Agenda packet, regular meeting — Morro Bay City Council, October 14, 2025 (part 1 of 2)

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, October 14, 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
None.

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.
•
The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
•
Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
•
Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting.
•
Your participation in City Council meetings is welcome and your courtesy will be appreciated.
•
The Council in turn agrees to abide by its best practices of civility and civil discourse according to Resolution No. 07-19.
•

6. CONSENT AGENDA

Page 2 of 173 ends

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 6.a through 6.g as submitted.

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

1. September 23, 2025 - Regular Council Meeting 6

2. September 23, 2025 - Special Closed Session Meeting 12

3. September 23, 2025 - Special Meeting 14

6.b Approval of Proclamations
(City Clerk)
Recommended Action
Approve as submitted.

1. Domestic Violence Awareness Month Proclamation 16

6.c Type 3 Fire Engine Vehicle Replacement 17
(Fire Department)
Recommended Action
Authorize the Fire Chief to sign a purchase agreement in the amount of $669,101.49 for a Pierce Type 3 Wildland Fire Engine to replace Engine 5371 through South Coast Fire Equipment using a Sourcewell Cooperative purchasing agreement.

6.d Adoption of Resolution No. 52-25 Authorizing the City of Morro Bay to Enter into a Fiscal Year (FY) 2025-26 Surrendered and Abandoned Vessel Exchange Grant Contract and Related Budget Amendment 22 (Harbor Department)
Recommended Action
Adopt Resolution No. 52-25 authorizing the Harbor Business Manager to execute and act as the City’s agent for the attached FY 2025-26 Surrendered and Abandoned Vessel Exchange Grant (SAVE)
Agreement #C25S0605 with the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) for $15,750.00 for funding to remove abandoned/surrendered vessels and hazards to navigation, and authorizing the related budget amendment.

6.e Adoption of Resolution No. 53-25 Authorizing the City of Morro Bay to Enter Into a Fiscal Year (FY) 2025-26 Boating Safety and Enforcement 68

Page 3 of 173 ends

Equipment Grant Contract and Related Budget Amendment
(Harbor Department)
Recommended Action
Adopt Resolution No. 53-25, authorizing the Harbor Business Manger to execute and act as the City’s agent for the attached FY 2025-26 Boating Safety and Enforcement Equipment Grant (BSEE) Agreement # C25L0604 with the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) in the amount of $32,689.96 to purchase two replacement transom assemblies and two outdrives, and authorizing the related budget amendment.

6.f Determination of Public Convenience or Necessity for ABC License - 640 Quintana Road, Morro Bay Cigarettes, Inc.
119
(Community Development Department)
Recommended Action
Do not make findings to support the Determination of Public Convenience or Necessity (PCN) that would allow the sales of alcohol with use of a Type 21 – General license for Morro Bay Cigarettes, Inc. at 640 Quintana Road.

6.g Letter of Interest from LOCSD regarding shared fire protection and emergency medical services
122
(Fire Department)
Recommended Action
Authorize City staff to prepare a response to the letter of interest exploring shared fire and EMS services.

7. PUBLIC HEARING ITEMS
None.

8. BUSINESS ITEMS

8.a Advisory Board Interviews and Citizens Oversight/Finance Advisory Committee Appointment
125
(City Clerk)
Recommended Action
Conduct interviews and make an appointment to fill an unscheduled vacancy on the Citizens Oversight/Finance Advisory Committee (“CFAC”) and extend the term end date to January 31, 2028.

8.b Adopt Resolution No. 54-25 revising the City of Morro Bay Community Grant Policy
135
(Interim City Manager/Finance Department)
Recommended Action

Page 4 of 173 ends

Adopt Resolution No. 54-25 amending the City of Morro Bay’s Community Grants Policy and provide direction on the preferred application review process for the current fiscal year and provide direction regarding priorities and approval procedures for the FY 2025- 26 Community Grant Awards.

8.c Short-Term Rental Ordinance Implementation - Quarterly Update 165 (Community Development Department)
Recommended Action
Receive and file a quarterly update on the Community Development Department’s progress in implementing the City’s Short-term Rental Ordinance and provide staff direction as necessary.

8.d Discussion and Request for Direction Regarding Potential to Establish Local Campaign Finance Contribution Limits
171
(City Attorney/City Clerk)
Recommended Action
Discuss and give direction to staff regarding the potential development and adoption of an Ordinance establishing local campaign finance contribution limits.

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

10. ADJOURNMENT
The next Regular Meeting will be held on October 28, 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.

Page 5 of 173 ends

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
September 23, 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
City Attorney Brian Stack
City Clerk Dana Swanson
Finance Director Emily Conrad
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 5:30 p.m. with all members present.

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report
The City Council reconvened in Open Session and City Attorney Stack announced the Council met in closed session to discuss two real property matters: the Morro Elementary site located at 1130/1330 Napa Ave. and the former wastewater treatment plant site located at 160/180 Atascadero Road and 1700 Embarcadero. No reportable action was taken under the Brown Act.

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

3.c City Manager Reports, Announcements and Presentations

Page 6 of 173 ends

2 3.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
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

5. PUBLIC COMMENT
 Pete Rogers, Executive Director of SLOCOG, invited the public to attend community workshops regarding Local Roads First and a potential future sales tax measure, and the Morro Bay Estuary Climate Resiliency Transportation Plan for South Bay Blvd. He also provided a status update on the environmental studies for the Highway 1/41 roundabout.  Joe Silano, Morro Bay, protested paid parking at Tidelands boat ramp parking lot.
 Betty Winholtz, Morro Bay, appreciated the recent crosswalk striping work, requested SLOCOG come to the October PWAB meeting, and
commented on paid parking at the Tidelands launch ramp.  Linda Winters, Morro Bay, appreciated the announcement about allowable mobile home rent increases and provided a Monday night dinner update.

End of public comment.

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.

Mayor Wixom opened public comment for the Consent Agenda.  Betty Winholtz, Morro Bay, spoke to investment report, asking how the Council intends to spend interest earnings.

End of public comment.

Mayor Wixom pulled Item 6.d, Council Member Luffee pulled Item 6.g., and Council Member Eckles pulled Item 6.h.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Approve Consent Agenda items except 6.d., 6.g, and 6.h as presented

Page 7 of 173 ends

3 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. September 9, 2025 - Regular Council Meeting
b. September 9, 2025 - Special Closed Session Meeting

6.b Proclamations
Approve as submitted.
a. Proclamation declaring September 21 - 27, 2025 as the 21st Annual Sea Otter Awareness Week

6.c Equipment donation from the Friends of the Morro Bay Fire Department
Accept the donated equipment from the Friends of the Morro Bay Fire Department and authorize the City Manager to execute the Donation Agreement.

6.d Adoption of Resolution No. 49-25 Reaffirming the City's Pledge to Follow Best Practices of Civility and Civil Discourse
Mayor Wixom read Resolution No. 49-25 into the record.

Motion by Mayor Wixom
Seconded by Council Member Landrum
Adopt Resolution No. 49-25 reaffirming the City's Civil Discourse Policy.

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

6.e Ordinance No. 672 amending Morro Bay Municipal Code Chapter 8.12 pertaining to Weeds, Rubbish, and Defensible Space
Adopt Ordinance No. 672, "An Ordinance of the City Council of the City of Morro Bay, California, Amending Title 8 (Health and Safety) of the Morro Bay Municipal Code to amend and rename Chapter 8.12 Weeds, Rubbish and Defensible Space."

6.f National Opioid Settlement Agreements with Purdue Pharma, the Sackler Family and Secondary Manufacturers

Page 8 of 173 ends

4 1. Approve Settlement Agreements and Participation Forms for the City’s participation in the National Opioid Settlement Agreements with Purdue Pharma, Sackler Family and opioid manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun and Zydus (“Secondary Manufacturers”)

2. Reaffirm approval of California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds relating to the National Opioid Settlement Agreements

3. Adopt Resolution No. 50-25 approving and authorizing the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlements with Purdue Pharma, the Sackler Family and Secondary Manufacturers, including signing necessary documents and transmittal thereof as necessary.

4. Approve disbursement of settlement funds to County (default option) while reserving option for direct distribution of further settlement funds to City in the future.

6.g Approve Crill's Saltwater Taffy Inc. Master Lease Agreement Staff responded to Council inquiries.

Motion by Council Member Luffee
Seconded by Council Member Landrum
Adopt Resolution No. 51-25 approving new lease agreement for Crill's Saltwater Taffy located at 1247 Embarcadero.

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

6.h Fourth Quarter Investment Report (period ending June 30, 2025) for Fiscal Year (FY) 2024-25
Council Member Eckles commented on the report.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Receive the attached Fourth Quarter Investment Report (period ending June 30, 2025) for FY 2024-25.

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

Page 9 of 173 ends

5 7. PUBLIC HEARING ITEMS

7.a Continued Public Hearing and Adoption of Resolution No. 47-25 Updating and Establishing Various User and Regulatory Fees Interim City Manager Lueker and Community Development Director Singewald presented the report and, along with Finance Director Conrad, responded to Council inquiries.

Mayor Wixom opened the public hearing and public comment for Item 7.a.  Betty Winholtz, Morro Bay, raised questions regarding CPI calculations and permit requirements for individual repairs.  Dina Lundquist, Morro Bay Chamber of Commerce CEO, offered comments on behalf of the business community.

End of public comment.

Mayor Wixom closed the public hearing.

Following individual comments, there was Council consensus and support for the proposed fees as presented by staff, with an effective date of January 1, 2026, with the following exceptions:
 Phase in of Planning and Building fee increases are subject to a 10% cap (up to 10%) plus CPI per year,
 Deposit amounts are not subject to a 10% cap,
 Business license fees are to remain at the current rate plus allowable CPI increase,
 In consideration of adopted City goals, temporarily reduce Sign Permit Fees to 50% of cost recovery for 12 months,
 Increase T-Pier Electrical Convenience Fee daily rate to $25,  Increase Triangle Lot Trailer/Boat Storage monthly rate to $145,  Increase Harbor Impound Fee to 100% cost recovery,
 Adopt fee text revisions as recommended by staff, and  Adjust vacation rental monitoring and appeal fees to 100% cost recovery
Staff confirmed the 10% cap on any increase is not inclusive of CPI (i.e., up to 10% increase plus CPI) and that the fee schedule, subject to 10% maximum increase plus CPI, would be reviewed again in April for Fiscal Year 2026-27.

Motion by Council Member Eckles
Seconded by Council Member Landrum

Page 10 of 173 ends

6 Continue the public hearing, receive the presentation of the user and regulatory fees, including Council member comments and staff responses, and adopt Resolution No. 47-25 updating and establishing various user and regulatory fees, as agreed upon by the Council majority.

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

8. BUSINESS ITEMS

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Mayor Wixom commented the City Council's joint meeting with CFAC would be an opportunity to look at the Business Tax Schedule and Council Member Edwards suggested CFAC also review the Revenue Policy before it comes to Council. The Mayor agreed the joint meeting would be an opportunity to have a discussion about what goals would be directed toward the CFAC's work plan.

10. ADJOURNMENT
The meeting adjourned at 7:34 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

Page 11 of 173 ends

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
September 23, 2025, 3:00 p.m.

City Hall Conference Room
595 Harbor Street, Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: Interim City Manager Andrea Lueker
City Attorney Brian Stack
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 3:00 p.m. with all members present.

2. SUMMARY OF CLOSED SESSION ITEMS

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

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: APNs 066-280-045 and 066-044-011, 1130/1330 Napa Ave., Morro Elementary
Property Negotiators: San Luis Coastal Unified School District Agency Negotiators: Airlin Singewald, Community Development Director; Emily Conrad, Finance Director; Andrea Lueker, Interim City Manager; Brian Stack, City Attorney
Negotiations: Price and Terms of Payment

Page 12 of 173 ends

2 4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: APN 066-331-032, -033, and -034; 160 and 180 Atascadero Road and 1700 Embarcadero
Property Negotiator: Cayucos Sanitary District
Agency Negotiators: Greg Kwolek, Public Works Director; Andrea Lueker, Interim City Manager; Brian Stack, City Attorney
Negotiations: Price and Terms of Payment

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session and City Attorney Stack announced the Council met in closed session to discuss two real property matters: the Morro Elementary site located at 1130/1330 Napa Ave. and the former wastewater treatment plant site located at 160/180 Atascadero Road and 1700 Embarcadero. No reportable action was taken under the Brown Act.

6. ADJOURNMENT
The meeting adjourned at 4:00 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

Page 13 of 173 ends

1 MINUTES - MORRO BAY CITY COUNCIL

SPECIAL MEETING OF CITY COUNCIL
September 23, 2025, 4:00 p.m.

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 4:10 p.m. with all members present.

2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
 Ron Reisner, Morro Bay, urged the Council to appoint John Solu to serve on the Planning Commission.
 Homer Alexander, Morro Bay, voiced his support for John Solu.  Joan Solu, Morro Bay, encouraged the Council to appoint John Solu to the Planning Commission.

End of public comment.

3. SPECIAL MEETING AGENDA ITEM(S)

3.a Advisory Body Interviews and Planning Commission Appointment Mayor Wixom announced Jennifer Madrid had withdrawn from consideration and Ricky Sacksteder was traveling out of the country and unable to attend interviews.

Jane Heath and John Solu were interviewed for consideration of appointment to the Planning Commission.

The Council voted by written ballot and Clerk Swanson read the results:

Jane Heath received one vote (Edwards); John Solu received four votes

Page 14 of 173 ends

2 (Eckles, Landrum, Luffee and Wixom) and was appointed to fill the remainder of a term ending January 31, 2027.

4. ADJOURNMENT
The meeting adjourned at 4:46 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

Page 15 of 173 ends

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
RECOGNIZING OCTOBER 2025 AS NATIONAL

DOMESTIC VIOLENCE AWARENESS MONTH

CITY COUNCIL
City of Morro Bay, California
WHEREAS, Domestic Violence Awareness Month calls attention to the fact sexual assault is widespread and impacts every person in Morro Bay; and WHEREAS, Lumina Alliance provide essential, lifesaving services for survivors, their children, and families throughout San Luis Obispo County including Morro Bay; and WHEREAS, domestic violence can result in physical injury, psychological trauma, and even death. The devastating consequences of domestic violence can cross generations and can last a lifetime; and
WHEREAS, there is a need to focus on the individualized needs of domestic violence survivors; and
WHEREAS, the marginalization of certain groups in society, including undocumented individuals, transgender individuals, and those living with disabilities, increases their vulnerability to domestic violence; and
WHEREAS, Lumina Alliance continues to provide a safe environment to those affected by domestic violence with a 24-hour crisis line, advocacy, therapy, transitional and emergency housing, and prevention education, with the help of dedicated volunteers and professionals; and WHEREAS, Lumina Alliance has seen a surge in crisis line calls by 33% this year, rising from 2,100 to over 2,800 calls. Housing placements also increased significantly, growing from 170 to 210 individuals served – a 24% increase. Notably, nearly half those housed were children, with 96 young people finding safe shelter through our programs; and WHEREAS, Lumina Alliance serves as “A Bright Light During Dark Times” for survivors of domestic violence, illuminating a path towards safety and healing; and WHEREAS, the City of Morro Bay strongly supports the efforts of Lumina Alliance, how every segment of our society can work together to address domestic violence, and how to help survivors connect with services.

NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council, in recognition of the important work done by domestic violence programs, does hereby proclaim the month of October to be National Domestic Violence Awareness Month.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 14th day of
October 2025
______________________________
CARLA WIXOM, Mayor
City of Morro Bay, California

Page 16 of 173 ends

Prepared By: _DM_________ Dept Review: ________
City Manager Review: AL_______ City Attorney Review: _BS_ Staff Report
TO: Honorable Mayor and City Council DATE: September 29, 2025 FROM: Daniel K. McCrain, Fire Chief
SUBJECT: Type 3 Fire Engine Vehicle Replacement

RECOMMENDED ACTION
Authorize the Fire Chief to sign a purchase agreement in the amount of $669,101.49 for a Pierce Type 3 Wildland Fire Engine to replace Engine 5371 through South Coast Fire Equipment using a Sourcewell Cooperative purchasing agreement.

ALTERNATIVES
Provide alternate direction.

FISCAL IMPACT
The total budget for this vehicle is $770,000. This includes an estimated purchase price of $669,101.49 for the vehicle and $100,000 to allow for minor changes to the final build design and purchase of the required ancillary equipment such as radios, tools, hose, etc. Approximately $350,000 of mutual aid reimbursement received in FY 2024-25 has been reserved for a down payment on this apparatus. Payment in full is due upon delivery of the vehicle approximately 18-36 months from the date of order. Mutual aid vehicle reimbursement received from the use of engine 5371 will be utilized to replace money encumbered from the City’s vehicle replacement fund for the purchase of this apparatus. This apparatus purchase will be a piggyback Sourcewell contract through a cooperative purchasing program.

BACKGROUND
The Fire Department currently operates a 2001 WestMark Type 3 Wildland Engine that we received as part of an apparatus exchange with the City of Atascadero in April of 2024. The City exchanged a 2009 Kenworth T370 Rescue for the WestMark Type 3 engine. During the discussion about the vehicle exchange, it was decided the vehicle replacement schedule would remain on a similar timeline due to the age and mileage of the vehicles. With manufacturing times currently 30 to 36 months from the date of order from the major apparatus manufacturers, we need to plan at least 3 years ahead to replace the fire engine. If we were to place an order for this engine this fiscal year we would anticipate receipt of the vehicle by July of 2028. We have been informed a limited number of chassis are available on a first-come, first served basis through Pierce Fire Apparatus in approximately 18 months and that we may be able to acquire one of these chassis for this apparatus build. If the supply chain changes and the limited number of available chassis are purchased by other AGENDA NO: 6.c
MEETING DATE: October 14, 2025

Page 17 of 173 ends

agencies before we finalize an agreement, the timeline will extend to 36 months as that is the current standard production time reported by the apparatus manufacturers. This Type 3 fire engine was heavily utilized during the summers of 2024 and 2025. Within hours of being put into service, the engine was staffed and assigned to cover for County Fire Station 30 in Templeton due to local fire activity. This engine also provided more than 500 hours of reimbursable mutual aid support statewide.

Although a Type 3 engine is designed for wildland use, it is routinely used as a first out apparatus when one of the Type 1 engines are out of service for maintenance, allowing for flexibility in our operations. This also ensures we have the ability to complete the required vehicle maintenance and remain fully staffed and operational. The new engine has been designed to optimize this interoperability with a larger pump, storage for a ground ladder, and the capacity to carry larger fire hose for connection to a hydrant for structure operations.

DISCUSSION
Fire apparatus typically have a 15-to-20-year lifespan depending on the type and use although this is often being extended to 25 years due to supply chain issues. Most agencies operate a fire engine 10 years frontline or daily service, and 10 years as a back-up engine to be put in service on a periodic basis. This is done to ensure reliability as breakdowns during an emergency response or fire situation can have life threatening consequences. Supply chain issues, as well as mergers among fire apparatus manufacturers, have created a substantial delay in acquiring fire engines and other specialty vehicles. These factors have caused significant inflation of pricing and resulted in long delays in receipt of a vehicle after the date of order.

For the 2024/25 fiscal year, the Fire Department was able to generate approximately $350,000 of mutual aid reimbursement from participation in fires statewide and those funds have been earmarked for the replacement of this vehicle. As of the date of this report, the Fire Department has also generated approximately an additional $140,000 in vehicle reimbursement that can be applied to this project from mutual aid responses during this summer. Each vehicle used on a mutual aid assignment receives either a daily or hourly rate to offset depreciation of the vehicles as it is used for this mission.

This vehicle reimbursement will assist in funding the purchase of a replacement apparatus. The Fire Department anticipates utilizing reimbursement generated by the use of engine 5371 on mutual aid assignments over the next 2 or 3 years to offset the purchase of the apparatus by repaying the city’s vehicle replacement fund as is intended by the mutual aid reimbursement program. I want to emphasize that mutual aid reimbursement is not revenue that the city can budget for other needs such as additional positions, it is reimbursement for services provided and depreciation of vehicles used on these assignments so that participation in mitigating these emergencies is not a financial burden on local agencies. We cannot guarantee responses to mutual aid assignments every summer as weather and multiple other factors determine the need. Ultimately, the City will need to provide the necessary funding to complete this purchase. Typically, cities have a vehicle replacement policy that budgets annually for the replacement of this fire equipment. Those that do not will pay out general fund or emergency reserve funds, others will finance and make payments if the city does not have adequate cash reserves. We are in a unique position as we do not have funding budgeted for capital replacement of fire apparatus but have been able to put aside nearly half of this purchase using reimbursement funds.

The frequency of devastating wildfires across the state and nation is increasing. The State Fire Marshal has recently released maps with an increased fire hazard severity zones identified statewide and here in Morro Bay. By having tools designed for responding to these changing fire conditions we are demonstrating a level of preparedness and improved response capabilities for both the public and potentially to insurance companies evaluating the risk to their customers. The type 3 engine provides equipment better designed to meet the needs of the wildfire environment while still being capable of performing day-to-day responses within the city if needed. The higher ground clearance

Page 18 of 173 ends

and four-wheel drive capabilities of the new engine will also provide another resource during flood events and other natural disasters that can limit travel of a traditional engine.

CONCLUSION
Fire apparatus are a form of capital equipment required to provide fire suppression service. These vehicles have an expected lifespan of approximately 20 years and must be replaced at an interval designed to ensure reliability. This engine is currently 24 years old and would be 26 years old when replaced if we are successful in receiving an engine in 18 months. Supply chain issues and other industry changes have resulted in extended build times for fire vehicles requiring departments to plan further ahead in anticipation of replacement needs. Most vendors are reporting 30- 36 months or more. The Morro Bay Fire Department has managed to earmark a down payment of approximately half the money required for this purchase. We are requesting that Council approves entering into a purchase agreement with South Coast Fire Equipment for purchase of a Pierce Wildland BX3 Fire Engine using a Sourcewell cooperative purchasing agreement to comply with competitive bid procedures.

ATTACHMENT(S)

1. South Coast Fire Equipment proposal

Page 19 of 173 ends

Extension
( 1 )
$ 613,417.00
Sales Tax @ 8.750% $ 53,673.99
$ 667,090.99
Performance Bond $ -
California Tire Fee $ 10.50
Consortium Fee Sourcewell Fee $ 2,000.00
$ 669,101.49
The above proposal price shall be valid until or extended in writing by South Coast Fire Equipment.

Said apparatus and equipment are to be built by the manfacturer and shipped in accordance with the specifications hereto attached, delays due to strikes, war or international conflict, failures to obtain chassis, materials, inability to obtain labor, supplies or manufacturing facilities, epidemics, acts of God, or causes beyond our control not preventing, delivery would be 0 months after receipt of this order and acceptance thereof at our office in Corona, California, and deliver to you at If the customer so desires to purchase the Product described in the Proposal and the attached specifications, prior to the expiration date listed above, the Customer shall sign and return this proposal. The Customer can then provide their choice of document for entering into the agreement by providing a Purchase Order, or signing a Contract with South Coast Fire Equipment, 3150 Palisades Dr. Corona, CA 82878 as the seller. 0 Total Purchase Price would be reduced to $669,101.49
The specifications herein contained shall form a part of the final contract and are subject to changes desired by the purchaser, provided such alterations are interlined prior to the acceptance by the company of the order to purchase, and provided such alterrations do not matterially affect the cost of the construction of the apparaus

APPARATUS COST WITH TAX
$ 10.50
Not Required
$ 667,090.99
$ 669,101.49
715 Harbor St
One
. The buyer must make the payment
within 15 days to obtain the full discount. Payments not received with in the 15 days are subject to an adjustment to the Total Purchase Price for the prepayment. $ 613,417.00
Pierce wildland BX3 on a Freightliner chassis
$ 53,673.99
$ -

TOTAL PURCHASE PRICE
$ 2,000.00
10/23/25
Payment Terms - Payment is due of the Total Purchase Price at time of delivery. Changes to the specifications since the time of order can added to the Total Purchase Price or invoiced on a separate invoice. The final sales tax amount will be determined at time of delivery based on the tax rate at that time. An increase or decrease in cost will be reflected on the final invoice.

If the customer would desire to pay for the apparatus within 15 days of the purchase order being accepted the

PROPOSAL FOR FURNISHING FIRE APPARATUS
for final acceptance by South Coast Fire Equipment, Inc., at its corporate office in Corona, California, Each
September 16, 2025
Morro Bay Fire Department
The undersigned is prepared to provide for you, our customer, upon an order being placed by you, the apparatus and equipment herein named and for the following prices:

Morro Bay, CA 93442

Page 20 of 173 ends

The proposal for fire apparatus conforms with all Federal Department of Transportation (DOT) rules and regulations in effect at the time of bid, and with all National Fire Protection Association (NFPA) guidelines for Automotive Fire Apparatus as published at time of bid, except as modified by customer specifications Any increased costs incurred by the first party because of future changes in or additoinas to said DOT or NFPA standards will be passed along to the customer as an addition to the price set forth above. Unless accepted within 30 days from the specified date, the right is reserved to withdraw this proposition.

Respectfully Submitted,
South Coast Fire Equipment, Inc.

Sales Representative Signature:____________________________________ Title:_______________ Date:____________________
Cancellation/Termination. In the event this Agreement is cancelled or terminated by a party before completion, South Coast Fire Equipment (SCFE) may charge a cancellation fee. The following charge schedule based on costs incurred may be applied: (a) 10% of the Purchase Price after order is accepted and entered by Manufacturer; (b) 20% of the Purchase Price after completion of approval drawings, and; (c) 30% of the Purchase Price upon any material requisition. The cancellation fee will increase accordingly as costs are incurred as the order progresses through engineering and into manufacturing. SCFE endeavors to mitigate any such costs through the sale of such Product to another purchaser; however Customer shall remain liable for the difference between the Purchase Price and, if applicable, the sale price obtained by SCFE upon sale of the Product to another purchaser, plus any costs incurred by SCFE to conduct any such sale.

Due to global supply chain constraints, any delivery date contained herein is a good faith estimate as of the date of this order/contract, and merely an approximation based on current information. Delivery updates will be made available, and a final firm delivery date will be provided as soon as possible.

Persistent Inflationary Environment: If the Producer Price Index of Components for Manufacturing (www.bls.gov Series ID: WPUID6112) ("PPI") has increased at a compounded annual growth rate of 5.0% or more between the month Pierce accepts the order (Order Month") and a month 14 months prior to the then predicted Ready For Pickup date ("Evalution Month"), then pricing may be updated in an amount equal to the increase in PPI over 5.0% for each year or fractional year between the Order Month and the Evaluation Month.

I, ___________________ authorized representative of
________________________ agrees to purchase the
proposed product(s) and agree to the terms and conditions of this proposal and the specifications hereto attached.

The Seller will document any such updated price for the customer's approval before proceeding and provide an option to cancel the order without charge if the updated price is not accepted.

Bryden Newell
Force Majeure - South Coast Fire Equipment shall not be responsible nor deemed to be in default on accountof delays in performance due to causes which are beyond the seller's and manufacturer's control and make the seller's performance impracticable, including but not limited to wars, insurrections, strikes, riots, fires, storms, floods, other acts of nature, explosions, earthquakes, accidents, any act of government, delays in transportation, inability to obtain necessary labor supplies or manufacturing facilities, allocation regulations or orders affecting materials, equipment, facilities or completed products, failure to obtain any required license or certificates, acts of God or the public enemy or terrorisim, failure of transportation, epidemics, quarantine restrictions, failure of vendors (due to causes similiar to those within the scope of the clause) to perform their contracts or labor troubles causing cessation, slowdow, or interruption of work.

Page 21 of 173 ends

Prepared By: ___LT_____ Dept Review: ___ CM___
City Manager Review: ____AL____ City Attorney Review: ___BS___ Staff Report
TO: Honorable Mayor and City Council DATE: September 30, 2025 FROM: Lori Thompson, Harbor Business Manager
SUBJECT: Adoption of Resolution No. 52-25 Authorizing the City of Morro Bay to Enter into a Fiscal Year (FY) 2025-26 Surrendered and Abandoned Vessel Exchange Grant Contract and Related Budget Amendment

RECOMMENDED ACTION
Adopt Resolution No. 52-25 authorizing the Harbor Business Manager to execute and act as the City’s agent for the attached FY 2025-26 Surrendered and Abandoned Vessel Exchange Grant (SAVE) Agreement #C25S0605 with the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) for $15,750.00 for funding to remove abandoned/surrendered vessels and hazards to navigation, and authorizing the related budget amendment.

ALTERNATIVES
The Council could not accept this grant, and direct staff accordingly.

FISCAL IMPACT
Approval of this $15,750.00 grant agreement will provide funding for demolition and removal of abandoned or surrendered vessels and hazards to navigation. The City is required to provide a 10% in-kind funding match, or $1,575.00, which will come from existing budgeted funds, primarily in the form of staff time and supplies. Staff is requesting approval of Resolution No. 52-25 to authorize the Harbor Business Manager act as the City’s agent for the grant award and to amend the City’s FY 2025-26 Adopted Operating and Capital Budget to reflect the receipt of grant funds and offsetting expenditures.

BACKGROUND
The Vessel Turn-In Program (VTIP) was established by DBW from enabling Legislation in 2009. It provides a funding mechanism for local agencies to identify vessels in danger of being abandoned (generally older vessels at or beyond their useful life and falling into dereliction) and accepting ownership of those vessels from willing owners for demolition, prior to them being abandoned and becoming a hazard to navigation or the environment.

The Abandoned Water Abatement Fund (AWAF) was established in 1997 and provides funds to public agencies to remove, store, and dispose of abandoned, wrecked, or derelict vessels or other submerged objects from navigable waterways which pose a hazard to navigation or the environment.

AGENDA NO: 6.d
MEETING DATE: October 14, 2025

Page 22 of 173 ends

Today, the two grants are combined to create a single grant, entitled “Surrendered and Abandoned Vessel Exchange” (SAVE), which will allow the City the ability to utilize the funds as deemed necessary for both AWAF and VTIP grant purposes. To date, together the Harbor Department has received and expended over $203,500.00 in ten separate grants.

The Harbor Department was most recently awarded a $38,000.00 SAVE grant from DBW in 2023 and utilized an additional $38,000.00 in unspent funds from the Sacramento Sheriff’s Department, for a total of $72,000 since 2023. Those funds have now been fully expended.

DISCUSSION:

As stewards of the harbor and ocean environment, these grants enable the Harbor Department to continue to accept surrendered vessels for demolition prior to them becoming abandoned and posing hazards to navigation or the environment.

In addition, the Harbor Department identifies vessels in danger of abandonment and prioritizes removal of them by working with willing owners, as well as identifying and prioritizing vessels in probable need of future abatement. Demolition projects are put out to bid as necessary, and as many vessels as possible within the scope of the grant agreement will be removed.

Currently, we have identified one vessel that may be deemed abandoned with a threat to pollute and two that may be turned in by owners for demolition, at an estimated cost of $11,0000.00, with additional vessels under review.

CONCLUSION
Staff recommend that the City Council adopt Resolution No. 52-25 accepting a $15,750.00 SAVE grant from DBW for demolition and removal of abandoned/surrendered vessels and hazards to navigation.

ATTACHMENTS

1. Resolution No. 52-25

2. SAVE Grant Agreement #C25S0605

Page 23 of 173 ends

RESOLUTION NO. 52-25

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY OF MORRO BAY TO ENTER
INTO A 2025/2026 SURRENDERED AND ABANDONED VESSEL EXCHANGE

GRANT CONTRACT WITH THE STATE OF CALIFORNIA DEPARTMENT OF PARKS

AND RECREATION, DIVISION OF BOATING AND WATERWAYS

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City of Morro Bay (City) applied for a Surrendered and Abandoned Vessel Exchange Grant (SAVE) from State of California Parks and Recreation, Division of Boating and Waterways (DBW) in the Amount of $15,750.000; and WHEREAS, DBW awarded the City of Morro Bay a SAVE grant in the amount of $15,750.00, which will allow the City the ability to utilize the funds as deemed necessary for removal of abandoned and surrendered vessels and hazards to navigation; and WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its day-to-day business activities; and WHEREAS, the City Council adopted the Fiscal Year (FY) 2025-26 Operating and Capital Budget on June 24, 2025, by Resolution No. 38-25; and WHEREAS, the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) has awarded the City a grant to remove abandoned and surrendered vessels and hazards to navigation; and
WHEREAS, City staff did not include this award or associated expenditures in the adopted budget; and
WHEREAS, the City Council deems it necessary to amend said budgets.

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

1. The City is hereby authorized to enter into SAVE Contract Agreement #C25S0605 in the amount of $15,750.00 for removal of
abandoned/surrendered vessels and hazards to navigation.

2. Harbor Business Manager Lori Thompson is hereby authorized to act as the City’s agent in regard to all aspects of the grant contract agreement, including but not limited to approval and execution of necessary and related documents on behalf of the City.

3. Authorizes a budget amendment to recognize $15,750 in grant revenue awarded and $15,750 in expenditures as outlined in Table 1.

Page 24 of 173 ends

Table 1. Budget Amendment Detail
Type Account Description Increase
(Decrease)
Revenue 331-6510-3371 State Grant Public
Service
$15,750
Expense 331-6510-4110 Regular Pay $15,750
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of October 2025 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Page 25 of 173 ends

State of California – Natural Resources Agency

DEPARTMENT OF PARKS AND RECREATION

DIVISION OF BOATING AND WATERWAYS

GRANT AGREEMENT - CERTIFICATE OF FUNDING
GRANTEE: City of Morro Bay Harbor Department
GRANT TITLE: SURRENDERED AND ABANDONED VESSEL EXCHANGE (SAVE-25) GRANT AMOUNT: $15,750.00
GRANT NUMBER: C25S0605
GRANT TERM: _______________ through September 30, 2027
The Grantee agrees to the terms and conditions of this agreement, hereinafter referred to as Agreement, and the State of California, acting through its Director of the Department of Parks and Recreation, and pursuant to the State of California agrees to fund the total State grant amount indicated below and in Exhibit F which is a part of the agreement consisting of: Exhibit A “Project Representatives”, Exhibit B “Grant Terms and Conditions”, Exhibit C “General Terms and Conditions”, Exhibit D “Grantee Certification Clauses”, Exhibit E “Darfur Contracting Act”, Exhibit F “Application/Scope of Work”.

Grantee: City of Morro Bay Harbor Department
Address: 1275 Embarcadero,
Morro Bay, CA 93422
Authorized Signature:

Printed Name:

Title of Authorized
Representative:

Date:

Agency: Department of Parks and Recreation
Division of Boating and Waterways
ATTN: Gina Disney
Address: 4940 Lang Ave., Dock H,
Administration, Floor 12
McClellan, CA 95652
Authorized Signature:

Printed Name: Keren Dill
Title: Staff Services Manager II
Date:

Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 1 of 42

Page 26 of 173 ends

CERTIFICATE OF FUNDING
(FOR STATE USE ONLY)
GRANTEE: City of Morro Bay Harbor Department
GRANT TITLE: FY 2025/26 Surrendered and Abandoned Vessel Exchange (SAVE) GRANT AMOUNT: $15,750.00
GRANT NUMBER: C25S0605
END DATE: September 30, 2027

AGREEMENT NO
C25S0605

AMENDMENT NO SUPPLIER ID
0000038374

PROJECT NO
3790OTHER
AMOUNT

ENCUMBERED BY

THIS DOCUMENT
$15,750.00

FUND DESCRIPTION
Surrendered and Abandoned Vessel Exchange (SAVE-25)

AGENCY BILLING CODE NO
053709

REPORTING

STRUCTURE
37900709
Approp. Ref. Fund
3790-101-0577

CHAPTER
04 STATUTE
2025

FISCAL YEAR
2025/26

BUSINESS UNIT
3790

PROGRAM
2855023

ACTIVITY CODE
69996

ACCOUNT
5432000

ALT ACCOUNT
5432000000
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 2 of 42

Page 27 of 173 ends

STATE OF CALIFORNIA
Department of Parks and Recreation, Division of Boating and Waterways P.O. Box 942896, Floor 12
Sacramento CA 94296
_________________________________________________________________________________

SURRENDERED AND ABANDONED VESSEL EXCHANGE (SAVE)
FISCAL YEAR 2025/26

EXHIBIT A - PROJECT REPRESENTATIVES
The services shall be performed in the jurisdiction of: City of Morro Bay Harbor Department State Agency:

Division of Boating and Waterways
Grantee (Agency Name):

City of Morro Bay Harbor Department
Name: Gina Disney Grantee Representative*: Lori Thompson Title: Grants Program Manager Title: Harbor Manager
Address:
4940 Lang Ave., Dock H, Administration, Floor 12
McClellan, CA 95652
Mailing Address:
1275 Embarcadero,
Morro Bay, CA 93422
Remit to Address:

Phone: (916) 902-8821 Phone: (805) 772-6254
Fax: Fax: (805) 772-6258
Email: [email protected] Email: [email protected] Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 3 of 42

Page 28 of 173 ends

INDEX

DESCRIPTION PAGE

EXHIBIT B GRANT TERMS AND CONDITIONS

1. PURPOSE OF THE PROGRAM 6

2. RIGHT OF INSPECTION 7

3. ANNUAL MEETING 7

4. TIMELINES 7

5. HAZARDOUS MATERIALS 7

6. TITLES AND LIENS 7

7. GRANTEE CITATIONS - ABANDONED VESSELS 7

8. MEDIA 7

9. MEDIA MATERIALS RELEASE 8

10. PERMITS AND DOCUMENTATION 8

11. SECURING OF BIDS 9

12. CONTRACTS WITH SERVICE PROVIDERS 9

13. SUBCONTRACTORS 9

14. TRAFFIC CONTROL AND TRAFFIC SAFETY 9

15. AIR OR WATER POLLUTION VIOLATION 9

16. ENTIRE AGREEMENT 9

17. APPROVAL OF AGREEMENT AND AMENDMENTS 9

18. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PARTICIPATION

REQUIREMENT
10 19. AUTHORITY TO CONTRACT 10

20. COMPLIANCE WITH LAW AND REGULATIONS 10

21. INDEPENDENT CONTRACTOR 10

22. INSURANCE REQUIREMENTS 10

23. TERMINATION 13

24. ASSIGNMENT 13

25. MATCHING 10% REQUIREMENT 13

26. BUDGET DETAIL AND PAYMENT PROVISIONS 14

27. BUDGET CONTINGENCY CLAUSE 16

28. INDEMNIFICATION 16

29. FUNDS ASSIST 17

30. 90-DAY RETURN OF GRANT DOCUMENTS TO DBW 18
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 4 of 42

Page 29 of 173 ends

31. ANTI-CORRUPTION 18

32. AQUATIC INVASIVE SPECIES 18
EXHIBIT C GENERAL TERMS AND CONDITIONS 19
EXHIBIT D GRANTEE CERTIFICATION CLAUSES 23
EXHIBIT E DARFUR CONTRACTING ACT 27
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 5 of 42

Page 30 of 173 ends

EXHIBIT B - GRANT TERMS AND CONDITIONS

SURRENDERED AND ABANDONED VESSEL EXCHANGE (SAVE) GRANT PROGRAM

1. PURPOSE OF THE PROGRAM:
a. Pursuant to its authority under Harbors and Navigation Code (HNC) section 525(1)(a), the Division of Boating and Waterways (DBW) wishes to contract with Grantee for the removal and disposal of:
(1) Abandoned property as described in HNC 522 (below) within Grantee’s jurisdiction as listed in Exhibit A.

HNC Section 522: “Any hulk, derelict, wreck, or parts of any ship, vessel, or other watercraft sunk, beached, or allowed to remain in an unseaworthy or dilapidated condition upon publicly owned submerged lands, salt marsh, or tidelands within the corporate limits of any municipal corporation or other public corporation or entity having jurisdiction or control over those lands, without its consent expressed by resolution of its legislative body, for a period longer than 30 days without a watchman or other person being maintained upon or near and in charge of the property, is abandoned property.”
(2) Surrendered vessels as defined in HNC 526.1
HNC Section 526.1: “surrendered vessel” means a recreational vessel that the verified titleholder has willingly surrendered to a willing public agency under both of the following conditions:
(a) The public agency has determined, in its sole discretion, that the vessel is in danger of being abandoned, and therefore has a likelihood of causing environmental degradation or becoming a hazard to navigation.
(b) The decision to accept a vessel is based solely on the potential of the vessel to likely be abandoned and cause environmental degradation or become a hazard to navigation.”
(3) Wrecked or dismantled vessels, or parts thereof, or any other partially submerged object that pose a substantial hazard to navigation, from navigable waterways or adjacent public property, or private property with the landowner’s consent.
b. The funds provided under this Agreement shall not be utilized for surrender, abatement, removal, storage, or disposal of commercial vessels. Commercial vessels include those vessels for which the most recent registration or documentation was commercial, even though that registration or documentation may have lapsed. c. If Grantee is reimbursed for the costs related to the surrender, abatement, removal, storage, and/or disposal of an eligible water hazard by the registered or legal owner or other person or entity known to have an interest in the water hazard, then the water hazard shall no longer be eligible for funding under this Agreement. Grantee shall notify DBW in writing of such reimbursement and shall return all funds disbursed by DBW to Grantee with respect to such water hazard immediately. d. Vessels listed in Exhibit F Application/Scope of Work are considered solely a demonstration of the agency’s need for funding, not an approval that the individual Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 6 of 42

Page 31 of 173 ends

vessels are eligible for SAVE funding.

2. RIGHT OF INSPECTION
Grantee shall allow DBW and other state agency representatives, at any reasonable time, to inspect any site where Grantee or its subcontractors are performing work under this Agreement.

3. ANNUAL MEETING
Grantee’s representative or alternate shall participate in an annual grant management and regional coordination one-day video or phone conference conducted by DBW during the term of this agreement.

4. TIMELINESS
Grantee agrees to complete the scope of work submitted in its application in a timely fashion.

5. HAZARDOUS MATERIALS
Grantee shall be responsible for securing any necessary or prudent studies, permits, or authorizations associated with treatment, removal, storage, or any other handling of hazardous substances including, but not limited to, toxic waste, petroleum waste, asbestos, and similar substances, prior to the removal of any vessel and water hazard pursuant to this Agreement.

Grantee shall be responsible for the proper and lawful handling, abatement, removal, storage, and/or disposal of any hazardous substances encountered in the execution of this Agreement.

6. TITLES AND LIENS
a. Abandoned vessels: Grantee shall comply with all relevant provisions of the Harbors and Navigation Code regarding notices, hearings and liens in the performance of this Agreement. Grantee (in conjunction with local law enforcement) shall conduct a title search for all vessels presumed to be abandoned, as provided by Harbors and Navigation Code section 526.
b. Surrendered vessels: Grantee shall comply with all relevant provisions of Harbors and Navigation Code section 526.1 in the performance of this Agreement, requiring that a surrendered vessel be that of the “verified titleholder.” c. Grantee shall comply with all Department of Motor Vehicles notification requirements related to the disposal of vessels and trailers.

7. GRANTEE CITATIONS - ABANDONED VESSELS
Grantee shall, in accordance with HNC 525(a–c), issue the last registered vessel owner a citation for abandoning a vessel and impose a fine of not less than $1,000 nor more than $3,000 for violation of this section. And shall seek every legally available method to have them pay for the removal and disposal of their abandoned vessel.

8. MEDIA
Grantee agrees to acknowledge DBW’s financial support whenever work funded by this Agreement is publicized in any news media, brochures, or other type of promotional material.

Page 32 of 173 ends

9. MEDIA MATERIALS RELEASE
Grantee agrees to irrevocably grant to California State Parks, Division of Boating and Waterways, its employees, officers, agents, and assigns (hereinafter referred to as “DBW”), the non-exclusive, royalty-free, perpetual and worldwide right and permission to use, reproduce, publish, copy, distribute, alter, license, adapt, and display the photographs, motion pictures, caption information, and/or written quotes (hereinafter referred to collectively as “Photographs”), that the Grantee has submitted to DBW for art, editorial, advertising, marketing, trade, broadcast, print, educational programs, or any other lawful purpose whatsoever, in any and all media. In connection with the foregoing license, the Grantee agrees not to use, reproduce, adapt, or display the Photographs, or allow others to do so, in a manner that tends to subject DBW or its Abandoned Watercraft Abatement Fund Grants (AWAF), Vessel Turn In Program (VTIP) and/or Surrendered and Abandoned Vessel Exchange (SAVE) programs to ridicule, disparagement, mockery, satire, or that could tarnish the image of the DBW’s AWAF, VTIP, and/or SAVE programs. Grantee hereby releases and discharges DBW from any and all claims and demands arising out of or in connection with the use of the Photographs, including without limitations, any and all claims for libel, defamation, invasion of privacy, and/or publicity rights. DBW assumes no responsibility for lost or damaged Photographs or for the use of same. DBW may sell, assign, license, or transfer all rights granted to it hereunder.

Grantee also grants DBW and its licensees the unrestricted right to use and disclose its name in connection with use of the Photographs. The Grantee understands that it will not be paid for any use or right granted herein.

Grantee understands and agrees that the Photographs may be used in whole or in part, at any time. The license granted herein to DBW includes the right and permission to conduct or have conducted such alterations to the Photographs as DBW deems necessary. Grantee releases and discharges DBW and agrees to indemnify and hold DBW harmless from any liability by virtue of any blurring, distortion, alteration, optical illusion or use in composite form, loss or damage, whether intentional or otherwise, that may occur in the use of the Photographs. Grantee waives any right to inspect or approve any finished product, advertising or other copy that may be used in connection therewith or the use to which it may be applied.

Grantee declares and avows that the Photographs it is submitting to DBW are its own original work in all respects. Grantee is the sole and exclusive owner of the Photographs; they are free, clear, and unencumbered. No part of them is taken from or based on any other work; no part infringes the copyright or any other right of any person; and the reproduction, publication, exhibition, or any other use by DBW of the Photographs in any form whatever will not in any way, directly or indirectly, infringe on the rights of any person. Grantee agrees to indemnify and hold DBW harmless from and against any and all loss, damage, costs, charges, legal fees, recoveries, judgments, amounts paid in settlement, penalties, and expenses that may be obtained against, imposed on, or suffered by DBW by reason of (1) any violation or infringement of any proprietary right or copyright; or (2) any libelous or unlawful matter contained in the Photographs. Grantee also agrees to indemnify and hold DBW harmless for any such amounts arising from its breach of any covenant, representation, or warranty of this agreement.

10. PERMITS AND DOCUMENTATION
Prior to the removal of any abandoned vessel, eligible water hazard, or surrendered vessel, Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 8 of 42

Page 33 of 173 ends

Grantee shall obtain all necessary permits, authorizations, and documentation necessitated by any applicable provision of law.

11. SECURING OF BIDS
Grantee shall comply with any applicable laws and regulations governing the competitive bidding process when awarding subcontracts under this Agreement. Grantee, upon request, must make available to DBW procurement documents such as requests for proposal, invitations for bid and independent cost estimates.

12. CONTRACTS WITH SERVICE PROVIDERS
All contracts/executed agreements with service providers for which grantee will request reimbursement must be in writing and shall be executed (signed) prior to commencement of any and all work completed. Upon request, grantee shall provide DBW copies of all executed agreements with service providers who are performing work funded by this SAVE grant.

13. SUBCONTRACTORS
Grantee agrees that it shall guarantee and shall be responsible for ensuring that any and all of its contractors and subcontractors hold a valid business license and carry general commercial liability insurance coverage sufficient to fully insure against any and all risks of hazardous activities associated with the work to be performed under this Agreement; and Grantee agrees that if any of Grantee’s contractors or subcontractors fail to fulfill any of these requirements, that Grantee itself carries general commercial liability insurance coverage sufficient to fully insure against any and all risks of hazardous activities associated with the work to be performed under this Agreement, whether performed by the Grantee, Grantee’s contractor(s), or Grantee’s subcontractor(s). Upon request, grantee shall provide DBW with a certificate of insurance from any contractor(s) and subcontractor(s). Grantee’s agreement number (C22SXXXX) must appear on the certificate of insurance.

14. TRAFFIC CONTROL AND TRAFFIC SAFETY
Grantee shall provide for adequate traffic control and safety measures at any site where Grantee and its subcontractors will perform any work under this Agreement.

15. AIR OR WATER POLLUTION VIOLATION
Grantee warrants that it is not (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to any cease and desist order not subject to review issued pursuant to Water Code section 13301 for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

16. ENTIRE AGREEMENT
This Agreement consists of the terms of this Agreement and all attachments, which are expressly incorporated herein. No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required.

17. APPROVAL OF AGREEMENT AND AMENDMENTS
This Agreement and any variation thereto is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Commencement of performance prior to approval of this Agreement will be at the Grantee’s own risk.

18. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PARTICIPATION REQUIREMENT There are no Disabled Veteran Business Enterprise participation requirements with this Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 9 of 42

Page 34 of 173 ends

agreement.

19. AUTHORITY TO CONTRACT
Grantee must provide DBW with evidence of its authority to enter into this Agreement.

Grantee may provide a delegation of contracting authority from its local governing body that by law has authority to contract. Alternatively, Grantee shall provide DBW with a resolution, order, motion, or ordinance of its local governing body that by law has authority to contract, authorizing execution of this Agreement.

20. COMPLIANCE WITH LAW AND REGULATIONS
Grantee and its subcontractor(s) shall comply with all applicable laws and regulations of the State of California for all work to be performed under this Agreement. By signing this Agreement, Grantee certifies its compliance and the compliance of all subcontractors with:
(a) applicable provisions of the California Environmental Quality Act; (b) Nondiscrimination Program requirements of Government Code section 12990 (a-f) and Title 2, California Code of Regulations, section 8103 (and section 8113 in contracts over $5,000) along with section 7285 et. seq. of the Fair Employment and Housing Act; (c) Drug-Free Workplace requirement of Government Code section 8350 et seq.; (d) National Labor Relations Board Certification of Public Contract Code section 10296; (e) Workers’ Compensation requirement of Labor Code section 3700; and (f) Americans with Disabilities Act regulations issued pursuant to 42 U.S.C. section 12101 et seq.

21. INDEPENDENT CONTRACTOR
Grantee and its employees are independent contractors and shall not be considered officers or employees of DBW or agents of the State of California.

22. INSURANCE REQUIREMENTS
The abatement, removal, storage, and /or disposal of vessels under this Agreement is a hazardous activity. Grantee therefore must maintain commercial general liability insurance in an amount and of a type acceptable to DBW and to the Department of General Services/ Office of Risk and Insurance Management (ORIM).
a. GENERAL PROVISIONS APPLYING TO ALL POLICIES
(1) Coverage Term
Coverage needs to be in force for the complete term of the Agreement. Any new insurance must still comply with the original terms of the grant and be provided to DBW upon request.
(2) Policy cancellation or termination & notice of non-renewal Insurance policies shall contain a provision stating coverage will not be cancelled without 30 days prior written notice to the DBW. In the event Grantee fails to keep in effect at all times the specified insurance coverage, the DBW may, in addition to any other remedies it may have, terminate this Agreement upon the occurrence of such event, subject to the provisions of this Agreement.
(3) Deductible
Grantee is responsible for any deductible or self-insured retention contained within their insurance program.
(4) Primary clause
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 10 of 42

Page 35 of 173 ends

Any required insurance contained in this Agreement shall be primary, and not excess or contributory, to any other insurance carried by the State. (5) Insurance carrier required rating
All insurance companies must carry a rating acceptable to ORIM. If the Grantee is self-insured for a portion or all of its insurance, review of financial information including a letter of credit may be required by DBW or ORIM.
(6) Endorsements
Any required endorsements requested by the DBW must be physically attached to all requested certificates of insurance and not substituted by referring to such coverage on the certificate of insurance. (7) Inadequate Insurance
Inadequate or lack of insurance does not negate the Grantee’s obligations under the Agreement.
(8) Use of Subcontractors
In the case of Grantee’s utilization of subcontractors to complete the contracted scope of work, Grantee shall include all subcontractors as insured’s under Grantee’s insurance or supply evidence of subcontractor’s insurance to the State when requested equal to policies, coverages, and limits required of Grantee.
b. INSURANCE REQUIREMENTS
(1) Commercial General Liability
The Grantee shall maintain general liability on an occurrence form with limits of not less than $1,000,000 per occurrence for bodily injury and property damage liability combined with a $2,000,000 annual policy aggregate. The policy shall include coverage for liabilities arising out of premises, operations, independent subcontractors, products, completed operations, personal and advertising injury, and liability assumed under an insured agreement. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the Grantee’s limit of liability. The policy must include:
"The State of California, its officers, agents, employees and servants as additional insureds, but only with respect to work performed under the agreement."
This endorsement must be supplied under form acceptable to the Office of Risk and Insurance Management.

In the case of Grantee’s utilization of subcontractors to complete the contracted scope of work, Grantee shall include all subcontractors as insured’s under Grantee’s insurance or supply evidence of insurance to the State equal to policies, coverages and limits required of Grantee. (2) Automobile Liability
The Grantee shall maintain motor vehicle liability with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 11 of 42

Page 36 of 173 ends

liability arising out of a motor vehicle including owned, hired and nonowned motor vehicles. (3) Watercraft Liability
The Grantee shall maintain watercraft liability insurance with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out of the maintenance and use of any watercraft (owned, hired or non-owned). The policy must include:
"The State of California, its officers, agents, employees and servants as additional insureds, but only with respect to work performed that is connected with or related to the activities contemplated in this Agreement." This endorsement must be supplied under form acceptable to the Office of Risk and Insurance Management.
(4) Workers Compensation and Employers Liability
The Grantee shall maintain statutory worker’s compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the Agreement. Employer’s liability limits of $1,000,000 are required. The insurer waives any right of recovery the insurer may have against the State because of payments the insurer makes for injury or damage arising out of the work done under agreement with the State. A Waiver of Subrogation or Right to Recover endorsement in favor of the State must be attached to certificate.

If applicable, Grantee shall provide coverage for all its employees for any injuries or claims under the U.S. Longshoremen’s and Harbor Workers’ Compensation Act, the Jones Act or under laws, regulations, or statutes applicable to maritime employees. By signing this agreement, Grantee acknowledges compliance with these regulations.
c. ENVIRONMENTAL/POLLUTION LIABILITY
Grantee shall maintain Pollution Liability for limits not less than $1,000,000 occurrence covering the Grantee’s liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs incurred arising out of the work or services to be performed under this agreement. The policy must include:
"The State of California, its officers, agents, employees and servants as additional insureds, but only with respect to work performed under the agreement." This endorsement must be supplied under form acceptable to the Office of Risk and Insurance Management.

Coverage shall be provided for both work performed on site and during transportation as well as proper disposal of hazardous materials.
d. SELF INSURANCE
If the Grantee is self-insured for a portion or all of its insurance, the Grantee shall provide evidence of self-insurance when requested by DBW. Review of financial information including a letter of credit may be required. The DBW reserves the right to request financial information.

Page 37 of 173 ends

e. STATEMENT OF INSURANCE COVERAGE:

Grantee certifies and agrees that they have all required insurance coverages as stated in the grant agreement, which will be in effect for the entire term of the agreement.

Approver initials : Date:

Name:

Title:

23. TERMINATION
a. DBW may terminate this Agreement for any reason upon thirty (30) days written notice to Grantee.
b. If the Grantee fails to keep the required insurance in effect at all times during the term of this agreement, DBW may, in addition to other remedies it may have, terminate this agreement upon two days' written notice.
c. DBW may, by two-day written notice to Grantee and without any prejudice to its other remedies, terminate this agreement because of failure of Grantee to fulfill any of the requirements of this agreement.
d. Upon receipt of any notice terminating this Agreement, Grantee shall immediately discontinue all removal and disposal activities affected, unless the notice directs otherwise. In such event, DBW shall pay Grantee only for removal and disposal activities completed prior to the termination date.

24. ASSIGNMENT
This Agreement is not assignable by the Grantee, either in whole or in part, without the consent of the State in the form of a formal written amendment.

25. MATCHING 10% REQUIREMENT
a. Section 525(C) of the Harbors and Navigation Code states, “A grant awarded by the department pursuant to subparagraph (A) shall be matched by a 10% contribution from the local agency receiving the grant.”
b. The 10% contribution is in addition to funds awarded in the grant and may be made by cash and/or in-kind contributions from agency’s personnel hours (net hourly rate only with no benefits included) for work completed directly toward SAVE program objectives. Other SAVE-related expenses may be used with advance DBW approval in writing.
c. If using personnel hours for in-kind match, only net, raw hours will be accepted, and verification of in-kind contribution is required with reimbursement request(s). This inkind contribution must be paid with local funding. State funds may not be used in any way - directly, indirectly, or as pass-through funds. The statement of in-kind hours must be on the form provided by DBW through the Online Grants Application (OLGA), or available upon request, and must include:
(1) Activity date
(2) Vessel/issue name or description
(3) Personnel name
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 13 of 42

Page 38 of 173 ends

(4) Description of SAVE program service provided
(5) Number of hours provided by each person (may not exceed more than 8 hours per person per day.)
(6) Hourly rate and total value
d. The burden of proof in complying with the 10-percent contribution requirement is the responsibility of the grantee. Funds will not be disbursed until the grantee has provided DBW with acceptable documentation that it complied with the 10-percent contribution requirement for each disbursement.
26 BUDGET DETAIL AND PAYMENT PROVISIONS
a. Covered Expenses and Reimbursement Claims Processes
(1) Rates charged by the Grantee’s service providers, contractors, or subcontractors shall be pre-negotiated with the Grantee and documented in writing. DBW will reimburse the following contract-negotiated rate expenditures provided by Grantee’s contracted service providers, contractors and/or subcontractors, within the scope of the SAVE program for abandoned vessels:
(a) Raising of submerged vessels from shallow waters. Depth of water over obstruction at low water must be 15 feet or less; objects submerged more than 15 feet at low water are not eligible without prior DBW approval.
(b) Mast and/or rigging removal if vessel is in waters greater than 15 feet deep at low water.
(c) Vessel removal from accessible locations
(d) Hazardous materials (hazmat) removal and disposal
(e) Towing
(f) Storage
i. Without lien sale: 60 days maximum
ii. With lien sale: 90 days maximum with justification
iii. If stored onsite at Grantee’s facility, 100% of the normal rate of charge to the public may be used to satisfy the 10% in kind match requirement, and fee schedule is required for verification.
(g) Lien sale expenses: fees charged by lien sale service companies, postage, DMV fees, and advertising costs
(h) Public notice advertising
(i) Vessel appraisal
(j) Salvage and demolition
(2) Rates charged by the Grantee’s service providers, contractors, or subcontractors shall be pre-negotiated with the Grantee and documented in writing. DBW will reimburse the following contract-negotiated rate expenditures provided by Grantee’s contracted service providers, contractors and/or subcontractors, within the scope of the SAVE program for surrendered vessels:

Page 39 of 173 ends

(a) Vessel and/or hazardous material removal and disposal (b) One tow to destruction site
(c) Demolition
(d) Raising of submerged surrendered vessels may only be reimbursed with DBW’s advanced written approval
(3) Other expenses may be considered with advance written approval from DBW.
(4) Ineligible expenses include hand tools, consumables, grantee direct staffing, time and materials from subcontractors, etc. without prior written approval from DBW.
b. Reimbursement claim forms:

Reimbursement claim forms are available in DBW’s Online Grant Application System (OLGA) or upon request. Grantee must sign and date each reimbursement claim in blue ink and submit with the following documents to DBW:
(1) Invoices from service providers, contractors and/or subcontractors to Grantee:

Invoices must contain the following:
(a) Name and address of Grantee
(b) Contract or invoice number
(c) Description of service performed
(d) Date the service was performed
(e) Location of each service
(f) Vessel name, CF# or HIN# if available; otherwise, description of vessel (2) Proof of payment for all invoices.

The following acceptable forms of proof are:
(a) Cancelled check (with bank’s cancelled stamp on back of check copy) (b) Copy of credit card statement charge slip
(c) Invoices from service provider showing zero balance. (d) Proof of Accounting Clearing House (ACH) or Electronic transfer showing date, amount and transaction confirmation number. (3) 10% in-kind match contribution statement:
(a) If Grantee is matching the 10% requirement with in-kind services, complete the DPR265 Itemized 10% In-kind Contribution Statement located in OLGA or available upon request.
(b) Only net hourly rates will be accepted. Grantee must include verification of net rates with first claim and each time rates change. (4) Photos of vessels (Required)
(a) One photo showing the vessel where it was abandoned and the CF or HIN number (if available). If the CF number is not visible/available, photo must show description used on claim form. Photos of surrendered vessels need to show the CF or HIN number, if available.
(5) For Surrendered Vessels ONLY:

DBW Vessel Release of Interest and Ownership must be completed in its Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 15 of 42

Page 40 of 173 ends

entirety and signed by the vessel owner(s) and the SAVE agency representative This form can be downloaded from OLGA.

One proof of vessel ownership must be provided. This can be a copy of the Certification of Ownership (title/pink slip or Coast Guard document) signed by the owner, DMV registration form, or a DMV issued junk slip. Power of Attorney or DMV issued marina lien documents showing the marina has legal interest are also acceptable. Keep the originals and provide DBW with copies.

The Grantee must obtain a signed DBW Release of Interest form from all known interested parties prior to the removal, destruction, or disposal of any vessel funded under this Agreement. This includes, but is not limited to, any legal owner, registered owner, lienholder, or individual or entity with a documented financial or legal claim to the vessel, including those owing penalties or back taxes.

NOTE: Vessel ownership verification is required; however, it is not required that boat owners bring their registration up to date to surrender their vessel through the VTIP.
(6) DO NOT INCLUDE DOCUMENTATION THAT IS NOT REQUIRED such as incident reports, internal routing forms, accounting journals, etc. c. Submit one (1) hard copy and one (1) electronic copy of each reimbursement claim form and all supporting documentation to:

Division of Boating and Waterways
PO Box 942896, Floor 12
Sacramento, CA 94296
Attention: SAVE Unit
Email: [email protected]
d. Submission of fraudulent invoices or other claim documentation is a breach of this Agreement, which shall result in forfeiture of all funds provided under this agreement. e. Reimbursement requests and status updates shall be submitted at least quarterly, but not more frequently than monthly. If no reimbursable work has been completed, the Grantee shall submit a status update in lieu of a reimbursement request. f. All final requests for payment must be submitted to DBW no later than forty-five (45) days after the expiration date of the agreement. DBW will not reimburse request(s) received after November 14, 2027.

27. BUDGET CONTINGENCY CLAUSE
a. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, DBW shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Agreement and Grantee shall not be obligated to adhere to any provisions of this Agreement.
b. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, DBW shall have the option to either cancel this Agreement with no liability occurring to DBW or to offer an agreement amendment to Grantee to reflect Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 16 of 42

Page 41 of 173 ends

the reduced amount.

28. INDEMNIFICATION
DPR shall not be answerable or accountable in any manner for, any loss or expense by reason of any damage or injury to person or property arising out of or related in any way to activities carried out by Grantee, its agents, officers, contractors, subcontractors and/or employees.

Under this Agreement, Grantee shall protect, hold harmless, indemnify and defend DPR, its agents, officers, and/or employees against any and all actions, claims, and damages to persons or property, penalties, obligations and liabilities that may be asserted or claimed by any person, firm, association, entity, corporation, political subdivision, or other organization or person arising out of or in connection with Grantee or Grantee’s contractor’s or subcontractor’s activities hereunder, whether or not there is concurrent passive negligence on the part of DPR, its agents, officers, and/or employees.

29. FUNDS ASSIST
The Funds Assist process enables grantees with unused funds to assist other participating SAVE agencies in need. For up to six (6) months prior to the expiration date of the grant, Funds Assistant is voluntary. Thereafter, at DBW’s discretion, participation shall be mandatory for grantees with anticipated remaining balances. Failure to participate shall negatively affect grantee’s score on future grant applications for a period of up to three (3) years.

The Funds Assist process works as follows:
a. DBW will email all grantees to identify if funding will go unused or if all funding is needed. Grantee shall respond with a confirmation: all funds will be utilized, if all funds will go unutilized and how much, or if funds are needed and how much. DBW will prepare grant amendments to reduce or add funds to grantees as appropriate.

Grantee shall execute amendments in a timely manner.
b. If grant amendments are not possible, DBW may require collaboration and reimbursement between agencies. Specifics for this process will be discussed with participating agencies when needed.

30. 90-DAY RETURN OF GRANT DOCUMENTS TO DBW
Grant agreements issued to the awarded agency must be completed and returned within 90 days of the date of issuance according to the instructions issued by DBW with the grant agreement. If extenuating circumstances prevent the ability of the agency to meet this deadline, approval from DBW must be obtained in writing. DBW retains the right to determine approval or denial of extensions.

31. ANTI-CORRUPTION
Grantees are required to report to DBW any written, suggested, or verbally implied cases whereby a contractor, subcontractor or other service provider increases their fee(s) due to the existence or balance of a SAVE grant in order to increase their fee(s). Such service providers may be investigated for price gouging. If investigated, a two-year history of charges applied to work of all known SAVE grant work by that contractor will be required by DBW for review.

32. AQUATIVE INVASIVE SPECIES
Grantees are required to ensure that they and all their sub-contractors take all necessary precautions to prevent the spread of aquatic invasive species when removing and transporting Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 17 of 42

Page 42 of 173 ends

vessels and other marine debris. At minimum, precautions will include draining all water and ensuring that material is dry prior to transporting from the water to a land-based location.

Guidelines for preventing the spread of aquatic invasive species can be found at:
dbw.parks.ca.gov/mussels.

Page 43 of 173 ends

EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. APPROVAL:

This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Grantee may not commence performance until such approval has been obtained.

2. EFFECTIVE DATE:

Effective date means either the start date or the approval date by the Department of General Services (DGS), whichever is later. In cases where DGS approval is not required, this Agreement is of no force or effect until the date of the last DBW signature. No work shall commence until the effective date.

3. AMENDMENT:

No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties.

4. ASSIGNMENT:

This Agreement is not assignable by the Grantee, either in whole or in part, without the consent of the State in the form of a formal written amendment.

5. AUDIT:

Grantee agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Grantee agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896).

6. INDEMNIFICATION:

Grantee agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the subcontractor or Grantee in the performance of this Agreement.

7. DISPUTES:

Grantee shall continue with the responsibilities under this Agreement during any dispute.

8. TERMINATION FOR CAUSE:

The State may terminate this Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Agreement at the time and in the manner Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 19 of 42

Page 44 of 173 ends

herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Grantee under this Agreement and the balance, if any, shall be paid to the Grantee upon demand.

9. RECYCLING CERTIFICATION:

The Grantee shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub.

Contract Code §12205).

10. NON-DISCRIMINATION CLAUSE:

During the performance of this Agreement, Grantee and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (e.g., cancer), age (over 40), marital status, and denial of family care leave. Grantee and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 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 awarding state agency to implement such article. GRANTEE shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. Grantee and its subcontractors 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 subcontracts to perform work under the Agreement.

11. CERTIFICATION CLAUSES:

The GRANTEE CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto.

12. TIMELINESS:

Time is of the essence in this Agreement.

13. COMPENSATION:

The consideration to be paid Grantee, as provided herein, shall be in compensation for all of Grantee's expenses incurred in the performance hereof, as outlined in Exhibit B, item #24.

Page 45 of 173 ends

14. GOVERNING LAW:

This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

15. ANTITRUST CLAIMS:

The Grantee by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Grantee shall comply with the requirements of the Government Codes Sections set out below.
a. The Government Code Chapter on Antitrust claims contains the following definitions:
(1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of
Section 16750 of the Business and Professions Code.
(2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C.

Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552.
c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554.

16. CHILD SUPPORT COMPLIANCE ACT:

For any Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that:
a. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 21 of 42

Page 46 of 173 ends

compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

17. UNENFORCEABLE PROVISION:

In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

18. PRIORITY HIRING CONSIDERATIONS:

If this Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the agreement to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353.

19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS:
a. If for this Agreement Grantee made a commitment to achieve small business participation, then Grantee must within 60 days of receiving final payment under this Agreement (or within such other time period as may be specified elsewhere in this Agreement) report to the awarding department the actual percentage of small business participation that was achieved. (Govt. Code § 14841.) b. If for this Agreement Grantee made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Grantee must within 60 days of receiving final payment under this Agreement (or within such other time period as may be specified elsewhere in this Agreement) certify in a report to the awarding department: (1) the total amount the prime Grantee received under the Agreement; (2) the name and address of the DVBE(s) that participated in the performance of the Agreement; (3) the amount each DVBE received from the prime Grantee; (4) that all payments under the Agreement have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.)

20. LOSS LEADER:

If this agreement involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).)
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 22 of 42

Page 47 of 173 ends

EXHIBIT D

GRANTEE CERTIFICATION CLAUSES
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Grantee to the clause(s) listed below. This certification is made under the laws of the State of California.

Grantee Agency Name (Printed)
City of Morro Bay Harbor Department
Federal ID Number
95-2308629
By (Authorized Signature)
Printed Name and Title of Person Signing
Date Executed Executed in the County of
San Luis Obispo

GRANTEE CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE:

Grantee has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS:

Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations. b. Establish a Drug-Free Awareness Program to inform employees about:
(1) the dangers of drug abuse in the workplace;
(2) the person's or organization's policy of maintaining a drug-free workplace; (3) any available counseling, rehabilitation and employee assistance programs; and,
(4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed Agreement will:
(1) receive a copy of the company's drug-free workplace policy statement; and, (2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Grantee may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Grantee has made false certification, or violated the certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et seq.) Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 23 of 42

Page 48 of 173 ends

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION:

Grantee certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Grantee within the immediately preceding two-year period because of Grantee's failure to comply with an order of a Federal court, which orders Grantee to comply with an order of the National Labor Relations Board. (Pub. Contract Code §10296) (Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT:

Grantee hereby certifies that Grantee will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Grantee agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the agreement equal to the lessor of 30 multiplied by the number of full time attorneys in the firm’s offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its agreement with the State.

Failure to make a good faith effort may be cause for non-renewal of a state agreement for legal services, and may be taken into account when determining the award of future contracts/agreements with the State for legal services.

5. EXPATRIATE CORPORATIONS:

Grantee hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:
a. All Grantees contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The Grantee further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108.
b. The Grantee agrees to cooperate fully in providing reasonable access to the Grantee’s records, documents, agents or employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the Grantee’s compliance with the requirements under paragraph (a).

Page 49 of 173 ends

7. DOMESTIC PARTNERS:

For contracts over $100,000 executed or amended after January 1, 2007, the Grantee certifies that Grantee is in compliance with Public Contract Code section 10295.3.

8. GENDER IDENTITY:

For contracts of $100,000 or more, GRANTEE certifies that GRANTEE is in compliance with Public Contract Code section 10295.35.

DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST:

Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.

Current State Employees (PCC 10410):

No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.

No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (PCC 10411):

For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.

For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (PCC 10420)
Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (PCC 10430 (e))

2. LABOR CODE/WORKERS' COMPENSATION:

Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700) Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 25 of 42

Page 50 of 173 ends

3. AMERICANS WITH DISABILITIES ACT:

Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

4. GRANTEE NAME CHANGE:

An amendment is required to change the Grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment.

Payment of invoices presented with a new name cannot be paid prior to approval of said amendment. Any changes of the Grantee’s representative shall be notified to DBW within 30 days written notice on Grantee’s letterhead.

5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the Grantee is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled. b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate Grantee performing within the state not be subject to the franchise tax.
c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California.

Agencies will determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION:

A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

7. AIR OR WATER POLLUTION VIOLATION:

Under the State laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

8. PAYEE DATA RECORD FORM STD. 204:

This form must be completed by all Grantees that are not another state agency or other governmental entity.

Page 51 of 173 ends

EXHIBIT E – DARFUR CONTRACTING ACT
If your agency hires a contractor to complete work under this grant, the contractor must fill out and sign the Darfur Contracting Act form prior to execution of the contract. A Sample of The Darfur Contracting Act form is provided on the next page; this form (DGS PD 1) can also be downloaded from the California Department of General Services website.

Effective January 1, 2009, all Invitations for Bids (IFB) or Requests for Proposals (RFP) for goods or services must address the requirements of the Darfur Contracting Act of 2008 (Act). (Public Contract Code sections 10475, et seq.; Stats. 2008, Ch. 272). The Act was passed by the California Legislature and signed into law by the Governor to preclude State agencies generally from contracting with “scrutinized” companies that do business in the African nation of Sudan (of which the Darfur region is a part), for the reasons described in Public Contract Code section 10475.

A scrutinized company is a company doing business in Sudan as defined in Public Contract Code section 10476. Scrutinized companies are ineligible to, and cannot, bid on or submit a proposal for a contract with a State agency for goods or services. (Public Contract Code section 10477(a)).

Therefore, Public Contract Code section 10478 (a) requires a company that currently has (or within the previous three years has had) business activities or other operations outside of the United States to certify that it is not a “scrutinized” company when it submits a bid or proposal to a State agency. (See # 1 on the sample Attachment).

The following sample Attachment may be included in an IFB or RFP to satisfy the Act’s certification requirements of bidders and proposers.

Page 52 of 173 ends

EXHIBIT E – DARFUR CONTRACTING ACT

SAMPLE FORM
Public Contract Code Sections 10475 -10481 applies to any company that currently or within the previous three years has had business activities or other operations outside of the United States.

For such a company to bid on or submit a proposal for a State of California contract, the company must certify that it is either a) not a scrutinized company; orb) a scrutinized company that has been granted permission by the Department of General Services to submit a proposal.

If your company has not, within the previous three years, had any business activities or other operations outside of the United States, you do not need to complete this form.

OPTION #1 - CERTIFICATION
If your company, within the previous three years, has had business activities or other operations outside of the United States, in order to be eligible to submit a bid or proposal, please insert your company name and Federal ID Number and complete the certification below.

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that a) the prospective proposer/bidder named below is not a scrutinized company per Public Contract Code 10476; and b) I am duly authorized to legally bind the prospective proposer/bidder named below. This certification is made under the laws of the State of California.

Company/Vendor Name (Printed)
City of Morro Bay Harbor Department
Federal ID Number
95-2308629
By (Authorized Signature) Date
Printed Name and Title of Person Signing
,
OPTION #2 - WRITTEN PERMISSION FROM DGS
Pursuant to Public Contract Code Section 10477(b), the Director of the Department of General Services may permit a scrutinized company, on a case-by-case basis, to bid on or submit a proposal for a contract with a state agency for goods or services, if it is in the best interests of the state. If you are a scrutinized company that has obtained written permission from the DGS to submit a bid or proposal, complete the information below.

We are a scrutinized company as defined in Public Contract Code section 10476, but we have received written permission from the Department of General Services to submit a bid or proposal pursuant to Public Contract Code section 10477(b). A copy of the written permission from DGS is included with our bid or proposal.

Company/Vendor Name (Printed)
City of Morro Bay Harbor Department
Federal ID Number
95-2308629
By (Authorized Signature) Date
Printed Name and Title of Person Signing
,
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 28 of 42

Page 53 of 173 ends

General
EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ 1 Applicant Information
a. Applicant Name City of Morro Bay Harbor Department
b. Organizational Unit
c. Address 1275 Embarcadero
d. Address 2
e. City Morro Bay State CA Zip 93422
f. Federal ID Number 95-2308629 Unique Entity Id. KAFQZMM3M RA5
g. Agency Type
City County
Federally or State Recognized Native American Tribe District Goals and Objectives
Based on an agency's application, DBW will prioritize funding according to agencies demonstrating the greatest need, cost effective methods, and prevention strategies. Additionally, points are awarded for agencies that work with their local private marina owners in the prevention of abandoned vessels. 2 Project Information
a. Project Name Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
b. Is implementing agency same as Applicant Yes No
c. Implementing Agency Name
d. Project Start Date Oct-01-2025 End Date Sep-30-2027
e. Amount of Funds Requested $15,750.00 Project Cost $17,325.00

3. Billing Address
If billing address is different than Applicant and/or Contact, please provide a. Billing Agency
Name:

Address:

City: State: Zip:

Phone:

Page 54 of 173 ends

3 Contacts
a. Project Administrator
Name Lori Thompson
Title Harbor Manager
Mailing Address 1275 Embarcadero
City Morro Bay State CA Zip 93442
Telephone (805) 772-6254 - 256 Fax (805) 772-6258 -
256
E-mail Address [email protected]
EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 30 of 42

Page 55 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

1. Minimum Qualifications

1. Does your agency have an enforcement program to address abandoned boats? Yes No If Yes, describe My answer - As the primary uniformed public safety agency on Morro Bay waters, the Morro Bay Harbor Patrol is authorized to and tasked with enforcement of Morro Bay Municipal Code Chapter 15, Morro Bay Harbor Department Rules and Regulations and State of California Harbor and Navigation Code. The authority is codified in Morro Bay Municipal Code primarily in Sections 15.04.080, 15.08.020, 15.44.010-020, 15.52.010-070 and 15.56.010-020, and Penal Section 836.5. Abandoned vessels are removed specifically under California Harbors and Navigation Code Sections 500-526 and 551.

2. Attach ordinance, resolution, or municipal code authorizing your agency's involvement and its jurisdiction for prevention and removal of abandoned vessels and accepting surrendered vessels.
45961_0_860_2.qualific
ations attachment.pdf

3. Has your agency been out of compliance with the terms of any other Department of Parks and Recreation contract or grant agreements within the past 3 years? Yes No
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 31 of 42

Page 56 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

1. California State Senate Districts
Select one or more of the California State Senate Districts where the proposed project activities will occur. Copy and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your browser to determine the State Senate district(s).

State Senate 01 State Senate 02 State Senate 03 State Senate 04 State Senate 05 State Senate 06 State Senate 07 State Senate 08 State Senate 09 State Senate 10 State Senate 11 State Senate 12 State Senate 13 State Senate 14 State Senate 15 State Senate 16 State Senate 17 State Senate 18 State Senate 19 State Senate 20 State Senate 21 State Senate 22 State Senate 23 State Senate 24 State Senate 25 State Senate 26 State Senate 27 State Senate 28 State Senate 29 State Senate 30 State Senate 31 State Senate 32 State Senate 33 State Senate 34 State Senate 35 State Senate 36 State Senate 37 State Senate 38 State Senate 39 State Senate 40

2. California State Assembly Districts
Select one or more of the California State Assembly Districts where the proposed project activities will occur.

Copy and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your browser to determine the State Assembly district(s).

State Assembly 01 State Assembly 02 State Assembly 03 State Assembly 04 State Assembly 05 State Assembly 06 State Assembly 07 State Assembly 08 State Assembly 09 State Assembly 10 State Assembly 11 State Assembly 12 State Assembly 13 State Assembly 14 State Assembly 15 State Assembly 16 State Assembly 17 State Assembly 18 State Assembly 19 State Assembly 20 State Assembly 21 State Assembly 22 State Assembly 23 State Assembly 24 State Assembly 25 State Assembly 26 State Assembly 27 State Assembly 28 State Assembly 29 State Assembly 30 State Assembly 31 State Assembly 32 State Assembly 33 State Assembly 34 State Assembly 35 State Assembly 36 State Assembly 37 State Assembly 38 State Assembly 39 State Assembly 40 State Assembly 41 State Assembly 42 State Assembly 43 State Assembly 44 State Assembly 45 State Assembly 46 State Assembly 47 State Assembly 48 State Assembly 49 State Assembly 50 State Assembly 51 State Assembly 52 State Assembly 53 State Assembly 54 State Assembly 55 State Assembly 56 State Assembly 57 State Assembly 58 State Assembly 59 State Assembly 60 State Assembly 61 State Assembly 62 State Assembly 63 State Assembly 64 State Assembly 65 State Assembly 66 State Assembly 67 State Assembly 68 State Assembly 69 State Assembly 70 State Assembly 71 State Assembly 72 State Assembly 73 State Assembly 74 State Assembly 75 State Assembly 76 State Assembly 77 State Assembly 78 State Assembly 79 State Assembly 80

3. California Congressional Districts
Select one or more of the California Congressional Districts where the proposed project activities will occur.

Copy and Paste the URL (https://www.govtrack.us/congress/members/CA) in your browser to determine the Congressional district(s).

Congressional District 1 Congressional District 2 Congressional District 3 Congressional District 4 Congressional District 5 Congressional District 6 Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 32 of 42

Page 57 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ Congressional District 7 Congressional District 8 Congressional District 9 Congressional District 10 Congressional District 11 Congressional District 12 Congressional District 13 Congressional District 14 Congressional District 15 Congressional District 16 Congressional District 17 Congressional District 18 Congressional District 19 Congressional District 20 Congressional District 21 Congressional District 22 Congressional District 23 Congressional District 24 Congressional District 25 Congressional District 26 Congressional District 27 Congressional District 28 Congressional District 29 Congressional District 30 Congressional District 31 Congressional District 32 Congressional District 33 Congressional District 34 Congressional District 35 Congressional District 36 Congressional District 37 Congressional District 38 Congressional District 39 Congressional District 40 Congressional District 41 Congressional District 42 Congressional District 43 Congressional District 44 Congressional District 45 Congressional District 46 Congressional District 47 Congressional District 48 Congressional District 49 Congressional District 50 Congressional District 51 Congressional District 52 Congressional District 53

4. County
Select one or more of the California Counties where the proposed project activities will occur.

Alameda Alpine Amador Butte Calaveras Colusa
Contra Costa Del Norte El Dorado Fresno Glenn Humboldt
Imperial Inyo Kern Kings Lake Lassen
Los Angeles Madera Marin Mariposa Mendocino Merced
Modoc Mono Monterey Napa Nevada Orange
Placer Plumas Riverside Sacramento San Benito San
Bernardino
San Diego San Francisco San Joaquin San Luis
Obispo
San Mateo Santa Barbara
Santa Clara Santa Cruz Shasta Sierra Siskiyou Solano
Sonoma Stanislaus Sutter Tehama Trinity Tulare
Tuolumne Ventura Yolo Yuba
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 33 of 42

Page 58 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

3. Jurisdictional Control
List all waterbodies that are in your jurisdictional control and fill in the chart for each - What are your Primary Responsibilities in your AOR - Objective 4: Existence of an Active Enforcement Program Waterbody
Name
Acres or
square
miles of
this
waterbod
y in your
jurisdicti
on
What are the
corporate limits
of your agency's
jurisdictional
control in each
waterbody?
List all other
agencies who
share
jurisdictional
control of this
waterbody.

Identify
which
agency has
lead
jurisdiction
for
removing
abandoned
vessels and
accepting
surrendere
d vessels in
this
waterbody.

How often
does your
agency
monitor this
area?
Identify
your
primary
responsibili
ties in this
waterbody
City of Morro
Bay Harbor
City
Limits/Estero
Bay

5.2 square
miles
The City of Morro
Bay's jurisdictional
control are those
waters conveyed
to the County of
San Luis Obispo
by the State of
California in trust
by Chapter 1076
Statues 1947,
amended Chapter
1874 Statues
1957, and
subsequently
conveyed to the
City of Morro Bay
upon the City's
incorporation in
1964.

United States
Coast Guard, San
Luis Obispo
County Sheriffs,
California State
Fish & Wildlife
City of Morro
Bay Harbor
Patrol
24/7 -365
days per year
Boating
safety, fire
response,
emergency oil
spill response
& pollution
mitigation and
enforcement.

4. Staff Dedicated to Abandoned and Surrendered Vessel Activities Staff dedicated to Abandoned and Surrendered Vessel Activities - Objective 4: Existence of an active enforcement program
List the names and titles of staff assigned in their job duties to the removal of abandoned vessels and receipt of
surrendered vessels.

Total
number of
hours per
week
dedicated
to removal
of
abandoned
vessels
Total
number of
hours per
week
dedicated
to receipt
of
surrendere
d vessels
Total hours
per week
Lori Thompson, Harbor Business Manager 0.50 0.50 1.00
Becka Kelly, Harbor Patrol Supervisor 0.50 0.50 1.00
Chris Munson, Harbor Director 0.25 0.10 0.35
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 34 of 42

Page 59 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ Dana Stein, Harbor Patrol Officer 0.25 0.10 0.35
Charlie Howland, Harbor Patrol Officer 0.25 0.10 0.35
Jeremiah Jacobs, Harbor Patrol Officer 0.25 0.10 0.35
Marcos Green, harbor Patrol Officer 0.25 0.10 0.35
Objective 1: Prevention

5. Does your agency accept surrendered vessels? Yes No

6. How does your agency advertise this program component? Publicity Efforts:

Advertised on your website
Agency newsletters
PSAs, billboards
Social media
Distributing brochures
Other
[Kiosk's around the City of Morro Bay and informal conversation] Number of methods selected to actively
promote self turn-in
4 Number of brochures distributed per year at:
# of Brochures List names of Events
40 Annual Marine Swap Meet
20 National Safe Boating Week
# of Brochures List names of Marinas
20 Morro Bay Marina
20 State Park Marina
15 Bay Front Marina
# of Brochures List names of Other Activities
25 US Coast Guard Safety Boating Class/Boater
Card

7. Did your agency have a plan to increase the number of surrendered vessels accepted over the last calendar year? If so, what was the plan and what were the results? Additionally, what plans does your agency have to increase the number of surrendered vessels you accept this year? Participate in more social media platforms and opportunities.

We also plan to annouce the program more ofter during our monthly Harbor Advisory Board meetings.

8. How often does your agency coordinate with local boating groups or marinas to inform them of the surrendered vessel program? Describe activities and identify groups/marinas contacted in the last calendar year. (Answer only if you selected ‘Yes’ to Q 5.)
Annually during National safe boating week and our maritime swap meet. In addtion, regular correspondence with marina leaseholders.

Page 60 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

9. Does your agency accept surrendered vessels from boaters outside its jurisdiction?
Yes No
If so, how many surrendered vessels have you received in the last calendar year?
8 If not, identify why?

10. Describe how your agency monitors abandoned vessel activity in your jurisdiction. Select all that apply.

Routine patrol of jurisdiction
Visit marinas/dockwalks
Direct contact with boat owners
Check vessel registration
Check seaworthiness (listing, occupancy, trash, bilge running, operable lights) Abandoned vessel mapping and tracking
Multi-agency coordination
Utilize NASA data
Number of methods selected to monitor abandoned vessel activity 5

11. Describe additional methodologies, if any,
(besides participation in SAVE) your agency
uses to prevent abandoned vessels within
its jurisdiction?
Aggressive pursuit of derelict/unseaworthy vessel responsibility and registration issues, including enforcement action on past due accounts up to and including lien sales
Objective 2: Control

12. Describe methodologies, if any, your agency
has implemented to control and prevent
abandoned vessels from entering its
jurisdiction from other areas.

Our agency proactively monitors and inspects incoming vessels at key access points, coordinates with neighboring jurisdictions to track high-risk or previously identified derelict vessels and maintains regular patrols to deter illegal mooring. We also educate boaters on legal disposal options. These efforts aim to prevent abandoned vessels from entering and impacting our waterways.

13. Does your agency collaborate with neighboring SAVE grantees that manage abandoned and surrendered vessels?
Yes No
If yes, list agencies and describe collaboration.

Sacramento County Sheriff's Office – We utilized $38,000 of their remaining $60,000 in unspent funds to support the completion of their 22/23 SAVE grant responsibilities.

14. Does your agency have any special circumstances and/or conditions that contribute to abandoned vessels in your jurisdiction? Explain circumstances/conditions.

Morro Bay is relatively isolated geographically and by weather, and as such can be a place where marginally seaworthy vessels can get stuck and fall into dereliction and abandonment. This situation is not helped by the fact that Morro Bay does not have a full-size, full-service boatyard.

Objective 5: SNHAP
Per HNC 525, when evaluating an application DBW shall give greater weight to applicants who have an existing SNHAP.

Page 61 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

15. Does your agency have a Submerged Navigational Hazard Abatement Plan (SNHAP)?
Yes No
If Yes, attach copy. 45985_0_936_SNHAP.pdf

16. Summarize the detailed process in your
SNHAP for the abatement of non-vessel
related navigational hazards and commercial
vessels.

1. Identification and monitoring of at-risk vessels by Harbor Patrol on a daily basis, and close collaboration with waterfront leaseholders who manage slips and marinas in Morro Bay.

2. Education and outreach to at-risk vessel owners.

3. Enforcement of local and State laws, rules and regulations pertaining to such vessels such as registration requirements, operational requirements, pollution discharge issues and applicable permit requirements.

3. Citation of offenders and aggressive delinquent fee collection, impoundment and liens as a deterrent.

17. Identify the SNHAP’s funding source for the control/abatement of non-vessel related water hazards, hazardous floating debris (such as logs), submerged objects and abandoned piers and pilings Non-vessel related water hazards in Morro Bay, such as debris or submerged objects, are generally mitigated in real-time by the Harbor Department and funded through the Harbor's operational fund.

With the entirety of Morro Bay’s waterfront being under the City’s control via long-term leases, piers and pilings are not allowed to become hazards by way of proper management of the long-term leases.

Page 62 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ Objective 3: Cost Effectiveness
Has your agency been involved in abatement activities during the past 3 calendar years?
Yes No
If yes, provide the average cost to remove and destroy vessels in the chart below:

ABANDONED VESSELS AVERAGE
COST

18. Vessels Less Than 30' $1,500 or less LAST CALENDAR
YEAR
18a. Vessels Less Than 30' $1,500 or less LAST 3

CALENDAR
YEARS

19. Vessels Greater Than 31' $3,001 - $5,000 LAST CALENDAR YEAR
19a. Vessels Greater Than 31' $3,001 - $5,000 LAST 3

CALENDAR
YEARS

SURRENDERED VESSELS

20. Vessels Less Than 30' more than $1,000 LAST CALENDAR YEAR
20a. Vessels Less Than 30' more than $1,000 LAST 3

CALENDAR
YEARS

21. Vessels Greater Than 31' more than $2,000 LAST CALENDAR YEAR
21a. Vessels Greater Than 31' more than $2,000 LAST 3

CALENDAR
YEARS
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 38 of 42

Page 63 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

22. Identify the last three CLOSED SAVE grants awarded and the percentage of unspent funding that was left in each grant.

ONLY LIST CLOSED GRANTS
Closed SAVE grants
year awarded
Amount
Awarded
Percentage
of funding
left over
2020 20,000.00 0
2021 18,000.00 0
2022 15,000.00 0

23. Identify the number of personnel currently working in the program with more than two years' experience managing the SAVE program.
6 24. What process/method/practice have you
implemented in the last 24 months to reduce
the grant program's cost of removing and
destroying abandoned or surrendered
vessels?
We continue to require surrendered vessel owners to provide a Department of Motor Vehicle Junk certificate at time of vessel turn-in, in addition to requiring turn-in vessel owners to remove all hazardous wastes, fuels and oils prior to turn-in. This allows our department to cut the costs & time of paying staff to go to the DMV to remove the vessel from the DMV system and saves time and money and reduces potential spills in the
demolition/removal process.

25. Does your agency have additional funding sources (other than SAVE) for removal and disposal of abandoned vessels in the event you run out of grant funding or are not awarded the full grant request?
Yes No
If yes, list

26. Does your or a partner agency have vessel storage capabilities that can be used by your agency at no cost to SAVE?
Yes No

27. Does your agency have access/ability to dispose of vessels at a local or neighboring landfill?
Yes No

28. What is the number of abandoned vessels in your jurisdiction that will be ready for disposal during this grant period, if awarded?
1 How were these vessels identified? The vessel was identified through regular patrols and public reporting. Upon inspection, it was deemed unseaworthy and poses a threat to pollute due to its deteriorating condition and lack of proper upkeep and care. The vessel has been
documented as a threat to pollute, and necessary notifications have been made. The owner will not surrender the vessel.

29. What is the number of surrendered vessels in your jurisdiction that will be ready for disposal during this grant period, if awarded?
4 How were these vessels identified? Each vessel was assessed and confirmed to meet the criteria for surrender due to age, condition, and lack of seaworthiness. The vessels were evaluated to ensure they posed no immediate environmental or navigational hazards and are now staged for proper disposal pending grant funding. Vessel owners have been contacted, and we are awaiting feedback.

30. Did you collaborate with marinas in your jurisdiction to identify the number of potential surrendered vessels listed in your budget?
Yes No
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 39 of 42

Page 64 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ If yes, list marinas. Morro Bay Marina at Marina Square Morro Bay Yacht Club
Bay Front Marina
Morro Bay Marina off Main Street
State Park Marina
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 40 of 42

Page 65 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________ Budget
List Identified Abandoned Vessels (CF #s)
VESSEL
LENGTH

ESTIMATED
COST
Triton 43 4,200.00
Total 4,200
List Identified Surrendered Vessels (CF #s)
VESSEL
LENGTH

ESTIMATED
COST
Traveler 35 3,200.00
Why Not 16 3,000.00
Starduster 40 3,850.00
Kaifu 41 4,000.00
Total 14,050.00
Estimate Future Abandoned Vessels
Total number
of vessels

APPROXIMAT

E VESSEL
LENGTH

ESTIMATED
COST
El Solyo 1 36 3,200.00
Native Dancer 1 32 3,200.00
Total 2 6,400.00
Justification: The vessel has acquired past due fees with the city. The vessel may be turned over to our Marine Lien service for a lien auction.

Estimate Future Surrendered Vessels
Total number
of vessels

APPROXIMAT

E VESSEL
LENGTH

ESTIMATED
COST
Grandlainie 1 44 4,200.00
Total 1 4,200.00
Justification: This vessel is on a mooring in the harbor that is in disrepair and the owners are considering surrendering the vessel.

TOTAL GRANT 28,850
REQUEST PLUS 10% 2,885
AGENCY MATCH 2,885
TOTAL PROJECT COST 31,735
Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 41 of 42

Page 66 of 173 ends

EXHIBIT F - Grant Application: Letter of Intent, Scope of Work and Work Plan __________________________________________________________________________

1. Applicant Certification
Per Harbors and Navigation Code 525 (C) “A grant awarded by the department pursuant to subparagraph (A) shall be matched by a 10% contribution from the local agency receiving the grant.” Matching fund may be rendered in cash, or through in-kind contributions which must be verified, and are at the discretion of DBW.

These contributions may include (but are not limited to) the following: administrative costs, personnel hours, removal, and/or storage.

Grant monies WILL NOT be reimbursed by DBW unless 10% match for each reimbursement claim is met. a. Under penalty of perjury, I certify that I have examined this application and the document(s), proposal(s), and statement(s) submitted in conjunction herewith, and that to the best of my information and belief, the information contained herein is true, accurate, correct, and complete. b. I certify that I am the person authorized to submit this application on behalf of the applicant.

Prepared by: Name: Lori Thomspon Date: 04/29/2025
Reviewed by: Name: Lori Thompson Date: 04/29/2025
Approving Officer: Name: Lori Thompson Date: 04/29/2025 Date: 09/18/2025 Contract # C25S0605, City of Morro Bay Harbor Department, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2025/2026
__________________________________________________________________________ Page: 42 of 42

Page 67 of 173 ends

Prepared By: ___LT_____ Dept Review: ___CM __
City Manager Review: ___AL_____ City Attorney Review: __BS___ Staff Report
TO: Honorable Mayor and City Council DATE: September 28, 2025 FROM: Lori Thompson, Harbor Business Manager
SUBJECT: Adoption of Resolution No. 53-25 Authorizing the City of Morro Bay to Enter Into a Fiscal Year (FY) 2025-26 Boating Safety and Enforcement Equipment Grant Contract and Related Budget Amendment

RECOMMENDED ACTION
Adopt Resolution No. 53-25, authorizing the Harbor Business Manger to execute and act as the City’s agent for the attached FY 2025-26 Boating Safety and Enforcement Equipment Grant (BSEE) Agreement # C25L0604 with the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) in the amount of $32,689.96 to purchase two replacement transom assemblies and two outdrives, and authorizing the related budget amendment.

ALTERNATIVES
The Council could not accept this grant, and direct staff accordingly.

FISCAL IMPACT
Approval of this $32,689.96 grant agreement will pay for the purchase of two replacement transom assemblies and two outdrives. The labor to install the granted equipment is budgeted in the FY 2025- 26 Harbor operating budget. Staff is requesting approval of Resolution No. 53-25 to authorize the Harbor Business Manager to act as the City’s agent for the grant award and to amend the City’s FY 2025-26 Adopted Operating and Capital Budget to reflect the receipt of grant funds and offsetting expenditures.

BACKGROUND
Over the years the Harbor Department has obtained hundreds of thousands of dollars in BSEE grants from DBW for patrol vessel purchases, engine repowers, rescue watercraft, trailers and miscellaneous equipment. After consulting with DBW staff, Harbor Department staff were encouraged to apply for a BSEE grant to purchase the needed equipment.

DISCUSSION & CONCLUSION
The Harbor Department is requesting $32,689.96 in funding to purchase two replacement transom assemblies and two outdrives for the Department’s 2012, 26-foot Radon patrol vessel. This vessel is one of the Department’s primary enforcement, search, and rescue assets, and historically conducts the highest number of patrol hours in the fleet.

The existing outdrives and transom assemblies have been deemed unserviceable by the AGENDA NO: 6.e
MEETING DATE: October 14, 2025

Page 68 of 173 ends

Department’s mechanic due to extensive corrosion from electrolysis. At present, the vessel is not recommended for emergency response in rough or open water conditions. Because it is a twin-engine vessel, both assemblies and outdrives must be replaced to return the vessel to safe, reliable service.

Maintaining a fleet of twin-engine vessels is essential to the Department’s ability to respond effectively to the high call volume generated by recreational boaters and other users of the often-dangerous waters in and adjacent to Morro Bay. In 2024, Harbor Patrol responded to approximately 45 search and rescue cases, the majority occurring in open water or the surf zone. The inability to fully utilize this vessel during maintenance periods of our primary boat significantly hampers open-ocean response capability.

The waters within Morro Bay’s jurisdiction often see a large number of inexperienced and undereducated boaters. Ensuring the safety of these individuals is a top priority for the Harbor Department.

This is achieved through preventative education, equipment and operation enforcement, and close coordination with the U.S. Coast Guard. Restoring this vessel to full operational capacity will enable Harbor Patrol to continue proactive safety contacts, enforcement activities, and emergency responses on a year-round basis.

Having two twin-engine, all-weather patrol vessels equipped for rescue and firefighting is critical for ensuring the Harbor Department can manage multiple incidents, maintain operational readiness when one vessel is down for maintenance, and continue to protect life and property in our jurisdiction.

ATTACHMENTS

1. Resolution No. 53-25

2. DBW Grant Agreement # C25L0604

Page 69 of 173 ends

RESOLUTION NO. 53-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO A 2025/2026 BOATING

SAFETY AND ENFORCEMENT EQUIPMENT GRANT CONTRACT WITH STATE OF

CALIFORNIA DEPARTMENT OF PARKS AND RECREATION,

DIVISION OF BOATING AND WATERWAYS

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay applied for a 2025/2026 Boating Safety and Enforcement Equipment (BSEE) Grant from the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) in the amount of $32,689.96; and WHEREAS, DBW awarded the City of Morro Bay a BSEE grant in the amount of $32,689.96, which will allow the City the ability to utilize the funds to purchase two replacement transom assemblies and two outdrives.

WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its day-to-day business activities; and
WHEREAS, the City Council adopted the Fiscal Year (FY) 2025-26 Operating and Capital Budget on June 24, 2025, by Resolution No. 38-25; and WHEREAS, the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) has awarded the City a grant to purchase two replacement transom assemblies and two outdrives for the Harbor Department’s 2012, 26-foot Radon patrol vessel; and
WHEREAS, City staff did not include this award or associated expenditures in the adopted budget; and
WHEREAS, the City Council deems it necessary to amend said budgets.

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

1. The City is hereby authorized to enter into the BSEE grant contract agreement # C25L0604 in the amount of $32,689.96 for the purchase of two replacement transom assemblies and two outdrives.

3. Authorizes a budget amendment to recognize $32,689.96 in grant revenue awarded and $32,689.96 in expenditures as outlined in Table 1.

Page 70 of 173 ends

Table 1. Budget Amendment Detail
Type Account Description Increase
(Decrease)
Revenue 331-6510-3371 State Grant Public
Service
$32,689.96
Expense 331-6510-7205 Vessels $32,689.96
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of October 2025 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Page 71 of 173 ends

State of California – Natural Resources Agency

DEPARTMENT OF PARKS AND RECREATION

DIVISION OF BOATING AND WATERWAYS

GRANT AGREEMENT
GRANTEE: City of Morro Bay Harbor Department
GRANT TITLE: Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 GRANT NUMBER: C25L0604
GRANT AMOUNT: $32,689.96
GRANT AGREEMENT TERM: October 1, 2025 (or the date signed by the Department whichever comes later) through September 30, 2033
GRANT PERFORMANCE PERIOD: October 1, 2025 (or the date signed by the Department whichever comes later) through September 30, 2026.

The Grantee agrees to the terms and conditions of this contract, hereinafter referred to as Agreement, and the State of California, acting through its Director of the Department of Parks and Recreation, and pursuant to the State of California agrees to fund the total state grant amount indicated below. The GRANTEE agrees to complete the SCOPE OF WORK as defined in the Agreement.

The following are attached and made a part of and incorporated into this grant agreement: Exhibit A Grant Terms and Conditions, Exhibit B General Terms and Conditions, Exhibit C Contractor Certification Clauses, Exhibit D Doing Business with California, Exhibit E Darfur Contracting Act, Exhibit F Recycled Content Certification, and Exhibit G Scope of Work/Budget (Application).

This grant award is funded by the U.S. Coast Guard from the Sport Fish Restoration and Boating Trust Fund CFDA 97.012, administered by California Department of Parks and Recreation, Division of Boating and Waterways. The Federal FY 25 award, 70Z02325MO0001818 to California; $5,443,096.

This is not a research and development grant.

Grantee: City of Morro Bay Harbor Department
Address: 1275 Embarcadero,
Morro Bay, CA 93422
Name of
Authorized
Representative:

Title of Authorized
Representative:

Authorized Signature:

Date:

Agency: Department of Parks and Recreation
Division of Boating and Waterways
ATTN: Johanna Naughton
Address: 4940 Lang Ave., Dock H,
Administration, Floor 12
McClellan, CA 95652
Authorized Signature:

Printed Name: Keren Dill
Title: Staff Services Manager II
Date:

Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 1 of 47

Page 72 of 173 ends

CERTIFICATE OF FUNDING
(FOR STATE USE ONLY)
GRANTEE: City of Morro Bay Harbor Department
GRANT TERM END DATE: September 30, 2033
GRANT TITLE: BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANT PROGRAM GRANT NUMBER: C25L0604
PURCHASE ORDER NUMBER:

NO
C25L0604

AMENDMENT NO SUPPLIER ID
0000038374

PROJECT NO
379065600200
AMOUNT

ENCUMBERED BY

THIS DOCUMENT
$32,689.96

FUND DESCRIPTION
Federal Trust Fund #0890

AGENCY BILLING CODE NO
053706

REPORTING

STRUCTURE
37900706
ITEM
3790-101-0890

CHAPTER
12 STATUTE
23 FISCAL YEAR
2025/26

BUSINESS UNIT
3790

ACCOUNT
5432000

ALT ACCOUNT ACTIVITY CODE
68918
Name of Project Representative:

Phone:

Email:

Page 73 of 173 ends

STATE OF CALIFORNIA
Department of Parks and Recreation, Division of Boating and Waterways PO Box 942896 Floor 12
Sacramento, CA 94296
_________________________________________________________________________________

BOATING SAFETY AND ENFORCEMENT EQUIPMENT (BSEE)
FISCAL YEAR 2025/26

PROJECT REPRESENTATIVES
State Agency:

Division of Boating and Waterways
Grantee (Agency Name):

City of Morro Bay Harbor Department
Name: Johanna Naughton Grantee Representative*: Lori Thompson Title: Program Administrator Title: Harbor Manager
Address:
4940 Lang Ave., Dock H, Administration, Floor 12
McClellan, CA 95652
Mailing Address:
1275 Embarcadero,
Morro Bay, CA 93422
Remit to Address:

Phone: (916) 902-8795 Phone: (805) 772-6254
Fax: Fax: (805) 772-6258
Email: [email protected] Email: [email protected] * Grantee representative information may only be changed by giving 30 days written notice to DBW.

Page 74 of 173 ends

EXHIBIT A

BOATING SAFETY
AND

ENFORCEMENT EQUIPMENT

GRANT AGREEMENT
City of Morro Bay Harbor Department
C25L0604
State of California
Department of Parks and Recreation
Division of Boating and Waterways
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 4 of 47

Page 75 of 173 ends

INDEX

DESCRIPTION PAGE

EXHIBIT A GRANT TERMS AND CONDITIONS

1. DEFINITIONS ................................................................................................................. 6

2. GENERAL ...................................................................................................................... 6

3. PAYMENT PROVISIONS AND DISBURSEMENT OF GRANT ....................................... 8

4.EQUIPMENT/PATROL BOAT OWNERSHIP ................................................................... 9

5. OPERATION AND MAINTENANCE OF EQUIPMENT/PATROL BOAT .......................... 9

6. TERMINATION OF GRANT AGREEMENT ..................................................................... 9

7. REVERSION OF EQUIPMENT/PATROL BOAT TO DEPARTMENT .............................. 10

8. LIABILITY ..........;.............................................................................................................. 10

9. WAIVER OF RIGHTS ..................................................................................................... 11

10. REMEDIES NOT EXCLUSIVE ........................................................................................ 11

11. OPINIONS AND DETERMINATIONS .............................................................................. 11

12. PROCUREMENT PROCEDURES ................................................................................... 11

13. DISPOSITION OF EQUIPMENT/PATROL BOAT ............................................................ 12

14. DISPOSITION OF PROCEEDS FROM SALE OF EQUIPMENT INSTALLED AND PARTIALLY FUNDED EQUIPMENT ..................................................................... 12 15. FEDERAL TERMS, CONDITIONS AND REGULATIONS ................................................. 12

16. COMPLIANCE WITH LAW, REGULATION AND POLICY ................................................. 12 EXHIBIT B GENERAL TERMS AND CONDITIONS ............................................................ 16 EXHIBIT C CONTRACTOR CERTIFICATION CLAUSES .................................................. 20 EXHIBIT D DOING BUSINESS WITH THE STATE OF CALIFORNIA ................................ 22 EXHIBIT E DARFUR CONTRACTING ACT ........................................................................ 24 EXHIBIT F RECYCLED CONTENT CERTIFICATION ........................................................ 26 EXHIBIT G SCOPE OF WORK/BUDGET (APPLICATION) ................................................ 27 Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 5 of 47

Page 76 of 173 ends

EXHIBIT A

GRANT TERMS AND CONDITIONS

1. DEFINITIONS
A. "DEPARTMENT": The Department of Parks and Recreation, Division of Boating and Waterways (DBW).

B. "EFFECTIVE DATE": The date the GRANT AGREEMENT face page is signed by the DEPARTMENT’.

C. "EQUIPMENT": Boating–specific equipment or other equipment used to implement or conduct boating safety and boating law enforcement activities.

D. "GRANT": Funds provided by the DEPARTMENT, from the federal Recreational Boating Safety (RBS) Grant, to the GRANTEE to finance all or part of the PURCHASE COSTS for items that assist in meeting the purposes of the Boating Safety Equipment and Enforcement (BSEE) and RBS programs.

E. "GRANT AGREEMENT": The contract to which these grant terms and conditions are attached.

F. "GRANT AGREEMENT TERM": The timeframe for which the GRANTEE must comply with the obligations and responsibilities identified in this GRANT AGREEMENT.

G. "GRANT PERFORMANCE PERIOD": The timeframe specified on the grant agreement face page which includes the agreement start date (effective date) and final date for purchasing and receiving equipment. .

H. "GRANTEE": The person or entity identified as the Grantee on the face page of the Agreement.

I. "GRANTEE FUNDS": Any funds provided by the GRANTEE for the purchase or operation and maintenance of the EQUIPMENT/PATROL BOAT.

J. "PATROL BOAT": A DEPARTMENT approved, registered vessel purchased for use in boating safety and law enforcement activities.

K. "PURCHASE COSTS": Those costs incurred by the GRANTEE in purchasing the EQUIPMENT/PATROL BOAT; such PURCHASE COSTS shall not include any operation or maintenance costs, nor any costs incurred prior to the EFFECTIVE DATE of this GRANT AGREEMENT, nor any indirect or overhead costs claimed by the GRANTEE.

2. GENERAL
A. The funding available in this GRANT shall not exceed the amount specified in this GRANT AGREEMENT and shall be used for the purchase of EQUIPMENT and/or PATROL BOAT for Boating Safety and Enforcement activities in accordance with all Exhibits incorporated and referenced herein.

B. GRANT AGREEMENT TERM shall begin on the GRANT PERFORMANCE PERIOD start date and shall continue for the following lengths of time after granted items are received by the GRANTEE unless terminated in accordance with the terms and conditions of this GRANT AGREEMENT: fifteen [15] years for PATROL BOATS and all registered vessels and seven (7) years for EQUIPMENT.

Page 77 of 173 ends

C. No amendment of the terms of this GRANT AGREEMENT shall be valid unless made in writing and signed by an authorized representative or designee of the DEPARTMENT and the GRANTEE.

D. No variation of the terms of this GRANT AGREEMENT shall be valid unless made in writing and signed by an authorized representative or designee of the DEPARTMENT.

E. Oral understandings are not binding on any of the parties.

F. EQUIPMENT/PATROL BOAT purchase shall be completed prior to the end of the PERFORMANCE PERIOD.

G. GRANTEE hereby certifies that the obligations created by this GRANT AGREEMENT do not violate the provisions of Sections 1090 to 1096 of the Government Code.

H. This GRANT AGREEMENT is not fully executed until signed by the DEPARTMENT.

Grantee may not make any purchases until GRANT AGREEMENT is fully executed and equipment specifications and cost estimates have been approved in writing by the DEPARTMENT.

I. GRANTEE hereby certifies that during the performance of this GRANT AGREEMENT, GRANTEE and any sub-grantees shall fully comply with State regulations regarding the implementation of Disabled Veteran business participation goals as set forth in Disabled Veteran Business Enterprise Participation Requirements, Recycling Certification and Contractor Certification Clauses.

J. GRANTEE shall continue with the responsibilities of this GRANT AGREEMENT during any dispute.

K. Failure by the GRANTEE to comply with the terms of any Department of Parks and Recreation grant agreement may jeopardize the grantee's ability to be awarded funding in future grant opportunities offered by the Department of Parks and Recreation.

L. Subvention agencies: GRANTEES participating in the DEPARTMENT’S Subvention Financial Aid Program acknowledge and certify that failure to fully spend subvention funding in the prior fiscal year will negatively impact the DEPARTMENT’S consideration of future grant applications from your agency for up to three (3) years.

M. Annual Reports: Grantee shall submit an Annual Report beginning August 31st, 2026 and each and every year by August 31 for the term of this agreement (15 years for registered vessels or 7 years for all other equipment). Reports shall include maintenance records, number of hours BSEE equipment is used, additional equipment or modifications of any equipment or patrol boats, any loss or damage to equipment or patrol boat and a summary of boating accident reports submitted during the reporting year. Failure to submit annual reports by the deadline may jeopardize future funding.

N. GRANTEE is required to participate in at least one (1) outreach event per year, such as Operation Dry Water, to conduct boating under the influence (BUI) checkpoints and educate boaters on the importance of boating sober. Grantee must identify what event it has participated in in its annual report.

O. GRANTEE shall submit accident reports to DBW within 30 days of responding to a boating accident in waterbodies within GRANTEE’S area of responsibility. Failure to do so may jeopardize future DBW and Department funding for up to five (5) years in accordance with HNC 656(d)(2).

Page 78 of 173 ends

P. GRANTEE, representatives, agents or employees shall not act or represent themselves as officers, employees or agents of the DEPARTMENT in the performance of this GRANT AGREEMENT.

3. PAYMENT PROVISIONS AND DISBURSEMENT OF GRANT
A. Reimbursements must be requested on GRANTEE’S official agency letterhead and include:
• Amount requested for reimbursement
• GRANT AGREEMENT number
• Statement of acceptance of the vessel or equipment and certification of meeting DBW’s approved specifications
• Certification that you complied with all procurement procedures outlined this agreement;
• Name of payee and address where payment is to be sent • Location of performance (where the equipment will be used) • Signature of the person authorized in the resolution or minute order to execute the agreement
• Copies of brand name, description, make, model and serial number • Proof of payment for purchase including invoices showing cost and sales tax • For all motorized vessels: Department of Motor Vehicle (DMV) proof showing the DEPARTMENT as the legal owner and GRANTEE as the registered owner
• Certificate of Origin for all PATROL BOATS and trailers.

B. GRANTEE shall request grant reimbursements no later than 60 days from GRANT PERFORMANCE PERIOD end date by mailing one (1) complete reimbursement request package to:

For FedEX, UPS and other overnight mail:

Division of Boating and Waterways
Attn: BSEE Grant Manager
4940 Lang Avenue Dock H
McClellan, CA 95652
For United States Post Office (USPS) mail:

Division of Boating and Waterways
Attn: BSEE Grant Manager
P.O. Box 942896, Administration, Floor 12
Sacramento, CA 94296
Or by emailing to the DBW assigned grant manager.

C. No funds shall be reimbursed for purchases made prior to the EFFECTIVE DATE of this agreement.

D. The DEPARTMENT shall have no obligation to disburse the GRANT unless and until the GRANTEE obtains the prior written approval by the DEPARTMENT of the type and cost of the EQUIPMENT/PATROL BOAT.

E. The DEPARTMENT will disperse the grant to the GRANTEE in arrears for the approved PURCHASE COST of the EQUIPMENT/PATROL BOAT
F. The DEPARTMENT may withhold any grant disbursement if the GRANTEE fails to comply with any of the provisions of this GRANT AGREEMENT.

Page 79 of 173 ends

4. EQUIPMENT/PATROL BOAT OWNERSHIP
The DEPARTMENT shall be the legal owner of the EQUIPMENT/PATROL BOAT. The GRANTEE shall be the registered owner of PATROL BOAT or any other registered vessels purchased with GRANT FUNDS. The GRANTEE shall not assign, mortgage, hypothecate or transfer its interest in the EQUIPMENT/PATROL BOAT without the prior written approval of the DEPARTMENT.

5. OPERATION AND MAINTENANCE OF EQUIPMENT/PATROL BOAT
A. The GRANTEE shall use the EQUIPMENT/PATROL BOAT for the purpose of promoting recreational boating safety and boating law enforcement and shall keep the EQUIPMENT/PATROL BOAT available for search and rescue operations and other projects or programs supported by the federal government provided that such use will not interfere with the program for which it was acquired (CFR 200.313.c.2) B. The GRANTEE shall be responsible for the costs of operating and maintaining the PATROL BOAT/EQUIPMENT for the GRANT AGREEMENT TERM; the DEPARTMENT shall not be liable for such costs.

C. The GRANTEE shall maintain the EQUIPMENT/PATROL BOAT in good repair according to all manufacturer recommendations and shall make all repairs necessary to keep EQUIPMENT/PATROL BOAT functioning through the term of the GRANT AGREEMENT.

D. The GRANTEE, at its own expense, shall repair or replace the EQUIPMENT/PATROL BOAT if it is damaged, destroyed or rendered useless prior to the end of the GRANT AGREEMENT TERM.

E. GRANTEE shall submit maintenance records to the DEPARTMENT with each annual report.

F. The GRANTEE shall seek DEPARTMENT approval for the purchase and installation of additional equipment or modifications to any registered vessel purchased with grant funds. Complete and accurate records of all such modifications shall be reported to the DEPARTMENT in the GRANTEE’S annual report and made available to the DEPARTMENT or authorized representative for inspection upon request.

G. Each GRANTEE shall report to the DEPARTMENT loss or damage to any equipment purchased with grant funds within 30 days of occurrence.

H. Each GRANTEE shall ensure that any PATROL BOAT/EQUIPMENT purchased with grant funds is operated solely by qualified Boating Safety and Boating Law Enforcement Officers. Operators must fully comply with GRANTEE’S documented training and certification requirements to be deemed qualified, which shall include, at a minimum, receipt of a California Boater Card.

I. GRANTEE shall obtain prior DBW approval before submitting requests for modification or survey of a grant-funded PATROL BOAT/EQUIPMENT to California Department of General Services (DGS).

6. TERMINATION OF GRANT AGREEMENT
A. Either DEPARTMENT or GRANTEE may unilaterally terminate this GRANT AGREEMENT if a material breach of the GRANT AGREEMENT is made by the other; such termination shall become effective NINETY [90] DAYS following the date of receipt by either the DEPARTMENT or the GRANTEE of a written notice of termination from the party initiating the termination.

B. The GRANTEE may terminate this GRANT AGREEMENT if the GRANTEE becomes financially or legally unable to comply with the terms and conditions of this GRANT Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 9 of 47

Page 80 of 173 ends

AGREEMENT; such termination shall become effective NINETY [90] DAYS following receipt by the DEPARTMENT of a written notice of termination from the GRANTEE.

C. The DEPARTMENT may terminate this GRANT AGREEMENT immediately and be relieved of any payments should the legislative body of the GRANTEE fail to appropriate GRANTEE FUNDS for purchase costs, if required, or if the GRANTEE fails to perform the requirements of this Agreement at the time and in the manner herein provided; such termination to become effective upon receipt by the GRANTEE of a written termination notice from the DEPARTMENT.

D. The DEPARTMENT has the option to void the GRANT AGREEMENT with 30 days’ notice in the event grant funds are not appropriated or amend the GRANT AGREEMENT to reflect any unexpected reduction of grant funds.

7. REVERSION OF EQUIPMENT/PATROL BOAT TO DEPARTMENT
If EQUIPMENT/PATROL BOAT is no longer needed or this GRANT AGREEMENT is terminated prior to the expiration of the term of the GRANT AGREEMENT:

A. The GRANTEE shall deliver, at no cost to the State, the fully functioning EQUIPMENT/PATROL BOAT to the DEPARTMENT for reassignment and shall execute any document(s) necessary to effect appropriate changes in pertinent public records; the reversion of registered title is hereby declared to be in addition to, and not in lieu of, any other remedies for breach of this GRANT AGREEMENT which may be available to the DEPARTMENT.

B. The GRANTEE shall be prohibited from receiving DEPARTMENT BSEE Grants for a period of three (3) years if EQUIPMENT/PATROL BOAT is not fully functional at time of termination.

8. LIABILITY
A. The GRANTEE waives all claims and recourse against the DEPARTMENT, including the right to contribution for any loss or damage arising from, growing out of or in any way connected with or incident to this GRANT AGREEMENT.

B. GRANTEE agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this GRANT AGREEMENT, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by GRANTEE in the performance of this Agreement. GRANTEE warrants, represents and agrees that it and its subgrantees, subcontractors, employees and representatives shall at all times comply with all applicable State contracting laws, codes, rules and regulations in the performance of this GRANT AGREEMENT.

C. If the DEPARTMENT is named as a co-defendant, the GRANTEE shall notify the DEPARTMENT and represent it unless the DEPARTMENT elects to represent itself. If the DEPARTMENT undertakes its own defense, it shall bear its own litigation costs, expenses and attorney's fees.

D. Insurance Coverage Requirements
(1) Vessel Insurance: GRANTEE shall maintain the necessary insurance for the full replacement value of vessels and equipment purchased with GRANT including fire, collision or sinking and all costs associated with removal and demolition. (2) Watercraft Liability: GRANTEE shall maintain watercraft liability with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 10 of 47

Page 81 of 173 ends

of the maintenance and use of watercraft.
(3) The policy must include:
"The State of California, its officers, agents, employees and servants as additional insureds, but only with respect to vessels and equipment purchased with this grant.”

9. WAIVER OF RIGHTS
It is the intention of the parties hereto that from time to time either party may waive certain of its rights under this GRANT AGREEMENT. Any waiver at this time by either party hereto of its rights with respect to a default or any other matter arising in connection with this GRANT AGREEMENT shall not be deemed to be a waiver with respect to any other default or matter.

10. REMEDIES NOT EXCLUSIVE
The use by either the DEPARTMENT or GRANTEE of any remedy specified in this GRANT AGREEMENT for the enforcement of this GRANT AGREEMENT is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

11. OPINIONS AND DETERMINATIONS
Where the terms of GRANT AGREEMENT provide for action to be based upon the opinion, judgment, approval, review, or determination of either the DEPARTMENT or GRANTEE, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

12. PROCUREMENT PROCEDURES
A. The GRANTEE must use procurement procedures that reflect applicable State and local public procurement laws and regulations, provided that the procedures conform to applicable Federal law and the standards identified in 2 CFR §200.318.

There shall be no changes, corrections, modifications or exceptions to DEPARTMENT approved specifications without advance written approval by the DEPARTMENT. Procurement procedures used by the GRANTEE must conform to State law and regulations regarding Disabled Veteran Business Enterprise Participation Requirements, Recycling Certification, AND CONTRACTORS CERTIFICATION CLAUSES. The GRANTEE is responsible, in its sole discretion, for the review of all bids for compliance.

B. Procurement for boats and other registered vessels must be conducted using Invitation for Bid and must adhere to the specific procurement standards identified by GRANTEE’S governing board regarding advertising, adequate purchase descriptions, sealed bids, and public openings.

C. EQUIPMENT AND ELECTRONICS PROCUREMENT PROCEDURES:

Grantee must obtain at least three (3) bids or rate quotations from qualified sources for each item that has a unit cost of $10,000 or more. The bids may be obtained over the phone but must be verified with written documentation from the vendor, and must include the make, model, size, name of vendor, date, and cost of item.

D. DEPARTMENT REVIEW
(1) GRANTEE must submit to the DEPARTMENT proposed technical specifications of PATROL BOATS and other registered vessels for review and approval prior to solicitation of bids.
(2) Grantees and sub-grantees must make available on request to the DEPARTMENT procurement documents, such as requests for proposals or Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 11 of 47

Page 82 of 173 ends

invitations for bids, independent cost estimates, etc. and must retain such documents for four years after equipment acquisition for auditing purposes.

13. DISPOSITION OF EQUIPMENT/PATROL BOAT
In accordance with 2 CFR 200.313 e.1 and 2, upon completion of the GRANT AGREEMENT TERM, GRANTEE must continue to use EQUIPMENT/PATROL BOAT as long as needed. If EQUIPMENT/PATROL BOAT is no longer needed, GRANTEE must receive approval from the DEPARTMENT. GRANTEE must deliver EQUIPMENT/PATROL BOAT to the California Department of General Services (DGS), Office of Fleet and Asset Management (OFAM) for sale at auction. DGS must complete an OFAM6 Form. Once DGS has completed the OFAM6, GRANTEE will submit the OFAM6 to the DEPARTMENT with an official letter requesting to surrender the vessel. The DEPARTMENT will provide the GRANTEE with an OFAM27 form and instructions for delivering the EQUIPMENT/PATROL BOAT to auction via email. GRANTEE will deliver the EQUIPMENT/PATROL BOAT and OFAM27 to the auction as instructed by the DEPARTMENT. GRANTEE shall have the OFAM27 signed at the auction and shall return the signed OFAM27 to the DEPARTMENT.

14. DISPOSITION OF PROCEEDS FROM SALE OF EQUIPMENT INSTALLED AND

PARTIALLY FUNDED EQUIPMENT
If the GRANTEE has contributed funding in excess of the GRANT to the PURCHASE COSTS of the EQUIPMENT/PATROL BOAT, and in the event of a sale of the EQUIPMENT/PATROL BOAT after the expiration or termination of this GRANT AGREEMENT or the reversion of the EQUIPMENT/PATROL BOAT to the DEPARTMENT, then the proceeds of the EQUIPMENT/PATROL BOAT sale shall be distributed between the DEPARTMENT and the GRANTEE in proportion to their respective contributions of the PURCHASE COSTS, e.g.: if the PURCHASE COSTS totaled $100,000 and the GRANT contribution amounts to $60,000, then the DEPARTMENT would receive 60 percent of the EQUIPMENT/PATROL BOAT sale proceeds and the GRANTEE would receive 40 percent.

15. FEDERAL TERMS, CONDITIONS AND REGULATIONS
This GRANT is funded by the Federal Recreational Boating Safety (RBS) Grant and as such, GRANTEE shall comply with all the governing regulations, namely 2 CFR 200 - the most applicable of which have been included here for reference. For clarity, “Non-federal entity” shall be understood to be “DEPARTMENT” and “Award” shall be understood to be “GRANT”.

GRANTEES are subject and must adhere to the provisions set forth in the 2020 DHS Standard Terms and Conditions which are available online at:
https://www.dhs.gov/sites/default/files/publications/fy20_dhs_standard_terms_and_condition s_v10.1_dated_12-31-2019.pdf and made a part of this agreement by reference.

GRANTEES are subject to and must adhere to the regulations set forth in the 2 CFR 200 available online at: https://www.govinfo.gov/content/pkg/CFR-2014-title2-vol1/pdf/CFR-2014- title2-vol1-part200.pdf and made a part of this agreement by reference.

16. COMPLIANCE WITH LAW, REGULATION AND POLICY
It is understood and agreed that the Grantee shall comply with all applicable laws and regulations of the State of California, U.S. Coast Guard Code of Federal Regulations: 2 CFR identified in section §§ 200.318 General Procurement standards through 200.326 Contract provisions, 50 CFR 80 and 50 CFR 85, Equal Opportunity (41 CFR 60-1.4(b)), Davis-Bacon Act, as amended (40 U.S.C. 3141-3148), Copeland “Anti-Kickback” Act (40 U.S.C. 3145), Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708), “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements” (37 CFR Part 401), Clean Air Act (42 U.S.C. 7401- Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 12 of 47

Page 83 of 173 ends

7671q.), and the Federal Water Pollution Control Act as amended (33 U. S.C. 1251-1387), Debarment and Suspension (Executive Orders 12549 and 12689), Byrd Anti-Lobbying amendment (31 U.S.C. 1352) and all policies of DBW.

A. MANDATORY DISCLOSURES
The non-Federal entity or applicant for a Federal award must disclose, in a timely manner, in writing to the Federal awarding agency or pass-through entity all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award. Failure to make required disclosures can result in any of the remedies described in §200.338 remedies for noncompliance, including suspension or debarment. (See also 2 CFR part 180 and 31 U.S.C. 3321).

B. ENHANCEMENT OF RECIPIENT AND SUBRECIPIENT EMPLOYEE

WHISTLEBLOWER PROTECTION
This award, related subawards, and related contracts over the simplified acquisition threshold and all employees working on this award, related subawards, and related contracts over the simplified acquisition threshold are subject to the whistleblower rights and remedies established at 41 USC 4712.

Recipients, their subrecipients, and their contractors awarded contracts over the simplified acquisition threshold related to this award, shall inform their employees in writing, in the predominant language of the workforce, of the employee whistleblower rights and protections under 41 USC 4712.

The recipient shall insert this clause, including this paragraph, in all subawards and in contracts over the simplified acquisition threshold related to this award.

C. EQUAL OPPORTUNITY CLAUSE
During the performance of this grant, the grantee agrees to sections i-vii below:
i. The grantee will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The grantee will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The grantee agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the granting officer setting forth the provisions of this nondiscrimination clause. ii. The grantee will, in all solicitations or advertisements for employees placed by or on behalf of the grantee, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. iii. The grantee will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency granting officer, advising the labor union or workers' representative of the grantee's commitments under section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 13 of 47

Page 84 of 173 ends

employees and applicants for employment.
iv. The grantee will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
v. The grantee will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the granting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
vi. In the event of the grantee's non-compliance with the nondiscrimination clauses of this grant or with any of such rules, regulations, or orders, this grant may be canceled, terminated or suspended in whole or in part and the grantee may be declared ineligible for further Government grants in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
vii. The grantee will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The grantee will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event the grantee becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the grantee may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the grant.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction grants or contracts pursuant to the Executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 14 of 47

Page 85 of 173 ends

upon grantees and contractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

Subcontracts. Each nonexempt prime contractor or subcontractor shall include the equal opportunity clause in each of its nonexempt subcontracts.

I. Incorporation by reference. The equal opportunity clause may be incorporated by reference in all Government contracts and subcontracts, including Government bills of lading, transportation requests, contracts for deposit of Government funds, and contracts for issuing and paying U.S. savings bonds and notes, and such other contracts and subcontracts as the Deputy Assistant Secretary may designate.

II. Incorporation by operation of the order. By operation of the order, the equal opportunity clause shall be considered to be a part of every contract and subcontract required by the order and the regulations in this part to include such a clause whether or not it is physically incorporated in such contracts and whether or not the contract between the agency and the contractor is written.

Adaptation of language. Such necessary changes in language may be made in the equal opportunity clause as shall be appropriate to identify properly the parties and their undertakings.

Page 86 of 173 ends

EXHIBIT B
General Terms and Conditions (GTC 04/2017)

1. APPROVAL:

This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor /GRANTEE may not commence performance until such approval has been obtained.

2. AMENDMENT:

3. ASSIGNMENT:

This Agreement is not assignable by the Contractor/GRANTEE, either in whole or in part, without the consent of the State in the form of a formal written amendment.

4. AUDIT:

Contractor/GRANTEE agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor/GRANTEE agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor//GRANTEE agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor/GRANTEE agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896).

5. INDEMNIFICATION:

Contractor/GRANTEE agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all GRANTEES, contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor/GRANTEE in the performance of this Agreement.

6. DISPUTES:

Contractor/GRANTEE shall continue with the responsibilities under this Agreement during any dispute.

7. TERMINATION FOR CAUSE:

The State may terminate this Agreement and be relieved of any payments should the Contractor/GRANTEE fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor/GRANTEE under this Agreement and the balance, if any, shall be paid to the Contractor/GRANTEE upon demand.

8. INDEPENDENT CONTRACTOR:

Contractor/GRANTEE, and the agents and employees of Contractor/GRANTEE, in the performance of this Agreement, shall act in an independent capacity and not as officers or Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 16 of 47

Page 87 of 173 ends

employees or agents of the State.

9. RECYCLING CERTIFICATION:

The Contractor/GRANTEE shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code §12205).

10. NON-DISCRIMINATION CLAUSE:

During the performance of this Agreement, Contractor/GRANTEE and its subcontractors shall not deny the contract’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. Contractor/GRANTEE shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination.

Contractor/GRANTEE and subcontractors 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 awarding state agency to implement such article.

Contractor/GRANTEE shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause.

Contractor/GRANTEE and its subcontractors 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.)
Contractor/GRANTEE shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement.

11. CERTIFICATION CLAUSES:

The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto.

12. TIMELINESS:

Time is of the essence in this Agreement.

13. COMPENSATION:

The consideration to be paid Contractor/GRANTEE, as provided herein, shall be in compensation for all of Contractor's/GRANTEE’S expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided.

Page 88 of 173 ends

14. GOVERNING LAW:

This contract is governed by and shall be interpreted in accordance with the laws of the State of California.

15. ANTITRUST CLAIMS:

The Contractor/GRANTEE by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor/GRANTEE shall comply with the requirements of the Government Codes Sections set out below. a. The Government Code Chapter on Antitrust claims contains the following definitions:
1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.
2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid.

Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554.

16. CHILD SUPPORT COMPLIANCE ACT:

For any Agreement in excess of $100,000, the contractor/GRANTEE acknowledges in accordance with Public Contract Code 7110, that:
a. The contractor/GRANTEE recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b. The contractor/GRANTEE, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

Page 89 of 173 ends

17. UNENFORCEABLE PROVISION:

18. PRIORITY HIRING CONSIDERATIONS:

If this Contract includes services in excess of $200,000, the Contractor/GRANTEE shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub.

Contract Code §10353.

19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS:
a. If for this Contract Contractor/GRANTEE made a commitment to achieve small business participation, then Contractor/GRANTEE must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) report to the awarding department the actual percentage of small business participation that was achieved. (Govt. Code § 14841.) b. If for this Contract Contractor/GRANTEE made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Contractor/GRANTEE must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) certify in a report to the awarding department: (1) the total amount the prime Contractor/GRANTEE received under the Contract; (2) the name and address of the DVBE(s) that participated in the performance of the Contract; (3) the amount each DVBE received from the prime Contractor/GRANTEE; (4) that all payments under the Contract have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.)

20. LOSS LEADER:

If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).)
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 19 of 47

Page 90 of 173 ends

EXHIBIT C

CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Grantee to the clause(s) listed below. This certification is made under the laws of the State of California.

Grantee Agency Name (Printed)
City of Morro Bay Harbor Department
Federal ID Number
95-2308629
By Authorized Signature:

Printed Name and Title of Person Signing
,
Date Executed Executed in the County of
San Luis Obispo

GRANTEE CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE:

Grantee has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 8103) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS:

18.10 Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace; 3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and, 2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION:

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT:

Grantee hereby certifies that Grantee will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Grantee agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the agreement equal to the lessor of 30 multiplied by the Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 20 of 47

Page 91 of 173 ends

number of full time attorneys in the firm’s offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its agreement with the State.

5. EXPATRIATE CORPORATIONS:

18.40 Grantee hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.

7. DOMESTIC PARTNERS:

For contracts over $100,000 executed or amended after January 1, 2007, the Grantee certifies that Grantee is in compliance with Public Contract Code section 10295.3.

Page 92 of 173 ends

EXHIBIT D

DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST:

Current State Employees (PCC 10410):
1) No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment. 2) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code §10411):
1) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.
2) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (PCC 10420).

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (PCC 10430 (e)).

2. LABOR CODE/WORKERS' COMPENSATION:

3. AMERICANS WITH DISABILITIES ACT:

4. GRANTEE NAME CHANGE:

An amendment is required to change the Grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment.

Payment of invoices presented with a new name cannot be paid prior to approval of said Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 22 of 47

Page 93 of 173 ends

amendment. Any changes of the Grantee’s representative shall be notified to DBW within 30 days written notice on Grantee’s letterhead.

Agencies will determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION:

7. AIR OR WATER POLLUTION VIOLATION:

8. PAYEE DATA RECORD FORM STD. 204:

This form must be completed by all Grantees that are not another state agency or other governmental entity.

Page 94 of 173 ends

The following sample Attachment may be included in an IFB or RFP to satisfy the Act’s certification requirements of bidders and proposers.

Page 95 of 173 ends

Exhibit E - DARFUR CONTRACTING ACT

If your company has not, within the previous three years, had any business activities or other operations outside of the United States, you do not need to complete this form.

Company/Vendor Name (Printed)
City of Morro Bay Harbor Department
Federal ID Number
95-2308629
By (Authorized Signature) Date
Printed Name and Title of Person Signing
,
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 25 of 47

Page 96 of 173 ends

EXHIBIT F

SUGGESTED LANGUAGE FOR RECYCLING CERTIFICATION
State law requires that state contracts shall have Recycling Certification in writing under penalty of perjury, the minimum, if not exact, percentage of recycled content, both post-consumer waste and secondary waste as defined in the Public Contract Code, Sections 12161 and 12200, in materials, goods, or supplies offered or products used in the performance of this Agreement, regardless of whether the product meets the required recycled product percentage as defined in the Public Contract Code, Sections 12161 and 12200. Contractor may certify that the product contains zero recycled content. (PCC 10233, 10308.5, 10354)

RECYCLED CONTENT CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws of the State of California.

Name and Title of Person Signing Date Executed
Authorized Signature Executed in the County of
San Luis Obispo
Title Telephone Number
Legal Business Name
City of Morro Bay Harbor Department
Federal ID Number
95-2308629
The Contractor hereby certifies under penalty of perjury, that the percent of the materials, goods, supplies offered, or products used in the performance of this contract meets the or exceeds the minimum percentage of recycled material as defined in Sections 12161 and 12200 of the Public Contract Code. The Contractor may certify that the product contains zero recycled content.

Page 97 of 173 ends

General
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ 1 Applicant Information
a. Applicant Name City of Morro Bay Harbor Department
b. Organizational Unit
c. Address 1275 Embarcadero
d. Address 2
e. City Morro Bay State CA Zip 93422
f. Federal ID Number 95-2308629 Unique Entity Id. KAFQZMM3M RA5
g. Agency Type
City County
State Agency District
Other Public Agency
2 Project Information
a. Project Name Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 b. Is implementing agency same as Applicant Yes No
c. Implementing Agency Name
d. Project Start Date Oct-01-2025 End Date Sep-30-2033
e. Amount of Funds Requested $32,689.96 Project Cost $32,689.96 Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 27 of 47

Page 98 of 173 ends

3 Contacts
a. Project Administrator
Name Lori Thompson
Title Harbor Manager
Mailing Address 1275 Embarcadero
City Morro Bay State CA Zip 93442
Telephone (805) 772-6254 - 256 Fax (805) 772-6258 -
256
E-mail Address [email protected]
Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 28 of 47

Page 99 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

1. Minimum Qualifications
This is a federal pass-through ‘Recreational Boating Safety Grant’. Priority for this grant are for the promotion of recreational boating safety and to decrease the number of accidents, injuries, and fatalities on U.S. waters.

Funding priorities for the Boating Safety and Enforcement Equipment Grant are for equipment that assists grantees in the following activities, in this order of priority:

1. Promoting recreational boating safety.

2. Enforcement of recreational boating safety laws

3. Search and rescue activities for recreational boaters.

4. Recovery of evidence for recreational boating accidents, injuries, and fatalities.

NOTE: Patrol and safety activities for swimmers, vehicle recovery, homeland security activities, and recovery of drowned bodies are not funding priorities under this federal grant.

Attach a Letter of Intent as required by Title 14, Section 6594.5. A template letter is in the ‘Show Documents’ area.
45821_0_457_Letter of
intent 2025 v2-1.pdf
As a subgrantee for this federal grant award, your agency must be registered in the Federal System of Award Management (https://www.sam.gov/SAM/pages/public/searchRecords/search.jsf) Your agency’s registration must be current in that system at the time you submit your application.

Attach a screenshot showing your registration is active. (A sample screenshot is available in the 'Show Documents' area)
45823_0_606_EntityInfo
rmation_20240716-
021836.pdf
The statements below refer
to
City of Morro Bay Harbor Department and confirm the
following:
1 a. Does your agency have an active Boating Safety and/or Boating Law Enforcement Patrol?
Yes No
1 b. What training and/or authorization does your
agency have to perform boating safety and/or
boating law enforcement in your jurisdiction?
(max. 1024 characters)
The City of Morro Bay Harbor Patrol Officers are required to complete all DBW classes available to our agency. Officers also complete PC 832 arrest and control training. Harbor Patrol Officers powers are pursuant to Section 836.5 of the California Penal Code and MBMC 15.44.010.
1 c. If awarded this grant, I hereby certify that the agency identified above will report all boating accident statistics as required in Section 656 of Harbors and Navigation Code for the grant term if awarded this grant? An agency's failure to submit a report may result in ineligibility of future DBW funding opportunities for up to five fiscal years.

Yes No
1 d. By checking the boxes below, I certify that that the agency identified above meets all the following criteria:

Your agency employs at least one boating safety law enforcement officer defined in California Code of Regulations, Title 14, Division 4, Chapter 1, Article 4.5.2 as trained personnel authorized and retained to perform on-the-water boating safety and boating law enforcement activities.

Your agency’s boating safety law enforcement officer(s) conducts sufficient patrol and has the jurisdiction and authority to ensure adequate enforcement, including arrest authority of all applicable state boating safety laws and regulations.

Your agency has the knowledge and means to properly report boating accidents to DBW.

If you cannot certify that your agency meets ALL of the above criteria, certify by checking the box below and filling out the remainder of 1d.

Page 100 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Your agency has a memorandum of understanding (MOU) with a law enforcement agency that has all of the above authorities and conducts all of these activities Identify the law enforcement agency:

Attach the MOU
1 e. Has your agency been out of compliance with the terms of any other Department of Parks and Recreation contract or agreement in the past 3 years? Yes No
If you responded 'Yes' to 1 e, please provide
an explanation
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 30 of 47

Page 101 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

2. California State Assembly Districts
Select one or more of the California State Assembly Districts where the proposed project activities will occur.

Copy and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your browser to determine the State Assembly district(s).

3. California Congressional Districts
Select one or more of the California Congressional Districts where the proposed project activities will occur.

Copy and Paste the URL (https://www.govtrack.us/congress/members/CA) in your browser to determine the Congressional district(s).

Congressional District 1 Congressional District 2 Congressional District 3 Congressional District 4 Congressional District 5 Congressional District 6 Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 31 of 47

Page 102 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Congressional District 7 Congressional District 8 Congressional District 9 Congressional District 10 Congressional District 11 Congressional District 12 Congressional District 13 Congressional District 14 Congressional District 15 Congressional District 16 Congressional District 17 Congressional District 18 Congressional District 19 Congressional District 20 Congressional District 21 Congressional District 22 Congressional District 23 Congressional District 24 Congressional District 25 Congressional District 26 Congressional District 27 Congressional District 28 Congressional District 29 Congressional District 30 Congressional District 31 Congressional District 32 Congressional District 33 Congressional District 34 Congressional District 35 Congressional District 36 Congressional District 37 Congressional District 38 Congressional District 39 Congressional District 40 Congressional District 41 Congressional District 42 Congressional District 43 Congressional District 44 Congressional District 45 Congressional District 46 Congressional District 47 Congressional District 48 Congressional District 49 Congressional District 50 Congressional District 51 Congressional District 52 Congressional District 53

4. County
Select one or more of the California Counties where the proposed project activities will occur.

Alameda Alpine Amador Butte Calaveras Colusa
Contra Costa Del Norte El Dorado Fresno Glenn Humboldt
Imperial Inyo Kern Kings Lake Lassen
Los Angeles Madera Marin Mariposa Mendocino Merced
Modoc Mono Monterey Napa Nevada Orange
Placer Plumas Riverside Sacramento San Benito San
Bernardino
San Diego San Francisco San Joaquin San Luis
Obispo
San Mateo Santa Barbara
Santa Clara Santa Cruz Shasta Sierra Siskiyou Solano
Sonoma Stanislaus Sutter Tehama Trinity Tulare
Tuolumne Ventura Yolo Yuba
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 32 of 47

Page 103 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

2. Citation Authority
2 a. Number of Full-Time Boating Safety and/or Boating Law Enforcement Officers do you have? A Boating Safety Law Enforcement Officer is defined in California Code of Regulations, Title 14, Division 4, Chapter 1, Article 4.5.2 as trained personnel authorized and retained to perform on-the-water boating safety and boating law enforcement activities.
5 2 b. Number of Part-Time Boating Safety and/or Boating Law Enforcement Officers (as defined in 2 a) do you have?
3 How many hours per year do they conduct on-the-water patrol and boating safety activities?
624
Is this work seasonal or continuous? Continuous

3. Does your boating safety and enforcement unit have citation authority? Yes No If YES, Authorizing Code # Section 836.5 of the
California Penal Code
and MBMC 15.44.010
a. How many boating safety related citations did your agency issue last calendar year?
10 b. How many boating accidents did your agency respond to in the last calendar year?
4 c. How many BOATING safety related Search and Rescue missions did your agency perform in the last calendar year?
17 d. How many boating drowning recovery missions did your agency perform last year?
1 4. Does your boating safety and enforcement unit have arrest authority? Yes No If YES, Authorizing Code # Section 836.5 of the
California Penal Code
How many boating related arrests did you conduct last calendar year? 0

5. How many outreach events with the general public did your agency participate in to promote boating safety education last calendar year? Please list the events and describe how boating safety was promoted.
8 5a.

Event Name Date of Event
What BOATING SAFETY information was
provided at this event?
Safe Boating Day 5/18/24 Boater card education and assistance. Safe boating practices. Lifejacket exchange.

Distributing pollution prevention kits. Information
on carriage requirements. Answers to local
boating questions.

Morro Bay Marine Swap Meet 6/29/24 Harbor Department and Coast Guard booth providing Boater Card information, local safe
boating practices, information on carriage
requirements, distributing spill prevention kits.

Harbor Patrol Junior Guard Days 6/12/24 This event happens four times per year. Harbor Patrol takes local junior guards out on our patrol
vessels and provides lectures on safe boating
practice, the importance of lifejackets, and safety
when in the water near a boat. During this time the
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 33 of 47

Page 104 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ junior guards receive a tour of our response area
and are educated on local boating conditions.

Marine flare collection and exchange
event
10/15/24 This outreach event assisted boaters in disposing of expired marine flares. The boaters were given
free of charge reusable electronic marine flares.

Flare carriage information was provided as well as
overall vessel safety equipment information.

Family Fun Day 10/12/24 This event is in conjunction with the Morro Bay Maritime Museum. Our department has a booth to
answer boating questions, hand out spill
prevention kits, and generate interest in boating for
the next generation.

Page 105 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION ________________________________________________________________________________________________________________ 6. Jurisdiction Table List all waterbodies that are in your jurisdiction and fill in the below chart for each Waterbody Size (area)
List all boating activities (e.g.fishing, water skiing, paddling,etc.) conducted on thiswaterbody.

How many
hours/year
is this
waterbody
patrolled by
your agency
Is theresharedjurisdictionon thiswaterbody?
If shared jurisdiction, list otheragency(s)
City of Morro Bay Harbor citylimits

5.2 squaremiles
Recreational and commercialfishing, general boating andsailing, paddle sports, sailingregattas, surfing, swimming, scubadiving, waterfowl hunting,commercial aquaculture. 3,650 Yes United States Coast Guard, California
Department of Fish and Wildlife.

Estero Bay/Pacific Ocean(limited)
66 square miles Recreational and commercial
fishing, general boating andsailing, paddle sports, sailingregattas, surfing, swimming, scubadiving. 3,650 Yes United States Coast Guard, California
State Parks, California Department ofFish and Wildlife, San Luis ObispoCounty Sheriff.

Morro Bay back bay 4 square miles Recreational and commercial fishing, general boating andsailing, paddle sports, sailingregattas, surfing, swimming, scubadiving, waterfowl hunting,commercial aquaculture. 3,650 Yes California State Parks, California Fish
and Wildlife.

Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 ________________________________________________________________________________________________________________ Page: 35 of 47

Page 106 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

7. Three RECREATIONAL BOATING safety issues
This is a Federal Pass-Through ‘Recreational Boating Safety Grant’. The purpose of the grant is to promote boating safety and to decrease the number of accidents, injuries, and fatalities on U.S. waters. Clearly identify three BOATING safety issues that affect recreational boaters in your jurisdiction. Your answer to this question will be referenced throughout this grant application.
1) Consistently Hazardous Conditions:

Morro Bay Harbor Department's jurisdiction is comprised of some of the most notoriously rough waters in California, with ~150 days per year of small craft advisory conditions and an average of ~30 days per year of hazardous harbor entrance conditions including large breaking surf in the navigational channel.

In addition, by way of mutal aid to neighboring jurisdictions, the Harbor Patrol responds to approximetly 40 square miles of ocean area, including approximetly 25 miles of rugged coastline, assisting the Coast Guard, State Parks, Cal Fire and County Sheriffs.

With ~450 year-round home ported vessels and ~3200 recreational vessels utilizing our public launch ramp in 2024, a great number of boaters and ocean users are potentially put in harm's way every year.

With no commercial tow service in 100 miles of either direction, we are also the only towing vessels to assist broken down boaters or vessels in distress in our jurisdiction. 2) High Volume of Recreational Water Craft
With annual visitation of approximatley 1.3 million people for a town of 10,000 residents, Morro Bay sees a high volume of inexperienced recreational users.

We have recreational fishermen heading offshore, as well as many kayakers and paddle craft in the bay or nearby ocean waters.

Our strong tides and oftentimes poor sea conditions can get the better of an inexperienced or uneducated boater and quickly turn into a emergency response situation.

With five kayak rental companies and two electric boat rental businesses, we are inundated year round with inexperienced boaters and paddle craft.

For example, on Saturday, August 3, 2024, our Officers responded to two seperate incidents of rental electric boats aground in the harbor, three capsized kayakers in the bay and 10 enforcement contacts with SUPs and kayakers regarding lifejacket carriage requirements. 3) Deficiency in Understanding of Boating Safety Laws and Best Practices Many recreational boaters are unaware of state and local laws on the water, even for things as simple as lifejacket and boater card requirements. We make it a priority to educate, warn and advise these boaters and if neccesary, take enforcement action to ensure safety and compliance.

We now have two different DBW supplied PFD loaner stations with signage available at our two most utilized launch locations. Despite these efforts, we conduct an average of four to six safety enforcement contacts regarding PFD carriage per day.

Page 107 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION ________________________________________________________________________________________________________________ 8. Inventory List all patrol boats, PWCs and inflatables in your current inventory (Local and State owned). Include boats awarded but not yet received yet.

Year Make CF Number
How many
hours/year is
this used?
What waterbodies is itused on?
Will thisboat besurplused ifawarded anew vessel?
Was thisvesselfunded by aDBW grant?
Is thisvesseloperational?
Is this vessel usedfor anything elsebesides patrolling. Ifso, explain. 2002 Radon 4398 XC 1,000 Morro Bay Harbor and
Pacific Ocean
No Yes Yes Marine firefighting,
search and rescue,environmental response
2004 Pacific 4662 XC 400 Morro Bay Harbor and
Pacific Ocean
No Yes No Search and rescue,
environmental response
2013 Radon 5532 XC 800 Morro Bay Harbor and
Pacific Ocean
No Yes Yes Marine firefighting,
search and rescue,environmental response
2018 Kawasaki 5929 XC 100 Morro Bay Harbor and
Pacific Ocean
No Yes Yes Search and rescue
2018 Kawasaki 5930 XC 100 Morro Bay Harbor and
Pacific Ocean
No Yes Yes Search and rescue
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 ________________________________________________________________________________________________________________ Page: 37 of 47

Page 108 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________

9. Project Type
Are you requesting a new Patrol Boat/PWC or Misc. Equipment.? New Patrol Boat/PWC - see definition below
Equipment / Repairs
NOTE: A “Patrol Boat” is defined as “A Department of Parks and Recreation, Division of Boating and Waterwaysapproved, registered vessel (with or without trailer and/or outboard motor) purchased for use in boating safety and law enforcement activities.” VERIFY THAT YOUR REQUEST IS CORRECTLY CLASSIFIED. Failure to correctly classify may result in disqualification of your grant application. * All items purchased with funding provided by the Division of Boating and Waterways are for the exclusive use of the Boating Safety and Enforcement Unit.

Page 109 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Misc Equipment Instructions

PLEASE READ THE FOLLOWING CAREFULLY
ENTER INFORMATION IN THIS SECTION ONLY IF YOU SELECTED 'MISC. EQUIPMENT' AS A PROPOSAL TYPE
IF YOU DID NOT SELECT 'MISC. EQUIPMENT' AS A PROPOSAL TYPE, CLICK ON THE NEXT TAB TO

NAVIGATE TO THE NEXT SECTION
Misc. Equipment Items

11. Describe what you are requesting. You may request only FIVE ITEMS TOTAL (patrol boat and equipment). You may group "like items”. “Like items” are related items that work together. You need one to work with the other.

Examples of “like items” include a ‘FLIR and delivery’, ‘replacement boat seat and tax’ or ‘GPS and screen’.

DBW may fund up to 50% of the total cost of fire suppression equipment.

NOTE: Supplies and consumables (i.e: rope, water bottles, cleaning supplies, hardware) are not funding priorities.

Item / Group Name Cost
Quantit
y Total Priority
List specific items that
are in the grouped 'like'
items. Include itemized
list with cost and
quantity.

Attach
one
quote
for each
item in
this
section
Outdrive equipment
replacement
32,689.96 1.00 32,689.96 First 2 MerCruiser outdrive at $11,063.16 per unit. 2
MerCruiser transom
assemblies at $5,371.45 per
unit
45776_0
_26_Gra
nt
quotes.p
df
TOTAL 32,689.96
Misc. Equipment Items Questions (Outdrive equipment replacement)

11. Item Details
11 a. Is this equipment general all-purpose gear? NOTE: person-specific and fitted items will not be funded.

Yes No
11 b. Describe exactly what is being requested and how this equipment will help mitigate the recreational boating safety issues you identified in Question 7. If the requested quantity is more than one for any item, explain the need for multiple items. (max. 2000 characters)
Morro Bay Harbor Department is requesting $32,689.96 to purchase two replacement transom assemblies and two outdrives for our 26' Radon (CF 4398 XC) patrol vessel. This vessel is one of the department's primary enforcement and search and rescue assets conducting the most patrol hours of our fleet. The current outdrives and transom assemblies have been deemed un-serviceable by our department's mechanic due to significant corrosion from electrolysis. Utilizing this vessel for emergency response in rough open water is not recommended at this time. Our request is for two of each item as the vessel is twin engined and both outdrives and transom assemblies require replacement due to the corrosion.

Our main fleet of twin engine vessels is imperative to our ability to safely respond to the volume of calls and issues from the recreational boaters and other users of the often dangerous waters in and Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 39 of 47

Page 110 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ adjacent to our jurisdiction. Morro Bay Harbor Patrol conducted ~45 search and rescue cases in 2024 with the majority occurring in open water or in the surf zone. With the limitations of the vessel in question, open-ocean response is hampered during maintenance period of our now primary vessel.

Due to the fact that waters in our jurisdiction can see a large volume of inexperienced or undereducated boaters of all types, the safety of these boaters is a high priority and we strive to ensure their safety through heavy preventative public contacts, including education, equipment and operation violation enforcement. We work in conjunction with the US Coast Guard to enforce safety and other infractions that would potentially lead to situations threatening the loss of life and/or property. Having this vessel back in full service with the replacement equipment requested will allow us to continue to make these preventative educational and enforcement contacts year round. 11 c. Describe any negative impacts to boating safety and/or boating enforcement if your agency does not receive its requested grant award.

Without the replacement of the requested outdrive equipment, search and rescue and enforcement operations will be hampered. Furthermore, during maintenance periods for our now primary vessel, some search and rescue missions may go without Harbor Patrol response. Some of the maintenance windows for our now primary response vessel can be planned around low traffic times of year, but there are always unexpected break downs which can take a significant amount of time for repairs. Our department is a full-time, year-round boating safety and enforcement unit that the public relies on for well-trained and well-equipped first responders to provide assistance at all times.

As stated earlier, the waters of our jurisdiction see ~3200 annual recreational vessel launches, 450 full time recreational vessels in the harbor, hundreds of transient vessel visits and thousands of other small paddle craft and users on the water annually. This means any break in our ability to conduct all aspects of our mission could put lives at stake.

Morro Bay Harbor Department is not eligible and/or competitive for many Federal or other funding resources such as the Homeland Security Stonegarden grants because our boating safety officers are not armed, fully-sworn peace officers. Furthermore, the small size of our department and harbor and the lack of significant commercial shipping activity and other security concerns is also a limiting factor in the types of funding we can receive. 11 d. Classify this request
Classify this request by choosing one of the following options and present a strong justification for the request
"Critical" (operations would cease without it)
"Increased efficiency" (if it would save staff time, identify how much time) "Convenience" (it would make life a little easier)
"Protection" of existing equipment (ex: shade tents, hoists to get the vessels out of the water, etc. to extend longevity)
Justify your classification of this request. (max. 300 characters) Without the replacement of the outdrive equipment on this vessel, our patrol fleet will be down to one allconditions capable vessel with no suitable spare for maintenance or break downs. New equipment ensures safe, rapid response times, protects public safety, and maintains operational readiness.

Percentage of time on the water this equipment will be used for:

Activity Percentage
Boating Safety Activities 65
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 40 of 47

Page 111 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Search and Rescue Activities 25
Other Activities 10
TOTAL 100.00
List any other activities this equipment will be used for: (max 300 characters) The vessel this equipment is requested for is occasionally used for environmental and wildlife assistance as well as junior lifeguard activities. This vessel is also used for A-B tows in our harbor as there are no vessel assist services in Morro Bay.
11 e. If you are not awarded your full request, would your agency be able to supplement the difference?
Yes No
If yes, what percentage can you supplement? 10
11 f. What other capabilities exist in your region for this equipment? Justify why it is not feasible to borrow this equipment from a neighboring agency.

Morro Bay Harbor is isolated along the Central Coast of California with the closest safe harbors being 100 miles to the north or south. While Morro Bay does have an active Coast Guard station, their mission set deviates from Harbor Patrol's enforcement of California boating law and regular patrol of our jurisdiction. As a Federal agency, Coast Guard is not able to lend any asset to Harbor Patrol.

Morro Bay has a large Fish and Wildlife vessel docked in the harbor and occasionally staffed with Wardens. Those Wardens' mission set is far different than Harbor Patrol's and while they are willing to assist occasionally, this can not be expected often. Fish and Wildlife is also unable to loan equipment to Harbor Patrol as this has been attempted in the past.

Morro Bay also lacks any form of commercial towing services. This leaves Harbor Patrol to take on this roll, which is critical to assist and aid recreational boaters.
11 g. How and why was this particular model selected? Explain if this is standard equipment or do you need something specialized for your waterbody to meet your agency's needs? List less expensive models considered and explain why they are not being requested. List other funding sources available to your agency that could be used to purchase or partially purchase this equipment.

Harbor Patrol selected MerCruiser brand equipment because it is a direct replacement of the OEM equipment installed on our patrol boat. Also, the fact that MerCruiser brand parts are off the shelf standard equipment used on thousands of boats state wide meaning the purchasing cost is lower then specialized equipment and service parts are readily avalible.

Harbor Patrol is able to obtain MerCruiser parts and equipment at a discounted price due to our purchasing agreement with Brunswick, MerCruiser's parent company, for materials and parts for our harbor's day to day operations.

Morro Bay is not eligible and/or competitive for many federal or other funding resoureces such as the Homeland Security grants as our boating safety officers are not armed, fully-sworn peace officers. Furthermore, the small size of our department and harbor and lack of significant commercial shipping acitivty and other security concerns is also a limiting factor in the types of funding we can receive.

Misc. Equipment - Informational
11 h. What body(s) of water will this equipment be used on? Pacific Ocean in Harbor Patrol's jurisdictions and neighboring jurisdictions. Morro Bay Harbor city limits and the back bay of Morro Bay.
11 i. How many hours per month on average will this equipment be used for Boating Safety Enforcement? Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 41 of 47

Page 112 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ May through September
0-25 hours per month 26-100 hours per month
101-250 hours per month 251+ hour per month
October through April
0-25 hours per month 26-100 hours per month
101-250 hours per month 251+ hour per month
11 j. Will this equipment be used for anything besides Recreational Boating Safety Enforcement (ie. Junior lifeguard, swimming rescues, enforcing commercial events or other activities, etc.)?
Yes No
If YES, complete the table below
List Other Activity (NOT RECREATIONAL

BOATING RELATED ACTIVITY)
Hours per month on
average this
equipment will be
used for other activity
Junior lifeguard 2
Surf rescue 8
Marine events 2
Enviromental missions 8
Percentage of time per year this piece of equipment will be used for the following activities. *Estimate the total time this equipment may be used for boating safety activities in a calendar year based on historical data. DBW may verify this information using accident data. Failure to report time correctly in the following chart may result in disqualification of your grant application.

Activity
Average hours
per year this
equipment will
be used
Percentag
e of time
Boating Patrol 1,460.00 80.89
Search and Rescue Activities 300.00 16.62
Accident Investigation 20.00 1.11
Recovery 5.00 0.28
Other Activities (list below) 20.00 1.10
TOTAL: 1,805.00 100.00
List any other activities this equipment will be used for: (max 300 characters) The vessel this equipment is requested for is occasional used for environmental and wildlife assistance as well as junior lifeguard activities. This vessel is also used for A-B tows in our harbor as there are no vessel assist services in Morro Bay.
11 k. Select the PRIMARY purpose this equipment will be used for:

Search and rescue
Enforcement of state and local measures
Inspection of vessels
Supervising organized water events
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 42 of 47

Page 113 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ 11 l. If Search and Rescue is the primary purpose, list the activity and the number of boating-related emergencies this equipment would have been used for last year doing that activity. Do not include NON-BOATING emergencies (i.e: those related to swimmers)

BOATING-RELATED ACTIVITY

NUMBER OF TIMES

NEEDED LAST YEAR
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 43 of 47

Page 114 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ 12 Previous BSEE Grants
FY 23/24 FY 22/23 FY 21/22
Did your agency apply for a BSEE grant ? No No Yes
Were you awarded a BSEE grant? (leave blank if
No)
Yes
Amount awarded: (List amount or leave blank if
No or NA)
85,000
Amount spent: (List amount or leave blank if No
or NA)
85,000
List the equipment purchased: (List leave
blank if No or NA)
Surplus Patrol boat
from a neighboring
agency.

Boating Safety and Enforcement Income

13. Revenue and Expenditures
Boat Tax Revenue 6,929.54
Other Revenue:
a) Other local revenue sources: (Example: launching
facilities, campgrounds, parking, anything that goes
toward marine patrol support)
494,997.89
b) Any State boating funding sources, including DBW
subvention/financial aid:

0.00 TOTAL ANNUAL BOATING INCOME IN YOUR OPERATING
BUDGET
501,927.43

TOTAL EXPENDITURES FOR BOATING SAFETY AND

ENFORCEMENT
1,301,576.13

14. If you participated in the subvention/financial aid program, were all allocated funds expended in the previous closed year?
Yes No NA
If NO, state percentage of remaining funds.

Page 115 of 173 ends

Budget Detail for Boating Safety and Enforcement Equipment Grant - FY 2025 / 26

Agency: City of Morro Bay Harbor Department

Application: Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 ________________________________________________________________________________________________________________ Line Item Qty Rate UOM Total Req Amount 1 Patrol Boat2 Equipment
Outdrive equipment replacement 1.0000 32689.960 32,689.96 32,689.96 3 Adjustment
TOTAL EXPENDITURES 32,689.96 32,689.96
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 ________________________________________________________________________________________________________________ Page: 45 of 47

Page 116 of 173 ends

Budget Summary for Boating Safety and Enforcement Equipment Grant - FY 2025 / 26

Agency: City of Morro Bay Harbor Department

Application: Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 ________________________________________________________________________________________________________________ Category Total Req Amount Narrative 1 Patrol Boat 0.00 0.002 Equipment 32,689.96 32,689.963 Adjustment 0.00 0.00 TOTAL EXPENDITURES 32,689.96 32,689.96
Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26 ________________________________________________________________________________________________________________ Page: 46 of 47

Page 117 of 173 ends

Exhibit G - BOATING SAFETY AND ENFORCEMENT EQUIPMENT GRANTEE APPLICATION __________________________________________________________________________ Applicant Certification
a. Under penalty of perjury, I certify that I have examined this application and the document(s), proposal(s), and statement(s) submitted in conjunction herewith, and that to the best of my information and belief, the information contained herein is true, accurate, correct, and complete. b. I certify that I am the person authorized to submit this application on behalf of the applicant.

Name: Lori Thompson
Title: Harbor Business Manager
Date Signed: 04/30/202
5 Date: 09/23/2025 Contract # C25L0604, City of Morro Bay Harbor Department, Boating Safety and Enforcement Equipment Grant - FY 2025 / 26
__________________________________________________________________________ Page: 47 of 47

Page 118 of 173 ends

Prepared By: _EV________ Dept Review: _AS____
City Manager Review: ___AL____ City Attorney Review: _BS__ Staff Report
TO: Honorable Mayor and City Council DATE: September 30, 2025 FROM: Erik Valentine, Associate Planner
VIA: Airlin Singewald, Community Development Director
SUBJECT: Determination of Public Convenience or Necessity for ABC License – 640 Quintana Road, Morro Bay Cigarettes, Inc.

RECOMMENDED ACTION
Do not make findings to support the Determination of Public Convenience or Necessity (PCN) that would allow the sales of alcohol with use of a Type 21 – General license for Morro Bay Cigarettes, Inc. at 640 Quintana Road.

ALTERNATIVES
City Council may choose to make the Determination of Public Convenience or Necessity and approve the request to allow sales of alcohol for an off sale general Type 21 license at 640 Quintana Road with certain conditions placed on the approval.

FISCAL IMPACT
A Determination of Public Convenience or Necessity for an ABC license would allow Morro Bay Cigarettes to sell beer, wine, and distilled spirits to their customers. These sales would be subject to sales tax. Additionally, the determination of PCN would likely increase the number of calls to service to the area for the Morro Bay Police Department. In the last year the Police Department has received over 150 calls to service in the immediate vicinity of the business for events related to loitering, under the influence behavior, and excessive noise. The sale of alcohol at this location will likely see this number increase.

BACKGROUND/DISCUSSION
Morro Bay Cigarettes, LLC has applied for a Type 21 – Off-Sale General license through the California Department of Alcoholic Beverage Control (ABC). A Type 21 license would allow the business to sell beer, wine, and distilled spirits to their customers for off-site consumption.

ABC has identified this area of the City as having an overconcentration of alcohol sales licenses triggering a requirement for the applicant to obtain a letter of support from the City in favor of a Determination of Public Convenience and Necessity for issuance of the ABC license in this location.

Per ABC’s standards, one (1) license is allowed in this census tract, but there are currently three (3).

AGENDA NO: 6.f
MEETING DATE: October 14, 2025

Page 119 of 173 ends

CONCLUSION
Morro Bay Cigarettes, LLC is located in the Cypress Plaza, off Quintana Road. The Plaza is a highly used shopping center for residents and visitors to shop for all their needs in one convenient location.

However, this area is also a high crime area related to alcohol possession/under the influence, loitering, theft, panhandling, shoplifting, and public disturbances, as Chief Watkins references in her letter (Attachment 1). Chief Watkins consulted neighboring business owners on their thoughts about Morro Bay Cigarettes, Inc. obtaining an ABC license. Half of these business owners had no concerns, while the other half voiced major concerns about the impact it would have on loitering and other crime activities in the shopping plaza and surrounding neighborhood. Additionally, the stated purpose of the business in achieving a Type 21 license is to increase revenue, with no information being provided as to how the sales of alcohol would benefit the community and/or the public by convenience or necessity. For these reasons, the Community Development Department concurs with Chief Watkins and does not support the request to receive an ABC license at this location.

Should the Council decide to make the Determination of Public Necessity or Convenience, staff recommend forwarding certain conditions to the Department Alcoholic Beverage Control (ABC), which they would then be required to enforce. Such conditions could include, but are not limited to:

1. There shall be no exterior advertising or sign of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages.

2. The petitioner(s) shall post a prominent, permanent sign stating, “NO LOITERING IS ALLOWED ON OR IN FRONT OF THESE PREMISES” in a place that is clearly visible to patrons of the licensed premises. The sign shall be at least two feet square with at least twoinch block lettering.

3. Petitioner(s) shall actively monitor the area under their control in an effort to prevent the loitering of persons on any property adjacent to the licensed premises as depicted on the most recently certified ABC-257.

4. Any graffiti painted or marked upon the premises or on any adjacent area under the control of the licensee(s) shall be removed or painted over within 48 hours of being applied.

5. No beer or malt beverage product(s) shall be sold, regardless of container size, in quantities of less than six per sale.

6. No distilled spirits shall be sold in bottles or containers of less than 500 ML.

7. No wine shall be sold in bottles or containers of less than 750 ML.

The intent of the conditions would be to hopefully minimize the impact of additional alcohol sales on the surrounding businesses and community. Should this alternative be pursued, the Council would also need to identify findings supporting a Determination of Public Necessity or Convenience. Past findings in support have included City goals of developing ways to attract new businesses and no significant concerns regarding new alcohol sales at the requesting location. Because there are significant concerns regarding additional alcohol sales at this location, staff is recommending that the Council not make findings to support a Determination of Public Necessity or Convenience for issuance of the requested ABC license at this location.

ATTACHMENT

1. Draft Letter from Chief Watkins

Page 120 of 173 ends

October 14, 2025
Morro Bay Cigarettes, Inc.
640 Quintana Rd.

Morro Bay, CA 93442
Dear Morro Bay Cigarettes, Inc.,
This letter is to inform you of my decision regarding the Public Convenience Necessity (PCN) requirement as is relates to your ABC application for the Off-Sale License Type-21 for your business at 640 Quintana Rd., Morro Bay Cigarettes, Inc.

I have reviewed the documents presented to the City Office of Community Development regarding the benefit and need for an Off-Sale Type-21 license. I also made a visit to the business at 640 Quintana Rd. and asked some specific questions to help show the necessity for the sale of alcohol at this location. The following is my determination based on the review and evaluation of all available and relevant information.

At this time, I cannot support the Type-21 license request as I do not find articulable facts that support the PCN in this case. My decision is based on the following factors:

1. The purpose of the sale of alcohol is to increase revenue for the business.

2. No information has been provided as to how the sales of alcohol would benefit the community and/or the public by convenience or necessity.

3. The 600-700 block of Quintana Rd. is a high crime area related to alcohol possession/under the influence, loitering, theft, panhandling, shoplifting, and public disturbances. From September 14, 2024, to September 1, 2025, the police department has responded to 140 calls related to the above-listed activity.

4. The census tract contains a Community Center, Public Library, Charter School, and Church.

5. Neighboring businesses in the 600 block of Quintana Rd. were contacted regarding the Off-sale Type 21 license. Six businesses were consulted with; the result was 50% approved with no concerns and 50% had major concerns about the impact on loitering and other crime activities.

6. A strong objection was given by the San Luis Obispo County Department of Social Services to the off-site alcohol sales over concern for employee safety because of ongoing loitering and crime in the area.

Please feel free to contact my office if you have any questions (805)772-6225.

Sincerely,
Amy Watkins
Chief of Police

Page 121 of 173 ends

Prepared By: __DM________ Dept Review: ___DM_____
City Manager Review: ___AL_____ City Attorney Review: BS___ Staff Report
TO: Honorable Mayor and City Council DATE: September 30, 2025 FROM: Daniel McCrain, Fire Chief
SUBJECT: Letter of Interest from LOCSD regarding shared fire protection and emergency medical services

RECOMMENDED ACTION
Authorize City staff to prepare a response to the letter of interest exploring shared fire and EMS services.

ALTERNATIVES

1. Respond to letter of interest that the City of Morro Bay chooses not to explore shared services.

2. Provide alternate direction.

FISCAL IMPACT
Staff time to evaluate feasibility of shared services and prepare a response.

BACKGROUND
Currently the Los Osos Community Services District (“LOCSD”) contracts for fire protection and emergency medical services with CAL FIRE/ San Luis Obispo County Fire. Rising costs for these services has prompted the LOCSD Board to direct staff to explore alternative service delivery models that may better meet the needs of their community. The Morro Bay Fire Chief and Interim City Manager received a letter of interest from the LOCSD General Manager Ron Munds on Friday September 19, 2025. The content of this letter of interest was a request to explore the possibility of the LOCSD contracting with the City of Morro Bay for fire protection and emergency medical services.

Exploratory discussions preceding the receipt of this letter suggest a partnership of shared services may be mutually beneficial for both communities. Some of the potential benefits include opportunities for service level enhancements for both agencies, improved operational efficiencies due to shared policies and procedures, greater local control over operations, and shared costs for administrative functions may result in cost savings for the City of Morro Bay.

An initial response to this request would require meeting with LOCSD Staff to define the scope of shared services, determining a process of implementation, outlining financial liabilities and identifying obstacles or barriers to this process. A future item would be brought back to the Morro Bay City Council for consideration before any action is taken to pursue entering into a contract with the LOCSD AGENDA NO: 6.g
MEETING DATE: October 14, 2025

Page 122 of 173 ends

for the City to provide such services.

ATTACHMENT(S)

1. Letter of interest from Los Osos CSD

Page 123 of 173 ends

Letter of Interest: Shared Fire Protection and Emergency Medical Services
September 19, 2025
Dear Ms. Lueker and Chief McCrain,
The Los Osos Community Services District Board of Directors has been actively evaluating how best to provide high-quality fire protection and emergency medical services for our community. For over two decades, the District has contracted with County Cal Fire for these essential services.

However, recent sharp increases in contracted service costs—and persistent challenges in resolving operational and fiscal issues with the County—have prompted the Board to direct staff, as of September 4th, to seek alternative service models that better meet Los Osos’ needs.

One promising strategy is a partnership with a neighboring agency. The City of Morro Bay, as our closest neighbor, represents the most logical and mutually beneficial partner for a shared approach to fire protection and EMS. Exploratory discussions suggest the following potential benefits for our communities:
• Shared administrative costs and substantial cost savings to Morro Bay
• Greater local control over operations and standards
• Increased operational flexibility
• Collaborative staff scheduling to maximize coverage and efficiency • Opportunities for service level enhancements for both agencies Los Osos Community Services District is eager to begin a dialogue with the City of Morro Bay to examine the feasibility of a joint service arrangement and welcomes the opportunity to discuss possible models and mutual advantages in detail.

We look forward to your consideration and to a discussion about how our communities might work together to preserve and enhance fire protection and emergency medical services.

Sincerely,
Ron Munds
General Manager
Los Osos Community Services District
President
Christine M. Womack
Vice President
Matthew D. Fourcroy
Directors
Charles L. Cesena
Tom Cross
Richard Hubbard
General Manager
Ron Munds
District Accountant
Robert Stilts, CPA
Unit Chief
John Owens
Battalion Chief
Paul Provence
Mailing Address:

P.O. Box 6064
Los Osos, CA 93412
Offices:
2122 9th Street, Suite 110
Los Osos, CA 93402
Phone: 805/528-9370
FAX: 805/528-9377
www.losososcsd.org

Page 124 of 173 ends

Prepared By: ___DS__ Dept Review:____________
City Manager Review: ___AL___ City Attorney Review: ___BS_____ Staff Report
TO: Honorable Mayor & City Council DATE: October 6, 2025 FROM: Dana Swanson, City Clerk
SUBJECT: Advisory Board Interviews and Citizens Oversight/Finance Advisory Committee Appointment

RECOMMENDED ACTION
Conduct interviews and make an appointment to fill an unscheduled vacancy on the Citizens Oversight/Finance Advisory Committee (“CFAC”) and extend the term end date to January 31, 2028.

ALTERNATIVES
The Council may choose not to fill the vacancy and direct staff accordingly.

BACKGROUND/DISCUSSION
On August 27, 2025, Sarah Love announced she and her husband are moving to Cayucos, thereby resigning her seat on the CFAC which requires all members to be residents and registered voters in the City of Morro Bay. Notices the City was accepting applications to fill this unscheduled vacancy were placed on the City website and “e-notification” service, published in the Estero Bay News, listed in the annual Local Appointments List (Maddy Act Notice) posted in the City Hall and Library kiosks, and distributed via City’s Facebook page. Two applications were received during the September 5 – October 3, 2025 recruitment period.

The following individuals submitted applications (Attachment 1) for consideration by the City Council.

1. Barry Branin

2. Michael Jones
The current makeup of the CFAC provides three of the five members’ terms expire January 31, 2026, including the seat recently vacated by Sarah Love. It is not recommended to have a majority of the members term out at once, so staff recommends extending the term for this unscheduled vacancy to January 31, 2028, so the newly selected member serves at least two full years and to balance out the term end dates for this Committee.

AGENDA NO: 8.a
MEETING DATE: October 14, 2025

Page 125 of 173 ends

Following interviews, the Council may make the appointment either by motion, second and voice vote or the Council may vote by written ballot with the results announced and each vote read into the record by the City Clerk.

ATTACHMENTS & REFERENCE DOCUMENTS

1. Applications

2. Link to current Local Appointment List

3. Link to Advisory Body Handbook & By-laws

4. Link to Council Policies & Procedures Manual

Page 126 of 173 ends

Application Review, Sep 29, 2025
Citizens Finance Advisory Committee
City of Morro Bay
Personal Info
Phone number
(other)
Email
Address
--
Social Media
--Websites
--
Source
Applied through your website's jobs page
Responsibility
Recruiter
Rachael Hendricks
Coordinator
--
Barry Branin
Candidate Application
Job Post Questions
I would like to be considered for appointment to the following Commission/Advisory Body:

Citizens Finance Advisory Committee
Please provide your residential address.

Are you registered to vote in the City of Morro Bay?
Yes
What's your highest level of education, institution name, and field of study? BSMechanical Engineer, BSBusiness Admin, Oregon State University Are you currently or have you previously served on a board, commission, committee, or other public body? If yes, which one and when? What do you feel were the advisory body’s major accomplishment(s) during your tenure? Never selected
1 Powered by Greenhouse

Page 127 of 173 ends

What experience, technical training and skills qualify you for an appointment, considering your experience and activities in business, labor, professional, social, or other organizations?
I have owned a number of successful businesses and owned numerous residential and commercial properties.

As a graduate Engineer I understand the operations of the city’s water and sewer system.

As a graduate Business Adminstration major I have operated numerous rental properties and have operated a couple of multimillion dollar service businesses.

Why are you interested in serving on this advisory board, commission, or committee? I feel I can contribute to the analysis and planing for the future controlled growth of Morro Bay I have read the Advisory Bodies Handbook regarding the expectations and responsibilities of this Commission/Advisory Board/Committee and, should I be appointed, am able and willing to devote the necessary time to perform the required duties. https://www.morrobayca.gov/DocumentCenter/View/8325/Advisory-Bodies-Handbook-and-By-Laws?bidId= Yes
2 Powered by Greenhouse

Page 128 of 173 ends

I would like to apply for the CFAC.

I am familiar with most of the cityâ€™s functions and have attended many Council meetings and a few CFAC meeting.

I have owned a number of successful businesses and currently own commercial properties in Morro Bay.

We have owned our home in Morro Bay for about 30 years.

Page 129 of 173 ends

Application Review, Sep 29, 2025
Citizens Finance Advisory Committee
City of Morro Bay
Personal Info
Phone number
(other)
Email
Address
--
Social Media
--Websites
--
Source
Applied through your website's jobs page
Responsibility
Recruiter
Rachael Hendricks
Coordinator
--
Michael Jones
Candidate Application
Job Post Questions
I would like to be considered for appointment to the following Commission/Advisory Body:

Citizens Finance Advisory Committee
Please provide your residential address.

Are you registered to vote in the City of Morro Bay?
Yes
What's your highest level of education, institution name, and field of study? Graduate Degree (MBA) Specializing in Finance & Corporate Strategy Are you currently or have you previously served on a board, commission, committee, or other public body? If yes, which one and when? What do you feel were the advisory body’s major accomplishment(s) during your tenure? Most recently: American Heart Association Los Angeles Governing Body (Go Red for Women Initiative) - Collaborated to set up programming for high school aged girls interested in STEM education. This included various site visits to tech company, biotech, media and finance companies to expose each cohort to various career paths. 1 Powered by Greenhouse

Page 130 of 173 ends

What experience, technical training and skills qualify you for an appointment, considering your experience and activities in business, labor, professional, social, or other organizations?
I bring over 15 years of experience in capital markets, investment management, and nonprofit financial leadership.

As CFO of The Community Foundation San Luis Obispo County, I oversee a $94 million endowment, manage budgeting, audit, and compliance processes, and provide transparent reporting to boards and stakeholders. My background at Goldman Sachs, PIMCO, and Wave Financial further developed my expertise in risk management, fiscal oversight, and strategic planning. These experiences, combined with a commitment to public accountability and community service, prepare me to contribute effectively to the Citizens Finance Committee.

Why are you interested in serving on this advisory board, commission, or committee? I am interested in serving on the Citizens Finance Committee because I believe sound fiscal management is essential to the long-term health of Morro Bay. As a resident, I want to contribute my professional financial expertise to ensure transparency, accountability, and sustainability in the City’s budgeting and planning. Serving on this committee offers an opportunity to give back to the community while helping safeguard its financial future.

I have read the Advisory Bodies Handbook regarding the expectations and responsibilities of this Commission/Advisory Board/Committee and, should I be appointed, am able and willing to devote the necessary time to perform the required duties. https://www.morrobayca.gov/DocumentCenter/View/8325/Advisory-Bodies-Handbook-and-By-Laws?bidId= Yes
2 Powered by Greenhouse

Page 131 of 173 ends

Michael Jones
. Morro Bay, CA 93442 | |
Profile
Finance executive with 15+ years of experience in capital markets, investment management, and nonprofit financial leadership. Currently serving as CFO of The Community Foundation San Luis Obispo County, with a proven track record in fiscal oversight, risk management, and strategic planning. Skilled in translating complex financial data into clear, actionable insights for boards, stakeholders, and community partners. Committed to strengthening transparency, accountability, and long-term financial sustainability for public and community institutions.

Experience
CHIEF FINANCIAL OFFICER | COMMUNITY FOUNDATION SAN LUIS OBISPO COUNTY | AUGUST 2023 – PRESENT
· Executive Oversight: Lead financial strategy, planning, and reporting for a $94mm+ nonprofit foundation serving donors, grantees, and the San Luis Obispo County community. · Investment Management: Oversee investment management of the Foundation’s endowment and restricted funds, coordinating with external advisors to ensure prudent stewardship.
· Financial Controls: Direct budgeting, audit, and compliance processes, ensuring adherence to GAAP and nonprofit regulatory requirements.
· Strategic Oversight and Change Management: Develop scenario planning models addressing risks from state and federal funding shifts, providing actionable strategies to the Board.
· Governance: Partner with the CEO and Board of Directors on strategic planning, governance, and long-term sustainability initiatives.
· Leadership: Served as Interim CEO (2025), ensuring operational stability and strategic continuity during executive transition.

HEAD OF BUSINESS DEVELOPMENT| WAVE FINANCIAL | 2020-2023 · Capital Introduction: Spearhead fundraising efforts, raising north of $30mm in assets under management across venture fund products as well as bespoke portfolio management solutions; Total opportunity pipeline of over $500mm representing between $8-10mm of annual revenue.
· Corporate Strategy & Product Development: Reporting to the Chief Strategy Officer, worked closely with executive team on all internal business initiatives such as fundraising, corporate structuring, Sales P&L forecasting, marketing/growth strategy, & top-down business development strategy.

INVESTMENT MANAGEMENT | GOLDMAN SACHS & CO. | 2016- 2020 · Strategic Advisory: Advised key clients in the region on behalf of the Firm on asset allocation & risk management considerations across public & private investment markets; assets under management generated: approximately $80mm. · Client Management: Conducted ongoing quarterly & annual portfolio reviews for client relationships divided among the broader team (approx. $2.2B in AUM); actively managed

Page 132 of 173 ends

Morro Bay City CouncilOctober 14, 2025

Morro Bay City Council
October 14, 2025