(e) Limitation on DisciplinaryRights. The Association shall not have the power and authority to cause a forfeiture or abridgment of a Member’s right to the full use and occupancy of their Lot as the result of the failure by such Owner, members of such Owner’s household, or their tenants, guests, invitees or household pets to comply with any provision of the Governing Documents, except where such forfeiture or abridgement is the result of the judgment of a court of competent jurisdiction, or a decision arising out of an arbitration proceeding. The provisions of this subsection shall not affect the Association’s right to impose fines or monetary penalties or to suspend an Owner’s membership rights, as provided in the Governing Documents.
(f) Claims Regarding Defects. The Association’s right to maintain an action for alleged construction defects shall be limited to claims involving Association Maintenance Areas only, and the Association shall not have standing to assert claims on behalf of individual Owners with respect to alleged defects to Residences.
10.6 Disciplinary Rules. The Board or a committee appointed by the Board for that purpose may adopt rules and regulations that further elaborate upon and refine procedures for conducting disciplinary proceedings and otherwise imposing sanctions upon Members of the Association for violation of provisions of the GoverningDocuments. Such rules, when approved and adopted by the Board, shall be deemed to be a part of the Association Rules provided for in, and constituting a part of, the Governing Documents.
10.7 Emergency Situations. The following shall constitute emergency situations: (i) an immediate and unreasonable infringement of or threat to the safety or peaceful enjoyment of Residents of the Development; (ii) a traffic or fire hazard; or (iii) a threat of material damage to or destruction of the Development or any portion thereof. Notwithstanding any other provisions of the Governing Documents, under circumstances involving conduct that constitutes an emergency situation, the Association may undertake immediate corrective action.
10.8 Alternative Dispute Resolution. Although not required because the Development is not subject to the Davis-Stirling Common Interest Development Act, the Association and each Owner subject to a dispute related to the Governing Documents shall make a good-faith effort to comply with California Civil Code Section 5900 et seq.
10.9 Non-Waiver. Failure to enforce any provision of the Governing Documents at any time shall not be deemed a waiver of the right to do so thereafter with respect to the same or any other violation of any provision of the Governing Documents.
10.10 Notices. Any notices required or given under this Article shall, at a minimum, set forth the date, time, and location of any hearing, a brief description of the act or omission constituting the alleged violation of the Governing Documents, a reference to the specific Governing Document provision or provisions alleged to have been violated, and the sanction, disciplinary action, or other enforcement action being contemplated by the Board, if any. The notice shall be in writing and may be given by anymethod reasonablycalculated to give actual notice to the affected Member; provided, however, that if notice is given by mail, it shall be sent by first-class mail, postage prepaid, sent to the most recent address for the affected Member as shown on the records of the Association.
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10.11 Costs and Attorneys’ Fees. In the event any action is taken to enforce any of the provisions of the Governing Documents, the prevailing party shall be entitled to recover the full amount of all costs incurred, including attorneys’ fees, in enforcing any Governing Document provision. The remedies of the Association to recover the amount of such costs and attorneys’ fees shall include, without limitation, the imposition of a Reimbursement Assessment as provided in Section 6.7 of this Declaration. Although California Civil Code Section 5930 is not statutorily applicable to the Development, for purposes of awarding attorneys’ fees pursuant to this Section
10.11, the court may reduce or deny a party’s award of attorneys’ fees due to the such party’s failure to utilize mediation prior to litigating the dispute.
10.12 Owner Indemnification. Each Owner, by acceptance of their deed, agrees to:
(i) indemnify each and everyother Owner for; (ii) to hold each and everyother Owner harmless from; and (iii) to defend each and every other Owner against, any claim of any person for personal injury or property damage occurring within the Lot of such Owner, except that such Owner’s liability may be diminished to the extent that the injury or damage occurred by reason of the negligence of any other Owner or person temporarily visiting in such Lot or is fully covered by insurance.
10.13 No Obligation to Enforce. None of the provisions of this Declaration shall obligate or be construed to obligate Declarant, or its respective agents, representatives or employees, to undertake any affirmative action to enforce the provisions of this Declaration, or to undertake any remedial or corrective action with respect to any actual or asserted violation hereof or thereof.
10.14 Enforcement by City. Notwithstanding any provision of this Declaration to the contrary, and with respect to matters within the regulatory powers of the City, the City has the right, but not any duty, to enforce the terms of this Declaration in the City’s absolute discretion.
ARTICLE 11 INSURANCE
11.1 Types of Insurance Coverage. The Association shall, at the discretion of the Board, purchase, obtain and maintain the following types of insurance, if and to the extent they are available at a reasonable premium cost:
(a) Property Insurance. The Association shall obtain and maintain a policy of property insurance, written on all risk, replacement cost basis, on all Association Maintenance Area, and all Improvements within the Development for which the Association has an obligation to maintain or insure. The insurance shall be kept in full force and effect at all times and the full replacement value of the insured property shall be redetermined on an annual basis. Depending on the nature of the insured property and the requirements, if any, imposed by institutional Mortgagees having an interest in such property, the policies maintained by the Association pursuant to this Section shall contain an agreed amount endorsement or a contingent liability from operation of building laws endorsement or the equivalent, an extended coverage endorsement, vandalism, malicious mischief coverage, a special form endorsement and a clause to permit cash settlements for full insurable value in case of partial destruction. The policies required hereunder shall name as insured the Association and all Mortgagees as their respective interests may appear. The policies may contain a loss payable endorsement in favor of the trustee described in Section 11.5, below.
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(b) General Liability Insurance. To the extent such insurance is reasonably obtainable, a policy of comprehensive general liability insurance naming as parties insured the Association, each Director, any manager, the Owners and occupants of Lots, and such other persons as the Board may determine. The policy will insure each named party against any liability incident to the ownership and use of the Association Maintenance Area and including, if obtainable, a cross-liability or severability of interest endorsement insuring each insured against liability to each other insured. The limits of such insurance shall not be less than One Million Dollars ($1,000,000.00) covering all claims for death, personal injury and property damage arising out of a single occurrence. Such insurance shall include coverage against water damage liability, liability for non-owned and hired automobiles, liability for property of others and any other liability or risk customarily covered with respect to common interest development projects similar in construction, location, facilities, and use. (c) Director’s and Officer’s Liability Insurance. To the extent such insurance is reasonably obtainable the Association shall maintain individual liability insurance for its Directors and officers providing coverage for negligent acts or omissions in their official capacities. The minimum coverage of such insurance shall be at least One Million Dollars ($1,000,000.00).
(d) Additional Insurance and Bonds. To the extent such insurance is reasonably obtainable, the Association may also purchase such additional insurance and bonds as it may, from time to time, determine to be necessary or desirable, including, without limiting the generality of this subsection, demolition, flood, earthquake, and workers’ compensation insurance. The Board shall also purchase and maintain fidelity bonds or insurance in an amount not less than three (3) months operating expenses and one hundred percent (100%) of the Association’s reserves and shall contain an endorsement of any person who may serve without compensation. The Association’sfidelitybond shall also include computer fraud and funds transfer fraud. If the Association uses a managing agent or management company, the Association’s fidelity bond coverage shall additionally include dishonest acts by that person or entity and its employees. The Board shall purchase and maintain such insurance on personal property owned by the Association and any other insurance, including Directors and Officers liability insurance, that it deems necessary or desirable.
11.2 Coverage Not Available. In the event any insurance policy, or any endorsement thereof, required by Section 11.1 is for any reason unavailable, then the Association shall obtain such other or substitute policy or endorsement as may be available which provides, as nearly as possible, the coverage described in this Article 11. The Board shall notify the Owners of any material adverse changes in the Association’s insurance coverage.
11.3 Copies of Policies. Copies of all insurance policies (or certificates thereof showing the premiums thereon have been paid) shall be retained by the Association and shall be available for inspection by Owners at any reasonable time.
11.4 Individual Owner’s Property Insurance. Each Owner shall purchase and at all times maintain a policy of personal liability and property insurance insuring the Owner’s Lot, Residence, any Improvements to the Owner’s Lot, and personal property.
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11.5 Trustee. All insurance proceeds payable under Section 11.1, above, and subject to the rights of Mortgagees under Article 13, below, may, in the discretion of the Board, be paid to a trustee to be held and expended for the benefit of the Owners, Mortgagees and others, as their respective interests shall appear. Said trustee shall be a commercial bank or financial institution in the City that agrees in writing to accept such trust.
11.6 Adjustment of Losses. The Board is appointed attorney-in-fact by each Owner to negotiate and agree on the value and extent of any loss under any policy carried pursuant to Section 11.1, above. The Board is granted full right and authority to compromise and settle any claims or enforce any claim by legal action or otherwise and to execute releases in favor of any insured.
11.7 Governmental Lender Requirements. Notwithstanding anything herein to the contrary, the Association shall maintain such policies, containing such terms, amount of coverage, endorsements, deductible amounts, named insureds, loss payees, standard mortgage clauses, notice of changes or cancellation, and an appropriate insurance company rating that shall satisfy the minimum requirements imposed by the Fannie Mae, Freddie Mac, FHA, or VA or any successor thereto. If such requirements conflict, the more stringent requirements shall be met. In the event the Board is provided notice that any required insurance policy does not satisfy the minimum requirements imposed by Fannie Mae, Freddie Mac, FHA, or VA or any successor thereto, the Board shall make all reasonable efforts to satisfy such minimum requirements within thirty (30) days of receiving such notice.
11.8 Indemnification by Association. The Association shall indemnify, defend and hold harmless each Owner from any suits, claims, legal proceedings, demands, costs, fees and expenses including those for attorneys’ fees, of whatever kind relating to or arising from any use of the public utility easement located on each Owner’s Lot, unless the claim is based upon the gross negligence or willful misconduct of the Owner. The claims subject to this Section shall include, without limitation, personal injury or death to any person, or property damage by or to any person, including any Owner, Resident, tenant, guest, or invitee of any Owner.
11.9 Indemnification of Owners by Association for Association Maintenance Area. The Association shall indemnify, defend and hold harmless each Owner from any suits, claims, legal proceedings, demands, costs, fees and expenses including those for attorney’s fees, or whatever kind relating to or arising from the maintenance of any Association Maintenance Area Improvements located on the Owner’s Lot. The Owner shall not be liable for any damage or claim resulting from the maintenance of the Association Maintenance Area located on each Owner’s Lot, unless the claim is based upon the gross negligence or willful misconduct of the Owner. The claims subject to this Section shall include, without limitation, personal injury or death to any person, or property damage by or to any person, including any Owner, Resident, tenant, guest, or invitee of any Owner.
ARTICLE 12 DAMAGE OR DESTRUCTION; CONDEMNATION
12.1 Damage to or Destruction of Association Maintained Improvements. In the event of damage to or destruction of any portion of the Association Maintenance Area, the Board shall, in its discretion and based upon considerations such as, the duty of an Owner to reimburse the Association The View at Morro Bay
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for such damage or destruction as provided herein, or the existence of insurance proceeds from insurance coverage for such damage or destruction and the frequency of use of the Improvement, determine whether to repair or replace the damaged or destroyed Improvement. If any such damage or destruction was insured against and the insurance proceeds are insufficient to cover the costs of repair or replacement of the damaged or destroyed Improvement, and if the Board elects to repair or replace the Improvement, the Association may levy a Special Assessment against the Members as provided in this Declaration to cover the additional cost of the repair or replacement not covered by the insurance proceeds. If the Board elects not to repair or replace the Improvement, the applicable insurance proceeds shall be used in the manner consistent with the purposes of the Association and as determined by the Board.
12.2 Damage to or Destruction of Owner Maintained Improvements. In the event of damage to or destruction of the Improvements on any Lot, the Owner of such Lot shall:
(i) completely repair or rebuild the Improvements to the same state as they existed prior to such damage or destruction or in any other manner consistent with the requirements of Article 8, above; or (ii) completely remove all remaining portions of such damaged or destroyed Improvements. Such repair, rebuilding, or removal shall be commenced within a reasonable time, which shall in no event exceed one (1) year after the occurrence of the damage or destruction and shall be completed within one (1) year after the date of commencement unless a longer period is agreed to in writing by the Board.
12.3 Condemnation of Association Maintenance Area. If at any time all or any portion of any Association Maintenance Area, or any interest therein, shall be taken for any public or quasipublic use, under any statute, by right of eminent domain, or by private purchase in lieu of eminent domain, the entire compensation or award in condemnation, to the extent such award is not apportioned among the Owners bycourt judgment or byagreement among the condemning authority, the Association and each of the affected Owners, shall be paid to the Association and shall be used in the manner determined by the Board, provided that such use shall not be inconsistent with the purposes of the Association. The Association shall represent the interests of all Owners in any proceedings relating to such condemnation to the extent such Owners have any interest in the Association Maintenance Area.
12.4 Condemnation of Lots. If an entire Residence or Lot, or so much thereof as to render the remainder unfit for use as a Residence, is condemned or taken for a public or quasi-public use, pursuant to any statute, by right of eminent domain, or by private purchase in lieu of eminent domain, the Owner’s membership in the Association shall terminate as of the last day of the month in which the condemnor obtains the right to possession, or upon Owner’s vacating the premises, whichever occurs last. If only a portion of such Residence or Lot is taken and the remainder is fit for use as a Residence, the Owner shall continue to be a Member of the Association. In any condemnation action involving an Owner’s Residence or Lot, the Association shall have the right to seek compensation for any damages incurred by the Association.
12.5 Appraisals. Where the provisions of this Article require an independent appraisal of property, said appraisal shall be made by a qualified real estate appraiser selected in the discretion of the Board.
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ARTICLE 13 PROTECTION OF MORTGAGEES
13.1 Amendments Affecting Mortgages. No amendment of this Declaration shall affect any of the rights of the holder of any Mortgage which is made in good faith and for value, if such Mortgage is Recorded prior to the Recording of such amendment.
13.2 Default byOwner; Mortgagee’s Right to Vote. In the event of a default by anyOwner under a Mortgage encumbering such Owner’s Lot, the Mortgagee under such Mortgage shall, upon:
(i) giving written notice to the defaultingOwner; (ii) Recording a notice of default in accordance with California Civil Code Section 2924; and (iii) delivering a copy of such Recorded notice of default to the Association, have the right to exercise the vote of the Owner at any regular or special meeting of the Association held only during such period as such default continues.
13.3 Breach; Obligation After Foreclosure. No breach of anyprovision of this Declaration by Declarant, the Association or any Owner shall impair or invalidate the lien of any recorded Mortgage made in good faith and for value and encumbering any Lot. Declarant, Owners, and the Association and their successors and assigns, shall be obligated to abide by all of the covenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes provided for in this Declaration with respect to any person who acquires title to or any beneficial interest in any Lot through foreclosure, trustee’s sale or otherwise.
13.4 Right to Examine Books and Records of the Association. All Mortgagees, insurers and guarantors of any Mortgages on any Lot shall have the right, upon written request to the Association, to:
(a) Association Records. Examine current copies of the Governing Documents and the Association’s books, records and financial statements, during normal business hours; (b) Financial Statements. Require theAssociation to provide a financial statement for the preceding fiscal year at no expense to the requesting entity; and (c) Notice of Meetings. Receive a written notice of all meetings of the Association and designate a representative to attend all such meetings.
13.5 Declaration to Conform With Mortgage Requirements. It is the intent of this Article that the Governing Documents and the development in general, shall now and in the future meet all requirements of any institutional Mortgagee intending to secure its Mortgage by a Lot or necessary to purchase, guarantee, insure or subsidize any Mortgage of a Lot by Freddie Mac, Fannie Mae, or the Veterans’ Administration. The provisions of this Article may be amended solely by the vote of the Board in order to conform to any requirements of the secondary lender market.
ARTICLE 14 DECLARANT’S DEVELOPMENT RIGHT
14.1 Declarant’s Right to Develop the Development. The Association and Owners shall not do anything to interfere with the right of Declarant to subdivide, sell, or rent any portion of the Development. Each Owner, by accepting a deed to a Lot, herebyacknowledges that any construction The View at Morro Bay
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or installation of Residences and related Improvements may impair the view of such Owner, and hereby consents to such impairment.
14.2 Amendment of Development Plans. Declarant may amend its plans for the Development, including,without limitation, design, architectural plans, materials, and colorschemes, and apply for changes in zoning, use and use permits, for any property within the Development.
14.3 Disclaimer of Declarant’s Representations. Anything to the contrary in this Declaration notwithstanding, and except as otherwise may be expressly set forth in a Recorded instrument with the CountyRecorder, Declarant makes no warranties or representations whatsoever that the plans presently envisioned for the complete development of the Development may or will be carried out, or that any land now controlled or owned or hereafter controlled or acquired by Declarant is or will be subjected to this Declaration, or that any such land (whether or not it has been subjected to this Declaration) is or will be committed to or developed for a particular (or any) use, or that if such land is once used for a particular use, such use will continue in effect.
14.4 No Amendment or Repeal. So long as Declarant owns any Lot within the Development, the provisions of this Article may not be amended or repealed without the consent of Declarant.
ARTICLE 15 AMENDMENT
15.1 Amendment Before First Conveyance. Before the conveyance of the first Lot within the Development to a purchaser other than Declarant, this Declaration and any amendments to it may be amended in any respect or revoked by the execution by Declarant of an instrument amending or revoking the Declaration. The amending or revoking instrument shall make appropriate reference to this Declaration and its amendments and shall be Recorded.
15.2 Amendment After First Conveyance. After the conveyance of the first Lot within the Development to a purchaser other than Declarant, this Declaration may be amended or revoked in any respect upon compliance with the following provisions:
(a) Member Approval Requirements. Except as provided in this Section, any amendment to this Declaration shall be approved by the vote or assent by written ballot of an absolute majority, including the holders of not less than a majority of the total voting power of each class of Members. If a two-class voting structure is no longer in effect in the Association because of the conversion of Class B membership to Class A membership, any amendment thereof will require the vote or assent by written ballot of both: (i) an absolute majority of the Association; and (ii) the vote of a majority of the total voting power held by Members other than Declarant. Notwithstanding the foregoing, the percentage of the voting power necessary to amend a specific clause or provision of this Declaration shall not be less than the percentage of affirmative votes prescribed for action to be taken under that clause. (b) Additional Approvals of Declarant for Amendments to Particular Provisions.
For so long as Declarant owns a Lot within the Development, the provisions of Articles 14 and 15 may not be amended without the prior written consent of Declarant.
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(c) Right of Amendment if Requested by Governmental Mortgage Agency or Federally Chartered Lending Institutions. Anything in this Article to the contrary notwithstanding, Declarant and the Association reserve the right to amend all or any part of this Declaration to such an extent and with such language as may be requested by Governmental Mortgage Agencies which require such an amendment as a condition precedent to such agency’s approval of this Declaration, or by any federallychartered lending institution as a condition precedent to lending funds upon the security of any Lot. Any such amendment shall be effectuated by the Recordation, by Declarant or the Association, of a certificate of amendment duly signed by or on behalf of the authorized agents, or authorized officers of Declarant or the Board, as applicable, with their signatures acknowledged, specifying the Governmental Mortgage Agency, or the federallychartered lending institution requesting the amendment and setting forth the amendatory language requested by such agency or institution. Recordation of such an amendment shall be deemed conclusive proof of the agency’s or institution’s request for such an amendment, and such certificate of amendment, when Recorded, shall be binding upon all of Lots and Association Maintenance Area comprising the Development and all persons having any interest therein. (d) Right of Amendment if Requested by City. Anything in this Article to the contrary notwithstanding, Declarant and the Board reserve the right to amend all or any part of this Declaration to such an extent and with such language as may be requested by the City to reflect conformance with or a modification of the development entitlements and permits which requires a conforming amendment to this Declaration. The Association shall Record any amendment requested by the City within sixty (60) days of receipt of a request from the City. Any such amendment shall be effectuated by the Recordation of a certificate of amendment duly signed by or on behalf of the authorized agents, or authorized officers of Declarant, or the Association as applicable, with their signatures acknowledged, specifying the City requested the amendment and setting forth the amendatory language requested by the City. Recordation of such an amendment shall be deemed conclusive proof of the City’s request for such an amendment, and such amendment, when Recorded, shall be binding upon all of the real property comprising the Development and all persons having an interest therein.
(e) Right of Amendment by Board. The Board may, without the approval of the Members, amend any part of this Declaration to the limited extent necessary to comply with a change in applicable federal, state or local legislation, or to correct a typographical error.
15.3 Effective Date of Amendment. The amendment will be effective upon the Recording of a certificate of amendment, duly executed and certified by any two (2) officers of the Association setting forth in full the amendment so approved and that the approval requirements of Section 15.2, above, have been duly met. If the consent or approval of any governmental authority, Mortgagee, or other entity is required under this Declaration to amend or revoke any provision of this Declaration, no such amendment or revocation shall become effective unless such consent or approval is obtained.
15.4 Reliance on Amendment. Anyamendments made in accordance with the terms of this Declaration shall be presumed valid by anyone relying on them in good faith.
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ARTICLE 16 GENERAL PROVISIONS
16.1 Term. This Declaration continues in full force and effect unless an amendment terminating this Declaration is unanimously approved by the Owners, and Recorded in accordance with Article 15, above.
16.2 Severability. The provisions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any provision hereof shall not invalidate any other provisions hereof.
16.3 Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose of fostering a plan of community ownership and occupancy and of management of the Development for the benefit of the community.
16.4 Statutory References. Any reference to a California or federal statute, code or regulation shall also incorporate and include and any successor statutes or laws. __________________________________________
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EXHIBIT “A”
ASSOCIATION MAINTENANCE AREA LANDSCAPE DIAGRAM
(Attached hereto and incorporated herein on the following page.)
SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and Release of All Claims (hereinafter the "AGREEMENT") is made and entered by and among MORRO BAY VENTURES, LLC (hereinafter referred to as "MBV"), and DAWN BEATTIE, KERRIGAN MAHAN, MELANIE WILLIAMS-MAHAN,STEVE STEVENS, and VICKI MCDONALD (hereinafter referred to as "Defendants"), to settle all claims and demands between these parties related to any matter whatsoever that involves the litigation and complaint filed in Superior Court for the County of San Luis Obispo Case No. 22CV0237 (the "ACTION").
RECITALS
A. MBV is the Plaintiff in the ACTION.
B. The Defendants make up the committee members of the Cloisters Design Committee, except for Kerrigan Mahan who recently resigned from the Cloister Design Committee.
C. MBV is the record owner of 2783 Coral Avenue, Mon-o Bay, California, Assessor's Parcel Number 065-386-015, commonly known as Lot 124 ("Lot 124").
D. The parties wish to settle the claims in the ACTION.
AGREEMENT
In consideration of the timely performance of the terms and conditions set forth below, the parties hereby agree, represent, covenant and warrant as follows:
1. As stated in Declaration of Covenants, Conditions, and Restrictions ("CC&Rs") of The Cloisters, Morro Bay, California (attached hereto as Exhibit 1) recorded as Document No. 1996-050337 on October 8,1996, and the Supplemental Declarations recorded on August 31,2006 as Document No. 2006062262 (attached hereto as Exhibit 2), and on October 8, 2021 (attached hereto as Exhibit 3), the parties hereto stipulate and agree that Lot 124 is not defined as a "Lot" in Section 1.17 of the CC&Rs. Defendants further stipulate and agree that any development of Lot 124 and any lot(s) or improvements) on any lot(s) created by any future subdivisions) of Lot 124 will not have to go through The Cloisters Design Committee design review as stated in the CC&Rs.
2. MBV will file the Notice of Dismissal with prejudice of the Complaint filed in the ACTION within ten (10) days after execution of this Settlement Agreement and recordation of this
SETTLEMENT AGREEMENT AND
RELEASE OF ALL CLAIMS
Settlement Agreement in the Official Records on San Luis Obispo County. All costs associated with recordation shall be paid by MBV.
3. MB V and Defendants will cooperate with any other necessary paperwork or documentation necessary to fulfill the obligations of this AGREEMENT
4. MUTUAL RELEASE. In consideration of the full and timely performance of all terms and conditions of the AGREEMENT, in the manner provided herein, Defendants and MB V, on behalf of themselves, and on behalf of their respective heirs, executors, administrators, trustors,trustees, beneficiaries, predecessors, successors, assigns, members, former shareholders, shareholders, former partners, partners, partnerships, parent, subsidiary, affiliated and related entities, officers, directors, principals, managers, agents, servants, employees, representatives, and all persons, firms, associations and/or corporations connected with them, including withoutlimitation their insurers, sureties, attorneys, managing agents, consultants and experts, releases andforever discharges each other, respectively, and their respective heirs, executors, administrators, trustors, trustees, beneficiaries, predecessors, successors, assigns, members, former shareholders, shareholders, former partners, partners, partnerships, parent, subsidiary, affiliated and related entities, officers, directors, principals, agents, servants, employees, representatives, and all persons, firms, associations and/or corporations connected with them, including without limitationtheir insurers, sureties, attorneys, consultants and experts, of and from any claims, demands, causes of action, obligations, liens, taxes, damages, losses, costs, attorneys' fees and expenses of every kind and nature whatsoever, known or unknown, fixed or contingent, latent or patent, including any and all rights to subrogation and/or indemnity therefore, which Defendants and MBV may now have against any party or each other by reason of any matter or cause arising out of or connected with the ACTION, including all claims of property damage, loss of rent and pecuniaryloss, diminution in value, stigma or other economic loss; provided however, that this releaseexcludes the duties and obligations of Defendants and MBV to the AGREEMENT.
5. COMPROMISE. Defendants and MBV expressly agree that the AGREEMENT is a compromise and shall not be construed as an admission of liability or responsibility as againstany party.
6. UNKNOWN CLAIMS. Each party acknowledges and agrees that the release given herein to the other party upon executing this AGREEMENT applies to all claims for injuries, damages, or losses to their own person and property, real or personal (whether those injuries,
SETTLEMENT AGREEMENT AND
RELEASE OF ALL CLAIMS
damages, or losses are known or unknown, foreseen or unforeseen, patent or latent) which they may have against the other party related to the dispute or the ACTION as mentioned above.
7. CIVIL CODE SECTION 1542. Each party hereby certifies that they have read California Civil Code Section 1 542, set out below, and indicates that fact by signing their initials below: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS-S-STOEMENT WITH THE DEB1
,';v Initi AA3L- ^
EachlpaiSy-hereto hereby waives CM1 Code Sectioy 1542>s~^plication. Each party hereto waives CM1 Co understands and expressly acknowledges that the significance and consequences of this waiver of Civil Code Section 1542 is that if one of them eventually suffers additional damage arising out of the ACTION, they will not be permitted to make any claim against any other party for those damages. Furthermore, each party hereto expressly acknowledges that they intend these consequences even as to claims and damages for injuries or losses that may exist as of thisAGREEMENT'S date but which they do not know exist, and which, if known, would materiallyaffect their decision to execute this AGREEMENT, regardless of whether that party's lack ofknowledge results from ignorance, oversight, error, negligence, or any other cause.
WARRANTIES AND ACKNOWLEDGMENTS
8. ENTIRE AGREEMENT, The AGREEMENT contains the entire agreement between the parties hereto relating to the subject matter of the AGREEMENT. Defendants andMBV have thoroughly investigated the facts relating to the aforementioned dispute. The terms ofthe AGREEMENT are contractual and not a mere recital. The AGREEMENT is executed without reliance upon any representation by DEFENDANTS and MBV, and the parties have carefully readand understand the contents of the AGREEMENT and sign the same of their own free will.
9. ATTORNEYS' FEES. The parties hereto acknowledge and agree that each are to bear their own costs, expenses and attorneys' fees, arising out of or connected with the dispute, thenegotiation, drafting and execution of the AGREEMENT, and all other matters arising out of or connected therewith, except that in the event any action or proceeding is brought by any party toenforce the AGREEMENT, the prevailing party shall be entitled to reasonable attorneys' fees andcosts of suit.
SETTLEMENT AGREEMENT AND
RELEASE OF ALL CLAIMS
10. CONTROLLING LAW. The AGREEMENT shall be interpreted in accordance with and be governed in all respects by California Law.
11. PREPARATION OF AGREEMENT. The AGREEMENT is the product of negotiation and preparation by and among each party and their respective attorneys. Therefore, the parties acknowledge and agree that the AGREEMENT shall not be deemed prepared or drafted by one party or another and shall be construed accordingly.
12. BENEFICIARIES. Except as otherwise provided in the AGREEMENT, no persons or entities other than Defendants and MBV are intended to be or should be construed to be a beneficiary of any of the provisions of the AGREEMENT.
13. SUCCESSORS AND ASSIGNS. The AGREEMENT shall be binding upon and inure to the benefit of Defendants and MBV, their respective assigns, successors in interest andlegal representatives.
14. COUNTERPARTS. The AGREEMENT may be executed in several counterparts, and all so executed shall constitute one agreement which shall be binding upon all parties hereto, notwithstanding that all parties' signatures do not appear on the same page.
15. SETTLEMENT TAX CONSEQUENCES. As there may be tax consequences resulting from this settlement, each party acknowledges that the party has been advised to consultwith a tax professional. Each party hereto assumes the responsibility for all taxes and tax preparation associated with their participation in this settlement.
16. FURTHER COOPERATION. Each party shall cooperate fully in executing and delivering any and all further documents and instruments as are necessary to carry out thisAGREEMENT'S terms and in completing any additional actions that may be necessary or appropriate to give full force and effect to this AGREEMENT'S terms and intent. To effectuate the terms of this paragraph, the parties, and each of them, stipulate and agree to not oppose any development request on Lot 124 or any lot(s) created by a subdivision(s) of Lot 124 to the City of Morro Bay or the County of San Luis Obispo or any other entity or person.
17. MODIFICATION. This AGREEMENT may be amended or modified only by an instrument in writing, stating the amendment or modification, executed by the parties hereto andattached to this instrument.
SETTLEMENT AGREEMENT AND
RELEASE OF ALL CLAIMS
18. SEVERABILITY. If any portion of this AGREEMENT is held unenforceable or inoperative for any reason, such shall not affect any other portion of this AGREEMENT, but the remainder shall be as effective as though such ineffective portion had not been contained herein.
19. WARRANTY OF AUTHORIZED SIGNATORIES. Each of the signatories hereto warrants and represents that he or she is competent and authorized to enter into the AGREEMENT on behalf of the party for whom he or she purports to sign, and each agrees to indemnify and hold harmless each other party hereto against all claims, suits, actions, demands, damages and losses, including necessary expenses of investigation and reasonable attorneys' fees and costs, where it is successfully asserted that he ur she was not competent or so authorized . to execute the AGREEMENT and to receive the consideration therefore.
20. VOLUNTARY CONSENT. Each party hereto understands, agrees, and expressly warrants and represents that their execution of this AGREEMENT is free and voluntary and furtherwarrants and represents that in executing this AGREEMENT they have relied on legal advice fromthe attorney of their choice, that this AGREEMENT'S terms and its consequences (including risks, complications, and costs) have been completely read and explained to them by that attorney, and that each party fully understands this AGREEMENT'S terms. Each party further achiowledges and represents that, in executing this release, he or she has not relied on any inducements, promises,or representations made by a party representing or serving another party.DEFENDANTS:
Dated: // ^}n^ X.^.
Y /) ^!T". ^^(t^C'iiU.
ERRIGAN MAHAN
MELANIE WILLIjyMS-MAHAN
Dated:///9 ,2 ^^ ;L.
DatedDated:Dated:
: ,1- °) -Z^2^
) ) -)0-^2-
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VICKI MCDONALD
SETTLEMENT AGREEMENT AND
RELEASE OF ALL CLAIMS
MBV:
MORRO BAY VENTURES, LLC, a California limited liability companyBy: Grupe Huber Company (previously known as "Grupe Commercial Company") a California Corporation, it's Manager
By: Kevin Huber, President
Dated: Cv)<^£/ie^ /7 2.0 2-^
SETTLEMENT AGREEMENT AND
RELEASE OF ALL CLAIMS
1 RECORDING REQUESTED BY and WHEN RECORDED,
PLEASE RETURN TO
City of Morro Bay
Public Works Department Morro Bay,
CA 93442
Ph: (805) 772‐6261
NOTICE OF ADDITIONAL INFORMATION
Building Permit #___Tract 2859 and G22-0002________________________(for office use–staff to provide) PropertyAddress: 2783 Coral Avenue, Morro Bay CA 9344
PropertyAPN: 065-386-015 Permit/Project#: G22-0002
Property Legal Description: Lot 124 of Tract 1996 According to the Map recorded in Book 17 of Maps at
December 26 1997
Owner ofthe aforesaid property does here by give
CONSTRUCTIVENOTIFICATION
For Private Stormwater Management System
Operations and Maintenance
The Applicant (Individual, Married Person, a HOA, A for Profit, or non‐Profit Corporation), herein after referred to as “OWNER” of the real property referenced above, hereby required by existing City codes and regulations to utilize “on‐ site stormwater management systems (i.e. structural and/or non‐structural) to minimize runoff and pollutants in runoff and to provide permanent storm drainage to control, manage, retain, treat, infiltrate and dispose of” (1) “on‐site storm drainage for the Project” and (2) “ancillary street and site drainage from the adjoining street and sites” as stipulated in the approved project plans and contained within the required Stormwater Management System Operations & Maintenance Plan.
The Owner is solely responsible for the Private Stormwater Management System, hereinafter referred to as “SYSTEM” and attached as Exhibit “A”. The Owner agrees to the following conditions in compliance with all local, state, federal laws and regulations:
1. MAINTENANCE: OWNER shall maintain, monitor, inspect, clean and repair the SYSTEM as required in Exhibit “A” – Post Construction Stormwater Management System Operations & Maintenance Plan.
2. DOCUMENT & REPORT: OWNER shall document all maintenance, monitoring, inspections, cleanings and repairs made to the SYSTEM in the annual report submitted to the City by June 15th of each year in the form as approved by the City as detailed in Exhibit “B” – Post Construction Stormwater Management System Operations & Maintenance Checklist.
3. CITY RIGHTS & AUTHORITY: the City has the right and authority to inspect the SYSTEM to determine compliance with this constructive notification (i.e. maintenance, monitoring, inspections, cleanings, repairs, documentation and
[email protected]
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7 Page 155 of 266
6 PART 3 – Certification
I certify the information provided in EXHIBIT A – Post Construction Stormwater Management System Operations & Maintenance Plan and EXHIBIT B – Post Construction Stormwater Management System Operations & Maintenance Checklist to be true and correct.
Preparer (Print Name) Signature Date
Perry McBeth, PE 90,377 11/25/2025
9
7 EXAMPLE TEMPLATE
City of Morro Bay
For Private Stormwater Management System Operations and Maintenance EXHIBIT B – Post Construction Stormwater Management System Operations & Maintenance Checklist
The following TEMPLATE shall be tailored to the Project SCMs and submitted with EXHIBIT A – Post Construction Stormwater Management System Operations & Maintenance Plan for approval. Remove all unnecessary text or instructions such as‘EXAMPLE’ prior to submission. Contact the City for electronic forms.
Completed forms shall be submitted annually by June 15th to:
City of Morro Bay
Public Works Department [email protected]
955 Shasta Ave. Subject: Annual Reporting Requirement
I
certify the provided information to be true and correct and that the Structural Stormwater Control Measures (SCMs) on my property have been maintained, monitored, inspected, cleaned and repaired as required in EXHIBIT A – Post Construction Stormwater Management System Operations & Maintenance Plan.
General Information
Property APN(s):
Project Address(es):
Owner:
Address:
Phone: Email:
Report Year:
Inspector(s)
(First & Last Name, Initials):
Date of Inspection(s):
SCM Number(s) Inspected:
Owner Inspecting Party Representative
Licensed Civil Engineer or QSP No._
Printed Name Printed Name
Signature Signature
Date Date
9
8 During thisreporting period (check all that apply):
Completed inspections as required in EXHIBIT A – Post Construction Stormwater Management System Operations & Maintenance Plan
Completed required short and long term maintenance as required in EXHIBIT A Completed corrective action(s) per the inspection (if applicable) Updated the EXHIBIT A - Post Construction Stormwater Management System O&M Plan to reflect revised site conditions. (Attach any updates.) No spills or system upsets occurred on site.
Cleaned all spills promptly and reported the spill as required. *For all site spills, list spill date, content, volume and resolution:
*For all site spills, list spill date, content, volume and resolution:
Date Content Volume Resolution Inspector’s
Initials
10
9 Property APN: SCM # Page of
EXAMPLE 1: Biofiltration Areas /Swales
Inspection and Maintenance Checklist
Inspected by
(Print Name,
Initials):
If multiple, list all.
Report Year:
Areas Inspected:
(see SCM location map in
Post Construction
Stormwater
Management System
Operations &
Maintenance Plan)
If corrective action is
required AND a
re-inspection is
warranted, indicate
Re-check date:
Inspection frequency key: A = Annually on (Specify Date, i.e. October 15th) of each year, M = Monthly, S = after major storm events
Inspection Items
InspectionFrequency
Date
Inspected
Inspectors
Initials
Maintenance
Needed?(Yes/No)
Comments/Description
Is there standing water longer than 1 week
after a storm event? S
Evidence of erosion? S
Vegetation appropriate and healthy? A
Area free of debris? M
Inlets free of obstructions? M
Is there obviously trapped sediment in
need of removal (covers vegetation or
greater than 3-inches at any spot)?
A
Inspector comments: (Use additional sheets or back of this sheet if more room is necessary, include Inspector’s initials.) Corrective Action Needed Due Date
The next routine inspection for approximately:
Overall condition of facility: Acceptable Unacceptable
11
10 Property APN: SCM # Page of
EXAMPLE 2: Catch Basin(s)
Inspection and Maintenance Checklist
Inspected by
(Print Name,
Initials):
If multiple, list all.
Report Year:
Areas Inspected:
(see SCM location map in
Post Construction
Stormwater
Management System
Operations &
Maintenance Plan)
If corrective action is
required AND a
re-inspection is
warranted, indicate
Re-check date:
Inspection frequency key: A = Annually on (Specify Date, i.e. October 15th) of each year, M = Monthly, S = after major storm events
Inspection Items
InspectionFrequency
Date
Inspected
Inspector’ s
Initials
Maintenance
Needed?(Yes/No)
Comments/Description
Inlets free of obstructions? A
Basins free of obstructions, debris
(vegetation)? A
Drainage area & slopes leading to
catch basin free of sediment &
debris?
A
Is there obviously trapped
sediment in need of removal
(greater than 3 inches)?
A
Inspector comments: (Use additional sheets or back of this sheet if more room is necessary, include Inspector’s initials. ) Corrective Action Needed Due Date
The next routine inspection for approximately:
Overall condition of facility: Acceptable Unacceptable
12
13
14
15
16
Prepared By: _JB____ Department Review: __GK__
City Manager Review:___AL____ City Attorney Review: ___BS____ Staff Report
TO: Honorable Mayor and City Council DATE: December 4, 2025 FROM: Greg Kwolek – Public Works Director
SUBJECT: Fiscal Year 2026 Quarter 1 Water Reclamation Facility (WRF) Program Quarterly Report
RECOMMENDED ACTION
Receive and file the Fiscal Year (FY) 2026 Quarter 1 Report for the period July through September 2025 for the Water Reclamation Facility (WRF) Program.
DISCUSSION
The purpose of the WRF Program Quarterly report is to provide project status updates on schedule, budget, key activities, and critical path items as they relate to the WRF program. While the report is intended to focus on the Recycled Water project, it also contains historical information regarding budget and funding for the overall WRF Program. The FY 2026 Quarter 1 Report includes information on project activities between July 1, 2025, and September 30, 2025.
Staff brought the WRF quarterly report to the Public Works Advisory Board (PWAB) at a special meeting on Tuesday, November 25, 2025. Members of the PWAB reviewed the report and asked questions of the project team, which were answered.
ATTACHMENTS
1. FY 2026 Quarter 1 WRF Program Quarterly Report
AGENDA NO: 6.e
MEETING DATE: December 9, 2025
JULY 31, 2025 1
City of Morro Bay
Water Reclamation Facility Program
QUARTERLY REPORT
JULY 1, 2025 THROUGH SEPT 30, 2025
INTRODUCTION
The Recycled Water Facilities (RWF) project is a portion of the larger Water Reclamation Facility (WRF) Program. The RWF project is anticipated to be complete by early 2028. This quarterly report includes updates on project status, schedule, program funding, and program budget. The current program budget is $159.84 million and $146.98 million has been spent to date.
RECYCLED WATER PROJECT STATUS
The RWF project is currently in the design phase and the following activities were completed during this quarter:
Recycled Water Project Status Update (July 1, 2025 – Sept 30, 2025) • Environmental/Permitting
o Activities completed
From August 18-21, 2025 additional Phase 3 (Recycled Water Facilities) archeological investigations were completed for the proposed Indirect Potable Reuse (IPR) pipeline alignment. The preliminary results of the testing were negative.
During this quarter, the Project Team updated the Environmental Assessment (EA) based on feedback received on updated language preferences from the current administration.
o Ongoing activities and upcoming timelines
The project archeologist began preparing the Phase 3 Report Addendum for the EPA/SHPO to incorporate the additional Phase 3 testing results. The City is waiting to receive feedback from USBR on the National Environmental Policy Act (NEPA) Environmental Assessment (EA) and is anticipating it will be circulated for public review in 2026. During this quarter, the City continued to coordinate with the EPA on a potential Biological Opinion (BO) amendment to include the expanded project area that was not previously included in the original BO and additional potentially listed species, including the proposed threatened Southwestern Pond Turtle and the candidate Monarch Butterfly.
• Recycled Water Permitting
QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY NOVEMBER 1, 2025 2
o Ongoing activities and upcoming timelines
On August 29, 2025 the Division of Drinking Water (DDW) provided preliminary feedback on the Engineering Report. Formal feedback is anticipated in early October. The City began preparing responses to the preliminary feedback received.
During this quarter, the City prepared an Updated Agricultural Mitigation Program to incorporate the Chorro Levee Project, as directed by Council at the August 12, 2025 City Council meeting. The City is continuing to coordinate with Coastal Commission while finalizing the Updated Program. The Basis of Design Report (BOD), attached to the Draft Title 22 Engineering Report, will continue to be updated as more hydrogeologic data becomes available throughout the project.
On September 15, 2025 the Report of Waste Discharge (ROWD) Application was submitted to the Centra Coast Water Quality Board via GeoTracker. • Engineering Design
o Ongoing activities and upcoming timelines
During this quarter, the project design engineer progressed toward completion of design plans for injection well equipping and recycled water pipelines. • Hydrogeologic Analysis and Design
o Activities completed
During this quarter, the City finalized an Injection Well Siting Technical Memorandum and continued to work towards selecting the sites for the initial two injection wells. The City determined locations for additional hydrogeological testing (Cone Penetration Testing) and began preparing the permitting applications.
During this quarter, the project hydrogeologist continued siting the recycled water monitoring wells. The City is in the process of coordinating with DDW for approval the proposed sites.
During this quarter, the City continued to coordinate with the property owner of the potential injection well sites.
During this quarter, the Project hydrogeologist prepared the combined quarterly/annual report required under the City’s ASR permit. o Ongoing activities and upcoming timelines
During this period, the project hydrogeologist continued to evaluate which injection well locations are most favorable from a hydrogeological perspective and preparing the design of the downhole components of the injection wells. Hydrogeological investigations (Cone Penetration Testing) are scheduled for October 2025 for potential injection well locations.
The City is anticipating formally proposing monitoring well locations to DDW in October 2025.
• Funding/Financing
o Activities completed
On September 4, 2025, the fully executed IRWM grant agreement was received.
QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY NOVEMBER 1, 2025 3
The City prepared and submitted the Water Infrastructure Finance and Innovation Act (WIFIA) Funding and Financing Quarterly Report. The City prepared and submitted the Integrated Regional Water Management (IRWM) Funding and Financing Quarterly Report.
o Ongoing activities and upcoming timelines
City Staff and the Recycled Water Program Team are coordinating with the funding financing agencies to provide quarterly reports, environmental documentation, and other required documentation.
The City continued coordination with the Bureau of Reclamation on finalizing the NEPA EA for the Title XVI Grant. The City is anticipating submitting for reimbursements in early 2026.
JULY 31, 2025 4
RECYCLED WATER PROJECT SCHEDULE
Figure 1. Recycled Water Summary Schedule
NOVEMBER 1, 2025 5
PROGRAM BUDGET
Table 1 lists actual expenditures for each program component and the percent of the budget expended. The WRC and Conveyance Facilities components of the project were closed out in 2024.
Table 1. WRF Program Expenditures
Program
Component
Previous
Total
Expenditures
July-Sept 2025
Expenditures (1)
Total Expenditures
To Date Program Budget
Percent
Budget
Expended
RWF $2,952,596 $358,445 $3,311,042 $9,424,174 31%
General Project $24,741,485 $120,468 $24,861,953 $30,968,609 80% WRC Plant $77,895,236 $0 $77,895,236 $79,123,216 98%
Conveyance $40,910,415 $2,209 $40,912,624 $40,324,350 101% Total $146,499,732 $481,121.91 $146,980,854 $159,840,349 92% (1) July-Sept 2025 total expenditures as tallied on the Accounts Payable Report run on July 8, 2025, including all invoices accrued through Sept 30, 2025. This quarter’s expenditures includes $149,670.79 in costs from the previous FY, as several invoices were not processed in time to account for in the previous quarter’s report.
(3) Although the Conveyance budget has been closed out, an invoice for Phase 2 archeological testing (conveyance) sample processing was received this quarter
PROGRAM FUNDING
Table 2. WRF Program Funding Sources
Funding Agency(1) Funding Type Total Funding Spent to Date Funding Available Notes
SRF Construction
Loan Loan $66,604,638 $64,910,849 $1,693,789 Terms: 0.9%, 30 years SRF Loan
Forgiveness
Loan
Forgiveness N/A N/A N/A $5M
SRF Construction
Loan Amendment Loan $21,172,000 $0 $21,172,000 Terms: 0.9%, 30 years WIFIA Loan $61,700,336 $46,259,157 $15,441,179 Terms: 0.83%, 35 years
SRF Planning Loan Loan $10,300,000 $10,300,000 $0 Terms: 0.9%, 30 years
Recycled Water
Planning Grant Grant $75,000 $75,000 $0
Costs reimbursed
upon request
USBR - Title XVI Grant $9,310,095 $0 $9,310,095
Executed
Agreement
IRWM Grant $1,200,000 $0 $1,200,000 Recently Executed
Agreement
City of Morro Bay Water/Sewer
Fund $25,435,848 $25,435,848 $0 Subject to loan reimbursement All Sources Total $195,797,917 $146,980,854 $48,817,063 (1) Abbreviations: SRF – State Revolving Fund; EPA – Environmental Protection Agency; WIFIA – Water Infrastructure Finance & Innovation Act; USBR – United States Bureau of Reclamation; IRWM – Integrated Regional Water Management.
QUARTERLY REPORT | WATER RECLAMATION FACILITY PROGRAM | CITY OF MORRO BAY NOVEMBER 1, 2025 6
OTHER PROGRAM UPDATES
WWTP Decommissioning
• While the City had intended to complete the Phase 4 (WWTP Decommissioning) archeological investigations at the same time as the Phase 3 (Recycled Water Facilities) investigations in August 2025 to save on mobilization costs, the City was not able to conduct investigations at this time. Consent from Cayucos Sanitary District (CSD) was required to complete these investigations on the jointly-owned property, and CSD did not grant permission at this time, as negotiations regarding the other aspects of decommissioning are still ongoing. • The new timeline for the archeological investigation is to be determined but is anticipated to be done prior to March 2026. The City is currently coordinating with CSD and the project archeologist to reschedule these investigations.
Extraction Well Siting
• On August 20, 2025 the City received variances from DDW on a potential extraction well location for a sanitary seal depth less than 50-feet and for the 50-foot control zone. • During this quarter, the City continued to coordinate with property owners on the potential extraction well locations.
• Hydrogeological investigations (Cone Penetration Testing) are scheduled for October 2025 for a potential extraction well locations.
Historical information on the WRF Program and previous quarterly reports are available on the program website: https://morrobaywrf.com/.
Prepared By: ____EC______ Dept Review: ____EC__
City Manager Review: __AL____ City Attorney Review: __BS___ AGENDA NO: 6.f
MEETING DATE: December 9, 2025
Staff Report
TO: Honorable Mayor and City Council DATE: November 25, 2025 FROM: Emily Conrad, Finance Director
SUBJECT: Fiscal Year (FY) 2024-25 Status Report on Receipt and Use of Development Impact Fees (Annual Report and Five-Year Findings re Unexpended Funds)
RECOMMENDED ACTION
Adopt Resolution No. 63-25 accepting the Fiscal Year (FY) 2024-25 status report on receipt and use of Development Impact Fees.
FISCAL IMPACT
There is no fiscal impact associated with the requested action.
BACKGROUND/DISCUSSION
To ensure that mitigation fees associated with development are spent in a timely manner and on projects for which they were being collected, the State Legislature passed a bill known as AB 1600 (the Mitigation Fee Act). This bill applies to developer fees which were increased or imposed on or after January 1, 1989.
The Mitigation Fee Act (California Government Code, Section 66000 et seq.) requires local agencies that impose Development Impact Fees to present an annual, consolidated report showing the receipt and use of those fees. The Annual Status Report on Receipt and Use of Development Impact Fees (Attachment 1) must be available for review by the Council within 180 days after the close of the fiscal year represented. The AB 1600 report is required to be accessible to the public for viewing at least 15 days prior to the public meeting. In accordance with this legal requirement, the report for FY 2024-25 (July 1, 2024 to June 30, 2025) was posted to the City’s website November 26, 2025.
The City collects the following Development Impact Fees that are subject to the AB 1600 reporting requirements:
Government Impact Fees (Fund 900)
o General Government (Administration)
o Police
o Fire
o Traffic (Streets)
o Storm Drain
o Parks
Affordable Housing In-Lieu Fees (Fund 941)
Water Impact Fees (Fund 921)
Sewer Impact Fees (Fund 922)
Miscellaneous Impact Fees (Fund 515)
o Highway 41/Main Impact
o Traffic Impact
o Sewer Master Plan Impact
o Flood Hazard Plan Impact
o Calvary Baptist Drain Impact
Separate balances exist for each of these fees either as individual accounts or separate funds.
As required by AB 1600, as of June 30, 2025, all accounts or funds with unspent balances have been credited interest revenue at the City’s current interest rate earned on its total investment portfolio.
AB 1600 requires that a status report be prepared annually which must include a brief description of the fee and the fund into which the fee was deposited; the associated fund’s beginning and ending balances for the fiscal year; the total amount of the fees collected and interest earned; each public improvement on which impact fees were expended and amount of the expenditure on each improvement; and other information about the public improvement projects or interfund loans, if applicable.
In addition to annual report information, Government Code section 66001, subdivision (d) of the Mitigation Fee Act mandates the requirement that beginning with the fifth fiscal year following deposit of development fees into a designated account, and each fifth fiscal year thereafter, the City must make specified findings regarding any portion of the fees that remain unexpended.
The information is presented in the attached FY 2024-25 Annual Status Report on Receipt and Use of Development Impact Fees (Attachment 1) and resolution of specified findings (Attachment 2).
CONCLUSION
Staff recommends Council adopt Resolution No. 63-25 and accept the FY 2024-25 Annual Status Report on Receipt and Use of Development Impact Fees as required under the Mitigation Fee Act (AB 1600).
ATTACHMENT(S):
1. Annual Status Report on Receipt and Use of Development Impact Fees for FY 2024-25
2. Resolution No. 63-25 making findings for unexpended Development Impact Fees and accepting the FY 2024-25 Annual Status Report on Receipt and Use of Development Impact Fees
1 CITY OF MORRO BAY
ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES JUNE 30, 2025
Government Impact Fees
Government Impact Fees are collected to ensure that new development pays the cost of infrastructure expansion required to meet the needs of that new development, effectively transferring the cost burden of growth from the existing rate and taxpayers.
The collected fees are held in fund 900, Government Impact Fees Fund. They can be used for capital projects for new facilities, vehicles, and rehabilitation and/or renovation of existing facilities, so long as the rehabilitation or renovation increases service capacity.
Corrections to prior years were made to bring the report in balance with the fund balance. Discrepancies in Administration, Police, Fire, and Street Fees are due to cumulative errors in interest earnings distributions. In Storm Drain Fees, expenditures exceeded revenues for three consecutive years; when unspent funds that had been allocated to projects were returned to this fund in FY 2023-24, the existing deficit was not accounted for, resulting in an overstatement of the balance as of 6/30/2024. That is corrected here by reducing the reported balance by $31,648 and presenting the accurate available balance of $25,598 in Storm Drain Fees. In Parks Fees, there was a clerical error in the beginning balance at 7/1/2023, erroneously reducing the beginning balance by $17,000. Additionally, unspent funds that had been allocated to projects were returned to this fund in FY 2023-24. Finally, there were corrections to the cumulative errors in interest earnings distributions. The correction of $40,785 results in the presentation of the accurate available balance of $174,616 in Parks Fees.
Potential future projects are provided below. These projects are listed as eligible for funding through development impact fee revenue and not as a statement that development impact fee revenue will be used to fund them. These projects may or may not be approved in the City’s current or future budget(s).
Any budgeting and/or expenditure of development impact fee revenue would require advance Council authorization and approval.
Beginning Fund Cash Balance FY 2024-25 (07/01/2024) 1,025,342 Bal Fees Interest Correction to Fees Remaining
7/1/2024 Collected Earned Prior Years Used Balance
Administration Fees $ 727,350 $ 67,421 $ 12,512 $ (856) $ 58,890 $ 747,537 Police Fees $ 25,942 $ 22,107 $ 4,103 $ 4,219 $ - $ 56,371 Fire Fees $ 30,504 $ 24,137 $ 4,479 $ (958) $ 39,309 $ 18,853 Street Fees $ 136,315 $ 106,926 $ 19,844 $ 5,027 $ - $ 268,112 Storm Drain Fees $ 53,906 $ 2,817 $ 523 $ (31,648) $ - $ 25,598 Parks Fees $ 51,325 $ 69,591 $ 12,915 $ 40,785 $ - $ 174,616 $ 1,025,342 $ 292,999 $ 54,377 $ 16,568 $ 98,199 $ 1,291,087 Uses of Funds
Interfund Transfer to General Fund for Development Impact Nexus & Fee Study (100% Cost of Study) $ 58,890 Interfund Transfer to Bonita Fire Station Remodel (89% Cost of Design Project) $ 39,309 Total Use of Funds $ 98,199
Total Ending Balance FY 2024-25 (06/30/2025) $ 1,291,087
2 Government Impact Fees Potential Future Projects
Fund 900
Potential Future Projects Total Funds Available
Administration Fees
City Administration Facility improvements TBD
Total Potential Admin Projects $ - $ 747,537
Police Fees
Radio Communications Upgrade $ 1,588,435
Total Potential Police Projects $ 1,588,435 $ 56,371
Fire Fees
Bonita Fire Station Remodel TBD
Total Potential Fire Projects $ - $ 18,853
Street Fees
Local Road Safety Plan Implementation and $ 300,000
Safety Improvement
Total Potential Street Projects $ 300,000 $ 268,112
Storm Drain Fees
Storm Drain Improvements $ 300,000
Storm Drain Assessment $ 1,095,200
Total Potential Storm Drain Projects $ 300,000 $ 25,598 Parks Fees
Multiple Parks Improvements TBD
Total Potential Parks Projects $ - $ 174,616
Total Potential Future Projects $ 2,188,435 $ 1,291,087
3 Affordable Housing In-Lieu Fees
Affordable Housing In-Lieu Fees are collected from residential development projects when the construction of affordable housing units is impractical. The required in-lieu fee is to be paid to the City prior to the issuance of a building permit (where square footage is added) or a final tract map. The Affordable Housing In-Lieu Fee is $0.45 per square foot. The collected fees are held in the 941 fund and used solely for the affordable housing program activities, such as the Housing Element development and implementation, or transfer to another public agency for providing affordable housing in the City.
Sewer Impact Fees
Pursuant to Government Code, revenues derived from the City’s impact fees can only be used for the purpose for which the charges are collected. Wastewater impact fees recover costs for buying in to existing facilities and assets. As such, this share of each fee represents a reimbursement to the City’s existing customer base for previously funded facilities and may potentially be used for any purpose.
However, the City’s practice is conservative and uses these fees to exclusively fund capital improvements.
The collected fees are held in the 922 fund and are used solely for wastewater capital improvements.
Fund 941
Beginning Fund Cash Balance FY 2024-25 (07/01/2024) $ 162,146 Sources of Funds
Bal Fees Interest Fees Remaining
7/1/2024 Collected Earned Used Balance
$ 162,146 $ 17,627 $ 10,281 $ - $ 190,054
Uses of Funds
No Funds Used in FY 2024-25 $ -
Total Use of Funds $ -
Total Ending Balance FY 2024-25 (06/30/2025) $ 190,054
Potential Future Projects
Local Housing Agency or affordable housing/homelessness project $ 55,000 7th cycle Housing Element Update $ 125,000
Total Potential Projects $ 180,000
Affordable Housing in-Lieu Fees
Fund 922-5251-3950
Beginning Fund Cash Balance FY 2024-25 (07/01/2024) $0.00 Sources of Funds
Bal Fees Fees Remaining
7/1/2024 Collected Used Balance
$ - $ 97,546 $ 97,546 $ -
Uses of Funds
Interfund Transfer to WRF Capital Project $ 97,546
Total Use of Funds $ 97,546
Total Ending Balance FY 2024-25 (06/30/2025) $0.00
Potential Future Projects
Beachcomber Sewer Improvements $ 6,200,000
Total Potential Projects $ 6,200,000
Sewer Impact Fees
4 Water Impact Fees
Pursuant to Government Code, revenues derived from the City’s impact fees can only be used for the purpose for which the charges are collected. Water impact fees are designed to recover the cost of existing water system facilities and assets as well as the cost of system upgrades and expansion needed to serve the City. The collected fees are held in the 921 fund and are restricted to be used solely for water system facilities, assets and system upgrades and expansion.
Trust & Agency Fund Impact Fee Revenues
The city has historically used the Trust & Agency fund (fund 515) to hold funds with restricted purposes.
Three impact fees remain in the Trust & Agency fund: traffic impact, sewer master plan impact, and flood hazard plan impact. In addition, previous years balances exist for the Highway 41/Main Impact, Storm Drain Impact and Calvary Baptist Drain Impact. These funds are restricted to use of related projects and improvements.
921-5240-3950
Beginning Fund Cash Balance FY 2024-25 (07/01/2024) $0.00 Sources of Funds
Bal Fees Fees Remaining
7/1/2024 Collected Used Balance
$ - $ 97,184 $ 97,184 $ -
Uses of Funds
Interfund Transfer to WRF Capital Project $ 97,184
Total Use of Funds $ 97,184
Total Ending Balance FY 2024-25 (06/30/2025) $0.00
Potential Future Projects
Nutmeg Tank and other Pressure Zone Improvements $1,800,000 Morro Basin Wellfield Improvements $1,250,000
Total Potential Projects $3,050,000
Water Impact Fees
Fund 515
Beginning Fund Cash Balance FY 2024-25 (07/01/2024) $119,082 Sources of Funds
Bal Fees Fees Remaining
7/1/2024 Collected Used Balance
Highway41/Main (2600) $ - $ - $ - $ -
Traffic Impact/All Sources (2607) $ 49,973 $ - $ - $ 49,973 Storm Drain (2613) $ 14,374 $ - $ - $ 14,374
Calvary Baptist Drain Impact ( 2616) $ 314 $ - $ - $ 314 Sewer Master Plan (2622) $ 51,073 $ - $ - $ 51,073
Flood Hazard Plan ( 2740) $ 3,348 $ 855 $ - $ 4,203
$ 119,082 $ 855 $ - $ 119,937
Uses Of Funds
No Funds Used in FY 2024-25 $0
Total Use of Funds $0
Total Ending Balance FY 2024-25 (06/30/2025) $119,937
Trust & Agency Impact Fees
5 Potential future projects are provided below. These projects are listed as eligible for funding through development impact fee revenue and not as a statement that development impact fee revenue will be used to fund them. These projects may or may not be approved in the City’s current or future budget(s).
Any budgeting and/or expenditure of development impact fee revenue would require advance Council authorization and approval.
Potential Future Projects Funds Available
Traffic Impact/All Sources $ 49,973
Pavement Improvement Project $ 5,000,000
Potential Future Projects $ 5,000,000 $ 49,973
Storm Drain Impact $ 14,374
Storm Drain Improvements Citywide $ 1,000,000
Potential Future Projects $ 1,000,000 $ 14,374
Calvary Baptist Drain Impact $ 314
Local Road Safety Plan Plan Impementation and Safety Improvements $ 367,000 Potential Future Projects $ 367,000 $ 314
Sewer Master Plan Impact
One Water Plan Update $ 190,000 $ 51,073
Potential Future Projects $ 190,000 $ 51,073
Flood Hazard Plan Impact $ 4,203
Storm Drain Improvements Citywide $ 1,000,000
Potential Future Projects $ 1,000,000 $ 4,203
Total Potential Future Projects & Available Funds $ 7,557,000 $ 119,937
01181.0005/858454.1
RESOLUTION NO. 63-25
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF M O R R O B AY, C AL I F O R N I A
MAKING FINDINGS FOR UNEXPENDED DEVELOPMENT FEES
AND REVIEWING AND ACCEPTING ANNUAL DEVELOPMENT FEE
DISCLOSURE INFORMATION IN ACCORDANCE WITH GOVERNMENT
CODE SECTIONS 66001 AND 66006
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Mitigation Fee Act, Government Code Section 66000 et seq., authorizes the City to impose, collect, and expend mitigation fees to offset the impacts of development within the City; and
WHEREAS, among the procedural requirements mandated by the Mitigation Fee Act is a requirement that beginning with the fifth fiscal year following deposit of development fees into a designated account, and each fifth fiscal year thereafter, the City make specified findings regarding any portion of the fees that remain unexpended; and WHEREAS, the City has deposited all development impact fees that it has received in a separate non-commingled capital facilities fund established for such a purpose, pursuant to Government Code Sections 66006(a) and (b); and WHEREAS, a portion of the fees currently deposited in the City’s Development Impact Fund for General Government (Administration), and a portion of the fees currently deposited in the City’s Trust and Agency Fund for Traffic, Storm Drain, Calvary Baptist Drain, Sewer Master Plan, and Flood Hazard Plan, remain unexpended the fifth fiscal year following receipt of the fee(s), and therefore the City wishes to make the findings required by Government Code Section 66001(d); and
WHEREAS, the City also wishes to memorialize that it has made public certain information, pursuant to the annual information disclosure requirements of Government Code Section 66006(b), including but not limited to the amount of the fee, the beginning and ending balance of the fee account or fund, and the interest earned thereon, available to the public at least fifteen (15) days before the City Council considers this matter. The information required by Government Code Sections 66001 and 66006 is set forth in the FY 2024-25 AB1600 Annual and Five-Year Report: City of Morro Bay (“Development Impact Fee Report”) considered concurrently herewith; and
WHEREAS, on November 26, 2025, the information in the above-referenced recital was made available to the public as required by Government Code Section 66006(b); and WHEREAS, on December 9, 2025, the above-referenced recitals were presented to City Council at a duly noticed, regularly scheduled public meeting.
NOW, THEREFORE, the City Council of the City of Morro Bay hereby finds, determines, and resolves as follows:
Section 1. The recitals set forth above are true and correct and are incorporated herein by reference.
01181.0005/858454.1 2
Section 2. The City Council has considered the full record before it, which may include but is not limited to the staff report, the Development Impact Fee Report, testimony by staff and the public, and other materials and evidence submitted or provided.
Section 3. The City Council finds that $414,793.84 in the General Government (Administration) Development Impact Fee Fund remains unexpended the fifth fiscal year following the receipt of the fee(s). In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
A. Additional funds are needed to expand city administration facilities.
B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because expanded City facilities are required to accommodate the additional service needs associated with the properties that paid these fees.
C. The estimated total cost of expanded administrative facilities such as City Hall, City Hall Annex, other administrative office space, or future property acquisitions for use as administrative office space, is anticipated to exceed the $1.6 million identified in the previous nexus study due to inflation and is being reviewed under the forthcoming comprehensive nexus study update. The estimated total cost will be further refined and other anticipated funding such as grant funding or general fund sources identified through project development and implementation in accordance with City budgeting and procurement policies. The City’s funding sources will include unexpended Development Impact Fees of $414,793.84, future fees, and other available capital funding sources.
D. The unexpended fees were deposited in the Administration Development Impact Fees Fund, which is the appropriate fund to finance administrative facilities. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds are expected to be deposited into the appropriate account or fund for expenditure is 2026.
Section 4. The City Council finds that $49,972.98 in the Traffic Development Impact Fee Fund remains unexpended the fifth fiscal year following receipt of the fee(s). In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
A. Additional funds are needed to design and implement traffic improvements to mitigate impacts of new development.
B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements will mitigate impacts of development of the properties that paid these fees.
C. The estimated total cost of traffic improvements at Quintana and Main is anticipated to be $1.15 million. The City’s funding sources will include unexpended Development Impact Fees of $49,972.98, future fees, and other available capital funding sources.
D. The unexpended fees were deposited in the Traffic Development Impact Fees Fund, which is the appropriate fund to finance these traffic improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds are anticipated to be deposited into the appropriate
01181.0005/858454.1 3
account or fund for expenditure is 2026.
Section 5. The City Council finds that $6,053.92 in the Storm Drain Development Impact Fee Fund remains unexpended the fifth fiscal year following receipt of the fee(s). In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
A. Additional funds are needed to design and improve the City’s storm drain facilities to accommodate new development.
B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the storm drain improvements will mitigate impacts of development from the properties that paid these fees.
C. The estimated total cost of the Storm Drain Assessment Project is $1.4 million. The City’s funding sources will include unexpended Development Impact Fees of $6,053.92, future fees, and other available capital funding sources.
D. The unexpended fees were deposited in the Storm Drain Development Impact Fees Fund, which is the appropriate fund to finance storm drain improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds are anticipated to be deposited into the appropriate account or fund for expenditure is 2026.
Section 6. The City Council finds that $314.36 in the Calvary Baptist Drain Development Impact Fee Fund remains unexpended the fifth year following receipt of the fee(s). In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
A. Additional funds are needed to design and improve the storm drain system impacting the Calvary Baptist area.
B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements to the storm drain will help mitigate the impact from development of the properties that paid these fees.
C. The estimated total cost of the Storm Drain Assessment Project is $1.4 million. The City’s funding sources will include unexpended Development Impact Fees of $314.36, future fees, and other available capital funding sources.
D. The unexpended fees were deposited in the Calvary Baptist Storm Drain Development Impact Fees Fund, which is the appropriate fund to finance this storm drain improvement. The approximate date by which the above Development Impact Fee funds are anticipated to be deposited into the appropriate account or fund for expenditure is 2026.
Section 7. The City Council finds that $51,072.58 in the Sewer Master Plan Development Impact Fee Fund remains unexpended the fifth year following receipt of the fee(s).
In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
A. Additional funds are needed to update the City’s Sewer Master Plan.
01181.0005/858454.1 4
B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the Sewer Master Plan will positively impact the properties that paid these fees.
C. The estimated total cost of Sewer Master Plan will be one component of the forthcoming update to the One Water Plan. The City’s funding sources will include unexpended Development Impact Fees of $51,072.58, future fees, and contributions from the Sewer Operating Fund.
D. The unexpended fees were deposited in the Sewer Master Plan Development Impact Fees Fund, which is the appropriate fund to finance the Sewer Master Plan development. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds are anticipated to be deposited into the appropriate account or fund for expenditure is 2026.
Section 8. The City Council finds that $2,610.00 in the Flood Hazard Development Impact Fee Fund remain unexpended five years following receipt of the fee(s). In accordance with Government Code section 66001(d)(1), the City Council finds as follows:
A. Additional funds are needed to improve flood hazard areas in the city.
B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements to the flood hazard areas will help mitigate impacts from development of the properties that paid these fees.
C. The estimated total cost of Storm Drain Assessment Project is $1.4 million. The City’s funding sources will include unexpended Development Impact Fees of $2,610.00, future fees, and other available capital funding sources.
D. The unexpended fees were deposited in the Flood Hazard Development Impact Fees Fund, which is the appropriate fund to finance the improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds are anticipated to be deposited into the appropriate account or fund for expenditure is 2026.
01181.0005/858454.1 5
Section 10. In accordance with Government Code Section 66006(b), the City Council has reviewed and accepted the annual disclosure information made available to the public regarding City mitigation fees which was presented to the City Council and also placed on file with the City Clerk.
PASSED, APPROVED AND ADOPTED this 9
th day of December, 2025.
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
CARLA WIXOM, Mayor
ATTEST:
DANA SWANSON, City Clerk
Prepared By: ___CM_____ Dept Review: _____
City Manager Review: __AL_____ City Attorney Review: ___BS___ Staff Report
TO: Honorable Mayor and City Council DATE: December 2, 2025 FROM: Chris Munson, Harbor Vitality Director
SUBJECT: Authorization for Attendance and Award Acceptance for the CMANC Annual Washington, D.C., “Washington Week” Conference
RECOMMENDED ACTION
Accept grant of $10,000 from the Central Coast Joint Cable/Fisheries Liaison Committee to be used for attendance and travel expenses for the California Marine Affairs and Navigation Conference (CMANC) meetings in Washington DC and California.
Authorize up to a three-person delegation to attend the CMANC 2026 “Washington Week” Conference in Washington, D.C. slated for February 2026, and to represent the City’s interests in the nation’s capital. It is anticipated this may include the Mayor, the Harbor Vitality Director, and an alternative staff or Council Member.
ALTERNATIVES
Do not approve authorization for the “Washington Week” C-MANC delegation.
FISCAL IMPACT
The total hard costs, including conference registration, airfare, hotel, and incidentals for the “Washington Week” meetings are estimated at $2,500-3,000 per attendee. Two conferences are held in California each year and are estimated at $1,250-1,500 per attendee. The Harbor Department has been approved for a grant of $10,000 from the Central Coast Joint Cable Fisheries Liaison Committee for these conferences and their expenses.
BACKGROUND/DISCUSSION
CMANC annually hosts Washington Week conference, where representatives from California Ports and Harbors can advocate for federal funding and support for harbor related issues to Congress and other agencies. These issues include dredging, commercial fishing, shoreline protection, and other coastal-related issues in California. The City of Morro Bay is a long-standing member of CMANC, and for over 25 years has sent representatives to the “Washington Week” meetings.
The U.S. Army Corps of Engineers (USACE) dredges the entrance of Morro Bay Harbor annually at a cost of over $4 million. As a result of Washington DC attendance, which included interactions with Congressman Carbajal, the City and Harbor Department were successful in obtaining $14.5 Million to dredge the entire Harbor channel past the boat ramp during the 2023 trip to Washington D.C AGENDA NO: 6.g
MEETING DATE: December 9, 2025
Harbor Department staff has received confirmation that both the annual dredging ($4.4 million) and Morro channel dredging ($14.5 million) will be taking place in 2026. USACE has also begun looking into the status and repairs of the revetments in Morro Bay. Since Morro Bay cannot fund dredging of this scale or similar projects alone, continued attendance at CMANC conferences is of great importance.
The Central Coast Joint Cable/Fisheries Liaison Committee has generously awarded the Harbor Department $10,000 to attend CMANC Conferences. This award is a $2,000 increase from previous years and will allow for increased costs due to inflation and additional Harbor Staff attendance at Washington DC or California conferences.
The California conferences are held twice a year and are of great value, but for different reasons. The California conferences include presentations on various issues related to harbors including dredging, permitting, regulations, and marine construction. California-based USACE staff and other regulatory agency staff are in attendance. Attendees are given the opportunity to discuss issues with them as well as other attendees from California Ports and Harbors.
CONCLUSION
It is critically important for Morro Bay to continue its involvement in CMANC by sending delegates to Washington DC and attending conferences in California.
Staff recommends accepting the grant of $10,000 from the Central Coast Joint Cable/Fisheries Liaison Committee to be used toward attendance and travel expenses for California Marine Affairs and Navigation Conference (CMANC) meetings in Washington DC and California Authorize sending a delegation of up to three-persons to attend C-MANC’s “Washington Week” proceedings.
ATTACHMENT
None
Prepared By: ___XT____ Dept Review: ___AMS____
City Manager Review: __AL_____ City Attorney Review: ___BS______ Staff Report
TO: Honorable Mayor and City Council DATE: November 6, 2025 FROM: Airlin Singewald, Community Development Director
SUBJECT: Adoption of Resolution No. 64-25 Declaring Gulls at Bayshore Village have become so Numerous or Destructive as to Constitute a Menace and Danger to the Public Health, Safety or Property, and Therefore Providing an Exemption from Morro Bay Municipal Code Section 7.08.015 Authorizing the Homeowners Association to Haze and Harass Gulls, to Remove Gull Nests from their Property and to Carryout Addling of Gull Eggs
RECOMMENDED ACTION
Adopt Resolution No. 64-25 declaring the existence of Gulls at the Bayshore Village have become so numerous or destructive as to constitute a menace and danger to the public health, safety or property, authorizing an exemption for Bayshore Village from Morro Bay Municipal Code (MBMC) section 7.08.015, and authorizing the Homeowner’s Association’s request to haze and harass Gulls, to remove Gull nests from their property and carryout addling of Western Gull eggs.
ALTERNATIVES
Deny the request to allow the Bayshore Village Homeowner’s Association to haze and harass Gulls and to remove Gull nests from their property and carryout addling of Western Gull eggs.
FISCAL IMPACT
None.
SUMMARY
In November of 2025, Staff received a request from the Bayshore Village Homeowner’s Association (HOA) to extend the 2020 Council authorization to remove Gull nests from the roofs of the condominium units at Bayshore Village, and to expand the authorization to also allow the harassment and hazing of Gulls, and addling or Gull eggs. The City Council adopted Resolution No. 100-20 on November 17, 2020, finding the Gulls located within the Bayshore Village complex to be a public nuisance and thereby allowing removal of the Gull nests for a period of five years, expiring on December 31, 2025. (Resolution No. 100-20 is provided in Attachment 2). The Council approved the same request in 2010 and 2015.
AGENDA NO: 6.h
MEETING DATE: December 9, 2025
DISCUSSION/BACKGROUND
The HOA continues to experience problems with the number of nesting Gulls on the property. The HOA indicates that the guano damages roof shingles and creates a health hazard to residents.
Section 7.08.015 of the MBMC, allows the City Council, by Resolution, to determine that birds, otherwise protected by the chapter, have become so numerous or destructive as to constitute a danger or public health hazard, thereby allowing Council to approve measures to mitigate the issue.
Section 7.08.015 of the Municipal Code is provided below:
7.08.015 - Molesting wild birds—Nuisance remedies.
No person shall trap, shoot, hunt, molest, injure or kill any wild birds, or tamper, damage or destroy the nests or eggs of any wild birds within the city. Should the city council determine by resolution that birds protected under this chapter have become so numerous or destructive in any particular location or area as to constitute a menace and danger to the public health, safety or property, the council may provide for such remedies appropriate under the circumstances.
In addition to obtaining authorization from the City for removal of the Gull nests, The Bayshore Village HOA is also required to obtain a predation permit from the United States Fish and Wildlife Services (USFWS). The HOA has obtained such approvals in each of the past five years. The predation permits are typically good for one year, and copies of the permits covering the last five years are provided in Attachment 3 of the staff report. The USFWS permit allows for the addling of Gull eggs (coating the eggs in oil), nest destruction, while also promoting non-lethal harassment of Gulls. The HOA does undertake Gull harassment through use of whirly birds, spiders, spikes, bird wire, mylar tape, electrified tape, coiled wire, distress calls and use of laser lights. A condition is included in Resolution No. 64-25 requiring the HOA to provide copies of the USFWS predation permits to the City of Morro Bay Community Development Department. (See Attachment 1 for the condition).
CONCLUSION
The Gull issue at Bayshore Village has persisted for over 20-years and without City authorization, the HOA will have no ability to mitigate the adverse impacts from the large number of Gulls that nest in the area. Staff, therefore, recommends Council adopt Resolution No. 64-25 declaring the existence of the Gulls at Bayshore Village exempt from MBMC section 7.08.015.
ATTACHMENTS
1. Resolution No. 64-25
2. Resolution No. 100-20
3. Copies of USFWS Predation Permits for last 5 years
RESOLUTION NO. 64-25
A RESOLUTION OF CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
DECLARING THE EXISTENCE OF GULLS AT BAYSHORE VILLAGE HAVE
BECOME SO NUMEROUS OR DESTRUCTIVE AS TO CONSTITUTE A
MENACE AND DANGER TO THE PUBLIC HEALTH, SAFETY OR PROPERTY
AND FINDING BAYSHORE VILLAGE EXEMPT FROM MORRO BAY
MUNICIPAL CODE SECTION 7.08.015 AND AUTHORIZING THE
HOMEOWNERS ASSOCIATION TO HAZE AND HARASS GULLS AND
REMOVE GULL NESTS AND TO CARRY OUT ADDLING OF
GULL EGGS ON THEIR PROPERTY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the Morro Bay Municipal Code Section 7.08.015 states that it is unlawful to damage or destroy the nests or eggs of any wild birds, or harm wild birds, within the City unless the City Council determines by resolution that the birds protected by the Ordinance have become so numerous or destructive as to constitute a menace and danger to the public health, safety or property; and
WHEREAS, in 2020, Council provided authorization to remove Gull nests from the roofs of the condominium units at Bayshore Village and adopted Resolution No. 100-20 on November 17, 2020, finding the Gulls located within the Bayshore Village complex to be a public nuisance and thereby allowing removal of the Gull nests for a period of five years, expiring on December 31, 2025; and
WHEREAS in November of 2025, the City received a request from Bayshore Village Homeowner’s Association requesting that the Gulls located within their complex be declared a public nuisance and requesting an exemption to Morro Bay Municipal Code section 7.08.015 be granted by City Council allow hazing and harassment of gulls, removal of Gull nests and the ability to carry out addling of Gull eggs; and
WHEREAS, on December 9, 2025 the public was given the opportunity to appear and provide comment on the item; and
WHEREAS, the City Council has duly considered all evidence and determined that the presence of Gulls and their nests at Bayshore Village development are hazardous, unsafe, unsightly, unsanitary and constitute a nuisance detrimental to the public health, safety, and welfare and the property of others.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay:
Section 1. Findings. The City Council determines consistent with the requirements of Morro Bay Municipal Code section 7.08.015 that the Gulls and their nests located at the Bayshore Village in Morro Bay, CA have become so numerous or destructive as to constitute a menace and danger to the public health, safety or property, and the City Council therefore provides for the remedies contained herein which are determined to be appropriate under the circumstances as presented to Council.
Section 2. Exemption Granted. The City Council hereby conditionally grants the Bayshore Village Homeowners Association an exemption from the Morro Bay Municipal Code section
7.08.015 and allows them to haze and harass Gulls, to remove Gull nests from their roofs, and to carry out addling of Gull eggs in a safe and humane manner, for a period of 5-years terminating on December 31, 2030; provided that the exemption applies only to Morro Bay Municipal Code Section 7.08.015 and does not relieve the Bayshore Village Homeowner’s Association from complying with all other local, state and federal laws.
Section 3. Action. The City Council does hereby condition the foregoing authorization for Bayshore Village to haze and harass Gulls, to remove Gull nests from their roofs, and to carry out addling of Gull eggs as follows:
A. Prior to hazing or harassing Gulls or removing any Gull nests, or addling Gull eggs, the Bayshore Village Homeowner’s Association shall provide evidence satisfactory to the City’s Community Development Director that the U.S. Department of Fish and Wildlife has reissued/extended the Gull predation permit and to each calendar year thereafter while that grant is in effect.
B. The foregoing grant is effective only through December 31, 2030.
PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on this 9
th day of December 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
CARLA WIXOM, Mayor
ATTEST
DANA SWANSON, City Clerk
Prepared By: _GK____ Department Review: __GK__
City Manager Review:__AL_____ City Attorney Review: ___BS_____ Staff Report
TO: Honorable Mayor and City Council DATE: December 2, 2025 FROM: Greg Kwolek – Public Works Director
SUBJECT: Status Update and Reconfirm Emergency for Morro Creek Bank Stabilization Project
RECOMMENDED ACTION
Receive and file status update and reconfirm the declaration of emergency for the Morro Creek Bank Stabilization Project by four fifths vote.
STATUS UPDATE
On November 18, 2025, the City Council adopted an emergency declaration by unanimous vote for the Morro Creek Bank Stabilization Project due to the sudden 2023 erosion event that created an ongoing and imminent threat to adjacent public and private property. Since the City Council action, staff has secured contracts with Earth Systems for design services and Kevin Merk Associates for environmental and regulatory compliance services. Staff has continued coordination with all applicable regulatory agencies:
California Coastal Commission (CCC): The CCC has provided concurrence with the City’s plan to issue its own Local Coastal Program Emergency Coastal Development Permit (ECDP). Staff is preparing the City’s emergency CDP consistent with CCC input. U.S. Army Corps of Engineers (USACE): Staff is preparing an application under Regional General Permit 63 (RGP 63) and is currently working with USACE to confirm that the site conditions meet the Corps’ definition of an emergency. Staff has submitted additional information describing the sudden 2023 erosion event, the ongoing hazardous condition, and the imminent risk of further failure during upcoming storm events. Regional Water Quality Control Board: Staff has initiated discussions regarding the appropriate permitting pathway under the Clean Water Act and is preparing the required documentation to support emergency authorization.
California Department of Fish and Wildlife: Staff is coordinating with CDFW regarding Lake and Streambed Alteration (LSA) requirements and emergency notification procedures.
Property Access
Staff is in active discussions with the property owner to secure a Temporary Construction Easement (TCE) necessary for equipment access and construction staging outside of the City’s easement.
Negotiations are progressing and staff expects to finalize access terms in January.
EMERGENCY STATUS
Under Public Contract Code Section 22050, the City Council must review the emergency action at each regularly scheduled meeting and confirm there is a need to continue the emergency action by AGENDA NO: 6.i
MEETING DATE: December 9, 2025
a four-fifths vote. Because additional time is needed to complete the emergency response, staff recommends the City Council reaffirm by a four-fifths vote that the local emergency continues to exist. If reaffirmed, Staff would continue to return to City Council at each regularly scheduled meeting to report on any emergency actions taken and for a determination whether there continues to be a need for the emergency action.
ATTACHMENT
None
Prepared By: ME, NS Dept Review: GK___
City Manager Review: _AL__ City Attorney _BS_
Staff Report
TO: Honorable Mayor and City Council DATE: December 4, 2025 FROM: Nate Stong, PE, City Engineer
SUBJECT: Contract Term Extension for Agreement with Newton Construction & Management, Inc. for the BWRO Re-skin and Re-roofing Project
RECOMMENDED ACTION
Authorize the City Manager to execute Amendment No. 1 extending the term of the agreement with Newton Construction & Management, Inc. for the Brackish Water Reverse Osmosis (BWRO) facility Re-skin and Re-roofing project to June 30, 2026.
ALTERNATIVES
The City Council may provide other direction to staff.
FISCAL IMPACT
This contract extension has no fiscal impact to the City.
BACKGROUND/ DISCUSSION
The Brackish Water Reverse Osmosis (BWRO) Re-skin and Re-roofing Project addressed a crucial need for infrastructure improvement due to the aging and compromised condition of the existing building. The BWRO building houses critical water components of the City’s water supply. The existing roof was beyond its useful life and staff found multiple areas in the roof that were leaking. The siding, roofing, and painting work was completed near the end of August 2025, and retention was held pending punch list items and closeout paperwork from Contractor. Multiple attempts by Staff were made to resolve these items with the Contractor, who became non-responsive for approximately three months. Recently, staff reestablished contact with the Contractor and requested of the Contractor to achieve project closeout within the next two months. The attached contract amendment extends the contract expiration date to June 30, 2026 to allow for the Contractor to complete their work. This date allows for additional time in case other issues arise.
ATTACHMENTS
1. Agreement Amendment No. 1
AGENDA NO: 6.j
MEETING DATE: December 9, 2025
AMENDMENT NO. 1
TO THE CONTRACTOR SERVICES AGREEMENT
BETWEEN THE CITY OF MORRO BAY AND NEWTON CONSTRUCTION & MANAGEMENT INC.
This Amendment No. 1 is entered into on the ____ day of December 2025, by and between the CITY OF MORRO BAY, a municipal corporation (“City”) and Newton Construction & Management, Inc., a California corporation (“Contractor”).
RECITALS
A. City and Contractor entered into an agreement on March 10, 2025, for the Morro Bay WWTP Roofing Project (Agreement).
B. City and Contractor now agree to amend the Agreement to extend the terms of the Agreement’s time for performance.
NOW THEREFORE, City and Contractor mutually agree to amend the Agreement as follows:
1. The term of the Agreement is extended by 10 months, effective August 11 th
, 2025
through June 30th, 2026.
2. Except as expressly set forth in this Amendment, the terms and conditions in the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives.
CITY OF MORRO BAY NEWTON CONSTRUCTION &
MANAGEMENT, INC.
By: ______________________________ By: _____________________________ Andrea Lueker Eric W. Newton
Interim City Manager Chief Executive Officer/Secretary
Attest:
_________________________________
Dana Swanson, City Clerk
APPROVED AS TO FORM
__________________________________
Brian Stack, City Attorney
Prepared By: JB, GK, NS Dept Review: GK___
City Manager Review: _AL__ City Attorney _BS_
Staff Report
TO: Honorable Mayor and City Council DATE: December 3, 2025 FROM: Nate Stong, PE, City Engineer
SUBJECT: Contract Term Extension for Agreement with Filippin Engineering, Inc. for the Pavement Rehabilitation Project
RECOMMENDED ACTION
Authorize the City Manager to execute Amendment No. 1 extending the term of the agreement with Filippin Engineering, Inc. for the 2024 Pavement Rehabilitation Project to June 30, 2026.
ALTERNATIVES
The City Council may provide other direction to staff.
FISCAL IMPACT
This contract extension has no fiscal impact to the City.
BACKGROUND/ DISCUSSION
On August 27, 2024, the City Council approved a professional services agreement with Filippin Engineering, Inc., for construction management and inspection services for the 2024 Pavement Rehabilitation project. Staff is requesting the City Council approve an extension to the expiration date to accommodate project closeout activities. The attached contract amendment extends the agreement expiration date to June 30, 2026.
ATTACHMENTS
1. Agreement Amendment No. 1
AGENDA NO: 6.k
MEETING DATE: December 9, 2025
AMENDMENT NO. 1 TO THE AGREEMENT FOR CONSULTANT SERVICES BETWEEN THE CITY OF MORRO BAY AND FILIPPIN ENGINEERING, INC.
This AMENDMENT NO. 1 TO THE AGREEMENT FOR CONSULTANT
SERVICES BETWEEN THE CITY OF MORRO BAY AND FILIPPIN ENGINEERING, INC. (“Amendment No. 1”) is entered on the _____ day of ____________ 2025, by and between the City of Morro Bay, a municipal corporation (“City”) and Filippin Engineering, Inc., a California corporation (“Consultant”).
RECITALS
WHEREAS, City and Consultant (collectively, the “Parties”) entered into an agreement as of August 27, 2024, for construction quality assurances services for 2024 Pavement Rehabilitation Project, (the “Project") which was approved by the City Council in the amount of $311,688.00 (the “Agreement”); and
WHEREAS, the Agreement contains a typographical error for the expiration date as “January 31, 2025” which was intended to be “January 31, 2026”; and WHEREAS, City and Consultant now wish to extend the term of the Agreement to June 30, 2026.
NOW THEREFORE, City and Consultant mutually agree to amend the Agreement as follows:
1. The term of the Agreement is extended to June 30, 2026.
2. The Agreement shall remain and continue in effect until all tasks are satisfactorily completed, but in no event later than June 30, 2026, unless sooner terminated pursuant to the provisions of the Agreement.
3. Except as expressly set forth herein the terms and conditions of the Agreement shall remain in full force and effect.
4. The effective date of this Amendment No. 1 shall be deemed to be_______________, 2025.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives.
CITY OF MORRO BAY FILLIPIN ENGINEERING, INC.
By: ___________________________ By: ____________________________ Andrea Lueker Gino Filippin
Interim City Manager President
By: _____________________________
Attest: Paul Henderson
Vice-President
_______________________________
Dana Swanson, City Clerk
APPROVED AS TO FORM
_______________________________
Brian J. Stack, City Attorney
Prepared By: ___AMS____ Dept Review: ___AMS____
City Manager Review: ___AL____ City Attorney Review: ____BS_____ Staff Report
TO: Honorable Mayor and City Council DATE: December 1, 2025 FROM: Airlin Singewald, Community Development Director
SUBJECT: Receive and file General Plan Annual Progress Report for calendar year 2024; provide direction as necessary regarding the Community Development Department’s workload priorities; and review draft amendments to various sections of the City’s Zoning Code
RECOMMENDED ACTION
Receive and file the attached General Plan Annual Progress Report for calendar year 2024 and provide direction, as necessary, regarding the Community Development Department’s workload priorities.
ALTERNATIVES
No alternatives.
FISCAL IMPACT
If the Council directs staff to develop an historic preservation ordinance, staff will include in the Fiscal Year 2026-27 budget development a request for $50,000 in professional services to hire an historic preservation consultant for expert support.
SUMMARY
California cities and counties are required to provide the Governor’s Office of Land Use and Climate Innovation (LCI) an Annual Progress Report (APR) on its General Plan documenting implementation over the previous year’s 12-month reporting period. This staff report provides that documentation.
The timeframe covered by this APR is calendar year 2024. Beginning next year, the Community Development Department (Department) will present the APR to the Planning Commission and City Council in the spring of each year, so the information is more current.
This staff report also presents an analysis of a potential Historic Preservation Ordinance as envisioned by Plan Morro Bay Policy C-1. This agenda item also presents preliminary draft Zoning Code amendments to reflect Planning Commission recommendations. Staff is presenting these preliminary amendments to illustrate the suggested changes. It’s important to note that these amendments will not be ready for Council adoption until they’ve been properly noticed and reviewed by the Planning Commission. The amendments may also require Coastal Commission approval.
AGENDA NO: 8.a
MEETING DATE: December 9, 2025
DISCUSSION
1. General Plan Annual Progress Report for Calendar Year 2024 The Planning Commission reviewed the General Plan Annual Progress Report on November 5, 2025.
The staff report and attachments are available online: Planning Commission Special Meeting - November 05, 2025
The Planning Commission voted to recommend the City Council accept the 2024 General Plan Annual Progress Report and forwarded the following comments to City Council:
Direct staff to amend the Zoning Code to add back in the standard that limits the height of new buildings to not extend above the top of the bluff between Beach Street and Surf Street. Direct staff to amend the Zoning Code to add back in the sloping lot adjustment that allows for a reduced front setback for garages on certain sloping properties. Direct staff to designate three spaces on the Embarcadero for commercial fisherman to park and load / unload equipment. The suggested locations include the boat launch ramp, near the end of Beach Street, and near the north T-pier.
Direct staff to prioritize the construction of a sidewalk on Main Street between Errol Street and Radcliff Drive for pedestrian connectivity between north and south Morro Bay. Direct staff to prioritize enhancing and evening the surface of the sidewalk on Main Street between Olive Street and Shasta Avenue as this section connects the State Park and downtown.
Direct staff to prepare a historic preservation ordinance as quickly as possible given resource constraints.
This staff report includes preliminary draft Zoning Code amendments reflecting the above Planning Commission recommendations, as well as an analysis of a potential historic preservation.
2. Historic Preservation Ordinance
When the Planning Commission discussed a possible historic preservation ordinance on November 5, they did not reach consensus on whether the ordinance should be voluntary or mandatory. They agreed, however, that an ordinance should be effective in protecting historically important architecture. They also agreed that a community group or new advisory committee should help facilitate consensus building during the development of a historic preservation ordinance.
The Commission recognized that, while a historic preservation ordinance is important and has a sense of urgency, it would need to be programmed into the Community Development Department’s existing workload, resources, and priorities. For example, while a new advisory board could support consensus building on a policy framework for an ordinance, the Department would need to lead the formation, onboarding, and staffing of a new advisory board. The Department is currently managing two advisory boards (Planning Commission and Waterfront Master Plan Advisory Committee) and doesn’t presently have the capacity to staff a third. Staff would recommend waiting until the Waterfront Master Plan is complete before initiating a historic preservation advisory body and ordinance update.
The Planning Commission recommended preparing a historic preservation ordinance, as quickly as possible, given these constraints.
Staff presented the following analysis of a potential historic preservation ordinance to the Planning Commission:
Plan Morro Bay contains policies and implementation actions that direct the development of a Historic Preservation Ordinance. The goal of a Historic Preservation Ordinance is to preserve historic buildings and protect unique architectural elements that contribute to the City’s charm and character.
While the City has regulatory tools to protect historic resources eligible for listing on the State register, these tools are not adequate to protect locally important architecture or building alterations that do not require discretionary permits.
The City has made progress in implementing Plan Morro Bay policies and actions related to historic preservation. The City has completed the following:
Developed a cultural resource overlay in Plan Morro Bay for the protection of archaeological resources. Archaeological resources are included in the State’s definition of historic resources.
Coordinated with the Historical Society on a Draft Historic Preservation Ordinance in November 2020 (summarized below).
Evaluated options for a regulatory framework for historic resources.
The following is a summary of the Historical Society’s November 2020 Draft Historic Preservation Ordinance:
Calls for the creation of a City of Morro Bay Historic Preservation Advisory Body (HPAB) and establishes the composition and duties of the HPAB.
Establishes evaluation criteria for designating historic resources. Authorizes and establishes the process for the HPAB to conduct an inventory of potentially historic resources and recommend historic resource designations to the City Council. Requires a new permit type (Certificate of Appropriateness) and special requirements for any proposal to demolish or alter any designated historic site, structure, or resource. Establishes an economic hardship process for owners of historic properties to seek relief from requirements of the Historic Preservation Ordinance.
The Draft November 2020 ordinance is mostly voluntary, as only private property owners can apply to designate their own property as historic. The draft ordinance identifies potential incentives for owners to designate their property as historic, such as loans or grants, zoning concessions, Building Code modifications, property tax incentives, etc. The ordinance would authorize full-time City residents to apply for designation of a public property based on local criteria.
Because the draft ordinance is voluntary for private properties, it would not ensure the protection of historic resources or locally significant architecture. However, it would establish a framework that strengthens the City’s ability to consider historic preservation in the review of development projects and related matters. For instance, once the HPAB is established, City staff could refer projects and preservation issues to the HPAB for comment and recommendation. Additionally, the HPAB’s inventory of potential historic resources could serve as a valuable tool for identifying and safeguarding locally important historic properties.
The Historical Society’s draft ordinance provides a strong foundation for a policy framework that
thoughtfully balances property rights with the preservation of our community’s cultural and architectural heritage. The draft ordinance is at a point where it would benefit from the expert review and advice of a historic preservation consultant. Historic preservation is a complex and technical subject matter, with potential legal pitfalls and liability to the City without professional guidance.
If the Council decides to proceed with a historic preservation ordinance, staff will recommend the Council allocate $50,000 in professional services budget to hire a historic preservationist for support.
The Council should also be aware of an ordinance’s impact on the Department’s capacity to process permits and complete other Council-directed long range planning projects. The Historical Society’s draft ordinance would require the Department to take the lead in creating and staffing a new advisory board, which would place significant strain on the Department’s workload, unless additional staff resources are allocated. This concern could be partially alleviated if the timing for the Historic Preservation Ordinance coincides with completion of the Waterfront Master Plan update.
3. Preliminary Draft Zoning Code Amendments
Throughout the year, the Department heard from residents about certain provisions in the previous Zoning Code that were not carried forward to the new code during the recent comprehensive update.
When the 2024 General Plan Progress Report was presented to the Planning Commission during the regular hearing on November 5, the Commission voted to provide a recommendation to the City Council that these provisions be adopted back into the current Zoning Code. Additionally, staff has drafted a Zoning Code amendment that reflects the requirement for voter approval of land use designation changes of specified parcels, pursuant to Measure A-24.
Staff is presenting the attached redlines of these amendments to illustrate the proposed changes.
It’s important to note that these amendments will not be ready for City Council adoption until they’ve been properly noticed and reviewed by the Planning Commission. The amendments may also need to be approved by the California Coastal Commission if they amend the Local Coastal Program.
CONCLUSION
The recommended action for this agenda item is to receive and file the General Plan Annual Progress Report and provide direction, as necessary, regarding the Community Development Department’s workload priorities. Staff is also seeking Council input on a potential historic preservation ordinance and the attached preliminary draft Zoning Code amendments.
Beginning in 2026, the General Plan Annual Progress Report will be presented to the Planning Commission and City Council in the spring, so the information is more current and relevant.
ATTACHMENTS
1. General Plan Annual Progress Report including Exhibit 1 - General Plan Implementation Table, Exhibit 2 - List of Major Planning Projects Reviewed in 2024, Exhibit 3 - Admin Planning Projects Processed in 2024, and Exhibit 4 - Building Permits Processed in 2024.
2. Historic Preservation Ordinance Outline – October 27, 2025
3. Preliminary Draft Zoning Code Amendments
a. Measure A24 Consistency
b. Blufftop Height Limit Between Beach and Surf Streets c. Sloping Lot Adjustment
General Plan Annual Progress Report - 2024 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year 1 SECTION 1 - INTRODUCTION
The General Plan Annual Progress Report (GP APR) is a report to the legislative body and public regarding the implementation of the General Plan. This report is a summary of activities for all elements that were implemented. The City of Morro Bay as a general law city is required to provide an annual report to the City Council on the status of its General Plan and its implementation under Government Code Section 65400.
A. PURPOSE OF THE GENERAL PLAN ANNUAL PROGRESS
REPORT
Scope and Content
Reporting Period Type: Calendar year report
Reporting Period: January 1, 2024 – December 31, 2024
Date of Presentation/Acceptance: December 9, 2025
B. PURPOSE OF THE GENERAL PLAN
The General Plan is a city’s long-term blueprint for future development and for meeting our community’s long-term vision for the future. Pursuant to State law, the General Plan must accommodate the required amount of projected population growth the State of California estimates for each city.
C. STATUS OF ADOPTED GENERAL PLAN AND STATUS OF
AMENDMENTS
State law allows the General Plan (GP) to be amended four times annually. This allows the General Plan to remain a current document responsive to the community’s needs. The City of Morro Bay completed a comprehensive update to its entire General Plan which was adopted by City Council on May 25, 2021. As a combined General Plan/Local Coastal Plan, it was subsequently certified by the California Coastal Commission on August 12, 2021. The below table include the GP update history organized by each General Plan Element.
City of Morro Bay
2 Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year Element Name: Date of Last
Update:
Description
Land Use 2024 – Measure
A-24 amended
the Land Use
Element.
The Land Use Element regulates how land
in the City will be used in a way that
maximizes public safety and social wellbeing, protects coastal resources, and benefits the local economy.
Community Design 2021 – New
Optional Element
The Community Design Element
addresses the components of Morro Bay’s
unique style that will be preserved and
enhanced through this LCP as the City
changes over time. This element focuses
primarily on building design, landscaping,
scale, and style.
Economic
Development
2021 – New
Optional Element
This Element lays the groundwork for
improving and sustaining economic
health through 2040 through long-range
policies focused on supporting existing
and new local- and visitor-serving retail
uses and attracting and retaining jobs in
the city. The element may be
implemented from time to time by
shorter-range 5- to 10-year economic
development strategies that seek to
accomplish portions of the long-term
economic vision.
Circulation 2021 This element includes a description of the existing transportation network, parking
facilities in the coastal zone, the
transportation network diagram, and
multimodal transportation infrastructure.
It also covers key transportation issues in
Morro Bay and the goals and policies
which will guide efforts by the City,
developers, and officials to improve travel
mobility and efficiency in Morro Bay.
Noise 2021 The Noise Element is intended to serve as
Morro Bay’s general guide in public and
private development matters related to
General Plan Annual Progress Report - 2024 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year 3 outdoor noise. The purpose of this
element is to identify noise problems in
the community, protect sensitive noise
environments important to the
community, establish a land use pattern
that minimizes the community’s exposure
to excessive noise, and identify noise
reduction strategies to address existing
and foreseeable noise problems.
Housing 2021 The balance between the city’s residents,
workforce, and economic growth is an
outcome of the Housing Element through
a long range plan that provides direction
towards creating greater access to
housing for people with low and moderate
incomes to fulfill that General Plan vision.
The Housing Element Annual Report was
submitted to the State Department of
Housing & Community Development
(HCD) in March 2025. Report linked here.
Conservation 2021 Conservation Element goals and policies seek to reconcile conflicts between
community resource demands and
conservation needs. The element also
discusses the community benefits derived
from these resources, such as healthy
food and clean water, climate change
mitigation, and recreation.
Open Space 2021 The Open Space Element establishes
goals and policies to protect and conserve
Morro Bay’s open space resources and
addresses opportunities to expand the
open space system by assessing park and
trail facilities, coastal facilities, and
recreation programs.
Public Safety 2021 – New
Optional Element
This element places a specific focus on
climate change-related hazards and
policies that will prepare the City to
address the changes that are likely to
come from coastal hazards, including sea
City of Morro Bay
4 Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year level rise, and for future emergency
situations, but also includes information
on other potential environmental hazards
and emergency response procedures.
Environmental
Justice
2021 – New
Optional Element
The Environmental Justice Element
addresses the social aspects of
community design. It anticipates the ways
in which the built environment affects the
overall wellbeing of residents and visitors
and allows needs to be met easily and
affordably. A person’s social, physical, and
mental well-being are inexorably linked,
and this element touches on all three
aspects and includes policies to improve
the conditions that influence them.
The updated Zoning Code, which includes the City’s Local Implementation Plan (LIP), was adopted in 2022 and certified by the Coastal Commission in 2024.
D. PROPOSED GENERAL PLAN AMENDMENTS
In November 2024, the voters of Morro Bay adopted Measure A-24, an initiative to maintain visitor-serving uses on certain designated parcels. Figure LU-4.1 below depicts those parcels currently designated Visitor-Serving Commercial and Commercial/Recreational Fishing that may not be redesignated unless by a vote of the people in accordance with Measure A-24.
General Plan Annual Progress Report - 2024 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year 5 FIGURE LU-4.1
City of Morro Bay
6 Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year SECTION 2 – SUMMARY OF 2024 ACTIVITY
A. IMPLEMENTATION ACTIVITY SUMMARY
See attached table (Exhibit 1 - General Plan Implementation Table) B. LOCAL LEGISLATIVE PRIORITIES IN 2024
Every two years, the City Council completes a goal-setting process to determine major city goals in response to community input and public comment. The City Council Goals for FY 2023-2025 are outlined as follows:
• City Council Goal: Public Infrastructure
o Assess and provide report on state of infrastructure including streets, sewer lines, sidewalks, storm drains, and Harbor infrastructure.
o January 2023 storm response and future mitigation.
o Repair, update and enhance Veterans Hall so it can continue to serve the community.
o Striping program to improve sidewalks, crosswalks & accessible parking.
• City Council Goal: Economic Vitality
o Pursue grant writing opportunities.
o Evaluate opportunities for City-owned properties.
o Streamline permit process for residential and commercial development.
• City Council Goal: Housing/Homelessness Response
o Identify low-income housing opportunities.
o Explore achievable options for unhoused residents.
o Speed up processing of ADU permits to increase availability of affordable housing.
• City Council Goal: Community Engagement
o Build relationships and improve the purpose of advisory bodies to attract and retain members.
o Hold community workshops and study sessions on upcoming development.
o Improve City website and social media presence.
General Plan Annual Progress Report - 2024 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year 7 C. MASTER PLAN CREATION AND/OR UPDATES
In 2022 the City of Morro Bay started development of a Master Plan for the Morro Bay Power Plant Site. The Master Plan project for the property located at 1290 Embarcadero was a result of General Plan/LUP Policy LU-5.4 which requires creation of a master plan for the redevelopment of the former Vistra power plant site and surrounding area. At the time, Vistra had an open application for a coastal development permit and conditional use permit to development a 600-MW battery energy storage system project which triggered the requirement for creation of the Master Plan as specified in the policy below.
The Planning Commission held a study session at its regular meeting on February 20, 2024 to solicit public input on the development of the Draft Master Plan.
The Draft EIR for the Morro Bay Battery Energy Storage System (BESS) project was available for public review and comment from March 11 through May 28, 2024. This 79-day public review period exceeds the 45-day review period required under the California Environmental Quality Act (CEQA).
On October 28, 2024, Vistra sent a letter to the City of Morro Bay requesting to put their application on pause. (The application was then officially withdrawn on April 4, 2025.). The City will develop a master plan for the powerplant property as part of an update to the Waterfront Master Plan.
City of Morro Bay
8 Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year D. DEVELOPMENT APPLICATIONS PROCESSED
Exhibit 2 includes all projects reviewed by Planning Commission in 2024.
Exhibit 3 includes all projects reviewed administratively by Planning staff in 2024.
Exhibit 4 includes numbers of building permits processed and inspections performed by Building staff in 2024.
E. INTERAGENCY/ INTERGOVERNMENTAL
COORDINATION EFFORTS
The City of Morro Bay participates on intergovernmental coordination efforts with the County of San Luis Obispo. This includes the County’s Air Pollution Control District (APCD), Integrated Waste Management Authority (IWMA), County Planning, County Public Works, County Sheriff, San Luis Obispo Council of Governments (SLOCOG), and other agencies. Initiatives include greenhouse gas reduction measures, education on solid waste recycling, affordable housing and homelessness response measures, mutual aid agreements for emergency response, and participation in the Broadband & Digital Roundtable.
F. IMPLEMENTATION OF MITIGATION MEASURES FROM
GENERAL PLAN FINAL ENVIRONMENTAL IMPACT
REPORT
The Mitigation Monitoring and Reporting Program from the General Plan Final Environmental Impact Report outlines the various mitigation measures, action required, monitoring frequency, and responsible agency or party. Mitigation measures are implemented according to each of the identified impacts.
G. DEPARTMENT GOALS, OBJECTIVES, ACTIVITIES, AND
RESPONSIBILITIES AS RELATED TO LAND USE
PLANNING
The goal for the Community Development Department is to provide the community with direction and guidance to achieve the goals and objectives set forth in the General Plan and Local Coastal Plan.
General Plan Annual Progress Report - 2024 City of Morro Bay Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year 9 The main objective for the department is to create and facilitate an effective partnership with the residents and businesses in the community by providing an open and transparent planning process with an emphasis on citizen involvement and participation that results in a fair, objective, predictable, and accountable planning process.
The Planning Commission is a five member voting body appointed by the City Council.
The adopted plans and City documents used by the Planning Commission in considering permit application and policy development is here. The function of the Planning Commission is to:
o Develop a general plan and recommend its adoption by the City Council o Maintain the general plan after its adoption by the City Council o Develop specific plans as may be necessary to implement the general plan o Periodically review the capital improvement program of the city for recommendations to the City Council
H. CUSTOMER SERVICE IMPROVEMENTS AND METHODS
In 2024, the City of Morro Bay partnered with Symbium to establish an automated permitting platform that complies with requirements of SB 379. Contractors and homeowners seeking to pull residential photovolactic or energy storage system permits can apply for instantaneous plan review approval via the Symbium portal.
Office hours were also extended; the city is now open Mondays through Thursdays 8:00 AM – 5:00 PM instead of previously closing at 4:00 PM.
I. GRANT ADMINISTRATION
The City successfully received multiple federal, state, and local grants to assist with General Plan implementation in 2024. This includes funding from the U.S Department of Housing and Urban Development (HUD), State Coastal Commission, California Energy Commission, and Central Coast Joint Cable Fisheries Liason Committee.
Among these grants was an award of $750,000 from the California Coastal Commission to update the 1996 Waterfront Master Plan (WMP). The WMP, which is part of the City’s Local Coastal Program (LCP), is a land use policy document, a conceptual development plan, and implementation document. The WMP sets a vision for future development, land use, circulation, and infrastructure for Morro Bay’s
City of Morro Bay
10 Plan Morro Bay
General Plan Annual Progress Report – 2024 Reporting Year waterfront area. The estimated completion date for the WMP Update is November, 2026.
J. TECHNOLOGY REVIEW INCLUDING WEBSITE UPDATES
The City has continued to provide regular updates via the City website including refinements to the Community Development Department page. These include:
1. Title 17 was updated in the City’s online municipal code portal, Municode, following its certification by the Coastal Commission in March 2024.
2. Creation of a new Residential Solar Permits website at https://www.morrobayca.gov/1076/Residential-Solar-Permits which includes a link to the new Symbium portal page.
3. Creation of a new Short-Term Vacation Rentals website at https://www.morrobayca.gov/1085/Short-Term-Vacation-Rentals which includes information on the Short Term Rental Ordinance, Short Term Rental enforcement, and the STR permit application process.
4. Maintenance of the Department’s Current Planning Projects page which includes public information updates on high profile projects of interest at www.morrobayca.gov/currentplanningprojects.
5. Creation of a new Supplemental Permit Information page at https://www.morrobayca.gov/1075/Supplemental-Permit-Information which includes information on sidewalk vending.
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 LU-1 Goal LU-1 Land Use
Amend the Zoning Map to establish consistency between land use designations and zoning districts.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission 03/15/2024.
LU-2 Goal LU-1 Land Use
Establish zoning districts and development standards to correspond with land use designations and character areas.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission 03/15/2024.
LU-3 Goal LU-1 Land Use
Modify zoning and development standards to allow and
facilitate tiny houses, co-housing, live/work housing, and intergenerational housing.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission 03/15/2024.
LU-4 Goal LU-1 Land Use
Designate base zones during the Zoning Code update for the Beach Street Specific Plan area which protect the existing unique mix of land uses.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission 03/15/2024.
Relevant sections include 17.08.040.E and 17.11.030.
LU-5 Goal LU-1 Land Use
Continue to implement the North Main Street Specific Plan through the actions in this plan and the actions in the specific plan.
Process Community Development General Fund Concurrent
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission 03/15/2024.
Relevant sections include 17.08.040.A and 17.08.040.D
LU-6 Goal LU-3 Land Use
When the city's population reaches 11,700, reopen public discussions about the Measure F 12,200-person limit and undertake a process to either affirm, amend, or repeal Measure F. At that time, consider exempting affordable housing projects from established population limits.
Process City Council General Fund As Needed -
LU-7 Goal LU-4 Land Use
As part of the Zoning Code update, maintain land use and zoning that protects visitor-serving and coastal dependent uses, including commercial fishing.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission 03/15/2024.
Relevant sections include 17.11.
LU-8 Goal LU-4 Land Use
Clarify the meaning of “clearly incidental” in the Zoning Code and provide additional certainty and consistency in the development review process for properties in the Measure D zone/Commercial/Recreational Fishing land use designation.
Zoning Code Update Community Development General Fund Once - LU-9 Goal LU-4 Land Use
Update the Fishing Community Sustainability Plan every five years.
Process Harbor General Fund; Grants Periodic -
LU-10 Goal LU-4 Land Use Zoning Code Update Community Development General Fund Modify zoning and development standards to allow interim uses in areas designated for coastal-dependent uses until the existing owners have an approved coastal-dependent
development. The City considers this type of interim temporary use exempt from coastal development permits. Interim uses shall be limited to projects which a) have relocatable structures, b) are compatible with the character of surrounding areas, c) preserve established viewsheds, and d) are limited to the following uses: • Visitor
access, paths, lookout points
• Recreational vehicle parking
• Automobile parking
• Picnic areas
• Community gardens
• Campgrounds
• Restrooms and service facilities
• Playgrounds
• Temporary boat storage
• Temporary boat repair area
• Ancillary uses for the above
• Other uses serving visitors or commercial fishing which do not require permanent structures
Concurrent -
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 LU-12 Goal LU-6 Land Use
Perform a survey of all hotels and motels in the city every two years. The survey should include documentation of the number of accommodations (for 2-4 person occupancy) and their
average costs. Upon completing the survey, use the established City threshold to determine what proportion of hotels and motels can be considered low cost visitor-serving
accommodations. This process will be completed between
January and April to capture realistic peak-season prices. Notice that the survey will be completed and the threshold and proportion information will be updated based on the survey will be given three months in advance of conducting the survey.
Notice will be given to all accommodations owners and any applicants who have submitted applications for hotels or motels in the last year. Once the survey is updated it will be sent to this group as well.
Process Community Development General Fund; TOT Periodic - LU-13 Goal LU-6 Land Use
New mid-price hotel and motel projects that are developed on state-owned tidelands and do not have lower-cost
accommodation options shall incorporate non-overnight
facilities and amenities, either within or as a component of the development, which will be generally available for passive public use. Such amenities may include public plazas and spaces, restaurants, retail units/shops, gardens, viewing areas, free Wi-Fi access, bike parking facilities, or other day-use features that may be used by the public at no or relatively low cost. The quality and quantity of amenities shall be considered in the Coastal Development Permit review process. This standard does not prohibit a new hotel or motel project from charging a user fee or resort fee for active amenities, such as pool and spa access, recreation activities and equipment, or organized group activities on the property.
Development Standards Community Development Development Fees As Needed - LU-14 Goal LU-6 Land Use
Use fee revenues from new developments with the potential to directly displace existing lower- and mid-price accommodations to provide as-needed rehabilitation grants to Low-Cost VisitorServing Accommodations (LCVSAs) to ensure the LCVSAs stay on the market at an affordable price point.
Program Community Development Development Fees As Needed - LU-11 Goal LU-4 Land Use
Track needs of the commercial fishing industry annually through the Harbor Advisory Board as the community faces climate and economic changes.
Process Harbor General Fund
LU-10 Goal LU-4 Land Use Zoning Code Update Community Development General Fund b) are compatible with the character of surrounding areas, c) preserve established viewsheds, and d) are limited to the following uses: • Visitor
access, paths, lookout points
• Recreational vehicle parking
• Automobile parking
• Picnic areas
• Community gardens
• Campgrounds
• Restrooms and service facilities
• Playgrounds
• Temporary boat storage
• Temporary boat repair area
• Ancillary uses for the above
• Other uses serving visitors or commercial fishing which do not require permanent structures
Annually -
Concurrent -
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 LU-15 Goal LU-6 Land Use
Require any new hotel or motel development that does not include lower-cost overnight accommodations (and that is not directly displacing lower-cost lodgings) to provide mitigation as a condition of approval of a Coastal Development Permit.
Mitigation actions shall include a mitigation payment to provide funding for the establishment of lower-cost overnight visitor accommodations elsewhere in the city, including granting the state “rights-of-way” to expand or using fees for linear coastal park improvements.
Program Community Development Development Fees As Needed Ongoing. This is a project requirement reviewed for applicability on all new projects.
LU-16 Goal LU-6 Land Use
Require that hotel or motel development projects in Morro Bay provide units at a lower-cost rate approved by the Coastal Commission if they directly displace either (a) existing lower-cost accommodations or (b) accommodations above the lower-cost threshold that include additional amenities or higher capacity.
Program Community Development Development Fees As Needed Ongoing. This is a project requirement on all new projects.
LU-17 Goal LU-6 Land Use
Require new hotel and motel projects that do not have lowercost accommodation options to incorporate non-overnight facilities and amenities, either within or as a component of the development, which will be generally available for passive public use. Such amenities may include public plazas and spaces, restaurants, retail units, gardens, viewing areas, free Wi-Fi, bike parking facilities, or other day-use features that may be used by the public at no or relatively low cost. The quality and quantity of amenities shall be considered in the Coastal Development Permit review process. This standard does not prohibit a new hotel or motel project from charging a user fee or resort fee for active amenities, such as pool and spa access, recreation activities and equipment, or organized group activities on the property.
Program Community Development Development Fees As Needed Ongoing. This is a project requirement on all new projects.
LU-18 Goal LU-7 Land Use
Continue to implement lateral access wayfinding and open access through enforcement of City design standards and sign regulations.
Code Enforcement Community Development
General Fund;
Development Fees
Ongoing In Progress
LU-19 Goal LU-7 Land Use
Name and brand the entire lateral accessway through the lateral access focus area and beyond (as applicable) as the Morro Bay Harborwalk. This should be reflected in all wayfinding and signage and city materials.
Program
Harbor; Community
Development
General Fund Ongoing Ongoing. This is a project requirement on all new projects.
LU-20 Goal LU-8 Land Use Update the Waterfront Master Plan. Process Community Development General Fund Periodic Staff submitted an application for a grant opportunity from the California Coastal Commission on August 27, 2024. (The award was granted January 2025, and the WMP update is now under way.) LU-21 Goal LU-8 Land Use
Monitor and repair existing seawalls and revetments along the Embarcadero.
Physical Improvement Public Works
General Fund;
development fees
As Needed In 2024, City conducted a survey of waterfront infrastructure, including revetments.
CD-1 Goal CD-1 Community Design
Develop design standards as part of the Zoning Code update tailored to each character area (as appropriate) and include regulations on building design, landscaping, amenities, and facilities.
Zoning Code Update
Community
Development; Public
Works
General Fund Once
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.07.040, 17.08.040, and
17.11.050.
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 CD-2 Goal CD-1 Community Design
Develop citywide design guidelines with a focus on certain character areas. The guidelines for each character area should be sensitive to the design objectives and unique characteristics of each area. Those character areas include Downtown, the Embarcadero, North Morro Bay, Cloisters, North Embarcadero, and Highway 1 Commercial. Considerations for the guidelines will include allowing sufficient flexibility, use types generally allowed, building size and massing, and allowing for eclectic design features. Design standards should address senior housing that is accessible to public transit, health and community facilities, and services.
Process Community Development General Fund Once
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024.
CD-3 Goal CD-1 Community Design
Develop design guidelines for North Morro Bay that encourage building or expanding commercial centers to serve the
neighborhood at identified locations in the area. Another objective is to make North Main Street more pedestrian friendly and aesthetically pleasing.
Process Community Development General Fund Once
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.08.030 and 17.08.040.
CD-4 Goal CD-1 Community Design
In mixed-use areas, lateral accessways shall be provided according to the location of historically used portions of the site and projected future use by residents, and shall include provision of continuous lateral access across the site. Access easements may be located in view corridors.
Development Standards Community Development Development Fees As Needed Ongoing. This is a project requirement on all new projects.
CD-5 Goal CD-1 Community Design
Design guidelines for the Embarcadero character area should be crafted to maintain and improve lease site buildings and structures for visitors and waterfront commercial uses and to protect against sea level rise, create consistent wayfinding and signage, improve circulation for bicycles, pedestrians, and vehicles, and develop opportunity sites.
Process Community Development General Fund Concurrent
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.11. Design guidelines for the Embarcadero area are also detailed in the 1996 Waterfront Master Plan and the 2018 Downtown Waterfront Strategic Plan.
CD-6 Goal CD-1 Community Design
Design guidelines for the Downtown character area should include connecting Downtown with the waterfront through new buildings and activities, developing opportunity sites, maintaining and improving the pedestrian experience, and increasing office and residential opportunities on second stories.
Process Community Development General Fund Concurrent
Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.08 and 17.16. Design guidelines for the downtown area are also detailed in the 2018 Downtown Waterfront Strategic Plan.
CD-7 Goal CD-1 Community Design
Amend the Zoning Code to allow for features such as vegetative roofs, edible landscaping, gardening, and the keeping of specified small animals in appropriate residential and
commercial zones.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.25.050 and 17.30.060.
CD-8 Goal CD-2 Community Design
Update the City's building code to meet Tier 2 of the Green Building Code and incorporate resilient and sustainable building design standards such as passive heating and cooling,
redundant water and waste systems, energy production and storage, and disaster-resilient building materials. Review the code periodically to ensure it incorporates emerging materials, technology, and best practices.
Municipal Code Update Fire General Fund Periodic Completed, 2022 California Building Code adopted, Amendments adopted December 2023.
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 ED-1 Goal ED-1
Economic
Development
Determine the types of buildings and spaces needed in Morro Bay to support economic growth. Identify the appropriate height and sizes of nonresidential buildings, along with any design considerations necessary for desired economic growth.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.08 and 17.09. Vision and design guidelines for nonresidential buildings are also outlined in the 2018 Downtown Waterfront Strategic Plan.
ED-2 Goal ED-1
Economic
Development
Regularly review City policies and practices to ensure they allow new businesses to be easily established and enable existing businesses to easily grow, avoiding unnecessarily restrictive or financially burdensome regulations.
Process City Manager General Fund Periodic -
ED-3 Goal ED-1
Economic
Development
Maximize energy from renewable resources, and work to
improve the affordability of energy and telecommunication resources.
Program City Manager General Fund; Grants Ongoing City is a member of Central Coast Community Energy ED-4 Goal ED-1
Economic
Development
Explore opportunities to establish Community Financing
Districts and additional Business Improvement Districts.
Program City Manager
General Fund; District
Proceeds
Ongoing
City contracted with the Morro Bay Chamber of Commerce to conduct outreach and to provide information on the formation of a downtown BID. Project is complete and next steps are up to the downtown business owners.
ED-5 Goal ED-1
Economic
Development
Adopt, and ensure City staff is trained on, proper customer service techniques and practices when working with community members on permits, applications, and other processes.
Process Community Development General Fund Ongoing In progress ED-6 Goal ED-1
Economic
Development
Review, and modify as needed, the development process to improve and streamline the review process, ensure proper communication between departments and the applicant, and provide support for businesses and homeowners.
Process Community Development General Fund Periodic In progress ED-7 Goal ED-1
Economic
Development
Carry out implementation of the Economic Development
Strategic Plan.
Process City Manager General Fund Ongoing In progress
ED-8 Goal ED-2
Economic
Development
Be knowledgeable and present in local events, activities, and marketing with local businesses, recreation providers, and organizations to provide support and promotion, and to
facilitate good relationships with the community.
Program City Manager General Fund Ongoing In progress
ED-9 Goal ED-2
Economic
Development
Strengthen partnerships with Cal Poly, Cuesta College, the Economic Vitality Corporation, the County of San Luis Obispo, REACH Central Coast, Visit SLO CAL, Morro Bay Chamber of Commerce, and the cities in the county to work together on regional tourism and marketing that highlights Morro Bay as a tourist destination and business-friendly location.
Program City Manager General Fund; TOT Ongoing In progress ED-10 Goal ED-2
Economic
Development
Identify commercial areas in need of rejuvenation and work with property owners to identify funding sources and revitalization strategies to improve the appearance, sustainability, and longevity of buildings and amenities.
Program City Manager General Fund Ongoing -
ED-11 Goal ED-3
Economic
Development
Ensure that zoning and design standards along the
Embarcadero, in downtown, along Main Street, and in other locations allow for new nonresidential development. Consider allowances for retail/residential and retail/office mixed-use buildings.
Process Community Development General Fund Concurrent In progress Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 ED-12 Goal ED-3
Economic
Development
Prioritize the location of businesses that will bring needed and diverse services, livable wages, and employment generation.
Program City Manager General Fund Ongoing -
ED-13 Goal ED-4
Economic
Development
Partner with Cal Poly, Cuesta College, and the Workforce Development Board, as well as other key agencies and
organizations, to bring workforce programs, projects, and needed workers to Morro Bay.
Program City Manager General Fund Ongoing -
ED-14 Goal ED-4
Economic
Development
Provide incentives such as reduced development fees,
expedited processing, or other benefits for businesses that will pay a living wage to employees.
Zoning Code Update Community Development General Fund Ongoing - CIR-1 Goal CIR-1 Circulation
Review the Morro Bay Bicycle and Pedestrian Master Plan annually to identify opportunities for implementation and ensure consistency with existing local and regional plans.
Process Community Development General Fund Ongoing -
CIR-2 Goal CIR-1 Circulation
Identify future funding and ways to remove permitting barriers to install fiber optic Internet or other similar communications infrastructure that will support the increase of smart
transportation technology and connected vehicles.
Physical Improvement Public Works General Fund; Grants Once - CIR-3 Goal CIR-1 Circulation
Prioritize projects in the CIP that improve local and regional connectivity and mobility by increasing access and connecting to existing systems, including transit, sidewalks, bike lanes, and roadways.
Process Public Works General Fund; Grants Ongoing -
CIR-4 Goal CIR-1 Circulation
Update the City’s development impact fee program to provide funding for future circulation improvements including
pedestrian, bicycle, and public transit facilities and amenities.
Also, consider other local financing options such as an Enhanced Infrastructure Financing District (EIFD).
Process Community Development General Fund Periodic -
CIR-5 Goal CIR-1 Circulation
Include the San Luis Obispo Bicycle Club, Bike SLO County, SLO Nexus, and other bicycling groups as key stakeholders in planning and transportation system projects to identify concerns and opportunities in the active transportation system.
Process Community Development General Fund Ongoing -
CIR-6 Goal CIR-1 Circulation
Designate a representative to attend locally relevant meetings held by San Luis Obispo Regional Transit Authority, Caltrans, and other regional agencies to represent the interests of Morro Bay.
Process Community Development General Fund Ongoing -
CIR-7 Goal CIR-1 Circulation
Work with business owners to streamline and integrate goods movement throughout Morro Bay in a way that improves
loading, unloading, and transportation processes, while minimizing health, safety, and nuisance impacts.
Program Community Development General Fund Ongoing -
CIR-8 Goal CIR-1 Circulation
Consider updating the Morro Bay Municipal Code Title 10 (Vehicles and Traffic) to incorporate recent best practices, local needs, and make consistent with Plan Morro Bay.
Municipal Code Update Community Development General Fund Once - CIR-9 Goal CIR-1 Circulation
Seek funding from sources such as Safe Routes to School and Complete Streets programs to improve sidewalk conditions and streetscapes, particularly in the downtown area.
Physical Improvement Community Development Grants Ongoing - Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 CIR-10 Goal CIR-1 Circulation
Pursue grant funding to prepare a Complete Streets Plan to integrate with updates to the Morro Bay Bicycle & Pedestrian Master Plan.
Process Community Development Grants Ongoing -
CIR-11 Goal CIR-2 Circulation
Develop standards for bicycle, pedestrian, and trail
improvements and amenities in new development and
redevelopment projects. Include requirements for adequate, safe, and accessible bicycle parking, drinking fountains, public restrooms, benches, landscaping, and lighting. Require new development and redevelopment projects to be pedestrian and bicycle-friendly, and to provide adequate connections to the existing and proposed bicycle and pedestrian network.
Process Community Development General Fund Once -
CIR-12 Goal CIR-2 Circulation
Update design guidelines and standards for bicycle and
pedestrian facilities and amenities that meet local, state, and federal standards. Include a uniform citywide signage plan and comply with all Americans with Disabilities Act (ADA)
requirements.
Process Community Development General Fund Once -
CIR-13 Goal CIR-2 Circulation
Design and install comprehensive wayfinding signage in key locations of the city that address all modes of travel including transit, trucks, bicycles, and cars. Excessive signs and other visually intrusive landscape features shall be avoided.
Program Community Development General Fund As Needed Comprehensive wayfinding signage program installed citywide at end of 2022.
CIR-14 Goal CIR-2 Circulation
Update the Morro Bay Zoning Code to allow for compact
development and supporting active transportation amenities in key areas of the city. Standards to implement this policy could include bike parking requirements, pedestrian access
requirements, and circulation requirements for commercial uses.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.07.040, 17.08.040.C,
17.27.080, and 17.31.020.
CIR-15 Goal CIR-3 Circulation
Formally adopt level of service (LOS) and VMT as the standard for monitoring impacts to the complete transportation system, including standards for acceptable thresholds and mitigations.
Development Standards Community Development General Fund Concurrent - CIR-16 Goal CIR-3 Circulation
Monitor ongoing progress toward VMT and the transportationrelated goals of the Morro Bay Climate Action Plan, and update guidelines for transportation impact analysis to maintain acceptable progress.
Process Community Development General Fund Ongoing -
CIR-17 Goal CIR-4 Circulation
Revise the Morro Bay Zoning Code to eliminate minimum
parking requirements where appropriate in new or significantly renovated developments, and establish maximum parking
standards.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.27.030,17.27.040,
17.27.050, and 17.27.060.
CIR-18 Goal CIR-4 Circulation
Periodically conduct a citywide parking study to analyze the city’s existing parking infrastructure in order to effectively address and manage current and future parking needs.
Program
Community
Development; Public
Works
General Fund; User Fees Periodic -
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 NOI-1 Goal NOI-1 Noise
Use the noise and land use compatibility matrix (Table NOI-3) and Future Noise Contour Map (Figure NOI-3) as criteria to determine acceptability of a land use, including the
improvement/construction of streets and highways. Do not permit new noise-sensitive uses – including residential development, schools, hospitals, churches, meeting halls, auditoriums, music halls, theaters, libraries, transient lodging (i.e., motels and hotels), playground/parks, and offices – where noise levels are “normally unacceptable” or higher, if alternative locations are available for the uses in the city.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.
NOI-2 Goal NOI-1 Noise
Mitigate noise created by new proposed stationary noise sources, or by existing stationary noise sources which undergo modifications that may increase noise levels, so as not to exceed the noise level standards of Table NOI-5 on lands designated for noise-sensitive land use.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.
NOI-3 Goal NOI-1 Noise
Ensure that interior noise levels in new residential construction do not exceed 45 dBA Ldn, in accordance with the State of California’s Noise Insulation Standards. For nonresidential construction, the acceptable interior noise levels should not exceed the interior noise levels in Table NOI-4.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.
NOI-4 Goal NOI-1 Noise
Continue to enforce Title 25 insulation standards, including the interior noise level standards of 45 dBA Ldn in all habitable rooms for dwelling units.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.
NOI-5 Goal NOI-1 Noise Development Standards Community Development Development Fees Require acoustical studies for all discretionary development proposals that are likely to be exposed to existing or projected future noise levels that exceed the “normally acceptable” community noise exposure standard (Table NOI-3); and for projects that are likely to generate noise in excess of the community noise exposure standard (Table NOI-3); or as
determined by the Community Development Director. For
discretionary projects, acoustical analysis will be required at the time the application is accepted for processing. For
development not subject to discretionary approval and/or environmental review, the requirements for an acoustical analysis shall be implemented prior to the issuance of a building permit. An acoustical analysis
prepared pursuant to the Noise Element shall:
A. Be the financial responsibility of the applicant.
B. Be prepared by a qualified person experienced in the fields of environmental noise assessment and architectural acoustics.
C. Include representative noise level measurements with sufficient sampling periods and locations to adequately describe local conditions. Where actual field measurements cannot be conducted, all sources of information used for calculation purposes shall be fully described. When the use being studied is commercial or industrial use, all noise sources related to the service and maintenance of the facility shall be considered, including but not limited to parking lot and landscape
maintenance, refuse collection, truck loading/unloading activities, amplified sound, outdoor sales and activities, and all other noise sources associated with operation, maintenance, and service.
As Needed This is a requirement that is reviewed on all new projects.
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 NOI-6 Goal NOI-1 Noise
Require the incorporation of mitigation measures for projects that could expose noise-sensitive land uses to excessive noise levels to reduce such impacts. Table NOI-3 specifies the maximum noise levels that are normally acceptable,
conditionally acceptable, and unacceptable for new
development.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.
NOI-8 Goal NOI-1 Noise
Prepare a Noise Guidelines Manual based on the Acoustical Design Manual to ensure consistency with General Plan
standards and policies and contemporary practices.
Process
Community
Development; Public
Works
General Fund Once -
NOI-9 Goal NOI-1 Noise
Develop and employ procedures to ensure that noise mitigation measures required pursuant to an acoustical analysis are implemented in the development review and building permit processes.
Program Community Development General Fund Once -
Development Fees As Needed
NOI-5 Goal NOI-1 Noise Development Standards Community Development Development Fees environmental review, the requirements for an acoustical analysis shall be implemented prior to the issuance of a building permit. An acoustical analysis
prepared pursuant to the Noise Element shall:
A. Be the financial responsibility of the applicant.
B. Be prepared by a qualified person experienced in the fields of environmental noise assessment and architectural acoustics.
C. Include representative noise level measurements with sufficient sampling periods and locations to adequately describe local conditions. Where actual field measurements cannot be conducted, all sources of information used for calculation purposes shall be fully described. When the use being studied is commercial or industrial use, all noise sources related to the service and maintenance of the facility shall be considered, including but not limited to parking lot and landscape
maintenance, refuse collection, truck loading/unloading activities, amplified sound, outdoor sales and activities, and all other noise sources associated with operation, maintenance, and service.
D. Estimate existing and projected (20 years) noise levels in terms of the descriptors used in Tables NOI-4 and NOI-5, and compare those levels to adopted policies of the Noise Element.
Projected future noise levels shall take into account noise from planned streets, highways, and road connections.
E. Recommend appropriate mitigation to meet or exceed the policies and standards of the Noise Element, giving preference to site planning and design strategies over mitigation measures which require the construction of noise barriers or structural modifications to buildings which contain noise-sensitive land uses.
F. Estimate noise exposure after the prescribed mitigation measures have been implemented.
G. Describe a post-project assessment program which could be used to evaluate the effectiveness of the proposed mitigation measures.
When mitigation is required to satisfy the adopted policies and programs the following priorities for mitigation shall be observed where feasible:
First: Setback/open space separation
Second: Site layout/orientation/shielding of noise-sensitive uses with non-noise-sensitive uses
Third: Construction of earthen berms
Fourth: Structural measures, including acoustical treatment of buildings and noise barriers constructed of concrete, wood, or materials other than earth
This is a requirement that is reviewed on all new projects.
As Needed This is a requirement that is reviewed on all new projects.
NOI-7 Goal NOI-1 Noise Development Standards Community Development Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 NOI-10 Goal NOI-2 Noise
New development of noise-sensitive land uses shall not be permitted in areas exposed to existing or future levels of noise from transportation noise sources which exceed 60 dBA Ldn or CNEL (70 Ldn/CNEL for playgrounds and neighborhood parks) unless the project design includes effective mitigation measures to reduce noise in outdoor activity areas and interior spaces to or below the levels specified for the given land use in Table NOI4.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed on all new projects.
NOI-11 Goal NOI-2 Noise
Noise created by new transportation sources, including roadway improvement projects, shall be mitigated so as not to exceed the levels specified in Table NOI-4, within the outdoor activity and interior spaces of existing noise-sensitive land uses.
Zoning Code Update Community Development General Fund Concurrent This is a requirement that is reviewed on all new projects.
NOI-12 Goal NOI-2 Noise
Routes for use by heavy trucks will be located away from noisesensitive land uses when feasible. Municipal Code Update Public Works General Fund Once - NOI-13 Goal NOI-2 Noise
Encourage Caltrans and the County Engineer to incorporate noise reduction methods, including innovative noise reduction strategies, in the design of new and modified roads and highways. Sound walls should not be placed where they will block views in areas of scenic interest.
Process Public Works General Fund Ongoing -
NOI-14 Goal NOI-2 Noise
Seek funding for and implement alternative transportation improvements in an effort to reduce traffic-related noise in Morro Bay.
Program Public Works General Fund; Grants Periodic -
C-1 Goal C-2 Conservation
Become a Certified Local Government (CLG) by developing a historic preservation ordinance, establishing a historic preservation committee, and maintaining a system to regularly update cultural resources.
Process Community Development General Fund; Grants Once - C-2 Goal C-2 Conservation
Conduct inventories of historic and cultural resources in Morro Bay. Update these inventories as needed to ensure up-to-date information.
Process Community Development General Fund; Grants Periodic - C-3 Goal C-2 Conservation
Establish a local register that mimics requirements of the California Register of Historic Resources and the National Register of Historic Places, but focuses on locally important historic themes, such as Morro Bay’s legacy as a fishing village.
Program Community Development General Fund; Grants Ongoing - C-4 Goal C-2 Conservation
Identify historical themes and develop a historic context statement that is used to identify significant historical themes within a community that are often represented in the built environment, such as houses and infrastructure.
Process Community Development General Fund; Grants Once - Yes Ongoing
This is a requirement that is reviewed on all new projects, per MBMC
17.14.070.
C-5 Goal C-2
Require all discretionary proposals within the cultural resources overlay to consider the potential to disturb cultural resources. If preliminary reconnaissance suggests that cultural resources may exist, a Phase I cultural resources study shall be performed by a qualified professional meeting the Secretary of the Interior’s (SOI) Professional Qualification Standard (PQS) for archaeology and/or architectural history, as appropriate (NPS 1983). A Phase I cultural
resources study shall include a pedestrian survey of the project site and sufficient background research and field sampling to determine whether subsurface prehistoric or historic remains may be present. Archival research should include a records search at the Central Coast Information Center (CCIC) and a Sacred Lands File (SLF) search with the Native American Heritage Commission (NAHC). Where identified or potential Conservation Process Community Development User Fees
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 C-6 Goal C-4 Conservation
Establish greenhouse gas emissions thresholds of significance and standardize potential mitigation measures for both
discretionary and ministerial actions.
Process Community Development General Fund Once -
C-7 Goal C-4 Conservation
Update the City’s Climate Action Plan for consistency with SB 32 and SB 1383..
Process Community Development General Fund Once
In January-March 2024, a Cal Poly graduate class worked on a comprehensive update to the 2014 City of Morro Bay CAP.
C-8 Goal C-4 Conservation
Regularly communicate with County, state, and federal
departments and agencies, medical providers, and
organizations regarding available grant funding, such as for active transportation and healthy communities, that can aid the City in reaching its emissions targets. Work with local homeowners, businesses, and organizations to take advantage of these grants.
Process Community Development Grants Ongoing -
C-9 Goal C-5 Conservation
Develop, and update regularly, a database of low-cost and free programs for energy efficiency and weatherization for lowincome homeowners, and create a process for reaching out to such residents when opportunities are available.
Program Community Development General Fund; Grants Ongoing In progress. This information is included on a new page of the City website at www.morrobayca.gov/climateaction
C-10 Goal C-6 Conservation
Participate in regional energy efficiency financing programs, such as low-interest revolving loans, the California
Comprehensive Residential Building Retrofit Program, California First, and Property Assessed Clean Energy (PACE), that enable property owners to obtain low-interest financing for energy improvements.
Program Community Development General Fund; Grants Ongoing - C-11 Goal C-7 Conservation
Study the economic and environmental feasibility of obtaining water from additional sources, including brackish water reverse osmosis at the water treatment plant and rainwater harvesting and management. If a method is deemed feasible, develop a plan to incorporate it into the City's water management plan.
Process Public Works General Fund; User Fees Periodic - C-12 Goal C-7 Conservation
Identify and regulate point sources of pollution to protect riparian and marine areas.
Process Public Works General Fund; Grants Ongoing -
C-13 Goal C-7 Conservation
Continue to promote and enforce water conservation efforts in Morro Bay through methods such as tiering of water pricing, water usage restrictions, and incentives or requirements for water-efficient building, landscaping, and street design.
Program Public Works General Fund; User Fees Ongoing Completed and ongoing Yes Ongoing
This is a requirement that is reviewed on all new projects, per MBMC
17.14.070.
C-5 Goal C-2
Require all discretionary proposals within the cultural resources overlay to consider the potential to disturb cultural resources. If preliminary reconnaissance suggests that cultural resources may exist, a Phase I cultural resources study shall be performed by a qualified professional meeting the Secretary of the Interior’s (SOI) Professional Qualification Standard (PQS) for archaeology and/or architectural history, as appropriate (NPS 1983). A Phase I cultural
resources study shall include a pedestrian survey of the project site and sufficient background research and field sampling to determine whether subsurface prehistoric or historic remains may be present. Archival research should include a records search at the Central Coast Information Center (CCIC) and a Sacred Lands File (SLF) search with the Native American Heritage Commission (NAHC). Where identified or potential resources are of Native American origin, the appropriate Native American tribe(s) will participate with the qualified professional.
The technical report documenting the study shall include recommendations to avoid or, if avoidance is not feasible, reduce impacts to cultural resources.
Conservation Process Community Development User Fees
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 C-14 Goal C-8 Conservation
Continue to update Chapter 14.75 (Mandatory Construction and Demolition Debris Recycling Program) of the Morro Bay Municipal Code as higher diversion rates become feasible, necessary, or required.
Municipal Code Update Community Development General Fund As Needed City has implemented SB 1383.
C-15 Goal C-8 Conservation
Work with local and state agencies and organizations such as CalRecycle and the San Luis Obispo Integrated Waste
Management Authority to support the food waste curbside collection program and provide low-cost composting starter kits to residents interested in beginning a home composting bin.
Program Public Works Grants Ongoing City has implemented SB 1383.
C-16 Goal C-8 Conservation
Designate a Zero Waste champion from City staff to work with CalRecycle, San Luis Obispo Integrated Waste Management Authority, local private waste management companies,
residents, business owners, and multifamily housing landlords to teach and promote the zero waste goal and methods of attainment that are mutually beneficial.
Program Public Works General Fund Once
Public Works Department has dedicated staff that partners with IWMA to implement SB 1383.
C-17 Goal C-8 Conservation
Require that all multifamily and commercial facilities provide an adequate number of attractive and convenient waste diversion receptacles, as well as clear and convenient instructions regarding recyclable and compostable materials.
Municipal Code Update Public Works General Fund As Needed - C-18 Goal C-8 Conservation
Create and adopt a Zero Waste Action Plan to reach 100% waste diversion.
Process Public Works General Fund; Grants Once -
C-19 Goal C-9 Conservation
Conduct a view analysis to further delineate protected views identified in this section and implement Zoning Code criteria identifying scenic viewpoints to be protected, and development review procedures for designing future projects to protect scenic viewpoints.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.14.090.
C-20 Goal C-9 Conservation
Amend Section 17.48.190 (Protection of visual resources and compatible design) of the Zoning Code to incorporate the viewpoints and scenic views described in Figures C-7 and C-8 of the General Plan and impose specific visual standards for projects that could potentially impact those viewpoints and views.
Zoning Code Update Community Development General Fund Concurrent Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024. Relevant code sections include 17.14.090.
C-21 Goal C-9 Conservation
Review and update the Municipal Code, including sign
standards, building requirements, and visual resources, to ensure standards remain consistent with updated design
standards and the existing environment.
Municipal Code Update Community Development General Fund As Needed Completed, Zoning Code adopted 11/22/22, Amendments adopted December 2023, Certified by California Coastal Commission on March 15, 2024.
C-22 Goal C-9 Conservation
Establish an in-lieu fee program to fund infrastructure and utility undergrounding efforts. Program Community Development General Fund; Grants Once - C-23 Goal C-9 Conservation
Consider establishing a tree bank near Del Mar Park or another suitable location to sequester carbon and mitigate for impacts from the loss of trees in other areas of the city. The tree banking program would have guidelines and regulations established for how the mitigation could be utilized and for growing and maintaining the trees.
Program Community Development User Fees Ongoing -
OS-1 Goal OS-1 Open Space
Partner with the school district, community groups, and neighboring communities to identify and apply for grant opportunities to maintain, enhance, and expand park and recreational opportunities.
Process Recreation Services Grants Periodic Recreation Services worked with Morro Bay seniors to secure a grant for the annual Tunes at Tidelands music performances.
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 OS-2 Goal OS-1 Open Space
Work with local businesses, organizations, and landowners to install temporary public uses on vacant lots, particularly in the downtown and Embarcadero areas. Such uses could include parklets, community gardens or markets, or other temporary recreational facilities.
Program Recreation Services General Fund; Grants Ongoing - OS-3 Goal OS-1 Open Space
Implement an incentive program for local waterfront businesses and leaseholders to encourage regular maintenance and
upgrades of infrastructure at nearby trails or parks.
Program
Community
Development, Harbor
General Fund Once -
OS-4 Goal OS-2 Open Space
Identify opportunities in existing and future parks and open space to include multigenerational recreational facilities and gathering spaces, and seek funding opportunities to install and upgrade such facilities.
Program Recreation Services Grants Ongoing
In 2024, the Recreation and Parks Commission discussed pickleball courts at Del Mar Park and facilities at Coleman Park.
OS-5 Goal OS-2 Open Space
Complete a community recreational needs assessment that includes an evaluation of programs and events, access to parks and recreational uses, ability of residents of all ages and abilities to fully utilize these facilities, and ongoing maintenance needs.
Use the assessment to determine budget allocation, program offerings, and needed projects and equipment, and consider incorporating into a Parks Master Plan.
Process Recreation Services General Fund; Grants Periodic An Adult Sports Needs Assessment has been completed, and two new adult sports programs have been implemented.
OS-6 Goal OS-2 Open Space
Review park needs annually to determine community needs in relation to the allocation of available resources. Process Recreation Services General Fund Periodic - OS-7 Goal OS-3 Open Space
Partner with local organizations, schools, and regional agencies to collectively pursue funding opportunities, including grants and private sponsorships, to improve and maintain recreational areas and facilities in Morro Bay, and coordinate programming and amenities to maximize public access.
Process Recreation Services Grants Periodic Recreation Services partners with San Luis Coastal Unified School District to provide programming.
OS-8 Goal OS-3 Open Space
Create a sponsorship program for parks and community
programs that details the levels of sponsorship that a business or organization can provide, and any benefits or incentives the sponsor can receive in return. Allow for flexibility in the sponsorship program to accommodate the individual needs of the City and sponsor.
Program Recreation Services
General Fund;
Sponsorships
Once -
OS-9 Goal OS-3 Open Space
Identify coastal access points and citywide trails and incorporate them into the City’s GIS data and maps. Program Community Development General Fund Once - OS-10 Goal OS-6 Open Space
Develop park design guidelines that implement design
techniques to decrease flood risk through floodwalls, foreshore structures or improvements, sea gates, and surge barriers.
Process Recreation Services General Fund; Grants Once - OS-11 Goal OS-6 Open Space
Formally identify park structures and features that will require protection from or adaptation to sea level rise and changing climatic events, and seek funding to implement the identified adaptation strategies.
Process Recreation Services General Fund; Grants Periodic - OS-12 Goal OS-7 Open Space
When approving development in areas near agricultural areas, consider potential long-term impacts and require mitigation as part of development approval.
Development Standards Community Development Development Fees As Needed This is a requirement that is reviewed for applicability on all new projects.
PS-1 Goal PS-2 Public Safety
Inventory unreinforced brick masonry, soft-story, and other seismically vulnerable private buildings. Identify potential funding sources to assist with seismic retrofits.
Process Community Development General Fund; Grants
Once and
Periodic
-
Exhibit 1
General Plan Implementation Table - 2024 Exhibit 1
# Relevant Goals Element Action Type of Action Responsibility Funding Source EIR Mitigation? Time GP Annual Progress Report Status 2024 PS-2 Goal PS-4 Public Safety
Create a multifaceted emergency communications plan that details multiple methods of warning and communication
systems, emergency response, and evacuation assistance. This could include identification of "resiliency hubs." Such a plan should include social media, traditional news outlets, available apps, and "Amber Alert" style SMS messaging to residents, and identify the persons responsible for each role in the emergency communications plan. The plan should include coordination with the County and other regional emergency response
agencies.
Process Police General Fund; Grants Ongoing -
PS-3 Goal PS-4 Public Safety
Develop and pursue a list of City building improvements that would be resilient and habitable during a prolonged power or heating outage.
Process Community Development General Fund; Grants Once Periodic - EJ-1 Goal EJ-1
Environmental
Justice
Annually, meet with San Luis Obispo County Public Health and other potential partners to work to provide enrichment
programs for families and children, including after-school programs.
Program Recreation Services General Fund; Grants Periodic - EJ-2 Goal EJ-1
Environmental
Justice
Offer community equity training and diversity training to City staff either through the City or in partnership with other agencies or groups in the region. If possible, make the training available to government staff throughout the region and to the broader community.
Program City Council General Fund Ongoing -
EJ-3 Goal EJ-2
Environmental
Justice
Work with community organizations and local and regional agencies to develop brochures, web content, and other
materials to promote public awareness of health and social services available in the area.
Program Community Development General Fund; Grants Ongoing - EJ-4 Goal EJ-3
Environmental
Justice
Work with medical providers, transit agencies, private transit providers, and community representatives to develop an access plan that can provide service to major medical facilities in the region. Include recommendations for locating future medical facilities close to public transit.
Process Recreation Services General Fund Once -
EJ-5 Goal EJ-3
Environmental
Justice
Promote local food sourcing through procurement preferences and policies at local government facilities, schools, businesses, and institutions. Continue to promote marketing and
distribution initiatives that connect local agriculture to new markets such as retailers, restaurants, schools, food banks, and other businesses.
Program Community Development General Fund; Grants Periodic - EJ-6 Goals EJ-4
Environmental
Justice
Update the Morro Bay Community Vulnerability and Resilience Assessment every 10 years to include updated modeling and projections. This will allow the City to identify current priorities for vulnerable assets, populations, and environmental features.
Process Community Development General Fund; Grants Periodic - Exhibit 1
Major Planning Projects Reviewed in 2024
Permit
Number(s)
Type Description Location Status Initiated
date
Notes
CUP22-09 Combined
Concept and
Precise
Conditional
Use Permit
Reconstruct existing
bar/restaurant w/new
coffee shop, add 7-unit
hotel w/viewing deck on
2nd level. Docks will be
removed and replaced at
street frontage. New drop
off/loading zone.
801
Embarcadero
Issued 6/28/2022 City Council
approved
01/23/2024.
CUP23-
11/CDP23-
024
Conditional
Use
Permit/Coastal
Development
Permit
(Regular CDP)
Convert Quonset hut
building into hotel
1141 Main St Issued 11/6/2023 Planning
Commission
approved
02/06/2024.
CDP24-
001/PAR23-02
Coastal
Development
Permit
(Regular
CDP)/Parcel
Map
New three-lot subdivision.
The project will include
moving the existing
residence to the same
proposed lot as the
existing art studio.
900
Ridgeway
Issued 1/3/2024 Planning
Commission
approved
11/19/2024.
CDP24-014 Coastal
Development
Permit
(Regular CDP)
Replacement of an
existing residence that was
damaged beyond repair
in the January 2023 storms
499 Little
Morro Creek
Issued 4/1/2024 Planning
Commission
approved
05/21/2024.
Exhibit 2
CUP24-
01/CDP24-
018
Conditional
Use
Permit/Coastal
Development
Permit
(Regular CDP)
Expansion of an existing
second floor short-term
rental unit from 970 sf to
1285 sf with an 86 sf westfacing deck. Total retail on the lower level is 2500 sf
and following completion
of this addition, the shortterm rental units will be
2681 sf of interior living
space.
1108 Front Issued 4/10/2024 Planning
Commission
approved
08/06/2024.
CUP24-04 Conditional
Use Permit
Development and
redevelopment of City
lease sites to include the
renovation of an existing
office building, demolition
of existing vacation rental
buildings, construction of a
new two-story building with
7 hotel rooms, and
construction of 1 new
approximately 420-sf
commercial retail building.
A new water area will
include 1 new floating
dock, 3 new finger slips,
and a finger dock space
with a low floating dock
for a kayak rental business.
A new Harborwalk
connection is proposed to
connect pedestrians along
the Embarcadero to
Tidelands Park.
495
Embarcadero
Issued (as of
January
2025)
8/15/2024 Project was
agendized for
Planning
Commission
meeting on
10/29/2024
and was
continued to
11/19/2024.
Project was
denied by the
Planning
Commission at
11/19 meeting.
The Applicant
appealed the
denial to the
City Council,
and the
project was
approved by
City Council on
01/28/2025.
Exhibit 2
Administrative Coastal Development Permits Processed in Calendar Year 2024 Project Type Number of Permits Issued
New Single-Family Homes 7
Single-Family Home Demo/Rebuilds 4
Single-Family Home Demos 1
New ADUs 11
ADU Conversions 8
JADUs 2
New Commercial 0
Commercial Additions/Alterations 4
Building Permits Issued in Calendar Year 2024
Residential Projects Number Issued Valuations
Single Family Homes 15 $6,710,184
Accessory Dwelling Units (ADU/JADU) 19 $1,229,750
Residential Additions/Alterations
(Includes Reroofs) 255 $6,705,293
Multi Family (new, additions, alterations) 2 $333,890
Total Residential (from above) 291 $14,979,117
Other
(Includes electrical, mechanical, plumbing, solar,
addendums and residential demolitions)
219 $985,172
Grand Total (all residential) 510 $15,964,289
Commercial Projects
New Commercial 0 $0
Commercial Addition/Alterations 17 $1,105,170
Total Commercial 17 $1,105,170
Total Inspections Performed 2,700
www.morrobayca.gov | (805) 772-6261 | www.facebook.com/CityofMorroBay November 5, 2025
Attachment #2
RE: Historic Preservation – Goals, Current Tools, and Potential Ordinance Options Goal of Historic Preservation Efforts
The goal of historic preservation efforts in the City of Morro Bay is to preserve historic buildings and protect unique architectural elements that contribute to the City’s charm and character.
Current Tools and Policies
The City does not currently have a Historic Preservation Ordinance, and instead relies on Plan Morro Bay policies and the California Environmental Quality Act (CEQA) to protect historic resources when reviewing development projects that trigger a discretionary permit. The City does not have regulatory tools to protect historic resources for ministerial projects, such as some residential additions and alterations. Likewise, the City is not currently able to protect locally important resources that do not meet the State’s definition as historic, even for projects with discretionary permits.
Under CEQA, a property is typically considered a historic resource if it is at least 50 years old and meets certain criteria for significance. Under current City Municipal Code, if an applicant proposes to demolish or significantly alter a structure that meets these criteria, staff will require a preliminary historic evaluation to be performed on the property. This evaluation may recommend certain mitigation measures to lessen the impact of the project on the historic resource or may require certain documentation to preserve the legacy of the structure.
In addition, CEQA contains protections for any structure that is designated, or eligible to be designated, as a historical resource through the California Register of Historical Resources. If a project proposes the demolition of such a resource, CEQA would classify the demolition as a significant and unavoidable environmental impact, requiring the drafting of an Environmental Impact Report (EIR). As the lead agency for such a project under CEQA, the City would not be able to approve the project unless it adopts findings of overriding considerations. The findings would need to state that the social and economic benefits of the project outweigh the significant impact on the historic resources.
However, when staff receive an application that is not considered a project under CEQA, these policies do not apply. Herein lies the risk currently posed on the City by not having a Historic Preservation Ordinance – outside of what is allowed under CEQA, the City has no ability to impose preservation measures.
www.morrobayca.gov | (805) 772-6261 | www.facebook.com/CityofMorroBay Plan Morro Bay calls for the creation of a plan to address historic and cultural resource issues in Morro Bay in Policy C-2.1: Historic Research Strategy. The document includes a number of additional policies on historic preservation, outlined in the following table.
Plan Morro Bay Policies
Policy ID Policy Status
C-2.1: Historic
Research Strategy
Develop a plan to address historic and cultural resource issues in Morro Bay, which may include conducting and
updating inventories, exploring certification options, and developing context statements.
Underway
C-2.2: Interagency
Cooperation
Work with the Historical Society of Morro Bay and other local groups on historic objectives.
Underway (2022
Draft Ordinance)
C-2.3: Protection
of Cultural
Resources
Ensure the protection of historic, cultural, and
archaeological resources during development,
construction, and other similar activities. Development shall avoid, to the maximum extent feasible, adversely
impacting historic, cultural, and/or archaeological
resources, and shall include adequate BMPs to address
any such resources that may be identified during
construction, including avoidance, minimization, and
mitigation measures sufficient to allow documentation,
preservation, and other forms of mitigation. If the
resource(s) in question are of Native American origin,
develop avoidance or minimization measures in
consultation with appropriate Native American tribe(s).
Ongoing
C-2.4: Cultural
Resources Overlay
Develop a cultural resources overlay to protect historic, cultural, archaeological, and paleontological resources in Morro Bay.
Complete (CRP
Overlay)
Plan Morro Bay also establishes a set of implementation actions directing staff to focus on historic preservation efforts. These measures are listed in the following table.
www.morrobayca.gov | (805) 772-6261 | www.facebook.com/CityofMorroBay Plan Morro Bay Policies
Implementation Action ID Action Status
Implementation Action C-1 Become a Certified Local Government (CLG) by developing a historic preservation ordinance,
establishing a historic preservation committee, and
maintaining a system to regularly update cultural
resources.
Not started
Implementation Action C-2 Conduct inventories of historic and cultural resources in Morro Bay. Update these inventories as needed to
ensure up-to-date information.
Partial (CRP
Overlay)
Implementation Action C-3 Establish a local register that mimics requirements of the California Register of Historical Resources and the National Register of Historic Places, but focuses on
locally important historic themes, such as Morro
Bay’s legacy as a fishing village.
Not started
Implementation Action C-4 Identify historical themes and develop a historic context statement that is used to identify significant
historical themes within a community that are often
represented in the built environment, such as houses
and infrastructure.
Not started
Implementation Action C-5 Require all discretionary proposals within the cultural resources overlay to consider the potential to disturb
cultural resources. If preliminary reconnaissance
suggests that cultural resources may exist, a Phase I
cultural resources study shall be performed by a
qualified professional meeting the Secretary of the
Interior’s Professional Qualification Standard for
archaeology and/or architectural history, as
appropriate (NPS 1983).
Complete
As indicated by the policies and implantation actions outlined in the preceding tables, Plan Morro Bay recognizes the challenge facing the City regarding historic preservation and calls for the community to come together and make decisions on how it wants to respond.
Ordinance Options: Voluntary vs. Mandatory Participation Historic Preservation Ordinances may usually take one of two forms – a voluntary approach, or a mandatory approach. Both options have their own pros and cons and are summarily effective to different degrees.
www.morrobayca.gov | (805) 772-6261 | www.facebook.com/CityofMorroBay Voluntary Participation
A Historic Preservation Ordinance that relies on voluntary participation will likely face the path of least resistance. However, this also means that it might be the least effective at achieving the City’s stated goal – the preservation of historic buildings and architectural elements that contribute to the City’s unique charm and character.
Under a voluntary ordinance, property owners may decide to participate in the preservation process, submitting their property for designation. Under this approach, the City would need to establish incentives for property owners to enroll in the program, such as a Mills Act program, relief from zoning standards, or other economic opportunities. Without these incentives, there is little reason for a property owner to voluntarily submit to the more intense standards that a preservation ordinance may define.
Mandatory Participation
On the other hand, some jurisdictions opt to establish a historic preservation ordinance that mandates participation. In such cases, criteria for a local historic resource register are drafted and a survey is performed to identify potential properties for inclusion. If designated, these properties are compelled to follow certain requirements for preservation when carrying out a project, such as a remodel, addition, or even a minor window replacement. At times, these conditions can become cost prohibitive, making it important for jurisdictions to provide an avenue for relief in some cases. The benefit of the mandatory approach is that it will be the most effective method for protecting historic resources but will raise property rights concerns.
Conclusion
Today, the City of Morro Bay relies on CEQA and the policies outlined in Plan Morro Bay to guide its historic preservation efforts. These statutes and polices are sufficient for most projects, however, the City lacks the ability to preserve resources when a project application does not trigger discretionary review under CEQA. There is concern amongst residents and local officials that the City is at risk of losing some of its historic resources to such projects, prompting staff to research potential approaches to drafting more locally defined historic preservation criteria and guidelines. Two main approaches have been identified – voluntary and mandatory – each with their own set of pros and cons, or risks and rewards. A voluntary approach will likely raise no objections amongst the community but may fail to preserve some of the City’s most precious historic resources. A mandatory approach, on the other hand, will likely be much more effective at achieving the City’s goals, but will place additional burden on property owners. The City Council must consider what approach is best for the community, weighing the cost of achieving its preservation goals and desired outcomes.
www.morrobayca.gov | (805) 772-6261 | www.facebook.com/CityofMorroBay Attachment 3 – Preliminary Draft Zoning Code Amendments November 21, 2025
RE: Zoning Code Amendments Write-Up to be Included with General Plan Progress Report Agenda Item
______________________________________________________________________ ________
Zoning Code Amendments
Throughout the year, Community Development Department staff heard from residents about certain provisions in the previous Zoning Code that were not carried forward to the new Code during the recent comprehensive update. When the 2024 General Plan Progress Report was presented to the Planning Commission during the regular hearing on November 5th, the Commission voted to provide a recommendation to the City Council that these provisions be adopted back into the current Zoning Code.
These amendments require noticing, environmental review, and public hearings before Planning Commission and the City Council before they are ready for adoption. Some items included in the amendment package will need to be considered by the Coastal Commission, if they are included in the Implementation Plan (IP) of the City’s Local Coastal Program (LCP). At this time, staff have elected to include the following proposed Zoning Code amendments in the General Plan Progress Report presentation to provide the public and City Council with an idea of what the changes will look like. Staff anticipate these changes going through the formal process described above in early 2026.
Measure A-24 Consistency Amendment
This amendment shows how the Zoning Code will be updated to reflect the process established through Measure A-24 to change the General Plan land use designations of specific parcels within the City. The measure was approved by voters on November 5, 2024, and will be included in Chapter 17.46 of the Zoning Code.
Bluff Top Height Limit
The Beach Street Specific Plan (1986) contained a standard that limited building height to below the top of the adjacent bluff, located between Beach and Surf Streets and to the east of Front Street. When the Zoning Code was updated in 2024, the Beach Street Specific Plan was repealed and some of its standards were incorporated into Title 17 of the Municipal Code, or the Zoning Code. The bluff top height limit, however, was not carried forward. The attached redline edits to Section 17.08.040, Supplemental Regulations (in Commercial Districts), adds this height restriction back into the Code.
Sloping Lot Adjustment
The previous Zoning Code contained a “sloping lot setback adjustment” that enabled homes on certain sloping lots to locate a garage with a 5-foot front setback. Depending on the total area of a lot, the normal setback in residential zones is 10 or 20 feet. This adjustment helps minimize excessive grading and allows for the more practical development of homes on sloping lots. The adjustment only applies to residential lots with a slope of 15% or more, and where the centerline of the right-of-way is seven feet above or below the front half of the lot at a point 50’ away from that centerline.
The Planning Commission suggested this amendment to allow for new homes to develop on steep slopes consistent with past development patterns and procedures. This issue came up at Planning Commission when they reviewed a proposal for a new house on Juniper Street that required a variance to have the same front yard setback as other homes on the block.
Because this adjustment impacts development standards outlined within the City’s LCP Implementation Plan (IP), it is also included within the IP. This means that after Planning Commission and City Council approval, it must be approved by the Coastal Commission.
The attached redlines show where the adjustment has been added into Section
17.23.140, Sloping Lots (IP), utilizing the same language as the previous Zoning Code.
Attachment 3A – Preliminary Draft Code Amendment – Measure A24 Consistency Morro Bay, California, Code of Ordinances Created: 2024-08-20 12:12:34 [EST] (Supp. No. 22)
Chapter 17.46 AMENDMENTS TO THE GENERAL PLAN, ZONING CODE, AND
ZONING MAP
Sections:
17.46.010 Purpose.
This chapter establishes a process for consideration and review of general plan and zoning amendments.
More specifically, the purpose of this chapter is to:
A. Establish procedures for making changes to the general plan to address changes in applicable law and problems and opportunities that were unanticipated at the time of general plan adoption or the last amendment.
B. Establish procedures for making changes to the text of this title or to the zoning map whenever the public necessity, convenience, general welfare, or good zoning practice justify such amendment, consistent with the general plan.
(Ord. No. 662, § 2, 12-13-23)
17.46.020 Applicability.
The procedures in this chapter shall apply to:
A. All proposals to change the text of the general plan and the maps that illustrate the application of its provisions, and
B. All proposals to change the text of this title, a zoning district classification, or a zoning district boundary line shown on the zoning map.
(Ord. No. 662, § 2, 12-13-23)
17.46.030 Initiation.
An amendment to the general plan, zoning code, or zoning map may be initiated by any qualified applicant identified in Section 17.36.020, Application Forms and Fees, or a motion of the city council. (Ord. No. 662, § 2, 12-13-23)
17.46.040 Application requirements.
Applications for a general plan or zoning amendment shall be filed with the director in accordance with the provisions set forth in Section 17.36.020, Application Forms and Fees. In addition to any other application requirements, the application for a general plan or zoning amendment shall include such additional information and supporting data as considered necessary to process the application. (Ord. No. 662, § 2, 12-13-23)
Created: 2024-08-20 12:12:34 [EST]
(Supp. No. 22)
17.46.050 Maximum number of general plan amendments.
Except as otherwise provided by applicable law, no mandatory element of the general plan can be amended more frequently than four times during any calendar year. Subject to that limitation, an amendment may be made at any time, as determined by the city council. Each amendment may include more than one change to the general plan.
(Ord. No. 662, § 2, 12-13-23)
17.46.060 Review procedures and public notice.
A. Staff Report. The director shall prepare a report and recommendation to the planning commission on any application for an amendment. The report shall include, but is not limited to, a discussion of how the proposed amendment complies with the purposes of this chapter, a determination as to whether the proposed amendment is consistent with other plans that the city council has adopted, and an environmental document prepared in compliance with the California Environmental Quality Act.
B. Public Hearing Required. All amendments shall be referred to the planning commission, which shall hold at least one public hearing on any proposed amendment.
C. Public Notice. At least ten days before the date of the public hearing, the planning division shall provide notice consistent with Section 17.36.060, Public Notice. Notice of the hearing also shall be mailed or delivered at least ten days prior to the hearing to the San Luis Coastal Unified School District and any other local agency expected to provide essential facilities or services to the property that is the subject of the proposed amendment.
(Ord. No. 662, § 2, 12-13-23)
17.46.070 Planning commission hearing and recommendation.
A. Planning Commission Hearing. The planning commission shall conduct a public hearing in conformance with Section 17.36.070, Conduct of Public Hearings.
B. Recommendation to Council. Following the public hearing, the planning commission shall make a recommendation on the proposed amendment to the city council. Such recommendation shall include the reasons for the recommendation, findings related to supporting the recommendation, and the relationship of the proposed amendment to applicable plans, and shall be transmitted to the city council in the form of a council staff report, prepared by planning staff, with a copy of the approved minutes from the planning commission meeting.
(Ord. No. 662, § 2, 12-13-23)
17.46.080 City council hearing and action.
A. City Council Hearing. After receiving the report from the planning commission, the city council shall hold at least one duly-noticed public hearing. The notice shall include a summary of the planning commission recommendation. If the planning commission has recommended against the adoption of such amendment, the city council is not required to take any further action unless an interested party files a written request for a hearing with the city clerk within ten days after the planning commission action.
B. City Council Action. After the conclusion of the hearing, the city council may approve, revise, or deny the proposed amendment. If the council proposes any substantial revision not previously considered by the
Created: 2024-08-20 12:12:34 [EST]
(Supp. No. 22)
planning commission during its hearings, the revision shall first be referred back to the planning commission for report and recommendation, but the planning commission shall not be required to hold a public hearing.
The failure of the planning commission to report within forty-five days after the referral, shall be deemed a recommendation to approve and the amendment shall be returned to council for adoption. (Ord. No. 662, § 2, 12-13-23)
17.46.090 General plan consistency required for zoning amendments.
The planning commission shall not recommend and the city council shall not approve a zoning amendment unless the proposed amendment is found to be consistent with the general plan.
17.46.100 Voter Approval Required to Change Land Use Designations for Specified Parcels On November 5, 2024, Morro Bay voters approved a ballot initiative (Measure A-24) to amend the City of Morro Bay General Plan / Local Coastal Program in order to prohibit, unless approved by voters, any changes to the land use designations of Visitor Serving Commercial and/or Commercial/Recreation Fishing, for Specified Parcels as shown in Measure A-24, Exhibit B – Parcels/Areas Affected by this Initiative. The Specified Parcels generally include approximately 103 acres of real property, including the harbor east of Morro Rock, 63 acres of former power plant portions along sides of Embarcadero Road from Beach Street to Atascadero Road, and along Coleman Drive. As required by A-24, any request to change the land use designations of Specified Parcels shall require voter approval, in addition to the applicable procedures in this Chapter. (Ord. No. 662, § 2, 12-13-23)
Attachment 3B – Preliminary Draft Code Amendment – Bluff Top Height Limit Between Beach and Surf Streets
Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
17.08.040 Supplemental regulations.
A. Building Transparency/Required Openings, Non-Residential Uses. Exterior walls of buildings or portions of buildings containing non-residential uses facing and within twenty feet of a front or street side lot line shall include windows, doors, or other openings for at least fifty percent of the building wall area located between two and one-half and seven feet above the level of the sidewalk. Such walls may run in a continuous plane for no more than thirty feet without an opening.
1. Design of Required Openings. Openings fulfilling this requirement shall have transparent glazing and provide views into work areas, display areas, sales areas, lobbies, or similar active spaces, or into window displays that are at least three feet deep.
2. Reductions through Design Review. The building transparency requirement may be reduced or waived through design review upon finding that:
a. The proposed use has unique operational characteristics with which providing the required windows and openings is incompatible, such as in the case of a cinema or theater; and b. Street-facing building walls will exhibit architectural relief and detail, and will be enhanced with landscaping in such a way as to create visual interest at the pedestrian level.
FIGURE 17.08.040(A): BUILDING TRANSPARENCY/REQUIRED OPENINGS B. Exterior Building Materials and Colors.
1. A unified palette of quality materials shall be used on all sides of buildings.
2. Exterior building materials shall be stone, brick, stucco, concrete block, painted wood clapboard, painted metal clapboard or other quality, durable materials approved through design review.
C. Pedestrian Access. On-site pedestrian circulation and access shall be provided according to the following standards.
1. Internal Connections. A system of pedestrian walkways shall connect all buildings on a site to each other, to on-site automobile and bicycle parking areas, and to any on-site open space areas or pedestrian amenities.
2. To Circulation Network. Regular connections between on-site walkways and the public sidewalk shall be provided. An on-site walkway shall connect the primary building entry or entries to a public sidewalk on each street frontage. Such walkway shall be the shortest practical distance between the
Attachment 3B – Preliminary Draft Code Amendment – Bluff Top Height Limit Between Beach and Surf Streets
Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
main entry and sidewalk, generally no more than one hundred twenty-five percent of the straight line distance.
3. To Neighbors. Direct and convenient access shall be provided from commercial and mixed-use projects to adjoining residential and commercial areas to the maximum extent feasible while still providing for safety and security.
4. To Transit. Safe and convenient pedestrian connections shall be provided from transit stops to building entrances.
5. Interior Pedestrian Walkway Design.
a. Walkways shall have a minimum clear unobstructed width of six feet, shall be hard-surfaced, and paved with permeable materials.
b. Where a required walkway crosses driveways, parking areas, or loading areas, it must be clearly identifiable through the use of a raised crosswalk, a different paving material, or similar method. c. Where a required walkway is parallel and adjacent to an auto travel lane, it must be raised or separated from the auto travel lane by a raised curb at least four inches high, bollards, or other physical barrier.
D. Additional Supplemental Regulations, CC, TMU, NC, and VSC Districts. The following additional supplemental regulations apply in the CC, TMU, NC, and VSC districts.
1. Building Orientation.
a. Buildings shall be oriented to face public streets.
b. Building frontages shall be generally parallel to streets. c. Buildings shall be designed and oriented to minimize the visual intrusion into adjoining residential properties. Window, balcony, and deck locations shall be directed away from window areas of adjoining residences (on-site or off-site).
2. Building Entrances, Nonresidential Uses.
a. The primary building entrance shall face a public sidewalk. b. Entrances located at corners shall generally be located at a forty-five-degree angle to the corner and shall have a distinct architectural treatment to animate the intersection and facilitate pedestrian flow around the corner. Different treatments may include angled or rounded corners, arches, and other architectural elements.
c. All building and dwelling units located in the interior of a site shall have entrances from a sidewalk that is designed as an extension of the public sidewalk and connect to a public sidewalk.
Attachment 3B – Preliminary Draft Code Amendment – Bluff Top Height Limit Between Beach and Surf Streets
Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
FIGURE 17.08.040(D.2): BUILDING ENTRANCES, CC, TMU, NC, AND VSC DISTRICTS
3. Limitations on Location of Parking. Off-street parking spaces shall be located to the rear of principal buildings whenever possible. Above ground parking may not be located within forty feet of a street facing property line. Exceptions may be granted through design review upon finding that:
a. The design incorporates habitable space built close to the public sidewalk to the maximum extent feasible; and
b. The site is small and constrained such that underground parking or surface parking located more than forty feet from the street frontage is not feasible.
E. Rooftop View Decks, VSC District between Beach Street and Surf Street. In the VSC district between Beach Street and Surf Street, the use of a rooftop for decks for viewing or similar uses may be permitted subject to conditional use permit approval if the planning commission finds that by its location, screening, hours of operation, or other features, the use will not significantly adversely affect residences on the blufftop, especially during night time hours.
F. Additional Height Limitations, VSC District between Beach Street and Surf Street. In the VSC District between Beach Street and Surf Street, no portion of any building shall exceed the elevation of the bluff located to the east of Front Street.
(Ord. No. 662, § 2, 12-13-23)
Attachment 3C – Preliminary Draft Code Amendment – Sloping Lot Adjustment Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
17.07.030 Development standards (IP).
Table 17.07.030 A, Development Standards—RS districts, and Table 17.07.030 B, Development Standards— RL, RM, and RH districts, prescribe the development standards for residential districts. Additional regulations are denoted in the right hand column. Section numbers in this column refer to other sections of this code. Additional development standards are specified following the tables below.
TABLE 17.07.030 A: DEVELOPMENT STANDARDS—RS DISTRICTS
Standard RS-A RS-B Additional
Lot Size (square feet) Information
2,500 sq ft or
less
2,501 to 4,300
sq ft
4,301 sq ft and
greater
Lot and Density Standards
Minimum
Density
(units/acre)
4.1 Maximum
Density
(units/acre)
7.0; or as allowed for SB 9 related development
pursuant to
17.07.030 A
Maximum Lot
Coverage (%
of lot)
50 50 45 50 See Section
17.02.030 H,
Determining
Lot Coverage
Building Form and Location Standards
Maximum
Building
Height (ft)
25 25 25
For parcels
west of
Highway 1 and
north of No
Name Creek,
no portion of
any structure
except vents
and chimneys
may extend
above the 50
foot elevation
above sea
level
14; 17 if roof
pitch is 4:12 or
greater
See Section
17.02.030.C,
Measuring
Height
and Section
17.23.070,
Heights and
Height
Exceptions
Maximum
Number of
Stories
n/a n/a n/a 1 See Section
17.02.030 C.2,
Measuring the
Number of
Stories
Attachment 3C – Preliminary Draft Code Amendment – Sloping Lot Adjustment Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
Maximum
Building Wall
Height (ft)
30 30 30 n/a
Minimum
Setbacks (ft)
Front 10 15 20 15 See Section
17.02.030 J,
Determining
Setbacks
(Yards),
Section
17.23.140,
Sloping Lots,
Section
17.23.050,
Encroachments
into Required
Setbacks,
and Section
17.27.100 F,
Driveway
Length and
Accessibility
Interior Side 3 10% of lot
width, max 5
5 5
Corner Side 6 20% of lot
width, max 10
10 15
Rear 5 5 10 5 See Section
17.23.050,
Encroachments
into Required
Setbacks
TABLE 17.07.030 B: DEVELOPMENT STANDARDS—RL, RM, AND RH DISTRICTS Standard RL RM RH Additional
Information
Lot and Density Standards
Minimum Density
(units/acre)
0 7.1 15.1
Maximum
Density
(units/acre)
4; or as allowed
for SB 9 related
development
pursuant to
17.07.030 A
15 27
Maximum Lot
Coverage (% of
lot)
45 50 60 See Section
17.02.030 H,
Attachment 3C – Preliminary Draft Code Amendment – Sloping Lot Adjustment Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
Determining Lot
Coverage
Building Form and Location Standards
Maximum
Building Height
(ft)
25 25 30 See Section
17.23.070,
Heights and
Height Exceptions
Maximum Wall
Height (ft)
30 n/a n/a
Minimum
Setbacks (ft)
For attached single-unit dwellings, required setbacks apply to the ends of rows of the dwellings.
Front 20 Lots 2,500 sf or
less: 10;
Lots 2,501 to
4,300 sf: 15;
Lots 4.301 sf or
greater: 15 on
West St,
otherwise 20
15 See Section
17.02.030 J,
Determining
Setbacks (Yards),
and Section
17.23.050,
Encroachments
into Required
Setbacks
See Section
17.27.100 F,
Driveway Length
and Accessibility
Interior Side 10 10% of lot width,
min 3, max 5
5 See Section
17.02.030 J,
Determining
Setbacks (Yards),
and Section
17.23.050,
Encroachments
into Required
Setbacks
Corner Side 10 20% of lot width,
min 5, max 10
20% of lot width,
min 5, max 10
See Section
17.02.030 J,
Determining
Setbacks (Yards),
and Section
17.23.050,
Encroachments
into Required
Setbacks
See Section
Attachment 3C – Preliminary Draft Code Amendment – Sloping Lot Adjustment Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
17.27.100 F,
Driveway Length
and Accessibility
Rear 20 5 5, 20 when
abutting an RL
District
See Section
17.02.030 J,
Determining
Setbacks (Yards),
and Section
17.23.050,
Encroachments
into Required
Setbacks
Landscaping and Open Space Standards
Minimum
Landscaping (% of
lot)
35 n/a n/a See Chapter
17.25,
Landscaping
Minimum Open
Space (sq ft per
residential unit)
n/a Studio: 50
1-bedroom: 100
2 or more
bedrooms: 150
See Section
17.23.100, Open
Space
A minimum of 50
square feet of
private open
space shall be
provided per unit.
Additional Development Standards.
A. Senate Bill (SB) 9 Related Development. In the RS and RL districts, two dwelling units are allowed per lot if the following standards are met:
1. The proposed development shall not be located in any of the following areas:
a. Prime farmland or farmland of statewide importance.
b. Wetlands.
c. High or very high fire hazard severity zone.
d. Hazardous waste site.
e. Within a delineated earthquake fault zone.
f. Within a special flood hazard area/subject to a letter of map revision. g. Within regulatory floodway.
h. Lands identified for conservation in an adopted natural community conservation plan. i. Habitat for protected species.
j. Lands under conservation easement.
Attachment 3C – Preliminary Draft Code Amendment – Sloping Lot Adjustment Created: 2025-10-07 09:04:29 [EST]
(Supp. No. 25)
k. Within a historic district or property included on the state historic resources inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
2. The proposed development shall not require demolition or alteration of any of the following types of housing:
a. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. b. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power.
c. Housing that has been occupied by a tenant in the last three years.
3. The proposed development shall not be located on a lot on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within fifteen years before the date that the development proponent submits an application.
4. The proposed development shall not involve the demolition of more than twenty-five percent of the existing exterior structural walls.
5. A maximum of two residential units are allowed per lot, inclusive of accessory dwelling units and junior accessory dwelling units.
6. Each unit constructed pursuant to this subsection shall comply with all provisions of the base, overlay, or specific plan district, except as modified by this section. a. Interior Side and Rear Setbacks. A minimum four foot side and rear setback is required; however no setback is required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. b. Parking. A minimum of one space per unit shall be provided unless:
i. The lot is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
ii. There is a car share vehicle located within one block of the lot. c. Rental Limitations. Rental terms shall be a minimum of thirty consecutive days.
7. If located in the coastal zone, the project must also be found consistent with all applicable provisions of the LCP, including those specified in Section 17.14.040 B. (Ord. No. 662, § 2, 12-13-23)
17.23.140 Sloping lots (IP).
The following standards apply to development on lots with an average slope of fifteen percent or greater prior to grading.
Created: 2025-10-07 09:04:34 [EST]
(Supp. No. 25)
A. Downhill Facing Building Elevation. The building elevation facing the downslope shall have a maximum height of twenty feet from finished grade with sufficient articulation from that building face to the next highest story to minimize the visual height and bulk as viewed from the lowest finished grade.
B. Articulation. The apparent size of exterior wall surfaces visible from off the site shall be minimized through the use of bays, recesses, stepbacks, overhangs, landscaping, and/or other means of horizontal and vertical articulation to create changing shadow lines and break up massive forms.
C. Foundation Design. The use of multi-level foundations (floor levels separated by a minimum of four feet) shall be the standard design for residential structures unless an alternative design, with less grading, is approved through the design review process as more appropriate for the site.
D. Underfloors. Areas between the lowest floor and finished grade shall not exceed six feet in height.
E. Decks. No portion of the walking surface of a deck with visible underpinnings shall exceed a height of six feet above grade. Decks shall be integrated into the architecture of the structure, and not appear as an add-on to the primary building mass.
F. Sloping Lot Adjustment. Notwithstanding any other requirements in this title, in cases where the elevation of the front half of the lot at a point fifty feet from the centerline of the public right-of-way is seven feet above or below the grade of said centerline, a private garage, attached or detached, may be built to within five feet of the front line of the lot, provided that the garage has an automatic rolling type garage door opener. For lots located below street grade only, the garage roof portion of the structure may be permitted to extend ten feet above the street grade at the garage location unless the height of the residence is allowed to be constructed taller in which case the garage may be permitted to be constructed to the height of the rest of the residence.
FIGURE 17.23.140: SLOPING LOTS
(Ord. No. 662, § 2, 12-13-23)