CITY OF MORRO BAY
Notice of Special Meeting of the City Council
Agenda
Tuesday, November 18, 2025, 3:30 p.m.
Veterans Memorial Hall
209 Surf St., Morro Bay, CA
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Pages
1. ESTABLISH QUORUM AND CALL TO ORDER
2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
3. SPECIAL MEETING AGENDA ITEM(S)
3.a DECLARATION OF EMERGENCY AND AUTHORIZE ACTIONS REQUIRED
FOR THE MORRO CREEK BANK STABILIZATION PROJECT
1 (Public Works)
Recommended Action
Authorize the following actions related to the Morro Creek Bank Stabilization Project:
Adopt Resolution 60-25, by not less than four-fifths affirmative vote, to declare a local emergency due to significant erosion of the Morro Creek bank threatening public property and infrastructure;
1. Authorize the City Manager to negotiate and award an emergency public works contract for the project in an amount not to exceed $500,000;
2. Authorize the City Manager, or designee, to approve construction contingency amounts up to a total of $168,093;
3. Authorize the City Manager, or designee, to approve professional services agreements for design, environmental permitting and monitoring, and engineering during construction services for an amount not to exceed $200,000; and
4. Find that the project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) – Emergency Projects.
5. 4. ADJOURNMENT
/s/ Carla Wixom, Mayor
This agenda is subject to amendment up to 24 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.
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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 17, 2025 FROM: Greg Kwolek, Public Works Director
Nate Stong, PE, City Engineer
SUBJECT: Declaration of Emergency and Authorize Actions Required for the Morro Creek Bank Stabilization Project
RECOMMENDED ACTION
Authorize the following actions related to the Morro Creek Bank Stabilization Project:
1. Adopt Resolution No. 60-25, by not less than four-fifths affirmative vote, to declare a local emergency due to significant erosion of the Morro Creek bank threatening public property and infrastructure;
2. Authorize the City Manager to negotiate and award an emergency public works contract for the project in an amount not to exceed $500,000;
3. Authorize the City Manager, or designee, to approve construction contingency amounts up to a total of $168,093;
4. Authorize the City Manager, or designee, to approve professional services agreements for design, environmental permitting and monitoring, and engineering during construction services for an amount not to exceed $200,000; and
5. Find that the project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) and (c) – Emergency Projects.
ALTERNATIVES
City Council could choose to:
1. Not authorize the award of an emergency contract, and instead have staff prepare plans and specifications to award a contract to a low bidder in accordance with State and local contracting procedures. This could result in an extended timeline to complete the work, which would leave the unprotected creek bank at risk of further erosion and failure.
2. Provide alternative direction to staff.
FISCAL IMPACT
The Morro Creek Bank Stabilization Project (Project) will be funded through the Storm and Flooding Damages – Facilities/Equipment Repairs Project (915-8033) available balance, and by reallocating previously appropriated project funding from two other projects: Storm and Flooding Damages – Pavement Repairs Project (915-8034) and Juniper/Elena Emergency Storm Drain Repair Project (915-9949). The Storm and Flooding Damages capital project budgets include unused funding from 2023 storm recovery (General Fund Emergency Reserve appropriation in Fiscal Year (FY) 2022-23 and General Fund appropriation in FY 2023-24). The Juniper/Elena Emergency Storm Drain Repair Project was also funded by General Fund and General Fund Emergency Reserve in FY 2020-21 AGENDA NO: 3.a
MEETING DATE: November 18, 2025
through FY 2022-23. The following table summarizes the proposed funding sources for this project.
Project Funding Source Summary Amount
Existing Project Budget
Storm & Flooding Damages-Facilities/Equip Repairs $174,210 Reallocation of Existing Project Funding
Storm & Flooding Damages-Pavement Repairs $610,388
Juniper/Elena Emergency Storm Drain Repair $83,495
TOTAL STORM & FLOODING DAMAGESFACILITIES/EQUIPMENT REPAIRS PROJECT BUDGET$868,093 Since the recommended project will protect creek banks along a portion of the permanent easement for the Recycled Water portion of the Water Reclamation Facility (WRF) Program, the City will explore the WRF budget’s applicability and ability to reimburse the General Fund for expenses. Staff will also explore other funding arrangements from other stakeholders, such as the Central California Joint Cable/Fisheries Liaison Committee and the U.S. Coast Guard. Additionally, staff will pursue available grant opportunities for General Fund reimbursement. Below is a summary of estimated project costs.
BACKGROUND
During the 2023 storms and the 2024 high surf events, the southern banks of Morro Creek just east of the pedestrian bridge experienced erosion along an approximate 300’ stretch. In some areas, approximately 70’ of ground was lost. Without protective measures in place, future heavy rains, flooding, or high surf events this winter could further erode the bank and threaten the access roadway, potentially cutting off the only access to the Morro Creek Yard (Yard).
The erosion threatens two properties, one of which is owned by the City and another owned by Vistra.
The City’s property serves as an access route to the Vistra parcel, over which the City holds an easement for Yard access. Although the easement has no set expiration, Vistra (or any future property owner) may terminate the easement with 180-day notice if it needs the site for an approved new use. Until then, they cannot terminate the easement.
The Yard supports critical facilities used by the U.S. Coast Guard, the commercial fishing industry, and the Harbor Department. The Yard is also the target location for two injection wells associated with the Recycled Water Project (WRF Program). The City leases the Yard to the U.S. Coast Guard and to local fishermen for storage and other uses, while part of the property is used by the Harbor Department for storage and operations.
Erosion continues to progress slowly under current conditions, raising serious concerns about further significant loss during the upcoming rainy season or future high surf events. Even a few additional feet of bank loss could compromise Coast Guard, Harbor, and commercial fishing operations. The Project Cost Summary
Item Estimated Cost
Engineering & Design $75,000
Regulatory Compliance $125,000
Construction $500,000
Construction Contingency $168,093
TOTAL $868,093
commercial fishing gear storage, in particular, is essential to the local fleet and lacks a feasible alternative nearby.
The Recycled Water Project team has identified the Yard as a preferred site for two injection wells, pending results from ongoing studies expected to conclude in summer 2026. Although the City has an additional permanent easement over the Vistra property for wells and conveyance pipelines, the currently defined easement area is likely unsuitable for construction as portions of it have since eroded into the creek. The City is working with Vistra on an easement realignment to exchange unusable sections for access to more suitable ones. However, if creek erosion were to sever road access, the Yard could become unusable for the planned injection wells even with an easement realignment, requiring the City to pursue alternatives across the creek.
DISCUSSION
Since the creek bank is comprised primarily of sand and currently unprotected, there is an imminent risk of property loss should upcoming rains or high surf events be severe enough. As such, Staff recommends proceeding with emergency creek stabilization work that could be implemented by late December 2025 or January 2026. The estimated cost for design, permitting, and construction is $700,000. Staff recommends authorizing up to $868,093 to cover potential contingencies and avoid project delays.
Environmental Regulatory Compliance
The project area lies within a riparian zone regulated by the US Army Corps of Engineers (USACE), California Department of Fish & Wildlife (CDFW), and the Regional Water Quality Control Board (RWQCB). Each agency provides emergency authorization procedures that allow immediate stabilization work when an imminent threat to property or essential public services exists under CEQA 21060.3.
USACE: The City would notify USACE and seek authorization under Regional General Permit 63 for emergency protection and repair activities. Work may begin once the District Engineer confirms the activity qualifies.
RWQCB: Staff would file a Notice of Intent and applicable fee prior to work initiation.
Construction must commence within seven days of submittal. CDFW: Notification is submitted within 14 days of starting work, followed by a post-project report.
Staff intends to advance the project as far as possible through these emergency processes to allow prompt stabilization before the storm season. If agency requirements or project scope exceed what can be approved under emergency provisions, staff will return to Council for further direction.
DECLARATION OF EMERGENCY
An emergency declaration by the City Council is recommended to allow staff to act quickly to protect critical infrastructure and maintain access to the Morro Creek Yard. The declaration enables the City to bypass normal competitive bidding procedures under Public Contract Code §22050 and procure materials and services on a sole-source basis if needed. It also provides a clear administrative record supporting the use of emergency permitting provisions under CEQA and with state and federal regulatory agencies.
ALTERNATIVE CREEK BANK PROTECTION METHODS
Staff evaluated both temporary stabilization and permanent bank protection options for approximately 300 lineal feet along the south bank. Temporary stabilization methods could include the placement of large removable cofferdams or sand/water-filled bags using products such as TrapBags, or Geotubes. However, the measures would be temporary and are estimated to cost $150,000 to $250,000 for installation. Removal costs and future permanent solutions would be at additional cost.
The proposed emergency work would involve installation of rock slope protection along the toe of bank with potentially geogrid and soil in alternating layers to more permanently stabilize the creek bank. Native vegetation would also be used to help stabilize the creek bank and also enhance wildlife habitat in the area. Either alternative would require an emergency declaration by the City Council to allow for sole source procurement to a local contractor to provide the materials and installation before the rainy season. A third alternative staff could explore would be to drill or drive piling along the north side of the Morro Creek Yard access road, and/or along the north perimeter of the City-owned parcel between the Embarcadero and Vistra property, outside of jurisdictional areas and avoiding environmental impacts while protecting infrastructure should further erosion of the creek bank occur.
ATTACHMENTS
1. Affected Area Map
2. City Council Resolution No. 60-25
ATTACHMENT 1: AFFECTED AREA Figure 1: Morro Creek Looking Downstream Figure 2: Morro Creek South Bank Looking Upstream 75 Feet Location of South
Bank Prior to 2024
RESOLUTION NO. 60-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
DECLARING A LOCAL EMERGENCY DUE TO SIGNIFICANT EROSION OF THE MORRO
CREEK BANK THREATENING PUBLIC PROPERTY AND INFRASTRUCTURE
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, during the 2023 winter storms and 2024 high surf events, sudden and unexpected erosion occurred along approximately 300 linear feet of the southern bank of Morro Creek near the Morro Creek Yard, causing loss of up to 70 feet of land, and ongoing erosion of the unprotected creek bank is urgently threatening continued access to critical City and tenant facilities; and
WHEREAS, the affected area provides access for operations by the U.S. Coast Guard, the commercial fishing fleet, and the City’s Harbor Department, and serves as a potential future site for injection wells associated with the City’s Recycled Water Project; and WHEREAS, if additional erosion occurs during the upcoming rainy season, the creek bank failure could compromise access to the Morro Creek Yard, damage public property and leased facilities, and disrupt essential public services; and
WHEREAS, the City must act quickly to stabilize the creek bank to reduce the imminent threat of loss or damage to property and critical infrastructure; and WHEREAS, California Public Contract Code Section 22050 allows the City Council to authorize emergency public works when the situation will not permit delay required for competitive solicitation, enabling the City to procure services and materials necessary to respond without following normal bidding procedures; and
WHEREAS, the proposed emergency work qualifies as an “emergency” under California Environmental Quality Act (CEQA) Section 21060.3, which includes sudden occurrences demanding immediate action to prevent or mitigate loss or damage to life, health, property, or essential public services, and is exempt from review pursuant to CEQA Guideline Section 15269(b) and (c); and
WHEREAS, declaring a local emergency supports coordination with the U.S. Army Corps of Engineers, California Department of Fish and Wildlife, and Regional Water Quality Control Board under their emergency permitting authorities to expedite stabilization efforts before further storm events; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, the following:
1. The City Council hereby finds and declares that a local emergency exists due to ongoing and imminent erosion along Morro Creek that threatens public property, critical infrastructure, and access to essential facilities; and
2. The City Manager, or designee, is authorized to take all necessary steps to design, permit, and implement emergency stabilization measures to protect the Morro Creek bank and maintain access to City facilities.
3. Pursuant to Public Contract Code Section 22050, the City Manager, or designee, is authorized to procure services, equipment, and materials without competitive bidding as needed to respond to this emergency.
4. Staff shall return to the City Council at the earliest opportunity to report on the emergency actions taken, confirm project progress, and determine whether there is a continuing need for emergency action as required by Public Contract Code Section 22050(c).
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting thereof held on this 18th day of November 2025 on the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
CARLA WIXOM, Mayor
ATTEST:
DANA SWANSON, City Clerk