Morro Bay City Council
May 28, 2024

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, May 28, 2024, 5:30 p.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Public Participation
Public participation is offered in the following ways:
• Community members may attend the meeting in person at the Morro Bay Veterans Hall.

Alternatively, members of the public may watch the meeting and speak during general Public Comment or on a specific agenda item by logging into the Zoom webinar using the information provided below. Please use the "raise hand" feature to indicate your desire to provide public comment.
•
Zoom webinar link:
https://us02web.zoom.us/j/82722747698?pwd=aWZpTzcwTHlRTk9xaTlmWVNWRWFU QT09
•
• Password: 135692
Or Telephone Attendee: 1 (408) 638-0968 or 1 (669) 900-6833 or 1 (346) 248-7799; Webinar ID: 827 2274 7698; Password: 135692: Press *9 to raise hand for public comment.
•
• Meetings are also broadcast on cable Channel 20 and streamed on the City's website.

Community Members are encouraged to submit agenda correspondence via email to the City Council at [email protected] prior to the meeting. Agenda correspondence received by 10:00 a.m. on the meeting day will be posted on the City website. •
Pages

1. ESTABLISH QUORUM AND CALL TO ORDER

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report

4.b Mayor and Councilmembers' Reports, Announcements and Presentations

4.c City Manager Reports, Announcements and Presentations

4.d Subcommittee Reports

1. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA

2. Morro Bay Power Plant (Vistra)

3. Offshore Wind Energy

4. Downtown Design District

5. RECOGNITION AND PRESENTATIONS

5.a Hunger Awareness Day Proclamation

5.b Fitness Works Proclamation

5.c Safe Boating Week Proclamation

6. PUBLIC COMMENT
Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council at this time.

Public comment is an opportunity for members of the public to provide input to the governing body. To increase the effectiveness of the Public Comment Period, the City respectfully requests the following guidelines and expectations be followed:
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Those desiring to speak are asked to complete a speaker slip, which are located at the entrance, and submit it to the City Clerk. However, speaker slips are not required to provide public comment. •
When recognized by the Mayor, please come forward to the podium to speak. Though not required, it is helpful if you state your name, city of residence and whether you represent a business or group. Unless otherwise established by the Mayor, comments are to be limited to three minutes.
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All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
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The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
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Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
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Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting.
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Your participation in City Council meetings is welcome and your courtesy will be appreciated.
•
• The Council in turn agrees to abide by its best practices of civility and

civil discourse according to Resolution No. 07-19.

7. CONSENT AGENDA
Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.

Recommended Action
Approve Consent Agenda Items 7.a through 7.g as submitted.

7.a Approval of Minutes
(City Clerk)
Recommended Action
Approve as submitted.

1. May 14, 2024 Special Closed Session Meeting 6

2. May 14, 2024 Regular Meeting 8

7.b Approval of Proclamations
(City Clerk)
Recommended Action
Approve as submitted.

1. Proclamation declaring June 7, 2024 to be "Hunger Awareness Day"
17 2. Proclamation recognizing Fitness Works for their organization of the "Clean-Up-Day" to remove the trash and debris in the riverbed between Quintana Road and HWY 1 on April 20, 2024 18 3. Proclamation declaring National Safe Boating Week May 18 through May 24, 2024
19 4. Proclamation declaring June 2024 as Pride Month 20

7.c Presentation of Allocation of Water Equivalency Units (WEU) for Fiscal Year (FY) 2024/25
21 (Public Works Department)
Recommended Action
Adopt Resolution No. 30-24 to allocate 50 WEUs for residential development (30 single-family residential (SFR) and 20 multi-family residential (MFR)) and 65 for commercial development for a total of 115 WEUs for FY2024/25.

7.d Adopt Resolution No. 31-24 Authorizing the City to Apply for a California Clean Energy Planning Program (CCEPP) Grant, Enter Into a Grant Agreement for $100,000, and Execute all Necessary Documents to Implement and Carry Out the Terms of the Grant
25 (Harbor Department)

Recommended Action
Adopt Resolution No. 31-24 approving the application and award of $100,000 grant funds for the purpose of developing and implementing a series of stakeholder outreach and engagements on clean energy solutions, such as offshore wind and authorize the City Manager to execute all necessary documents to implement and carry out the terms of the grant.

7.e Authorizing the City to enter into a Sewage Management grant with the California State Parks, Division of Boating and Waterways in the amount of $17,297.52
39 (Harbor Department)
Recommended Action
Adopt Resolution No. 32-24 authorizing Harbor Patrol Officer Charlie Howland, to apply for and execute a Sewage Management grant with the California State Parks, Division of Boating and Waterways (DBW) for purchase and installation of a vessel pump-out station.

7.f Authorization for the Exchange of Fire Apparatus with the City of Atascadero
43 (Fire Department)
Recommended Action
Approve an exchange of the Morro Bay Pierce/Kenworth T370 Rescue 5351 for the Atascadero City Westmark 7574 Type 3 Wildland Engine and authorize the City Manager to execute the Exchange Agreement.

7.g Second Reading and Adoption of Ordinance No. 667 Adding Chapter

2.48 to Title 2 of the Morro Bay Municipal Code Relating to Electronic and Paperless Filing of Campaign Disclosure Statements and Statements of Economic Interests
51 (City Clerk)
Recommended Action
Adopt by second reading by title only, with further reading waived, Ordinance No. 667: An Ordinance of the City Council of the City of Morro Bay, Adding Chapter 2.48 to Title 2 of the Morro Bay Municipal Code Relating to Electronic and Paperless Filing of Campaign Disclosure Statements and Statements of Economic Interests.

8. PUBLIC HEARING ITEMS
None

9. BUSINESS ITEMS

9.a Short-Term Rental Ordinance Implementation Update 57 (Community Development Department)
Recommended Action

Receive and file an update on the City’s implementation of its Short-Term Rental (STR) ordinance.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The next Regular Meeting will be held on June 11, 2024.

This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall, 595 Harbor Street, Morro Bay, CA 93442 for any revisions or call the Clerk's office at (805) 772-6205 for further information.

Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection upon request by calling the City Clerk's office at (805) 772-6205.

In compliance with the Americans Disability Act, if you need special assistance to participate in a City meeting, please contact the Clerk's office 24 hours prior to the meeting to insure reasonable arrangements can be made to provide accessibility to the meeting.

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
May 14, 2024, 3:00 p.m.

City Hall Conference Room
595 Harbor Street, Morro Bay, CA 93442
Members Present: Mayor Carla Wixom
Council Member Zara Landrum
Council Member Laurel Barton
Council Member Cyndee Edwards
Council Member Jennifer Ford
Staff Present: City Manager Yvonne Kimball
City Attorney Chris Neumeyer
Interim Comm Dev Director Michael Codron
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:00 p.m., with all but Council Member Barton present. Council Member Barton joined the meeting at 3:10 p.m.

2. SUMMARY OF CLOSED SESSION ITEMS

3. CLOSED SESSION PUBLIC COMMENT
Mayor Wixom opened public comment for items on the agenda; seeing none, public comment was closed.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: 231 Atascadero Road, APN: 065-182-005
Property Negotiator: Potentially Interested Parties
Agency Negotiators: Yvonne Kimball, City Manager; Michael Codron, Interim Community Development Director; and Chris Neumeyer, City Attorney
Negotiation: Price and Terms of Payment

4.b PUBLIC EMPLOYEE PERFORMANCE EVALUATION

2 Conduct an employee evaluation of the City Attorney pursuant to Government Code section 54957

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. The Council did not take any reportable action in accordance with the Brown Act.

6. ADJOURNMENT
The meeting adjourned at 4:59 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
May 14, 2024, 5:30 p.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Zara Landrum
Council Member Laurel Barton
Council Member Cyndee Edwards
Council Member Jennifer Ford
Staff Present: City Manager Yvonne Kimball
City Attorney Chris Neumeyer
City Clerk Dana Swanson
Finance Director Emily Conrad
Public Works Director Greg Kwolek
Interim Comm Dev Director Michael Codron
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Director Ted Schiafone
Management Analyst Janeen Burlingame
City Engineer Cynthia Cecil
Senior Engineer Austin Della
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:34 p.m., with all but Council Member Barton present. Council Member Barton joined the meeting at 5:41 p.m.

2. MOMENT OF SILENCE

3. PLEDGE OF ALLEGIANCE

4. REPORTS

4.a Closed Session Report
City Attorney Neumeyer announced no reportable action was taken in closed session.

4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/3q3ARtdEwOc?si=VcqWH88esnYsxVpH&t=103

2 4.c City Manager Reports, Announcements and Presentations https://youtu.be/3q3ARtdEwOc?si=DuB55Cv-iPdVmplm&t=770

4.d Subcommittee Reports
https://youtu.be/3q3ARtdEwOc?si=shq9wbFJrM_fYFcV&t=1117

5. RECOGNITION AND PRESENTATIONS

5.a Emergency Medical Services Week Proclamation
https://youtu.be/3q3ARtdEwOc?si=Fko7HMUpxoD7daNH&t=1516 Presented to Fire Chief Dan McCrain and members of the Morro Bay Fire Department.

5.b National Police Week and National Peace Officers Memorial Day Proclamation
https://youtu.be/3q3ARtdEwOc?si=zZIgNbMYmD6XTuiM&t=1796 Presented to Police Chief Amy Watkins and members of the Morro Bay Police Department.

5.c Public Works Week Proclamation
https://youtu.be/3q3ARtdEwOc?si=bPRzOeVgIxw06mpE&t=2104 Presented to Public Works Director Greg Kwolek and members of the Public Works Department.

6. PUBLIC COMMENT
https://youtu.be/3q3ARtdEwOc?si=zO2ZQi7CSpJO9XoC&t=2403  Felipe Gonzalez, San Luis Obispo Department of Social Services, thanked the City for acknowledging May as National Foster Care Month and shared a video highlighting the many voices of foster care in SLO County. Visit slofostercare.com for more information.
 Rachel Wilson, Cayucos, raised questions regarding recent legislation and how that might impact sales tax revenue from the proposed BESS project.  Jeanne Marie Colby, Morro Bay, spoke regarding the Draft EIR for the proposed BESS project.
 Barry Branin, Morro Bay, announced an event to learn more about Measure A-24 will be held June 1st, 11:00 a.m. - 2:00 p.m., at the Morro Bay Community Center.
 Terry Simons, Morro Bay, thanked the Fire Safe Council, Fire Chief and Police Chief for their efforts managing clean up of the Quintana creek area.

3  An unnamed individual offered opinions regarding law enforcement.  Betty Winholtz, Morro Bay, requested an update on the City's campaign sign ordinance.
 Sil DeSantis, Morro Bay, expressed concern about traffic impacts and other disruption during demolition and construction of the proposed BESS project.
 Nattalia Merzoyan, Morro Bay, mentioned the impact community interests have on local elections.
 Steve Ray, Morro Bay, commented on letter submitted by Vistra regarding their proposed project.
 Linda Winters, Morro Bay, thanked three departments honored today.

End of public comment.

Staff responded to issues raised during public comment.

7. CONSENT AGENDA
Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.
https://youtu.be/3q3ARtdEwOc?si=xEPY1QuOuH8YmN4q&t=4443 Mayor Wixom announced Items 7.c. and 7.i. were being pulled from the agenda.

Mayor opened public comment for items on the Consent Agenda.  Betty Winholtz, Morro Bay, commented on Item 7.c., asking that language allowing the ordinance to be changed by resolution be removed; regarding Item 7.e., she asked how this would affect the leaseholder's responsibility for maintaining revetments; and regarding Item 7.g., as a member of the Recreation & Parks Commission, she was excited to participate in planning the City's 60th Anniversary celebration.  Terry Simons, Morro Bay, questioned the selection process used for contract approval presented in Item 7.e.
 An unnamed resident commented on Item 7.b.3.

End of public comment.

Council Member Landrum pulled Item 7.e. for discussion.

Motion by Council Member Ford
Seconded by Mayor Wixom
Approve Consent Agenda Items 7.a, 7.b, 7.d, 7.f, 7.g and 7.h as submitted.

4 Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford
CARRIED (5 to 0)

7.a Approval of Minutes
Approve as submitted.
a. April 23, 2024 - Regular Council Meeting
b. April 23, 2024 - Special Closed Session Meeting
c. May 7, 2024 - Special Closed Session Meeting

7.b Approval of Proclamations
Approve as submitted.
a. Proclamation declaring the week of May 19-25, 2024 as "Emergency Medical Services Week"
b. Proclamation proclaiming May as "National Foster Care Month" c. Proclamation acknowledging "National Police Week" and declaring May 15, 2024 as "National Peace Officers Memorial Day"
d. Proclamation declaring National Public Works Week as May 19 through May 25, 2024 "Advancing Quality of Life for All" e. Proclamation declaring May 19-25, 2024 as National Travel and Tourism Week

7.c Second Reading and Adoption of Ordinance No. 667 Adding Chapter

2.48 to Title 2 of the Morro Bay Municipal Code Relating to Electronic and Paperless Filing of Campaign Disclosure Statements and Statements of Economic Interests
This item was pulled from the agenda.

7.d Approve the Required Annual Military Equipment Use Report er CA Assembly Bill No. 481 and Renew City's Military Equipment Policy Approve the submitted annual military equipment report as compliant with standards of Assembly Bill No. 481 (approved 2021); and approve a renewal of the military equipment policy previously adopted by Council by ordinance.

7.e Professional Services Agreement to Brady and Associates for Conditions Assessment of Revetment and Seawalls
https://youtu.be/3q3ARtdEwOc?si=SNaAtJtokp-RkyXx&t=5118

5 At Council Member Landrum's request, staff clarified the inspections were being conducted on City-owned property and commented on the Army Corp of Engineers' role in maintaining the revetments.

Motion by Council Member Landrum
Seconded by Mayor Wixom
Authorize the City Manager to execute an agreement with Richard Brady and Associates (Brady) to perform an Inspection and Conditions Assessment of Revetment and Seawalls (Assessment) in an amount not to exceed $287,315.00, with an additional 5% contingency budget of $14,365.75 executable by the City Manager.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford CARRIED (5 to 0)

7.f Approval of Contract Amendment with Cannon Corporation and Project budget Amendment for Kings Tanks and Blanca Tanks Rehabilitation Project
Authorize the City Manager to execute Amendment No. 2 to the Professional Services Contract with Cannon Corporation (Cannon) for the completion of the Kings Tanks and Blanca Tanks Rehabilitation Project.

This amendment is in the amount of $10,050. Additionally, approval of this amendment signifies Council's authorization of a corresponding project budget increase by the same amount, $10,050.

7.g Preliminary Schedule for Morro Bay 60th Anniversary Celebration of the City's Incorporation
Receive and file.

7.h Adoption of Resolution Amending Council Policies and Procedures related to Order of Business for Regular Meetings
Adopt Resolution No. 27-24 amending Council Policies and Procedures subsection 1.2.7 to add Subcommittee Reports to the Order of Business for Regular Meetings

7.i Contract Amendment No. 1 - Project No. MB2022-MA01, Morro Bay Parking Lot Rehabilitation
This item was pulled from the agenda.

8. PUBLIC HEARING ITEMS

9. BUSINESS ITEMS

9.a San Luis Obispo Council of Governments (SLOCOG) Presentation "Get Involved: Regional Road Safety Action Plan"

6 https://youtu.be/3q3ARtdEwOc?si=DyM2y8_OhPMxKl6B&t=5572 Sarah Woolsey, Rick Engineering, presented information on behalf of SLOCOG regarding the Regional Road Safety Action Plan and responded to Council inquiries.

Mayor Wixom opened public comment on Item 9.a.; seeing none, the public comment period was closed.

As a receive and file item, no action was taken by the Council.

9.b Adoption of Resolution No. 28-24 Approving the Engineer's Report and Declaring the Intent to Levy the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD)
https://youtu.be/3q3ARtdEwOc?si=H0_lEznipHAwT2lz&t=6149 Public Works Director Kwolek presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 9.b.; seeing none, the public comment period was closed.

Motion by Mayor Wixom
Seconded by Council Member Landrum
Adopt Resolution No. 28-24 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space for Fiscal Year (FY) 2024/25 and approving the Engineer’s Report.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford CARRIED (5 to 0)

9.c Adoption of Resolution No. 29-24 Approving the Engineer's Report and Declaring the Intent to Levy the Annual Assessment for the North Point Natural Area - Landscaping and Lighting Maintenance Assessment District
https://youtu.be/3q3ARtdEwOc?si=XvoFO4I3eiatCjnf&t=6422 Public Works Director Kwolek presented the report.

Mayor Wixom opened public comment for Item 9.c.
 Barry Branin, Morro Bay, felt that going forward it would be unfair to ask North Point residents to pay for maintenance along the proposed Morro Bay to Cayucos trail connector.

End of public comment.

7 Motion by Mayor Wixom
Seconded by Council Member Edwards
Adopt Resolution No. 29-24 approving the Engineer’s Report and declaring the intent to levy the annual assessment for maintenance of the North Point Natural Area for Fiscal Year (FY) 2024/2025.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford CARRIED (5 to 0)

9.d Discussion of Recommendations for improvements to the Harbor Department Lease Management Policy
The Council took a brief recess at 7:24 p.m. and reconvened at 7:34 p.m. with all members present.
https://youtu.be/3q3ARtdEwOc?si=12i2S_XrTU5THG-U&t=7278 Harbor Director Schiafone presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 9.d.
https://youtu.be/3q3ARtdEwOc?si=MOeQNpQcrKmGHKTS&t=8355  Cal Myers, Morro Bay, offered insights as a Harbor Advisory Board and ad hoc committee member.
 Jeff Eckles, Morro Bay, questioned the timing for implementation of the proposed changes and noted there was little discussion about the potential impacts on sublease holders.
 Terry Simons, Morro Bay, commented as a sublease holder in a marina outside Morro Bay.
 Cherise Hansson, Morro Bay resident and leaseholder, suggested rent increases following reappraisal be limited to 10% per year to allow business owners to gradually grow their businesses.  Linda Winters, Morro Bay, agreed there should be limits on the allowed annual rent increase.

End of public comment.

Motion by Mayor Wixom
Seconded by Council Member Edwards
Council authorizes implementation of items 1, 2, 3, 4 that staff recommended for implementation in the staff report and that furthermore Council authorizes Harbor Director Schiafone to establish a HAB Ad-Hoc

8 subcommittee at his discretion to pursue the two items in the report of percentage rent and lease extensions but also to study the impact on sublessees of the lease policy and provide possible recommendations to protect their interests and also fourth to establish a policy for implementation of a harbor walk fund as possible.

Ayes (5): Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford CARRIED (5 to 0)

9.e Review and possible Approval of a One-Year Lease Agreement for 695 Harbor Street property as Chamber office space and the Scope of Work for Fiscal Year (FY) 24-25 Economic Development Services Contract with Morro Bay Chamber of Commerce
https://youtu.be/3q3ARtdEwOc?si=vot1xuSwBvV7fc8O&t=10107 Council Member Ford recused herself due to potential economic conflict and left the dais at 8:22 p.m.

City Manager Kimball presented the proposed economic development contract and introduced Jocelyn Brennan, Interim CEO for the Morro Bay Chamber of Commerce who presented an overview of past
accomplishments and proposed scope of work for Fiscal Year 2024-25.

Mayor Wixom opened public comment for Item 9.e.
https://youtu.be/3q3ARtdEwOc?si=AIPh_A89Nxzu3Hrb&t=11522  Ray Riordan, Morro Bay, appreciated Ms. Brennan's presentation and spoke in support of contracting with the Chamber for Economic Development services.
 Judy Salamacha, Morro Bay, spoke in support of the proposed Economic Development contract.
 Cherise Hansson, Chair of Morro Bay Chamber of Commerce, urged the City to continue contracting with the Chamber for Economic Development services at the previous level.
 Betty Winholtz, Morro Bay, appreciated the City's cautionary approach and commented on the need for a visitor's center.  Terry Simons, Morro Bay, felt it was inappropriate to link deliberations regarding rental of building with a service contracts and hoped going forward it wouldn't be perceived the City is paying the Chamber to lobby on behalf of its members.
 Judy Setting, Morro Bay, appreciated the presentation and echoed concerns about source of funds for this contract.

9 End of public comment.

There was Council consensus to go past 9:30 p.m. to finish this item.

Motion by Council Member Edwards
Seconded by Mayor Wixom

1. Approve a one-year Lease Agreement for office space at 695 Harbor Street; and

2. Approve the Scope of Work for a one-year Economic Development Services Contract with the Morro Bay Chamber of Commerce for FY 24/25 with the reduction to the portion of New Day in Morro Bay in half ($7,500) then staff to bring back to Council in six months for further direction.

Ayes (4): Mayor Wixom, Council Member Landrum, Council Member Barton, and Council Member Edwards
Recused (1): Council Member Ford
CARRIED (4 to 0)

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
None.

11. ADJOURNMENT
The meeting adjourned at 9:54 p.m.
/s/ Dana Swanson, City Clerk

AGENDA NO: 7.b.1
MEETING DATE: May 28, 2024

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
DECLARING JUNE 7, 2024 TO BE
“HUNGER AWARENESS DAY”

CITY COUNCIL
City of Morro Bay, California
WHEREAS, hunger profoundly undermines the health and well-being of both our community at large and individual neighbors; and
WHEREAS, approximately a third of households in San Luis Obispo County are struggling to afford the cost of living in our region; and
WHEREAS, more than 4,800 children in San Luis Obispo County are suffering from food insecurity, jeopardizing their growth, health, and academic success; and WHEREAS, nearly a quarter of local seniors are struggling to meet their basic needs; and WHEREAS, the SLO Food Bank provides essential support to over 70 partner nonprofit agencies, thereby forming a critical network that distributes nutritious, life-sustaining food to those who face hunger; and
WHEREAS, the SLO Food Bank serves over 36,500 neighbors in need each month across San Luis Obispo County from Nipomo to San Miguel, and from San Simeon to California Valley; and
WHEREAS, the SLO Food Bank distributes millions of nutritious meals to families, seniors, children, and people in need annually; and
WHEREAS, the annual Hunger Awareness Day event, taking place this year on June 7, is a crucial initiative organized by the SLO Food Bank to elevate public consciousness about hunger and generate the necessary funds to alleviate local hunger and elevate public health for all; and
WHEREAS, the steadfast commitment of our community on Hunger Awareness Day, June 7, 2024, will be instrumental in raising the funds and awareness required to alleviate hunger.

NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby proclaim June 7, 2024 as Hunger Awareness Day in Morro Bay.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 28th day of
May, 2024
_______________________________

CARLA WIXOM, MAYOR
City of Morro Bay, California

AGENDA NO: 7.b.2
MEETING DATE: May 28, 2024

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY RECOGNIZING

FITNESS WORKS FOR THEIR ORGANIZATION OF
THE “CLEAN-UP DAY” TO REMOVE THE TRASH AND DEBRIS
IN THE RIVERBED BETWEEN QUINTANA ROAD AND HWY 1 ON APRIL 20, 2024

CITY COUNCIL
City of Morro Bay, California
WHEREAS, FitnessWorks is a local-owned business that was first incorporated in 1991; and
WHEREAS, FitnessWorks is actively involved in local community organizations; and WHEREAS, FitnessWorks company has often provided donations to local charity events; and
WHEREAS, FitnessWorks organized a group of their employees and community volunteers to clean up the riverbed between Quintana Road and HWY 1 to remove the trash and debris left from previous encampments; and
WHEREAS, Dozens of Fitness Works employees and local citizens spent hours on April 20, 2024, restoring the riverbed to its natural beauty.

NOW THEREFORE, BE IT RESOLVED that the City of Morro Bay recognizes and proclaims that FitnessWorks has been dedicated to the betterment and improvement of our community. The City of Morro Bay thanks FitnessWorks for its continued efforts to make Morro Bay a better place to live.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 28th day of
May 2024
______________________________
CARLA WIXON, Mayor
City of Morro Bay, California

AGENDA NO: 7.b.3
MEETING DATE: May 28, 2024

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
DECLARING MAY 18 - MAY 24, 2024 AS

NATIONAL SAFE BOATING WEEK

CITY COUNCIL
City of Morro Bay, California
WHEREAS, for more than 100 million Americans, boating remains a beloved pastime.

Whether along the shoreline or inland waterways, individuals across the nation are embracing aquatic adventures, be it boating, sailing, kayaking, or fishing; and WHEREAS, throughout National Safe Boating Week, the U.S. Coast Guard, alongside its federal, state, and local counterparts in safe boating initiatives, urges all enthusiasts to relish America's scenic waters with a commitment to safety and responsibility; and WHEREAS, National Safe Boating Week is a time to emphasize the importance of responsible boating practices and water safety awareness as boaters across the country gear up for the summer season of adventure; and
WHEREAS, the overwhelming majority of incidents stem from human error or lapses in judgment rather than issues with the boat, its equipment, or environmental conditions; and WHEREAS, National Safe Boating Week is observed to bring attention to important life tips for recreational boaters so they can have a safer, more fun experience out on the water throughout the year; and
WHEREAS, here are this year’s top seven tips for safe and enjoyable boating experiences:

1. Wear a life jacket.

2. Boat Sober.

3. Get your California boater card.

4. Have the proper safety equipment.

5. Stay weather aware by checking the weather forecast and be prepared for changing conditions.

6. File a float plan.

7. Implement clean and green practices.

NOW, THEREFORE, BE IT RESOLVED, that the Morro Bay City Council does hereby support the goals of the Safe Boating Campaign and proclaims May 18-24, 2024, as National Safe Boating Week and the start of the year-round effort to promote safe boating and urge all those who boat to practice safe boating habits and wear a life jacket at all times while boating.

IN WITNESS WHEREOF I have
hereunto set my hand and caused the
seal of the City of Morro Bay to be
affixed this 28th day of May 2024
_______________________________

CARLA WIXOM, MAYOR
City of Morro Bay, California

AGENDA NO: 7.b.4
MEETING DATE: May 28, 2024

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
DECLARING JUNE 2024 AS PRIDE MONTH

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay supports the rights of all citizens to experience equality and freedom from discrimination; and
WHEREAS, this nation was founded on the principle that every individual has infinite dignity, worth, and status, and the City Council calls upon community members to embrace this principle and work to eliminate prejudice everywhere it exists; and WHEREAS, Pride Month began as a protest against the profiling and violence of LBGTQ+ people, who continue to face intense struggles to this day; and WHEREAS, human beings deserve not only the tools for survival but also access to the pursuit of equitable health, liberation, and joy; and
WHEREAS, LGBTQ+ people have historically struggled to find others like themselves in media, community, and commerce, and Pride Month serves as a crucial time of visibility and community; and
WHEREAS, recognition from one’s government is crucial for feeling safe in one’s community and the City of Morro Bay is intent on ensuring everyone in the City feels welcome, safe, and a sense of belonging; and
WHEREAS, recognizing and celebrating Pride Month influences awareness and provides opportunities to engage in dialogue to strengthen alliances, build acceptance and advance equal rights for all; and
WHEREAS, Pride Month is a cornerstone of American culture that allows us to lift up our successes while working toward a better, more inclusive, equitable future.

NOW, THEREFORE BE IT RESOLVED that City Council of the City of Morro Bay hereby proclaims the month of June 2024 as Pride Month in support of the LGBTQ+ community.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 28
th day of
May 2024

CARLA WIXOM, MAYOR
City of Morro Bay, California

Prepared By: ___GK/CC Dept Review: _GK__
City Manager Review: __YK______ City Attorney Review: __CFN____ Staff Report
TO: Honorable Mayor and City Council DATE: May 22, 2024 FROM: Cindy Cecil, City Engineer
SUBJECT: Presentation of Allocation of Water Equivalency Units (WEU) for Fiscal Year (FY) 2024/25

RECOMMENDED ACTION
Adopt Resolution No. 30-24 to allocate 50 WEUs for residential development (30 single-family residential (SFR) and 20 multi-family residential (MFR)) and 65 for commercial development for a total of 115 WEUs for FY2024/25.

WATER EQUIVALENCY UNITS (WEU)
Background
In 1984 the citizens of Morro Bay adopted Measure F, codified as Ordinance 266 in Morro Bay Municipal Code as Chapter 13.20, as a “Growth Management System”. This measure set a maximum population of 12,200 by the year 2000. Measure F set a limit of 70 new housing units per year with an annual maximum variation in the number of units not exceeding 10 percent or 77 WEUs for residential units. City Council acted on August 27, 2007, to reduce the number of allocated housing units to 50 new housing units. Ordinance No. 266 requires the WEU allocation mix to consist of 60% SFR dwellings and 40% MFR dwellings. Since housing and population growth has not increased to the Measure F projected population of 12,200, new housing units can still be issued. The population growth estimates in the General Plan predict reaching the Measure F established population in 2040.

A WEU is defined as a unit of measure for water use equal to the average amount of water used by a single-family residence over the period of one year. Based on calculations completed in 2016, a WEU is 8,732 cubic feet (0.2 AF) of water or 90 gallons per capita per day (GPCD). This amount was lowered in the 2016 calculation from previous years due to the historical trend of lower water use per capita compared to previous years. Prior to 2016, a WEU was calculated at 166 GPCD per year. The intent of the WEU allocations is to regulate the addition of new water users to the City’s water system and to ensure the demand for water shall not exceed available water supply.

Water Equivalency Unit Program
WEUs are issued to new projects based on projects’ potential water use. WEUs are issued with planning permit approvals; therefore, this water use is projected to be in the future demands, not within the current or even next fiscal year water demand.

Summary of WEU FY 2023-24 activity:

The City Council authorized 115 WEUs for FY 2023-24, including 30 WEUs to be used for single-family dwellings, 20 for multiple-family dwellings, and 65 allowed for commercial/industrial uses.

Those WEUs were allocated on a first-come, first-serve basis. The tracking of the WEUs utilized for FY 2023-24 indicates 21.6 of the 115 WEUs allocated were used:

AGENDA NO: 7.c
MEETING DATE: May 28, 2024

 Single-Family Residential: 2
 Multi-Family Residential: 5
 Commercial: 14.6
Previous four year’s WEU total allocations, for reference:
22/23 - 1.0 total (1.0 SF Res, 0 MF Res, 0 Commercial)
21/22 - 8.94 total (8.0 SF Res, 0.94 MF Res, 0 Commercial) 20/21 - 84.8 total (8.0 SF Res, 21.7 MF Res, 55.11 Commercial) 19/20 - 8.09 total (6.0 SF Res, 1.5 MF Res, 0.59 Commercial) This is not a comprehensive list of all building activity, but rather a list of those activities which required a WEU allocation in the past fiscal year. A WEU is only required for single family residential and multi-family residential when development is on an empty lot or when a change in use is proposed, i.e., changing from office building to apartment. Many of the projects for FY 2023/24 are Accessory Dwelling Units (ADU) and per State Law these units are to be treated the same as the existing residence with no greater impact than the existing residence, and as such, ADUs do not require allocation of WEUs.

There is no significant change in water availability that would impact the City’s ability to issue WEUs. Looking ahead at the planning projects in the queue for remainder of FY 2023/24, staff sees no need to adjust the number of WEUs for next fiscal year. Looking forward to next fiscal year, the Community Development Department is expecting one larger scale development to potentially begin the planning process towards the end of the fiscal year. It is anticipated that the staff recommended WEUs will be sufficient to move that project and other projects forward. As such, staff recommends the FY 2024-25 WEU allocation include 50 WEUs for residential development and 65 WEUs for commercial development for a total of 115 WEUs.

Public Meetings
The Water Equivalency Allocation for FY2024/25 was presented to Planning Commission on May 21, 2024, and the Public Works Advisory Board on May 15, 2024. Both bodies unanimously voted to approve the staff recommended WEUs allocation.

CONCLUSION
Staff recommends the City Council adopt Resolution No. 30-24 to allocate 50 WEUs for residential development (30 SFR and 20 MFR) and 65 for commercial development for a total of 115 WEUs for FY 2024/25.

ATTACHMENT

1. Resolution No. 30-24 to Allocate Water Equivalency Units for FY 2024/25

1 RESOLUTION NO. 30-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
ALLOCATION OF WATER EQUIVALENCY UNITS FOR FY 2024/25

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, Chapter 13.20 of the Morro Bay Municipal Code calls for the City Council of the City of Morro Bay to adopt a yearly Water Allocation Program based on a report by the Public Works (Services) Director after review by the City of Morro Bay Planning Commission and Public Works Advisory Board; and WHEREAS, the Local Coastal Program Land Use Plan and Ordinance Number 266, require the City Council to set an annual limit on new residential units and to prescribe the mix of multi-family and single-family residences allowed within that limit; and WHEREAS, on May 15, 2024, the Public Works Advisory Board held a public meeting on the Annual Water Report and the proposed FY 2024/25 Water Allocation Program and recommended the City Council adopt the proposed allocation of Water Equivalency Units (WEUs); and
WHEREAS, on May 21, 2024, the Planning Commission held a public meeting on the Annual Water Report and the proposed FY 2024/25 Water Allocation Program and recommended the City Council adopt the proposed allocation of WEUs; and WHEREAS, on May 28, 2024, the City Council did hold a public meeting on the proposed FY 2023/24 Water Allocation Program; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California, as follows:

SECTION 1: WEU Allocation:

Allocate 115 WEUs in FY 2024/25, 50 WEU for residential purposes (30 SFR and 20 MFR) and 65 for Commercial/Industrial purposes.

2 SECTION 2: Applicability:

Each development project that requires an allocation of new Water Equivalency Units shall be subject to this revised allocation program, unless a building permit has been issued prior to the date of adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on this 28th day of May 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Carla Wixom, Mayor
ATTEST

Dana Swanson, City Clerk

Prepared By: ___TS Dept Review: ___TS
City Manager Review: _YK_______ City Attorney Review: __CFN____ Staff Report
TO: Honorable Mayor and City Council DATE: May 20, 2024 FROM: Ted Schiafone, Harbor Director
SUBJECT: Adopt Resolution No. 31-24 Authorizing the City to Apply for a California Clean Energy Planning Program (CCEPP) Grant, Enter Into a Grant Agreement for $100,000, and Execute all Necessary Documents to Implement and Carry Out the Terms of the Grant

RECOMMENDED ACTION
Adopt Resolution No. 31-24 approving the application and award of $100,000 grant funds for the purpose of developing and implementing a series of stakeholder outreach and engagements on clean energy solutions, such as offshore wind and authorize the City Manager to execute all necessary documents to implement and carry out the terms of the grant.

FISCAL IMPACT
Staff anticipates time allocated to this effort will be reimbursed through the grant.

BACKGROUND
The Bureau of Ocean Energy Management (BOEM) offered three leases for Offshore Wind development off the coast of Morro Bay in late 2022. Since that time, the City has been involved in meetings, training, discussions, and tours for State Agencies, Federal Agencies, Elected Officials, Offshore Wind Lease Holders, and other interested parties. All City activities related to Offshore Wind are unbudgeted and unfunded. The City has made continuous efforts to obtain funding that supports this effort.

DISCUSSION
The opportunity to apply for this grant was identified in mid-April with a deadline to submit an application on May 7, 2024. Due to the time constraint, the City contacted our lobbyist, Townsend Public Affairs, Inc., to prepare the grant application under the terms of our contract. If awarded the grant funds, the City will engage the assistance from offshore wind experts and community engagement professionals to develop a series of public engagements for stakeholder input.

Additionally, funds will be utilized for staff and Council training on clean energy initiatives.

CONCLUSION
Staff recommends Council approve the application and award of $100,000 grant funds for the purpose of developing and implementing a series of stakeholder outreach and engagements on clean energy solutions, such as offshore wind.

ATTACHMENT(S)

1. CCEPP Application
AGENDA NO: 7.d
MEETING DATE: May 28, 2024

2. Resolution No. 31-24

RESOLUTION NO. 31-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

TO APPROVE THE SUBMITTAL OF A CALIFORNIA
ENERGY COMMISSION CCEPP GRANT APPLICATION FOR UP TO $100,000

TO DEVELOP AND EXECUTE A SERIES OF STAKEHOLDER ENGAGEMENTS TO INFORM

CLEAN ENERGY PLANNING

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the California Energy Commission provides grants to local governments to fund clean energy projects,
WHEREAS, the City Council authorizes the City Manager to apply for a California Clean Energy Planning Program Grant (CCEPP) from the California Energy Commission to implement a series of stakeholder engagements that will inform City Council and staff on clean energy planning; and
WHEREAS, if recommended for funding by the California Energy Commission, the City Council authorizes the City Manager to accept a grant up to one hundred-thousand dollars ($100,000); and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, the City Manager is hereby authorized and directed to execute all necessary documents to implement and carry out the terms of the grant and to undertake all actions necessary to undertake and complete the energy planning stakeholder engagement meetings.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 28th day of May 2024, on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
_________________________________
Carla Wixom, Mayor
ATTEST:
_________________________________________
Dana Swanson, City Clerk

Prepared By: ___LT Dept Review: __TS _
City Manager Review: __YK______ City Attorney Review: _LNL__ Staff Report
TO: Honorable Mayor and City Council DATE: May 13, 2024 FROM: Lori Thompson, Harbor Business Coordinator
SUBJECT: Authorizing the City to enter into a Sewage Management grant with the California State Parks, Division of Boating and Waterways in the amount of $17,297.52

RECOMMENDED ACTION
Adopt Resolution No. 32-24 authorizing Harbor Patrol Officer Charlie Howland, to apply for and execute a Sewage Management grant with the California State Parks, Division of Boating and Waterways (DBW) for purchase and installation of a vessel pump-out station.

FISCAL IMPACT
This is a 75% funding grant, with the City required to provide a minimum 25% funding match toward the project. The total eligible project cost is estimated to be $23,063.36 after subtracting 15% of prorated costs attributable to vessels that are ineligible for such funding, such as non-recreational liveaboard and commercial uses. The City’s total cost, including staff time, would be $9,835.84 (25% required match is $5,765.84 and staff time on the project is estimated at $4,070).

BACKGROUND
In 1992, Congress passed the Clean Vessel Act (“Act”) to help reduce pollution from vessel sewage discharges into U.S. waters. The grant program established by the Act funds the construction, renovation, operation, and maintenance of pump-out and dump stations for use by recreational boaters. As part of its commitment to provide clean, safe, and enjoyable recreational boating in California, DBW serves as the grant coordinator for the state. The Clean Vessel Program also provides boater education programs to promote public awareness about boat sewage and its proper disposal.

In 2011, the City successfully secured funding to replace the then existing pump-out system through the Act funds. The Harbor Department has diligently maintained it since then, and currently seeks funding for its replacement, as it has reached the end of its operational 7-year lifespan.

DISCUSSION
As discharge of sewage into the bay is prohibited and strictly enforced, Harbor Staff has been actively engaged in the application process for a sewage management grant with DBW, aimed at acquiring and installing a vessel pump-out station.

DBW Sewage Management grant applications are accepted continuously throughout the year and, when approved by DBW, a grant agreement will be submitted to the City for review and AGENDA NO: 7.e
MEETING DATE: May 28, 2024

approval. Grants are typically on a 2-year cycle to complete the installation of the pump-out facility and the City will be required to maintain the facility for 7 years.

This grant program is funded for the purpose of providing services for recreational vessels. Any usage beyond recreational vessels is ineligible and the total project cost must be adjusted by a proportional percentage if such vessels utilize the facility. Examples of ineligible vessels are liveaboard and commercial vessels.

The subsequent procedural step entails furnishing DBW with a council resolution, endorsing both the application and the utilization of the grant funds.

CONCLUSION
Staff recommends Council approve initiation of the application process to procure a vessel pump-out station, seeking $17,297.52 in grant funds for the purpose of replacing the current grant funded station.

ATTACHMENT(S)

1. Resolution No. 32-24

RESOLUTION NO. 32-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY OF MORRO BAY TO ENTER

INTO A SEWAGE MANAGEMENT GRANT AGREEMENT WITH THE CALIFORNIA

STATE PARKS, DIVISION OF BOATING AND WATERWAYS IN THE AMOUNT OF $17,297.52

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, City of Morro Bay (City) has ownership and control over the Morro Bay Harbor; and
WHEREAS, the City desires to undertake replacing the current pump-station and plumbing at Tidelands dock for the purpose of providing service for the recreational boating population; and
WHEREAS, the initial estimated project cost of replacement will be approximately $23,063.36, after subtracting 15% of prorated costs attributable to vessels that are ineligible for such funding, such as non-recreational liveaboard and commercial uses. The City is also required to provide a 25% minimum match; and WHEREAS, in 1992, Congress passed the Clean Vessel Act to help reduce pollution from vessel sewage discharges into U.S. waters. The grant program established by the Act funds the construction, renovation, operation and maintenance of pump-out and dump stations for use by recreational boaters. As part of its commitment to provide clean, safe and enjoyable recreational boating in California, the Division of Boating and Waterways serves as the grant coordinator for the state. The Clean Vessel Program also provides boater education programs to promote public awareness about boat sewage and its proper disposal; and
WHEREAS, City Staff wishes to request and apply for a Sewage Management grant in the amount of $17,297.52;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California as follows:

1. The City is hereby authorized to enter into a Department of Boating and Waterways Sewage Management grant agreement in the amount of $17,297.52 for a new pump-out station, plumbing and installation. //
//
//
//
//

2. Harbor Director, or designee, is hereby authorized to act as the City’s agent in regard to all aspects of the grant contract agreement.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 28th day of May 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Prepared By: DM, MV______ Dept Review: ________
City Manager Review: __YK______ City Attorney Review: LNL Staff Report
TO: Honorable Mayor and City Council DATE: April 15, 2024 FROM: Fire Chief, Daniel McCrain
Fire Division Chief, Matt Vierra
SUBJECT: Authorization for the Exchange of Fire Apparatus with the City of Atascadero

RECOMMENDED ACTION
Approve an exchange of the Morro Bay Pierce/Kenworth T370 Rescue 5351 for the Atascadero City Westmark 7574 Type 3 Wildland Engine and authorize the City Manager to execute the Exchange Agreement.

FISCAL IMPACT
This proposed trade of apparatus between Morro Bay and Atascadero is at no cost. The Type 3 Fire Engine will be supplied with wildland gear and equipment. Minor modifications might be necessary at a minimal cost. The estimated value of the Kenworth rescue is approximately $80,000 with no equipment, The Westmark type 3 is valued at approximately $60,000 based on comparable estimates received from fire apparatus resellers. Atascadero will be supplying the type 3 engine with a compliment of hand tools, fire hose, nozzles, hosepacks and other miscellaneous equipment based on the minimum equipment list for type 3 fire apparatus. This equipment will offset the difference in resale values of the base vehicles.

SUMMARY
Staff is requesting authorization to proceed and enter into an agreement with the City of Atascadero to trade the City of Morro Bay 2009 Kenworth T370 Rescue for the City of Atascadero 2001 WestMark Type 3 Wildland Engine at no cost. Staff believes the Wildland Type 3 Engine will better suit the department mission to address the Wildland Interface Suppression threats in the future. This apparatus exchange will not alter the vehicle replacement schedule as both apparatus are similar in age and mileage. The Rescue would be provided to Atascadero Fire Department without any equipment or tools. The Type 3 engine would be provided to Morro Bay with a limited amount of hose, equipment, and hand tools.

BACKGROUND
Since its creation in 1933 the Fire Department has primarily operated Type 1 Fire Engines and Squads. In the fall of 2009, the City purchased a 2009 Kenworth T370 Rescue and it was put into service. The purchase of this apparatus was a collaboration between the City of Morro Bay and the AGENDA NO: 7.f
MEETING DATE: May 28, 2024

fundraising efforts of the Friends of the Morro Bay Fire Department. At that time, Rescue 5351 replaced an aging Squad that was due for retirement. Instead of purchasing another Squad, the Fire Department elected to purchase a Rescue type vehicle that had more storage for extrication and rescue equipment. This decision was influenced by the San Simeon Earthquake in December 2003 that imposed moderate damage to communities in the County. Rescue 5351 remained in service until 2022 and currently has 62,000 miles.

The City of Atascadero has had a wildland fire threat dating back to its inception as a town in 1915.

Atascadero Fire Department was created in 1922 after a devastating wildland fire that almost destroyed the community the prior year. Since then, the fire department has had a version of Wildland Engines within its department and currently maintains two Type 3 Wildland Engines. Atascadero Fire is heavily involved in the Mutual Aid System utilizing the Type 3 Wildland Engines within the State of California. The Department has purchased a new Type 3 Engine and is now looking to surplus 7574.

Atascadero’s Westmark 7574 is considered a Type 3 Fire Engine and is often called a Wildland Fire Engine or a Brush Truck. These types of engines include several unique designs and configuration details to match the terrain it services. They are designed to be sleek and maneuverable with the ability to manage off-road and variable terrain. Type 3 Fire Engines often respond to wildfires and must be able to get as close to the fire as possible while maintaining both stability and vehicle control.

Atascadero’s Westmark 7574 currently has 63,000 miles on it.

Atascadero Fire currently has a Heavy Rescue that is a tractor trailer type of apparatus that is over 30 years old that they would like to replace with Morro Bay’s rescue. Like Morro Bay, this Rescue was purchased with help from donations from volunteers within the community and was a viable resource for many years to the community.

FIRE ENGINE TYPES AND CLASSIFICATION
The National Fire Protection Association (NFPA) Standard 1901, Standard for Automotive Fire Apparatus, classifies vehicles by type and function. This is important because it created Universal Fire Truck Standards and terminology to help fire departments find an apparatus that will fit their needs.

Type 1
Fire Engines typically respond to structural fires and are the most common type of fire truck in use today.

Type 2
Fire Engines that are like Type 1 and are equipped similar to a Type 1, with lower pump capacity and hose requirements.

Type 3
Type 3 Engines are considered “Wildland Engines” or “Brush Trucks.” These are the vehicles that respond to wildfires and can drive in rough terrain to respond to a fire or rescue.

Types 4, 5, 6, and 7
Are typically customized to meet the needs of each specific department. These vehicles are typically pick-up truck-based with 4-wheel drive.

A Rescue Unit is a "toolbox on wheels" equipped with heavy lifting, core drilling, search, shoring and other specialized equipment to support the District's Rescue Team. Urban Search and Rescue involves the location, rescue, and initial stabilization of victims trapped in confined spaces. The unit also carries equipment to support rope rescue, trench rescue, entanglement emergencies, heavy

equipment accidents and flood/swift water rescue. Rescue Units do not pump water.

DISCUSSION
The utilization and sharing of equipment and resources in the fire service is a long and cherished tradition. The relationship that Morro Bay Fire has with Atascadero Fire dates back many decades.

Back in the 60’s, Atascadero borrowed the Morro Bay Fire 1940 Federal Fire Engine for an extended period until they were able to secure a fire engine for themselves. Recently, Atascadero Fire donated 20 handheld Motorola radios to Morro Bay to assist the department in updating its communication capabilities. This collaboration between departments can be beneficial for both agencies, and today we see another example of this partnership.

Atascadero Fire needs a new or updated Rescue for the department. Their current Rescue is past its service life and requires personnel to maintain a Class A driver's license to operate it. Morro Bay Fire is moving to augment the Department’s fire suppression capabilities with a Type 3 Engine. Over the years, the wildland fire threat in our community has increased, and in conjunction with future plans for potential growth, a Type 3 Engine will be valuable. Type 3 Engines are smaller than the Type 1s and are primarily used for vegetation fires. They are also used for any type of emergency in the foothills and the surrounding areas of the City where the Type 1 Engine cannot respond.

Type 3 Engines are made for the West’s vegetation fires. The biggest advantage of flowing water through the Type 3 is that it can do so while driving. Whereas, the Type 1 engine must be put into park to flow water, the Type 3 can make “running attacks” on vegetation fires, a tactic that can help minimize the rate of spread by having a Firefighter walk the edge of a fire with a hose line and the Type 3 trailing close behind.

The objectives of replacing the Rescue with a Type 3 Engine are:
 Can perform mobile fire attack while moving for Wildland Interface Firefighting.  Provide 500 gallons per minute pump capacity and carry a minimum of 2,400 feet of firehose.
 Can travel on all roads in Morro Bay and Auto / Mutual Aid areas in San Luis Obispo County, especially North Coast communities, and meet the requirements of a Type 3 Wildland Engine as per FIRESCOPE.
 Able to use local resources in San Luis Obispo County for warranty, maintenance, and fire pump repair to reduce travel time and out of service days.  Consistent equipment operations to standardize training for utilization and operational effectiveness for cross staffing multiple apparatus daily.  Allow all Morro Bay apparatus to have pumping capabilities to allow for response to any incident.

A large amount of the rescue and extrication equipment currently on 5351 is still extremely useful.

This equipment will be dispersed onto the first line engines and the Department's Disaster Response Trailer (DRT). Even though the proposal is to eliminate a Rescue from the Department inventory, utilizing the DRT trailer with a pickup truck will still provide emergency response to disaster type incidents within the city for initial incident response. Extended rescue operations are assisted by the County Technical Rescue Team along with Rescue 30 based in Templeton.

CONCLUSION
The entire Fire Department staff was involved with the decision-making process regarding the acquisition of the Type 3 Engine with a positive result. Both Morro Bay Fire and Atascadero Fire staff believe this trade in apparatus would be beneficial for both departments. The importance of the fundraising efforts from the Friends of the Morro Bay Fire Department and dedicated community members that helped support the Morro Bay Fire Department with the donations to purchase the Rescue cannot be overstated. We feel extending the life of the Morro Bay Rescue 5351 by passing it on to Atascadero Fire Department is an extension of the giving spirit. Likewise, Atascadero passing on its Type 3 Engine will provide a service to the community of Morro Bay.

As we look to the future, the fire service must remain adaptable to meet new challenges head-on.

Climate change and technological advancements will demand ongoing innovation and collaboration from our industry. Increasing wildfire risks to our city and surrounding communities have highlighted a need to adapt. By adding a type 3 engine we increase our operational effectiveness and help to maintain or potentially improve our ISO rating by demonstrating improved response capabilities.

ATTACHMENT

1. Morro Bay Fire Department Equipment Exchange Agreement

01181.0052/978382.2 01181.0052/978382.1

CITY OF MORRO BAY FIRE DEPARTMENT

EQUIPMENT EXCHANGE
This AGREEMENT FOR DEPARTMENT EQUIPMENT EXCHANGE
(“AGREEMENT”) is made and entered into this __ day of May, 2024, by and between the City of Morro Bay, a municipal corporation, through its fire department, hereinafter referred to as “MBFD,” and the City of Atascadero, a municipal corporation, through its fire department, hereafter referred to as “AFD.” Both MBFD and AFD may be referred to individually as “Party” or collectively as “Parties.”

RECITALS
A. MBFD owns Fire Department Equipment, 2009 Pierce/Kenworth Heavy Rescue Truck, VIN# 2NKHHN8X6AM262456 (the “Rescue”), which no longer serves MBFD’s current operations.

B. AFD owns Fire Department Equipment, 2001 International/Westmark Model 15 Type 3 Fire Engine, VIN# 1HTSDADN12H507702 ( the “Type 3”), which no longer serves AFD’s current operations.

C. The Parties now desire to enter into a no-cost, item-for-item exchange of the Rescue and the Type 3, such that MBFD would acquire the Type 3 from AFD and AFD would acquire the Rescue from MBFD. The Parties also desire to waive and release any liabilities and warranties arising from the item-for-item exchange.

D. The item-for-item exchange of the Rescue and Type 3 is not inconsistent with any MBFD or AFD policy, or any state, local, and/or federal statute regulating the exchange. This item-for-item exchange is being performed in the public interest of public safety, welfare, and fire safety.

NOW, THEREFORE, IN CONSIDERATION OF THIS AGREEMENT, THE PARTIES HERETO AGREE AS FOLLOWS:

1. Transfer of Vehicles. Upon the execution of this AGREEMENT, (a) MBFD shall accept the Type 3 from AFD and (b) AFD shall accept the Rescue from MBFD. Each Party shall undertake such steps and execute such further documents as are required to reflect the transfer of title to each vehicle to the other Party.

2. As-is Condition. MBFD acknowledges that MBFD has inspected the Type 3, made its own independent assessment of the Type 3, and that AFD is transferring the Type 3 to MBFD in its “as-is” condition, in reliance solely on MBFD’s own inspection of the Type 3. MBFD agrees to take possession and responsibility of the Type 3 in its “as-is” condition and AFD makes no representations or warranties thereto. AFD acknowledges that AFD has inspected the Rescue, made its own independent assessment of the Rescue, and that MBFD is transferring the Rescue to AFD in its “as-is” condition, in reliance solely on AFD’s own inspection of the Rescue. AFD agrees to take possession and responsibility of the Rescue in its “as-is” condition and MBFD makes no representations or warranties thereto.

01181.0052/978382.2 01181.0052/978382.1

3. Indemnification by MBFD. MBFD agrees to assume ownership of the Type 3 and to assume any and all risks associated with the use of the Type 3, including, but not limited to, risk of injury or death to third persons. MBFD agrees to defend, indemnify, and hold harmless and release AFD, its elected and appointed officials, officers, agents, and employees from any and all liability, losses, claims, administrative proceedings, actions, lawsuits, damages, injuries, awards, and court costs, including reasonable attorneys’ fees, whether asserted by MBFD, any of its officers, employees or agents or any third party, arising from any injuries or damages caused by or related to the purchase, ownership, use or care of the Type 3 that may occur on or after the effective date of this AGREEMENT (collectively “AFD CLAIMS”). MBFD further agrees to notify AFD prior to the sale, transfer of possession, or disposal of the Type 3 and agrees any subsequent owner, transferee, or assignee shall be subject to the same obligation as MBFD to defend, indemnify, hold harmless and release AFD and its officials, agents, employees from any AFD CLAIMS. The duties and obligations of MBFD pursuant to this AGREEMENT shall survive any such sale, transfer of possession, or disposal of the Type 3.

4. Indemnification by AFD. AFD agrees to assume ownership of the Rescue and to assume any and all risks associated with the use of the Rescue, including, but not limited to, risk of injury or death to third persons. AFD agrees to defend, indemnify, and hold harmless and release MBFD, its elected and appointed officials, officers, agents, and employees from any and all liability, losses, claims, administrative proceedings, actions, lawsuits, damages, injuries, awards, and court costs, including reasonable attorneys’ fees, whether asserted by AFD, any of its officers, employees or agents or any third party, arising from any injuries or damages caused by or related to the purchase, ownership, use or care of the Rescue that may occur on or after the effective date of this AGREEMENT (collectively “MBFD CLAIMS”). AFD further agrees to notify MBFD prior to the sale, transfer of possession, or disposal of the Rescue, and agrees any subsequent owner, transferee, or assignee shall be subject to the same obligation as AFD to defend, indemnify, hold harmless and release MBFD and its officials, agents, employees from any MBFD CLAIMS. The duties and obligations of AFD pursuant to this AGREEMENT shall survive any such sale, transfer of possession, or disposal of the Rescue.

5. Compliance with Law. MBFD has no knowledge and has received no notice (i) that the Type 3 is in violation of any applicable statutes, ordinances, and regulations, including those related to environmental and health and safety requirements; (ii) of any presently pending or threatened action or proceeding under any environmental or health and safety statutes, ordinances, or regulations; or (iii) of the existence of any present or pending order or directive of any city, county, state, or federal authority, or any agency thereof, requiring that any work or repair, maintenance, improvement, or abatement be performed on the Type 3. AFD has no knowledge and has received no notice (i) that the Rescue is in violation of any applicable statutes, ordinances, and regulations, including those related to environmental and health and safety requirements; (ii) of any presently pending or threatened action or proceeding under any environmental or health and safety statutes, ordinances, or regulations; or (iii) of the existence of any present or pending order or directive of any city, county, state, or federal authority, or any agency thereof, requiring that any work or repair, maintenance, improvement, or abatement be performed on the Rescue.

6. Notices. Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this AGREEMENT or by law to be served in or given to any party to this AGREEMENT shall be in writing and shall be deemed duly served and given

01181.0052/978382.2 01181.0052/978382.1
when personally delivered or in lieu of such personal service when deposited in the United States mail, first-class postage prepaid to the following address for each respective party:

MBFD: Daniel McCrain, Fire Chief
City of Morro Bay
715 Harbor Street
Morro Bay, CA 93442
AFD: Casey Bryson, Fire Chief
City of Atascadero
6500 Palma Avenue
Atascadero, CA 93422

7. Time of the Essence. Time is of the essence for this AGREEMENT and each and every term and provision hereof.

8. Interpretation; Governing Law and Venue. This AGREEMENT shall be construed as if prepared by both Parties. This AGREEMENT shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this AGREEMENT shall be instituted in the Superior Court of the County of San Luis Obispo, State of California, or any other appropriate court in such county, and each Party agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California.

9. Integration; Amendment. This AGREEMENT constitutes the entire agreement between the parties relating to the subject matter of this AGREEMENT and supersedes and replaces any other written or oral agreements thereto. No amendment to this AGREEMENT will be effective unless in writing and signed by both parties.

10. Severability. In the event that any phrase, clause, sentence, paragraph, section, article, or other portion of this AGREEMENT shall become illegal, null or void, or against public policy, for any reason, or shall be held by any court of competent jurisdiction to be illegal, null or void, or against public policy, the remaining portions of this AGREEMENT shall not be affected thereby and shall remain in force and effect to the full extent permissible by law.

11. Assignment. Neither Party hereto shall assign its rights under this AGREEMENT without the prior written consent of the other Party, which consent may be given or withheld in such Party’s sole discretion.

12. Counterparts. This AGREEMENT may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

13. Authority. The persons executing this AGREEMENT on behalf of the Parties hereto warrant (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this AGREEMENT on behalf of said Party, (iii) by so executing this AGREEMENT, such Party is formally bound to the provisions of this AGREEMENT, and (iv) the entering into

01181.0052/978382.2 01181.0052/978382.1
this AGREEMENT does not violate any provision of any other AGREEMENT to which said Party is bound.

IN WITNESS WHEREOF, the Parties hereto have executed this AGREEMENT on the date set forth opposite their respective signatures below.

CITY OF MORRO BAY, a municipal
corporation
Yvonne Kimball, City Manager
ATTEST:

Dana Swanson, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Chris Neumeyer, City Attorney
CITY OF ATASCADERO, a municipal corporation
By: James R. Lewis, City Manager
ATTEST:

Lara Christensen, City Clerk
APPROVED AS TO FORM:

RICHARDS, WATSON & GERSHON
_________________________
Dave Fleishman, City Attorney

Prepared By: _DS_____ Dept Review: _______
City Manager Review: __YK___ City Attorney Review: __CFN_ _
Staff Report
TO: Honorable Mayor and City Council DATE: April 25, 2024 FROM: Dana Swanson, City Clerk
SUBJECT: Second Reading and Adoption of Ordinance No. 667 Adding Chapter 2.48 to Title 2 of the Morro Bay Municipal Code Relating to Electronic and Paperless Filing of Campaign Disclosure Statements and Statements of Economic Interests

RECOMMENDED ACTION
Adopt by second reading by title only, with further reading waived, Ordinance No. 667: An Ordinance of the City Council of the City of Morro Bay, Adding Chapter 2.48 to Title 2 of the Morro Bay Municipal Code Relating to Electronic and Paperless Filing of Campaign Disclosure Statements and Statements of Economic Interests.

ALTERNATIVES
The Council may choose not to adopt Ordinance No. 667 and provide direction as deemed appropriate by a majority of the Council.

FISCAL IMPACT
Implementation of NetFile will result in substantial staff time savings currently spent reviewing, requesting amendments, scanning, redacting and uploading campaign disclosure statements to the City website for public review.

BACKGROUND/DISCUSSION
This item was continued from the May 14, 2024 Regular Meeting.

Ordinance No. 667 was introduced for first reading at the April 23, 2024, City Council meeting. Linked is the Council Agenda staff report (Item 9.b) for reference.

At the April 9, 2024 Regular Meeting, staff presented a proposed Ordinance implementing an electronic and paperless filing of campaign disclosure statements and statements of economic interests (Form 700s). Following public comment and Council discussion, the City Council directed staff to return with a revised version of the ordinance allowing the city clerk to make limited exceptions to the electronic filing requirement. To ensure the same opportunity to comply with the Political Reform Act Is afforded to all committees/individuals, including those who do not have computer access or familiarity with computer programs, the revised ordinance authorizes the city clerk in their sole discretion to make limited exceptions to the requirement for electronic filing and accept statements in paper format submitted by those who do not have computer access or familiarity with AGENDA NO: 7.g
MEETING DATE: May 28, 2024

01181.0001/766043.1
computer programs.

This would essentially create an Opt-In/Out Program whereby a committee/individual who chooses to file a report electronically is deemed “opted in” and shall be required to file all future statements electronically using the City Clerk’s system. On the other hand, any committee/individual who the city clerk determines does not have computer access or familiarity with computer programs, would be allowed to file paper only until such time the committee/individual “opts-in” to electronic filing. The ordinance also provides that either by amendment of the new chapter, or by resolution, the Council may remove this exception in the future.

ATTACHMENT(S)

1. Ordinance No. 667

Ordinance No. 667

ORDINANCE NO. 667

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
ADDING CHAPTER 2.48 TO TITLE 2 OF THE MORRO BAY

MUNICIPAL CODE RELATING TO ELECTRONIC AND

PAPERLESS FILING OF CAMPAIGN DISCLOSURE

STATEMENTS AND STATEMENTS OF ECONOMIC

INTERESTS

THE CITY COUNCIL
City of Morro Bay, California

THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA FINDS AND ORDAINS AS FOLLOWS:

SECTION 1. Purpose and Authority. The purpose of this Ordinance is to require the filing of Campaign Disclosure Statements and Statements of Economic Interest by elected officials, candidates, staff, consultants, or committees to be completed electronically. The City Council enacts this Ordinance in accordance with the authority granted to cities by state law. This Ordinance is intended to supplement, and not conflict with, the Political Reform Act.

SECTION 2. Findings.

The City Council of the City of Morro Bay finds and determines as follows:

A. That California Government Code Section 84615 provides that a legislative body of a local government agency may adopt an ordinance that requires an elected officer, candidate, or committee, required to file statements, reports, or other documents required by Chapter 4 of the Political Reform Act, to file such statements, reports, or other documents online or electronically with the City Clerk.

B. In any instance in which the original statement is required to be filed with the Secretary of State and a copy of that statement is required to be filed with the City, the filer is permitted, but not required, to file a copy electronically.

C. The City Clerk’s web-based system contains multiple safeguards to protect the integrity and security of the data, will operate securely and effectively, and will not unduly burden filers.

D. The City Clerk will operate the electronic filing system in compliance with the requirements of California Government Code Section 84615 and any other applicable laws.

E. This Ordinance is not a project within the meaning of Section 15378 of the CEQA Guidelines because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment, either directly or ultimately. In the event that the Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility to have a significant effect on the environment.

SECTION 3. Addition of Electronic Filing System for Campaign Disclosure Statements and Statements of Economic Interest. A new Morro Bay Municipal Code Chapter

Ordinance No. 667

2.48, “Electronic Filing of Campaign Disclosure Statements and Statements of Economic Interest,” is hereby added to the Morro Bay Municipal Code to read as follows:

2.48.010 Definitions
For the purposes of this chapter, the following words, terms and phrases shall be defined as follows:

A. “Electronic filing system” means a system established by the city clerk pursuant to Section 84615 of the Government Code for electronic filing of statements, as defined herein.

B. “Filer” means any elected officer, candidate, committee, or other person required to file statements, as defined herein.

C. “Statements” shall mean any statements, reports, or other documents that filers must file in accordance with Chapter 4 of the Political Reform Act (“Government Code Section 84100, et seq.) for the filing of statements.

2.48.020 Electronic Filing System.

A. Pursuant to Government Code section 84615, the city clerk may establish an electronic filing system for the filing of statements.

B. The electronic filing system shall meet the following requirements:
a. Comply with all requirements set forth in Section 84615 of the Government Code. b. Ensure the integrity of data transmitted, including by establishing safeguards against efforts to tamper with, manipulate, alter, or subvert data. c. Accept filing in the standardized record format developed by the California Secretary of State pursuant to Section 84602(a)(2) of the California Government Code, compatible with the Secretary of State’s system for receiving an online or electronic filing.
d. Include a procedure for filers to comply with the requirement that they sign statements and reports under penalty of perjury pursuant to Section 81004 of the Government Code.

2.48.030 Required Online Filing.

A. Upon establishment of an electronic filing system by the city clerk pursuant to Section

2.48.020(A), each filer shall file statements using the city clerk’s electronic filing system according to procedures established by the city clerk. These requirements are not applicable to an officer, candidate, committee or other person that is exempt pursuant to California Government Code Section 84615 as may be amended or renumbered.

B. Notwithstanding subdivision 2.48.030(A), the city clerk in their sole discretion may allow exceptions to the requirement for electronic filing so as to accept statements in paper format submitted by filers who do not have computer access or familiarity with computer programs, until such time as the City Council determines, by resolution or amendment of this chapter, that application of subdivision 2.48.030(A) will have no exceptions.

C. Filers who have electronically filed a statement using the city clerk’s electronic filing system are not required to file copies of that document in paper format with the city clerk.

D. Filers shall file statements in paper format with the city clerk if the electronic filing system is not capable of accepting a statement for any reason.

E. The electronic filing system shall allow filers to complete and submit statements free of charge.

2.48.040 Availability of Statements for Public Review; Record Retention.

A. The city clerk shall make available on the city’s website all data filed pursuant to this

Ordinance No. 667

chapter in an easily understood format that provides the greatest feasible public access.

Data shall be made available free of charge and as soon as possible after receipt.

B. Data made available on the city’s webpage shall not contain the street name and building number of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. A complete, unredacted copy of the statement shall be made available to any person upon request to the city clerk’s office.

C. The city clerk’s office shall maintain online or electronic statements in compliance with State law and the city’s adopted record retention schedule.” SECTION 4. Effective Date.

This Ordinance shall be in full force and effect thirty (30) days after its passage and adoption.

SECTION 5. Severability.

If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application and to this end each phrase, section, sentence, or word is declared to be severable.

SECTION 5. Certification.

The City Clerk shall certify as to the passage and adoption of this ordinance, and the City Clerk shall cause the same to be posted and codified in the manner required by law.

INTRODUCED at a regular meeting of the City Council held on the 23rd day of April 2024, by motion of Council Member Barton and seconded by Council Member Ford.

PASSED AND ADOPTED on the _______ day of _______________, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
____________________________
CARLA WIXOM, Mayor
ATTEST:
________________________________
DANA SWANSON, City Clerk
APPROVED AS TO FORM:
_________________________________
CHRIS F. NEUMEYER, City Attorney

Ordinance No. 667

STATE OF CALIFORNIA )

COUNTY OF SAN LUIS OBISPO )

CITY OF MORRO BAY )
I, Dana Swanson, CITY CLERK OF THE CITY OF MORRO BAY, DO HEREBY CERTIFY that the foregoing Ordinance Number 667 was duly adopted by the City Council of the City of Morro Bay at a regular meeting of said Council on the ____ day of ______ 2024, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of Morro Bay, California, this ____day of ______, _____. _________________________________________
DANA SWANSON, City Clerk

Prepared By: _MC _______ Dept Review: ______
City Manager Review: __ YK______ City Attorney Review: _CFN___ Staff Report
TO: Honorable Mayor and City Council DATE: May 15, 2024 FROM: Michael Codron, Interim Community Development Director SUBJECT: Short-Term Rental Ordinance Implementation Update

RECOMMENDED ACTION
Receive and file an update on the City’s implementation of its Short-Term Rental (STR) ordinance.

ALTERNATIVES

1. Council can direct staff to bring forward changes to the STR ordinance. This is not recommended because implementation has not been fully accomplished.

2. Council can direct staff to bring forward increased fines for non-compliance with the STR Ordinance. This is not recommended until staff completes implementation of its STR monitoring program.

FISCAL IMPACT
There is no immediate and significant fiscal impact associated with the recommendation. Funds for implementation of an STR monitoring program have already been allocated in the Community Development Department budget.

BACKGROUND
On January 9, 2024, the City Council heard an update from City staff and Council Member Landrum regarding the City’s STR ordinance and received community feedback on the topic. No changes were directed at that time, and the expectation set by the City Council was that issues with licensing of new STRs, and bringing existing STRs into compliance would be resolved by City staff through ongoing program implementation. This report includes a summary of actions taken by City staff since January, and next steps.

The agenda report and attachments for the January 9th meeting are available online in the agenda center and via the link.

Here is a link to the video of the meeting on the City’s YouTube channel:
https://youtu.be/0j8c8tgmodY?si=32FAR0uSgV4LNEa_&t=9205 Attachment 1 includes a detailed summary of the City’s STR ordinance.

DISCUSSION

1. Application Process
Community Development Department staff is in the process of creating an application process for AGENDA NO: 9.a
MEETING DATE: May 28, 2024

new STR proposals. Previously, staff had attempted to utilize the business licensing process as the sole method for evaluation of new STR proposals. This was not a successful effort because there are varying requirements for STRs depending on the type and location. For example, STRs are allowed without limit in commercial zones, and home-share applications are allowed in residential zones under certain circumstances. With all of the requirements associated with STRs in residential zones, including the buffer requirement and the 175-permit cap, the City needs a more robust front-end permit process than is provided via the business license portal.

Going forward, it is expected to take staff in Community Development another month to two months to establish the formal application process (Attachment 3, Application Form). In the meantime, we have advised HDL, the city’s business license vendor, to discontinue issuing business licenses for STRs until the application process is in place.

2. Vetting the Existing List
The City’s STR list must be evaluated to ensure that only compliant STRs are permitted to operate. There are many STRs with expired or delinquent business licenses, and others that do not have current TOT accounts. Staff has created a workflow to ensure proper vetting of the list as a starting point for future enforcement efforts (Attachment 2). As discussed below, City staff will receive third-party support to implement this effort.

The workflow includes evaluation of the current STR list for compliance with ordinance requirements, implementing a permit process for new STRs, and development of a waitlist.

Ongoing enforcement will be accomplished with the assistance of a third-party vendor that specializes in this area of work.

3. Third-Party Enforcement Assistance
The City has recently terminated its agreement with Host Compliance for various reasons. After receiving demonstrations of the Rentalscape product created by Deckard Technologies, Community Development has decided to move forward with this technology. Deckard offers a state-of-the-art technology package that is being used by multiple jurisdictions in the County, including Grover Beach, which has been able to accomplish a very high level of compliance.

Deckard has a business relationship with HdL, the City’s business license processor. HdL offers a service using Deckard that will leverage its business license information to help the City implement its ordinance and achieve a high level of compliance. The scope of work for HdL, utilizing Deckard’s Rentalscape data and analysis tools, includes:

Identification and Monitoring
a) Monitor short-term rental sites to identify new listings and closures. b) Match listings to specific parcels using GIS and property tax assessor data. c) Identify properties which are already registered and paying taxes. d) Provide a visual map of listing locations in Client’s jurisdiction. e) Record listing details (including start date, sites linked to, and other information necessary for documenting evidence of short-term rental activity).

Education, Registration and Compliance
a) Notify non-compliant lodging providers of their status and any actions necessary to become compliant.
b) Provide short-term rentals website with links to FAQs, education packets, and support for registering, filing returns, and making payments.

c) Follow-up with non-compliant entities and assist as needed to obtain compliance. d) Work with Client to identify additional requirements and ensure collection of data necessary for enforcement procedures.

The level of service provided via the HdL/Deckard partnership is significantly better than what the City was receiving via its separate contracts with HdL and Host Compliance. Integration of STR enforcement with the City’s business licensing process will improve efficiency. The cost for using HdL for STR program management and compliance is less than the City was paying for Host Compliance. The cost ($14,000 per year with minor additional start-up costs) is within the City Manager’s authority to approve and there is no fiscal impact to the City to change vendors because funding is already allocated in the Community Development Department budget.

4. Signage
Signage is an important aspect of the City’s ordinance requirements. The City has developed a standard sign template that can be used by STR operators. The City will provide STR operators with the digital files needed to have a sign produced with contact and license information specific to that STR. The operator can then have the sign produced at a local print shop or via any vendor that provides the service. Operators are not required to use the City’s template, but doing so is recommended. We plan to engage Visit Morro Bay to promote compliance with the signage requirements.

5. Fines
State law allows for fines to be levied for non-compliant STRs which pose a threat to public health and safety that are greater than what the City currently charges. (Government Code section 36900.) Currently, fines are set at $100, $200, $500 for first, second and third violations. Larger fines may be an effective deterrent to illegal STRs. State law allows fines up to $1500, $3,000 and $5,000 for first, second and third violations that pose a threat to public health and safety. Staff recommends implementing higher fines after the initial implementation of the ordinance, as described in this report, is complete.

Conclusion
Community Development previously worked to implement the STR ordinance via the business license process. However, this proved to be inadequate for complete implementation of ordinance requirements. STR implementation is a complex and time-consuming task for staff. Since the January assessment, there has been significant staff turnover in Community Development, however, some progress has been made, including:
 Discontinued issuing new business licenses for STRs.
 Developed a workflow to resolve current situation and enforce ordinance requirements.  Discontinued the use of a vendor’s software (Host Compliance) and evaluated a new vendor, Deckard/HdL, which is successfully used by other local jurisdictions.  Conferred with the City’s Attorney’s Office on a draft ordinance to increase penalties for non-compliance.

Further, the findings and strategies outlined in this report - including a front-end application procedure, working with a vendor tied into the City’s business license process, facilitating signage for operators, and eventually increasing fines - are expected to get the City on the right track with respect to program implementation and enforcement in a manner that is sustainable over the long-term. It should be noted that continued implementation and enforcement must be balanced with other City priorities, given limited resources for the work.

ATTACHMENTS

1. Community Development Memorandum Summarizing the City’s STR Program (January 9, 2024)

2. General Workflow to Implement STR Ordinance and Gain Compliance

3. New Short Term Rental Permit Application Form

City of Morro Bay
City Hall
595 Harbor Street
Morro Bay, CA 93442
805-772-6201

MEMORANDUM
To: Mayor and City Council
From: Scot Graham, Community Development Director
Date: January 9, 2024
Subject: C-3: Attachment 1, Short-term rental ordinance/key policy discussion This memo is provided as supplemental information to short-term rental (STR) staff report included as item C-3 of the January 9, 2024, City Council Agenda and more specifically to provide a summary of key STR policy requirements. The policy discussion is broken into four categories: 1. Background, 2. General Regulations, 3.

Operational Requirements and 4. Enforcement.

Background
The City’s STR ordinance was adopted on October 27, 2020, as Chapter 17.41 of the City of Morro Bay Municipal Code (Zoning Code). The ordinance was approved by the California Coastal Commission on September 9, 2021, and became effective September 19, 2021, as part of a certified amendment of the City’s Local Coastal Program Implementation Plan.

Link to short-term rental ordinance:
https://library.municode.com/ca/morro_bay/codes/code_of_ordinances?nodeId=TIT17Z O_CH17.41SHRMVARE
In Fiscal Year 2022/2023 STR’s generated $757,558 in Transient Occupancy Tax (TOT) or just under 18% of the total TOT collected by the City.

STR numbers in Morro Bay:

Full Home Rentals = 173
Commercial = 9
Home-sharing Rental = 11
Total = 193
Waitlist total = 169
Key Definitions

1. Full-Home Rental: guest enjoys exclusive use of the dwelling and host is not present

2. Home-sharing rental: STR located within a dwelling that is the host’s primary residence, and where the host is on site throughout the guest’s stay. Includes guest houses (detached bedroom)

NAME Page 2 of 3
DATE

3. Short-term vacation rental: means a single-family dwelling, multi-family unit, bedroom of a primary residence, accessory dwelling unit, or junior accessory dwelling unit, which is rented to a guest for compensation for the purpose of lodging for a period of thirty or fewer consecutive days. "Short-term vacation rental" encompasses home-sharing and full-home rentals. "For compensation" includes, but is not limited to, rental of the property for any form of monetary or non-monetary consideration, including but not limited to money, goods, or services, as well as in-kind exchanges of goods, services, or premises.

General Regulations
 STR’s must pay minimum Transient Occupancy Tax of $500 per year  STR’s are prohibited in affordable housing projects, Accessory Dwelling Units, mobile home parks and apartments located in residential zones  STR’s are limited to 12.5% or 1/8th of the number of units in an apartment or apartment house, located in a mixed use or commercial zone.  Grandfathering: STR’s lawfully permitted prior to the effective date of the ordinance, that are in good standing on the ordinance effective date of the ordinance shall be considered legal nonconforming uses
 Inspections: all STR’s are required to be inspected as part of the initial application/renewal under the ordinance, and every 4-years thereafter.

Community Development and Fire conduct the inspections.  STR licenses are not transferable upon sale or death
 Density Limitations
 Full-home rental cap = 175 in residential zones
 No maximum # of full-home rentals in commercial and mixed use zones  Full-home rentals, in residential zones must be separated by 175’ radius measured from exterior property lines…see below.

Operational Requirements
• The STR permit/license must be posted in the rental

NAME Page 3 of 3
DATE
• Parking: all parking must be onsite in legal spaces required for the applicable housing type
• STR operators must notify guest of STR operational reqs. • Permit/license number must be included in the hosting platform advertisement. • Minimum age 21 for primary renter of STR
• STR operator must have policies in place to address things like noise, disorderly conduct, overcrowding, and alcohol consumption.
• Occupancy for full-home rentals: 2 per bedroom, plus two, with maximum of 10 guests.
• Occupancy for home-share rental: 2 per bedroom
• Children under 3 are excluded from the occupancy limitations • Local 24 hour/7-day per week contact must be identified and available to address concerns within 1-hour while STR’s are being rented
• Signage: a sign is required to be posted on site in a location that is visible and legible from the public right of way that includes:
• Identification that the residence is an STR, with permit/license No. • 24-hour contact information
• Violations are subject to penalties set by resolution and include possible permit revocation
Enforcement
Staff uses various methods for identifying and tracking illegal STR’s or STR’s operating in violation of the City STR policy. Citizens can contact code enforcement directly via phone or email or indirectly through the City’s “Service Request” application found on the front page of the City website. Code enforcement also uses the Granicus Host Compliance application to identify illegal short term rental advertisements in Morro Bay.

The Host Compliance application allows code enforcement staff to track illegal vacation rentals and to generate automatic violation letters through the system. Morro Bay Police Department also responds to STR complaints, mostly related to noise issues and typically outside regular business hours.

Attachment 2 – General Workflow to Implement Short-Term Rental Program and Gain Compliance Build List of Legal and Legal Non-Conforming Short-Term Rentals (HDL/Deckard with Staff Support)  Start With Current List of Short-Term Rentals – Identify Operators that have Current Business License and Current TOT Account
 Identify STRs With Business License or TOT Accounts that are not Current, Provide Notice to Correct
 Perform Buffer Analysis to Determine if Any of These Short-Term Rentals are Out of Compliance  Determine Current Number of Licensed Short-Term Rentals Relative to Cap of 175.

Implement Application Process (City Staff)
 All New Short-Term Rental or Waitlist Requests Must Complete a Planning Application and Submit with Appropriate Fee to the Community Development Department  New Applications to be Reviewed for Consistency with Ordinance  Permit to be Issued if City is Under 175 Cap and Proposed Short-Term Rental Complies with Ordinance. Operator Eligible for Business License and TOT Account  If at or Over 175 Cap, Assign Allowable Application to Waitlist  If Application Process Results in Determination of Non-Compliance (e.g. for lack of parking or other issue), Deny Application
 If Application Process Results in Non-Compliance Due to Buffer Requirement, Assign Application to Waitlist with Note on Buffer Requirement
On-Going Compliance Review Process (Staff and HdL/Deckard)  Inspect All Short-Term Rentals for Ongoing Compliance with Ordinance Every 4 Years, 44 Inspections Per Year
 Use Published Checklists Approved by the Building Official and Fire Marshal as the Basis for Inspection
 If a Short-Term Rental Fails Inspection, Provide Correction Notice and 30 Days to Correct. If Issues Not Corrected in 30 days, Suspend Short-Term Rental License and Begin Revocation Process
 Enforce Ordinance Time Limits (1 Year) on Legal Non-Conforming STRs to Obtain Permit  Utilize Third-Party Vendor to Identify and Enforce Non-Permitted Short-Term Rentals that are Active in Community. Issue Fines and Collect Back TOT when Violations are Verified  For All Other Compliance Issues, Utilize Complaint-Based Enforcement  Provide Contact Information to Community for Verification of Legal Vacation Rentals and Report Potential Violations
 Require Site Signage Per Ordinance
 Increase Fines for Public Health or Safety Violations as a Deterrence Measure

CITY OF

MORRO BAY

SHORT-TERM VACATION

RENTAL APPLICATION
Return to:

Morro Bay City Hall
Attn: Community
Development
955 Shasta Ave
Morro Bay, CA 93442

PROPERTY OWNER INFORMATION
Name: Phone:

Home Address: Email:

Mailing Address:

HOST INFORMATION (If different from Property Owner)
Name: Phone:

Home Address: Email:

Mailing Address:

RENTAL PROPERTY INFORMATION
Vacation Rental Address:

Commercial Property Residential Property Mixed Use Property Which describes your short-term rental?
Full-Home Rental Home-share
Home-share rental applications can be submitted directly to HdL here.

Number of Rooms: Maximum Guest Occupancy:

Available Parking for Guests: Amenities:

Hosting Platform:

Have you ever had a short-term vacation rental permit suspended or revoked anywhere in the State of California within the previous two years?
No Yes
If Yes, describe reason:
________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________

Have you ever been asked or been compelled to no longer advertise with a hosting platform within the previous two years?
No Yes
If Yes, describe reason:
________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ CERTIFICATION (Please read carefully and sign)
I hereby certify, under the penalty of perjury, that the rental property(s) listed in this application qualifies for use as a Short-Term Vacation Rental and will be operated in compliance with Morro Bay Municipal Code Chapter 17.41 and all other codes and regulations governing buildings for human habitation, including limits on the number of occupants as governed by California Health & Safety Code § 17922(a)(1) and Uniform Housing Code Section 503(b)(3).

I also certify that I am authorized to make this statement and the information provided on this application is true and correct. I will have appropriately posted the INTERIOR AND EXTERIOR items as provided with this permit and will strive to minimize potential permit violations.

Furthermore, I have read and understand the attached MBMC Section 17.41.030(K) requires that this Short-Term Vacation Rental (including home-share and full-home short-term rentals) be subject to payment collection of 10% transient occupancy tax, 3% Morro Bay Tourism Improvement District assessments and 1.5% San Luis Obispo Tourism Marketing District assessment consistent with Chapters 3.24, and 3.60 of the MBMC Short-term rental vacation rentals must also contribute a minimum of $500 of TOT annually to maintain a valid permit.

Owner’s Signature: ________________________________________________________

Please Print Name of Owner:

If Owner and Applicant are separate, both must sign; applicant to sign below:

Applicant’s Signature:

Please Print Name of Applicant: