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Att. 2 - Grant Agreement with State Coastal Conservancy.pdf

San Clemente City Council
September 1, 2026

Document
Att. 2 - Grant Agreement with State Coastal Conservancy.pdf
Meeting
September 1, 2026
Body
San Clemente City Council
Pages
14
Original file
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Text extracted from the city's file for reading and search. Open the original on san-clemente.legistar1.com. That file is the official record.

STATE OF CALIFORNIA
State Coastal Conservancy

GRANT AGREEMENT
Grant - Rev 11/20
THIS AGREEMENT is entered into this day of , 2026 in the State of California, by and between:
and
.

Pursuant to Chapter 3 of Division 21 of the California Public Resources Code, the State Coastal Conservancy (“the Conservancy”) hereby grants to the City of San Clemente (“the grantee”) a sum not to exceed $2,000,000.00 (two million dollars) subject to this agreement.

Continued on the following pages.

The provisions on the following pages constitute a part of this agreement.

This agreement has been executed by the parties as shown below.

STATE OF CALIFORNIA GRANTEE
AGENCY GRANTEE (If other than an individual, state whether a corporation, partnership, etc.) State Coastal Conservancy City of San Clemente
BY (Authorized Signature) BY (Authorized Signature)
  PRINTED NAME AND TITLE OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Amy Hutzel, Executive Officer Andy Hall, City Manager

ADDRESS & PHONE NUMBER ADDRESS & PHONE NUMBER
1515 Clay Street, 10th Floor
Oakland, CA 94612
Phone: (510) 286-1015
910 Calle Negocio
San Clemente, CA 92673
Phone: (949) 361-8341

AMOUNT ENCUMBERED BY

THIS DOCUMENT
$ 2,000,000.00

PROGRAM/CATEGORY
Local Assistance
FUND TITLE/PROP NO.

General Fund – SLR Adaptation
I certify that this
agreement is exempt
from Department of
General Services’
approval.

Erika Gomez
Procurement and
Contracts Manager

PRIOR AMOUNT

ENCUMBERED FOR THIS

AGREEMENT

FUND ITEM CHAPTER STATUTE FISCALYEAR
$ -0- 3760-101-0001(A)(a) 12/23 2023 23/24

TOTAL AMOUNT

ENCUMBERED TO DATE

PROJECT NAME
$ 2,000,000.00 San Clemente North Beach Sand Retention Planning Project I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above.

NAME AND SIGNATURE OF ACCOUNTING OFFICER DATE
AGREEMENT NUMBER AM. NO.

G26-001

TAXPAYERS FEDERAL EMPLOYER
IDENTIFICATION NO.
95-6000775
AGENCY
State Coastal Conservancy

GRANTEE'S NAME
City of San Clemente
Attachment 2
City of San Clemente
Grant Agreement No. G26-001

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I. SCOPE OF AGREEMENT
The grantee shall use the funds granted under this agreement to complete the following project (“the project”) for the North Beach area of the City of San Clemente, Orange County, as shown on the attached Exhibit 1.

The project consists of advancing the planning of “Concept 1 at North Beach” from the San Clemente Nature-Based Adaptation Project Feasibility Study as a multi-benefit solution to coastal erosion that facilitates increased access on the beach and in the water and that supports new rocky reef and coastal dune habitats. The project includes all of the following:

1. Conducting community engagement, including developing and implementing strategies to engage beach visitors and visitors from disadvantaged communities.

2. Preparing technical studies to address data gaps and inform future environmental review and permitting, including studies of sediment supply and transport dynamics, water quality, nearshore biological resources, and surfing conditions.

3. Preparing an alternatives analysis to optimize the Concept 1 design in consideration of benefits for biological resources, regional sand dynamics, and the City’s approach to address shoreline erosion city-wide.

4. Preparing preliminary engineering designs and conducting numerical and potentially physical modeling of the design.

5. Engaging technical advisors, such as regulatory agency staff and topic experts, California Native American tribes, regional stakeholder groups, and the community to refine the designs, address data gaps, and determine project success objectives.

The grantee shall carry out the project in accordance with this agreement. The grantee shall provide any funds beyond those granted under this agreement that are needed to complete the project.

II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND

DISBURSEMENT
The grantee shall not commence the project and the Conservancy will not be obligated to disburse any funds under this agreement until the following conditions precedent have been met:

1. The City Council of the grantee has adopted a resolution designating positions whose incumbents are authorized to negotiate and execute this agreement and amendments to it on behalf of the grantee.

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Grant Agreement No. G26-001

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2. The Executive Officer of the Conservancy (“Executive Officer”) has approved in writing:
a. The work program for the project as provided in section V. WORK PROGRAM. b. All contractors that the grantee intends to retain in connection with the project.

3. The grantee has provided to the Conservancy:
a. Evidence that the grantee has provided for required insurance coverage as described in section XIII. INSURANCE.
b. A complete project budget that identifies the estimated costs to complete the project and all sources of funding for the project.

III.TERM OF AGREEMENT
This agreement will take effect when signed by both parties and received in the office of the Conservancy together with the resolution described in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT. This agreement may be signed electronically using a process specified by the Conservancy.

The grantee shall complete all work by September 30, 2029 (“the completion date”).

The grantee shall deliver a final Request for Disbursement to the Conservancy no later than October 31, 2029.

This agreement terminates on December 31, 2029 (“the termination date”).

IV.AUTHORIZATION
The signature of the Executive Officer of the Conservancy on this agreement certifies that at its April 23, 2026, meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit 2. This agreement is executed under that authorization.

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Grant Agreement No. G26-001

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Standard Provisions
V. WORK PROGRAM
Before beginning the project, the grantee shall submit a detailed work program to the Executive Officer for review and written approval of its consistency with this grant agreement. The work program must include:

1. The specific tasks to be performed.

2. A schedule of completion for the project, specifically listing the date for completing each project component and showing that the project will be completed by the completion date.

3. A budget that identifies how the grantee will use the funds granted under this agreement, including the labor, materials, contractor and indirect costs to be paid for with the funds granted under this agreement (“work program budget”).

If all or any part of the project to be funded under this agreement will be performed by third parties (“contractors”) under contract with the grantee, the grantee shall submit to the Executive Officer for review and approval the names and qualifications of the contractors.

The work program will have the same effect as if included in the text of this agreement.

However, the work program may be modified without amendment of this agreement upon the grantee’s submission of a modified work program and the Executive Officer’s written approval of it. If this agreement and the work program are inconsistent, this agreement will control.

The grantee shall carry out the project in accordance with the approved work program.

VI.COORDINATION AND MEETINGS
The grantee shall coordinate closely with Conservancy staff and other involved entities, including local, state and federal agencies, and shall participate in meetings and other communications as necessary to ensure coordination.

VII. WORK PRODUCTS AND ACKNOWLEDGMENT OF CONSERVANCY

SUPPORT
All material, data, information, and written, graphic or other work produced, developed or acquired under this agreement is subject to the unqualified and unconditional right of the Conservancy to use, reproduce, publish, display, and make derivative use of all such work, or any part of it, free of charge and in any manner and for any purpose; and to authorize others to do so. If any of the work is subject to copyright, trademark, service mark, or patent, the City of San Clemente
Grant Agreement No. G26-001

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Conservancy is granted and shall have a perpetual, royalty-free, nonexclusive and irrevocable license to use, reproduce, publish, use in the creation of derivative works, and display and perform the work, or any part of it, and to grant to any third party a comparable and coextensive sublicense.

The grantee shall include in any contract with a third party for work under this agreement terms that preserve the rights, interests, and obligations created by this section, and that identify the Conservancy as a third-party beneficiary of those provisions.

The grantee shall not utilize the work produced under this agreement for any profit-making venture, nor sell or grant rights to a third party for that purpose.

In order to acknowledge the Conservancy’s support of the project, the grantee shall display the Conservancy’s name and logo in the final report in a prominent location. The grantee shall mention the Conservancy’s support in its project-related press releases, contacts with the media, and social media postings, and on its website.

VIII.COSTS AND DISBURSEMENTS
When the Conservancy determines that all conditions in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT have been fully met, the Conservancy shall disburse to the grantee a total amount not to exceed the amount granted under this agreement, in accordance with work program and this section.

A. Timing of Disbursement
The Conservancy will disburse funds after the grantee has incurred costs and expenses, upon the grantee’s satisfactory progress under the approved work program and upon grantee’s submission of a “Request for Disbursement” form. The Conservancy will not disburse the final five percent or $100,000 of the funds granted under this agreement, whichever is lower, until the grantee has complied with section X. PROJECT COMPLETION and the Conservancy has accepted the project.

B. Payable Costs and Expenses
The Conservancy will only disburse funds for these costs and expenses incurred to carry out the project:

1. Grantee’s staff time, provided that hourly rates for grantee’s staff time billed to the Conservancy may not exceed the actual compensation paid by grantee to employees, which may include employee benefits. The grantee shall require its employees to keep records of their time spent on the project for purposes of documenting the employee time billed to the Conservancy.

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2. Grantee’s travel and related expenses in accordance with the rates set forth in “SCC Travel Reimbursement Rates for Grants and Contracts,” as posted on the Conservancy’s website at www.scc.ca.gov.

3. Costs charged to the grantee by its contractors.

4. Other necessary direct costs that are reasonable in nature and amount, taking into account the nature of the project, its location, and other relevant factors.

5. Grantee’s indirect costs as identified in the work program budget.

Notwithstanding any other provision, after the grantee has satisfied the conditions precedent to commencement of the project set forth in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT, the grantee may request reimbursement, and the Conservancy may reimburse grantee, for grantee’s costs to satisfy the conditions precedent.

C. Requesting Disbursement
The grantee shall request disbursements by filing with the Conservancy a fully executed “Request for Disbursement” form (available from the Conservancy). The grantee shall include in the form its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred, of all work done for which disbursement is requested. The form must be limited to work done, including work by contractors, in one Conservancy fiscal year, which is July 1 through June 30 of the following year. Work that spans two Conservancy fiscal years must be separated into two Requests for Disbursement, one for each fiscal year. The form must also indicate cumulative expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement.

An authorized representative of the grantee must sign the form. Each form must be accompanied by:

1. All receipts and any other source documents for direct expenditures and costs that the grantee has incurred.

2. Invoices from contractors (showing work done in only one Conservancy fiscal year) and any receipts and any other source documents for costs incurred and expenditures by any such contractor, unless the Executive Officer makes a specific exemption in writing.

3. A progress report summarizing the current status of the project and the work for which the grantee is requesting disbursement.

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The grantee shall submit requests for disbursement no more frequently than monthly and no less frequently than quarterly. The grantee’s failure to fully execute and submit one or more Requests for Disbursement with all supporting documents in accordance with this section, will relieve the Conservancy of its obligation to disburse funds to the grantee until the grantee corrects all deficiencies.

IX.EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGET ITEMS
No increase in the total amount of funds granted under this agreement will be valid unless set forth in a written amendment to this agreement. The grantee shall expend funds granted under this agreement consistent with the work program budget. Expenditure on items contained in the work program budget, other than indirect costs, may vary by as much as ten percent per item without prior approval of the Executive Officer. Any deviation that is greater than ten percent for a budget item or that affects indirect costs, requires written approval of the Executive Officer and a revised work program budget. The Conservancy may withhold payment for items that have not received the required approval. Any increase in the funding for a budget item will mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement.

X. PROJECT COMPLETION
The grantee shall complete the project by the completion date provided in section III. TERM OF AGREEMENT. Upon completion of the project, the grantee shall supply the Conservancy with evidence of completion by submitting the following by the final Request for Disbursement date set forth in section III. TERM OF AGREEMENT:

1. The plan and any other work products specified in the work program for the project, each in a format or formats (for example, paper, digital, photographic) approved by the Executive Officer.

2. A fully executed final “Request for Disbursement.” A “final Request for Disbursement” means a Request for Disbursement that includes all remaining amounts for which grantee is entitled to seek payment pursuant to this agreement, including the final five percent or $100,000 of the funds granted under this agreement, whichever is lower.

The Conservancy shall determine whether the grantee has satisfactorily completed the project. If so, the Conservancy shall issue to the grantee a letter of acceptance of the project and disburse the remaining amounts for which grantee is entitled under this agreement. The project will be deemed complete as of the date of the letter.

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XI.EARLY TERMINATION, SUSPENSION AND FAILURE TO PERFORM Before the project has commenced, either party may terminate this agreement for any reason by giving the other party seven days’ prior written notice.

Before the project is complete, the Conservancy may terminate this agreement for any reason by giving the grantee thirty days’ prior written notice. Before the project is complete, the Conservancy may suspend this agreement for any reason by giving the grantee seven days’ prior written notice. In either case, the grantee shall immediately stop work under the agreement and take all reasonable measures to prevent further costs to the Conservancy. The Conservancy shall be responsible for any reasonable and non-cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate or suspend, but only up to the undisbursed balance of funding authorized in this agreement. Any notice suspending work under this agreement will remain in effect until further written notice from the Conservancy authorizes work to resume.

If the grantee fails to complete the project as required, or fails to fulfill any other obligations of this agreement prior to the termination date, the grantee will be liable for immediate repayment to the Conservancy of all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph does not limit any other remedies the Conservancy may have for breach of this agreement.

Before the project is complete, the grantee may terminate this agreement for any reason by giving the Conservancy seven days’ prior written notice and repaying to the Conservancy all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and allow early termination without repayment for work partially completed.

On or before the date of termination of the agreement under this section, whether terminated by the grantee or the Conservancy, the grantee shall provide the Conservancy with all work, material, data, information, and written, graphic or other work produced, developed or acquired under this agreement (whether completed or partial), in appropriate, readily useable form.

The parties expressly agree to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this agreement under this section.

The grantee shall include in any agreement with any contractor retained for work under this agreement a provision that entitles the grantee to suspend or terminate the agreement with the contractor for any reason on written notice and on the same terms and conditions specified in this section.

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XII. INDEMNIFICATION AND HOLD HARMLESS
The grantee shall be responsible for, indemnify and hold harmless the Conservancy, its officers, agents and employees from any and all liabilities, claims, demands, damages, or costs, including without limitation litigation costs and attorneys fees, resulting from or arising out of the willful or negligent acts or omissions of the grantee, its officers, agents, contractors, subcontractors and employees, or in any way connected with or incident to this agreement, except for the active negligence of the Conservancy, its officers, agents or employees. The duty of the grantee to indemnify and hold harmless includes the duty to defend as provided in Civil Code Section 2778. This agreement supersedes any right the grantee may have as a public entity to indemnity and contribution as provided in Gov. Code Sections 895 et seq.

The grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the State, its officers, agents or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this agreement.

Nothing in this agreement is intended to create in the public or in any member of it rights as a third-party beneficiary under this agreement.

XIII.INSURANCE
Throughout the term of this agreement, the grantee shall procure and maintain insurance, as specified in this section, against claims for injuries to persons or damage to property that may arise from or in connection with any activities by the grantee or its agents, representatives, employees, or contractors associated with the project undertaken pursuant to this agreement.

As an alternative, with the written approval of the Executive Officer, the grantee may satisfy the coverage required by this section in whole or in part through: (a) its contractors’ procurement and maintenance of insurance for work under this agreement, if the coverage otherwise fully satisfies the requirements of this section; or (b) the grantee’s participation in a “risk management” plan, self-insurance program or insurance pooling arrangement, or any combination of these, if consistent with the coverage required by this section.

1. Minimum Scope of Insurance. Coverage shall be at least as broad as:
a. Insurance Services Office (“ISO”) Commercial General Liability coverage, occurrence basis (Form CG 00 01) or comparable.
b. Automobile Liability coverage - ISO Form Number CA 0001, Code 1 (any auto). c. Workers’ Compensation insurance as required by the Labor Code of the State of California.

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2. Minimum Limits of Insurance. Grantee shall maintain coverage limits no less than:
a. General Liability:
(Including operations,
products and completed
operations, as applicable)
$1,000,000 per occurrence for bodily injury,
personal injury and property damage.
b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
c. Worker’s Compensation: Worker’s compensation as required by law.

3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Executive Officer.

4. Waiver of Subrogation. The grantee hereby grants to the State of California, its officers, agents, employees, and volunteers, a waiver of any right to subrogation which any insurer of the grantee may acquire against the State of California, its officers, agents, employees, and volunteers, by virtue of the payment of any loss under such insurance. Grantee agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the grantee has received a waiver of subrogation endorsement from the insurer.

5. Acceptability of Insurers. Insurance must be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to the Conservancy and approved in writing by the Executive Officer.

6. Verification of Coverage. The grantee shall furnish the Conservancy with original certificates and amendatory endorsements, or copies of the applicable policy language, effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Officer before work commences. The Conservancy reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage, at any time.

7. Contractors. The grantee shall require each contractor to provide and maintain coverage consistent with the requirements of this section. To the extent generally available, grantee shall also require each professional contractor to provide and maintain errors and omissions liability insurance appropriate to the contractor’s profession and in a reasonable amount in light of the nature of the project with a minimum limit of liability of $1,000,000.

8. Premiums and Assessments. The Conservancy is not responsible for premiums and assessments on any insurance policy.

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XIV. AUDITS/ACCOUNTING/RECORDS
The grantee shall maintain financial accounts, documents, and records (collectively, “required records”) relating to this agreement, in accordance with the guidelines of “Generally Accepted Accounting Principles” (“GAAP”) published by the American Institute of Certified Public Accountants. The required records include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, disbursement of all funds related to work under the agreement, and time and effort reports that permit tracing from the request for disbursement forms to the accounting records and to the supporting documentation.

Additionally, the Conservancy or its agents may review, obtain, and copy all required records.

The grantee shall provide the Conservancy, California State Auditor, Department of Finance, their officers, employees and agents with any relevant information requested and with access to the grantee’s premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this agreement and any applicable laws and regulations.

The grantee shall retain the required records for a minimum of three years following final disbursement by the Conservancy. The records will be subject to examination and audit by the Conservancy and the California State Auditor during the retention period.

If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors.

The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement.

XV. NONDISCRIMINATION
During the performance of this agreement, the grantee and its contractors shall not deny the agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The grantee shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The grantee and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part City of San Clemente
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1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the Conservancy to implement such article. The grantee shall permit access by representatives of the Civil Rights Department and the Conservancy upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the Conservancy shall require to ascertain compliance with this clause. The grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.)
The grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this agreement.

XVI. AMERICANS WITH DISABILITIES ACT
By signing this agreement, grantee certifies that it is in compliance with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

XVII. PREVAILING WAGE
Work done under this grant agreement may be subject to the prevailing wage and other related requirements of the California Labor Code, Division 2, Part 7, Chapter 1, Sections 1720-1861.

If required by law to do so, the grantee shall pay prevailing wage to all persons employed in the performance of any part of the project and otherwise comply with all associated requirements and obligations.

The grantee is responsible for determining whether the project is subject to prevailing wage laws, and for complying with all labor laws applicable to the project. The grantee may also review the Conservancy publication, “Information on Prevailing Wage Laws for State Coastal Conservancy Grantees” (2023), available from the Conservancy on request, which provides general information and is not legal advice to the grantee on whether the grantee’s project is subject to prevailing wage laws.

XVIII.DRUG-FREE WORKPLACE
The grantee’s signature on this agreement constitutes the certification required by Government Code Section 8355 (Drug-Free Workplace Act of 1990), which requires that all state grantees provide a drug-free workplace by doing all of the following:

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1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the person’s or organization’s workplace and specifying actions that will be taken against employees for violations of the prohibition.

2. Establishing a drug-free awareness program to inform employees about all of the following:
a. The dangers of drug abuse in the workplace.
b. The person’s or organization’s policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance programs. d. The penalties that may be imposed upon employees for drug abuse violations.

3. Requiring that each employee engaged in the performance of the grant be given a copy of the drug-free workplace statement and that, as a condition of employment on the grant, the employee agrees to abide by the terms of the statement.

XIX. EXECUTIVE ORDER N-6-22 – RUSSIA SANCTIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the Conservancy determine the grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement.

The Conservancy shall provide the grantee advance written notice of such termination, allowing the grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the Conservancy.

XX. INDEPENDENT CAPACITY
The grantee, and the agents and employees of the grantee, in the performance of this agreement, are acting in an independent capacity and not as officers or employees or agents of the State of California.

XXI. ASSIGNMENT
Without the written consent of the Executive Officer, the grantee shall not assign this agreement in whole or in part.

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XXII. TIMELINESS
Time is of the essence in this agreement.

XXIII.AMENDMENT
Except as expressly provided in this agreement, no change in this agreement will be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement will be binding on any of the parties.

XXIV. SURVIVAL
The obligations in sections VII. WORK PRODUCTS AND ACKNOWLEDGMENT OF CONSERVANCY SUPPORT and XII. INDEMNIFICATION AND HOLD HARMLESS survive the termination of this agreement.

Figure 2 – Site Plan
Exhibit 1: North Beach Concept Design

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COASTAL CONSERVANCY
Staff Recommendation
April 23, 2026

SAN CLEMENTE NORTH BEACH SAND RETENTION PLANNING PROJECT Project No. 25-058-01
Project Manager: Sally Gee
RECOMMENDED ACTION: Authorization to disburse up to $2,000,000 to the City of San Clemente for the San Clemente North Beach Sand Retention Planning Project, consisting of preparing technical studies, an alternatives analysis, and preliminary designs, and conducting community engagement for a sand retention project to address coastal erosion along the San Clemente shoreline, in Orange County.

LOCATION: North Beach, City of San Clemente, Orange County

EXHIBITS
Exhibit 1: Project Location Map
Exhibit 2: North Beach Concept Design
Exhibit 3: Site Photos
Exhibit 4: Project Letters

RESOLUTION AND FINDINGS
Staff recommends that the State Coastal Conservancy adopt the following resolution and findings.

Resolution:

The State Coastal Conservancy hereby authorizes a grant of an amount not to exceed two million dollars ($2,000,000) to the City of San Clemente (“the grantee”) for the San Clemente North Beach Sand Retention Planning Project, consisting of preparing technical studies, an alternatives analysis, and preliminary designs, and conducting community engagement for a sand retention project to address coastal erosion along the San Clemente shoreline, in Orange County (the “project”).

Prior to commencement of the project, the grantee shall submit for the review and written approval of the Executive Officer of the Conservancy (Executive Officer) the following:

1. A detailed work program, schedule, and budget.

Exhibit 2: Staff Recommendation

SAN CLEMENTE NORTH BEACH SAND RETENTION PLANNING PROJECT

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2. Names and qualifications of any contractors to be retained in carrying out the project.

Findings:

Based on the accompanying staff recommendation and attached exhibits, the State Coastal Conservancy hereby finds that:

1. The proposed authorization is consistent with Chapter 3 of Division 21 of the Public Resources Code, regarding the Climate Ready Program.

2. The proposed project is consistent with the current Conservancy Project Selection Criteria.

STAFF RECOMMENDATION
PROJECT SUMMARY:

Staff recommends the Conservancy authorize a $2,000,000 grant to the City of San Clemente (City) for the San Clemente North Beach Sand Retention Planning Project (project), consisting of preparing technical studies, an alternatives analysis, and preliminary designs, and conducting community engagement for a sand retention project to address coastal erosion along the San Clemente shoreline, in Orange County. The project will advance planning of one of the concepts from the San Clemente Nature-Based Adaptation Project Feasibility Study (Feasibility Study).

While beach nourishment has been a key strategy implemented by the City to combat beach erosion, this approach has not led to increased resilience and adequate protection for City infrastructure during coastal storm events. In 2022, the City of San Clemente initiated a process to identify feasible solutions to promote long term resiliency of the City’s shoreline by completing beach sand replenishment projects and seeking nature-based resilience options to retain sand. There are several critical erosion hotspots along the City’s shoreline which were potential candidate locations for implementation of nature-based solutions that could stabilize the shoreline. The result of this process was the Feasibility Study, completed in late 2025, which assessed three concepts at three different locations. This project will include further planning and analysis of a sand retention project located at North Beach that is based on Concept 1 of the Feasibility Study.

Concept 1 is a multi-benefit, emergent breakwater situated between North Beach and the Capistrano Shores Manufactured Home community (Exhibit 2). The structure is envisioned as an emergent rocky reef, sited offshore parallel to the beach, and made of armor stone material with a “barbell” shape design. The submerged, flared sides of the structure gently slope down around the seaward and side edges to enhance surfing opportunities, and the central/main segment has steeper slopes to dissipate wave energy. The crest along the top of the structure is proposed to be emergent at all times and resilient to future sea level rise. The structure is designed to slow long-shore sediment transport and reduce wave energy to retain sand on the beach. Concept 1 also includes placing approximately 500,000 to 600,000 cubic yards of sandy material on the beach behind the structure during construction. This description of Concept 1 is a preliminary design concept, in which the size, height, and footprint of the structure, as well as the placement area and volume of sand, will be further analyzed as part of the project.

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This project includes all of the following activities. The City will conduct technical studies needed to address data gaps and inform future environmental review and permitting, including but not limited to studying sediment supply and transport dynamics, water quality, nearshore biological resources, and surfing conditions. The City will also perform an alternatives analysis to optimize the Concept 1 design in consideration of benefits for biological resources, regional sand dynamics, and the City’s approach to address shoreline erosion City-wide. The City will develop preliminary engineering designs and conduct numerical and potentially physical modeling of the design. The City will engage technical advisors, such as regulatory agency staff and topic experts, California Native American tribes, regional stakeholder groups, and the community to refine the designs, address data gaps, and determine project success objectives.

A public outreach program was an essential part of the development of the Feasibility Study to date. This was implemented via general and focused stakeholder group forums in order to assess general reception of concepts, obtain feedback to refine the concepts, and integrate outside ideas into the designs. This public outreach and feedback program will continue as part of the project. Additionally, the City is currently gathering data on who visits San Clemente beaches and identifying if visitors may be travelling to the beaches from disadvantaged communities. As part of the project’s public outreach and feedback program, the City will develop and implement strategies to conduct outreach to beach visitors and to connect with visitors from disadvantaged communities during planning.

North Beach is of significant economic and recreational value to the City of San Clemente. A large pay parking lot is situated adjacent to the beach with retail and dining opportunities nearby. Beachside, there are amenities such as fire pits, an access ramp for people with disabilities, restroom facilities, a public safety building, tot lot playground, and both wet and dry utilities. San Clemente’s largest train stop is situated adjacent to North Beach and is part of the Los Angeles – San Diego – San Luis Obispo rail corridor. The economic potential this beach holds for the City is second only to the shoreline surrounding the City’s nearly 100-year old Municipal Pier and is therefore a targeted area for improving long term coastal resiliency. This project will plan a potential solution to reduce erosion of the shoreline at North Beach and provide added protection of infrastructure on the shoreline.

The project aims to refine designs for a multi-benefit solution to not only address coastal erosion, but also increase coastal access on the beach and in the water, and support new rocky reef and coastal dune habitats. Overall, the project is envisioned to expand opportunities for public recreation and enjoyment, such as surfing around the structure and beach activities with a re-established beach area. The structure is envisioned to create potential for subtidal and intertidal species colonization and use, similar to the San Onofre Nuclear Generating Station's Wheeler Reef modules located further offshore than the proposed structure. In the longer term, establishing a wider beach also sets the stage for potentially implementing dune habitat restoration once the beach has sufficiently widened over time. A widened beach provides an opportunity for shorebirds, native vegetation, and intertidal infaunal and fish species that inhabit sandy beaches to utilize the space. For example, sensitive species such as grunion, threatened or endangered species such as least terns and western snowy plovers, and back beach dune vegetation to expand within their regional distribution range.

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Site Description:

The City is the southernmost city in Orange County. The City is located north of Camp Pendleton Marine Corps Base and south of Dana Point and contains five miles of beaches backed by public infrastructure. The City is in the northernmost portion of the Oceanside Littoral Cell. The primary source of sediment has historically been from San Juan Creek located north of the City and from the coastline north of Dana Point. Due to urbanization and upstream flood control and water supply management actions, the Creek delivers almost no sand to the beach. Historically, sand also moved around Dana Point and fed San Clemente from the north, but due to the construction of Dana Point Harbor and its accompanying breakwater, this source of sand was also cut off.

The City owns the portion of the project site located above the mean high tide line. The California State Lands Commission owns the portions of the project site below the mean high tide line. The project includes working with the State Lands Commission to obtain a lease agreement.

Grant Applicant Qualifications:

To date, the City has been awarded five California Coastal Commission grants for various coastal projects including shoreline monitoring, LCP development, the Feasibility Study, an offshore sand search, and beach attendance data collection. The City has a successful 10-year track record of effective grant management with grant deliverables submitted on time and within budget, including timely submittal of grant progress reporting and reimbursement requests.

CONSISTENCY WITH CONSERVANCY’S PROJECT SELECTION CRITERIA:

The proposed project is consistent with the Conservancy’s Project Selection Criteria, last updated on September 23, 2021, in the following respects:

Selection Criteria

1. Extent to which the project helps the Conservancy accomplish the objectives in the Strategic Plan.

See the “Consistency with Conservancy’s Strategic Plan” section below.

2. Project is a good investment of state resources.

The California Coastal Commission funded the City’s Feasibility Study to identify and evaluate nature-based shoreline resilience options. This project will help refine Concept 1 at North Beach for a sand retention structure combined with beach nourishment to combat critical coastal erosion and increase resiliency of the San Clemente shoreline to sea level rise. The City will work closely with regulatory agencies, California Native American tribes, regional stakeholders, and the community to refine the proposed design.

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3. Project includes a serious effort to engage tribes. Examples of tribal engagement include good faith, documented efforts to work with tribes traditionally and culturally affiliated to the project area.

As part of the project, the City will reach out to tribes to obtain feedback on the design and develop a relationship with interested tribes for City projects. As part of conducting the Feasibility Study, the City solicited input from Acjachemen Tribes, and tribal representatives are on the outreach and distribution lists that the City will use in carrying out the project, though tribal engagement with the Feasibility Study was low. The City is committed to increasing tribal engagement as part of the project by continuing to reach out to tribes and trying various contact methods.

4. Project benefits will be sustainable or resilient over the project lifespan.

The project will conduct an alternatives analysis to optimize the Concept 1 design in consideration of benefits for biological resources, regional sand dynamics, and the City’s approach to address shoreline erosion City-wide. Additionally, the City will conduct further planning and design in consultation with regulatory agencies and regional stakeholders working on coastal erosion issues. This process will develop a more robust and supported project design.

The project will design features to withstand significant storm conditions and high water levels by applying coastal engineering design methods and results gathered from both numerical and physical models. The features will initially be designed to withstand sea level rise using Ocean Protection Council’s 2024 Sea Level Rise Guidelines (or other latest best available science) with the ability to augment them in the future to withstand higher sea levels if needed. This can be achieved by raising the reef and dune crest elevations or adding larger stones to the reef and more sand to the beach and dunes. In the long-term, the City is committed to monitoring the multi-purpose reef structure and widened beach if implemented. Beach elevation profiles behind the structure will be taken to monitor beach performance. Maintenance of the structure will take place on an as-needed basis.

5. Project delivers multiple benefits and significant positive impact.

The project will assist the City in planning a sand retention solution to address critical shoreline erosion. Benefits of the proposed reef structure and widened beach include long term coastal resilience in San Clemente; widening of the sandy beach, enhanced recreational opportunities for visitors and residents; additional rocky intertidal and subtidal habitat; sandy beach habitat for least terns, western snowy plovers, and grunion; and economic resiliency for the City which relies heavily on coastal visitors.

6. Project planned with meaningful community engagement and broad community support.

Throughout the course of the Feasibility Study (2022-2025), an extensive public outreach and feedback program accompanied the development of concept design alternatives. This was achieved through both public meetings and with focused stakeholder groups forums to assess the general reception of concepts, obtain feedback for refinements based on community and stakeholder requests, and integrate outside ideas into the designs. Focused stakeholder groups included the Orange County Transit Authority, Surfrider Foundation, Bring Back Our Beaches

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community group, Save Our Beaches community group, the North Beach Community Association, and the Capistrano Shores Manufactured Homes Association.

Seven presentations and/or meetings at San Clemente City Hall were held since the initial design concept ideas were drafted in that effort to garner as much community engagement in the Feasibility Study as possible. Focused stakeholder group meetings generally incorporated an open-discussion presentation with concept designs presented in virtual and large-print format for markup by the group. This feedback was incorporated into the development and selection of the conceptual designs that moved forward. Overall, the outreach process identified strong public support for large-scale City-wide beach nourishment as well as multi-purpose reef sand retention features, specifically shore parallel retention structures in the locations selected for the conceptual designs. Continued public outreach and engagement will occur during the project through an iterative process of feedback and project refinement. The City and project team will continue to collaborate with focused stakeholder groups and hold regular public meetings as the process moves from concept through to implementation. Additionally, the project will include outreach to visitors from disadvantaged communities to San Clemente beaches.

PROJECT FINANCING
Coastal Conservancy $2,000,000
Project Total $2,000,000
Conservancy funding is anticipated to come from a Fiscal Year 2023/24 appropriation from the General Fund to the Conservancy to address "urgent sea-level rise adaptation and coastal resilience needs using nature-based solutions or other strategies” (Budget Act of 2023, Chapter 12, Statutes of 2023 (SB 101) as amended by Chapter 38, Statutes of 2023 (AB 102)). The project is consistent with this funding source because the project will advance planning for a sand retention project at North Beach in San Clemente to design a solution to address critical coastal erosion caused by sea-level rise, and that will increase coastal resiliency, enhance wildlife habitat, and protect public infrastructure.

Unless specifically identified as “Required Match,” the other sources of funding and in-kind contributions described above are estimates. The Conservancy does not typically require matching funds or in-kind services, nor does it require documentation of expenditures from other funders or of in-kind services. Typical grant conditions require grantees to provide any funds needed to complete a project.

CONSISTENCY WITH CONSERVANCY’S ENABLING LEGISLATION:

The project is consistent with Division 21, Chapter 3, Section 31113 of the Public Resources Code, which establishes the Climate Ready Program and authorizes the Conservancy to address impacts and potential impacts of climate change on resources within the Conservancy’s jurisdiction (Section 31113(a)).

Under Sections 31113(b) and (c), the Conservancy may award grants to public agencies to undertake projects that address sea level rise and other coastal hazards that threaten coastal

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communities, infrastructure, and natural resources. Consistent with Section 31113(b), this is a planning project that will address sea level rise and beach and bluff erosion. Consistent with the Section 31113(c)(2) this project will maximize public benefits and reduce flood risk and enhance fish and wildlife habitat through planning for a multi-benefit, emergent breakwater that will potentially support rocky reef habitat and beach nourishment, which will support coastal dune habitats in the future. Consistent with Section 31113(d)(1)(A-B), the project prioritizes natural infrastructure to help a coastal community adapt to climate change by designing an emergent breakwater that could mimic natural rocky reef systems to adapt to climate change, and provides multiple benefits including long term coastal resilience in San Clemente – widening of the sandy beach, enhancing recreational opportunities for visitors and residents, restoration of sandy beach habitat for wildlife, and economic resiliency for the City.

CONSISTENCY WITH CONSERVANCY’S 2023-2027 STRATEGIC PLAN:

Consistent with Goal 4.1 Sea Level Rise Adaptation Projects, the proposed project will develop project plans for a multi-benefit, emergent breakwater combined with beach nourishment for shoreline protection against sea level rise.

CEQA COMPLIANCE:

This project consists of preparing technical studies, an alternatives analysis, preliminary designs, and outreach and engagement. Thus, the project involves only data gathering, resource evaluation, planning, and feasibility analyses for possible future actions that have not yet been approved or funded. These activities are statutorily exempt from review under the California Environmental Quality Act (CEQA) pursuant to Title 14 of the California Code of Regulations Section 15262, which exempts planning and feasibility studies for possible future actions that have not yet been approved, adopted, or funded and categorically exempt under Section 15306, which exempts data collection and resource evaluation activities that do not result in a serious or major disturbance to an environmental resource. The project will consider environmental factors and will not cause a serious or major disturbance to an environmental resource.

Upon approval of the project, Conservancy staff will file a Notice of Exemption.

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