Morro Bay City Council
November 12, 2025

Ordinance No. 673

The Fire Chief shall have the authority to remove or cause to be removed, without notice, any vehicle, vessel, or object that is in violation of this section. The owner of said item, so removed, shall be responsible for all towing, storage, or other costs incurred therein.

G. Section 308.1.1.1 is added to read as follows:
308.1.1.1 Burning Prohibited. Open burning, bon fires, recreational fires, and all other outdoor fires are prohibited.

Exception:

Barbeques and portable outdoor fireplaces that conform with the following provision are allowed.

1. Fires shall be conducted at a safe distance from and in accordance with the applicable manufacturer’s instructions to prevent the spread of fire to a minimum of 15 feet from adjacent structures or other combustible materials.

2. Fire shall be contained in a non-combustible container, not to exceed 3 feet in diameter and 2 feet in height.

3. Portable fireplaces and fire pits not fueled by natural gas or propane must be equipped with a spark arrestor while in use. Spark arrestors shall be constructed of wire mesh with openings of ¼” or less.

4. Fuel loading shall not exceed 3 feet in diameter or 2 feet in height.

5. Fire shall be fueled by propane, natural gas, charcoal, dried wood, commercial fire logs, or pellets. Fuels shall not include green waste, yard trimmings, pressure treated wood, trash, plastic, or other noxious or hazardous materials.

6. Ground fires, sub-surface or pit fires, and earth floored fire rings are prohibited.

7. If in the opinion of the Fire Chief or his or her designee, a fire is potentially hazardous or smoke is causing a nuisance, the fire shall be extinguished immediately.

H. Section 308.1.6.3 is amended to read as follows:
308.1.6.3 Sky Lanterns. The ignition and launching of sky lanterns is prohibited.

Exception: The ignition and launching of sky lanterns may be allowed, subject to the approval of a permit by the Chief, where it has been determined that adequate safeguards will be in place.

I. Section 511 is added to read as follows:

Ordinance No. 673

SECTION 511

FIRE SERVICE ELEVATOR
511.1 Elevator car to accommodate ambulance stretcher. Where elevators are provided, at least one elevator shall be provided for fire department emergency access to all floors.

The elevator car shall be of such a size and arrangement to accommodate an ambulance stretcher 24 inches by 84 inches with not less than 5-inch radius corners, in the horizontal, open position and shall be identified by the international symbol for emergency medical services (star of life). The symbol shall not be less than 3 inches high and shall be placed inside on both sides of the hoistway door frame.

Exception: Elevators located within one- and two-family dwellings and townhouses.

J. Section 901.4.7 is added to read as follows:
901.4.7 Partial Sprinkling of Buildings. Partial sprinkling of buildings shall not be permitted, except where otherwise allowed by NFPA 13R, 13D, and Section 903.3.1.1.1.

K. Delete Sections 903.2 through 903.2.1.4 and 903.2.2 through 903.2.10.1.

L. Add Section 903.2 to read as follows:
903.2 Where Required. An approved automatic fire sprinkler system shall be installed throughout:

1. In all new buildings and structures with more than Zero (0) square feet regardless of type or use.

2. In all new buildings and structures with more than Zero (0) square feet regardless of type or use, on the west side of the Embarcadero Road.

3. In additions or alterations of floor area for all buildings or structures as follows:
a. Throughout structures where additions to existing buildings and substantial remodels more than 50% of the existing floor area is in excess of 500 square feet; ALTERATION OF FLOOR AREA: "For the purpose of this definition, the following criteria shall be considered in determining the percentage of "alteration of floor area." The 50% referred to under "Substantial Remodel" applies to the entire building's gross floor area in plain view. The entire room or space where the remodel is taking place will be considered in the calculation, either alone or in combination with any of the following:
a. Removing wall finishes and exposing framing of; Interior wall (where finishes are removed from one side only the room or space to which the framing is exposed will be included in the calculation). Perimeter exterior wall (one or both sides).

Ordinance No. 673

b. new wall construction, removing, or repositioning, either interior or perimeter exterior walls, the rooms, or spaces on both sides of the wall will be included in the calculation. c. Removal of the ceiling in any room or space to expose rafters, trusses, beams, purlins, or floor joists.
d. Removal of the roof structure (only rooms or spaces that are directly below the removed roof structure will be included in the calculation). e. Removal of floor finishes which exposes floor framing and/or removal of concrete f. Relocating plumbing fixtures in a bathroom or kitchen will cause that entire room or space to be included in the calculation.
g. other alterations considered substantial by the Fire Code Official.

Exceptions:
a. group R-3 and U occupancies
903.2.1 Where Required. An approved automatic fire sprinkler system shall be installed throughout:

1. In all new R-3 and U occupancies private garages and carports accessory to:
a. Including all attached structures;
b. Including all structures within 10 feet.

2. In additions or alterations of floor area for all buildings or structures as follows:
a. Throughout structures where additions is in excess of 300 square feet and substantial remodels more than 50% of the existing floor area;
ALTERATION OF FLOOR AREA: "For the purpose of this definition, the following criteria shall be considered in determining the percentage of "alteration of floor area." The 50% referred to under "Substantial Remodel" applies to the entire building's gross floor area in plain view. The entire room or space where the remodel is taking place will be considered in the calculation, either alone or in combination with any of the following:
a. Removing wall finishes and exposing framing of; Interior wall (where finishes are removed from one side only the room or space to which the framing is exposed will be included in the calculation). Perimeter exterior wall (one or both sides).

Ordinance No. 673

b. new wall construction, removing, or repositioning, either interior or perimeter exterior walls, the rooms, or spaces on both sides of the wall will be included in the calculation. c. Removal of the ceiling in any room or space to expose rafters, trusses, beams, purlins, or floor joists.
d. Removal of the roof structure (only rooms or spaces that are directly below the removed roof structure will be included in the calculation). e. Removal of floor finishes which exposes floor framing and/or removal of concrete f. Relocating plumbing fixtures in a bathroom or kitchen will cause that entire room or space to be included in the calculation.
g. other alterations considered substantial by the Fire Code Official.

Exception:

Installation of an automatic fire sprinkler system shall not be required when, to the satisfaction of the Fire Chief and the Building Official, it is demonstrated the proposed construction, use, and occupancy are minor in scope and nature, the installation of an automatic fire sprinkler system would be impractical, and the intent and purpose of this section is otherwise met.

M. Amend Section 903.3.1.1 to read as follows:
903.3.1.1 NFPA 13 sprinkler systems. Where other provisions of this code require a building or portion thereof be equipped throughout with an automatic sprinkler system in accordance with this section, or where a building contains two or more occupancies or uses, sprinklers shall be installed throughout in accordance with NFPA 13 as amended in Chapter 47 except as provided in Section 903.3.1.1.1.

N. Section 3604.1 is amended to read as follows:
3604.1 General. Piers, marinas, docks, fuel docks, wharves and similar boat mooring facilities shall be equipped with fire protection equipment in accordance with Section 3604.1 through 3604.6 and as otherwise required by the Chief.

O. Section 5609 is added to read as follows:

SECTION 5609.1

SALE AND USE OF FIREWORKS
5609.1 Sale and Use of Fireworks Unlawful. The sale or use of fireworks, pyrotechnics, and others explosives shall be unlawful.

Ordinance No. 673

Exceptions:

1. Public fireworks displays may be allowed, subject to the approval of a permit by the Fire Chief.

2. Pyrotechnics for use in movie industry operations may be allowed, subject to the approval of a permit by the Fire Chief.

3. This section shall not apply to the sale and use of State Fire Marshal approved and listed party poppers and snap caps.

4. Any person violating this provision will be guilty of a misdemeanor and subject to a $1,000 fine for each offense.

5. Notwithstanding any other provision of this code, any Morro Bay Police Officer may issue an administrative citation for a first offense without first issuing a warning; and the administrative fine shall be $1,000 for each offense.

Chapter 14.09

EXISTING BUILDING CODE

14.09.010 - Modifications of the California Existing Building Code.

The California Existing Building Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows and shall be the technical strengthening provisions for buildings subject to Chapter 14.18 of this title:

Amend Section 505.3 Replacement window emergency escape and rescue openings. to read as follows:

Where windows are required to provide emergency escape and rescue openings, replacement windows shall comply with the maximum sill height requirements of section R310.2.3 and the minimum opening area requirements of sections R310.2.1, and R310.2.2.

Chapter 14.10

RESERVED

Ordinance No. 673

Chapter 14.11

HOUSING CODE

14.11.010 - Modifications of the International Property Maintenance Code.

The 2021 International Property Maintenance Code, adopted in Section 14.01.020, shall have the full force and effect as if printed here in its entirety and is hereby modified, amended, and/ or supplemented as follows:

A. Amend Section 101 to read as follows:

SECTION 101.2.1-SCOPE
101.2.1 Where any building or portion thereof is used or intended to be used as a combination apartment house- hotel, the provisions of this code shall apply to the separate portions as if they were separate buildings.
101.2.2 Rooming houses, congregate residences or lodging houses shall comply with all requirements of this code for structures.

Chapter 14.12

DANGEROUS BUILDINGS CODE

14.12.010 – Modifications of the Uniform Code for Abatement of Dangerous Buildings.

The 1997 Uniform Code for the Abatement of Dangerous Buildings, adopted in Section

14.01.020, shall have the full force and effect as if printed here in its entirety and is hereby modified, amended, and/ or supplemented as follows:

A. Amend Section 103 to read as follows:

SECTION 103- ALTERATIONS, ADDITIONS AND REPAIRS
All buildings or structures which are required to be repaired under the provisions of this code shall be subject to the provisions of Chapter 34 of the Building Code.

B. Amend the following definitions, located in Section 301, to read as follows:

BUILDING CODE is the California Building Code, as adopted and amended by this title.

HOUSING CODE is the 1997 Uniform Housing Code, as adopted and amended by this title.

Ordinance No. 673

SECTION 3. This Ordinance shall take effect January 1, 2026. The City Clerk, or her duly appointed deputy, shall attest to the adoption of this Ordinance and shall cause this Ordinance to be published and posted in the manner required by law.

SECTION 4. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional.

INTRODUCED at a regular meeting of the City Council of Morro Bay, held on the 28th day of October 2025 by motion of Councilmember Eckles and seconded by Councilmember Luffee.

PASSED AND ADOPTED on the ______ day of __________ 2025, by the following vote:

AYES:

NOES:

ABSENT:

____________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk
APPROVED AS TO FORM:
_____________________________________
BRIAN STACK, City Attorney

Ordinance No. 673

STATE OF CALIFORNIA )

COUNTY OF SAN LUIS OBISPO )

CITY OF MORRO BAY )
I, Dana Swanson, City Clerk for the City of Morro Bay, California, do hereby certify that the foregoing Ordinance No. 673 was duly passed and adopted by the City Council of the City of Morro Bay at the regular meeting thereof, held on the ______ day of _______ 2025, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:

IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of Morro Bay, California, this day of , 2025.
______________________________
DANA SWANSON, City Clerk

Prepared By: ______AW____ Dept Review: ________
City Manager Review: ___AL___ City Attorney Review: ___BS____ Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2025 FROM: Amy Watkins, Chief of Police
SUBJECT: Approval of Contract with San Luis Obispo County for Animal Care and Control Services for FY 2025/26 through FY 2029/30 and adoption of Resolution No. 58- 25 Authorizing the Related Budget Amendment

RECOMMENDED ACTION
Authorize the City Manager to execute a five-year contract with the County of San Luis Obispo, for the continued provision of Animal Care and Control Services from July 1, 2025 to June 30, 2030 and adopt Resolution No. 58-25 amending the Operating Budget to the full contract amount for FY 2025/26.

ALTERNATIVES
None proposed.

FISCAL IMPACT
The contract fee for Fiscal Year (FY) 2025-26 is $80,442. A placeholder amount was budgeted for this year and Resolution No. 58-25 (Attachment 2) will amend the adopted budget to the full contract amount. The remaining four years on the proposed contract will be based on the service fee methodology as outlined in this report.

BACKGROUND/DISCUSSION
State law requires the city to provide a certain level of animal care and control services within its borders. For many years, the City of Morro Bay (along with all cities in the County) have contracted with the County of San Luis Obispo (“County”) for the provision of Animal Care and Control Services.

This is the only animal control and care service available in the County, and all other cities in the County contract with the County for this service. Services provided pursuant to the proposed contract include: emergency and non-emergency response of Animal Services Officers for injured and stray animals; investigative services for animal bites, abuse and neglect; sheltering and quarantine services; dog licensing; animal adoption; and other services as required either by State law or the Morro Bay Municipal Code. The Police Department administers the contract on behalf of the City.

The current contract with the County expired on June 30, 2025, with the County continuing to provide the same services to the City, under the previous agreement and terms, up to this point in the new fiscal year.

AGENDA NO: 6.h
MEETING DATE: November 12, 2025

Contract Provisions and Costs Methodology
Since 2010, a service-based methodology has been utilized to assess the service fees associated with the fulfillment of the animal care and control services provided by the County to each of the incorporated cities in the County. This methodology assesses fees based on a city’s actual use of services and generation of revenue on an annual basis. By using a direct and measurable cost allocation, the contract fees derived reflect the true cost of service, resulting in an equitable fee structure with those cities having the highest service rates paying proportionately more than those with lower service rates. Dr. Eric Anderson presented an overview of the services provided and cost allocation methodology at the April 8, 2025 Council Meeting. A link to his presentation can be found here.

The proposed contract provides for the provision of Animal Care and Control services to the City for five years, from July 1, 2025, through June 30, 2030. Under the terms of the proposed agreement, the City will receive a comprehensive array of animal services, which will include the following:

Animal Sheltering and Management
 Intake and sheltering of stray, owner surrendered, confiscated, or quarantined animals;  Reunification of stray animals with their owners or adoption into new homes;  Medical care and humane euthanasia of sheltered animals;  Receipt and processing of Lost and Found Reports;
 Quarantine and observation of domestic animals which have bitten a person;  Vaccination and microchipping of sheltered as well as privately owned animals; and  Licensing of all dogs over 4 months of age. Issuance of Assistance Animal tags.

Field Services
 Impound of dogs running at-large;
 Response to reports of aggressive animals running at large. Capture and management of animals posing a threat to public safety;
 Investigation of animal related nuisances. Mitigation of nuisances through public education, administrative actions, or criminal prosecution;
 Response and investigation of allegations related to abuse or neglectful treatment of an animal;
 Investigation of animal bite reports. Establishment of quarantine for biting animals;  Regulation and permitting animal related businesses and breeders;  Removal of dead domestic animals from public roadways; and  Assist other law enforcement and public safety agencies responding to cases in which animals are involved.

The contract includes a provision for the parties to collaborate and address specific issues as needed during the contract term. The contract also provides that either party may terminate the contract at any time by giving the other party 30 days written notice. Staff proposes that the Council approve the attached contract which would continue those services through FY 2029/30.

CONCLUSION
Approval of this contract would be an extension of the existing contract between the City of Morro Bay and the County of San Luis Obispo Animal Control Services through FY 2025/30.

ATTACHMENTS

1. Contract for Animal Care and Control Services with County of San Luis Obispo

2. Resolution No. 58-25 Budget Amendment Resolution Animal Services Contract

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
THIS CONTRACT, entered into by and between the County of San Luis Obispo, a public entity in the State of California, (“County”) and, the City of Morro Bay, an incorporated city in the State of California, (“City”).

RECITALS
WHEREAS, County has established the Division of Animal Services to provide animal care and control functions including the enforcement of the ordinances of San Luis Obispo County Code Title 9 and of California state codes pertaining to the care, keeping, and management of animals; and
WHEREAS, County through Animal Services, maintains and operates an animal shelter and a humane education program; and
WHEREAS, City is desirous of contracting with County for the provision of such services;
NOW THEREFORE, in consideration of the covenants, conditions agreements and stipulations set fourth herein, the parties hereby agree that to the following terms and conditions.

TERMS AND CONDITIONS

1. Exhibits. The contract consists of the terms and conditions as set forth in the following exhibits:
a. Exhibit A – Scope of Services
b. Exhibit B – Compensation
c. Exhibit C – Duration of Contract
d. Exhibit D – General Conditions

2. Notices. Notices required in this contract shall be provided to:

COUNTY: CITY:

Eric Anderson, DVM
Animal Services Manager
865 Oklahoma Ave.

San Luis Obispo, CA 93405
IN WITNESS WHEREOF, County and Contractor have executed this Contract on the day and year set forth below.

COUNTY OF SAN LUIS OBISPO CITY OF MORRO BAY
By: By:

Chairperson of the Board of
Supervisors

NAME / TITLE
Date: Date:

ATTEST:

MATT PONTES
Ex-Officio Clerk of the Board of Supervisors
By:
___________________________________
_____
Deputy Clerk

APPROVED AS TO FORM AND LEGAL
EFFECT:

JON ANSOLABEHERE
County Counsel
Deputy County Counsel
Dated: November 6, 2025

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT A – SCOPTE OF SERVICES
1) County Obligations. The County shall perform the following duties:
a) Shelter Services
i) Maintain, or cause to be maintained, an animal shelter whereat stray, owner surrendered, confiscated, quarantined and custodially impounded household pets are received and provided with appropriate care, housing, and shelter services in accordance with state regulations, local ordinances, and policies governing the humane treatment of such animals.
ii) Provide services allowing sheltered animals to be returned to their owners, adopted into new homes, or to be humanely euthanized.
iii) Provide for the receipt and publication of lost and found animal reports. iv) Provide services for the humane euthanasia of household pets and for the disposal of their remains.
b) Field Services
i) Receive and respond to public calls for service related to alleged violations of local or state codes pertaining to the care, keeping, treatment, and management of animals. ii) Provide for the response to any of the following circumstances 24 hours a day, seven days a week:
(1) Domestic animals posing an active and present threat to public safety (2) Domestic animals which are severely injured, sick, or in eminent risk and whose owner is unknown or unavailable.
(3) Domestic or wild animals demonstrating signs of possible rabies infection. (4) Calls for assistance from law enforcement or emergency response personnel. (5) Reported animal bites where the animal remains in the area unconfined and whose owner is unknown or unavailable.
(6) Loose livestock roaming on roadways or other public areas. iii) Provide for the response to any of the following during Animal Services' normal business hours:
(1) Pick-up and impoundment of unlimited numbers of stray confined domestic animals.
(2) Pick-up and disposal of unlimited numbers of dead domestic animals from roadways, parks, and other public areas.
(3) Pick up and transfer to shelter of owned animals for surrender or euthanasia.

(4) Pick up of dead owned animals for disposal.
iv) Provide for the necessary medical treatment and emergency care for domestic animals picked up by Animal Services personnel and for those domestic animals presented directly to veterinarians by private citizens and emergency response personnel.
v) Provide for the receipt, processing and investigation of animal bite reports as well as the subsequent quarantine of animals in accordance with state codes pertaining to rabies control.
vi) In the event that an animal responsible for causing serious bodily injury (as defined by Penal Code 243(f)(4)) or death to a person dies in the custody of, or is euthanized by, Animal Services, County shall preserve the bodily remains of that animal until such time as City has been consulted and approves of their disposal.

Nothing in this requirement shall be interpreted to prevent Animal Services from collecting and processing any tissue or body samples required to comply with legally mandated rabies testing requirements or other public health needs. vii) Request assistance from the San Luis Obispo County District Attorney's Office Bureau of Investigations when an animal bite results in significant injury causing death or likely to cause death or in any case Animal Services believes may require significant criminal investigation beyond the experience of Animal Services Officers. viii)Receive and respond to reports of animals, domestic or wild, which are suspected to be rabid or to have been exposed to rabies infection and attempt to affect their capture. Captured animals will be processed in accordance with state codes pertaining to rabies control.
ix) Receive and process all applications related to the keeping and sale of household pets; inspect and regulate permitted operations in accordance with local and state codes.
x) Provide for the recording, investigation, administrative hearings, and issuance of findings and orders related to animal nuisances, animal seizures or confiscations, and dangerous or vicious animals. Nuisances which remain unresolved following the issuance of an abatement order will be processed to court through the District Attorney’s office.
xi) Assist in the preparation and filing of court documents related to the civil and/or criminal prosecution of cases involving violation of municipal codes pertaining to the care, treatment, and keeping of domestic animals.
xii) Provide for the preparation, filing and civil or criminal prosecution of cases involving violations of California state codes pertaining to the care, treatment, and keeping of domestic animals.
c) Reporting: Provide to the City bi-annual service activity and financial reports reflecting field services, licensing, and shelter operations, programs. Reports will detail this information for both the individual quarter and year-to-date.

d) Collaboration: Participate collaboratively with the City regarding matters impacting the provision of animal care and control services. County shall not append or modify the provisions of Title 9 of the San Luis Obispo County Code without having first consulted with the City.
2) City Obligations. The City shall perform the following duties:
a) Ordinance Conformity: City shall adopt by reference Title 9 of the San Luis Obispo County Code.
i) In the event that City does not desire to incorporate specific provisions of Title 9, those provisions may be individually exempted from adoption. ii) In the event that City desires to incorporate additional provisions related to the care and keeping of animals which are not established by Title 9, those provisions may be added and individually specified within City’s municipal code. Animal Services will not be responsible for enforcing any added provisions which are substantially outside of the Animal Service Division’s normal scope of operations. b) City shall immediately notify the County upon determining that any animal in the custody of Animal Services is believed to have caused serious bodily injury (as defined by Penal Code 243(f)(4)) or death to a person and request that the body of that animal be preserved in the event that it dies or is euthanized while in custody. c) Assistance: Provide such assistance and support to Animal Services personnel as may be reasonably necessary to safely and effectively execute the operations required by this contract within the City limits.
d) Collaboration: Participate collaboratively with the County regarding matters impacting the provision of animal care and control services. City shall not append or modify the provisions of its municipal code related to animal care and control without having first consulted with County.
3) Animal Care and Control Coordination Group: The County and City agree that Animal Services is a shared interest of all parties and that all participating jurisdictions will share in the cost and revenue generated based on actual costs and fees generated in each jurisdiction. Further, policy-setting, procedural changes and ordinance development will happen in a collaborative manner, with all participating jurisdictions having input into the best way to conduct these services in San Luis Obispo County. a) To coordinate efforts, the participating jurisdictions, including the City and County agree to meet and confer periodically to discuss current issues as they relate to the fiscal and practical application of this contract, along with other potential items identified by the group. Such meetings shall be coordinated by the County Animal Services Manager from time to time as necessary, but no less than twice yearly. 4) As part of this commitment, the County agrees to develop performance benchmarks and communicate them quarterly to the group on the following:
a) Cost of Services/per Capita (by City) overtime.
b) Cost of services/per City over time.

c) Number of Full-Time Equivalent (FTE) positions within Animal Control over time. d) Number of field FTE within Animal Control over time. e) Geographical Information Service (GIS) heat maps of calls for service over time by City (requested development from County IT Department, maps to be provided when available).
f) Average response times for priority calls over time by City. g) Percentage of animals licensed by the City over time. h) Other data points charted out over time that were used to spread out the Animal Shelter costs.

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT B – COMPENSATION
1) First Year Service Fee: The City agrees to pay to the County the amount of $80,442 for services provided under this Contract during the first year of service. 2) Subsequent Years’ Service Fee: The County shall compute on an annual basis a service fee assessed to the City for services provided under this Contract. 3) Timing of Service Fee: The County shall calculate annual service fees and provide them to the City prior to April 15th of each year, with service fees becoming effective on July 1st of that year. No further action by either party is necessary to implement new fees in subsequent years.
4) Service Fee Methodology: The County shall use a service-based methodology for determining city service fees. The service-based methodology shall be based on three key facets of Animal Services' operations:
 Field Service
 Licensing
a) Determination of Cost of Service - The cost of providing services to the City will be calculated by determining the average percentage of service allocated to the City over the preceding three years for each of the four facets of operations and multiplying this percentage against Animal Services operational budgeted expense for each facet.

Combined, this then represents the City's total service cost in proportion to the County and all other contracting parties.
b) Credit for Fees - The average annual revenue generated from fees or fines assessed directly to residents of the City by Animal Services over the preceding three years will be applied against the City's total service cost.
c) Determination of Service Fee - The fee assessed to the City for provision of services outlined in this contract shall be determined by subtracting the average revenue as determined by item 4b of this exhibit from the average cost of service as determined by item 4a of this exhibit.
5) Billing: County shall bill City for contracted services in quarterly increments. City shall remit payment to the County within thirty (30) days of receipt of billing. 6) Year End Variance – In the event that Animal Services’ net operational costs for any fiscal year are less than projected in the calculation of the service fee methodology (Item 4 of this exhibit), the City’s proportionate share of that savings shall be applied as a credit against the calculated service fee for the subsequent fiscal year.

In the event that Animal Services net operational costs for any fiscal year exceed projections in the calculation of the service fee methodology (Item 4 of this exhibit), the City’s proportionate share of the overage shall be added to the calculated service fee for the subsequent fiscal year.

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT C – DURATION
1) Effective Date: This contract shall be effective July 1, 2025, or fifteen (15) days following of the date of the signature of the County, whichever is later. The County shall be the last to sign this contract.
2) Service Date: City and County acknowledge that the services provided under this contract are a continuation of those established during the preceding contract term and that these services may have been provided continually and without interruption between July 1, 2025, and the date of execution by the County in order to ensure the interest of public service. a) Both City and County expressly and retroactively authorize the provision of these services.
b) For the purposes of billing and determination of the First Year Service Fee as provided in Exhibit B, the first year of service will be presumed to have begun on July 1, 2025. 3) Duration: The term of this Contract shall expire June 30, 2030, unless terminated sooner as provided in Exhibit D.

CONTRACT FOR

ANIMAL CARE AND CONTROL SERVICES
EXHIBIT D – GENERAL CONDITIONS
1) Termination: Either party may terminate this contract at any time by giving the other party thirty (30) days written notice of termination. Termination for convenience shall have no effect upon the rights and obligations of the parties arising out of any services provided occurring prior to the effective date of such termination. County shall be paid for all work satisfactorily completed prior to the effective date of termination. In the event that the contract is terminated prior to the conclusion of a quarterly billing cycle, the City shall remit to the County a prorated amount based upon the number of days of service relative to the total number of days in the billing cycle.
2) Indemnification: Nothing in the provisions of this Contract is intended to create duties or obligations to, or rights in third parties not party to this contract or affect the legal liability of either party to contract, by imposing any standard of care respecting the regulation and enforcement of laws regarding animals different from the standard of care imposed by law. a) It is understood and agreed that neither City, nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the County under or in connection with any work, authority or jurisdiction delegated to the County under this Contract. It is also understood and agreed that pursuant to Government Code 895.4, County shall defend, indemnify and save harmless the City, all officers, and employees from all claims, suits or actions of every name, kind, and description brought forth or on account of injuries or death of any person or damage to property resulting from anything done or omitted to be done by the County under this Contract except as otherwise provided by Statute. b) It is understood and agreed that neither County nor any officer or employee thereof, is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this Contract. It is also understood and agreed that pursuant to Government Code Section 895.4, the City shall defend, indemnify and save harmless the County, all officers and employees from all claims, suits or actions of every name, kind and description brought forth on account of injuries or death of any person or damage to property resulting from anything done or omitted to be done by City under connection with any work, authority or jurisdiction delegated to the City under this Agreement except as otherwise provided by Statute.
3) Notices: Any notice, payment, statement, or demand required or permitted to be given hereunder by either party to the other shall be affected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be addressed to the parties at the addresses appearing below, but each party may change its address by written notice in accordance with this section. Mailed notices shall be deemed communicated as of three days after mailing.

COUNTY CITY

Eric Anderson, DVM
Animal Services Manager
865 Oklahoma Ave.

San Luis Obispo, CA 93405
4) Status of the Parties' Officers/Employees/Agents: Neither party’s officers, employees, agents, partners, other contractors or subcontractors shall be deemed to be employees of the other party at any time. Nothing in this contract shall be construed as creating a civil service employer - employee relationship or a joint venture relationship. No officer, employee, agent, partner, other contractor or subcontractor of the other party shall be eligible for membership in or receive benefits from any plan for hospital, surgical, or medical insurance, or be eligible for membership in any retirement program, paid vacation, paid sick leave, other leave, with or without pay, collective bargaining rights, grievance procedures, appeals to the Civil Service Commission or any other benefits which inures to or accrues to an employee of the other party. The only performance and rights due the other party are those specifically stated in this contract.
5) Governing Law and Venue: This Contract shall be governed by and construed in accordance with the laws of the State of California. Additionally, this contract has been formed and shall be performed in San Luis Obispo County; the venue for any legal action on the contract shall be in San Luis Obispo County.
6) Entire Agreement: This Contract embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties relating to matters herein; and except as otherwise provided herein, cannot be modified without the prior written agreement of the parties.
7) Severability: In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Contract.
8) Successors and Assigns: This Contract shall be binding upon and insure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and, except as otherwise provided in this Contract, their assigns.
9) Captions: The captions to the various clauses of this Contract are for information purposes only and shall not alter the substance of the terms and conditions of this Contract. 10) Authorization: Each of the parties represents and warrants to the other that this Contract has been duly authorized by all necessary corporate or governmental action on the part of the representing party and that this Contract is fully binding on such party.

RESOLUTION NO. 58-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
AUTHORIZING AMENDMENT TO THE CITY’S FISCAL YEAR
2025-26 OPERATING AND CAPITAL BUDGET

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its day-to-day business activities; and
WHEREAS, the City Council adopted the Fiscal Year (FY) 2025-26 Operating and Capital Budget on June 24, 2025, by Resolution No. 38-25; and
WHEREAS, the City of Morro Bay contracts with the County of San Luis Obispo for animal care and control service delivery to the residents of the City of Morro Bay; and WHEREAS, the contract amount was not available at the time of budget adoption therefore an estimated placeholder was used; 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, authorizes a budget adjustment to increase the contract budget amount by $32,715 as outlined in Table 1.

Table 1. Budget Amendment Detail
Type Account Description Increase
(Decrease)
Expense 001-4150-6106 Contractual Services $32,715
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12th day of November 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Prepared By: EV____ Dept Review: __AS____
City Manager Review: _AL____ City Attorney Review: BS __________ Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2025 FROM: Erik Valentine, Associate Planner
VIA: Airlin M. Singewald, Community Development Director SUBJECT: Review and Adopt Draft Funding Recommendations for the 2026 Community Development Block Grant (CDBG) Program

RECOMMENDED ACTION
Conduct a public hearing to review and adopt Resolution No. 59-25 approving draft funding recommendations for the 2026 Community Development Block Grant (CDBG) funds and forward recommendations to the San Luis Obispo (SLO) County Board of Supervisors for inclusion with the other draft funding requests from the Urban County Consortium. The funding recommendation is for two of the three applications received, both from Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) for a total estimated funding allocation of $64,262. Additionally, staff recommends the City Council authorize the City Manager to make pro rata adjustments to the allocation based on the final funding amount from SLO County based on the approval of the Federal budget and HUD’s final grant amount to the County.

ALTERNATIVES
The Public Works Department submitted an application for CDBG funds ($46,269) for ADA sidewalk repairs, as a back-up option in case the Council does not want to fund CAPSLO’s minor home repair program. This amount represents the City’s total remaining CDBG allocation after the County’s administration allocation and the Public Services allocation (capped at 15% of the total allocation) are subtracted. The Council could choose to fund this application in whole by not allocating any funding to CAPSLO’s Minor Home Repair program, or it could fund both applications by allocating less than the requested amounts to each project.

Staff does not recommend this alternative because, during the 2024 CDBG hearing, staff heard a preference to use CDBG funds for housing and homelessness-related projects. While no affordable housing developers have applied for the City’s share of CDBG funds for land acquisition (construction of housing is not eligible under CDBG), the City received an application from CAPSLO for minor home repair activities for Morro Bay residents, which is aligned with the preference to fund housing-related activities.

AGENDA NO: 7.a
MEETING DATE: November 12, 2025

FISCAL IMPACT
While the County performs many of the administrative responsibilities for the CDBG program, the City also experiences a fiscal impact for CDBG grant administration. This includes (and is not limited to) applying to the County for funding, budgeting revenue and expenditures, coordinating with County staff, executing subrecipient agreements, and submitting required reports to the County. The City may use up to $4,498 of its estimated 2026 CDBG allocation for grant administration. To receive administration funds, the City is required to submit a separate application, execute a separate agreement, and perform separate reporting. To avoid this additional administrative burden, staff recommends allocating this $4,498 to the recommended Minor Home Repair project instead of administration. The Community Development Department will absorb the administrative expense of the CDBG program within its existing budget.

SUMMARY
Since 2011, the City of Morro Bay has been a member of the Urban County Consortium, which is a consortium of participating local jurisdictions that includes San Luis Obispo County and the cities of Paso Robles, Atascadero, San Luis Obispo, Pismo Beach, and Arroyo Grande for the purpose of receiving and allocating Federal CDBG funds. The 2026 CDBG award process began earlier this fall with the release of the Notice of Funding Availability on September 11, 2025 (Online Link #1 below). A Community Development Needs Assessment Online Survey was posted on August 27, 2025 to identify community needs and help establish funding priorities. Applications were due by October 10, 2025. The City received three applications for this funding cycle (see below for more details).

Total Morro Bay funding is anticipated to be approximately $64,262 for the 2026 program year with an estimated total allocation countywide of $1,706,334. Final funding amounts are subject to change and will be released by the Department of Housing and Urban Development (HUD) in early 2026.

BACKGROUND
The CDBG program is a funding source providing communities with resources to address a wide range of unique community development needs. (Online Link #2 below). The program provides funding for infrastructure, services, economic development, homelessness prevention, and affordable housing development (land acquisition only) benefiting low- and moderate-income individuals.

CDBG funds are available for community development activities, which meet at least one of the three national objectives:

1. A benefit to low- and moderate-income persons;

2. Aid in the prevention or elimination of blight;

3. Address urgent needs that pose a serious and immediate threat to the health or welfare of the community.

In order for a program to qualify under the low- and moderate-income objective, at least 51% of the persons benefiting from the project or program must earn no more than 80% of the area median income. Additionally, at least 70% of the CDBG funds must be spent toward that objective.

The following criteria should also be used to guide the selection of CDBG programs:

1. The proposal is consistent with the national objectives and eligibility criteria of the HUD CDBG program;

2. The proposal is consistent with the Urban County Consolidated Plan;

3. The proposal is consistent with the General Plan and other City codes/ordinances;

4. The proposal will achieve multiple community development objectives;

5. The proposal can be implemented in a timely manner, without significant environmental, policy, procedural, legal, or fiscal obstacles to overcome; and

6. The project is not financially feasible without CDBG funding.

Urban County Consortium
As mentioned above, the City of Morro Bay has participated in an entitlement program called the Urban County Consortium since 2011. On its own, the City does not have a sufficient population to qualify as an entitlement jurisdiction, which receives an automatic allocation of funding from HUD each year. By signing a cooperation agreement with the County and other participating jurisdictions, the City is guaranteed to receive a CDBG funding allocation each year. Cooperation agreements last for three years. The current agreement was signed in 2024 and will last through 2026. A jurisdiction cannot enter or leave the Urban County while an executed agreement is in progress.

The only incorporated City in San Luis Obispo County to not participate in the Urban County is the City of Grover Beach. Grover Beach competes (with other non-entitlement jurisdictions) for CDBG funding directly from the State. Grover Beach is not an entitlement jurisdiction, which means that there is no guarantee of funding each year, as the State application process is highly competitive. Prior to leaving the Urban County, the City of Grover Beach hired a consultant to research their chances of success in receiving CDBG funds directly from the State. When reviewing CDBG applications, the State uses the following formula:

Population + (Number of Persons in Poverty x 2) + Number of Overcrowded Housing Units in Jurisdiction = Priority Ranking
Overcrowding is defined as units where each room (excluding bathrooms and kitchens) are occupied by 1.01 or more persons. Units with more than 1.5 persons per room are considered extremely overcrowded.

Based on a quick comparison of Grover Beach’s and Morro Bay’s current Housing Elements, Grover Beach has a higher incidence of overcrowding (9% compared to 4% for rental occupancy; both are at 1% for owner-occupancy) and families in poverty (15% compared to 7%) than Morro Bay. With 12,700 residents, Grover Beach also has a 20% higher population than Morro Bay.

By participating in the Urban County, the City also receives the benefit of County staff performing a majority of the program administrative work. CDBG awards require compliance with Federal and HCD standards, which require exceptional staff time and bandwidth. The City does not have the option to leave the Urban County until after the 2026 Program Year, but staff recommends that the City remains as a participant of the Urban County for the foreseeable future. If the Council is interested in leaving the Urban County, it is recommended that a consultant be hired to explore the likely outcomes of such a decision.

The decision on whether to leave the Urban County also depends on the Council’s goals and foreseeable projects. If the City leaves the Urban County, we’ll have to apply to the State for CDBG funds for defined projects. If we know of an affordable housing project on the horizon, then it would make sense to work with the non-profit builder to evaluate the feasibility of competing for CDBG funds (acquisition only) at the State level, before committing to a new cooperation

agreement with the Urban County.

On the other hand, if the City stays in the Urban County, and there’s an affordable housing project on the horizon, the affordable housing developer could apply for all of the City’s CDBG funds, a portion of the County’s CDBG funds, and a portion of the County’s HOME funds.

It's important to note that the City will not automatically be enrolled in the next cooperation agreement. The County will send letters to the seven cities in mid-2026 inviting them to renew the cooperation agreements for another three years. The cooperation agreement would be presented to the City Council for action some time from late 2026 to early 2027.

DISCUSSION
The three applications received by the City for the 2026 funding cycle are included by category in the following table along with a description of the application request and staff recommendation.

Federal Funding Category / Applications
Received
Amount
Requested
Amount
Recommended
Public Services – Limited to 15% of 2026
Allocation (or a maximum of $9,639)

1. Project Name: 40 Prado Homeless
Services Center
Applicant: Community Action Partnership of San
Luis Obispo County, Inc. (CAPSLO)
$9,639 CDBG
funding request
to Morro Bay
(Total request is
$117,981
combined to all
jurisdictions and
unincorporated
areas
countywide)
$9,639
Housing / Rehabilitation

2. Project Name: Minor Home Repair
Applicant: Community Action Partnership of San
Luis Obispo County, Inc. (CAPSLO)
$41,771 $46,269*
Public Facilities

3. Project Name: ADA Sidewalk Repair
Applicant: Public Works Department, City of
Morro Bay
$46,269 $0
Total Funds Requested $97,679
Total Funds Recommended $55,908*
(Includes
Administration
funding totals that

can be allocated
towards the Minor
Home Repair
project)
Estimated Total 2025 Funding Available $64,262
*The sum of the two recommendations does not equal the total anticipated allocated funding. This is because the County receives a portion of the City’s allocation for administration. Per HUD standards, administration costs are limited to 20% of the 2026 allocation. Of this 20%, the County receives 65%, or $8,354. City staff recommends that Morro Bay administration funds be put towards the Minor Home Repair project.

CAPSLO 40 Prado Project Description:

The 40 Prado Homeless Services Center (Prado HSC) in SLO offers an Access Center and emergency shelter services, meals, showers, health screenings at the CHC on-site clinic, behavioral health services from the county’s mobile van, services to dual-diagnosed individuals, recuperative care for those recently released from the hospital, a Warming/Cooling Center during inclement weather, a Safe Parking program, animal kennels, a community garden, laundry, internet access, and a mail and message center to facilitate job and housing searches. Case managers and staff assist clients in creating individualized housing plans with set goals and objectives to obtain housing and self-sufficiency. CAPSLO operates the largest shelter program in SLO County, frequently providing shelter for 130-150 households per night through hoteling, shelter beds at Prado HSC, the Overflow, Safe Parking and Warming/Cooling Center Programs.

With its new Housing Focused Shelter Program (90-day program), CAPSLO was able to house 221 participants in the 24-25 fiscal year. We project that 250 will be housed, and 1,200 sheltered in 2026-2027.

CAPSLO Minor Home Repair Project Description:

The project involves the completion of minor home repairs and accessibility improvements in homes occupied by low- and very low-income members of the community. The agency will perform outreach and work with its partners to identify households that qualify for this assistance and have needs that can be met through the program. Once projects are identified, the program will develop a project description and cost estimate for each project and submit that information to County staff for review and approval. Approved projects will then be scheduled for work to be completed by agency staff. The outcome is to help vulnerable members of our community remain safely in their own homes, improving their self-sufficiency and independence and thereby reducing homelessness and dependency.

Of note, City staff have spoken to the project manager at CAPSLO to confirm that the City’s funding allocation will be used solely on Morro Bay residents.

Public Works Project Description (Back-up Project):

The City has hundreds of City-owned street trees along roadway frontage throughout the City.

Many of the street trees that are mature were planted many years ago and are causing destruction to sidewalks, curb and gutter, asphalt roadway, and other public infrastructure. The damage to City infrastructure is an unfunded liability to the City from a maintenance and safety perspective.

In addition, these areas where uplift of sidewalk has occurred cause areas to be out of compliance with the Americans with Disabilities Act (ADA). This project would be to correct some areas where street trees have caused damage and remove the tree and replace with a more appropriate street tree with an underground growing zone so that the roots do minimal damage to the infrastructure.

The project would also include the replacement of sidewalks, curb and gutter, curb ramps, and

portions of roadway that have been affected by street trees. In some cases, the project would involve filling sidewalk gaps that affect accessibility. The proposed improvements will include sidewalk deficiencies in the Morro Bay downtown area, including sections of Morro Bay Boulevard, Harbor Street, Main Street, Monterey Avenue, and Napa Avenue.

Federal Regulations and Funding Criteria:

Federal HUD regulations apply limits to each category of funding, as described below. As part of the CDBG process, Council must adopt a draft recommendation for the 2026 grant year that meets the funding criteria while adhering to the category limits. Upon approval, the draft funding recommendations will be forwarded to the County for publishing along with recommendations from all jurisdictions. The public notice starts a 30-day review and comment period during which a second public workshop will be held to allow questions from applicants after which the draft allocations, plus any workshop comments, will be forward to City Council for final approval at a duly noticed public hearing anticipated to be approximately February 2026. After that meeting, the final funding recommendations would then be forwarded to the County Board of Supervisors in order to adopt the 2026 Action Plan consistent with the 2025-2029 Consolidated Plan, which is the five-year strategic planning document that established funding goals for HUD funding.

The following is a brief explanation of the funding categories and applications received within each:

Public Services – Public services activity applications are defined as those activities that include, but are not limited to, employment services, crime prevention, childcare, health services, substance abuse services, fair housing counseling, and recreational services. Federal regulations limit no more than 15% of an allocation to be awarded to Public Services activities. For Morro Bay, the maximum award would be $9,639.

Only one application was received under this category, which was from the Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) (Attachment 2). The 40 Prado Homeless Services Center (Prado HSC) provides an Access Center and emergency shelter services, which includes health screenings and behavior health services, to those in need (see above for a more detailed description). Additionally, case managers and staff assist clients in creating individualized housing plans with set goals and objectives to obtain housing and self-sufficiency. CAPSLO is applying for the full amount of the City’s public services allocation ($9,639). Staff are recommending this project for funding in the spirit of regional collaboration to address homelessness.

Housing / Rehabilitation – CDBG funds may be used to finance the costs of rehabilitation in eligible types of property and under certain eligible types of assistance. Eligible types of property include residential, commercial/industrial, and other nonprofit-owned nonresidential buildings.

Properties are subject to a site visit during application review.

CAPSLO submitted a Housing / Rehabilitation application in the amount of $41,771 for its Minor Home Repair program. The program involves the completion of minor home repairs and accessibility improvements in homes occupied by low- and very-low income members of the community. The desired outcome is to help vulnerable members of the Morro Bay community remain safely in their own homes, improving self-sufficiency and independence, thereby reducing homelessness and dependency. Staff are recommending this project for funding based on feedback and direction gathered during the 2025 CDBG funding cycle, in which Council directed staff to look for projects outside of the public infrastructure subcategory that had been funded in

years past.

Public Facilities – Public Facilities are defined as activities relating to real property, including the acquisition, construction, rehabilitation, or installation of public improvements. These activities can be carried out by a grantee, sub-recipient, or other nonprofit.

The City’s Public Works Department submitted a Public Facilities application in the amount of $46,269 that would provide for the repair or replacement of sidewalk infrastructure in the Downtown area that have been damaged or upheaved by growing tree roots. Such repairs and/or replacements would bring sidewalks into compliance with ADA standards and serve all residents and visitors to Morro Bay, especially the elderly or persons with disabilities. The application request stemmed from internal conversations between the Community Development and Public Works Departments based on needs identified at the staff level. Public Works’ application identifies leveraged funds from the Department’s expenditures outlined in the FY25-26 Municipal Budget, under the Street Maintenance line item, if necessary. This is a back-up project for Council consideration. The Public Works Department’s ability to repair or replace impacted sidewalks will not be heavily reduced by not funding this project, as the City’s FY25-26 Municipal Budget already provides funding for such activities. Additionally, this project was given CDBG funding during the 2025 cycle, and leftover funds may still remain.

Administration – The 20% cap on percentage from this category is estimated at $12,852, with $4,498 (or 35% of that 20%) available to Morro Bay for this cycle. Sixty-five percent of this allocation ($8,354) is reserved for the County’s grant administration costs, which is required under the Urban County Consortium Cooperation Agreement. The City did not submit an application for Administration funds this program cycle, so that the $4,498 could be allocated to CAPSLO’s Minor Home Repair program or Public Works’ ADA Sidewalk Repair project. This avoids the need for a separate agreement and reporting for administrative funds.

CONCLUSION
The total estimated 2026 allocation for Morro Bay, as released by the County, is $64,262.

CAPSLO’s application for Public Services funding is for $9,639, which is the maximum amount (15%) of CDBG funding that can be dedicated to this funding category. Staff recommend funding this project with the available Public Services funding. CAPSLO also applied for $41,771 in Housing / Rehabilitation funding. Staff are recommending this application for funding in the amount of $46,269. This amount is greater than what was requested because it includes the portion of the CDBG allocation that could have gone towards the City’s administration costs. The Public Works Department’s application for $46,269 in Public Facilities funding is not recommended for funding based on feedback provided to staff during last year’s CDBG funding cycle. These totals are likely to change in a minor way when the County announces the final funding amount received from HUD, sometime in early 2026.

Staff is recommending that Council approve the 2026 Draft Funding Recommendations for the two applications received from CAPSLO (Attachments 2 and 3).

ATTACHMENTS

1. Resolution No. 59-25

2. Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) Application for Public Services Funding

3. Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) Application for Housing / Rehabilitation Funding

4. City of Morro Bay Public Works Department Application for Public Facilities Funding

ONLINE LINKS

1. County of San Luis Obispo CDBG Notice of Funding Availability for 2026 https://www.slocounty.ca.gov/departments/social-services/homeless-servicesdivision/funding-availability/documents/2026/2026-action-plan-nofa

2. Community Development Block Grant (CDBG) Fact Sheet
About the Community Development Block Grant (CDBG) Program (hudexchange.info)

RESOLUTION NO. 59-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

APPROVING DRAFT FUNDING RECOMMENDATIONS FOR COMMUNITY

DEVELOPMENT BLOCK GRANT
PROJECTS FOR YEAR 2026

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, via a Cooperation Agreement with County of San Luis Obispo (hereafter referred to as “County”), a political subdivision of the State of California, executed by the City of Morro Bay (hereafter referred to as “City”) a California municipal corporation, on September 6, 2023, the City agreed to become a participant for a period of three years with the County and other cities therein as an “Urban County” under the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, under the Cooperation Agreement executed on September 6, 2023, between the County of San Luis Obispo and the City of Morro Bay, the City retains the authority to determine which projects are to be funded with its allotment of CDBG Program funds; and
WHEREAS, the CDBG Program promotes the public health, safety and welfare by providing grant funds to be used by the City and County to improve housing opportunities for low- and moderate- income households, to encourage economic reinvestment, to improve community facilities and public services, and to provide other housing-related facilities, or services; and
WHEREAS, the City expects to receive $64,262 in CDBG funds in 2026; and WHEREAS, in 2025, the County published a “Notice of Funding Availability” for projects to be funded under the 2026 CDBG Programs, which provided proposals were to be submitted by October 10, 2025; and WHEREAS, at a duly noticed public hearing on November 12, 2025, the City Council gave approval for draft funding recommendations to be forwarded to the County Board of Supervisors for 2026 CDBG projects.

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

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

2. City Manager is authorized for the current CDBG funding cycle to make pro rata adjustments to the allocation based on the final funding amount from San Luis Obispo County based on the approval of the federal budget and HUD’s final grant amount to San Luis Obispo County PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting thereof held on the 12
th day of November 2025 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

RESOLUTION NO. 59-25
EXHIBIT “A”

DRAFT FUNDING RECOMMENDATIONS

TO FORWARD TO THE

COUNTY BOARD OF SUPERVISORS
Federal Funding
Category /
Applications Received
Amount
Requested
Amount
Recommended
Public Services –
Limited to 15% of 2026
Allocation (or a
maximum of $9,639)

1. Project Name:
40 Prado
Homeless
Services Center
Applicant: Community
Action Partnership of
San Luis Obispo
County, Inc. (CAPSLO)
$9,639 CDBG
funding request
to Morro Bay
(Total request
is $117,981
combined to all
jurisdictions
and
unincorporated
areas
countywide)
$9,639
Housing /
Rehabilitation

2. Project Name:

Minor Home
Repair
Applicant: Community
Action Partnership of
San Luis Obispo
County, Inc. (CAPSLO)
$41,771 $46,269*
Public Facilities

3. Project Name:

ADA Sidewalk
Repair
Applicant: Public
Works Department, City
of Morro Bay
$46,269 $0
Total Funds
Requested
$97,679

Total Funds
Recommended
$55,908*
(Includes
Administration
funding totals
that can be
allocated
towards the
Minor Home
Repair project)
Estimated Total 2025
Funding Available
$64,262
Federal Funding Category / Applications Received Amount Requested
Amount
Recommended
Public Services – Limited to 15% of 2026 Allocation (or a maximum of $9,639)

1. Project Name: 40 Prado Homeless Services Center
Applicant: Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO)
$9,639 CDBG
funding request
to Morro Bay
(Total request
is $117,981
combined to all
jurisdictions
and
unincorporated
areas
countywide)
$9,639
Housing / Rehabilitation

2. Project Name: Minor Home Repair
Applicant: Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO)
$41,771 $46,269
Public Facilities

3. Project Name: ADA Sidewalk Repair
Applicant: Public Works Department, City of Morro Bay
$46,269 $0
Total Funds Requested $97,679
Total Funds Recommended $55,908
(Includes
Administration
funding totals
that can be
allocated towards
the Minor Home
Repair project)
Estimated Total 2025 Funding Available $64,262

Printed By: Donna Hawkins on 10/13/2025 1 of 18
Overview
Completed by [email protected] on 10/10/2025 10:15 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
Overview
County of San Luis Obispo
Public Service Grants Program
Department of Social Services
Adult and Homeless Services Branch
PO Box 8119
San Luis Obispo, CA 93403-8119

Printed By: Donna Hawkins on 10/13/2025 2 of 18
[email protected]
Community Development Block Grant (CDBG), Emergency Solutions Grant Program (ESG), and County General Fund Support (GFS) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County's Department of Social Services - Homeless Services Division website at slocounty.gov/HomelessServicesGrants.

Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on Friday, October 10, 2025.

If you have any questions about the application process, please contact the Homeless Services Division directly at [email protected].
****************************************
For each Public Service funding source, an overview is available in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA). These overviews include program descriptions, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting requirements:
 Section I.C for Community Development Block Grant (CDBG) Overview  Section I.D for Emergency Solutions Grant Program (ESG) Overview  Section I.G for General Fund Support (GFS) Overview
****************************************
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.

Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application.

Printed By: Donna Hawkins on 10/13/2025 3 of 18
A. Applicant Information
Completed by [email protected] on 10/10/2025 10:15 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
A. Applicant Information
Please provide the following information.

PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) A.2. Type of Organization
Non-Profit
A.2.a. Define Other:

A.3. Please upload the following documentation:
 Proof of Active SAM.gov Registration *Required
SAM-CAPSLO Registration 25-26 screenshot.jpg
A.3.a UEI Number: For more information, visit SAM.GOV
GBL8FWWWCLC5
A.4. Address
1030 Southwood Drive San Luis Obispo , CA 93401--5813
A.5. Is the organization faith based?
No
A.6. Date of Incorporation
12/09/1965
A.7. Please upload the following documentation:
 Incorporation Documents *Required
Articles of Incorporation.pdf
 Organization Mission Statement *Required
CAPSLO Mission Statement.pdf

Printed By: Donna Hawkins on 10/13/2025 4 of 18
 General Liability Insurance *Required
25-26 Cert of Liability Insurance.pdf
A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “CDBG Example Exhibit D-General Conditions”? Yes
A.9 Annual Operating Budget
$111,548,450.00
A.10 Number of Paid Staff
984
A.11 Number of Volunteers
1,334

CONTACT INFORMATION
A.12 Contact Person Name
Elizabeth "Biz" Steinberg
A.12a. Contact Person Title
Chief Executive Officer
A.12b. Phone Number
(805) 544-4355
A.12c. Email
[email protected]

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B. Applicant Capacity
Completed by [email protected] on 10/10/2025 10:15 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
B. Applicant Capacity
Please provide the following information.

B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources.

Since its inception in 1965, CAPSLO has received and successfully managed a variety of grants that address the unmet needs of low-income individuals and families: County - Includes but is not limited to over 20 years of funding from CBO/PHG, DSS, and CDBG funding (since 2002), as well as funding from ESG (since 2004), General Fund Support (since 2012), and more recently, Continuum of Care, CESH, and PLHA grants. State - Includes but is not limited to Office of Emergency Services, Office of Child Abuse Prevention, and Community Services Block Grant funding, which designates CAPSLO as a Community Action Agency. Federal - The majority of CAPSLO's funding comes from the Office of Head Start, which the agency has been receiving since 1965. For over 20 years we've also received funding from the Area Agency on Aging and Low-Income Home Energy Assistance Program (LIHEAP). In 2017, CAPSLO was awarded a Federal Substance Abuse and Mental Health Services Administration (SAMHSA) grant for providing services to dual-diagnosed, chronically homeless individuals in its SLO-Hub program, which was awarded another five-year term in 2024.

B.2. Describe how the organization participates in HMIS, Coordinated Entry, and the San Luis Obispo County Continuum of Care.

CAPSLO is the management entity for the San Luis Obispo (SLO) County Continuum of Care (CoC) Coordinated Entry System (CES), and has served as the management entity since 2016. In FY24, the CES finalized its system transition from CAPSLO’s Client Track database to the CoC’s HMIS, Clarity, enabling more effective data sharing and improved program alignment. CAPSLO participated in the implementation of a centralized Housing Referral system, previously managed separately by housing providers. Housing inventory is now fully integrated into CES, which also integrated the Veterans by Name list into the Community Queue to better coordinate placements with veteran-serving providers. Additionally, CAPSLO is leading the CES implementation of an Emergency Shelter Queue for Individuals and an Emergency Shelter Queue for Families, which launched in FY25 to enhance access to shelter placements through a consistent and fair process, and the initiation of the new CES Data Management Plan. Coordinated Entry has been partnering with CAPSLO shelter staff to configure an “inventory model” that represents each bed in CAPSLO’s Housing Focused Shelter Program (HFSP) and night-by-night shelter programs in Clarity, allowing those units to receive referrals. This past year, CAPSLO employed two additional staff to better fulfill the CES's needs, in addition to the CES Program Manager. These new roles increased the CES’s capacity to coordinate assessments, manage referrals, and support cross-agency collaboration.

CAPSLO worked closely with the SLO CoC to establish the first officially designated CES Oversight Committee, which will include CAPSLO and representatives from other agencies, housing developers, the local public housing authority, and individuals with lived experience, strengthening system accountability and transparency.

B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project.

CAPSLO undergoes an agency-wide, rigorous audit process annually by the firm of Brown Armstrong Certified Public Accountants. The process includes inquiry and observation to understand and evaluate CAPSLO’s internal controls, confirmations, interim testing and compliance audits, and substantive procedural analysis. Critical audit areas include compliance with federal and state awards, expenses for program and support services, accounts payable and accrued

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liabilities, program revenue and unearned deferred revenue, cash, property and equipment, and long-term debt. A summary of the audit is formally presented by Brown Armstrong to both the Audit and Finance Committees of the Board, as well as the full Board of Directors and senior management. Additionally, CAPSLO Homeless Services staff participate in County of San Luis Obispo CDBG and other HUD program reviews and desk audits as required.

B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required
Audit 2024.pdf
B.4. Describe the organization’s experience delivering related programs/projects.

For decades, CAPSLO has operated the largest homeless services team and sheltering programs in the county. Currently, 40 Prado Homeless Services Center (HSC) is the only shelter in the county offering nightly emergency shelter beds, which is crucial because the average waiting time for a shelter bed in 90-day programs is between 60 to 90 days. Our program serves those who might be ideal 90-day shelter clients, but there is no available bed for them between the time they identify the need and can be enrolled. We also don't have an upper threshold for duration in our Housing Focused Shelter Program (90-day), unlike other programs in our county. We will continue to provide shelter to individuals and families for as long as they remain engaged with our case management services beyond the initial 90 days. 40 Prado HSC is a low-barrier shelter, and we will take individuals that other shelters in the county will not serve. CAPSLO has taken the lead in pioneering many collaborative and innovative projects to address unmet needs for the homeless, working with other homeless-serving agencies. CAPSLO initiated the Recuperative Care Program, providing respite care and medical case management for medically fragile homeless individuals released from local hospitals, while the Warming/Cooling Center operations as well as the Rotating Safe Parking have expanded as their own grant-funded programs. The SLO-Hub program for dually diagnosed homeless individuals is in its second, five-year SAMHSA grant award. As the number of unsheltered individuals has increased in the county, so has CAPSLO’s outreach team increased in size and scope.

B.5. How will you document and maintain income status or presumed benefit status of each beneficiary? CAPSLO’s Homeless Services Division uses two databases, the county’s HMIS (Clarity), which is now CAPSLO’s Homeless Services Division’s primary database, and CAPSLO’s agency-wide database, Client Track, to track CAPSLO clients across all its programs, and also for SLO-HUB and Recuperative Care additional client data. CAPSLO documents and maintains the income and benefit status of each client with the CES intake form, which is then stored digitally in the Client Track database. Income verification for CDBG/ESG beneficiaries is provided in accordance with 24 CFR Part 5. CAPSLO’s Client Track is an advanced case management system that is used to collect and manage client data associated with assessments on and referrals for individual clients. CAPSLO uses the program for client file management, case management coordination, and service reporting. Both systems keep and store client files such as demographic data, family information, attendance, services accessed, individual daily client activities and incidents, services provided, meals, and referrals. All client information is stored in Client Track’s secure cloud-based system to ensure confidentiality.

B.6. Briefly describe your agency’s record keeping system with relevance to the proposed project.

As described above, CAPSLO participates in the county’s HMIS as required, and also utilizes its own database, Client Track, to collect client data that does not require HMIS entry, such as the CenCal-funded Recuperative Care Program, and SLO-Hub. Both systems keep and store client files such as demographic data, family information, attendance, services accessed, individual daily client activities and incidents, services provided, meals, and referrals.

B.7. Identify all budgeted funds for project related costs. Include leveraged funding to exhibit financial sustainability

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of the project beyond the grant term if awarded.

Approximately 54% of CAPSLO Homeless Services' Division $2.3 million 2024-25 budget was received from various local government grants; the remainder was private donations, Friends of 40 Prado fundraising, and corporate giving. A $5 million grant from the Day One Foundation was received in 2022 but is restricted for housing families, who comprise a small percentage of all shelter clients, leaving a gap for shelter operations. CAPSLO struggles with sustaining the growing operations of the Prado Homeless Services Center. With an increase in homelessness, donor fatigue and donor competition among homeless-serving agencies, sustaining funding for homeless services operations is a significant challenge.

B.8. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown on "CDBG Example D-General Conditions" and "CDBG Example Exhibit E-Special Conditions"?
Yes
B.9. Does your organization comply with the Generally Accepted Accounting Principles (as outlined in 2 CFR § 200)? Yes

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C. Proposed Project & Project
Details
Completed by [email protected] on 10/10/2025 10:16 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
C. Proposed Project & Project Details
Please provide the following information.

C.1. Name of Proposed Project
40 Prado Homeless Services Center
C.2. Project/Program Address
40 Prado Road (Additional services at 1344 Nipomo Street, and 265 South Street, SLO) San Luis Obispo, CA 93401-- 5813
C.3. Areas Served-Select all that apply
 City of Arroyo Grande
 City of Atascadero
 City of Grover Beach - Not eligible for CDBG or ESG
 City of Morro Bay
 City of Paso Robles
 City of Pismo Beach
 City of San Luis Obispo
 Unincorporated Community
Name of Unincorporated Community:
 Countywide
C.4. Provide a brief narrative of the proposed project, including projected outcomes:

The 40 Prado Homeless Services Center (Prado HSC) in SLO offers an Access Center and emergency shelter services, meals, showers, health screenings at the CHC on-site clinic, behavioral health services from the county’s mobile van, services to dual-diagnosed individuals, recuperative care for those recently released from the hospital, a Warming/Cooling Center during inclement weather, a Safe Parking program, animal kennels, a community garden, laundry, internet access, and a mail and message center to facilitate job and housing searches. Case managers and staff assist clients in creating individualized housing plans with set goals and objectives to obtain housing and selfsufficiency. CAPSLO operates the largest shelter program in SLO County, frequently providing shelter for 130-150 households per night through hoteling, shelter beds at Prado HSC, the Overflow, Safe Parking and Warming/Cooling

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Center Programs. With its new Housing Focused Shelter Program (90-day program), CAPSLO was able to house 221 participants in the 24-25 fiscal year. We project that 250 will be housed, and 1,200 sheltered in 2026-2027.

C.5. For proposed projects serving individuals at risk of or experiencing homelessness, upload your organization's HUD Annual Performance Report (APR) or CE APR generated from HMIS for the previous 12-month period. The report should be run for a single project type and correspond to the project type (Emergency Shelter, Street Outreach, etc.) for which you are applying. This information will be used by the grant review committee to assess past performance, outcomes, and alignment with funding priorities. Please be sure to not include any Client PII, including Clarity ID, along with the reports. Many review committee members will not be HMIS users.

If your organization does not currently have a project in HMIS, please provide a comparable performance report that includes outcome data and performance metrics relevant to your proposed project type.

For guidance on how to run reports in HMIS, please visit the HMIS Knowledge Base.  HUD Annual Performance Report (APR)
CAPSLO APR Access Center 09.01.2024 to 09.01.2025.pdf
CAPSLO APR Entry Exit Shelter Programs 09.01.2024 to 09.01.2025.pdf CAPSLO APR Night by Night Shelter Programs 09.01.2024 to 09.01.2025.pdf C.6. What is the level of need for this activity within SLO County? Please include data to support your answer.

San Luis Obispo County consistently ranks among one of the most expensive areas to live in the nation, with the current median home cost at $1,000,000, while the median household income is $98,312 annually. United Way’s 2025 Real Cost Measure shows a combined income of $107,098 is necessary for a family comprised of two adults and two children to meet basic needs, and two adults would need to work three minimum wage jobs to earn $93,000 per year.

In SLO County, 31% of households live below the Real Cost Measure. The rental vacancy rate has fluctuated between 2-5% over the last ten years, making affordable rentals scarce, and causing even more families to be extremely costburdened, or doubling/tripling up to pay rent. CAPSLO’s Prado Homeless Services Center (Prado HSC) routinely assists over 1,600 unhoused individuals per year. The 2024 San Luis Obispo County biennial Point-in-Time homeless enumeration report, The San Luis Obispo Community Report, showed 1,175 homeless individuals in San Luis Obispo County in January 2024. Of those, 800 were unsheltered, living on the streets, in encampments, or in vehicles. Of those who were unsheltered, 28.8% reported behavioral health illnesses, and 34.3% reported Substance Use Disorder.

When asked about their obstacles to housing, 25.8% reported physical impairments, 8.8% reported medical issues, and 33.6% reported psychiatric impairment. The county's overnight shelters are filled to capacity every night, and families with children are given priority to beds. Those living at and below the poverty level are the most affected, as the cost of Fair Market Value housing far exceeds their income.

C.7. Please upload a timeline for key steps of project implementation.  Timeline *Required
CAPSLO Milestone Timeline 26-27.pdf
C.8. Is this effort new, continuing, or expanding? Please describe.

This effort is all three: continuing, expanding, and new. CAPSLO will be continuing its Housing-Focused Shelter

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Program (HFSP) and a 90-Day bed program, which was launched last year. This housing-first model is focused on connecting clients to housing through rapid engagement with Housing Navigation and problem-solving services. These supplemental services are provided to all participants in the shelter program. Those participating in the HFSP are focused on securing housing, working with their assigned Housing Navigators and Homeless Services Workers to address any obstacles they encounter in their stay at Prado HSC, finding steady employment and/or income, and obtaining all necessary documents for housing. Having a secure place to sleep each night allows clients to better focus on working with their Case Manager and Housing Navigator, who assists clients in developing a housing plan. If appropriate, 30-day extensions are approved for clients who are unable to meet with a Housing Navigator or for those who need more time to secure housing, but have been following through with program requirements. This new system consists of 89 individual and 28 family beds, with 10 of the beds serving as night-by-night shelter beds that can either be filled by the community (for example, CAT teams, Mobile Crisis Units, and hospitals), and 12 Recuperative Care program beds (serving individuals who have recently been discharged from hospitals and would otherwise recover on the street). Participants who are only receiving Access Center services (formerly Day Center) are now able to stay at Prado HSC until 4 pm and are provided with a community dinner. CAPSLO expanded its Street Outreach program by securing a downtown office rented from St Stephen's Episcopal Church, from which additional outreach staff can be rapidly deployed. As 40 Prado HSC accommodates more and more clients, CAPSLO has added more staff, but lacks additional office space at 40 Prado HSC. Other outreach staff are now using CAPSLO offices on South Street as a base. With full funding, Prado HSC could expand its overflow program, adding an additional 10 beds for the community on any given night. This is critical, as Prado HSC will be the only provider in the entire county offering night-by-night emergency shelter beds, providing a life-saving service for the unhoused community. Often, individuals and families have to wait between 60 and 90 days for a shelter bed in the Prado HSFP or the 90-day programs of ECHO or 5CHC. Night-by-night shelter beds give individuals and families access to shelter while they are awaiting enrollment in a longer-term emergency shelter program. With an increased capacity of 40 beds, 40 Prado HSC is operating an expanded Warming Center program, which now operates year-round and is dependent only on the weather, not the time of year. New this year is the Overnight Parking program throughout six rotating sites in the City of San Luis Obispo. CAPSLO will also begin offering a Warming Center in Morro Bay once a location is secured, and in the meantime, outreach workers are connecting Morro Bay homeless residents to services at 40 Prado HSC. Another new service is the County’s behavioral health mobile clinic, which will visit 40 Prado HSC twice weekly.

C.9. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness (2022-2027).

LOE1: Create affordable and appropriately designed housing opportunities and shelter options for underserved populations – With the increasing number of unhoused individuals in SLO County, the Prado Homeless Services Center (HSC) is now at capacity every night. Families are given shelter priority or individuals, but families are approximately only 20% of shelter participants. Prado HSC continues to be the largest shelter program in SLO CoC, providing emergency shelter for 1,214 non-duplicated individuals in SLO County in FY 24-25, and is currently the only shelter in the county offering nightly emergency beds. LOE 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts - At CAPSLO, case managers and housing staff assist clients in creating individualized plans with set goals and objectives to obtain housing and self-sufficiency. They screen clients to establish which individuals have the greatest need. For eviction prevention assistance, clients must provide proof of emergency need, participate in the Case Management program and show that they can afford the monthly rent once housed. Case managers continue to work with their housed clients for six months after placement, further supporting their success. LOE 3: Improve and expand data management efforts through HMIS and coordinated entry system to strengthen data-driven operational guidance and strategic oversight. CAPSLO was involved with the County in replacing the HMIS data system. The CES implemented a new Community Queue, so that any CoC participating agency can place an individual on the list for the next available housing opportunity. LOE4: Create, identify, and streamline

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funding and resources - CAPSLO is utilizing CenCal Health funding through CalAIM for Enhanced Case Management and Recuperative Care. In addition, CAPSLO received private funding for homeless families with children. LOE5:

Strengthen Regional Collaboration – CAPSLO’s long-standing tradition of partnering with organizations to enhance and not duplicate services aligns with LOE5. CAPSLO routinely works with other organizations including those within the SLO Supportive Housing Consortium, and actively coordinates with the partner organizations that provide permanent housing. CAPSLO staff identify the best options for the most complicated and challenging situations presented and most often this includes extensive partnerships with other organizations. In its strategic planning process, CAPSLO is intentionally aligning with the San Luis Obispo Countywide Plan to Address Homelessness, 2022-2027. LOE6: Build public engagement through information-sharing and partnership - Monthly Town Hall sessions are being held at Prado HSC, allowing clients to ask questions, air concerns, and provide input. Whenever possible, CAPSLO incorporates peer leadership, especially in outreach activities.

C.10. Select all population(s) expected to be served through this project:
 Adults with children
 Adults without children
 Elderly/Senior
 Parenting Youth
 Persons Experiencing Chronic Homelessness
 Persons At Risk of Homelessness
 Veterans
 Domestic Violence Survivors
 Persons with Disabilities
 Unaccompanied Youth (under 25 years of age)
 Individuals with Co-occurring Disorders (Substance Use and Mental Health)  Low – Moderate Income Persons or Households
C.11. How does your program/service complement and collaborate with existing efforts in the County? Describe how the program/project will increase capacity of services/housing for persons experiencing homelessness and atrisk persons in the County.

CAPSLO has a long-standing tradition of partnering with organizations to enhance, not duplicate, services. With the commitment to providing participants with easier access to care, CAPSLO has worked diligently to collaborate with service providers to bring necessary services on-site. As previously noted, CAPSLO is the Lead Agency in Coordinated Entry and frequently contracts with ECHO and 5CHC. CAPSLO's commitment to and role within CES has allowed it to align programming changes with the strategic goals of the SLO CoC. Specifically, CAPSLO created a universal intake process in HMIS for CES and has increased its CES enrollments by over 100% in the first half of the CES grant year.

More specifically to this proposed program, CAPSLO operates the largest shelter program in SLO County, frequently providing shelter for 130-150 households nightly through hoteling, shelter beds at Prado HSC, and the Overflow and Warming Center Programs. Without proper funding, this critical resource will not be able to continue to operate at capacity and will increase the number of households experiencing unsheltered homelessness in SLO CoC.

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C.12. Describe any consultation with local jurisdictions to gain support for the project.

CAPSLO Homeless Services Division works with the cities of Morro Bay and San Luis Obispo to support their efforts in addressing homelessness. The City of San Luis Obispo, in addition to its CDBG allocation, also supports homeless services operations through its General Fund Support for Safe Parking, Warming Center, hotel vouchers, and outreach for the Bob Jones Bike Trail, as well as homeless prevention through the Human Relation Commission's Grants-in-Aid.

As previously stated, CAPSLO is currently working closely with City of Morro Bay staff to secure a location for a Warming Center.

C.12a. Please attach any letters of support or commitment from local governments or community partners.  Letters of Support *Required
CAPSLO - City of SLO Letter of Support 2025.pdf
C.13. Name partner agencies as applicable and describe how they will be participating in the delivery of the proposed activity.

C.14. Indicate the predicted, unduplicated performance outcome listed below:

Population Number of Individuals
Served
Number of Households
Served
Number of unsheltered persons to become sheltered 530 472 Number of people experiencing homelessness to be
entering permanent housing
225 191
Number of people experiencing Chronic Homelessness
served
598 591
Number of persons At-Risk of Homelessness served 144 134 Number of Unaccompanied Youth served 0 0
Number of Youth At-Risk of Homelessness served 91 91
Number of persons in families with children served 167 58 Total 1,755 1,537

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D. Funding & Eligible Activities
Completed by [email protected] on 10/10/2025 10:16 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
D. Funding & Eligible Activities
Please provide the following information.

D.1. Total Funding Requested
$429,261.00
D.1a. Please upload a Budget & Budget Narrative for the project for which you are applying. The budget narrative should include FTEs to be provided. Please include the value of any matching funding. Project budget must include committed and anticipated funding for total project cost--not just for funding requested in this application.  Budget and Budget Narrative *Required
CAPSLO CDBG-ESG-GFS 26-27 Budget & Narrative.pdf
D.2. Are you requesting CDBG funds?
Yes
D.2a. Amount of CDBG funds requested:
$117,981.00
D.2.b. Please indicate the amount you are requesting for each jurisdiction:

Jurisdiction Amount
Arroyo Grande $0.00
Atascadero $0.00
Morro Bay $9,639.00
Paso Robles $0.00
Pismo Beach $0.00
San Luis Obispo $79,025.00
County $29,317.00
TOTAL $117,981.00
D.2c. Estimated number of unduplicated persons to benefit from CDBG funds:
1,755
D.2d. Estimated number of unduplicated households to benefit from CDBG funds:
1,615
D.2.e. Please select the national objective that best applies to the proposed project. Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives.

Printed By: Donna Hawkins on 10/13/2025 14 of 18
Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.

Low/Moderate Income Clientele
D.2.f. Identify all eligible activities that apply to the proposed project:
 Public Services -General
 Operating Costs of Homeless/AIDS Patients Programs
 Senior Services
 Handicapped Services
 Legal Services
 Youth Services
 Transportation Services
 Substance Abuse Services
 Services for Battered and Abused Spouses
 Crime Awareness or Neighborhood Cleanups
 Fair Housing Activities
 Tenant/Landlord/Housing Counseling
 Child Care Services
 Health Services
 Services for Abused and Neglected Children
 Mental Health Services
 Job Training and Job Placement Services
 Subsistence Payments, Homeless Assistance, Rental Housing Subsidies or Security Deposits  Assistance to microenterprises (technical assistance, business support services, and other similar services to owners of microenterprises or persons developing microenterprises) D.2g. Explain how the proposed project meets the selected National Objective:

The proposed project meets the National Objective because 100% of the beneficiaries of the proposed activities will be Low/Moderate income persons. The specific group of persons the proposed project will serve are homeless persons. CAPSLO requests documentation of family/individual income for clients of the 40 Prado Homeless Services Center. This meets the CDBG primary National Objective, since more than 70% of funds received will be expended on activities that benefit Low/Moderate income clients.

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D.2h. Will the services offered by your organization increase or expand as a result of CDBG assistance? Yes
D.2i. Explain how your services will increase or expand as a result of CDBG assistance:

CAPSLO expanded its Street Outreach program by securing a downtown office rented from St Stephen's Episcopal Church, from which additional outreach staff can be rapidly deployed. As 40 Prado HSC accommodates more and more clients, CAPSLO has added more staff, but lacks additional office space at 40 Prado HSC. Other outreach staff are now using CAPSLO offices on South Street as a base. With an increased capacity of 40 beds, 40 Prado HSC is operating an expanded Warming Center program, which now operates year-round and is dependent only on the weather, not the time of year. New this year is the Overnight Parking program throughout six rotating sites in the City of San Luis Obispo. CAPSLO will also begin offering a Warming Center in Morro Bay once a location is secured, and in the meantime, outreach workers are connecting Morro Bay homeless residents to services at 40 Prado HSC. Another new service is the County’s behavioral health mobile clinic, which will visit 40 Prado HSC twice weekly.

D.2j. Describe how the project will directly benefit the populations identified.

The 40 Prado Homeless Services Center directly benefits low-income and very low-income populations who are homeless by providing shelter, providing basic needs such as showers and meals, and engaging them in a partnership with community outreach programs to set them on a path to housing. CAPSLO's system of diversion and case management ensures that homeless individuals across the county are connected to social security benefits, physical and behavioral health care, community resources, available employment training and workforce development programs, and other supportive services that promote long-term health and housing stability.

D.3. Are you requesting ESG funds?
Yes
D.3a. Amount of ESG funds requested:
$135,680.00
D.3b. Please upload your ESG Policies and Procedures for each activity for which you are applying.  ESG Policies and Procedures *Required
CAPSLO HCD Approved Policies & Procedures.pdf
D.3.c. Identify all eligible activities and their amounts that apply to the proposed project:

Eligible Activities Amount Approximate Persons Served
Emergency Shelter $135,680.00 1,755
Street Outreach $0.00 0
Rapid Re-Housing $0.00 0
Homelessness Prevention $0.00 0
HMIS $0.00 0
TOTAL $135,680.00 1,755
D.3.d. ESG Matching Funds (1:1 Match Required)
Funding Source Amount

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Private Donations $135,680.00
TOTAL $135,680.00
D.4. Are you requesting General Fund Support funds?
Yes
D.4a. Amount of GFS funds requested:
$175,600.00
D.4b. Identify all eligible activities that apply to the proposed project:

Amount Approximate
Persons Served
Emergency Shelters $175,600.00 1,755
Safe Parking $0.00 0
Essential Services for Persons Experiencing Homelessness $0.00 0 Warming Centers $0.00 0
Street Outreach $0.00 0
Tenant Based Rental Assistance-TBRA $0.00 0
TOTAL $175,600.00 1,755

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E. Supplemental Documents
Completed by [email protected] on 10/10/2025 10:16 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
E. Supplemental Documents
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.

Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application.

Documentation
Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.
 Supplemental Documentation
**No files uploaded

Printed By: Donna Hawkins on 10/13/2025 18 of 18
Submit
Completed by [email protected] on 10/10/2025 10:17 AM Case Id: 30571
Name: 40 Prado Homeless Services Center, CAPSLO -
Address: 2026 40 Prado Road, (Additional services at 1344 Nipomo Street, and 265 South Street, SLO), San
Luis Obispo, CA 93401--5813
Submit
Please provide the following information.
 The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.
 I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
 I further certify that the information provided in this Funding Application is correct, accurate, and complete.

In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.

Authorized Representative Signature
Elizabeth "Biz" Steinberg
Electronically signed by [email protected] on 10/10/2025 10:17 AM Authorized Representative Title
Chief Executive Officer

Printed By: Donna Hawkins on 10/13/2025 1 of 21
Overview
Completed by [email protected] on 10/10/2025 2:26 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
Overview
County of San Luis Obispo
Affordable Housing Program
Department of Social Services
Adult and Homeless Services Branch
PO Box 8119
San Luis Obispo, CA 93403-8119

Printed By: Donna Hawkins on 10/13/2025 2 of 21
[email protected]
Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at slocounty.gov/HomelessServicesGrants.

All applications must meet the eligibility criteria and requirements set forth in the NOFA and the respective funding program regulations. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach.

Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on October 10, 2025.

If you have any questions about the applications process, please contact the Homeless Services Division directly at [email protected].
****************************************
For each Affordable Housing funding source, an overview is available that includes program description, federal award information, eligible applicants, eligible activities, eligible beneficiaries, and reporting in the County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA):
 Section I.C for Community Development Block Grant (CDBG) Overview  Section I.E for HOME Investment Partnerships Program (HOME) Overview ****************************************
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.

Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application.

Printed By: Donna Hawkins on 10/13/2025 3 of 21
A. Applicant Information
Completed by [email protected] on 9/23/2025 9:57 AM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
A. Applicant Information
Please provide the following information.

PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
Community Action Partnership of San Luis Obispo County, Inc.

A.2. Type of Organization
Non-Profit
A.2.a. Define Other:

A.3. UEI Number: For more information, visit SAM.GOV
GBL8FWWVCLC5
A.3.a. Please upload proof of active SAM.gov registration for your organization.  Proof of Active SAM.gov Registration *Required
SAM-CAPSLO Registration 2025-2026 screenshot.jpg
A.4. Address
1030 Southwood Dr. San Luis Obispo, CA 93401
A.5. Is the organization faith based?
No
A.6. Date of Incorporation
12/09/1965
A.7. Please upload the following documentation:
 Organizational Chart *Required
CAPSLO Org Chart 1-25.pdf
 Incorporation Documents *Required
25-26 Cert of Liability Insurance.pdf

Printed By: Donna Hawkins on 10/13/2025 4 of 21
Articles of Incorporation.pdf
 General Liability Insurance *Required
25-26 Cert of Liability Insurance.pdf
Articles of Incorporation.pdf
A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “Example Exhibit D - General Conditions”? Yes
A.9. Annual Operating Budget
$111,548,450.00
A.10. Number of Full-Time Paid Staff
892
A.11. Number of Part-Time Paid Staff
26 A.12. Number of Volunteers
1,334

CONTACT INFORMATION
A.13. Contact Person Name
Jim McNamara
A.13a. Contact Person Title
CAPSLO Energy Director
A.13b. Phone Number
(805) 541-4122
A.13c. Email
[email protected]

FINANCE CONTACT INFORMATION
A.14. Finance Contact Person Name
Joan Limov
A.14a. Finance Contact Person Title
Chief Financial Officer
A.14b. Finance Phone Number

Printed By: Donna Hawkins on 10/13/2025 5 of 21
(805) 544-4355
A.14c. Finance Email
[email protected]

Printed By: Donna Hawkins on 10/13/2025 6 of 21
B. Applicant Capacity
Completed by [email protected] on 10/10/2025 2:36 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
B. Applicant Capacity
Please provide the following information.

B.1. Describe your organization’s history of receiving and managing grants from County/State/Federal sources.

Since its inception in 1965, CAPSLO has received and successfully managed a variety of grants that address the unmet needs of low-income and vulnerable individuals and families through County, State, and Federal sources. County grants include but are not limited to CBO/PHG, Departments of CDBG, Social Services (DSS), Public Health, Behavioral Health, Probation, ESG, General Funds, and more recently, Coordinated Entry and PLHA grants. State grants include but are not limited to the Office of Emergency Services, Office of Child Abuse Prevention, Department of Education, Department of Social Services, and Community Services and Development (CSD), which designates the organization as a Community Action Agency because it distributes funds from the Community Services Block Grant (CSBG). Federal - The majority of CAPSLO's funding comes from the Administration for Children and Families, Office of Head Start, which the agency has been receiving since 1965, but also Substance Abuse and Mental Health Services Administration (SAMHSA) and the Department of Veteran Affairs. The Energy Division, the focus of this application, receives funding from CSD for the Low-Income Home Energy Assistance Program (LIHEAP), Department of Energy for the Weatherization Assistance Program (DOE WAP) and Bipartisan Infrastructure Law Weatherization Assistance Program (Bil WAP), the Area Agency on Aging, Santa Barbara County CDBG, City of Pismo Beach, City of Santa Maria, andPG&E.

B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and/or has recently completed (regardless of funding source).

In the past five years, the agency completed 34 Prado as a licensed substance use disorder facility and two Head Start child care centers are nearing completion in Atascadero and Salinas. Energy Services has completed an average of 40 larger home repair projects per year over the past four years.

B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project.

CAPSLO undergoes an agency-wide, rigorous audit process annually by the firm of Brown Armstrong Certified Public Accountants. The process includes inquiry and observation to understand and evaluate CAPSLO’s internal controls, confirmations, interim testing and compliance audits, and substantive procedural analysis. Critical audit areas include compliance with federal and state awards, expenses for program and support services, accounts payable and accrued liabilities, program revenue and unearned deferred revenue, cash, property and equipment, and long-term debt. A summary of the audit is formally presented by Brown Armstrong to both the Audit and Finance Committees of the Board as well as the full Board of Directors and senior management annually.

B.3.a. Please upload your organization's Most Recent Financial Audit.  Most Recent Financial Audit *Required
Audit 2024.pdf

Printed By: Donna Hawkins on 10/13/2025 7 of 21
B.4. Briefly describe your organization’s record keeping system with relevance to the proposed project.

Client and household demographic data is captured, including household income, size, disability status, age, services provided, etc. Appropriate income documentation is required, which includes one of the following: recent pay-stubs, bank statements, income tax returns, or proof of participation in an approved alternative low-income program (provided the income thresholds are equal to or lower than the HUD identified income levels). All copies of client household data are kept in client files, and recorded in Hancock Software, the Energy Service's program database, and in CAPSLO's agency-wide database, ClientTrack. The agency will be transitioning from ClientTrack to WIPFLI starting October 1; full backup of client data is ensured.

B.5. Describe how your organization will document and maintain income status of each beneficiary in compliance with regulations?
Energy Services will collect income documentation from all household members and documentation of home ownership as part of the enrollment process for each beneficiary. All documents will be kept in client files along with completed applications.

B.6. Describe your project staff’s experience and capacity to comply with Section 3 requirements (as outlined in 24 CFR Part 75).

The Energy Services Director is responsible for all areas of the Weatherization, Utility Assistance, and Home Repair programs, including staff supervision; budgeting and financial management; program administration; achievement of each program's goals and objectives; marketing and promotion; research and new program development; technical support and construction management; quality control; and continuous program improvement in San Luis Obispo, Monterey, Santa Cruz, and northern Santa Barbara counties. Under the supervision of the Program Director, three Crew Supervisors oversee all construction and home repair work, monitor quality, and ensure compliance with program standards and building codes. Energy Outreach Specialists conduct site visits, interview clients, complete intake applications, collect income documentation and proof of home ownership, and conduct pre-assessments for the home repair projects. Administrative staff, including Program Specialists and Finance Specialists, organize client files, process building permit applications, schedule work and prepare invoices and reports. Under supervision of the Crew Supervisor, Installers and Technicians inspect homes to determine materials needed and repairs to be made; install weatherization measures and perform home repairs on designated homes for funded programs; and maintain accurate records of work performed and materials used on the job. Repairs are carried out by CAPSLO staff who work under the company's contractor's license (#623259). The Program Director, along with administrative and field staff, average over 20 years of experience in all aspects of the program. They participate in annual training and updates with SLO County Adult Protective Services staff.

B.7. If the County allocated funds to your organization in previous years, do any of those funds remain unspent? Yes
B.7.a. Please provide the following information:

Project Name Funding Source and Year Remaining Amount
Minor Home Repair County of San Luis Obispo 2025 $64,550.00 Minor Home Repair City of Pismo Beach $18,600.00
We have projects lined up and are
working on them daily.
$0.00
$83,150.00
B.8. Does your organization comply with the Generally Accepted Accounting Principles as outlined in 2 CFR § 200? Yes

Printed By: Donna Hawkins on 10/13/2025 8 of 21

Printed By: Donna Hawkins on 10/13/2025 9 of 21
C. Proposed Project & Project
Details
Completed by [email protected] on 10/10/2025 2:55 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
C. Proposed Project & Project Details
Please provide the following information.

C.1. Name of Proposed Project
Minor Home Repair
C.2. What is the estimated total project completion cost? $675,266.00
C.3. Project/Program Address(es)
3970 Short St., Suite 110 San Luis Obispo, CA 93401--4547 C.4. Accessor's Parcel Number(s).

There will be separate Accessor's Parcel Numbers for each home repair project. These will be collected at the time of client intake and enrollment.

C.5. Areas Served-Select all that apply
 City of Arroyo Grande
 City of Atascadero
 City of Morro Bay
 City of Paso Robles
 City of Pismo Beach
 City of San Luis Obispo
 City of Grover Beach - Not eligible for CDBG or HOME
 Unincorporated Community
Name of Unincorporated Community:
 Countywide
C.6. Will the project require any acquisitions?
No

Printed By: Donna Hawkins on 10/13/2025 10 of 21
C.6.a. Please upload the following documentation:
 Appraisal of Property *Required
**No files uploaded
C.6.b. What is the proposed purchase amount?
$0.00
C.6.c. What is the anticipated escrow closing date?
C.7. Will the current owner, residential occupants, and/or commercial occupants be displaced by the project? No
C.7.a. Please upload the following documentation:
 Relocation Plan or Certified Tenant Notifications *Required **No files uploaded
C.7.b. Will the displacement be temporary or permanent? C.7.c. How long will the displacement last?
C.7.d. Describe how the relocation costs will be paid. Include these costs in your Sources and Uses document.

C.8. Provide a complete description of the proposed project and proposed outcomes:

The project involves the completion of minor home repairs and accessibility improvements in homes occupied by lowand very low-income members of the community. The agency will perform outreach and work with its partners to identify households that qualify for this assistance and have needs that can be met through the program. Once projects are identified, the program will develop a project description and cost estimate for each project and submit that information to County staff for review and approval. Approved projects will then be scheduled for work to be completed by agency staff. The outcome is to help vulnerable members of our community remain safely in their own homes, improving their self-sufficiency and independence and thereby reducing homelessness and dependency.

C.8.a. Number and Unit Type (size) of Proposed Units Created and/or Rehabilitated:

Unit Type (Size) Created Units Rehabbed Units
Single-family homes 0 35
Manufactured homes 25
C.8.b. Of the total number of new units created, how many will be deed-restricted? 0 C.9. Please upload a timeline for key steps of project implementation. Include key steps or phases of project implementation such as, but not limited to, the following: predevelopment, financing, use permitting, construction

Printed By: Donna Hawkins on 10/13/2025 11 of 21
permitting, demolition, grading, construction finance close, construction milestones, placed in service date, permanent loan conversion, etc.
 Timeline *Required
C9 Timeline for key steps of project implementation.pdf C.10. Please upload a complete set of drawing/plans. Also include any maps or photos available.  Maps, Photos, Drawings, Plans *Required
Minor Home Repair does not possess any maps.pdf
C.11. Please upload the Most Recent Market Study for the project. The market study is required for HOME funding.

It is not required but is recommended for all other funding.  Most Recent Market Study
**No files uploaded
C.12. Describe site and neighborhood standards including proximity to services, transportation, and employment:

This will vary. The program will involve completing projects on homes located throughout the County of San Luis Obispo and cities identified.

C.13. Describe in detail the current zoning designation of the project site.

N/A
C.14. Describe in detail the current land use of the project site.

N/A
C.15. Explain how the site’s current land use and zoning designation are, or are not, consistent with the proposed project.

N/A
C.16. Provide an explanation of efforts and a timetable to obtain the necessary jurisdictional amendments to bring forth the project.

N/A
C.17. Have necessary Land Use Permits and/or Construction Building Permits been issued? No
C.17a. If yes, what is their current expiration date(s)? C.17b. If no, indicate when the permit(s) will be applied for or issued:

We will obtain construction building permits when and if they are needed.

C.18. Describe how the project will align with a Line of Effort (or multiple Lines of Effort) to support the San Luis

Printed By: Donna Hawkins on 10/13/2025 12 of 21
Obispo Countywide Plan to Address Homelessness (2022-2027).

Minor Home Repair aligns best with the county's "Line of Effort 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts." This project is a supportive service for one of the county's identified beneficiary groups -- older adults/medically fragile. Minor Home Repair keeps this population safely housed and helps prevent homelessness by amending substandard housing and accessibility issues.

C.19. Select all population(s) expected to be served through this project and include number of units expected for each chosen population:
 Low-/moderate-income households
Expected number of units:
60  Multifamily
Expected number of units:
 Age Restricted (including seniors)
Expected number of units:
 Persons Experiencing Homelessness
Expected number of units:
 Persons with Disabilities
Expected number of units:
45  Person Experiencing Chronic Homelessness
Expected number of units:
 Farmworkers
Expected number of units:
5  Veterans
Expected number of units:
10

Printed By: Donna Hawkins on 10/13/2025 13 of 21
 Domestic Violence Survivors
Expected number of units:
 Unaccompanied Youth (under 25 years of age)
Expected number of units:

C.20. Has your organization previously received a grant to serve any of the populations expected to be served?? Yes
C.20a. Provide a brief description of those grant activities and the outcomes you achieved:

Since 1980, we have received multiple federal, state and local grants to serve the populations expected to be served.

These include Low-Income Home Energy Assistance Program (LIHEAP), Department of Energy Weatherization Assistance Program (DOE WAP), Area Agency on Aging Senior Home Repair Program, and CDBG Home Repair Programs with San Luis Obispo and Santa Barbara counties as well as local municipalities. LIHEAP and DOE WAP support the weatherization of over 250 homes per year on average, providing diagnostic testing (blower door test, duct system testing and sealing, combustion appliance safety testing, replacement of furnaces, water heaters and cooking appliances, installation of weathering measures like attic insulation, door weatherstripping, windows, water saving measures, and carbon monoxide and smoke alarms. Energy Services completes minor repairs, like the installation of grab bars and handrails, for approximately 500 households per year in our Senior Home Repair Program, funded by the Area Agency on Aging. Energy Services completes from 40 to 100 larger Home Repair projects with the CDBG-funded Minor Home Repair Program, which covers San Luis Obispo and Northern Santa Barbara counties.

C.21. Please name partner agencies as applicable and describe how they will participate in the delivery of the proposed project:

Minor Home Repair and other programs targeted at seniors, the disabled, and lower income households benefit from mutual referral of clients for services. Clients are referred to CAPSLO for home repair services by service providers, such as the Department of Social Services’ (DSS) Adult Protective Services, the Social Security Administration, the Area Agency on Aging, in-home health service providers, food service providers (food pantries, Meals That Connect, Senior Nutrition), and other senior services. This program, along with County senior-serving programs, cross-refer to one another when additional support services are identified. Programs work together to ensure the safety and independence of San Luis Obispo County seniors. This program has consistently been supported by local jurisdictions, evidenced by the many years of CDBG funding received by both SLO County, City of Pismo Beach, City of Santa Maria and, more recently, County of Santa Barbara.

C.22. Does the proposed project have support from the community? Yes
C.22a. Please upload any letters of support or commitment from local governments or community partners.  Letters of Support
Letter of Support for Minor Home Repair Program in Morro Bay - 2026 CDBG Funding.pdf

Printed By: Donna Hawkins on 10/13/2025 14 of 21
C.23. Has an environmental review been completed, CEQA and/or NEPA?  Yes - CEQA Review Complete
 No - CEQA Review Not Complete
 Yes - NEPA Review Complete
 No - NEPA Review Not Complete
 Yes - Both Have Been Completed
 No - Neither Have Been Completed
C.24. Has a Phase I or Phase II environmental assessment been conducted for the property? No
C.24a. Please upload the following documentation:
 Environmental Assessment, Phase I or II *Required
**No files uploaded
C.25. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? No
C.25a. Please upload the following documentation:
 Archeological/Historical Survey, Phase I or II *Required **No files uploaded
C.26. List and describe any known hazards-e.g., asbestos, radon, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable.

Lead-based paint may be present in homes built prior to 1978. CAPSLO is an EPA-certified contractor and field staff have completed applicable training in lead-safe work practices.

C.27. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site?
No
C.28. Are the building(s)/structure(s) located on a historic site or within a local historic district? No
C.29. Is the project located within a 100-year and/or 500-year flood zone? Yes
C.29a. How will the project mitigate potential flooding on the site? There will be multiple projects, some of which may be located within designated flood zones, which will be addressed in the environmental review process for each project.

Printed By: Donna Hawkins on 10/13/2025 15 of 21
C.29b. Does your organization have flood insurance for the project site? No
C.30. Will demolition be required?
No
C.31. Are there any existing buildings on the project property that were constructed prior to 1978? Yes
C.31a. Has an asbestos risk assessment report(s) been prepared for the building(s)? No
C.31b. Has the building(s) been abated for asbestos?
No
C.31c. Has a lead hazard risk assessment report(s) been prepared for the building(s)? No
C.31d. Has the building(s) been abated for lead paint?
No
C.31e. Will children occupy the building(s)?
Yes
C.31f. Indicate the age range of the children that will occupy the building:
0-18

Printed By: Donna Hawkins on 10/13/2025 16 of 21
D. Funding & Eligible Activities
Completed by [email protected] on 10/10/2025 2:56 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
D. Funding & Eligible Activities
Please provide the following information.

D.1. Total Project Funding (include all Sources and Uses of funding) $675,266.00
D.1.a. Please upload a Sources & Uses document for your proposed project:
 Sources and Uses *Required
Minor Home Repair Funding Sources and CDBG Allocation.pdf D.1.b. Please upload all Commitment Letters for Funds. Required to demonstrate the 25% HOME matching funds; not required but recommended for all other funding requests.  Commitment Letters for Funds *Required
Letter of Support for Minor Home Repair Program in Morro Bay - 2026 CDBG Funding.pdf D.1.c. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? There are no maintenance costs associated with this project. The work involves providing home modifications on individual homes. Regarding D.1.a, Sources and Uses, a program breakout of funding sources and CDBG requests is attached.

D.1.d. Please upload the 20-Year Pro Forma for the project to demonstrate continued viability and affordability of the project for at least 20 years.
 Pro Forma (20-year) *Required
Pro Forma form.docx
D.2. Are you requesting HOME funds?
No
D.2.a. Amount of HOME funds requested:
$0.00
D.2.b. Proposed number of HOME-assisted (deed-restricted) units:

Printed By: Donna Hawkins on 10/13/2025 17 of 21
D.2.c. HOME Matching Funds:

Sources Amount
$0.00
D.2.d. Identify all eligible activities that apply to the proposed project:
 Acquisition
 Rehabilitation
 Relocation
 Demolition
 Site Preparation
 New Construction
 Multi-Family
 Single Family
D.2.e. Please indicate the number and type of all units CREATED Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident
Manager
81% and higher
AMI
Total 0 0 0 0 0
D.2.f. Is your project for REHABILITATION of existing units only? Please indicate the number and type of all EXISTING Units:

Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident
Manager
81% and higher
AMI
Total 0 0 0 0 0
Please indicate the number and type of all units AFTER rehabilitation Unit Type 30% AMI 31 to 50% AMI 51 to 80% AMI Unrestricted Resident
Manager
81% and higher
AMI
Total 0 0 0 0 0
D.3. Are you requesting CDBG funds?
Yes
D.3.a. Amount of CDBG funds requested:

Printed By: Donna Hawkins on 10/13/2025 18 of 21
$545,626.00
D.3.b. Identify all eligible activities that apply to the proposed project:
 Acquisitions
 Rehabilitation
 Demolition
 Clearance and Site Preparation - In anticipation of a HOME funded project D.3.c. Are at least 51% of the units in the project designated as low-/moderate-income units? Yes
D.3.d. How many new deed-restricted units will be constructed with CDBG funds? 0 D.3.e. Estimated number of unduplicated households to benefit from CDBG funds:

Beneficiary Type Estimated Number
Unduplicated Households 60
D.3.f. Please select the national objective that best applies to the proposed project.

Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives.

Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.

Housing
SLUM OR BLIGHT: Select which criteria the proposed project intends to qualify under to meet the Slums or Blight objective
D.3.g. Explain how the proposed project meets the selected National Objective:

Minor Home Repair provides disabled, elderly, or low-income individuals and families who do not have sufficient resources to make necessary safety- and access-related repairs and/or improvements to their homes. Home repairs include installation of health and safety devices, grab bars, handrails, smoke alarms, carbon monoxide detectors, handheld showerheads, minor plumbing, carpentry, electrical, and drywall. Accessibility-related repairs include widening of entryways and hallways, ramps, wheelchairs lifts, or other larger improvements that are needed to allow access to, from, and inside the home. These critical services allow individuals to remain in their home and avoid costly institutionalization. When screening clients in need, several factors are considered, including health and safety, disability, economic need, and age. In 2023, there were 80,448 persons over age 60; the median age was 70. The county has a larger proportion of seniors over 65 at nearly 22% than the state at 15% or nation at 17%; this has significant repercussions on the county’s economy, housing, and health care systems. Among those over 60, 7.6% (5,987) were below the 100% federal poverty level in 2023. Among those 65 and over, 6.8% (4,067) of the county’s population were in poverty. This does not include seniors under the 200% poverty level. Among those over 60 in the

Printed By: Donna Hawkins on 10/13/2025 19 of 21
county, 26.7% had a disability.

D.3.h. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as “Example Exhibit D - General Conditions” and “Example Exhibit E - Special Conditions”.

Yes

Printed By: Donna Hawkins on 10/13/2025 20 of 21
E. Supplemental Documents
Completed by [email protected] on 10/10/2025 2:26 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
E. Supplemental Documents
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.

Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application.

Documentation
Please upload any other documentation that should be considered during review of your application. Multiple files may be uploaded if needed.
 Supplemental Information
EPA Letter of Approval Certification.pdf
EPA ApprovalCertificate_NAT-33515-4.pdf
Bureau of Household Goods & Services - CAPSLO License.pdf CSLB LIcense - CAPSLO.pdf

Printed By: Donna Hawkins on 10/13/2025 21 of 21
Submit
Completed by [email protected] on 10/10/2025 2:57 PM
Case Id: 30580
Name: Minor Home Repair, Community Action
Partnership of San Luis Obispo County, Inc. -
2026
Address: 3970 Short St., Suite 110, San Luis Obispo, CA 93401--4547
Submit
Please provide the following information.
 The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.
 I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
 I further certify that the information provided in this Funding Application is correct, accurate, and complete.

In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.

Authorized Representative Signature
Elizabeth "Biz" Steinberg
Electronically signed by [email protected] on 10/10/2025 2:57 PM Authorized Representative Title
Chief Executive Officer

Printed By: Erik Valentine on 10/22/2025 1 of 14
Overview
Completed by [email protected] on 10/9/2025 7:51 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
Overview
County of San Luis Obispo
Public Facilities and Infrastructure Program
Department of Social Services
Adult and Homeless Services Branch
PO Box 8119

Printed By: Erik Valentine on 10/22/2025 2 of 14
San Luis Obispo, CA 93403-8119
[email protected]
Community Development Block Grant (CDBG) funding is available. The County of San Luis Obispo 2026 Action Plan Notice of Funding Availability (NOFA) is posted on the County’s Department of Social Services – Homeless Services Division website at slocounty.gov/HomelessServicesGrants.

Please review the Notice of Funding Availability (NOFA) before submitting your application. All applications must meet the eligibility criteria and requirements set forth in the NOFA. The Urban County of San Luis Obispo receives funding from local, state, and federal sources including Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG). Please be aware that the CDBG, HOME, and ESG fund sources are not permitted to support activities or projects located in the City of Grover Beach.

Applications for the 2026 Action Plan NOFA will be accepted until the 5:00 pm submission deadline on Friday, October 10, 2025.

If you have any questions about the applications process, please contact the Homeless Services Division directly at [email protected].
****************************************
For Public Facilities and Infrastructure projects, CDBG funds may be used by the grantee or other public or private nonprofit entities for acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of architectural barriers to accessibility), emergency shelters, transitional housing, or installation of public improvements or facilities (except for buildings for the general conduct of government). Reference: § 570.201(c). Subject to site visit during application review.

Eligible types of facilities and improvements include:
• Infrastructure improvements (construction or installation) including, but not limited to streets, curbs, water and sewer lin • Neighborhood facilities including, but not limited to public schools, libraries, recreational facilities, parks, playgrounds; an • Facilities for persons with special needs such as facilities for the homeless or domestic violence shelters, nursing homes, o ****************************************
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.

Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review. This may negatively impact scoring of your application.

Printed By: Erik Valentine on 10/22/2025 3 of 14

Printed By: Erik Valentine on 10/22/2025 4 of 14
A. Applicant Information
Completed by [email protected] on 10/9/2025 9:02 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
A. Applicant Information
Please provide the following information.

PRIMARY APPLICANT INFORMATION-LEAD AGENCY
A.1. Organization Name
City of Morro Bay
A.2. Type of Organization
Government Entity
A.3. UEI Number: For more information, visit SAM.GOV
KAFQZMM3MRA5
A.3a. Please upload your organization's Proof of Active SAM.gov Registration:
 Proof of Active SAM.gov Registration *Required
Morro Bay SAM Renewal status 7.16.2025.pdf
A.4. Address
595 Harbor Street
Morro Bay, CA 93442-1907
A.5. Is the organization faith based?
No
A.7. Please upload the following documentation:
 General Liability Insurance *Required
Program_Certificate_LP_MO_2025–26 (2).pdf
A.8. REQUIRED ACKNOWLEDGEMENT OF INSURANCE REQUIREMENTS. Has your organization read and understood the insurance requirements listed in “CDBG Example Exhibit D-General Conditions”? Yes

CONTACT INFORMATION
A.12. Contact Person Name
Erik Valentine
A.12a. Contact Person Title

Printed By: Erik Valentine on 10/22/2025 5 of 14
Associate Planner
A.12b. Phone Number
(805) 772-6211
A.12c. Email
[email protected]

Printed By: Erik Valentine on 10/22/2025 6 of 14
B. Applicant Capacity
Completed by [email protected] on 10/9/2025 8:00 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
B. Applicant Capacity
Please provide the following information.

B.1. Describe the organization’s history of receiving and managing grants from County/State/Federal sources.

The City of Morro Bay has participated in the Urban County Consortium since 2011, consistently receiving and managing CDBG funds each year. Prior projects have included pedestrian accessibility/sidewalk projects and funding assistance to local nonprofit organizations for homeless services. Recently, the City received LEAP Grant funding in 2020 for an update to the Housing Element, a project that spanned from January 2020 through May 2023. The project overcame several challenges on its way to completion, perhaps most notably in the form of the global pandemic. The City has also recently received LEAP funding to develop a pre-designed accessory dwelling unit initiative, a project that was completed and implemented earlier this year. In addition, the City has received grant funding through the California Coastal Commission to perform an update to its 1996 Waterfront Masterplan. This comprehensive update is currently underway.

B.2. Briefly list any recent development projects your organization has proposed, is currently working on, and has completed, regardless of funding source.
- Active Transportation / Active Corridor Studies (In-progress) - ADA Accessibility Upgrades at Quintana and Main Streets Intersection (In-progress) - Annual Pavement Management Program (Arterial Digout Project) FY 21/22 (Inprogress) - Annual Pavement Management Program (Surface Seal Project) FY 22/23 (In-progress) - Annual Pavement Management Program FY 23/24 (In-progress) - Annual Storm Drain Replacement and Major Maintenance Project (Inprogress) - Beach Street Slips (North & South) (In-progress) - Boat Launch Ramp & Float Replacement Plan (Inprogress) - Bonita Fire Station Remodel (In-progress) - Brackish Water Reverse Osmosis Building Improvements (Inprogress) - City Park (and other parks) Play Equipment (In-progress) - Citywide Capital and Facilities Planning - Facilities Condition and Needs Assessment (FCNA) (In-progress) - Citywide Speed Survey (In-progress) - Coleman Park Restroom Renovation and Park Improvements (In-progress) - Corp Yard R/O Building Roof Repairs (In-progress) - Electric Vehicle Charging Stations - Del Mar Park (In-progress) - Electric Vehicle Charging Stations - Embarcadero (Inprogress) - Emergency Storm Drain Repair - Sequoia Court (In-progress) - Emergency Storm Drain Repair - Juniper / Elena (In-progress) - Harbor Building Security Improvements (In progress) - Harbor Capital Needs Assessment (In progress) - Harbor Vessels/Equipment (In-progress) - Lift Station No. 1 Force Main Replacement (In-progress) - Lila Kaiser Parking Lot Rehabilitation and ADA Upgrades (In-progress) - Local Roadway Safety Plan (LRSP) (In-progress) - LRSP Implementation and Safety Improvements (In-progress) - Morro Basin Wellfield Rehabilitation (In-progress) - North T-Pier Renovations (In-progress) - Nutmeg Tank and related Pressure Zone Improvements (In-progress) - OneWater Plan Update (In-progress) - Outfall Inspection, Condition Assessment and Cleaning (In-progress) - Repave Police Annex Parking Lot (In-progress) - Reskin Reverse Osmosis Treatment Building (In-progress) - RO Building Tank & Piping Modification (In-progress) - RO Membrane Replacement (In-progress) - Sequoia Ct Emergency Storm Drain Repair (In-progress) - Sidewalk Improvements and Street Tree Replacements Project (In-progress) - SR1/SR41/Main St Intersection Improvements (In-progress) - Storm and Flooding Damages - Facilities and Equipment (In-progress) - Storm and Flooding Damages - Pavement and Pavement Repairs (In-progress) - Storm Recovery - Dock Repairs (Inprogress) - Tidelands Boat Launching Facility and Float Replacement (In-progress) - Trash and Recycling Can Replacements (In-progress) - Utility Hole (Manhole) Rehabilitation Project (In-progress) - Veteran's Hall Building

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Improvements (In-progress) - Wastewater Collections System Improvements – Main Street and Atascadero Road (Inprogress) - Wastewater Collections System Improvements – Backyard Sewer Main Improvements (In-progress) - Wastewater Collections System Improvements – Beachcomber Main Replacement (In-progress) - Wastewater Treatment Plant Decommissioning (In-progress) - Water Tank Rehabilitation (In-progress) - Waterways and Storm Systems Management Plan (In-progress) - WRF Project (In-progress) B.3. Briefly describe your organization’s auditing requirements (as outlined in 2 CFR § 200.500 and 24 CFR § 5.801), including those for the proposed project.

The City requires an annual audit of all funds according to the standards applicable to financial audits contained in "Government Auditing Standards" issued by the Comptroller General of the United States.

B.3.a. Please upload the following documentation:
 Most Recent Financial Audit *Required
FY 2023-24 Annual Comprehensive Financial Report.pdf
B.4. Describe project staff's experience with Section 3 (as outlined in 24 CFR Part 75).

N/A
B.5. Briefly describe your agency’s record keeping system with relevance to the proposed project.

The City maintains complete records of all projects, permits, and transactions. Digital files are maintained in each instance, with paper files being kept for an appropriate amount of time if they are created. Files include financial tracking spreadsheets, complete staff reports, project photos, invoices, pay stubs, and other relevant communications like staff presentations, public correspondence, and more.

B.6. Do you have any funds remaining from prior Fiscal Year allocations? If so, please list the project you received funding for, the fiscal year(s) you received the funding, and the remaining amount(s) for each fiscal year(s).

The City of Morro Bay has $131,190.30 in funds remaining allocated to the Quintana Road ADA Improvement Project, which includes funds from the 2024 CDBG cycle as well as from prior year funds and reallocations. Additionally, the City received $54,750 in funding last year for this same initiative.

B.7. How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? The City plans to fund the operation and maintenance costs associate with this project through the Annual Pavement Management Program outlined in the FY2025-26 Operating and Capital Budget, which has been adopted by the City Council and is currently in effect.

B.8. Does your organization comply with the Generally Accepted Accounting Principles as outlined in 2 CFR § 200? Yes
B.9. REQUIRED ACKNOWLEDGEMENT FOR FEDERAL GRANTS OR CONTRACTS. Does your organization certify that, if awarded funds, it will comply with the requirements as shown as "CDBG Example D-General Conditions" and "CDBG Example Exhibit E-Special Conditions"?
Yes

Printed By: Erik Valentine on 10/22/2025 8 of 14
C. Proposed Project & Project
Details
Completed by [email protected] on 10/10/2025 8:21 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
C. Proposed Project & Project Details
Please provide the following information.

C.1. Name of Proposed Project
ADA Sidewalk Repair
C.2. Project/Program Address
595 Harbor Street
Morro Bay, CA 93442
C.3. Accessor's Parcel Number(s), if applicable.

No APNs for City-owned right of way.

C.4. Areas Served-Select all that apply
 City of Arroyo Grande
 City of Atascadero
 City of Grover Beach (Restrictions apply if selecting the City of Grover Beach. Please refer to NOFA.)  City of Morro Bay
 City of Paso Robles
 City of Pismo Beach
 City of San Luis Obispo
 Countywide
 Unincorporated Community
C.5. Please select which eligible category applies to the project:

Neighborhood Improvement Projects – Curb and sidewalk replacement, major storm water management improvements, street reconstruction, or water main and sewer main replacement.

C.7. Describe the proposed project in detail. What activities are to be undertaken? The City has hundreds of City-owned street trees along roadway frontage throughout the city. Many of the street trees that are mature were planted many years ago are causing destruction to sidewalks, curb and gutter, asphalt roadway, and other public infrastructure. The damage to city infrastructure is an unfunded liability to the City from a maintenance and safety perspective. In addition, these areas where uplift of sidewalk has occurred cause areas to be

Printed By: Erik Valentine on 10/22/2025 9 of 14
out of compliance with the Americans with Disabilities Act (ADA). This project would be to correct some areas where street trees have caused damage and remove the tree and replace with a more appropriate street tree with an underground growing zone so that the roots do minimal damage to the infrastructure. The project would also include the replacement of sidewalks, curb and gutter, curb ramps, and portions of roadway that have been affected by street trees. In some cases, the project would involve filling sidewalk gaps that affect accessibility. The proposed improvements will include sidewalk deficiencies in the Morro Bay downtown area, including sections of Morro Bay Boulevard, Harbor Street, Main Street, Monterey Avenue, and Napa Avenue.

C.7.a. Please upload a complete set of drawings/plans:
 Maps, Photos, Drawings, Plans *Required
Napa Avenue Repairs.png
Monterey Avenue Sidewalk Gap.png
C.8. Please upload a timeline for key steps of project implementation:
 Timeline *Required
ADA Sidewalk Repair Timeline.pdf
C.9. Will residential or commercial occupants be displaced by the project? No
C.10. What is the current zoning of the project site?
All locations of the proposed project will occur in City-owned right of way, and are not zoned.

C.11. Is the project site zoned correctly for the proposed activity? Yes
C.12. Have necessary Land Use Permits and/or Construction Building Permits been issued? No
C.12b. Indicate when the permit(s) will be applied for or issued:

The appropriate permit(s) will be applied for and issued when specific plans and drawings have been made for each segment of sidewalk to be repaired or replaced.

C.13. Is the project required to pay a prevailing wage:

Yes
C.14. Explain how Section 3 benchmarks will be met.

N/A
C.15. Explain how your project will be marketed towards MBE/WBE.

The proposed project will bring improvements and repairs to existing ADA infrastructure within the City's streetscape, and bring additional areas into compliance with ADA regulations as well. These will service the entire population of Morro Bay, including all residents, business owners, and tourists alike. These improvements benefit all, and help to create a better Morro Bay that is more accessible to everyone.

Printed By: Erik Valentine on 10/22/2025 10 of 14
C.16. Describe how the project will align with a (or multiple) Line(s) of Effort to support the San Luis Obispo Countywide Plan to Address Homelessness.

The project does not tie in directly with any of the six (6) Lines of Effort in the San Luis Obispo Countywide Plan to Address Homelessness, but perhaps aligns adjacently to Line of Effort 2: Focus efforts to reduce or eliminate the barriers to housing stability for those experiencing homelessness or risk of homelessness, including prevention, diversion, supportive services, and housing navigation efforts. Seniors make up a significant proportion of the City of Morro Bay's population, and ADA improvements are a critical project to improve their accessibility around the community, facilitating their ability to age in place. Senior residents are a community that experiences a heightened risk of housing complications, as a majority of the community are on fixed incomes, experience accessibility issues, and are faced with a limited housing stock. Ensuring that their neighborhood accommodates accessibility is a vital element in making sure they have safe and reliable housing.

C.17. Select all population(s) expected to be served through this project:
 Low-/moderate-income households
 Multifamily
 Age Restricted (including seniors)
 Persons Experiencing Homelessness
 Persons Experiencing Chronic Homelessness
 Persons with Disabilities
 Veterans
 Domestic Violence Survivors
 Unaccompanied Youth (under 25 years of age)
C.18. Does the proposed project complement and collaborate with existing efforts in the county? Yes
C.18a. Please name the partner agencies and how they will participate:

The City's proposed ADA sidewalk repair/replacement project complements existing efforts by the County's Department of Public Works outlined in their Pavement Management Report and Five-Year Capital Improvement Plan.

C.19. Describe any consultation with local jurisdictions to gain support for the project. Describe any support you have from local jurisdictions.

The proposed project will take place entirely within the City limits of the City of Morro Bay, and other local jurisdictions have not been consulted.

C.19a. Please upload any letters of support or commitment from local governments or community partners.  Letters of Support
**No files uploaded

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C.20. How will you collect demographic data on the beneficiaries of the proposed project? Demographic data on the beneficiaries of the proposed project will be collected using available census and population data. More detailed surveying can be done through consultant services if necessary.

C.21. Has CEQA environmental review been completed?
No – CEQA review not complete
C.22. Has NEPA environmental review been completed?
No – NEPA review not complete
C.23. Has a Phase I or Phase II archeological/historical survey been conducted at the project site? N/A
C.24. Has a Phase I or Phase II environmental assessment been conducted for the property? N/A
C.25. List and describe any known hazards-e.g., asbestos, lead-based paint, storage tanks – aboveground, underground. Please enter “N/A” if not applicable.

N/A
C.26. Is the project on a property designated or been determined to be potentially eligible for designation as a local, state, or national historical site?
N/A
C.27. Are the building(s)/structure(s) located on a historic site or within a local historic district? N/A
C.28. Is the project located within a 100-year flood plain? N/A
C.29. Will demolition or excavation be required?
No
C.30. Are there any existing buildings on the project property that were constructed prior to 1978? No
C.31. Describe how the project will meet ADA and Section 504 standards for accessibility by the disabled. Describe the methods, funding, and timetable to be utilized to address the problems.

The project will meet ADA standards by bringing selected sidewalks into compliance with all accessible design standards. Section 504 standards do not apply.

Printed By: Erik Valentine on 10/22/2025 12 of 14
D. Funding & Eligible Activities
Completed by [email protected] on 10/9/2025 8:29 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
D. Funding & Eligible Activities
Please provide the following information.

D.1. Total Project Funding (include all sources and uses of funding) $46,269.00
D.1.a. Please upload the following documentation:
 Commitment Letters for Funds
**No files uploaded
 Sources & Uses *Required
Public Works FY 2025-26 Operating Budget.pdf
D.2. Amount of CDBG funds requested:
$46,269.00
D.3. Estimated number of unduplicated persons to benefit from CDBG funds:
10,589
D.4. Estimated number of unduplicated persons in Low – Moderate Income, 80% or less of the County Median Income, who will benefit from CDBG funds:
3,680
D.5. Please select the national objective that best applies to the proposed project.

Please refer to "Basically CDBG" or the "CDBG Guide to National Objectives and Eligible Activities" for more information regarding CDBG national objectives.

Low Moderate Income
LOW/MODERATE INCOME: Select which criteria the proposed project intends to qualify under to meet the Low/Moderate Income objective.

Area Benefit

Printed By: Erik Valentine on 10/22/2025 13 of 14
E. Supplemental Documents
Completed by [email protected] on 10/10/2025 8:28 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
E. Supplemental Documents
Please note that all documents uploaded into this application must be less than 100 MB in file size. We cannot accept documents via email or through another platform, such as Dropbox or Google Drive. Applicants may split larger documents into multiple smaller files, label them appropriately with “part X of X” and then upload them directly into this application.

Do not upload password-protected documents into this application. All password-protected documents will be removed during threshold review and this may negatively impact scoring of your application.

Documentation
Please upload any other documentation that should be considered during review of your application.

Multiple files may be uploaded if needed.
 Supplemental Documentation
Public Works Organizational Chart.pdf

Printed By: Erik Valentine on 10/22/2025 14 of 14
Submit
Completed by [email protected] on 10/10/2025 8:30 AM Case Id: 30615
Name: ADA Sidewalk Repair, City of Morro Bay - 2026
Address: 595 Harbor Street, Morro Bay, CA 93442
Submit
Please provide the following information.
 The applicant certifies that all information contained in this application, and supporting documentation, given for the purpose of obtaining assistance, is true and complete to the best of the applicant’s knowledge.  I hereby certify that our organization has complied with all applicable laws and regulations pertaining to the application and is an eligible applicant for the requested funding. The organization proposes to provide the program services or complete the project identified in this application. If this application is approved and this organization receives the requested funding this organization agrees to adhere to all relevant Federal, State, and local regulations and other assurances as required by the County.  I hereby certify that the organization is fully capable of fulfilling its obligation under this application, as stated herein.
 I further certify that the information provided in this Funding Application is correct, accurate, and complete.

In addition, the content of the application shall be incorporated as part of the written agreement and, as such, will be used to monitor performance. Activities, commitments, and representations described in the written agreement that are not subsequently made a part of the program/project as funded shall be considered a material contract failure and may result in a repayment of all awarded funds and/or suspension from participation in future funding rounds.

Authorized Representative Signature
Erik Valentine
Electronically signed by [email protected] on 10/10/2025 8:30 AM Authorized Representative Title
Associate Planner

Prepared By: __AL______ Dept Review: ______
City Manager Review: ___AL_____ City Attorney Review: __BS___ Staff Report
TO: Honorable Mayor and City Council DATE: November 6, 2025 FROM: Andrea Lueker, Interim City Manager
SUBJECT: Reinstatement of an Assistant City Manager to Prioritize and Manage Economic Development Efforts and Other Duties

RECOMMENDED ACTION
Approve the reinstatement of an Assistant City Manager position in the City of Morro Bay, with the position focusing on economic development activities as well as number of other duties and provide staff direction as necessary.

ALTERNATIVES
Should the City Council determine not to add the position of Assistant City Manager to oversee Economic Development activities, an alternative may be to contract with a consultant to perform economic development duties.

FISCAL IMPACT
The fiscal impact of the addition of an Assistant City Manager is $165,173 - $200,803 (the Department Head/Executive Range) or about $281,835 at top-step with full benefits and CalPERS PEPRA retirement. However, the current FY2025/26 Budget includes the following funding:
$133,000 Funding for the unfilled position of Assistant to the City Manager (General fund - $83K & Economic Development Fund - $50K)
$ 25,000 Unallocated funding for Economic Development/MB Chamber $ 50,000 Funds allocated for as-needed research, peer review, and/or evaluation of ongoing city projects, and miscellaneous supplies, largely unspent in recent years $208,000 Total
Additionally, the City also has approximately $979,000 from SB 1090 revenues associated with the closure of Diablo Nuclear Power Plant and one-time community benefit funding from cannabis dispensaries that can be used for Economic Development.

BACKGROUND
The City of Morro Bay has been discussing Economic Development for a number of years, including providing funding to the Chamber of Commerce for varies activities relating to economic development. In 2016, the City embarked on a year-long effort regarding Economic Development, resulting in a document entitled Morro Bay Economic Development Roadmap. The document included 3 Phases, which were intended to provide a guide for thoughtful and incremental economic development activities.

AGENDA NO: 8.a
MEETING DATE: November 12, 2025

2 Phase 1 – Assets, Challenges and Opportunities Discovery Phase 2 – Stakeholder Engagement
Phase 3 – Building the Framework for Action.

While the Morro Bay Economic Development Roadmap is almost 10 years old, much of the information and data appears relevant and will be a good reference as the City embarks on a more organized approach to Economic Development.

Economic Development also has its own chapter in Plan Morro Bay, where the “importance of directing actions that promote a sustainable economy that can withstand fluctuations” is outlined.

Plan Morro Bay, completed in 2021, also includes demographics data and key issues such as affordable housing, market surplus and leakage, population and job growth, and providing for the needs of both residents and visitors. Finally, the Plan provides economic development-related goals and policies as well as implementation actions.

Staff strongly recommends creating a specific position to oversee Economic Development to consolidate efforts currently handled across City departments to create one responsible point of contact for the City’s associated projects, programs, and initiatives. This point-person would liaise with community and business groups, implement the Roadmap, and prepare reports and presentations on their work to the public, business community, and City Council. The position, as in other municipalities, would represent the City to critical economic development partnerships, including the Morro Bay Chamber of Commerce, other chambers regionally, Visit Morro Bay, SLOCAL, City Advisory Boards and Sub Committees, and other Assistant City Managers/Economic Development directors in the region. It would also invite and meet with current business owners to address City related concerns as well as prospective business owners to promote Morro Bay as a destination to do business.

The City of Morro Bay has a history of having an Assistant/Deputy City Manager position over the years, first recognized in the early 2000’s. From 2005-2007, with an Assistant City Manager during former City Manager Bob Hendrix’s time. In 2014, the City hired a Deputy City Manager who was tasked with Economic Engagement, Community Promotion and Tourism efforts, with that position lasting approximately 5-7 years. During that tenure, two different individuals served in the position that was finally defunded in late 2017 and not reinstated. In 2021, an Assistant City Manager/Administrative Services Director was hired, who was in the position until 2023, though this position was primarily focused on overseeing the Finance Department. In 2024, that position was reclassified to Finance Director by the former City Manager. Finally, in 2024, the City created a new position entitled Assistant to the City Manager, which was tasked with some economic development responsibilities. However, the individual filling that position left in early 2025 and the position has remained unfilled since.

Many of the cities in San Luis Obispo County as well as adjoining counties to the north and south have Assistant and/or Deputy City Managers with many of these individuals overseeing economic development and vitality efforts. These Assistant/Deputy positions have become much more popular in cities when compared to 15-20 years ago due to the increasing complexity of City services, workload, and keen interest in economic development.

3 DISCUSSION
The Morro Bay community has expressed significant interest in Economic Development, and the City Council identified “Economic Vitality and Fiscal Heath” as a City Goal during the March 2025 Goal Setting process. To effectively and directly address Economic Development efforts in the City and have control over the programs that are important to the City and their constituents, staff believes assigning a specific person to these efforts is the best solution, and it has worked well in other local agencies.

Should the City Council make the decision to reinstate the Assistant City Manager position, the next logical priority would be to determine what “Economic Development” means to the City Council, stakeholders and community members. Below is one brief example of the process to move closer to determining what economic development means to Morro Bay and identify some projects/programs to enhance economic development.

Step 1 – Community Assessment - As mentioned above, with the work that has been done on the Economic Roadmap document, many of the initial tasks already completed include a community assessment. Rather than starting over, it would be beneficial to look at the data collected in 2017 and determine whether new data is needed in terms of factors such as:
 Employment and unemployment rates
 Business formation and closure trends
 Industry diversity and concentration
 Population and demographic makeup
 Housing affordability and availability
Step 2 – Stakeholder Feedback – Contract/discussion with stakeholders was an important part of the 2017 Economic Roadmap project and included 40 one-on-one interviews and 139 business stakeholders participating in an online survey, this information should be reviewed for relevancy, which will dictate how much additional feedback is necessary/important. A strong economic development strategy includes collaboration with a wide range of stakeholders, and should include including the following groups:
 Residents and neighborhood organizations
 Local businesses and chambers of commerce
 Educational institutions and workforce organizations
 Nonprofit groups and advocacy
 Tribal and indigenous leadership
 Faith based organizations
 Government agencies and elected officials
Step 3 – Determining Economic Development Goals/Objectives – This step is to determine exactly what the City of Morro Bay intends to accomplish. Specific goals/objectives need to be set, like the City-wide goal setting process held in March 2025. Typically, goals are more global statements or broad-term aspirations that are then “boiled down” to several objectives designed to “meet” the goal. Objectives are typically more specific and sometimes termed as “SMART” being specific, measurable, achievable, relevant, and timebound.

For example, after stakeholder input, an economic development goal could be “a downtown city façade improvement project.” With the specific objective of “engaging at least 15 downtown business owners and discussing using matching grants for renovation of their

4 business façade during FY 2025/26 with the goal of completing at least 5 facade improvements.”
To reiterate, the existing Economic Roadmap provides a clear picture of what was important to the community in terms of economic development issues in 2017, many of which are still relevant today.

Step 4 – Creating an Action Plan with Timelines
An action plan includes an outline for each Economic Development goal/objective which includes:
 Specific action steps to accomplish the project/program  Identify the responsible parties necessary to achieve the goal/objective (departments, committees, partners, outside agencies)
 Required resources and budget
 Deadlines and check-ins
 Determine how success is measured
The outlines for each goal/objective should be done with clear formatting such as a critical path chart, matrix or Gantt chart so status can be easily understood and monitored.

Step 5: Transparency
With a new program, such as Economic Development, keeping the public, stakeholders, businesses, etc. informed about the status of the projects/programs is paramount, especially in the infancy stages. It can also help drive support of the efforts; some options are:
 Quarterly updates at City Council Meetings/Advisory Board Meetings  Economic Development “page” on the City’s website
 Social Media presence
 Town Hall meetings/Q & A sessions
Step 6: Monitor, Measure, Adjust
Similar to many of the City’s documents, plans and programs, the Economic Development program is a “living document” not a one-time event. The program will need to be continually monitored to ensure it stays relevant and effective. Some steps to accomplish that include:
 Designated tracking process
 Scheduled reviews
 Updating goals/objectives and action items based on new data or changing needs In addition to the proposed Assistant City Manager’s role with economic development, other duties/responsibilities within the City would be assigned. These are roles that need additional time from staff but are not currently assigned and, in most cases, not addressed due to time and workload.

Examples include:

1. Public Information Officer (PIO) – a PIO is the designated “first contact” for media sources on news stories, emerging issues and emergencies. Currently the City does not have a PIO and the duties are typically handled by Department Heads or the City Manager. By having a designated PIO, the communication that comes from the City to the media will be consistent, timely and coordinated. This includes coordination and creation of communication efforts, including website and social media outreach.

5 2. Real Property Manager - the responsibility of land management in the City is currently spread across departments, sometimes with no specific person assigned. These duties include management of non-harbor leases, City-owned vacant land, and City-owned land with unused facilities (old Teen Center, Atascadero Road Wastewater Treatment Plant, etc.).

4. Regional Liaison – This role would involve engagement with neighboring cities, the County, and other organizations on regional and statewide events, programs and initiatives.

3. Community Liaison – This role would serve as the City’s community liaison to other nonprofit groups that provide benefits to the City of Morro Bay such as Lions, Kiwanis, Rotary, etc.

4. Grant and Legislative Coordinator – This role would focus on working with the state and federal lobbyists to identify and pursue grants as well as analyzing and providing information on upcoming legislation relevant to the City.

5. FEMA Coordinator – This role would assist departments in pursuing FEMA claims and reimbursements.

6. The Assistant City Manager position may be tasked with overseeing some of the City’s Divisions as determined by the incoming City Manager.

CONCLUSION
Since at least 2016, the City of Morro Bay has had significant interest in economic development and has made some steps in that direction, specifically by completing the Economic Development Roadmap and including an economic development chapter in Plan Morro Bay. To further these efforts, staff recommends the City Council approve the reinstatement of the Assistant City Manager position, tasked with economic development as well as other critical and currently unassigned duties as described above. Should Council support the reinstatement of this position, staff will bring the job description, revised salary schedule and budget adjustment for approval at the December meeting.

Prepared By: NLS Dept Review: GK
City Manager Review: _AL__ City Attorney Review: __
Staff Report
TO: Honorable Mayor and City Council DATE: November 6, 2025 FROM: Greg Kwolek, Public Works Director
Nate Stong, PE, City Engineer
SUBJECT: Declaration of Emergency and Authorize Actions required for the Morro Creek Bank Stabilization Project

RECOMMENDED ACTION
Authorize the following actions related to the Morro Creek Bank Stabilization Project:

1. Adopt a Resolution, by not less than four-fifths affirmative vote, confirming an emergency exists and authorizing the City Manager to negotiate and award an emergency public works contract for the project in an amount not to exceed $500,000;

2. Authorize the City Manager, or designee, to approve construction contingency amounts up to a total of $150,000;

3. Authorize the City Manager, or designee, to approve a professional services agreements for design and engineering during construction services for an amount not to exceed $250,000; and

4. Find that the project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) – Emergency Projects.

ALTERNATIVES
City Council could choose to:

1. Not authorize the award of an emergency contract, and instead have staff prepare plans and specifications to award a contract to a low bidder in accordance with State and local contracting procedures. This could result in an extended timeline to complete the work, which would leave the unprotected creek bank at risk of further erosion and failure.

2. Provide alternative direction to staff.

DISCUSSION
Staff is finalizing a full analysis for this recommendation. The analysis will be uploaded as part of an agenda update on Monday, November 10, 2025.

AGENDA NO: 8.b
MEETING DATE: November 12, 2025

Prepared By: _AW____ Dept Review: ____
City Manager Review: __AL___ City Attorney Review: ___BS____ Staff Report
TO: Honorable Mayor and City Council DATE: November 6, 2025 FROM: Amy Watkins, Chief of Police
Brian J. Stack, City Attorney
SUBJECT: Discussion of Potential Ordinance Framework for Establishing Local Business Regulations for Massage Establishments and Technicians

RECOMMENDED ACTION
Discuss and give direction to staff regarding the potential adoption of an Ordinance establishing local business regulations specific to massage establishments and technicians.

ALTERNATIVES
Do not take action to establish local business regulations specific to massage establishments and technicians.

FISCAL IMPACT
If the Council decides to pursue adoption of local business regulations for massage establishments and technicians, the initial preparation and adoption of an ordinance would be supported by the General Fund and expected to be absorbed under existing budget authority. The future administration and enforcement of any local business regulations may require an update to the City’s fee schedule. Given current budget restraints, it is anticipated enforcement would initially be added to existing staff’s work plan, which could impact delivery of services depending on resource demands.

BACKGROUND
In recent years the Police Department has received complaints regarding the number of massage establishments in the City and concerns regarding potential illicit activities. Because the City does not currently have local business regulations specific to massage establishments or technicians, any response to potential illicit activities is necessarily reactive in nature which may undermine the public’s confidence and ability to distinguish between legitimate business and potential illicit activities. In order to take a proactive approach, Staff proposes the Council consider establishing local regulations for massage establishments to promote legitimate businesses and prevent and discourage the misuse of massage therapy as a front for illicit activities in violation of State law.

The City recognizes that massage is a viable professional field offering the public valuable health and therapeutic services and that operators engaging in illicit activities undermine legitimate businesses.

The California legislature and courts have supported imposing reasonable regulations and standards for the operation of massage businesses, including but not limited to minimum educational and AGENDA NO: 8.c
MEETING DATE: November 12, 2025

2 experience requirements, passage of a practical examination of competence, sanitary conditions, hours of operation, and other operational regulations designed to minimize opportunities for illegal activities and to ensure the protection of the health safety and welfare of citizens.

In 2009, the California Massage Therapy Council (CAMTC) was established by state legislation to provide for a voluntary certification pathway for massage therapists. If a technician has a certificate from CAMTC, there are limitations under Government Code section 51034 regarding what further local regulations can be imposed on technicians. However, these limitations do not apply to establishments or uncertificated technicians.

DISCUSSION
Staff has prepared a proposed framework that attempts to impose reasonable local regulations on massage establishments and technicians that are designed to prevent and discourage the misuse of massage therapy as a front for illicit activities in compliance with state law while imposing a minimal burden on legitimate business activity in the City. As detailed further in the framework below, the ordinance would provide minimum building, sanitation, operation and standards for such businesses, and add minimum qualifications for the operators and employees of such businesses to minimize opportunities for illegal activities and help protect the public health, safety and welfare.

Proposed Framework
Requirements Applicable to Massage Establishments
 Local massage establishment license required
o Owner(s) require Background Check approval by Chief of Police o Grounds for denial include material misstatement on application and prior offenses related to the operation of a massage establishment whether as an owner or technician
o Chief of Police will have 60 days to review and issue clearance for a complete application provided there are no misstatements or disqualifying offenses o License will remain in effect so long as they maintain a valid business tax certificate and provide proof to Police Department by August 30th of each fiscal year o Change in ownership requires notification to Chief of Police and background check clearance for new owners
 Technicians employed must be certified by CAMTC or verified by the Chief of Police as qualifying under the grandfather exception (discussed under requirements for Massage Practitioners below)
o Other exceptions include duly licensed health care providers, athletic trainers, barbers and beauticians
 Facility and Operational requirements
o Comply with all building and zoning code requirements o Security case provided to patrons for storage of valuables o Premises maintained in good and clean repair
o Clean linens and instruments
o No exposing or touching areas in violation of CAMTC guidelines o Lighting requirements
o No alcoholic beverages
o List of all services and prices

3 o Record keeping and inspection requirements
o Display of technician CAMTC certifications or City exemption determinations o Home occupation permit required in residential zones
o Hours of operation limited to 7 a.m. to 10 p.m.

Requirements Applicable to Massage Technicians
 Provide proof of CAMTC certification or otherwise obtain local massage technician permit o May be subject to background check if not CAMTC certified o Grounds for denial include material misstatement on application and prior offenses related to the operation of a massage establishment whether as an owner or technician
o Chief of Police will have 30 days to review and respond to a complete application o Permit will remain in effect so long as they maintain a valid business tax certificate and provide proof to Police Department by August 30th of each fiscal year  Technicians must have CAMTC certificate or verified by the Chief of Police as qualifying under the grandfather exception
o Technicians working in Morro Bay prior to ordinance adoption may obtain an exemption from the Chief of Police if they provide evidence they have worked as a message therapist or practitioner for at least 5 years and have attempted to obtain CAMTC certification
o Exemption must be renewed annually
Enforcement
 Subject to site inspections
 Findings will be documented in report and provided to the establishment or technician  Notices of Violations may be issued and identify corrective action needed to avoid imposition of fines or revocation.
 Denials, revocations, suspensions or imposition of fines may be appealed to the City Council or hearing officer if established
A standard practice for municipalities concerned with the increase in illicit activities associated with massage establishments is to create municipal code ordinances to help identify, regulate, and maintain lawful operation of massage establishments. This includes adopting massage ordinances, creating a review process for business licenses, and creating a process for inspection and review of the massage establishments if a business practice comes into question.

Staff has tentatively scheduled a first reading and public hearing on a draft ordinance for the December 9th meeting depending on Council’s direction.

CONCLUSION/RECOMMENDATION
It is recommended that Council discuss and give direction to staff regarding the potential adoption of an Ordinance establishing local business regulations specific to massage establishments and technicians.

ATTACHMENTS

1. Quick facts about CAMTC

2. CAMTC S.M.A.R.T. Guide

Quick facts about CAMTC
The California Massage Therapy Council (CAMTC) began accepting applications for CAMTC Certification in 2009. On January 1, 2025, new legislative changes became effective. The text of the Massage Therapy Act (Act) can be found at California Business and Professions Code sections 4600-4621. The Act and other relevant sections, including Business and Professions Code section 460, and Government Code section 51034, are included for convenience. These provisions are available here.

Overview of California Law pertaining to CAMTC Certified massage professionals and applicants:

Business and Professions Code section 460(a) generally provides that no city or county shall prohibit a person or group of persons certified by CAMTC from engaging in their business, occupation, or profession, or any portion of that business, occupation, or profession. Business and Professions Code section 460(b) generally provides that no city or county shall prohibit a person certified by CAMTC from “engaging in any act or performing any procedure that falls within the professionally recognized scope of practice.”
Business and Professions Code sections 4600 - 4621 generally provide for the voluntary certification of massage professionals in California by a nonprofit, 501(c)(3), organization. It also provides for CAMTC approval of massage school programs that provide massage education which can be used to obtain CAMTC Certification. CAMTC Certification allows Certified Massage Professionals to provide massage for compensation in all California cities and counties without the need to obtain multiple local permits and pay multiple permit fees. This California Law has also established educational and background criteria for certification as a CAMTC Certified Massage Therapist (CMT), and limits the use of the title of Certified Massage Therapist, CMT, Certified Massage Practitioner, CMP, and certified to those who are certified by CAMTC.

Government Code section 51034 generally identifies regulations that cities and counties may not impose on massage businesses, including but not limited to defining or regulating massage businesses as adult entertainment. It also generally provides, among other things, that cities and counties may not require a CAMTC Certificate Holder to: take any test, medical exam, background or criminal background check, or comply with educational requirements beyond what is required for CAMTC Certification; obtain any other license, permit, certificate, or other authorization to provide massage for compensation; comply with a dress code requirement beyond what is specified in Business and Professions Code section 4609(a)(10); or prohibit massage of the gluteal

muscles or other massage techniques identified by CAMTC as legitimate. Cities and counties cannot require showers or tubs in any massage establishment.