Morro Bay City Council
January 13, 2026

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, January 13, 2026, 5:30 p.m.

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

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

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

1. ESTABLISH QUORUM AND CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report

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

3.c City Manager Reports, Announcements and Presentations

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

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

2. Morro Bay Power Plant (Vistra)

3. Offshore Wind Energy

4. Morro Elementary School

5. Shared Fire Services

4. RECOGNITION AND PRESENTATIONS

4.a City of Morro Bay Years of Service Awards 6

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

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

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

Recommended Action
Approve consent agenda items 6.a through 6.h as submitted.

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

1. December 9, 2025 - Special Closed Session Meeting 19

6.b Approval of Proclamations

(City Clerk)
Recommended Action
Approve as submitted.

1. Proclamation recognizing Big Brothers Big Sisters of San Luis Obispo County during the month of January as National Mentoring Month Proclamation
21 6.c Professional Services Agreement with Stillwater Sciences, Inc., for the Morro Creek Watershed Management Plan
22 (Public Works Department)
Recommended Action
Authorize the City Manager to execute a Professional Services Agreement with Stillwater Sciences, Inc. in the amount of $1,381,363 for the Morro Creek Watershed Management Plan and to execute amendments to the agreement increasing term duration by up to one additional year and cost amendments by a contingency amount of up to 10%.

6.d Notice of Completion for the Brackish Water Reverse Osmosis Facility Re-skin and Re-roofing Project (Project No. MB2024-UT09)
121
(Public Works Department)
Recommended Action
Accept the work as performed by Newton Construction &
Management, Inc; and

1. Authorize the City Engineer to execute and record a Notice of Completion for the project.

2. 6.e Facility Use Agreement between the San Luis Obispo County Office of Emergency Services and the City of Morro Bay for use of the Morro Bay Community Center located at 1001 Kennedy Way, Morro Bay, California 93442 as an Emergency Disaster Shelter
124
(Fire Department)
Recommended Action
Authorize City staff to sign the facility use agreement.

6.f Status Update and Reconfirm Emergency for Morro Creek Bank Stabilization Project
130
(Public Works Director)
Recommended Action
Receive and file status update and reconfirm the declaration of emergency for the Morro Creek Bank Stabilization Project by four fifths vote.

6.g Approve Tognazzini's Dockside & Dockside Too Lease Agreement 132 (Harbor Department)
Recommended Action
Adopt Resolution No. 02-26 approving new lease agreement for Tognazzini’s Dockside & Dockside Too located at 1245 and 1235 Embarcadero.

6.h Trash Receptacle Donation from the Friends of the Morro Bay Harbor Department
193
(Harbor Department)
Recommended Action
Accept the donated trash receptacles from the Friends of the Morro Bay Harbor Department and authorize the City Manager to execute the Donation Agreement.

7. PUBLIC HEARING ITEMS

7.a Short-Term Rental Ordinance Implementation - Quarterly Update, and Introduction of Ordinance No. 674, amending Title 1 (General Provisions) of the Morro Bay Municipal Code to incorporate higher administrative fines for short-term rental (STR) violations
205
that pose a threat to health or safety, pursuant to California Senate Bill 60 (SB 60)
(Community Development Department)
Recommended Action
Receive and file a quarterly update on the Community Development Department’s progress in implementing the City’s Short-Term Rental Ordinance and provide staff direction in accordance with the options outlined below; and

1. Introduce for first reading by title only and with further reading waived, Ordinance No. 674: “An Ordinance of the City Council of the City of Morro Bay, California, amending Chapter 1.03 of Title 1 (General Provisions) of the Morro Bay Municipal Code,” amending the City’s Administrative Citation Program to incorporate higher administrative fines for short-term rental (STR) violations that pose a threat to health or safety, pursuant to California Senate Bill 60 (SB 60).

2. 7.b Ordinance No. 675 Establishing Local Campaign Finance Contribution Limits 215 (City Attorney/City Clerk)
Recommended Action
Introduce for first reading by title only, with further reading waived, Ordinance No.675, “An Ordinance of the City Council of the City of Morro Bay, California, adding Chapter 2.50 to the Morro Bay Municipal Code Relating to Campaign Contribution Limits.”

8. BUSINESS ITEMS

8.a San Luis Obispo Council of Governments (SLOCOG) Draft Transportation Expenditure Plan
222
(Interim City Manager)
Recommended Action
Receive a presentation from SLOCOG on its draft Transportation Expenditure Plan and provide input and comment regarding the plan.

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

10. ADJOURNMENT
The next Regular Meeting will be held on January 27, 2026.

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

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

In compliance with the Americans Disability Act, if you need special assistance to participate in a City meeting, please contact the Clerk's office 24 hours prior to the meeting to insure reasonable arrangements can be made to provide accessibility to the meeting.

Years Of
Service Awards
2025

10 Years Of
Service

Pamela Bruno
Permit Technician II
Community Development Department

Dane Lundy
Lead Utility Operator
Public Works Department

Pamela Newman
Associate Engineer
Public Works Department

20 Years Of
Service

Clemente Galamay
Consolidated Maintenance Worker II
Public Works Department

25 Years Of
Service

Bonnie Johnson
Support Services Manager
Police Department

Brandon Kato
Fire Engineer/Paramedic
Fire Department

Becka Kelly
Harbor Patrol Supervisor
Harbor Department

30 Years Of
Service

Jeffrey Simpson
Fire Captain/Paramedic
Fire Department

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
December 9, 2025, 3:30 p.m.

City Hall Conference Room
595 Harbor Street, Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: Interim City Manager Andrea Lueker
City Attorney Brian Stack
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Finance Director Emily Conrad
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:30 p.m. with all members present.

2. SUMMARY OF CLOSED SESSION ITEMS

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

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

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

4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR - GOVERNMENT CODE SECTION 54956.8

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

4.c PUBLIC EMPLOYEE EMPLOYMENT
City Manager pursuant to Government Code section 54957.

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session and City Attorney Stack announced no reportable action pursuant to the Brown Act was taken in closed session.

6. ADJOURNMENT
The meeting adjourned at 5:00 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY RECOGNIZING

BIG BROTHERS BIG SISTERS OF SAN LUIS OBISPO COUNTY DURING

NATIONAL MENTORING MONTH FOR THEIR

QUALITY YOUTH MENTORING PROGRAM

CITY COUNCIL
City of Morro Bay
WHEREAS, Big Brothers Big Sisters of San Luis obispo County’s mission is to create and support one-to-one mentoring relationships to ignite the power and promise of you; and
WHEREAS, Big Brothers Big Sisters of San Luis Obispo County has provided over 30 years of life-changing mentoring programs that promote education, healthy relationships, positive self-esteem and life-long growth; and WHEREAS, Big brothers Big Sisters’ mentoring programs are an evidence-based, prevention program with statistically significant effectiveness at reducing drug use and violence, and improving youth mental health and academic performance; and WHEREAS, 98% of children in Big Brothers Big Sisters’ program graduate from high school and 75% continue their post high school education; and WHEREAS, the State of California has launched the California Men’s Service Challenge, calling on 10,000 men to step up as mentors, coaches, and leaders to address rising disconnection among young men and boys, and to create pathways to purpose, leadership, and belonging; and
WHEREAS, Big Brothers Big Sisters of SLO County and other local organizations are proud partners in this statewide effort, offering opportunities for men and women alike to serve as mentors and make a lasting difference in the lives of youth; and WHEREAS, National Mentoring Month is an opportunity to celebrate mentors, recruit new volunteers, and encourage all residents to invest in the future of our community by supporting mentoring programs; and
WHEREAS, the County of San Luis Obispo formally recognizes the month of January as National Mentoring Month and embraces the vision that all children should achieve their full potential.

NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council hereby recognize January 2026 as National Mentoring Month in the City of Morro Bay and urge all residents to recognize the critical role mentors play in shaping the lives of young people and to consider becoming a mentor or supporting mentoring programs in our community.

Prepared By: ___NS Dept Review: _GK__
City Manager Review: ___AL_____ City Attorney Review: _BS_____ Staff Report
TO: Honorable Mayor and City Council DATE: January 8, 2026 FROM: Nate Stong, P.E., City Engineer
SUBJECT: Professional Services Agreement with Stillwater Sciences, Inc., for the Morro Creek Watershed Management Plan

RECOMMENDED ACTION
Authorize the City Manager to execute a Professional Services Agreement with Stillwater Sciences, Inc. in the amount of $1,381,363 for the Morro Creek Watershed Management Plan and to execute amendments to the agreement increasing term duration by up to one additional year and cost amendments by a contingency amount of up to 10%.

BACKGROUND
Following the flood events of January and March 2023, the City successfully applied for funding under FEMA’s Hazard Mitigation Grant Program (HMGP) through the California Governor’s Office of Emergency Services (CalOES) for the following two projects:

1. Floodproof Reverse Osmosis (RO) Facility: This project seeks to floodproof the City's RO Water Treatment Facility against flood risks caused by heavy rain events and storm surges.

Although the RO building itself was not flooded during the 2023 storms, the building is within the 100-year floodplain as mapped by FEMA.

2. Storm Drain Assessment: This initiative focuses on conducting a hydrologic and hydraulic analysis as well as identifying project alternatives to address flooding from Morro Creek in the Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road areas.

On December 10, 2024, the City Council authorized the grant agreements by resolution for both projects.

The proposed Grants will not cover construction costs for the implementation of the solutions found in this study/preliminary engineering phase of the project. The City will need to seek additional funding for the construction phase of the proposed projects.

The City has contracted with Coastal San Luis Resource Conservation District (CSLRCD) for grant administration services, with an agreement in the amount of $33,435.00 for the RO Floodproofing grant and a separate agreement in the amount of $68,140.00 for the Storm Drain Assessment grant.

DISCUSSION
Staff issued a Request for Proposals (RFP) on October 28, 2025, for the “Morro Creek Watershed Management Plan Project,” and received two proposals on December 8, 2025. The scope and budget AGENDA NO: 6c
MEETING DATE: January 13, 2026

of the RFP includes both grant-funded projects. An evaluation of the written proposals and oral interviews of both firms was conducted by a panel consisting of City staff and the CSLRCD grant administrator, which ranked Stillwater Sciences, Inc. as the top-ranked firm. Staff then negotiated the terms, scope and fee of the proposed agreement to meet the project goals, within the available budget and meeting project timelines.

FISCAL IMPACT
No new funding is requested for the recommended action. The total cost of the recommended contract amount is $1,381,363. Considering the recommended 10% contingency, the total authorized potential amount is $1,519,499.

Project funding consists of FEMA grant funds and local match, which was already allocated in the last budget cycle. The table below shows the breakdown of the 75% federal share and the required 25% local match.

Project Federal Share (75%) Local Match (25%) Total (100%) Floodproof RO (921-
8038)
$287,085 $95,695 $382,780
Storm Drain Assessment
(915-8037)
$1,008,900 $336,300 $1,345,200
Total $1,295,985 $431,995 $1,727,980
To ensure compliance with FEMA regulations, the agreement has capped amounts for each grant as outlined below:

Project Base Contract Amount Plus 10% Contingency
Floodproof RO (921-
8038)
$306,196 $336,815.60
Storm Drain Assessment
(915-8037)
$1,075,167 $1,182,683.70
Total $1,381,363 $1,519,499.30

ATTACHMENTS

1. Professional Services Agreement

2. Letter from FEMA for RO Floodproofing Grant

3. Letter from FEMA for Storm Drain Assessment Grant

01181.0001/813182.1 D-1

AGREEMENT FOR SERVICES

BETWEEN CITY OF MORRO BAY AND

STILLWATER ECOSYSTEM, WATERSHED & RIVERINE SCIENCES
THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into this 13th day of January, 2026 by and between CITY OF MORRO BAY, a California municipal corporation (“City”) and Stillwater Ecosystem, Watershed & Riverine Sciences, a California Corporation (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

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

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

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

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

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

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

01181.0001/813182.1 D-2
or deducting from said work. No such extra work may be undertaken unless a written order, consistent with both Section 9.4 as well as Morro Bay Municipal Code (“MBMC”) section

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

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

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

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

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

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed for the Storm Drain Assessment grant, One Million Seventy-Five Thousand One Hundred Sixty-Seven Dollars and for the Floodproof Reverse Osmosis Water Treatment Facility Building grant, Three Hundred Six Thousand One Hundred Ninty-Six Dollars ($1,075,167.00 for the Storm Drain Assessment grant and $306,196.00 for the Floodproof Reverse Osmosis Water Treatment Facility Building grant) (“Contract Sum”), unless

01181.0001/813182.1 D-3
additional compensation is approved pursuant to Section 1.5. Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

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

ARTICLE 3. PERFORMANCE SCHEDULE

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

3.2 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, which shall be no later than December 31, 2027.

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

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

01181.0001/813182.1 D-4
shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

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

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

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

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

No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing services under this

01181.0001/813182.1 D-5
Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.

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

ARTICLE 5. INSURANCE AND INDEMNIFICATION

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

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

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

5.2 General Insurance Requirements.
(a) Proof of Insurance, Enforcement and Notice. No work or services under this Agreement shall commence until both Consultant has provided City with insurance

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

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

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

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

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

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

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performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct.

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

ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION

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

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

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6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant.

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

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

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION

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

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

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

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

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

ARTICLE 9. MISCELLANEOUS PROVISIONS

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

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

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

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

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

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

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

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

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

CITY:

CITY OF MORRO BAY, a California municipal
corporation

John Craig
City Manager
ATTEST:

Dana Swanson, City Clerk
APPROVED AS TO FORM:

Brian J. Stack, City Attorney
CONSULTANT:

Stillwater Ecosystem, Watershed & Riverine
Sciences, a California Corporation
By:

Saphna Khandwala
Secretary and Chief Executive Officer
By:

Maia Singer
Chief Financial Officer
2855 Telegraph Avenue, Suite 400
Berkeley, CA 94705
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.)

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

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

A-1

EXHIBIT A

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

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

Scope of Work
Morro Creek Watershed Management Plan
DATE: January 2, 2026
TO: Nate Stong, City of Morro Bay
FROM: Ethan Bell, Stillwater Sciences
1 DESCRIPTION OF TASKS AND DELIVERABLES
This scope of work addresses the tasks and subtasks required to support our collaboration with the City and the CSLRCD to improve stormwater and surface water management in the Morro Creek Watershed to reduce impacts to public infrastructure, private property and aquatic habitat and provide a watershed management plan.

Task 1. Project Management, Administration, and Planning This task includes sub tasks for Project Management, administration, and sub tasks for coordination and presentation of findings. The project management system used by the Stillwater Team is Deltek Vantagepoint. This is an integrated, project-based Enterprise Resource Planning software that provides tools for project management, financial management, and resource planning. We use this system to manage resource allocation (staff labor by task and schedule), deliverables, time and budget tracking by subtask and subcontractor, and to produce invoices.

This allows our team to proactively manage projects by monitoring performance, planning schedules, and tracking progress against budgets. It includes tools for a comprehensive view of the project lifecycle. We can optimize the use of staff by scheduling the right people for the right tasks, identifying resource gaps, and forecasting future staffing needs. Vantagepoint connects projects, employees, time, expense, and billing into a single platform, providing a comprehensive and reliable overview.

The Stillwater Team also uses Microsoft SharePoint and Teams. All relevant background files and interim and final work products will be housed in a SharePoint directory accessible to all team members. The SharePoint site will include a dashboard with key information on schedule and progress, key upcoming milestones, notes from relevant project management check-ins, budget issues (if any) and a place to track any technical issues as they arise.

Microsoft SharePoint is a versatile tool and a segment of the project site can be made available to outside partners and/or reviewers, such as stakeholders or resource agencies. This segment of the project site could include background information and interim review deliverables, but not all the data and internal communications. Comments on draft technical reports and specifications will be requested in track changes to easily evaluate and address. Comments placed into a single

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
2 draft document will be encouraged such that all comments can be reviewed by all stakeholders.

Comments on design drawings will be requested as notes on a PDF. A brief memo responding to comments will be produced for all major deliverables to establish a written record of comments received and how they were addressed.

Task 1.1 Project Management and Administration
This task will include activities associated with the administration of the project, including submitting invoices and progress reports on a regular basis, coordinating with CSLRCD, and finalizing contracts, scope of work, and proof of bonding and insurance. The Stillwater Team will lead all communications with CSLRCD and will provide regular updates and monthly invoices.

Our office is in Morro Bay in proximity to CSLRCD, and we will gladly meet in person to facilitate a positive working relationship and maintain effective communication and collaboration.

The Stillwater Team will enter into one contract with the City that includes scope or work to address two distinct grant agreements awarded to the City under the CalOES’s Hazard Mitigation Grant Program, including (1) Floodproof Reverse Osmosis Water Treatment Facility Building–AP-01233 and (2) City of Morro Bay Storm Drain Assessment–AP-01231. The Stillwater Team will track budgets and submit invoices for each grant separately.

Stillwater will serve as the primary contact for the City and will either conduct or oversee all the work awarded under this contract. Stillwater will have lead technical responsibility for all services requested, with support from our subconsultants as necessary. The personnel included in this proposal are the people that the City can expect to have regular interactions with over the course of this contract, and every effort will be made to ensure that the staff identified in this proposal will be available for this contract.

Stillwater’s approach to project management is integrally tied with our approach to technical work, whereby our technical leads manage technical tasks, ensuring cost-effectiveness and minimizing errors. Our proposed management team—consisting of project manager Ethan Bell— brings a depth of experience in project management and have employed a similar project management structure on multiple projects, including watershed management plans.

Task 1.2 Initial Planning
This task includes planning and coordination with Morro Bay City staff and CSLRCD to discuss goals, procedures, and outcomes of the project. The Stillwater Team will identify City standards for storm drain design and hydrology. Working with City staff, the Stillwater Team will identify the main flooding concerns and begin listing possible solutions (“ideas”). The Stillwater Team understands the relationship with City staff and the importance of the exchange of ideas, information, and transparency to achieve positive project outcomes.

This task also includes close coordination with CSLRCD. The Stillwater Team will meet with CSLRCD to begin identifying stakeholder outreach with the intent on contacting landowners adjacent to Morro Creek that would have an interest in understanding their role and contribution to flood reduction, habitat restoration, and habitat management. Stakeholder outreach will be ongoing throughout the life of the project and is a key component to success.

Task 1.3 Coordination with County and FEMA
The Stillwater Team will coordinate with the National Flood Program Community Director for the County of San Luis Obispo to work with FEMA to identify and request available effective

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
3 models, discuss project goals and processes such as floodplain map revisions, and confirm methods to be employed with the goal of future efforts to update the existing Flood Insurance Rate Map (FIRM). Based on recent interactions with FEMA, we anticipate that a “FEMA effective model” is likely not available.

Task 1.4 Presentation of Findings to City Stakeholders and Decision-making Bodies This task will include coordination with City Staff and CSLRCD to prepare materials and present the project using construction plans, reports, graphs, or charts contained in a slide deck presentation, to assist stakeholders, decision makers and policy makers in understanding the scope of the project. Feedback received in response to presentations will be incorporated into deliverables as directed by City staff.

The Stillwater Team will prepare materials and present at seven (7) public meetings, including:
• Three public workshops that engage and inform local stakeholders. • Presentations of the draft Watershed Management Plan including Alternatives Analysis to the City of Morro Bay Public Works Advisory Board and City Council (two separate presentations).
• Presentations of the Final Watershed Management Plan and Preliminary Engineering and Design to the City of Morro Bay Public Works Advisory Board and City Council (two separate presentations).

Task 1 Deliverables
• Presentation at seven (7) public meetings including visual materials and a summary memo documenting the outcome of each meeting.

Task 2. Topographic and Aerial Based Surveys
This task includes the collection of topographic features to create an existing site conditions map and digital terrain model (DTM) of the water shed. Stillwater utilizes the latest in surveying hardware and software in the collection, processing, and depiction of surface features. Our team has expertise in subsurface utility engineering, using the Standard Guideline for Investigation and Documenting Existing Utilities (ASCE 38-22). Our team anticipates the collection of LiDAR data and orthorectified imagery as part of building the existing site conditions map. These data sets will come in part from existing LiDAR and imagery to supplement focused data collection at a more accurate scale. The existing site conditions map and DTM will be used for planning, stakeholder outreach, design alternative identification, final design and implementation. Our team will utilize the Trimble S7 robotic total station, SX10 scanning robotic total station, X7 scanner, R12i Global Navigation Satellite System receivers coupled with the TSC7 & TSC5 data collectors to observe surface data. Trimble Business Center will be used to review, process, and adjust observation data. All data will be horizontally fixed to the California State Plan Coordinate System, North American Datum of 1983 (NAD83), 2011 realization, Epoch 2010. The data will be vertically fixed to the North American Vertical Datum of 1988 (NAVD88).

Task 2.1 Existing and Additional LiDAR
The Stillwater Team will collect, review, and utilize existing LiDAR and imagery data sets from the National Geodetic Survey (NGS), United States Geological Survey (USGS), and the National Oceanic and Atmospheric Administration (NOAA). These data sets will be used to assist in planning, stakeholder engagement, and alternatives review. Additionally, these data sets will be

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
4 used to augment the newly collected high accuracy LiDAR and imagery data within the upper watershed.

The Stillwater Team will contract a vendor to obtain current LiDAR and orthophotography of the watershed. The orthophotography will extend to encompass the entire Morro Creek watershed.

The LiDAR collection is planned to begin at the Westerly boundary of the project extending Easterly to the foothills of the Los Padres National Forest. The demarcation was chosen to maintain a higher accuracy of data for modeling purposes in the areas where in-channel and/or off-channel flow attenuation may be possible. The LiDAR acquisition will be acquired using the Riegl VQ-1560ii-S sensor or equivalent mounted to a fixed wing aircraft. The point density will be not less than 32ppm2 and the LiDAR will have a line overlap of 50%. The data collection will be controlled by 15 Ground Control Points (GCPs) throughout the flight path for horizontal control and both Vegetated Vertical Accuracy (VVA) and Non-Vegetated Vertical Accuracy (NVA). The GCPs are located within a reasonable distance to public roads.

Task 2.2 Establish Project Survey Control Network
The Stillwater Team will establish the project survey control network for use as described above and additional ground surveying as required by the project needs. The primary control network will consist of a minimum of 10 permanent monuments being a 24-inch X ½ inch (#4) rebar with cap marked SWS SURVEY or other permanent monument as conditions dictate. The position of these points will be observed using the Static Differential Global Positioning System (DGPS) method. Each position will have a minimum of 2 hours of observation time. These static observations will be post processed in Trimble Business Center, using the NGS Continuous Operating Reference Stations (CORS) active control network. The secondary control network will be established using Real Time Kinematic (RTK) surveying procedures and be calibrated to a minimum of four (4) positions within the primary control network. The secondary control network will complete the required GCPs and set additional project control positions within the City limits to facilitate the collection and depiction of urban infrastructure.

Task 2.3 Survey of Urban Infrastructure
The Stillwater Team will complete the collection of additional urban infrastructure. This includes but is not limited to storm drain inlets and pipe networks, storm drain outlets into Morro & Little Morro Creek, building locations & finished floor elevations, and additional civil infrastructure as required by the project to support the hydraulic model. Additionally, seasonal cross sections, winter-spring-summer, will be collected at the beach sand-berm located at the mouth of Morro Creek and the bridge locations to assist with the hydraulic model calibrations. To support the LiDAR data and DTM of the water shed, the collection of 25 cross sections will be surveyed along the length of Morro Creed and Little Morro Creek—17 sections will be collected within Morro Creek and 8 sections within Little Morro Creek. The localized surveys will be initiated from the primary and secondary control networks described above.

Additionally, the Stillwater Team will complete a series of terrestrial LiDAR scans of the undersides of the vehicle and pedestrian bridges spanning Morro Creek. This will be completed using the Trimble SX10 Scanning Total Station and X7 terrestrial LiDAR scanner. This data collection is controlled by using set control targets and spheres tied to the primary and secondary control networks. The purpose of the scan data is to get accurate positional data for the multitude of flow restricting bridge features, including the low cords and structural support members of the bridges. The survey team will provide cross section mapping based on the reduction of conventional field measurements and terrestrial scan data, while coordinating closely with the

Scope of Work Morro Creek Watershed Management Plan
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5 engineering team to provide them with easy-to-use data sets that are then inputted into the hydraulic model to correctly depict the conditions that affect flooding.

Task 2.4 Supplemental Topographic & Boundary Survey
The Stillwater Team will complete supplemental topographic surveys once the Morro Creek Flood Reduction preferred nature-based and urban storm drain peak runoff attenuation infrastructure alternatives are selected. The supplemental information for the nature-based alternatives would consist of creek cross section and profile surveys to enhance the DTM in these specific regions to provide increased accuracy of the post-development hydraulic model. For urban storm drain peak runoff attenuation infrastructure identified focused topographic data will be collected to identify and depict the existing civil infrastructure to enable this information to be added to the hydraulic model and the preparation of construction documents. For budgeting purposes, we have assumed up to two (2) field days, and associated office mapping time will be sufficient for this task. As part of this effort, the team will contract an underground utility locating company to identify all underground utilities within the identified work area. Utilizing ASCE 38-22, the underground utilities will be identified and depicted on the construction documents. If required and/or requested quality level A identification and depiction of certain utilities will be completed.

The Stillwater Team has reviewed the vesting deeds of the adjacent properties to the RO Facility, and to depict the parcel boundaries of the facility, not including the adjacent right-of-way, it would be required to file a Record of Survey (ROS) with the County Surveyor pursuant to the Business and Professions Code §§ 8700-8805. Additionally, as the nature-based and urban storm drain alternatives are identified, it may be necessary to re-establish other property boundaries and/or establish easements for these facilities. Stillwater will work with the City and CSLRCD staff to identify any need for boundary and/or easement establishment. Stillwater will complete the boundary surveys and resolutions to prepare and record the required entitlements.

Task 2.5 RO Facility Survey
The Stillwater Team will complete the ground surveying and site mapping for the RO facility.

The LiDAR data acquisition described above will provide a portion of the civil infrastructure to be depicted for the existing site conditions. The specific survey data to be collected will be the finished floor elevations, valve locations and elevations, interior equipment elevations, and ground truthing the surrounding topography for use in the flood proofing design for the facility.

This includes underground utility locating and subsurface utility engineering of the facility and surrounding area.

Task 2.6 Project Basemap
Upon completion of the above-described data collection Stillwater will process, review, and adjust the survey and LiDAR data to the stated horizontal and vertical datums. Stillwater will complete the creation of the DTM and existing conditions model utilizing the newly collected topographic and LiDAR data and incorporating existing LiDAR within the upper portion of the watershed. This model will be used for hydrologic and hydraulic modeling. Additionally, a base map will be prepared for the project area that includes. As the supplemental surveys are completed, the additional survey data will be incorporated into the DTM existing conditions model.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
6 Task 2 Deliverables
Stillwater will deliver as a finished product of the
DTM and working CAD files in AutoCAD Civil 3D
version 2018 or greater, and a pdf of the existing site conditions map with the signature and seal of a
licensed Land Surveyor, hard copy provided upon
request.

Task 2 Assumptions
• This proposal assumes that the Stillwater Team
will have full access to the site and all facilities
to conduct the required field work.
• This proposal assumes that the Stillwater Team
will submit for recordation one (1) ROS for the
OR facility to support construction related to
flood protection. Additionally, a maximum of
three (3) storm water easements be prepared for
recordation.
• This proposal assumes that construction
surveying services will not be provided during
this phase of the project.

Task 3. Hydrologic and Hydraulic
Modeling
The Stillwater Team will gather information from
prior tasks, collect hydrographic data, and build
hydrologic (HEC-HMS), hydraulic (2D HEC-RAS),
and stormwater models (AquaTwin 2D) to simulate
existing conditions in the watershed. These models
will lay the groundwork for the planning phases
and will eventually be used as tools for analyzing
conceptual alternatives in later phases of the
Project. This task will rely heavily on outcomes of
coordination meetings with San Luis Obispo
County and FEMA (Task 1.3), which will inform
technical aspects of the model build, and confirm
compliance with FEMA standards with the goal of
usability for future flood mapping. The various
individual models will have differing study areas
that are described in subtask sections below.

Planning and coordination with the City, FEMA, and San Luis Obispo County will be ongoing throughout the various subtasks under task 3.

Hydrologic and Hydraulic
Modeling Memorandum

1. INTRODUCTION

1.1 Project Setting

1.2 Project Basemap

1.3 Purpose of this Study

2. HYDROLOGIC MODELING (HEC-HMS)

2.1 Study Area

2.2 Data Sources and Methods

2.2.1 Precipitation (Rain Gages)

2.2.2 Land Cover and Topography

2.2.3 Stream gages and Ratings Curves

2.3 Calibration

2.4 Results

2.4.1 Watershed Sub-basins and Parameters

2.4.2 Rainfall Statistics

2.4.3 Seasonal and Ecological Flow Statistics

2.4.4 Flood Frequency Analysis

2.5 Discussion

2.5.1 Streamstats and FEMA

2.5.2 Groundwater Dependency

2.5.3 Climate Change Variability

3. HYDRAULIC MODELING (HEC-RAS 2D)

3.1 Objectives of the model

3.2 Flood Mapping and FIRM requirements

3.3 Inputs and Methods

3.4 Simulation Runs, Calibration, and QA/QC

3.5 Results and Discussion

3.5.1 General Flooding

3.5.2 Flooding at RO Facility

3.5.3 Seasonal and Ecological Flows

3.5.4 Sensitivity Analysis (Constraint Analysis)

3.5.5 Effects of Sea Level Rise

4. STORMWATER MODELING (AquaTwin)

4.1 Objectives of the model

4.2 Existing Storm Drain Systems

4.3 Inputs and Methods

4.4 Simulation Runs, Calibration, and QA/QC

4.5 Results and Discussion

4.5.1 Storm Drain Capacity

4.5.2 Inlet Capacity

4.5.3 Spread Widths

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
7 Task 3.1 Hydrologic Model and Analysis
The Stillwater Team will begin this task by establishing the hydrologic study area. This will encompass the Morro/Little Morro Creek Watershed, contributions from the smaller tributaries to the south of the main watershed that drain through Willow Camp Creek and directly connected areas within the City limits. The team will then organize publicly available data from nearby stream gages, online databases, and through data requests to San Luis Obispo County. This data will include land cover, soils data, and rain and streamflow gage data from sources like NOAA, San Luis Obispo County, California irrigation management system, USDA-NRCS, CCRWQCB, and others. The Stillwater Team will utilize the statistical analysis program “R” to run QA/QC algorithms on obtained data to clean data prior to entering it into HEC HMS. Using HEC-HMS, data from these sources will be combined with topographic survey and LiDAR data (from the Project basemap) to establish both relationships between rainfall and runoff in the watershed (sub-basins, time of concentration, etc.), and statistically derived peak flows for 1, 2, 5, 10, 25, 50, 100, and 200 year recurrence intervals. The Stillwater Team will establish three calibration events that are derived from gage data for low-, medium-, and high-rainfall storm events that have occurred to calibrate the hydrologic model.

Task 3.1.1 Hydrographic Data Collection
This subtask will rely heavily on coordination with San Luis Obispo County to record flow data during a variety of different flow events in Morro Creek at the County’s stream gage located below the Main Street Bridge. These flow recordings will help create an accurate ratings curve between stage height and flow rates for Morro Creek at Main Street Bridge. In addition, Stillwater Team will establish two transects at strategic locations along the creek. One of the transects will be established at the current location of the San Luis Obispo County gage 773 at Main Street Bridge. The second transect will be established on Little Morro Creek upstream of the confluence with the main stem. The Stillwater Team will visit each of these transects four times at four different flow events and collect stream velocity data from across the transects while also recording stream stage height. The compiled dataset from these transects will create a comprehensive understanding of the contributions of the two separate stems of the Morro Creek system to the cumulative flow at the gaged transect downstream of the confluence. This dataset will be used to calibrate the hydraulic model, ensuring a more accurate representation of flows under various conditions. The Stillwater Team will then utilize the relationship between rainfall and runoff to develop hydrographs that can be input into the 2-D hydraulic model at nodes throughout the hydraulic model domain.

Task 3.2 Coastal Hydrology, Sea Level Rise, and Tsunami Hazards The Stillwater Team will evaluate tidal influences, future sea level rise (SLR), and tsunami hazard conditions at the downstream extent of the watershed. Tidal data will be compiled from NOAA and sea-level-rise projections from the Ocean Protection Council to develop scenario-based stage hydrographs for use as boundary conditions in the hydraulic model. These stage hydrographs will be applied to a “with sea level rise” model run to assess future flooding conditions and support the development of FEMA-compliant flood mapping.

The Stillwater team will summarize prior studies which analyzed tsunami hazards in the vicinity of the RO facility1. This task will also include detailed evaluation of the R.O. facility location 1 Earth Systems Pacific. 2012. Maximum tsunami flood elevations. Morro Bay and Cayucos Sanitary District Wastewater Treatment Plant upgrades, Morro Bay, California. Prepared by Earth Systems Pacific, San Luis Obispo, California for DUDEK, Santa Barbara, California.

Scope of Work Morro Creek Watershed Management Plan
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8 following tsunami hazard guidance under ASCE 7-16, which may be done after a reccomended alternative for the RO facility is selected.

Task 3.3 Existing Conditions Model Build, Calibration, and Review The hydraulic model will use USACE Hydrologic Engineering Centers HEC-RAS 2D to model the lower watershed. The model will focus on providing high-resolution results in the FEMAmapped floodplain and may be coupled with a 1D model as part of a later phase of the Project if required for FEMA FIRM development requirements (See task 3.6). The 2D model domain will begin where the system transitions between
confined and unconfined conditions and
inundation processes dominate. Based on
review of the FEMA NFHL effective
mapping and cross-sections, the 2D model
domain will begin along Morro Creek
between FEMA cross-sections U and R, and
along Little Morro Creek between crosssections N and H shown in the FEMA floodway image. These transitions ensure
continuity between the upper routing
reaches and the lower mapped floodplain
while maintaining compliance with FEMA
FIRM development requirements.

The lower watershed will be represented using a high-resolution 2D mesh developed in HECRAS. The mesh will apply fine cell sizes within the active channel corridor (approximately 5–20 feet) to accurately capture flow velocities, shear stresses, and backwater effects. Overbank and floodplain areas will use moderately larger cells (on the order of 20–50 feet) to balance spatial resolution with computational efficiency. The mesh will be supported by a detailed terrain raster, expected to be 1-foot resolution or finer, derived from new LiDAR and supplemental surveyed data collected under Task 2. Land cover will be delineated at a detailed scale to support spatially variable roughness assignments across the stream channel, bars, irrigated fields, urbanized areas, and vegetated floodplain surfaces. These land-cover polygons will be included in the Hydraulic Modeling Memorandum.

Hydrograph inputs generated from the HEC-HMS watershed model will be applied at the 2D interface nodes and at additional key inflow points throughout the 2D domain. Inflows from minor drainage ditches and local stormwater features will be aggregated to the nearest appropriate node or mesh boundary to ensure that the total discharge and timing are preserved without requiring detailed hydraulic modeling of each ditch. This approach maintains mass balance and spatial reasonableness while meeting the expedited project schedule. Where supported by San Luis Obispo County and FEMA, rain-on-grid may be used to represent spatially distributed runoff contributions. If rain-on-grid is not approved for FIRM updates, inflow hydrographs will be applied as bulk flows distributed across the local terrain to achieve comparable accuracy for mapped flood extents.

The downstream boundary for all simulations will use a conservative tidal water level equal to mean higher high water, with elevated boundary conditions applied for the selected sea level rise scenarios. These boundary conditions ensure that the existing and future condition models meet FEMA requirements for Flood Insurance Rate Map development.

FEMA Floodway

Scope of Work Morro Creek Watershed Management Plan
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9 Calibration will be completed using the calibration storm events from the hydrologic model, representing low-, medium-, and high-magnitude flow stream gage records. Additionally, the rating curve developed under task 3.1.1 will be used to translate stage heights to stream flow for calibration routines. Once calibrated and reviewed with CSLRCD and the City, the model will be used to simulate the full suite of statistical peak flows and will provide the regulatory basis for downstream flood mapping, RO Facility floodproofing analysis, and stormwater system evaluation.

Task 3.4 Existing Conditions Stormwater Modeling
The Stillwater Team will prepare a hydrologic and combined 1D-2D hydraulic model of the City’s storm drain system using the computer program AquaTwin 2D. We will evaluate storm drain conveyance facilities in the flood prone areas of Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road. The model will focus on City infrastructure and will also include limited Caltrans storm facilities where they may impact hydraulic function of the City systems. Figure 1 illustrates the facilities to be modeled.

Figure 1. Existing Stormwater Facilities to be Surveyed and Modeled.

Scope of Work Morro Creek Watershed Management Plan
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10 Stormwater modeling will include the following:
• Delineate the sub catchments that drain to modeled facilities (inlets and culverts). • Develop a 1D hydraulic model of the existing storm drain system(s). • Develop a 2D model mesh to model overland flow and account for street, channel, and ditch capacity.
• Assign surface flow elevations at the AquaTwin model boundaries based on results of the HEC-RAS 2D Watershed Model (Task 3.3).
• Analysis of existing storm drain inlet capacity and roadway spread width.

Task 3.5 Unconstrained System Modeling – Sensitivity Analysis The Stillwater Team will perform three unconstrained model runs to better understand system sensitivity to stream channel features. These model runs will include:

1. Model simulation with existing bridges removed (Main Street Bridge, Highway 1 Bridge, utilities bridge, and pedestrian bridge).

2. Model run with existing vegetation removed in stream channel (Morro Bay City limits to Pacific Ocean).

3. Model run with up to 2 large scale storage features (Assumes large scale diversion and detention/retention basins or dam in upper or lower watershed).

These three model runs will inform opportunities in Task 4 and will help shape conversations about which opportunities could provide the most benefit, prior to moving on to the more detailed modeling. Model results will be compared to the calibrated existing conditions model run to understand changes in flooding (depth and inundation footprints) due to different system features.

Task 3.6 (Add On) Extended Model Domain using HEC RAS 1D This task will only be conducted if directed by the City and CSLRCD. If required to meet FEMA FIRM compliance, a 1-D model will be coupled with the 2D model in task 3.3 to provide necessary coverage of the mapped floodplain. The 1D HEC-RAS model will be applied in the upper watershed and will convey flow through upper morro creek and upper little morro creek to the beginning of the 2D model.

Within the 1D domain, cross-section spacing will follow FEMA guidance and will typically range from 100 to 300 feet, with tighter spacing (e.g., 20–100 feet) in areas of rapidly changing geometry, bridge structures, or known hydraulic controls. Each cross-section will be derived from the project terrain and field survey and extended across the lateral extent required to fully capture out-of-bank flow transitions into the 2D grid.

Scope of Work Morro Creek Watershed Management Plan
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11 Existing Conditions Model Summary
It is anticipated that the following model runs will be included in Task 3:

Terrain → Existing
Conditions
Unconstrained Model
Runs
(Bridges, Vegetation,
Storage)
Model↓ Description ↓
Return
Interval or
Exceedance
Percentage
↓
Present
Day
(No SLR)
Future
Conditions
(with SLR)
Present
Day
(No SLR)
Future
Conditions
(with SLR)
Hydraulics
(1D and 2D HEC RAS)
FEMA FIRM Map Flows 100 X X X X
Flood Flows
based on
Hydrology (HEC HMS) Analysis
100 X X X X
50 X X X 0
25 X X X X
10 X X X 0
5 X X X 0
2 X X X 0
1 X X X 0
Seasonal Storm (Migration) Flow 1% X X 0 0
High Design Flow (Juvenile) 10% X X 0 0
Winter Baseflow (Migration,
adults) 50% X X 0 0
Summer Baseflow (Fry/Juvenile) 95% X X 0 0
Stormwater
(AquaTwin 2D)
Storm Drain flows calculated
within Stormwater model
Creek and Surface flows based on
2D HEC RAS
25 X X 0 0
10 X X 0 0
5 X X 0 0
2 X 0 0 0
1 X 0 0 0
X= Modeled
0= Not Modeled
Task 3 Deliverables
• Existing Conditions Hydrologic model in HEC-HMS
• Existing Conditions Hydraulic model in HEC-RAS
• Existing Conditions Stormwater Model in AquaTwin 2D
• Draft & Final Hydrologic and Hydraulic Modeling Memorandum (Regular and ADA compliant versions)
Task 3 Assumptions
• The 2D model domain will be limited to the lower 2 miles of the Morro Creek Watershed. • The 1D hydraulic Model domain will extend the extent of the domain shown on the FEMA NFHL FIRM map viewer for Morro Creek.
• The 1D model will extend approximately 0.5 miles upstream of the FEMA NFHL map extents on little Morro Creek.
• The existing storm drain infrastructure shown in Figure 1 will be included in the AquaTwin 2D model.

Scope of Work Morro Creek Watershed Management Plan
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12 • The tsunami design events for the coastal portion of the Project area have already been determined; calculations will focus on interpretations of prior studies.

Task 4. Watershed Management Planning
This task includes summarizing existing information on Morro Creek Watershed physical and biological conditions and introduces the flood risks and project goals of the watershed management plan. This task also includes using the hydrologic and hydraulic modeling task to vet opportunities and create a framework for selecting a design alternative to advance to 30% and 60% design. Both nature-based solutions and civil/stormwater projects will be explored to identify integrated opportunities to reduce flood risk in the watershed. In addition, approaches to reducing flooding specifically at the RO Facility will be addressed. Detailed subtasks are described below.

Task 4.1 Opportunity Working Sessions and Site Visits
The watershed management planning task will be initiated with meetings to review findings of Task 3 and establish Project goals and objectives. Through an ongoing series of virtual meetings, stakeholder outreach, landowner outreach, and site visits, the project team will consider a large array of “ideas” to reduce flooding, without constraints for feasibility. We anticipate that opportunities may include improvements to stormwater systems, construction of a dam, removal or modification of bridges, vegetation and sediment management, channel widening, floodplain reconnection, back-dune flood-routing wetlands, and/or wood racking features. It may be that the selected alternative is a combination of civil works and nature-based solution projects, or it may focus on one large project within one category solely. Ongoing planning meetings will support decision making for how ideas become grouped into alternatives. Planning metrics such as cost-benefit ratios, feasibility, and permitting impacts (full list of planning metrics described in task 4.3) will be used to vet individual concepts and develop alternatives.

Based on the results of the unconstrained hydraulic analysis and feasibility, the City and RCD will select 1–3
“opportunities” to explore for floodproofing of the RO
Facility, 3–4 opportunities to explore for stormwater system improvements in the city limits, and 3–4 opportunities for nature-based solutions in the Morro Creek Watershed. For each of these identified opportunities, the Stillwater Team will develop concept diagrams to support decisions. Through
working sessions, the team will develop three alternatives, each comprised of one of the opportunities identified for the Morro Creek Flood Reduction Project and a recommendation for the RO Facility floodproofing Project. Additional working sessions will be held to review results of the alternatives comparison matrix and to facilitate selection of an alternative
The outcome of this task will be to have a selected design for the Morro Creek Flood Reduction Project and a recommendation for the RO Facility floodproofing Project. This approach allows the City and CSLRCD to tailor alternatives to known funding streams and utilize the planning process to queue up viable projects for future City and Resource Conservation District Planning.

Scope of Work Morro Creek Watershed Management Plan
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13 Task 4.2 RO Facility Concepts and Recommendations
Through the planning sessions and in coordination with project partners, the Stillwater Team will develop a recommendation for flood proofing of the RO Facility to reduce or prevent damage to essential water supply infrastructure resulting from flooding. Through concept design working sessions (up to 3 concepts considered) and internal recommendations, the team will select a viable option to move forward and analyze.

Figure 2. Example of approach to selecting flood risk reduction projects in the Watershed Management Plan.

Task 4.3 Morro Creek Flood Reduction Alternatives Development This task includes the refinement of opportunity areas into conceptual alternatives and interpretations of the existing conditions hydraulic and stormwater model results to analysis and vet concepts. We anticipate that at this stage in the selection process substantial excavation or topographic features will not be modeled, and that model support will be based on results of the existing conditions model and sensitivity analysis.

Stormwater and Civil Works Concepts
Through the planning sessions and in coordination with project partners, the Stillwater Team will develop 3–4 concepts for civil works and stormwater improvements. We anticipate that concepts may include infrastructure improvements such as replacement of existing storm drain inlets and pipes, new underground facilities to increase flood conveyance and storage, or opportunities for detention storage within the urbanized areas of the City.

Nature Based Solutions
Through the planning sessions and in coordination with project partners, the Stillwater Team will develop 3–4 concept design options for nature-based solutions that demonstrate flood-benefits to

Scope of Work Morro Creek Watershed Management Plan
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14 the watershed and enhance habitat for native
species. Nature-based solutions are actions to
protect, restore, and manage natural ecosystems to
address flooding, and have been recently embraced
and promoted by FEMA, USACOE, EPA, and
others.

Concept Design Alternatives (3)
Conceptual design alternatives will each be
comprised of single opportunity which has been
vetted through planning workshops and with
landholders and stakeholders. Conceptual designs
will factor in constraints such as utilities and land
ownership and will include plan views and typical
sections of feature types to aid in evaluation. Task

4.3 will include development of concept design
alternatives as figures in the watershed
management plan.

Task 4.4 RO Facility Flood-Proofing Modeling and
Engineering Analysis
This task will include modeling of the RO Facility
floodproofing concept designs. The Stillwater Team
will model the proposed conditions of the RO
facility based on key geometric aspects of the flood
proofing designs and determine if flood reductions
do not increase flooding elsewhere in the floodplain
and use model results to calculate the key evaluation metrics of the design. Alternatives will be compared in an alternatives matrix table to aid with the City’s final alternative selection.

Task 4.5 Morro Creek Flood Reduction Modeling and Evaluation of Alternatives This task includes hydraulic modeling, preliminary engineering analysis, and stormwater modeling of alternatives to support evaluation and comparison of alternatives. Key evaluation metrics to be evaluated for each alternative are:
• Flood reduction
• Preliminary cost/benefit ratios,
• ROM estimates for annual and design life maintenance, • Permit requirements,
• FEMA map revision requirements
• Feasibility of each alternative
Alternatives will be compared in an alternatives matrix table to aid with the City’s final alternative selection. The results of this task will be summarized in the Watershed Management Plan report described below.

Hydraulic Modeling and Engineering Analysis
This task includes proposed conditions hydraulic modeling of alternatives and desktop work to calculate the key evaluation metrics shown above. To simulate proposed conditions, design terrains under the proposed alternatives developed in AutoCAD Civil 3D will be incorporated Watershed Management
Plan

1. INTRODUCTION

1.1 Project Setting

1.2 Project Goals

2. EXISTING CONDITIONS

2.1 Topography and Basemap

2.2 Geology and Geotechnical

2.3 Hydrology and Hydraulics

2.3.1 Summary of Exiting Condition Model

2.3.2 Existing Flood Risk

2.3.3 Tsunami Hazards

2.4 Biological resources

3. OPPORTUNITIES AND CONSTRAINTS

3.1 Opportunities

3.2 Constraints

4. RO FACILITY ALTERNATIVES

4.1 Summary of identified alternatives

4.2 Hydraulic modeling results

4.3 Comparison of alternatives

5. FLOOD REDUCTION ALTERNATIVES

5.1 Summary of identified alternatives

5.2 Hydraulic modeling results

5.3 Comparison of alternatives

6. SELECTED ALTERNATIVES

6.1 RO Facility alternative

6.2 Flood reduction alternative

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
15 into the 2D model mesh and Manning’s roughness will be adjusted to represent changes in land cover type. Terrain modification tools within HEC-RAS mapper may also be used to refine alternatives and explore variations to better meet project goals.

Stormwater Modeling and Engineering Analysis
This task includes proposed conditions stormwater modeling of alternatives and desktop work to calculate the key evaluation metrics shown above. To simulate proposed conditions, existing storm drains and inlets will be modified, and new storm drain infrastructure will be added to the model to represent recommended improvements.

Task 4.6 Watershed Management Plan Reporting
This task includes developing a draft and final Watershed Management Plan. The plan will summarize available information on topography, geology, hydrology, hydraulic models, land use, and biological resources. This will include describing flood risk, as well as key drivers influencing sensitive species in the watershed. Specific goals of the plan will be identified based on existing conditions. The plan will describe the tools and approaches used, and will include a summary of ideas, opportunities, and alternatives considered and compared.

Task 4 Deliverables
• Draft and Final Watershed Management Plan (Regular and ADA compliant versions) Task 5. 30% Designs (Geotech, Plans, and Supplemental Analysis) All scoping for Tasks 5 and 6 assumes a project comprised of either one stormwater improvement site or one nature-based solution site. If the selected alternative is substantially different from our scoping assumptions, then we will work with the City and CSLRCD to develop a revised scope and budget for the design tasks. Flexibility will be built into subcontracting with teaming partners to move budget totals as needed based on which direction the Project goes.

We assume that the selected project alternative will not include modifications to or replacement of existing bridges. Should the City request design services for bridge improvements, we can provide those services under a contract amendment to incorporate the revised scope.

Task 5.1 Geotechnical Evaluations
Yeh and Associates will conduct a geotechnical evaluation to identify potential geotechnical requirements and expected costs associated with design alternatives at both the RO Facility, and at one location (to be determined) for the Morro Creek Flood Reduction Project. Yeh staff will summarize data from previous explorations around the RO Building, perform geotechnical analyses, and prepare a draft and final Geotechnical Report for the design of the floodproofing alternatives (e.g., potentially floodwalls and flood gates). The report will provide logs of the explorations from previous projects in the area, laboratory test results, and a map showing the locations of the previous explorations.

Once a Morro Creek Flood Reduction Project location is selected, Yeh staff will summarize existing data from previous explorations, perform geotechnical analyses, and prepare a draft and final Geotechnical Report for the selected alternative. The report will recommend additional subsurface exploration and other data analysis as appropriate.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
16 Task 5.2 RO Facility Design Selected alternative 30% design The Stillwater Team will refine the selected alternative for the RO Facility to the 30% design level.

This task will include supplemental engineering analysis including interpretations of applicable tsunami force loads from task 3.2, and development of design drawings in AutoCAD Civil 3D.

While the exact sheet-list for the 30% design may vary, the Stillwater Team assumed that there may be up to 11 sheets in total. It is anticipated that the 30% design drawings will contain the following sheets:
• Title Sheet (1 sheet)
• General Notes (1 sheet)
• Key Plan (1 sheet)
• Project Control Plan (1 sheet)
• Demolition Plan (1 sheet)
• Layout Plan (1 sheet)
• Typical Sections (1 sheet)
• Utility Plan (1 sheet)
• Wall plan and profile (2 sheets)
• Structural details (1 sheet)
Task 5.3 Morro Creek Flood Reduction Designs
The Stillwater Team will refine the selected alternative to the 30% design level. This task will include supplemental engineering analysis and development of design drawings in AutoCAD Civil 3D. While the exact sheet list for the 30% design may vary, the Stillwater Team assumed that there may be up to 14 sheets in total. It is anticipated that the 30% design drawings may contain the following sheets:
• Title Sheet (1 sheet)
• General Notes (1 sheet)
• Key Plan (1 sheet)
• Project Control Plan (1 sheet)
• Demolition Plan (1 sheet)
• Layout Plan (1 sheets)
• Site 1 Utility Plan (1 sheet)
• Site 1 Plan and Profile (1 sheet)
• Site 1 Contour Grading (1 sheet)
• Site 1 Typical Sections (1 sheet)
• Site 1 Details (1 sheet)
• Site 1 Planting Plan (1 sheet)
• Creek Diversion and Dewatering Plan (1 sheet)
• Temporary Water Pollution Control Plan (1 sheet)
Task 5 Deliverables
• Draft and Final Geotechnical Report, PDF format

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
17 • 30% Plans, PDF format
Task 5 Assumptions
• The selected alternative for the Morro Creek Flood Reduction Project will include one (1) project site.
• The selected alternative will not include replacement or modification of existing bridges.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
18 Task 6. 60% Design
The 60% design task includes additional
modeling and engineering analysis to advance
the level of detail from the 30% designs for the
Morro Creek Flood Reduction Project and the
RO Facility Floodproofing Project. Using
refined designs, the Stillwater Team will
develop accurate project implementation costs
and quantify Project benefits and impacts, as
well as refine the key evaluation metrics
described in Task 4.5. This task will also
include refinement of plans and development
of a cost benefit analysis and Basis of Design
report for the two Projects to support the grant
application for implementation phase funding
(Task 6.5). Our scope is a scaled back approach
for technical special provisions to focus efforts
on the Basis of Design Report, to best leverage
work products for grant application(s).

At the onset of this task, we anticipate
receiving one (1) set of combined resolved
written comments from the City for each of the
30% Designs provided under Task 5. We will
coordinate, attend, and provide notes on the
30% Design review meeting with the City and
CSLRCD, included in Task 1.

Task 6.1 Morro Creek Flood Reduction
Modeling
This subtask covers modeling of the 60%
design for the Morro Creek Flood Reduction
Project. Modeling under this subtask will be
split between the hydraulic model and
stormwater models to simulate with-project
conditions for the selected alternative. Details
of each are described below. Design analysis
methods and results along with refined
designs will be summarized in the basis-ofdesign report.

Hydraulic Modeling
The Stillwater Team will incorporate 60% design grades developed in AutoCAD Civil 3D into the 2D-HEC-RAS Model terrain to analyze the flood benefits of the selected Morro Creek Flood Reduction Project. Flood modeling results will be compared to existing conditions to answer key questions for permitting and FEMA Benefit/Cost Analysis. Additionally, ecologically significant 60% Basis of Design Report

0.EXECUTIVE SUMMARY (PROJECT DESCRIPTION)

1. INTRODUCTION

1.1 Project Background and Setting

1.2 Project Goals

1.3 Project Phasing

2. EXISTING CONDITIONS SUMMARY

2.1 Topography and Basemap

2.2 Geology and Geotechnical

2.3 Hydrology and Hydraulics

2.3.1 Summary of Existing Condition Model

2.3.2 Existing Flood Risk

2.3.3 Tsunami Hazards

2.4 Biological Resources

3. BASIS OF DESIGN

3.1 Design Overview

3.2 Design Criteria and Design Life

3.3 Stormwater and Civil Works

3.4 Nature Based Solution Improvements

4. HYDRAULIC MODELING

4.1 Summary of Model Setup

4.2 Proposed Condition Simulation Runs

4.3 Results

4.3.1 Flood Reduction

4.3.2 Ecological Flow Results

4.3.3 Sea Level Rise

4.4 Engineering Analysis

4.5 Cost Benefit Analysis

5. STORMWATER MODELING

5.1Summary of Model Setup

5.2 Proposed Condition Simulation Runs

5.3 Results

5.3.1 Flood Reduction

5.4 Engineering Analysis

5.5 Cost Benefit Analysis

6. CONSTRUCTION

6.1 Construction Period

6.2 Access and Staging

6.3 Water and biological resource mgmt.

6.4 Quantities and Costs

6.5 Construction Impacts

7. MAINTENANCE & MONITORING FRAMEWORK

7.1 Maintenance period

7.2 Maintenance Categories and Actions

7.3 Monitoring Categories and Actions

7.4 Reporting

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
19 flows will be modeled under proposed conditions to answer key questions for permitting.

Results of the hydraulic model will be used to support design analysis and design refinement.

Stormwater Modeling
The Stillwater Team will incorporate 60% design into the AquaTwin model to analyze the flood benefits of the infrastructure improvements included in the selected Morro Creek Flood Reduction Project. Modeling results will be compared to existing conditions to answer key questions for permitting and Benefit/Cost Analysis. Results of the model will be used to support design analysis and design refinement.

Task 6.2 RO Facility Hydraulic Modeling
Stillwater will use design geometries from the 60% design to simulate proposed conditions hydraulics at the RO facility using the 2D Hydraulic Model. The results of this model will be used to understand changes in flood elevations, and support engineering calculations and advancement of floodproofing designs.

Task 6.3 Morro Creek Flood Reduction Project
This task includes engineering analysis to advance the level of detail from the 30% designs for the Morro Creek Flood Reduction Project. Using refined designs, the Stillwater Team will develop accurate project implementation costs and quantify Project benefits and impacts, as well as refine the key evaluation metrics, as described below.

Task 6.3.1 Design Analysis
Because design analysis may take different directions based on outcomes of the planning phase and selected alternatives, design analysis may take on different forms. The Stillwater Team envisions that this task could include analysis such as rock sizing calculations, earthwork calculations, storm drainpipe capacity calculations, and stage-storage analysis.

Task 6.3.2 Plans, Specifications, and Estimates
The Stillwater Team will develop 60% design drawings, specifications, and cost estimates for the Morro Creek Flood Reduction Project.

It is assumed that 60% design drawings will include a total of up to 30 sheets. Key additions to the sheet list at this phase may include the following:
• Tree removal sheets and tables (Up to 2 sheets)
• Additional Detailed Plan Views (Up to 4 sheets)
• Dewatering Details (1 sheet)
• Additional Detail Sheets (Up to 6 sheets)
• Grading Cross Sections (4 sheets)
• Planting Details (1 sheet)
The Stillwater Team will prepare a table of contents for the anticipated technical special provisions. We will utilize the City’s Standard Specifications and Caltrans 2025 Standard Specifications with special provisions prepared to address project-specific design elements.

We assume that the project SWPPP will be prepared by the Contractor as part of the implementation phase. We will prepare SWPPP risk calculations for inclusion in the Basis of Design Report.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
20 We will prepare the Engineer’s Opinion of Probable Construction Cost (Estimate) based on the 60% plans. The estimate will be organized in accordance with the Caltrans Ready to List Guide.

For pricing, we will use our judgement, Caltrans cost data, SLO County cost data, and as-bid information provided by the City.

Task 6.3.3 Basis of Design Report
The Stillwater Team will summarize the Morro Creek Flood Reduction Project in the 60% Basis of Design report. The general outline for the 60% design report is shown but may be adapted to better meet client or Project needs.

Task 6.4 RO Facility Floodproofing Project
The Stillwater Team will complete the necessary engineering and design for the floodproofing of the City water treatment building, executing the work based on the previously selected alternative. This phase of work is designed to progress the project to the 60% design completion milestone. Deliverables will include initial plans, draft technical specifications, and a preliminary Engineer's Cost Estimate that establishes the project's scope and budget parameters.

Task 6.4.1 Design Analysis (RO Facility)
The Stillwater Team will prepare structural calculations covering the relevant structural systems for the selected alternative for floodproofing. Calculations shall be performed to satisfy the minimum requirements of the governing building code and anticipated flood elevations. The structural team will work in close collaboration with the rest of the team to accommodate the unique constraints of the RO Facility.

Task 6.4.2 Plans, Specifications, and Estimates (RO Facility) The Stillwater Team will develop 60% design drawings, specifications, and cost estimates for the RO Facility Floodproofing Project. It is assumed that the 60% design drawings will include a total of up to 16 sheets. Key additions to the sheet list at this phase will include the following:
• Additional General Notes (1 sheet)
• Additional Detailed Plan Views (Up to 1 sheet)
• Utility Plan and Profiles (Up to 1 sheet)
• Additional Detail Sheets (Up to 2 sheets)
The Stillwater Team will prepare a table of contents for the anticipated technical special provisions. We will utilize the City’s Standard Specifications and Caltrans 2025 Standard Specifications with special provisions prepared to address project-specific design elements.

We assume that the project SWPPP will be prepared by the Contractor as part of the implementation phase. We will prepare SWPPP risk calculations for inclusion in the Basis of Design Report.

The Stillwater Team will prepare the Engineer’s Opinion of Probable Construction Cost (Estimate) based on the 60% plans. The estimate will be organized in accordance with the Caltrans Ready to List Guide. For pricing, we will use our judgement, Caltrans cost data, SLO County cost data, and as-bid information provided by the City.

Task 6.4.3 Basis of Design Report (RO Facility)
The Stillwater Team will summarize the RO Facility Floodproofing Project in the 60% basis of design report. The general outline for the 60% design report is shown but may be adapted to better meet client or Project needs.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
21 Task 6.5 Benefit/Cost Analysis and Application for Implementation Phase Funding In coordination with City staff and CSLRCD staff, the Consultant will develop a BCA and application for implementation funding. Funding may include CalOES’s Hazard Mitigation Grant Program, or other applicable State or Federal sources.

The Stillwater Team will prepare a Benefit-Cost Analysis for both the Morro Creek Flood Reduction Project and the RO Facility Floodproofing Project, using the FEMA Benefit-Cost Analysis Toolkit (BCA Toolkit). We assume a full BCA will be required for each project.

The Stillwater Team will research funding agencies and the various grant opportunities and provide a summary memo of the potential grants and their requirements. We will meet with the City and CSLRCD staff to discuss the grant options available. If approved, we will move forward with applications for the grant(s). We have allocated a not-to-exceed budget for this effort without knowledge of which grant(s) will be pursued and the requirements of said grants. Our budget is based on expected efforts to prepare a grant application for a CalOES Hazard Mitigation Grant. We will work with the City and CSLRCD if the requirements for preparation of the grant effort will exceed the allocated budget.

Task 6 Deliverables
• 60% Plans in CAD and PDF format
• 60% Engineer’s Opinion of Probable Cost in Excel and PDF format • 60% Table of Contents for Technical Special Provisions, Microsoft Word and PDF format • Summary Memo of Grant Opportunities
• Morro Creek Flood Reduction Project Draft and Final Basis of Design Report and Benefit/Cost Analysis
• Morro Creek Flood Reduction Project Grant Application for implementation phase funding
• RO Facility Floodproofing Project Draft and Final Basis of Design Report and Benefit/Cost Analysis
• RO Facility Floodproofing Project Grant Application for implementation phase funding Task 6 Assumptions
• Assumes separate grant applications for the Morro Creek Flood Reduction Project and the RO Facility Floodproofing Project. The two projects could be combined into a single grant application at the direction of the City.

Task 7. Environmental Review
The Stillwater Team will prepare the CEQA and NEPA documents and conduct the environmental review process (as applicable) for the RO Facility Floodproofing Project and the Morro Creek Flood Reduction Project. The City will serve as the Lead Agency under CEQA. The federal agency with federal jurisdiction over the project would be the lead agency under NEPA, which is yet to be determined. Based on preliminary assessment of the RO Facility, environmental clearance and permitting for floodproofing of the RO Facility could be conducted

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
22 separately from the Morro Creek Flood Reduction Project given that floodproofing of the RO Facility and the flood reduction improvements have independent utility from each other.

The Stillwater Team will prepare the following environmental permits applications for the Morro Creek Flood Reduction Project: USACE Clean Water Act Section 404 Nationwide permit; CDFW Streambed Alteration Agreement (SAA) Permit (Section 1602); Regional Water Quality Control Board (RWQCB) Section 401 Water Quality Certification permit; and a California Coastal Commission Coastal Development Permit (CDP). It is assumed the permitting process will continue and that permits will be issued after the final design plans are complete, as required by agencies.

The Stillwater Team will conduct a biological reconnaissance-level survey and aquatic resources delineation and prepare a Biological Resource Evaluation (BRE) (Task 7.2) and Aquatic Resources Delineation Report (Task 7.3) for the Morro Creek Flood Reduction Project.

Given that the RO Facility is in an urban environment and floodproofing of the facility is not expected to substantially affect biological resources or result in effects to jurisdictional waters it is assumed that only a CDP would be required, as it is located in the coastal zone. Similarly, it is assumed that a desktop biological resource evaluation will be sufficient to support the CDP.

More information is provided in the subtasks below.

Task 7.1 CEQA/NEPA Documentation and Cultural Resources Assessment Given that the project is funded by two separate grants, environmental documentation for floodproofing of the RO Facility Floodproofing Project may be completed through CEQA only (no NEPA) if only state funding is used for all phases of the project. Based on the Stillwater Teams’ familiarity with flooding at the RO Facility and experience in the project area, this scope of work assumes that the RO Facility Floodproofing Project can qualify for a Class 1, Existing Facilities, Categorical Exemption (CE) under CEQA. Based on the Stillwater Teams’ knowledge of the environmental impacts of the project and experience in the project area, this scope of work assumes that an IS/MND and EA will be the appropriate level of CEQA and NEPA documentation for the Morro Creek Flood Reduction Project.

Rincon will prepare a Cultural Resources Assessment (CRA) for the proposed projects (i.e., the RO Facility and Morro Creek Flood Reduction Project) to identify potential impacts to cultural resources. The CRA will be of sufficient detail to support the environmental review under CEQA, NEPA, and the Section 106 coordination required for the regulatory permitting processes for the watershed project. In accordance with the regulations of 36 Code of Federal Regulations 800.16(d), Rincon will delineate an Area of Potential Effects (APE) for the project. The APE will include the horizontal and vertical extent of the project’s limits of work, as well as the construction and materials staging areas. Given our understanding of the project area, no historic period buildings or structures are anticipated to be located in proximity to the projects. Therefore, the APE will only encompass areas of direct effects. Indirect visual effects to built environment resources will not be considered.

Following approval of the APE, Rincon will conduct a California Historical Resources Information System (CHRIS) records search at the Central Coast Information Center. The records search will encompass the APE and a 0.5-mile radius. In addition, Rincon will examine the following databases to identify cultural resources that may be impacted by the project: National Register of Historic Places, California Register of Historical Resources, California Historic

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
23 Property Data File, Built Environment Resources Directory, Archaeological Determinations of Eligibility, and lists of California Historical Landmarks and California Points of Historical Interest.

Rincon will also contact the California Native American Heritage Commission (NAHC) to request a Sacred Lands File search and a list of Native American contacts. The Sacred Lands File (SLF) search will indicate whether cultural resources of interest to Native Americans are known to be present within the project sites. Rincon will send letters to the individuals included in the Native American contact list provided by the NAHC as part of the SLF search task above.

Additionally, Rincon will send letters via email to local individuals and organizations that may have knowledge of, or concerns with, historic-period cultural resources in the project vicinity.

The Native American and interested party outreach will include inquiries to Native American contacts, applicable local governments, and local historical groups regarding their knowledge of cultural resources in the vicinity of the APE. Following initial inquiries, Rincon will allow two weeks for review before following up by phone call and/or email with contacts that have not responded. Up to two phone calls/emails will be conducted to document a “good faith” effort to follow-up. A contact log documenting these efforts will be attached to the Cultural Resources Letter Report (outlined below) in an appendix alongside an example letter and all replies. This Native American and interested party outreach is intended to support and inform Section 106 process, but does not constitute formal Section 106 consultation, which is typically implemented by the lead federal agency.

Rincon will conduct a desktop geoarchaeological review to assess the potential for buried archaeological resources to be present in the APE. This will include a review of CHRIS data, ethnographic data, historical maps, geologic maps, soil maps, aerial photographs, and readily available environmental assessments and/or geotechnical reports. The desktop review will assess whether project-related ground disturbance has the potential to encounter buried archaeological resources during construction based on the project parameters. Upon completion of the CHRIS records search, SLF search, and desktop review, Rincon will conduct a cultural resources survey of the proposed projects to characterize its current condition and identify the presence of cultural resources.

Upon completion of the subtasks outlined above, Rincon will prepare a joint CEQA/NEPA and Section 106 compliant CRA Report. The CRA Report will be aligned with USACE and FEMA expectations and will follow the California Office of Historic Preservation’s Archaeological Resource Management Reports: Recommended Contents and Format. The report will include a description of the project and its APE, provide the applicable environmental and cultural contexts for the APE and its vicinity, outline the appropriate regulatory framework, and present the methods and results of the CHRIS search, archaeological review, field survey and outreach results. The CRA Report findings will include recommendations for additional studies or avoidance and minimization measures, if deemed necessary. A copy of the final report will be filed with the Central Coast Information Center.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
24 RO Facility Floodproofing: Class 1 Categorical Exemption It is assumed that floodproofing of the RO Facility will qualify under a Class 1, Existing Facilities CE under CEQA. The Class 1 CE covers the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Floodproofing of the RO facility could be considered a minor alteration to an existing structure making it eligible for use of this CE. The Stillwater Team will prepare a Notice of Exemption for the City to file. If floodproofing of the RO Facility triggers a greater level of environmental analysis beyond the level of analysis presented in this proposal, the Stillwater Team will coordinate with the City and additional budget may be required.

Morro Creek Flood Reduction Project: IS/MND and EA
Is it expected that preparation of an IS/MND would be the appropriate level of CEQA documentation and preparation of an EA would satisfy NEPA for the Morro Creek Flood Reduction Project.

The Stillwater Team will prepare an IS/MND for flood proofing of the Morro Creek Flood Reduction Project following State CEQA guidelines, with the City of acting as Lead Agency under CEQA. The Draft IS will contain all required components, including the following sections:
• Project description, including best management practices and feasible resource protection measures
• Environmental setting
• Checklist of potential environmental effects, with explanation of findings • Measures to avoid, minimize, or mitigate any significant impacts, if necessary • Names of parties responsible for preparation
All CEQA thresholds will be evaluated, but the technical analysis will be focused on key environmental topics, including biological resources, cultural resources, hazards and hazardous materials, hydrology and water quality. Recently adopted environmental documents for projects in the area will be reviewed and applicable information applied to the environmental document for the project.

The IS/MND will identify the direct, indirect, and cumulative environmental effects resulting from the project. It will provide the nature, magnitude, and extent of adverse and beneficial impacts. The analysis will also include a description of the irreversible and irretrievable commitment of resources that would result from implementing the project. It is assumed that all impacts associated with the Morro Creek Flood Reduction Project can be mitigated to a level of less than significant.

Electronic copies of the Draft IS/MND will be submitted to the City for review and comment. In addition, the Stillwater Team will prepare the Notice of Completion (NOC), Notice of Intent to Adopt (NOI) the Draft IS/MND for distribution, and a notice of availability (NOA) suitable for publication.

Upon completion of the public comment period for the public draft, the Stillwater Team will prepare responses to comments and the Final IS/MND in coordination with the City. Along with the responses to comments, the Stillwater Team will submit a draft mitigation monitoring and reporting program (MMRP) that outlines how implementation of adopted mitigation measures will be monitored. Upon completion of the Final IS/MND, the Stillwater Team will prepare a

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
25 Notice of Determination (NOD) for the City to file. City staff will be responsible for public noticing and attendance at any public hearings for approval of the CEQA document.

If the Morro Creek Flood Reduction Project triggers a greater level of environmental analysis beyond the level of analysis presented in this proposal, the Stillwater Team will coordinate with the City and additional budget may be required.

The EA would include the purpose and need for the project, the alternatives considered (including the “no action” alternative), and an analysis of the economic and environmental impacts. It will also identify measures to mitigate adverse impacts. If improvements trigger a greater level of environmental analysis beyond the level of analysis presented in this proposal, the Stillwater Team will coordinate with the City and additional budget may be required.

The Stillwater Team will identify cultural and tribal resources of significance and historic resources eligible or on the National Register of Historic Places (NRHP) and California Register of Historical Resources (CRHR) through a records search (~1/2-mile radius of study area), file search and outreach with the Native American Heritage Commission (~1/2mile radius of study area) in compliance with Assembly Bill 52. It is assumed that the Project will have no effect/impacts on historic resources and will not require Section 106 consultation.

Electronic copies of the Draft IS/MND and EA will be submitted to the Lead Agencies for review and comment. Upon completion of the public comment period for the public draft, the Stillwater Team will prepare responses to comments and the Final IS/MND and EA in coordination with the Lead Agencies. Along with the responses to comments, the Stillwater Team will submit a draft mitigation monitoring and reporting program (MMRP) that outlines how implementation of adopted mitigation measures will be monitored. Once the Final IS/MND and EA are completed, the Stillwater Team will prepare a Finding of No Significant Impact (FONSI) and NOD for the City to file. Lead Agency staff will be responsible for public noticing and attendance at any public hearings for approval of the CEQA document.

Task 7.1 Deliverables
RO Facility Floodproofing
• Draft and Final NOE
• Draft and Final CRA Report to be approved by the City (and included within the future applicable permit applications)
Morro Creek Flood Reduction Project
• Draft IS/MND and EA
• Final IS/MND and EA with Technical Appendices (including Final MMRP) • Draft and Final FONSI and NOD
Task 7.1 Assumptions
• Budget does not include noticing or required State Clearinghouse and CDFW filing fees. • Cultural study is one report that analyzes two sites, including the RO Facility, and the Morro Creek Flood Reduction Project.
• The direct costs for the CHRIS records search will not exceed $1,500. Records search results will be received within six weeks.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
26 • No cultural resources will be identified within the APE as a result of the CHRIS records search or field survey, although it is known that such sensitive resources have been recorded in the Morro Creek corridor. Should cultural resources be identified, expansion of the APE and any additional work associated with their documentation and evaluation will be conducted under an amendment to the scope and fee. • The Native American and interested party outreach included in this scope does not constitute formal government-to-government consultation pursuant to Section 106. • No federal funding is used for design, planning or implementation of the RO Facility floodproofing.
• The RO Facility Floodproofing Project qualifies for a CEQA CE. • One round of review will be conducted by the City for all deliverables under this task. • The AB 52 records search for the Morro Creek Flood Reduction Project will be conducted within a maximum direct expense of $1,500.
• The City will distribute all environmental documents. • Electronic versions of public environmental documents will be submitted to the City for posting to their website.
• All deliverables will be submitted electronically.
• A review of existing information and database queries will be conducted for the evaluation of biological resources in the vicinity of the RO Facility; a biological resource survey and separate report will not be conducted or prepared for the RO Facility. • The Projects will have no impact/effect on historic resources eligible or on NRHP or CRHR
• All other technical studies not covered by stated level of effort (LOE) are out-of-scope. • Comments are received on the Morro Creek Flood Reduction Project environmental document does not exceed 25 individual comments.
• Posting in the Federal Register is not required.
• The City will file all notices.
• Environmental Justice and Climate Change are not required to be analyzed under NEPA.

Task 7.2 Biological Resource Evaluation and Surveys – Morro Creek Flood Reduction Project The Stillwater Team will prepare a Biological Resources Evaluation to inform the CEQA/NEPA process and permitting for the Morro Creek Flood Reduction Project. Stillwater will review the following databases to identify special-species and sensitive natural communities that may be near the project: CDFW’s California Natural Diversity Data Base (CNDDB); California Native Plant Society’s (CNPS) Inventory of Rare and Endangered Plants; USFWS’s Information, Planning, and Consultation System (IPAC); and NMFS’s West Coast Region, Species and Habitat App. Stillwater will also review existing spatial data, including aerial imagery and vegetation data sets (e.g., the U.S. Department of Agriculture, Forest Service’s Cal Veg, CDFW’s VegCAMP) along with soils and topography information as a baseline for updating vegetation boundaries in the field. One reconnaissance-level wildlife and botanical habitat assessment survey will be conducted and combined with existing information to update the vegetation mapping and assess the potential habitat for special-status species, sensitive natural communities, and Environmentally Sensitive Habitat Areas (ESHAs). The BRE will also include general measures

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
27 for avoiding impacts to these sensitive biological resources, for refinement and incorporation into the CEQA/NEPA document.

Task 7.2 Deliverables
• Draft Biological Resources Evaluation
• Final Biological Resources Evaluation
Task 7.2 Assumptions
• A BRE will not be necessary for the RO Facility Floodproofing Project. • The BRE will suffice for federal ESA consultation, and thus a separate BA will not be required.
• The biological reconnaissance-level survey can be conducted by three staff (two botanists and one wildlife biologist) in two 10-hour days, excluding travel. • A fisheries assessment, including an assessment of steelhead rearing habitat can be completed based on existing information.
• The City will coordinate access to all properties associated with improvements that need to be surveyed.
• The entire watershed plan area will not be surveyed.

Task 7.3 Aquatic Resources Delineation – Morro Creek Flood Reduction Project Delineation of potential Waters of the U.S. (WOUS) will be conducted for the Morro Creek Flood Reduction Project in accordance with the USACE’s 1987 Wetlands Delineation Manual and 2008 Regional Supplement to the Corps of Engineers Wetland Delineation Manual: Arid West Region (Arid West Region Supplement) as well as USACE’s 2025 National Ordinary High Water Mark Field Delineation Manual for Rivers and Streams, and the USACE’s 2024 Rapid Ordinary High Water Mark (OHWM) Identification Data Sheet. In addition, the 2025 guidance from USACE and the U.S.

Environmental Protection Agency on proper interpretation of continuous surface water connection under the Clean Water Act will be consulted. The extent of water features will be delineated in the field by mapping the ordinary high-water mark at representative cross-sections or transects within each feature. Waters subject to the Regional Water Quality Control Board, CDFW jurisdiction, and California Coastal Commission (i.e., Waters of the State) will also be delineated; this will include determining the top of bank and extent of riparian vegetation, and one-parameter wetlands based on the vegetation map. Post-field the transect data will be extrapolated based on topographic data in combination with hydrological data.

Task 7.3 Deliverables
• Draft Aquatic Resources Delineation Report
• Final Aquatic Resources Delineation Report
Task 7.3 Assumptions
The wetland delineation can be conducted by two staff in two 10-hour days, excluding travel.

The wetland delineation will focus exclusively on documenting the extent of U.S. and State Waters; no adjacent wetlands are present (including one-parameter wetlands that may qualify under the California Coastal Commission).

The City will coordinate access to all areas of Morro Creek that will need to be delineated.

Hydrological and topographic data from publicly available sources will be sufficient for this study and additional data collection and detailed analyses are not required.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
28 Task 7.4 Permitting
To ensure a focused and efficient permitting process for the Morro Creek Flood Reduction Project, an interagency pre-application meeting will be held early in the design and planning process. During this meeting an overview of proposed actions associated with the Morro Creek Flood Reduction Project will be presented along with a permit strategy. The purpose of this interagency pre-application meeting is to solicit feedback from regulatory agencies regarding the appropriate permit pathways for the Project, forge relationships with the regulatory agency staff, understand any environmental or regulatory concerns early on, and strategize any permitting efficiencies.

The Stillwater Team will prepare two sets of environmental resource permit applications: one set for the floodproofing of the RO Facility and the second set for the Morro Creek Flood Reduction Project. It is assumed that floodproofing of the RO Facility would only require a CDP through the City as the RO Facility is not located within jurisdictional waters and is not expected to affect biological or cultural resources. Programmatic permits for management and other activities in the entire watershed are not being proposed at this time, as this process is more lengthy and costly.

With the project-level permit approach, the initial project identified in the Watershed Management Plan can be permitted in a shorter time frame and for a much-reduced cost. As other flood reduction projects identified in the Watershed Management Plan come online, they can be permitted programmatically or on a project-by-project basis.

For purposes of this proposal, the Stillwater Team will prepare the following permit applications for the Morro Creek Flood Reduction Project: (a) USACE Section 404 Nationwide Permit, (b) RWQCB Section 401 Individual Water Quality Certification (WQC), (c) CDFW Section 1602 Streambed Alteration Agreement (SAA), (d) City CDP, and (e) consultations under Section 7 of the ESA with USFWS and NMFS. This budget does not include fees associated with these permits; fees are based on construction costs or amount of fill placed in jurisdictional waters, which will not be determined until final design.

This scope assumes one round of review and revision of each draft permit application by the City and applicable agency. If additional permitting is required by regulatory agencies, the Stillwater Team will advise the City of any deviation from this scope of work so that appropriate scope and budget can be addressed. As indicated above, the permit process will continue and permits are expected to be issued during the next phase once final design is completed. The City will be informed of progress during monthly check-in calls.

Based on known information, we assume that any potential for take of federally and/or State listed species will be avoided; either because there would be no potential for take (e.g., no effect to steelhead or California red-legged frog since all work will occur when the creek is dry), or through implementation of avoidance and minimizations measures (e.g., timing to avoid sensitive life history stages). Therefore, it is assumed that only informal consultation with USFWS or NMFS under Section 7 of the ESA is needed. Tidewater goby is located within the lagoon downstream of the RO Facility and stormwater infrastructure, and California red-legged frog and rearing steelhead are primarily upstream of the City (Figure 3) and likely outside of the project areas. Migrating adult and smolt steelhead rely on moderate to high flows for movement through the lower watershed, which occur outside of the construction season.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
29 Figure 3. ESA listed species within the Morro Creek Watershed.

Task 7.4 Deliverables
RO Facility Floodproofing
• Draft and Final CDP Application
Morro Creek Flood Reduction Project
• Draft and Final USACE 404 Nationwide Permit Application • Draft and Final RWQCB 401 Individual WQC Application
• Draft and Final CDFW 1602 SAA Notification
• Draft and Final City CDP Application
Task 7.4 Assumptions
• No other permits beyond a CDP are required for floodproofing of the RO Facility. • Informal consultation under Section 7 of the ESA with USFWS or NMFS. • The Morro Creek Flood Reduction Project qualifies for use of a USACE NWP • Budget does not include permit fees.
• Project activities do not include dredging as defined by RWQCB. • Federal agency engagement is subject to federal government funding. • No compensatory mitigation is required.
• Improvements can be completed within 5 years and will not require programmatic permits.

Estimated Labor Hours
The chart below details the estimated labor hours by task for staff. Key staff are identified by an asterisk *.

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
30 Name Classification Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Total Ethan Bell* Scientist/Engineer
20 205 0 4 32 2 12 26 281
Scott Smith* Scientist/Engineer
14 100 0 130 174 40 184 9 637
James Renfro* Scientist/Engineer
18 0 90 5 0 0 0 0 95
Lucy Barraza* Scientist/Engineer
13 0 0 0 0 0 0 199 199
Christian
Braudrick*
Scientist/Engineer
15 0 0 5 0 4 0 8 17
Chris Lyle* Scientist/Engineer
17 30 0 232 100 10 100 0 472
Joel Monschke* Scientist/Engineer
19 0 0 8 0 2 2 0 12
Coreen Johnson Scientist/Engineer
12 0 0 0 5 0 10 0 15
Emily Jadeski Scientist/Engineer
07 0 0 15 20 0 5 53 93
John Evans Scientist/Engineer
05 0 0 40 70 140 84 0 334
Matt McKechnie Scientist/Engineer
10 0 0 0 0 0 0 40 40
Holly Burger Scientist/Engineer
17 0 0 0 0 0 5 50 55
Nicole Jurjavcic Scientist/Engineer
15 0 0 0 0 0 5 152 157
Imani Russell Scientist/Engineer
10 0 0 0 0 0 0 222 222
Rebecca Wynd Scientist/Engineer
07 0 0 0 0 0 0 220 220
Gianni Denson Scientist/Engineer
05 60 200 314 110 0 110 0 794
Brianne
Roxbrough
Scientist/Engineer
05 0 0 0 0 0 0 100 100
Valerie Huff* Senior Civil
Engineer III 78 8 46 70 4 122 78 328
Alex Murray* Civil Engineer II 34 6 178 132 24 188 34 562 Travis Vazquez* Civil Engineer II 0 4 0 15 40 127 0 186 Tony Scalise* Assistant Resident
Engineer II 0 0 0 8 12 16 0 36
Clayton
Bradshaw*
Director of
Surveying 12 38 0 0 16 0 12 66
Marco
Castaneda* Land Surveyor II 24 182 0 0 0 0 0 206
Mark Madonna* Survey Technician 0 216 0 0 0 0 0 216
Ian Shoebridge* Principal Engineer 60 2 0 168 130 174 0 534 Judd King* Senior Project
Manager 0 0 0 0 60 0 0 60
Gresh Eckrich* Senior Project
Manager 0 0 0 0 40 0 0 40
Jamie Ross* Senior Project
Engineer 0 0 0 0 80 0 0 80
Colby Boggs* Principal 0 0 0 0 0 0 18 18

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
31 Name Classification Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Total Jennifer
Jacobus* Principal 0 0 0 0 0 0 8 8
Chris Bersbach* Senior Supervisor II 0 0 0 0 0 0 198 198 Estimated Timeline/Schedule
We have developed an approach, and a team, that recognizes the comprehensive scale of this effort, and aggressive timeline. We understand the importance of early planning and coordination to initiate surveys, field work, and permitting strategy, so that critical tasks can occur simultaneously. For example, geotechnical and survey to support alternatives development and permitting can begin immediately for the RO Facility, whereas additional data and model development will be required prior to alternatives evaluation for the Morro Creek Flood Reduction Project. The schedule below is subject to adjustment by mutual consent of the Stillwater Team and City, and summarizes the estimated project timeline/schedule, identifying major steps and milestones.

List of Major Milestones by Task
Task Major Milestone Anticipated
Timeline
Symbol
1 Contract Jan 2026 C
Public Workshops (3) Spring 26, Fall 26,
Summer 27 PW
Present draft WMP to City and stakeholders (2) Winter 2027 DWMP Present final WMP to City and stakeholders (2) Winter 2027 FWMP 3 H&H Memo (Draft) Jul 2026 DHHM
H&H Memo (Final) Aug 2026 FHHM
4 Draft WMP Report Nov 2026 DWMP
Final WMP Report Dec 2026 FWMP
5 Geotech Report Dec 2026 GEO
RO Facility Design – 30% Dec 2026 30%
Morro Creek Flood Reduction Design – 30% Feb 2027 30%
6 60% Plans, specs, etc. Dec 2026–Mar 2027 60%
Benefit/Cost Analysis Apr, Jun 2027 BCA
Grant Application Aug 2027 GAPP
7 Draft BRE Report Jul 2027 DBRE
Final BRE Report Aug 2027 FBRE

B-1

EXHIBIT B

SPECIAL REQUIREMENTS
(Superseding Agreement Boilerplate)

Exhibit B: Exceptions

1.1 Exception #1
Article 1. Section 1.1. Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants…

1.2 Exception #2
Article 1. Section 1.1. Scope of Services. …and, c) Consultant shall perform follow the highest professional standards and practices in performing the services required hereunder consistent with the professional skill and care ordinarily provided by consultants practicing in the same or similar locality and under the same or similar circumstances.

1.3 Exception #4
Article 2. Section 2.2. Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first tenth business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice during the previous month.

1.4 Exception #6
Article 5. Section 5.1. Insurance Coverages. …If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant’s compensation.

1.5 Exception #7
Article 5. Section 5.1(a). Commercial General Liability Insurance. A policy of commercial general liability insurance, with coverage at least as broad as Insurance Services Office (“ISO”) form CG 00 01, written on a per occurrence basis for bodily injury, personal injury and property damage. Defense costs must be paid in addition to limits. Coverage for an additional insured shall not be limited to its vicarious liability. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Limits shall be no less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate.

1.6 Exception #8
Article 5. Section 5.1(d). Professional Liability. Professional liability insurance appropriate to Consultant’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability where liability exists in the absence of the contract. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the

Exhibit B Exceptions
Stillwater Sciences
2 completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of City submit written evidence of this continuous coverage. Limits shall be no less than $1,000,000 per claim and no less than $1,000,000 general aggregate

1.7 Exception #9
Article 5. Section 5.1(e). Cyber Liability. Cyber liability insurance appropriate to Consultant’s profession and the services hereunder, written on a per occurrence claim basis, with limits not less than $1,000,000 per occurrence/loss, and $2,000,000 $1,000,000 in the aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations undertaken by Consultant pursuant to this Agreement and shall include, but not be limited to, claims involving:
infringement of intellectual property; copyright; trademark; invasion of privacy violations; data breach; electronic information theft, loss, damage, destruction, alteration or misuse; release of private information; extortion; and, network security. The policy shall provide coverage for breach response costs, regulatory fines and penalties, and credit monitoring expenses for which the Consultant is legally liable, with limits sufficient to respond to these obligations.

1.8 Exception #11
Article 5. Section 5.2(b). Cancellation/Amendment. All of herein required policies of insurance shall provide the insurance may not be amended or cancelled by insurer or any Party hereto without providing thirty (30) calendar days prior written notice (with exception of ten (10) calendar days prior written notice for nonpayment) to City. In the event any of said policies of insurance are amended or cancelled, Consultant shall, five (5) business days prior to the cancellation date, submit new evidence of insurance in conformance with this Agreement to City.

Consultant agrees to notify the City by certified mail, return receipt requested within 10 business days of the Consultant's receipt of a notice of amendment from its insurer.

1.9 Exception #12
Article 5. Section 5.2(b). Cancellation/Amendment. All of herein required policies of insurance shall provide the insurance may not be amended or cancelled by insurer or any Party hereto without providing thirty (30) calendar days prior written notice (with exception of ten (10) calendar days prior written notice for nonpayment) to City, except for Professional Liability, which Consultant agrees to notify the City by certified mail, return receipt requested within 10 business days of the Consultant's receipt of a notice of cancellation from its insurer. In the event any of said policies of insurance are amended or cancelled, Consultant shall, five (5) business days prior to the cancellation date, submit new evidence of insurance in conformance with this Agreement to City.

1.10 Exception #13
Article 5. Section 5.2(d). Primary, Subrogation, Contribution and Coverage. All of the above policies of insurance The commercial general liability policy provided for in Section 5.1(a) and the automobile liability policy provided for in Section 5.1(c) both shall be primary insurance. The insurers for above policies, Consultant and any subcontractors are all deemed hereof to waive all rights of subrogation and contribution they may have against City or City Parties except for

Exhibit B Exceptions
Stillwater Sciences
3 Professional Liability, which shall waive subrogation as to the City only, and their respective insurers, and all insurance policies required herein shall be endorsed to waive such rights. Any commercial general liability or automobile liability insurance maintained by City or City Parties will apply in excess of, and not contribute with, Consultant’s insurance….

1.11 Exception #14
Article 5. Section 5.2(d). Primary, Subrogation, Contribution and Coverage. …If Consultant maintains broader coverage and/or higher limits than the minimum amounts provided herein, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City and City Parties. Pursuant to section 5.2(a) hereabove, endorsements will be provided annually upon policy renewal. None of the coverages required herein will be in compliance with this Agreement if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

Requirements of specific coverage features or limits contained herein are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.

1.12 Exception #17
Article 5. Section 5.3(a). Indemnification, General Obligations. Consultant agrees, to the full extent permitted by law, to indemnify, defend, and hold harmless City and its elected and appointed officers, and employees and agents (each an “Indemnitee” and collectively, “Indemnitees”)…

1.13 Exception #22
Article 5. Section 5.3(a). Indemnification, General Obligations. …and in connection therewith:
1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.

1.14 Exception #26
Article 6. Section 6.2. Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“documents and materials”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership, use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of such documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors

Exhibit B Exceptions
Stillwater Sciences
4 shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City. Notwithstanding the foregoing, any documents and materials previously belonging to Consultant and used to perform Services under this Agreement shall remain the property of Consultant, unless otherwise set forth in this Agreement. To the extent the Services contain Consultant-owned documents and materials, Consultant hereby grants the City a non-exclusive, non-assignable, royalty free, irrevocable license to use such documents and materials for the purposes set forth herein. The City recognizes that the documents and materials are instruments of Consultant’s services and are not designed for use other than what is intended by the Agreement. Consultant will not be held liable for reuse or modification for any purpose other than those specified within this Agreement.

C-1

EXHIBIT C

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

II. City will compensate Consultant for the Services performed upon submission of valid invoices as described in Section 2.2. Separate monthly invoices shall be submitted for each FEMA grant in accordance with Consultant’s Proposal, each clearly labeled with the following information:

A. City Purchase Order number (to be provided following execution of this agreement) B. FEMA Grant identifying information:

Grant Title: Advance Assistance – Floodproof Reverse Osmosis Water Treatment Facility Building
• HMGP DR-4683-1233-081R
• FIPS Code 079-49362, Supplement 55
Grant Title: Advance Assistance – City of Morro Bay Storm Drain Assessment • HMGP DR-4683-1231-079R
• FIPS Code 079-49376, Supplement 57
III. The total compensation for the Services shall not exceed the Contract Sum for each FEMA Grant, as provided in Section 2.1 of this Agreement.

City of Morro Bay Morro Creek Watershed Management Plan — Cost Proposal December 2025 Stillwater Sciences
1 Nate Stong, PE, City Engineer
595 Harbor Street, Morro Bay, CA 93442
[email protected]
RE: Morro Creek Watershed Management Plan— G. Project Budget Estimate and Fee Schedule Dear Nate,
Thank you for the opportunity to present this cost proposal to collaborate with the City of Morro Bay (City) and the Coastal San Luis Resource Conservation District (CSLRCD) and support the goal to improve stormwater and surface water management in the Morro Creek Watershed to reduce impacts to public infrastructure, private property, and aquatic habitat.

We understand that FEMA awarded two distinct grant agreements to the City, and that invoicing will occur separately for each award. Therefore, we have provided budget estimates and fee schedule separately for the Floodproof Reverse Osmosis Water Treatment Facility Building — AP-01233, and City of Morro Bay Storm Drain Assessment — AP-01231.

In this cost proposal, for each award we provide all labor costs, overhead costs, subconsultant costs, and an itemized list for direct expenses in a matrix format, by task grouping, and show hours per staff member and labor costs. This includes a detailed time and material “not-to-exceed” fee for each task described in the Scope of Services. Labor rates for all project team members, and a fee schedule for all staff at all firms are also included. Please refer to our technical proposal for additional information.

The total not-to-exceed for AP-01233 is $306,196, the not-to-exceed for AP-01231 is $1,075,167, and the total not-to-exceed for both awards is $1,381,363.

We are excited for the opportunity to apply our team’s diverse skillsets and be an integral part of this important watershed management plan. Please contact us with any questions and acknowledge receipt of this proposal at your earliest convenience. We look forward to hearing from you. This cost proposal is valid for ninety (90) days from receipt.

Sincerely,
Ethan Bell Sapna Khandwala
Senior Aquatic Ecologist, Point of Contact Authorized Signatory [email protected] [email protected]
Stillwater Sciences | 1203 Main Street, Morro Bay, CA 93401 707-407-6862 (mobile)

City of Morro Bay Morro Creek Watershed Management Plan — Cost Proposal December 2025 Stillwater Sciences
2 Project Budget Estimate and Fee Schedule for Floodproof Reverse Osmosis Water Treatment Facility Building — AP-01233 Task 1 PM
Task 2
Topographi
c
Task 3 H&H
Model
Task 4
WMP
Task 5 30%
Designs
Task 6 60%
Designs
Task 7
Environme
ntal
Review
Total Labor
Labor Class Rate ($) Staff Hours Hours Hours Hours Hours Hours Hours Hours Cost S/E 19 266 Ethan Bell 40 0 0 0 0 1 2 43 $11,438
S/E 14 198 Scott Smith 0 0 30 4 0 24 0 58 $11,484
S/E 18 250 James Renfro 0 10 0 0 0 0 0 10 $2,500
S/E 13 186 Lucy Barraza 0 0 0 0 0 0 12 12 $2,232
S/E 17 234 Chris Lyle 0 0 40 40 0 40 0 120 $28,080
S/E 15 208
Nicole
Jurjavcic 0 0 0 0 0 0 4 4 $832
S/E 10 156 Imani Russell 0 0 0 0 0 0 8 8 $1,248
S/E 05 122
Gianni
Denson 0 10 30 10 0 0 0 50 $6,100
TOTAL

STILLWATER
HOURS 105 20 100 54 0 65 26 370

TOTAL STILLWATER LABOR
COST $27,930 $3,720 $18,960 $11,372 $0 $14,378 $4,844 $81,204

SUBCONTRACTOR
LABOR
Sub Class/Role 1 225 Valerie Huff 12 2 24 8 4 48 0 98 $22,932 Sub Class/Role 2 183 Alex Murray 8 2 101 12 24 64 0 211 $40,090 Sub Class/Role 3 183
Travis
Vazquez 0 0 0 2 40 92 0 134 $25,460
Sub Class/Role 4 180 Tony Scalise 0 0 0 0 4 8 0 12 $2,244 Sub Class/Role 5 228
Clayton
Bradshaw 8 6 0 0 8 0 0 22 $5,214
Sub Class/Role 6 265
Ian
Shoebridge 40 2 0 48 100 118 0 308 $85,008
Sub Class/Role 15 329 Colby Boggs 0 0 0 0 0 0 2 2 $684
Sub Class/Role 10 226
Chris
Bersbach 0 0 0 0 0 0 28 28 $6,580

City of Morro Bay Morro Creek Watershed Management Plan — Cost Proposal December 2025 Stillwater Sciences
3 Task 1 PM
Task 2
Topographi
c
Task 3 H&H
Model
Task 4
WMP
Task 5 30%
Designs
Task 6 60%
Designs
Task 7
Environme
ntal
Review
Total Labor
Labor Class Rate ($) Staff Hours Hours Hours Hours Hours Hours Hours Hours Cost Sub Class/Role 10 230 Judd King 0 0 0 0 30 0 0 30 $7,170 Sub Class/Role 11 230 Gresh Eckrich 0 0 0 0 20 0 0 20 $4,780 Sub Class/Role 12 170 Jamie Ross 0 0 0 0 40 0 0 40 $7,080 Sub Class/Role 10 250
Mark
Madonna 0 16 0 0 0 0 0 16 $4,160
Sub Class/Role 12 150
Land
Surveyor 0 16 0 0 0 0 0 16 $2,496
Sub Class/Role 12 180
Marco
Castaneda 8 26 0 0 0 0 0 34 $6,358

TOTAL SUBCONTRACTOR
HOURS 96 70 164 180 300 394 30 971 $220,256

SUBCONTRACTOR LABOR
MARK-UP 10% $2,428 $1,434 $3,222 $4,814 $7,065 $9,260 $726 $22,026

TOTAL SUBCONTRACTOR
LABOR COST $26,708 $15,774 $35,438 $52,954 $77,715 $101,860 $7,990 $242,282 TOTAL LABOR COST $54,638 $19,494 $54,398 $64,326 $77,715 $116,238 $12,834 $306,196 TOTAL EXPENSES: $0 $0 $0 $0 $103 $0 $0 $0
TOTAL COST (not-to-exceed): $54,638 $19,494 $54,398 $64,326 $77,818 $116,238 $12,834 $306,196

City of Morro Bay Morro Creek Watershed Management Plan — Cost Proposal December 2025 Stillwater Sciences
4 Project Budget Estimate and Fee Schedule for City of Morro Bay Storm Drain Assessment — AP-01231 Task 1 PM
Task 2
Topographic
Task 3 H&H
Model Task 4 WMP
Task 5 30%
Designs
Task 6 60%
Designs
Task 7
Environmental
Review
Total Labor
Labor Class Rate ($) Staff Hours Hours Hours Hours Hours Hours Hours Hours Cost S/E 19 266 Ethan Bell 180 0 4 50 2 17 24 277 $73,442
S/E 14 198 Scott Smith 100 0 180 200 40 190 9 719 $142,290 S/E 18 250 James Renfro 0 80 5 0 0 0 0 85 $21,250
S/E 13 186 Lucy Barraza 0 0 0 0 0 0 187 187 $33,473
S/E 07 137 Emily Jadeski 0 0 15 20 0 5 53 93 $12,476
S/E 17 234 Chris Lyle 30 0 192 60 10 60 0 352 $82,368
S/E 19 266
Joel
Monschke 0 0 8 0 2 2 0 12 $3,192
S/E 12 176
Coreen
Johnson 0 0 0 5 0 10 0 15 $2,640
S/E 05 122 John Evans 0 0 40 70 140 84 0 334 $40,748
S/E 10 156
Matt
McKechnie 0 0 0 0 0 0 40 40 $6,000
S/E 17 234 Holly Burger 0 0 0 0 0 5 50 55 $12,420
S/E 15 208
Nicole
Jurjavcic 0 0 0 0 0 5 148 153 $30,640
S/E 10 156 Imani Russell 0 0 0 0 0 0 214 214 $32,100
S/E 07 137
Rebecca
Wynd 0 0 0 0 0 0 220 220 $29,040
S/E 15 208
Christian
Braudrick 0 0 5 0 4 0 8 17 $3,472
S/E 05 122 Gianni Denson 60 190 284 100 0 110 0 744 $90,768 S/E 05 122
Brianne
Roxbrough 0 0 0 0 0 0 100 100 $11,700
TOTAL STILLWATER HOURS 290 270 653 457 198 452 1053 3617 TOTAL STILLWATER LABOR COST $60,740 $43,180 $111,793 $80,572 $29,236 $77,501 $169,613 $628,019

City of Morro Bay Morro Creek Watershed Management Plan — Cost Proposal December 2025 Stillwater Sciences
5 Task 1 PM
Task 2
Topographic
Task 3 H&H
Model Task 4 WMP
Task 5 30%
Designs
Task 6 60%
Designs
Task 7
Environmental
Review
Total Labor
Labor Class Rate ($) Staff Hours Hours Hours Hours Hours Hours Hours Hours Cost

SUBCONTRACTOR LABOR

Sub Class/Role 1 234 Valerie Huff 66 6 22 62 80 74 0 310 $72,540 Sub Class/Role 2 190 Alex Murray 26 4 38 120 0 124 0 312 $59,280 Sub Class/Role 3 190
Travis
Vazquez 0 4 0 13 0 35 0 52 $9,880
Sub Class/Role 4 187 Tony Scalise 0 0 0 8 8 8 0 24 $4,488 Sub Class/Role 5 237
Clayton
Bradshaw 4 32 0 0 8 0 0 44 $10,428
Sub Class/Role 6 276
Ian
Shoebridge 0 0 0 10 0 0 0 10 $2,760
Sub Class/Role 15 342 Colby Boggs 0 0 0 0 0 0 16 16 $5,264 Sub Class/Role 12 304
Jennifer
Jacobus 0 0 0 0 0 0 8 8 $2,336
Sub Class/Role 10 235
Chris
Bersbach 0 0 0 0 0 0 170 170 $38,420
Sub Class/Role 10 239 Judd King 0 0 0 0 30 0 0 30 $7,170 Sub Class/Role 11 239 Gresh Eckrich 0 0 0 0 20 0 0 20 $4,780 Sub Class/Role 12 177 Jamie Ross 0 0 0 0 40 0 0 40 $7,080 Land Surveyor 260
Mark
Madonna 0 92 0 0 0 0 0 92 $23,920
Instrument
Technician 156 TBD 0 92 0 0 0 0 0 92 $14,352
Land Surveyor 187
Marco
Castaneda 16 156 0 0 0 0 0 172 $32,164
TOTAL SUBCONTRACTOR HOURS 112 386 60 213 106 241 194 1392 $294,862

SUBCONTRACTOR LABOR
MARK-UP 10% $2,432 $7,795 $1,237 $4,403 $2,242 $4,902 $4,602 $29,486 $29,486 TOTAL SUBCONTRACTOR LABOR COST $26,756 $85,747 $13,605 $48,437 $24,664 $53,924 $50,622 $324,348

STILLWATER
EXPENSES: Unit Price Units Units Units Units Units Units Units Total
Units Cost

City of Morro Bay Morro Creek Watershed Management Plan — Cost Proposal December 2025 Stillwater Sciences
6 Task 1 PM
Task 2
Topographic
Task 3 H&H
Model Task 4 WMP
Task 5 30%
Designs
Task 6 60%
Designs
Task 7
Environmental
Review
Total Labor
Labor Class Rate ($) Staff Hours Hours Hours Hours Hours Hours Hours Hours Cost Rental Vehicle SUVStandard (Day)+Fuel
$111 0 10 0 0 0 0 8 18 $1,998
LODGING (pp per day):
$250 0 15 0 0 0 0 15 30 $7,500
MEALS (pp per day):
$60 0 15 0 0 0 0 20 35 $2,100
LiDAR Flight and Ortho $86,000 0 1 0 0 0 0 0 1 $86,000
Underground Utility
Locating $6,000 0 1 0 0 0 0 0 1 $6,000
Survey Package Robotic
Total Station $300 0 10 0 0 0 0 0 10 $3,000
Tablet Field Data Collector
(daily) $15 0 20 0 0 0 0 6 26 $390
GPS Trimble Geo7x package
(daily) $150 0 20 0 0 0 0 1 21 $3,150
STILLWATER EXPENSES COST: $0 $104,060 $0 $0 $0 $0 $6,078 $110,138 ODC MARK-UP: 10% $0 $10,406 $0 $0 $0 $0 $608 $11,014

SUBCONTRACTOR
EXPENSES: Unit Price
TRAVEL $100 0 0 0 0 1 0 0 1 $100
Records Search $1 0 0 0 0 0 0 1,500 1,500 $1,500
SUBCONTRACTOR EXPENSES COST: $0 $0 $0 $0 $100 $0 $1,500 $1,600 SUB. EXPENSES MARK-UP 3% $0 $0 $0 $0 $3 $0 $45 $48
TOTAL EXPENSES: $0 $114,466 $0 $0 $103 $0 $8,231 $122,800 TOTAL COST (not-to-exceed): $87,496 $243,393 $125,398 $129,009 $54,003 $131,425 $228,466 $1,075,167

Attachment A
Rate Sheets

Berkeley, CA
510.848.8098
Arcata, CA
707.822.9607
Davis, CA
530.756.7550
Morro Bay, CA
805.570.7499
Los Angeles, CA
213.336.0001
Ventura, CA
213.336.0001
Portland, OR
503.267.9006
Boulder, CO
720.656.2330
Fort Collins, CO
720.656.2330
www.stillwatersci.com
Stillwater Sciences Billing Rates
2025–2026
Billing Classification Hourly Rate
S/A 1 $82
S/A 2 $95
S/A 3 $108
S/E 4 $115
S/E 5 $121
S/E 6 $128
S/E 7 $136
S/E 8 $142
S/E 9 $147
S/E 10 $155
S/E 11 $164
S/E 12 $174
S/E 13 $184
S/E 14 $196
S/E 15 $206
S/E 16 $216
S/E 17 $232
S/E 18 $247
S/E 19 $264
S/E 20 $278
S/A = Scientist/Administrator; S/E = Scientist/Engineer Rates are applied for labor‐hour level‐of‐effort contracts with reimbursement for expenses (including travel expenses and subcontractors) at cost plus 10%. Hourly rates will be adjusted on January 1 of each year.

Exhibit A
Standard Billing Rates
Engineering, Design & Support Services:

Assistant Designer/Technician ........................................ $128 Designer/Technician I – IV ............................................. $132/$142/$152/$162 Senior Designer/Technician I – III ..................................... $172/$179/$186 GIS Technical Specialist ................................................ $167 Senior GIS Technical Specialist ....................................... $178 Associate Engineer I – III ............................................... $140/$150/$160 Engineer I – IV ........................................................... $178/$183/$188/$193 Senior Engineer I - III ................................................... $210/$218/$225 Director .................................................................. $228 Principal Engineer/Consulting Engineer ............................. $255 Principal .................................................................. $280 Surveying Services:

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

Associate Planner I - II ................................................. $115/$125 Planner I – IV ............................................................. $140/$150/$160/$170 Senior Planner I - III .................................................... $175/$180/$185 Director .................................................................. $210 Principal Planner ........................................................ $225 Principal .................................................................. $280 Landscape Architecture Services:

Associate Landscape Designer I – II ................................... $110/$120 Designer I – IV ........................................................... $125/$130/$135/$140 Landscape Architect I - IV ............................................. $148/$153/$158/$163 Senior Landscape Architect I - III ..................................... $168/$173/$178 Director .................................................................. $195 Principal Landscape Architect ........................................ $215 Principal .................................................................. $280 2025 Standard Billing Rates 1

Construction/Program Management and Inspection Services:

Construction Office Tech I-III .......................................... $125/$135/$145 Construction Inspector I-IV ............................................ $150/$155/$160/$165 Senior Construction Inspector ........................................ $170 Construction Inspector (*Prevailing Wage) .......................... $185 Assistant Construction/ Program Manager I - II ..................... $165/$170 Construction/ Program Manager I-III ................................. $175/$180/$185 Senior Construction/ Program Manager I - II ........................ $195/$200 Assistant Resident Engineer I - II...................................... $175/$180 Resident Engineer I-III .................................................. $185/$190/$195 Senior Resident Engineer I-II .......................................... $205/$210 Director .................................................................. $228 Principal Construction Manager ....................................... $253 Principal .................................................................. $280 Public Works Administration Services:

Project Analyst I - IV ................................................... $125/$135/$145/$155 Senior Project Analyst I - III ........................................... $160/$165/$170 Senior Environmental Compliance Specialist I - III ................. $175/$180/$185 Support Services:

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

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

Right to Revisions:

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

Additional Professional Services:

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

Direct Expenses:

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

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

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

WALLACE GROUP 2
2025 Standard Billing Rates

ASHLEY & VANCE ENGINEERING | RATE SHEET
CITY OF MORRO BAY | Morro Creek Watershed Management Plan All invoices are billed on a monthly basis, due and
payable upon receipt. A 1½% monthly finance
charge may be assessed for payments greater
than 30 days past due. Ashley & Vance
Engineering, Inc. may suspend services until
account is brought current.

Ashley & Vance Engineering, Inc. carries
professional, auto, workers compensation, and
general liability insurance. Certificates will be
issued upon request.

As of January 1, 2025, rates for Structural Engineering services :

Hourly Billing Rates
Principal Engineer $265
Senior Engineer $225
Project Engineer $185
Design Engineer $155
Office/Clerical $105
Insurance
Billing
Hourly Rates

Colorado California
Denver | Colorado Springs | Durango | Glenwood Springs | Grand Junction | Greeley Grover Beach | Ventura

STANDARD FEE SCHEDULE

CALIFORNIA
EFFECTIVE JANUARY 2025
Professional Services:

Classification Rate
Principal ..............................................................................................................................................................$ 240/hr Senior Project Manager, Engineer or Geologist...............................................................................................$ 230/hr Senior Project Specialist.....................................................................................................................................$ 220/hr Project Manager, Associate Engineer or Associate Geologist.........................................................................$ 210/hr Senior Project Engineer or Geologist................................................................................................................$ 170/hr Project Engineer or Geologist............................................................................................................................$ 150/hr Senior Staff Engineer or Geologist....................................................................................................................$ 135/hr Staff Engineer or Geologist................................................................................................................................$ 125/hr Engineer or Geologist Intern .............................................................................................................................$ 80/hr Resident Construction Engineer........................................................................................................................$ 225/hr Construction Manager.......................................................................................................................................$ 205/hr Construction Observer.......................................................................................................................................$ 165/hr Laboratory Supervisor........................................................................................................................................$ 155/hr CAD Designer......................................................................................................................................................$ 160/hr Project Controller...............................................................................................................................................$ 170/hr Administrative Assistant....................................................................................................................................$ 105/hr Overtime rates for Construction Observation and Office Staff are 1.5 x rates shown.

Laboratory tests are quoted on separate schedule or cost-plus 10 percent for outside laboratory testing when applicable.

Fees for expert witness preparation, testimony, court appearances, or depositions will be billed at the rate of $400 per hour.

Rates do not include prevailing wages for field services. Prevailing wages will be determined on a project-by-project basis.

Other Direct Charges:

Subcontracted services, copying and rented equipment................................................................ Cost Plus 10% Travel, subsistence, and expenses.................................................................................................... Cost Plus 10% Vehicle ................................................................................................................................................ $ 85/day Automobile Mileage ..........................................................................................................................Current IRS Rate Hand Auger Kit ................................................................................................................................... $ 300/day Slope Inclinometer and readout ....................................................................................................... $ 150/day

Rincon Consultants, Inc.

Effective January 1, 2026
Standard Fee Schedule for Environmental Sciences and Planning Services Professional, Technical and Support Personnel* January 1, 2026 – December 31, 2026 Senior Principal $342
Principal $329
Director $329
Senior Supervisor II $313
Supervisor I $292
Senior Professional II $273
Senior Professional I $255
Professional IV $226
Professional III $210
Professional II $186
Professional I $166
Associate III $140
Associate II $125
Associate I $117
Field Technician $100
Technical Editor $157
Project Accountant $134
Billing Specialist $115
Publishing Specialist $128
Clerical $115
* Professional classifications include environmental scientists, urban planners, biologists, geologists, marine scientists, GHG verifiers, sustainability, cultural resources, GIS, data technology, and other professionals. Expert witness services consisting of depositions or incourt testimony are charged at the hourly rate of $400.

Reimbursable Expenses
Equipment Rate (per day)
Equipment Package (covers field equipment) $150
UAS Drone $300
Boat (20-foot Boston Whaler or Similar) $800
Light-Duty and Passenger Vehicles* $90
4WD and Off-Road Vehicles* $150
* Current IRS mileage rate for mileage over 50 and for all miles incurred in employee-owned vehicles.

Direct Costs. Other direct costs associated with the execution of a project, that are not included in the hourly rates above, are billed at cost plus 16%. These may include, but are not limited to, printing and production, laboratory and drilling services, subcontractors, vendors, authorized travel expenses, permit charges and filing fees, mailings and postage, performance bonds, sample handling and shipment, rental equipment, and vehicles other than covered by the above charges.

Budget Reallocation. Rincon reserves the right to reallocate the budget between tasks and staff classifications, while remaining within the approved contract amount.

Annual Escalation. Standard rates subject to 3.5% annual escalation on January 1.

Payment Terms. All fees will be billed to Client monthly and shall be due and payable upon receipt or as indicated in the contract provisions for the assignment. Invoices are delinquent if not paid within 10 days from receipt or per the contractually required payment terms.

www.stillwatersci.com
Berkeley, CA
(510) 848-8098
Los Angeles, CA
(213) 336-0001
Boulder, CO
(720) 656-2330
Davis, CA
(530) 756-7550
Ventura, CA
(213) 336-0001
Fort Collins, CO
(720) 656-2330
Arcata, CA
(707) 822-9607
Morro Bay, CA
(707) 407-6862
Portland, OR
(503) 267-9006
Stillwater Sciences is an employee-owned, small, women‐led business of science and engineering consultants.

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EXHIBIT D

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

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
31 Name Classification Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Total Jennifer
Jacobus* Principal 0 0 0 0 0 0 8 8
Chris Bersbach* Senior Supervisor II 0 0 0 0 0 0 198 198 Estimated Timeline/Schedule
We have developed an approach, and a team, that recognizes the comprehensive scale of this effort, and aggressive timeline. We understand the importance of early planning and coordination to initiate surveys, field work, and permitting strategy, so that critical tasks can occur simultaneously. For example, geotechnical and survey to support alternatives development and permitting can begin immediately for the RO Facility, whereas additional data and model development will be required prior to alternatives evaluation for the Morro Creek Flood Reduction Project. The schedule below is subject to adjustment by mutual consent of the Stillwater Team and City, and summarizes the estimated project timeline/schedule, identifying major steps and milestones.

List of Major Milestones by Task
Task Major Milestone Anticipated
Timeline
Symbol
1 Contract Jan 2026 C
Public Workshops (3) Spring 26, Fall 26,
Summer 27 PW
Present draft WMP to City and stakeholders (2) Winter 2027 DWMP Present final WMP to City and stakeholders (2) Winter 2027 FWMP 3 H&H Memo (Draft) Jul 2026 DHHM
H&H Memo (Final) Aug 2026 FHHM
4 Draft WMP Report Nov 2026 DWMP
Final WMP Report Dec 2026 FWMP
5 Geotech Report Dec 2026 GEO
RO Facility Design – 30% Dec 2026 30%
Morro Creek Flood Reduction Design – 30% Feb 2027 30%
6 60% Plans, specs, etc. Dec 2026–Mar 2027 60%
Benefit/Cost Analysis Apr, Jun 2027 BCA
Grant Application Aug 2027 GAPP
7 Draft BRE Report Jul 2027 DBRE
Final BRE Report Aug 2027 FBRE

Scope of Work Morro Creek Watershed Management Plan
Stillwater Sciences
1 Project Schedule
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

1.1 Project Management & Administration C

1.2 Initial Planning

1.3 Coordination with County and FEMA

1.4 Presentation of Findings to Stakeholders PW PW PW /

DWMP DMP PW
Task 2. Topographic and Aerial Based Surveys

2.1 Existing and Additional LiDAR

2.2 Establish Project Survey Control Network

2.3 Survey of Urban Infrastructure

2.4 Supplemental Topographic Survey

2.5 RO Facility Survey

2.6 Project Basemap

3.1 Hydrologic Model & Analysis

3.1.1. Hydrographic Data Collection

3.2. Sea Level Rise and Coastal Hydrology

3.3 Existing Conditions Model Build, Calibration, & Review DHHM FHHM

3.4 Existing Conditions Stormwater Modeling

3.5 Unconstrained System Modeling
Task 4. Watershed Management Planning

4.1 Opportunity Working Sessions & Site Visits

4.2 RO Facility Concepts & Recommendations

4.3. Morro Creek Flood Reduction Alternatives Development

4.4 R.O. Facility Flood-Proofing Modeling & Engineering Analysis

4.5 Morro Creek Flood Reduction Modeling & Evaluation of Alternatives

4.6 Reporting (Watershed Management Plan) DWMP FWMP
Task 5. 30% Designs (Plans and Supplemental Analysis)

5.1 Geotechnical Evaluations GEO

5.2 RO Facility Design 30%

5.3 Morro Creek Flood Reduction Designs 30%

6.1 Morro Creek Flood Reduction Modeling

6.2 R.O. Facility Hydraulic Modeling

6.3 Morro Creek Flood Reduction Project

6.3.1 Design Analysis

6.3.2 Drawings, Specs, & Estimates

6.3.3 Basis of Design Report

6.4 Floodproofing RO Facility

6.4.1 Design Analysis

6.4.2 Drawings, Specs, & Estimates 60%

6.4.3 Basis of Design Report 60% 60%

6.5 Benefit/Cost Analysis & Application–Implementation Phase Funding BCA BCA GAPP Task 7. Environmental Review

7.1 CEQA/NEPA Documentation

7.2 Technical Report & Surveys

7.3 Wetland Delineation

7.4 Permitting DBRE FBRE
2026 2027
Project Task
Task 3. Hydrologic and Hydraulic Modeling
Task 1. Project Management, Administration, & Planning
Task 6. 60% Design

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EXHIBIT E

FEDERAL CONTRACT PROVISIONS
I. Compliance with the Contract Work Hours and Safety Standards Act (29 CFR § 5.5) a. Overtime requirements. No Consultant or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
b. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a) of this section the Consultant and any subcontractor responsible therefore shall be liable for the unpaid wages and interest from the date of the underpayment. In addition, such Consultant and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchpersons and guards, employed in violation of the clause set forth in paragraph (a) of this section, in the sum of $32 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a).
c. Withholding for unpaid wages and liquidated damages. i. Withholding Process. The City of Morro Bay may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the Consultant so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime Consultant or any subcontractor for any unpaid wages; monetary relief, including interest; and liquidated damages required by the clauses set forth in this paragraph (a) on this contract, any other federal contract with the same prime Consultant, or any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act that is held by the same prime Consultant (as defined in 29 CFR § 5.2). The necessary funds may be withheld from the Consultant under this contract, any other federal contract with the same prime Consultant, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and is held by the same prime Consultant, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the Consultant liability for which the funds were withheld.

E-2
ii. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with paragraph (a)(2)(i) of 29 CFR § 5.5 or (c)(i) of this section, or both, over claims to those funds by:

1. A Consultant's surety(ies), including without limitation performance bond sureties and payment bond sureties;

2. A contracting agency for its reprocurement costs;

3. A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a Consultant, or a Consultant's bankruptcy estate;

4. A Consultant's assignee(s);

5. A Consultant's successor(s); or

6. A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901- 3907.
d. Subcontracts. The Consultant or subcontractor must insert in any subcontracts the clauses set forth in paragraphs (a) through (e) of this section and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime Consultant is responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a) through (e). In the event of any violations of these clauses, the prime Consultant, and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower-tier subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate. e. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
i. Notifying any Consultant of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its implementing regulations in this part; ii. Filing any complaint, initiating, or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or this part; iii. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or this part; or
iv. Informing any other person about their rights under CWHSSA or this part.

II. Clean Air Act Compliance
The Consultant agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.

E-3
The Consultant agrees to report each violation to the City of Morro Bay and understands and agrees that the City of Morro Bay will, in turn, report each violation as required to assure notification to the Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.

The Consultant agrees to include these requirements in each subcontract exceeding $150,000 financed in whole or in part with federal assistance provided by FEMA.

III. Federal Water Pollution Control Act Compliance
The Consultant agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251 et seq.

The Consultant agrees to report each violation to the City of Morro Bay and understands and agrees that the City of Morro Bay will, in turn, report each violation as required to assure notification to Cal OES, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.

The Consultant agrees to include these requirements in each subcontract exceeding $150,000 financed in whole or in part with federal assistance provided by FEMA.

IV. Suspension and Debarment
This contract is a covered transaction for purposes of 2 C.F.R. Part 180 and 2 C.F.R. Part 3000. As such, the Consultant is required to verify that none of the Consultant’s principals (defined at 2 C.F.R. § 180.995) or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935).

The Consultant must comply with 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C, and must include a requirement to comply with these regulations in any lower tier covered transaction it enters.

This certification is a material representation of fact relied upon by the City of Morro Bay. If it is later determined that the Consultant did not comply with 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C, in addition to remedies available to the City of Morro Bay, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment.

The bidder or proposer agrees to comply with the requirements of 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.

V. Byrd Anti-Lobbying Amendment, as amended, 31 U.S.C. § 1352 Consultants who apply or bid for an award of more than $100,000 shall file the required certification. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, officer or

E-4
employee of Congress, or an employee of a Member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352.

Each tier shall also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the recipient who in turn will forward the certification(s) to the federal agency.

Contractors must sign and submit the following certification with each bid or offer exceeding $100,000: “APPENDIX A, 44 C.F.R. PART 18 – CERTIFICATION REGARDING LOBBYING,” provided with the Request for Proposals for this project.

VI. Procurement of Recovered Materials
a. In the performance of this contract, the Consultant shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired—
i. Competitively within a timeframe providing for compliance with the contract performance schedule;
ii. Meeting contract performance requirements; or
iii. At a reasonable price.
b. Information about this requirement, along with the list of EPA-designated items, is available at Comprehensive Procurement Guideline (CPG) Program | US EPA.

The Consultant also agrees to comply with all other applicable requirements of Section 6002 of the Solid Waste Disposal Act.

VII. Prohibition on Contracting for Covered Telecommunications Equipment or Services a. Definitions. As used in this clause, the terms backhaul; covered foreign country; covered telecommunications equipment or services; interconnection arrangements; roaming; substantial or essential component; and telecommunications equipment or services have the meaning as defined in FEMA Policy 405-143-1, Prohibitions on Expending FEMA Award Funds for Covered Telecommunications Equipment or Services, as used in this clause— b. Prohibitions.
i. Section 889(b) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. No. 115-232, and 2 C.F.R. § 200.216 prohibit the head of an executive agency on or after Aug.13, 2020, from obligating or expending grant, cooperative agreement, loan, or loan guarantee funds on certain telecommunications products or from certain entities for national security reasons.
ii. Unless an exception in paragraph (c) of this clause applies, the Consultant and its subcontractors may not use grant, cooperative agreement, loan, or loan guarantee funds from the Federal Emergency Management Agency to:

1. Procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial

E-5
or essential component of any system, or as critical technology of any system;

2. Enter, extend, or renew a contract to procure or obtain any equipment, system, or service that uses covered
telecommunications equipment or services as a substantial or essential component of any system, or as critical technology of any system;

3. Enter, extend, or renew contracts with entities that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or

4. Provided, as part of its performance of this contract, subcontract, or other contractual instrument, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.
c. Exceptions.
i. This clause does not prohibit Consultants from providing—

1. A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

2. Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles.
ii. By necessary implication and regulation, the prohibitions also do not apply to:

1. Covered telecommunications equipment or services that:
a. Are not used as a substantial or essential component of any system; and
b. Are not used as critical technology of any system.

2. Other telecommunications equipment or services that are not considered covered telecommunications equipment or services. d. Reporting requirement.
i. In the event the Consultant identifies covered telecommunications equipment or services used as a substantial or essential component of any system, or as critical technology as part of any system, during contract performance, or the Consultant is notified of such by a subcontractor at any tier or by any other source, the Consultant shall report the information in paragraph (d)(ii) of this clause to the recipient or subrecipient, unless elsewhere in this contract are established procedures for reporting the information.

E-6
ii. The Consultant shall report the following information pursuant to paragraph (d)(i) of this clause:

1. Within one business day from the date of such identification or notification: The contract number; the order number(s), if applicable; supplier name; supplier unique entity identifier (if known); supplier Commercial and Government Entity (CAGE) code (if known); brand; model number (original equipment manufacturer number, manufacturer part number, or wholesaler number); item description; and any readily available information about mitigation actions undertaken or recommended.

2. Within 10 business days of submitting the information in paragraph (d)(ii)(1) of this clause: Any further available information about mitigation actions undertaken or recommended.

In addition, the Consultant shall describe the efforts it undertook to prevent use or submission of covered telecommunications equipment or services, and any additional efforts that will be incorporated to prevent future use or submission of covered telecommunications equipment or services.
e. Subcontracts. The Consultant shall insert the substance of this clause, including this paragraph (e), in all subcontracts and other contractual instruments.

VIII. Domestic Preference for Procurements
The Consultant should, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. This includes, but is not limited to, iron, aluminum, steel, cement, and other manufactured products.

For purposes of this clause:

Produced in the United States means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.

U.S. Department of Homeland Security
FEMA Region 9
1111 Broadway, Suite 1200
Oakland, CA 94607
www.fema.gov
October , 2024
Robyn Fennig
Assistant Director, Hazard Mitigation
3650 Schriever Avenue
Mather, California 95655
Reference: Application Approval, HMGP DR-4683-1233-081R City of Morro Bay
Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility Building
FIPS Code: 079-49376, Supplement 55
Dear Robyn Fennig:

We approve and issue Hazard Mitigation Grant Program (HMGP) funds for the City of Morro Bay, DR-4683-1233-081R, Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility Building Flood Prevention.

The total project cost is $382,780.00 As shown in the enclosed Obligation Report - Supplement 55, we are obligating $287,085.00 for the 75 percent Federal share; the 25 percent non-Federal share is $95,695.00. We are obligating $19,112.32 for the 100% Federal share Subrecipient Management Costs. These funds are available in SmartLink for immediate and eligible disbursements. The following is a summary of the approved funding:

Funding Type: Federal Share: Non-Federal Share: Total Project Cost:

Supplement 55 $287,085.00 $95,695.00 $382,780.00
Management Costs $ 19,112.32 $ 0.00 $ 19,112.32
This HMGP project approval and obligation of funds are subject to the following conditions:

1. Scope of Work (SOW) The City of Morro Bay will identify the most effective mitigation heavy rain events. The project will include conducting a hydrologic and hydraulic (H&H) analysis of the watershed and existing storm drain system, performing alternatives analysis, and a benefit cost analysis. The project will also include preliminary design and engineering plans for the preferred alternative as well as environmental reviews and permitting. No

RECEIVED
OCT 7 2024

FINANCIAL PROCESSING UNIT
----------
079-49362 (AB)

Robyn Fennig
October , 2024

ground disturbing or structural activities are proposed as part of this Advance Assistance project, and none are permitted without prior notice to FEMA.

Project Completion Date The work schedule included with the project application indicates that the project will take 36 months to complete; therefore, the project completion date is October , 2027. Any work completed after this date will not be eligible for federal funding, and federal funds may be de-obligated for work completed outside the completion date when there is no approved time extension.

Project Closeout Within 120 days , all
project funds must be liquidated and final closeout documentation for the project must be submitted to FEMA. Please note the project must comply with Code of Federal Regulations Title 2, Part 200 reporting requirements at the time of closeout.

Record of Environmental Consideration (REC) This project has been determined to be Categorically Excluded from the need to prepare either an Environmental Impact Statement or Environmental Assessment in accordance with FEMA Instruction 108-1-1 and FEMA Directive 108-1-1 as authorized by DHS Instruction Manual 023-01-001-01, Revision 1.

Categorical Exclusion(s) A4 and A7 (concerning data analysis, surveys, and data collection of a minimally intrusive nature) has been applied. Particular attention should be given to the project conditions before and during project implementation. Failure to comply with these conditions may jeopardize federal assistance including funding. Please reference the enclosed REC for further information.

Standard Conditions This project approval is subject to the enclosed Standard Mitigation Grant Program (HMGP) Conditions, amended August 2018. Please note that federal funds may be de-obligated for work that does not comply with these conditions.

If you have any questions please contact Andrea Harvey, Senior Grants Management Specialist, by email at [email protected], or phone (202) 430-4878.

Sincerely,
Kathryn Lipiecki
Director, Mitigation Division
FEMA Region 9
Enclosures (3):

Obligation Report Supplement 55
Record of Environmental Considerations (REC)
Standard Mitigation Grant (HMGP) Conditions

Robyn Fennig
October , 2024

cc:

Services
Emergency Services
of Emergency Services
Emergency Services
Robert McCord, Chief, Hazard Mitigation Assistance Branch, FEMA Region 9

Obligation

HAZARD MITIGATION GRANT PROGRAM
FEDERAL EMERGENCY MANAGEMENT AGENCY HMGP-OB-01
State Recipient
Disaster
No
Supplemental
No
Action
No
State
Application ID
Amendment
No
FEMA
Project No
4683 - 0 1233 1 55 CA Statewide
Project Title : PCM: Advanced Assistance - Floodproof Reverse Osmosis Water Treatment Facility
Subrecipient: Morro Bay
Subrecipient FIPS Code: 079-49376
81 R
10:55 AM
10/3/2024
FY
Subrecipient Management Project Amount Cost Amount Total Obligation IFMIS Date IFMIS Status $287,085.00 $19,112.32 $306,197.32 10/03/2024 Accept 2025 Comments
Comment: 4683-1233-81-PCM-Advanced Assistance-Floodproof Reverse Osmosis Water Treatment-$287,085.00 and Sub Recipient Managem Costs-$19,112.32
Date: 10/02/2024 User Id: SSCOTT39

STEVEN SCOTT

JARED PERI
Authorization
Preparer Name:

HMO Authorization Name:

Preparation Date: 10/02/2024
HMO Authorization Date: 10/03/2024
Total Amount
Previously Allocated
Total Amount
Previously Obligated
Total Amount
Pending Obligation
Total Amount Available
for New Obligation
$0.00 $0.00 $287,085.00 $287,085.00

1 Standard Mitigation Grant Program (HMGP) Conditions
FEMA Region IX, August, 2018
The following list applies to Recipients and Subrecipients accepting HMGP funds from the Federal Emergency Management Agency (FEMA) of the Department of Homeland Security (DHS):

1. Applicable Federal, State, and Local Laws and Regulations. The Recipient/Subrecipient must comply with all applicable Federal, State, and Local laws and regulations, regardless of whether they are on this list or other project documents. DHS financial assistance Recipients and Subrecipients are required to follow the provisions of the State HMGP Administrative Plan, applicable Hazard Mitigation Assistance Uniform Guidance, and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards located in Title 2 of the Code of Federal Regulations (CFR) Part 200, adopted by DHS in 2 CFR 3002.

2. Financial Management Systems. The Recipient and Subrecipient must maintain financial management systems to account for and track funds, as referenced in 2 CFR 200.302.

3. Match or Cost Share. Non-federal match or cost share must comply with 2 CFR 200.306, the scope of work (SOW), and any agreements among the Subrecipient, the Recipient, and FEMA.

4. Budget Changes. Unanticipated adjustments are permitted within the approved total cost. However, if costs exceed the federal share, the Subrecipient must notify the Governor’s Authorized Representative (GAR) of overruns before implementation. The GAR shall submit a written request for approval to FEMA Region IX. The subaward must continue to meet HMGP requirements, including cost effectiveness and cost share. Refer to 2 CFR 200.308 for additional information.

5. Real Property and Land. The acquisition, use, and disposition must comply with 2 CFR 200.311.

6. Equipment. The acquisition, use, and disposition must comply with 2 CFR 200.313.

7. Supplies. Upon project completion, FEMA must be compensated for unused supplies, exceeding $5,000 (fair market value), and not needed for other federal programs. Refer to 2 CFR 200.314.

8. Procurement. Procurement procedures must be in conformance with 2 CFR 200.318-320.

9. Monitoring and Reporting Program Performance. The Recipient and Subrecipient must submit quarterly progress reports, as referenced in the 2 CFR 200.328 and State HMGP Administrative Plan.

10. Records Retention. In accordance with 2 CFR 200.333, financial/ programmatic records related to expenditures must be maintained at least 3 years after the date of Recipient’s final expenditure report.

11. Enforcement and Termination. If the Recipient or Subrecipient fails to comply with the award or subaward terms, whether stated in a Federal statute or regulation, the State HMGP Administrative Plan, subpplication, a notice of award, an assurance, or elsewhere, FEMA may take one or more of the actions outlined in 2 CFR 200.338, including termination or partial termination of the award or subaward outlined in 2 CFR 200.339.

12. Allowable Costs. Funds are to be used for allowable costs in compliance with 2 CFR 200.403, the approved SOW, and any agreements among the Subrecipient, Recipient, and FEMA.

2 13. Non-Federal Audit. The Recipient and Subrecipient are responsible for obtaining audits in accordance with the Single Audit Act of 1984, in compliance with 2 CFR 200.501.

14. Debarred and Suspended Parties. Recipients and Subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, and 2 CFR 180. These regulations restrict federal financial assistance awards, subawards, and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in the federal assistance programs or activities.

15. Equipment Rates. Rates claimed for use of Subrecipient-owned equipment in excess of the FEMAapproved rates must be approved under State guidelines issued by the State Comptroller's Office or must be certified by the Recipient to include only those costs attributable to equipment usage less any fixed overhead and/or profit.

16. Duplication of Funding between Public Assistance (PA) and HMGP. Funding for PA Section 406 and HMGP Section 404 are permitted on the same facility/location, but the activities identified under each program must be distinct with separately accounted funds. At closeout, FEMA may adjust the funding to ensure the Subrecipient was reimbursed for eligible work from only one funding source.

17. Historic Properties and Cultural Resources. In compliance with 2 CFR 800, if a potential historic property or cultural resource is discovered during construction, the Subrecipient must cease work in the area and take all reasonable measures to avoid or minimize harm to the discovered property/resource. During construction, the Subrecipient will monitor ground disturbance activity, and if any potential archeological resources are discovered, will immediately cease work in that area, and notify the Recipient and FEMA. Construction in the area may resume with FEMA’s written approval after FEMA’s consultation, if applicable, with the State Historic Preservation Officer (SHPO).

18. NEPA and Changes to the Scope of Work (SOW). To comply with the National Environmental Policy Act (NEPA), and other Laws and Executive Orders, any change to the approved SOW shall be re-evaluated before implementation. Construction associated with a SOW change, prior to FEMA approval, may be ineligible for funding. Acceptance of federal funding requires environmental permits and clearances in compliance with all appropriate federal, state and local laws, and failure to comply may jeopardize funding.

Within their authority, the Recipient and Subrecipient must use of all practicable means, consistent with other essential policies, to create and maintain productive harmony for people and nature, and fulfill the social, economic, and other needs of present and future generations of Americans.

F.O. Project #
Subrecipient
Check here if this project is receiving Prepare CA Match funding Hazard Mitigation Grant Programs
The Subaward POP end-date for the above referenced project Date of FEMA Award Letter
Number of months requested by subrecipient (1-48)
FEMA Award Letter include Subaward POP end-date
Current overall Grant POP end-date
Does the full-term POP fit within the current overall Grant POP? Non-Disaster Grant Programs
The Subaward POP end-date for the above referenced project Date of FEMA Award Letter
Number of months requested by subrecipient (1-48)
FEMA Award Letter include Subaward POP end-date
Current overall Grant POP end-date
Does the full-term POP fit within the current overall grant POP? Non-Disaster Financial Data
Proposed Federal Share % Proposed Non-Federal Share %
Total Project Costs
Subrecipient Management Costs
Grand Total
HM Financial Specialist will initiate a Time Extension request for a new overall Grant POP enddate that will accommodate the full-term of the subaward. Once the time extension is approved by FEMA, the HM Grant Specialist will initiate internal approvals of the individual subaward.

POP Determination

U.S. Department of Homeland Security
FEMA Region 9
1111 Broadway, Suite 1200
October 15, 2024
Robyn Fennig
Assistant Director, Hazard Mitigation
Governor’s Authorized Representative
California Governor’s Office of Emergency Services
3650 Schriever Avenue
Mather, California 95655
Reference: Application Approval, HMGP DR-4683-1231-079R City of Morro Bay
Advance Assistance – City of Morro Bay Storm Drain Assessment FIPS Code: 079-49376, Supplement 57
Dear Robyn Fennig:

We approve and issue Hazard Mitigation Grant Program (HMGP) funds for the City of Morro Bay, HMGP DR-4683-1231-079R, Advance Assistance – City of Morro Bay Storm Drain Assessment.

The total project cost is $1,345,200.00. As shown in the enclosed Obligation Report - Supplement 57, we are obligating $1,008,900.00 for the 75 percent Federal share; the 25 percent non-Federal share is $336,300.00. We are obligating $67,044.20 for the 100% Federal share Subrecipient Management Costs. These funds are available in SmartLink for immediate and eligible disbursements. The following is a summary of the approved funding:

Funding Type: Federal Share: Non-Federal Share: Total Project Cost:

Supplement 57 $1,008,900.00 $336,300.00 $1,345,200.00
Management Costs $ 67,044.20 $ 0.00 $ 67,044.20
This HMGP project approval and obligation of funds are subject to the following conditions:

1. Scope of Work (SOW) – The City of Morro Bay will identify the most effective mitigation project to reduce flooding in the Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road areas of Morro Bay, California. The project will include conducting a hydrologic and hydraulic (H&H) analysis of the Morro Creek Watershed, developing a watershed management plan, and conducting an alternatives analysis. The project will also include preliminary engineering and design work for the preferred alternative as well as environmental reviews and permitting. No ground disturbing or structural activities are proposed as part of this Advance Assistance project, and none are permitted without prior notice to FEMA.
www.fema.gov
Oakland, CA 94607

Robyn Fennig
October 15, 2024

2. Project Completion Date – The work schedule included with the project application indicates that the project will take 36 months to complete; therefore, the project completion date is October 15, 2027. Any work completed after this date will not be eligible for federal funding, and federal funds may be de-obligated for work completed outside the completion date when there is no approved time extension.

3. Project Closeout – Within 120 days of the award period of performance’s expiration, all project funds must be liquidated and final closeout documentation for the project must be submitted to FEMA. Please note the project must comply with Code of Federal Regulations Title 2, Part 200 reporting requirements at the time of closeout.

4. Record of Environmental Consideration (REC) – This project has been determined to be Categorically Excluded from the need to prepare either an Environmental Impact Statement or Environmental Assessment in accordance with FEMA Instruction 108-1- 1 and FEMA Directive 108-1-1 as authorized by DHS Instruction Manual 023-01-001-01, Revision 1.

Categorical Exclusions A4 (information gathering, data analysis and processing, information dissemination, review, interpretation, and development of documents) and A7 (the commitment of resources, personnel, and funding to conduct audits, surveys, and data collection of a minimally intrusive nature) have been applied. Particular attention should be given to the project conditions before and during project implementation. Failure to comply with these conditions may jeopardize federal assistance including funding. Please reference the enclosed REC for further information.

5. Standard Conditions – This project approval is subject to the enclosed Standard Mitigation Grant Program (HMGP) Conditions, amended August 2018. Please note that federal funds may be de-obligated for work that does not comply with these conditions.

If you have any questions please contact Andrea Harvey, Senior Grants Management Specialist, by email at [email protected], or phone (202) 430-4878.

Sincerely,
Digitally signed by KATHRYN J

KATHRYN J LIPIECKI LIPIECKI
Date: 2024.10.14 17:41:00 -07'00'
Kathryn Lipiecki
Director, Mitigation Division
FEMA Region 9
Enclosures (3):

Obligation Report - Supplement 57
Record of Environmental Consideration (REC)
Standard Mitigation Grant (HMGP) Conditions

Robyn Fennig
October 15, 2024

cc: Melissa Boudrye, Resilience Branch Chief, California Governor’s Office of Emergency Services
Concepcion Chavez, Technical Assistance Division Chief, California Governor’s Office of Emergency Services
Ron Miller, Hazard Mitigation (HM) Assistance Branch Chief, California Governor’s Office of Emergency Services
Joe Purvis, HM Grants Division Chief, California Governor’s Office of Emergency Services Ryan Massello, HM Quality Assurance Division Chief, California Governor’s Office of Emergency Services
Robert McCord, Chief, Hazard Mitigation Assistance Branch, FEMA Region 9

79 -R
10/11/2024
8:05 AM
FEDERAL EMERGENCY MANAGEMENT AGENCY HMGP-OB-01

HAZARD MITIGATION GRANT PROGRAM
Obligation
Disaster
No
FEMA
Project No
Amendment
No
State
Application ID
Action
No
Supplemental
No State Recipient
4683 0 1231 1 57 CA Statewide
Subrecipient: Morro Bay
Subrecipient FIPS Code: 079-49376
Project Title : PCM: Advance Assistance- City of Morro Bay Storm Drain Assessment
Total Amount
Previously Allocated
$1,008,900.00
Total Amount
Previously Obligated
$1,008,900.00
Total Amount
Pending Obligation
$0.00
Total Amount Available
for New Obligation
$0.00
Project Amount
Subrecipient Management
Cost Amount Total Obligation IFMIS Date IFMIS Status FY 10/08/2024 Accept 2025
Comments
Date: 10/08/2024 User Id: SSCOTT39
Comment: Approved funding for HMGP 4683-1231-79R-LPN-PCM Advance Assistance-City of Morro Bay Storm Drain Assessment for $1,008,9 Federal Share and $67,044.20 Sub Recipient Management Costs Authorization
Preparer Name: STEVEN SCOTT Preparation Date: 10/08/2024 HMO Authorization Name: ANDREA HARVEY HMO Authorization Date: 10/08/2024

$1,008,900.00 $67,044.20 $1,075,944.20

09/18/2024 FEDERAL EMERGENCY MANAGEMENT AGENCY REC-01
23:39:35

RECORD OF ENVIRONMENTAL CONSIDERATION (REC)
Project HMGP-4683-0079-CA (4683-01231-0079) (1)
Title: PCM: Advance Assistance City of Morro Bay Storm Drain Assessment, NOTE: All times are GMT using a 24-hour clock. Page 1 of 4

NEPA DETERMINATION
Non Compliant Flag: No EA Draft Date: EA Final Date:

EA Public Notice Date: EA Fonsi
EIS Notice of Intent EIS ROD Date:

Level: CATEX
Comment City of Morro Bay proposes a flood mitigation Advance Assistance project to identify the most effective mitigation project to reduce flooding in the Main Street, Radcliff Avenue, Preston Lane, Errol Street, and Atascadero Road areas of Morro Bay, California (35.377939, -120.853395). The project will include conducting a Hydrologic and Hydraulic (H&H) analysis of the Morro Creek Watershed, developing a watershed management plan, and conducting an alternatives analysis. The project will also include preliminary engineering and design work for the preferred alternative as well as environmental reviews and permitting. No ground disturbing or structural activities are proposed as part of this Advance Assistance project, and none are permitted without prior notice to FEMA.

This project has been determined to be Categorically Excluded from the need to prepare either an Environmental Impact Statement or Environmental Assessment in accordance with FEMA Instruction 108-1- 1 and FEMA Directive 108-1-1 as authorized by DHS Instruction Manual 023-01-001-01, Revision 1. Categorical Exclusions A4 (information gathering, data analysis and processing, information dissemination, review, interpretation, and development of documents) and A7 (the commitment of resources, personnel, and funding to conduct audits, surveys, and data collection of a minimally intrusive nature) have been applied. Particular attention should be given to the project conditions before and during project implementation. Failure to comply with these conditions may jeopardize federal assistance including funding. - jgladsto - 09/11/2024 23:01:21 GMT

CATEX CATEGORIES
Catex Category Code Description Selected
a4 (a4) Information gathering, data analysis and processing, information dissemination, review, interpretation, and development of documents. If any of these activities result in proposals for further action, those proposals must be covered by an appropriate CATEX. Examples include but are not limited to: (a) Document mailings, publication and distribution, training and information programs, historical and cultural demonstrations, and public affairs actions. (b) Studies, reports, proposals, analyses, literature reviews; computer modeling; and non-intrusive intelligence gathering activities.

Yes
a7 (a7) The commitment of resources, personnel, and funding to conduct audits, surveys, and data collection of a minimally intrusive nature. If any of these commitments result in proposals for further action, those proposals must be covered by an appropriate CATEX. Examples include, but are not limited to: (a) Activities designed to support the improvement or upgrade management of natural resources, such as surveys for threatened and endangered species, wildlife and wildlife habitat, historic properties, and archeological sites; wetland delineations; timber stand examination; minimal water, air, waste, material and soil sampling; audits, photography, and interpretation. (b) Minimally-intrusive geological, geophysical, and geo-technical activities, including mapping and engineering surveys. (c) Conducting Facility Audits, Environmental Site Assessments and Environmental Baseline Surveys, and (d) Vulnerability, risk, and structural integrity assessments of infrastructure.

Yes

EXTRAORDINARY
Extraordinary Circumstance Code Description Selected ?
No Extraordinary Circumstances were selected

09/18/2024 FEDERAL EMERGENCY MANAGEMENT AGENCY REC-01
23:39:35

RECORD OF ENVIRONMENTAL CONSIDERATION (REC)
Project HMGP-4683-0079-CA (4683-01231-0079) (1)
Title: PCM: Advance Assistance City of Morro Bay Storm Drain Assessment, NOTE: All times are GMT using a 24-hour clock. Page 2 of 4

ENVIRONMENTAL LAW / EXECUTIVE ORDER
Environmental Law/
Executive Order Status Description Comment
Clean Air Act (CAA) Completed Project will not result in permanent air emissions - Review concluded
The scope of work associated with this project
would not cause emissions of criteria pollutants
or their precursors. Therefore, the scope of work
associated with this undertaking is exempt from
a conformity determination under the General
Conformity Rule. - jgladsto - 09/11/2024
23:07:11 GMT
Coastal Barrier Resources Act
(CBRA)
Completed Project is not on or connected to CBRA Unit
or otherwise protected area - Review
concluded
Clean Water Act (CWA) Completed Project would not affect any water of the U.S. - Review concluded
Coastal Zone Management Act
(CZMA)
Completed Project is not located in a coastal zone area and does not affect a coastal zone area -
Review concluded
Executive Order 11988 - Completed No effect on floodplain/flood levels and Project is a desktop H&H analysis with Floodplains project outside floodplain - Review concluded engineering and design work, which does not involve potential impacts to the floodplain. See
attached map. - jgladsto - 09/11/2024 23:14:06
GMT
Executive Order 11990 -
Wetlands
Completed No effects on wetlands and project outside
wetlands - Review concluded
Project is a desktop H&H analysis with
engineering and design work, which does not
involve potential impacts to wetlands. See
attached map. - jgladsto - 09/11/2024 23:18:39
GMT
Executive Order 12898 -
Environmental Justice for Low
Income and Minority Populations
Completed No Low income or minority population in,
near or affected by the project - Review
concluded
This project has been determined to have limited
or no potential to adversely affect minority or low
-income populations according to Exemption
VI.h. (planning-related activities) in Step 1 of the
EO 12898 Interim Guidance, dated September
2023. FEMA has no further EO 12898
responsibilities with regard to these activities. -
jgladsto - 09/11/2024 23:22:20 GMT
Endangered Species Act (ESA) Completed Listed species and/or designated critical habitat present in areas affected directly or
indirectly by the federal action
A No Effect Memorandum has been prepared as
it has been determined that the proposed actions
would result in No Effect to federally listed
species or designated critical habitat.

Consultation with the U.S. Fish and Wildlife
Service and/or the National Marine Fisheries
Service is not required. See attached No Effect
Memorandum. - jgladsto - 09/11/2024 23:04:02
GMT
Completed No effect to species or designated critical
habitat (See comments for justification) -
Review concluded

09/18/2024 FEDERAL EMERGENCY MANAGEMENT AGENCY REC-01
23:39:35

RECORD OF ENVIRONMENTAL CONSIDERATION (REC)
Project HMGP-4683-0079-CA (4683-01231-0079) (1)
Title: PCM: Advance Assistance City of Morro Bay Storm Drain Assessment, NOTE: All times are GMT using a 24-hour clock. Page 3 of 4 Environmental Law/
Executive Order
Farmland Protection Policy Act
(FPPA)
Status
Completed
Description Comment
Project does not affect designated prime or
unique farmland - Review concluded
Fish and Wildlife Coordination
Act (FWCA)
Completed Project does not affect, control, or modify a waterway/body of water - Review concluded
Migratory Bird Treaty Act (MBTA) Completed Project located within a flyway zone Completed Project does not have potential to take
migratory birds - Review concluded
Magnuson-Stevens Fishery
Conservation and Management
Act (MSA)
Completed Project not located in or near Essential Fish Habitat - Review concluded
National Historic Preservation Act
(NHPA)
Completed Not type of activity with potential to affect historic properties - Review concluded</br>
Pursuant to Stipulation I.A.7.f (assistance
provided for studies and planning) of the
Programmatic Agreement among the Federal
Emergency Management Agency (FEMA), the
California State Historic Preservation Officer
(SHPO), and the California Governor's Office of
Emergency Services, signed October 29, 2019,
FEMA has determined that the undertaking as
described will have no potential to affect historic
properties. Thus, the undertaking does not
require SHPO review, and FEMA has no further
Section 106 responsibilities in accordance with
36 CFR 800.3(a)(1). - jgladsto - 09/11/2024
23:03:32 GMT
Wild and Scenic Rivers Act
(WSR)
Completed Project is not along and does not affect Wild and Scenic River - Review concluded

CONDITIONS
Standard Conditions:

Any change to the approved scope of work will require re-evaluation for compliance with NEPA and other Laws and Executive Orders.

This review does not address all federal, state and local requirements. Acceptance of federal funding requires recipient to comply with all federal, state and local laws. Failure to obtain all appropriate federal, state and local environmental permits and clearances may jeopardize federal funding.

09/18/2024 FEDERAL EMERGENCY MANAGEMENT AGENCY REC-01
23:39:35

RECORD OF ENVIRONMENTAL CONSIDERATION (REC)
Project HMGP-4683-0079-CA (4683-01231-0079) (1)
Title: PCM: Advance Assistance City of Morro Bay Storm Drain Assessment, NOTE: All times are GMT using a 24-hour clock. Page 4 of 4 If ground disturbing activities occur during construction, applicant will monitor ground disturbance and if any potential archeological resources are discovered, will immediately cease construction in that area and notify the State and FEMA.

1 Standard Mitigation Grant Program (HMGP) Conditions
FEMA Region IX, August, 2018
The following list applies to Recipients and Subrecipients accepting HMGP funds from the Federal Emergency Management Agency (FEMA) of the Department of Homeland Security (DHS):

1. Applicable Federal, State, and Local Laws and Regulations. The Recipient/Subrecipient must comply with all applicable Federal, State, and Local laws and regulations, regardless of whether they are on this list or other project documents. DHS financial assistance Recipients and Subrecipients are required to follow the provisions of the State HMGP Administrative Plan, applicable Hazard Mitigation Assistance Uniform Guidance, and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards located in Title 2 of the Code of Federal Regulations (CFR) Part 200, adopted by DHS in 2 CFR 3002.

2. Financial Management Systems. The Recipient and Subrecipient must maintain financial management systems to account for and track funds, as referenced in 2 CFR 200.302.

3. Match or Cost Share. Non-federal match or cost share must comply with 2 CFR 200.306, the scope of work (SOW), and any agreements among the Subrecipient, the Recipient, and FEMA.

4. Budget Changes. Unanticipated adjustments are permitted within the approved total cost. However, if costs exceed the federal share, the Subrecipient must notify the Governor’s Authorized Representative (GAR) of overruns before implementation. The GAR shall submit a written request for approval to FEMA Region IX. The subaward must continue to meet HMGP requirements, including cost effectiveness and cost share. Refer to 2 CFR 200.308 for additional information.

5. Real Property and Land. The acquisition, use, and disposition must comply with 2 CFR 200.311.

6. Equipment. The acquisition, use, and disposition must comply with 2 CFR 200.313.

7. Supplies. Upon project completion, FEMA must be compensated for unused supplies, exceeding $5,000 (fair market value), and not needed for other federal programs. Refer to 2 CFR 200.314.

8. Procurement. Procurement procedures must be in conformance with 2 CFR 200.318-320.

9. Monitoring and Reporting Program Performance. The Recipient and Subrecipient must submit quarterly progress reports, as referenced in the 2 CFR 200.328 and State HMGP Administrative Plan.

10. Records Retention. In accordance with 2 CFR 200.333, financial/ programmatic records related to expenditures must be maintained at least 3 years after the date of Recipient’s final expenditure report.

11. Enforcement and Termination. If the Recipient or Subrecipient fails to comply with the award or subaward terms, whether stated in a Federal statute or regulation, the State HMGP Administrative Plan, subpplication, a notice of award, an assurance, or elsewhere, FEMA may take one or more of the actions outlined in 2 CFR 200.338, including termination or partial termination of the award or subaward outlined in 2 CFR 200.339.

12. Allowable Costs. Funds are to be used for allowable costs in compliance with 2 CFR 200.403, the approved SOW, and any agreements among the Subrecipient, Recipient, and FEMA.

2 13. Non-Federal Audit. The Recipient and Subrecipient are responsible for obtaining audits in accordance with the Single Audit Act of 1984, in compliance with 2 CFR 200.501.

14. Debarred and Suspended Parties. Recipients and Subrecipients are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, and 2 CFR 180. These regulations restrict federal financial assistance awards, subawards, and contracts with parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in the federal assistance programs or activities.

15. Equipment Rates. Rates claimed for use of Subrecipient-owned equipment in excess of the FEMAapproved rates must be approved under State guidelines issued by the State Comptroller's Office or must be certified by the Recipient to include only those costs attributable to equipment usage less any fixed overhead and/or profit.

16. Duplication of Funding between Public Assistance (PA) and HMGP. Funding for PA Section 406 and HMGP Section 404 are permitted on the same facility/location, but the activities identified under each program must be distinct with separately accounted funds. At closeout, FEMA may adjust the funding to ensure the Subrecipient was reimbursed for eligible work from only one funding source.

17. Historic Properties and Cultural Resources. In compliance with 2 CFR 800, if a potential historic property or cultural resource is discovered during construction, the Subrecipient must cease work in the area and take all reasonable measures to avoid or minimize harm to the discovered property/resource. During construction, the Subrecipient will monitor ground disturbance activity, and if any potential archeological resources are discovered, will immediately cease work in that area, and notify the Recipient and FEMA. Construction in the area may resume with FEMA’s written approval after FEMA’s consultation, if applicable, with the State Historic Preservation Officer (SHPO).

18. NEPA and Changes to the Scope of Work (SOW). To comply with the National Environmental Policy Act (NEPA), and other Laws and Executive Orders, any change to the approved SOW shall be re-evaluated before implementation. Construction associated with a SOW change, prior to FEMA approval, may be ineligible for funding. Acceptance of federal funding requires environmental permits and clearances in compliance with all appropriate federal, state and local laws, and failure to comply may jeopardize funding.

Within their authority, the Recipient and Subrecipient must use of all practicable means, consistent with other essential policies, to create and maintain productive harmony for people and nature, and fulfill the social, economic, and other needs of present and future generations of Americans.

Prepared By: ___NS, ME_____ Dept Review: _GK___
City Manager Review: __AL__ City Attorney Review: _BS__ Staff Report
TO: Honorable Mayor and City Council DATE: January 8, 2026 FROM: Nate Stong, PE, City Engineer
Matt Evers, Utilities Project Manager
SUBJECT: Notice of Completion for the Brackish Water Reverse Osmosis Facility Re-skin and Re-roofing Project (Project No. MB2024-UT09)

RECOMMENDED ACTION

1. Accept the work as performed by Newton Construction & Management, Inc; and

2. Authorize the City Engineer to execute and record a Notice of Completion for the project.

BACKGROUND
On April 8, 2025, City Council awarded the contract for the Brackish Water Reverse Osmosis (BWRO) Facility Re-skin and Re-roofing Project to Newton Construction & Management, Inc., in the amount of $322,786.20, which included a 10% contingency. The Work commenced on June 30, 2025, and was completed on December 29, 2025.

The project consisted of installing a new membrane roof over the existing metal roof, replacing portions of the metal siding and finally treating and repainting the exterior.

Council approval is now requested to accept the work and authorize staff to file a Notice of Completion for the Project.

DISCUSSION
The work was substantially completed between June 30, 2025, and August 31, 2025, with minor punch list items remaining. On December 9, 2025, City Council authorized contract term extension to Newton for final punch list item completion. No change orders were issued for the project. The final punch list items were addressed and this project was completed and accepted by City Staff on December 29, 2025.

Final cost for construction was $293,442.11.

ATTACHMENTS

1. Notice of Completion
AGENDA NO: 6.d
MEETING DATE: January 13, 2026

When recorded mail to:

City of Morro Bay – City Engineer
595 Harbor Street
Morro Bay, CA 93442-1957

NOTICE OF COMPLETION

CITY OF MORRO BAY
595 Harbor Street
MORRO BAY, CA 93442
TEL: (805) 772-6261
No recording fee per Government Code 27383 and 6103.

1. Contract No: 2024_UT09 – BWRO Reskin
Dated: March 10, 2025

2. Contractor: Newton Construction & Management, Inc.

P.O. Box 3260
San Luis Obispo, CA 93403

3. Location and Description of Work:

Location – 170 Atascadero Road, Morro Bay, CA
Description – This project consisted of installing a new thermoplastic polyolefin membrane roof over the existing metal roof, replacing portions of the metal siding and treating and repainting the exterior.

4. Commenced Work On: 06/30/2025
Contract Completed On: 12/29/2025
Total Days: 122 Working Days
Contract Days Allowed: -- Working Days

5. That the interest or estate stated in Item 4 herein is owned by the City of Morro Bay.

6. Final Amount: $ 293,442.11
Signed: _____________________________________
Nate Stong, PE, City Engineer

The undersigned hereby deposes and says:

That she is the City Clerk of the City of Morro Bay, County of San Luis Obispo, California; that she has read the foregoing Notice and knows the contents thereof and that the same is true of her own knowledge.

I declare the foregoing to be true under penalty of perjury.

Executed at Morro Bay, California, this _________ day of _________________, 20___ _________________________________________
Dana Swanson, City Clerk

Prepared By: __DM________ Dept Review: ___DM_____
City Manager Review: ___AL______ City Attorney Review: BS______ Staff Report
TO: Honorable Mayor and City Council DATE: January 13, 2026 FROM: Daniel McCrain, Fire Chief
SUBJECT: Facility Use Agreement between the San Luis Obispo County Office of Emergency Services and the City of Morro Bay for use of the Morro Bay Community Center located at 1001 Kennedy Way, Morro Bay, California 93442 as an Emergency Disaster Shelter

RECOMMENDED ACTION
Authorize City staff to sign the facility use agreement.

ALTERNATIVES

1. Take no action.

2. Provide alternate direction.

FISCAL IMPACT
No fiscal impact identified.

BACKGROUND/DISCUSSION
Pursuant to the California Emergency Services Act (Gov. Code, § 8550 et seq.), the County of San Luis Obispo is responsible for providing emergency services to protect the safety and welfare of county residents during a state of emergency proclaimed by the Governor of the State of California or a local emergency proclaimed by the County Emergency Services Director or the Board of Supervisors or during other times of need and /or emergencies. This function is coordinated by the County Office of Emergency Services (OES). The County OES has requested to establish a facility use agreement for the Morro Bay Community Center to be designated as a disaster shelter. The County will use the Facilities to provide shelter for impacted residents of the emergency on an as needed basis. The County will provide the required staffing, food, transportation, and supplies for displaced individuals requiring use of the shelter. This agreement is not for the purpose of a warming or cooling shelter, only for a temporary shelter in the event of a disaster or local emergency. The community center was utilized for an emergency evacuation shelter during the 2023 flooding events without support of the County. City staff coordinated staffing of the facility and provided supplies until County OES was able to deliver a supply trailer. Having this agreement in place will streamline this process and help ensure adequate liability protection for both parties.

AGENDA NO: 6.e
MEETING DATE: January 13, 2026

ATTACHMENT(S)

1. Facility use agreement for Morro Bay Community Center

STATEMENT OF AGREEMENT FOR FACILITY USE AS A MASS CARE SHELTER This agreement (“the Agreement”) is effective upon final signature of all parties (“the effective date”) and is made and entered into between the City of Morro Bay (“the Owner”) and the County of San Luis Obispo, a political subdivision of the State of California (“the County”), hereafter referred to individually as “Party” and collectively as "the Parties."

RECITALS
WHEREAS, pursuant to the California Emergency Services Act (Gov. Code, § 8550 et seq.), the County is responsible for providing emergency services to protect the safety and welfare of county residents during a state of emergency proclaimed by the Governor of the State of California or a local emergency proclaimed by the County Emergency Services Director or the Board of Supervisors or during other times of need / emergency, and WHEREAS, the County has a need for buildings or other facilities that may be used as disaster shelters / centers; and
WHEREAS, the Owner holds the title to the real property located at 1001 Kennedy Way, Morro Bay, CA 93442, which includes the Morro Bay Community Center, hereafter referred to as “Facilities”; and
WHEREAS, the Owner desires to assist the County by allowing the use of its Facilities as a disaster shelter/center during an emergency; and
WHEREAS, the Owner agrees that after meeting its responsibilities to its members/clients or other third-parties as required, it will permit, to the extent of its ability and upon request from the County, the use of its physical facilities by the County as a mass care shelter/center; and
WHEREAS, the County agrees that it shall use reasonable care in the conduct of activities in the facility and will provide proof of insurance and indemnification; and WHEREAS, the County and the Owner desire to enter into this Agreement to set forth the terms and conditions for the use of the Facilities as a temporary shelter; NOW, THEREFORE, for good and valuable consideration, the County and The Owner hereby agree as follows:

TERMS AND CONDITIONS

1. Term and Termination. This Agreement will become effective as of the Effective Date and will continue in effect until terminated. Either party may terminate this Agreement upon 15 days advance written notice to the other party. In the event that the Owner elects to terminate this Agreement, those individuals who are presently sheltering in the Owner’s facilities will be able to stay in the Facilities for 7 days following notice of termination subject to the terms and conditions hereof.

2 2. Facility Use. The County may use the Facilities to provide shelter for impacted residents of the emergency on an as needed basis subject to the maximum occupancy and under the following conditions:
a. The County will provide, if necessary, all transport services to and from the Facilities for the individuals.
b. The County will provide, if necessary, each individual who is temporarily staying at the Facilities with meals three times a day. The Owner is not required to provide any meals or other extraordinary services.
c. The County will provide, if necessary, each individual with a toiletry kit prior to their lodging at the Facilities.
d. The County will provide an onsite manager for the Facilities. The manager shall be responsible for coordinating check-in, check-outs, tracking individuals’ length of stay, reconciling records with the Owner, coordinating any needed assistance for the individuals, and coordinating all other duties reasonably necessary to implement the terms of this Agreement.
e. The County will be responsible for any damage, destruction or extraordinary cleaning services to Facilities due to the conduct of any individual; and will provide security as required.
f. The County will be provided keys or be provided access to the Facilities by the Owner at the time use is granted by the Owner.
g. The Facilities are provided by Owner “as is” for use as an emergency shelter and County agrees to accept the Facilities (i) in their then-existing condition, including all patent and latent defects and subject to all applicable laws, ordinances and regulations affecting the use of the Facilities in general and as an emergency shelter, and (ii) without any warranties or representations from Owner, including, but not limited to, any warranties or representations regarding the fitness of the Facilities for use as an emergency shelter.

3. Disclaimer and Release. Prior to any individual staying at the Facilities, the County will have the individual sign a disclaimer and release substantially in the form set forth in the Facility Use Release Agreement, attached as Exhibit A and incorporated herein by reference.

4. Independent Contractor. The Owner is an independent contractor of the County and nothing in this Agreement creates an employer/employee relationship between the County and The Owner, and their respective officials and employees.

5. Insurance. Owner and County recognize each have sufficient self-insurance and excess insurance coverage for the purposes of this Agreement. County insurance coverage shall be primary and without the right of contribution from any self-insurance or insurance maintained by Owner for claims and damage assumed by County in this Agreement.

3 6. Indemnity. Each Party shall indemnify and hold the other harmless from and against any and all claims, demands, actions, rights of action, damages, costs and expenses which may arise by virtue of anything done or omitted to be done by the indemnifying Party (or through or by its Agents). The indemnifying Party shall be notified promptly of the existence of the claims, demands, actions or rights of action and shall be given reasonable opportunity to defend same. The Party to be indemnified shall cooperate in any defense brought or asserted by the indemnifying Party. It is the intention of the parties that this section be interpreted to impose on each party responsibility to the other for the acts and omissions of their respective officers, directors, agents, employees, volunteers and subcontractors. It is also the intention of the parties that, where applicable, principles of comparative fault will be followed and each party shall bear the proportionate cost of any damage attributable to the fault of that party, its officers, directors, agents, employees, volunteers or subcontractors.

7. Notices. Any notice required or permitted to be given under this Agreement shall be addressed as follows:

The County:

Office of Emergency Services
County of San Luis Obispo
1055 Monterey Street, D430
San Luis Obispo, CA 93408
The Owner:

City of Morro Bay
595 Harbor St.,
Morro Bay, CA 93442

8. Cooperation. Each party will work with the other in the implementation of this Agreement. (END OF TERMS; SIGNATURE PAGE FOLLOWS)

4 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date hereinabove set forth.

COUNTY OF SAN LUIS OBISPO
By: ________________________________
Director, Emergency Services
Date: _______________________________

APPROVED AS TO FORM AND LEGAL
EFFECT:

JON ANSOLABEHERE
County Counsel
Deputy County Counsel
Dated: November 25, 2025

CITY OF MORRO BAY
By: _______________________________
Title
_________________________________
Print Name
Date: ____________________________

Prepared By: _GK____ Department Review: __GK__

City Manager Review:___AL____ City Attorney Review: ___BS___ Staff Report
TO: Honorable Mayor and City Council DATE: January 6, 2026 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 consistent with previous similar easements. 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 AGENDA NO: 6.f
MEETING DATE: January 13, 2026

each regularly scheduled meeting and confirm there is a need to continue the emergency action by 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: ___CM Dept Review: __ _
City Manager Review: ___AL_____ City Attorney Review: __BS____ Staff Report
TO: Honorable Mayor and City Council DATE: January 6, 2026 FROM: Chris Munson, Harbor Vitality Director
Lori Thompson, Harbor Business Manager
SUBJECT: Approve Tognazzini’s Dockside & Dockside Too Lease Agreement

RECOMMENDED ACTION
Adopt Resolution No. 02-26 approving new lease agreement for Tognazzini’s Dockside & Dockside Too located at 1245 and 1235 Embarcadero.

ALTERNATIVES
The City Council can elect not to approve the lease agreements.

FISCAL IMPACT
In FY 2024/25, Dockside provided $24,201.92 in minimum rent and Dockside Too provided $27,227.16 in minimum rent. Including percentage rent, the two restaurants combined have generated the most revenue to the Harbor Fund of all tidelands lease sites in recent years. In accordance with the Lease Management Policy, minimum rents will be adjusted through appraisals in the new lease agreement. Future percentage rent payments will depend on business revenues.

The proposed new lease terms will provide $45,000 up front toward the construction of the Harborwalk or public restroom improvements. The City's general fund will also benefit from continued sales tax revenue.

BACKGROUND
Dockside and Dockside Too are owned and operated by Mark Tognazzi. He has operated the business since 2004 and is considered to be in good standing. Mr. Tognazzini has met the requirement of informing the Harbor with a five-year notice of an intention to renegotiate his master lease. Both restaurants have a strong following of locals and tourists. Due to Measure D, the current use as a restaurant is "grandfathered.”
The existing lease terms include a requirement for the leaseholder to provide $15,000 toward Harborwalk improvements once a project is initiated. Since the project has not been initiated, $15,000 was not collected.

Both lease sites have been successful and have contributed significant revenue to the Harbor Fund and to the City’s general fund through sales tax.

DISCUSSION
AGENDA NO: 6.g
MEETING DATE: January 13, 2026

Since the lease sites are in the Measure D area, which limits expansion and further development of non-commercial fishing-related uses, leaseholders within this area are restricted on what they can propose to obtain long-term lease extensions.

The existing lease agreements for both sites were drafted with the original 2003 Harbor Lease Management Policy and at a time when a new leaseholder was desperately sought. A major difference, from almost all lease agreements within the tidelands, was that it excluded the responsibility for maintenance and repair of the wharf and revetment under the lease site. In accordance with the City’s current Harbor Lease Management Policy, the leaseholder has agreed to take on this responsibility and has committed to pay up to $300,000 towards the quoted repairs. The leaseholder will also be responsible for the fire suppression system maintenance and monitoring associated with the lease site. The neighboring seawall in the City right-of-way, which is outside of the lease site boundary, is excluded from these conditions.

The leaseholder has also proposed cosmetic interior and exterior improvements at both lease sites which will exceed $100,000 over the next several years. The owner would like to maintain the look and feel of the restaurants which attract his customers, while remaining compliant with Measure D.

Lease sites are often required to provide public restrooms. During negotiations, the leaseholder tried to accommodate this request by proposing to install a side door to the existing restroom at Dockside Too for public use. However, after further investigation, the cost and insurance requirements were prohibitive. They will instead install signage at Dockside Too to notify the availability of a public restroom in the Dockside restaurant next door and provide $45,000 which can be used towards rebuilding the public restrooms at the North T-Pier, or the completion of the Harborwalk. Although the leaseholder originally asked for some time to pay the $45,000, Mr. Tognazzini has already produced a check in the full amount.

The leases were previously under two separate lease agreements. Since the conditions regarding the funding of the Harborwalk/restrooms and optional extension affect both, the two leases are now being merged into one lease agreement.

Outdoor Seating and Pier Use:

The leaseholder has added seating within and outside of the lease sites during the current term. A small portion of the North T-Pier has been used for storing and loading totes for the commercial fishing side of the business. These uses were allowed on a temporary basis (i.e. COVID) or administratively but were not amended to the lease. The leaseholder seeks to continue their use.

Overview of Outdoor Seating and Pier Use
Area 1 – Dockside Outdoor Seating
Likely added during COVID-19, this seating is within the lease site boundaries.

Area 2 – Dockside Too Hoist Area Seating
This area is within the lease site; however, it was intended for commercial fishing hoist use per the existing lease language. The lease holder received permission from the City to use the area for seating as long as there were no obstructions and customers were not present during unloading or when activities around it pose a safety risk. However, the lease agreement was not updated to reflect this.

Area 3 – Dockside Too Alleyway Seating
Seating was added and allowed during COVID. It protrudes into the City’s right-of-way and outside of the lease boundaries.

Area 4 – North T-Pier Use
The leaseholder received permission to use the North T-Pier for storage purposes, but the lease agreement was not updated accordingly.

TERMS
Term Length: Additional 20 years, automatically extending to 30 years if conditions met.

The existing lease expires on June 30, 2028. The new lease will extend the term 20 years; expiring on June 30, 2048.

During the last five years of the term, if the leaseholder provides the City a survey and proposed repair plan addressing the pier, wharf, and any other work necessary to maintain the service life of

the wharf; and completes such repairs prior to termination, the leaseholder shall be granted an automatic 10-year extension of the term. With this extension, the term will expire on June 30, 2058.

Rent: Maintaining Base Rent and Percentage Rent Structure The lease site minimum rent will be set at the amounts below and adjusted annually by CPI. In addition, the new annual minimum rent for the five-year period commencing on each appraisal adjustment date shall be the greater amount of seventy-five percent of the average total yearly rent payable during the previous five-year period or eight percent of the fair market value of the Premises.

In addition to the annual minimum rent, the tenant agrees to continue to pay to City the additional percentage of Dockside and Dockside Too’s gross sales for the use and occupancy of the Premises, less the amount of the Minimum Rent paid for the FY reporting period.

MINIMUM RENT & PERCENTAGE GROSS
Dockside Dockside Too
Minimum Rent $25,000 $28,125
Food & Beverage 3% 5%
Retail Sales 5% 5%
All Other Uses 5% 5%
Payments toward Harborwalk / Restrooms: $45,000
The leaseholder has issued a check for $45,000 up front, these funds can be used toward the HarborWalk and/or North T-Pier restrooms. Leaseholder will install signage on the Dockside restaurant indicating the availability of public restrooms.

Wharf and Revetment Maintenance Responsibility
The leaseholder has agreed to take on this responsibility and has committed to pay up to $300,000 towards the quoted repairs. The leaseholder will be responsible for the fire suppression system maintenance and monitoring associated with the lease site. The neighboring seawall in the City rightof-way, which is outside of the lease site, is excluded from this condition.

Improvements: $100,000
The leaseholder is to complete $100,000 in cosmetic interior and exterior improvements between both lease sites within 5 years.

Seating and Pier Use
Harbor staff recommends the following:

Area Description Requirements Agreement Type
Area 1 Dockside Outdoor Install 3" Bollards Master Lease Agreement Area 2
Dockside Too Hoist
Area Conditional Master Lease Agreement
Area 3 Dockside Too Alleyway Install 3" Bollards Encroachment Permit

Area 4 North T-Pier Use Maintain Clearance License Agreement Use of areas 1-3 for revenue generating purposes will incur the same percentage gross per the lease agreement.

Seating outside of the lease footprint (Area 3) will require a separate revocable encroachment permit.

The use of the T-Pier (Area 4) for storage purposes will be addressed as a separate license agreement and will be charged a prorated square footage rate based on the established City boat storage rate and include conditions to maintain access.

Areas 1 and 3 which are next to the alley will require the leaseholder to install bollards.

Updated Lease Language
Penalties for delinquent maintenance and repairs. After 15 days of written notice, tenant needs to address the issue or provide a game plan. If we don’t receive either, a penalty of $100/day is issued.

The penalty ramps up every 60 days until default at 180 days. Other standard lease provisions were updated to be consistent with the Harbor Lease Management Policy.

CONCLUSION
The leaseholder has accepted the City’s terms after negotiations. They are motivated to continue doing business in Morro Bay and carry out the improvements.

ATTACHMENTS

1. Resolution No. 02-25 Approving the Lease Agreement for Tognazzini’s Dockside & Dockside Too

2. Lease Agreement for Tognazzini’s Dockside & Dockside Too

RESOLUTION NO. 02-26

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING A 22-YEAR MASTER LEASE AGREEMENT FOR
LEASE SITES 132W-133W AND 134-136 BETWEEN THE
CITY OF MORRO BAY AND TOGNAZZINI’S RESTAURANT, INC.,
LOCATED AT 1235 AND 1245 EMBARCADERO

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro Bay Waterfront described as City Tidelands leases and properties; and WHEREAS, Tognazzini’s Restaurant, Inc. (“Tenants”) have been the lessee of Lease Site 132W-133W and 134-136 since 2004, and are tenants in good standing; and WHEREAS, Tenants wish to continue the operation of both Tognazzini’s Restaurant and the next-door Dockside Too takeout facility and undertake exterior improvements, and,
WHEREAS, Tenants agree to contribute an estimated Three Hundred Dollars ($300,000) in wharf repairs to lease site 132W-133W, and; WHEREAS, Tenants agree to contribute a total of Forty-Five Thousand Dollars ($45,000) to the City, to be applied toward Harbor capital improvement fund for the HarborWalk or North T-Pier public restroom improvements; and; WHEREAS, in accordance with the City’s Master Lease Policy, the City and Tenants have agreed to a new 22-year lease agreement for Lease Sites 132W-133W and 134-136 located at 1235 and 1245 Embarcadero.

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

1. The attached new Master Lease Agreement for Lease Sites 132W-133W & 134-136 is hereby approved.

2. The Mayor is hereby authorized to execute said Master Lease Agreement.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of January 2026 with the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
______________________________
Carla Wixom, Mayor
ATTEST:

Dana Swanson, City Clerk

City of Morro Bay -Tog 2026
01181.0024/656492.1 JWP

L E A S E
This LEASE is made and entered into by and between the CITY OF MORRO BAY, a municipal corporation of the State of California herein called CITY, and Tognazzini’s Restaurant Inc., a California corporation, herein called TENANT. (CITY and TENANT, at times, are referred to herein individually as Party and collectively as Parties)

WITNESSETH
WHEREAS, the State of California granted certain tide and submerged lands located within the CITY limits of CITY to the County of San Luis Obispo and to its successors, being Chapter 1076, Statutes of 1947, as amended by Chapter 413, Statutes of 1955, Chapter 1874, Statutes of 1957, and Chapter 70, Statutes of 1960, first extraordinary session; which Statutes may be amended from time to time by the Legislature of the State of California; all of which Statutes are expressly recognized and agreed to be in full force and effect by the Parties; and WHEREAS, the Parties hereto recognize and agree, on July 17, 1964, CITY succeeded to all of the right, title and interest of the County of San Luis Obispo in and to all of the tide and submerged lands conveyed to said County by the State of California pursuant to the above mentioned acts; and
WHEREAS, judgment has been entered on October 14, 1968, in the case of City of Morro Bay, Plaintiff, versus County of San Luis Obispo, and State of California, Defendants, by the Superior Court of the State of California in and for the County of San Luis Obispo, #30417, adjudging and decreeing, among other things, the title to said tide and submerged lands so conveyed by the State of California to the County of San Luis Obispo in trust, as set forth above, passed automatically to CITY upon the date of its incorporation as a city on the 17th day of July, 1964; and
WHEREAS, TENANT accepts the within Lease with full knowledge there is no warranty of title in and to the within described premises by CITY to TENANT; and WHEREAS, in order to develop and improve Morro Bay Harbor and to assist in carrying out the provisions of the tideland grant as aforesaid, and in order to provide facilities for the accommodation of those using Morro Bay Harbor, CITY desires to lease to TENANT the within described property upon the terms and conditions set forth herein.

City of Morro Bay- Tog 2026
01181.0024/656492.1 JWP -2-
NOW, THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TENANT, and TENANT leases from CITY, all of the following premises (herein collectively referred to as the "Premises") in the CITY of Morro Bay, County of San Luis Obispo, State of California, described as follows:

Lease Sites 132W-133W & 134-136
This Premises is delineated on Parcel Map of the CITY of Morro Bay Resolution No. 77- 74, document entitled “Lease Sites Map” dated November 1974, consisting of Thirteen (13) sheets and designated as the official reference document for said Tideland Trust lease sites, adopted on December 9, 1974, by the CITY Council of Morro Bay, San Luis Obispo County, California. A copy of one (1) sheet is attached hereto as Exhibit A and made a part hereof by reference.

Article 1 FIXED TERM
Section 1.01 Term.

The term of this Lease is a period of 22 years and 5 months, commencing February 1, 2026 (the "Commencement Date"). The term of this Lease will terminate without notice on June 30, 2048, unless sooner terminated as herein provided.

Section 1.02 Extensions.

TENANT may extend the Lease for one (1) additional ten-year term, contingent upon completion of any future repairs required under the terms of this Lease. Between the fifteenth (15th) and twentieth (20th) year following the Commencement Date, TENANT shall provide the CITY with a survey and proposed repair plan addressing the pier, wharf, and any other work necessary to maintain the service life of the wharf at Lease Sites 132W-133W and shall complete such repairs prior to lease termination. TENANT shall give the CITY written notice of its intent to exercise this Option to Extend no less than eighteen (18) months prior to Lease expiration, and CITY approval of the TENANT’s plan must be obtained prior to Lease expiration.

TENANTS’s exercise of the option to extend shall be further contingent upon TENANT not being in default under any term or condition of the Lease at the time of TENANT’s exercise of the option and the time of commencement of the option. Time is of the essence.

Section 1.03 Hold Over.

If TENANT holds the Premises after the expiration of the term of this Lease with the consent of the CITY, express or implied, then such holding over (in the absence of a

City of Morro Bay- Tog 2026
01181.0024/656492.1 JWP -3-
written agreement between CITY and TENANT with respect thereto) will be deemed to create a tenancy from month-to-month, terminable on 30-days’ written notice from either Party to the other, at a monthly rental equal to two hundred percent (200%) of the average total Rent per month for the twelve (12) months immediately preceding the expiration of this Lease, and otherwise subject to each and every term, covenant and condition of this Lease.

Section 1.04 Replacement.

Subject to the next paragraph, as of the Commencement Date, this Lease will extinguish and replace every prior lease between CITY and TENANT respecting the Premises, if any. Any right or interest held by the TENANT pursuant to any existing lease with respect to the Premises, which is not granted pursuant to this Lease, will be extinguished as of the Commencement Date of this Lease.
(Note: the following paragraph to be included only if the lease is associated with a development/redevelopment project on the site)
If on or before ___________, 20__, TENANT does not provide satisfactory evidence, as approved by CITY’S Harbor Director and City Attorney, TENANT has obtained all the financing necessary to commence and complete the Project (as defined in Section 13.__), then (i) this Lease will automatically terminate, without any notice to TENANT, and be of no force and effect and (ii) the lease between CITY and TENANT for the Premises that was in effect prior to this Lease, if any, will be automatically reinstituted and remain in full force and effect subject to all of that lease’s terms and conditions.

Article 2 RENT
Section 2.01 Annual Minimum Rent.

TENANT agrees to pay to CITY a minimum guaranteed annual rental for the use and occupancy of each of the Lease Sites, as described below (the “Minimum Rent”):

A. For Lease Sites 132W-133W, an initial total amount of $28,125.55 per year, payable in advance and at the option of TENANT either in equal semiannual installments or equal monthly installments.

B. For Lease Site 134-136, an initial amount of $25,000.49 per year, payable in advance and at the option of TENANT either in equal semiannual installments or equal monthly installments.

City of Morro Bay- Tog 2026
01181.0024/656492.1 JWP -4-
If Minimum Rent is paid in equal semiannual installments, then such installments must be on January 1 and July 1 each year during the term of the Lease. If the Commencement Date is other than January 1 or July 1, then TENANT must pay, on the Commencement Date, the proportionate amount of the Minimum Rent payable for the period from the Commencement Date until the next payment date of January 1 or July 1, as the case may be. If the term of the Lease expires on a date other than December 31 or June 30, then TENANT'S final installment of Minimum Rent must be proportionate to the time remaining in the term. If paid in equal monthly installments, then each monthly installment must be paid no later than the tenth day of each applicable month. All Rent, including the Minimum Rent and the Percentage Rent, must be paid in lawful money of the United States of America, without offset or deduction and must be paid to CITY at the Harbor Department located at 1275 Embarcadero, Morro Bay, California, or at such other place or places CITY may from time to time designate by written notice delivered to TENANT.

Section 2.02 CPI Adjustment to Annual Minimum Rent.
(1) The Parties agree, as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), except as outlined in section 2.03 hereof, the annual Minimum Rent will be adjusted in direct proportion to any upward or downward movement in the Consumer Price Index for January 1, 2025, which is hereby agreed to be 337.508 (Base Index). The percentage adjustment for any given year will be based on the monthly average Index for the calendar year immediately preceding the CPI Adjustment Date as compared with the Base Index. The Consumer Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los Angeles – Long Beach – Anaheim, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (the "Index") (2) The Annual Minimum Rent will be adjusted as of each CPI Adjustment Date, and will remain in effect as adjusted until the next CPI Adjustment Date. As an illustration only, if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.6, then the percentage increase is equal to 3.31%. Therefore, the Minimum Rent would be increased by 3.31% as of July 1, 2001, and would continue at that rate through June 30, 2002. (3) If the United States Department of Labor, Bureau of Labor Statistics, ceases to compile and make public the Index as now constituted and issued, but substitutes another index in its place, then said substituted index must be used for the purpose of adjusting the Minimum Rent for the Premises. If the Index is changed so the base year differs from that in effect on the Lease Commencement Date, then the Index must be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics.