Agenda packet, regular meeting — Morro Bay City Council, June 23, 2026 (part 2 of 2)

Buildings Address (Sq. Ft.) Unit Cost / Sq. Ft. Value
Police Station 850 Morro Bay Blvd 6,150 $1,200 $7,380,000 Police Annex 875 Morro Bay Blvd 1,580 $650 $1,027,000
7,730 $8,407,000

Pending
Land (Acres) Unit Cost / Acre Value
Police Station 850 Morro Bay Blvd 0.43 $1,264,732 $543,835 Police Annex 875 Morro Bay Blvd 0.30 $1,264,732 $379,419

0.73 $1,264,732 $923,254
Vehicles
Description Vehicle Type Cost Replacement Cost
2005 RADAR TRAILER Trailer $2,000 $3,730
2005 UTILITY TRAILER Trailer $2,000 $3,730
Camry Passenger $7,000 35,000
Edge Passenger $10,000 30,000
Tahoe Passenger $9,000 45,000
Charger Passenger $8,500 65,000
Ram 1500 Crew Light $18,000 80,000
Explorer/Interceptor Trailer $4,000 74,573
Motorcycle Passenger $54,000 11,518
Motorcycle Passenger $54,000 11,518
Tahoe Passenger $22,000 75,000
Fusion Passenger $17,000 21,756
Tahoe Motorcycle $9,000 75,000
Tahoe Motorcycle $9,000 75,000
Tahoe Passenger $30,000 75,000
Tahoe Passenger $30,000 75,000
Silverado 1500 Passenger $56,000 60,000
Blazer FWD Passenger $56,000 40,000
Tahoe Passenger $45,000 75,000
Ram 1500 Crew Passenger $28,000 80,000
Blazer FWD Passenger $60,000 40,000
Tahoe Light Cuty 75,000
F150 Light Duty $32,000 75,000
Motorcycle Motorcycle 30,200
Motorcycle Motorcycle 30,200
Tundra 65,000
Ranger Passenger 65,000
Plaris Passenger 65,000
GENERATOR GENERATOR $24,000 $24,000
Pole Camera Trailer Trailer $56,066
REPEATER GENERATOR $10,000 $10,000
Stalkar Radar Message Center Trailer Trailer $7,250
Stalkar Radar Message Center Trailer Trailer $7,250
33 $596,500 $1,561,792
APPENDIX B-1

MORRO BAY, CALIFORNIA

POLICE FACILITIES INVENTORY

Page 134 of 218 ends

APPENDIX B-1

MORRO BAY, CALIFORNIA

FIRE FACILITIES INVENTORY
Buildings Address (Sq. Ft.) Unit Cost / Sq. Ft. Value
Fire Station 53 Headquarters 715 Harbor St 10,745 $1,200 $12,894,000 Fire Station 54 460 Bonita St 3,755 $1,200 $4,506,000
14,500 $17,400,000
Pending
Land (Acres) Cost / Acre Value
Fire Station 53 Headquarters 715 Harbor St 0.790 $1,264,732 $999,138 Fire Station 54 460 Bonita St 0.160 $1,264,732 $202,357

0.95 $1,264,732 $1,201,495
Vehicles
Description Type Replacement Cost
2008 PEIRCE ARROW XT 1500 GPM Heavy duty E5392 $1,200,000 2019 PIERCE LANCER 1500 GPM Heavy duty E5391 $1,200,000 2013 FORD EXPEDITION Passenger $63,000
2015 FORD F250 CREW CAB XL Medium duty $69,000
2015 Pierce Arrow XT 75' ladder truck Heavy duty T5341 $2,480,000 TRAILER Trailer $12,000
TRAILER Trailer $12,000
Westmark type 3 engine Heavy duty E5371 $750,000
GENERATOR GENERATOR $24,000
2021 Chevrolet Tahoe Passenger C5300 $61,000
K2500 CHEVROLET SILVERADO PICKUP Passenger $63,000
2024 K2500 Chevrolet Silverado Puckup Passenger D5301 $65,000 2023 Triton Trailer AUX 1882-Sport (AluminTrailer $10,900 2023 Polaris Ranger XP 1000 Northstar UTV $39,000
14 $6,048,900
Equipment & Property Year Cost
SCBA's (Fire and Harbor) 2015 $200,100 $6,900 each
SCBA Bottles 2015 $86,400 $1,200 each
SCBA Masks 2015 $18,500 $350 each
Structure and Wildland PPE (10% yearly replacement) Various $409,770 $27,318 each EMS PPE Coats 2022 $6,000 $400 each
NFIRS & EMSA Patient Ipads 2016 $3,000 $1,000 each
Ballistic Helmets / Vests (10 sets) 2016 $35,000 $3,500 each Water Rescue PPE Various $9,000 $1,500 each
Fire Shelters 2014 $12,000 $600 each minimum
Mobile Data Units 2023 $30,000 $5,000 each x 6 app
Training A/V 2022 $18,000
Hydraulic Automobile Extrication Pumps (Heavy) R5351 2017 $13,000 $6,500 each x2 Hydraulic Automobile Extrication Pumps E5392 2019 $13,000 $6,500 each x2 Hydraulic Automobile Extrication Pumps E5391 2019 $13,000 $6,500 each x2 Hydraulic Automobile Extrication Cutters / Spreaders (8 units) 2011 $104,000 $13,000 each x8 Hydraulic Automotive Extrication High Pressure Hose (12 units) 2022 $7,250 $725 each x10 Hydraulic Rams 2009 $60,000 $10,000 each x6
Rescue Air Bags (5 units) 2024 $14,000
Battery powered hydraulic cutter 2024 $16,000
Battery powered hydraulic spreader 2024 $16,000
Battery powered hydraulic ram 2024 $13,500
Mobile Generators 5391, 5351, 5341 2008 $5,600 $1,400 each x4 Structure Firehose Various $84,296
Wildland Firehose Various $16,246
Engine 5391 TFT Nozzles 2005 $9,000 $1,500 each x6
Engine 5392 TFT Nozzles 2000 $9,000 $1,500 each x6
Truck 5341 TFT Nozzles 1998 $9,000 $1,500 each x6

Page 135 of 218 ends

Engine 5391 Mechanized Saws 2017 $3,600 $1,200 each x3
Engine 5392 Mechanized Saws 2022 $3,600 $1,200 each x3
Truck 5341 Mechanized Saws 2011 $3,600 $1,200 each x3
Engine 5371 Mechanized Saws 2008 $2,400 $1,200 each x2
Rope Rescue Hardware 2021 $10,652
Rope Rescue Software 2021 $4,188
Rescue Rope 2021 $5,782
Mobile Radios (40x $825) 2002 $135,000 Apparatus and smal Handheld Radios 2022 $216,000 $9,000 each x24 rad
Confined Space Communictions 2003 $11,000
Thermal Imagine Cameras (2) 2017 $16,000 $8,000 each
12 Lead EKG Monitors (3 units) 2019(3)2022(2) $215,000 $43000 each x5 unit 3 Gas Environmental Monitors (3 units) 2017 $5,400 $1,800 each x3 units SCBA Air Fill Station 2014 $60,000
Porta-Count Fit Tester 2013 $15,000
EOC Mobile Radios / Antennas 2012 $18,000
Black Hill Repeater / Antennas 2006 $100,000
$2,055,884 $0

Page 136 of 218 ends

Pending
Parks Address Type (Acres) Cost / Acre Value
Anchor Memorial Park 925 Embarcadero, Morro Bay CA 0.06 $1,264,732 $75,884 Bayshore Bluffs Park 181 Bayshore Drive, Morro Bay 3.84 $1,264,732 $4,856,569 Centennial Parkway Project 806 Embarcadero, Morro Bay 0.1 $1,264,732 $126,473 City Park 734 Harbor Street, Morro Bay 0.91 $1,264,732 $1,150,906 Cloisters Park 2501 Coral Avenue, Morro Bay 28.41 $1,264,732 $35,931,025 Coleman Park 101 Coleman Drive, Morro Bay 1.04 $1,264,732 $1,315,321 Del Mar Park 3060 Ironwood Avenue, Morro Bay 10.31 $1,264,732 $13,039,383 Lila Keiser Park 1 J Street, Morro Bay 6.75 $1,264,732 $8,536,938 Mariner Memorial Park 20 State Park Road, Morro Bay 0.06 $1,264,732 $75,884 Monte Young Park 734 Harbor Street, Morro Bay 0.8 $1,264,732 $1,011,785 North Point 3480 Toro Lane, Morro Bay 1.1 $1,264,732 $1,327,968 Tidelands Park 339 Embarcadero, Morro Bay 2.24 $1,264,732 $2,832,999 Skate Park 231 Atascadero Road, Morro Bay 1.4 $1,264,732 $1,770,624 Total 56.97 $72,051,759
Vehicles
Make Model Type Year Original Cost Replacement Cost
2015 FORD F350 Super Duty, 4WD, SRW Medium 2015 $30,000 $41,429 2017 Ford F250 XL Light 2017 $35,000 $44,792
2 $65,000 $86,221
Individual Park
Property / Structures / Equipment Description Number Unit Cost Replacement Cost Anchor Memorial Park Park Bench 4 $3,000 $12,000
Picnic Table 2 $4,000 $8,000
Bayshore Bluffs Park Park Storage Shed (500 SF) 1 $150,000 $150,000 Restrooms $216,000
Centennial Park Park Bench 5 $3,000 $15,000
Chessboard 1 $10,000 $10,000
Game Table 4 $10,000 $40,000
Park Storage Shed (500 SF) 1 $150,000 $150,000
Restroom $341,400
City Park Basketball Court 1 $50,000 $50,000
Park Bench 2 $3,000 $6,000
Drinking Fountain 1 $10,000 $10,000
Picnic Table 5 $4,000 $20,000
Playground (1,000 SF) 1 $110,000 $110,000
Restroom $187,500
Cloisters Park Park Bench. 12 $3,000 $36,000
Open Space 1 $50,000 $50,000
Picnic Table 7 $4,000 $28,000
Playground (1,000 SF) 1 $110,000 $110,000
Pond 1 $20,000 $20,000
Restroom $193,500
Coleman Park Basketball Court 1 $50,000 $50,000
Picnic Table 4 $4,000 $16,000
Swing Set 1 $12,000
Restrooms $55,000
Del Mar Park mpitheater (500 person capac 1 $150,000 $150,000 Basketball Court 1 $50,000 $50,000
Pickleball Court 1 $30,000 $30,000
Picnic Table 6 $4,000 $24,000
Playground (1,000 SF) 1 $110,000 $110,000
Tennis Court 1 $50,000 $50,000
Restroom $168,000
Franklin Riley Park $0
Las Tunas Pocket Park $0
Lila Keiser Park Baseball Diamonds 2 $30,000 $60,000
Drinking Fountain 1 $10,000 $10,000
Picnic Table 3 $4,000 $12,000
APPENDIX B-1

MORRO BAY, CALIFORNIA

PARKS FACILTIES LIST

Page 137 of 218 ends

Covered Picnic Tables 1 $6,000 $6,000
Playground (1,000 SF) 1 $110,000 $110,000
Restroom $473,700
Mariner Memorial Park Table 2 $4,000 $8,000
Monte Young Park Bench 2 $3,000 $6,000
Picnic Table 1 $4,000 $4,000
Playground (1,000 SF) 1 $110,000 $110,000
Tennis Court 2 $20,000 $40,000
Restroom $117,600
North Point Bench 10 $0
Tidelands Park Bench 11 $3,000 $33,000
Fish Cleaning Station 1 $1,000 $1,000
Picnic Table 7 $4,000 $28,000
Playground (1,000 SF) 1 $110,000 $110,000
Stairway 1 $0
Restroom $3,791,000
Skate Park Skate Park 1 $2,650,000 $2,650,000
Total $10,036,700

Page 138 of 218 ends

APPENDIX B-1

MORRO BAY , CALIFORNIA

TRANSPORTATION INFRASTRUCTURE
Existing Facultiy Categories Current Replacement Costs
Right of Ways $0
Pavement $96,919,500
Curbs and Gutters $37,300,000
Sidewalks $59,343,000
Bridges $11,500,000
Traffic Signals $250,000
Arterials, Roads, etc $160,000,000
Other $0
Total Existing Faculties [a] $365,312,500

Page 139 of 218 ends

Facility Name Cost Policy Background
Capacity Improvements
Fire Flow $9,049,000 Capital Improvement Plan
Transmission and Distribution $0 Capital Improvement Plan Storage Reservoir Capital Improvement Plan
PRV Stations $0 Capital Improvement Plan
Subtotal $9,049,000
Rehabilitation and Replacement Projects
Rehabilitation and Replacement Projects $1,700,000 Capital Improvement Plan End Cap Replacements Capital Improvement Plan
Subtotal $1,700,000
Other Projects
Other Projects $450,000 Capital Improvement Plan
Subtotal $450,000
Subtotal $11,199,000
Offsetting Revenue $0.00
Total $11,199,000
APPENDIX B-1

MORRO BAY, CALIFORNIA

WATER FACILTIES LIST

Page 140 of 218 ends

Facility Name Cost Policy Background
Capacity Improvements
Fire Flow $1,485,000 Capital Improvement Plan
Transmission and Distribution $1,439,000 Capital Improvement Plan Storage Reservoir $80,000 Capital Improvement Plan
Subtotal $3,004,000
Rehabilitation and Replacement Projects
Rehabilitation and Replacement Projects $4,710,000 Capital Improvement Plan End Cap Replacements $2,006,000 Capital Improvement Plan Subtotal $6,716,000
Other Projects
Other Projects $630,000 Capital Improvement Plan
Subtotal $630,000
Subtotal $10,350,000
Offsetting Revenue $0.00
Total $10,350,000
APPENDIX B-1
Santa Maria, CALIFORNIA

WASTE WATER FACILTIES LIST

Page 141 of 218 ends

Facility Name Cost Policy Background
Storm Water Collection System SD-01A Pipeline along Kern Street and Anchor Street $66,000 addition of 125 feet of 27-inch diameter pipeline Storm Water Collection System SD-01B Pipeline along Kern Street and Anchor Street $1,530,000 addition of 2,600 feet of 30-inch diameter pipeline Storm Water Collection System SD-02A Pipeline along Marina Street $106,000 addition of 365 feet of 12-inch diameter pipeline Storm Water Collection System SD-02B Pipeline along Kern Street and Anchor Street $189,000 addition of 600 feet of 15-inch diameter pipeline Storm Water Collection System SD-03 Pipeline along Harbor Street $421,000 addition of 890 feet of 24-inch diameter pipeline Storm Water Collection System SD-03 Pipeline along Beach Street $472,000 addition of 1,000 feet of 24-inch diameter pipeline Subtotal $2,784,000
Offsetting Revenue $14,988
Total $2,769,012
APPENDIX B-1

MORRO BAY, CALIFORNIA

STORM DRAIN FACILTIES LIST

Page 142 of 218 ends

APPENDIX C
City of Morro Bay
Development Impact Fee Justification Study

PROPERTY

INVENTORY FOR

LAND ACQUISITION
COSTS

Page 143 of 218 ends

Address / Location Property Location County Proposed Use Sale Date Acres Total Price Price/Acre Morro Bay 205 Harbor St San Luis Obispo Hotel 1/8/2021 0.39 1,000,000 $2,562,355 Morro Bay Atascadero Rd San Luis Obispo Motel 2/28/2018 2.20 1,570,000 $713,636

2.59 $1,264,732 $3,275,991
Total Average $1,264,732
APPENDIX C-1

CITY OF MORRO BAY, CALIFORNIA

LAND INVENTORY

Page 144 of 218 ends

www.FinanceDTA.com
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds

Page 145 of 218 ends

City of Morro Bay

DEVELOPMENT IMPACT FEES
PROPOSED REVISIONS - 6/23/2026
Fee Proposed Fee Change Note CPI
1 Development Impact Fees
Building fees per square foot, including excluding garages and other non-habitable space. garages (enclosed spaces). Single family residential additions of 500 square feet or less are exempt. The first 749 square feet of floor area of ADUs are exempt. Water and Wastewater fees are additional. An increase in meter size resulting from the need to comply with the hydraulic demand associated with Fire Sprinklers is exempt.
a) Residential, Single Family $8.22 $10.00 $1.78 Y
b) Residential, Multi-family $13.29
c) Accessory Dwelling Unit $1.34 $1.90 $0.56 Y
d) Non-residential, commercial $6.31 $6.52 $0.21 Y
e) Non-residential, office $4.49 $4.64 $0.15 Y
f) Non-residential, industrial $2.28 $2.34 $0.06 Y
2 Park fees for residential in-fill lots (per square foot) a) Single-family $1.95
b) Single-Family, Detached Accessory Structure $0.49
c) Accessory Dwelling Unit $0.49 See ADU Fee
d) Multi-family $3.25
3 2 Public Facilities Fees (per square foot)
a) Single-Family Residential
i) General Government Administration $1.87 $2.32 $0.45 Y ii) Police $0.59 $0.59 $0.00 Y
iii) Parks $1.95 $2.42 $0.47 Y
iv) Fire $0.68 $0.84 $0.16 Y
v) Storm Drain $0.08 $0.10 $0.02 Y
vi) Traffic $3.01 $3.73 $0.72 Y
b) Multi-family residential
i) General Government $3.08
ii) Police $1.02
iii) Parks $3.25
iv) Fire $1.15
v) Storm Drain $0.09
vi) Traffic $4.69
c) Non-residential, commercial
i) General Government Administration $0.41 $0.42 $0.02 Y ii) Police $0.09 $0.10 $0.00 Y
iii) Parks $0.03
iv) Fire $0.37 $0.38 $0.01 Y
v) Storm Drain $0.05 $0.06 $0.00 Y
vi) Traffic $5.36 $5.56 $0.21 Y
Activity Description

Page 146 of 218 ends

City of Morro Bay

DEVELOPMENT IMPACT FEES
PROPOSED REVISIONS - 6/23/2026
Activity Description Fee Proposed Fee Change Note CPI
d) Non-residential, office
i) General Government Administration $0.52 $0.54 $0.02 Y ii) Police $0.12 $0.13 $0.00 Y
iii) Parks $0.03
iv) Fire $0.50 $0.52 $0.02 Y
v) Storm Drain $0.05 $0.06 $0.002 Y
vi) Traffic $3.27 $3.40 $0.13 Y
e) Non-residential, industrial
i) General Government Administration $0.14 $0.14 $0.01
ii) Police $0.05 $0.06 $0.002 Y
iii) Parks $0.03
iv) Fire $0.12 $0.13 $0.005 Y
v) Storm Drain $0.05 $0.06 $0.002 Y
vi) Traffic $1.88 $1.96 $0.07 Y
f) Accessory Dwelling Unit (ADU)
i) General Government Administration $0.42 $0.43 $0.02 Y ii) Police $0.13 $0.14 $0.005 Y
iii) Parks $0.00 $0.51 $0.51 From
Residential
Parks
Y
iii) Fire $0.14 $0.15 $0.006 Y
iv) Storm Drain $0.02 $0.02 $0.001 Y
v) Traffic $0.62 $0.65 $0.02 Y
4 3 Water Impact Fees
(Capacity Credit is given for existing meter on previously developed land; not applicable to empty lots.)
a) Less than 1-inch meter $7,912 $8,221 $309 Y
b) 1 inch meter $10,613 $11,027 $414 Y
c) 1-1/2 inch meter $21,225 $22,053 $828 Y
d) 2 inch meter $33,962 $35,286 $1,325 Y
e) 3 inch meter $63,679 $66,163 $2,483 Y
5 4 Wastewater Impact Fees
(Capacity Credit is given for existing meter on previously developed land; not applicable to empty lots.)
a) Less than 1-inch meter $7,991 $8,302 $312 Y
b) 1 inch meter $10,653 $11,068 $0 Y
c) 1-1/2 inch meter $21,354 $22,187 $833 Y
d) 2 inch meter $34,090 $35,420 $1,330 Y
e) 3 inch meter $63,918 $66,411 $2,493 Y
6 5 In-Lieu Housing Fee
a) In-lieu Housing Fee (if unit not affordable housing) - per square foot
$0.45 $0.47 $0.02 Y

Page 147 of 218 ends

Schedule of User and Regulatory Fees and Charges
and
Development Impact Fees
Proposed Revisions June 23, 2026
Effective August 24, 2026

Page 148 of 218 ends

Description Page
Administrative / City Clerk Fees 1
Finance / Administrative Services Fees 2
Building Fees 3
Planning Fees 8
Engineering, Encroachment Permit, and Utility Services Fees 13 Fire Fees 18
Police Fees 23
Harbor Fees 26
Recreation Fees 30
Development Impact Fees 34
City of Morro Bay
Schedule of User and Regulatory Fees

Page 149 of 218 ends

City of Morro Bay

ADMINISTRATIVE / CITY CLERK FEES
Fee Note CPI
1 Photocopies per page (unless otherwise defined) $0.40 N 2 Photocopies (per 11" x 17" page) $0.70 N
3 Copies - Digital - per device $10 N
4 Certified Copies of City Documents $25 N
5 Records Request (retrieval of FPPC filings 5 or more years old) $5 N 6 Mailing of Printed Materials/Devices Actual Cost N
7 Appeal fee for non-land use administrative decisions, excluding short-term rental permit decisions – Refundable if Appellant Prevails
$382 Y
8 Appeal of Short-Term Rental Permit Decision $652 Y
9 Elections filing fee - Notice of intention to circulate petition. This amount is refundable under Elections Code Section 9202(b), with conditions (limited by State law) $200 N
10 Candidate Filing Fee per Candidate (limited by State law) $25 N Activity Description

Page 150 of 218 ends

City of Morro Bay

FINANCE / ADMINISTRATIVE SERVICES FEES
Fee Note CPI
Business License Processing Fees
1 Business License – New $40 Y
2 Business License – Renewal $20 Y
Insufficient Funds Charge
(per CA Civil Code Section 1719)
3 First Instance of Insufficient Funds $25 N
4 Second and Subsequent Instances $35 N
Utility Billing
5 Water Service Application Fee Per Account (MBMC13.04.100) $67 Y 6 Physical Posting of Shut-off Notice at Customer Location $44 Y 7 Refundable/Transferable Deposit - Residential Tenants Only On Signup (MBMC13.04.220)
$100 N
8 Deposit Required for Service Termination for Delinquent Non-Payment (Residential Tenants Only, if a Deposit Has Not Previously Been Collected) $100 N
Activity Description

Page 151 of 218 ends

City of Morro Bay

BUILDING FEES
Fee Note CPI
1 HVAC Change-Out - Residential $186 Y
2 Water Heater Change-Out - Residential $139 Y
3 Re-Roof - Residential (without calculations) $279 Y
4 Siding - Residential $279 Y
5 Service Panel Upgrade - Residential $186 Y
6 Battery Backup Storage - Residential $186 Y
7 Electric Vehicle Charger - Residential $186 Y
8 Generator - Residential $186 Y
9 Rooftop Solar Permit - Residential
a) 15kW or less $450 [a] N
b) Above 15kW $450 base fee, plus $15 per kW for each
kW above 15kW
[a] N
10 Rooftop Solar Permit - Non-Residential
a) 50kW or less $1,000 [a] N
b) 51kW – 250kW $1,000 base fee, plus $7 per kW for each kW above 50kW up to 250kW
[a] N
c) Above 250kW $2,400 base fee, plus $5 per kW for each kW above 250 kW
[a] N
11 Ground-Mount Solar $371 Y
12 Swimming Pool/Spa Equipment Change-out Only $186 Y
13 Swimming Pool Replaster $186 Y
14 Residential Voluntary Seismic Retrofit $279 Y
15 Retaining Wall / CMU Wall
a) Wall Under 6' in height $371 Y
b) Wall Over 6' in height
i) Up to 100 LF $743 Y
ii) Each Additional 100 LF $46 Y
16 Window / Sliding Glass Door - Retrofit / Repair
a) Up to 5 $186 Y
b) Over 5 See Permit Fee Table N
17 Fences Requiring a Building Permit $186 Y
[a] Total fees shall not exceed amounts outlined in California Government Code 66015(a)(1).

A. Fees for Commonly Requested and Minor Miscellaneous Building Permit Types. Fees shown in this section (Section A.) include all applicable inspection, and plan review fees. Additional permit processing fees apply. Additional fees may apply for services provided by other City Departments (e.g. Planning Review), Technology Enhancement Fees, and Fees Collected on Behalf of Other Agencies.

Fee Description

Page 152 of 218 ends

City of Morro Bay

BUILDING FEES
Fee Note CPI
1 Building Permit and Plan Review Fee
Based on Valuation as Determined by the Building Official (50% due at submittal / 50% due at issuance) (fee is calculated at "a+b+c")
a) Valuation: from $1 - $3,000 $256 Y
b) Valuation: applies to portion above $3,001 and below $1,000,000 .033 x total valuation Y c) Valuation: applies to portion above $1,000,000 .0094 x portion of valuation over $1,000,000
Y
Fee Description
Determination of Valuation for Fee-Setting Purposes
Project valuations shall be based on the total value of all construction work, including all finish work, roofing, electrical, plumbing, heating, air conditioning, elevators, fire-extinguishing systems and any other permanent equipment. If, in the opinion of the Building Official, the valuation is underestimated on the application, the permit shall be denied, unless the applicant can show detailed estimates to meet the approval of the Building Official. Final building permit valuation shall be set by the Building Official. For determining project valuations for new construction, the Building Official may use data published by the International Code Council (ICC) (building valuation data table, typically updated in February and August of each year). The final building permit valuation shall be set at an amount that allows the City to recover its costs of applicant plan check, permit and inspection activities.

Note: For construction projects with permit fees calculated using Section B, additional fees apply for permit issuance. Additional fees may apply for services provided by other City Departments (e.g. Planning Review), and Fees Collected on Behalf of Other Agencies (e.g. State of California).

B. Permit and Plan Review Fee for New Buildings, Additions, Tenant Improvements, Residential Remodels, and Combined Mechanical, Electrical, and/or Plumbing Permits

Page 153 of 218 ends

City of Morro Bay

BUILDING FEES
Fee Note CPI
1 Permit Processing Fee $77 Y
2 In-lieu Housing Fee (if unit not affordable housing) - per square foot $0.45 N 3 General Plan Maintenance 8% surcharge on all Building Permits N 4 I.T. Service Fee $0.0075 x valuation (valuation capped at $1,000,000)
N
5 Strong Motion Instrumentation (SMI) Fee Calculation
a) Residential $0.50 or valuation x .00013 N
b) Commercial $0.50 or valuation x .00028 N
6 Building Standards (SB 1473) Fee Calculation (Valuation) a) $1 - $25,000 $1 N
b) $25,001 - $50,000 $2 N
c) $50,001 - $75,000 $3 N
d) $75,001 - $100,000 $4 N
e) Each Add'l $25,000 or fraction thereof Add $1 N
7 Temporary Certificate of Occupancy (per 30 Days) $464 Y 8 Building Re-Address Processing $89 Y
9 Demolition
a) Demolition - Commercial $339 Y
b) Demolition - Residential $226 Y
10 Unsafe Building repair, demolition or moving structure Charged at Cost N 11 Permits – Change Ownership/Add Contractor-Per Request $181 Y 12 Permit/Application Reinstatement Fee $232 Y
13 Permit Extension of Time-Per Request $89 Y
C. Other Fees
Activity Description

Page 154 of 218 ends

City of Morro Bay

BUILDING FEES
Fee Note CPI
C. Other Fees
Activity Description
Other Fees
14 After Hours Inspection (per hour) (4-hour minimum) $223 Y 15 Re-inspection Fee (2nd Time or More) (per hour) $186 Y 16 Additional Plan Review required by changes, additions, revisions to the approved plans. Fee is per hour with a 1 hour minimum
$186 Y
17 Additional Plan Review Required, applies to 3rd resubmittal (4th overall submittal) (per hour)
$186 Y
18 Use of outside consultants for special plan checking and inspection Charged at Cost + 25% Administration Fee
N
19 Duplicate Copy of Permit $31 Y
20 Duplicate Copy of Certificate of Occupancy $31 Y
21 Construction and Demolition Waste Management Review Fee $93 Y 22 Inspection for which no fee is otherwise indicated - per hour, 1 hour minimum – Use for Certificate of Occupancy
$186 Y
Violation Fees
23 Fee for commencing construction without permit(s). This is in addition to the standard building permit fees.
2x the permit fee N

Page 155 of 218 ends

City of Morro Bay

BUILDING FEES
Group (2021 International Building Code) IA IB IIA IIB IIIA IIIB IV VA VB A-1 Assembly, theaters, with stage 335.89 324.58 316.94 304.93 286.87 278.00 295.62 266.02 257.55 A-1 Assembly, theaters, without stage 307.39 296.08 288.44 276.42 258.37 249.50 267.12 237.51 229.05 A-2 Assembly, nightclubs 269.94 261.93 254.48 245.85 230.56 223.99 237.02 209.57 202.79 A-2 Assembly, restaurants, bars, banquet halls 268.94 260.93 252.48 244.85 228.56 222.99 236.02 207.57 201.79 A-3 Assembly, churches 311.88 300.57 292.93 280.91 263.30 254.43 271.60 242.45 233.98 A-3 Assembly, general, community halls, libraries, museums 266.07 254.76 246.12 235.10 216.33 208.46 225.80 195.47 188.01 A-4 Assembly, arenas 306.39 295.08 286.44 275.42 256.37 248.50 266.12 235.51 228.05 B Business 260.69 251.13 241.86 231.65 210.99 202.73 222.56 186.21 177.81 E Educational 273.46 263.96 255.62 245.04 228.69 217.00 236.61 200.36 193.94 F-1 Factory and industrial, moderate hazard 160.20 152.78 143.34 138.64 123.55 117.41 132.48 102.44 95.93 F-2 Factory and industrial, low hazard 159.20 151.78 143.34 137.64 123.55 116.41 131.48 102.44 94.93 H-1 High Hazard, explosives 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 0.00 H234 High Hazard 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 85.50 H-5 HPM 260.69 251.13 241.86 231.65 210.99 202.73 222.56 186.21 177.81 I-1 Institutional, supervised environment 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 I-2 Institutional, hospitals 434.15 424.59 415.32 405.12 383.35 0.00 396.02 358.57 0.00 I-2 Institutional, hospitals 434.15 424.59 415.32 405.12 383.35 0.00 396.02 358.57 0.00 I-3 Institutional, restrained 295.86 286.31 277.03 266.83 247.95 238.69 257.74 223.17 212.77 I-4 Institutional, day care facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 M Mercantile 201.37 193.36 184.91 177.28 161.72 156.15 168.45 140.73 134.95 R-1 Residential, hotels 264.67 255.41 246.77 238.13 218.35 212.40 238.17 196.75 190.67 R-2 Residential, multiple family 221.32 212.06 203.42 194.78 175.96 170.01 194.82 154.36 148.28 R-3 Residential, one- and two-family 209.61 203.74 198.94 195.12 188.41 181.45 191.77 175.86 165.67 R-4 Residential, care/assisted living facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 S-1 Storage, moderate hazard 148.46 141.04 131.60 126.90 112.12 105.97 120.74 91.00 84.50 S-2 Storage, low hazard 147.46 140.04 131.60 125.90 112.12 104.97 119.74 91.00 83.50 U Utility, miscellaneous 114.09 107.37 99.89 95.60 85.13 79.54 90.99 67.39 64.19 Building Valuation Data Table

Page 156 of 218 ends

City of Morro Bay

PLANNING FEES
Fee Note CPI
Affordable Housing In-Lieu
1 Funding assistance application fee No Fee N
2 Reasonable Accommodation (ADA) fee (no fee required if in conjunction with other discretionary permit)
No Fee N
Coastal Permits - May be billed at direct cost
3 Coastal Development Permit (CDP) (Administrative) $2,072 Y 4 Coastal Permit in combination with Conditional Use Permit No Fee N 5 Coastal Permit in combination with Tentative Parcel Map or Tentative Tract Map
No Fee N
6 Regular CDP Without CUP (Planning Commission) - New single family and single family additions over 25% in coastal appeals area, Multiple Dwelling, Office, Commercial, Convention, Industrial & Institutional
$18,126 Y
7 Additions between 10% and 25% to a Single Family Dwelling in Coastal Appeals area (Planning Commission)
$8,618 Y
8 Emergency Permit (excluding required regular CDP) $1,521 Y 9 Other administrative – Tree Removal, private $837 Y
Environmental - May be billed at direct cost
10 Notice of Exemption $98 Y
Negative Declaration $5,929 Y
12 Mitigated Negative Declaration, Contracted Out Contract amount + 25% administrative fee;
$12,600 Deposit
Y
13 In House MND - Fee per Application $9,786 Y
14 Filing Fee - for environmental document
a) City $286 Y
b) County $81 [a] N
15 Environmental Impact Report
(Contract amount + 25% administrative fee to be deducted from deposit) $10,000 deposit N
Activity Description

Page 157 of 218 ends

City of Morro Bay

PLANNING FEES
Activity Description Fee Note CPI
Miscellaneous
16 Sidewalk Vending Permit - Fee for both Initial fee and annual renewal fee $487 Y 17 Letter regarding land use confirmation or other research – per hour cost $197 Y 18 Development Agreement – charged at fully allocated hourly rates for all personnel involved, plus any outside costs
$10,000 deposit N
19 Extra Planning Commission Meeting -Applicant Requested Continuance $3,152 Y 20 Fine, in addition to permit fee Two times the permit fee + plus $51 per day – after

N
21 Appeal of City Decision, Excluding Coastal Development Permits in the Appeals Jurisdiction and Short-Term Rental Permits – Refundable if Appellant Prevails $370 N
22 Appeal of Short-Term Rental Permit Denials $652 Y
23 Telecomm Facility – Administrative $226 Y
24 Street name/Rename Processing $518 Y
25 Commercial Cannabis Operating Permit – New $12,965 Y 26 Commercial Cannabis Operating Permit – Annual Renewal $7,595 Y 27 Vacation Rental Monitoring and Administration Fee- annual permit fee $788 Y 28 Vacation Rental Waitlist Application Fee $50 NEW N
29 Conceptual Review Fee – Fee is credited toward any future discretionary permit application within 24 months. Per Application
$6,896 Y
Notification Fees
30 Planning Commission Hearing $591 Y
31 Administrative Permit Noticing $493 Y
Sign Permits
32 Sign Permit $394 Y
33 Sidewalk Sign or Dock Sign Permit $197 Y
34 Sign Exception Permit $4,622 Y
35 Master Sign Program - New $788 Y
36 Master Sign Program amendment $394 Y
37 Fines – Temporary, beyond time allowed by Ordinance – per day after notice given
$67 Y
38 Fines – Permanently attached sign w/o permit – per day after notice $67 Y

Page 158 of 218 ends

City of Morro Bay

PLANNING FEES
Activity Description Fee Note CPI
Subdivisions (May be billed at direct cost)
39 Tentative Parcel Map Application $9,818 Y
40 Tentative Tract Map 0 to 10 lots, add $100.00 per lot over 10 lots, cost per map $18,126 Y 41 Lot Line Adjustment, per application $3,152 Y
42 Certificate of compliance (legal determination) – initial fee covers up to 4 lots. $1,576 Y 43 Additional fee per lot over 4 lots $296 Y
44 Lot Mergers $1,576 Y
Text Amendments & Annexations - Shall be billed at direct cost 45 Zone Ordinance Changes/Local Coastal Plan
If contracted – contract amount + 25% administrative fee. Fee amount becomes an initial deposit.
varies N
46 Minor (single section revisions/additions) deposit for cost of staff and outside consultant
$7,881 Y
47 Major (multiple sections revised/added) deposit for cost of staff and outside consultant
$15,762 Y
48 Specific Plan (Billed as deposit with charges at the fully allocated hourly rates for all personnel involved + any outside costs). If contracted = cost + 25% administration fee. Fee amount becomes an initial deposit for cost of staff and outside consultant.
$7,881 Y
General Plan/Local Coastal Plan or Zoning Amendment - Shall be billed at direct cost. If contracted – cost + 25% administrative fee. Fee amount becomes an initial deposit.
49 Minor (single section revisions/additions) deposit for cost of staff and outside consultant
$7,881 Y
50 Major (multiple sections revised/added) deposit for cost of staff and outside consultant
$15,762 Y
51 Planned Development (-PD) Overlay District Plan (processed concurrent with Conditional Use Permit)
minimum deposit fee $10,000 N
52 Annexations – Deposit to be determined by staff. Billed at fully allocated staff cost. If contracted – contract amount + 25% administrative fee. Deposit for cost of staff and outside consultant
$10,000 deposit N
Time Extensions
53 Time Extension - Administrative $394 Y
54 Time Extensions for Tract Maps and Parcel Maps. Used after exhaustion of administrative time extensions above (Planning Commission) $5,162 Y
55 Time extension for CUP, regular Coastal Permits and variance. Used after exhaustion of administrative time extensions above (Planning Commission) $3,733 Y

Page 159 of 218 ends

City of Morro Bay

PLANNING FEES
Activity Description Fee Note CPI
Use Permits
All use permits may be billed at direct cost at the discretion of the Community Development Director and the scheduled fee would then be deemed as a deposit. All Projects in the Planned Development Overlay require a Use Permit 56 Conditional Use Permit (CUP) $18,126 Y
57 Design Review Permit (Planning Commission) $10,147 Y 58 Design Review Permit (Administrative) $3,349 Y
59 Design Review Permit in Combination with Regular CDP No Fee N 60 CUP for Occupancy Change in Non-residential Zones $7,684 Y 61 CUP for additions to non-conforming uses, not adding units $8,791 Y 62 Minor Use Permit $3,387 Y
63 Temporary Use Permit – Longer than 10 days $2,535 Y
64 Temporary Use Permit – 7 consecutive days or 10 non-consecutive days $911 Y 65 Revision to Existing Permits (Planning Commission) Major Revision $10,048 Y 66 Major revision while processing $6,305 Y
67 Minor revision to existing permits (Administrative minor revision) $1,035 Y 68 Modification (Planning Commission) $8,324 Y
69 Modification (Administrative) $1,035 Y
70 Variance $7,881 Y
71 Variance or Modification (Planning Commission) processed with other permits $1,506 Y Document Storage Fee - Planning & Building
72 First page of plan set $18 N
73 Fee for each additional page of plan set $8 N
74 First non-plan set page (8 1/2 x 11 to 11 x 17) $5 N 75 Fee for each additional non-plan set page $1 N

Page 160 of 218 ends

City of Morro Bay

PLANNING FEES
Activity Description Fee Note CPI
Hourly Billing Rates and/or Rates for Services Not Otherwise Listed Above 76 In-House Planning (per hour) $197 Y
77 Specialized Attorney Review Actual Cost N
78 Contract Service Providers Actual Cost + 25% Admin Fee N [a] Amount shown is intended to mirror County filing fee. In the event of discrepancy between amount shown and actual fee adopted by the County, the actual County fee shall supersede the amount shown. [b] In addition to amounts shown, applicant is responsible for all costs collected on behalf of other agencies (e.g., LAFCO), all costs of specialized attorney services, all outside agency/vendor costs, etc.

Page 161 of 218 ends

City of Morro Bay

ENGINEERING, ENCROACHMENT PERMIT, AND UTILITY SERVICES FEES Fee Note CPI

ENGINEERING DEVELOPMENT REVIEW FEES
City Engineer Map Review Fees Subdivisions - (Public Works) 1 Final Map - Tract, minimum fee (MBMC16.24.040J) $8,715 Y 2 Final Map – Tract, Per lot for every lot over 4 lots $396 Y 3 Final Parcel Maps $6,338 Y
4 Map Amendment Review, minimum fee $2,377 Y
PUBLIC IMPROVEMENT PLANS (Inspections/Plan Review - time and materials costs may be added to minimum, when actual cost exceeds the minimum fee) 5 Public/Subdivision Improvement Plan Check, and Inspection as a Percentage of the approved Engineer’s estimate for Subdivision Improvements 7% N
6 Lot Line Adjustment, per application $3,169 Y
7 Lease Line Adjustment, per application $4,753 Y
Abandonment Process
8 Street/R-O-W Abandonment Process $9,507 Y
9 Summary Abandonment $4,753 Y
Right of Way Dedication, per permit $792 Y
Activity Description

Page 162 of 218 ends

City of Morro Bay

ENGINEERING, ENCROACHMENT PERMIT, AND UTILITY SERVICES FEES Activity Description Fee Note CPI
Encroachment Permits (MBMC13.16.140)
Time and materials costs may be added to minimum, when actual cost exceeds the minimum fee (Public Works)
11 Regular – Surface Improvements (up to 20 lineal feet; includes three inspections) $396 Y 12 Each additional 20 lineal feet (includes (1) three inspections) $198 Y 13 Regular – Underground Improvements
a) 0-50 Square Feet $792 Y
b) 51-100 Square Feet $990 Y
c) 101+ Square Feet $990 + $1.54/sf over 100sf Y
14 Special Encroachment Agreement - Private Encroachments into the Public R/W a) Applicant Provided Electronic Exhibit (8 1/2" x 11") $792 Y b) City Provided Electronic Exhibit (8 1/2" x 11") $1,584 Y 15 Annual Utility Encroachment Permit $5,546 Y
16 Wide Load Permit with Traffic Control Plans - Per Year (Set by State of California) $90 N 17 Wide Load Permit with Traffic Control Plans - One Time (Set by State of California) $16 N 18 Temporary Encroachment Agreement Permit
Permit for non-construction activities that encroach into City R/W for a limited time. (e.g., Rolloff/Dumpster, Storage Container, Restricted Parking, etc.) $198 Y
19 Administrative citation for failure to correct a violation shall be charged per 1.03.050 of the Municipal Code
See Municipal Code N
Streets & Sidewalks
20 Agreement for Deferral of Improvements (pending Planning Commission and City Council approval) - Plus current San Luis Obispo Recording Fees $3,169 Y
Planning and Engineering Development Review Fees
21 Additional Plan Review Required, applies to 3rd resubmittal (4th overall submittal) $198 Y Storm Water Fees (Public Works)
Single Family
22 Planning review of preliminary stormwater plan, per application $198 Y 23 Building permit review of stormwater plan, per permit $396 Y 24 Inspection of stormwater facility/erosion control, per application $198 Y Commercial/Multi-Family
25 Planning review of preliminary stormwater plan, per application $396 Y 26 Building permit review of stormwater plan, per permit $990 Y 27 Inspection of stormwater facility/erosion control, per application $594 Y

Page 163 of 218 ends

City of Morro Bay

ENGINEERING, ENCROACHMENT PERMIT, AND UTILITY SERVICES FEES Activity Description Fee Note CPI
Trees
28 Notification $396 Y
29 Appeal to Planning Commission $1,584 Y
30 Re-appeal to City Council (if denied by Planning Commission) $1,584 Y 31 Tree Removal Permit (MBMC12.08.110) $396 Y
Inspection and Review Fees (Public Works)
32 Review encroachment permit application exhibit for changes to approved building plans $396 Y 33 Additional inspection required after (includes 3 three inspections) $198 Y 34 Fee for commencing construction without permit(s).

This is in addition to the standard Encroachment Permit. 2 times the permit fee N
35 Traffic Control Plan Check Inspection, per submittal $198 Y 36 Post-Construction Stormwater Requirements (PCRs) Inspection (Commercial/MultiFamily)Charged at Cost + 25% Administration Fee
N
37 Trench/Asphalt Resurfacing Inspection
a) 0-50 Square Feet $198 Y
b) 51-100 Square Feet $297 Y
c) 101+ Square Feet $297 + $1.50/sf over 100sf Y
38 Use of Outside Engineering Consultants for Special Plan Checking and/or Inspection Charged at Cost + 25% Administration Fee
N

Page 164 of 218 ends

City of Morro Bay

ENGINEERING, ENCROACHMENT PERMIT, AND UTILITY SERVICES FEES Activity Description Fee Note CPI
WATER
39 Water Meter Installation Contractor provides service line install. Meter cost is the
actual cost of the meter plus
the actual costs of parts for
City install of meter and
meter box. Partial credit may
apply if staff are able to use
existing parts.

N
40 Connection Permit - This is in addition to an Encroachment Permit. $270 Y 41 Water Meter Re-Read $90 Y
42 Reconnection Fee for Non-Payment of Water Service
a) During Regular Business Hours
i) Low Income $63 [a] Y
ii) All Others $135 Y
b) During Non-Business Hours
i) Low Income $188 [a] Y
ii) All Others $464 Y
43 Water meter lock and any other damage. Subject to Police investigation and potential prosecution for theft of water and tampering with City Property. 44 Curb Stop Replacement/Repair, when a City Curb Stop is broken by customer Actual cost of time and materials
NEW N
45 Water Meter Testing (Remove, test and replace meter), per test plus outside cost of testing. Fee refunded if meter test indicates an overage of greater than 2%. $338 Y
46 Water Equivalency Unit (WEU) "In-Lieu" Fee - per WEU required. In-lieu fee is an alternative for an applicant that does not provide the WEU offset, as required and set by Council Resolution
2 x $3,851/WEU required =
$7,702
N
47 Fire Hydrants Meter Installation and Removal for Contractor Use (MBMC13.04.360):

Rental, per day plus cost of water at current rate structure. $338 Y
48 Hydrant Meter Rental, per day plus cost of water at current rate structure. $5 per day and $1,500 refundable deposit. Water

N
49 Certificate of Compliance – Water Retrofit $101 Y

Page 165 of 218 ends

City of Morro Bay

ENGINEERING, ENCROACHMENT PERMIT, AND UTILITY SERVICES FEES Activity Description Fee Note CPI

WASTEWATER
50 Connection Permit - This is in addition to an Encroachment Permit. $270 Y 51 Raising Manhole to Grade, fee per manhole $203 Y
52 Sewage Spill Cleanup - cost of providing service Fully Allocated Hourly Rate for all staff involved
N
Pre-Treatment Inspections
53 FOG Inspection $62 Y
54 FOG Re-inspection $62 Y
55 Pre-Treatment Class S annual permit fee $477 Y
56 Pre-Treatment Class G annual permit fee $45 Y
57 Pre-Treatment Class F annual permit fee $15 Y
Other Fees
58 Dedication 15 Gallon Tree and Plaque Actual Cost of Labor and Parts
N
59 Dedication Bench and 1 Plaque Space Actual Cost of Labor and Parts
N
60 Dedication Whole Bench with 3 Plaque Spaces Actual Cost of Labor and Parts
N
61 Dedication for 1 or 2 Plaque Space(s) on existing Memorial Bench Actual Cost of Labor and Parts
N
62 Other Park Amenity Dedication To Be Determined on an individual basis
N
Flood Hazard Development Permit (MBMC14.72.040)
Time and materials costs may be added to minimum, when actual cost exceeds the minimum fee (Public Works)
63 Flood Hazard Development Permit, minimum fee
a) SFR and Duplex $594 Y
b) Commercial and Multi-family up to 1/2 Acre $792 Y
c) Commercial and Multi-family over 1/2 Acre $1,188 Y
64 Flood plain letter $198 Y
[a] For residential customers who demonstrate to the City a household income below 200 percent of the federal poverty line, the City will limit any service restoration charges during normal operating hours to fifty dollars ($50), and during nonoperational hours to one hundred fifty dollars ($150). These limits are subject to an annual adjustment for changes in the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U) beginning January 1, 2021.
[b] Fees listed are based on the estimated number of hours required to perform a standard service request and the typical cost of materials required to perform the requested service. For service requests that are anticipated to require efforts or materials, in excess of those typically required, the Department reserves the right to bill the service recipient, for Department costs anticipated to be incurred in excess of the fee shown in this schedule.

Page 166 of 218 ends

City of Morro Bay

FIRE FEES
Fee Charge Basis Note CPI

FIRE SPECIFIC ITEMS
1 Water Based Fire Protection Systems: [a]
a) Fire Sprinkler Commercial/Multi Family/Other - New System i) Plan Review (up to 50 heads) $516 per installation Y ii) Inspection (up to 50 heads) $704 per installation Y b) Fire Sprinkler Commercial/Multi Family/Other - Alteration i) Plan Review (up to 25 heads) $235 per installation Y ii) Inspection (up to 25 heads) $329 per installation Y c) Fire Sprinkler, Per additional head - New or Alteration i) Plan Review $1 per head Y
ii) Inspection $2 per head Y
d) Fire Sprinkler Single Family/Duplex - New System
i) Plan Review $375 per installation Y
ii) Inspection $563 per installation Y
e) Fire Sprinkler Single Family/Duplex - Alteration of Existing System i) Plan Review $141 per installation Y
ii) Inspection $282 per installation Y
f) Standpipe
i) Plan Review (per vertical standpipe) $375 per system Y ii) Inspection (per vertical standpipe) $751 per system Y g) Fire Protection Underground System
i) Plan Review $563 each Y
ii) Inspection $751 each Y
h) Per Additional Sprinkler Riser or Hydrant
i) Plan Review $188 each Y
ii) Inspection $375 each Y
2 Fire Alarm System: [a]
a) Fire Alarm - New System
i) Plan Review (up to 25 devices) $329 per system Y
ii) Inspection (up to 25 devices) $469 per system Y
b) Fire Alarm - Alteration
i) Plan Review (up to 5 devices) $188 per system Y
ii) Inspection (up to 5 devices) $282 per system Y
c) Per Additional Device
i) Plan Review - New or Alteration $3 per device Y
ii) Inspection - New or Alteration $4 per device Y
3 Alternative Automatic Extinguishing Systems: [b]
a) Dry, Wet, CO2, Halon, UL 300, Clean Agent, Spray Booth, Other i) Plan Review $282 per system Y
ii) Inspection $422 per system Y
Activity Description

Page 167 of 218 ends

City of Morro Bay

FIRE FEES
Activity Description Fee Charge Basis Note CPI
4 Other Fire Construction Reviews and Inspections: [b]
a) LPG, Cryogenics, Compressed Gas, Medical Gas, Battery Storage Systems, Industrial Oven, & other Fire Construction Permit i) Plan Review $469 per system Y
ii) Inspection $563 per system Y
b) Public School Access & Water Supply Plan Check (hourly) - Minimum 1 hour review deposit required
$188 per review [c] Y
c) Alternative Materials & Methods of Construction (hourly) - Minimum 1 hour review deposit required
$188 per review [c] Y
5 Fire Code Verification:
a) Operational Permit, Special Event or Temporary Use Event Plan Review/Application Code Review and Presubmittal Planning Related Reviews (hourly) - Minimum 1/2 hour review deposit, additional time billed at hourly rate
$94 per 1/2 hour [c] Y
b) Operational and Special Event permit inspection (hourly) - additional time billed at hourly rate
$188 per hour [c] Y
c) Special Events or Temporary Use Events Review - Minimum 1/2 hour review, additional time billed at hourly rate
$188 per hour [c] Y
d) Inspection Outside of Normal Work Hours - Hourly Rate $225 per hour [f] Y 6 California Fire Code Verification $188 per hour Y
7 Plan Review Performed by City-Approved Consultant Consultant Cost + 15% Admin Fee
N

OTHER MISCELLANEOUS FEES
8 Fire Hazard Real Estate Inspection Fee $188 per hour; 1 hour minimum
Y
9 Annual R-1/R-2 Occupancy Inspection: [b]
a) Base Fee (per building) $94 per inspection Y
b) Per Unit Fee $6 per unit beyond 3 Y
10 Fire Clearance Inspection: [d]
a) Less than 500 SqFt $141 per certificate Y
b) 501 - 1,000 SqFt $188 per certificate Y
c) 1,001 - 3,000 SqFt $282 per certificate Y
d) Greater than 3,000 SqFt $516 per certificate Y
11 Research $94 per half-hour Y
12 Re-Inspection Fee $188 per hour [h] Y
13 Service Required in Excess of Standard. Applies to all fees listed in schedule. See footnote
$188 per hour [e] Y
14 Supplemental Plan Check Fee (per hour for more than two reviews) $188 per hour Y

Page 168 of 218 ends

City of Morro Bay

FIRE FEES
Activity Description Fee Charge Basis Note CPI
15 New Construction Plan Check: [g]
a) A - Assembly $375 each Y
b) B, I, M - Business, Institutional, Mercantile $375 each Y c) E, R-2 - Educational, Multi-Family $375 each Y
d) F, S, H - Factory, Storage, Hazardous $469 each Y
e) All Tenant Improvements $188 each Y
f) U - Utility Structures and Buildings $188 each Y
g) All Shell Buildings $375 each Y
h) Other $188 per hour Y
16 Records Management $10 per sheet N
17 Work Without a Permit 2x applicable fee N
18 Special Request for Fire Department Personnel Services overtime rate by rank
per person N
[f] Inspection outside normal work hours will require hourly fees in addition to other required fees. [g] Planning submittals for fire review and related correspondence, meetings, etc. may be charged for at hourly rate during the construction plan review.
[h] Fees associated with review of tank installations/underground storage/hazardous materials will be set to match fees adopted by regional CUPA.
[a] Fee includes up to two plan checks or three inspections. Additional costs to be recovered at staff hourly rate. [b] Fee includes up to two plan checks or two inspections. Additional costs to be recovered at staff hourly rate. [c] Actual costs - may also be charged by actual costs using the fully burdened hourly rates plus any outside consultant costs if applicable.

Review time exceeding initial hours assumed for establishing deposit is billed at hourly rate. [d] Fee includes research and up to two inspections. Additional costs to be recovered at staff hourly rate. [e] Each fee listed in this schedule is based on the estimated number of hours required to perform a standard service request. The standard number of hours estimated can be calculated by dividing the fee amount by $188, the Division's fully-burdened hourly rate. For example, a fee amount of $376 assumes roughly 2.00 hours will be required to perform a standard request for the fee related service. Review and inspection efforts that exceed the standard number of hours used to calculate the fee by more than one hour will be billed hourly for any time spent in excess of the standard hours built into the fee.

Page 169 of 218 ends

City of Morro Bay

FIRE FEES
Fee Charge Basis Note CPI
1 Fire & Safety Inspection Program
(Fees Collected Through Business Licensing)
a) B2 Business Inspection (4-Yr Self Inspection Program) $50 Each Y b) Non-B2 Business Inspection (Annual Inspection) $188 Each Y 2 Engine Company Business Inspection
a) First Inspection No Charge Each N
b) Second Inspection No Charge Each N
c) Third and Subsequent Inspections $408 Each Y
3 Annual Weed and Hazard Abatement
a) First Inspection No Charge Each N
b) Second and Subsequent Inspections $272 Each Y
c) Administrative Citation for Failure to Correct a
Violation
See MBMC Each N
4 Incident Response
a) Negligent Incidents: Response Due to
Negligent/Malicious Act (e.g., DUI Traffic Accident,
Climber on Morro Rock, Incendiary Fire, Negligent
Hazardous Material Incident, Negligent Confined Space
Incident, etc.)
Personnel Charges, As
Specified in Equipment and
Personnel Charges, Plus Actual
Cost of Materials and Outside
Services
Each N
b) Excessive or Malicious False Alarms: Emergency
Response Due to "Failure to Notify" When Working on
or Testing Fire/Alarm System
Personnel Charges, As
Specified in Equipment and
Personnel Charges, 0.5 hours
min
Each N
c) Alarm System Malfunction Resulting in 2 in 30 Days or 3 in 12 Months
Personnel Charges, As
Specified in Equipment and
Personnel Charges, Plus Actual
Cost of Materials
Each N
5 Cause and Origin Investigation Reports $435 Per Report N 6 Non-Renewal of Required Annual Permit 2x Applicable Permit Fee N 7 Failure to Obtain Permit 2x Applicable Permit Fee N
8 Administrative Citation for Failure to Correct a Violation See MBMC Each N Activity Description

Page 170 of 218 ends

City of Morro Bay

FIRE FEES
Activity Description Fee Charge Basis Note CPI
9 Equipment and Personnel Charges
a) Equipment CalOES CFAA Rate N
b) Personnel
i) Fire Chief $276 Per Hour Y
ii) Deputy Chief / Fire Marshal $188 Per Hour Y
iii) Administrative Technician $100 Per Hour Y
iv) Fire Captain / Paramedic $154 Per Hour Y
v) Fire Engineer $133 Per Hour Y
vi) Firefighter $122 Per Hour Y

Page 171 of 218 ends

City of Morro Bay

POLICE FEES
Fee Charge Basis Note CPI
1 Tow/Taxi Service Provider Application Fee $2,231 Y
2 Taxi Operator Permit Application Fee $1,195 Y
3 Taxi Operator Permit Application Renewal Fee $183 Y
4 Second Hand Dealer Permit - City Application Fee (does not include Department of Justice fee) (MBMBMC5.40.330)
$1,402 Y
5 Second Hand Dealer Permit renewal - City Application Fee (does not include Department of Justice fee)
(MBMC5.40.330)
$183 Y
6 Massage Therapist/Parlor Permit Application Fee
(MBMBMC5.40.330)
$183 Y
7 Special Events Hourly Fully Burdened Hourly
Rate for all staff
[a] N
8 ABC Permit (each permit) $104 Y
9 Special Event Equipment Fee-Per day, Per message board $56 Y Support Services Activity
10 Digital Photo Reproduction to CD, per device $5 N
11 Audio/Video Tape Reproduction - per device $5 N
12 Record Searches/Reviews/Clearance/ Responses - per hour, 1 hour minimum-fee per letter
$158 Y
Officer Activity
13 Equipment Citation Sign Off $17 N
14 Vehicle Impound Fee Administrative Costs (CVD 22850.5) $241 Y 15 Abandoned Vehicle Removal (junk vehicles/parts) $241 Y 16 Firearms-seizure/storage (PC 33880) $158 Y
Activity Description

Page 172 of 218 ends

City of Morro Bay

POLICE FEES
Activity Description Fee Charge Basis Note CPI
State Mandated Costs
17 Concealed Weapons Permit $215 [b] Y
18 Renewal of Concealed Weapons Permit
a) Renewal Permit $82 Y
b) Amended Permit $11 Y
19 Subpoena
a) Civil Subpoena Appearance Fee (per day; per employee) Actual Cost; with $275 per day initial amount
[c],[d],[e] N
b) Subpoena Duces Tecum / Civil Subpoena for Records
i) Compliance Fee $15 [f] N
ii) Standard Document Reproduction - per page up 8.5" x 14"
$0.10 [f] N
iii) Microfilm Reproduction - per page $0.20 [f] N
iv) Oversize Document Reproduction or Documents
Requiring Special Processing
Actual Cost [f] N
v) Clerical Costs (per hour) $24 [f] N
vi) Postage Actual Cost [f] N
vii) Third Person Witness of Offsite Record Retrieval and Return
Actual Cost [f] N
20 Delinquent Parking Citation Copy, per page (VC 40206.5) $0.40 N 21 Repossessed Vehicle (set by California GC 41612) $15 N 22 Live Scan Fingerprint Fees (PC 13300(e))-per request $53 Y Cost Recovery
23 DUI Emergency Response (MBMC3.40.030) Actual Cost Per Government Code Section 53155, charge
the actual costs
incurred up to $12,000
per response for all
responding personnel.

N
False Alarm Response (after 3rd false alarm in a year)
(MBMC 9.22.020)
24 1st response within a year No Charge N
25 2nd response within a year No Charge N
26 3rd and subsequent response within a year $449 N

Page 173 of 218 ends

City of Morro Bay

POLICE FEES
Activity Description Fee Charge Basis Note CPI
Commercial Cannabis Business Permits
27 Commercial Cannabis business – Initial employee background investigation fee for each regular employee investigation conducted.
$622 Y
28 Commercial Cannabis business - Annual employee
background investigation renewal fee for each regular
employee investigation conducted.
$311 Y
29 Commercial Cannabis business – Initial
owner background investigation fee for each owner
investigation conducted.
$726 Y
30 Commercial Cannabis business – annual
owner background investigation fee for each owner
investigation conducted.
$363 Y
[f] California Evidence Code Section 1563.
[a] Based on benefitted, overtime rate for personnel providing support. [b] Does not include DOJ or other fees (PC25455), fee per permit. 20% of permit fee is paid at time of application, 80% of permit fee paid upon issuance. Actual costs of psychological testing, if any, are added to the above fees. Permit requires fingerprinting. [c] Actual amounts paid shall be calculated in accordance with California Government Code 68096.1. (a) Any employee of a local agency who is obliged by a subpoena to attend a civil action or proceeding as a witness in litigation in a matter regarding an event or transaction that he or she perceived or investigated in the course of his or her duties, to which that local agency is not a party, shall receive the salary or other compensation to which he or she is normally entitled from that local agency during the time that he or she prepares for his or her response and appearance, during the time that he or she travels to and from the place where the court or other tribunal is located and while he or she is required to remain at that place pursuant to the subpoena. He or she shall also receive from that local agency the actual necessary and reasonable traveling expenses he or she incurred in complying with the subpoena. (b) The party at whose request the subpoena is issued shall reimburse the local agency for the full cost incurred by the local agency in paying the employee his or her salary or other compensation and traveling expenses as provided for in this section, for each day that the employee is required to remain in attendance pursuant to the subpoena. The amount of two hundred seventy-five dollars ($275), together with the subpoena, shall be tendered to that local agency for each day that the employee is required to remain in attendance pursuant to the subpoena. (c) If the actual expenses should later prove to be less than the amount tendered, the excess of the amount tendered shall be refunded. (d) If the actual expenses should later prove to be more than the amount tendered, the difference shall be paid to the local agency by the party at whose request the subpoena was issued. [d] Actual amounts paid shall be calculated in accordance with California Government Code 68097.2. (b) The party at whose request the subpoena is issued shall reimburse the public entity for the full cost to the public entity incurred in paying the peace officer, firefighter, state employee, trial court employee, or specified county employee his or her salary or other compensation and traveling expenses as provided for in this section, for each day that the peace officer, firefighter, state employee, trial court employee, or specified county employee is required to remain in attendance pursuant to the subpoena. The amount of two hundred seventy-five dollars ($275), together with the subpoena, shall be tendered to the person accepting the subpoena for each day that the peace officer, firefighter, state employee, trial court employee, or specified county employee is required to remain in attendance pursuant to the subpoena. (c) If the actual expenses should later prove to be less than the amount tendered, the excess of the amount tendered shall be refunded. (d) If the actual expenses should later prove to be more than the amount deposited, the difference shall be paid to the public entity by the party at whose request the subpoena is issued. [e] Salary/other compensation shall be determined based on the City's most current adopted salary schedule (top step) by position, subject to existing MOU provisions and minimums for court appearances. If preparation, service, or travel is provided during overtime hours, the City shall use overtime rate for calculating actual costs, subject to existing MOU provisions and minimums for court appearances.

Page 174 of 218 ends

City of Morro Bay

HARBOR FEES
Fee Note CPI
1 Commercial Fishing Slips – monthly rate per foot $8.52 Y 2 Commercial Fishing Slip Waiting List Deposit $435 N
3 Head Float Berth – monthly rate $309 y
4 Skiff Storage Fee – annual rate $107 y
Transient Slips – monthly sublease rate per foot
5 Commercial (set to market rate) $13.00 Y
6 Non-Commercial Fishing (set to market rate) $16.14 Y
Transient Slips – daily rate per foot
7 Commercial $1.21 Y
8 Non-Commercial Fishing $1.87 Y
9 T-Piers – daily rate per foot $0.46 Y
10 A1-5 Anchorage Area – first 5 days No Charge N
11 A1-5 Anchorage Area – daily rate/foot over 5 days. $0.43 Y Temporary Moorage – large vessels or equipment requiring special accommodation or assistance – per foot
$2.13 Y
Mooring Fees
Guest Mooring stay limited to 30 days in any 6-month period without prior approval of the Harbor Department.
13 City Moorings – monthly rate (No CPI applied; set to market) $380 N 14 Private Moorings – monthly rate $123 Y
15 Guest Moorings – daily rate per foot (No CPI applied. Set to market) $0.45 N 16 Mooring Ownership Transfer – private moorings $1,623 Y Impound Fee
17 Impound Fee $292 Y
18 Impounded Vessels – daily storage rate per foot $2.13 Y Activity Description

Page 175 of 218 ends

City of Morro Bay

HARBOR FEES
Activity Description Fee Note CPI
Service Fees

1. South T-Pier Hoist may only be used for fish unloading only in certain cases; see Harbor Department Rules and Regulations.

2. Dry Storage fee is for use of each approximate 12-foot by 30-foot space.

3. Triangle Lot Boat Storage fee is for use of each approximate 12-foot by 30-foot space; monthly
19 T-Pier Electrical Convenience Fee – daily rate $4.50 Y 20 South T-Pier Hoist – rate per use $21 Y
21 South T-Pier Hoist Fish Unloading – per hour $108 Y
22 Wharfage – rate per ton (set to market) $3 Y
23 Emergency Equipment Replacement $237 Y
24 Dry Storage – daily rate $12 Y
25 Dry Storage – monthly rate $128 Y
26 Triangle Lot Trailer/Boat Storage – monthly rate $145 N 27 Launch Ramp Haul Out - per foot $11 Y
28 Use of Work Float (a + b)
a) Base Fee for Delivery/Pick-Up of Float $130 Y
b) Daily Rental Fee
i) Small Float $15 N
ii) Large Float $30 N
29 Vacuum Sander Use (includes sander bag) $15 N
Administrative Citations
30 Administrative citation for failure to correct a violation shall be charged per 1.03.050 of the Municipal Code
See Municipal Code N

Page 176 of 218 ends

City of Morro Bay

HARBOR FEES
Activity Description Fee Note CPI
Liveaboard Fees
31 Liveaboard Permit Administration - Monthly $59 Y
32 Liveaboard Permit Inspection – Biennial $189 Y
33 Missed Scheduled Liveaboard Permit Inspection Appointment Personnel charges, as specified in Equipment
& Personnel Charges, 30-
minute min
N
Equipment & Personnel Charges
34 Vessel – per hour (personnel charges additional) $117 Y 35 Vehicle/Rescue Watercraft – per hour (personnel charges additional) $59 Y 36 A fee shall be charged when service delivery exceeds the standard allocated time for the service delivery, or for services requested which do not have an existing fee category, at the discretion of the Harbor Director, per hourly rates stated in Personnel Charges.

Personnel Charges, As
Specified in Equipment
and Personnel Charges,
Plus Actual Cost of
Materials and Outside
Services
NEW
37 Personnel Charges, Per Hour Per hour, per person – 1 hour minimum, unless
otherwise specified, at
current productive
hourly rate
N
a) Harbor Director $136 NEW N
b) Harbor Patrol Supervisor $110 NEW N
c) Harbor Business Manager $104 NEW N
d) Harbor Patrol Officer $95 NEW N
e) Office Assistant $45 NEW N
Launch Ramp Parking Fees
38 Daily Permit - Tow Vehicle & Trailer Spaces $12 N
39 Annual Permit - Tow Vehicle & Trailer Spaces $200 N
40 Failure to Pay Established Fee $60 N
41 Daily Permit - Single vehicle spaces $5 N
42 Annual Permit - Single vehicle spaces $83 N
Lease Administrative Fees
43 New Master Lease Negotiation & City Council Approval $3,714 Y 44 Other Actions Requiring City Council Approval (lease amendment, lease assignment & assumption, deed of trust approval, lease line adjustment, license agreement, consent of landowner, approval, building lease approval)
$1,857 Y
45 Sublease Approval $516 Y

Page 177 of 218 ends

City of Morro Bay

HARBOR FEES
Activity Description Fee Note CPI
Miscellaneous Fees
46 Cruise Ship Passenger Landing Fee, per passenger ($5,000 minimum) $10 N 47 Negligent Incidents:

Response due to negligent/malicious act (e.g., Boating DUI, Climber on Morro Rock, Unsafe Boating, Negligent Hazardous Material Incident, etc.) Personnel charges, as
specified in Equipment
& Personnel Charges, 2-
hour min, plus actuals
cost of materials &
outside services
N
48 Plan Check Personnel charges, as
specified in Equipment
& Personnel Charges, 30-
minute min
N

Page 178 of 218 ends

City of Morro Bay

RECREATION FEES
Resident /
Non-Profit Groups All Others Charge Basis Note CPI
Facility Rentals
1 Community Center
a) Auditorium - Full $116 $174 Per Hour Y
b) Auditorium – Half $70 $104 Per Hour Y
c) Multi-Purpose Room $64 $97 Per Hour Y
d) Lounge $52 $76 Per Hour Y
e) Studio $39 $58 Per Hour Y
f) Conference Room $20 $33 Per Hour Y
g) Kitchen [a]
i) Per Hour $32 $39 Per Hour [a] Y
ii) 8-Hours $162 $194 Per Day [a] Y
2 Veteran's Memorial Building
a) Assembly, Without Kitchen $52 $68 Per Hour Y
b) Complete, Without Kitchen $58 $76 Per Hour Y
c) Meeting, Without Kitchen $43 $57 Per Hour Y
d) Kitchen & Barbeque $31 $39 Per Hour Y
e) Kitchen - 8-Hours $162 $194 Per Day [a] Y
Activity Description
[a] Kitchen only rentals permitted Monday – Friday; weekend rentals must be combined with room rental. (Resident/ Non-Profit Groups). [b] The Recreation Services Manager shall set Resident/Non-Profit and Non-Resident/For-profit fees for Recreation Services activities and programs.

Page 179 of 218 ends

City of Morro Bay

RECREATION FEES
Fee Note CPI
Processing Fees
1 Cancellations 20% of invoiced costs N
2 Facility / Park / Beach / Field / Court $33 Y
3 Lila Keiser Park Ballfield $160 NEW N
4 Expedited Permit Fee-Non Refundable (within two weeks) $58 Y 5 Bounce House $45 Y
6 Alcohol/Security $45 Y
7 Public Special Event (all public space rentals) - Per Event, Non-refundable $445 Y 8 Recurring Public Special Event (all public space rentals) - Per Event, Non-refundable $223 NEW Y 9 Private Special Event - Per Event, Non-refundable $160 Y Security Deposit
The City reserves the right to require additional security deposit limits at its discretion.
10 No alcohol and no live music $250 N
11 Alcohol and/or live music $750 N
Alcohol and/or live music over 200 people $1,000 N
13 Bounce House $100 N
14 Organized Sporting Event $500 N
15 Public Special Event $750 N
16 Public Special Event $1,000 N
Facility Fees
17 100-200 participants $212 Y
18 201 or more participants $438 Y
19 Event set-up, per hour $64 Y
20 Event break down, per hour $64 Y
21 Veteran’s Memorial Building stage use, set-up and breakdown, flat rate $128 Y 22 Facility Attendant per hour $29 Y
Activity Description
[a] The Recreation Services Manager shall set Resident/Non-Profit and Non-Resident/For-profit fees for Recreation Services activities and programs.

Page 180 of 218 ends

City of Morro Bay

RECREATION FEES
1 Anchor Memorial Park Open Area 7 General Open Area 13 Del Mar Pickleball Courts 2 Bayshore Bluffs Open Area 8 Monte Young Open Area 14 Del Mar Tennis Courts 3 Centennial Parkway Open Area 9 Tidelands Park Open Area 15 Del Mar Park Hillside or Meadow 4 City Park Open Area 10 Coleman Park 16 Lila Keiser Park BBQ (Excluding Tournament Use)
5 Cloisters Park Open Area 11 Coleman Basketball Courts 17 Monte Young Tennis Courts 6 Franklin Riley Park 12 Del Mar Park Basketball Courts 18 North Point Overlook Area Area Area
[a] The Recreation Services Manager shall set Resident/Non-Profit and Non-Resident/For-profit fees for Recreation Services activities and programs.

Page 181 of 218 ends

City of Morro Bay

RECREATION FEES
Resident /
Non-Profit Groups All Others Charge Basis Note CPI
Reserved Area and Park Use Fees
1 Areas #1 - #18 (See list on Prior Sheet)
a) Four Hours $104 $128 Per Half Day Y
b) All Day $310 $386 Per Day Y
2 Other City Locations
a) Lila Keiser Park (does not include staff
support, ballfield use, or field prep rates)
$343 $688 Per Day Y
b) Public Special Event $686 $1,375 Y
c) Morro Beach Private Reception/Event
i) Up to 100 People $258 $386 Y
ii) More than 100 People $386 $580 Y
d) Morro Rock Parking Lot – Available only for
public special events (non-exclusive use)
$386 $580 Y
e) Giant Chessboard
i) Wooden Pieces $55 $111 Y
ii) Plastic Pieces $15 $23 Y
f) Basketball Courts, Pickleball Court & Tennis
Court
$10 $14 Per Hour Y
g) Lila Keiser Field Rental
i) Without Lights $10 $14 Per Hour Y
ii) With Lights $26 $39 Per Hour Y
iii) Lila Keiser Field Preparation $52 $52 Each Y
iv) Lila Keiser Support Services $36 $36 Per Hour Y
h) City Park Banner Placement $162 $226 Per Week Y
i) Miscellaneous Use - Photography/Filming
(does not include property use)
$686 $1,374 Per Application Y
Activity Description
[a] The Recreation Services Manager shall set Resident/Non-Profit and Non-Resident/For-profit fees for Recreation Services activities and programs.

Page 182 of 218 ends

City of Morro Bay

Page 183 of 218 ends

City of Morro Bay

Page 184 of 218 ends

Residential Development Impact Fee Comparison
Living Space 1,946
Garage 400
Total SFD 2,346
Current Proposed Maximum Current Proposed Maximum Grover Beach Pismo Beach Los Osos Arroyo Grande Carpinteria General/Administrative $ 1.87 $ 2.33 $ 3.65 $ 4,387.02 $ 4,534.18 $ 7,102.90 $ 3,026.00 $ 3,026.00 $ 2,183.00 $ 2,205.00 Fire $ 0.68 $ 0.85 $ 1.33 $ 1,595.28 $ 1,654.10 $ 2,588.18 $ 704.00 $ 3,144.00 $ 2,497.00 $ 714.00 Police $ 0.62 $ 0.59 $ 0.59 $ 1,454.52 $ 1,148.14 $ 1,148.14 $ 3,167.00 $ 6,944.00 $ 854.00 $ 506.00 Parks $ 1.95 $ 2.43 $ 3.17 $ 4,574.70 $ 4,728.78 $ 6,168.82 $ 8,305.00 $ 7,038.00 $ 2,838.00 $ 9,576.00 $ 12,880.00 Storm Drain/Water $ 0.08 $ 0.10 $ 0.14 $ 187.68 $ 194.60 $ 272.44 $ 4,317.00 $ 595.00 $ 4,059.00 Traffic $ 3.01 $ 3.75 $ 14.51 $ 7,061.46 $ 7,297.50 $ 28,236.46 $ 1,571.00 $ 7,883.00 $ 3,822.00 $ 4,074.00 $ 4,575.00 Water(1) $ 10,613.00 $ 11,027.00 $ 60,051.00 $ 10,613.00 $ 11,027.00 $ 60,051.00 $ 6,803.00 $ 15,718.00 $ 2,584.00 $ 2,588.00 Sewer(1) $ 10,653.00 $ 11,068.00 $ 37,704.00 $ 10,653.00 $ 11,068.00 $ 37,704.00 $ 2,475.00 $ 15,014.00 $ 25,000.00 $ 1,755.00 Rec / Aquatic $ 2,135.00 $ 774.00
TOTAL $ 40,526.66 $ 41,652.30 $ 143,271.94 $ 32,503.00 $ 58,767.00 $ 39,778.00 $ 19,808.00 $ 24,493.00 (1) Assumes 1-inch water line
Ranking:
$ 19,808.00 Arroyo Grande
$ 24,493.00 Carpenteria
$ 32,503.00 Grover Beach
$ 39,778.00 Los Osos
$ 40,526.66 Morro Bay
$ 58,767.00 Pismo Beach
Impact Fee Rates Impact Fees - Typical SFD
Typical SFD
Comparable Jurisdiction

Page 185 of 218 ends

Non-Residential Development Impact Fee Summary
Total Fees Morro Bay Grover Beach Pismo Beach Los Osos* Arroyo Grande Carpinteria Commercial $ 6.31 $ 3.24 15.612 1.758 7.42 12.45
Office $ 4.49 $ 4.02 11.931 3.973 7.96 0
Industrial $ 2.27 $ 2.61 0 1.278 0 5.34
Non-Residential - Per Square Foot
Commercial
Morro Bay Grover Beach* Pismo Beach Los Osos Arroyo Grande Carpinteria General/Administrative $ 0.41 $ 0.62 $ 0.51 $ 0.46 $ 0.50 Fire $ 0.37 $ 0.14 $ 1.135 $ 0.90 $ 0.21
Police $ 0.09 $ 0.65 $ 0.20 $ 0.31 $ 0.15
Parks $ 0.03
Storm Drain/Water $ 0.05 $ 1.83 $ 4.82 $ 0.01 $ 1.13
Traffic $ 5.36 $ 8.94 $ 7.05 7.27
Rec / Aquatic/Open Space** $ 0.09 3.55
Total $ 6.31 $ 3.24 $ 15.61 $ 1.76 $ 7.42 $ 12.45
Office
Morro Bay Grover Beach Pismo Beach Los Osos Arroyo Grande Carpinteria General/Administrative $ 0.52 $ 0.96 $ 0.65 $ 1.10
Fire $ 0.50 $ 0.22 $ 1.44 $ 1.99 $ 0.33
Police $ 0.12 $ 1.01 $ 0.55 $ 0.68 $ 0.23
Parks $ 0.03
Storm Drain/Water $ 0.05 $ 1.83 $ 4.82 $ 0.01
Traffic $ 3.27 $ 4.47 $ 7.39
Rec / Aquatic/Open Space*** $ 0.20
Total $ 4.49 $ 4.02 $ 11.93 $ 3.97 $ 7.96 $ -
Industrial
Morro Bay Grover Beach Pismo Beach Los Osos Arroyo Grande Carpinteria General/Administrative $ 0.14 $ 0.34 $ 0.35 $ 0.28
Fire $ 0.12 $ 0.08 $ 0.64
Police $ 0.05 $ 0.36 $ 0.22
Parks $ 0.03
Storm Drain/Water $ 0.05 $ 1.83 $ 0.81
Traffic $ 1.88 $ 2.31
Rec / Aquatic/Open Space*** $ 0.06 $ 1.94
Total $ 2.27 $ 2.61 $ - $ 1.28 $ - $ 5.34
***Open Space Fee category added to accommodate Carpinteria's additional Open Space Fee Sources:
https://www.slocounty.ca.gov/departments/public-works/forms-documents/fee-schedules/road-improvement-fee-schedule-3-1-26 https://www.grover.org/DocumentCenter/View/15127/Grover-Beach-Development-Imapct-Fee-Nexus-Study-Update---Adopted---6-24-24?bidId= https://pismobeach.org/DocumentCenter/View/50470/Development-Impact-Fees?bidId= https://www.slocounty.ca.gov/departments/planning-building/forms-documents/fees/fee-schedule-2025-2026 https://www.arroyogrande.org/DocumentCenter/View/10675/Development-Impact-Fees https://carpinteriaca.gov/wp-content/uploads/2025/03/Development-Impact-Fees_Schedule.pdf *Does not include road improvement fees which are set at $3,895 Cost per Peak Hour Trip for all land uses **Grover Beach Fee Schedule includes an additional non-residential land use designation for Restaurant uses; Fee schedule remains the same as commercial designation with the exception of Water and Sewer fees increasing to $11.76 and $9.24 per sq ft. respectively.

Non-Residential Development Impact Fee Comparison

Page 186 of 218 ends

Prepared By: DH Dept Review: DH
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: June 17, 2026 FROM: Damaris Hanson, Utilities Division Manager/Acting Public Works Director SUBJECT: Adopt Resolution Nos. 39-26 and 40-26 Approving 2025 Urban Water Management Plan and Water Shortage Contingency Plan

RECOMMENDED ACTION

1. Conduct a public hearing to receive input on the 2025 Urban Water Management Plan and Water Shortage Contingency Plan.

2. Adopt Resolution No. 39-26 approving the 2025 Urban Water Management Plan and authorizing its submittal to the Department of Water Resources.

3. Adopt Resolution No. 40-26 approving the 2025 Water Shortage Contingency Plan and authorizing its submittal to the Department of Water Resources.

ALTERNATIVES
The Urban Water Management Plan is a requirement of the California Water Code. Staff does not have any recommended alternatives.

FISCAL IMPACT
The adoption of Urban Water Management Plan is a requirement for all State of California water and wastewater funding including the Clean Water State Revolving Fund, which partially funds Morro Bay’s Water Reclamation Facility project.

BACKGROUND
Every five years, urban water suppliers providing over 3,000 acre-feet of water annually or service to more than 3,000 urban connections must submit an Urban Water Management Plan (UWMP). The purpose of this UWMP is to conduct long-term resource planning and establish management measures to ensure adequate water supplies are available to meet existing and future demands. The UWMP provides a framework to help water suppliers maintain efficient use of urban water supplies, continue to promote conservation programs and policies, ensure that sufficient water supplies are available for future beneficial use, and provide a mechanism for response during drought conditions or other water supply shortages. The City’s draft 2025 UWMP is available for download at:
https://www.morrobayca.gov/2025UWMP.

AGENDA NO: 7.b
MEETING DATE: June 23, 2026

Page 187 of 218 ends

DISCUSSION
The City engaged Confluence Engineering Solutions (ConfluenceES) to prepare the City’s 2025 UWMP. ConfluenceES utilized water and wastewater data provided by the City, as well as City planning documents including Plan Morro Bay in preparation of the 2025 UWMP. California Water Code (CWC) Section 10621(b) and Delta Plan Policy WR P1 require water suppliers notify stakeholders that the UWMP, Water Shortage Contingency Plan (WSCP), and reduced reliance on the Delta watershed documentation are being updated and reviewed. The CWC specifies this must be done at least 60 days prior to the public hearing. To fulfill this requirement, the City sent letters of notification of preparation of the 2025 UWMP and WSCP to San Luis Obispo County, Central Coast Water Authority (CCWA) and San Luis Obispo Council of Governments (SLOCOG) 60 days prior to this public hearing. 2025 Urban Water Management Plan
The 2025 UWMP considers water demands and supplies through the year 2050, incorporating projected growth and proposed development. Demand estimates were determined by multiplying current water demand estimates in gallons per capita per day by projected populations. Importantly, the UWMP does not make predictions on population growth. Populations projections in the UWMP utilize existing estimates including, the California Department of Finance (DOF) E-5 Population and Housing Estimates, Plan Morro Bay estimates, and San Luis Obispo Council of Governments (SLOCOG) 2060 Regional Growth Forecast for San Luis Obispo County estimates. Current Supply sources include groundwater from the Morro Valley Groundwater Basin, imported water from the State Water Project via the San Luis Obispo County Flood Control and Water Conservation District, and stored water in the San Luis Reservoir. The City’s Water Reclamation Facility is currently under development and the City plans to use indirect potable reuse (IPR) as a supplemental supply source in the future.

ConfluenceES’s comparison and analysis of the City’s future demands and available supplies indicates the City will have sufficient water supply to meet its demands, even during single and multiple dry year events as indicated by the table and graph below, which are based on Table 7-6 and Figure 7-1 in the Draft 2025 UWMP.
5-Year Drought Scenario – Morro Bay
Available supply Acre-Ft 1 2050 Demand Acre-Ft
Year 1 3,640 1,301
Year 2 5,141 1,301
Year 3 2,920 1,301
Year 4 2,311 1,301
Year 5 1,702 1,301

1. Supply assumption includes 436 AFY of Morro Basin groundwater, SWP Allocations based on annual allocations from 2018 – 2022, Stored SWP assumed to be equal to the quantity of stored SWP water available to the City at the beginning of Year 1 (2018 hydrologic year) of 1,531 AF, and during the third, fourth, and fifth consecutive dry years, 412 AFY of IPR Recycled Water.

Page 188 of 218 ends

In the five-year drought scenario described in the table and graph above, historical data on state water allocations and stored state water trends were used along with Morro Valley Basin groundwater and future potable IPR water output. The scenario shows that supply amounts exceed demands. Of note, the 2050 Demand Acre-Feet data contained in the table does not take into account potential water conservation efforts. Such efforts, if enacted during a drought, would decrease overall demand and further ensure the City is able to provide enough water to meet demands.

Water Shortage Contingency Plan
CWC Section 10632 includes an updated requirement to separately adopt the WSCP. In the 2015 UWMP cycle, the WSCP was part of the UWMP. For the 2020 and 2025 UWMPs, the WSCP is a standalone document so that it can be updated independently of the UWMP. However, it still must be referenced in and attached to the 2025 UWMP.

The WSCP is a detailed plan describing how the City intends to identify and respond to foreseeable and unforeseeable water shortages. A water shortage occurs when the water supply is reduced to a level that cannot support typical demand at any given time or a reduction in demand is otherwise needed.

The WSCP is used to provide guidance to the City, staff, and the public by identifying anticipated shortages and response actions to allow for efficient management of any water shortage with predictability and accountability. The WSCP is intended to provide options to manage water shortages.

Official water shortage declarations and water shortage mitigation measures by the City, such as water conservation requirements, may include any combination of components described in the WSCP.

Page 189 of 218 ends

The City will conduct an Annual Supply and Demand Assessment as part of the WSCP each year. This assessment is a short-term outlook for supplies and demands to determine whether the potential for a supply shortage exists and whether there is a need to trigger a water shortage level response and implement stricter water conservation measures.

CONCLUSION
Staff recommends City Council conduct a public hearing and receive input on the 2025 UWMP and WSCP, then adopt Resolution No. 39-26 approving the UWMP, Resolution No. 40-26 approving the WSCP, and lastly authorize and instruct the City Clerk to submit these documents to the Department of Water Resources.

WEBLINKS

1. Link to Draft 2025 Urban Water Management Plan

ATTACHMENTS

1. Resolution No. 39-26 Approving the Urban Water Management Plan and authorizing submittal to Department of Water Resources

2. Resolution No. 40-26 Approving the Water Shortage Contingency Plan and authorizing submittal to Department of Water Resources

Page 190 of 218 ends

RESOLUTION NO. 39-26

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
ADOPTING THE 2025 URBAN WATER MANAGEMENT PLAN

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the California Urban Water Management Planning Act, Water Code Section 10610 et seq. (the Act), mandates that every urban supplier of water providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre feet of water annually, prepare an Urban Water Management Plan; and WHEREAS, the Act requires periodic review and update of the Urban Water Management Plan (“UWMP”) every five years; and
WHEREAS, the City of Morro Bay City Council has reviewed the 2025 UWMP, determined that the 2025 UWMP is consistent with the Act and the California Department of Water Resources 2025 UWMP Guidebook, and is an accurate representation of the water system, current and projected water uses, sources of water, water supply reliability, water shortage contingency planning and demand management measures; and WHEREAS, on April 23, 2026, the City of Morro Bay issued the stakeholders a notice of preparation of the Draft 2025 UWMP for review and comment; and WHEREAS, on April 24, 2026, the City of Morro Bay issued the stakeholders a notice of public hearing and availability of the Draft 2025 UWMP for review and comment; and
WHEREAS, on June 23, 2026 the Morro Bay City Council conducted a public hearing pursuant to California Water Code sections 10642 and 10608.26 to consider and receive input on the Draft 2025 UWMP; and
WHEREAS, all prerequisites to adoption of the UWMP have occurred.

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

1. The facts set forth in the Recitals are true and correct.

2. The UWMP https://www.morrobayca.gov/2025UWMP is adopted as the City’s 2025 Urban Water Management Plan.

3. The City Manager is authorized and directed to implement the attached UWMP.

4. The City Manager shall cause periodic reviews of the attached UWMP to occur, consistent with the Act, and shall present to the City Council any changes or amendments deemed necessary or appropriate in accordance with the Act.

Page 191 of 218 ends

5. The Council finds and determines that, under the California Water Code Section 10652, the adoption of the UWMP and this resolution does not constitute a project under the California Environmental Quality Act.

6. The City Clerk is directed to file a certified copy of the attached UWMP with the California State Department of Water Resources (“DWR”) and take all other necessary further administrative action for adoption of the UWMP.

7. This resolution shall take effect immediately upon its adoption by the City Council.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23rd day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
_____________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk

Page 192 of 218 ends

RESOLUTION NO. 40-26

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

ADOPTING THE WATER SHORTAGE CONTINGENCY PLAN

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the California Urban Water Management Planning Act, Water Code Section 10610 et seq. (the Act), mandates that every urban supplier of water providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre feet of water annually, prepare an Urban Water Management Plan (UWMP); and
WHEREAS, as part of the UWMP, Water Code section 10632 requires urban water suppliers to prepare and adopt a Water Shortage Contingency Plan (WSCP); and WHEREAS, the City of Morro Bay meets the Act’s definition of an urban retail water supplier required to submit an UWMP and WSCP; and
WHEREAS, a WSCP is a standalone document that is created separately from the UWMP and included as part of the UWMP; and
WHEREAS, on April 23, 2026, the City of Morro Bay issued a notice of preparation of the Draft 2025 UWMP and WSCP for review and comment; and
WHEREAS, on April 24, 2026, the City of Morro Bay issued a notice of public hearing and availability of the Draft 2025 UWMP and WSCP for review and comment; and WHEREAS, on June 23, 2026, the Morro Bay City Council conducted a public hearing pursuant to California Water Code sections 10642 and 10608.26 to consider and receive input on the Draft 2025 UWMP and WSCP; and
WHEREAS, all prerequisites to adoption of the WSCP have occurred.

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

1. The facts set forth in the Recitals are true and correct.

2. The City hereby adopts the 2025 WSCP, included as an appendix to the 2025 UWMP https://www.morrobayca.gov/2025UWMP, for the City of Morro Bay and authorizes it to be filed with the California Department of Water Resources.

3. The Council finds and determines that, under the California Water Code Section 10652, the adoption of the WSCP and this resolution does not constitute a project under the California Environmental Quality Act.

4. The City Clerk is directed to file a certified copy of the attached WSCP with the California State Department of Water Resources and take all other necessary further administrative action for adoption of the WSCP.

Page 193 of 218 ends

5. This resolution shall take effect immediately upon its adoption by the City Council.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23rd day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk

Page 194 of 218 ends

Prepared By: NLS Dept Review: DH
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: June 18, 2026 FROM: Nate Stong, PE – City Engineer
SUBJECT: Adopt Resolution No. 41-26 Annexing Lots 1 through 5 of Tract 2859 (APN 065- 386-015) into the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) and Directing the Levy of the Annual Assessment

RECOMMENDED ACTION
Adopt Resolution No. 41-26 annexing Lots 1 through 5 of Tract 2859 (APN 065-386-015) into the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) and directing the levy of the annual assessment.

BACKGROUND & DISCUSSION OF ANNEXATION
Tract 1996, known as the Cloisters development, is a 124-lot subdivision bounded by State Highway One at the east, Morro Strand State Beach at the west, Morro Bay High School at the south, and Azure, Coral, and San Jacinto Streets at the north.

On September 23, 1996, the City Council passed Resolution No. 69-96, which accepted the final map for Tract 1996 known as the Cloisters Subdivision, consisting of 124 lots. Lots 1 through 120 were for single-family residential purposes, Lots 121, 122 (APN 065-386-005 & 016 on attached Assessor’s Map) were for the 27.75-acre park and open space, Lot 124 was dedicated for a fire station and Lot 123 was offered to the State. Lots 121, 122, 123, and 124 are not currently part of the assessment district.

The assessment district formation proceedings began in August 1996, with the owners of the real property within the proposed district petitioning the City and consenting in writing to the formation of the district pursuant to the Landscape and Lighting Act of 1972. The assessment district formation proceedings concluded with the final public hearing for formation on September 23, 1996, which levied the annual assessment totaling $148,944 ($1,241.20 per parcel x 120 residential parcels) for the maintenance of the 27.75 acres of park and open space required as a condition of approval for Tract 1996.

Lot 124 was declared as surplus by the city and sold in 2021. The new owner has since subdivided the property into five residential lots, recorded as Tract 2859 in December 2025. The owner has consented to annex these new lots into the Cloisters LLMAD, provided as Attachment 2, which would satisfy applicable conditions of approval regarding the new residential lots contributing to the common maintenance of Tract 1996’s park and open space consistent with existing residential lots. The additional five lots would bring the total number of assessed properties in the district to 125. In addition to the consent form, a ballot was mailed to the owner to satisfy Proposition 218 requirements (Attachment 3).

AGENDA NO: 7.c
MEETING DATE: June 23, 2026

Page 195 of 218 ends

On May 12, 2026, City Council adopted Resolution No. 21-26 declaring the City’s intention to annex Lots 1 through 5 of Tract 2859 into the LLMAD and set a public hearing to occur at this June 23, 2026 meeting. Under Streets and Highways Code section 22608, the right of majority protest and hearing notice is limited to the owner of Lots 1 through 5 of Tract 2859 who has consented to the annexation and waived further notice..

Pursuant to the requirements of Proposition 218, notice of the proposed annexation and assessment ballot were mailed to the owner of Lots 1 through 5 of Tract 2859 on April 30, 2026 in order to impose a new assessment on the parcels to be annexed. Any ballots, or requests to change or withdraw a ballot, must be received by the City Clerk before the close of the public hearing on June 23, 2026.

The ballots will be tabulated by the City Clerk following the conclusion of the public hearing. If a majority of tabulated ballots oppose the assessment, then the proposed assessment cannot be imposed. At the conclusion of the public hearing, the City Clerk will be asked by the Mayor to make a statement indicating the number of written protests received and indicate whether that amount is a majority of the tabulated ballots. If there is no majority protest from the owner(s) of Lots 1 through 5, then the assessment may be imposed on the parcels to be annexed.

LEVY OF ANNUAL ASSESSMENT
On April 14, 2026, City Council adopted Resolution No. 18-26, which initiated the proceedings to levy the annual assessment to fund the maintenance of the Cloisters Park and Open Space. On May 12, 2026, City Council adopted Resolution No. 22-26 approving the Engineer’s Report for Fiscal Year (FY) 2026-27, declaring the City’s intention to levy the annual assessment for the LLMAD, and establishing a public hearing to occur at this June 23, 2026 meeting to order the levy for FY 26/27. A legal notice of this public hearing was published in the San Luis Obispo Tribune on June 11, 2026.

Staff intends to continue to perform most maintenance tasks with City Maintenance staff and directly allocate their time spent maintaining the site to the assessment district. As part of the annual assessment process, staff is required to provide an Engineer’s Report, which is an estimate of costs for maintenance of the Cloisters LLMAD. The cost estimates are based on the maintenance standards currently adhered to in existing parks within Morro Bay and included in the Flat Rate Manual for Parks Maintenance, as well as maintenance costs from the current fiscal year. Personnel costs, as well as supplies and services, have risen significantly in the last several years.

FISCAL IMPACT
The per-parcel assessment for providing maintenance of the Cloisters LLMAD is $1,241.20 for a total annual assessment of $148,944 assuming only the original 120 lots are assessed, or $155,150 if the additional five lots from Tract 2859 are included for a total of 125 assessed parcels.

The costs of maintaining Cloisters Park, Open Space, trails, medians, and parkways within the district in excess of the proposed assessment revenue of $155,150, after annexation of the five new residential lots, is to be subsidized by the General Fund per City Council direction on May 24, 2004.

The district will have an estimated fund balance of $205,647 at the end of FY 2025-26, pending audited actuals from this year. The fund balance is to be used for deferred maintenance and onetime expenses, permits, and savings for future capital projects. Assuming the FY 2026-27 budget is fully expended, the fund balance will decrease by nearly $21,500. The fund balance and its use is not part of the content of the Engineer’s Report. In alignment with Government Finance Officers Association (GFOA) recommendations to simplify budgeting and budget presentations to the public, and to reduce duplicate budgeting associated with interfund transfers, the Cloisters Accumulation Fund was consolidated with the Cloisters Assessment District Fund (570) at the end of FY 2021-22.

Page 196 of 218 ends

This is also consistent with Council direction on April 26, 2022, to eliminate enterprise accumulation funds.

CONCLUSION
Staff recommends annexation of Lots 1 through 5 into the Cloisters Landscaping and Lighting Maintenance Assessment District and continuation of the assessment of the property owners within the Cloisters LLMAD to fund the City’s maintenance of the Cloisters Park and Open Space with supplemental funding coming from the general fund.

ATTACHMENT(S)

1. Resolution No. 41-26

2. Petition to annex Tract 2859 into the Cloisters Landscaping and Lighting Maintenance Assessment District

3. Assessment Ballot mailed on April 30, 2026

Page 197 of 218 ends

RESOLUTION NO. 41-26

RESOLUTION OF THE CITY COUNCIL

OF THE CIYT OF MORRO BAY, CALIFORNIA
ANNEXING LOTS 1 THROUGH 5 OF TRACT 2859 INTO THE CLOISTERS LANDSCAPING

AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT AND LEVYING THE ANNUAL

ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE “LANDSCAPING AND LIGHTING ACT OF 1972” (STREETS AND HIGHWAYS SECTIONS 22500 ET. SEQ.)

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City Council of the City of Morro Bay, California has previously conducted proceedings to establish the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) pursuant to the terms and provisions of the Landscaping and Lighting Act of 1972 (Streets and Highways Code sections 22500 et. seq.) (the "Act"), to fund the maintenance of the Cloisters Park and Open Space; and
WHEREAS, Lot 124 of the Cloisters subdivision (Tract 1996) was originally dedicated to the City of Morro Bay for future use as a fire station and excluded from the LLMAD; and WHEREAS, Lot 124 has subsequently been sold by the City to a private developer and subdivided into five residential lots, recorded as Tract 2859 in December 2025; and WHEREAS, the City Council has received a petition from the landowner requesting that it annex into the LLMAD, and the City Council now desires to commence proceedings to annex territory into the LLMAD as described herein; and
WHEREAS, under the Act, this City Council, as the legislative body for the Cloisters LLMAD, is empowered with the authority to annex territory into the LLMAD; and WHEREAS, on May 12, 2026, the City Council adopted Resolution No. 21-26 declaring the City’s intention to annex Lots 1 through 5 of Tract 2859 into the LLMAD; and WHEREAS, on May 12, 2026, the City Council adopted Resolution No. 23-26 declaring the Council’s intent to levy an assessment for the annual maintenance of the Cloisters Park and Open Space within the Cloisters Landscaping and Lighting Maintenance Assessment District (the “District”) and approving the Engineers Report; and
WHEREAS, a public hearing for the levy of the annual assessment of the District was scheduled for June 23, 2026, at or about 5:30 p.m., at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442; and
WHEREAS, notices regarding the proposed assessment listing the date, time, and location of the public hearing were published in the local newspaper; and WHEREAS, at the public hearing held on June 23, 2026, the City Clerk tabulated and declared the results of the assessment ballot(s) received for the proposed annual assessment for the five residential lots to be annexed to the District; and WHEREAS, the City Council did take public testimony from all interested parties as to the levy of the annual assessment for the District on June 23, 2026, at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442.

Page 198 of 218 ends

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, Section 1. Recitals. The above recitals are true and correct.

Section 2. Public Convenience and Necessity. This City Council hereby determines that the public convenience and necessity requires that territory by annexed into the Cloisters Landscaping and Lighting Maintenance Assessment District in order to pay the costs and expenses for the required and authorized public services.

Section 3. Boundaries. A general description of the territory included in the existing Cloisters LLMAD is hereinafter described as follows: Lots 1 through 120 of Tract 1996, recorded in Book 17 of Maps, at Page 83, and as more particularly described in the Covenants, Conditions and Restrictions for Tract 1996 recorded as Document Number 1996050337 at the Office of the Recorder of San Luis Obispo County.

A description of the boundaries and territory to be annexed is as follows: Lots 1 through 5 of Tract 2859, recorded in Book 44 of Maps, at Page 25 at the Office of the Recorder of San Luis Obispo County.

A diagram of the territory included in the existing LLMAD and the territory to be annexed is shown on Exhibit A attached hereto.

Section 4. Services. The improvements to be maintained are the Cloisters Park and Open Space areas, more particularly described in Resolution 68-96 of the City Council, dated September 9, 1996.

Section 5. The annual levy for the maintenance of the District is hereby ordered and the assessment of $155,150 to be equally distributed per assessable parcel for the Fiscal Year 2026/27 is hereby confirmed.

Section 6. Adoption of this Resolution shall constitute the levy of an assessment for the Fiscal Year 2026/27 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held on this 23rd day of June, 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
_______________________________
CARLA WIXOM, Mayor
ATTEST:
__________________________________
DANA SWANSON, City Clerk

Page 199 of 218 ends

TRACT
2859
(5 lots)

EXHIBIT A

CLOISTERS LANDSCAPING AND LIGHTING

MAINTENANCE ASSESSMENT DISTRICT BOUNDARY,
WITH ANNEXATION OF TRACT 2859

Page 200 of 218 ends

CONSENT TO ANNEXATION

OF PROPERTIES INTO CITY OF MORRO BAY

CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT WHEREAS, the undersigned constitute(s) 100 percent 0wnership [or has legal signature authority representing 100 percent ownership] of Lots 1 through 5 of Tract No. 2859, in the City of Morro Bay, County of San Luis Obispo, State of California, according to map recorded on December 23, 2025 in Book 44, Page 25 of Maps (Property); and
WHEREAS, the Property is proposed to be deveioped for residential purposes and will receive special benefit from the Cloisters Landscaping and Lighting Maintenance Assessment District (Cloisters LLMAD) maintained public park, bicycle pathway, right of way landscaping, coastal accessways, environmentally sensitive restoration areas and other tract improvements required under the approvals for the original Cloisters subdivision; and WHEREAS, annexation into the Cloisters LLMAD and imposition of assessments in an amount consistent with the assessment currently imposed for properties in the Cloisters LLMAD will satisfy applicable conditions of approval and deed restrictions for the recent subdivision ofthe Property; and
WHEREAS, pursuant to California Streets and Highways Code Section 22608, the undersigned owner(s) do hereby consent to annexation into the Cloisters LLMAD and expressly waive notice of such proceedings, to file written protest with respect thereto, and to otherwise object to such proceedings; and
WHEREAS, the undersigned owner(s) consent to assessments levied for the aforementioned special benefits to the Property in accordance with the provisions of the Landscaping and Lighting Act of 1972 (California Streets and Highway Code, Section 22400, etseq.).

PURSUANT to Sections 22586 et seq. of the California Streets and Highways Code, these properties will be included within the required Engineer's Report (Report). The signing of this consent to annexation precludes any and all notice and hearing requirements for the first year's Report. Notwithstanding the foregoing, a ballot regarding the special assessment will be sent to the undersigned owner(s) in accordance with Government Code Section 53753.

EXECUTED ON April lo14a ,2026
at $‘I‘ock‘I‘m , California
l
Morro Bay Ventures, LLC., a California Limited Liability Company By: Grupe Huber Company, a California Corporation its mana er Iitdtn I'Iukef/PrggmlewlProperty Owner (printed name/title) Property Owner (signature)

Page 201 of 218 ends

OFFICIAL ASSESSMENT BALLOT
Assessment for Fiscal Year 2026-2027 for
Cloisters Lighting and Landscaping Maintenance Assessment District City of Morro Bay
This Ballot is for the property designated as APN 065-386-015 Kevin Huber, President/CEO
Grupe Huber Company
1203 N. Grant Street
Stockton, CA 95202
This is your official property owner assessment ballot regarding the proposed assessment for the below properties proposed to be annexed to the Cloisters Lighting and Landscape Maintenance Assessment District (LLMAD) to fund special benefit expenses associated with the maintenance of local landscape improvements as outlined in the accompanying Notice and described more fully in the Engineer’s Report, which is on file with the City Clerk.

To complete your ballot, mark an (X) in the voting square next to the word “YES” or next to the word “NO” below, sign and date the ballot, and return the entire ballot to the City Clerk. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk with a request for a replacement ballot. All completed ballots must be received by the City Clerk of the City of Morro Bay no later than the close of testimony at the public hearing scheduled for June 23, 2026.

Assessor’s Parcel Number: 065-386-015
Parcel 1 – 201 Verdon Court: $1,241.20
Parcel 2 – 202 Verdon Court: $1,241.20
Parcel 3 – 205 Verdon Court: $1,241.20
Parcel 4 – 206 Verdon Court: $1,241.20
Parcel 5 – 210 Verdon Court: $1,241.20
Your Parcel’s Balloted Assessment Amount: $6,206.00
BALLOT
This is an annual assessment that is collected as part of your San Luis Obispo County property tax bill. The amount assessed each fiscal year shall be based on the net budgeted expenses to be assessed, but the assessments may not exceed the Proposed Maximum Assessment Rate shown above without the approval of the property owners. 

YES - IN FAVOR OF THE ASSESSMENT
proposed for Cloisters LLMAD and the assessment for my property shown above. *06232600*


NO - OPPOSED TO THE ASSESSMENT
proposed for Cloisters LLMAD and the assessment for my property shown above. *06232601*
I hereby declare, under penalty of perjury, that I am the record owner of the property (Assessor’s Parcel Number) identified on this ballot or I am the authorized representative of that record owner.

Signed
Date ________________
Please see the back of this sheet for information about your assessment ballot and instructions for completion and delivery of the assessment ballot.

Page 202 of 218 ends

INFORMATION ABOUT YOUR ASSESSMENT BALLOT AND INSTRUCTIONS FOR

COMPLETION AND DELIVERY OF ASSESSMENT BALLOT FOR PROPERTIES

PROPOSED TO BE ANNEXED TO THE CLOISTERS LIGHTING AND LANDSCAPING

MAINTENANCE ASSESSMENT DISTRICT

CITY OF MORRO BAY
To Cast Your Ballot: Prior to the public hearing, completed ballots may be personally delivered to the City Clerk located at 595 Harbor Street, Morro Bay, California; or mailed to the City Clerk at the address indicated below. A return envelope has been provided for your convenience that is addressed to the City Clerk. You may also personally present completed ballots to the City Clerk at the public hearing on June 23, 2026. If you return your ballot by mail, please be sure to allow time for mail delivery.

The City Clerk must receive all completed valid ballots no later than the end of the public testimony portion of the public hearing on June 23, 2026. If you damage or misplace your ballot, a replacement ballot may be obtained by contacting the City Clerks Office at (805) 772-6205.

All submitted ballots must be clearly marked to indicate either “Yes - In Favor of the assessment” or “No - Opposed to the assessment” and signed; otherwise, the ballot will be rejected and not counted. To ensure the privacy of your ballot prior to the tabulation, please return your ballot in the envelope provided, or in a sealed envelope that indicates that a ballot is enclosed by noting on the front of the envelope “Assessment Ballot, Do Not Open”.

A ballot previously submitted may be withdrawn at any time prior to the close of the public hearing by request to the City Clerk, by the person(s) that previously signed the submitted ballot. An assessment ballot may be changed at any time prior to the end of the public hearing by requesting a withdrawal of the previous ballot and requesting a replacement ballot. Only the person(s) signing the ballot may make such a request. The replacement ballot provided must be received by the City Clerk prior to the deadline set forth herein.

What your vote means: A YES vote means you are in favor of the annual assessment that funds maintenance of the thirtyfour (34) acres of public resource lands including open space and natural lands, wetland area and pond used for drainage mitigation for homes constructed in Cloisters, median landscaping, trees, a neighborhood park and recreation area, fencing and other public improvements.

A NO vote means you are opposed to the annual assessment that funds maintenance of the thirty-four (34) acres of public resource lands including open space and natural lands, wetland area and pond used for drainage mitigation for homes constructed in Cloisters, median landscaping, trees, a neighborhood park and recreation area, fencing and other public improvements.

If you have questions: Should you have any questions prior to the public hearing, you may call the Public Works department at (805) 772-6569 during regular business hours.

Return Ballot to:

City of Morro Bay
City Clerk
595 Harbor Street
Morro Bay, CA 93442
Completed ballots MUST be received by the City Clerk no later than the close of the public testimony portion of the public hearing, which is scheduled to begin on Tuesday, June 23, 2026, at 5:30 p.m., in the Veterans Memorial Building, located at 209 Surf Street, Morro Bay, California.

How to cast your ballot:

1. 
Check
Yes or No

2. 
Sign and
date it

3. 
Return to the City Clerk on or before the Public Hearing on June 23, 2026, in accordance with the deadlines referenced above.

Page 203 of 218 ends

NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURES

CLOISTERS LIGHTING AND LANDSCAPING MAINTENANCE ASSESSMENT DISTRICT

CITY OF MORRO BAY
Purpose of this Notice
The purpose of this notice, that includes both this document and the accompanying Assessment Ballot which also includes Instructions for Completion and Delivery of Assessment Ballot, is:
• to provide information to the record owners of property proposed to be annexed into Cloisters LLMAD of the City of Morro Bay (“City”), regarding proceedings being undertaken by the City to levy the annual assessment on such properties within Cloisters LLMAD commencing in fiscal year 2026/2027; • to transmit an Assessment Ballot to the owners of property proposed to be annexed into Cloisters LLMAD, to enable such owner or owners to express support or opposition to the levy of the proposed assessment on such property, by completing and returning the Assessment Ballot; and
• to identify the time and place of the scheduled public hearing on these matters and to provide instructions to the owner or owners to assist in completing the Assessment Ballot and returning it to the City.

Reason for the Proposed Assessment
The proposed assessment on properties within Cloisters LLMAD will provide a stable revenue source to fund ongoing special benefit expenses associated with the servicing and maintenance of local landscape improvements including but not limited to the maintenance of the thirty-four (34) acres of public resource lands including open space and natural lands, wetland area and pond used for drainage mitigation for homes constructed in Cloisters, median landscaping, trees, a neighborhood park and recreation area, fencing and other public improvements. These improvements are considered a particular and distinct special benefit to properties in Cloisters LLMAD.

Basis upon which the assessment is Calculated
Each year the City determines the estimated cost to maintain and service the improvements within Cloisters LLMAD to appropriately allocate those costs to only the benefiting properties. The cost of providing the improvements determined to be of special benefit are allocated to parcels within Cloisters LLMAD based on a benefit formula that equitably distributes those costs based on the proportional special benefits to each parcel. The total eligible special benefit expenses for Cloisters LLMAD are divided by the total of all parcels within Cloisters LLMAD. The result of this calculation establishes the annual assessment rate per parcel within Cloisters LLMAD.

A more detailed description of the improvements and basis upon which increased assessments have been calculated is described in the Engineer’s Report, which is on file with the City.

The Total Annual Assessment Proposed to be Charged
The total annual amount of the assessment being balloted to properties proposed to be annexed to the Cloisters LLMAD is $6,206.00. This total amount balloted divided by the total number of parcels proposed to be annexed to the Cloisters LLMAD results in an annual assessment rate of $1,241.20 per parcel.

Duration of the Assessment
If approved, the proposed assessment indicated on the accompanying ballot will be assessed and appear on your 2026/2027 property tax bill from the County. At the City Council’s discretion, a lesser amount may be assessed. Because the proposed assessment will provide annual funding for the ongoing maintenance and operation of the improvements, there is no sunset on the assessments (no end date), but the annual budget and assessments shall be presented at a public hearing each fiscal year, which is open to the public for comment and testimony. The assessments may not exceed the Proposed Maximum Assessment Rate shown on the attached ballot without majority property owner approval of a new assessment ballot identifying a new increased maximum assessment rate.

Public Hearing
Notice is hereby given that a public hearing regarding the proposed levy of an assessment for properties proposed to be annexed to the Cloisters LLMAD, will be held during a regular meeting of the Morro Bay City Council, in the Veterans Memorial Building, located at 209 Surf Street, Morro Bay, California, on Tuesday, June 23, 2026, starting at 5:30 P.M.

The City Council shall consider all objections and protests, if any, to the proposed assessment on properties proposed to be annexed to the Cloisters LLMAD which has been deemed necessary for the operation and maintenance of Cloisters LLMAD landscaping maintenance and improvements. Any interested person shall be permitted to present written and oral testimony regarding these proceedings. The City Council may impose reasonable time limits on both the length of the entire public hearing and the length of each interested person’s oral testimony. The City Council may also continue the public hearing from time to time.

Page 204 of 218 ends

Protest Provisions
Pursuant to California Constitution Article XIIID, Section 4 (e), at the Public Hearing, the City Council shall consider all protests against the proposed assessment from property owners of the properties proposed to be annexed to the Cloisters LLMAD. In addition to the property owner assessment ballots, written protests to the proposed assessment from owners of properties proposed to be annexed to the Cloisters LLMAD may be filed with the City Clerk prior to or during the Public Hearing. The City shall not impose an assessment for properties proposed to be annexed Cloisters LLMAD if there is a majority protest, as calculated set forth below.

Assessment Ballot
The amount of the assessment identified on the accompanying Assessment Ballot as “Your Parcel’s Balloted Assessment Amount” represents your parcel’s proportional special benefit of the total amount being balloted at the maximum assessment rate. Any time before the end of the Public Hearing, you may submit the Assessment Ballot to the City Clerk. To do so: mark the Ballot either “YES - IN FAVOR OF THE ASSESSMENT” or “NO - OPPOSED TO THE ASSESSMENT”, sign the Ballot, seal the Ballot in the enclosed return envelope, and mail or deliver it to the City Clerk. If you do not use the envelope provided, the return envelope should have the words “ASSESSMENT BALLOT, DO NOT OPEN” printed on the outside to ensure it is not opened in advance of the Public Hearing. The Ballot may be submitted, changed or withdrawn at any time before the end of the Public Hearing. If you need a replacement Ballot, call the Office of the City Clerk at (805) 772-6205.

Only ballots issued by the City are considered valid ballots (copies or facsimiles are not valid ballots). Any Ballot returned unmarked, unsigned, or not received by the City Clerk before the end of the public hearing will be rejected and not counted.

The proposed assessment will not be imposed for properties proposed to be annexed to the Cloisters LLMAD if the Ballots submitted in opposition to the assessment exceed the Ballots submitted in favor of the assessment.

Only valid ballots received by the City Clerk before the end of the public hearing shall be counted. Please ensure that your Assessor’s Parcel Number (APN) listed on the accompanying Assessment Ballot is included on any written protest or correspondence so that your property can be correctly identified for the record.

Contact Information
For more information, please contact the City’s Public Works Department at (805) 772-6569.

Page 205 of 218 ends

Prepared By: NLS_____ Dept Review: DH__
City Manager Review: __JC____ City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: June 18, 2026 FROM: Nate Stong, PE – City Engineer
SUBJECT: Adoption of Resolution No. 42-26 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District

RECOMMENDED ACTION
Conduct the public hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District (LLMAD) by adopting Resolution No. 42-26.

ALTERNATIVES
Not adopt the Resolution and provide alternative, specific directions for staff.

FISCAL IMPACT
By adopting Resolution No. 42-26, $5,645 will be collected through an assessment of all parcel owners in the North Point subdivision for the maintenance of the North Point LLMAD and Natural Area.

SUMMARY
At the May 12, 2026, City Council meeting, the Council adopted Resolution No. 23-26 approving the Engineer’s Report describing the annual maintenance to be completed at the North Point Natural Area and declaring the City’s intent to levy an annual assessment to partially finance the maintenance covered by the district. The assessment of the North Point subdivision is $5,645 or $564.50 per parcel for Fiscal Year 2026/27 and will be collected by the County Assessor’s Office.

The approved Engineer’s Report detailed that the costs for maintenance of the North Point Natural Area exceed the revenue received in the assessment amount. Costs not covered by the North Point assessments are covered by the City’s General Fund. As part of the assessment process, the City ordered the preparation of an Engineer’s Report, approved May 12, 2026, adopted a resolution of intention to levy an assessment, and set June 23, 2026 as the public hearing date on the proposed levy of assessment. The required noticing was published in the local newspaper per State requirements. The Council must hold a public hearing before considering continuing the levy of the annual assessment.

AGENDA NO: 7.d
MEETING DATE: June 23, 2026

Page 206 of 218 ends

CONCLUSION
Staff recommends continuation of the annual assessment of the property owners within the North Point Natural Area LLMAD, for maintenance needs, by adopting Resolution No. 42-26.

ATTACHMENT

1. Resolution No. 42-26

Page 207 of 218 ends

RESOLUTION NO. 42-26

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT

NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE

ASSESSMENT DISTRICT PURSUANT TO THE
“LANDSCAPING AND LIGHTING ACT OF 1972”
(STREETS AND HIGHWAYS SECTIONS 22500 ET. SEQ.)

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on May 12, 2026, the City Council adopted Resolution No. 23-26 declaring the Council’s intent to levy an assessment for the annual maintenance of the North Point Natural Area Landscaping and Lighting Maintenance Assessment District (the “District”) and approving the Engineers Report; and
WHEREAS, a public hearing regarding the levy of the annual assessment of the District was scheduled for June 23, 2026 at or about 5:30 p.m., in a hybrid format with opportunities for public comment both an in-person meeting at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442 as well as through virtual public participation; and WHEREAS, notices regarding the continuation of the proposed assessment listing the date, time and location of the hearing were published in the local newspaper; and WHEREAS, the City Council did take public testimony from all interested parties as to the levy of the annual assessment for the District on June 23, 2026, at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442.

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

1. The annual levy for the maintenance of the District generally located as shown on Exhibit “A,” attached hereto, is hereby ordered and the assessment of $5,645 to be equally distributed per assessable parcel for the Fiscal Year 2025/26 is hereby confirmed.

2. Adoption of this Resolution shall constitute the levy of an assessment for the Fiscal Year 2026/27 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held this 23
rd day of June, 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_________________________________
DANA SWANSON, City Clerk

Page 208 of 218 ends

Page 209 of 218 ends

Prepared By: BS Dept Review: BS
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: June 18, 2026 FROM: John Craig, City Manager
Brian Stack, City Attorney
SUBJECT: Receive Due Diligence Report and Consider Recommendation to Proceed with Closing Under the 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

RECOMMENDED ACTION
Authorize the City Manager to proceed with closing under the Purchase and Sale Agreement (Agreement) 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 and take such other actions and execute documents necessary to complete the acquisition, subject to review and approval by the City Attorney as to form and legal effect.

ALTERNATIVES
The City Council could direct staff to not complete the acquisition or pursue another course of action.

FISCAL IMPACT
The City Council previously approved a budget amendment for the purchase price of $3,867,800 on March 24, 2026. As previously indicated, the acquired interests would initially be Sewer Fund capital assets and recorded in the Sewer Capital Fund. However, depending on future uses of the property, the acquired interests could later be transferred from the Sewer Fund to the General Funds at the appropriate valuation to allow the Sewer fund to reinvest proceeds in its core operations and capital needs while providing a future ongoing revenue source for the General Fund. In addition to the purchase price, the City is expected to incur approximately $45,000 in due diligence and closing costs as part of the acquisition which will be funded by current year appropriations.

BACKGROUND
On March 24, 2026, the City Council approved entering into the Agreement to buy out the CSD’s interest in the Property and other assets jointly owned assets under the Joint Powers Agreement (JPA) for $3,867,800. The Agreement provided for a ninety-day escrow period and due diligence items related to title, property inspections and a qualitative environmental assessment. Standard title AGENDA NO: 8.a
MEETING DATE: June 23, 2026

Page 210 of 218 ends

policy and escrow charges would be split evenly by the City and CSD. Upon the close of escrow, the JPA would be deemed terminated and there would be no more jointly owned assets with the CSD.

The Property includes the location of the WWTP, 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. If the acquisition is completed, the City would own all of the parcels outlined below (in addition to the remaining southern portion of the Morro Dunes RV Park site already owned by the City and leased to the park operator).

The primary purpose of this item is to provide the results of the qualitative environmental assessment and receive Council confirmation to proceed with closing.

DUE DILIGENCE REPORT
Qualitative Environmental Assessment
Environmental firm Roux Associates, Inc. was retained to perform a qualitative environmental assessment consisting of a historical site investigation and document review, and if needed limited subsurface investigation to evaluate the potential for hazardous materials.

The historical site investigation and document review identified four potential environmental concerns:
(i) a previously reported release of 50 gallons of diesel fuel at the Concrete Plant; (ii) the previously reported removal of a former underground storage tank at the Concrete Plant in 1991; (iii) visible oil staining on the floor of the former WWTP maintenance building; and (iv) reported detections of PerPage 211 of 218 and polyfluoroalkyl substances (PFAS) in WWTP influent, effluent and biosolids and from sludge bed concrete samples taken as part of the pre-demolition structure assessment report. Soil management plans were recommended for the first two items and for the WWTP area during any future earthmoving activities which would be standard practice. Subsurface investigation was recommended for only the last two items.

The objective of the subsurface investigation was to evaluate potential subsurface impacts from observed oil-stained concrete in the WWTP maintenance building and gather preliminary information on potential impacts to the subsurface from PFAS in the vicinity of the 2-acre drying beds in the southern portion of the Site. Soil boring and soil, soil vapor and existing groundwater well sampling occurred on May 27 and 29, 2026.

Boring B-1 was advanced in the vicinity of the oil-stained concrete of the Maintenance Building’s storage room, with soil samples collected at approximately 0.5 and 5 feet below ground surface (bgs) (see figure of sampling locations on page 2 of Attachment 1). Soil samples were analyzed for total petroleum hydrocarbons (TPH) and a soil vapor probe was installed at approximately 5 feet bgs to analyze for volatile organic compounds (VOCs). TPH and VOCs were not detected in the two soil samples collected from boring B-1. VOCs were detected in the soil vapor results, with only one compound, benzene being detected above conservative vapor intrusion screening levels established by the Department of Toxic Substances Control (see summary of analytical results in Attachment 2).

Borings B-2 through B-5 were advanced between the drying beds, generally near the locations of previous concrete samples for the pre-demolition report (Attachment 1). Soil samples from Borings B-2 through B-4 were collected at approximately 5 fee bgs and analyzed for PFAS. Boring B-5 could not be advanced beyond 0.7 feet bgs, and soil samples were not collected at that location. There were several detections of various PFAS compounds generally consistent with previous wastewater and concrete results (Attachment 2). Since PFAS is generally ubiquitous, recent studies have indicated it is typical to see PFOS (a type of PFAS) in soil at concentrations ranging from 0.5 to 3 micrograms per kilogram (µg/kg) as background levels on non-PFAS generating sites. The detection of PFOS at 7.9 µg/kg at boring B-2 indicates there may be some subsurface PFAS impacts resulting from former wastewater treatment operations in the vicinity of the drying beds.

Groundwater samples were collected from existing groundwater monitoring/dewatering wells DW-1 and DW-3 in the northeast portion of the WWTP site and analyzed for PFAS (Attachment 1). There were several low detections of PFAS, all below applicable regulatory thresholds (Attachment 2). The results were also below other PFAS detections in groundwater wells to the northeast. The results indicate on-site operations in the northern portion have likely not caused PFAS impacts to groundwater and that any localized PFAS impacts to soil by the drying beds have not extended to groundwater in the north (groundwater direction flow is generally to the west).

The VOC detections are typical for the observed surface staining and use of the maintenance building for storage of motor oil and other petroleum/maintenance products. It is staff’s understanding that these level of VOCs are low and can be addressed during normal excavation and grading of the site and any future buildings following modern standards as it relates to vapor intrusion.

Page 212 of 218 ends

The PFAS detections are not surprising for wastewater treatment facilities given the ubiquitous nature of PFAS and its common presence in community effluent to such facilities. Only one soil sample was above generally expected background levels and groundwater well detections were low and below other well water detections in the area. Although PFAS detections were low in the water wells tested on site, no groundwater samples were able to be collected within or immediately downgradient of the drying beds because of site constraints (no existing water wells within or immediately down gradient of the drying beds) and timing (the Agreement placed additional levels of review on drilling activities down to groundwater). It is staff’s understanding, while the PFAS testing was necessarily limited in scope, the PFAS results do not raise significant concern about potential widespread PFAS impacts from historic wastewater treatment operations. However, the results would be considered as part of finalizing demolition plans, including protocols that can be developed to help guide where PFAS/other confirmation sampling may be appropriate and development of concentration thresholds for: potential material re-use onsite; disposal of materials/soil offsite; and groundwater precautions.

Preliminary Title Report
Staff has received a Preliminary Title Report issued by First American Title Company and is in the process of finalizing legal descriptions and applicable title policy exceptions with the title company.

There do not appear to be any defects in title or recorded interests that would be applicable to or impact future allowed uses of the Property. A survey was not obtained because the City is already a joint owner and the Property, except for the eastern edge of the former concrete plant, is bounded by existing City owned property or right of way.

ENVIRONMENTAL
On March 24, 2026, the City Council found the acquisition of the Property was consistent with the Water Reclamation Facility (WRF) Final Environmental Impact Report (EIR) and no further environmental review was 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 purchase is consistent with and helps implement the WRF 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
The qualitative assessment along with the previous pre-demolition structure assessment helps provide increased confidence that Property does not contain any significant hazardous materials related concerns. While there may be precautions or work necessary to locate and address any localized impacts, it is within normal expectations for projects of this nature. Staff recommends proceeding with closing under the Agreement as it remains the preferred path to move forward with the demolition and decommissioning of the WWTP and potential future reuse of the site.

ATTACHMENT(S)

1. Figures of Site Location Map and Sampling Locations

2. Tables of Analytical Results

Page 213 of 218 ends

SITE
S:\CLIENTS\5267.0001L CITYMORROBAY_ATASCADEROOLDWWTP JR\10CAD\001_5267.0001L_SITE LOCATION MAP.DWG ROUX

QUADRANGLE LOCATION
Prepared for:

Title:

Compiled by:

Prepared by:

Project Mgr: File:

Date: Project: Scale: FIGURE 1

SITE LOCATION MAP
160 AND 180 ATASCADERO ROAD AND 1700 EMBARCADERO

MORRO BAY, CALIFORNIA

THE CITY OF MORRO BAY
M.O. A.W. P.C.2026-04-17 AS SHOWN
5267.0001L
001_5267.0001L_SITE LOCATION MAP.DWG 2,000' 0 2,000'
SOURCE: UNITED STATES GEOLOGICAL SURVEY (USGS) 7.5 MINUTE SERIES, MORRO BAY, CALIFORNIA, TOPOGRAPHIC QUADRANGLE MAP DATED 2021

Page 214 of 218 ends

ATASCADERO ROAD

EMBARCADERO
PARK STREET CITY CORP YARD 170 ATASCADERO ROAD FORMER WASTE WATER TREATMENT PLANT 160 ATASCADERO ROAD DRYING BEDS MORRO BAY RV PARK 1700 EMBARCADERO FORMER CONCRETE BATCH PLANT 180 ATASCADERO ROAD AUTOMOTIVE SHOP 1700 PARK STREET WIXOM TRUCKING 190 ATASCADERO ROAD MAINTENANCE BUILDING STORAGE ROOM DIGESTOR TANKS FORMER DIESEL UST. CURRENT LOCATION OF 2 DIESEL ASTs (NOT IN USE) MORRO BAY RV PARK MECHANIC SHOP HOUSEHOLD HAZARDOUS WASTE FACILITY HOUSEHOLD HAZARDOUS WASTE FACILITY WASTE OIL AST (NOT IN USE) B-1 B-2B-3B-4 B-5 DW-4 DW-3 DW-2 DW-1 DW-5 DIGESTOR TANK APPROXIMATE SITE BOUNDARY MORRO CREEK SOIL AND SOIL VAPOR BORING LOCATION SOIL BORING LOCATION EXISTING GROUNDWATER MONITORING/DEWATERING WELL LOCATION LEGEND Prepared for: Title: Compiled by:

Prepared by:Project Mgr: File: Date: Project: Scale: FIGURE 2 SAMPLING LOCATIONS 160 AND 180 ATASCADERO ROAD AND 1700 EMBARCADERO MORRO BAY, CALIFORNIA THE CITY OF MORRO BAY P.C. A.W. P.C. 2026-06-02 AS SHOWN 5267.0001L 008_5267.0001L_SAMPLING LOCATIONS.DWG S:\CLIENTS\5267.0001L CITYMORROBAY_ATASCADEROOLDWWTP JR\10CAD\008_5267.0001L_SAMPLING LOCATIONS.DWG 150' 0' 150' ROUX 1. AST = ABOVEGROUND STORAGE TANK 2. UST = UNDERGROUND STORAGE TANK NOTES B-1 B-2 DW-1 Page 215 of 218 Table 1
Soil PFAS Analytical Results
160 and 180 Atascadero Road and 1700 Embarcadero, Morro Bay, California, 93442 Other PFAS Compounds Varies
Varies
Varies
B-2 B-2-5 5 5/27/2026 7.9 0.17 J 0.17 J 0.23 0.16 J 0.13 J 0.13 J 0.14 J 0.51 J ND B-3 B-3-5 5 5/27/2026 1.2 0.85 0.081 J 0.17 J 0.14 J 0.064 J <0.19 <0.19 <0.95 ND B-4 B-4-5 5 5/27/2026 0.79 0.74 0.077 J 0.069 J 0.070 J <0.19 <0.19 <0.19 <0.97 ND Notes:

Only analytes with detections are included in this table. <X or ND = Analyte not detected above method reporting limit Bold values denote concentrations exceeding the MRL
Italicized values denotes duplicate samples
µg/kg = micrograms per kilogram
DSTC HERO Note 3 Screening Levels = Department of Toxic Substances Control (DTSC) Human and Ecological Risk Office (HERO) Note 3, updated April 2025 ft bgs = feet below ground surface
J = Result is less than the reporting limit but greater than or equal to the method detection limit (MDL) and the concentration is an approximate value NS = no standard established
PFAS = per- and polyfluoroalkyl substances
USEPA = United States Environmental Protection Agency (USEPA) Regional Screening Levels, updated November 2024

NS NS NS NS NS NS
NS NS 410,000 NS NS
DTSC HERO Note 3 Screening Levels - Commercial/Industrial Soil NS NS NS USEPA Regional Screening Levels - Composite Worker Soil 58 0.078 16,000 3,500 PFDoS Perfluorooctanesulfonic acid (PFOS) Perfluorooctanoic acid (PFOA) Perfluorohexanesulfonic acid (PFHxS) Perfluorononanoic acid (PFNA) Perfluorohexanoic acid (PFHxA) Perfluoropentanoic acid (PFPeA) N-methylperfluorooctane sulfonamidoethanol (NMeFOSE)PFHxS HFPO-DA (GenX) PFDA PFAS Results by USEPA Method 1633 (Modified) (µg/kg)
Sample Location Sample ID Depth
(ft bgs) Date Sampled Perfluorodecanoic acid (PFDA) Perfluoroheptanoic acid (PFHpA) PFOS PFOA PFHpA PFHxA PFPeA

Page 216 of 218 ends

Table 2
Soil Vapor Analytical Results
160 and 180 Atascadero Road and 1700 Embarcadero, Morro Bay, California 93442 Sample Location Depth (ft bgs) Date Sampled 1,3-Dichlorobenzene 2-Butanone (MEK) 4-Methyl-2-pentanone (MIBK) Acetone Benzene Chloroform Dichlorodifluoromethane Ethylbenzene m,p-Xylene o-Xylene tert-Butyl alcohol (TBA) Tetrachloroethene Trichlorofluoromethane Toluene 1,1-Difluoroethane (LCC) Other VOCs NS 733,333 433,333 NS 53 18 14,667 163 14,667 14,667 733,333 1,567 NS 733,333 6,000,000 Varies NS NS NS NS 14 NS NS NS NS NS NS 67 176,667 60,000 NS Varies B-1 5 5/29/2026 3.7 5.4 8.2 43 27 2.5 12 10 39 10 8.6 57 18 1,200 <14 ND Notes:

Only analytes with detections are included in this table.

Bold indicates detection above laboratory reporting limit <X or ND = analyte not detected above laboratory reporting limit Highlight indicates an exceedance of the USEPA RSL and/or DTSC SVSL µg/m3 = micrograms per cubic meter
AF = Attenuation factor
ft bgs = feet below ground surface
DTSC = Department of Toxic Substance Control
HERO = Human and Ecological Risk Office
HHRA = Human Health Risk Assessment
LCC = Leak Check Compound
VOCs = Volatile Organic Compounds
NS = No standard established
RSL = Regional Screening Level
SVSL = Soil Vapor Screening Level
USEPA = United States Environmental Protection Agency
An attenuation factor of 0.03 was applied to the applicable USEPA RSL, updated November 2024, and DTSC HERO HHRA Note Number 3 SVSL, updated April 2025, for indoor air to calculate the appropriate screening level for soil vapor, per the DTSC "Final Supplemental Guidance for Screening and Evaluation of Vapor Intrusion," June 2023.

DTSC HHRA HERO SVSL - Industrial Air (AF=0.03)
Analytical Method USEPA TO-15
Unit µg/m³
USEPA RSL - Industrial Air (AF=0.03)

Page 217 of 218 ends

Table 3
Groundwater PFAS Analytical Results
160 and 180 Atascadero Road and 1700 Embarcadero, Morro Bay, California, 93442 Other PFAS Compounds Varies
Varies
Varies
Varies
DW-1 5/29/2026 1.4 J I <1.5 5.2 0.65 J <2.9 ND
DW-1-D 5/29/2026 2.4 I 0.68 J 5.2 0.91 J 1.3 J ND
DW-3 DW-3 5/29/2026 0.77 J I 0.51 J 4.2 0.72 J 0.86 J ND Notes:

Only analytes with detections are shown in this table.
~ SWRCB Response Levels and Notifcation Levels are drinking water standards that do not necessarily apply to private groundwater wells. <X or ND = Analyte not detected above method reporting limit Bold values denote concentrations exceeding the MRL
Italicized values denotes duplicate sample
DSTC HERO Note 3 Screening Levels = Department of Toxic Substances Control (DTSC) Human and Ecological Risk Office (HERO) Note 3, updated April 2025 I = Value is EMPC (estimated maximum possible concentration) J = Result is less than the reporting limit but greater than or equal to the method detection limit (MDL) and the concentration is an approximate value MCL = maximum contaminant level
ng/L = nanograms per liter
NS = no standard established
PFAS = per- and polyfluoroalkyl substances
SWRCB = California State Water Resources Control Board
USEPA = United States Environmental Protection Agency (USEPA) Regional Screening Levels, updated November 2024 Sample Location Sample ID Date Sampled Perfluorohexanesulfonic acid (PFHxS) Perfluorobutanoic acid (PFBA) PFOS PFOA PFBS PFHxS PFBA
SWRCB Drinking Water Response Level~ 40 10 5,000 10 NS
NS
USEPA National Primary Drinking Water Regulation Final MCL 4.0 4.0 NS 10 SWRCB Drinking Water Notification Level~ 4.0 4.0 500 3.0 Perfluorooctanesulfonic acid (PFOS) Perfluorooctanoic acid (PFOA) Perfluorobutanesulfonic acid (PFBS) NS
DW-1
PFAS Results by USEPA Method 1633 (Modified) (ng/L)

Page 218 of 218 ends

Morro Bay City CouncilJune 23, 2026

Morro Bay City Council
June 23, 2026