I noticed this two days ago, as a button, fruiting directly under douglas fir and near bay, as well. Intrigued, I went back and found this. I thought, for sure, that the serrate, wavy gills would make this easy to identify but, alas, it didn't. The gills look just like pictures of Lentinellus gills but the stipe is different. This mushroom may be fruiting on wood, but I wasn't able to tell definitely. No spore print available. My apologies for the eye-crossing photo of gills. Thanks, you guys! That's a perfect fit.