.

Specifications
RRM’s team will prepare technical specifications in Greenbook format. This scope assumes RRM will prepare the special provision section, and the City will prepare all other sections related to this project and assemble the specifications book.

Construction Cost Opinions
RRM’s construction cost estimator will estimate construction costs at the 30%, 90% and 100% submittal levels. The detailed Construction Cost Opinion will be itemized with supporting item descriptions and unit costs. Due to many variables surrounding bidding and construction conditions, this opinion will not represent a guarantee that bids received, or actual costs of construction will be equal to the opinion.

Preliminary cost opinion at the 30% level will be commensurate with a Class 3 estimate as defined by the Association for the Advancement of Cost Engineering (AACE). The estimate will itemize the anticipated costs for each project feature in order to facilitate phasing decisions. This information will be used to identify a recommended list of improvements that can be delivered within the current allocated budget.

The 90% and 100% level cost estimate will be commensurate with a Class 2 estimate as defined by Association for the Advancement of Cost Engineering (AACE)

01181.0001/813182.1 B-1

EXHIBIT B

SPECIAL REQUIREMENTS
(Superseding Agreement Boilerplate)
Not Applicable

01181.0001/813182.1 C-1

EXHIBIT C

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

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

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

Coleman Park
Design and Engineering
Services
Exhibit “C” Compensation
Basic Services
Task A: Pre-Design Services
Subtask A.01 Kickoff Meeting/Site Walk T&M/NTE: $ 1,240 Subtask A.02 Topographic Survey/Base Mapping T&M/NTE: $ 4,100 Task B: Preliminary Design Services (30% Plans)
Subtask B.01 Draft Schematic Plan T&M/NTE: $ 8,100
Subtask B.02 RPC Meeting – Draft Schematic Plan Review T&M/NTE: $ 1,425 Subtask B.03 Final Schematic Plan T&M/NTE: $ 16,800
Task C: Final Design Services (PS&E)
Subtask C.01 Stormwater Control Plan T&M/NTE: $ 4,320
Subtask C.02 90% Draft Construction Documents T&M/NTE: $ 35,100 Subtask C.03 100% Draft Construction Documents T&M/NTE: $ 19,750 Subtask C.04 Bid-Ready Construction Documents T&M/NTE: $ 11,800 Subtask C.05 Bidding Support T&M/NTE: $ 4,620
Task D: Construction Support Services
Subtask D.02 Construction Support T&M/NTE: $ 13,100
Subtask D.03 Construction Observation T&M/NTE: $ 3,600
Subtask D.03 Record Drawings T&M/NTE: $ 1,300
Task E: Project Coordination Services
Subtask E.01 Visual Simulations T&M/NTE: $ 22,600
Subtask E.02 Coastal Development Permit T&M/NTE: $ 5,360 Subtask E.03 QA/QC Review T&M/NTE: $ 3,050
Reimbursable Expenses T&M/NTE $ 500
Total Basic Services $ 156,765

Coleman Park Design and Engineering Services
Exhibit “C” Compensation

Optional Services
Task F: Optional Services
Subtask F.01 Visual Simulations T&M/NTE: $ 6,100
Subtask F.02 Coastal Development Permit T&M/NTE: $ 19,500 Total Optional Services $ 25,600
Total Project Budget $ 182,365
Notes:

1. Estimated fees for tasks shown as “Time and Materials - Not to Exceed" (T&M/NTE) establish the maximum billed for each task. Amounts billed will reflect actual hours and will not exceed the maximum amount shown without prior approval by the Client.

2. Reimbursable expenses will be billed as “Time and Materials - Not to Exceed" (T&M/NTE) and include such things as document reproduction, plotting services, public workshop materials, company car mileage (current federal rate), rental car, and overnight delivery. Reimbursable expenses will be billed at cost plus a 10% markup.

3. RRM may adjust any individual line amount within the total amount shown, with written approval of the City.

4. RRM reserves the right to adjust hourly rates on an annual basis.

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.

ID Task Name Duration Start
1 COLEMAN PARK SCHEDULE 191 days Mon 9/1/25
2 3 Pre-Design 26 days Mon 9/1/25
4 Notice to Proceed Issued 0 days Mon 9/1/25
5 Kickoff Meeting/Site Walk 1 day Mon 9/1/256 Project Data Collection/Review 5 days Tue 9/2/25 7 Topographic Survey/Base Mapping 10 days Tue 9/2/258 Cultural Resource Assessment 25 days Tue 9/2/259 Biological Resource Assessment 25 days Tue 9/2/25 10 11 Preliminary Design (30% Plans) 84 days Tue 9/16/25 12 Prepare Draft Schematic Plan 9 days Tue 9/16/25
13 Present Draft Schematic Plan to RPC (Special Mtg) 0 days Thu 10/2/2514 Prepare Final Schematic Plan 15 days Fri 10/3/25 15 Prepare Visual Simulations 5 days Fri 10/17/25
16 Prepare Schematic Cost Estimate (Class 3) 5 days Fri 10/24/2517 Facilitate On-Screen Final Schematic Review Session 0 days Tue 11/4/2518 Process Coastal Development Permit 56 days Fri 10/24/2519 20 Final Design (PS&E) 75 days Mon 9/29/25
21 Prepare 90% Draft Construction Documents 30 days Mon 9/29/25 22 Prepare Draft Stormwater Control Plan (SCP) 10 days Mon 10/27/25 23 Perform QA/QC Con Doc Review 3 days Wed 11/5/2524 Prepare 90% Cost Estimate (Class 2) 5 days Mon 11/10/2525 City Review of 90% Construction Documents, Specs, Cost Estimate, & SCP 5 days Mon 11/17/2526 Prepare 100% Draft Construction Documents 10 days Mon 11/24/2527 Prepare Final Stormwater Control Plan 5 days Mon 12/8/25 28 Perform QA/QC Con Doc Review 3 days Mon 12/15/25
29 City Review of 100% Construction Documents, Specs, Cost Estimate, & SCP 3 days Thu 12/18/25 30 Prepare Bid-Ready Construction Documents 13 days Tue 12/23/2531 Submit Bid Ready Construction Documents to City 0 days Fri 1/9/26 32 33 Bid and Construction 96 days Mon 1/12/26
34 Bid and Award (45 Calendar Days) 35 days Mon 1/12/26 35 City Council Bid Award 0 days Tue 3/3/26
36 Notice to Proceed Issued 0 days Fri 3/6/26
37 Construction 55 days Mon 3/9/26
38 Substantial Completion 0 days Mon 5/25/26
9/1 Notice to Proceed Issued
Kickoff Meeting/Site Walk
Project Data Collection/Review
Topographic Survey/Base Mapping
Cultural Resource AssessmentBiological Resource Assessment Prepare Draft Schematic Plan
10/2 Present Draft Schematic Plan to RPC (Special Mtg)
Prepare Final Schematic PlanPrepare Visual Simulations
Prepare Schematic Cost Estimate (Class 3)
11/4 Facilitate On-Screen Final Schematic Review Session Process Coastal Development Permit
Prepare 90% Draft Construction DocumentsPrepare Draft Stormwater Control Plan (SCP)Perform QA/QC Con Doc Review Prepare 90% Cost Estimate (Class 2)
City Review of 90% Construction Documents, Specs, Cost Estimate, & SCP Prepare 100% Draft Construction Documents
Prepare Final Stormwater Control Plan
Perform QA/QC Con Doc Review
City Review of 100% Construction Documents, Specs, Cost Estimate, & SCP Prepare Bid-Ready Construction Documents
1/9 Submit Bid Ready Construction Documents to City
Bid and Award (45 Calendar Days)
3/3 City Council Bid Award
3/6 Notice to Proceed Issued
Construction
Substantial Completion 5/25
17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 Sep '25 Oct '25 Nov '25 Dec '25 Jan '26 Feb '26 Mar '26 Apr '26 May '26 Jun '26 Design Team Activity Agency Activity Construction Milestone Summary

Project: Coleman ParkDate: Sun 8/17/25

Prepared By: ___CM Dept Review: __ _
City Manager Review: ___AL_____ City Attorney Review: __ BS____ Staff Report
TO: Honorable Mayor and City Council DATE: August 19, 2025 FROM: Chris Munson, Harbor Vitality Director
SUBJECT: Approve Letter to California Air Resources Board (CARB) Requesting Delayed Commercial Harbor Craft Regulations

RECOMMENDED ACTION
Approve letter to CARB requesting Delayed Commercial Harbor Craft Regulations

ALTERNATIVES
There are no recommended alternatives

FISCAL IMPACT
There are no direct fiscal impacts by approving the letter. However, if the current regulations are enforced it may result in losing some of the fishing and sightseeing charters in Morro Bay which would decrease tourism, tax, and rent revenue.

BACKGROUND
The California Air Resources Board (CARB) initially adopted the Commercial Harbor Craft (CHC) regulation in 2008 to address emissions from certain types of harbor craft, including ferries, excursion vessels, tugboats, and others. In 2022, amendments significantly broadened the scope of the CHC regulation, applying it to a wider range of commercial vessels, including workboats, pilot vessels, research vessels, sportfishing and commercial fishing vessels, and larger barges.

The goal of this regulation was to phase out older marine engines and replace them with Tier 4 engines which are cleaner. To do this, the vessels need to be repowered or replaced. Repowering a vessel is expensive and intrusive. A repower of a Commercial Passenger Fishing Vessel (CPFV) like the ones in Morro Bay can cost around $300,000. The vessel usually needs to be drydocked, and portions of the deck removed. A new vessel with compliant engines costs around $2 million. CPFVs were to be compliant by the end of 2023 or 2024 depending on their engine model year. Excursion vessels such as whale watching or sightseeing charters need to be in compliant by the end of 2026.

Regular commercial fishing vessels were originally included in these timeframes but have been pushed back until 2030 and are for Tier 3 engines rather than Tier 4.

The Air Pollution Control District (APCD) had limited grant funding available for repowering these types of vessels. Typically, they covered about 50% of the repower costs. However, since these vessels are now noncompliant, they are no longer eligible for the grants. Other grants to repower these types of boats are not readily available.

AGENDA NO: 8.b
MEETING DATE: August 26, 2025

Vessels that are noncompliant face two different penalties, one is up to $10,000 per day, and the other is a per passenger fine to offset the price increase that vessels in compliance needed to increase to cover the cost of repowering or new vessels (about $40 per passenger).

If the regulations are enforced and fines are imposed, they have the potential to put many of the boats charters out of business in Morro Bay and statewide. In Morro Bay, staff estimates about 4-5 medium sized charter vessels (~30 passengers) could potentially be out of compliance, and an unknown amount of 6-pack vessels. The jobs associated with these businesses will be lost as well. The businesses are unlikely to return once lost; most owners will likely sell their vessels out of state where the regulations don’t apply. The proceeds from the sale would not go far in being able to purchase a vessel that complies.

In addition to the significant cost of bringing these vessels into compliance, some of the other reasons that charter vessel owners did not repower their vessels include:
 The APCD grants only covered about half of the repower cost and were not widely available.

SLO APCD did have some funding available, but only enough to repower 1-2 vessels per grant cycle, if at all. In larger ports, other funding sources were made available which would cover up to 100% of charter repowers.
 The rollout on the regulation’s adoption and enforcement dates had a quick turnaround. The amendments with included CPFVs were only finalized in 2022 and required compliance by the end of 2023 or 2024. There are very few shops that can perform marine repowers, which drove up costs and had limited capacity for the demand.  Tier 4 marine engines are relatively new, have limited availability, and can have issues. When Port San Luis conducted a repower on its mooring tender, the only available Tier 4 engines for it were made by Volvo, but there was not any service shops that could maintain them in the area, so it was infeasible. Some of the engines are too large to fit into existing boats, and others run too hot. Many have complained about ongoing maintenance issues with early versions of Tier 4 engines.
 Education and notification of the new requirements has been inadequate. Many owners were either uniformed or misinformed of the deadlines and penalties. Some owners were expecting that CARB or the Presidential Administration would roll back the requirements prior to their enforcement.
 Many owners are still recovering from COVID-19 financial losses and continue to struggle due to closures of salmon, Dungeness crab, and rockfish.

DISCUSSION
CARB’s enforcement group received a complaint that some of the CPFVs in Morro Bay were not in compliance with the CHC regulation. They have contacted at least one sportfishing business and are looking into information for all the charter businesses and vessels in Morro Bay.

Concerned businesses and the master leaseholder subsequently raised the issue with the Harbor Director. The Harbor Director followed up with a meeting with the CARB enforcement group. While the meeting was productive, no viable tools were identified to help bring businesses into compliance.

Noncompliant vessels were ineligible for all the grants mentioned, and any provisions that would allow for extensions had expired. While the CARB enforcement group did say that they would “work with” vessel owners who came forward voluntarily and not pursue the full penalties, it was unclear what enforcement would still be imposed and if there was a feasible pathway towards compliance for existing businesses.

In response, the Harbor Director has drafted the attached letter, appealing to CARB for an extension of the CHC regulations for Small Commercial Charter Vessels. The request aims to give more time for these small businesses to get into compliance with CHC, it is not intended to avoid compliance.

An extension would:
 Enable new grants to become available
 Allow the market and engine technology to catch up
 Help repower shops manage demand more effectively
 And give struggling businesses a chance to recover.

The request is for an extension until December 31, 2034, for all small passenger vessels (under 100 gross tons as defined by the US Coast Guard) for Commercial Passenger Fishing Vessels (CPFVs) and sightseeing charters. Larger charter vessels are excluded from this request since it is believed they were original focus of the regulation amendment since they are greater contributors to air pollution and have higher revenues to offset the cost of repowering.

Supervisor Dawn Ortiz-Legg was recently appointed to CARB by Governor Gavin Newsom. If the Council approves the letter, City staff intend to seek the Supervisor’s recommendations and hopefully support for the letter.

CONCLUSION
Staff recommends the City Council review and approve the letter.

ATTACHMENTS

1. Letter – CHC-Extension Request for Small Commercial Charter Vessels

2. 2022 CHC Factsheet: Commercial Passenger Fishing Vessels

3. 2021 CHC Factsheet: Commercial Passenger Fishing Vessels

August 27, 2025
California Air Resources Board
1001 I Street
Sacramento, CA 95814
Subject: CHC-Extension Request for Small Commercial Charter Vessels Dear California Air Resources Board,
Morro Bay is a small fishing village that relies heavily on a modest but vital fleet of commercial and recreational vessels. Like other small harbors, this fleet includes a handful of smaller Commercial Passenger Fishing Vessels (CPFVs) and sightseeing charters that fall under recent CARB regulations. Operations out of large ports often have larger boats, increased patronage, and other options for financial assistance which make it easier to afford repowering. Small harbors like ours and the small operators that use them do not have the same resources to adapt quickly to sweeping regulatory changes. As such, regulations that may be manageable for larger operations pose a far greater existential threat to the businesses and livelihoods in small coastal communities like ours.

Now that the Commercial Harbor Craft (CHC) Regulation (CCR Title 17, section 93118.5) is in effect and being actively enforced, it is already having a significant and potentially devastating impact on small operators. These regulations threaten to force hundreds of small businesses to close and put thousands of people out of work statewide; many of whom are part of generational fishing and maritime families. The CPFVs and sightseeing vessels most affected typically carry fewer than 50 passengers and simply do not have the financial capacity to complete the required repowers costing up to $300,000 or replace vessels entirely, which can cost around $2 million.

Before the regulations went into effect, grant funding to prepare for compliance was limited and often only covered a portion of the repower. Now that the rules are in effect, there are no viable grants available to assist vessel owners.

These financial barriers are compounded by an unprecedented series of hardships in recent years, including:
 The COVID-19 pandemic disrupted tourism, operations, and repower businesses  Salmon fishery closures for the last 3 years
 Dungeness Crab seasons which have been restricted or nonproductive  New restrictions on groundfish which have essentially cut the season in half.

Many of these operators are just barely hanging on. Once they are gone, they will not be back.

Even if these businesses had the money to repower, the technology and availability isn’t where it needs to be yet. Traditional engines cannot be used in vessels, they are specialized. Engine manufacturers don’t stock hundreds of Tier 4 marine engines like they can do with vehicle engines.

When we were able to do a grant funded repower at my last job a few years ago, the only Tier 4 engines available were made by Volvo, and the nearest location that could work on Volvo marine engines is over 100 miles away. Marine repowers are complex and invasive, often requiring the vessel to be drydocked and parts of the deck removed. There are only a few shops that perform marine repowers, timelines and costs increase dramatically due to limited capacity and high demand.

We respectfully request an extension until December 31, 2034, for all small passenger vessels (under 100 gross tons as defined by the US Coast Guard) for Commercial Passenger Fishing Vessels (CPFVs) and sightseeing charters. This could also be achieved by issuing a blanket E3 Extension for Technology Feasibility and Financial Hardship if the deadline for that provision was extended and was to include all tiers of marine engines. Currently, it appears that E3 was only eligible for Tier 3 engines and expired July 1, 2024.

Our goal is not to avoid compliance but allow additional time for vessel owners to comply without losing their livelihoods. An extension would:
 Enable new grants to become available
 Allow the market and engine technology to catch up
 Help repower shops manage demand more effectively
 And give the struggling businesses a chance to recover.

If granted, this extension would also restore eligibility for vital programs like the Carl Moyer Program for Marine Vessels, which could significantly assist in compliance efforts. Currently, vessel owners are ineligible because their engines are already out of compliance, Unfortunately, other funding sources such as the VW Environmental Mitigation Trust will not fund these types of vessels, they are for ferries, tugboats, and towboats only. Any additional funding opportunities that support CPFVs and small charter operators would be greatly appreciated in achieving CARB’s long-term emission reduction without sacrificing entire local industries.

If you have any questions or wish to discuss this matter further, please contact me directly at 805- 801-6164 or [email protected].

Sincerely,
Chris Munson
Harbor Vitality Director

DATE
Email
Topics
December 23, 2022

CONTACT
Commercial Harbor Craft Regulation
[email protected] (mailto:[email protected])

CATEGORIES
Oceangoing Vessels & Harbor Craft (https://ww2.arb.ca.gov/our-work/topics/oceangoing-vessels-harbor-craft) CHC Factsheet: Commercial Passenger Fishing
Vessels (CPFV)
CARB is no longer accepting E3-CPFV (10-year)
extension applications. The deadline for
submittals was July 1, 2024.

Click here to access the PDF version of this factsheet. (//ww2.arb.ca.gov/sites/default/files/2022-12/FAB22-
065%20-
%20CHC%20CPFV%20Fact%20Sheet%20ADA.pdf)
Date: December 23, 2022
Specific details on the requirements for Commercial Passenger Fishing Vessels (CPFV) can be found in the regulation text Subsection (e)(12) In-Use Engines and Vessels (Excluding Commercial Fishing Vessels) – Requirements for Meeting Performance Standards (Applicable On and After January 1, 2023) (CCR Title 17, 8/19/25, 10:58 AM CHC Factsheet: Commercial Passenger Fishing Vessels (CPFV) https://ww2.arb.ca.gov/resources/fact-sheets/chc-factsheet-commercial-passenger-fishing-vessels-cpfv/printable/print 1/4

section 93118.5) (//ww2.arb.ca.gov/rulemaking/2021/chc2021). In the case of any discrepancy between this document and the regulation order, the regulation language applies.

Background
“Commercial Passenger Fishing” also called “Charter Fishing” or “Sportfishing” or “CPFV,” means any coastal or offshore vessel used for sport fishing, charter fishing, or any other type of fishing activity where individuals other than the owners or operators of the vessel are on board the vessel to perform fishing activities. CPFV include vessels operated on both day and overnight trips, which may traverse in and out of Regulated California Waters.
2022 Amendments
Starting in 2023, sportfishing vessels operating in Regulated California Waters (24 nautical miles from the coast) have compliance dates to meet the following in-use engine performance standards:

Use of Tier 4 engines, equipped with diesel particulate filters (DPF).

If engines are rated below 600 kilowatts (kW) and Tier 4 engines are not available, Tier 3 engines equipped with DPFs.

Compliance Dates
The compliance date for an engine is determined by the model year and tier of the engine that is/was installed on the in-use vessel as of December 31, 2022. These dates are listed in Table 16 and 18 in Subsection (e)(12) (//ww2.arb.ca.gov/rulemaking/2021/chc2021) and shown in Table 1.

Table 1: Compliance Dates for Engines on CPFV
Tier Engine Model Year Compliance Date
Pre-Tier 1 or Tier 1 1993 and earlier 12/31/2023
8/19/25, 10:58 AM CHC Factsheet: Commercial Passenger Fishing Vessels (CPFV) https://ww2.arb.ca.gov/resources/fact-sheets/chc-factsheet-commercial-passenger-fishing-vessels-cpfv/printable/print 2/4

Tier Engine Model Year Compliance Date
Pre-Tier 1 or Tier 1 1994 – 2001 12/31/2024
Pre-Tier 1 or Tier 1 2002 and later 12/31/2025
Tier 2, 3, or 4 2010 and earlier 12/31/2026
Tier 2, 3, or 4 2011 – 2012 12/31/2027
Tier 2, 3, or 4 2013 – 2014 12/31/2028
Tier 2, 3, or 4 2015 – 2017 12/31/2029
Tier 2, 3, or 4 2018 and later 12/31/2030
CPFV-related Compliance Extensions
There are five extensions available to CPFV operators outlined in subsection (e)(12) (E):

Extension E1: Shore Power and ZEAT Infrastructure Delays Extension E2: No Certified Engines or DPFs Available
Extension E3: Engines or DPF not Feasible and Owner Cannot Afford Vessel Replacement
Extension E4: Tier 4 Engines with Limited Operating Hours and DPFs not Feasible
Extension E5: Scheduling (manufacturer delays, installation difficulties, shipyard delays, or conflicting compliance dates within the fleet) Detailed below is extension E3, which has a dedicated provision for CPFVs. For more information on all available compliance date extensions, see the CHC Compliance Extensions Factsheet (//ww2.arb.ca.gov/resources/fact-sheets/chcfactsheet-compliance-extensions). 8/19/25, 10:58 AM CHC Factsheet: Commercial Passenger Fishing Vessels (CPFV) https://ww2.arb.ca.gov/resources/fact-sheets/chc-factsheet-commercial-passenger-fishing-vessels-cpfv/printable/print 3/4

Source URL: https://ww2.arb.ca.gov/resources/fact-sheets/chc-factsheet-commercialpassenger-fishing-vessels-cpfv Extension E3 for CPFV
Operators of CPFV meeting either Tier 3 or more stringent emissions standard by December 31, 2024 may be granted a one-time ten-year extension until December 31, 2034. Applications are due to CARB no later than July 1, 2024.

Owners or operators receiving a ten‑year extension are expected to collaborate on technical working group meetings overseen by CARB to assess emission reduction strategies for the CPFV fleet.

Other Requirements
CPFVs will also be subject to the requirements listed below:

Renewable diesel requirements beginning January 1, 2023. More information on this requirement can be found here (//ww2.arb.ca.gov/resources/factsheets/chc-factsheet-renewable-diesel-r100-or-r99).

Vessel labeling requirements beginning January 1, 2024. More information on this requirement can be found here (//ww2.arb.ca.gov/resources/factsheets/chc-factsheet-labeling-requirements).

Opacity testing requirements beginning March 31, 2024. More information on this requirement can be found here (//ww2.arb.ca.gov/resources/factsheets/chc-factsheet-opacity-testing).

A full list of important deadlines and requirements including reporting information can be found on the Implementation Timeline Fact Sheet
(//ww2.arb.ca.gov/resources/fact-sheets/chc-factsheet-implementation-timeline). 8/19/25, 10:58 AM CHC Factsheet: Commercial Passenger Fishing Vessels (CPFV) https://ww2.arb.ca.gov/resources/fact-sheets/chc-factsheet-commercial-passenger-fishing-vessels-cpfv/printable/print 4/4

DATE
Email
Topics
October 12, 2021

CONTACT
Commercial Harbor Craft Regulation
[email protected] (mailto:[email protected])

CATEGORIES
Oceangoing Vessels & Harbor Craft (https://ww2.arb.ca.gov/our-work/topics/oceangoing-vessels-harbor-craft) CHC Fact Sheet: Commercial Passenger Fishing
(Sportfishing) Vessel
Background
Commercial passenger fishing vessels, also known as charter fishing vessels or sportfishing vessels, take paying customers to catch fish. Sportfishing vessels are different than excursion vessels that offer other activities such as sightseeing, bridge tours, and whale watching trips.

Under the Current Regulation, sportfishing vessels are required to use CARB diesel and to report to CARB, but they are not required to upgrade to cleaner engines.

There are ~350 sportfishing vessels statewide, with ~880 engines, spread across different air basins.

As of 2019, the average age of a vessel was 45 years. More than a half of the engines in the vessels are higher-polluting pre-Tier 1 and Tier 1 engines, and about a quarter are Tier 2.

Sportfishing Vessel Population in the Year 2018
Vessel Location Vessel Population
8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 1/7

Statewide 352
South Coast 108
San Diego 92
San Francisco Bay Area 78
South Central Coast 41
North Central Coast 17
Lake Tahoe 11
North Coast 6
Sportfishing vessels that have voluntarily upgraded to cleaner engines, such as to Tier 2 standards, still emit 162 times more diesel particulate matter than a five ‑year ‑old diesel school bus.
8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 2/7

Sportfishing vessels are one of the largest emitting categories of commercial harbor crafts. They emit 11 percent of total commercial harbor craft PM2.5 emissions, and 10 percent of total commercial harbor craft oxides of nitrogen (NOx) emissions.

Under the Proposed Amendments, DPM emissions from sportfishing vessels would decrease by 94 percent, and NOx emissions would decrease by 46 percent by 2035.
8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 3/7

8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 4/7

Proposed Amendments
Under the Proposed Amendments, sportfishing vessels operating in Regulated California Waters (i.e. 24 nautical miles from the coast) would be subject to the following in-use performance standards:
use of Tier 4 engines equipped with diesel particulate filters (DPF). if engines are rated below 600 kilowatts (kW) and Tier 4 engines are not available, Tier 3 engines equipped with DPFs.

Compliance Exceptions and Extensions
Initial compliance dates, by which vessel owner/operators would need to upgrade engines or apply for extensions, are summarized below.

With full compliance extensions, compliance dates for sportfishing vessels would phase in between 2031 and 2034.

Vessels operating under low-hour use thresholds within 24 nautical miles of the coast do not have to repower or retrofit their vessels.

Engine Tier Pre-Tier 1 Tier 1 Tier 2 Tier 3
8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 5/7

Limits – All Other Areas 80 300 400 700
Limits – DACs[1] (#_ftn1) 40 150 200 350
If compliance requires vessel replacement, sportfishing vessels owners can receive up to eight years of compliance extensions or 2034, whichever is earlier, if they can demonstrate financial difficulty.

Cost Metrics
The average ticket price can vary significantly depending on the length of the trip. Ticket prices average about $147.50 for a day trip, and about $335.11 per day for a 6‑pack vessel and are projected to increase due to regulatory requirements.

Cost Metric Current
Average
Ticket Cost
Average
Ticket Cost
Increase
Projected
Ticket Cost
Percentage
Increase
Cost Per
Passenger/day,
1‑Day Trip
$147.50 $39.78 $187.28 27%
Cost Per
Passenger/day,
Multi-Day Trip
$190.99 $37.05 $228.04 19%
Cost Per
Passenger/day,
“6‑pack” Vessel[2]
(#_ftn2)
$335.11 $125.96 $461.07 38%
8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 6/7

Source URL: https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercialpassenger-fishing-sportfishing-vessel Note: This analysis assumes costs are completely passed through to paying customers.
[1] (#_ftnref1) Vessels with a homebase or regularly schedules stop two nautical miles from a disadvantaged community (DAC)
(https://oehha.ca.gov/calenviroscreen/sb535).
[2] (#_ftnref2) “6-packs” are vessels that can carry up to six passengers (in addition to two crew). Due to the smaller passenger capacity and market segment, the costs to individual passengers aboard these vessels were calculated separately. 8/19/25, 10:56 AM CHC Fact Sheet: Commercial Passenger Fishing (Sportfishing) Vessel https://ww2.arb.ca.gov/resources/fact-sheets/chc-fact-sheet-commercial-passenger-fishing-sportfishing-vessel/printable/print 7/7