Sorry rhizo but vinegar is commonly used, and even sold as a professional application, for both weed and fungi/mold eradication. It is even recommended for killing athlete's foot and toenail fungus. ;) USDA studies recently published now scientifically support what we organic growers have known for years. I have provided one link but feel free to explore further if you wish. ;) Granted fungi live within a variety of ph on either side of neutral. But they thrive on the alkaline side of the bar and are severely inhibited in acidic environs. Any alteration of their existing ph zone can defeat them - even going way to the alkaline side with baking soda will sometimes work. But I have found going acidic to be more effective. Besides, we are not talking about saturating the soil here (make note of that Mark ;), we are talking about spraying the infected mulch with a 2:1 mix of 5% Vinegar (the big jug at the store kind). 2 parts water to 1 part vinegar is a frequently posted recipe for weed killing and while the acidity it provides is lethal, it is quite temporary. Much more temporary than using pine straw or pine bark. You can go stronger but I recommend starting out with a weaker solution and see how it goes. Don't forget to spray the shot spots as well. 10% vinegar is sometimes available locally and if you use that use a 3:1 ratio to start with. I don't see any other plantings in the areas pictured but if there are plantings there Mark, please don't spray them. Rake the mulch away from them before spraying and then just saturate the mulch. But Mark - please also note the alternative suggestions too. Kimmsr suggested raking - weekly is my suggestion - to increase air and solarization exposure and look for pine bark/straw to mix in with the existing mulch as well for more long term effect. Good luck. Here is a link that might be useful: USDA Study on Vinegar

Your soil in Oregon will most likely be clay and near the coast will also most likely tend to be acidic. Start your soil improvement program by contacting the Oregon State University USDA Cooperative Extension Service about a good, reliable soil test for base nutrient load and soil pH levels. After this has been done dig in with these simple soil tests to see what you currently have and for a guide to what you need to do to improve that soil; 1) Structure. From that soil sample put enough of the rest to make a 4 inch level in a clear 1 quart jar, with a tight fitting lid. Fill that jar with water and replace the lid, tightly. Shake the jar vigorously and then let it stand for 24 hours. Your soil will settle out according to soil particle size and weight. A good loam will have about 1-3/4 inch (about 45%) of sand on the bottom. about 1 inch (about 25%) of silt next, about 1 inch (25%) of clay above that, and about 1/4 inch (about 5%) of organic matter on the top. 2) Drainage. Dig a hole 1 foot square and 1 foot deep and fill that with water. After that water drains away refill the hole with more water and time how long it takes that to drain away. Anything less than 2 hours and your soil drains too quickly and needs more organic matter to slow that drainage down. Anything over 6 hours and the soil drains too slowly and needs lots of organic matter to speed it up. 3) Tilth. Take a handful of your slightly damp soil and squeeze it tightly. When the pressure is released the soil should hold together in that clump, but when poked with a finger that clump should fall apart. 4) Smell. What does your soil smell like? A pleasant, rich earthy odor? Putrid, offensive, repugnant odor? The more organic matter in your soil the more active the soil bacteria will be and the nicer you soil will smell. 5) Life. How many earthworms per shovel full were there? 5 or more indicates a pretty healthy soil. Fewer than 5, according to the Natural Resources Conservation Service, indicates a soil that is not healthy. Here is a link that might be useful: OSUCES

Lol, anubis, yes, I have absolutely no plans to grow anything in that dirt, ever. Although, I have to admit, I looked into whether or not I could lasagna the entire thing and maybe turn it into usable soil in a couple years. It's still a nice thought, but I can't raise the height of my entire front lawn by as many inches as turning the whole thing into a lasagna bed would require. I thought about rocks, but then flashed back to my childhood front yard, which was landscaped beautifully for a long time, and had a pea gravel walkway. Once my parents started to slack on the maintenance of the yard, that pea gravel got everywhere! It crept into parts of the yard it totally didn't belong, and I can't imagine what a pain it'll be getting rid of it, if my dad ever decides he wants to. It's small enough that it can make it through some screening, and yet large and non-porous enough to make soil kind of inhospitable to grow in. I do worry about what the wood mulch will look like after some time has passed though. I love the look of fresh wood chips, but after being exposed to the elements, it will inevitably turn grey and weathered looking. That's why I was thinking gorilla hair, but I don't know how long that retains its color either. Decisions, decisions!

Mold or mycelium or actual mushrooms in your mulch are beneficial rather than harmful. They are turning your mulch into available nutrients for plant roots, practically making compost as correctly noted above. Pathogenic fungi that cause plant disease are different species, an individual fungal species causing this or that plant disease. A very weakened seedling can sometimes catch fungal rot from rotting mulch, but not a healthy robust well-kept plant. To eat a mushroom you need to know what species it is. You can't eat a mushroom without positive identification. The tale of a mycologist who just ate an unknown mushroom and died is a fairy tale, it is absolutely impossible. Store-bought mushrooms are inevitably full of insecticides, eat them at your own risk. I feel deeply uncomfortable explaining it to grown-up people, I hope nobody minds.