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MBT transit revenues for FY 2023-24 are shown in Table 15, including operating and non-operating revenues for Fiscal Years 2023-24. As shown, a majority (96.5 percent) of their operating revenue comes from Local Transportation Funds (LTF).
MBT COST MODEL
The FY 2023-24 actual expenditures and service quantities form the basis for a better understanding of the systemwide performance for that year of operations. As detailed in Table 16, each expense is assigned to one of three cost allocation factors—revenue vehicle hours, revenue vehicle miles, or fixed costs—based on what most directly drives that expense. For instance, fuel costs are tied to the number of vehicle miles operated, while costs such as marketing, utilities, and management are considered fixed, as they do not fluctuate significantly with service levels. Contractor costs are allocated according to the terms outlined in the contract fee schedule.
By summing costs under each allocation factor and dividing by the relevant annual service quantities, the cost model for FY 2023-24 is calculated as follows:
Operating Cost = $66.91 × Revenue Vehicle Hours + $0.98 × Revenue Vehicle Miles + $78,948 (Fixed Costs).
The first two components of this formula represent marginal costs, which vary based on the operation of specific routes or services. It’s important to note that this model does not include capital costs, such as vehicle replacement.
Table 15: Morro Bay Transit Revenues
MBT Revenues FY 2023-24 Actuals
Fixed Route/Call-A-Ride
LTF Transit $345,850
DAR STA $69,971
LTF Misc. Tran Allocation -$151,908
Van Farebox Receipts $11,482
Programmed Use of Fund Balance -$119,438
Interfund Transfer $119,438
Fixed Route Total $275,394
Trolley
LTF Transit $42,745
Van Farebox Receipts $3,980
Other Rev/Current Services $0
Rental Income $599
Programmed Use of Fund Balance $35,573
Trolley Total $82,897
Total Combined Revenues $358,291
Source: City of Morro Bay Budget Performance Reports, FY 2023-24 and Midyear FY 24-25
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MBT PERFORMANCE MEASURES
The FY 2023-24 cost model was applied to operations data from that same fiscal year to calculate standard performance metrics such as passenger-trips per hour and subsidy per passenger-trip. This analysis helps for comparison in the analysis of future MBT service alternatives. The service parameters and performance analysis are summarized in Table 17.
Table 16: Morro Bay Transit - FY 2023-24 Cost Model
Expense Category Hour Mile Fixed
Fixed Route Transit
Fuel Oil & Lubricants $28,052
Machinery/Equip/Supplies $4,141
Legal Services - General
Contractural Services (MV) $208,845
Vehicle Inspections $100
Telephone $442
Vehicle Insurance $1,641
Membership $1,109
Cap Asset Depreciation
Interfund Transfers $76,441
Fixed Route Total $208,845 $33,834 $78,092
Trolley
Fuel Oil & Lubricants $3,294
Machinery/Equip/Supplies $856
Contractional Services $33,370
Vehicle Inspections
Trolley Total $33,370 $3,294 $856
Total Combined Expenses $242,215 $37,128 $78,948
FY 23/24 Total
Vehicle Service
Hours
Vehicle Service
Miles
Fixed Route/Call-A-Ride 3,092 31,004 --
Trolley 528 6,755 --
Total Combined Service Hours/Miles 3,620 37,759 --
Cost Per Unit by Variable
Vehicle Service
Hours
Vehicle Service
Miles Fixed Costs
Fixed Route/Call-A-Ride $67.54 $1.09 $78,092
Trolley $63.17 $0.49 $856
Total Annual Service $66.91 $0.98 $78,948
Source: City of Morro Bay Budget Performance Reports, FY 2023-24.
Note 3: Expense does not include Capital Asset Depreciation.
Variable
Note 2: Annual service quantities based on FY 2023-24.
Note 1: Total costs are based on actual values for FY 2023-24.
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Fixed-Route/Call-A-Ride Performance Indicators
Based on FY 2023-24 service quantities and the cost model, a number of performance indicators were evaluated for the Fixed-Route/Call-A-Ride service, as shown in Table 17 and presented below in Figures 15 through 20.
• Passenger Trips per Service Hour – This metric is a key indicator of transit productivity. In FY 2023-24, systemwide passenger-trips per service hour averaged 4.2. The combined FixedRoute/Call-A-Ride services averaged 3.7 passenger-trips per service hour (Figure 15). While relatively low for a fixed-route service, this figure is typical for systems serving smaller, transitdependent populations and is considered strong for fixed-route deviation service like Call-ARide. The Trolley service, which operates seasonally from June through early October on weekends only, achieved a notably higher productivity of 7.1 passenger-trips per hour, underscoring its popularity during peak visitor months.
Table 17: Morro Bay Transit - FY 2023-24 Service Parameters and Performance Routes
PassengerTrips
Fixed Routes/Call-A-Ride 11,485 3,092 31,004 $320,771 $242,679 $11,482 Trolley 3,774 528 6,755 $37,520 $36,664 $3,980
Morro Bay Transit Total 15,259 3,620 37,759 $358,291 $279,343 $15,462 Hour Mile
Fixed Routes/Call-A-Ride 3.7 0.37 $27.93 $26.93 $103.74 3.6% Trolley 7.1 0.56 $9.94 $8.89 $71.03 10.6%
Morro Bay Transit Total 4.2 0.40 $23.48 $22.47 $98.97 4.3% Sources: MBT, LSC
Service Parameters
Passengers per… Total
Operating
Cost per
PassengerTrip
Total
Operating
Subsidy per
PassengerTrip
Note 2: Farebox calculations do not represent official calculations for TDA eligibility.
Service
Hours
Service
Miles
Marginal
Operating
Cost 1
Fare
Revenue
Fully
Allocated
Operating
Cost
Total
Operating
Cost per
Service
Hour
Farebox
Ratio 2
Note 1: Marginal operating costs do not include fixed costs.
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• Passenger-Trips per Service Mile – Systemwide averaged 0.40 passenger-trips per mile. The Fixed-Route/Call-A-Ride services provided 0.37 passenger-trips per mile, reflective of the longer, low-density trips common in Morro Bay (Figure 16). In contrast, the Trolley, operating on a more compact and high-traffic route, carried 0.56 passengers per mile, demonstrating strong efficiency during its limited operational window.
• Total Operating Cost per Passenger-Trip – The cost to serve each rider systemwide was $23.48.
The cost to serve each rider on the Fixed-Route/Call-A-Ride system (inclusive of fixed costs) was $27.93, which is significantly lower than that seen for other small transit agencies (Figure 17).
The Trolley, benefiting from higher ridership volumes over fewer service hours, achieved a significantly lower cost per trip of $9.94.
• Total Operating Subsidy per Passenger-Trip – Public subsidy remains a critical funding source for transit (Figure 18). Systemwide, the total operating subsidy per passenger-trip was $22.47.
For the Fixed-Route/Call-A-Ride, the total operating subsidy was $26.93 per passenger-trip, reflecting the essential public service role of this program. In comparison, the Trolley required an $8.89 subsidy per trip.
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• Operating Cost per Vehicle Service Hour – Systemwide, the fully allocated operating cost averaged $98.97 per service hour. The Fixed-Route/Call-A-Ride’s cost was comparable at $103.74, while the Trolley’s more focused and seasonal service brought costs down to $71.03 per hour (Figure 19).
• Farebox Recovery Ratio – This metric represents the proportion of the system’s operating cost that is covered by fare revenue and has historically been a key determinant of how well a transit system is performing. It is important to note that the farebox ratio calculated herein does not represent the official calculation for TDA eligibility requirements. Systemwide, the farebox recovery ratio is 4.3 percent. The Fixed-Route/Call-A-Ride services achieved a 3.6 percent recovery ratio. The Trolley, with its concentrated seasonal service and stronger ridership, achieved a much higher 10.6 percent farebox recovery, highlighting its relative costeffectiveness during the summer and early fall (Figure 20).
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MBT ROUTE PERFORMANCE
An evaluation of MBT’s route performance in FY 2023-24 reveals a notable distinction between highand low-performing services. Among all services, the Trolley stood out as the most efficient and productive. Operating only seasonally from June through early October on weekends (10 AM to 5 PM), the Trolley carried 7.1 passenger-trips per vehicle service hour—almost double the systemwide average.
It also provided the lowest total operating cost per passenger-trip at $9.94 and a farebox recovery ratio of 10.6 percent, reflecting its success in attracting riders and generating revenue relative to its limited operational scope. These strong performance metrics suggest that the Trolley plays an important role in serving both tourists and locals during peak visitor months, especially along the popular waterfront corridor.
In contrast, the regular Fixed-Route/Call-A-Ride services, while essential for meeting the mobility needs of transit-dependent populations, displayed slightly lower performance than the Trolley service, but still faired quite well in comparison to similar-sized transit systems. The Fixed-Route averaged 3.7 passengers per service hour and 0.37 passengers per mile. Fixed-Route/Call-A-Ride had a higher total operating cost per passenger-trip when compared to the Trolley service at $29.93. These figures highlight the challenges of providing regular public transit in lower-density areas, where service coverage and span of service often take precedence over ridership volume or financial efficiency.
Nevertheless, these services remain critical in providing equitable access to transportation for Morro Bay residents, particularly seniors, individuals with disabilities, and low-income riders.
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Chapter 5
PUBLIC AND STAKEHOLDER OUTREACH
INTRODUCTION
Community outreach is essential in planning effective and equitable transportation systems. With this in mind, LSC conducted both onboard passenger surveys and an online community survey to help capture real-time feedback from riders during their journeys while also engaging broader community voices through an online survey (surveymonkey.com). The following is a summary of the feedback and input received during the public outreach process.
ONBOARD PASSENGER SURVEY
In partnership with the City of Morro Bay and the RTA, LSC conducted an onboard passenger survey to get feedback from those who ride the MBT Fixed-Route/Call-A-Ride service, the North Trolley, and the Downtown Trolley. The surveys asked respondents about their ridership habits (how often they ride/where they ride from and to), their opinions on transit, and basic demographic information, including occupation and age. The surveys were available in both English and Spanish, and the effort was administered on paper on the bus. The onboard surveys were distributed by a trained surveyor from July 17th – July 18th, 2025, on MBT’s Fixed-Route/Call-A-Ride service and from July 19th – July 20th, 2025, on MBT’s Trolley Routes. All surveys were collected and returned to LSC to analyze and summarize the data.
A full analysis of the survey results is available in Appendix C. Below is a summary of these results.
MBT Fixed-Route/Call-A-Ride Survey Summary (20 Responses) Demographics
• Nearly half (45 percent) of the respondents were seniors (ages 61–90); about one-third (35 percent) were under 25.
• Those who reported speaking more than one language accounted for 20 percent of respondents, while 80 percent of respondents reported speaking only one language.
Trip Pattern
• The bus stop with the most reported boardings was MBT Center/City Park on Harbor Street, and the bus stop reported as the most common destination was Kennedy Way Community/Senior Center.
• Trips clustered midday (10 AM – 2 PM), with fewer early morning or evening riders. • The top trip purposes reported by respondents were leisure/social (30 percent) and shopping (25 percent). Work trips (15 percent) and medical/dental (10 percent) were also noted. • A total of 25 passengers boarded the bus and were counted by the surveyor. None of the respondents used the Call-A-Ride deviation service.
• Riders lacking access to a personal vehicle accounted for 85 percent of respondents. • Riders were mostly split across Regular Fare, Free Fare, and bus pass (type not specified), each accounting for 24 percent of respondents.
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• The majority of respondents walked to (55 percent) and from (53 percent) bus stops; 20 percent connected via RTA Route 12.
• Respondents reported the frequency of use as being 30 percent riding 1 to 2 days per week, 30 percent riding from 3 to 4 days per week, and 25 percent riding 5 or more days per week. Those who reported using the service 1 day or less accounted for 15 percent of respondents.
Respondent Feedback and Opinions
• The top transit information sources reported by respondents were social media and the website (39 percent each).
• On a scale of 1 (Poor) to 5 (Excellent), Fixed-Route/Call-A-Ride ratings found high marks for Overall Service (4.7 weighted average), Safety/Security (4.65 weighted average), Driver Courtesy (4.6 weighted average), and On-Time Performance (4.6 weighted average). Lower scores were given for Information Availability (3.95 weighted average) and Bus Stop Amenities (3.95 weighted average).
• The strongest requests for service improvements included weekend service (47 percent on Saturday, 35 percent on Sunday). Other priorities included reversing the route direction to have a northbound and southbound run, instead of one continuous loop (29 percent), evening service (24 percent), and more frequent buses (12 percent).
• Most common open-ended comments and feedback were positive feedback about bus drivers (23 percent). Some (15 percent) said no improvements were needed. Others requested improved RTA transfers (15 percent), expanded Call-A-Ride hours/service area (15 percent), weekend Fixed-Route and weekday trolley service (8 percent each, respectively). Smaller shares highlighted the need for better bus stop information, signage, and bike racks.
Downtown and North Trolley Survey Summary (40 Responses) Demographics
• Those respondents who were visitors from outside San Luis Obispo County accounted for 73 percent, and 18 percent of respondents lived in Morro Bay (15 percent full-time, 3 percent parttime). • The respondents’ age groups were diverse, with 35 percent of respondents reporting being between the ages of 26–40, 25 percent of respondents between the ages of 41–60, and 20 percent of respondents being under age 18.
Trip Pattern
• Trip Patterns:
o The most common origins reported by respondents were Morro Strand State Beach, Main at Elena/Spencer’s Market, and Morro Bay State Park. The most common destinations reported by respondents were Downtown/Embarcadero at Giant Chessboard and Morro Bay State Park.
• Respondents reported that 94 percent of trips were round-trip. • Respondents primarily walked to (87 percent) and from trolley stops (76 percent).
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• Trips were mostly for recreation, with 45 percent of respondents reporting social/recreational purposes as the reason for their trip, 38 percent sightseeing, and 28 percent reporting dining. • Respondents reported their boardings occurred primarily during midday, especially between 12:00 PM and 2:00 PM.
• First-time riders accounted for 56 percent of respondents, and one-third (33 percent) of respondents reported riding once or less per year.
Respondent Feedback and Opinions
• Respondents reported receiving information about transit services primarily from social media (58 percent) and the website (45 percent).
• Respondents reported learning about the Trolley services from seeing the trolley stop signs or seeing the trolley (38 percent), word-of-mouth (30 percent), and flyers (24 percent). • Open-ended feedback/comment service improvements included later weekend hours (50 percent for Sundays and 42 percent for Saturdays), expanded routes (25 percent), and stronger regional transit connections (13 percent), also suggested. • Trolley Service Ratings on a scale of 1 (Poor) to 5 (Excellent) found high marks for the trolley service, including Cleanliness (5.0), On-Time Performance (4.95), Overall Service (4.95), Driver Courtesy (4.93), Value of Fare (4.90). All categories rated above 4.7, indicating consistently excellent rider satisfaction.
• Most trolley survey respondents were highly satisfied with the service, with 60 percent stating that no improvements were needed. Among those suggesting changes, the most common requests included weekday service and amenity improvements (15 percent each, respectively).
Smaller shares called for earlier morning service, safety improvements, bus stop enhancements, or better transfer connections to RTA (5 percent each, respectively).
ONLINE COMMUNITY SURVEY (113 RESPONSES)
The Online Community Survey collected 113 responses from residents of Morro Bay and the broader San Luis Obispo County region. Not all respondents answered each question. Outreach was conducted online and in the community to reach both riders and non-riders.
Demographics
• Respondents were mostly older adults, with the majority between ages 59 and 77 (60 percent of respondents).
• One-third (33 percent) of adults reported an income between $0-$79,999, and one-third (33 percent) of respondents reported having an income above $80,000 (one-third preferred not to respond).
• Nearly all reported having access to at least one personal vehicle (95 percent of respondents).
Transit Use
• Transit use was evenly split, with half (50 percent) of the respondents reporting using public transit and half (50 percent) reporting that they do not use public transit.
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• Those who do use transit reported the trip purposes most often for recreation or social activities (73 percent), personal business (47 percent), shopping (37 percent), and medical appointments (31 percent).
• The most commonly used services included RTA Routes 9, 10, 12, and 15 (59 percent), along with MBT’s Fixed-Route (43 percent) and trolley services (39 percent). • Most riders reported using transit only occasionally (55 percent), 20 percent reporting never riding MBT. Those who ride more frequently account for 26 percent of riders. • Transit riders reported riding transit routes fairly consistently, with Monday-Thursday accounting for 46-49 percent and Friday accounting for 62 percent of ridership. Ridership on the weekends is lower (44 percent of riders rode on Saturday and 36 percent on Sunday). • Half of the respondents who reported not using public transit most frequently cited reliance on their own transportation (66 percent), service not going where they need to travel (34 percent), and travel times being too long (32 percent) as reasons for not using transit.
Opinion on Transit Services
• Asked to rate a series of service improvements that would encourage them to ride MBT services on a scale of 1 (Definitely Would Not) to 4 (Definitely Would), respondents identified several key improvements that would make them more likely to use transit. Top priorities included expanding service to additional destinations (3.2 weighted average), creating stronger connections with regional transit providers (3.04 weighted average), and adding more frequent weekend service (2.93 weighted average). Other areas of interest were later weekend hours (2.91 weighted average), better information about services (2.91 weighted average), and bus stops located closer to home (2.96 weighted average).
• Nearly half (49 percent) of respondents also expressed interest in trying microtransit, though many wanted more information before deciding (39 percent). Those who were not interested in micro transit (12 percent) cited needing more information on microtransit (36 percent), concerns with safety (18 percent), having their own transportation (18 percent), and that microtransit scheduling was not convenient (18 percent). • Open-ended feedback highlighted recurring themes: expanding the service area to San Luis Obispo, Cayucos, and Los Osos (20 percent); offering earlier and later service hours for workers, students, and airport travelers (14 percent); and improving transit information, including better signage and accessibility for riders with disabilities (14 percent). Additional notable suggestions included restoring Dial-A-Ride service (10 percent) and making transfers to RTA Routes 12 and 15 easier (10 percent).
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Chapter 6
SERVICE ALTERNATIVES
INTRODUCTION
A successful transit system can influence economic vitality, environmental sustainability, and overall quality of life. This chapter delves into a comprehensive analysis of potential changes to MBT FixedRoute/Call-A-Ride service, as well as the North and Downtown Trolley services. This chapter reviews potential changes to both MBT Fixed-Route/Call-A-Ride and the Trolley.
For each alternative, the impacts on ridership and operating costs are estimated. Ridership and cost estimates assume implementation in FY 2026-27 and are based on the following parameters:
• The RTA proposed FY 2026-27 operating budget was used to estimate the operating costs of MBT, assuming no change to service levels (“status quo” scenario). The per-hour and per-mile costs were then used to estimate the cost impacts of the various alternatives, per the following equation:
• Change in MBT’s Marginal Operating Cost = $104.99 X Change in Vehicle Service Hours + $3.60 X Change in Vehicle Service Miles.
• For the alternatives evaluations that follow, operating cost estimates represent “marginal” costs. In other words, fixed costs are excluded from the analysis unless identified specifically.
The reason for looking at marginal costs of potential changes or improvements is that fixed costs (such as administrative staff salaries, utilities, and supplies) will not change if service levels are increased or decreased. However, fuel/maintenance costs (cost per mile) and bus operator salary costs (costs per hour) will increase incrementally as vehicle hours and miles are increased.
Fixed costs and capital costs will be included in the discussion when the Draft Financial Plan is prepared.
• Further, “marginal operating subsidy” represents marginal operating cost minus fare revenue, or the amount of revenue needed to subsidize the service.
• Status quo FY 2026-27 ridership estimates assume a slight (1 percent) increase in ridership per year from FY 2024-25 levels. This is consistent with post-pandemic trends of similar-sized transit systems. Ridership estimates for service alternatives are based on ridership data from peer systems and standard transit demand elasticity factors, depending on the alternative. Elasticity is an economic term that measures the change in the behavior of one variable in response to the change in a related variable. For example, if service levels are doubled, historical data has shown that ridership will not double but rather increase by around 47 percent. Elasticity factors vary for different variables such as headways, total travel time, or transfer time. Variation has also been found in urban areas vs. suburban areas or during peak or non-peak periods. The Transit Cooperative Research Program (TCRP) Report 95 Traveler Response to Transportation System Changes Chapter 9 – Transit Scheduling and Frequency is a good resource for transit elasticity factors.
• Service was assumed to include 250 weekdays, 51 Saturdays, and 51 Sundays, unless otherwise noted. Operating days for the Trolley were assumed to be 36 days.
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• Data shows that the average fare of the Fixed-Route/Call-A-Ride was $0.48 in 2024, before the consolidation of MBT into RTA. The current post-consolidation average fare is $1.00. However, with the implementation of the new discount fare verification program, the assumed average cash fares received per boarding for Fixed-Route/Call-A-Ride are assumed to be $1.00. The Trolley average fare per passenger is assumed to be $0.83, based on a sample of ridership from FY 2023-24 and FY 2024-25.
Average daily boarding and alighting data from a two-week sample in July was used to develop and analyze some of the options below. This data is presented graphically in Appendix D.
ALTERNATIVES ANALYSIS
Fixed-Route/Call-A-Ride Alternatives
Table 18 presents cost and ridership impacts for a variety of service alternatives for MBT FixedRoute/Call-A-Ride. Each alternative is described below.
Provide Weekend Fixed-Route/Call-A-Ride Services
The top service request for the on-board surveys was weekend (Saturday and Sunday) Fixed-Route/Calla-Ride service. While the Downtown and North Trolleys operate on weekends during the summer months (June through October), there is no weekend Fixed-Route service, nor is there any weekend service during the non-summer months. Two weekend Fixed-Route/Call-A-Ride service options were analyzed: non-summer and year-round.
Non-Summer Season Weekend Service 10:00 AM to 5:00 PM
Under this option, the Fixed-Route/Call-A-Ride service would operate between the hours of 10 AM and 5 PM on both Saturday and Sunday for the weekends that the Trolley does not operate (October to June). This equates to 68 additional days of service for an estimated net increase in annual operating costs of $68,170. Weekend service would be similar to weekday service and arrive/depart the Morro Bay Park Transit Center at the top of the hour to allow for timed connections with Routes 12 and 15.
Ridership for Saturday and Sunday Fixed-Route/Call-A-Ride service during the non-summer season was estimated by applying the average proportion of Saturday and Sunday daily ridership to weekday ridership for Routes 12 and 15 to Fixed-Route/Call-A-Ride. This results in an increase in 3,100 trips annually and an additional annual operating subsidy of $65,070.
Year-round Weekend Service 10:00 AM to 5:00 PM
As the Trolley routes cater more to visitors, it is worthwhile considering operating Fixed-Route/Call-ARide service (serves more residents) seven days a week. Under this option, Fixed-Route/Call-A-Ride service would operate from 10 AM to 5 PM, year-round, for an additional annual operating cost of $104,250. Adding 104 days of service would garner an additional 4,700 one-way passenger-trips and result in a marginal operating subsidy of $99,550. Although the Trolleys stops at the Community Senior Center (during the summer months), which is within one-quarter mile of the transfer point currently, connections to RTA Routes 12 and 15 would further be improved under this scenario as there would be scheduled direct connections at the MBT Center.
Provide Weekday Fixed-Route/Call-A-Ride Service to 7:45 PM Another common request among on-board and community survey respondents was later evening service. Currently, the last run on MBT Fixed-Route/Call-A-Ride departs the MBT Center at 6:00 PM,
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ending at the Morro Bay High School at 6:45 PM. Although average daily ridership during this last hour of service is low (1.6 boardings), another connection with RTA Route 12 coming from San Luis Obispo could be made.
As shown in Table 18, this option would cost around $35,800 to operate and carry around 300 additional one-way passenger-trips. Ridership was estimated based on the ratio of 7:00 PM hour ridership to average daily ridership for peer operators.
Fixed-Route/Call-A-Ride Two Loop Route - Improve Connections with Routes 12 and 15 Timely inter-regional bus transfers contribute to a more equitable transportation system by providing accessible and convenient options for all, particularly for those who rely on public transit as their primary mode of transportation. RTA Route 12 connects Morro Bay with Los Osos, the City of San Luis Obispo, and Cuesta College. Timed transfers between MBT Fixed-Route/Call-A-Ride and RTA Route 12 heading towards Los Osos and coming from SLO are possible at the top of the hour at the Morro Bay Park. However, connecting MBT passengers must wait 39 minutes at Morro Bay Park to transfer to a southbound RTA Route 12 bus to SLO. According to on-board passenger surveys, roughly 20 percent of survey respondents transferred to/ from RTA Route 12. This is an increase from 6 percent during the last SRTP update. No respondents stated that they transferred to/from RTA Route 15. Additionally, the Blue Heron Mobile Home Park and Bay Pines Travel Trailer Park are served by RTA Route 12 but not by MBT.
Therefore, residents/visitors to these areas would also benefit from improved connectivity with RTA Route 12.
The previous SRTP recommended dividing the MBT Fixed-Route/Call-A-Ride into two loops (Figure 1).
Each loop would begin and end at Morro Bay Park, where the bus operator would take a break. The North Loop would depart Morro Bay City Park at the top of the hour as usual, travel west along Morro Bay Road, north on Main Street, following the existing route alignment to serve the northern portion of Morro Bay, including the spur along Atascadero Road to Morro Dunes State Park (Figure 21). As the bus approaches the downtown area, it would turn left on Quintana and right on Morro Bay Blvd to return to the Morro Bay City Park 38 minutes after the hour, in time for passengers to transfer to RTA Route 12 toward SLO. The bus would then operate in the South Loop. In order to maintain good on-time performance for the Fixed-Route/Call-A-Ride, the South Loop would be shortened from the existing configuration. After leaving the City Park, the bus would travel west along Morro Bay Blvd and south along Piney Way only as far as South Street, where it would turn north on Main Street to serve Harbor Street and Morro Bay Blvd before stopping at the Community Center and ending at City Park. According to recent Call-A-Ride ridership logs, 60 State Park Road is a popular destination. This stop would still be within ¾ mile of the South Loop.
The Two Loop Route will take 1 hour to operate with one bus, but with a small reduction in vehicle miles (as a result of the route no longer travelling as far south as Piney and Main Street) and no increase in vehicle hours, this alternative will save around $7,000 in annual operating costs. Transfers between MBT and RTA Route 12 will be improved, and passengers will have a shorter travel time from the northern portion of Morro Bay to Blue Heron Mobile Home Park, Bay Pines Travel Trailer Park, Cuesta College, and the City of SLO. It is estimated that improved transfers will increase ridership by around 3 trips per day or 700 per year.
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Table 18: Morro Bay Transit and Trolley Alternatives Analysis Annual
Marginal
Hours Miles Runs Hours Miles Hours Miles Cost
Status Quo
Morro Bay Transit Fixed-Route/Call-A-Ride 1 10.6 12 12.25 127.2 250 3,063 31,800 $436,181 11,700 Downtown Trolley 0.25 4.8 14 7 67.2 36 235 3,007 $35,502 1,920 North Trolley 0.25 6.9 14 7 96.6 36 225 2,883 $34,029 1,840 Total 22.3 3,523 37,690 $505,711 15,460 $14,700
Fixed-Route/Call-A-Ride
Saturday and Sunday Fixed-Route/Call-A-Ride Service
Non-Summer Season (10:00 AM – 5:00 PM) 1 10.6 7 7 74.2 68 476 5,046 $68,170 3,100 $3,100 $65,070 Year Round (10:00 AM – 5:00 PM) 1 10.6 7 7 74.2 104 728 7,717 $104,250 4,700 $4,700 $99,550 Later Weekday Fixed-Route/Call-A-Ride Service (Add one run to 7:45 PM) 1 10.6 1 1 10.6 250 250 2,650 $35,800 300 $300 $35,500 Fixed-Route/Call-A-Ride: Two Loop
North Loop 0.67 7.98 12 8.250 95.76 250 2,063 23,940 $302,850 South Loop 0.34 1.96 12 4.000 23.52 250 1,000 5,880 $126,190 Subtotal 1.00 9.94 3,063 29,820 $429,040
Net Impact 0 -1,980 -$7,141 700 $700 -$6,441
Trolley
Add Friday Evening and Extend Service Saturday Evening until 9 PM (4 Hours) Downtown Trolley 4 51.2 36 144 1,844 $21,770
North Trolley 4 51.2 36 144 1,844 $21,770
Net Impact 288 3,688 $43,540 1,090 $905 $42,635
Microtransit Friday and Saturday Evening Service (5 PM to 9 PM) Two vehicles at peak times 6 72 36 216 2,592 $32,020
Technology Cost $40,000
Net Impact $72,020 860 $860 $71,160
Replace Trolley with Microtransit (Friday - 5 PM to 9 PM, Saturday - 11 AM to 9 PM, Sunday - 11 AM to 5 PM) Three vehicles at peak times 1,044 12,528 $154,780 5,220 Technology Cost $40,000
Eliminate Fixed-Route Trolley Service -$69,530 -3,760
Net Impact $125,250 1,460 $4,380 $120,870
Downtown Trolley - Add Transit Center Stop
Extend route to add Transit Center 0 0.17 14 0 2.38 36 0 86 $310 0 $0 $310 FY 2026-27
Fare
Revenues
Marginal
Operating
Subsidy
Run Parameters Daily Service
Days per
Year
Annual
Annual
Ridership
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Add Bus in Opposite Direction
Roughly 25 percent of on-board survey respondents indicated that they would like to “add a second bus running in the opposite direction”. One-way directional loops can create indirect trips and longer travel times in one trip direction. On the Fixed-Route/Call-A-Ride, the most common origin/destination trip pattern observed as part of the on-board survey was between Main/Jamaica and the Community/Senior Center, with the next most common origin/destination pair between Spencer’s Market and the Community/Senior Center. Travelling from Main/Jamaica to the Community Center takes 25 minutes (with a short walk or deviation from City Park), and the return trip takes 35 minutes.
A potential extension of the Two Loop scenario would be to add a second bus travelling in the opposite direction; however, this would double the marginal operating costs or add around $436,000 per year.
Given that bi-directional service would only save around 10 minutes of travel time in one direction for the most common trip patterns, this option is not recommended as the increase in ridership would not be warranted with the additional cost.
Additional Stop at Community & Senior Center Fixed-Route As referenced above and shown in Appendix C, the most common origin-destination patterns of onboard survey respondents were:
• Main St/Jamaica - Community Center
• Spencer’s Market - Community Center
• City Park - Main St/Bonita
According to the Fixed-Route schedule, the Community & Senior Center is only served once on the route, about 20 minutes after the departure from City Park Transit Center. The Community & Senior Center is roughly one-quarter mile from the City Park Transit Center. If passengers ride the bus the entire route from Main Street and Jamaica to the Community Center, it would take roughly 45 minutes.
However, if they alight the bus at the City Park Transit Center and walk to the Community Center, the total travel time would be around 25 minutes. Although the walk between the City Park and the Community Center would not be difficult for able-bodied passengers, seniors and disabled passengers could benefit by including a “request stop” at the Community Center just prior to ending the route at the Morro Bay City Park Transit Center. Passengers could request the drop off directly with the bus operator as they are boarding without the need to call dispatch in advance or be charged the Call-A-Ride fare. Similarly, it is less than a quarter mile walk from the Dollar Tree stop to the Community Center.
This distance could be made even shorter with a request drop near the intersection with Kennedy Way and the shopping center access road between Dollar Tree and Albertsons.
Microtransit Year-Round (Fixed-Route/Call-A-Ride Replacement) The existing MBT deviated Fixed-Route system allows for a set schedule on which riders can depend, with the flexibility of pickups/drop-offs outside the set route. The majority of Morro Bay can be served this way during the week, with the exception of Morro Bay Park Campground (which is served seasonally by the Trolley on weekends). The geographic layout of Morro Bay (long and skinny with north and south clusters of development) makes it relatively efficient to serve with a deviated Fixed-Route type of service. However, as the Fixed-Route/Call-A-Ride service carries only 3.7 trips per vehicle service hour (well within the productivity range of microtransit for one vehicle), it is worth considering replacing the Fixed-Route/Call-A-Ride with microtransit.
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There are two primary disadvantages to this scenario: Cost and dependability. Even with only one microtransit vehicle in operation, technology costs for the on-demand app would add at least $30,000 to annual operating costs. On-board survey origin/destination patterns show distinct trip patterns between the Spencer’s Market area and the Community Center/City Park. This lends better to a Fixed-Route type of service. Lastly, many regular riders may find it inconvenient to request a ride for each trip. (According to on-board surveys, 85 percent of respondents use Fixed-Route/Call-A-Ride at least once a week, while 25 percent use it five days a week). One potential advantage of microtransit is that destinations outside the ¾ mile Call-A-Ride service area, such as the Blue Heron Mobile Home Park, could be included in the microtransit service area. Given all these factors, replacing Fixed-Route/Call-A-Ride with microtransit is not recommended at this time, but could be considered in the future.
Downtown and North Trolleys Alternatives
According to on-board surveys, 83 percent of Trolley survey respondents were visitors from outside SLO County. Boarding and alighting data for a two-week sample show that the Morro Strand State Park Campground is the most popular stop (35 average daily boardings), followed by the Giant Chessboard (23 average daily boardings). The majority of Trolley survey respondents stated that they were quite happy with the service, and many were riding for their first time. The following alternatives were analyzed for the Trolley Routes based on ridership patterns and survey suggestions.
Downtown Trolley Serves City Park Transit Center
One minor adjustment that could improve connectivity on the weekends would be for the Downtown Trolley to serve the Morro Bay City Park Transit Center. The small detour would add roughly ¼ mile per round-trip or around $500 annually. As the Trolley does not have fixed timepoints, this small detour would not impact on-time performance. Serving the City Park would allow visitors to transfer more directly to RTA Routes 12 and 15.
Add Friday Evening Trolley Service and Extend Saturday Evening Trolley Service Until 9 PM
One common suggestion among Trolley survey respondents was later service on both Saturday and Sunday. Prior to COVID, the Trolley service operated until 7:00 PM on Friday and Saturday evenings.
During the Summer of 2025, the Trolley service was operated until 5:00 PM on Saturdays and Sundays.
Service until 7 PM does not easily allow visitors to use the Trolley to go out to dinner downtown.
Therefore, this alternative considers extending Trolley Service until 9 PM on Saturday evenings and adding evening service until 9 PM on Fridays, in an attempt to capture more weekend visitors.
The additional 4 hours of daily service for both Trolley Routes would add around $43,540 in annual operating costs. Ridership was estimated based on historical Morro Bay Trolley ridership from 5 PM to 7 PM and evening ridership for the Town Trolley in Mammoth Lakes and the Avila Beach Trolley, adjusted to reflect that Morro Bay charges a fare where the other Trolley services do not. The alternative is projected to carry an additional 1,900 passenger-trips per year, or on average 52 per service day.
Adding Friday Evening and Saturday Evening Microtransit Service Many resort communities have found microtransit to be a popular option during times when demand for Fixed-Route service is lower, such as evening hours or weekends. Similar to Uber or Lyft, microtransit allows passengers to use their mobile phone or telephone to request a ride “on-demand”, at any pick-up location within a defined service area and time. Nearly 50 percent of community survey respondents
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indicated that they would be interested in microtransit, and another 39 percent would like more information regarding microtransit. The benefit of microtransit is that it can serve more people directly by not having fixed stops. Microtransit is most useful for regions where there are few distinct origindestination patterns. Additionally, microtransit can often appeal to visitors who do not usually ride public transit. One potential application of microtransit in Morro Bay is for Friday evening, as well as Saturday evening service, after the Trolley has stopped running. As the Trolley does not provide deviations, it would be possible to serve more residents/visitors directly with microtransit.
In order to provide service with no more than a 30-minute wait, it is recommended that at least three microtransit vehicles be used for service between 5 PM and 8 PM, and two for the last hour of the evening. The most productive microtransit services observed in tourist areas carry anywhere from 5 - 7 trips per vehicle hour for a fare-free service. Considering that a fare would be changed in Morro Bay, it is reasonable to assume the low end of the productivity range of 5 passenger-trips per hour. In this scenario, an evening microtransit service in Morro Bay would carry around 1,980 trips annually.
As the RTA fleet includes smaller vans, which are used for paratransit service, it would be possible for RTA to operate the microtransit; however, the microtransit software would need to be procured. This technology is estimated to cost around $30,000 - $40,000 annually (not including start-up costs). In total, evening microtransit service in Morro Bay on Friday and Saturday evenings would cost around $98,710 annually. One disadvantage of this alternative is that it would require Morro Bay visitors to learn two different types of public transit service: Fixed-Route Trolley service in the daytime and microtransit in the evening. This would likely limit ridership growth to the low end of productivity levels served in other tourist areas.
Assuming the same fare of $1 per ride for general public passengers, this equates to an operating subsidy of $93,370. If RTA considers microtransit in other portions of the county, the additional cost of purchasing on-demand app technology for Morro Bay microtransit vehicles could make this option more cost-effective.
Replace Daytime and Evening Trolley Service with Microtransit Another application of microtransit in Morro Bay would be to replace daytime Trolley service with microtransit, as well as add the evening microtransit service discussed above. The benefits of this alternative would be that both daytime and evening weekend service would serve all of Morro Bay more directly, and visitors would only need to learn one type of service during their stay. As part of this alternative, three vans would be used to operate service from 11 AM to 8 PM, and 2 vans from 8 PM to 9 PM. This would cost on the order of $120,250 in marginal operating costs over status quo Trolley service. Although high productivity rates on a microtransit service of 7 trips per vehicle hour have been observed in some resort destinations (Lake Tahoe) at peak times of day, most microtransit services do not carry more than 5 trips per vehicle hour. Currently, the Fixed-Route trolley is carrying 7.1 trips per vehicle service hour. It is reasonable to assume that a daytime and evening microtransit service in Morro Bay on weekends has the potential to carry up to 6 passenger-trips per vehicle hour, which equates annual ridership of 6,200 trips per year. This results in a net increase in ridership of 2,500 over the status quo (due to the addition of evening service). However, it may take several years of operation before this level of ridership is achieved. It is reasonable to charge a higher fare for a demand response service.
Assuming a $3 average fare, the operating subsidy would be $117,750.
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Move Trolley Layovers to Transit Center
Currently, the Downtown Trolley takes a layover time at the Community Center, as there is a restroom available for the operator. Passengers can request to be dropped off at the City Park if they need to transfer to Routes 12 and 15; however, this is not a listed stop. One operational adjustment that could be made to improve regional connections with Routes 12 and 15 would be to add the City Park Transit Center to the Downtown Trolley Route. As the Transit Center is improved, an operator's restroom will be available. Adding the Transit Center to the Downtown Trolley route will only add 0.17 miles per loop, or the equivalent of $310 in vehicle mileage-related costs.
ALTERNATIVES PERFORMANCE ANALYSIS
To evaluate the relative performance of the RTA service alternatives, each alternative’s impacts on ridership, marginal operating cost, passengers carried per vehicle service hour, and marginal operating cost per passenger trip were compared. Analysis findings are summarized in Table 19 and Figures 22 through 24. Alternatives with performance that improve the status quo are highlighted in green. • Ridership – The alternative with the greatest positive ridership impact is Year-round Weekend Fixed-Route/Call-A-Ride Service (4,700 trips), followed by the Non-Summer Season Weekend Fixed-Route/Call-A-Ride (3,100 trips). Later weekday Fixed-Route/Call-A-Ride service will only add a small amount of ridership (300 trips).
• Passenger-trips per Vehicle Hour – In terms of productivity, adding Trolley Friday Evening Service and extending Saturday Evening until 9 PM is the most productive (6.6 trips per vehicle hour), although this is not higher than the status quo productivity of the Trolley. Productivity impacts for both weekend service options for Fixed-Route/Call-A-Ride exceed status quo levels (6.5 trips per vehicle hour).
• Marginal Operating Cost per Trip – Implementing the Fixed-Route/Call-A-Ride – Two Loop option would save $10.20 per passenger-trip gained, making it the most cost-effective alternative. The weekend Fixed-Route/Call-A-Ride alternative also improves status quo performance.
SERVICE ALTERNATIVES SUMMARY
The following alternatives are worth consideration for the Draft Plan:
• Fixed-Route/Call-A-Ride Two Loop - This option would lower operating costs by a small amount while increasing ridership. The primary benefit of this alternative is that the wait time to transfer to/from RTA Route 12 would be reduced. Roughly 20 percent of survey respondents transfer to RTA Route 12.
• Adding Trolley Friday evening service and extending existing Saturday Evening Service Until 9 PM – It is worth considering reimplementing Trolley evening service and extending it until 9 PM.
This allows visitors and residents to go out to dinner or simply stay in town longer than 4:30 PM.
This option performs better than the microtransit evening service. • Saturday and Sunday Fixed-Route/Call-A-Ride Service – Although these options would increase operating costs by $68,000 to $104,000 annually, these alternatives would have the greatest impact on ridership. Weekend service was a common request for both on-board and community surveys.
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Although the microtransit options could provide greater flexibility, they are not as cost-effective as the Fixed-Route and Trolley alternatives.
Table 19: Morro Bay Transit Service Alternatives Performance Analysis Annual
Ridership
Annual
Vehicle
Service
Hours
Annual Marginal
Operating Cost 1
Passenger-Trips
per Vehicle
Service Hour
Marginal Op.
Cost per
Passenger-Trip
Saturday and Sunday Fixed-Route/Call-A-Ride
Service - Non-Summer Season 10 AM - 5 PM 3,100 476 $67,010 6.5 $21.62 Saturday and Sunday Fixed-Route/Call-A-Ride
Service - Year-round 10 AM - 5 PM 4,700 728 $102,490 6.5 $21.81 Later Weekday Fixed-Route/Call-A-Ride
Service (Add one run to 7:45 PM) 300 250 $35,190 1.2 $117.30 Fixed-Route/Call-A-Ride: Two Loop 700 0 -$7,142 -- -$10.20 Add Trolley Evening Friday and Extend Saturday
Service until 9 PM
1,090 288 $42,840 3.8 $39.30
Microtransit Friday and Saturday Evening
Service (5 PM to 9 PM)
860 216 $71,500 4.0 $83.14
Replace Trolley with Microtransit and Add
Evening Service
1,460 1,044 $123,827 1.4 $84.81
3.8 $36.64
8.2 $18.19
Note 1: Does not include fixed costs.
Note 2: Represents FY 26-27 status quo using the RTA cost model.
Alternatives shaded in green perform better than status quo.
Trolley
Status Quo(2)
Net Impact
Fixed-Route/CAR
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FUTURE DEVELOPMENT
The Morro Bay Waterfront Master Plan is a long-range planning document designed to guide the future development of Morro Bay’s waterfront. As an update to the original 1996 plan, the future Master Plan aims to reimagine current land use, circulation, infrastructure, and design across waterfront areas, including the Embarcadero, Coleman Park, and former industrial sites like the old power plant and wastewater treatment facility. Proposed improvements include ADA-compliant pathways, upgraded restrooms, and better sidewalk connectivity at Coleman Park, along with a potential drivable bridge over Morro Creek to enhance access, though traffic concerns remain. Parking strategies such as paid parking at Morro Rock and time-limit enforcement along the Embarcadero are also under consideration.
The area will remain zoned for “Visitor Serving Commercial” and “Parks and Recreation,” which could potentially increase employment and tourism opportunities in the future; however, this would likely occur outside of this current SRTP planning period. While major development north of the power plant will be limited due to vulnerability to coastal hazards and flooding, family-friendly tourism and recreation activities, such as parks, playgrounds, and RV camping, are all being considered. As the estimated completion date for the Waterfront Master Plan is November 30th, 2026, development as a result of its completion will be considered in future transit planning efforts for the area. After the Waterfront Master Plan is adopted by the City Council, it will also need to go before the Coastal Commission.
FARE ALTERNATIVES
Transit fare alternatives, such as discounted passes, free transfers, or fare capping, help make services more accessible for riders with different travel needs. Having a reliable fare collection system is equally important as it ensures revenue is accurately collected, reduces barriers for passengers, and supports smooth operations.
Implement Cal-ITP Open-Loop Contactless Fare-Payment System Open-loop contactless fare payment allows passengers to board a bus simply using their mobile phone or credit card, and eliminates the need to search for exact change. The California Integrated Travel Project (Cal-ITP) and the California Department of General Services have collaborated to simplify the process for transit providers to implement a contactless fare-payment system. Cal-ITP has also negotiated lower-cost credit card processing fees than would be possible for individual agencies.
In 2024, SLOCOG led an effort to establish and fund an open-loop contactless fare payment system on all countywide fixed-routes using SB125 funds. This project will fund the upfront costs – including the purchase and installation of contactless payment hardware and related software – as well as fees for the first five years of operation. RTA plans to implement the contactless fare payment system on Morro Bay fixed route buses; however, there will still be the option of paying a cash fare.
Discount Fare Verification Program
When RTA passengers purchase a multi-ride pass on Token Transit or at pass outlets throughout the County, the passenger has the option to choose which fare category they fall under, general public or discount. Similarly, bus operators are instructed to avoid fare-related conflicts and generally to accept the word of cash-paying riders. RTA staff have observed general public passengers paying the discounted cash fare when there is no obvious reason the person qualifies for the discounted fare. As such, there is likely some abuse of the fare system. For MBT specifically, data for FY 2023-24 shows that
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less than 1 percent of passengers paid the full cash fare. On-board survey results indicate that 55 percent of respondents were under the age of 60.
In an effort to reduce fare evasion, the RTA is separately implementing a program to distribute a discount fare verification card in conjunction with the launch of the Cal-ITP system and the reestablishment of in-person ADA eligibility verification. Passengers can sign up in person at a prearranged location (possibly revolving around the county at existing pass outlets) or through an online portal, which will reduce the potential burden for qualifying passengers who may face mobility challenges.
Token Transit and the Cal-ITP system allow agencies to restrict the ability of users to purchase discounted fares by providing a “good list” of passengers who qualify for discounted fares, and persons buying a discounted pass at a pass outlet would be required to show their eligibility card during purchase. Qualified applicants could submit their documentation via an online portal or in person at an office to be added to the “good list”.
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Chapter 7
CAPITAL ALTERNATIVES
INTRODUCTION
Capital investments include funding allocated for physical components of the transit system, such as vehicles, facilities, and passenger amenities. Capital investments are necessary to provide safe, dependable, and comfortable services, yet they also require substantial planning and funding on the part of the transit agency. While there is always a degree of uncertainty when planning capital improvements, as there may be unanticipated needs or product prices may change, it is still helpful to identify known capital needs to assist transit staff with securing funding. This chapter presents capital projects for MBT over the next five years.
TRANSIT VEHICLES
Vehicle Replacement Needs
Transit vehicles must be regularly replaced to maintain a safe and reliable fleet. As the vehicle procurement process can take multiple years, transit agencies must identify their vehicle needs well in advance. Additionally, the State of California’s (CA) Innovative Clean Transit (ICT) regulation will begin impacting transit vehicle procurement in 2026, at which point 25 percent of small transit agency fleet bus purchases will be required to be ZEBs. By 2029, this purchasing requirement will increase to 100 percent. By 2040, all vehicles in the fleet will need to be ZEBs. To meet these standards, transit agencies can purchase either battery-electric buses (BEBs) or fuel-cell hydrogen electric buses (FCEBs). It should be noted that vehicles with a Gross Vehicle Weight Rating (GVWR) of less than 14,000 pounds are not subject to the ICT rule. A sample of boarding and alighting data shows that peak passenger load on MBT is around 10 passengers. Therefore, it may be possible to use small diesel vans to operate FixedRoute/Call-A-Ride while not violating the ICT rule.
ZEB Considerations
Currently, ZEBs are more expensive than gas or diesel vehicles, meaning MBT/RTA will need to secure additional funding to meet local match requirements for capital grants. While ZEBs are more expensive at this point, the ZEB market is constantly changing as new models are released and older models are improved, making it hard to predict future pricing. The MBT vehicle replacement schedule presented below is subject to change as new ZEB technologies become available and costs stabilize.
Vehicle Replacement Schedule
MBT’s active fleet was acquired by RTA when they began operating the service in June 2025. A new medium-duty Allstar 14.2 passenger cutaway was delivered in 2025, which will replace the older El Dorado cutaway. As such, RTA will not need to replace vehicles used for the Fixed-Route/Call-A-Ride during this five-year planning period. The two Trolleys used for primary service are not due for replacement until 2032 and 2035. The next round of vehicle replacement will need to be ZEV, unless ICT regulations change.
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TRANSIT FACILITIES
Transit facilities refer to the sites and infrastructure that directly support administrative, operations, and maintenance functions. This section discusses capital improvements to MBT facilities.
MBT Transit Center
MBT Transit Center is located at the City Park on Harbor Street and is a transfer point for RTA Routes 12 and 15, and the MBT Fixed-Route/Call-A-Ride service. In 2023, the site was updated, including upgraded shelters, ADA-compliant bench seating, ADA upgrades to sidewalks and curbs, fencing, decorative safety lighting, a bike rack, painted waste bins, and a route map. The two new bus shelters and benches are designed to meet ADA accessibility standards. As part of RTA’s electrification program, opportunity chargers will be installed at the transfer point at Morro Bay City Park. This could be used for MBT as well as Routes 12 and 15. To be consistent with other transfer points in the RTA system and to provide convenience to passengers, an LED “Next Bus” sign should be installed at the Transit Center.
Bus Stop Improvements
For most passengers, bus stop amenities are important to comfort and perception of public transit. A few survey respondents indicated a desire for more visible bus stop signs which provide information such as a schedule. RTA employs the Transit Tracker app, which provides passengers with real-time location of buses. RTA recently installed bus schedules and Transit Tracker signs at all MBT bus stops.
However, the existing bus stop signs show the old MBT phone number (which is forwarded to RTA). In order to provide the most accurate information, these bus stop signs should be replaced with RTA bus stop signs over the long term.
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Chapter 8
MORRO BAY TRANSIT PLAN RECOMMENDATIONS
The following plan presents service enhancements and a financial plan to enhance public transit services in Morro Bay, within the constraints of realistic funding projections. This chapter presents the individual plan elements in brief, based on the substantial discussions presented in previous chapters; the reader is encouraged to refer to previous chapters for additional background on the plan elements.
The service plan elements recommended in this short-range transit plan will increase ridership by 3,200 or 23 percent over the base case scenario. The implementation of all plan elements will increase MBT’s annual operating budget by 11 percent or $68,800 by the end of the planning period.
PLAN ASSUMPTIONS
• Forecasts of annual operating and administrative costs are presented in Table 20. “Base case” or “status quo” operating and administrative cost forecasts were estimated based on the MBT 2026-27 Proposed Budget. An annual inflation escalator of three percent was then applied to FY 2026-27 costs to project operating costs for each year of the planning period. • Ridership and associated fare revenue for each SRTP element were estimated as shown in Tables 21 and 22. The “base case” reflects FY 2024-25 projected service levels. Ridership is assumed to increase by 1 percent annually throughout the planning period.
SERVICE PLAN
Operating costs, ridership, and fare revenue estimates for service plan elements for MBT are shown in Tables 20, 21, and 22 and described below. The reader is encouraged to review Chapter 4 for more detailed information on how each plan element was developed. Figure 25 presents the two plan elements graphically.
Table 20: Morro Bay Transit Short Range Transit Development Plan Operating Costs Plan Element FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Base Case Operating Cost (1)
Marginal Systemwide Operating Costs $456,650 $470,300 $484,500 $499,000 $514,000 Fixed Costs $90,450 $93,200 $96,000 $98,800 $101,800
Total $547,100 $563,500 $580,500 $597,800 $615,800
Recommended Service Plan
Saturday and Sunday Fixed-Route/Call-A-Ride Service -
Non-Summer Season 10 AM - 5 PM $67,000 $69,000 $71,100 $73,200 $75,400 Fixed-Route/Call-A-Ride: Two Loop -$7,100 -$7,300 -$7,500 -$7,800 -$8,000 Total Marginal Service Plan Costs $59,900 $61,700 $63,600 $65,400 $67,400 Note 1: FY 2025-26 RTA Budget - Proposed FY 26-27”
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Table 21: Morro Bay Transit SRTP Estimated Annual Ridership Plan Element FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Base Case (1)
Fixed-Route/ Call-A-Ride 11,700 11,800 11,900 12,100 12,200 Trolley 4,200 4,200 4,300 4,300 4,400
Total 15,900 16,000 16,200 16,400 16,600
Service Plan Elements (2)
Saturday and Sunday Fixed-Route/Call-A-Ride Service -
Non-Summer Season 10 AM - 5 PM 3,100 3,100 3,200 3,200 3,200 Fixed-Route/Call-A-Ride: Two Loop 700 710 710 720 730
Total 3,800 3,810 3,910 3,920 3,930
Note 2: Assumes service changes begin in July 2026.
Source: LSC Transportation Consultants, Inc.
Note 1: Passenger fares escalated at projected ridership increase of 2% annually through FY 2027-28 to account for small population increase and rebound from the pandemic. Passenger fares and ridership escalated by 1% annually for the remainder of the planning period.
Table 22: Morro Bay Transit SRTP Estimated Annual Farebox Revenues Plan Element FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Base Case (1)
Fixed-Route/Call-A-Ride $11,800 $11,900 $12,100 $12,000 $12,000 Trolley $4,000 $4,000 $4,100 $4,100 $4,200
Total $15,800 $15,900 $16,200 $16,100 $16,200
Service Plan Elements (2)
Saturday and Sunday Fixed-Route/Call-A-Ride Service -
Non-Summer Season 10 AM - 5 PM $3,100 $3,100 $3,200 $3,200 $3,200 Fixed-Route/Call-A-Ride: Two Loop $700 $710 $710 $720 $730 Total $3,800 $3,810 $3,910 $3,920 $3,930
Note 2: Assumes service changes begin in July 2026.
Source: LSC Transportation Consultants, Inc.
Note 1: Passenger fares escalated at projected ridership increase of 2% annually through FY 2027-28 to account for small population increase and rebound from the pandemic. Passenger fares and ridership escalated by 1% annually for the remainder of the planning period.
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Fixed-Route/Call-A-Ride Two Loop Route - Improve Connections with RTA Routes 12 and 15
According to on-board passenger surveys of MBT Fixed-Route, roughly 20 percent of survey respondents transferred to/ from RTA Route 12, which travels between San Luis Obispo and Los Osos via Morro Bay.
RTA Route 12 also serves the Blue Heron Mobile Home Park and Bay Pines Travel Trailer Park. As recommended in the previous SRTP, realigning the Morro Bay Fixed-Route/Call-A-Ride to have two loops beginning and ending at the Morro Bay City Park Transit Center will allow for shorter transfer times between MBT and RTA Route 12 in both directions.
The Two Loop Route will continue to use one bus operating on hourly headways (Figure 25). This will result in a small reduction in vehicle miles (as the south loop must be shortened to maintain on-time performance) and no increase in vehicle hours. The Two-Loop Route will save around $7,000 in annual operating costs. It is estimated that improved transfers will increase ridership by around 3 passengertrips per day, or 700 additional passenger-trips per year. It is recommended that this plan element be implemented in FY 2026-27.
Provide Weekend Fixed-Route/Call-A-Ride Service: Non-Summer Season (10:00 AM to 5:00 PM)
The on-board surveys indicated the most popular service request from current passengers is weekend (Saturday and Sunday) Fixed-Route/Call-a-Ride service. While the Downtown and North Trolleys operate on weekends during the summer months (June through October), there is no weekend Fixed-Route service on weekends, nor is there any weekend service during the non-summer months. The alternatives analysis demonstrated that weekend fixed-route service exceeded performance indicators and will improve the productivity and cost efficiency of MBT. As such, it is recommended that the City Council consider operating Fixed-Route/Call-A-Ride service during the non-summer months as a two-year pilot program.
Under this plan element, the Fixed-Route/Call-A-Ride service would operate between the hours of 10 AM and 5 PM on both Saturday and Sunday for the weekends that the Trolley does not operate (October to June). This equates to 68 additional days of service for an estimated net increase in annual operating costs of $68,100. Weekend service would be similar to weekday service and allow for timed connections with Routes 12 and 15. It is estimated that weekend Fixed-Route service would increase ridership by roughly 3,100 trips annually, once the service meets its full ridership potential.
As a pilot service, a performance monitoring program should be developed. Typically, it can take 2 to 3 years for a new transit service to reach its full ridership potential. Therefore, if weekend service does not reach at least 50 percent of the projected ridership increase within the first year of service, the City Council should reconsider the pilot program. If, after 2 years, weekend service does not come within 90 percent of the ridership projections in Table 21, the City Council should again reconsider the cost effectiveness of weekend service.
OTHER CONSIDERATIONS
Trolley Evening Service
In recent years, visitor-oriented evening Trolley service to transport visitors from their lodging to restaurants in town has been successful in other areas. The Avila Beach Trolley is a good example. The
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option of Friday and Saturday evening Trolley service during the summer months was explored in the Alternatives Chapter. Per the analysis, evening Trolley service is anticipated to increase ridership by 1,090 passenger-trips annually and cost around $43,540 in operating costs. Although this does not meet performance standards, the service could become cost-effective if Morro Bay business owners were willing to contribute to the service.
CAPITAL IMPROVEMENTS
Transit services require ongoing capital investment in facilities and vehicles. Capital investments in both vehicles and passenger facilities can attract additional riders while improving the quality of service and safety of existing riders. Of note, California’s Innovative Clean Transit regulation will go into effect during the plan period, requiring the RTA to transition to zero-emission buses (ZEBs).
Fleet Replacement
Transit vehicles must be regularly replaced to maintain a safe and reliable fleet. As of June 2025, MBT’s active fleet was acquired by RTA. A new medium-duty Allstar 14.2 passenger cutaway was delivered in 2025, which will replace the older El Dorado cutaway. As such, RTA will not need to replace vehicles used for the Fixed-Route/Call-A-Ride during this five-year planning period. The two Trolleys used for primary service are not due for replacement until 2032 and 2035. The next round of vehicle replacement will need to be ZEV, unless ICT regulations change.
Morro Bay Transit Center
The Morro Bay Transit Center is located at the City Park on Harbor Street and is a transfer point for RTA Routes 12 and 15, and the MBT Fixed-Route/Call-A-Ride service. As part of RTA’s electrification program, opportunity chargers will be installed at the transfer point at Morro Bay City Park. This could be used for MBT as well as Routes 12 and 15. To be consistent with other transfer points in the RTA system and to provide convenience to passengers, an LED “Next Bus” sign should be installed at the Transit Center.
Capital revenue to fund these improvements was set aside in FY 2025-26 and therefore not reflected in this document’s financial plan.
Cal‐ITP Open‐Loop Contactless Fare‐Capping System
During this planning period, SB 125 funds allocated through SLOCOG will be used to implement contactless fare-payment technology as an option for payment on MBT vehicles. While new contactless fare payment technology will be implemented, paying for fares in cash will still be an option for passengers.
FINANCIAL PLAN
Table 23 presents the five-year financial plan for MBT. Operating costs were increased at a rate of 3 percent annually to reflect inflation. As discussed in previous chapters, MBT’s primary revenue source is state TDA funds (LTF and STA). In order to fund this short-range transit plan, FTA 5311 funds, now allocated to RTA, could be requested by the City of Morro Bay for rural transit services. As FTA funds can now be used as a local match to meet farebox ratio requirements, this would ensure that MBT meets farebox ratio requirements.
Additionally, the financial plan assumes that the amount of LTF funds used for transit purposes would increase over the five-year planning period. Historically, the City has directed all LTF funds to transit
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purposes with occasional allocations to streets and roads. Any future LTF funds not used for transit purposes could be used for street and road purposes. Under this plan, weekend service and realignment to a Two-Loop service are funded for the next five years. As no major capital purchases are required until 2032, sufficient capital revenue will be available for the plan period for the replacement of maintenance equipment and bus stop improvements, as needed.
Table 23: Morro Bay Transit Short Range Transit Development Plan Financial Plan FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31
Operating Revenues
TDA LTF Allocation (1) $285,820 $499,660 $517,060 $535,150 $553,840 Passenger Fares Base Case(2) $15,800 $15,900 $16,200 $16,100 $16,200 State Transit Assistance (STA) Including SB 1(3) $68,730 $68,730 $68,730 $68,730 $68,730 Federal Transit ADM (FTA) (Section 5311) - Operating (4) $36,000 $37,100 $38,200 $39,300 $40,500 Subtotal $406,350 $621,390 $640,190 $659,280 $679,270
Fund Balance $196,850 $0 $0 $0 $0
Total Operating Revenue $603,200 $621,390 $640,190 $659,280 $679,270 Status Quo Operating Expenditures $547,100 $563,500 $580,500 $597,800 $615,800 SRTP Plan Elements Operating Costs $59,900 $61,700 $63,600 $65,400 $67,400 SRTP Plan Element Fare Revenue $3,800 $3,810 $3,910 $3,920 $3,930 Balance $0 $0 $0 $0 $0
Capital Revenues
State Transit Assistance (STA) Including SB 1(3) $4,050 $4,050 $4,050 $4,050 $4,050 FTA 5307 (Capital)(3) Support Vehicle and Maintenance Equip. $2,750 $2,800 $2,900 $3,000 $3,100 State of Good Repair(2) $0 $0 $0 $0 $0
Capital Fund Balance $3,830 $3,900 $4,100 $4,200 $4,300 Total Capital Recurring Revenue $10,630 $10,750 $11,050 $11,250 $11,450 Capital Expenses
Vehicle Maintenance Equipment and Bus Stop Improvements $3,000 $3,000 $3,000 $3,000 $3,000 Total Capital Expenses $3,000 $3,000 $3,000 $3,000 $3,000 Balance $7,630 $7,750 $8,050 $8,250 $8,450
Note 3: STA revenue growth based on SLOCOG projections of flat growth.
Note 4: Based on amount need to obtain a 10% farebox ratio with FTA funds as local support.
Note 2: Passenger fares escalated at projected ridership increase of 2% annually through FY 2027-28 to account for small population increase and rebound from the pandemic. Passenger fares and ridership escalated by 1% annually for the remainder of the planning period.
Note 1: TDA LTF revenue based on budgeted need for FY26-27 . LTF revenue available for transit operations varies each year and is dependent on the level of funding from other sources.
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Appendix A
DEMOGRAPHIC MAPS
DETAILED DEMOGRAPHIC MAPS
A large proportion of transit riders belong to what is known as the transit-dependent population. The following demographic maps provide additional context about where transit-dependent persons live in Morro Bay, building on the discussion presented in Chapter Two of this Short Range Transit Plan (SRTP).
The subpopulations reviewed in this Appendix include:
• Figure A-1, Youths under 18 years of age – most children are unable to drive or do not have a parent/guardian to give them a ride, yet still have commitments outside of the home.
Those who can drive may not have a car available.
• Figure A-2, Senior population ages 65 and older – senior adults need to travel to attend medical appointments, go grocery shopping, or do other errands, but many are either not comfortable driving or not able to drive anymore.
• Figure A-3, Individuals with a disability – disabled persons may be unable to drive due to medical concerns.
• Figure A-4, The population living below the poverty level – there are many financial barriers preventing people from owning a private vehicle. The low-income population is defined by factors such as household income and the number of dependent children. • Figure A-5, Households without a vehicle available – public transit may be the best alternative for traveling longer distances for those who live in homes without vehicles.
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Appendix B
RECENT PLANNING DOCUMENTS
This appendix summarizes recent transportation plans relevant to either Morro Bay Transit (MBT) or San Luis Obispo Regional Transit Authority (SLO RTA), including both countywide studies as well as agencyspecific reports. The recommendations presented in the agencies’ respective Short Range Transit Plans (SRTPs) will support and eventually further the objectives of the studies discussed.
CITY OF MORRO BAY PLANNING DOCUMENTS
Morro Bay Transit Hub (2019)
This study was commissioned by Morro Bay Transit to assess inadequacies at Morro Bay City Park’s Transit Hub. The study assessed the advantages and disadvantages of three sites, including the City Park, and two new sites that could serve as a Transit Hub. No one site was recommended by the study, as all were found to be viable to serve as the location of the Transit Hub. The study recommended the following for the Transit Hub:
• Curb Space: 173 linear feet to accommodate four buses, including bike racks and circulation space.
• Wheelchair Loading/Unloading: Minimum 8’ x 5’ areas for wheelchair lifts, with an 8’ wide sidewalk along bus bays.
• Passenger Waiting Area: 375 square feet of covered space for 30 passengers, with seating for
15. • Ticket Vending Machine Space: Allocate space for a machine. • Outdoor Bench Seating: Seating for at least 15 persons. • Bike Racks: Capacity for four bikes, no bike lockers needed, possible bike tool station. • Employee Break Area: 160 square feet, including an ADA-standard restroom and seating area. • Power and Internet: 110V power and internet for real-time displays. • Electric Bus Charging: Conduit and pedestal for future Battery Electric Bus (BEB) charging. • Public Art Space: 100 sq. ft. for a potential sculpture. • Storage Closet: 6’ x 10’ closet for maintenance supplies and tools.
Morro Bay Short Range Transit Plan (2019)
A Short Range Transit Plan (SRTP) serves as a strategic guide for public transportation services over a 5- to 10-year period. It evaluates current transit operations, identifies service gaps and rider needs, and outlines improvements to routes, schedules, and infrastructure to enhance efficiency, accessibility, and ridership. MBT updated its SRTP in 2019 and adopted in February 2020, just one month before the Covid-19 Pandemic. As such, many of the following recommendations were not implemented due to a temporary shutdown of services. Highlights of the service, capital, and financial plan include:
• Service Plan:
o Revise the Fixed Route to a two-loop service (40-minute and 20-minute loops), enhancing connections. Serve the Natural History Museum "on-demand" to
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accommodate campers and improve bus turnaround, with trial implementation to ensure schedule sustainability.
o Extend weekday and Saturday Fixed Route/CAR service by one hour (weekdays to 7:45 PM, Saturdays to 5:25 PM) based on passenger requests.
o Operate the Trolley one hour earlier on Saturdays (starting at 10 AM) to align with earlyopening businesses in the waterfront and downtown areas. • Capital Plan:
o Vehicles: Replace one fixed route CAR vehicle and two trolleys, costing $546,450. o Automatic Vehicle Location: Add to future bus purchases at $18,180. o Two-Way Radios: Install radios on vehicles for better communication with RTA drivers, costing $6,000.
o Bus Stop Improvements: Allocate $10,930 for upgrading high-use flag stops to regular stops.
o Transit Hub: Evaluate and reconstruct the Transit Hub at Morro Bay City Park, estimated at $553,200, with grant funding to be sought.
• Financial Plan:
o Operating Costs: Increase by $11,230 to $12,390 per year (3.5 percent), rising from $323,990 in 2019-20 to $357,620 in 2023-24 with inflation. o Vehicle Purchases: Estimated total cost of $546,450 over five years. o Additional Capital: $35,110 for other capital needs.
o Transit Hub: Estimated cost of $553,200 for reconstruction. • Management Plan and Marketing Strategies:
o Adopt Updated Goals & Performance Measures: Align goals, objectives, and standards with current operations while encouraging service improvements. o Improve Customer Service: Enhance communication with RTA via two-way radios and extend customer service hours, potentially using RTA for after-hours calls. o Eliminate Flag Stops: Convert frequently used flag stops to regular stops for better visibility, safety, and reduced driver-passenger conflicts. o Establish Consistent Trolley Schedules: Create reliable trolley schedules, balancing tourist flexibility with consistent service.
o Offer Local MBT Monthly Pass: Introduce a $47 monthly pass ($23.50 for discounts), projected to generate $3,700 in additional fare revenue annually.
Morro Bay Transit Triennial Performance Audit (FY 2021-22 through FY 2023-24) In accordance with the California Public Utilities Code, all recipients of Transportation Development Act (TDA) funding are required to undergo an independent performance audit every three years. The most recent Triennial Performance Audits (TPA) for Morro Bay Transit were completed in 2024 and covered the fiscal years 2021-22 through 2023-24. The Morro Bay Transit TPA resulted in one recommendation
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to ensure that a formal set of post-consolidation performance standard metrics for Morro Bay transit services are developed as part of the expanded Short-Range Transit Plan (SRTP) update.
Plan Morro Bay - Circulation Element (2021)
The Circulation Element guides how people and goods move throughout Morro Bay, supporting the city’s vitality, sustainability, and economy by promoting safe, efficient, and accessible travel for all users, whether by vehicle, walking, biking, or transit. Required by California Government Code Section 65302(b) and aligned with the Coastal Act, it outlines a regionally connected, multimodal transportation network that reduces greenhouse gas emissions and vehicle miles traveled while ensuring coastal access. The element includes an overview of the existing transportation system, parking in the coastal zone, infrastructure diagrams, and addresses key transportation issues along with goals and policies to improve mobility for residents and visitors alike.
Goal LU-1: The community form of Morro Bay reflects its vision and values, promoting a strong economy and high quality of life.
• POLICY LU-1.5: Senior Living. Encourage the development of housing designed for universal access and senior housing that is accessible to public transit, health and community facilities, and services.
o IMPLEMENTATION ACTION LU-5: Continue to implement the North Main Street Specific Plan through the actions in this plan and the actions in the specific plan.
Goal LU-8: Morro Bay’s downtown and waterfront areas are active and welcoming locations for shopping, recreation, public access, visitor-serving needs, and coastal services. • POLICY LU-8-5: Wayfinding. Design and install comprehensive wayfinding signage along the Embarcadero that addresses all modes of travel, including transit, trucks, bicycles, and cars.
Excessive signs and other visually intrusive landscape features shall be avoided. • POLICY LU-8-16: Multimodal Access. Emphasize access for public transit and active transportation downtown and along the waterfront.
o IMPLEMENTATION ACTION CD-2: Develop citywide design guidelines with a focus on certain character areas. The guidelines for each character area should be sensitive to the design objectives and unique characteristics of each area. Those character areas include Downtown, the Embarcadero, North Morro Bay, Cloisters, North Embarcadero, and Highway 1 Commercial. Considerations for the guidelines will include allowing sufficient flexibility, use types generally allowed, building size and massing, and allowing for eclectic design features. Design standards should address senior housing that is accessible to public transit, health, and community facilities and services.
Goal ED-1: A strong, resilient local economy.
• POLICY ED-1.10: Prioritize Access. Situate new non-residential development in easily accessible areas. Ensure that buildings can be reached by walking, biking, and public transit.
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• POLICY CIR-1.5: Regional Transit. Coordinate with the San Luis Obispo Regional Transit Authority to ensure local transit connects smoothly with regional transit and possible future route and schedule expansions.
• POLICY CIR-1.6: Local Transit Improvement. Continue to improve the local Morro Bay Transit Deviated Fixed Route and Call-A-Ride services and ensure connections to regional transit and active transportation facilities.
o IMPLEMENTATION ACTION CIR-3: Prioritize projects in the CIP that improve local and regional connectivity and mobility by increasing access and connecting to existing systems, including transit, sidewalks, bike lanes, and roadways. o IMPLEMENTATION ACTION CIR-4: Update the City’s development impact fee program to provide funding for future circulation improvements, including pedestrian, bicycle, and public transit facilities and amenities. Also, consider other local financing options such as an Enhanced Infrastructure Financing District (EIFD). o IMPLEMENTATION ACTION CIR-6: Designate a representative to attend locally relevant meetings held by San Luis Obispo Regional Transit Authority, Caltrans, and other regional agencies to represent the interests of Morro Bay.
Goal CIR-2: Morro Bay is a pleasant and safe place to walk and bike. • POLICY CIR-2.1: OAL CIR-2: Morro Bay is a pleasant and safe place to walk and bike. Compact Development. Support mixed-use, compact-style, and other land use development patterns within existing developed areas so as to facilitate easy active transportation and transit use. (See also Policies LU-3.1, LU-3.3, LU-3.4, and LU-3.7.)
• POLICY CIR-2.6: Destination Facilities: Require and place access areas and facilities for bicycles, pedestrians, and transit travel in front of major destinations, such as shopping centers, parks, and schools. Facilities may include any or a combination of the following: designated passenger drop-off and pickup zones, benches, lighting, secure bike parking, shelters, and street trees. (See also Policies LU-2.3 and PS-2.1.)
o IMPLEMENTATION ACTION CIR-13: Design and install comprehensive wayfinding signage in key locations of the city that address all modes of travel, including transit, trucks, bicycles, and cars. Excessive signs and other visually intrusive landscape features shall be avoided.
GOAL CIR-4: Morro Bay has convenient parking that enables access to the downtown and waterfront areas and the coast while enhancing the city’s character. • POLICY CIR-4.1: Adequate Parking Required. Eliminate minimum parking requirements when and where appropriate to promote walkable neighborhoods and transit, and bicycle use, and establish maximum parking standards. In all cases, a finding shall be made that the proposed development can be served by adequate parking either on-site, off-site in a private parking lot, or off-site in a public parking lot provided the applicant has paid for that number of parking spaces via an in-lieu fee to the City (see also Policy CIR-4.3): In all cases, parking shall be
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provided in a manner that does not adversely impact the public’s ability to park, unless a determination is made that existing parking in the area is sufficient • POLICY CIR-4.7: Alternative Options. Require or establish EV charging stations, bike sharing, and park and ride locations throughout Morro Bay and in particular, close to transit and amenities.
GOAL C-3: Air quality in Morro Bay continues to improve through local actions and interagency cooperation.
• POLICY C-3.7: Park and Ride. Support the future development of park and ride lots in Morro Bay.
Site lots near commuter transit service and provide bicycle storage lockers at the lots to ensure they are designed to facilitate use by transit and active transportation users.
GOAL EJ-3: Residents and visitors in Morro Bay are healthy and have access to essential services. • IMPLEMENTATION ACTION EJ-4: Work with medical providers, transit agencies, private transit providers, and community representatives to develop an access plan that can provide service to major medical facilities in the region. Include recommendations for locating future medical facilities close to public transit.
GOAL EJ-4: Morro Bay recognizes and is prepared for increased health risks due to current and anticipated future climate change effects.
Plan Morro Bay - Housing Element (2014-2019)
The Housing Element, one of eight State-mandated components of Morro Bay’s General Plan, outlines the City’s strategy for meeting housing needs from 2020 to 2028 as part of its broader 2040 vision. It supports the community’s goal to preserve Morro Bay’s unique coastal, small-town character while promoting environmental resilience and a healthy lifestyle. This element addresses the urgent need for affordable housing, guided by state law, and aims to improve access for low- and moderate-income households. Analyzing demographic and employment trends, it provides a long-range plan to balance housing availability with economic growth and social cohesion.
Program H-1.4
In order to create a vibrant, pedestrian- and bicycle-friendly small urban atmosphere in the downtown area and ensure optimal access to services and public transportation, the City will encourage the development of new high-density housing in and adjacent to the downtown commercial district. To facilitate this goal, the City will inventory vacant and underutilized lots in and adjacent to the downtown business district, identify sites or areas where re-zoning to high-density residential or mixed-use categories might be desirable, and modify the City’s zoning map as appropriate.
COUNTYWIDE
The San Luis Obispo Council of Governments (SLOCOG), as the designated Regional Transportation Planning Agency (RTPA) for the San Luis Obispo region, has developed numerous studies to improve the region’s multimodal transportation network. Recent countywide transportation studies are summarized in this section, with an emphasis on understanding the plan components most relevant to public transit.
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2023-2045 Regional Transportation Plan (2023)
SLOCOG is responsible for updating the Regional Transportation Plan (RTP) every four years. The RTP is a long-range transportation planning document that serves as a blueprint for the regional transportation system and prioritizes investments to state highways, local roads, public transit, tribal transportation, and aviation services within the study area based on community values. The most recent update to San Luis Obispo County’s RTP was completed in 2023.
The 2023 RTP outlines $930 million worth of expenditure to maintain and expand the County’s public transportation programs. Transit capital projects recommended in the 2023 RTP include replacing the various transit programs’ vehicles once the vehicles hit their respective Federal Transit Administration (FTA) useful life benchmarks (ULBs), constructing a new maintenance facility for SLO Transit, improving the RTA bus stops, and procuring electric-vehicle chargers for SLO Transit.
From the Visions, Goals, and Policies:
• Active Transportation
o 10.6 Leverage regional investments in highway, street, & road projects to advance pedestrian and bicycle enhancements along routes of national, statewide or regional significance to support tourism and mobility, including but not limited to, the Anza Trail Corridor, Edna Valley Trail, California Coastal Trail, Morro Bay to Cayucos Connector, Chorro Valley Trail, Arroyo Grande Creek, Pacific Coast Railroad Trail and the Bob Jones City-to-Sea Trail. (Ongoing)
o Harbors 12.38 Leverage regional investments in highway, street, & road projects to advance pedestrian and bicycle enhancements along routes of national, statewide or regional significance to support tourism and mobility, including but not limited to, the Anza Trail Corridor, Edna Valley Trail, California Coastal Trail, Morro Bay to Cayucos Connector, Chorro Valley Trail, Arroyo Grande Creek, Pacific Coast Railroad Trail and the Bob Jones City-to-Sea Trail. (Ongoing)
o 12.41 Support efforts to secure funding for breakwater, pier, and other infrastructure and access improvement, maintenance, and rehabilitation in both Port San Luis and Morro Bay. (Ongoing)
• Sustainability Communities Strategy
o 13.2 Support housing development, including mixed-use and infill development, near employment centers along transit corridors. (Ongoing)
o 13.5 Support expanded housing options for people of all ages and incomes to increase mobility and lower the combined cost of housing and transportation. (Ongoing) o 13.7 Encourage healthy, livable human-scale development by coordinating with local jurisdictions on the incorporation of healthy community design best practices into land use and circulation decisions. (Ongoing)
o 13.9 Engage with community members representing the region’s disadvantaged communities to better understand long-term housing and transportation concerns and needs. (Near)
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o 13.12 Support local jurisdictions' policies that encourage efficient land use decisions regarding parking. This includes reducing the amount of surface-level parking, investigating best practices for the implementation of in-lieu parking fee programs, and supporting cost-effective investments in structured parking. (Ongoing) o 13.15 Provide funding for access improvements for projects that support land uses that improve the region’s jobs-housing balance and align with the transportation efficiency analysis. (Near)
o 13.23 Use regional modeling tools to quantify the return on investment for intensification along existing commercial corridors and emerging transit corridors. (Near)
• Chapter 11 Public Transit Scheduled Projects
o Local bus fleet replacement: MB Transit, Replace minibuses every 5 years (6 buses) Morro Bay Transit Morro Bay $1,075,000 S/M/L $1,209,05313. o Local trolley fleet replacement: MB Transit Replace 1 trolley every 10 years (2 trolleys) Morro Bay Transit Morro Bay $440,000 M/L $610,72.
San Luis Obispo County Coordinated Human Services Public Transportation Plan (2022)
The San Luis Obispo County Coordinated Human Services Public Transportation Plan (Coordinated Plan) was last updated by SLOCOG in 2022. The Coordinated Plan recommends strategies that will improve coordination between transportation providers, with the ultimate goal of encouraging the better use of resources and meeting the unmet transit needs of local residents. The strategies included in the 2022 Coordinated Plan most relevant to the RTA and SLO Transit are listed below. • Strategy 1 – Spread awareness of SLOCOG Regional Rideshare Programs, like SLO 5-1-1 and “Know How to Go”, through a major advertising effort.
• Strategy 2 – Add new customer-facing technology for scheduling trips and fare payment. • Strategy 3 – Add new technological capacity for improving scheduling and dispatching, tracking vehicles, and responding to unforeseen changes in service needs. • Strategy 4 – Develop local tools for driver recruitment and retention. • Strategy 5 – Develop a One-Call/One-Click Center.
• Strategy 6 – Conduct a one-year pilot project that decreases the age for Senior Go! From 65 to 60 and increases the allowable number of trips per month. • Strategy 10 – Coordinate with Santa Barbara County to increase services to Santa Maria. 2021 Active Transportation Plan (2021)
SLOCOG most recently updated the region’s Active Transportation Plan (ATP) in 2021. The ATP identifies strategies and projects to increase rates of walking and bicycling throughout San Luis Obispo County.
While the ATP primarily focuses on walking and bicycling, one of the overarching goals of the ATP is to
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improve transit and rail connectivity by facilitating safe first/last mile connections for pedestrians.
Projects recommended in the 2021 ATP relevant to transit include improving pedestrian amenities and sidewalks within 0.25 miles of bus stops, procuring bike racks for transit vehicles, and implementing commuter transportation demand-management programs.
SLO Regional Zero-Emission Bus Implementation Plan (2020) SLOCOG developed the SLO Regional Zero-Emission Bus Implementation Plan (SLO Regional ZEB Plan) to help San Luis Obispo County transit programs, as well as transit programs in nearby Santa Barbara and Monterey Counties, transition to zero-emission fleets as required by the Innovative Clean Transit (ICT) regulation. Morro Bay Transit runs three trolley routes seasonally, and one deviated, fixed route. There are five vehicles in the MBT fleet; two cutaway buses are used year-round for their Fixed/Call-a-Ride Route, and three trolleys are in use approximately nineteen weeks out of each year (Memorial Day weekend to the first Sunday in October). MBT will eventually combine two of the trolley routes to purchase, but will potentially transition back to three electric trolleys in the future.
Regional Housing Needs Allocation Plan (2019)
The Regional Housing Needs Allocation Plan (RHNAP) is a component of the Housing Element of the San Luis Obispo County General Plan. The RHNAP details the need for housing by income group within each jurisdiction in the study area for the upcoming planning period. The most recent San Luis Obispo County RHNAP applies to Atascadero, Arroyo Grande, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo and covers the time period from December 2020 to December 2028. The RHNAP recommends that new housing projects be developed in close proximity to transit services.
Active Transportation Partnership Program Safe-Routes-to-School Plan (2016) The Active Transportation Partnership Program (ATPP) is a series of work programs initiated by SLOCOG to guide near-term active transportation investments in San Luis Obispo County. The ATPP Safe Routes to School Plan outlines a strategic plan for improving the bicycle and pedestrian networks near schools, as well as strategies for how regional stakeholders can better collaborate to develop successful California Active Transportation Program grant applications. Strategies presented in the ATPP Safe Routes to School Plan related to transit include increasing the percentage of new and existing roadways with pedestrian and bicycle facilities, emphasizing travel routes along roadways with transit stops, improving pedestrian conditions within 0.25 miles of bus stops, and installing bike wayfinding signs at key bus stops.
SLOCOG Unmet Transit Needs Reports (FY 2023-24)
SLOCOG, as the designated RTPA for San Luis Obispo County, is required by the California Transportation Development Act (TDA) to hold an annual hearing to identify unmet transit needs in the region. TDA funding must be spent on any unmet transit needs deemed through the unmet transit needs process to be reasonable to meet before the RTPA can allocate funds to other transportation projects. For SLOCOG, requests for additional services must meet all four criteria listed below to be considered an unmet transit need:
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A. “The request fills a gap in public-transit service or is identified as a deficiency in the Regional Transportation Plan (RTP), Clean Air Plan (CAP), Coordinated Human Services Public Transportation Plan, or the Short-Range Transit Plan (SRTP); B. Sufficient broad-based community support is demonstrated by persons who will likely use the service on a routine basis (at least 15 requests for general public service and 10 requests for individuals with disabilities);
C. The request is current rather than an anticipated need; D. The request is for service expansion, such as increased hours, increased frequency, new routes, significant modifications to existing routes, and not operational in nature, such as minor route changes or bus-stop changes, etc. If the request is for minor service changes, the request will be forwarded to the transit operator for follow-up.”
Unmet transit needs must then meet four additional criteria in order to be considered by SLOCOG to be reasonable to meet:
A. “Farebox recovery: The request is projected to generate the required farebox ratio (10 percent rural, 20 percent urban, and 15 percent RTA by the third year, demonstrating continuous progress after the first and second year).
B. Served entity: Service will not involve funding from a non-served entity.
C. Service is comparable with other similar transit services (such as local fixed route, regional fixed route, local general-public dial-a-ride, specialized dial-a-ride, circulator, trolley, etc.) or will be similar, based on the projected number of passengers per hour the proposed service would carry.
D. The request is fundable with existing TDA funds without reducing other existing transit services. The new, expanded, or revised service, if implemented, will not cause the responsible operator to incur expenditures in excess of available TDA funds (if 100 percent of the TDA funds are being used for transit, no mandate can be imposed on the operator.).” In Fiscal Year (FY) 2023-24, SLOCOG received the following requests specific to Morro Bay. • A request was received to increase frequency on RTA Routes 9, 12, and 15. This was found not to be an unmet need that is reasonable to meet.
• Reinstate RTA’s Morro Bay High School Tripper. If not, then RTA Route 15 must increase in Frequency to every hour. RTA staff is evaluating bus run cuts planned for Fall 2023 that could include the restoration of the MBHS Tripper service. However, at this time, the RTA does not have the Bus Operator resources to re-implement the Tripper – although we are working to increase our Bus Operator roster to help restore services cut during the pandemic. • Implemented: Earlier RTA Route 12 from Los Osos to Cal Poly. Beginning March 19, 2023, the first RTA Route 12 bus departing Los Osos/Morro Bay will be moved back 23 minutes so that it arrives at Cal Poly in time for classes that begin at 7:10 AM (arrives at 6:55 AM instead of 7:18 AM). As such, this request is no longer an unmet need that is reasonable to meet.
2025 Morro Bay SRTP - Recent Planning Documents - Appendix B LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page B-10
• In FY 2022-23, SLOCOG received twelve transit-related requests for RTA. None of the requests were found to be unmet transit needs per the definitions adopted by SLOCOG. Requests received included providing earlier service on RTA Route 10 and the Paso Robles Route A, increasing service frequency on RTA Route 12, and creating a new transit route in San Luis Obispo from the Arbors/Righetti area to South Higuera/Prado. There were no requests for Morro Bay Transit.
• In FY 2021-22, SLOCOG received eleven transit-related requests for RTA; five requests were for additional service frequency, three were for new routes, one was for bus stop improvements (since implemented), one was to move a bus stop location, and one was for increased consideration of COVID-19. None of the requests were found to be unmet transit needs per SLOCOG criteria. There were no requests for Morro Bay Transit.
SLO RTA PLANS AND AUDITS
The following section discusses plans focused specifically on SLO RTA services, including the services operated by the SLO RTA through contract which now includes MBT after the recent transition of administration, maintenance, and operations to RTA in June 2025.
SLO RTA Zero-Emissions Bus Rollout Plan (2023)
The RTA adopted its Zero-Emissions Bus (ZEB) Rollout Plan in 2023. The ZEB Rollout Plan is based on the work of prior studies, including the RTA Electrification-Readiness Plan (2019), and fulfills the requirements of the ICT regulation. Of the RTA’s 79-vehicle fleet, 50 vehicles have a gross weight greater than 14,000 pounds and therefore must be replaced with ZEBs under the ICT regulation. The ZEB Rollout Plan presents purchase timelines for the RTA for both heavy-duty and smaller vehicles through 2040, with the ultimate goal being able to convert all vehicles to ZEBs while also avoiding the early retirement of conventionally fueled vehicles. As presented in the study, the RTA will continue to purchase both conventional and battery-electric buses (BEBs) until 2029, at which point all new vehicles will be BEBs.
It should be noted, however, that the ZEB Rollout Plan includes an appendix that discusses possible tipping points that would prompt the RTA to consider procuring hydrogen fuel-cell electric buses (FCEBs) in addition to BEBs.
The new vehicle procurement policy presented in the RTA ZEB Rollout Plan has already been put into practice by the RTA; the RTA is expected to receive two BEBs in late 2023. Before deploying BEBs in mass, the RTA will need to install additional/improved charging infrastructure at the RTA Bus Maintenance Facility at 253 Elks Lane in San Luis Obispo, as well as at the RTA’s park-out facilities in Paso Robles and Arroyo Grande.
While Morro Bay Transit developed its own ZEV Rollout Plan, RTA has since taken over administration, maintenance, and operations of MBT in June 2025. As a result, the RTA ZEB Rollout Plan will include Morro Bay Transit.
2025 Morro Bay SRTP - Recent Planning Documents - Appendix B LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page B-11
RTA Transit Asset Management (TAM) Plan (2022)
Per FTA regulations, every transit agency must develop a Transit Asset Management (TAM) Plan if the agency owns, operates, or manages capital assets to provide public transit service and receives federal funding under 49 U.S.C. Chapter 53 as either a recipient or subrecipient. The RTA adopted its most recent TAM Plan in 2022.
The TAM Plan states the RTA’s goal to replace heavy-duty buses, cutaways, and minivans in the revenue fleet at a rate that will ensure no more than 40 percent of the vehicles in the fleet are beyond the FTA-defined ULBs for vehicle age or mileage. The vehicle replacement schedule presented in the 2024 update to the RTA SRTP will reflect this standard. The TAM Plan also states that the RTA will not allow more than 40 percent of its facilities to be assessed as a 1 or 2 using the five-point condition assessment scale utilized by the FTA and National Transit Database. Currently, the condition of the RTA Bus Maintenance Facility, located at 253 Elks Lane in San Luis Obispo, is a 5, or “Excellent.” RTA Triennial Performance Audit (FY 2017 – FY 2019, FY 2020 – FY 2022) All transit programs that receive TDA funding are required to undergo a Triennial Performance Audit (TPA) to determine compliance with TDA requirements. The two most recent TPAs conducted for the RTA covered FYs 2016-17 through 2018-19 and FYs 2019-20 through 2021-22.
For the FY 2016-17 through FY 2018-19 audit, the auditor found that the RTA complied with all ten applicable TDA requirements. The auditor also found that the RTA had successfully implemented two out of the four prior audit recommendations. The recommendations made in the audit included two carried over from the previous audit, and were as follows:
1. Align organizational structure to meet the RTA’s changing priorities.
2. Continue to improve the efficiency and effectiveness of the Runabout paratransit operations, including scheduling efficiencies and route optimization.
3. Enhance the Runabout customer experience through improved marketing and the deployment of a one-click/one-call technology.
4. Consider supplemental services and next-generation mobility for the Runabout.
RTA performance during the most recent TPA period (FY 2019-20 – FY 2021-22) was significantly impacted by the COVID-19 pandemic. The auditor once again found that the RTA complied with the ten applicable TDA requirements. The RTA had also implemented one of the four recommendations made in the previous audit. The TPA made two new recommendations for the RTA:
1. Evaluate the RTA’s preventable collision rates to achieve its internal standards – the RTA outlined in its most recent Strategic Business Plan that the agency intends to have a rate of preventable vehicle collision that does not exceed 1 per 100,000 miles. The RTA did not meet this internal standard during the audit period.
2025 Morro Bay SRTP - Recent Planning Documents - Appendix B LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page B-12
2. Ensure the RTA SRTP update addresses Runabout service efficiencies and business practices, including implementing a digital application system for passenger eligibility and determining the optimal amount of service consumed by subscription trip bookings.
RTA Strategic Business Plan (2018)
The RTA recently updated its Strategic Business Plan in 2018. The Strategic Business Plan covers a threeyear planning horizon (2018-2020) and presents focused goals, objectives, and performance standards to guide operations. The three overarching agency goals adopted in the plan were as follows:
1. Increase ridership – Increase ridership by attracting discretionary ridership with service improvements to both regional and subregional transit services.
2. Key performance indicators – Expand the development and use of the RTA’s key performance indicators to enhance system performance and employee performance and to improve service quality.
3. Innovation – Explore innovative opportunities to improve services for customers and potential customers.
The standards of excellence outlined in the 2018 Strategic Business Plan will be reviewed and modified as a component of the current update to the RTA SRTP.
RTA Short-Range Transit Plan (2024)
The 2024 update to the RTA SRTP builds on prior plans but incorporates significant changes driven by the COVID-19 pandemic’s lasting effects on ridership, funding, and workforce availability. Unlike the 2016 plan, this update does not propose major service expansions due to limited operating revenue.
Instead, it focuses on modest, financially constrained service improvements, including:
• Reinstating select school trippers.
• Restoring some pre-pandemic express trips.
• Streamlining Route 10 in Santa Maria to reflect funding shifts. • Adding targeted weekend service where warranted.
The capital plan prioritizes vehicle replacement and transitioning to zero-emission buses. It is also planning for a new Downtown San Luis Obispo Transit Center and a potential South County transfer point. Additionally, the plan outlines fare modernization, including adopting a contactless fare-capping system and evaluating time-based flat fares, while exploring strategies to verify discount fare eligibility and reduce fare evasion.
A Marketing Plan was also included in the RTA SRTP. It included broad marketing strategies to accomplish the following goals:
• Increase awareness about the system.
• Continue to shape a positive perception of public transportation. • Attract new riders.
2025 Morro Bay SRTP - Recent Planning Documents - Appendix B LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page B-13
The Marketing Plan included specific recommendations for each area-specific transportation provider including Morro Bay. The Plan identified target audiences such as tourists, day-trippers, service industry workers, college students, and active older adults. It recommended specific marketing tactics to increase target-specific knowledge through the creation of tourist programs including a “Morro Bay Explorer Pass” and partnership opportunities with local hotels. Overall the Plan recommended that they take on a “car-free vacation” approach to creating brand content moving forward. These ideas are explored in more detail in Appendix A of the 2024 RTA SRTP.
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-1
Appendix C
COMMUNITY OUTREACH SUMMARY
INTRODUCTION
Community outreach is essential in planning effective and equitable transportation systems. With this in mind, LSC conducted both onboard passenger surveys and an online community survey to help capture real-time feedback from riders during their journeys while also engaging broader community voices through surveymonkey.com. The following is a summary of the feedback and input received during the public outreach process.
ONBOARD PASSENGER SURVEY SUMMARY
Working closely with the City of Morro Bay and San Luis Obispo Regional Transit Authority (RTA), LSC developed a survey campaign to get feedback from passengers of Morro Bay Transit’s Fixed Route/CallA-Ride and Trolley services.
The surveys asked respondents about their ridership habits (how often they ride/where they ride to and from), their opinions on the transit system overall, and basic demographic information, including occupation and age. The onboard surveys were available in both English and Spanish and were distributed by a trained surveyor along Morro Bay Transit’s Fixed Route/Call-A-Ride service from July 17th to July 18th, 2025, and along Morro Bay Transit’s Trolley service from July 19th to July 20th, 2025.
Fixed Route/Call-A-Ride Survey Summary
The Fixed Route/Call-A-Ride survey had 20 responses (20 in English and 0 in Spanish). The summary below captures the main insights gathered through the survey and provides a high-level look at respondent feedback.
• Origin and Destination Pairs: The most commonly reported origin and destination pairs reported by respondents on Fixed Route/Call-A-Ride service were Main St. at Jamaica St going to Kennedy Way - Community/Senior Center (3 trips with this origin/destination pair), Main St. - Spencer’s Market going to Kennedy Way Community/Senior Center (2 trips with this origin/destination pair), and Morro Bay Transit Hub – City Park at Harbor St. (2 trips with this origin/destination pair), and Morro Bay Transit Hub – City Park going to Main St at Bonita St (Table C-1).
o Most common origin: Morro Bay Transit Hub – City Park on Harbor St. had the highest number of outgoing trips (7 total boardings), followed by Main St. at Jamaica St. (3 total boardings), and Kennedy Way – Community/Senior Center (2 total boardings). o Most common destination: Kennedy Way – Community/Senior Center (7 total alightings) and Main Street at Bonita St, Market St at Morro Bay Blvd – Dorn’s Breaker Café, and Main St – Spencer’s Market each received 2 total alightings. • Boarding Time: Boarding times for the Fixed Route/Call-A-Ride service were spread throughout the day, with the busiest periods between 10:00–10:59 AM and 1:00–1:59 PM (20 percent of respondents). Additional peaks occurred between 2:00–2:59 PM and 3:00–3:59 PM (15 percent of respondents each). Only a few passengers boarded earlier in the morning (15 percent combined from 6:00 AM – 9:59 AM) or after 5:00 PM (10 percent from 5:00 PM-6:59 PM) (Table C-2).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-2
Table C-1: Fixed-Route/Call-A-Ride Survey Origin/ Destinations Destination
Berwick Drive
Kennedy Way -
Community/
Senior Center
Highway 1 at
San Jacinto St
Main St at
Bonita St
Main St at
Errol St
Main St at
Sequoia St
Main StSpencers
Market
Main St at
Tahiti St
Market St at
Morro Bay
Blvd -
Dorn's Breaker
Café
Morro Bay
Transit Hub -
City Park on
Harbor St
Quintana Road
-
Albertson's
Origin
Total
OriginMorro Bay Transit Hub -
City Park on Harbor St 0 1 1 2 1 1 0 0 1 0 0 7
Kennedy Way -
Community/
Senior Center
1 0 0 0 0 0 1 0 0 0 0 2
Main St at
Jamaica St 0 3 0 0 0 0 0 0 0 0 0 3
Main St at
Sequoia St 0 0 0 0 0 0 0 0 0 1 0 1
Main Street at
Bonita Street 0 0 0 0 0 0 0 0 0 0 1 1
Main St -
Spencers Market 0 2 0 0 0 0 0 0 0 0 0 2
Market St at
Morro Bay Blvd -
Dorn's Breaker Café
0 0 0 0 0 0 0 0 1 0 0 1
Morro Bay High School 0 1 0 0 0 0 0 0 0 0 0 1
Quintana RoadAlbertson's 0 0 0 0 0 0 1 1 0 0 0 2
Destination Total 1 7 1 2 1 1 2 1 2 1 1 20
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-3
# #
6:00 AM - 6:59 AM 0 Work 3
7:00 AM - 7:59 AM 1 Returning Home 2
8:00 AM - 8:59 AM 1 Social Services 1
9:00 AM - 9:59 AM 1 Leisure/Social 6
10:00 AM-10:59PM 4 Shopping 5
11:00 AM - 11:59 AM 0 Medical/Dental 2
12:00 PM - 12:59 PM 0 University/College 0
1:00 PM - 1:59 PM 4 High School 0
2:00 PM - 2:59PM 3 Elementary/Middle School 1
3:00 PM - 3:59PM 3 Personal Business 1
4:00 PM - 4:59 PM 1 Total Responses 20
5:00 PM - 5:59 PM 2
6:00 PM - 6:59 PM 0
Total Responses 20 #
#
Total Responses 20
Total Responses 19 #
Regular Fare - $1.50 4
Reduced Fare - $0.75 1
# Free Fare 4
Yes, I'm traveling round-trip 8 Student - Free Fare 1
No, I'm going one-way. 9 Monthly Pass 4
Total Responses 17 Day Pass 2
MBT Punch Pass 1
Total Responses 17
#
Bicycled 2
Got a ride 3 #
Drove Alone 0 Saturday Fixed Route/Call-A-Ride 8
Walked 11 Sunday Fixed Route/Call-A-Ride 6
Transferred from RTA Rt 12 4 Earlier morning service 0
Transferred from RTA Rt 15 0 Later evening service 4
Total Responses 20 More frequent service 2
Bus running the opposite direction 5
Weekend Service 1
Improved bus stops 0
# Total Responses 17
Bicycle 2
Get a ride 2
Drive Alone 0 #
Walk 10 1 or less 3
Transfer to RTA Rt 12 4 1-2 days 6
Transfer to RTA Rt 15 0 3-4 days 6
Wheelchair 1 5+ days 5
Total Responses 19 Total Responses 20
21% 30%
0% 30%
5% 25%
11%
11% Frequency of Using Fixed Route/Call-A-Ride
0% %
53% 15%
29%
6%
Mode of Transportation to Complete the Trip 0%
%
20% 0%
0% 24%
12%
15% %
0% 47%
55% 35%
6%
Getting to the Bus Stop
%
10% Suggested Improvements to Fixed Route/Call-A-Ride Service 47% 6%
53% 24%
12%
%
24%
Round Trip on Fixed Route/Call-A-Ride? 6%
% 24%
85%
No, I did NOT use the Call-ARide Route Deviation
Service for this trip.
19 100%
Fare Paid for Fixed Route/Call-A-Ride Trip
Yes, I had access to a vehicle I
could have used to make this trip
instead.
Call-A-Ride Trip? 3 15%
%
Yes, I used the Call-A-Ride
Route Deviation Service for
this trip.
0 0% No, I did NOT have access to a
vehicle to make this trip. 17
5%
10%
0% Alternative Vehicle Availability
%
20% 0%
15% 5%
15% 5%
0% 10%
0% 0%
5% 10%
5% 5%
5% 30%
Table C-2: Fixed-Route/Call-A-Ride Survey Results
Boarding Time Fixed Route/Call-A-Ride Trip Purpose
% %
0% 15%
20% 25%
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-4
• Trip Purpose: The most common trip reason reported by passengers riding Morro Bay Transit’s Fixed Route/Call-A-Ride was Leisure/Social (30 percent of respondents), followed by Shopping (25 percent of respondents). Those respondents who were commuting to work trips accounted for 15 percent, and Medical/Dental appointments (10 percent) were also common.
Very few riders indicated trips for school or personal business (Table C-2). • Call-A-Ride Usage: None of the respondents reported using the Call-A-Ride route deviation service for their trip (Table C-2).
• Vehicle Access: Only 15 percent of respondents had access to a personal vehicle they could have used instead; 85 percent did not, highlighting the importance of the service for those without alternative transportation (Table C-2).
• Fare Payment: Fare payment reported by respondents was primarily split among Regular Fare ($1.50), Free Fare, and Monthly Pass—each accounting for 24 percent of riders. A small number paid Reduced Fare ($0.75) (6 percent), the MBT Punch Pass (6 percent), Summer Youth Ride Free Fare (6 percent), or used Day Passes (12 percent) (Table C-2). • Round Trip Use: Respondents were evenly split, with 53 percent making one-way trips and 47 percent traveling round-trip (Table C-2).
• Getting to the Bus Stop: A majority of respondents (55 percent) walked to their boarding location. Those respondents, 20 percent transferred from RTA Route 12, while smaller shares biked (10 percent) or got a ride (15 percent) (Table C-2). • Mode of Travel to Complete Trip: Just over half of riders (53 percent) also walked to their final destination. 21 percent transferred to RTA Route 12, while others biked, got a ride, or used a wheelchair (Table C-2).
• Frequency of Use: Respondents reported riding frequency for Morro Bay Transit’s Fixed Route/Call-A-Ride was varied, with 30 percent using the service 1–2 days per week, 30 percent riding 3–4 days per week, 25 percent using the service more than five days per week, and 15 percent were infrequent or first-time riders (Table C-2). • Suggested Fixed Route/Call-A-Ride Improvements: Survey respondents identified weekend service expansion as the most desired improvement. Nearly half (47 percent) of respondents expressed interest in adding Saturday service, while 35 percent requested Sunday service.
Other suggestions included adding a bus running in the opposite direction (29 percent of respondents) and extending service into the evening hours (24 percent of respondents). A smaller number of respondents asked for more frequent service (12 percent) (Table C-2). • Transit Information Sources: Respondents most commonly reported receiving information about Morro Bay Transit’s transit services through social media (39 percent) and on the website (39 percent), followed by email newsletters (17 percent) and printed mailers (17 percent). Only one person cited community events (6 percent), and two mentioned newspapers (11 percent) (Table C-3).
• Language Spoken by Respondents: In terms of language, 20 percent of respondents indicated they speak more than one language, while the remaining 80 percent reported speaking only one language (Table C-3).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-5
# #
Email Newsletter 3 Yes, I speak more than one language. 4 Printed Mailer or Letter 3 No, I only speak one language. 16 Community Events 1 Prefer not to answer 0
Social Media 7 Total Responses 20
Newspaper 2
City Website 7
Total Responses 18
#
17 or younger 5
18-25 2
26-40 4
41-60 0
61-75 6
76-90 3
91+ 0
Prefer not to answer 0
Total Responses 20
0%
0%
0%
30%
15%
25%
10%
20%
Age
%
6% 0%
39%
11%
39%
% %
17% 20%
17% 80%
Table C-3: Fixed-Route/Call-A-Ride Survey Results
Receiving Information about Transit Services Bilingual or Multilingual?
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-6
• Age: Those respondents who reported being older, from ages 61-75 (30 percent) or 76-90 (15 percent), accounted for 45 percent of total responses. Those who reported being younger, including those who were 17 or younger (25 percent) or 18-25 years old (10 percent) accounted for 35 percent of respondents. Adults aged 26-40 accounted for 20 percent of respondents (Table C-3).
• Respondent Rating of Fixed Route/Call-A-Ride Services: Respondents rated Morro Bay Transit’s Fixed Route/Call-A-Ride services across most categories. On a 1 to 5 scale (with 1 being “Poor” and 5 being “Excellent”), the highest weighted marks were given for Overall Service (4.70), Safety/Security (4.65), Driver Courtesy (4.60), On-Time Performance (4.60), Travel Time (4.56), and Vehicle Cleanliness (4.55). Ratings for Ease of Transfers/Connections (4.37) and Service Frequency (4.35) also indicate a strong level of satisfaction. Areas with lower scores included Availability of Information (3.95) and Bus Stop Amenities (3.95), suggesting opportunities for improvement in rider communication and physical infrastructure (Table C-4).
• Open-ended Feedback/Comments: Fixed Route and Call-A-Ride respondents, the most common feedback was positive comments about bus drivers (23 percent). Several respondents (15 percent each) noted that no improvements were needed, but others highlighted requests for weekend fixed-route or weekday trolley service, better transfer connections to RTA, and more flexible Call-A-Ride service in terms of hours or service area.
Smaller shares of feedback (8 percent each) called for improvements to bus stop information, signage, and bike racks on buses (Figure C-1).
Safety/
Security
Driver
Courtesy
On-Time
Performance
Vehicle
Cleanliness Value of Fare
Availability
of
Information
Span of
Service
Weighted
Average
4.65 4.60 4.60 4.55 4.55 3.95 4.15
Service
Frequency Travel Time
Bus Stop
Amenities
Bus Stop
locations
Ease of
Transfers/
Connections
Overall
Service
Total
Responses
Weighted
Average
4.35 4.56 3.95 4.10 4.37 4.70 20
Table C-4: Respondent Rating of Fixed-Route/Call-A-Ride Services Note: Respondents were asked to rate each Trolley Service category on a scale of 1 (Poor) to 5 (Excellent). A weighted average of all responses is shown above.
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-7
Downtown and North Trolley Survey Summary
The Downtown and North Trolley survey had a total of 40 responses (40 in English and 0 in Spanish). The summary below captures the main insights gathered through the survey and provides a high-level look at respondent feedback.
• Origin and Destination Pairs: The most commonly reported origin and destination pairs reported by respondents (Table C-5).
o Most common origin: Morro Strand State Beach (9 trips), followed by Main at Elena / Spencer's Market (6 trips) and Morro Bay State Park (4 trips). o Most common destination: Downtown and Embarcadero at Giant Chessboard tied with 10 trips each, followed by Morro Bay State Park (5 trips). • Residence of Respondents: Respondents represented a mix of Morro Bay residents and visitors, with nearly three-quarters (73 percent) visiting from outside San Luis Obispo County (Table C-6). Those who live in Morro Bay accounted for 18 percent of respondents, with 15 percent living in Morro Bay full-time and three percent living in Morro Bay part-time. • Age: Riders represented a wide range of age groups. The largest share (35 percent) was between ages 26 and 40, followed by 25 percent ages 41–60, and 20 percent ages 17 or younger (Table C-6).
• Trolley Use: The majority of trips (94 percent) were round-trip (Table C-6). • Mode of Travel Before/After Trip: Most riders (87 percent) got to the trolley stop to board the trolley by walking, and over three-quarters (76 percent) continued their trips on foot, once they got off the trolley (Table C-6).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-8
Downtown
Embarcadero
at Giant
Chessboard
Main at Elena
/ Spencer's
Market
Market at
Morro Bay
Blvd (Dorn's
Breaker Café)
Morro Bay
Library
Morro Bay
State Park
Morro Strand
State Beach Wharf Origin Total
Downtown 3 0 0 0 0 0 0 0 3
Embarcadero at
Giant Chessboard 0 1 0 0 0 2 0 0 3
Main at Elena /
Spencer's Market 2 0 0 0 0 2 1 1 6
Market at Morro
Bay Blvd (Dorn's
Breaker Café)
0 0 2 2 0 0 0 0 4
Morro Bay 0 2 0 0 0 0 0 0 2
Morro Bay State
Park 1 2 0 0 0 1 0 0 4
Morro Bay State
Park Campground 0 1 0 0 0 0 0 0 1
Morro Bay Transit 0 2 0 0 0 0 0 0 2
Morro Strand State
Beach 4 2 0 0 3 0 0 0 9
Destination Total 10 10 2 2 3 5 1 1 34
Destination
Origin
Table C-5: Trolley Survey Origin/Destinations
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-9
# #
10:00 AM - 10:59 AM 0 Bicycled 1
11:00 AM - 11:59 AM 0 Drove Alone 3
12:00 PM - 12:59 PM 8 Walked 34
1:00 PM - 1:59 PM 21 Transferred from MBT 1
2:00 PM - 2:59 PM 2 Transferred from RTA Rt 12 0
3:00 PM - 3:59 PM 6 Transferred from RTA Rt 15 0
4:00 PM - 4:59 PM 3 Total Responses 39
Total Responses 40
#
# Bicycle 1
Yes, I'm traveling round-trip 30 Drive Alone 5
No, I'm going one-way. 2 Walk 29
Total Responses 32 Get a ride 3
Transfer to RTA Rt 12 0
Transfer to RTA Rt 15 0
# Total Responses 38
Work 1
Shopping 11
Social/Recreation 18 #
Restaurant/Bar 11 First time 22
Sightseeing 15 1 or less 13
Personal Business 2 1-2 days 2
Total Responses 40 3-4 days 1
5+ days 1
Total Responses 39
#
Yes, Full-Time Resident 6
Yes, Part-Time Resident 1 #
No, Visitor from within SLO County 4 17 or younger 8
No, Visitor from outside SLO County 29 18-25 4
Total Responses 40 26-40 14
41-60 10
61-75 3
# 76-90 1
Email Newsletter 4 91+ 0
Printed Mailer or Letter 5 Prefer not to answer 0
Community Events 4 Total Responses 40
Social Media 22
Newspaper 4
Website 17 #
Total Responses 38 Friend/Family Member 11
Saw Trolley or Trolley Stop 14
Flyer 9
# Ridden Trolley Before 3
Earlier Saturday Service 5 Total Responses 37
Earlier Sunday Service 6
Later Sunday Service 12
Later Saturday Service 10
Weekday Trolley Service 1
More routes/extended service area 6
Improved trolley stops 2
Connections to RTA 3
More Frequent Services 0
Total Responses 24
0%
25%
8%
13%
25%
50%
42%
4%
38%
Suggested Improvements to Trolley Service 24%
% 8%
21%
58%
11% How Respondent Learned about Trolley
45% %
30%
11% 0%
13% 0%
11%
35%
25%
Receiving Information about Transit Services 8%
% 3%
3% %
10% 20%
73% 10%
3%
Resident of Morro Bay
%
15% Respondent Age
38% 33%
5% 5%
3%
28% Frequency of Using Trolley
45% %
28% 56%
0%
Trolley Trip Purpose 0%
%
3%
94% 13%
6% 76%
8%
Mode of Transportation to Complete the Trip
Round Trip? %
% 3%
15% 0%
8%
0% 8%
20% 87%
53% 3%
Table C-6: Trolley Survey Results
Boarding Time Getting to the Trolley
% %
0% 3%
5% 0%
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-10
• Trip Purpose: The most common trip purposes included social or recreational activities (45 percent), sightseeing (38 percent), and dining at restaurants or bars (28 percent) (Table C-6). • Travel Time and Frequency: The highest boarding period was between 1:00 and 1:59 PM (53 percent), followed by 12:00–12:59 PM (20 percent) and 3:00–3:59 PM (15 percent) (Table C6). • Frequency of Trolley Ridership: Over half of riders (56 percent) were first-time trolley users, while a third reported using the trolley once or less per year (Table C-6). • Transit Information Sources: Social media (58 percent) and the website (45 percent) were the most common ways respondents received information about transit services (Table C-6). • How Riders Learned About Trolley Services: Respondents learned about the trolley through either seeing a trolley stop sign or the trolley (38 percent), through word-of-mouth from friends or family (30 percent), or by reading a flyer (24 percent) (Table C-6). • Trolley Suggested Improvements: Respondents suggested extended weekend service hours, with 50 percent of suggesting later service on Sundays and 42 percent of Saturdays. Additional service improvement suggestions included weekday trolley service (4 percent), expanded routes (25 percent), and improved connections to regional transit (Table C-6). • Respondent Rating of Trolley Services: Respondents rated the trolley service very positively across all categories. On a 1 to 5 scale (with 1 being “Poor” and 5 being “Excellent”), the highest ratings were for Vehicle Cleanliness (5.00), On-Time Performance (4.95), and Overall Service (4.95). Driver Courtesy (4.93) and Value of Fare (4.90) also received high marks. The lowest ratings were for Availability of Information (4.70) and Span of Service (4.75). Across all service quality and bus stop-related categories, scores remained consistently above 4.70, indicating a high level of rider satisfaction (Table C-7). • Trolley Public Feedback (Open-Ended): Most trolley survey respondents were highly satisfied with the service, with 60 percent stating that no improvements were needed. Among those suggesting changes, the most common requests included weekday service (15 percent) and amenity improvements (15 percent). Smaller shares (5 percent each) called for earlier morning service, safety improvements, bus stop enhancements, or better transfer connections to RTA.(Figure C-2).
Table C-7: Respondent Rating of Trolley Services
Safety/
Security
Driver
Courtesy
On-Time
Performance
Vehicle
Cleanliness Value of Fare
Availability of
Information
Span of
Service
Weighted
Average
4.85 4.93 4.95 5 4.9 4.7 4.75
Service
Frequency Travel Time
Bus Stop
Amenities
Bus Stop
locations
Ease of
Transfers/
Connections
Overall
Service
Total
Responses
Weighted
Average
4.72 4.88 4.72 4.74 4.84 4.95 40
Note: Respondents were asked to rate each Trolley Service category on a scale of 1 (Poor) to 5 (Excellent). A weighted average of all responses is shown above.
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-11
ONLINE COMMUNITY SURVEY
The online community survey conducted for the 2025 Morro Bay Transit Short Range Transit Plan (SRTP) was conducted over several weeks in July and early August 2025. The survey instrument was a 15- question survey made available online in English and Spanish. To inform the public of the survey effort, flyers were posted on buses and near some bus stops, posts advertising the survey were made on Facebook, Nextdoor, and on media websites, including Morro Bay Life. In addition, the survey was included in the City Manager’s monthly update on the City’s website and emailed to the City Manager Update subscriber list. The online community survey was also posted to the Hot Topics section of the City website and a banner was added to the RTA and Morro Bay Transit websites. The survey was targeted at all residents of the City of Morro Bay and the wider San Luis Obispo County region, including those who do not use public transit on a regular basis. The survey received a total of 113 responses.
Demographics
Age
Participants were asked to provide their age (Figure C-3). The survey received only 2 percent of responses from individuals 26 years old or younger and only 6 percent from respondents who were ages 78-95. The majority of respondents reported being between the ages of 59 and 77 (58 percent). Those who were between ages 27-42 accounted for 14 percent of respondents, and those who reported being between 43-58 years old accounted for 20 percent of respondents.
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-12
Income
Participants were asked about their income (Figure C-4). Over one-third (34 percent) preferred not to share their income. Among those who did, the largest group (19 percent) reported earning between $20,000 and $49,999, while 13 percent each reported incomes of $100,000–$129,999 and $150,000 or more. Smaller percentages reported earnings in other ranges.
Household Vehicle Access
Participants were asked how many working vehicles their household had access to, as a lack of vehicle access is a significant factor contributing to transit dependence (Figure C-5).
Only 5 percent of responses reported no household access to vehicles. The majority of participants reported having access to at least one or more vehicles in their households (95 percent combined).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-13
Transit Use
Transit Use
Participants were asked if they use public transit or specialized transportation services, such as paratransit, to meet some or all of their travel needs. A total of 112 responses were received, with half (50 percent) of participants reporting using public transit, while the other half (50 percent) of participants indicated that they did not use these services.
Respondent Reasons Not to Use Public Transit
Participants who answered No to using public transit were asked why they did not use public transit (Figure C-6). The top reasons people reported for not using public transit were that they have their own transportation (66 percent), transit does not go where they need to go (34 percent), and it takes too much time (32 percent). Additional common barriers included not knowing how to use the system (27 percent) and limited hours (25 percent), frequency of service (21 percent), or not knowing about public transit services (21 percent).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-14
Respondent Reasons For Public Transit Use
Participants who answered Yes to using public transit were asked about their trip purposes using public transit (Figure C-7). The most common reasons were recreation or social activities (73 percent), personal business (47 percent), and shopping (37 percent). Other reasons included medical appointments (31 percent), work (29 percent), and school (10 percent).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-15
Use of Regional Transit Provider Services
Participants who indicated that they use transit services were asked to identify which services they use and were allowed to select any or all of the services they used. There was also an option for participants to select if they had not heard of any of these providers (Figure C-8).
Among those who responded, the most frequently used service was RTA Routes 9, 10, 12, and 15, selected by 59 percent. Other top services included Morro Bay Transit Fixed Route (43 percent), Morro Bay Transit Trolley (39 percent), and Amtrak (27 percent). SLO Transit was used by 25 percent, while SeniorGo! was selected by 20 percent.
Frequency of Transit Use
Participants who indicated that they use transit services were asked about how frequently they used public transit services (Figure C-9). Most respondents indicated that they ride Morro Bay Transit services occasionally (55 percent). Smaller shares reported riding 2–5 times per month (16 percent), 2–5 times per week (6 percent), or daily (4 percent). Those participants who reported that they never use these services accounted for 20 percent.
Transit Use by Day of the Week
Participants who indicated that they use transit services were asked about which days of the week they rode either Morro Bay Transit’s Fixed Route/Call-A-Ride service (which operates Monday-Friday) or Trolley services (which operate Saturday-Sunday) (Figure C-10). The most reported day is Friday (62 percent), followed by Monday and Thursday (49 percent each). Slightly fewer reported riding on Tuesday and Wednesday (46 percent each), Saturday (44 percent), and Sunday (36 percent).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page 204 of 271 Page C-16
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-17
Opinion on Transit Services
Improvements to Encourage Morro Bay Transit Use
Respondents were asked how likely they would be to use Morro Bay public transit more often if certain improvements were made, using a scale of 1 (definitely would not) to 4 (definitely would) (Figure C-11).
The improvements that received the strongest positive responses included service to additional destinations (46 percent “definitely would”), better connections to other transit services (42 percent “definitely would”), and more frequent weekend service (27 percent “definitely would”), with many respondents also selecting “would.”
Other improvements that received notable support were bus stops closer to home (31 percent “definitely would”), better information (29 percent “definitely would”), later weekend service (31 percent “definitely would”), and more frequent weekday service (25 percent “definitely would”).
Improvements such as earlier weekday service (17 percent “definitely would”) and earlier weekend service (20 percent “definitely would”) had lower support, with more respondents indicating “would not” or “definitely would not.”
Table 1 summarizes the weighted averages of this question, showing that the improvements that generated the highest likelihood of increased use included service to additional destinations (weighted average 3.2), better connections to other transit services (3.04), and more frequent weekend service (2.93).
Other improvements, such as bus stops closer to home (2.96), better information (2.91), and later weekend service (2.91), also scored relatively high. Changes to earlier weekday service (2.58) and earlier weekend service (2.64) had the lowest weighted averages, indicating these were less likely to influence increased transit use compared to other improvements.
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-18
Sources of Community Information
Participants were asked where they get information about their local community (Figure C-12). The most common sources of local community information were the Morro Bay City website (56 percent) and NextDoor (48 percent). Social media platforms like Facebook (38 percent) and Instagram (15 percent) were also used, while online newspapers (25 percent) and printed newspapers (36 percent) reached smaller shares. Very few respondents (2 percent) reported using X (formerly Twitter).
Table C-8: Improvements that would Encourage More MBT Service Use - Weighted Average Better
information
Bus stops closer
to home
Earlier weekday
service
Earlier weekend
service
Improved bus
stops (shelters/
benches)
Later weekday
service
Weighted
Average
2.91 2.96 2.58 2.64 2.73 2.86
Later weekend
service
More frequent
weekday service
More frequent
weekend service
Service to
additional
destinations
Better
connections to
other transit
services
Total Responses
Weighted
Average
2.91 2.88 2.93 3.2 3.04 62
Note: Weighted average calculated on a scale from a scale of 1 (Definitely Would Not) - 4 ( Definitely Would).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-19
Interest in Microtransit
Respondents were asked about their interest in using Microtransit. Of the 65 respondents, 49 percent indicated they would be interested, 12 percent were not interested, and 38 percent needed more information before deciding.
Those who answered No, they were NOT interested in microtransit were asked why they were not interested in microtransit (Figure C-13). Among respondents who were not interested in Microtransit, 36 percent indicated they needed more information, while 18 percent cited inconvenient scheduling, having their own transportation, or safety concerns. Smaller shares noted a disability that makes transit use difficult (9 percent) or expressed general support for Microtransit despite not being interested (9 percent).
2025 Morro Bay SRTP - Community Outreach Summary - Appendix C LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page C-20
Open-Ended Comments and Feedback
Survey Participants were given the ability to leave open-ended comments and feedback about Morro Bay Transit. For ease of analysis, these were categorized based on content (Figure C-14). The survey results include:
• Respondents who request expanding the service area (20 percent), particularly for those who are trying to go to San Luis Obispo, Cayucos, and Los Osos. • Respondents requesting earlier and later service hours (14 percent), including for those traveling to the airport and for students who may wish to use the bus service to get to school, but have a zero period or wish to attend after-school extracurricular activities. • Requests for improving information about available services (14 percent), including adding route schedules to bus stops and making information available for passengers with disabilities that would make Fixed Bus/Trolley use more difficult.
• Other frequently mentioned needs include restarting the MBT Dial-A-RIDE service and making transfers to RTA Routes 12 and 15 easier (10 percent each).
2025 Morro Bay SRTP - Boarding and Alighting - Appendix D LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page D-1
Appendix D
BOARDING AND ALIGHTING MAPS
FRONT ST
HWY 41
MORRO BAY BLVD
SANDALWOOD AVE
PINEY WAY
ELENA ST
SEQUOIA ST
SAN JACINTO ST
KENNEDY WAY
IRONWOOD AVE
GREENWOOD AVE
LITTLE MORRO CREEK RD
AVALON ST
MORRO AVE
MAIN ST
MONTEREY AVE
CORAL ST
BALBOA ST
LAS TUNAS ST
ATASCADERO RD
NAPA AVE
SHASTA AV
M
E
ARKET AVE
PACIFIC ST
HARBOR ST
MARINA ST
BEACHCOMBER DR
SCOTT ST
EMBARCADERO RD
MAIN ST
QUINTANA RD
NAGANO RD
COLEMAN DR
Main at Spencer's
Market
Main at
Jamaica
Main at Errol
Main at
Bonita
Main Street at
Elena
Street
Atascadero at
Morro Dunes
Morro Strand
State Park
Campground
Atascadero at
300 Block
(Motel 6)
City Park at Harbor
730 Quintana
Road at
Albertsons
490 Quintana
Road near
FitnessWorks
Piney Way
at Anchor
Main at
Sequoia
Main at
Sandalwood
at San Jacinto (beach
access)
Beachcomber at Mindoro
(stairs to campground)
Atascadero at 200 Block
(Teen Center; High
School)
Market at
Morro Bay Blvd.
(Centennial Stairway)
Emabarcadero
at Giant
Chessboard
Morro
Bay Blvd
at Main
California State Parks, Esri, TomTom, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, US Census Bureau, USDA, USFWS
Figure D-1
Morro Bay Transit Fixed-Route Avg. Daily Boardings/Alightings Boardings
Alightings
1.4 0.5
0.6 0.9
16 9.4
0.2 0
1 2.2
0.5 2
1.5 1.5
1.8 1.7
3.8 4.8
3 2.8
0.7 1.5
5.9 6.3
2 3.4
0.2 1.5
0.7 3
0.5 0.9
0.3 0.4
0.8 1.8
Unknown
Highway 1 & San Jacinto
Community /Senior Center
Kennedy Way
2025 Morro Bay SRTP - Boarding and Alighting - Appendix D LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page D-2
FRONT
ST
MORRO BAY BLVD
PI
N
E
Y
W
AY
KENNEDY WAY
M
O
R
R
O
AV
E
M
O
N
T
E
R
E
Y
AV
E
BALBOA ST
LAS TUNAS ST
NA
PA
AV
E
S
H
A
S
TA
AV
M
E
A
R
K
E
T
AV
E
PACIFIC ST
HARBOR ST
MARINA ST
Morro Bay
Blvd at Monterey
Morro Bay
State Park
Campground
City Park
at Harbor
730 Quintana
Road at
Albertsons
Piney Way
at Anchor
Market at
Morro Bay Blvd.
(Centennial Stairway)
Emabarcadero
at Giant
Chessboard
Morro Bay
Blvd at Main
Morro Bay Blvd
at Napa SW
Esri Community Maps Contributors, California State Parks, Esri, TomTom, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, US Census Bureau, USDA, USFWS Figure D-2
Downtown Route Trolley Avg. Daily Boardings/Alightings
2 2
7 6
19 14
6 4
Boardings
Alightings
2025 Morro Bay SRTP - Boarding and Alighting - Appendix D LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page D-3
FRONT ST
HWY 41
MORRO BAY BLVD
SANDALWOOD AVE
PINEY WAY
ELENA ST
SEQUOIA ST
SAN JACINTO ST
KENNEDY WAY
IRONWOOD AVE
GREENWOOD AVE
LITTLE MORRO CREEK RD
AVALON ST
MORRO AVE
MAIN ST
MONTEREY AVE
CORAL ST
BALBOA ST
LAS TUNAS ST
ATASCADERO RD
NAPA AVE
SHASTA AV
M
E
ARKET AVE
PACIFIC ST
HARBOR ST
MARINA ST
BEACHCOMBER DR
SCOTT ST
EMBARCADERO RD
MAIN ST
QUINTANA RD
NAGANO RD
COLEMAN DR
Main at Spencer's
Market
Main at
Jamaica
Main at Errol
Main at
Bonita
Main Street at
Elena
Street
Atascadero at
Morro Dunes
Morro Strand
State Park
Campground
Atascadero at
300 Block
(Motel 6)
City Park at Harbor
730 Quintana
Road at
Albertsons
490 Quintana
Road near
FitnessWorks
Piney Way
at Anchor
Main at
Sequoia
Main at
Sandalwood
at San Jacinto (beach
access)
Beachcomber at Mindoro
(stairs to campground)
Atascadero at 200 Block
(Teen Center; High
School)
Market at
Morro Bay Blvd.
(Centennial Stairway)
Emabarcadero
at Giant
Chessboard
Morro
Bay Blvd
at Main
California State Parks, Esri, TomTom, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, US Census Bureau, USDA, USFWS
Figure D-3
North Route Trolley Avg. Daily Boardings/Alightings
Boardings
Alightings
1 1
5 5
23 18
35 36
2025 Morro Bay SRTP - Boarding and Alighting - Appendix D LSC Transportation Consultants, Inc.
San Luis Obispo RTA Page D-4
Prepared By: Dept Review: ______
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: March 19, 2026 FROM: John Craig, City Manager
Brian Stack, City Attorney
SUBJECT: Recommendation to Approve a Purchase and Sale Agreement with the Cayucos Sanitary District for the Jointly Owned Wastewater Treatment Plant Property Located at 160/180 Atascadero Road and 1700 Embarcadero, take related actions and find no further environmental review is required under CEQA
RECOMMENDED ACTIONS
1. Adopt Resolution No. 17-26 approving a Purchase and Sale Agreement (Agreement) and Budget Resolution between the City of Morro Bay (City) and Cayucos Sanitary District (CSD) for the purchase by the City of the CSD portion of the jointly owned Former Wastewater Treatment Plant Property (WWTP) located at 160/180 Atascadero Road and 1700 Embarcadero (Property) and other jointly owned assets, in substantially the form attached, subject to review and approval by the City Attorney as to form and legal effect.
2. Authorize the City Manager to execute the Agreement and related escrow documents, and to negotiate and execute non-substantive amendments consistent with the terms approved by the City Council, subject to review and approval by the City Attorney as to form and legal effect; and
3. Authorize the City Manager and City Attorney to undertake due diligence activities during the due diligence period consistent with City procurement requirements and within available appropriations.
4. Find that no further environmental review is required pursuant to State CEQA Guidelines section 15162.
ALTERNATIVES
The City Council could: (a) decline to approve the Agreement; (b) direct staff to negotiate different terms; or (c) continue the item to a future meeting for additional information.
FISCAL IMPACT
The Agreement includes a purchase price of $3,867,800 for which there is a recommended budget amendment (Attachment 2). The acquired interests will initially be Sewer Fund capital assets, and the purchase will therefore be recorded in the Sewer Capital Fund. Because this property negotiation was not complete at the time of budget development, this purchase was not included in the adopted budget. Consistent with the City’s established budgetary practices, the purchase will require a threepart budget amendment to add budget for the (1) transfer out of cash from the Sewer Operating Fund, AGENDA NO: 8.b
MEETING DATE: March 24, 2026
(2) transfer in of cash in the Sewer Capital Fund, and (3) create the Sewer Capital Fund expenditure budget. Once future property use is determined, City Council may exercise the option to have the General Fund purchase the applicable property interests from the Sewer Fund at fair market value, as determined by an independent appraisal or appropriate valuation method, ensuring that the transaction is conducted in accordance with applicable financial and government accounting standards. The reallocation of assets would allow the General Fund to directly manage and utilize the property in support of governmental services and allow the Sewer fund to reinvest proceeds in its core operations and capital needs. The City will incur due diligence, escrow, and related consultant costs during the due diligence period. Preliminary estimated costs during the due diligence period are shown below. These costs are expected to be funded by current year appropriations in the adopted budget and fall within the authority of the City Manager to expend.
Cost Item Amount
Purchase Price (due at Closing) $3,867,800
Estimated Due Diligence Costs
Environmental Due Diligence (qualitative
environmental assessment and potential
limited testing) $30,000
Survey, Title and Escrow Fees (CLTA) $5,000
Staff will return to the City Council with a budget amendment if needed once refined cost estimates are available.
BACKGROUND
The Property is currently jointly owned by the City (60%) and the CSD (40%) and is the site of the former WWTP originally constructed by the CSD and former Morro Bay Sanitary District in 1953 to treat both communities’ wastewater pursuant to a Joint Powers Agreement (JPA). The WWTP was last upgraded in 1984 by the CSD and the City as successor to the Morro Bay Sanitary District. In 2013, the City and CSD initiated separate wastewater treatment facility projects outside of the coastal flood zone to replace the WWTP and meet updated waste discharge requirements. The WWTP ceased treatment operations following the successful completion of the City’s Water Reclamation Facility (WRF) in February 2023 and the CSD’s Water Resource Recovery Facility in September 2021.
The WRF’s Coastal Development Permit (CDP) from the California Coast Commission includes a special condition to decommission and demolish the WWTP within one year of the WRF beginning operations. However, because the CSD was not a party to the CDP, the City has been unable to satisfy the CDP special condition until agreement on a path forward could be reached with the CSD.
The JPA, last amended in 1982, does not address what happens when the WWTP is no longer used by the parties for wastewater treatment. As long as the CSD is a joint owner, their approval would be required to move forward with the demolition and decommissioning of the WWTP and any future uses of the Property. In June 2025, the City retained Anchor QEA to begin preparing design plans for the
demolition and decommissioning project so the City could be ready to satisfy the CDP special condition once an agreement was reached with the CSD.
In addition to the WWTP, the Property includes the location of the former concrete plant (demolished in 2025), a portion of the Morro Dunes RV park and a portion of public beach. In between the former concrete plant and WWTP is a parcel wholly owned by the City and currently used as a maintenance yard. See figure below.
DISCUSSION
Overview
Approval of the Agreement would allow the City to become the sole owner of the Property (and all other jointly owned assets) and is expected to provide significant benefit to the City and its residents, including by simplifying the process for the demolition and decommissioning of the WWTP and potential future reuse of the Property for visitor serving and coastal uses. Over the long run, it is expected that future revenues would cover the initial acquisition and demolition costs and hopefully become a net revenue source for the City. In addition, the acquisition would provide the City and its residents with greater control regarding future reuse of this important legacy site.
In order to mitigate the potential risk of increased exposure for unknown hazardous waste at the site, the Agreement allows the City to conduct a qualitative environmental assessment prior to closing.
The assessment will provide insight into the potential for contamination at the Property, especially as it relates to future reuse of the site. In the event hazardous waste is found, the Agreement provides an opportunity for both parties to terminate prior to the end of the due diligence period.
Key Agreement Terms
Property: Former WWTP and related sites, located at 160/180 Atascadero Road and 1700 Embarcadero in Morro Bay, California (APNs 066-331-033 and 034), as well as other jointly owned assets including sewer lines and ocean outfall.
Purchase Price: $3,867,800 (40% of appraisal amount for Property assuming WWTP zoned for Visitor Serving Commercial and hypothetical vacant condition – other jointly owned assets being acquired like pipeline infrastructure not included in appraisal amount). Escrow Period: Ninety days; due diligence includes title review, property inspections and qualitative environmental assessment.
Escrow and Title Costs: City has requested (subject to CSD Board approval) cost of standard title policy and escrow charges to be split 50/50 by the City and CSD. Termination of JPA: Effective upon close of escrow, there would be no more jointly owned assets and the JPA would be deemed terminated and of no further force or effect. CSD approval would no longer be required to proceed with decommissioning and demolition of the WWTP or future reuse of the site.
Due Diligence Work Program
If the Agreement is approved, staff will proceed with completing due diligence. Due diligence is expected to primarily consist of title review and a qualitative environmental assessment.
The purpose of the qualitative environmental assessment is to evaluate whether any hazardous waste related issues may be implicated during future redevelopment of the Property. The qualitative environmental assessment may include limited testing, such as soil, vapor and groundwater sampling, following consultation with and concurrence by the CSD in the manner provided for in the Agreement. Any test results would be provided to the CSD within 24 hours of receipt.
Staff would return to City Council prior to the end of the due diligence period to confirm whether to proceed with closing.
Key Dates
Below is a summary of key tentative dates.
City Council vote: March 24, 2026
CSD Board vote: March 19, 2026 (tentative)
Due diligence starts: Immediately upon full execution of purchase agreement City Council review of due diligence: June 9, 2026 (tentative) Closing: on or before June 22, 2026
Post Closing
Once the City has full ownership of the Property, archeological testing at the site will be conducted prior to wrapping up the design phase of the WWTP Decommissioning and Demolition Project.
Following this, staff will take the resulting plans and specifications out to bid to seek a contractor to perform the demolition work.
As for future reuse options at the site, they will be considered through the Waterfront Master Plan update currently underway which proposes to expand the boundary to include the WWTP property.
The Waterfront Master Plan update process will consider different design alternatives with the Waterfront Master Plan Advisory Committee (WMPAC) and will be available for review by the public through WMPAC meetings, public workshops, and a community-wide survey. The final Waterfront Master Plan will have a preferred concept plan that incorporates the WWTP into the Morro Bay Waterfront consistent with the existing Zoning and Land Use designations.
ENVIRONMENTAL
The City’s proposed purchase of the Property is consistent with the WRF Final Environmental Impact Report (EIR) and no further environmental review is required. Pursuant to State CEQA guidelines, an EIR for the WRF project was prepared, released for a 45-day public review process on April 3, 2018 to May 18, 2018 and certified by the City Council on August 14, 2018 (State Clearinghouse number 2016081027). The proposed purchase would help facilitate the demolition and decommission of the WWTP which was a project component considered through the EIR review referenced above. State CEQA Guidelines Section 15162 provides that no further review is required under CEQA when there are no substantial changes in the project, there are no substantial changes with respect to the circumstances under which the project is undertaken, and there is no new information of substantial importance, which was not known and could not have been known at the time of certification of the EIR. The proposed purchase is consistent with and helps implement the WRP project and is consistent with the analysis presented in the EIR and therefore, pursuant to State CEQA Guidelines Section 15162, no subsequent analysis is required.
CONCLUSION
Approval of the Agreement provides a structured pathway for the City to acquire the Property subject to evaluation of the Property and, if appropriate, proceed to closing on or before June 22, 2026. Staff recommends approval of the Agreement and acquiring the Property subject to due diligence as the preferred path to move forward with the demolition and decommissioning of the WWTP and potential future reuse of the site.
ATTACHMENT(S)
1. Draft Purchase and Sale Agreement
2. Resolution No. 17-26 Approving Purchase and Sale Agreement and Budget Amendment
3. Joint Powers Agreement
4. Link to Appraisal Report
-1-
PURCHASE AND SALE AGREEMENT
This PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of January __, 2026 (the “Effective Date”), by and between the Cayucos Sanitary District, a political subdivision of the State of California (“District” or “Seller”), and the City of Morro Bay, a California municipal corporation (“City” or “Buyer”). District and City are sometimes individually referred to as a “Party,” and collectively referred to as the “Parties” herein.
RECITALS
A. District and City jointly own a wastewater treatment plant and related assets (“Treatment Plant”), including an ocean outfall, on-site equipment and common trunk line (collectively with the Treatment Plant, the “Assets”), as more specifically described below. The jointly owned real property associated with the Treatment Plant is generally located at 160 Atascadero Road, 180 Atascadero Road, and 1700 Embarcadero within the City, designated Assessor’s Parcel Numbers (“APNs”) 066-331-033 and 066-331-034 (“Real Property”), and more particularly described in the legal description attached hereto as Exhibit “A”.
B. Pursuant to that certain Joint Powers Agreement for the Ownership, Operation and Maintenance of Wastewater Treatment Plant Facilities dated October 25, 1982 (“Joint Powers Agreement”), District currently owns a forty percent (40%) interest in the Real Property, as further described in the Joint Powers Agreement and that certain Appraisal Report authored by Central California Appraisals dated July 22, 2024 (fully incorporated herein by this reference). District also owns a forty percent (40%) interest in the jointly-owned sewer trunk main described as the 8” common trunkline beginning at manhole number 1.27 and ending as a 27” common trunkline at manhole 13.47 (“Trunk Main”) and a thirty-five percent (35%) interest in both the ocean outfall described as beginning at Latitude 35°, 22', 47” N and Longitude 120°, 51', 40" W and terminating at Latitude 35°, 23', 11" N and Longitude 120°, 52', 29" W (“Outfall”) and on-site Treatment Plant equipment (“Treatment Plant Equipment”), as described in Section 5 of the Joint Powers Agreement. The Joint Powers Agreement is attached hereto as Exhibit “D”, and the Appraisal Report is attached hereto as Exhibit “E”.
C. City desires to purchase District’s interest in the Real Property and Assets (collectively, the “Property”), and District desires to sell the Property to City.
D. City and District also desire to terminate the Joint Powers Agreement effective upon Closing of the sale of the Property, because the sole purpose of the Joint Powers Agreement is to govern the joint ownership, operation and maintenance of the Treatment Plant, and therefore following Closing, the Joint Powers Agreement will be obsolete.
E. District constructed and is the sole owner of the 18” Cayucos Sanitary District Interceptor which parallels the Trunk Main (“CSD Interceptor”). The CSD Interceptor is specifically excluded from this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, District and City agree as follows:
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1. Recitals Incorporated. The foregoing Recitals are true and correct and are incorporated herein by reference, as if fully set forth herein.
2. Acquisition.
2.1 Purchase and Sale. Seller agrees to sell the Property to Buyer, and Buyer agrees to purchase the Property from Seller, upon the terms and conditions herein set forth. As stated in the Recitals, the Property comprises the following property and assets:
(a) Seller’s entire (40%) interest in the Real Property; (b) Seller’s entire (40%) interest in the Trunk Main;
(c) Seller’s entire (35%) interest in the Treatment Plant Equipment; and (d) Seller’s entire (35%) interest in the Outfall.
2.2 Purchase Price. The purchase price of the Property is Three Million Eight Hundred Sixty-Seven Thousand Eight Hundred Dollars ($3,867,800.00) (the “Purchase Price”).
3. Escrow.
3.1 Opening of Escrow. Within three (3) days of the Effective Date, Buyer shall open escrow with First American Title Company, Attention Renee Brian, 601 Morro Bay Boulevard, Suite A, Morro Bay CA 93442, [email protected] (“Title Company” or “Escrow Holder”) by delivering a signed copy of this Agreement to the Title Company (“Escrow”). The Escrow shall be deemed opened on the date the Title Company has received an executed counterpart of this Agreement from both Buyer and Seller (“Opening of Escrow”).
3.2 Close of Escrow. The “Close of Escrow” or “Closing Date” means the date on which the grant deed conveying title to the Property to Buyer is recorded in the Official Records of San Luis Obispo County, California. The Close of Escrow shall occur on the date designated by Buyer at least ten (10) days in advance, but in no event later than ninety (90) days after the Effective Date. On or prior to the Close of Escrow, Buyer shall (i) deliver to Title Company for recording, the Grand Deed in the form attached hereto as Exhibit “B” (“Grant Deed”), duly executed by Buyer, acknowledged and in recordable form, and (ii) deliver the Purchase Price to Title Company in accordance with Section 2.2 above. Upon Seller’s receipt of the Purchase Price from Title Company, Seller shall authorize Title Company to record the Grant Deed. If the Close of Escrow has not occurred within ninety (90) days after the Effective Date of this Agreement (unless either Party shall be in default of its obligations hereunder, in which case the non-defaulting Party shall be entitled to all remedies provided for herein), Escrow and the rights and obligations of the Parties hereunder shall terminate.
4. Conditions of Title.
4.1 Title Documents. Title Company shall deliver the following documents (“Title Documents”) to Buyer within five (5) days after the Opening of Escrow: (a) a preliminary title report (“Title Report”) dated on or after the Effective Date, issued by the Title Company with
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respect to the Property; and (b) legible copies of all documents, whether recorded or unrecorded, referred to in the Title Report. After Buyer and Seller sign this Agreement, Seller will use reasonable efforts to remove any defects in title to the Property identified by the Title Company or Buyer. If any title defects have not been removed or satisfactory arrangements have not been made for their removal within fifteen (15) days after the Effective Date (“Title Cure Period”), Buyer may elect to: (i) close the purchase of the Property and take title subject to the title defects that have not been removed; or (ii) terminate this Agreement, and the Escrow and the rights and obligations of the Parties hereunder shall terminate.
4.2 [RESERVED]
5. Condition of Property.
5.1 Purchase As-Is, Where Is. Unless otherwise expressly provided herein, Buyer expressly acknowledges and agrees, and represents and warrants to Seller, that Buyer, who already owns a portion of all the Property, is purchasing the Property “AS IS, WHERE IS”, and “WITH ALL FAULTS.” Buyer is purchasing the Property after such inspection, analysis, examination and investigation Buyer cares to make and expressly without Seller’s covenant, warranty or representation as to physical condition, title, leases, rents, revenues, income, expenses, operation, entitlements, zoning or other regulation, compliance with law, suitability for particular purposes or any other matter whatsoever. Seller has no obligation to make repairs, replacements or improvements to the Property, or to pay any fees, costs or expenses related to the Property after title passes to Buyer. Buyer acknowledges and agrees that, neither Seller nor any of Seller’s agents, contractors, consultants, attorneys or representatives have made, make and specifically negate and disclaim and Buyer is not relying on any representations, warranties, promises, covenants, agreements or guaranties of any kind or character whatsoever, whether express or implied, oral or written, past, present or future, of, as to, concerning or with respect to the Property, including, but not limited to, (a) the value of the Property; (b) the income to be derived from the Property; (c) the suitability of the Property for any and all activities and uses which Buyer may conduct thereon, including the possibilities for development of the Property; (d) the habitability, marketability, merchantability, profitability or fitness for a particular purpose of the Property; (e) the manner, quality, state of repair or lack of repair of the Property; (f) the nature, quality or condition of the Property, including without limitation, soils and geology; (g) the compliance of or by the Property or its operation with any laws, rules, ordinances or regulations of any applicable governmental authority or body; (h) compliance with any environmental protection, pollution or land use laws, rules, regulations, orders or requirements, including but not limited to, Title III of the Americans with Disabilities Act of 1990, California Health and Safety Code, the Federal Water Pollution Control Act, the Federal Resource Conservation and Recovery Act, the U.S.
Environmental Protection Agency regulations at 40 CFR part 261, the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, the Resources Conservation and Recovery Act of 1976, the Clean Water Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act and the Toxic Substance Control Act, as any of the foregoing may be amended from time to time and regulations promulgated under any of the foregoing from time to time; (i) the presence or absence of Hazardous Materials, as defined in Section 6.1(e)(1), at, on, under, or adjacent to the Property; (j) the content, completeness or accuracy of the Due Diligence Materials or the Preliminary Report; (k) the conformity of the Property to past, current or future applicable zoning or building requirements; (l) deficiency of any
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drainage or undershoring; (m) that the Property may be located on or near earthquake faults; (n) the existence or non-existence of land use, zoning or building entitlements affecting the Property; (o) the land use status of the Property, including, but not limited to, general plan status, specific plan status, zoning status, subdivision status under the California Subdivision Map Act or the subdivision ordinances of the City or any other Entitlements; (p) the applicability of the Federal or California endangered species acts and the existence of any species protected thereunder; (q) any non-compliance of the Property or any improvements thereon with California Civil Code sections 895, et seq.; or (r) any other matter. Buyer further acknowledges and agrees that, having been given the opportunity to inspect the Property, particularly as already a part owner of the Property and in possession of the Property for decades, and having obtained and examined such information and documentation affecting the Property as Buyer has deemed necessary or appropriate, Buyer is relying solely on its own investigations and review, and not on any information provided or to be provided by Seller. As of the date of this Agreement, Buyer acknowledges that, as the party already in possession of the Property and the party that has constructed and maintained all Improvements thereon, (i) Buyer has conducted such surveys and inspections and (ii) Buyer has had adequate opportunity to make such inspection of the Property as Buyer has, in Buyer’s discretion, deemed necessary or advisable as a condition precedent to Buyer’s purchase of the Property and to determine the characteristics listed in this Paragraph and all other aspects of the Property.
5.2 No Obligation to Repair. Unless otherwise expressly provided herein, any reports, repairs or work related to the Property required by Buyer are the sole responsibility of Buyer, and Buyer agrees that there is no obligation on the part of Seller to make any changes, alterations or repairs to the Property or to cure any violations of law or to comply with the requirements of any insurer.
6. Conditions to Close of Escrow.
6.1 Buyer’s Conditions. Buyer’s obligation to purchase the Property is subject to the satisfaction of the following conditions for Buyer’s benefit:
(a) Title. The Title Company shall be irrevocably committed to issue a title insurance policy, together with endorsements reasonably requested by Buyer (the “Title Policy”), in the amount of the Purchase Price showing title to the Property vested in Buyer, subject to exceptions approved by Buyer.
(b) Inspections. Buyer shall have approved the results of any inspections, investigations, tests and studies of the Property, including, without limitation, investigations with regard to the environmental condition of the Property, zoning, building codes and other governmental regulations, architectural inspections, engineering tests, economic feasibility studies and soils, seismic and geologic reports. (c) Seller’s Obligations. Seller shall have timely performed all of the obligations required by this Agreement to be performed by Seller.
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(d) Seller’s Representations. All representations and warranties of Seller set forth in Section 8.1 or elsewhere in this Agreement shall be true and correct as of the Close of Escrow, as if made on such date.
(e) Limited Environmental Testing; Conditions. Buyer may, at its sole cost and expense, conduct limited environmental investigations of the Property solely to evaluate the potential presence of Hazardous Materials, subject to the following conditions:
(i) Definition. “Hazardous Materials” includes any hazardous or toxic material, substance, irritant, chemical or waste, which is (A) defined, classified, designated, listed or otherwise considered under any Environmental Law as a “hazardous waste,” “hazardous substance,” “hazardous material,” “extremely hazardous waste,” “acutely hazardous waste,” “radioactive waste,” “biohazardous waste,” “pollutant,” “toxic pollutant,” “contaminant,” “restricted hazardous waste,” “infectious waste,” “toxic substance,” or any other term or expression intended to define, list, regulate or classify substances by reason of properties harmful to health, safety or the indoor or outdoor environment, (B) toxic, ignitable, corrosive, reactive, explosive, flammable, infectious, radioactive, carcinogenic or mutagenic, and which is or becomes regulated by any local, State or federal governmental authority, (C) asbestos and asbestos containing materials, (D) an oil, petroleum, petroleum based product or petroleum additive, derived substance or breakdown product, (E) urea formaldehyde foam insulation, (F) polychlorinated biphenyls (PCBs), (G) freon and other chlorofluorocarbons, (H) any drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas or geothermal resources, (I) lead-based paint and (J) mold, rot, fungi and bacterial matter. Hazardous Materials also mean a chemical listed by the State of California as a chemical known by the State to cause cancer or reproductive toxicity pursuant to Section 25249.8 of the California Health and Safety Code, as may be amended or a material which, due to its characteristics or interaction with one or more other substances, wastes, chemicals, compounds or mixtures, damages or threatens to damage health, safety, or the environment or is required by any law or public entity to be remediated, including remediation which such law or public agency requires in order for the Property to be put to any lawful purpose. (ii) Initial Scope. Environmental testing shall be limited to an informal qualitative assessment and, if warranted, and subject to Seller’s District Manager’s concurrence as to location and depth, shallow soil and/or soil vapor testing conducted by hand auger, direct-push, or similar methods to depths above groundwater levels. (iii) Groundwater or Saturated Soils. Testing of or below groundwater or saturated soils shall be subject to Seller’s District Board’s concurrence and conducted only if (A) such testing is reasonably implicated by likely future environmental assessment requirements for potential redevelopment scenarios of the Property, and (B) comparable data cannot reasonably be obtained from existing sources, including existing wells. (iv) Meet and Confer; District Concurrence. Buyer shall meet and confer with Seller’s District Manager prior to any environmental testing to obtain concurrence on the scope and methodology of all testing. For sampling limited to depths above groundwater, Seller’s District Manager may grant concurrence in his discretion and shall use reasonable efforts to respond within three (3) business days of a written request delivered to the Seller’s District’s
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Manager. Any proposed testing of or below groundwater or involving saturated soils shall require Seller’s District Board approval, which shall be scheduled and acted upon within a reasonable period, anticipated to be approximately two (2) weeks following a written request. (v) No Material Disturbance. All environmental testing shall be conducted in a manner that avoids material disturbance to improvements and in compliance with applicable law.
(vi) Results. Buyer shall provide Seller with copies of all environmental testing results within twenty-four (24) hours of receipt. All environmental testing shall be completed and the results shall be provided to Seller at least fourteen (14) days prior to the Close of Escrow.
(vii) Indemnification. Buyer shall indemnify and hold Seller harmless from and against all costs, expenses, claims, liability, and damages arising from or relating to any and all environmental testing activities. (viii) District Discretionary Termination for Hazardous Materials
1. Termination Right. If any environmental testing conducted pursuant to this Section identifies the presence of Hazardous Materials, Seller in its sole discretion may terminate this Agreement by written notice to Buyer at any time prior to the Close of Escrow.
2. Effect of Termination. Upon termination under this Section
6.1, Escrow shall be cancelled and this Agreement shall have no further force or effect, except for provisions that by their terms survive termination. Buyer shall have no claim against Seller for damages, costs, or expenses arising from such termination.
3. Independent Right. Seller’s termination right under this Section is independent of, and in addition to, any other rights or remedies available to Seller under this Agreement or at law.
(ix) No Admission; No Duty to Remediate. The performance of environmental testing, the delivery of testing results, or any concurrence by Seller under this Agreement shall not constitute an admission of liability, responsibility, or fault by Seller, nor shall it create any obligation on the part of Seller to investigate, remediate, monitor, or disclose any environmental condition of the Property, except as expressly required by applicable law.
6.2 Seller’s Conditions. Seller’s obligation to sell the Property is subject to the satisfaction of the following conditions for Seller’s benefit:
(a) Buyer’s Obligations. Buyer shall have timely performed all of the obligations required by this Agreement to be performed by Buyer.
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(b) Buyer’s Representations. All representations and warranties of Buyer set forth in Section 8.2 of this Agreement shall be true and correct as of the Close of Escrow, as if made on such date.
(c) Certificate of Acceptance. Buyer shall have delivered to Seller or to Title Company a duly executed certificate of acceptance, in the form attached hereto as Exhibit “C” (“Certificate of Acceptance”), to be appended to the Grant Deed.
6.3 Termination of Agreement.
(a) Failure of Buyer’s Conditions. If any one or more of the conditions to Buyer’s obligations as set forth in Section 6.1 or elsewhere in this Agreement, is not either fully satisfied or waived in writing on or before the Closing Date, then Buyer may elect, by written notice to Seller, to terminate this Agreement, in which case this Agreement, the Escrow and the rights and obligations of the Parties hereunder shall terminate, except such rights and obligations which, by their terms, are to survive termination. Nothing in this paragraph shall be deemed to limit any of Buyer’s rights or remedies at law or in equity in the event of a default by Seller. (b) Failure of Seller’s Conditions. If any one or more of the conditions to Seller’s obligations as set forth in Section 6.2 or elsewhere in this Agreement, is not either fully satisfied or waived in writing on or before the Closing Date, then Seller may elect, by written notice to Buyer, to terminate this Agreement, in which case this Agreement, the Escrow and the rights and obligations of the Parties hereunder shall terminate, except such rights and obligations which, by their terms, are to survive termination. Nothing in this paragraph shall be deemed to limit Seller’s rights in the event of a default by Buyer. (c) Independent Consideration. If this Agreement shall terminate for any reason, Buyer shall pay Seller the sum of ($1.00), which shall be deposited into Escrow upon the Opening of Escrow, as independent consideration for Seller’s executing delivery and performance of this Agreement, the sufficiency of which is acknowledged by Seller.
7. Close of Escrow.
7.1 Deposits by Seller. At least five (5) business days prior to the scheduled Closing Date, Seller shall deposit with the Title Company the following documents:
(a) Grant Deed. The Grant Deed, duly executed by Seller, acknowledged and in recordable form.
(b) Title Documents. To the extent applicable, an executed owner’s affidavit in the customary form of the Title Company, organizational and authority documents requested by the Title Company, and such other documents as may be requested by the Title Company in order to issue the Title Policy, subject to any approved exceptions. (c) Escrow Instructions. Executed escrow instructions consistent with the provisions of this Agreement.
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(d) Seller’s Affidavits. Executed affidavits certifying that Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended, and California Revenue and Taxation Code Section 18662(e) (“Affidavits”). If Seller shall fail to submit the Affidavits, the Title Company shall deduct from amounts due to Seller any amounts required to be withheld under federal or state law and shall report and remit any such amounts so withheld to the Internal Revenue Service or the California Franchise Tax Board with such forms and at such times as shall be required by applicable statute or regulation.
7.2 Deposits by Buyer. Buyer shall deposit with the Title Company the following funds and documents:
(a) Funds. The Purchase Price for the Property as listed in Section 2.2 of this Agreement, and Seller’s share of the revenue from the Leases as described in Section 7.5. (b) Escrow Instructions. At least ten (10) days prior to Closing, escrow instructions consistent with the provisions of this Agreement.
7.3 Costs and Expenses. Seller and Buyer shall each pay one-half the cost of the CLTA Title Policy, the documentary transfer taxes, escrow fees, recording fees, delivery costs, and all miscellaneous charges and other closing costs, except as specifically set forth in this Agreement. If Buyer desires an ALTA Title Policy, any additional costs related thereto shall be borne solely by Buyer.
7.4 Disbursements and Other Actions by the Title Company. After all of the conditions precedent set forth in Sections 6.1 and 6.2 have been satisfied or waived, and all deposits have been made by Seller and Buyer in accordance with Sections 7.1 and 7.2, respectively, the Parties shall instruct the Title Company to perform all of the following in the manner indicated:
(a) Recording. Cause the Grant Deed and any other documents that the Parties hereto may mutually direct to be recorded in the Official Records of San Luis Obispo County, California.
(b) Funds. Disburse the Purchase Price to Seller. Distribute any remaining funds in Escrow to Buyer.
(c) Title Policy. Issue the Title Policy to Buyer.
(d) Transfer Documents. Immediately send all original forms and documents delivered to Escrow under Section 7.1(d) above to Buyer, or as directed by Buyer.
7.5 Possession and Existing Leases. Buyer is already in possession of the Property pursuant to the Joint Powers Agreement. Buyer acknowledges that a portion of the Property is currently leased by the Parties to three commercial tenants pursuant to the lease agreements (the "Leases") described in Exhibit ”F” attached hereto and incorporated by reference herein. Buyer agrees that rent from the Leases shall be prorated through the Close of Escrow, and upon the Close of Escrow, these Leases shall remain in full force and effect, and Buyer, as the sole lessor, shall assume all of Seller's rights and obligations under the existing Leases.
Notwithstanding the foregoing, Seller shall deliver vacant possession of the unleased portions of
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the Property to Buyer upon the Close of Escrow, free of any person having any right to occupy or use said unleased portions of the Property, other than Buyer and Buyer’s contractors and other licensees.
8. Representations and Warranties.
8.1 Seller’s Representations and Warranties. Seller makes the following representations and warranties to Buyer, each of which is material and is being relied upon by Buyer:
(a) Other Agreements; Third Party Consents. The execution and delivery of this Agreement and the sale of the Property to Buyer will not conflict with or constitute a default under any agreement binding upon Seller. To Seller’s actual knowledge, no default presently exists under any agreement affecting the Property, and no event has occurred that, with notice or lapse of time or both, that would constitute any such default. No consents or waivers by any third party are necessary to permit the sale of the Property to Buyer. (b) Litigation. There are no lawsuits or proceedings pending with third parties that do or would affect the Property or Seller’s ability to fulfill all of its obligations under this Agreement, and Seller has no knowledge of any such threatened lawsuits or proceedings.
There are no outstanding claims on Seller’s insurance policies relating to the Property. (c) Bankruptcy. Seller has not filed or been the subject of any filing of a petition under any federal or state bankruptcy or insolvency law. (d) Signatories. The persons executing this Agreement, the instruments referenced herein, and any other documents executed and delivered on behalf of Seller have the full right, power and authority to do so and have been duly authorized to do so by Seller, and no other persons are required to execute this Agreement on behalf of Seller. (e) Compliance with Law. To Seller’s actual knowledge, all laws, ordinances, rules, and requirements and regulations of every governmental agency, body, or subdivision thereof bearing on the Property have been complied with by Sellers. (f) Documents. To Seller’s actual knowledge, all documents delivered to Buyer pursuant to this Agreement are true and complete copies of originals, without any representation or warranty as to the contents or accuracy thereof.
8.2 Buyer’s Representations and Warranties. Buyer makes the following representations and warranties to Seller, each of which is material and is being relied upon by Seller:
(a) Authority. Buyer has the legal right, power, and authority to enter into this Agreement and to purchase the Property from Seller. This Agreement has been duly and validly authorized, executed, and delivered by Buyer, and each of the persons signing this Agreement on behalf of Buyer is authorized to do so. All the documents executed by Buyer will be duly authorized, executed, and delivered by Buyer.
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(b) Other Agreements; Third Party Consents. The execution and delivery of this Agreement and the purchase of the Property from Seller will not conflict with or constitute a default under any agreement binding upon Buyer. To Buyer’s actual knowledge, no default presently exists under any agreement affecting the Property, and no event has occurred that, with notice or lapse of time or both, that would constitute any such default. No consents or waivers of any third party are necessary to permit the purchase of the Property from Seller. (c) Signatories. The persons executing this Agreement, the instruments referenced herein, and any other documents executed and delivered on behalf of Buyer have the full right, power and authority to do so and have been duly authorized to do so by Buyer, and no other persons are required to execute this Agreement on behalf of Buyer. (d) Documents. To Buyer’s actual knowledge, all documents delivered to Seller pursuant to this Agreement are true and complete copies of originals, without any representation or warranty as to the contents or accuracy thereof. (e) Inspection. Buyer has been given a sufficient opportunity to inspect the Property and has obtained and examined such information and documentation affecting the Property as Buyer has deemed necessary or appropriate.
9. Covenants of Seller. Seller hereby covenants and agrees with Buyer as follows:
9.1 Change in Representations. Seller shall promptly notify Buyer of the occurrence of any fact, circumstance, condition, or event that would cause any of the representations made by Seller in this Agreement no longer to be true or accurate.
9.2 Future Action. From and after the date hereof, without the prior written consent of Buyer, Seller shall not take any action prior to the Close of Escrow that may result in a change in the condition of title to the Property approved by Buyer.
10. Decommission and Demolition of Property. After Close of Escrow, Buyer is solely responsible for any decommission and demolition of the Treatment Plant and all other structures located on the Real Property. Seller shall have no further rights, obligations, or duties with respect to the Treatment Plant or the Assets following Closing.
11. Termination of Joint Powers Agreement. The Parties agree that the Joint Powers Agreement, a true and correct copy of which is attached hereto as Exhibit “D” and incorporated herein by this reference, shall terminate concurrently with the Close of Escrow, at which time it shall have no further force and effect, and the Parties shall have no rights, obligations, or duties thereunder.
12. Buyer’s General Indemnification. Buyer agrees to and does hereby indemnify, defend, and hold harmless Seller from and against any and all claims made or any loss incurred (including reasonable attorney fees) caused by Buyer’s ownership, use or occupancy of the property from and after the Close of Escrow. This indemnification provision is a surviving obligation.
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13. Mediation of Disputes. Buyer and Seller agree to mediate any dispute between them arising out of this Agreement prior to any court action or arbitration. Mediation is a nonbinding process in which the Parties meet with a neutral mediator (selected by the Parties) who will try to work out a mutually acceptable resolution. If the Parties cannot agree on a mediator, the Superior Court shall appoint one. The mediator may conduct more than one session and mediation fees shall be paid jointly by the Parties.
14. Notices. Any notice or other communication required or permitted under this Agreement shall be in writing and shall be either personally delivered or transmitted by registered or certified mail, return receipt requested, postage prepaid, or by a nationally recognized overnight courier, such as FedEx, with a copy by email, addressed to the Parties as follows:
If to Seller: Cayucos Sanitary District
Attn: David Athey, District Manager
200 Ash Avenue
Cayucos, CA 93430
Email: [email protected]
With a copy to: Timothy J. Carmel
Carmel & Naccasha LLP
694 Santa Rosa Street
San Luis Obispo, CA 93401
Email: [email protected]
If to Buyer: City of Morro Bay
Attn:
595 Harbor Street
Morro Bay, CA 93442
Email:
With a copy to: City of Morro Bay
Attn: Brian Stack, City Attorney
595 Harbor Street
Morro Bay, CA 93442
Email: [email protected]
15. Miscellaneous.
15.1 Survival. The representations and warranties of Buyer and Seller set forth in this Agreement shall survive the recordation of the Grant Deed and the Close of Escrow, together with any agreements or obligations that, by their terms or nature, are to be performed after termination of this Agreement or Close of Escrow.
15.2 Required Actions of Buyer and Seller. Buyer and Seller agree to execute such documents and to diligently undertake such actions as may be required in order to complete the purchase contemplated in this Agreement.
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15.3 Time. Time is of the essence with respect to each and every term, condition, obligation and provision of this Agreement, and the failure to timely perform any of the terms, conditions, obligations or provisions herein by either Party shall constitute a breach of and a default under this Agreement by the Party so failing to perform.
15.4 Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Copies of signatures on documents transmitted by email (in pdf format) or electronically (by DocuSign or similar protocol) shall be binding on the Parties to the same extent as “ink original” signatures. It is understood and agreed that certain closing documents may not be delivered by email or electronically.
15.5 Captions. Any captions or headings in this Agreement are solely for the convenience of the Parties, and shall not be used for the interpretation of this Agreement.
15.6 No Obligations to Third Parties. The execution and delivery of this Agreement shall not be deemed to confer any rights upon any person or entity other than Buyer and Seller.
15.7 Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof.
15.8 Applicable Law. This Agreement shall be governed by and construed in accordance with California law.
15.9 Fees and Other Expenses. Except as otherwise provided herein, each of the Parties shall pay its own fees and expenses in connection with this Agreement.
15.10 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, personal representatives, successors and assigns.
15.11 Legal Fees. If either Party brings a lawsuit arising out of this Agreement, the prevailing Party shall be entitled to recover from the non-prevailing Party all costs of suit, including reasonable attorneys’ fees. The prevailing Party shall also be entitled to its attorneys’ fees and costs incurred in any post-judgment proceedings to collect and enforce the judgment.
15.12 Construction. The language of this Agreement shall be construed as a whole and in accordance with its fair meaning and not strictly for or against either Party.
15.13 Business Days. If the scheduled Closing Date, or the date on which a Party is required to perform an obligation, or the date on which any required notice is to be received, is a Saturday, Sunday or a legal holiday, that date shall be extended to the next regular business day.
15.14 Severability. If any provision of this Agreement shall be held to be unenforceable or invalid for any reason, it shall be adjusted rather than voided, if possible, in order
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to achieve the intent of the Parties to the extent possible. In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the fullest extent.
15.15 Exhibits and Schedules. The following Exhibits are attached hereto and incorporated by reference into this Agreement:
Exhibit “A” Legal Description of Property
Exhibit “B” Form of Grant Deed
Exhibit “C” Certificate of Acceptance
Exhibit “D” Joint Powers Agreement
Exhibit “E” Appraisal Report
Exhibit “F” Current Leases of the Property
15.16 No Offer. The submission of this Agreement to Buyer for examination or execution does not create an option or constitute an offer to Buyer to purchase the Property on the terms contained herein, and this Agreement shall not become effective as a purchase and sale agreement or otherwise unless and until it has been executed and delivered by both Seller and Buyer.
15.17 Entire Agreement. This Agreement and the Exhibits attached hereto supersede any prior agreements, negotiations and communications, oral or written, and contain the entire agreement between Buyer and Seller regarding the subject matter hereof. The terms of this Agreement may not be amended, except by a writing executed by both Buyer and Seller. [Signatures on Following Page]
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IN WITNESS WHEREOF, the Parties have duly executed and delivered this Agreement as of the day and year first above written.
SELLER:
CAYUCOS SANITARY DISTRICT,
a political subdivision of the State of California
By:
Print Name:
Its:
Date:
APPROVED AS TO FORM:
Timothy J. Carmel
General Counsel
BUYER:
CITY OF MORRO BAY,
a California municipal corporation
By:
Print Name:
Its:
Date:
APPROVED AS TO FORM:
Brian Stack
City Attorney
-15-
EXHIBIT “A”
LEGAL DESCRIPTION
-16-
EXHIBIT “B”
RECORDING REQUESTED BY, )
MAIL TAX STATEMENT TO )
AND WHEN RECORDED MAIL TO: )
)
City of Morro Bay )
595 Harbor Street )
Morro Bay, CA 93442 )
ATTN: City Clerk )
______________________________________________________________________ This document is exempt from payment
of a recording fee pursuant to
Government Code Section 27383.
GRANT DEED
APNs: 066-331-033 and 066-331-034
For valuable consideration, receipt of which is hereby acknowledged, CAYUCOS SANITARY DISTRICT, a political subdivision of the State of California (“Seller"), hereby grants to, the CITY OF MORRO BAY, a general law city and municipal corporation organized and existing under the Constitution and laws of the State of California (the "City"), Seller’s entire ownership interest in the real property and assets hereinafter referred to as the "Property," described in: (i) Exhibit A attached hereto and incorporated herein, and (ii) Recital A and Recital B of the Purchase and Sale Agreement entered into between the City and Seller dated ____________, 2026 ("Agreement").
The Property is conveyed in accordance with and subject to the Agreement, a copy of which is on file with each Party as a public record and which is incorporated herein by reference. [Signatures on Following Page]
-17-
SELLER:
CAYUCOS SANITARY DISTRICT,
a political subdivision of the State of California
By:
Print Name:
Its:
Date:
APPROVED AS TO FORM:
Timothy J. Carmel
General Counsel
BUYER:
CITY OF MORRO BAY,
a California municipal corporation
By:
Print Name:
Its:
Date:
APPROVED AS TO FORM:
Timothy J. Carmel
General Counsel
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EXHIBIT “C”
CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in _____________________ conveyed by the Grant Deed dated ______________, from CAYUCOS SANITARY DISTRICT, a political subdivision of the State of California, to the CITY OF MORRO BAY, a California municipal corporation, is hereby accepted by the undersigned officer on behalf of the City of Morro Bay pursuant to authority conferred by the City Council through ___________ adopted on ______________, and the Grantee consents to recordation thereof by its duly authorized officer.
CITY OF MORRO BAY,
a California municipal corporation
Dated: __________________ By: ________________________________ [Name],
[Title]
APPROVED AS TO FORM:
By: ___________________
City Attorney
-19-
EXHIBIT “D”
JOINT POWERS AGREEMENT
-20-
EXHIBIT “E”
APPRAISAL REPORT
-21-
EXHIBIT “F”
DESCRIPTION OF JOINTLY HELD LEASES
City of Morro Bay Corporation Yard Lease Agreement Dated May 19, 2005 Morro Dunes Trailer Park & Campgrounds, Inc. Commercial Lease Dated September 1, 2008 IWMA Household Hazardous Waste Second Agreement Effective April 5, 2020
RESOLUTION NO. 17-26
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING A PURCHASE AND SALE AGREEMENT WITH THE CAYUCOS SANITARY
DISTRICT FOR THE PURCHASE OF THE FORMER WASTEWATER TREATMENT PLANT PROPERTY LOCATED AT 160/180 ATASCADERO ROAD AND 1700 EMBARCADERO AND
OTHER JOINTLY OWNED ASSETS IN MORRO BAY, CALIFORNIA
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City and the Cayucos Sanitary District (CSD) jointly own the real property located at 160/180 Atascadero Road and 1700 Embarcadero in Morro Bay, California (APNs 066- 331-033 and 066-331-034); and
WHEREAS, the CSD and City have engaged in discussions regarding the CSD selling its interest in the property to the City; and
WHEREAS, pursuant to Government Code section 37350, the City wishes to acquire 160/180 Atascadero Road and 1700 Embarcadero in Morro Bay, California (APNs 066-331-033 and 066-331-034) for the common benefit of its citizens; and WHEREAS, the City has negotiated the attached Purchase and Sale Agreement with the CSD for a purchase price of $3,867,800; and
WHEREAS, the purchase of these properties must be added to the Fiscal Year 2025-26 Budget for both the expenditure from Sewer Capital Fund as well as the funding from Sewer Operating Fund as a transfer to the Sewer Capital Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does hereby:
1. Approve the Purchase and Sale Agreement (Agreement) for the purchase of 160/180 Atascadero Road and 1700 Embarcadero in Morro Bay, California (APNs 066-331-033 and 066-331-034) in substantially the form attached, subject to review and approval by the City Attorney; and authorize the City Manager to execute the Agreement and related escrow documents, and to negotiate and execute non-substantive amendments consistent with the terms approved by Council, subject to review and approval by the City Attorney as to form and legal effect;
2. Find the City’s proposed purchase is consistent with the Water Reclamation Facility’s (WRF) Final Environmental Impact Report (EIR), and no further environmental review is required. Pursuant to State CEQA guidelines, an EIR for the WRF project was prepared, released for a 45-day public review process on April 3, 2018 to May 18, 2018 and certified by the City Council on August 14, 2018 (State Clearinghouse number 2016081027). The proposed purchase would help facilitate the demolition and decommission of the WWTP which was a project component considered through the EIR review referenced above. State CEQA Guidelines Section 15162 provides that no further review is required under CEQA when there are no substantial changes in the project, there are no substantial
changes with respect to the circumstances under which the project is undertaken, and there is no new information of substantial importance, which was not known and could not have been known at the time of certification of the EIR. The proposed purchase is consistent with and helps implement the WRP project and is consistent with the analysis presented in the EIR and therefore, pursuant to State CEQA Guidelines Section 15162, no subsequent analysis is required.
3. Approve the following Budget Amendment for $3,867,800.
Expenditure Budget Amendment
Fund Dept Acct Increase G/L
Sewer Capital
Fund
CSD Property
Buyout
Land $3,867,800 922-8330-7101
Sewer Operating
Fund
Interfund
Transactions
Transfer to Capital
Imp Fund
$3,867,800 321-7710-8540
Sewer Capital
Fund
Interfund
Transactions
Transfer from
Enterprise
$3,867,800 922-8330-3860
PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 24th day of March 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
_______________________________
CARLA WIXOM, Mayor
ATTEST:
___________________________
DANA SWANSON, City Clerk