Agenda packet, regular meeting — Morro Bay City Council, November 12, 2025 (part 1 of 2)

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Wednesday, November 12, 2025, 5:30 p.m.

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

Alternatively, members of the public may watch the meeting and speak during general Public Comment or on a specific agenda item by logging into the Zoom webinar using the information provided below. Please use the "raise hand" feature to indicate your desire to provide public comment.
•
• NEW!! Zoom webinar link: https://us02web.zoom.us/j/82429164990 Or Telephone Attendee: 1 (669) 444-9171 or 1 (669) 900-9128 or 1 (346) 248-7799; Webinar ID: 824 2916 4990. Press *9 to raise hand for public comment. •
• Meetings are also livestreamed on the City's website.

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

1. ESTABLISH QUORUM AND CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report

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

3.c City Manager Reports, Announcements and Presentations

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

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

2. Morro Bay Power Plant (Vistra)

3. Offshore Wind Energy

4. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS
None.

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

Public comment is an opportunity for members of the public to provide input to the governing body. To increase the effectiveness of the Public Comment Period, the City respectfully requests the following guidelines and expectations be followed:
•
Those desiring to speak are asked to complete a speaker slip, which are located at the entrance, and submit it to the City Clerk. However, speaker slips are not required to provide public comment.
•
When recognized by the Mayor, please come forward to the podium to speak.

Though not required, it is helpful if you state your name, city of residence and whether you represent a business or group. Unless otherwise established by the Mayor, comments are to be limited to three minutes. •
All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
•
The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
•
Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
•
Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting.
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Your participation in City Council meetings is welcome and your courtesy will be appreciated.
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The Council in turn agrees to abide by its best practices of civility and civil discourse according to Resolution No. 07-19.
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6. CONSENT AGENDA
Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.

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

1. October 14, 2025 - Regular Council Meeting 7

2. October 21, 2025 - Special Joint Council and CFAC Meeting 14

3. October 28, 2025 - Special Closed Session Meeting 16

6.b Consideration of forming Council Sub-committee regarding Examining the feasibility of shared Fire and EMS services with LOCSD titled the "Shared Fire 18

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Services subcommittee"
(Fire Department)
Recommended Action
As requested during the approval of Item 6h at the October 14, 2025 Regular Meeting, consider the establishment of a Council sub-committee regarding the Letter of Interest received from the Los Osos CSD regarding examining the feasibility of shared Fire and EMS services. If a sub-committee is established, pursuant to Council Policies Section 3.13, a defined purpose, parameters, and anticipated duration of the sub-committee should be established.

6.c Approval of Fiscal Year 2024-25 Year-End Budget Adjustments 21 (Finance Department)
Recommended Action
Adopt Resolution No. 57-25 approving FY 2024-25 Year-End Budget Adjustments.

6.d First Quarter Investment Report (period ending September 30, 2025) for Fiscal Year (FY) 2025-26
46 (Finance Department)
Recommended Action
Receive the attached First Quarter Investment Report (period ending September 30, 2025) for FY 2025-26.

6.e Authorize a Professional Services Agreement with Pavement Engineering, Inc. for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project
50 (Public Works Department)
Recommended Action
Authorize the City Manager to execute a Professional Services Agreement with Pavement Engineering, Inc. in the amount of $343,334.00 for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project.

6.f Adopt Resolution Nos. 55-25 and 56-25 for Grant Applications for Potential Rancho Colina Utilities Consolidation
83 (Public Works Department)
Recommended Action
Adopt Resolution Nos. 55-25 and 56-25 for the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) Grant Applications for the Rancho Colina Consolidation Evaluation Projects. These resolutions only modify previously approved City Council Resolution Nos. 51- 23 and 52-23.

6.g Ordinance No. 673, repealing and reenacting multiple chapters of Title 14 (Buildings and Construction) of the MBMC to incorporate the 2025 California Building Standards Code, including the 2025 Wildland-Urban Interface Code and related local amendments,
89 including the addition of spark arrestors on outdoor fire pits and the prohibition

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of fireworks
(Community Development Department)
Recommended Action
Adopt Ordinance No. 673: “An Ordinance of the City Council of the City of Morro Bay, California, repealing, amending and reenacting Chapters 14.01 –

14.12 of Title 14 (Buildings and Construction) of the Morro Bay Municipal Code, thereby adopting by reference and amending the 2025 California Building Code (Volumes 1 and 2), Residential, Electrical, Mechanical, Plumbing, Energy, Historical Building, Fire, Existing Building, Green Building, Administrative, and Reference Standards Codes, the 2021 International Property Maintenance Code, the 1997 Uniform Code for the Abatement of Dangerous Building Code, and the 2025 Wildland-Urban Interface Code.”

6.h 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 137
(Police Department)
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.

7. PUBLIC HEARING ITEMS

7.a Review and Adopt Draft Funding Recommendations for the 2026 Community Development Block Grant (CDBG) Program
152
(Community Development Department)
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.

8. BUSINESS ITEMS

8.a Reinstate of an Assistant City Manager to Prioritize and Manage Economic Development Efforts and Other Duties
216
(Interim City Manager)
Recommended Action
Approve the reinstatement of an Assistant City Manager position in the City of

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Morro Bay, with the position focusing on economic development activities as well as number of other duties and provide staff direction as necessary.

8.b Declaration of Emergency and Authorize Actions required for the Morro Creek Stabilization Project
221
(Public Works Department)
Recommended Action
Authorize the following actions related to the Morro Creek Bank Stabilization Project:

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;

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

2. 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

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

4. 8.c Discussion of Potential Ordinance Framework for Establishing Local Business Regulations for Massage Establishments and Technicians
222
(Police Department / City Attorney)
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.

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

10. ADJOURNMENT
The November 25, 2025 Regular Meeting has been canceled. The next Regular Meeting will be held on December 9, 2025.

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

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

In compliance with the Americans Disability Act, if you need special assistance to

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participate in a City meeting, please contact the Clerk's office 24 hours prior to the meeting to insure reasonable arrangements can be made to provide accessibility to the meeting.

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1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
October 14, 2025, 5:30 p.m.

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

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

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report
City Attorney Stack announced the Council met in closed session on Monday, October 13, to discuss two real property matters and one potential litigation matter. No reportable action was taken under the Brown Act for that meeting.

The Council also met in closed session on Tuesday, October 14, to discuss the City Manager recruitment and no reportable action was taken under the Brown Act.

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

3.c City Manager Reports, Announcements and Presentations

3.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA b. Morro Bay Power Plant (Vistra)

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2 c. Offshore Wind Energy
d. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS

5. PUBLIC COMMENT
 Members of the Morro Bay 4-H Club shared information regarding their programs in honor of National 4-H Week. For more information, contact [email protected].
 Linda Winters, Morro Bay, encouraged residents to prepare in advance for weather-related events.
 Jeff Heller, Morro Bay, appreciated the work of the Council and City staff.  Nicole Dorfman, Morro Bay resident and member of REACT Alliance, announced an upcoming event on Saturday, October 25, from 6:00 - 10:00 p.m. at Shindig in San Luis Obispo.
 Garry Johnson, Morro Bay, acknowledged visitors place a burden on City services, hoped for more information regarding paid parking at the Rock and was not supportive of paid parking at the boat ramp or charging Morro Bay residents a fee for parking.
 Margaret Carman, Morro Bay, announced SLOCOG was hosting a community forum regarding the Climate Resiliency Plan on Oct 22, from 6:00 - 7:30 p.m. at the Nazarene Church in Los Osos. She also asked whether the contractor would be held responsible for costs associated with the City's response to a recent broken water line.
 Betty Winholtz, Morro Bay, requested all department heads be seated in the front of the room.
 Cal Myers, Morro Bay, clarified the movie night being planned by Friends of the Morro Bay Harbor Dept will be held on Thursday before the Lighted Boat Parade.  Katie Schlott, Morro Bay, thanked City for taking the Morro Elementary negotiations seriously.

End of public comment.

Mayor Wixom announced Item 6.f. is being pulled from the agenda and moved to the next meeting.

Mayor Wixom opened public comment for items on the Consent Agenda.  Betty Winholtz, Morro Bay, expressed concern regarding Item 6.g and hoped the Council would set parameters on those discussions.

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3 End of public comment.

Mayor Wixom pulled Item 6.g. Council Member Luffee pulled Item 6.c.

Motion by Council Member Landrum
Seconded by Council Member Eckles
Approve Consent Agenda items except 6.c, 6.f and 6.g as submitted.

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

6.a Approval of Minutes
Approve as submitted.
a. September 23, 2025 - Regular Council Meeting
b. September 23, 2025 - Special Closed Session Meeting
c. September 23, 2025 - Special Meeting

6.b Approval of Proclamations
Approve as submitted.
a. Domestic Violence Awareness Month Proclamation

6.c Type 3 Fire Engine Vehicle Replacement
Fire Chief McCrain responded to Council questions regarding funding for the Type 3 replacement vehicle.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Authorize the Fire Chief to sign a purchase agreement in the amount of $669,101.49 for a Pierce Type 3 Wildland Fire Engine to replace Engine 5371 through South Coast Fire Equipment using a Sourcewell Cooperative purchasing agreement.

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

6.d Adoption of Resolution No. 52-25 Authorizing the City of Morro Bay to Enter into a Fiscal Year (FY) 2025-26 Surrendered and Abandoned Vessel Exchange Grant Contract and Related Budget Amendment
Adopt Resolution No. 52-25 authorizing the Harbor Business Manager to execute and act as the City’s agent for the attached FY 2025-26 Surrendered and Abandoned Vessel Exchange Grant (SAVE) Agreement #C25S0605 with the State of California Department of Parks and Recreation, Division of Boating and

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4 Waterways (DBW) for $15,750.00 for funding to remove abandoned/surrendered vessels and hazards to navigation, and authorizing the related budget amendment.

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

6.f Determination of Public Convenience or Necessity for ABC License - 640 Quintana Road, Morro Bay Cigarettes, Inc.

This item was pulled from the agenda.

6.g Letter of Interest from LOCSD regarding shared fire protection and emergency medical services
Fire Chief McCrain responded to Council inquiries regarding shared fire protection and emergency medical services for LOCSD. There was Council support for creating a subcommittee to participate in the analysis of obligations involved in providing shared services and how that might impact the level of service for our community.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Authorize City staff to prepare a response to the letter of interest exploring shared fire and EMS services.

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

7. PUBLIC HEARING ITEMS

8. BUSINESS ITEMS

8.a Advisory Board Interviews and Citizens Oversight/Finance Advisory Committee Appointment
Mayor Wixom opened public comment for Item 8.a; seeing none, the public comment period was closed.

Michael Jones was unable to attend interviews due to illness and, given two more seats come available February 1, 2026, the Council agreed to hold his application open for the annual recruitment.

Mayor Wixom invited Mr. Branin forward to introduce himself.

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5 Motion by Council Member Landrum
Seconded by Council Member Luffee
Appoint Barry Branin to fill an unscheduled vacancy on the Citizens Oversight/Finance Advisory Committee (“CFAC”) for two years and carry forward the applicant that was unable to attend tonight.

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

8.b Adopt Resolution No. 54-25 revising the City of Morro Bay Community Grant Policy
Interim City Manager Lueker presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 8.b
 Dina Lundquist, Morro Bay Chamber of Commerce CEO, expressed concern the proposed policy changes disproportionately burden smaller organizations.
 Betty Winholtz, Morro Bay, opined the process was too formal and overly burdensome.

End of public comment.

Following individual comments and discussion, there was Council consensus to rescind the 2019 Community Grants Policy and reevaluate opportunities to support local non-profit groups by way of partnership agreements and event fee waivers.

Motion by Council Member Eckles
Seconded by Council Member Landrum
Rescind Resolution No. 67-19.

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

8.c Short-Term Rental Ordinance Implementation - Quarterly Update Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 8.c.
 Barry Branin, Morro Bay, suggested the STR ordinance be amended to eliminate the grandfather clause or impose a 3-to-5-year limit.

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6  Michelle Leicester-Cadaret, Morro Bay, supported limiting terms and requested fire pits be phased out.
 Betty Winholtz, Morro Bay, supported removing the grandfather clause, suggested unhosted hotels be required to comply with the STR ordinance, opposed issuance of new permits except for homeshares, and supported increased fines for non-compliance.
 Jeff Heller, Morro Bay, hoped for a reduction in the number of licenses and supported increased fines for non-compliance. He suggested residents be given authority to enforce rules and rescind licenses, offering the Palm Springs ordinance as a good example to follow.  Maggie Juren, Beach N Bay Getaways & U Relax Vacation Rentals, offered the STR permitting process was time consuming but effective, and urged the Council to not reduce the number of permits issued as there will be attrition due to non-transference of permit upon sale. She noted almost all licensed STRs would not convert to full home rentals and the housing shortage is largely due to second homes. She requested Council allow the current regulations time to achieve their intended purpose.

End of public comment.

The Council directed staff to return with an ordinance increasing fine amounts as allowed by SB 60 and reconsider the issuance of homeshare permits in January.

The Council took a brief recess at 7:45 p.m. and reconvened at 7:56 p.m. with all members present.

8.d Discussion and Request for Direction Regarding Potential to Establish Local Campaign Finance Contribution Limits
City Attorney Stack presented the report and responded to Council inquiries.

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

Following comments and discussion, there was Council consensus to direct staff to bring back an ordinance establishing a $500 campaign contribution limit with alternatives for enforcement.

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Council Member Landrum requested the list of pending future agenda items be listed at the bottom of the agenda. Ms. Lueker offered to send it to Council on a monthly or bimonthly basis.

With the economic vitality goal in mind, Council Member Landrum requested discussion of how to create policies (vacancy tax or other mechanism) to encourage owners of vacant property to put businesses in them and address blight (vacant commercial properties at the two entrances to Morro Bay and the Vistra property were listed as examples). Also, in light of discussion on STRs, wished to explore a possible tax on secondary homes. Lastly, she hoped to find a way to encourage property owners along the Embarcadero to use vacant property for parking rather than taking steps to

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7 implement paid parking at the Rock, and requested an update on the camping ordinance and massage business regulations.

10. ADJOURNMENT
The meeting adjourned at 8:30 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

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1 MINUTES - SPECIAL JOINT MEETING

OF THE MORRO BAY CITY COUNCIL

AND CITIZENS FINANCE ADVISORY COMMITTEE
October 21, 2025, 3:00 p.m.

Veterans Memorial Hall
209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Chairperson Stephen Peck
Vice-Chair Michael Woody
Committee Member Barry Branin
Committee Member Johnson
Members Absent: Committee Member Brian Dorfman
Staff Present: Interim City Manager Andrea Lueker
Finance Director Emily Conrad
City Clerk Dana Swanson
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom established a quorum and called the meeting to order at 3:00 p.m. with all Council Members present and all members of the Citizens Finance Advisory Committee present, except Member Dorfman.

2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
Mayor Wixom opened public comment for items on the agenda:
 Nicole Dorfman, Morro Bay, appreciated the discussion and suggested the City encourage people to buy gas locally and promote sea otters.

End of public comment.

3. SPECIAL MEETING AGENDA ITEMS

3.a REVENUE ENHANCEMENT OPPORTUNITIES AND RECOMMENDATIONS CFAC Chair Peck provided a brief report.

Mayor Wixom noted that several of the initiatives recommended by CFAC were either underway or approved as part of the City goals, including the potential sale

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2 of 231 Atascadero Road (former Teen Center), paid parking program at the Rock, enhancing RV facilities through lease negotiations with Morro Dunes RV Park and re-use of the former WWTP property, development of a holistic approach to facility rental pricing within the context of an Events Policy discussion (to be reviewed by the Recreation & Parks Commission prior to City Council), and a risk-based review of the General Fund Emergency Reserve policy.

The sale of Market Plaza is paused until the Waterfront Master Plan update has been completed so the development of the property can be aligned to the Plan.

Following discussion, there was Council consensus and direction on the following:
 Shift location of proposed events from the Rock to Tidelands Park, coordinate with the Chamber to upscale and enhance Saturday Farmers Market, revive the fish market on the Embarcadero.
 Partner with Visit Morro Bay and the Chamber in marketing effort to reach Cal Poly and Cuesta staff and students, including increased maintenance and beautification of the Embarcadero to keep them coming back.

While there was some interest in Community Facilities Districts (CFDs), there was no direction to explore CFDs, Enhanced Infrastructure Finance Districts (EIFDs) or Climate Resiliency Districts (CRDs) at this time.

3.b REVIEW CFAC WORK PLAN AND POTENTIAL FINANCIAL PROJECTS FOR 2026
The Council and CFAC discussed potential work plan items for 2026 and directed the following:
 Revenue Policy review, including how revenues are to be used, to CFAC in January/February, prior to presentation to Council in May.  Quantitative guidelines to simplify allocation and accounting of Measure Q/E funds to CFAC in August and/or October.

While not assigned to the CFAC's work plan, Council desires CFAC member input and recommendations on the risk-based analysis of the General Fund Emergency Reserve Policy. Additionally, there was Council interest in having the PWAB and CFAC jointly review the Capital Improvement Project list in the fall.

4. ADJOURNMENT
The meeting adjourned at 5:26 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

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1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
October 28, 2025, 3:00 p.m.

City Hall Conference Room
595 Harbor Street, Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: Interim City Manager Andrea Lueker
City Attorney Brian Stack
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Finance Director Emily Conrad
Human Resources/Risk Manager Rachael Hendricks
Executive Recruiter Roberta Greathouse, Peckham & McKenney _____________________________________________________________________

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

2. SUMMARY OF CLOSED SESSION ITEMS

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

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

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

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

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2 Negotiations: Price and Terms of Payment

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

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. City Attorney Stack announced the Council met in closed session to discuss three items: City Manager recruitment, real property negotiations related to the Morro Elementary site, and real property negotiations regarding the former treatment plant site. No reportable action pursuant to the Brown Act was taken on any item.

6. ADJOURNMENT
The meeting adjourned at 4:45 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

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Prepared By: ___DM Dept Review: ______
City Manager Review: __AL___ City Attorney Review: __BS____ Staff Report
TO: Honorable Mayor and City Council DATE: October 30,2025 FROM: Andrea Lueker, Interim City Manager
Daniel McCrain, Fire Chief
SUBJECT: Consideration of forming Council Sub-committee regarding Examining the feasibility of shared Fire and EMS services with LOCSD titled the “Shared Fire Services subcommittee”

RECOMMENDED ACTION
As requested during the approval of Item 6h at the October 14, 2025 Regular Meeting, consider the establishment of a Council sub-committee regarding the Letter of Interest received from the Los Osos CSD regarding examining the feasibility of shared Fire and EMS services. If a sub-committee is established, pursuant to Council Policies Section 3.13, a defined purpose, parameters, and anticipated duration of the sub-committee should be established.

ALTERNATIVES
As this item is brought forward at the direction of Council, no alternatives are recommended.

FISCAL IMPACT
There is no fiscal impact as a result of this action.

BACKGROUND/DISCUSSION
At the October 14, 2025 Regular Meeting, Mayor Wixom requested and received majority support to bring back a future agenda item to consider the creation of a sub-committee regarding responding to the Letter of interest received on September 19, 2025 from the Los Osos Community Services District regarding examining the feasibility of shared fire and emergency medical services. The General Manager of the Los Osos Community Services District was requested by their Board of Directors to evaluate alternative service delivery models as recent sharp increases in contracted service costs— and persistent challenges in resolving operational and fiscal issues with the County—have prompted the Board to evaluate different options to provide these services to the district. As a neighboring agency that works closely together in training and emergency responses, this option represents a logical and mutually beneficial option for shared fire and emergency services.

Council Policies & Procedures Section 3.13 provides the City Council may appoint a sub-committee to address a particular issue, especially if the issue requires additional work or research. The Policy further states, establishing a subcommittee requires the body to define the purpose, parameters, and duration of the sub-committee. To closely follow the directive of this section, staff recommends the Council establish a defined purpose, parameters and anticipated duration when creating a subcommittee. Some considerations are:

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

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 Purpose: The Shared Services subcommittee is created for the purpose of determining the scope of a shared services agreement.
 Parameters: Under the City Council’s collective policy direction, the Subcommittee will collaborate with staff in identifying opportunities and exploring options for shared services for fire and emergency medical responses which may include hiring of personnel, providing emergency response, Fire Marshal services, and Emergency Operations Center coverage.

The sub-committee is expected to research pertinent topics, engage with the community and share information with the Council, staff and the community.  Duration: The Subcommittee will function for the duration necessary to enable the Council to decide on the scope of the response to the letter of Interest received and negotiation of an agreement if both agencies determine the proposal is feasible.

Furthermore, the City Goal of “The Shared Fire Services subcommittee” is unique as its scope is anticipated to continue evolving. Establishing a Council Sub-committee on this weighty yet dynamic goal provides an opportunity for staff to work closely with two Council Members to determine if this opportunity is a benefit to both communities to advance the delivery of emergency services to our citizens. To implement this goal, the City Manager has established a Goal Lead approach and assigned Daniel McCrain, the Fire Chief, as Lead for the response to the letter of interest. Staff is in the process of developing an Action Plan that will outline necessary resources, items to be defined, a scope for services, and a draft financial impact report. A Council sub-committee can serve as a sounding board and be woven into the Action Plan as staff progresses with this Council goal.

It is to be reminded that staff and committee members bring recommendations on matters related to policy, City positions, contract approvals, and large budgetary actions back to the full Council in open session for discussion and approval. Additionally, should Council establish a Shared Fire Services sub-committee, a sub-committee report will be included in the City Council meeting agendas along with other sub-committees for the purpose of facilitating timely updates. Council should also consider discontinuing subcommittees that have achieved their intended purposes.

CONCLUSION
Establishing a Council sub-committee on Responding to the Letter of Interest from the Los Osos CSD aligns with City’s existing practices, policy priorities, and supports staff’s implementation plan.

As the discussions evolve, the “purpose, parameter and duration” of the subcommittee may change.

Adjustments may be necessary to comply with Section 3.13 - Council Sub-Committee, as outlined in the Council Polices & Procedures stated below.
“From time to time it may be desirable for the City Council to appoint a sub-committee of the whole to address a particular issue. That is especially the case if the issue requires additional work or research. Per the Brown Act, sub-committees must consist of less than a quorum of the body and serve for a limited purpose and time. Therefore, the City Council subcommittees may consist of two members. Sub-committees shall report back to the full Council for discussion before any formal action can be taken on the pertinent issue. Establishing a subcommittee requires the body to define the purpose, parameters, and duration of the subcommittee. The City Clerk will keep the list of sub-committees and defined description as a record with Council liaison assignments for review annually.”

ATTACHMENT(S)

1. Letter of Interest: Shared Fire Protection and Emergency Medical Services

2. Link to Council Policies & Procedures

3. Link to 2025 Council Discretionary Appointments and Subcommittees

Page 19 of 272 ends

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

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

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

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

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

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

Page 20 of 272 ends

Prepared By: __EC____ Dept Review: ______
City Manager Review: ___AL_____ City Attorney Review: _BS_ Staff Report
TO: Honorable Mayor and City Council DATE: October 29, 2025 FROM: Emily Conrad, Finance Director
SUBJECT: Approval of Fiscal Year 2024-25 Year-End Budget Amendments

RECOMMENDED ACTION
Adopt Resolution No. 57-25 approving FY 2024-25 Year-End Budget Adjustments.

DISCUSSION/FISCAL IMPACT
Year-End Budget Amendments
A few budget variances have been identified as staff prepares year-end entries to close out the FY 2024-25 books. Staff recommends that the City Council adopt Resolution No. 57-25 (Attachment 1) authorizing staff to proceed with FY 2024-25 year-end budget adjustments. With the approval of staff’s recommendation, the year-end close-out process can continue in preparation for the auditor’s final fieldwork and audit completion. The proposed year-end budget adjustments are generally minor, truing-up revenues and expenditures to actuals. In some cases when recognizing additional revenue, it is necessary to increase the expenditure budget by the same amount. This is true particularly for Governmental Capital Projects fund so that carryforward budget can be calculated accurately. The total increase to the citywide revenue budget is $2,972,462.29 and the total increase to citywide expenditure budget is $2,245,692.53. The adjustments are summarized below and a table of the changes can be viewed in Resolution No. 57-25 (Attachment 1). Detailed budget reports can be viewed in FY 2024-25 Budget Reports (Attachment 2).
 General Governmental Vehicle Replacement Fund (050) – Increase expenditure budget to reflect actual expenditures in excess of budget.
 State Gas Tax Fund (250) – Increase revenue budget to reflect actual revenue received; revenue is transferred for use in the general fund, therefore an equal increase to the expenditure budget is required
 Road Maintenance and Rehabilitation/SB1 Fund (260) – Increase revenue budget to reflect actual revenue received, both in FY 2023-24 and FY 2024-25; revenue is transferred for use by the Annual Pavement Management Program, therefore an equal increase to the expenditure budget is required
 Traffic Safety Fund (280) – Increase revenue budget to reflect actual revenue received; increase expenditure budget commensurate with the additional revenue  Special Safety Grants Fund (282) – Increase expenditure budget to reflect actual vehicle AGENDA NO: 6.c
MEETING DATE: November 12, 2025

Page 21 of 272 ends

maintenance costs spent by these dollars rather than General Fund  Transit Operating Fund (301) – Increase expenditure budget to reflect first payment to SLO Regional Transit Authority (SLO RTA); expense was approved by City Council but budget amendment was not formally authorized
 Governmental Impact Fees (900) – Increase expenditure budget to reflect transfer of funds to Bonita Fire Station capital project; expense was approved by City Council but budget amendment was not formally authorized
 Governmental Capital Projects Fund (915) – Recognize actual revenue in excess of budgetary estimates, and increase expenditure budget by equal amount (FEMA grant reimbursement, Governmental Impact Fee transferred in, Road Maintenance and Rehabilitation prior and current year revenue transferred in, Morro Bay Beautiful donation, EV Charging Station grant, storm drain repair grant)
 State Park Marina (924) – Increase revenue budget to reflect actual revenue received; increase to the expenditure commensurate with the additional revenue

CONCLUSION
Staff recommends that the City Council adopt Resolution No. 57-25 approving FY 2024-25 Year-End Budget adjustments, allowing staff to continue preparing for the annual year-end audit and closing FY 2024-25 financial records.

ATTACHMENTS

1. Resolution No. 57-25 Approving Fiscal Year 2024-25 Year-End Budget Adjustments

2. FY 2024-25 Budget Reports

Page 22 of 272 ends

RESOLUTION NO. 57-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING FISCAL YEAR 2024-25 YEAR-END BUDGET ADJUSTMENTS

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City staff is preparing year-end accounting entries to close out the City’s Fiscal Year 2024-25 financial records; and
WHEREAS, in preparing year-end accounting entries staff have identified budget adjustments needed to ensure that the City ends the year consistent with Council’s fiscal direction; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,

1. The operating budgets of the City are amended by the additional revenues and expenditures, as shown on the attached Exhibit A, to finalize Fiscal Year 2024-25 accounting records.

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

Page 23 of 272 ends

Exhibit A – Fiscal Year 2024-25 Year-End Budget Amendments Fund Department Account GL Budget Increase/
(Decrease)
Amended
Budget
Governmental
Vehicle
Replacement
Consolidated
Maintenance
Trucks 050-5215-7202 $64,961.00 $14,118.85 $79,079.85
State Gas Tax Street
Maintenance
Gas Tax -
Section 2105
250-5230-3211 $65,497.00 $106.13 $65,603.13
State Gas Tax Street
Maintenance
Gas Tax -
Section 2106
250-5230-3212 $51,916.00 $1,904.02 $53,820.02
State Gas Tax Street
Maintenance
Gas Tax -
Section 2107
250-5230-3213 $89,510.00 $(2,486.72) $87,023.28
State Gas Tax Street
Maintenance
Gas Tax -
Section 2103
250-5230-3219 $93,684.00 $7,185.31 $100,869.31
State Gas Tax Interfund
Transactions
Transfer to
General Fund
250-7710-8510 $303,607.00 $6,708.74 $310,315.74
Road Maintenance
& Rehab (SB-1)
Undistrib/Non
-Dept
Road Maint &
Rehab Alloc
260-1111-3215 $269,999.00 $18,092.01 $288,091.01
Road Maintenance
& Rehab (SB-1)
Undistrib/Non
-Dept
Prior Year
Carryforward
260-1111-3997 $0.00 $272,253.84 $272,253.84
Road Maintenance
& Rehab (SB-1)
Undistrib/Non
-Dept
Transfer to
Capital Imp
Fund
260-1111-8540 $269,999.00 $290,345.85 $560,344.85
Traffic Safety Police
Department
Statutory
Violations
280-4110-3620 $10,000.00 $15,175.68 $25,175.68
Traffic Safety Police
Department
Machinery/Equi
p/Supplies
280-4110-5504 $10,000.00 $15,175.68 $25,175.68

Special Safety
Grants
State Police
Grants
Outside Vehicle
Repair
282-4190-6604 $0.00 $7,802.08 $7,802.08
Transit Operating
Fund
MB Transit Programmed
Use of Fund
Balance
301-5261-3996 $19,200.00 $838,000.00 $857,200.00
Transit Operating
Fund
MB Transit Payment to
Other Agency
301-5261-8721 $0.00 $350,000.00 $350,000.00

Page 24 of 272 ends

3 | P a g e
Exhibit A – Fiscal Year 2024-25 Year-End Budget Amendments (Continued) Fund Department Account GL Budget Year-End
Amendment
Amended
Budget
Governmental
Impact Fees
Fire
Department
Transfers Out 900-4210-8501 $0.00 $39,309.31 $39,309.31 Governmental
Capital Projects
Fund
Storm/Flood
RepairFacilities/Equ
FEMA Federal
Grant
915-8033-3305 $0.00 $15,528.00 $15,528.00
Governmental
Capital Projects
Fund
Storm/Flood
RepairFacilities/Equ
Contractual
Services
915-8033-6106 $295,250.00 $15,528.00 $310,778.00
Governmental
Capital Projects
Fund
Storm/Flood
RepairPavement
FEMA Federal
Grant
915-8034-3305 $0.00 $623,388.83 $623,388.83
Governmental
Capital Projects
Fund
Storm/Flood
RepairPavement
Contractual
Services
915-8034-6106 $741,334.05 $623,388.83 $1,364,722.88
Governmental
Capital Projects
Fund
Bonita Fire
Station
Remodel
Transfer from
Special Revenue
915-8206-3820 $0.00 $39,309.31 $39,309.31
Governmental
Capital Projects
Fund
Bonita Fire
Station
Remodel
Contractual
Services
915-8206-6106 $38,466.69 $39,309.31 $77,776.00
Governmental
Capital Projects
Fund
Pavement
Management
Program
Transfer from
Special Revenue
915-9614-3820 $350,000.00 $290,345.85 $640,345.85
Governmental
Capital Projects
Fund
Pavement
Management
Program
Transfer from
Enterprise
915-9614-3860 $0.00 $488,000.00 $488,000.00
Governmental
Capital Projects
Fund
Pavement
Management
Program
Contractual
Services
915-9614-6106 $4,633,477.51 $778,345.85 $5,411,823.36
Governmental
Capital Projects
Fund
Trash
Enclosures
Donations 915-9906-3970 $0.00 $10,000.00 $10,000.00
Governmental
Capital Projects
Fund
Trash
Enclosures
Machinery/Equi
p/Supplies
915-9906-5504 $0.00 $10,000.00 $10,000.00
Governmental
Capital Projects
Fund
New EV
Charging
Station
Other State
Grant Public
Service
915-9942-3391 $0.00 $14,016.00 $14,016.00
Governmental
Capital Projects
Fund
New EV
Charging
Station
Contractual
Services
915-9942-6106 $28,121.75 $14,016.0 $42,137.75

Page 25 of 272 ends

4 | P a g e
Exhibit A – Fiscal Year 2024-25 Year-End Budget Amendments (Continued) Fund Department Account GL Budget Year-End
Amendment
Amended
Budget
Governmental
Capital Projects
Fund
Sequoia Ct
Emergency
Storm/Drain
Repair
State Grant
Capital
Improvement
915-9950-3370 $0.00 $300,000.00 $300,000.00
State Park Marina State Park
Marina
Dredging
Harbor Leases 924-8107-3440 $95,000.00 $41,644.03 $136,644.03 State Park Marina State Park
Marina
Dredging
Regular Pay 924-8107-4110 $0.00 $41,644.03 $41,644.03

Page 26 of 272 ends

Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 .00 32,524.40 .00 32,524.40 (32,524.40) +++ 34,743.81.00 .00 4,265.30 .00 4,265.30 (4,265.30) +++ 5,799.90 $0.00 $0.00 $36,789.70 $0.00 $36,789.70 ($36,789.70) +++ $40,543.71$0.00 $0.00 $36,789.70 $0.00 $36,789.70 ($36,789.70) +++ $40,543.71 .00 .00 .00 .00 592.00 (592.00) +++ .00.00 .00 2,133.08 .00 2,133.08 (2,133.08) +++ .00.00 75,000.00 .00 .00 59,319.59 15,680.41 79 .00 $0.00 $75,000.00 $2,133.08 $0.00 $62,044.67 $12,955.33 83% $0.00$0.00 ($75,000.00) ($2,133.08) $0.00 ($62,044.67) ($12,955.33) 83% $0.00 .00 68,000.00 6,125.63 .00 72,043.13 (4,043.13) 106 .00 $0.00 $68,000.00 $6,125.63 $0.00 $72,043.13 ($4,043.13) 106% $0.00$0.00 ($68,000.00) ($6,125.63) $0.00 ($72,043.13) $4,043.13 106% $0.00 80,000.00 80,000.00 80,000.00 .00 80,000.00 .00 100 .00 $80,000.00 $80,000.00 $80,000.00 $0.00 $80,000.00 $0.00 100% $0.00 .00 .00 .00 .00 82.91 (82.91) +++ .00.00 .00 698.60 .00 1,803.47 (1,803.47) +++ .00 80,000.00 80,000.00 73,158.64 .00 75,974.64 4,025.36 95 .00 $80,000.00 $80,000.00 $73,857.24 $0.00 $77,861.02 $2,138.98 97% $0.00 $0.00 $0.00 $6,142.76 $0.00 $2,138.98 ($2,138.98) +++ $0.00 .00 64,961.00 .00 .00 90,131.03 (25,170.03) 139 87,000.00 EXPENSE TOTALS $64,961.00 $0.00 $64,961.00 $0.00 $0.00 $90,131.03 ($25,170.03) 139% $87,000.00

EXPENSE
7202 Trucks 64,961.00
EXPENSE TOTALS $0.00
Department 4230 - Fire Mutual Aid Totals $0.00
Department 5215 - Consolidated Maintenance
5199 Miscellaneous Operating Supplies .007202 Trucks .00 REVENUE TOTALS $0.00

EXPENSE
5108 Communication Supplies .00

REVENUE
3801 Transfers In .00
EXPENSE TOTALS $68,000.00
Department 4210 - Fire Department Totals ($68,000.00)
Department 4230 - Fire Mutual Aid

EXPENSE
7202 Trucks 68,000.00
EXPENSE TOTALS $75,000.00
Department 4110 - Police Department Totals ($75,000.00) Department 4210 - Fire Department
6604 Outside Vehicle Repair/Maint .007201 Automobiles 75,000.00

EXPENSE
5199 Miscellaneous Operating Supplies .00
REVENUE TOTALS $0.00
Department 1111 - Undistributed/Non-Dept. Totals $0.00
Department 4110 - Police Department
3710 Interest Income .003750 Gain On Investment .00Fund 050 - Gen. Gov. Vehicle Replacement Department 1111 - Undistributed/Non-Dept.

REVENUE
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description Budget
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 27 of 272 Page 1 of 2 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
$0.00 ($64,961.00) $0.00 $0.00 ($90,131.03) $25,170.03 139% ($87,000.00) .00 .00 .00 .00 .00 .00 +++ 107,000.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $107,000.00$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $107,000.00 80,000.00 80,000.00 116,789.70 .00 116,789.70 (36,789.70) 146% 147,543.7180,000.00 287,961.00 82,115.95 .00 302,079.85 (14,118.85) 105% 87,000.00 $0.00 ($207,961.00) $34,673.75 $0.00 ($185,290.15) ($22,670.85) $60,543.71 050-5215 Budget 64,961
Amendment 14,119
Amended Budget 79,080
Fund 050 - Gen. Gov. Vehicle Replacement Totals ($207,961.00) Fund 050 - Gen. Gov. Vehicle Replacement Totals
REVENUE TOTALS .00
EXPENSE TOTALS 207,961.00
REVENUE TOTALS $0.00
Department 7710 - Interfund Transactions Totals $0.00

REVENUE
3802 Intrafund Revenue Transfers .00
Department 5215 - Consolidated Maintenance Totals ($64,961.00) Department 7710 - Interfund Transactions
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 28 of 272 Page 2 of 2 Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 65,497.00 11,502.93 .00 65,603.13 (106.13) 100 64,001.11.00 51,916.00 9,460.16 .00 53,820.02 (1,904.02) 104 52,051.56.00 89,510.00 16,070.76 .00 87,023.28 2,486.72 97 89,631.06.00 3,000.00 .00 .00 3,000.00 .00 100 .00.00 93,684.00 18,345.28 .00 100,869.31 (7,185.31) 108 95,969.47 $0.00 $303,607.00 $55,379.13 $0.00 $310,315.74 ($6,708.74) 102% $301,653.20$0.00 $303,607.00 $55,379.13 $0.00 $310,315.74 ($6,708.74) 102% $301,653.20 .00 303,607.00 310,315.74 .00 310,315.74 (6,708.74) 102 301,653.20 $0.00 $303,607.00 $310,315.74 $0.00 $310,315.74 ($6,708.74) 102% $301,653.20$0.00 ($303,607.00) ($310,315.74) $0.00 ($310,315.74) $6,708.74 102% ($301,653.20) .00 303,607.00 55,379.13 .00 310,315.74 (6,708.74) 102% 301,653.20.00 303,607.00 310,315.74 .00 310,315.74 (6,708.74) 102% 301,653.20 $0.00 $0.00 ($254,936.61) $0.00 $0.00 $0.00 $0.00
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description BudgetFund 250 - State Gas Tax Fund Department 5230 - Street Maintenance

REVENUE
3211 Gas Tax - Section 2105 65,497.003212 Gas Tax - Section 2106 51,916.003213 Gas Tax - Section 2107 89,510.003214 Gas Tax - Section 2107.5 3,000.003219 R&T 7360 - Section 2103 93,684.00 REVENUE TOTALS $303,607.00
Department 5230 - Street Maintenance Totals $303,607.00 Department 7710 - Interfund Transactions

EXPENSE
8510 Transfer To General Fund 303,607.00
EXPENSE TOTALS $303,607.00
Department 7710 - Interfund Transactions Totals ($303,607.00) Fund 250 - State Gas Tax Fund Totals
REVENUE TOTALS 303,607.00
EXPENSE TOTALS 303,607.00
Fund 250 - State Gas Tax Fund Totals $0.00
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 29 of 272 Page 1 of 1 Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 269,999.00 27,994.35 .00 288,091.01 (18,092.01) 107 .00 18,092.01.00 .00 15,673.54 .00 15,673.54 (15,673.54) +++ .00.00 .00 657.82 .00 657.82 (657.82) +++ .00.00 .00 272,253.84 .00 272,253.84 (272,253.84) +++ .00 272,253.84 $0.00 $269,999.00 $316,579.55 $0.00 $576,676.21 ($306,677.21) 214% $0.00 .00 269,999.00 560,344.85 .00 560,344.85 (290,345.85) 208 .00 290,345.85 $0.00 $269,999.00 $560,344.85 $0.00 $560,344.85 ($290,345.85) 208% $0.00$0.00 $0.00 ($243,765.30) $0.00 $16,331.36 ($16,331.36) +++ $0.00 .00 .00 47,447.90 .00 .00 .00 +++ .00.00 .00 (272,253.84) .00 .00 .00 +++ .00 $0.00 $0.00 ($224,805.94) $0.00 $0.00 $0.00 +++ $0.00$0.00 $0.00 ($224,805.94) $0.00 $0.00 $0.00 +++ $0.00 .00 269,999.00 91,773.61 .00 576,676.21 (306,677.21) 214% .00.00 269,999.00 560,344.85 .00 560,344.85 (290,345.85) 208% .00 $0.00 $0.00 ($468,571.24) $0.00 $16,331.36 ($16,331.36) $0.00 REVENUE TOTALS 269,999.00
EXPENSE TOTALS 269,999.00
Fund 260 - Road Maintenance and Rehab SB1 Totals $0.00
Department 9614 - Pavement Management Program Totals $0.00 Fund 260 - Road Maintenance and Rehab SB1 Totals
3997 Prior Year Carryforward .00
REVENUE TOTALS $0.00

REVENUE
3215 Road Maint. & Rehab Alloc SB1-2032(h)(2) .00
EXPENSE TOTALS $269,999.00
Department 1111 - Undistributed/Non-Dept. Totals $0.00
Department 9614 - Pavement Management Program
REVENUE TOTALS $269,999.00

EXPENSE
8540 TRFR To Capital Imp Fund 269,999.003750 Gain On Investment .003997 Prior Year Carryforward .003215 Road Maint. & Rehab Alloc SB1-2032(h)(2) 269,999.003710 Interest Income .00Fund 260 - Road Maintenance and Rehab SB1 Department 1111 - Undistributed/Non-Dept.

REVENUE
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description Budget
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 30 of 272 Page 1 of 1 Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 10,000.00 6,603.15 .00 25,175.68 (15,175.68) 252 17,112.18 15,175.68 $0.00 $10,000.00 $6,603.15 $0.00 $25,175.68 ($15,175.68) 252% $17,112.18 .00 10,000.00 .00 .00 10,172.33 (172.33) 102 .00 15,175.68 $0.00 $10,000.00 $0.00 $0.00 $10,172.33 ($172.33) 102% $0.00$0.00 $0.00 $6,603.15 $0.00 $15,003.35 ($15,003.35) +++ $17,112.18 .00 10,000.00 6,603.15 .00 25,175.68 (15,175.68) 252% 17,112.18.00 10,000.00 .00 .00 10,172.33 (172.33) 102% .00 $0.00 $0.00 $6,603.15 $0.00 $15,003.35 ($15,003.35) $17,112.18 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description BudgetFund 280 - Traffic Safety Fund Department 4110 - Police Department

REVENUE
3620 Statutory Violations 10,000.00
REVENUE TOTALS $10,000.00

EXPENSE
5504 Machinery/Equip/Supplies 10,000.00
EXPENSE TOTALS $10,000.00
Department 4110 - Police Department Totals $0.00
Fund 280 - Traffic Safety Fund Totals $0.00Fund 280 - Traffic Safety Fund Totals REVENUE TOTALS 10,000.00
EXPENSE TOTALS 10,000.00
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 31 of 272 Page 1 of 1 Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 .00 15,823.41 .00 15,823.41 (15,823.41) +++ 14,107.03.00 .00 1,765.46 .00 1,765.46 (1,765.46) +++ 2,522.52 $0.00 $0.00 $17,588.87 $0.00 $17,588.87 ($17,588.87) +++ $16,629.55$0.00 $0.00 $17,588.87 $0.00 $17,588.87 ($17,588.87) +++ $16,629.55 .00 150,000.00 .00 .00 100,000.00 50,000.00 67 280,822.42 $0.00 $150,000.00 $0.00 $0.00 $100,000.00 $50,000.00 67% $280,822.42 (45,925.67) .00 .00 .00 .00 .00 +++ 23,842.23
.00 .00 .00 .00 .00 .00 +++ 374.36.00 .00 .00 .00 .00 .00 +++ (714.91) (2,263.00) .00 .00 .00 .00 .00 +++ 2,639.93
(755.22) .00 .00 .00 .00 .00 +++ 818.13
(3,614.35) .00 .00 .00 .00 .00 +++ 1,823.56(9,797.05) .00 .00 .00 .00 .00 +++ 9,399.00(2,026.00) .00 .00 .00 .00 .00 +++ 1,377.00 .00 .00 .00 .00 .00 .00 +++ 435.11.00 .00 2,358.29 .00 2,747.25 (2,747.25) +++ .00.00 5,000.00 .00 .00 .00 5,000.00 0 1,933.75.00 .00 .00 .00 1,744.91 (1,744.91) +++ .00.00 9,500.00 .00 .00 .00 9,500.00 0 217.50.00 30,000.00 .00 .00 11,491.55 18,508.45 38 2,087.14.00 .00 .00 .00 274.46 (274.46) +++ .00.00 .00 84.79 .00 1,076.17 (1,076.17) +++ .00.00 .00 68.12 .00 68.12 (68.12) +++ .00.00 .00 .00 .00 313.20 (313.20) +++ .00.00 45,000.00 1,237.57 .00 22,114.10 22,885.90 49 39,224.63.00 .00 3,500.00 .00 3,500.00 (3,500.00) +++ 2,189.00.00 2,000.00 .00 .00 1,499.84 500.16 75 .00.00 5,000.00 .00 .00 .00 5,000.00 0 1,092.31.00 3,000.00 .00 .00 705.00 2,295.00 24 120.00.00 10,000.00 1,381.24 .00 8,022.21 1,977.79 80 8,580.44 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description Budget3710 Interest Income .003750 Gain On Investment .00Fund 282 - Special Safety Grants Department 1111 - Undistributed/Non-Dept.

REVENUEREVENUE
3229 CA COPS Program SLESF 150,000.00
REVENUE TOTALS $0.00
Department 1111 - Undistributed/Non-Dept. Totals $0.00
Department 4190 - State Police Grants
4120 Overtime Pay .004530 Record Compensated Absences .00 REVENUE TOTALS $150,000.00

EXPENSE
4110 Regular Pay 45,925.674911 Pension Normal Cost 3,614.354912 PERS Unfunded Accrued Liability 9,797.054599 Other Pay 2,263.004910 Employer Paid Benefits 755.225107 Canine Unit Supplies .005109 Uniforms/Safety Equipment 5,000.004914 Workers' Compensation 2,026.005105 First Aide Supplies .005301 General Office Supplies 30,000.005352 Award/Trophy Supplies .005175 Computer Operating Supplies .005199 Miscellaneous Operating Supplies 9,500.005503 Rolling Stock Supplies .005504 Machinery/Equip/Supplies 45,000.005501 Grounds Maintenance Supplies .005502 Building Maint. Supplies .006125 Professional Development 5,000.006129 Digital Services 3,000.006106 Contractual Services .006107 Promotion & Advertising 2,000.006201 Telephone 10,000.00 Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 32 of 272 Page 1 of 2 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
.00 .00 730.12 .00 4,593.51 (4,593.51) +++ .00.00 .00 .00 .00 42.99 (42.99) +++ .00.00 .00 .00 .00 20,325.20 (20,325.20) +++ 3,979.85 7,802.08.00 2,500.00 135.00 .00 13,391.00 (10,891.00) 536 372.00 17,600.00 17,600.00 116.68 .00 116.68 17,483.32 1 .0055,000.00 55,000.00 .00 .00 56,809.49 (1,809.49) 103 63,262.86 .00 .00 .00 .00 43,566.40 (43,566.40) +++ .00
$8,218.71 $184,600.00 $9,611.81 $0.00 $192,402.08 ($7,802.08) 104% $163,053.89 ($8,218.71) ($34,600.00) ($9,611.81) $0.00 ($92,402.08) $57,802.08 267% $117,768.53 .00 150,000.00 17,588.87 .00 117,588.87 32,411.13 78% 297,451.97 8,218.71 184,600.00 9,611.81 .00 192,402.08 (7,802.08) 104% 163,053.89 ($8,218.71) ($34,600.00) $7,977.06 $0.00 ($74,813.21) $40,213.21 $134,398.08 6602 Outside Structural Repair .006604 Outside Vehicle Repair/Maint .006510 Meetings & Conferences .007201 Automobiles .007302 Equipment Acquisition .006640 Maintenance Contracts 2,500.006720 Medical Examinations .00 Fund 282 - Special Safety Grants Totals ($26,381.29)Fund 282 - Special Safety Grants Totals REVENUE TOTALS 150,000.00
EXPENSE TOTALS 176,381.29EXPENSE TOTALS $176,381.29
Department 4190 - State Police Grants Totals ($26,381.29) Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 33 of 272 Page 2 of 2 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 62,602.32 .00 62,602.32 (62,602.32) +++ 56,094.14.00 7,624.91 .00 7,624.91 (7,624.91) +++ 11,635.17 $0.00 $70,227.23 $0.00 $70,227.23 ($70,227.23) +++ $67,729.31 .00 .00 .00 .00 .00 +++ (244,004.96)
$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($244,004.96)$0.00 $70,227.23 $0.00 $70,227.23 ($70,227.23) +++ $311,734.27 .00 72,629.91 .00 72,629.91 (72,629.91) +++ .00
$0.00 $72,629.91 $0.00 $72,629.91 ($72,629.91) +++ $0.00$0.00 ($72,629.91) $0.00 ($72,629.91) $72,629.91 +++ $0.00 318,079.00 86,522.25 .00 314,293.33 3,785.67 99 345,849.54 60,988.00 15,238.25 .00 60,953.00 35.00 100 69,971.00
.00 (121,659.14) .00 (121,659.14) 121,659.14 +++ (151,908.42) PY Rev for contr to Pavement Mgmt 488,000 13,000.00 2,782.26 .00 14,213.78 (1,213.78) 109 11,481.67 PY Rev for Payment to SLO RTA 350,00019,200.00 857,200.00 .00 857,200.00 (838,000.00) 4465 (119,438.00) 838,000 $411,267.00 $840,083.62 $0.00 $1,125,000.97 ($713,733.97) 274% $155,955.79 25,000.00 4,355.44 .00 22,000.80 2,999.20 88 28,052.08
5,200.00 .00 .00 2,813.07 2,386.93 54 4,140.862,921.00 .00 .00 169.40 2,751.60 6 .00 226,898.00 21,753.14 .00 218,343.02 8,554.98 96 208,845.22 100.00 .00 .00 .00 100.00 0 100.00424.00 .00 .00 .00 424.00 0 442.19 3,279.00 .00 .00 .00 3,279.00 0 .00
.00 .00 .00 .00 .00 +++ 1,641.00
800.00 .00 .00 .00 800.00 0 1,109.11
.00 .00 .00 40.00 (40.00) +++ .00.00 350,000.00 .00 350,000.00 (350,000.00) +++ .00 350,000 Payment to SLO RTA 8730 Cap. Asset Depreciation .00 .00 .00 .00 .00 +++ 14,203.466604 Outside Vehicle Repair/Maint8721 Payment To Other Agency6473 Vehicle Insurance6519 Association Membership6201 Telephone6401 General Liability Insurance6106 Contractual Services6160 Vehicle Inspections5504 Machinery/Equip/Supplies6101 Legal Services - General

REVENUE TOTALS

EXPENSE
5110 Fuel Oil & Lubricants3453 Van Farebox Receipts3996 Programmed Use of Fund Balance3234 DAR STA3236 LTF Misc Trans Allocation

REVENUE
3231 LTF Transit

EXPENSE TOTALS
Department 1112 - Year-End Accounting Entry Totals
Department 5261 - MB Transit

EXPENSE
8730 Cap. Asset Depreciation

EXPENSE TOTALS
Department 1111 - Undistributed/Non-Dept. Totals
Department 1112 - Year-End Accounting Entry

REVENUE TOTALS

EXPENSE
8712 Capital Asset Acquistion Transfer To Balance Sheet 3710 Interest Income3750 Gain On InvestmentFund 301 - Transit Fund Department 1111 - Undistributed/Non-Dept.

REVENUE
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 34 of 272 Page 1 of 2 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
.00 409,152.10 .00 409,152.10 (409,152.10) +++ .00
$264,622.00 $785,260.68 $0.00 $1,002,518.39 ($737,896.39) 379% $258,533.92$146,645.00 $54,822.94 $0.00 $122,482.58 $24,162.42 84% ($102,578.13) 42,826.00 .00 .00 31,795.67 11,030.33 74 42,745.46
4,000.00 .00 .00 2,862.00 1,138.00 72 3,980.25
.00 .00 .00 .00 .00 +++ 598.50.00 .00 .00 .00 .00 +++ 35,573.00 $46,826.00 $0.00 $0.00 $34,657.67 $12,168.33 74% $82,897.21 4,400.00 .00 .00 3,427.47 972.53 78 3,293.813,800.00 .00 .00 60.86 3,739.14 2 856.31 38,522.00 .00 .00 26,992.74 11,529.26 70 33,369.85
104.00 .00 .00 .00 104.00 0 .00
.00 .00 .00 .00 .00 +++ 23,581.45
$46,826.00 $0.00 $0.00 $30,481.07 $16,344.93 65% $61,101.42 $0.00 $0.00 $0.00 $4,176.60 ($4,176.60) +++ $21,795.79
.00 .00 .00 .00 .00 +++ 119,438.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $119,438.00
27,797.00 .00 .00 27,797.00 .00 100 20,868.00
507,200.00 488,000.00 .00 507,200.00 .00 100 55,573.00
$534,997.00 $488,000.00 $0.00 $534,997.00 $0.00 100% $76,441.00 ($534,997.00) ($488,000.00) $0.00 ($534,997.00) $0.00 100% $42,997.00 458,093.00 910,310.85 .00 1,229,885.87 (771,792.87) 268% 426,020.31846,445.00 1,345,890.59 .00 1,640,626.37 (794,181.37) 194% 152,071.38 ($388,352.00) ($435,579.74) $0.00 ($410,740.50) $22,388.50 $273,948.93 72,629.91 Depreciation - remove from actuals
409,152.10 Loss on Assets - remove from actuals
1,158,844.36 Revised total expenditures
(312,399.36) Revised over/under

REVENUE TOTALS

EXPENSE TOTALS
Fund 301 - Transit Fund Totals
Department 7710 - Interfund Transactions Totals
Fund 301 - Transit Fund Totals
8540 TRFR To Capital Imp Fund

EXPENSE TOTALS

REVENUE TOTALS

EXPENSE
8510 Transfer To General Fund

REVENUE
3801 Transfers In

EXPENSE TOTALS
Department 5265 - Trolley Totals
Department 7710 - Interfund Transactions
6160 Vehicle Inspections8730 Cap. Asset Depreciation5504 Machinery/Equip/Supplies6106 Contractual Services

EXPENSE
5110 Fuel Oil & Lubricants3996 Programmed Use of Fund Balance

REVENUE TOTALS
3453 Van Farebox Receipts3730 Rental Income

REVENUE
3231 LTF Transit

EXPENSE TOTALS
Department 5261 - MB Transit Totals
Department 5265 - Trolley
8735 Loss on Assets
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 35 of 272 Page 2 of 2 Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 .00 54,376.82 .00 54,376.82 (54,376.82) +++ 51,111.45.00 .00 7,505.67 .00 7,505.67 (7,505.67) +++ 6,922.98 $0.00 $0.00 $61,882.49 $0.00 $61,882.49 ($61,882.49) +++ $58,034.43$0.00 $0.00 $61,882.49 $0.00 $61,882.49 ($61,882.49) +++ $58,034.43 .00 78,906.00 17,373.73 .00 67,421.12 11,484.88 85 40,455.07 $0.00 $78,906.00 $17,373.73 $0.00 $67,421.12 $11,484.88 85% $40,455.07 .00 58,890.00 .00 .00 58,890.00 .00 100 .00
$0.00 $58,890.00 $0.00 $0.00 $58,890.00 $0.00 100% $0.00$0.00 $20,016.00 $17,373.73 $0.00 $8,531.12 $11,484.88 43% $40,455.07 .00 35,000.00 .00 .00 .00 35,000.00 0 .00.00 860.00 5,752.54 .00 22,107.39 (21,247.39) 2571 13,443.31 $0.00 $35,860.00 $5,752.54 $0.00 $22,107.39 $13,752.61 62% $13,443.31 .00 .00 .00 .00 .00 .00 +++ 47,000.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $47,000.00$0.00 $35,860.00 $5,752.54 $0.00 $22,107.39 $13,752.61 62% ($33,556.69) .00 944.00 6,307.08 .00 24,136.60 (23,192.60) 2557 14,766.99 $0.00 $944.00 $6,307.08 $0.00 $24,136.60 ($23,192.60) 2557% $14,766.99 .00 .00 39,309.31 .00 39,309.31 (39,309.31) +++ 80,000.00 39,309.31 $0.00 $0.00 $39,309.31 $0.00 $39,309.31 ($39,309.31) +++ $80,000.00$0.00 $944.00 ($33,002.23) $0.00 ($15,172.71) $16,116.71 -1607% ($65,233.01) .00 3,957.00 27,918.35 .00 106,926.04 (102,969.04) 2702 64,452.80 $0.00 $3,957.00 $27,918.35 $0.00 $106,926.04 ($102,969.04) 2702% $64,452.80 Fund 900 - Governmental Impact Fees
Department 1111 - Undistributed/Non-Dept.

REVENUE
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description Budget
REVENUE TOTALS $0.00
Department 1111 - Undistributed/Non-Dept. Totals $0.00
Department 3110 - City Manager's Office
3710 Interest Income .003750 Gain On Investment .00
REVENUE TOTALS $78,906.00

EXPENSE
8501 Transfers Out 58,890.00

REVENUE
3950 Impact Fees 78,906.00

REVENUE
3911 Property Damage 35,000.00
EXPENSE TOTALS $58,890.00
Department 3110 - City Manager's Office Totals $20,016.00 Department 4110 - Police Department

EXPENSE
8501 Transfers Out .003950 Impact Fees 860.00
REVENUE TOTALS $35,860.00

REVENUE
3950 Impact Fees 944.00
EXPENSE TOTALS $0.00
Department 4110 - Police Department Totals $35,860.00
Department 4210 - Fire Department
EXPENSE TOTALS $0.00
Department 4210 - Fire Department Totals $944.00
Department 5230 - Street Maintenance
REVENUE TOTALS $944.00

EXPENSE
8501 Transfers Out .00
REVENUE TOTALS $3,957.00

REVENUE
3950 Impact Fees 3,957.00
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 36 of 272 Page 1 of 2 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
.00 .00 .00 .00 .00 .00 +++ 597,950.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $597,950.00$0.00 $3,957.00 $27,918.35 $0.00 $106,926.04 ($102,969.04) 2702% ($533,497.20) .00 .00 .00 .00 .00 .00 +++ 42,750.00.00 171.00 744.96 .00 2,817.14 (2,646.14) 1647 1,621.09 $0.00 $171.00 $744.96 $0.00 $2,817.14 ($2,646.14) 1647% $44,371.09$0.00 $171.00 $744.96 $0.00 $2,817.14 ($2,646.14) 1647% $44,371.09 .00 .00 .00 .00 .00 .00 +++ 17,430.00.00 21,108.00 18,160.49 .00 69,591.03 (48,483.03) 330 42,936.73 $0.00 $21,108.00 $18,160.49 $0.00 $69,591.03 ($48,483.03) 330% $60,366.73 .00 .00 .00 .00 .00 .00 +++ 292,300.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $292,300.00$0.00 $21,108.00 $18,160.49 $0.00 $69,591.03 ($48,483.03) 330% ($231,933.27) .00 140,946.00 138,139.64 .00 354,881.81 (213,935.81) 252% 295,890.42.00 58,890.00 39,309.31 .00 98,199.31 (39,309.31) 167% 1,017,250.00 $0.00 $82,056.00 $98,830.33 $0.00 $256,682.50 ($174,626.50) ($721,359.58)

EXPENSE
8501 Transfers Out .00

REVENUE
3801 Transfers In .00
EXPENSE TOTALS $0.00
Department 5230 - Street Maintenance Totals $3,957.00
Department 5235 - Storm Drain/Creek Maint.

Department 5235 - Storm Drain/Creek Maint. Totals $171.00 Department 6160 - Parks (Gov Impact Fees Fund)

REVENUE
3950 Impact Fees 171.00
REVENUE TOTALS $171.00REVENUE TOTALS $21,108.00

EXPENSE
8501 Transfers Out .003801 Transfers In .003950 Impact Fees 21,108.00 Fund 900 - Governmental Impact Fees Totals $82,056.00Fund 900 - Governmental Impact Fees Totals REVENUE TOTALS 140,946.00
EXPENSE TOTALS 58,890.00EXPENSE TOTALS $0.00
Department 6160 - Parks (Gov Impact Fees Fund) Totals $21,108.00 Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 37 of 272 Page 2 of 2 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total 250,000.00 .00 .00 .00 250,000.00 0 .00
$250,000.00 $0.00 $0.00 $0.00 $250,000.00 0% $0.00
($250,000.00) $0.00 $0.00 $0.00 ($250,000.00) 0% $0.00
.00 .00 .00 .00 .00 +++ 17,430.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $17,430.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($17,430.00) .00 .00 .00 .00 .00 +++ 67,000.00.00 .00 .00 .00 .00 +++ 13,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $80,000.00
80,000.00 .00 .00 .00 80,000.00 0 .00
$80,000.00 $0.00 $0.00 $0.00 $80,000.00 0% $0.00
($80,000.00) $0.00 $0.00 $0.00 ($80,000.00) 0% $80,000.00 .00 15,528.00 .00 15,528.00 (15,528.00) +++ .00 15,528.00 15,528.00 .00 .00 .00 .00 .00 +++ 300,000.00
$0.00 $15,528.00 $0.00 $15,528.00 ($15,528.00) +++ $300,000.00 295,250.00 .00 .00 121,039.78 174,210.22 41 4,750.00 310,778.00 15,528.00 $295,250.00 $0.00 $0.00 $121,039.78 $174,210.22 41% $4,750.00 ($295,250.00) $15,528.00 $0.00 ($105,511.78) ($189,738.22) 36% $295,250.00 .00 623,388.83 .00 623,388.83 (623,388.83) +++ .00 623,388.83 623,388.83 .00 .00 .00 .00 .00 +++ 400,000.00
$0.00 $623,388.83 $0.00 $623,388.83 ($623,388.83) +++ $400,000.00 741,334.05 1,050.00 .00 130,946.25 610,387.80 18 114,684.95 1,364,722.88 623,388.83 $741,334.05 $1,050.00 $0.00 $130,946.25 $610,387.80 18% $114,684.95 ($741,334.05) $622,338.83 $0.00 $492,442.58 ($1,233,776.63) -66% $285,315.05 Recognize
Unbudgeted
Revenue
Received

EXPENSE TOTALS
Department 8034 - Storm/Flood Repair-Pavement Totals

EXPENSE
6106 Contractual Services3801 Transfers In

REVENUE TOTALS

REVENUE
3305 FEMA Federal Grant

EXPENSE TOTALS
Department 8033 - Storm/FloodRepair-Facilities/Equ Totals Department 8034 - Storm/Flood Repair-Pavement

EXPENSE
6106 Contractual Services3801 Transfers In

REVENUE TOTALS

REVENUE
3305 FEMA Federal Grant

EXPENSE TOTALS
Department 8032 - ActiveTranspPlan/CorridorStudies Totals Department 8033 - Storm/FloodRepair-Facilities/Equ

REVENUE TOTALS

EXPENSE
6106 Contractual Services3820 Trans. From Special Rev.

Department 8029 - Bocce Ball Court (Prelim. Est.) Totals Department 8032 - ActiveTranspPlan/CorridorStudies

REVENUE

EXPENSE TOTALS
Department 8028 - City Park Play Equipment Totals
Department 8029 - Bocce Ball Court (Prelim. Est.)

EXPENSE
3801 Transfers In

EXPENSE TOTALS
Fund 915 - Capital Projects Fund
Department 8028 - City Park Play Equipment

EXPENSE
8501 Transfers Out
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description7302 Equipment Acquisition
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 1 of 7 Page 38 of 272 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total Recognize
Unbudgeted
Revenue
Received Fund 915 - Capital Projects Fund
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
.00 .00 .00 .00 .00 +++ 40,000.00.00 .00 .00 .00 .00 +++ 150,000.00.00 .00 .00 .00 .00 +++ 47,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $237,000.00
57,050.71 .00 .00 2,545.00 54,505.71 4 74,949.29
145,363.55 .00 .00 59,980.00 85,383.55 41 4,636.45
$202,414.26 $0.00 $0.00 $62,525.00 $139,889.26 31% $79,585.74 ($202,414.26) $0.00 $0.00 ($62,525.00) ($139,889.26) 31% $157,414.26 .00 .00 .00 .00 .00 +++ 9,730.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $9,730.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($9,730.00) .00 .00 .00 .00 .00 +++ 141,838.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $141,838.00
250,000.00 .00 .00 .00 250,000.00 0 .00
$250,000.00 $0.00 $0.00 $0.00 $250,000.00 0% $0.00
($250,000.00) $0.00 $0.00 $0.00 ($250,000.00) 0% $141,838.00 .00 39,309.31 .00 39,309.31 (39,309.31) +++ 80,000.00 39,309.31 39,309.31 $0.00 $39,309.31 $0.00 $39,309.31 ($39,309.31) +++ $80,000.00 38,466.69 .00 .00 .00 38,466.69 0 41,533.31 77,776.00 39,309.31 $38,466.69 $0.00 $0.00 $0.00 $38,466.69 0% $41,533.31
($38,466.69) $39,309.31 $0.00 $39,309.31 ($77,776.00) -102% $38,466.69 .00 .00 .00 .00 .00 +++ 58,493.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $58,493.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($58,493.00)

EXPENSE TOTALS
Department 8207 - Repave Police Annex Parking Lot Totals

EXPENSE
6106 Contractual Services

EXPENSE TOTALS
Department 8206 - Bonita Fire Station Remodel Totals
Department 8207 - Repave Police Annex Parking Lot

REVENUE TOTALS

EXPENSE
6106 Contractual Services

REVENUE
3820 Trans. From Special Rev.

EXPENSE TOTALS
Department 8141 - Waterways&Storm SystemsMgmt Plan Totals Department 8206 - Bonita Fire Station Remodel

EXPENSE
6105 Consulting Services3801 Transfers In

REVENUE TOTALS
Department 8055 - Citywide Speed Survey 2022-23 Totals
Department 8141 - Waterways&Storm SystemsMgmt Plan

REVENUE
6105 Consulting Services

EXPENSE TOTALS
Department 8045 - Local Roadway Safety Plan (LRSP) Totals Department 8055 - Citywide Speed Survey 2022-23

EXPENSE
6106 Contractual Services

EXPENSE TOTALS

REVENUE TOTALS

EXPENSE
6104 Engineering Services3801 Transfers In3820 Trans. From Special Rev.

REVENUE
3370 State Grant Capital Impv
Department 8045 - Local Roadway Safety Plan (LRSP)
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 2 of 7 Page 39 of 272 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total Recognize
Unbudgeted
Revenue
Received Fund 915 - Capital Projects Fund
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
.00 .00 .00 .00 .00 +++ 825,999.52
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $825,999.52
2,014,791.70 67,544.22 .00 250,271.50 1,764,520.20 12 156,452.01 .00 1,200,000.00 .00 1,200,000.00 (1,200,000.00) +++ .00 $2,014,791.70 $1,267,544.22 $0.00 $1,450,271.50 $564,520.20 72% $156,452.01 ($2,014,791.70) ($1,267,544.22) $0.00 ($1,450,271.50) ($564,520.20) 72% $669,547.51 200,000.00 4,638.00 .00 115,201.29 84,798.71 58 .00
$200,000.00 $4,638.00 $0.00 $115,201.29 $84,798.71 58% $0.00 ($200,000.00) ($4,638.00) $0.00 ($115,201.29) ($84,798.71) 58% $0.00 80,000.00 .00 .00 80,000.00 .00 100 .00
$80,000.00 $0.00 $0.00 $80,000.00 $0.00 100% $0.00
80,000.00 .00 .00 20,000.99 59,999.01 25 .00
.00 .00 .00 .00 .00 +++ .00
$80,000.00 $0.00 $0.00 $20,000.99 $59,999.01 25% $0.00
$0.00 $0.00 $0.00 $59,999.01 ($59,999.01) +++ $0.00
.00 .00 .00 .00 .00 +++ 31,400.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $31,400.00
.00 .00 .00 .00 .00 +++ 31,400.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $31,400.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ $0.00 .00 .00 .00 .00 .00 +++ 168,820.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $168,820.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($168,820.00)

EXPENSE TOTALS
Department 8423 - Direction Sign Prog/Wayfinding Totals Department 8424 - Coleman Park Project

EXPENSE
8501 Transfers Out

EXPENSE TOTALS
Department 8400 - Pickleball Court Totals
Department 8423 - Direction Sign Prog/Wayfinding

EXPENSE
6106 Contractual Services3281 Donation From Private Agy

REVENUE TOTALS
Department 8313 - Morro Creek Trail/Bridge Totals
Department 8400 - Pickleball Court

REVENUE
6105 Consulting Services

EXPENSE TOTALS

EXPENSE
6104 Engineering Services3801 Transfers In

REVENUE TOTALS
Department 8240 - Citywide Capital & Fac Planning Totals Department 8313 - Morro Creek Trail/Bridge

REVENUE
6105 Consulting Services

EXPENSE TOTALS
Department 8229 - Hwy 1/Hwy 41 Main Inter. Totals
Department 8240 - Citywide Capital & Fac Planning

EXPENSE
8530 TRFR To Special Rev. Fund

EXPENSE TOTALS

REVENUE TOTALS

EXPENSE
6105 Consulting Services

REVENUE
3801 Transfers In
Department 8229 - Hwy 1/Hwy 41 Main Inter.

Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 3 of 7 Page 40 of 272 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total Recognize
Unbudgeted
Revenue
Received Fund 915 - Capital Projects Fund
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
177,000.00 .00 .00 .00 177,000.00 0 .00
.00 .00 .00 .00 .00 +++ 292,300.00
$177,000.00 $0.00 $0.00 $0.00 $177,000.00 0% $292,300.00 .00 .00 .00 3,155.00 (3,155.00) +++ .00
53,000.00 .00 .00 4,750.00 48,250.00 9 .00
557,300.00 .00 .00 1,816.75 555,483.25 0 .00
$610,300.00 $0.00 $0.00 $9,721.75 $600,578.25 2% $0.00
($433,300.00) $0.00 $0.00 ($9,721.75) ($423,578.25) 2% $292,300.00 .00 .00 .00 .00 .00 +++ 80,000.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $80,000.00
.00 .00 .00 .00 .00 +++ 168,480.60
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $168,480.60$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($88,480.60) 490,000.00 .00 .00 .00 490,000.00 0 .00
$490,000.00 $0.00 $0.00 $0.00 $490,000.00 0% $0.00
15,000.00 .00 .00 .00 15,000.00 0 .00
655,500.00 .00 .00 .00 655,500.00 0 .00
$670,500.00 $0.00 $0.00 $0.00 $670,500.00 0% $0.00
($180,500.00) $0.00 $0.00 $0.00 ($180,500.00) 0% $0.00
144,579.00 .00 .00 144,579.00 .00 100 .00
.00 .00 .00 .00 .00 +++ 185,027.00.00 .00 .00 .00 .00 +++ 89,973.13.00 .00 .00 .00 .00 +++ (21,863.67) $144,579.00 $0.00 $0.00 $144,579.00 $0.00 100% $253,136.46 .00 1,516.14 .00 1,516.14 (1,516.14) +++ .00
6106 Contractual Services 467,220.42 114,782.93 .00 117,282.93 349,937.49 25 5,284.58

REVENUE TOTALS

EXPENSE
5175 Computer Operating Supplies3880 Trans. From Trust/Agency3993 Other Revenue - Exclusive3801 Transfers In3810 Trans. From General Fund Department 8500 - ADA Accessibility Upgrades Totals
Department 9508 - Vet's BldgImpv-AudioVis/Chairs

REVENUE
6106 Contractual Services

EXPENSE TOTALS

REVENUE TOTALS

EXPENSE
6104 Engineering Services

REVENUE
3391 Other State Grant Public Svc

EXPENSE TOTALS
Department 8456 - LilaKeiserLot Rehab&ADA Upgrades Totals Department 8500 - ADA Accessibility Upgrades

REVENUE TOTALS

EXPENSE
6106 Contractual Services

REVENUE
3801 Transfers In

EXPENSE TOTALS
Department 8424 - Coleman Park Project Totals
Department 8456 - LilaKeiserLot Rehab&ADA Upgrades
6105 Consulting Services6106 Contractual Services

EXPENSE
6104 Engineering Services3820 Trans. From Special Rev.

REVENUE TOTALS

REVENUE
3370 State Grant Capital Impv
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 4 of 7 Page 41 of 272 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total Recognize
Unbudgeted
Revenue
Received Fund 915 - Capital Projects Fund
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
9,858.87 .00 .00 .00 9,858.87 0 15,141.132,961.27 .00 .00 .00 2,961.27 0 .00 $480,040.56 $116,299.07 $0.00 $118,799.07 $361,241.49 25% $20,425.71 ($335,461.56) ($116,299.07) $0.00 $25,779.93 ($361,241.49) -8% $232,710.75 .00 .00 .00 .00 .00 +++ 396,540.74
1,269,999.00 .00 .00 1,000,000.00 269,999.00 79 .00
350,000.00 560,344.85 .00 910,344.85 (560,344.85) 260 1,840,000.00 640,345.85 290,345.85 .00 488,000.00 .00 488,000.00 (488,000.00) +++ .00 488,000.00 488,000.00 $1,619,999.00 $1,048,344.85 $0.00 $2,398,344.85 ($778,345.85) 148% $2,236,540.74 .00 441.73 .00 441.73 (441.73) +++ .00.00 .00 .00 68,775.00 (68,775.00) +++ 94,385.00 154,065.84 39,200.68 .00 294,919.96 (140,854.12) 191 7,651.25 4,633,477.51 323,962.22 .00 3,600,444.40 1,033,033.11 78 358,348.67 5,411,823.36 778,345.85 .00 .00 .00 360.00 (360.00) +++ .00
$4,787,543.35 $363,604.63 $0.00 $3,964,941.09 $822,602.26 83% $460,384.92 ($3,167,544.35) $684,740.22 $0.00 ($1,566,596.24) ($1,600,948.11) 49% $1,776,155.82 500,000.00 .00 .00 500,000.00 .00 100 .00
$500,000.00 $0.00 $0.00 $500,000.00 $0.00 100% $0.00
579,093.57 .00 .00 1,075.54 578,018.03 0 97,620.93
.00 .00 .00 .00 .00 +++ 23,285.50
$579,093.57 $0.00 $0.00 $1,075.54 $578,018.03 0% $120,906.43 ($79,093.57) $0.00 $0.00 $498,924.46 ($578,018.03) -631% ($120,906.43) .00 .00 .00 .00 .00 +++ 150,000.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $150,000.00
150,000.00 .00 .00 287.10 149,712.90 0 .00
$150,000.00 $0.00 $0.00 $287.10 $149,712.90 0% $0.00
($150,000.00) $0.00 $0.00 ($287.10) ($149,712.90) 0% $150,000.00

EXPENSE TOTALS
Department 9827 - Sidewalk Imprv&Street Tree Repl Totals Department 9906 - Trash Enclosures

EXPENSE
6106 Contractual Services3801 Transfers In

REVENUE TOTALS
Department 9641 - AnnualStormDrainRepl/Major Maint Totals Department 9827 - Sidewalk Imprv&Street Tree Repl

REVENUE
7302 Equipment Acquisition

EXPENSE TOTALS

REVENUE TOTALS

EXPENSE
6106 Contractual Services

REVENUE
3801 Transfers In

EXPENSE TOTALS
Department 9614 - Pavement Management Program Totals
Department 9641 - AnnualStormDrainRepl/Major Maint
6106 Contractual Services6710 Notices & Publications6104 Engineering Services6105 Consulting Services

REVENUE TOTALS

EXPENSE
5199 Miscellaneous Operating Supplies
3820 Trans. From Special Rev.3860 Transfer From Enterprise3302 Federal Grant Public Svc3801 Transfers In Department 9508 - Vet's BldgImpv-AudioVis/Chairs Totals Department 9614 - Pavement Management Program

REVENUE
7310 Office Furniture

EXPENSE TOTALS
7302 Equipment Acquisition
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 5 of 7 Page 42 of 272 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total Recognize
Unbudgeted
Revenue
Received Fund 915 - Capital Projects Fund
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
.00 .00 .00 .00 .00 +++ 60,000.00.00 .00 .00 10,000.00 (10,000.00) +++ .00 10,000.00 10,000.00 $0.00 $0.00 $0.00 $10,000.00 ($10,000.00) +++ $60,000.00 .00 .00 .00 50,017.30 (50,017.30) +++ .00 10,000.00 10,000.00 60,000.00 .00 .00 .00 60,000.00 0 .00
$60,000.00 $0.00 $0.00 $50,017.30 $9,982.70 83% $0.00
($60,000.00) $0.00 $0.00 ($40,017.30) ($19,982.70) 67% $60,000.00 .00 .00 .00 .00 .00 +++ 9,900.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $9,900.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($9,900.00) .00 .00 .00 .00 .00 +++ 22,950.00
$0.00 $0.00 $0.00 $0.00 $0.00 +++ $22,950.00$0.00 $0.00 $0.00 $0.00 $0.00 +++ ($22,950.00) .00 .00 .00 14,016.00 (14,016.00) +++ .00 14,016.00 14,016.00 $0.00 $0.00 $0.00 $14,016.00 ($14,016.00) +++ $0.00
28,121.75 .00 .00 33.94 28,087.81 0 27,548.25 42,137.75 14,016.00 40,000.00 .00 .00 .00 40,000.00 0 .00
$68,121.75 $0.00 $0.00 $33.94 $68,087.81 0% $27,548.25
($68,121.75) $0.00 $0.00 $13,982.06 ($82,103.81) -21% ($27,548.25) .00 .00 .00 .00 .00 +++ 656.40.00 .00 .00 .00 .00 +++ 20,082.58.00 .00 .00 .00 .00 +++ 32,850.00 $0.00 $0.00 $0.00 $0.00 $0.00 +++ $53,588.98
Department 9949 - Junipr/ElenaEmerStormDrainRepair Totals $0.00 $0.00 $0.00 $0.00 $0.00 +++ ($53,588.98) Department 9950 - SequoiaCt Emerg StormDrainRepair

REVENUE
8501 Transfers Out

EXPENSE TOTALS
6105 Consulting Services6106 Contractual Services
Department 9942 - New EV Charging Station Totals
Department 9949 - Junipr/ElenaEmerStormDrainRepair

EXPENSE
7499 Other Capital Outlay

EXPENSE TOTALS

EXPENSE
6106 Contractual Services3391 Other State Grant Public Svc

REVENUE TOTALS
Department 9934 - SD-01B Pipeline Kern & Anchor Totals
Department 9942 - New EV Charging Station

REVENUE
8501 Transfers Out

EXPENSE TOTALS
Department 9933 - SD-01A Pipeline Kern & Anchor Totals
Department 9934 - SD-01B Pipeline Kern & Anchor

EXPENSE
8501 Transfers Out

EXPENSE TOTALS
Department 9906 - Trash Enclosures Totals
Department 9933 - SD-01A Pipeline Kern & Anchor

EXPENSE
7302 Equipment Acquisition

EXPENSE TOTALS

EXPENSE
5504 Machinery/Equip/Supplies3970 Donations

REVENUE TOTALS

REVENUE
3801 Transfers In
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 6 of 7 Page 43 of 272 Amended Current Month YTD YTD Budget - YTD % Used/
Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total Recognize
Unbudgeted
Revenue
Received Fund 915 - Capital Projects Fund
City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Account Account Description
.00 .00 .00 300,000.00 (300,000.00) +++ .00 300,000.00 300,000.00 $0.00 $0.00 $0.00 $300,000.00 ($300,000.00) +++ $0.00
.00 .00 .00 2,900.00 (2,900.00) +++ .00.00 2,905.00 .00 29,818.75 (29,818.75) +++ .00 497,523.68 .00 .00 447,101.30 50,422.38 90 61,517.32
$497,523.68 $2,905.00 $0.00 $479,820.05 $17,703.63 96% $61,517.32 ($497,523.68) ($2,905.00) $0.00 ($179,820.05) ($317,703.63) 36% ($61,517.32) 3,011,578.00 1,726,570.99 .00 4,125,165.99 (1,113,587.99) 137% 5,168,214.72 12,055,379.61 1,756,040.92 .00 6,524,680.65 5,530,698.96 54% 1,628,581.22 ($9,043,801.61) ($29,469.93) $0.00 ($2,399,514.66) ($6,644,286.95) $3,539,633.50 Recognize Revenue 1,780,587.99
1,480,587.99
Fund 915 - Capital Projects Fund Totals
Increase Exp Budget to Recognize New Revenue (915-9950 Exp Budget already included the $300k grant) Fund 915 - Capital Projects Fund Totals

REVENUE TOTALS

EXPENSE TOTALS

EXPENSE TOTALS
Department 9950 - SequoiaCt Emerg StormDrainRepair Totals 6105 Consulting Services6106 Contractual Services

EXPENSE
6104 Engineering Services3370 State Grant Capital Impv

REVENUE TOTALS
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 7 of 7 Page 44 of 272 Budget Amended Current Month YTD YTD Budget - YTD % Used/ Amendments Budget Transactions Encumbrances Transactions Transactions Rec'd Prior Year Total .00 .00 49,227.10 .00 49,227.10 (49,227.10) +++ .00.00 .00 2,066.08 .00 2,066.08 (2,066.08) +++ .00 $0.00 $0.00 $51,293.18 $0.00 $51,293.18 ($51,293.18) +++ $0.00 .00 .00 (.13) .00 (.13) .13 +++ .00
$0.00 $0.00 ($0.13) $0.00 ($0.13) $0.13 +++ $0.00$0.00 $0.00 $51,293.31 $0.00 $51,293.31 ($51,293.31) +++ $0.00 .00 95,000.00 22,482.90 .00 136,644.03 (41,644.03) 144 97,141.29 41,644.03 $0.00 $95,000.00 $22,482.90 $0.00 $136,644.03 ($41,644.03) 144% $97,141.29 .00 .00 2,202.24 .00 3,932.01 (3,932.01) +++ .00 4,692.75.00 .00 580.44 .00 713.08 (713.08) +++ .00.00 .00 24.95 .00 47.79 (47.79) +++ .00 $0.00 $0.00 $2,807.63 $0.00 $4,692.88 ($4,692.88) +++ $0.00$0.00 $95,000.00 $19,675.27 $0.00 $131,951.15 ($36,951.15) 139% $97,141.29 .00 95,000.00 73,776.08 .00 187,937.21 (92,937.21) 198% 97,141.29.00 .00 2,807.50 .00 4,692.75 (4,692.75) +++ .00 $0.00 $95,000.00 $70,968.58 $0.00 $183,244.46 ($88,244.46) $97,141.29 City of Morro Bay Budget Performance Report
Fiscal Year to Date 06/30/25
Include Rollup Account and Rollup to Account
Adopted
Account Account Description BudgetFund 924 - State Park Marina Department 1111 - Undistributed/Non-Dept.

REVENUE
3710 Interest Income .003750 Gain On Investment .00
REVENUE TOTALS $0.00

EXPENSE
4910 Employer Paid Benefits .00
EXPENSE TOTALS $0.00
Department 1111 - Undistributed/Non-Dept. Totals $0.00
Department 8107 - St Park Marina Dredging

REVENUE
3440 Harbor Leases 95,000.00
REVENUE TOTALS $95,000.00

EXPENSE
4110 Regular Pay .004910 Employer Paid Benefits .004911 Pension Normal Cost .00 EXPENSE TOTALS $0.00
Department 8107 - St Park Marina Dredging Totals $95,000.00 Fund 924 - State Park Marina Totals $95,000.00
Fund 924 - State Park Marina Totals
REVENUE TOTALS 95,000.00
EXPENSE TOTALS .00
Run by Emily Conrad on 10/28/2025 05:52:27 PM Page 45 of 272 Page 1 of 1 Prepared By: EC____ Dept Review: _EC____
City Manager Review: ___AL_____ City Attorney Review:

BS
Staff Report
TO: Honorable Mayor and Councilmembers DATE: November 6, 2025 FROM: Emily Conrad, Finance Director
SUBJECT: First Quarter Investment Report (period ending September 30, 2025) for Fiscal Year (FY) 2025-26

RECOMMENDED ACTION
Receive the attached First Quarter Investment Report (period ending September 30, 2025) for FY 2025-26.

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

DISCUSSION
The First Quarter Investment Report for FY 2025-26 is summarized below:
(1) Par Value is the face value of investments.
(2) Market Value is the amount in which investments could be sold. (3) WAM is the Weighted Average Maturity, the average time a security will mature.

The City’s investments had interest earnings of $885,414 during the period of July through September 2025. For comparison, the same period in 2024 saw interest earnings of $462,702 whereas the most recent prior quarter (April through June 2025) earnings were $888,015.

Compared to last quarter, the earnings have very slightly dipped, which is not surprising given that interest rates have slightly decreased. The healthy earnings can be attributed to increased cash balances in Mechanics Bank Money Market and the LAIF account which each continue to earn over 4% on high cash balances.

AGENDA NO: 6.d
MEETING DATE: November 12, 2025
Cash and Pooled Investment Portfolio at September 30, 2025 Institution Par Value¹ Market
Value² WAM³
Mechanics Bank (interest earning accounts) 32,365,937 32,365,937 0 LAIF 40,168,661 40,246,170 0
Zions Bancorporation (CDs and Treasury Notes) 11,938,000 12,040,837 113 Subtotal Pooled Investment Portfolio 84,472,598 84,652,944 Mechanics Bank (operating/non-interest earning) 4,451,780 4,451,780 0 TOTAL IN TREASURY 88,924,378 89,104,724

Page 46 of 272 ends

The City’s portfolio averaged an interest rate slightly lower than LAIF by 0.27%. Over this first quarter, the Mechanics Bank interest rate dropped below LAIF due to a slight decrease from

4.52% to 4.26%. LAIF decreased as well from 4.40% to 4.34%. During this quarter, three certificates of deposit (CDs) matured and were replaced with three new CDs. Staff continues to monitor interest rates closely to maximize earnings.

CONCLUSION
Staff recommends that the City Council receive the First Quarter Investment Report (period ending September 30, 2025) for Fiscal Year 2025-26.

ATTACHMENT(S)

1. First Quarter Investment Report for FY 2025-26 (period ending September 30, 2025)

Page 47 of 272 ends

LIQUID INSTRUMENTS

INVESTMENT

OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET W/ INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME ACCRUED INC. RATE DATE MATURITY LAIF LOCAL AGENCY INVESTMENT FUND 40,168,661 40,168,661 40,246,170 438,795 40,684,965 4.34% DAILY 1 POOLED MONEY INVESTMENT ACCOUNT:
40,168,661 40,168,661 40,246,170 438,795 40,684,965
MM MECHANICS BANK - MONEY MARKET 29,641,416 29,641,416 29,641,416 - 29,641,416 4.26% DAILY 1 SWEEP MECHANICS BANK - SWEEP 2,724,521 2,724,521 2,724,521 - 2,724,521 0.01% DAILY 1 MECHANICS BANK - PUBLIC CHECKING 4,451,780 4,451,780 4,451,780 4,451,780 0.00% MONEY MARKET ACCOUNT: 36,817,717 36,817,717 36,817,717 - 36,817,717 SUBTOTAL LIQUID INSTRUMENTS: 76,986,377 76,986,377 77,063,886 438,795 77,502,681

NON-LIQUID INSTRUMENTS

INVESTMENT

OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET W/ INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME ACCRUED INC. RATE DATE MATURITY 30960QAV9 Zions Bank-Farmers Insurance Group 249,000 249,000 249,452 126 249,578 4.60% 1/26/2026 118 90352RDA0 Zions Bank-US Alliance FCU Rye NY 249,000 249,000 250,371 128 250,500 4.70% 5/26/2026 238 39573LEC8 Zions Bank-Greenstate Credit Unions 248,000 248,000 249,727 966 250,693 4.90% 6/1/2026 244 254673Q33 Zions Bank-Discover Bank Greenwood 245,000 245,000 243,963 1,004 244,967 3.35% 8/17/2026 321 22282XAF7 Zions Bank-Covantage Cr Un Antigo WI 247,000 247,000 247,760 1,067 248,828 4.15% 8/24/2026 328 130162AX8 Zions Bank-California Cr Un Glendale 243,000 243,000 246,007 1,122 247,129 5.15% 8/28/2026 332 444425AC6 Zions Bank-Hughes Fed Cr Un Tuscon Az 248,000 248,000 251,066 35 251,101 5.15% 8/31/2026 335 065427BG0 Zions Bank-Bank Utah Ogden Utah 244,000 244,000 245,012 1,809 246,821 4.10% 1/26/2027 483 856285G21 Zions Bank-State Bank of India NY 250,000 250,000 243,402 623 244,025 1.75% 2/9/2027 497 25844MBN7 Zions Bank-Dort Finl Cr Un Grand Blanc 246,000 246,000 250,212 3,042 253,254 5.00% 2/26/2027 514 41138NAB4 Zions Bank-Hapo Comnty Cr Un Richland 248,000 248,000 252,273 985 253,259 5.00% 2/26/2027 514 02589ABQ4 Zions Bank-American Express Natl 247,000 247,000 241,053 284 241,337 2.00% 3/9/2027 525 14042TFJ1 Zions Bank-Capital One 246,000 246,000 242,264 3,094 245,357 2.70% 4/13/2027 560 16863LAG0 Zions Bank-Chief Finl Fed Cred Un 249,000 249,000 249,950 479 250,429 3.90% 7/12/2027 650 19058RAE1 Zions Bank-Coastal1 Cr Un Pawtucket RI 249,000 249,000 251,781 - 251,781 4.15% 1/31/2028 853 05580A4P6 Zions Bank-BMW Bk North Amer Utah 244,000 244,000 252,712 4,419 257,130 4.90% 11/17/2028 1,144 61690D5J3 Zions Bank-Morgan Stanley Bk NA 244,000 244,000 248,325 3,551 251,877 4.25% 5/29/2029 1,337 61776NSR5 Zions Bank-Morgan Stanley Private Bk 244,000 244,000 248,325 3,551 251,877 4.25% 5/29/2029 1,337 8824ITWN6 Zions Bank-Texas Exchange Bk Crowley 249,000 249,000 249,084 205 249,288 3.75% 8/28/2029 1,428 45780PDC6 Zions Bank-Institution for Svgs Newbury 249,000 249,000 248,465 126 248,591 3.70% 8/26/2030 1,791

CERTIFICATES OF DEPOSIT
4,938,000 4,938,000 4,961,204 26,615 4,987,819
3133EP5S0 Zions Bank-Federal Farm Cr Bks 3,000,000 2,988,009 3,039,093 3,561 3,042,654 4.25% 3/20/2028 902 3133EP3B9 Zions Bank-Federal Farm Cr Bks 2,000,000 1,989,780 2,028,821 10,831 2,039,652 4.13% 2/13/2029 1,232

FEDERAL FARM CREDIT
5,000,000 4,977,789 5,067,914 14,392 5,082,307
91282CKA8 Zions Bank-US Treasury Note 2,000,000 1,984,850 2,011,719 10,313 2,022,031 4.13% 2/15/2027 503 U.S. TREASURY NOTES & BONDS
2,000,000 1,984,850 2,011,719 10,313 2,022,031
SUBTOTAL NON-LIQUID INSTRUMENTS: 11,938,000 11,900,639 12,040,837 51,320 12,092,157 88,924,377 88,887,016 89,104,724 490,115 89,594,839
9/30/2025 9/30/2025
498,193 885,414 86.611% 3.936% 108

QUARTERLY

ACCRUED

INTEREST AS
OF

CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE

WEIGHTED

AVERAGE

DAYS TO

MATURITY

WEIGHTED

AVERAGE

RATE OF

EARNINGS
9/30/2025
YTD

RECORDED

INTEREST AS
OF
% OF LIQUID

PORTFOLIO

HOLDINGS
TOTAL LIQUID AND NON-LIQUID INVESTMENTS:

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CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE
9/30/2025

QUARTERLY PERFORMANCE COMPARISON - PORTFOLIO VS LAIF
9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025
Portfolio - weighted average rate of earnings 4.428% 4.303% 4.298% 4.153% 3.936% LAIF - quarterly earnings rate 4.710% 4.620% 4.480% 4.400% 4.340% Portfolio over -(under) LAIF -0.282% -0.317% -0.182% -0.247% -0.404%

PUBLIC AGENCY RETIREMENT SERVICES (PARS) - LEAGALLY RESTRICTED INVESTMENTS EXCLUDED FROM WEIGHTED PORTFOLIO PARS OPEB Public Agency Retirement Services 2,935,313 5.52 DAILY DAILY 1 PARS Pension Trust Public Agency Retirement Services 3,335,907 4.84 DAILY DAILY 1 6,271,220

CHANGES FROM PRIOR QUARTERLY REPORT

MATURED INSTRUMENTS PAR PURCHASE INTEREST PURCHASE MATURITY

CERTIFICATES OF DEPOSIT VALUE PRICE RATE DATE DATE
795451BQ5 ZIONS BANK - Sallie Mae 245,000 245,000 3.400% 7/6/2022 7/7/2025 20825WAZ3 ZIONS BANK - Connexus Cred. Union 249,000 249,000 3.400% 8/15/2022 8/15/2025 27002YFE1 ZIONS BANK - Eaglebank - Bethesda 249,000 249,000 3.300% 8/18/2022 8/18/2025 U.S. OBLIGATIONS
TOTAL MATURED VALUE 743,000

NEW INSTRUMENTS PURCHASE INTEREST PURCHASE MATURITY

CERTIFICATES OF DEPOSIT PRICE RATE DATE DATE
16863LAG0 Zions Bank-Chief Finl Fed Cred Un 249,000 249,000 3.900% 7/16/2025 7/12/2027 8824ITWN6 Zions Bank-Texas Exchange Bk Crowley 249,000 249,000 3.750% 8/28/2025 8/28/2029 45780PDC6 Zions Bank-Institution for Svgs Newbury 249,000 249,000 3.700% 8/26/2025 8/26/2030 U.S. OBLIGATIONS
TOTAL NEW INSTRUMENTS 747,000
Portfolio holdings as of the quarter ended 09/30/2025, are in compliance with the current Investment Policy. With 85.906% of the portfolio held in liquid instruments, allowing the City to meet cash flow needs for at least six months, in compliance with the investment policy approved by the City Council in June 2025. The investment policy will be updated annually as required by state law.

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Prepared By: NLS Dept Review: GK
City Manager Review: _AL__ City Attorney Review: BS__
Staff Report
TO: Honorable Mayor and City Council DATE: November 6, 2025 FROM: Nate Stong, PE, City Engineer
SUBJECT: Authorize a Professional Services Agreement with Pavement Engineering, Inc. for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project

RECOMMENDED ACTION
Authorize the City Manager to execute a Professional Services Agreement with Pavement Engineering, Inc. in the amount of $343,334.00 for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project.

ALTERNATIVES
City Council may direct staff not to approve the proposed contract, suggest modifications to the scope of work, or provide other direction for staff.

FISCAL IMPACT
The recommended professional services agreement with Pavement Engineering, Inc. (PEI) includes a cost proposal in the amount of $343,334.00. This will be covered in the Pavement Management Program Capital Project budget which is a combination of FY 22/23, FY23/24, and FY 24/25 approved budgets.

BACKGROUND/ DISCUSSION
The 2026 Pavement Rehabilitation Project will maintain and improve the condition of the City's roadway infrastructure. This project involves the resurfacing and repair of various streets throughout the city, focusing on extending pavement life, enhancing road safety, and improving the overall quality of our transportation network.

City staff published a Request for Proposals (RFP) on September 16, 2025, inviting qualified firms to submit proposals for pavement evaluation and design services for the project. A total of two firms submitted proposals in response to the RFP. The selection process was based on qualifications, with evaluations focused on each firm's experience, technical qualifications, and project approach. PEI was selected as the top candidate through this evaluation process.

CONCLUSION
Staff recommends the City Council authorize the City Manager to execute a Professional Services Agreement with Pavement Engineering, Inc. in the amount of $343,334.00 for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project.

ATTACHMENT(S)

1. Agreement with Scope of Services and Fee Proposal
AGENDA NO: 6.e
MEETING DATE: November 12, 2025

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01181.0001/813182.1 D-1

AGREEMENT FOR SERVICES

BETWEEN CITY OF MORRO BAY AND
PAVEMENT ENGINEERING, INC.

THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into this 12th day of November, 2025 by and between CITY OF MORRO BAY, a California municipal corporation (“City”) and PAVEMENT ENGINEERING, INC., a California corporation (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Three Hundred Forty-Three Thousand Three Hundred Thirty-Four Dollars ($343,334.00) (“Contract Sum”), unless additional compensation is approved pursuant to Section 1.5. Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. The Contract Sum shall include the attendance of Consultant at all project

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

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

ARTICLE 3. PERFORMANCE SCHEDULE

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

3.2 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, which shall be no later than December 31, 2026.

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

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

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such delay is justified. City’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representative of Consultant. The representative of Consultant is Joseph L. Ririe P.E. (805) 781-2265, [email protected], who is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.

4.2 Contract Officer for City. The Contract Officer for City is Nathan Stong, P.E. (805) 772-6569, [email protected] (or such person as may be designated by the City Manager). The Contract Officer shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.

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

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

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

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independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.

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

ARTICLE 5. INSURANCE AND INDEMNIFICATION

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

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

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insurance, at least as broad as ISO form CA 00 01, written on a per occurrence basis covering bodily injury and property damage in an amount not less than $1,000,000 combined single limit for each accident. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Professional Liability. Professional liability insurance appropriate to Consultant’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of City submit written evidence of this continuous coverage. Limits shall be no less than $1,000,000 per claim and no less than $1,000,000 general aggregate. (e) Cyber Liability. Cyber liability insurance appropriate to Consultant’s profession and the services hereunder, written on a per occurrence basis, with limits not less than $1,000,000 per occurrence/loss, and $2,000,000 in the aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations undertaken by Consultant pursuant to this Agreement and shall include, but not be limited to, claims involving: infringement of intellectual property; copyright; trademark; invasion of privacy violations; data breach; electronic information theft, loss, damage, destruction, alteration or misuse; release of private information; extortion; and, network security. The policy shall provide coverage for breach response costs, regulatory fines and penalties, and credit monitoring expenses, with limits sufficient to respond to these obligations.
(f) Excess Liability Insurance. Excess liability insurance may be used to satisfy the obligations herein. If excess liability insurance is used then the policy shall meet all the requirements herein and be at least as broad as the primary coverages set forth herein. Such policy shall: 1) include a drop down feature requiring the policy to respond if primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; 2) be payable on behalf of wording as opposed to reimbursement; 3) have concurrency of effective dates with primary policies; 4) “follow form” to the underlying primary policies; and, 5) provide insureds, under primary policies required herein, shall be insureds under the excess liability policy. (g) Subcontractors. In the event Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, Consultant shall either: 1) include each subcontractor as insureds under its policies of insurance required herein; or, 2) Consultant shall furnish to City all documentation, required in Article 5 for Consultant, for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.

5.2 General Insurance Requirements.
(a) Proof of Insurance, Enforcement and Notice. No work or services under this Agreement shall commence until both Consultant has provided City with insurance certificates, endorsement forms and appropriate insurance binders evidencing the above insurance

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coverages, as well as said documentation is approved by City. City reserves the right to inspect complete, certified copies of, and endorsements to, all required insurance policies, at any time.

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

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(e) Limitations, Self- Insured Retention and Deductibles. Consultant agrees that requirements of Article 5 shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to any persons or property resulting from Consultant’s activities or the activities of any person or persons for which Consultant is otherwise responsible nor shall it limit Consultant’s indemnification liabilities as provided in Section 5.3. All insurance policies must specify that where the primary insured does not satisfy any self-insured retention, any additional insured may satisfy the self-insured retention.

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

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

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

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precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct.

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

ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION

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

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

6.3 Confidentiality and Release of Information. All information gained or work

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product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant.

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

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

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

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

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

7.2 Suspension, or Termination, Prior to Expiration of Term. This Section shall govern any termination of this Agreement except as specifically provided in Section 7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder, unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2.2, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such as may be approved

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by City, except as provided in Section 7.5. In event of termination, or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.

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

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

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

7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver

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of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

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

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

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

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

ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION

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

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

No officer or employee of City shall have any financial interest, direct or indirect, in this

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Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

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

ARTICLE 9. MISCELLANEOUS PROVISIONS

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

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

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

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

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

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9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

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

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

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

CITY:

CITY OF MORRO BAY, a California municipal
corporation

Andrea Lueker
Interim City Manager
ATTEST:

Dana Swanson, City Clerk
APPROVED AS TO FORM:

Brian J. Stack, City Attorney
CONSULTANT:

PAVEMENT ENGINEERING INC., a California
corporation
By:

Joseph L. Ririe
President, Senior Principal Engineer
By:

Eric J. Wells
Secretary
3485 Sacramento Drive, Suite A
San Luis Obispo, CA 93401
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.)

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

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

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EXHIBIT A

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

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

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EXPERIENCE AND FAMILIARITY WITH THE CITY OF MORRO BAY
The requested work is the kind of work PEI performs on a regular basis for our clients. Because we focus 100% of our design efforts on maintaining and rehabilitating pavements, we have the expertise to assist the City of Morro Bay with this project. We understand the challenges that government agencies have to maximize services and minimize costs. PEI has over 38 years of experience assisting municipalities cost-effectively manage and maintain their pavements. We are comfortable exploring innovative approaches to improve pavements.

PEI is familiar with Morro Bay streets. In 2022, we completed a Hot Spot Repair project and assisted with the pavement restoration associated with the City’s water reclamation project.

Additionally, we updated the City’s Pavement Management Program (PMP) during which we reviewed all of the City’s maintained streets. We also prepared the 2024 paving digout/rehabilitation project.

We have the technical and innovative expertise to successfully assist the City of Morro Bay with this project.

SCOPE OF WORK
Our scope of work includes developing treatment options and preliminary budgets, measuring field quantities, pavement evaluation, preparing plans, specifications and estimates for the 2026 Paving Digout/Rehabilitation Project streets listed in the RFP. The work is broken down into several tasks outlined below.

Task 1 – Project Administration
This work includes a kick-off meeting with City of Morro Bay staff to confirm the project’s scope of work, schedule, budget, and availability of project documents; review project goals; discuss format of deliverables; and clarify the responsibilities of each party for each project.

Progress meetings will be arranged to review the work at critical stages. For this project, we anticipate four (4) meetings, including the kick-off meeting, with City of Morro Bay staff.

Task 2 – Pavement Evaluation
Based on the initial visual review of the proposed project streets, PEI has identified 26 of the 85 street segments, included in the City’s project list, that exhibit 15% or more alligator cracking. These streets have a high likelihood of requiring more aggressive treatments including leveling courses and/or overlays. To assist with the design and conserve the budget, PEI is proposing to only deflection test and core these identified streets to establish the structural adequacy of the pavements and the needed rehabilitation strategy.

The remaining 59 street segments will not be deflection tested.

PEI will perform pavement evaluation services including deflection testing, coring and analysis on the 26 identified candidate streets for rehabilitation that exhibit 15% or more alligator cracking, based on our visual review (see attached list). This type of analysis will eliminate the guesswork and ensure that an optimum rehabilitation approach is identified.

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The field-testing portion of our work consists of deflection testing and coring the pavement to determine the asphalt layer thickness. Deflection tests will be performed at 100-foot maximum intervals along the street segment. Coring will be performed at 500-foot maximum intervals over the street segment. The deflection analysis will be performed in general accordance with CTM 356. The City of Morro Bay will provide the traffic index for the project streets.

To further conserve the design budget, PEI is including an allowance in our fee proposal to perform additional evaluation services that includes coring to measure the full structural section (AC & AB) as well as collect native soil samples to determine the R-value. This allowance will only be used if it is determined that a pavement has a high structural deficiency that cannot be addressed with a simple overlay. These pavements will require additional testing to develop more rehabilitation options that can be considered. The testing on these pavements and which streets need additional evaluation will be reviewed with the City prior to performing the work.

Our work excludes pre-marking the core locations and coordination with Underground Service Alert. Because our cores are confined to the existing AC layer or existing structural section thickness, we do not anticipate encountering any utilities. To protect existing utilities at locations where we need to core deeper than the AC layer, we hand dig our cores through the AB layer and the collection of any native soils.

Traffic control will be provided using a vehicle with mounted warning lights conforming to MUTCD for a Mobile Operation. Modifications to this approach will result in additional fees. Flagging will be provided as needed.

Rehabilitation options to be investigated will include HMA and RHMA overlays, milling and filling, and pulverization and resurfacing. As part of our analysis, we will present any viable maintenance options for streets that are structurally adequate.

For this task, we are proposing that we do not develop a formal report, instead, we will compile our findings in summary sheets for each segment that will be provided to the City.

Going straight from the data and raw analysis to design saves design funds.

Task 3 – Measurement of Field Quantities
PEI will physically walk each of the project streets to measure and record all pertinent field quantities, including the location of existing striping, pavement markers and paint markings; location of underground utility covers; limits of paving transitions, digouts and other pavement repairs. This information will be compiled into the bid schedule.

Task 4 – Monument Survey, Research and Documentation
PEI will be teaming with Wallace Group to perform the needed monument survey, research and documentation for the project. Wallace Group’s work will focus only on those streets that have been identified by PEI to have 15% or more digouts and may require a treatment that would likely make it inaccessible or destroy any existing monuments.

These are the same streets that are being deflection tested as part of Task 2. Wallace Group’s project approach and scope of work is outlined as follows:

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Monument Preservation and Location Perpetuation
The City has provided a list of the streets to be considered for the pavement evaluation and based on this list Pavement Engineering Inc. has indicated a portion of those streets would have a recommend asphalt repair approach that would likely destroy or make inaccessible for a period of time the surveying monuments within the limits of those roads.

As such, the preservation and perpetuation of record survey monuments will be required to comply with State of California Business and Profession Code, Chapter 15, Section 8771.

The roads in question are summarized in Table ‘A’.

For each of these roads, we will review the online GIS County database of record survey maps to determine where record monuments have existed within the impacted portion of roads. Through field investigation we will visit these locations and determine if the monuments shown on the recorded survey maps exist. For the monuments that exist, we will set local reference monuments allowing any survey concurrently taking place with the road repair to determine these monuments’ locations in a facile manner. A preconstruction record of survey will be prepared showing the locations of the existing record monuments, the reference monuments, and noting the record monuments that were not found as part of our field investigation.

At the completion of the paving of the roads, we will verify which monuments were destroyed by construction, and which were not.

For monuments that were destroyed by the road construction activity, we will reset their positions. For monuments at street centerline intersections the process will include, setting one stake at the monument location, and setting four reference nails approximately two feet away in an ‘X’ pattern, so that a monument well box can be built and the contractor can construct and place a stamped brass cap accurately as shown on the City of Morro Bay Standard Monument detail M-1. We will provide the City with pre-stamped brass caps to be used by the contractor. After the contractor has constructed the well boxes and set the brass cap, we will return and indicate the exact point by marking a cross on the brass cap. We will provide the City with a point plot showing the locations of the staked monument wells. For budgeting purposes, we have assumed this staking will be completed in no more than four (4) mobilizations.

For those monuments not located at street centerline intersections and destroyed by construction we will reset a survey monument, typically being a large nail and stamped tag set at the asphalt finished surfaced, or similar.

A post-construction record of survey will be completed summarizing and showing the post construction condition of these monuments.

For budgeting purposes, this effort includes the road locations and lengths summarized in Table ‘A’ and includes the preservation and perpetuation of approximately 85 total monuments.

For budgeting purposes, we have assumed that traffic control to access monuments will not be required or will be provided by the City or during the post-construction staking, by the contractor.

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Furthermore, anything not explicitly included as a deliverable or service is explicitly excluded as a scope of service.

TABLE ‘A’
Primary
Street From To Length
Assumed
Monument
Count
Acacia Street Main Street Shasta
Avenue 720 1
Bella Vista
Drive
Allesandro
Street
Quintana
Street 235 1
Butte Avenue Las Tunas
Street South End 350 1
Cedar
Avenue
Sequoia
Street
San Jacinto
Street 625 1
Clarabelle
Drive
Radcliff
Street
Downing
Street 1,370 4
Coleman
Drive West End Embarcadero Road 2,200 5
Driftwood
Street Main Street Piney Way 1,320
6 Driftwood
Street
Morro
Avenue Main Street 325
Fir Avenue San Joaquin
Street Elena Street 525 2
Island Street Sandalwood
Avenue
Coral
Avenue 350 2
Jamaica
Street Main Street Panorama Drive 880 3
Kodiak Street Panorama
Drive Main Street 880 4
Las Tunas
Street Butte Avenue Kings Avenue 912 0
Luzon Street Panorama
Drive Main Street 885 10
Monterey
Avenue Beach Street Harbor Street 665
6 Monterey
Avenue Harbor Street Morro Bay Blvd 335
Monterey
Avenue Surf Street Beach Street 700
Nassau
Street
Panorama
Drive Tide Avenue 455 8
Nevis Street Panorama
Drive
Nassau
Street 825 3
Panorama
Drive Nevis Street Mindoro Street 420 3
Shasta
Avenue Harbor Street Dunes Street 335 3

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Shasta
Avenue Main Street Acacia Street 755 3
Shasta
Avenue Acacia Street Olive Street 730 3
Sicily Street Panorama
Drive Main Street 1,000 5
The
Embarcadero South End COP @ 910' 910 5
Trinidad
Street
Beachcomber
Drive East End 320 5
Task 5 – Consultant Presentations
Our scope of work includes preparing and making two (2) presentations. One presentation will be to the City Council and the other to the Public Works Advisory Board (PWAB). The same presentation will be given to each group. The presentation will summarize the street selection process. It is anticipated that each presentation will be ten (10) minutes with ten (10) minutes responding to questions.

Task 6 – Plans, Specifications and Estimates
35% Submittal
After the site investigations and analysis outlined in Task 2 through Task 4 are complete, PEI will meet with the City to review the gathered information. As part of the meeting, we will review preliminary cost information for each viable option for the street segment and a life cycle cost analysis (LCCA) to assist the City in selecting the most cost effective and constructible options for the project street.

As part of our meeting, PEI will also discuss any drainage issues that are observed to determine if and, or how to implement the needed improvements.

This meeting will be where critical decisions are made about how far the budget can be stretched. At the conclusion of this meeting, PEI and the City will have a clear understanding about the specific design approach that will be implemented for the project.

This meeting will be considered the 35% submittal.
60% Submittal
PEI will develop project plans similar to previous plan sets prepared for the City of Morro Bay. The plans will convey the design intent and treatments selected during the 35% submittal meeting. We will use aerial images to develop base sheets and provide details for typical sections, transitions, conforms, digouts, and additional pavement work as necessary. PEI will submit any portion of the maintenance work that requires further clarification in the form of drafted plan views, details, elevations, or cross sections. We will also prepare technical specifications that will incorporate the latest asphalt industry guidelines and criteria. PEI will compile all field quantities collected from Task 2 into individual engineer’s estimates by street segment and will provide a summary spreadsheet for the project. This information will be presented at the 60% meeting.

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P age | 26
90% Submittal
After the City has reviewed the 60% submittal, PEI will meet to receive and review the comments. We will use these comments from the City to refine the plans and technical specifications. This information will be submitted to the City as the 90% design review. 100% Submittal
After the City reviews the 90% submittal, we will meet with staff to resolve any final outstanding issues and adjust the contract documents accordingly. A final 100% submittal will follow.

We understand that the City will provide the front-end conditions for this project.

It is anticipated that the existing striping pattern will remain unchanged for these streets.

Any changes in the striping may result in additional costs.

Task 6 – Deliverables
• The 60% and 90% plan submittals will be submitted in PDF format. Technical specifications will be submitted in Word format.
• Final approved drawing submittals will include one PDF copy of all the drawing sheets, technical specifications in Word format and an engineer’s estimate in PDF format.

Task 7 – Bid Support Services
During the bid period, we will be available to answer any specific questions from the City concerning the design. Should the need arise, we will prepare an addendum as required.

In addition, we will also be available to attend a pre-bid meeting, help with questions from the contractors during the bidding process, and reviewing and evaluating bids. All fees for this task will be on a time and materials basis.

Task 8 – Construction Support Services
PEI will respond to technical requests for information during construction when requested by the City. All fees for this task will be on a time and materials basis.

EXCLUDED WORK
Our work excludes performing topographic survey or researching ROW; curb ramp designs, developing traffic control plans; any design work related to CEQA or stormwater retention/detention; electronic locating or potholing of underground utilities; and providing testing or inspection services during construction. Any of these services can be provided for additional fees.

PROPOSED WORK SCHEDULE
The City’s RFP outlines a tentative project start date of November 5, 2025 with a tentative project completion date of March 5, 2026. PEI is comfortable with the proposed schedule and has the resources to commit to the project completion within that time frame. The following outlines our proposed project schedule. A detailed schedule in on the following pages.

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P a ge | 28
Street Name Start End Length (LF) Area (FT) PCI
Acacia Street Main Street Shasta Avenue 720 15,120 52
Bella Vista Drive Allesandro Street Quintana Street 235 7,520 65 Butte Avenue Las Tunas Street South End 350 13,300 65
Cedar Avenue Sequoia Street San Jacinto Street 625 22,500 29 Clarabelle Drive Radcliff Street Downing Street 1,370 45,210 67 Coleman Drive West End Embarcadero Road 2,200 50,600 58 Driftwood Street Main Street Piney Way 1,320 47,520 58
Driftwood Street Morro Avenue Main Street 325 15,600 64 Fir Avenue San Joaquin Street Elena Street 525 18,900 65 Island Street Sandalwood Avenue Coral Avenue 350 7,000 63 Jamaica Street Main Street Panorama Drive 880 21,040 34 Kodiak Street Panorama Drive Main Street 880 19,700 66
Las Tunas Street Butte Avenue Kings Avenue 912 31,920 67 Luzon Street Panorama Drive Main Street 885 20,320 53
Monterey Avenue Beach Street Harbor Street 665 30,590 53 Monterey Avenue Harbor Street Morro Bay Blvd 335 15,410 55 Monterey Avenue Surf Street Beach Street 700 19,600 59
Nassau Street Panorama Drive Tide Avenue 455 10,920 62
Nevis Street Panorama Drive Nassau Street 825 20,625 60 Panorama Drive Nevis Street Mindoro Street 420 5,880 67 Shasta Avenue Harbor Street Dunes Street 335 15,745 46
Shasta Avenue Main Street Acacia Street 755 16,610 49
Shasta Avenue Acacia Street Olive Street 730 21,900 66
Sicily Street Panorama Drive Main Street 1,000 21,000 52 The Embarcadero South End COP @ 910' 910 36,400 53
Trinidad Street Beachcomber Drive East End 320 6,400 56

CITY OF MORRO BAY
2026 PAVING DIGOUT/REHABILITATION PROJECT

CANDIDATE STREET LIST FOR DEFLECTION TESTING
Attached street list

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01181.0001/813182.1 B-1

EXHIBIT B

SPECIAL REQUIREMENTS
(Superseding Agreement Boilerplate)

NOT APPLICABLE

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01181.0001/813182.1 C-1

EXHIBIT C

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

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

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

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City of Morro Bay
2026 Paving Digout/Rehabilitation Project
Design & Engineering Services
The Pavement Engineering Inc & Wallace Group’s fee for the work is based on the referenced RFP and our experience with similar projects performed for clients throughout the State of California.

Our total estimated project fee is broken down as follows:

PROJECT ENGINEERING & DESIGN SERVICES FEE
Task 1 – Project Administration $21,280
Task 2 – Pavement Evaluation (including allowance) $45,435 Task 3 – Measurement of Quantities $41,190
Task 4 – Monument Survey, Research and Documentation $112,179 Task 5 – Consultant Presentations $12,000
Task 6 – Plans, Specifications and Estimates $97,950
Task 7 – Bid Support Services $5,320
Task 8 – Construction Support Services $7,980
Total Estimated Project Fee $343,334
The fees will be invoiced on a time and material basis. All fees and costs associated with this project are subject to final negotiation with the City of Morro Bay.

The following breakdown shows our estimated costs for each portion on the project. The individual fees associated with each task will serve as a guideline for progress payments.

Wallace Group’s fee breakdown and standard survey billing rate schedule is attached for reference.

Fee Proposal

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TASK 1 PROJECT ADMINISTRATION
Position Rate Hours Total
Senior Principal Engineer $270.00 32 $8,640.00
Project Manager $230.00 32 $7,360.00
Senior Project Manager $165.00 32 $5,280.00
$21,280.00
TASK 2
Lump Sum $33,435.00
Additional Evaluation (Allowance) $12,000.00
$45,435.00
TASK 3
Project Manager $230.00 12 $2,760.00
Senior Engineering Technician $165.00 122 $20,130.00
Engineering Technician $150.00 122 $18,300.00
$41,190.00
TASK 4
Senior Principal Engineer $270.00 35 $9,450.00
Project Manager $230.00 35 $8,050.00
Wallace Group $94,679.00
$112,179.00
TASK 5
Senior Principal Engineer $270.00 24 $6,480.00
Project Manager $230.00 24 $5,520.00
$12,000.00
TASK 6
Senior Principal Engineer $270.00 47 $12,690.00
Project Manager $230.00 84 $19,320.00
Senior Engineering Technician $165.00 196 $32,340.00
Engineering Technician $150.00 224 $33,600.00
$97,950.00
TASK 7 BID SUPPORT SERVICES
Senior Principal Engineer $270.00 8 $2,160.00
Project Manager $230.00 8 $1,840.00
Senior Engineering Technician $165.00 8 $1,320.00
$5,320.00
TASK 8
Senior Principal Engineer $270.00 12 $3,240.00
Project Manager $230.00 12 $2,760.00
Senior Engineering Technician $165.00 12 $1,980.00
$7,980.00

PAVEMENT ENGINEEERING INC & WALLACE GROUP

MONUMENT SURVEY, RESEARCH AND DOCUMENTATION
Est. Total:

Est. Total:

MEASUREMENT OF FIELD QUANTITIES

ESTIMATED FEE BREAKDOWN SCHEDULE
2026 PAVING DIGOUT / REHABILIATION PROJECT

PAVEMENT EVALUATION

CITY OF MORRO BAY
Est. Total:

Est. Total:

CONSULTANT PRESENTATIONS
Est. Total:

Est. Total:

Total Estimated Project Fee:

PLANS, SPECIFICATIONS and ESTIMATES
35%, 60%, 90% and Final PS&E Submittals
$343,334.00
Est. Total:

CONSTRUCTION SUPPORT SERVICES

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Pavement Engineering Inc.
2025 PROFESSIONAL FEE SCHEDULE
Engineering Services
Senior Principal Engineer............................................................................................$270/hr Principal Engineer.......................................................................................................$240/hr Senior Associate Engineer ..........................................................................................$230/hr Associate Engineer .....................................................................................................$210/hr Assistant Engineer ......................................................................................................$185/hr Technical Services
Project Manager..........................................................................................................$230/hr Construction/Laboratory Manager ...............................................................................$190/hr Senior Engineering Technician....................................................................................$165/hr Engineering Technician...............................................................................................$150/hr Inspector*....................................................................................................................$155/hr Laboratory Technician.................................................................................................$130/hr Clerical........................................................................................................................$ 85/hr Field Services
PW Deflection Testing**..............................................................................................$585/hr PW Coring**................................................................................................................$470/hr PW Deflection Testing/Coring Travel* .........................................................................$390/hr PW Traffic Control.......................................................................................................$325/hr PW Traffic Control Travel*...........................................................................................$275/hr *Two (2) hour minimum **Four (4) hour minimum
Basis of Charges
Miscellaneous Charges
Equipment rental, reproductions, testing (other than
by PEI), photographic expenses and other outside services:................................ Cost + 15% Payments
Invoices will be submitted either semi-monthly or monthly and are payable upon receipt.

Interest of 1-1/2% per month (but not exceeding the maximum rate allowable by law) will be payable on any amounts not paid within 30 days, payment thereafter to be applied first to accrued interest and then to the principal unpaid amount. Attorneys' fees or other costs incurred in collecting any delinquent amount shall be paid by the client.

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Wallace Group Team Resource Estimate for the
Monument Perpetuation for the City of Morro Bay Pavement Evaluation and PS&E for 2026 Paving Project BUDGET SUMMARY

PRINCIPAL

DIRECTOR

SURVEY TECHNICIAN III

LAND SURVEYOR II

SENIOR LAND SURVEYOR III
PARTY CHIEF*
INSTRUMENT PERSON*

PROJECT ASSISTANT III
BRASS CAPS (50 COUNT)
Misc. Direct Costs

TOTAL LABOR HOURS TOTAL

TASK DESCRIPTION HRS HRS HRS HRS HRS HRS HRS HRS COST COST HRS LABOR COST RATE $280 $228 $155 $180 $208 $250 $150 $145 $ $
1 Pre-construction Monument Preservation 32 48 32 16 80 80 2 290 $56,114 $56,1142 Post-Construction Monument Preservation 24 24 16 16 50 50 2 $2,500 182 $35,690 $38,190 56 72 48 32 130 130 4 472 $91,804 $94,304
$12,768 $11,160 $8,640 $6,656 $32,500 $19,500 $580 $91,804 $2,500.00 $2,500
15% $375
$94,679
DIRECT COSTS OVERHEAD @
TOTAL
PHASE/TASK No.

SUB-TOTALS

WALLACE GROUP LABOR COSTS

WALLACE GROUP DIRECT COSTS

SUBCONSULTANT DIRECT COSTS

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Exhibit A
Standard Billing Rates
Surveying Services:

Party Chief ............................................................... $190 Party Chief (*Prevailing Wage) ........................................ $250 Instrument Person ...................................................... $133 Instrument Person (*Prevailing Wage) ............................... $150 Associate Survey Technician .......................................... $125 Survey Technician I – IV ................................................ $140/$145/$155/$160 Land Surveyor I – III ..................................................... $170/$180/$190 Senior Land Surveyor I - III ............................................. $198/$203/$208 Director .................................................................. $228 Principal Surveyor ...................................................... $255 Principal .................................................................. $280 Support Services:

Office Assistant ......................................................... $120 Project Assistant I – III .................................................. $130/$135/$145 *Prevailing Wage:

State established prevailing wage rates will apply to some services based on state law, prevailing wage rates are subject to change over time and geographic location.

Right to Revisions:

Wallace Group reserves the right to revise our standard billing rates on an annual basis, personnel classifications may be added as necessary.

Additional Professional Services:

Fees for expert witness preparation, testimony, court appearances, or depositions will be billed at the rate of $400 an hour. If required to meet schedule requests, overtime on a project will be billed at 1.5 times the employee’s typical hourly rate.

Direct Expenses:

Direct expenses will be invoiced to the client and a handling charge of 15% may be added.

Sample direct expenses include, but are not limited to the following:
• travel expenses • sub-consultant services • agency fees • delivery/copy services • mileage (per IRS rates) • other direct expenses Invoicing and Interest Charges:

Invoices are submitted monthly on an accrued cost basis. A finance charge of 1.5% per month may be assessed on all balances that are thirty days past due.

WALLACE GROUP 1
2025 Standard Billing Rates

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01181.0001/813182.1 D-1

EXHIBIT D

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

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ID Task
Mode
Task Name Duration Start Finish Predecessors
0 MorroBay_Project_Schedules 87 days Wed 11/5/25 Thu 3/5/26 1 Project Administration 87 days Wed 11/5/25 Thu 3/5/262 Pavement Analysis & Preliminary Engineering 30 days Wed 11/5/25 Tue 12/16/253 Pavement Evaluation 20 days Wed 11/5/25 Tue 12/2/254 Field Measurements 30 days Wed 11/5/25 Tue 12/16/255 Monuments Perpetuation 30 days Wed 11/5/25 Tue 12/16/256 Meetings & Coordinations 87 days Wed 11/5/25 Thu 3/5/267 Utility Company / Internal Coordinations 87 days Wed 11/5/25 Thu 3/5/268 Bi-weekly Project Meetings 87 days Wed 11/5/25 Thu 3/5/269 Prepare Plans, Specifications, & Estimates 87 days Wed 11/5/25 Thu 3/5/26 10 Prepare 35% Submittal 28 days Wed 11/5/25 Fri 12/12/2511 35% Milestone 0 days Fri 12/12/25 Fri 12/12/25 10FS-1 day12 35% City Review (1 Weeks) 5 days Mon 12/15/25 Fri 12/19/25 1013 Prepare 60% Submittal 25 days Mon 12/22/25 Fri 1/23/26 1214 60% Milestone 0 days Fri 1/23/26 Fri 1/23/26 13FS-1 day15 60% City Review (1 Weeks) 5 days Mon 1/26/26 Fri 1/30/26 1316 Prepare 90% Submittal 15 days Mon 2/2/26 Fri 2/20/26 15,1217 90% Milestone 0 days Fri 2/20/26 Fri 2/20/26 16FS-1 day18 90% City Review (1 Weeks) 5 days Mon 2/23/26 Fri 2/27/26 1619 Prepare 100% Submittal 4 days Mon 3/2/26 Thu 3/5/26 1820 100% Milestone 0 days Thu 3/5/26 Thu 3/5/26 19FS-1 day 12/12
1/23
2/20
3/5

N D J F M
2026
TaskSplitMilestoneSummary
Project SummaryInactive TaskInactive MilestoneInactive Summary Manual TaskDuration-onlyManual Summary RollupManual Summary Start-onlyFinish-onlyExternal TasksExternal Milestone
DeadlineProgressManual Progress

CITY OF MORRO BAY
2026 PAVING DIGOUT / REHABILITATION PROJECT
MP25-622 Page 1 of Page 1

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Prepared By: ___DH_____ Dept Review: __GK__
City Manager Review: __AL__ City Attorney Review: _BS__ Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2025 FROM: Greg Kwolek – Public Works Director
SUBJECT: Adopt Resolution Nos. 55-25 and 56-25 for Grant Applications for Potential Rancho Colina Utilities Consolidation

RECOMMENDED ACTION
Adopt Resolution Nos. 55-25 and 56-25 for the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) Grant Applications for the Rancho Colina Consolidation Evaluation Projects. These resolutions only modify previously approved City Council Resolution Nos. 51-23 and 52-23.

ALTERNATIVE
The City Council can also not approve the resolutions and provide other direction to staff.

BACKGROUND/DISCUSSION
The Rancho Colina Mobile Home Community is a Disadvantaged Community located on Highway 41, approximately a 1/2 mile east of the existing City jurisdictional limits. The community currently has its own water and wastewater systems for 69 Mobile Homes and 57 Recreational Vehicle (RV) camping sites.

Rancho Colina has received several wastewater violations notices from the State due to its failing infrastructure. To bring the wastewater system into compliance with their new General Permit for wastewater treatment, the Rancho Colina Wastewater Treatment Facility requires significant and expensive upgrades and repairs. The State has advised Rancho Colina of an alternative to consolidate its system with the City of Morro Bay’s wastewater system. Of note, the State offers financial incentives to larger wastewater systems who allow smaller systems to consolidate. These incentives take the form of grants to complete other necessary upgrades in the larger system that enable consolidation. For example, staff’s preliminary analysis indicates that to connect Rancho Colina, the City would likely need to complete upgrades to our wastewater system to accommodate the additional sewer flows. The cost of this upgrade could be offset by the financial incentives offered by the State for consolidation with Rancho Colina.

Additionally, the Rancho Colina water system has received several drinking water violations and experienced water supply outages. Rancho Colina’s groundwater wells have elevated nitrate concentrations and have nearly run dry during recent droughts, forcing Rancho Colina to truck in water from other wells in the Morro Basin. The State also offers financial incentives for larger water systems to consolidate in small systems. Staff’s preliminary analysis indicates that to connect City AGENDA NO: 6.f

MEETING DATE: November 12, 2025

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water service Rancho Colina, the City would likely need to complete upgrades within the existing water system. As with the wastewater example, the cost of this water system upgrade could be offset by financial incentives.

In 2022, the Regional Water Quality Control Board (RWQCB) contacted the City regarding the potential for Rancho Colina to connect to the City’s water and wastewater utilities. Since Rancho Colina is classified as a Disadvantaged Community, there could be up to ~$11M in grant funding available from the CWSRF and DWSRF programs to pay for infrastructure upgrades to the City’s water and wastewater systems and pipelines to connect Rancho Colina. Based on a very preliminary estimate of planning and construction costs for the Rancho Colina Consolidation Evaluation Project, it is estimated that the City could be able to utilize between $2 – 5M of the ~$11M available to fund upgrades to its water and wastewater systems. These estimates would be further defined during the planning/design phase and the estimates of incentive funding would be updated prior to the City committing to applying for construction funding to complete the project.

Below is a timeline of project progress thus far as well as next steps:
 9/13/22 - Council authorization for cost share agreement with Rancho Colina Mutal Water Company to prepare planning grant applications.
 8/8/23 - Council Resolutions 51-23 and 52-23 in support of these applications.  4/23/24 - City planning grant applications submitted
 9/20/25 – City notified that application is accepted and on the “funded list” with request for revised City Council resolutions.
 11/12/25 – City Council revises resolutions. (now)
 Mid 2026 – City enters into a grant agreement with State.  Mid 2026 – City begins evaluation to assess feasibility of project.  Future – City begins/completes project design (tentative).  Future – City begins/completes construction (tentative).

At any point in the process, the City can opt to withdraw from this project.

MODIFIED AUTHORIZING RESOLUTIONS
The State has requested slight language modifications to Council Resolution Nos. 51-23 and 52-23.

First, the State requested the removal of language referring to CWSRF in the DWSRF application and vice versa, in order to have two entirely separate authorizing resolutions. Second, the State requested language changes to specifically reference the name of the project (rather than a general description) and to match the project name to the general application forms. While making these modifications, staff reviewed the resolutions and recommends additional changes to broaden language in the resolutions as to how any incentive monies would be used by the City. This change would make the State funding to the City more flexible. All changes have been made and are contained within the attached resolutions for City Council consideration.

Staff recommends City Council adopt Resolution Nos. 55-25 and 56-25 for the CWSRF and DWSRF Grant Applications for the Rancho Colina Consolidation Evaluation Projects.

ATTACHMENTS

1. Resolution No. 55-25 (CWSRF)

2. Resolution No. 56-25 (DWSRF)

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RESOLUTION NO. 55-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO APPLY FOR STATE

REVOLVING FUND FINANCIAL ASSISTANCE, AND AUTHORIZING THE

EXECUTION OF SUCH AGREEMENT, AND ANY OTHER ACTION

REQUIRED, FOR PURPOSES OF THE CLEAN WATER STATE

REVOLVING FUND GRANT

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on September 13, 2022, the City of Morro Bay (the "City") City Council authorized the City Manager to execute a Cost Share Agreement with Rancho Colina Mutual Water Company (Rancho Colina) to fund the preparation of Clean Water State Revolving Fund Planning Grant application for the Rancho Colina Consolidation Evaluation Project; and WHEREAS, if awarded, then the Planning Grants will provide the funding necessary to complete the wastewater utility consolidation feasibility evaluation, design of Rancho Colina wastewater connections, and necessary upgrades to City wastewater infrastructure (via OneWater projects) and application for the Clean Water State Revolving Fund (CWSRF) Construction Grant; and
WHEREAS, Rancho Colina is located on Highway 41, approximately a 1/2 mile east of the existing City jurisdictional limits and provides water, wastewater, and other services for approximately 69 Mobile Homes and 57 Recreational Vehicle (RV) camping sites; and WHEREAS, Rancho Colina's Wastewater Treatment Facility is in need of significant upgrades and repairs to meet the requirements of the new General Permit for wastewater treatment facilities discharging <100,000 gallons per day; and WHEREAS, the Regional Water Quality Control Board (RWQCB) has contacted the City regarding the potential for Rancho Colina to connect to the City's wastewater utilities. Due to the fact Rancho Colina provides wastewater services to the Rancho Colina Mobile home community, which is classified as a Disadvantaged Community, there is significant grant funding available in the CWSRF (up to $10M) programs to pay for infrastructure upgrades to the City's wastewater systems to accommodate increased flows from Rancho Colina in addition to connections to Rancho Colina; and
WHEREAS, connecting Rancho Colina to the City's wastewater system may allow the City to access CWSRF funding to reduce the costs to the City's rate payers for funding other necessary City projects; and
WHEREAS, this authorizing resolution makes minor updates to the previous Authorizing Resolution 51-23, adopted on the 8th day of August 2023.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY, AS FOLLOWS:

SECTION 1. The City Manager (the "Authorized Representative") or designee is hereby authorized and directed to sign and file, for and on behalf of the City, a Financial Assistance Application for a grant agreement from the State Water Resources Control Board for the Rancho Colina Consolidation Evaluation Project (the "Project").

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SECTION 2. This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a Financial Assistance Agreement from the State Water Resources Control Board and any amendments or changes thereto.

SECTION 3. The Authorized Representative, or his/her designee, is designated to represent the City in carrying out the City's responsibilities under the financing agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12
th day of November 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

ATTEST:
______________________
Dana Swanson, City Clerk
______________________
Carla Wixom, Mayor

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RESOLUTION NO. 56-25

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO APPLY FOR STATEREVOLVING FUND

FINANCIAL ASSISTANCE, AND AUTHORIZING THE EXECUTION OF SUCH

AGREEMENT, AND ANY OTHER ACTION REQUIRED, FOR PURPOSES OF THE

DRINKING WATER STATE REVOLVING FUND GRANT

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on September 13, 2022, the City of Morro Bay (the "City") City Council authorized the City Manager to execute a Cost Share Agreement with Rancho Colina Mutual Water Company (Rancho Colina) to fund the preparation of Drinking Water State Revolving Fund Planning Grant application for the Rancho Colina Consolidation Evaluation Project; and WHEREAS, if awarded, then the Planning Grants will provide the funding necessary to complete the water utility consolidation feasibility evaluation, design of Rancho Colina water connections and necessary upgrades to City water infrastructure (via OneWater projects) and application for the Drinking Water State Revolving Fund (DWSRF) Construction Grant; and WHEREAS, Rancho Colina is located on Highway 41, approximately a 1/2 mile east of the existing City jurisdictional limits and provides water, wastewater, and other services for approximately 69 Mobile Homes and 57 Recreational Vehicle (RV) camping sites; and WHEREAS, Rancho Colina’s groundwater wells have elevated concentrations of Nitrates and have nearly run dry during recent droughts, forcing Rancho Colina to truck in water from other wells in the Morro Basin; and
WHEREAS, the Regional Water Quality Control Board (RWQCB) has contacted the City regarding the potential for Rancho Colina to connect to the City’s water utilities. Due to the fact Rancho Colina provides water services to the Rancho Colina Mobile home community, which is classified as a Disadvantaged Community, there is significant grant funding available in the DWSRF (up to $6M) programs to pay for infrastructure upgrades to the City’s water systems to accommodate increased demand from Rancho Colina in addition to connections to Rancho Colina; and
WHEREAS, connecting Rancho Colina to the City’s water system may allow the City to access DWSRF funding to reduce the costs to the City’s rate payers for funding other necessary City Projects; and
WHEREAS, this authorizing resolution makes minor updates to the previous Authorizing Resolution 52-23, adopted on the 8th day of August 2023.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY, AS FOLLOWS:

SECTION 1. The City Manager (the "Authorized Representative") or designee is hereby authorized and directed to sign and file, for and on behalf of the City, a Financial Assistance Application for a grant agreement from the State Water Resources Control Board for the Rancho Colinda Consolidation Evaluation Project (the "Project").

SECTION 2. This Authorized Representative, or his/her designee, is designated to

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provide the assurances, certifications, and commitments required for the financial assistance application, including executing a Financial Assistance Agreement from the State Water Resources Control Board and any amendments or changes thereto.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12
th day of November 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

ATTEST:
___________________________
Dana Swanson, City Clerk
___________________________
Carla Wixom, Mayor

Page 88 of 272 ends

Prepared By: _AMS_________Dept Review: ________
City Manager Review: _AL_ City Attorney Review: __BS___ Staff Report
TO: Honorable Mayor and City Council DATE: November 5, 2025 FROM: Airlin M. Singewald, Community Development Director SUBJECT: Ordinance No. 673, repealing and reenacting multiple chapters of Title 14 (Buildings and Construction) of the MBMC to incorporate the 2025 California Building Standards Code, including the 2025 Wildland-Urban Interface Code and related local amendments, including the addition of spark arrestors on outdoor fire pits and the prohibition of fireworks

RECOMMENDED ACTION
Adopt Ordinance No. 673: “An Ordinance of the City Council of the City of Morro Bay, California, repealing, amending and reenacting Chapters 14.01 – 14.12 of Title 14 (Buildings and Construction) of the Morro Bay Municipal Code, thereby adopting by reference and amending the 2025 California Building Code (Volumes 1 and 2), Residential, Electrical, Mechanical, Plumbing, Energy, Historical Building, Fire, Existing Building, Green Building, Administrative, and Reference Standards Codes, the 2021 International Property Maintenance Code, the 1997 Uniform Code for the Abatement of Dangerous Building Code, and the 2025 Wildland-Urban Interface Code.”

ALTERNATIVES
Staff does not recommend any alternatives to adopting Ordinance No. 673 for the Building Code Update.

FISCAL IMPACT
None. The ordinance does not modify any of the City of Morro Bay adopted permit or impact fees.

BACKGROUND/DISCUSSION
At the October 28, 2025 Regular Meeting, Council was presented a report and proposed Ordinance No. 673 entitled “An Ordinance of the City Council of the City of Morro Bay, California, repealing, amending and reenacting Chapters 14.01 – 14.12 of Title 14 (Buildings and Construction) of the Morro Bay Municipal Code, thereby adopting by reference and amending the 2025 California Building Code (Volumes 1 and 2), Residential, Electrical, Mechanical, Plumbing, Energy, Historical Building, Fire, Existing Building, Green Building, Administrative, and Reference Standards Codes, the 2021 International Property Maintenance Code, the 1997 Uniform Code for the Abatement of Dangerous Building Code, and the 2025 Wildland-Urban Interface Code.” A link to the October 28th staff report and attachment can be found here. The staff presentation can be found here.

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

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PUBLIC HEARING NOTICE
Notice of the public hearing on this item was published in the New Times on November 6, 2025.

CONCLUSION
Staff recommends the City Council adopt Ordinance No. 673, which repeals and reenacts multiple chapters of Title 14 (Buildings and Construction) of the Morro Bay Municipal Code to incorporate the 2025 California Building Standards Code — including the 2025 Wildland-Urban Interface (WUI) Code — along with related local amendments. If adopted, the Ordinance and new Morro Bay Building Codes will become effective January 1, 2026.

ATTACHMENTS

1. Ordinance 673, “Red-lined” changes to Chapters 14.01 - 14.12 of Title 14 (Buildings and Construction)

2. Ordinance 673, “Clean” version of Chapters 14.01 – 14.12 of Title 14 (Buildings and Construction)

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Ordinance No. 673

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ORDINANCE NO. 673

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, REPEALING, AMENDING AND REENACTING CHAPTERS 14.01-

14.12 OF TITLE 14 (BUILDINGS AND CONSTRUCTION) OF THE MORRO BAY

MUNICIPAL CODE, THEREBY ADOPTING BY REFERENCE AND AMENDING THE 2025 CALIFORNIA BUILDING (VOLUMES 1 AND 2), RESIDENTIAL, ELECTRICAL,

MECHANICAL, PLUMBING, ENERGY, HISTORICAL BUILDING, FIRE, EXISTING

BUILDING, GREEN BUILDING, ADMINISTRATIVE, AND REFERENCE STANDARDS CODES, THE 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE, THE 1997 UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, AND THE 2025 WILDLAND-URBAN INTERFACE CODE

THE CITY COUNCIL

CITY OF MORRO BAY, CALIFORNIA
WHEREAS, there are certain state and model codes relating to buildings, construction, fire and life safety as follows:

A. 2025 California Building Code (volumes 1 and 2)
B. 2025 California Residential Code
C. 2025 California Electrical Code
D. 2025 California Mechanical Code
E. 2025 California Plumbing Code
F. 2025 California Energy Code
G. 2025 California Historical Building Code
H. 2025 California Fire Code
I. 2025 California Existing Building Code
J. 2025 California Green Building Standards Code
K. 2025 California Administrative Code
L. 2025 California Referenced Standards Code
M. 2024 International Property Maintenance Code
N. 1997 Uniform Code for the Abatement of Dangerous Buildings O. 2025 Wildland-Urban Interface Code
WHEREAS, Government Code § 50022.1, et seq. and Health and Safety Code § 17922 authorize the City to adopt by reference the California Building Standards Code as provided in Titles 24 and 25 of the California Code of Regulations and other codes, including, without limitation, the 2024 International Property Maintenance Code, the 1997 Uniform Code for the Abatement of Dangerous Buildings, and the 2025 Wildland-Urban Interface Code; and WHEREAS, pursuant to Health and Safety Code § 17950 and 18938(b), the California Building Standards Code is applicable to all occupancies throughout the State of California, whether or not the City takes affirmative action to adopt the California Building Standards Code;

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and
WHEREAS, Health and Safety Code § 17960, requires a local building department to enforce State Housing Law, the California Building Standards Code, and the implementing regulations of the Department of Housing and Community Development for residential structures; and
WHEREAS, Health and Safety Code § 17958.5 allows the City to make those changes or modifications to the requirements contained in the provisions published in the California Building Standards Code as it determines, pursuant to the provisions of Health and Safety Code § 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, pursuant to the immediately foregoing Health and Safety Code sections and Health and Safety Code § 18941.5, certain express findings have been made and are as follows:

FINDINGS

1. The topographic, underlying geologic and surface soil conditions of the hillsides of the City of Morro Bay are of a gradient and composition such that movement has historically been known to occur. Soils testing has revealed the presence of potentially hazardous geologic conditions, including expansive soils, questionable soils, soils prone to liquefaction and seasonally high groundwater. Therefore, it is reasonably necessary to adopt regulations for grading operations that are more detailed and restrictive than those adopted by the State of California and codified in the California Building Standards Code.

2. Due to topographic and geologic conditions, development in Morro Bay has historically been constrained such that building occurred predominantly in the flatter areas, a scarcity of which resulted in the creation of small lots and the construction of structures in relatively close proximity to one-another. Those conditions are known to be conducive to the spread of fire and, therefore, it is reasonably necessary to adopt standards more restrictive than those adopted by the State of California and codified in the California Building Standards Code and California Fire Code for the installation of automatic fire sprinklers on new and existing buildings, limiting the use of wood shakes or shingles, and to otherwise establish construction and fire prevention regulations more restrictive than those adopted by the State of California and codified in the California Building Standards Code to reduce and minimize the potential for loss of and damage to life and property resulting from fire, hazardous materials, explosions and to protect firefighters and emergency personnel during emergency operations. More particularly, this finding supports the modification of California Building Code, California Fire Code, California Residential Code and California Electrical Code.

3. Due to topographic conditions and in order to protect the estuarine environment of and adjacent to the City of Morro Bay, it is reasonably necessary to adopt regulations more restrictive than those adopted by the State of California and codified in the California

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Building Standards Code, creating more stringent thresholds for when a building permit is required for construction of sidewalks, driveways, decks, paving, or flatwork, prohibiting the construction of private sewage disposal systems and requiring the installation of sewer backwater valves. More particularly, this finding supports the modification of California Building Code Section 105.2, California Plumbing Code section 713.0, and the addition of Plumbing Code section 709.5.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA FINDS AND ORDAINS AS FOLLOWS:

SECTION 1. The City Council hereby declares and adopts the foregoing recitals and findings as true and correct and they are incorporated herein.

SECTION 2. The City Council has considered the changes that are proposed with respect to the matter described above. The City Council has, as a result of its consideration, the evidence presented at the hearings on said matter, and all comments that were received during the public hearing process, determined that this activity is exempt from review pursuant to Section 15061(b)(3) which provides that an activity is not subject to CEQA review where it can be seen with certainty that there is no possibility that it may have a “significant effect on the environment.” The City Council finds that it can be seen with certainty that there is no possibility that the adoption and amendment of the 2025 State Building Code may have a significant effect on the environment because there is no substantial evidence that the adoption of this ordinance will have a significant effect on the environment. The City Council hereby approves this adoption and amendment of the 2025 Building Code in accordance with the California Environmental Quality Act.

SECTION 2. Effective January 1, 2026, Chapters 14.01-14.12 of the Morro Bay Municipal Code are hereby repealed and reenacted to read as follows (with redline changes below to show amendments made):

Chapter 14.01

GENERAL
Sections:

14.01.010 Title and Purpose.

14.01.020 Adoption of Codes.

14.01.030 Building Official and Fire Chief Designated.

14.01.010 - Title and Purpose.

This title shall be known and may be cited as "The Buildings and Construction Ordinance of the City of Morro Bay," Title 14 of the Morro Bay Municipal Code (MBMC). These regulations are hereby established and adopted to protect and promote public health, safety and welfare. This title establishes minimum regulations for construction, fire prevention, and the use and

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occupancy of buildings and other structures. This title prescribes regulations and standards that are consistent with the State Housing Law of California.

14.01.020 - Adoption of Codes.

Fourteen Fifteen documents, one each of which are on file in the office of the Building Official, identified by the seal of the City of Morro Bay, marked and designated as the:

A. 2022 2025 California Building Code (volumes 1 and 2), B. 20222025 California Residential Code,
C. 2022 2025 California Electrical Code,
D. 2022 2025 California Mechanical Code,
E. 2022 2025 California Plumbing Code
F. 2022 2025 California Energy Code
G. 2022 2025 California Historical Building Code,
H. 2022 2025 California Fire Code,
I. 2022 2025 California Existing Building Code,
J. 2022 2025 California Green Building Standards Code,
K. 2022 2025 California Administrative Code,
L. 2022 2025 California Referenced Standards Code,
M. 2021 2024 International Property Maintenance Code,
N. 1997 Uniform Code for the Abatement of Dangerous Buildings, published by the International Conference of Building Officials, and
N.O. 2025 Wildland-Urban Interface Code
are hereby adopted, including chapters and sections not otherwise adopted by agencies of the State of California, and the appendices thereto as the buildings, construction, and fire prevention regulations of the City of Morro Bay. The provisions of the above-mentioned are hereby referred to, adopted, and made a part hereof as if fully set out in this title except as modified hereinafter.

14.01.030 - Building Official and Fire Chief Designated.

The City’s community development director is hereby designated as the building official and building code official for the City of Morro Bay. The fire chief is hereby designated as the Fire Code Official for the City of Morro Bay. Where the “authority having jurisdiction” is used in the adopted codes, it shall mean the building official or the fire chief, as applicable.

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Chapter 14.02

ADMINISTRATION AND ENFORCEMENT
Sections:

14.02.010 Administration and Enforcement.

14.02.020 Modification of Division II of Chapter 1 of the California Building Code.

14.02.010 - Administration and Enforcement.

The administration and enforcement of this title shall be in accordance with Division II of Chapter 1 of the California Building Code as adopted, modified, amended, and supplemented herein.

14.02.020 - Modifications of Division II of Chapter 1 of the California Building Code.

The California Building Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

A. Amend Section 103.1 to read as follows:
103.1 Creation of Enforcement Agency. The Building Division of the Community Development Department of the City of Morro Bay is hereby created and the official in charge thereof shall be known as the Building Official. Where reference is made to the Authority Having Jurisdiction or Code Official in the adopted Codes, it shall mean the Building Official.

B. Add Section 104.8.2 to read as follows:
104.8.1 Liability or Responsibility due to Error or Omission. This title shall not be construed so as to impose upon the City, or upon any of its officials or employees, any liability or responsibility for injury or damage resulting from any work approved or performed with respect to this title, or by reason of any inspection performed hereunder. No person shall be relieved of the responsibility of compliance with this title because of an error or omission made by a city official or employee.

C. Add Section 104.9.2 to read as follows:
104.9.2 Cargo Containers, Rail Cars, and Vehicle Bodies. Any person who intends to bring into the City or otherwise use, alter or relocate within the City any cargo container, streetcar, boxcar, refrigerator car, motorbus body or similar vehicle body for the purpose of use or occupancy, shall first make application to the Building Official and obtain the required permit. The application shall demonstrate the proposed use, occupancy, structure, construction, and alteration will conform to the provisions of this title.

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D. Amend Section 109.2 to read as follows:
109.2 Schedule of permit fees. Permit fees shall be as prescribed in the City’s Master Fee Schedule.

E. Amend Section 113 to read as follows:

SECTION 113

BOARD OF APPEALS
113.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the Building Official relative to the application and interpretation of the technical provisions this code, there shall be and is hereby created a board of appeals. The board of appeals shall be appointed by the City Council and hold office at its pleasure. The Building Official shall be an ex officio member and shall act as secretary to the board but shall have no vote upon any matter before the board. The board shall adopt rules of procedure for conducting its business.

The board of appeals shall also serve as the Local Appeals Board, Housing Appeals Board, and Accessibility Appeals Board, as defined in Health and Safety Code § 17920.5, 17920.6 and 19957.5.
113.2 Limitations on authority. An application for appeal shall be based on a claim the true intent of this code or the rules legally adopted thereunder have been incorrectly interpreted, the provisions of this code do not fully apply, or an equally good or better form of construction is proposed. The board shall have no authority to waive requirements of this code, nor shall the board have any authority relative to the administration of this code.
113.3 Qualifications. The board of appeals shall consist of five members who are qualified by experience and training to pass on matters pertaining to the appeal and are not employees of the City. Two members of the board of appeals shall be physically handicapped, two members shall be persons experienced in construction, and one member shall be a public member.
113.4 Appointment. Upon receipt by the Building Official, of a qualified application for appeal, the Building Official shall within 60 days, recommend to the City Council five persons who, based on their qualifications and experience, appear to be suited to hear and decide the appeal. Upon finding those individuals indeed appear to be qualified to hear and deciding the appeal, the City Council shall appoint those persons and they shall be known as the Board of Appeals and shall have the authority and be tasked with the duties thereof for the purposes of hearing and deciding that specific appeal.

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F. Amend Section 114.4 to read as follows:
114.4 Violation Penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, extends, repairs, moves, removes, demolishes or occupies any building, structure, or equipment in violation of the approved construction documents, a directive of the Building Official, or of a permit or certificate issued under the provisions of this Code, shall be subject to fines and penalties as established in Title 1 of the MBMC, in addition to other penalties as prescribed by law.

Chapter 14.03

BUILDING CODE

14.03.010 - Modifications of the California Building Code.

The California Building Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

A. Adopt appendices H, I and J. Delete appendices A, B, C, D, E, F, G, K, L, M, N, O and P.

B. Amend section 1808.1 (Foundations) and adopt section 1808.1.1 which shall have the same force and effect as if printed here in its entirety and is hereby modified, amended, and supplemented as follows:
1808.1.1 Foundation setback verification. Prior to the placement of concrete and upon completed form installation, a licensed surveyor is required to measure and record the distance from the proposed foundation walls to the established lot lines. The contractor shall submit these findings in letter format to the building inspector upon the request for a foundation inspection. Letter shall specify the findings of front, sides and rear yard setbacks as defined in Title 17 of the MBMC.

C. Amend section 2304.8.2 (Structural Roof Sheathing) and adopt section 2304.8.2.1 which shall have the same force and effect as if printed here in its entirety and is hereby modified, amended, and supplemented as follows:
2304.8.2.1 Building height verification. Prior to roof sheathing or shear wall inspection, a licensed surveyor is required to measure and record the height of the structure. The contractor shall submit this finding in letter format to the building inspector upon the request for roof sheathing/shear wall inspection. Letter shall specify the recorded height of structure as defined in Title 17 of the MBMC.

D. Amend Appendix J section J103.1 (Permits Required) and adopt section J103.1.1 which shall have the same force and effect as if printed here in its entirety and is hereby

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modified, amended, and supplemented as follows:

8. An excavation below finished grade for basements and footings of a building, retaining wall or other structure authorized by a valid building permit. This shall not exempt any fill made with the material from such excavation or exempt any excavation having an unsupported height greater than 5 feet (1524 mm) after the completion of such structure.

9. An excavation that (1) is less than 2 feet (610 mm) in depth or (2) does not create a cut slope greater than 5 feet (1524 mm) in height and steeper than 1 unit vertical in 1 ½ units horizontal (66.7% slope).

10. A fill less than 1 foot (305 mm) in depth and placed on natural terrain with a slope flatter than 1 unit vertical in 5 units horizontal (20% slope), or less than 3 feet (914 mm) in depth, not intended to support structures, that does not exceed 50 cubic yards (38.3 m3) on any one lot and does not obstruct a drainage course.

Chapter 14.04

RESIDENTIAL CODE

14.04.010 - Modifications of the California Residential Code.

The California Residential Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

A. Delete Division II of Chapter 1. Administration and Enforcement of the Residential Code shall be as set forth in the California Building Code, as modified, amended and supplemented by Chapter 14.02 of this code. Fees shall be as prescribed in the City’s Master Fee Schedule.

B. Adopt Appendices AH, AS, AT and AX. Delete Appendices AA, AB, AC, AD, AE, AF, AG, AI, AJ, AK, AL, AM, AN, AO, AP and AQ, AR, AV, AW, AX, AY, AZ.W.

C. Amend Section R313.1 and R313.2 to read as follows:

R313.1 Townhouse and One- and Two-family dwellings automatic fire sprinkler systems. An automatic residential fire sprinkler system shall be installed in all new townhouses and one and two family dwellings, and in all existing townhouses and one and two family dwellings where alteration results in an increase in floor area in excess of 50 percent, or 300 square feet. This section shall be applicable to mobile homes and factory-built housing not located in a mobile home or special occupancy park.

R313.2 Determination of Floor Area. For the purposes of this section, floor area shall be defined as the area within the exterior walls of the building under consideration. The floor area of a

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building, or portion thereof, not provided with surrounding walls, shall include the usable area under the horizontal projection of the roof or floor above.

For the purposes of this section, buildings shall be considered separate when:

1. The fire separation distance as defined in CBC Sec. 705.5 is not less than that permitted in CBC Table 705.5 and 705.8 where unprotected openings are allowed in an exterior wall of a non-sprinklered building, or

2. The buildings are structurally independent, the adjoining walls are constructed of fireresistant construction as prescribed in CBC Table 705.5 without openings or penetrations, projections comply with CBC Section 705.2, and parapets are constructed where required by CBC Section 705.11.

D. Add Section R313.3.3.5 to read as follows:

R313.3.3.5 Waterflow Alarm. A local waterflow alarm and remote inspector’s test valve, installed in accordance with NFPA 13, shall be installed on all sprinkler systems.

E. Amend Section R105.2 (Work exempt from permit), No. 3, to read as follows:

3. Retaining walls that are not over 4 feet (1219 mm) in height measured from the bottom of the footing to the top of the wall, unless supporting a surcharge or a sloping backfill. Retaining walls supporting a surcharge or a sloping backfill exceeding 20%, require calculations and plans signed by a registered civil or structural engineer.

Chapter 14.05

ELECTRICAL CODE

14.05.010 - Modifications of the California Electrical Code.

The California Electrical Code, adopted in Section 14.01.020, is hereby modified, amended, and/ or supplemented as follows:

A. Delete annexes A, B, C, D, E, F, G, H, I, and J. Administration and Enforcement of the Electrical Code shall be as set forth in the California Building Code as modified, amended and supplemented by Chapter 14.02 of this code. Fees shall be as prescribed in the City’s Master Fee Schedule.

B. Amend Article 230-70(A)(1) to read as follows:
230-70(A)(1) Readily Accessible Location. A service disconnecting means shall be installed at a readily accessible location either outside the building or structure, or inside nearest the

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point of entrance of the service conductors.

The disconnecting means shall be accessible to emergency personnel, either directly or by a remote actuating device, without requiring travel through the building interior.

Chapter 14.06

MECHANICAL CODE

14.06.010 - Modifications of the California Mechanical Code.

The California Mechanical Code, adopted in Section 14.01.020, is hereby modified, amended, and/ or supplemented as follows:

A. Delete Division II of Chapter 1. Administration and Enforcement of the Mechanical Code shall be as set forth in the California Building Code as modified, amended and supplemented by Chapter 14.02 of this code. Fees shall be as prescribed in the City’s Master Fee Schedule.

B. Adopt appendices A, B, C, D, E, F, G, and H.

Chapter 14.07

PLUMBING CODE
Sections:

14.07.010 - Modifications of the California Plumbing Code.

14.07.020 - Retrofitting with water-saving devices required.

14.07.030 - Required sewer backwater valve.

14.07.010 - Modifications of the California Plumbing Code.

The California Plumbing Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

A. Delete Division II of Chapter 1. Administration and Enforcement of the Plumbing Code shall be as set forth in the California Building Code as modified, amended and supplemented by Chapter 14.02 of this code. Fees shall be as prescribed in the City’s Master Fee Schedule.

B. Adopt Appendix K. Delete appendices A, B, C, D, E, F, G, H, I, J, and L.

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C. Amend Section 710.1 to read as follows:
710.1 A Backwater Valve, extended to and accessible from grade for maintenance, shall be installed on every Building Sewer.

Exception: In new construction, plumbing fixtures installed on a floor level that is above the next upstream manhole cover elevation shall not discharge through the required backwater valve.

D. Amend Section 713.0 to read as follows:
713.0 Sewer Required.
713.1 Every building in which plumbing fixtures are installed and every premises having drainage piping thereon shall have a connection directly to a public or private sewer. 713.2 Private Sewage Disposal Systems shall not be permitted.

14.07.020 - Retrofitting with water-saving devices required.

A. Every property owner, prior to the sale or transfer of any real property upon which is located any structure connected to the city’s water supply shall retrofit the structure with the water-saving devices required for new construction as set forth in this title. In cases where the Building Official determines the use of such fixtures in existing structures would fail to meet the requirements of the Plumbing Code, fixtures using the least amount of water which do meet the requirements of the Plumbing Code shall be utilized.

B. In cases where a buyer intends to demolish all structures on such property within ninety days from the date of transfer, the structure need not be retrofitted prior to transfer; provided a covenant and a bond are filed with the city as follows:

1. The property owner shall file with the city clerk a notarized covenant agreeing to either demolish all structures located on the property connected to the city water system, within ninety days from the date of transfer or to perform the retrofit required in subsection A of this section, together with a faithful performance bond, in a form satisfactory to the city in an amount equal to one hundred and fifty percent of the full cost of retrofitting all such structures securing faithful performance of the agreement.

2. The agreement shall also authorize and grant the city permission to enter onto the property and to perform such retrofits in the event that property owner fails to do so. Further, the property owner shall agree to reimburse the city for all cost incurred by the City in the event the bond is insufficient.

C. Determination of compliance with the requirements of subsection A shall be made by the Building Official after an inspection performed by the Building Official or a qualified

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plumbing contractor under the supervision of the Building Official, who shall issue a certificate indicating same to the seller or title company involved. Seller shall pay the fee set forth in the Master Fee Schedule for such retrofit inspection at the time seller submits the request for the retrofit inspection. No property transfer shall be recorded until such certificate has been received by the seller and transferred with the title to the buyer. If noncompliance is found, the property owner (both seller and buyer) and any title company involved in the transfer shall be in violation of this code and subject to those penalties as prescribed in Title 1 of this code.

14.07.030 - Required sewer backwater valve.

A. Any existing lateral sewer piping upon any premises which services fixtures whose elevation is lower than the elevation of the first upstream sewer manhole rim, lamp hole, or pump station receiving manhole, and for which the city has record of a previous sewage backflow incident involving a clogged sewer main shall be protected from backflow of sewage by installing backwater valves of a type approved by the Building Official. The property owner shall be required to provide and install such device.

B. If the property owner fails to install and maintain a backwater valve in good working condition when required under this section, then the Building Official may declare said sewer connection to be a nuisance and abate such nuisance pursuant to Section 8.12.010 et seq. of this code by installing an approved-type backwater valve at the owner’s expense. Said property owner may, in addition, be subject to fines as outlined in subsection E of this section.

C. All house connection sewers, industrial sewers, private sewage disposal systems and appurtenances thereto, now existing, or hereafter constructed, shall be maintained by the owner of the property in a safe and sanitary condition and all devices or safeguards which are required by this section for the operation thereof shall also be maintained in a good working order by the owner. It shall be the property owner’s responsibility to maintain that portion of the sewer to the public main, including the connection to the public main.

D. The Public Works Director, the health officer, and other duly authorized employees of the city and the health department bearing proper credentials and identification shall be permitted to enter all properties for the purposes of inspection, observation, measurement, sampling, and testing in accordance with the provisions of this section. The Public Works Director, the health officer, or their representatives shall have no authority to inquire into any processes including metallurgical, chemical, oil, refining, ceramic, paper, or other industries beyond that point having a direct bearing on the kind and source of discharge to the sewers or waterways of facilities for waste treatment.

E. Violations and Penalties. Any person who is convicted of violation of any provisions of this section is guilty of an infraction punishable as provided in Chapter 1.16 of this code.

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Chapter 14.08

FIRE CODE
Sections:

14.08.010 - Purpose.

14.08.020 - Bureau of fire prevention.

14.08.030 - Fire district established.

14.08.040 - Penalties for turning in false alarms.

14.08.050 - Fire injury report.

14.08.060 - Storage of gasoline driven vehicles.

14.08.070 - Citation powers.

14.08.080 - Fire Hazard Severity Zones

14.08.090 - Modifications of the California Fire Code

14.08.010 - Purpose.

This chapter shall be known and may be cited as “The Fire Prevention Regulations of the City of Morro Bay,” Chapter 14.08 of Title 14 of the Morro Bay Municipal Code. This chapter prescribes minimum regulations to reduce and minimize the potential for loss of and damage to life and property resulting from fire, panic, hazardous materials, and explosions.

14.08.020 - Bureau of fire prevention.

The California Fire Code shall be enforced by the fire department or building division of the Community Development Department under the supervision of the Fire Chief.

14.08.030 - Fire district established.

The entire incorporated area of the city is declared to be and is established a fire district.

14.08.040 - Penalties for turning in false alarms or for conviction of intentionally setting a fire.

Individuals responsible for turning in false alarms shall be responsible for the cost the fire department incurs while responding to the alarm. The cost of the false alarm shall be determined in accordance with the master fee schedule. The intent of this section is not to penalize those persons who make honest mistakes. Persons convicted of intentionally setting a fire in violation of any law or ordinance within the city limits shall pay the cost of fighting that respective fire.

14.08.050 - Fire injury report.

Any physician, first aid station, ambulance company or persons who treat or aid any person injured by a fire, explosion or chemical burn within the City shall, within twenty-four hours, report such treatment and pertinent information to the fire department.

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14.08.060 - Storage of gasoline driven vehicles.

No one shall store, repair or use any motorcycle, moped or any other gasoline driven vehicle inside of any dwelling. Storage and repair of gasoline driven vehicles are permitted in garage areas adjacent to dwellings.

14.08.070 - Citation powers.

The Morro Bay Fire Chief (Fire Chief), Fire Marshal and full-time safety members of the Fire Department authority to issue citations as provided in Title 1 of this code. Arson investigators who are full-time members of the Fire Department shall have the powers of a peace officer in performing their duties under this Code, and shall have the powers of a peace officer as provided in California Penal Code, Sections 830.37.

14.08.080 - Fire Hazard Severity Zones.

A. Purpose and Intent. The purpose of this chapter is to provide authority for the identification of local fire hazard severity zones and provide authority for enforcement of state and local codes in these zones. The intent of this chapter is to reduce the potential for fire losses by providing minimum requirements for the protection of properties constructed in very high hazard severity zones and other wildland/urban interface areas designated by the fire chief and supported by substantial evidence.

B. Designation—Recommendation. The Fire Chief is hereby authorized to designate Moderate, High Very, and High Fire Hazard Severity Zones within one hundred twenty days of receiving recommendations from the California State Fire Marshal.

C. Designation—Not Identified. The Fire Chief may designate areas not identified as Moderate, High, or Very High Fire Hazard Severity Zones by the California State Fire Marshal following a finding supported by substantial evidence in the record that the requirements for designation as Moderate, High, or Very High Fire Hazard Severity Zones are necessary for effective fire protection within the area(s).

D. Supported by Substantial Evidence in the Record. "Supported by substantial evidence in the record" shall require the city council to hold a public hearing and make findings there is competent substantial evidence in the record to support the Fire Chief's designation as fire hazard areas.

E. Enforcement. The building official and or Fire Marshal shall enforce the provisions of Chapter 7A of the California Building Code and Chapter 49 of the California Fire Code2025 Wildland Urban Interface Code in all High and Very High Fire Hazard Severity Zones and other areas designated by the Fire Chief and supported by substantial evidence in the record.

F. Permits. All submittals for subdivision, entitlement, or building permits shall demonstrate that the proposed project allows for compliance with the provisions of Government Code Section 51182 and Public Resource Code Section 4291, except where otherwise allowed by law, to the satisfaction of the fire chief and the building official.

G. Defensible Space. Per Government Code 51182 properties located within a Very High Fire Hazard Severity Zone are subject to a 100-foot defensible space requirement where applicable.

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H. Maps. The adopted Local Responsibility Area Fire Hazard Severity Zone map for the City of Morro Bay will be kept on file with the City Clerk and available on the city website.

I. Parcels with two or more Zone designations. If a parcel is designated to have two or more Fire Hazard Severity Zones the requirements of the more restrictive zone shall apply.

14.08.090 - Modifications of the California Fire Code.

The California Fire Code, adopted in Section 14.01.020, is hereby modified, amended, and/ or supplemented as follows:

A. Adopt Appendix Chapter 4 and appendices B, BB, C, CC, D, H, I, K, and N. Delete appendices A, E, F, G and J.

B. Section 101.1 is amended to read as follows:

Section 101.1 Title. These regulations shall be known as the Fire Code of the City of Morro Bay.

C. Section 103.1 is amended to read as follows:

Section 103.1 General. The Fire Department of the City of Morro Bay is hereby established and the person in charge thereof shall be known as the Fire Chief. Where the Code uses the term Fire Official, it shall mean the Fire Chief.

D. Section 113.2 is amended to read as follows:
113.2 Schedule of permit fees. Fees shall be paid in accordance with the City’s Master Fee Schedule.

E. Section 302.1, “Definitions,” is amended to add the following definition in correct alphabetical order:

SKY LANTERN. An airborne lantern typically made of paper with a wood frame containing a candle, fuel cell composed of waxy flammable material or other open flame which serves as a heat source to heat the air inside the lantern to cause it to lift into the air. Sky candles, fire balloons and airborne paper lanterns mean the same as sky lanterns.

F. Section 507.5.4 is amended to read as follows:
507.5.4 Obstruction. Unobstructed access to fire hydrants shall be maintained at all times.

The fire department shall not be deterred or hindered from gaining immediate access to fire protection equipment or fire hydrants.

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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.

2.3.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.

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

4.5.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.

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

6.7.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:

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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 Rroad.

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).

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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).

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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.

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Exceptions:

1. The sale of fireworks, approved by the State Fire Marshal as “safe and sane,” shall be permitted, subject to the approval of a permit by the Fire Chief.

2. The use of fireworks, approved by the State Fire Marshal as “safe and sane,” shall be permitted on private property only.

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

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

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

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

7.5.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.

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Chapter 14.10

RESERVED
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.

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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.

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

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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

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ORDINANCE NO. 673

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, REPEALING, AMENDING AND REENACTING CHAPTERS 14.01-

14.12 OF TITLE 14 (BUILDINGS AND CONSTRUCTION) OF THE MORRO BAY

MUNICIPAL CODE, THEREBY ADOPTING BY REFERENCE AND AMENDING THE 2025 CALIFORNIA BUILDING (VOLUMES 1 AND 2), RESIDENTIAL, ELECTRICAL,

MECHANICAL, PLUMBING, ENERGY, HISTORICAL BUILDING, FIRE, EXISTING

THE CITY COUNCIL

CITY OF MORRO BAY, CALIFORNIA
WHEREAS, there are certain state and model codes relating to buildings, construction, fire and life safety as follows:

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FINDINGS

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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA FINDS AND ORDAINS AS FOLLOWS:

SECTION 1. The City Council hereby declares and adopts the foregoing recitals and findings as true and correct and they are incorporated herein.

SECTION 2. Effective January 1, 2026, Chapters 14.01-14.12 of the Morro Bay Municipal Code are hereby repealed and reenacted to read as follows (with redline changes below to show amendments made):

Chapter 14.01

GENERAL
Sections:

14.01.010 Title and Purpose.

14.01.020 Adoption of Codes.

14.01.030 Building Official and Fire Chief Designated.

14.01.010 - Title and Purpose.

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occupancy of buildings and other structures. This title prescribes regulations and standards that are consistent with the State Housing Law of California.

14.01.020 - Adoption of Codes.

Fifteen documents, one each of which are on file in the office of the Building Official, identified by the seal of the City of Morro Bay, marked and designated as the:

A. 2025 California Building Code (volumes 1 and 2),
B. 2025 California Residential Code,
C. 2025 California Electrical Code,
D. 2025 California Mechanical Code,
E. 2025 California Plumbing Code
F. 2025 California Energy Code
G. 2025 California Historical Building Code,
H. 2025 California Fire Code,
I. 2025 California Existing Building Code,
J. 2025 California Green Building Standards Code,
K. 2025 California Administrative Code,
L. 2025 California Referenced Standards Code,
M. 2024 International Property Maintenance Code,
N. 1997 Uniform Code for the Abatement of Dangerous Buildings, published by the International Conference of Building Officials, and
O. 2025 Wildland-Urban Interface Code
are hereby adopted, including chapters and sections not otherwise adopted by agencies of the State of California, and the appendices thereto as the buildings, construction, and fire prevention regulations of the City of Morro Bay. The provisions of the above-mentioned are hereby referred to, adopted, and made a part hereof as if fully set out in this title except as modified hereinafter.

14.01.030 - Building Official and Fire Chief Designated.

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Chapter 14.02

ADMINISTRATION AND ENFORCEMENT
Sections:

14.02.010 Administration and Enforcement.

14.02.020 Modification of Division II of Chapter 1 of the California Building Code.

14.02.010 - Administration and Enforcement.

The administration and enforcement of this title shall be in accordance with Division II of Chapter 1 of the California Building Code as adopted, modified, amended, and supplemented herein.

14.02.020 - Modifications of Division II of Chapter 1 of the California Building Code.

The California Building Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

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D. Amend Section 109.2 to read as follows:
109.2 Schedule of permit fees. Permit fees shall be as prescribed in the City’s Master Fee Schedule.

E. Amend Section 113 to read as follows:

SECTION 113

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Chapter 14.03

BUILDING CODE

14.03.010 - Modifications of the California Building Code.

The California Building Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

A. Adopt appendices H, I and J. Delete appendices A, B, C, D, E, F, G, K, L, M, N, O and P.

D. Amend Appendix J section J103.1 (Permits Required) and adopt section J103.1.1 which shall have the same force and effect as if printed here in its entirety and is hereby

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modified, amended, and supplemented as follows:

Chapter 14.04

RESIDENTIAL CODE

14.04.010 - Modifications of the California Residential Code.

The California Residential Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

B. Adopt Appendices AH, AS, AT and AX. Delete Appendices AA, AB, AC, AD, AE, AF, AG, AI, AJ, AK, AL, AM, AN, AO, AP and AQ, AR, AV, AW, AX, AY, AZ.W.

C. Amend Section R313.1 and R313.2 to read as follows:

R313.2 Determination of Floor Area. For the purposes of this section, floor area shall be defined as the area within the exterior walls of the building under consideration. The floor area of a

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building, or portion thereof, not provided with surrounding walls, shall include the usable area under the horizontal projection of the roof or floor above.

For the purposes of this section, buildings shall be considered separate when:

D. Add Section R313.3.3.5 to read as follows:

R313.3.3.5 Waterflow Alarm. A local waterflow alarm and remote inspector’s test valve, installed in accordance with NFPA 13, shall be installed on all sprinkler systems.

E. Amend Section R105.2 (Work exempt from permit), No. 3, to read as follows:

Chapter 14.05

ELECTRICAL CODE

14.05.010 - Modifications of the California Electrical Code.

The California Electrical Code, adopted in Section 14.01.020, is hereby modified, amended, and/ or supplemented as follows:

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point of entrance of the service conductors.

The disconnecting means shall be accessible to emergency personnel, either directly or by a remote actuating device, without requiring travel through the building interior.

Chapter 14.06

MECHANICAL CODE

14.06.010 - Modifications of the California Mechanical Code.

The California Mechanical Code, adopted in Section 14.01.020, is hereby modified, amended, and/ or supplemented as follows:

B. Adopt appendices A, B, C, D, E, F, G, and H.

Chapter 14.07

PLUMBING CODE
Sections:

14.07.010 - Modifications of the California Plumbing Code.

14.07.020 - Retrofitting with water-saving devices required.

14.07.030 - Required sewer backwater valve.

14.07.010 - Modifications of the California Plumbing Code.

The California Plumbing Code, adopted in Section 14.01.020, is hereby modified, amended, and supplemented as follows:

B. Adopt Appendix K. Delete appendices A, B, C, D, E, F, G, H, I, J, and L.

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C. Amend Section 710.1 to read as follows:
710.1 A Backwater Valve, extended to and accessible from grade for maintenance, shall be installed on every Building Sewer.

Exception: In new construction, plumbing fixtures installed on a floor level that is above the next upstream manhole cover elevation shall not discharge through the required backwater valve.

14.07.020 - Retrofitting with water-saving devices required.

C. Determination of compliance with the requirements of subsection A shall be made by the Building Official after an inspection performed by the Building Official or a qualified

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14.07.030 - Required sewer backwater valve.

E. Violations and Penalties. Any person who is convicted of violation of any provisions of this section is guilty of an infraction punishable as provided in Chapter 1.16 of this code.

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Chapter 14.08

FIRE CODE
Sections:

14.08.010 - Purpose.

14.08.020 - Bureau of fire prevention.

14.08.030 - Fire district established.

14.08.040 - Penalties for turning in false alarms.

14.08.050 - Fire injury report.

14.08.060 - Storage of gasoline driven vehicles.

14.08.070 - Citation powers.

14.08.080 - Fire Hazard Severity Zones

14.08.090 - Modifications of the California Fire Code

14.08.010 - Purpose.

14.08.020 - Bureau of fire prevention.

The California Fire Code shall be enforced by the fire department or building division of the Community Development Department under the supervision of the Fire Chief.

14.08.030 - Fire district established.

The entire incorporated area of the city is declared to be and is established a fire district.

14.08.040 - Penalties for turning in false alarms or for conviction of intentionally setting a fire.

14.08.050 - Fire injury report.

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14.08.060 - Storage of gasoline driven vehicles.

14.08.070 - Citation powers.

14.08.080 - Fire Hazard Severity Zones.

E. Enforcement. The building official and or Fire Marshal shall enforce the provisions of 2025 Wildland Urban Interface Code in all High and Very High Fire Hazard Severity Zones and other areas designated by the Fire Chief and supported by substantial evidence in the record.

G. Defensible Space. Per Government Code 51182 properties located within a Very High Fire Hazard Severity Zone are subject to a 100-foot defensible space requirement where applicable.

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H. Maps. The adopted Local Responsibility Area Fire Hazard Severity Zone map for the City of Morro Bay will be kept on file with the City Clerk and available on the city website.

I. Parcels with two or more Zone designations. If a parcel is designated to have two or more Fire Hazard Severity Zones the requirements of the more restrictive zone shall apply.

14.08.090 - Modifications of the California Fire Code.

The California Fire Code, adopted in Section 14.01.020, is hereby modified, amended, and/ or supplemented as follows:

A. Adopt Appendix Chapter 4 and appendices B, BB, C, CC, D, H, I, K, and N. Delete appendices A, E, F, G and J.

B. Section 101.1 is amended to read as follows:

Section 101.1 Title. These regulations shall be known as the Fire Code of the City of Morro Bay.

C. Section 103.1 is amended to read as follows:

D. Section 113.2 is amended to read as follows:
113.2 Schedule of permit fees. Fees shall be paid in accordance with the City’s Master Fee Schedule.

E. Section 302.1, “Definitions,” is amended to add the following definition in correct alphabetical order:

F. Section 507.5.4 is amended to read as follows:
507.5.4 Obstruction. Unobstructed access to fire hydrants shall be maintained at all times.

The fire department shall not be deterred or hindered from gaining immediate access to fire protection equipment or fire hydrants.

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Morro Bay City CouncilNovember 12, 2025

Morro Bay City Council
November 12, 2025